Comprehensive Annual Financial Report (CAFR) and Auditor's Communication Copyright 2014
City of Dubuque Action Items # 1.
ITEM TITLE: Comprehensive Annual Financial Report (CAFR) and
Auditor's Communication
SUMMARY: City Manager transmitting the Fiscal Year 2015
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.
Eide Bailly CPA Audit Partner Dave Cahill will make a
presentation to City Council.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Presentation
ATTACHMENTS:
Description Type
Submission of FY Ended June 30, 2015 CAFR-MVM City Manager Memo
Memo
Memo Staff Memo
Comprehensive Annual Financial Report Supporting Documentation
Auditor's Communication with Those Charged with Supporting Documentation
Governance Letter
Responses to Auditor's Findings Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2015 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: March 14, 2016
Finance Director Jean Nachtman is transmitting the Fiscal Year 2015 Comprehensive
Financial Report (CAFR), 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 unmodified opinion on the financial
statements.
Eide Bailly CPA Audit Partner Dave Cahill will make a presentation to City Council.
// 'L�r-� k�4 S4.,6nt"
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jean Nachtman, Finance Director
THE CITY OFDubuque
DUB E �il�r
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jean Nachtman, Finance Director
SUBJECT: Submission of Fiscal Year Ended June 30, 2015 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: February 22, 2016
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2015 CAFR audited by
Eide Bailly, LLP, 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 unmodified 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 Circular A-133. This federal regulation mandates audit standards for federal
programs.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste
Agency, Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors
Bureau (CVB) 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 STEP
It is recommended that the City Council receives and files the Fiscal Year 2015 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 make a brief
presentation at the City Council meeting and be available for any questions. Finance
staff will also be attending the meeting.
JN/eml
Enclosures: Fiscal Year 2015 CAFR
Auditor's Communication with Those Charged with Governance Letter
Responses to Auditor's Findings
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended 2015
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Photo by:
Mark Hirsch Photography "A view from the Mississippi Riverwalk"
www.markhirschphoto.com
Cover design by:
Kelli Buchenau
Comprehensive Annual Financial Report
June 30, 2015
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANK
Introductory Section
June 30, 2015
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-10
City Organizational Chart 11
Officials 12
Certificate of Achievement for Excellence in Financial Reporing 13
FINANCIAL SECTION
Independent Auditor's Report 17-19
Management's Discussion and Analysis 21-30
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 1 32-33
Statement of Activities 2 34
Fund Financial Statements
Balance Sheet—Governmental Funds 3 36
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 3-1 37
Statement of Revenues,Expenditures, and Changes in Fund
Balances—Governmental Funds 4 38
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 39
Statement of Net Position—Proprietary Funds 5 40-43
Statement of Revenues,Expenses, and Changes in Fund Net Position
—Proprietary Funds 6 44-45
Statement of Cash Flows—Proprietary Funds 7 46-49
Statement of Fiduciary Assets and Liabilities—Agency Funds 8 50
Notes to Financial Statements 51-101
Required Supplementary Information
Schedule of Receipts,Expenditures, and Changes in Balances—Budget
and Actual(Budgetary Basis)—Governmental Funds and Enterprise Funds 105
Note to Required Supplementary Information—Budgetary Reporting 106
Schedule of the City's Proportionate Share of Net Pension Liability— Iowa
Employees'Retirement System 107
Schedule of City's Contribution—Iowa Employees'Retirement System 108
Notes to Required Supplementary Information— Net Pension Liability IPERS 109-110
Schedule of the City's Proportionate Share of Net Pension Liability— Municipal
Fire and Police Retirement System of Iowa 111
Schedule of City's Contributions—Municipal Fire and Police Retirement System 112
of Iowa 113
Notes to Required Supplementary Information— Net Pension Liability MFPRSI
Schedule of Funding Progress for the Retiree Benefit Plan 114
Combining Fund Statements
Combining Balance Sheet—Nonmajor Governmental Funds A-1 118-120
Combining Statement of Revenues,Expenditures, and Changes in
Fund Balances—Nonmajor Governmental Funds A-2 122-124
Combining Statement of Net Position—Nonmajor Enterprise Funds B-1 126
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position—Nonmaj or Enterprise Funds B-2 127
Combining Statement of Cash Flows—Nonmajor Enterprise Funds B-3 128-129
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CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION(continued) Exhibit Page
Combining Statement of Net Position—Internal Service Funds C-1 132-133
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position(Deficit)—Internal Service Funds C-2 134-135
Combining Statement of Cash Flows—Internal Service Funds C-3 136-137
Combining Statement of Changes in Assets and Liabilities— Agency Funds D-1 139
STATISTICAL SECTION(Unaudited) Table Page
Statistical Section Contents 143
Financial Trends
Net Position by Component 1 144-145
Changes in Net Position 2 146-149
Fund Balances of Governmental Funds 3 150-151
Changes in Fund Balances of Governmental Funds 4 152-153
Revenue Capacity
Taxable and Assessed Value of Property 5 154
Property Tax Rates—Direct and Overlapping Governments 6 155
Principal Property Taxpayers 7 156
Property Tax Levies and Collections 8 157
Debt Capacity
Ratios of Outstanding Debt by Type 9 158-159
Ratios of General Bonded Debt Outstanding 10 160
Direct and Overlapping Governmental Activities Debt 11 161
Legal Debt Margin Information 12 162-163
Revenue Debt Coverage 13 164
Water and Sewer Receipt History 14 165
Water Meters by Rate Class 15 166
Largest Water and Sewer Customers 16 167
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining 17 168
Demographic and Economic Information
Demographic and Economic Statistics 18 169
Principal Employers 19 170
Operating Information
Full-Time Equivalent City Government Employees by
Function/Department 20 172-173
Operating Indicators by Function/Program 21 174-175
Capital Asset Statistics by Function 22 176-177
Retail Sales 23 178
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 GovemmentAuditing Standards 181-182
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Internal Control Over Compliance Required by with OMB
Circular A-133 183-185
Schedule of Expenditures of Federal Awards 186-189
Notes to the Schedule of Expenditures of Federal Awards 190
Schedule of Findings and Questioned Costs 191-198
Corrective Action Plan 199
Summary Schedule of Prior Federal Audit Findings 200
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Finance Department
Dubuque 50 West 13th Street
THE CITY Dubuque,Iowa 52001-4805
QUE -�aC# Office(563)589-4133
Ti Fax(563)690-6689
TTY(563)690-6678
finance@cityofdubuque.org
Masterpiece on the Mississippi
2OD7-2012.2013 www.cityofdubuque.org
February 22, 2016
Honorable Mayor, City Council Members,
and Citizens of the City of Dubuque
The Comprehensive Annual Financial Report (CAFR) of the City of Dubuque, Iowa, for the fiscal year
ended June 30, 2015, 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 2015. In addition to meeting the
requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual
single audit in conformity with the U.S. Office of Management and Budget Circular A-133,Audits of States,
Local Governments and Non-Profit Organizations. Information related to this single audit, including the
Schedule of Expenditures of Federal Awards, findings and recommendations, and the auditor's report on
internal control over financial reporting and compliance with requirements applicable to laws, regulations,
contracts, and grants, are included in the Compliance Section of this report. The independent auditors'
report is included in the Financial Section of this report.
This report includes all funds of the City of Dubuque, as well as its component units. Component units are
legally separate entities for which the City of Dubuque is financially accountable. The City provides a full
range of services including police and fire protection, sanitation services, the construction and maintenance
of roads, streets, and infrastructure, inspection and licensing functions, maintenance of grounds and
buildings, municipal airport, library, recreational activities and cultural events. In addition to general
government activities, the municipality owns and operates enterprises for a water system, water resource
and recovery center, storm water system, parking facilities, refuse collection, and public transportation.
This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA), Dubuque
Initiatives and Subsidiaries, and the Dubuque Convention and Visitors Bureau (CVB) 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, who contracts with the city to operates the
landfill. Dubuque Initiatives is organized to render service to 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. In fiscal year 2014 The Dubuque CVB, formerly part of the Dubuque Area Chamber of
Commerce, was established as a separate non-profit corporation. Dubuque CVB's purpose is to strengthen
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the Dubuque area economy by competitively marketing the area as a destination for conventions, tour
groups, sporting events and individual travelers. The Organization's nine member board includes one City
Council member, the City of Dubuque Mayor and the City Manager. In the event of dissolution, any assets
or property of the organization shall be transferred to the City. The City collects hotel/motel taxes and
forwards 50%to the CVB as the primary source of funds for its operations.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Dubuque's MD&A can be found
immediately following the independent auditor's report.
PROFILE OF THE CITY
The City of Dubuque is located on the Mississippi River in northeast Iowa, adjacent to the states of Illinois
and Wisconsin. Julien Dubuque began mining lead in the area now known as Dubuque in 1788. Dubuque is
the oldest city in Iowa and has a unique combination of the old and new, ranging from cable cars, Victorian
architecture, and a Civil War era shot tower, to an enclosed shopping mall, two casinos, one with a
pari-mutuel dog track and the Smithsonian-affiliated National Mississippi River Museum and Aquarium.
The Dubuque Museum of Art announced January 2016, that it is now affiliated with the Smithsonian. 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 November
2015, the City and County unemployment rate was 3% below the 3.4% state and 5% 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
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.
Several trade and business publications have recognized the City's efforts to diversify its economy. Area
Development magazine named Dubuque one of the "Top 100 Leading Locations"for 2014, ranking it 21st
in the U.S. Also in 2014, Site Selection magazine named Dubuque the "Top Metro in the U.S." among
metros with populations of 50,000-200,000 for number of economic development projects. In August 2014,
SmartAsset.com named Dubuque one of the "10 Best American Cities to Work in Technology." This
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ranking was based on pay for tech workers, percentage of tech workers in the workforce (representing high
levels of opportunity in the field), and low cost of living indices. The Milken Institute named Dubuque
2013's 10th Best-Performing Small Metro in December 2013, saying Dubuque's secrets to its success are
five-year high-tech GDP growth and improvements in one- and five-year job and wage growth. In August
2013, Dubuque was ranked 14th in the nation in Forbes' annual `Best Small Places for Business and
Careers." According to Iowa Workforce Development, 8% of Iowa's non-farm employment growth from
2009-2013 occurred in Dubuque County, which has just 3% of the state's population. The City's continual
development in its industrial parks has not only attracted new industries but,just as importantly, retained
existing businesses.
Dubuque Industrial Center West(DICW)
Over 550 saleable acres were acquired in 1997. Since then, 21 local business expansions and 4 new
industries inhabit the park. In 2014, Theisen's distribution center completed an 80,000 square foot
expansion and the TriState Quality Metals 44,000 square foot plant is under construction.
Dubuque Industrial Center South(DICS)
Ribbon cutting for the new industrial park occurred November 2013. The park contains 76.16 available
acres. TriState Quality Metals relocated from its 10,000 square foot operation in Peosta, IA, to construct a
44,000 square foot facility in the DICS. TriState is the first company to locate in the park. Employment
has increased from 13 to 40 jobs since the relocation. Roasting Solutions, LLC(dba Verena Street Coffee)
has purchased 12.03 acres and construct a new 34,000 square foot facility. Total investment in land, plant
and equipment is $7 million, and will add 10 new jobs. Verena Street Coffee supplies over 700 grocery
stores and wholesalers in the Iowa,Illinois, Minnesota, and Wisconsin area. The company began operations
in 2010.
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 are currently located in the park. In 2015, Rockfanm Holdings completed
construction of their new headquarters office building consisting of 14,000 square feet. Kunkel and
Associates' expansion is adding an extra 20,000 square feet to its current Dubuque facilities and 16 new
jobs.
Over $100 million has been spent in the downtown area,where more than 9,000 people work. IBM employs
625 workers on five renovated floors of the nine-story Roshek Building and Heartland Financial relocated
existing staff to the third floor of the building. RSM US LLP has announced that it will relocate 60
employees into this building during 2016.
The Schmid Innovation Center, a $28 million private renovation project in the Millwork District, received
two awards of $3 million and $5.9 million in CDBG funds to develop workforce housing. The 72-unit
residential project was completed in September 2012. Nonprofits moved into the basement space, while
several commercial tenants occupy the first floor. A food co-op, located on the first floor, opened in the
spring of 2014. The first floor is nearing 100%occupancy. Renovation of 76 residential units in the Novelty
Iron Works has been completed. The Linseed Oil Building renovation, completed in 2015, includes 16
apartments.
Commercial development continues after the October 2014 opening of a new 114,000 square foot Blain's
Farm & Fleet retail store. Spahn and Rose Lumber completed construction of a new warehouse and
showroom that together total 93,000 square feet. New retail stores that have opened include Kwik Star,
Kwik Stop/Fazoli's, McGrath Automotive Group, Cato Fashions, and Men's Warehouse. New restaurants
currently under review include Chick-fil-a, Popeye's, and Chipotle Grill.
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UnityPoint Health Finley Hospital is completing a $42 million three-story 70,000 square foot addition that
will house the Finley Heart and Vascular Center, and new emergency and surgery departments. The new
facility is being built on the west side of the current hospital structure facing Grandview Avenue. The
expected date opening is early 2016.
The University of Dubuque completed construction of a new intramural/practice facility and its new four-
story Chlapaty Residence Hall opened in the fall of 2014. Loras College completed Phase B of the $4
million Loras Parkway which includes their new Welcome Center featuring Einstein Bros.® Bagels at the
corner of Loras Boulevard. The $825,000, approximately 4,000 square-foot facility provides a space where
Dubuque community members can converge, while enjoying food and friendship. The Loras Parkway
project began in 2010 when Loras College purchased a section of Cox Street from the City of Dubuque.
Since then, Loras Parkway has transformed into a pedestrian walkway and common area where students,
faculty and the Dubuque community can centralize. Once the entire project is completed, Loras Parkway
will bridge upper and lower campus by providing a scenic welcome plaza,retail building, water feature, and
a Veteran's memorial commemorating Loras College veterans.
The City's recent awards and recognition from a variety of sources include:
• Dubuque just became the third Iowa community and the 25th in the nation to achieve
certification under the national STAR Community Rating System, a sustainability rating system
which evaluates communities based on a range of different aspects: built environment; climate
and energy; economy and jobs; education, arts and community; health and safety; and natural
systems. (May 2015)
• The Dubuque metropolitan area was named 13th "Best-Performing" Small Metro for 2014 by
Milken Institute for job creation, sustaining jobs, and economic growth.
• The White House named Dubuque one of 16 Climate Action Champions, a diverse group of
communities defining the frontier of ambitious climate action whose approaches can serve as a
model for other communities. (December 2014)
• The Intelligent Community Forum named Dubuque as one of the world's Smart2l Communities
of 2015. Dubuque was one of just five U.S. communities named to the list. (October 2014)
• The U.S. Environmental Protection Agency (EPA) awarded Dubuque its 2013 Smart Growth
Achievement Award for Corridor or Neighborhood Revitalization for work done in Dubuque's
Historic Millwork District and Washington Neighborhoods. (February 2014)
• 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)
• Kiplinger's Personal Finance named Dubuque one of"10 Great Places to Live" for 2013. (July
2013)
• Dubuque was named a 2013 All-America City by the National Civic League for a community
initiative to improve grade-level reading. This is the third time Dubuque has received this
recognition. (July 2013)
• The America's Promise Alliance named Dubuque one of its 100 Best Places for Young People
for 2012. Dubuque received this distinction in 2007, 2008, 2010, and 2011. (September 2012)
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.
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The Dubuque Regional Airport began construction in the Fall of 2012 of the new Airline Passenger
Terminal Facility, while continuing the effort to meet current and forecasted passenger demand for
Dubuque and the surrounding communities. All project elements are scheduled to be completed in 2016;
though, ahead of schedule and currently under budget.
At the request of FAA, the various design phases associated with the development of the new Passenger
Terminal Facility (site work and building-related) that were programmed throughout the project have been
moving forward. It is expected that approximately 84 percent 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 utilized for this project
The Dubuque Regional Airport received 24 consecutive years 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. The Dubuque airport meets or exceeds all federally
mandated standards, rules, and policies which promote safety at all commercial airports. No other airport in
the country has a perfect FAR Part 139 safety compliance for a consecutive 24-year period.
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. And, 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 Bee Branch Watershed Flood Mitigation Project is a $219 million multi-phased investment to mitigate
flooding, improve water quality, stimulate investment, and enhance quality of life within the Bee Branch
Watershed. The City is receiving $159 million in state and federal grants.
As part of the project, the City will convert all 240 alleys in the Bee Branch Watershed to "green alleys"
which features permeable concrete pavers. These specially designed pavers allow water to pass through the
surface and filter into the soil below. The green alleys are expected to reduce the amount of storm water
run-off in the watershed by up to 80 percent and prevent flooding. In addition to reducing storm water
run-off, the green alleys will replenish ground water and help prevent pollutants on roadways from running
off into the storm sewer system, and ultimately, the Mississippi River. Twenty-two alleys were constructed
in 2014. Approximately twenty-eight alleys will be completed in 2015 and the final twenty- three alleys
completed in the spring of 2016.
The $70 million renovation of the Water and Resource Recovery Center(W&RRC)was completed in 2013.
The facility is currently operating at 65 percent capacity. It features methane production/capture and
co-generation to produce electricity and create heat for the operation of the facilities. The W&RRC is
expected to be electrically self-sufficient within a few years and will save $250,000 in annual energy
expenses. It now better serves local industries by accepting high-strength waste. The project is more
environmentally friendly than the former waste incineration. The projects are funded by state revolving loan
funds repaid with sanitary sewer user fees.
The City of Dubuque's Transit Division's $12 million Intermodal Transportation Facility opened August
2015, provides a vital transportation connections required for the success of existing investments and will
be instrumental in leveraging additional investments required to achieve the long-term goals for downtown
Dubuque. The centralized transportation hub connects automobile, bus, and pedestrian traffic, while
increasing demand for alternative transportation modes. The County and School District will benefit from
the center, as it provides various transportation options for Millwork District and Washington
Neighborhood residents, as well as visitors and downtown employees, spurring economic development in
the District. Part of the project will be funded with an $8 million grant from the U.S. Federal Transit
Administration. A $4.2 million renovation of the former public works building will house the bus
maintenance center. The projects are scheduled for completion in 2015.
Transit ridership is up 47%in the last five years. Route restructuring in January 2014, including crosstown
express service, new service areas, and extended service hours, has led to continuing ridership growth for
Dubuque's transit system.
In 2013, the City of Dubuque and the Dubuque Metropolitan Area Transportation Study (DMATS)
successfully negotiated a Memorandum of Understanding with the Iowa Department of Transportation
(Iowa DOT)for the transfer of the Southwest Arterial project. The Iowa DOT, DMATS, Dubuque County,
and the City of Dubuque have budgeted approximately $140 million to build the Southwest Arterial over
the next five years. Following the completion of the Southwest Arterial in 2019, the project has the
potential to generate $80 million in property taxes, $1.67 billion in economic output, $653 million in labor
income, and $1.02 billion in value added from 2021 to 2030. The Southwest Arterial will also annually
generate $135 million in state and local taxes and $130 million in federal tax from new economic
development, as well as save $30 million for the 10-year period. This project will also generate $16 million
in property tax, $304 million in economic output, $24 million in state and local taxes, and $24 million in
federal taxes due to economic development, in addition to $3 million in safety savings from 2030 onwards.
Side benefits include removing over 500 commercial vehicles a day from downtown streets and
encouraging redevelopment on Central Avenue and White Street. Almost 1,000 trucks per day will be
removed from US Highway 20/Dodge Street. Additional traffic will be removed from Kelly Lane, Fremont
Avenue, Cedar Cross Road,Rockdale Road, and other residential streets.
For the Future. The Mayor and City Council will continue to take action to achieve their goals of
maintaining a strong local economy, sustaining stable property tax levies, and enhancing the safety and
security of citizens through neighborhood vitality. The City staff will work to implement the City Council's
vision that Dubuque is a "Masterpiece on the Mississippi." A program of comprehensive service reviews
has continued as a vehicle for analyzing City services, identifying opportunities for improvement, and
determining areas of possible cost reductions. The goal of the service review program is to ensure that
services desired by the citizens are provided in the most cost effective and efficient method possible. The
City Council's goals for the next five years and beyond include the following:
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity: Transportation and Communications
• Economic Prosperity
• Social/Cultural Vibrancy
• Environmental/Ecological 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.
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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, 2015, provided one instance of material weaknesses in internal
control over compliance, and material non compliance. 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 system as one
technique for accomplishing budgetary control. Encumbered amounts lapse at year-end; however,
encumbrances generally are re-appropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
Cash Management. Cash temporarily idle during the year was invested in demand deposits, certificates of
deposit, federal agency obligations, and authorized mutual funds. The City (including DMASWA) received
cash basis investment earnings of$643,872 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 $574,716 deficit as of June 30, 2015. 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 $1,557,924 as of June 30, 2015. 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 assigned a Aa3 rating on the Series 2015X which reflects the
City's sizable tax base and role as a regional economic center in northeastern Iowa, a trend of strong
employment growth which is projected to continue, recent declines in fund balance and cash reserves which
are expected to stabilize at healthy levels going forward, high debt burden with additional borrowing
planned, and moderate exposure to unfunded pension liabilities. 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
9
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, 2014. This was the 27th
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive
annual financial report continues to meet the Certificate of Achievement program requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
GFOA also awarded a Certificate of Recognition for Budget Preparation to the City of Dubuque, Iowa, for
its annual budget for the fiscal year ended June 30, 2015. In order to receive this award, a governmental unit
must publish a budget document that meets program criteria as a policy document, as an operations guide,
as a financial plan and as a communications device. This was the 10th consecutive year that the City has
achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque's investment policy was awarded the Certification of Excellence in July 2009 by the
Association of Public Treasurers of the United States and Canada. The investment policy is reviewed every
five years by the APT US&C. The City plans to resubmit the investment policy for review in 2016.
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 Jean M.Nachtman, CPA, CPFO
City Manager Finance Director
10
CITY OF DUBUQUE ORGANIZATIONAL CHART
Citizens of Dubuque
City Attorney City Council City Clerk
Library _ - _ _ - _ _ - _ _ - .......
_ _ _ _ _ _ _ _ _ _ _ _ Airport
Management/Legislative City Manager's Neighborhood
Office Development
Personnel
Public Information Office
Sustainability
Cable TV Geographic
Budget _ Finance Information Information_
Services Systems
Emergency Health Services
Communications
Planning Services Police
Department
Economic Fire Department
Development
Transit Division Parking Emergency Ambulance
Management Services
Arts and
Cultural Affairs Engineering Housing&
Department Community
Development
Leisure Services Human Rights
LD
tion park Divisionion Training& Human Relations
Workforce
Development
Multicultural Grand River
Eamily Bente enter Building Services Water
Department
Civic Center
Public Works Water&
Resource
Recovery Center
Elected by the Appointed by the Appointed by the Appointed by the
Citizens of Dubuque FCity Council Library Board of Airport Commission 11
Trustees
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30,2015
CITY COUNCIL
Roy D. Buol Mayor
Ric W. Jones Council Member—At Large
David T. Resnick Council Member—At Large
Kevin J. Lynch Council Member— 1st Ward
Karla A. Braig Council Member—2nd Ward
Joyce E. Connors Council Member—3rd Ward
Lynn V. Sutton Council Member-4th Ward
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen City Manager
Barry A. Lindahl City Attorney
Crenna M. Brumwell-Sahm Assistant City Attorney
Maureen A. Quann Assistant City Attorney
Kevin S. Firnstahl City Clerk
DEPARTMENT MANAGERS
Robert A. Grierson Airport Manager
Therese H. Goodmann Assistant City Manager
Cynthia M. Steinhauser Assistant City Manager
Jenny M. Larson Budget Director
Richard R. Russell Building Services Manager
Gus N. Psihoyos City Engineer
Maurice S. Jones Economic Development Director
Kenneth J. TeKippe Finance Director
Rick A. Steines Fire Chief
Mary Rose Corrigan Health Services Manager
Alvin L. Nash Housing and Community Development Manager
Kelly R. Larson Human Rights Director
Randall K. Peck Personnel Manager
Christine A. Kohlmann Information Services Manager
Marie L. Ware Leisure Services Manager
Susan A. Hemicks Library Director
Donald J. Vogt Public Works Director
Laura B. Carstens Planning Services Manager
Mark M. Dalsing Police Chief
Alexis M. Steger Senior Budget Analyst
Robert M. Green Water Department Manager
Jonathan R. Brown Water&Resource Recovery Center Manager
12
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, 2014
Executive Director/CEO
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Financial Section
June 30, 2015
City of Dubuque, Iowa
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Eid�lly.
CPAs&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, 2015, 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 73 percent,
75 percent, and 48 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-4udifing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perforin the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement. The financial statements of
Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau, discretely presented
component units, were not audited in accordance with GavernmentAuditing Standards.
www.eidebailly.com
17
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
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, 2015,
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.
Emphasis of Matter
As discussed in Notes 1 and 14 to the financial statements, the City of Dubuque, Iowa, has adopted
provisions of GASB Statement No. 68,Accounting and Financial Reporting for Pensions and GASB
Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date,
which has resulted in a restatement of the net position as of July 1, 2014. Our opinions are not modified
with respect to this matter.
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 inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
18
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
Organizations, and is also not a required part of the financial statements.
The combining nonmajor fund financial statements and the schedule of expenditures of federal awards are
the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the 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 February 22,
2016, 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.
,A,,,
SGT
Dubuque, Iowa
February 22, 2016
19
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CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
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, 2015. 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 increased to $472,356,199 compared to restated net
position of $458,998,148 for fiscal year 2014.
• Governmental program revenues decreased by $3,281,887 from fiscal year 2014. The largest
portion of the decrease is the lower grants reimbursement as the new terminal for the Dubuque
Regional Airport nears completion.
• The City's business type activities program revenues increased $8,793,211. Charges for services
increased $1,544,111. Water (5%), sewer (5%), stormwater (7%), and refuse (4%) rates were
increased in fiscal year 2015. Grants reimbursements for construction of the new Intermodal
facility accounted for the major portion of the increase.
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, deferred outflows,
liabilities, and deferred inflows, with the difference between assets plus deferred outflows, and liabilities
plus deferred inflows 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 sick and vacation leave.
21
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
The government-wide financial statements include not only the City itself (known as the primary
government), but also three other legally separate entities (known as component units), the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives (DI) and Subsidiaries, and the
Dubuque Convention and Visitors Bureau (CVB) for which the City of Dubuque is considered
financially accountable. Financial information for DMASWA,DI, and CVB are reported separately from
the financial information presented for the primary government. The Dubuque Metropolitan Area Solid
Waste Agency, Dubuque Initiatives and Subsidiaries, and Dubuque Convention and Visitors Bureau
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 and
Dubuque Convention and Visitors Bureau 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.
22
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
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 nonrnajor
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, the City's proportionate share of the net pension liability and related
contributions for both of the City's pension plans, and the funding progress for the retiree benefit plan.
Other information. The combining statements referred to earlier in connection with nonmajor
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.
23
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
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 Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting
for Pensions - an Amendment of GASB No. 27 was implemented during fiscal year 2015. The beginning
net position for governmental activities and business-type activities were restated $38,036,256 and
$4,613,113, respectively, to retroactively report the net pension liability as of June 30, 2013 and deferred
outflows of resources related to contributions made after June 30, 2013 but prior to July 1, 2014. The
financial statement amounts for fiscal year 2014 net pension liabilities, pension expense, deferred
outflows of resources and deferred inflows of resources were not restated because the information was
not available. In the past, pension expense was the amount of the employer contribution. Current
reporting provides a more comprehensive measure of pension expense which is more reflective of the
amounts employees earned during the year.
The largest part of the City's net position reflects its net investment in capital assets such as land,
buildings, infrastructure, machinery, and equipment less any related debt used to acquire those assets that
is still outstanding. The debt related to the investment in capital assets is liquidated with resources other
than capital assets. Restricted net position represents resources subject to external restrictions,
constitutional provisions or enabling legislation on how they can be used. Unrestricted net position, the
part of net position that can be used to frlance day-to-day operations without constraints established by
debt covenants, legislation, or other legal requirements.
CITY OF DUBUQUE'S NET POSITION
Governmental Activities Business-type Activities Total
2014 2014 2014
2015 Not Restated 2015 Not Restated 2015 Not Restated
Current and other assets $ 93,298,918 $ 92,022,599 $ 56,877,806 $ 23,995,010 $ 150,176,724 $ 116,017,609
Capital assets 392,392,426 389,254,518 271,529,923 254,101,852 663,922,349 643,356,370
Total assets 485,691,344 481,277,117 328,407,729 278,096,862 814,099,073 759,373,979
Deferred outflows of resources 7,605,182 768,132 8,373,314
Longterm liabilities 120,426,392 84,934,637 165,817,987 126,080,517 286,244,379 211,015,154
Other liabilities 14,310,233 13,434,655 10,229,278 8,451,638 24539511 21,886,293
Total liabilities 134,736,625 98,369,292 176,047,265 134,532,155 310,783,890 232,901,447
Deferred inflows of resources 37,918,563 24,825,015 1,413,735 39,332,298 24,825,015
Net position:
Net investment in capital assets 348,173,267 354,732,451 148,487,126 138,842,390 496,660,393 493,574,841
Restricted 22,047,405 21,501,638 7,796,668 5,315,519 29,844,073 26,817,157
Unrestricted (49,579,334) (18,151,279) (4,568,933) (593,202) (54,148,267) (18,744,481)
Total net position $ 320,641,338 $ 358,082,810 $ 151,714,861 $ 143,564,707 $ 472,356,199 $ 501,647,517
Net position of the governmental activities remained steady, increasing $594,784 over restated fiscal
year 2014 balance of$320,046,554. Grant revenues decreased $3.3 million. Grant revenues for the new
airport terminal decreased $5.8 million as the projects near completion, were offset by new grant
revenues of$2.3 million for the South West Arterial.
24
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
Net position for the business-type activities increased $12,763,267 over restated fiscal year 2014 of
$138,591,594. Charges for services increased $1,544,111. The increase in charges for services revenue
reflects the increase in water, stormwater, and refuse by 5% and the 5% in sewer rates for 2015. Non-
operation grant revenues for transit system increased $4,952,242 related to Transits portion of the grants
for the Intermodal Transportation Center.
A portion of the City's net position $29,844,073 or 6.3%represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2015 the City has negative total unrestricted net position. The government-
wide negative unrestricted results from the $38 million reduction in net position from the GASB No.68
restatement, and TIF (governmental activities) debt being used to finance capital assets of the
business-type activities. The City records a $2.7 million payable for settlement of the Zaber lawsuit
involving over charging of franchise fees. The claim is scheduled to be paid in 2016. Business-type
activities negative unrestricted results from the lag in storm water capital projects completed in fiscal
year 2015 and reimbursement in 2016 with the State Revolving Loan fund proceeds, and the $4 million
reduction in net position due to the GASB No. 68 restatement.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$36,277,719 in 2015 . Other governmental revenues included gaming $7,397,709, local option sales
taxes $8,760,246, and charges for services $14,665,456. Gaming revenues continues to declined due to
increased competition from neighboring Illinois that now allows video gambling in bars.
Governmental operating expenses during 2015 totaled $87,054,103. The largest programs were public
safety of $25,525,937, public works of $19,207,837, community and economic development of
$18,064,831, and culture and recreation of$13,002,690.
Business-type activities. Business-type activities increased net position by $12,763,267 in fiscal year
2015 compared to the restated fiscal year 2014 net position of $138,951,594. Operating revenue
increased $1,543,285. Water's supplies and services expenses were lower in fiscal year 2015 than fiscal
year 2014, reflecting a milder winter and fewer main breaks. Intergovernmental revenue increased
$8,286,768; of which, $5.2 million was an FTA capital grant for the Intermodal Transportation Center.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total
2014 2014 2014
2015 Not Restated 2015 Not Restated 2015 Not Restated
Revenues:
Program revenues
Charges for services $ 14,665,456 $ 14,696,269 $ 28,985,655 $ 27,441,544 $ 43,651,111 $ 42,137,813
Operating grants and contributions 11,992,439 12,784,907 1,866,535 1,717,208 13,858,974 14,502,115
Capital grants and contributions 9,704,043 12,162,649 10,020,715 2,920,942 19,724,758 15,083,591
General revenues
Property taxes 36,277,719 33,264,283 - - 36,277,719 33,264,283
Local option sales tax 8,760,246 8,211,366 - - 8,760,246 8,211,366
Hotel/motel tax 2,623,551 2,006,514 - - 2,623,551 2,006,514
Utility franchise fees 2,828,688 2,609,421 - - 2,828,688 2,609,421
Gaming 7,397,709 7,878,008 - - 7,397,709 7,878,008
Unrestricted investment earnings 668,134 777,958 185,356 135,461 853,490 913,419
Gain on sale of capital assets 19,495 483,782 6,571 180,229 26,066 664,011
Total revenues 94,937,480 94,875,157 41,064,832 32,395,384 136,002,312 127,270,541
Expenses:
Public safety 25,525,937 27,578,517 - - 25,525,937 27,578,517
Public works 19,207,837 21,306,882 - - 19,207,837 21,306,882
Health and social services 928,968 1,055,398 - - 928,968 1,055,398
Cuture and recreation 13,002,690 13,696,331 - - 13,002,690 13,696,331
Community and economic
development 18,064,831 14,591,257 - - 18,064,831 14,591,257
General government 6,420,173 9,610,084 - - 6,420,173 9,610,084
Interest on long-term debt 3,903,667 3,684,993 - - 3,903,667 3,684,993
Sewage disposal works - - 12,019,866 11,481,103 12,019,866 11,481,103
Water utility - - 7,800,393 8,812,340 7,800,393 8,812,340
Stommater utility - - 4,131,562 3,431,096 4,131,562 3,431,096
Parking facilities - - 3,383,419 3,732,492 3,383,419 3,732,492
America's River Project - - 24,000 33,579 24,000 33,579
Refuse collection - - 3,740,404 3,750,366 3,740,404 3,750,366
Transit system - - 4,245,823 3,847,320 4,245,823 3,847,320
Salt 244,691 56,468 244,691 56,468
Total expenses 87,054,103 91,523,462 35,590,158 35,144,764 122,644,261 126,668,226
Increase(decrease)in net position
before extraordinary item and transfers 7,883,377 3,351,695 5,474,674 (2,749,380) 13,358,051 602,315
Transfers (7,288,593) (2,444,846) 7,288,593 2,444,846
Increase(decrease)in net position 594,784 906,849 12,763,267 (304,534) 13,358,051 602,315
Net position,beginning as restated 320,046,554 357,175,861 138,951,594 143,869,241 458,998,148 501,045,102
Net position,ending $ 320,641,338 $ 358,082,810 $ 151,714,861 $ 143,564,707 $ 472,356,199 $ 501,647,71
26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
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.
The City's governmental funds reported a combined fund balance of $59,401,841 at June 30, 2015.
$7,196,053 is in nonspendable for inventory, advances to other funds, receivables, and prepaid items.
$69,412 is nonspendable endowment corpus. $30,496,183 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 $12,298,896 for capital
improvements. $647,772 is assigned for capital improvements and equipment. This leaves $8,693,524
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 $386,595 to $15,423,339. Gaming revenues declined
$480,299 or 6.1%in fiscal year 2015, less than 1%lower than expected. The gaming market continues to
be adversely impacted by neighboring State of Illinois Video Gaming Act which legalized the use of
video gaming terminals in liquor licensed establishments including bars, restaurants, truck stops and
certain fraternal and veterans' organizations. Increase in tax revenue of $2.1 million was offset by a
decrease in intergovernmental revenue of$1.2 million. The City still has outstanding legal fees related to
the Utility Franchise Fee lawsuit(Zaber). These fees will be recovered in 2016 when the settlement is
finalized.
The fund balance of special revenue fund Tax Increment Financing increased by $1,967,868 to
$6,049,530 due to an increase in tax revenue of$1,749,809.
The fund balance of the Capital Projects Fund general construction decreased by $3,617,012 to
$9,915,113. Revenue for capital projects are not always received in the same fiscal year as project
expenses occur.
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, 2015, totaled $151,714,861 of which the
unrestricted is a negative $4,568,933. This is primarily due to expenses in 2015 for stormwater projects
being reimbused through the State of Iowa revolving loan fund in 2016.
The net position of the Internal Service Funds decreased by $1,064,162 to a negative $326,939. The
Health Insurance Reserve Fund increased $307,191 while the Workers' Comp Reserve decreased
$137,745. Both funds experienced higher expenses in fiscal year 2015 than fiscal year 2014. The
unrestricted net position of the Internal Service Funds is a negative $567,029.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
The Sewer Fund had a decrease by $5,197,713 for total net position of $31,469,829 based on the restated
fiscal year 2014 ending balance. Assets for green alley improvements were moved from Sewer Fund into
Stormwater Fund to reflect the enterprise benefiting from the assets. The debt for the green alley project
is paid with sewer revenue funds. This is an agreement with the Iowa State Revolving Loan. Debt
service for the new Water and Resource Recovery Center was increased by $9.4 million and the interest
rate was lowered so the net debt service cost for the City remained the same. The requirement was that
the improvements had to be made in a service other than sewer. The City chose to use the funding for the
green alley project which is a stormwater utility. Currently $3.2 million of debt for green alley is
recorded in the Sewer Fund and assets in the stormwater fund.
The Water Utility had an increase in net position by $407,589 for total net position of$22,501,868 based
on the restated fiscal year 2014 ending balance. Water rates were increased 5%in 2015.
The Storm Water Utility had a 22.3% increase in net position of$7,005,598 based on the restated fiscal
year 2014 ending balance . Ending net position is $38,469,652. $3.8 million in assets for green alley
project was transferred to storm water from sewer. The debt for this asset is remaining in the sewer fund.
The Parking Facilities held steady with a increase in net position of $659,027. Ending net position is
$38,786,705. Revenues increased $116,066. Fiscal year 2015 fees for parking tickets and parking ramps
were increased.
The Transit System was moved to a major fund in 2015 due to increased grant revenue for Intermodal
Transportation Center. Net positon increased $9,397,314 over 2014 restated ending balance.
Other Enterprise Funds net position increased by $80,445 to $1,697,270 over fiscal year 2014 restated
ending balance. This was primarily due to an increase of transfers in to the Salt Fund for reimbursement
of prior year expenses.
Health Insurance Reserve increased in fiscal year 2015 by $307,191. Revenues increased by $492,564
and claims increased 9%over 2014.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2014-2015 cash basis budget. The first amendment was
passed in September 2014 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2014 and amended the fiscal year 2014 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in April
2015 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 $13,372,555. 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 $60,824,958 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.
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
Actual cash basis revenues were $39,407,755 less than the final amended budget; and, cash basis
expenditures were $101,371,598 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business-type activities as
of June 30, 2015, amounts to $663,922,349 (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
Note 6 to the financial statements in this report.
CAPITAL ASSETS(net of accumulated depreciation)
Governmental Activities Business-type Activities Total
2015 2014 2015 2014 2015 2014
Land $ 68,906,705 $ 67,080,527 $ 22,482,687 $ 18,722,641 $ 91,389,392 $ 85,803,168
Buildings 127,812756 127,599741 136,395,921 136,007778 264,208,177 263,606,719
Improvements other than buildings 22,219,094 22,219,094 99,006,869 94,055,495 121,225,963 116774,589
Machinery and equipment 40,667979 39,518716 96,550,475 95,332,143 137,218,454 134,850,359
In9astrncture 216,205,431 215,931,579 - - 216,205,431 215931,579
Constrnction in progress 52,565,551 44,054916 21,008,496 6,978,822 73,574,047 51,033,738
Accmmilated depreciation (135984,590) (127,149,155) (103914,525) (96994,627) (239,899,115) (224,143,782)
$ 392,392,426 $ 389,254,518 $ 271,529923 $ 254,101,852 $ 663,922,349 $ 643756,370
Major expenditures during 2014-2015 were for the construction work on the Intermodal projects, Green
Alley projects,new Airport terminal related contruction, and Bee Branch storm water projects.
Long-term debt At year end, the City had $253,158,630 of debt outstanding. In fiscal year 2015, the City
issued Sales Tax Incremental Revenue bonds (series 2015A) for flood mitigation projects in the Bee
Branch area. This loan is part of the $98.7 million state grant award to the City that will be paid over the
next twenty years for flood mitigation projects. The grant is computed based on the incremental increase
in sales tax receipts collected by the state. The debt service payment for flood mitigation projects
approved under this grant are reimbursed through this grant. In case the sales tax incremental receipts
are not sufficient to cover the debt service a second lien is filed against property tax support.
The City issued General Obligation bonds series 2014B for the purpose of acquisitions of ambulances
and ambulance improvements, improvements to parks, airport, streets, sanitary sewer and water mains,
equipping police, and street departments. General obligation bonds series 2014C for improvements to
the parking ramps and lots, parking meter replacements, urban renewal projects including transit building
roof repair, Central Avenue Master Plan, and bus storage and maintence facility improvements; and
aquisition, construction, maintenance, improvements and equipping parking ramps, parking lots, and
street parking.
The City received $5,525,021 in distributions four the State of Iowa Revolving Loan Fund for
Stormwater Bee Branch projects.
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 the City's debt capacity is $193,113,721. With $173,597,304 of debt applicable against the capacity,
the City is utilizing 89.9%of this limit. Additional information on the City's long-term debt can be found
in Note 7 of this report.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2015
ECONOMIC FACTORS
The City's unemployment rate as of December 2015 was 3.6%compared to 3.7%. in December 2014. The
national average was 5% for December 2015, according to the Bureau of Labor Statistics. State of Iowa
was 3.4%as reported in November 2015.
The assessed valuation of taxable property, net of exemptions, increased by 5% to $2,522,048,000. In
fiscal year 2015,the minimum monthly refuse rate increased from $12.74 to $13.24, sewer and water rates
increased 5%, and the storm water monthly fee increased from $5.60 to $5.98 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.
30
Basic Financial Statements
June 30, 2015
City of Dubuque, Iowa
31
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
JUNE 30,2015
Primary Government Component Units
Dubuque
Metropolitan Dubuque Dubuque
Governmental Business-type Area Solid Initiatives and Convention and
Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 22,349,886 $ 8,093,879 $ 30,443,765 $ 1,225,447 $ 2,001,747 $ 15,465
Receivables
Property tax
Delinquent 362,190 - 362,190 - - -
Succeeding year 24,906,544 - 24,906,544 - - -
Accounts and other 1,779,875 2,809,193 4,589,068 255,924 595,297 -
Special assessments 756,293 - 756,293 - - -
Accrued interest 122,035 15,843 137,878 7,148 - -
Notes 747,830 - 747,830 - 27,554 -
Intergovernmental 4,871,355 3,284,677 8,156,032 - -
Internal balances 5,171,550 (5,171,550) - - - -
Inventories 655,399 775,006 1,430,405 - 530,251 15,095
Prepaid items 208,485 17,691 226,176 12,817
Total Current Assets 61,931,442 9,824,739 71,756,181 1,501,336 3,154,849 30,560
NONCURRENT ASSETS
Expendable cash&investments 18,503,285 47,053,067 65,556,352 8,601,083 1,405,495 52,193
Nonexspendable restricted cash&investments 69,412 - 69,412 - - -
Notes receivable 12,794,779 - 12,794,779 - 10,372,277 -
Capital assets
Land 68,906,705 22,482,687 91,389,392 2,952,666 17,723 -
Buildings 127,812,256 136,395,921 264,208,177 106,495 44,408,906 -
Improvementsotherthanbuildings 22,219,094 99,006,869 121,225,963 10,306,408 132,817 -
Machinery and equipment 40,667,979 96,550,475 137,218,454 4,022,922 - 309,926
Infrastructure 216,205,431 - 216,205,431 - - -
Constructioninprogress 52,565,551 21,008,496 73,574,047 810,960 -Accumulated depreciation (135,984,590) (103,914,525) (239,899,115) (9,174,666) (5,543,364)
Total Noncurrent Assets 423,759,902 318,582,990 742,342,892 17,625,868 50,793,854 362,119
Total Assets 485,691,344 328,407,729 814,099,073 19,127,204 53,948,703 392,679
DEFERRED OUTFLOWS OF RESOURCES
Pension Related deferred outflows $ 7,605,182 $ 768,132 $ 8,373,314 $ 81,578 $ - $
32
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION(continued)
JUNE 30,2015
Primary Government Component Units
Dubuque
Metropolitan Dubuque Dubuque
Governmental Business-type Area Solid Initiatives and Convention and
Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 6,982,210 $ 3,918,202 $ 10,900,412 $ 330,848 $ 478,859 $ 194,794
Accrued payroll 566,030 179,274 745,304 17,229 - -
Loans payable 97,143 25,433 122,576 - - 43,442
Notes payable 186,189 3,123,000 3,309,189 - 448,206 -
General obligation bonds payable 4,774,098 2,240,902 7,015,000 185,000 - -
Revenuebondspayable - 285,000 285,000 - - -
Tax increment financing bonds payable 410,000 - 410,000 - - -
Accrued compensated absences 349,434 21,267 370,701 28,497 - -
Accruedinterestpayable 309,630 436,200 745,830 10,632 52,990
Intergovernmental payable 4,987 - 4,987 53,940 - -
Unearned revenue 630,512 630,512
Total Current Liabilities 14,310,233 10,229,278 24,539,511 626,146 980,055 238,236
NONCURRENT LIABILITIES
Loans payable 5,347,142 236,622 5,583,764 - - 122,217
Notes payable 625,419 82,324,971 82,950,390 - 26,733,502 -
General obligation bonds payable 54,840,843 43,627,492 98,468,335 4,454,086 - -
Revenuebondspayable - 34,258,432 34,258,432 - - -
Landfill closure and posiclosure care - - - 4,619,086 - -
Tax increment financing bonds payable 20,755,946 - 20,755,946 - - -
Accrued compensated absences 6,041,918 942,332 6,984,250 271,924 - -
Netpensionliability 29,391,256 3,706,983 33,098,239 393,621 - -
NetOPEBLiability 3,423,868 721,155 4,145,023 76,154
Total Noncurrent Liabilities 120,426,392 165,817,987 286,244,379 9,814,871 26,733,502 122,217
Total Liabilities 134,736,625 176,047,265 310,783,890 10,441,017 27,713,557 360,453
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 13,012,019 1,413,735 14,425,754 150,117 - -
Succeeding year property tax 24,906,544 24,906,544
Total deferred inflows of resources $ 37,918,563 $ 1,413,735 $ 39,332,298 $ 150,117 $ - $
NET POSITION
Net investment in capital assets 348,173,267 148,487,126 496,660,393 8,390,736 11,834,374 -
Restricted for/by:
Bond ordinance development agreement 2,140,740 7,796,668 9,937,408 - -
Debt service 25,531 - 25,531 - - -
Employee benefits 27,771 - 27,771 - -Community development 9,697,644 - 9,697,644 - - -
IowaFinanceAuthorityTmst 22,840 - 22,840 - -Capital projects 8,318,583 - 8,318,583 - - -
Franchise agreement 402,029 - 402,029 - - -
Endowments,expendable 92,768 - 92,768 - - 9,919
Endowments,nonexpendable 69,412 - 69,412 - - -
Other 1,250,087 - 1,250,087 - - -
State statute - - - 118,027 - -
Minority interest - - - 24,717 - -
Unrestricted (49,579,334) (4,568,933) (54,148,267) 84,168 14,400,772 22,307
Total Net Position $ 320,641,338 $ 151,714,861 $ 472,356,199 $ 8,617,648 $ 26,235,146 $ 32,226
See notes to financial statements.
33
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34
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE,IOWA
BALANCE SHEET EXHIBIT 3
GOVERNMENTALFUNDS
NNE 30,2015
Special Revenue Capital Projects
Tax Other
Increment General Governmental
General Financing Construction Funds Total
ASSETS
Cash and pooled cash investments $ 2,602,667 $ 614,509 $ 2,474,992 $ 13,927,230 $ 19,619,398
Receivables
Property tax
Delinquent 132,126 191,642 - 38,422 362,190
Succeeding year 19,363,124 - - 5,543,420 24,906,544
Accounts and other 1,284,435 - - 182,205 1,466,640
Special assessments - - - 756,293 756,293
Accrued interest 32,352 41,001 332 44,115 117,800
Notes 5,755,847 - - 7,786,762 13,542,609
Intergovernmental 1,649,074 - 142,415 3,079,866 4,871,355
Due from other funds 5,533,626 - - - 5,533,626
Inventories 181,449 - - 399,243 580,692
Prepaid items 144,747 - - 57,250 201,997
Restricted cash and pooled cash investments 215,888 5,539,973 7,457,941 5,358,895 18,572,697
Total Assets $ 36,895,335 $ 6,387,125 $ 10,075,680 $ 37,173,701 $ 90,531,841
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 827,578 $ 2,445 $ 18,152 $ 1,459,253 $ 2,307,428
Accrued payroll 466,491 - - 60,751 527,242
Intergovernmental payable - - - 4,987 4,987
Due to other funds - 335,150 - - 335,150
Uneamed revenue 630,512 630,512
Total Liabilities 1,924,581 337 595 18,152 1,524,991 3805319
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax 19,363,124 - - 5,543,420 24,906,544
Special assessments - - - 720,712 720,712
Grants 129,646 - 142,415 1,335,194 1,607,255
Other 54,645 35,525 90,170
Total Deferred Inflows of Resources 19,547,415 142,415 7,634,851 27324681
FUND BALANCES
Nonspendable
Endowment corpus - - - 69,412 69,412
Inventory 181,449 - - 399,243 580,692
Long-term notes receivable 5,755,847 - - 657,518 6,413,365
Prepaid items 144,747 - - 57,250 201,997
Restricted
Endowments - - - 92,768 92,768
Library - - - 1,212,370 1,212,370
Debt service - - - 25,531 25,531
Bond ordinance - 2,140,740 - - 2,140,740
Capital improvements - 3,908,790 9,915,113 2,957,823 16,781,726
Franchise agreement - - - 402,029 402,029
Special assessments - - - 35,653 35,653
Claims - - - 2,064 2,064
Iowa Finance Authority Trust - - - 92,551 92,551
Community programs - - - 9,682,980 9,682,980
Employee benefits - - - 27,771 27,771
Committed,capital improvements - - - 12,298,896 12,298,896
Assigned
DRA gaming and distribution 647,772 - - - 647,772
Unassigned 8,693,524 8,693,524
Total Fund Balances 15,423,33 9 6,049,530 9915113 28,013,859 59,401,841
Total Liabilities,Deferred Inflows of Resources,
and Fund Balances $ 36,895,335 $ 6,387,125 $ 10,075,680 $ 37,173,701 $ 90,531,841
See notes to financial statements.
36
CITY OF DUBUQUE,IOWA EXHIBIT 3-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET POSITION
JUNE 30,2015
Total fund balances-governmental funds $ 59,401,841
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 $ 528,052,768
Accumulated depreciation (135,900,431)
392,152,337
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 32,460
Special assessments 720,712
Other 1,664,965
2,418,137
Pension related deferred outflows of resources and deferred inflows of resources
are not due and payable in the current year and,therefore, are not reported in the
government funds as follows:
Deferred inflows or resources (12,474,247)
Deferred outflows of resources 7,312,993
(5,161,254)
Internal service funds are used by the City's management to
charge the costs of equipment maintenance and self-insurance
programs to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net position. (326,939)
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 (59,614,941)
Tax increment financing bonds (21,165,946)
Notes payable (811,608)
Loans payable (5,444,285)
Accounts payable Zaber settlement (2,700,000)
Accrued interest (309,630)
Compensated absences (6,391,352)
Net pension liability (27,981,154)
Net OPEB liability (3,423,868)
(127,842,784)
Net position of governmental activities $ 320,641,338
See notes to financial statements.
37
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES EXHIBIT 4
GOVERNMENTALFUNDS
FOR THE YEAR ENDED NNE 30,2015
Special Revenue Capital Projects
Tax Other
Increment General Governmental
General Financing Construction Funds Total
REVENUES
Taxes $ 29,601,749 $ 10,890,062 $ - $ 9,998,393 $ 50,490,204
Special assessments - - - 85,501 85,501
Licenses and permits 1,198,420 - - - 1,198,420
Intergovernmental 1,328,132 - 396,048 19,104,344 20,828,524
Charges for services 10,450,557 - - 260,686 10,711,243
Fines and forfeits 362,661 - - - 362,661
Investment earnings 252,737 207,000 31,327 177,070 668,134
Contributions 556,864 127,021 4,492 100,891 789,268
Gaming 7,397,709 - - - 7,397,709
Miscellaneous 564,262 902,280 1,466,542
Total Revenues 51,713,091 11,224,083 431,867 30,629,165 93,998,206
EXPENDITURES
Current
Public safety 27,570,773 - - - 27,570,773
Public works 5,993,358 - 4,061 5,203,008 11,200,427
Health and social services 915,023 - - 24,149 939,172
Culture and recreation 12,082,045 - - 218,409 12,300,454
Community and economic development 3,235,877 3,642,797 - 9,540,235 16,418,909
General government 5,443,158 - - 534,447 5,977,605
Debt service
Principal - - - 4,910,735 4,910,735
Interest and fiscal charges 135,000 - - 3,442,829 3,577,829
Capital projects 5,070,956 9,758,081 14,829,037
Total Expenditures 55,375,234 3,642,797 5,075,017 33,631,893 97,724,941
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (3,662,143) 7,581,286 (4,643,150) (3,002,728) (3,726,735)
OTHER FINANCING SOURCES(USES)
Issuance of debt 264,320 4,038,113 3,437,292 3,397,596 11,137,321
Premium on bonds 3,844 4,306 14,934 49,768 72,852
Transfers in 5,956,030 2,055,594 207,875 9,854,054 18,073,553
Transfers out (3,179,728) (11,711,431) (2,738,663) (7,611,973) (25,241,795)
Insurance recovery 66,910 - 14,200 25,178 106,288
Sale of capital assets 164,172 90,500 105,764 360,436
Total Other Financing Sources(Uses) 3,275,548 (5,613,418) 1,026,138 5,820,387 4,508,655
NET CHANGE IN FUND BALANCES (386,595) 1,967,868 (3,617,012) 2,817,659 781,920
FUND BALANCES,BEGINNING 15,809,934 4,081,662 13,532,125 25,196,200 58,619,921
FUND BALANCES,ENDING $ 15,423,339 $ 6,049,530 $ 9,915,113 $ 28,013,859 $ 59,401,841
See notes to financial statements.
38
CITY OF DUBUQUE,IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES, EXHIBIT 4-1
AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES FOR THE YEAR ENDED
NNE 30,2015
Net change in fund balances-total governmental funds $ 781,920
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 $ 12,576,084
Transfers of capital assets to enterprise funds (420,351)
Contributions from developers and federal government 273,852
Depreciation expense (9,140,127)
3,289,458
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. (340,941)
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 inflows of resources increased(decreased)
by these amounts this year:
Property tax 5,374
Special assessments (196,630)
Other (175,620)
(366,876)
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.
Debt issuances including premium (11,238,925)
Debt repayments 4,910,735
(6,328,190)
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds.These items consist of.
Decrease in accrued interest (23,265)
Amortization of bond discoum/premium (12,043)
Decrease in compensated absences 138,393
Pension adjustment 3,139,090
Increase in net OPEB liability (373,359)
Total additional expenses 2,868,816
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. 690,597
Change in net position of governmental activities $ 594,784
See notes to financial statements.
39
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2015
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 3,377,817 $ 2,698,030 $ 443
Receivables
Accounts 1,142,144 828,591 361,439
Accrued interest 51464 5,477 1,307
Intergovernmental - - 1,132,921
Inventories - 775,006 -
Prepaid items 2,270 2,270 -
Total Current Assets 4,527,695 4,309,374 1,496,110
NONCURRENT ASSETS
Restricted cash and pooled cash investments 6,194,096 9,416,082 28,282,100
Capital assets
Land 167,855 59,898 20,094,469
Buildings 72,005,065 9,066,404 -
Improvements to other than buildings 40,397,221 956,707 54,325,750
Machinery and equipment 39,521,282 45,841,107 1,096,804
Construction in progress 545,726 1,008,230 5,186,790
Accumulated depreciation (49,921,716) (23,780,026) (11,441,751)
Net Capital Assets 102,715,433 33,152,320 69,262,062
Total Noncurrent Assets 108,909,529 42,568,402 97,544,162
Total Assets 113,437,224 46,877,776 99,040,272
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows $ 165,001 $ 200,314 $ 22,813
40
EXHIBIT 5
Business-type Activities-Enterprise Funds
Governmental
Activities-
Padang Other Enterprise Internal Service
Facilities Transit Funds Total Funds
$ 1,052,136 $ 193,892 $ 771,561 $ 8,093,879 $ 2,730,488
140,996 13,549 322,474 2,809,193 313,235
2,266 - 1,329 15,843 4,235
- 2,151,756 - 3,284,677 -
- - - 775,006 74,707
13,151 - - 17,691 6,488
1,208,549 2,359,197 1,095,364 14,996,289 3,129,153
686,219 2,424,570 50,000 47,053,067 -
2,124,465 36,000 - 22,482,687 -
53,261,430 1,887,564 175,458 136,395,921 -
2,396,647 244,232 686,312 99,006,869 -
2,027,188 5,868,714 2,195,380 96,550,475 324,248
933,817 13,333,933 - 21,008,496 -
(13,755,987) (3,810,022) (1,205,023) (103,914,525) (84,159)
46,987,560 17,560,421 1,852,127 271,529,923 240,089
47,673,779 19,984,991 1,902,127 318,582,990 240,089
48,882,328 22,344,188 2,997,491 333,579,279 3,369,242
$ 68,438 $ 183,752 $ 127,814 $ 768,132 $ 292,189
(Continued)
41
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2015
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 488,397 $ 145,571 $ 847,146
Accrued payroll 38,483 42,160 5,472
Loans payable-current - - -
General obligation bonds payable 321,589 376,193 851,565
Revenue bonds payable - 285,000 -
Capital loan notes payable 2,610,000 172,000 341,000
Accrued compensated absences 16,457 - -
Accrued interest payable 166,746 84,045 155,032
Due to other funds - - 5,171,462
Total Current Liabilities 3,641,672 1,104,969 7,371,677
NONCURRENT LIABILITIES
Loans payable - - -
General obligation bonds payable 9,584,897 12,994,489 12,405,162
Revenue bonds payable - 5,429,239 28,829,193
Capital loan notes payable 67,368,158 3,172,000 11,784,813
Accrued compensated absences 252,159 337,098 9,668
Net pension liability 796,293 966,711 110,094
Net OPEB Liability 185,534 203,040 40,840
Total Noncurrent Liabilities 78,187,041 23,102,577 53,179,770
Total Liabilities 81,828,713 24,207,546 60,551,447
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows $ 303,683 $ 368,676 $ 41,986
NET POSITION
Net investment in capital assets 32,747,550 19,166,502 39,431,896
Restricted by bond ordinance/development agreement 149,990 972,977 3,900,536
Unrestricted (1,427,711) 2,362,389 (4,862,780)
Total Net Position $ 31,469,829 $ 22,501,868 $ 38,469,652
See notes to financial statements.
42
EXHIBIT 5
(continued)
Business-type Activities-Enterprise Funds
Governmental
Activities-
Padang Other Enterprise Internal Service
Facilities Transit Funds Total Funds
$ 17,179 $ 2,403,153 $ 16,756 $ 3,918,202 $ 1,974,782
13,545 48,079 31,535 179,274 38,788
25,433 - - 25,433 -
686,928 - 4,627 2,240,902 -
- - - 285,000 -
- - - 3,123,000 -
3,407 1,402 1 21,267 -
30,134 - 243 436,200 -
- - 88 5,171,550 26,926
776,626 2,452,634 53,250 15,400,828 2,040,496
236,622 - - 236,622 -
8,557,492 - 85,452 43,627,492 -
- - - 34,258,432 -
- - - 82,324,971 -
67,742 5,203 270,462 942,332 -
330,280 886,780 616,825 3,706,983 1,410,102
69,340 55,594 166,807 721,155 -
9,261,476 947,577 1,139,546 165,817,987 1,410,102
10,038,102 3,400,211 1,192,796 181,218,815 3,450,598
$ 125,959 $ 338,192 $ 235,239 $ 1,413,735 $ 537,772
37,818,710 17,560,421 1,762,047 148,487,126 240,090
348,595 2,424,570 - 7,796,668 -
619,400 (1,195,454) (64,777) (4,568,933) (567,029)
$ 38,786,705 $ 18,789,537 $ 1,697,270 $ 151,714,861 $ (326,939)
43
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30,2015
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
OPERATING REVENUES
Charges for sales and services $ 10,580,296 $ 7,431,131 $ 3,476,425
Other 1,540 32,299 13,615
Total Operating Revenues 10,581,836 7,463,430 3,490,040
OPERATING EXPENSES
Employee expense 3,671,426 3,201,450 1,277,125
Utilities 523,936 583,443 8,551
Repairs and maintenance 552,733 243,416 44,414
Supplies and services 2,078,117 2,181,953 794,444
Insurance 123,649 112,081 37,060
Depreciation 3,313,312 957,749 735,502
Total Operating Expenses 10,263,173 7,280,092 2,897,096
OPERATING INCOME(LOSS) 318,663 183,338 592,944
NONOPERATING REVENUES(EXPENSES)
Intergovernmental - 95,840 3,320,801
Investment earnings 47,098 51,381 60,669
Contributions 71,691 - 26,257
Interest expense (1,750,943) (520,301) (1,233,640)
Gain on disposal of assets 5,520 1,051 -
Net NonoperatingRevenues(Expenses) (1,626,634) (372,029) 2,174,087
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS (1,307,971) (188,691) 2,767,031
CAPITAL CONTRIBUTIONS 217,747 220,851 109,551
TRANSFERS IN 16,844 375,429 4,438,654
TRANSFERS OUT (4,124,333) - (309,638)
CHANGE IN NET POSITION (5,197,713) 407,589 7,005,598
NET POSITION,BEGINNING,AS RESTATED 36,667,542 22,094,279 31,464,054
NET POSITION,ENDING $ 31,469,829 $ 22,501,868 $ 38,469,652
See notes to financial statements.
44
EXHIBIT 6
Business-type Activities-Enterprise Funds
Governmental
Other Activities-
Parking Enterprise Intemal
Facilities Transit Funds Total Service Funds
$ 2,761,238 $ 333,678 $ 3,976,065 $ 28,558,833 $ 15,641,634
274,976 63,867 39,699 425,996 62,873
3,036,214 397,545 4,015,764 28,984,829 15,704,507
918,605 1,934,112 2,546,981 13,549,699 3,231,330
254,034 54,816 18,122 1,442,902 30,385
303,737 363,103 250,635 1,758,038 32,288
286,350 1,300,264 892,725 7,533,853 11,757,925
92,961 41,929 20,441 428,121 259,552
1,095,878 551,599 282,883 6,936,923 28,337
2,951,565 4,245,823 4,011,787 31,649,536 15,339,817
84,649 (3,848,278) 3,977 (2,664,707) 364,690
121,569 7,600,971 - 11,139,181 -
4,875 15,674 5,659 185,356 20,142
73,062 28,910 - 199,920 -
(431,854) - (3,058) (3,939,796) -
- - - 6,571 5,765
(232,348) 7,645,555 2,601 7,591,232 25,907
(147,699) 3,797,277 6,578 4,926,525 390,597
420,351 - - 968,500 -
1,183,123 5,600,037 73,867 11,687,954 300,000
(385,741) - - (4,819,712) -
1,070,034 9,397,314 80,445 12,763,267 690,597
37,716,671 9,392,223 1,616,825 138,951,594 (1,017,536)
$ 38,786,705 $ 18,789,537 $ 1,697,270 $ 151,714,861 $ (326,939)
45
CITY OF DUBUQUE,IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2015
Business-type Activities-
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 10,536,955 $ 7,400,714 $ 3,436,192 $ 2,762,285
Cash payments to suppliers for goods and services (4,028,561) (3,218,984) (208,748) (1,059,212)
Cash payments to employees for services (3,721,403) (3,222,905) (1,280,850) (936,427)
Other operating receipts 1,540 32,299 13,615 274,976
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 2,788,531 991,124 1,960,209 1,041,622
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds 16,844 375,429 4,438,654 1,183,123
Transfers to other funds (4,124,333) - (309,638) (385,741)
Proceeds from interfund balances - - 353,923 -
Payment of interfund balances - - - -
Intergovemmentalgrantproceeds - - - -
NET CASH PROVIDED BY(USED FOR)
NONCAPITAL FINANCING ACTIVITIES (4,107,489) 375,429 4,482,939 797,382
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 5,520 1,051 - -
Acquisition and construction of capital assets (162,731) (753,841) (10,675,903) (388,543)
Proceeds from issuance of debt 9,118,934 9,195,000 22,976,088 490,000
Premium on debt issuance 1,219 130,000 (127,444) 1,321
Payment of debt (2,919,539) (942,975) (1,163,216) (872,381)
Interest paid (1,708,965) (345,971) (1,171,881) (435,696)
Contributions 289,438 - 26,257 73,062
Intergovernmental grant proceeds - 95,840 2,251,481 121,569
NET CASH PROVIDED BY(USED FOR)CAPITAL
AND RELATED FINANCING ACTIVITIES 4,623,876 7,379,104 12,115,382 (1,010,668)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 59,133 55,017 59,362 4,547
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS 3,364,051 8,800,674 18,617,892 832,883
CASH AND CASH EQUIVALENTS,BEGINNING 6,207,862 3,313,438 9,664,651 905,472
CASH AND CASH EQUIVALENTS,ENDING $ 9,571,913 $ 12,114,112 $ 28,282,543 $ 1,738,355
46
EXHIBIT 7
Enterprise Funds Governmental
Other Activities-
Transit Enterprise Internal
System Funds Total Service Funds
$ 322,314 $ 3,963,556 $ 28,422,016 $ 15,427,564
(2,280,570) (1,206,189) (12,002,264) (11,895,435)
(1,973,376) (2,598,149) (13,733,110) (3,328,954)
63,867 39,699 425,996 62,873
(3,867,765) 198,917 3,112,638 266,048
5,600,037 73,867 11,687,954 300,000
- - (4,819,712) -
353,923 2,057
(38,181) (34,728) (72,909) (137,249)
6,454,045 6,454,045
12,015,901 39,139 13,603,301 164,808
- - 6,571 5,765
(9,244,958) - (21,225,976) (217,727)
41,780,022 -
5,096
(4,507) (5,902,618) -
(3,058) (3,665,571) -
- - 417,667 -
28,910 2,468,890
(9,216,048) (7,565) 13,884,081 (211,962)
15,674 6,540 200,273 25,305
(1,052,238) 237,031 30,800,293 244,199
3,670,700 584,530 24,346,653 2,486,289
$ 2,618,462 $ 821,561 $ 55,146,946 $ 2,730,488
(Continued)
47
CITY OF DUBUQUE,IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2015
Business-type Activities-
Sewage
Disposal Water Stortnwater Parking
Works Utility Utility Facilities
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operating income(loss) $ 318,663 $ 183,338 $ 592,944 $ 84,649
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 3,313,312 957,749 735,502 1,095,878
Change in assets and liabilities
(Increase)decrease in receivables (43,341) (30,417) (40,233) 1,047
(Increase)decrease in inventories and prepaid items (2,340) (22,476) - (625)
Increase(decrease)in accounts payable (747,786) (75,615) 675,721 (121,505)
Increase(decrease)in accrued liabilities (12,656) 25,301 625 (2,236)
Increase(decrease)net pension liability (311,956) (378,720) (43,130) (129,391)
Qncrease)in deferred outflows (47,674) (57,878) (6,592) (19,774)
Increase(decrease)in deferred inflows 303,683 368,676 41,986 125,959
Increase in net OPEB liability 18,626 21,166 3,386 7,620
Total Adjustments 2,469,868 807,786 1,367,265 956,973
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 2,788,531 $ 991,124 $ 1,960,209 $ 1,041,622
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources $ 217,747 $ 220,851 $ 109,551 $
Contributions of capital assets from Governmental Activities $ $ $ $ 420,351
See notes to financial statements.
48
EXHIBIT 7
(Continued)
Enterprise Funds Governmental
Other Activities-
Transit Enterprise Internal
System Funds Total Service Funds
$ (3,848,278) $ 3,977 $ (2,664,707) $ 364,690
551,599 282,883 6,936,923 28,337
(11,364) (12,509) (136,817) (214,070)
(25,441) 68,005
(520,458) (24,266) (813,909) 116,711
12,037 (24,761) (1,690) 1,450
(347,406) (241,648) (1,452,251) (552,422)
(53,093) (36,930) (221,941) (84,424)
338,192 235,239 1,413,735 537,772
11,006 16,932 78,736
(19,4871) 194,940 5,777,345 (98,641)
$ (3,867,765) $ 198,917 $ 3,112,638 $ 266,049
$ - $ - $ 548,149 $
$ - $ - $ 420,351 $
49
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES EXHIBIT 8
AGENCY FUNDS
JUNE 30, 2015
Agency
Funds
ASSETS
Cash and pooled cash investments S 1,308,018
Accounts receivable 51,078
Accrued interest 1,080
Total Assets S 1,360,176
LIABILITIES
Due to other agency S 1,360,176
Total Liabilities S 1,360,176
See notes to financial statements.
50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long-Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Retirement Systems
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Accounting Change/Restatement
15. Prospective Accounting Pronouncements
51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government-wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E
of the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to
provide solid waste management for the Dubuque metropolitan area. The City appoints a voting majority
of the Agency's governing board and has authority over those persons responsible for the day-to-day
operations of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end.
During the year ended June 30, 2015, $409,651 of the Dubuque Metropolitan Area Solid Waste
Agency's charges for services were related to services provided to the City of Dubuque.
Dubuque Initiatives and Subsidiaries is a non-profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque,Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions, tour
groups, sporting events and individual travelers. The Organization's articles require that its board
members include one City Council member, the City of Dubuque Mayor and the City Manager. In the
event of dissolution, any assets or property of the Organization shall be distributed to the City of
Dubuque, Iowa after paying or making provision for the payment of all liabilities of the Corporation. The
City collects hotel/motel taxes and forwards 50% to the CVB as the primary source of funds for its
operations. The CVB is presented as a governmental fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau present their
financial information in accordance with the Financial Accounting Standards Board(FASB).
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 Dubuque Area
Convention and Visitors Bureau, and the Economic Development Office for Dubuque Initiatives and
Subsidiaries. These offices are located at: City Hall, 50 West 13th Street, Dubuque,Iowa 52001.
52
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
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 financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period(year-end).
53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, interest, special assessments, and grants are susceptible to
accrual. Sales taxes are considered measurable and available at the time the underlying transaction
occurs, provided they are collected by the City within 60 days after year-end. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Tax Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long-term debt service.
The General Construction Fund is used to account for the resources and costs related to
nonassignable capital improvements.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City's stormwater
services.
The Parking Facilities Fund is used to account for the operations of the City-owned parking
ramps and other parking facilities.
The Transit System Fund is used to account for the operations of the City's bus and other transit
services.
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.These funds
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.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements.
54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Equity
Deposits andlnvestments
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments are stated at fair value or amortized cost Amortized cost is used only for money
market investments that have a remaining maturity at time of purchase of one year or less.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
year-end are referred to as either "due to/from other funds"(i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a 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.
55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
Current year delinquent property tax receivable represents taxes collected by the County but not remitted
to the City at June 30, 2015, and 2015 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.
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.
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
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 governrnent-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 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
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future period(s)
and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred
outflows of resources consist of unrecognized items not yet charged to pension expense and contributions
from the employer after the measurement date but before the end of the employer's reporting period.
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.
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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, 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.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources, and deferred inflows
of resources related to pensions, and pension expense, information about fiduciary net position of the
Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System
(Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on
the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Deferred inflows of Resources
Deferred inflows of resources represents an acquisition of net position that applies to a future period(s)
and will not be recognize as an inflow of resources (revenue) until that time. Although certain revenues
are measurable, they are not available. Available means collected within the current year or expected to
be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of
resources in the governmental fund financial statements represent the amount of assets that have been
recognized, but the related revenue has not been recognized since the assets are not collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. Deferred inflows of resources consist of property tax receivable and other receivables not collected
within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
and tax increment financing receivable that will not be recognized as revenue until the year for which
they are levied, and unrecognized items not yet charged to pension expense.
Net PositionlRund 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.
58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 $10,595,043 for the governmental
activities and $39,206,400 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, 2015 consists of $25,531 for debt service and $27,771 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.
In the governmental fund financial statements,fund balances are classified as follows:
• Nonspendable: Nonspendable fund balances cannot be spent because they are not expected to be
converted to cash or they are legally or contractually required to remain intact.
• Restricted: Restricted fund balances are restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors, grantor or state or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed: Committed fund balances can be used only for specific purposes determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end.
• Assigned: Assigned fund balances contain self-imposed constraints of the government to be used
for a particular purpose. Intent can be expressed by the City Council or by an official or body to
which the City Council delegates the authority. The City Council has 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. 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.
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
Implementation of GASB Statement No. 68 and GASB Statement No. 71
As of July 1, 2014, the City of Dubuque, Iowa adopted GASB Statement No. 68, Accounting and
Financial Reporting for Pensions and GASB Statement No. 71 Pension Transition for Contributions
Made Subsequent to the Measurement Date. The implementation of these standards requires
governments calculate and report the costs and obligations associated with pensions in their basic
financial statements. Employers are required to recognize pension amounts for all benefits provided
through the plan which include the net pension liability, deferred outflows of resources, deferred inflows
of resources, and pension expense. The effect of the implementation of these standards on beginning net
position is disclosed in Note 14 and the additional disclosures required by these standards are included in
Note 11.
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.
60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 2—DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2015:
America's River Project $ 2,015
Internal Service Funds
Garage Service $ 35,170
General Service $ 1,277,273
Workers'Compensation Reserve $ 574,716
The General Service and Garage 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 $1,200 for the
Dubuque Metropolitan Area Solid Waste Agency.
Deposits. At year-end,the City's carrying amount of deposits was $68,167,137, and the bank balance was
$69,484,501 The City's deposits in banks at June 30, 2015, 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
$9,825,330, and the bank balance was $10,128,391. The Agency's deposits in banks at June 30, 2015,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Investments. As of June 30, 2015, 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 $ 994,180 $ - $ $ - $ 994,180
U.S. Treasury Securities 4,051,904 1,918,892 2,628,005 8,598,801
Federal Agency Obligations 2,666,096 10,903,045 708,705 3,265,136 17,542,982
Managed Accounts-
Long-term CDs - 1,391,069 - - 1,391,069
Corporate Stock 94,480 - 94,480
Corporate Bonds 574,677 - - - 574,677
$ 8,381,337 $ 14,213,006 $ 708,705 $ 5,893,141 $ 29,196,189
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
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
that are in the possession of an outside party. The City had no custodial risk with regards to investments,
since all investments were held by the City or its agent in the City's name.
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, tort
liability, road use tax, cable TV, general construction, transit system, general service, garage service, and
stores/printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2015.
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 68,167,137
Carrying amount of investments 29,196,189
Total $ 97,377,547
Government-wide
Cash and pooled cash investments $ 30,443,765
Cash and pooled cash investments-temporarily restricted 65,556,352
Cash and pooled cash investments-permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 1,308,018
Total $ 97,377,547
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 $ 1,200
Carrying amount of deposits 9,825,330
Total $ 9,826,530
Cash and pooled cash investments $ 1,225,447
Cash and pooled cash investments-temporarily restricted 8,601,083
Total $ 9,826,530
A reconciliation of cash and investments as shown on the government-wide statement of net position for the
Dubuque Initiatives and Subsidiaries(December 31, 2014)follows:
Deposits $ 563,638
Investment in Dubuque Food Coop 200,000
Repurchase agreement 1,438,109
Beneficial interest in assets held by others 1,205,495
Total $ 3,407,242
Cash and pooled cash investments $ 2,001,747
Cash and pooled cash investments-temporarily restricted 1,405,495
Total $ 3,407,242
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 4-NOTES RECEIVABLE
The City provides low interest and low interest loans to promote economic and community development,
provide opportunities for home ownership to low and moderate income citizens and improve rental
properties for low income citizens. Loans may contain a forgivable portion if recipient meets specific
conditions such as job creation for economic development or residency requirements community
development. Loans are secured by mortgage liens against the property.
At June 30, 2015 the City had the follow notes receivable.
Economic Development Notes Receivable:
Original Interest Current
Balance Rate Issued Maturity Balance Portion
Downtown Rehabilitation Loan Program
At Last Fluid Power Co. $ 17,200 3 % 1998 6/1/2018 $ 4,084 $ 1,321
Butts Florist,Inc. 300,000 3 2011 7/1/2031 294,000 8,820
Clark Wolff 150,000 3 2001 5/1/2022 62,284 8,227
Dubuque Museum of Art 300,000 3 1999 7/1/2021 151,200 23,001
Grand Opera House #1-02 73,000 3 2002 2/1/2023 41,386 4,875
Greenfield, Jane 188,000 3 1998 10/1/2019 63,163 13,857
Gronen Adaptive 300,000 2 2006 5/1/2036 190,884 7,425
Hartig Realty III,L.C. 300,000 3 2009 9/1/2029 268,786 15,349
Interstate Building LLLP 300,000 3 2010 9/22/2015 300,000 12,015
James Madison,Inc. 300,000 3 2008 9/18/2028 132,453 132,453
Lower Main Development, 300,000
LLC 3 2006 3/1/2026 159,070 11,965
Moore, Jorga 55,442 3 1999 5/1/2019 17,289 4,142
Security Partners,L.P. 300,000 3 2001 8/1/2021 53,456 14,002
Town Clock Building Co. 300,000 3 2001 8/1/2021 135,133 20,255
Urban Development
Action Grant
40 Main,LLC-Note A 300,000 - 2009 7/1/2016 300,000 -
Downtown Housing Incentive Loan
Caradco Landlord,LLC 4,500,000 3 2012 6/1/2030 4,500,000 -
40 Main Real Estate Loan 156,583 - 2009 11/1/2015 156,583 -
Sales Tax Construction
DB&T Community
Development Corporation 1,700,000 2012 2/1/2032 1,700,000 -
$ 8,529,771 $ 277,707
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 4—NOTES RECEIVABLE(continued)
Interest Current
Rate Balance Portion
Community Development Installment Loans Receivables
Residential Rehabilitation Installment Loan
Programs
First Time Home Buyers 6 % $ 445,841 $ 33,000
Local Housing Assistance Program (LHAP) 6 128,943 10,000
Homebuyers Assistance Program 6 2,558,711 221,000
Infill 6 309,788 7,000
Residential Rehab Program 6 289,389 29,000
RRP Reserve - 45,322 1,000
Washington Neighborhood Revitalize - 56,782 4,032
The Accessibility Rehabilitation Program (for
rentals) 6 636,792 78,000
Iowa Finance Authority - 75,802 6,091
HOME Program (1) - 374,567 65,000
Historic Preservation Revolving Loan
Fund/Historic Preservation Housing Forgivable
Loan Program 6 90,901 16,000
$ 5,012,838 $ 470,123
(1)Principal payments deferred if one tenant is low income
At December 31, 2014,Dubuque Initiatives and Subsidiaries had the following notes receivable:
Lower Main Development, 4.00%,unsecured,matures August 2018 S 58,033
City of Dubuque, 5.00%,unsecured,matures July 2023 262,055
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement,matures June 2039 10,079,743
Total notes receivable 10,399,831
Less: current maturities (27,554)
Noncurrent portion S 10.372.277
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 5—INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2015, include amounts due to/from other funds and advances due to/from
other funds. Interfund balances are as follows:
Due From Due To
Other Funds Other Funds
Governmental activities:
General Fund $ 5,533,626 $ -
Internal Service - 26,926
Tax Increment Financing - 335,150
Business-type activities:
Stormwater Utility - 5,171,462
Nonmajor - 88
$ 5,533,626 $ 5,533,626
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.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 5-INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2015, consisted of the following:
Transfers From
Tax Sewer Storm
Increment General Nonmajor Disposal Water Parking
Transfer to General Financing Construction Governmental Works Utility Facilities Total
General $ - $ 305,491 $ 2,468 $ 5,648,071 $ - $ - $ - $ 5,956,030
Tax increment
financing 218,808 - 1,426,652 24,393 - - 385,741 2,055,594
General construction - 143,331 - 64,544 - - - 207,875
Non major
governmental 1,203,794 6,865,679 378,484 1,096,459 - 309,638 - 9,854,054
Sewer Disposal Works 5,697 - - 11,147 - - - 16,844
Water utility - - - 13,965 361,464 - - 375,429
Stortnwater utility 284,668 - - 391,117 3,762,869 - - 4,438,654
Parking Facilities 222,387 340,000 620,736 - - - - 1,183,123
Transit Systems 1,220,784 4,056,930 310,323 12,000 - - - 5,600,037
Nonmajor enterprise 23,590 - 50,277 - - - 73,867
Internal service fund 300,000 300,000
$ 3,179,728 $ 11,711,431 $ 2,738,663 $ 7,611,973 $ 4,124,333 $ 309,638 $ 385,741 $ 30,061,507
Net capital assets of$420,351 were transferred from governmental capital assets to parking. The transfer
was reported as a capital contribution in the Parking Facilities Fund. No amounts were reported in the
governmental funds, as the amounts did not involve the transfer of financial resources.
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.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 6—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2015,was as follows:
Primary Government:
Governmental activities:
Beginning Transfers Transfers Ending
Balance 1n Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 67,080,527 $ - $ - $ 2,137,880 $ (311,702) $ 68,906,705
Construction in progress 44,054,925 (420,351) 12,201,902 (3,270,925) 52,565,551
Total Capital assets,not
bang depreciated 111,135,452 (420,351) 14,339,782 (3,582,627) 121,472,256
Capital assets,bang
depreciated:
Buildings 127,599,341 - - 212,915 - 127,812,256
Improvements other
than buildings 22,219,094 - - - - 22,219,094
Machinery and equipment 39,518,215 - - 1,543,360 (393,596) 40,667,979
Infrastructure 215,931,578 273,853 216,205,431
Total capital assets,bang
depreciated 405,268,228 2,030,128 (393,596) 406,904,760
Less accumulated
depreciation for:
Buildings (34,278,770) - - (2,168,772) - (36,447,542)
Improvements other
than buildings (8,437,030) - - (792,048) - (9,229,078)
Machinery and equipment (20,414,122) - - (2,598,103) 364,357 (22,647,868)
Infrastructure (64,019,238) (3,640,864) (67,660,102)
Total accumulated
depreciation (127,149,160) (9,199,787) 364,357 (135,984,590)
Total capital assets,bang
depreciated,net 278,119,068 (7,169,659) (29,239) 270,920,170
Govemmeatal activities
capital assets,net $ 389,254,520 $ - $ (420,351) $ 7,170,123 $ (3,611,866) $ 392,392,426
68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 6—CAPITAL ASSETS (continued)
Business-type activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 18,722,641 $ - $ - $ 3,760,046 $ - $ 22,482,687
Construction in progress 6,978,824 3,355,085 (2,934,734) 17,038,525 (3,429,204) 21,008,496
Total Capital assets,not
bang depreciated 25,701,465 3,355,085 (2,934,734) 20,798,571 (3,429;204) 43,491,183
Capital assets,bang
depreciated:
Buildings 136,007,378 - - 388,543 - 136,395,921
Improvements other
than buildings 94,055,495 - - 4,951,374 - 99,006,869
Machinery and equipment 95,332,143 1,239,677 (21,345) 96,550,475
Total capital assets,bang
depreciated 325,395,016 6,579,594 (21,345) 331,953,265
Less accumulated
depreciation for:
Buildings (45,667,153) - - (1,770,628) - (47,437,781)
Improvements other
than buildings (24,615,676) - - (1,656,459) - (26,272,135)
Machinery and equipment (26,711,798) (3,509,836) 17,025 (30,204,609)
Total accumulated
depreciation (96,994,627) (6,936,923) 17,025 (103,914,525)
Total capital assets,bang
depreciated,net 228,400,389 (357,329) (4,320) 228,038,740
Business-type activities
capital assets,net $ 254,101,854 $ 3,355,085 $ (2,934,734) $ 20,441,241 $ (3,433,524) $ 271,529,923
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 6—CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 757,630
Public works 5,514,171
Health and social services 7,012
Culture and recreation 2,081,903
Community and economic development 16,700
General government 794,034
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 28,337
Total depreciation expense -governmental activities $ 9,199,787
Business-type activities:
Sewage disposal works $ 3,313,312
Water utility 957,749
Stormwater utility 735,502
Parking facilities 1,095,878
Refuse collection 255,244
Salt 27,639
Transit system 551,599
Total depreciation expense -business-type activities $ 6,936,923
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 6—CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency(Component Unit):
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 2,952,666 $ - $ - $ - $ - $ 2,952,666
Construction in progress 964,840 (153,880) 810,960
Total Capital assets,not
bang depreciated 2,952,666 964,840 (153,880) 3,763,626
Capital assets,bang
depreciated:
Buildings 88,495 - - 18,000 - 106,495
Improvements other
than buildings 10,306,408 - - - - 10,306,408
Machinery and equipment 3,737,130 285,792 4,022,922
Total capital assets,bang
depreciated 14,132,033 303,792 14,435,825
Less accumulated
depreciation for:
Buildings (50,478) - - (1,622) - (52,100)
Improvements other
than buildings (6,426,126) - - (174,800) - (6,600,926)
Machinery and equipment (2,263,191) (258,449) (2,521,640)
Total accumulated
depreciation (8,739,795) (434,871) (9,174,666)
Total capital assets,bang
depreciated,net 5,392,238 (131,079) 5,261,159
Dubuque Metropolitan Area
Solid Waste,capital assets $ 8,344,904 $ $ $ 833,761 $ (153,880) $ 9,024,785
Depreciation expense of$434,871 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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 $130,370,000. During fiscal year 2015, the City issued $26,450,000 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, 2015, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Corporate purpose Series 2003 10/15/2003 06/01/04-06/01/23 3.40-4.75 % $ 2,110,000 $ 1,025,000
Corporate purpose Series 2005 04/18/2005 06/01/06-06/01/24 3.40-5.00 6,020,000 4,040,000
Corporate purpose Series 2006A 04/03/2006 06/01/07-06/01/25 3.80-4.20 2,900,000 1,830,000
Corporate purpose Series 2007A 12/01/2007 06/01/09-06/01/17 3.45-3.65 1,055,000 265,000
Corporate purpose Series 2008A 11/04/2008 06/01/09-06/01/28 3.75-4.80 3,885,000 2,875,000
Corporate purpose Series 2008B 11/04/2008 06/01/09-06/01/23 3.75-4.25 3,290,000 2,005,000
Corporate purpose
(taxable)Series 2008C 11/04/2008 06/01/09-06/01/18 5.25-5.50 2,465,000 1,205,000
Corporate purpose
(taxable)Series 2009A 11/10/2009 06/01/11-06/01/29 1.90-5.60 2,935,000 2,300,000
Corporate purpose
(taxable)Series 2009B 11/10/2009 06/01/11-06/01/29 1.50-5.50 11,175,000 8,845,000
Refunding Series 2009C 11/10/2009 06/01/10-06/01/21 2.00-4.00 8,885,000 4,795,000
Corporate purpose
and refunding Series 2010A 08/30/2010 06/01/11-06/01/30 2.00-3.00 4,470,000 3,555,000
Corporate purpose Series 201013 08/30/2010 06/01/12-06/01/30 1.00-4.15 2,675,000 2,305,000
Corporate purpose Series 2010C 08/30/2010 06/01/12-06/01/30 2.00-3.00 2,825,000 2,360,000
Corporate purpose Series 2011A 09/01/2011 06/01/12-06/01/31 2.00-4.00 6,330,000 5,540,000
Corporate purpose
(taxable)Series 201113 09/01/2011 06/01/13-06/01/26 2.25-4.35 1,590,000 1,290,000
Corporate purpose Series 2012A 03/15/2012 06/01/14-06/01/31 2.00-3.00 4,380,000 3,970,000
Corporate purpose
and refund Series 2012B 03/15/2012 06/01/13-06/01/31 2.00-3.13 7,495,000 6,725,000
Corporate purpose 06/28/2012 06/01/14-06/01/32 2.00-3.90 6,965,000 6,400,000
(taxable)Series 2012C
Corporate purpose Series 2012D 06/28/2012 06/01/14-06/01/32 2.00-3.46 7,175,000 6,230,000
Corporate purpose Series 2012E 12/12/2012 06/01/14-06/01/32 2.00-3.00 3,640,000 3,245,000
Corporate purpose
(taxable)Series 2012F 12/10/2012 06/01/14-06/01/22 1.00-2.20 1,035,000 915,000
Corporate purpose
andrefund Series 2012G 11/28/2012 06/01/14-06/01/17 1.00-1.25 950,000 385,000
Corporate purpose Series 2012H 12/10/2012 06/01/15-06/01/32 2.00-3.00 2,385,000 2,225,000
Corporate purpose(taxable)
and refund Series 2012I 12/04/2013 06/01/13-06/01/21 0.30-2.20 7,285,000 4,095,000
Corporate purpose Series 2014B 12/08/2014 06/01/16-06/01/34 3.00-3.65 18,835,000 18,835,000
Corporate purpose(taxable)
Series 2014C 12/08/2014 06/01/16-06/01/34 3.00-4.16 7,615,000 7,615,000
$ 130,370,000 $ 104,875,000
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2016 $ 4,774,098 $ 1,922,121 $ 2,240,902 $ 1,638,604
2017 4,940,525 1,790,409 2,314,475 1,573,169
2018 5,100,410 1,640,582 2,309,590 1,502,277
2019 4,583,605 1,481,318 2,836,396 1,426,723
2020 4,636,035 1,344,795 2,869,065 1,332,495
2021-2025 16,000,849 4,867,229 14,239,161 5,132,194
2026-2030 13,789,960 2,485,125 13,231,060 2,468,554
2031-2035 5,275,914 411,589 5,732,956 460,510
Total $ 59,101,396 $ 15,943,168 $ 45,773,605 $ 15,534,526
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. Tax increment financing bonds outstanding at
June 30, 2015, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Diamond Jo Parking Ramp 10/16/07 06/01/11-06/01/37 7.50% $ 23,025,000 $ 21,370,000 $ 410,000
$ 23,025,000 $ 21,370,000 $ 410,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2016 $ 410,000 $ 1,602,750
2017 440,000 1,572,000
2018 475,000 1,539,000
2019 510,000 1,505,375
2020 550,000 1,465,125
2021-2025 3,420,000 6,642,750
2026-2030 4,910,000 5,173,625
2031-2035 7,045,000 3,014,625
2036-2040 3,610,000 411,000
Total $ 21,370,000 $ 22,926,250
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
Revenue Bonds. The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. The City issued $20,800,000 Iowa Sales Tax Incremental revenue
bonds for flood mitigation capital improvements to the Bee Branch storm water project
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, 2015, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Water Utility Series 2008D 11/04/2008 06/01/10-06/01/23 3.00-5.00% $ $ 1,195,000 $ 755,000
Water Utility Series 201OD 09/21/2010 06/01/12-06/01/30 2.00-4.00 5,700,000 4,940,000
Sales Tax Incremental 2014 06/14/2014 06/01/23-06/01/29 4.00-5.00 7,190,000 7,190,000
Sales Tax Incremental 2015 06/15/2015 06/01/23-06/01/29 3.25-4.00 20,800,000 20,800,000
$ 34,885,000 $ 33,685,000
The Water Utility revenue debt covenants include a requirement for the utility to produce net revenues of
at least 125%of the current year debt service requirement and all other revenue debt
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2016 $ 285,000 $ 1,266,916
2017 295,000 1,288,010
2018 305,000 1,278,978.00
2019 315,000 1,268,388
2020 330,000 1,257,408
2021-2025 10,400,000 5,840,239
2026-2030 19,095,000 2,776,492
2031 2,660,000 106,400
Total $ 33,685,000 $ 15,082,831
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
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, 2015, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Lower Main Development 06/30/04 12/31/06-06/30/16 8.00 % $ 182,000 $ 24,958 $ 24,958
Theisen Supply 11/22/06 12/31/08-06/30/18 8.25 810,323 320,163 95,503
40 Main LLC 08/06/09 06/01/11-06/01/37 6.50 690,529 466,487 65,728
$ 1,682,852 $ 811,608 $ 186,189
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2016 $ 186,189 $ 55,690
2017 173,666 41,743
2018 195,881 28,381
2019 79,827 15,582
2020 85,174 10,235
2021 90,870 4,528
Total $ 811,607 $ 156,159
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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 issued an additional $29,541,000 of SRF debt in 2015 as part of the Bee Branch stormwater project.
The City has pledged income derived from the acquired or constructed assets to pay debt service. Capital
loan notes payable at June 30, 2015, are as follows:
Final Amount
Date Maturity Interest Amount Outstanding Current
Purpose Authorized Date Rates Authorized End of Year Portion
Clean Water 01/14/09 06/01/28 3.25 % $ 1,847,000 $ 1,321,000 $ 83,000
Drinking Water 10/18/07 06/01/28 3.25 1,037,000 655,000 41,000
North Catfish Creek Stormwater 01/13/10 06/01/30 3.25 998,000 645,000 34,000
North Catfish Creek Sewer 01/13/10 06/01/30 3.25 1,141,000 736,000 39,000
Water Meter Replacement Stormwater 02/12/10 06/01/30 3.25 4,338,000 2,689,000 131,000
Water Meter Replacement Sewer 02/12/10 06/01/30 3.25 4,338,000 2,689,000 131,000
Upper Bee Branch Sewer 10/27/10 06/01/41 3.25 7,850,000 7,185,000 180,000
Water and Resource Recovery Center 08/18/10 06/01/39 3.25 74,285,000 63,758,158 2,309,000
Cogeneration 05/17/13 06/01/33 2.00 3,048,000 2,795,000 131,000
Bee Branch Stormwater 02/18/14 06/01/33 2.00 1,029,000 190,720 44,000
Bee Branch Stormwater 06/19/15 06/01/37 2.00 29,541,000 2,784,092 -
$ 129,452,000 $ 85,447,970 $ 3,123,000
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2016 $ 3,123,000 $ 1,900,173
2017 3,182,000 1,830,053
2018 3,725,800 1,708,080
2019 4,307,721 1,675,808
2020 4,391,000 1,581,179
2021-2025 18,220,292 6,609,871
2026-2030 19,721,000 4,498,526
2031-2035 18,609,000 2,317,222
2036-2040 9,724,157 3,389,158
2041 401,000 13,031
Total $ 85,404,970 $ 25,523,101
At June 30, 2015, the City of Dubuque had $33,764,300 of capital loan note funds available. These funds are
available to the City by filing a disbursement request with the State of Iowa. The City expects to use the
remaining available funds by fiscal year 2018. The Sewer Utility revenue capital loan notes covenants
include a requirement for the utility to produce net revenue of at least 110% of the current year debt service
requirement. During the year ended June 30, 2015, the City did not meet the covenant for sewer related
capital loan notes by $758,599. Sewer rates were raised 5%in fiscal year 2015, and 10%in fiscal year 2016.
Rates will increase each subsequent fiscal year until bond covenant is met.
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7-LONGTERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2015, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Parking Lot Purchase 07/08/08 01/01/09-07/01/23 5.0 % $ 400,000 $ 262,055 $ 25,433
Building Purchase Agreement 02/01/10 02/01/10-02/01/16 0.0 330,000 94,285 47,143
Iowa Finance Authority 08/26/11 06/01/20-06/01/30 3.0 4,500,000 4,500,000 -
Bowling&Beyond Inc. 07/25/12 12/04/12-12/04/32 0.0 1,000,000 850,000 50,000
$ 6,230,000 $ 5,706,340 $ 122,576
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2016 $ 97,143 $ 135,000 $ 25,433 $ 12,790
2017 97,143 135,000 26,721 11,501
2018 50,000 135,000 28,074 10,148
2019 50,000 135,000 29,495 8,727
2020 132,922 135,000 30,988 7,234
2021-2025 1,150,803 603,418 121,344 48,371
2026-2030 3,766,275 459,901 - -
2031-2032 100,000 - - -
Total $ 5,444,286 S 1,738,319 S 262,055 S 98,771
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2015, was as
follows:
Balance
Beginning Balance End Due Within
of Year Additions Reductions of Year One Year
Governmental activities:
General obligation bonds $ 52,202,198 $ 11,095,000 $ (4,195,804) $ 59,101,394 $ 4,774,098
Unaccreted premium 515,549 143,925 (9,140) 650,334 -
Unamortized discounts (149,099) - 12,312 (136,787) -
Total general obligation bonds Tax 52,568,648 11,238,925 (4,192,632) 59,614,941 4,774,098
increment financing bonds 21,769,361 - (399,361) 21,370,000 410,000
Ummortized discounts (212,926) - 8,872 (204,054) -
Total tax increment financing bonds 21,556,435 - (390,489) 21,165,946 410,000
Notes payable 1,030,036 - (218,428) 811,608 186,189
Loans payable 5,541,428 - (97,143) 5,444,285 97,143
Compensated absences 6,529,745 3,527,935 (3,666,328) 6,391,352 349,434
Net pension liability 43,560,647 - (14,169,391) 29,391,256 -
Net OPEB liability 3,050,509 373,359 - 3,423,868 -
Total governmental activities $ 133,837,448 $ 15,140,219 $ (22,734,411) $ 126,243,256 $ 5,816,864
Business-type activities:
General obligation bonds $ 32,782,805 $ 15,355,000 $ (2,364,199) $ 45,773,606 $ 2,240,902
Unaccreted premium 99,846 133,580 (5,556) 227,870 -
Unamortized discounts (143,789) - 10,707 (133,082) -
Total general obligation bonds 32,738,862 15,488,580 (2,359,048) 45,868,394 2,240,902
Revenue bonds 13,160,000 20,800,000 (275,000) 33,685,000 285,000
Unaccreted premium 998,607 - (66,359) 932,248 -
Unamortizeddiscounts (7,170) (67,363) 717 (73,816) -
Total revenue bonds 14,151,437 20,732,637 (340,642) 34,543,432 285,000
Capital loan notes 82,924,951 5,625,020 (3,102,000) 85,447,971 3,123,000
Loans payable 286,263 - (24,208) 262,055 25,433
Compensated absences 996,687 533,409 (566,497) 963,599 21,267
Net pension liability 5,159,234 - (1,452,251) 3,706,983 -
Net OPEB liability 642,419 78,736 - 721,155 -
Total business-type activities $ 136,899,853 $ 42,458,382 $ (7,844,646) $ 171,513,589 $ 5,695,602
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.
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued
Dubuque Metropolitan Area Solid Waste Agency
General Obligation Bonds. Dubuque County, Iowa issued a general obligation landfill faciliteis bond to
provide funds for the acquisition and construction of major capital facilities.
The Dubuque Area Metropolitan Solid Waste Agency will reimburse Dubuque County for interest and
principal payments from operating revenue. These bonds generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. The amount outstanding as
of June 30, 2015 is as follows:
Amount Amount
Interest Originally Outstanding
Purpose Date of Issue Maturity Date Rate Issued End of Year
Landfill Facility 12/30/2014 06/01/16-06/01/34 2.0-4.0% $ 4,500,000 $ 4,500,000
Annual debt service requirements to maturity of the general obligation bon is as follows:
Fiscal Year June 30 Principal Interest
2016 $ 185,000 $ 127,584
2017 190,000 123,884
2018 195,000 120,084
2019 195,000 116,184
2020 200,000 110,334
2021-2025 1,090,000 456,625
2026-2030 1,270,000 300,913
2031-2034 1,175,000 95,360
Total $ 4,500,000 $ 1,450,968
Changes in Long-Term Liabilities. Long term liability activity for the year ended June 30, 2015 is as
follows:
Balance
Beginning Balance Due Within
of Year Additions Reductions End of Year One Year
General oblitagion bond $ - $ 4,500,000 $ - $ 4,500,000 $ 185,000
Unaccreted premium - 139,086 - 139,086 -
Total general obligation bond $ - $ 4,639,086 $ - $ 4,639,086 $ 185,000
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
Dubuque Initiatives and Subsidiaries. At December 31, 2014,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.* 2,187,324
Note payable to ICD VIII, LLC(QLICI QA1 Loan),fixed interest
rate of 4.74%. Monthly interest only payments are due with final
principal and interest due at maturity on June 1, 2039.** 5,897,192
Note payable to USBCDE Sub-CDE XXXV, LLC (QLICI
QA2 Loan), fixed interest rate of 4.47%. Monthly interest only
payments are due with final principal and interest due at maturity
on June 1, 2039.** 5,897,192
Note payable to ICD VIII, LLC(QLICI Q131 Loan),fixed interest
rate of 1.80%. Monthly interest only payments are due with final
principal and interest due at maturity on June 1, 2039.** 3,902,808
Note payable to USBCDE Sub-CDE XXXV, LLC (QLICI
Q132 Loan), fixed interest rate of 1.80%. Monthly interest only
payments are due with final principal and interest due at maturity
on June 1, 2039.** 4.002.808
27,181,708
Less: Current maturities (448.206)
Non-current liability $ 26,733,502
80
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 7—LONGTERM DEBT (continued)
The following is a schedule by years of the principal maturities of long-term debt obligations for the years
ending June 30:
2015 $ 448,206
2016 446,302
2017 490,159
2018 515,236
2019 267,420
Thereafter 24,994,385
$ 27,181,708
* - 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.
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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 $120,000, and an aggregate stop-loss of
$10,814,803 for 2015. 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 $600,000, and an aggregate-stop loss consistent with
statutory limits for 2015. 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$750,000 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 $504,512 in the Health Insurance Reserve
Fund and $1,454,193 in the Workers' Compensation Reserve Fund is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims
be reported if information prior to the issuance of the financial statements indicates that it is probable
that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2015 and 2014, are summarized as follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30, 2013 $ 551,428 $ 1,081,084
Claims and changes in estimates during fiscal year 2014 9,013,678 530,845
Claim payments (8,815,343) (529,619)
Liabilities at June 30, 2014 749,763 1,082,310
Claims and changes in estimates during fiscal year 2015 9,393,954 1,411,769
Claim payments (9,639,205) (1,039,886)
Liabilities at June 30, 2015 $ 504,512 $ 1,454,193
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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 701 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, 2015,were $497,508.
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, 2015, settled claims have not exceeded the risk pool or reinsurance
company coverage since the Pool's inception.
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
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, 2015.
Litigation
The City Attorney reported that various claims and lawsuits were on file against the City.
The City has booked a payable for pending settlement of the Zaber v. City of Dubuque, class action lawsuit.
The City Council has approved a settlement agreement to pay $2.7 million, plus administrative costs, into a
settlement fund. The settlement agreement has been approved by the Iowa district court and is being
administered by Rust Consulting. A judgment bond will be issued by the City to finance the settlement fund.
The district court has concluded that refunds will not be automatic; customers must file for a refund. The
district court has not yet decided what happens to any unclaimed refunds. The plaintiffs have requested that
any unclaimed refunds either be paid to the State of Iowa or to some charitable entity. The City has resisted
that request and has taken the position that the unclaimed refunds should be returned to the City. If the City
receives the unclaimed refunds, they will be used to reduce the principal of the judgment bond.
The City Attorney has estimated that all other potential settlements and lawsuits against the City not covered
by insurance would not materially affect the financial position of the City. The City has authority to levy
additional taxes (outside the regular limit)to cover uninsured judgments against the City.
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 9—COMMITMENTS AND CONTINGENT LIABILITIES (continued)
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2015. The City has additional commitments for signed construction contracts of
$51,028,432 as of June 30, 2015. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
Dubuque Metropolitan Area Solid Waste Agency has recognized a liability only that portion of construction
contracts representing construction completed through June 30, 2015. DMASWA has an additional
commitment for a signed construction contract of$2,142,585 as of June 30, 2015. This commitment will be
funded by bond proceeds.
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation of
the Roshek Building. The guarantee is limited to $25,000,000.
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 has received all available Rehabilitation Tax Credits as of December 31, 2013. These credits
have a five year compliance period that will expire during 2014. The organization also received new market
tax credits during the project that carries a seven year compliance period, which expires during 2016.
Compliance has been maintained as of December 31, 2014.
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB)
The City implemented GASH 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.
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
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 534 active and 45 retired members in the plan, as of most recent actuarial
valuation report.
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, 2015,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 456,947
Interest on net OPEB obligation 188,031
Adjustment to annual required contribution (178,220)
Annual OPEB cost 466,758
Contributions made,net of retiree contributions (6,197)
Increase in net OPEB obligation 460,561
Net OPEB obligation, beginning of year 3,760,615
Net OPEB obligation, end of year $ 4,221,176
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, 2015.
For the year ended June 30, 2015, the City paid $458,395 for retiree claims. Plan members eligible for
benefits contributed $452,198 or 100% of the premium costs. The net resulted in City contributions of
$6,197.
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, 2015 are summarized as follows:
Percentage of Net
Annual Annual OPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
June 30, 2015 $ 466,758 1 % $ 4,221,176
June 30, 2014 583,450 32 3,760,615
June 30, 2013 581,872 (4) 3,363,982
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Funded Status and Funding Progress - As of July 1, 2014, the most recent actuarial valuation date for the
period July 1, 2014 through June 30, 2015, the actuarial accrued liability was $4,550,896, with no actuarial
value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $4,550,896. The covered
payroll (annual payroll of active employees covered by the plan) was approximately $32,126,628 and the
ratio of the UAAL to covered payroll was 14.27%. As of June 30, 2015,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, 2014 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 6%. The ultimate medical trend rate is 5% beginning in year 2. The
underlying inflation rate is 3%.
Mortality rates are from the RP2014 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 $10,356 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.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS
Iowa Public Employees Retirement System ]PERS
Plan Description—IPERS membership is mandatory for employees of the City, except for those covered
by another retirement system. Employees of the City are provided with pensions through a cost-sharing
multiple employer defined benefit pension plan administered by Iowa Public Employees' Retirement
System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at
7401 Register Drive P.O. Box 9117,Des Moines,Iowa 50306-9117 or at www.ipers.or¢.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits — A regular member may retire at normal retirement age and receive monthly benefits
without an early-retirement reduction. Normal retirement age is age 65, anytime after reaching age 62
with 20 or more years of covered employment, or when the member's years of service plus the member's
age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on
the member's first month of entitlement to benefits.) Members cannot begin receiving retirement benefits
before age 55. The formula used to calculate a regular member's monthly IPERS benefit includes:
• A multiplier(based on years of service).
• The member's highest five-year average salary. (For members with service before June 30,
2012, the highest three-year average salary as of that date will be used if it is greater than the
highest five-year average salary.)
If a member retires before normal retirement age, the member's monthly retirement benefit will be
permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25 percent for each month that the member receives benefits before the member's earliest
normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50 percent for each
month that the member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit
payments.
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Disability and Death Benefits - A vested member who is awarded federal Social Security disability or
Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability
benefits are not reduced for early retirement. If a member dies before retirement, the member's
beneficiary will receive a lifetime annuity or a lump-sum payment equal to the present actuarial value of
the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies
after retirement, death benefits depend on the benefit option the member selected at retirement.
Contributions - Effective July 1, 2012, as a result of a 2010 law change, the contribution rates are
established by IPERS following the annual actuarial valuation, which applies IPERS' Contribution Rate
Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or
decrease each year to 1 percentage point. IPERS Contribution Rate Funding Policy requires that the
actuarial contribution rate be determined using the "entry age normal" actuarial cost method and the
actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution
rate covers normal cost plus the unfunded actuarial liability payment based on a 30-year amortization
period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of
payroll,based on the Actuarial Amortization Method adopted by the Investment Board.
In fiscal year 2015, pursuant to the required rate, regular members contributed 5.95 percent of pay and
the City contributed 8.93 percent for a total rate of 14.88 percent.
The City's total contributions to IPERS for the year ended June 30, 2015 were $2,151,056. The Dubuque
Metropolitan Area Solid Waste Agency's total contribution to IPERS for the year ended June 30,2015
were $57,656.
Citv Specific IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2015, the City reported a liability of $14,687,678 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2014, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to the pension plan relative to the contributions of all IPERS participating
employers. At June 30, 2014, the City's collective proportion was .370349 percent which was a decrease
of.014325 percent from its proportion measured as of June 30, 2013.
For the year ended June 30, 2015, the City recognized pension expense of$1,119,097. At June 30, 2015,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 159,624 $
Changes of assumptions 648,208 -
Net difference between projected and actual - 5,601,456
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share
of contributions 84,575
City contributions subsequent to the
measurement date 2,151,056 -
Total $ 3,043,463 $ 5,601,456
$2,151,056 reported as deferred outflows of resources related to pensions resulting from the City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2016 $ (1,191,859)
2017 (1,191,859)
2018 (1,191,859)
2019 (1,191,859)
2020 58,386
$ (4,709,050)
Sensitivity of the City's Proportionate Share of the Net Pension Liabilitv to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.5 percent, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or
1-percentage-point higher(8.5 percent)than the current rate.
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
1% Discount 1%
Decrease Rate Increase
(6.5%) (7.5%) (8.5%)
City's proportionate share of
the net pension liability: $ 27,751,952 $ 14,687,678 $ 3,660,074
Dubuque Metropolitan Area Sold Waste Agency Specific(DMASWA) IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2015, the DMASWA reported a liability of$393,621 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2014, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The DMASWA's proportion of the net pension liability was based on
the DMASWA's share of contributions to the pension plan relative to the contributions of all IPERS
participating employers. At June 30, 2014, the DMASWA's collective proportion was 0.009925 percent
which was a decrease of 0.000384 percent from its proportion measured as of June 30, 2013.
For the year ended June 30, 2015, the DMASWA recognized pension expense of $29,991. At June 30,
2015, the DMASWA reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Deferred Outflows Inflows
of Resources of Resources
Differences between expected and
actual experience $ 4,280 $
Changes of assumptions 17,373 -
Net difference between projected and actual 150,117
earnings on pension plan investments
Changes in proportion and differences between
Agency contributions and proportionate share
of contributions 2,268
Agency contributions subsequent to the
measurement date 57,657 -
Total $ 81,578 $ 150,117
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
$57,647 reported as deferred outflows of resources related to pensions resulting from the Agency
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2016 $ (31,940)
2017 (31,940)
2018 (31,940)
2019 (31,940)
2020 1,564
$ (126,196)
Sensitivity of the Agency's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.5 percent, as well as what the Agency's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent)
or 1-percentage-point higher(8.5 percent)than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.5%) (7.5%) (8.5%)
Agency's proportionate share of
the net pension liability: $ 743,738 $ 393,621 $ 98,088
There were no non-employer contributing entries at IPERS.
Actuarial Assumptions - The total pension liability in the June 30, 2014 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 3.00 percent per annum
(effective June 30, 2014)
Rates of salary increase 4.00 to 17.00 percent, average, including inflation.
(effective June 30, 2010) Rates vary by membership group.
Long-term Investment rate of return 7.50 percent, compounded annually,net of investment
(effective June 30, 1996) expense, including inflation.
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of actuarial
experience studies with dates corresponding to those listed above.
Mortality rates were based on the RP-2000 Mortality Table for Males or Females, as appropriate, with
adjustments for mortality improvements based on Scale AA. The long-term expected rate of return on
pension plan investments was determined using a building-block method in which best-estimate ranges of
expected future real rates (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected rate
of return by weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of
return for each major asset class are summarized in the following table:
Asset Long-Term Expected
Asset Class Allocation Real Rate of Return
US Equity 23% 6.31
Non US Equity 15 6.76
Private Equity 13 11.34
Real Estate 8 3.52
Core Plus Fixed Income 28 2.06
Credit Opportunities 5 3.67
TIPS 5 1.92
Other Real Assets 2 6.27
Cash 1 (0.69)
Total 100%
Discount Rate - The discount rate used to measure the total pension liability was 7.5 percent. The
projection of cash flows used to determine the discount rate assumed that employee contributions will be
made at the contractually required rate and that contributions from the City will be made at contractually
required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive employees. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net
position is available in the separately issued IPERS financial report which is available on IPERS' website
at www.ipers.org.
Payables to the Pension Plan - At June 30, 2015, the City reported no payables to the defined benefit
pension plan for legally required employer contributions. There were no legally required employee
contributions which had been withheld from employee wages but not yet remitted to IPERS.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Municipal Fire and Police Retirement System of Iowa MFPRSI
Plan Description—MFPRSI membership is mandatory for fire fighters and police officers covered by the
provisions of Chapter 411 of the Code of Iowa. Employees of Sample GAAP City are provided with
pensions through a cost-sharing multiple employer defined benefit pension plan administered by
MFPRSL MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155
Lake Drive, Suite#201, West Des Moines,Iowa 50266 or at www.mfprsi.org.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general informational purposes only. Refer to the plan
documents for more information.
Pension Benefits - Members with 4 or more years of service are entitled to pension benefits beginning at
age 55. Full service retirement benefits are granted to members with 22 years of service, while partial
benefits are available to those members with 4 to 22 years of service based on the ratio of years
completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a
refund of their contribution only, with interest,for the period of employment.
Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3
years becomes the member's average final compensation. The base benefit is 66 percent of the member's
average final compensation. Additional benefits are available to members who perform more than 22
years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor
benefits are available to the beneficiary of a retired member according to the provisions of the benefit
option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum
benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit.
Active members, at least 55 years of age,with 22 or more years of service have the option to participate in
the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member
who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a
3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract
indicating the member will retire at the end of the selected DROP period. During the DROP period the
member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for
the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of
the member's retirement benefit at the member's earliest date eligible and 100% if the member delays
enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will
be distributed to the member in the form of a lump sum or rollover to an eligible plan.
Disabilitv and Death Benefits - Disability coverage is broken down into two types, accidental and
ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits
equivalent to the greater of 60 percent of the member's average final compensation or the member's
service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays
benefits equivalent to the greater of 50 percent of the member's average final compensation,for those with
5 or
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
more years of service, or the member's service retirement benefit calculation amount, and 25 percent of
average final compensation for those with less than 5 years of service.
Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the
average final compensation of the member plus an additional amount for each child, or the provisions for
ordinary death. Ordinary death benefits consist of a pension equal to 40 percent of the average final
compensation of the member plus an additional amount for each child, or a lump-sum distribution to the
designated beneficiary equal to 50 percent of the previous year's earnable compensation of the member
or equal to the amount of the member's total contributions plus interest.
Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which
states a standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump-sum payment.
Contributions -Member contribution rates are set by state statute. In accordance with Chapter 411 of the
Code of Iowa as modified by act of the 1994 General Assembly, to establish compliance with the Federal
Older Workers Benefit Protections Act,the contribution rate was 9.40%of earnable compensation for the
year ended June 30, 2015.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined contributions are calculated on the basis of the entry
age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of
Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan
less current plan assets, with such total divided by 1 percent of the actuarially determined present value
of prospective future compensation of all members, further reduced by member contributions and state
appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of
earnable compensation. The contribution rate was 30.41%for the year ended June 30, 2015.
The City's contributions to MFPRSI for the year ended June 30, 2015 was $3,969,126.
If approved by the state legislature, state appropriation may further reduce the employer's contribution
rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The
State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the
provisions of the Governmental Accounting Standards Board Statement No. 67—Financial Reporting for
Pension Plans, (GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2014.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2015, the City reported a liability of $18,410,561 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2014, and the total pension liability used to calculate the net pension liability was determined by an
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating
employers. At June 30, 2014, the City's proportion was 5.0788% which was a decrease of
0.0251% from it proportions measured as of June 30, 2013.
For the year ended June 30, 2015, the City recognized pension expense of$1,502,471. At June 30, 2015,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and $ $ 52,104
actual experience
Changes of assumptions 1,360,725 -
Net difference between projected and actual
earnings on pension plan investments - 8,654,297
Changes in proportion and differences between - 117,897
City contributions and proportionate share
of contributions
City contributions subsequent to the 3,969,126 -
measurement date
Total $ 5,329,851 $ 8,824,298
$3,969,126 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2016. Amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2016 $ (1,904,721)
2017 (1,904,721)
2018 (1,904,721)
2019 (1,904,721)
2020 155,311
$ (7,463,573)
96
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions The total pension liability in the June 30, 2014, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 3.00 percent per annum
Rates of salary increase 4.00 to 15.11 percent, including inflation.
Investment rate of return 7.50 percent, net of pension plan investment expense,
including inflation
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial
experience study for the period from July 1, 2002 to June 30, 2012.
Mortality rates were based weighting equal to 2/12 of the 1971 GAM table and 10/12 of the 1994 GAM
table with no projection of future mortality improvement.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates (i.e., expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of geometric real rates of return for each major asset class are summarized
in the following table:
Long-Tenn Expected
Asset Class Target Allocation Real Rate of Return
Core Plus Fixed Income 7.0% 3.8%
Emerging Markets Debt 3.0 6.5
Domestic Equities 12.5 6.0
Master Limited Partnerships (MLP) 5.0 8.5
International Equities 12.5 7.0
Core Investments 40.0%
Tactical Assets Allocation 35.0 6.0
Private Equity 15.0 9.8
Private Non-Core Real Estate 5.0 9.3
Private Core Real Estate 5.0 6.8
Real Estate 10.0
Total 100.0%
Discount Rate - The discount rate used to measure the total pension liability was 7.5 percent. The
projection of cash flows used to determine the discount rate assumed that contributions will be made at
9.40%of covered payroll and the City contributions will be made at rates equal to the difference between
actuarially determined rates and the member rate. Based on those assumptions,the pension plan's
97
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 11—EMPLOYEE PENSION PLANS (continued)
fiduciary net position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.50 percent, as well as what the city's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percent lower (6.50 percent) or 1-percent
higher(8.5 percent)than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.5%) (7.5%) (8.5%)
City's proportionate share of
the net pension liability: $ 35,300,776 $ 18,410,561 $ 4,376,313
Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net
position is available in the separately issued MFPRSI financial report which is available on MFPRSI's
website at www.mfprsi.or¢.
Pavables to the Pension Plan-At June 30, 2015, City of Dubuque, Iowa reported payables to the defined
benefit pension plan of $13,874 for legally required employer contributions. There were no legally
required employee contributions which had been withheld from employee wages but not yet remitted to
MFPRSI.
98
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 12—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
$4,619,086 reported as landfill closure and post closure care liability at June 30, 2015, represents the
cumulative amount reported to date based on the use of 100%of the estimated capacity of cells 1, 2, 3, 4, 5,
6, 7, 8 and the use of 67% of cell 9. The Agency will recognize the remaining estimated cost of closure and
post closure care of$494,707 as the remaining capacity is filled.
These amounts are based on what it would cost to perform all closure and post closure care in 2015. The
Agency expects to close cells 5, 6, 7, and 8 in calendar year 2015. 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.
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2015, funds have been restricted for closure and post closure
costs in the amount of$4,443,440.
NOTE 13—LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farm land,
parking areas, space for antennas on top of water towers, and concession areas under operating leases. The
most significant lease is the lease of the greyhound racing and gambling facility and related parking area to
the Dubuque Racing Association (DRA). The City's cost of the leased DRA assets total $10,144,771. The
carrying amount of the assets at June 30, 2015 is $6,584,201, with $142,423 of depreciation expense during
the year ended June 30, 2015. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2015,the DRA lease generated $5,181,465 in lease revenue.
99
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100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2015
NOTE 15—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. 72, Fair Value Measurement and Application, issued February 2015, will be effective for the
fiscal year ending June 30, 2016. The objective of this statement is to improve financial reporting by
clarifying the definition of fair value for financial reporting purposes, establishing general principles for
measuring fair value, providing additional fair value application guidance, and enhancing disclosures about
fair value measurements.
Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68,
will be effective for fiscal year ending June 30, 2016. The objective is to improve the usefulness of
information for decisions made by the various users of the general purpose external financial reports
(financial reports) of governments whose employees both active employees and inactive employees—are
provided with pensions that are not within the scope of Statement No. 68, Accounting and Financial
Reporting for Pensions, as amended.
Statement No. 74, Financial Reporting for Post-employment Benefit Plans Other than Pension Plans, will be
effective for the fiscal year ending June 30, 2017. The objective of this Statement is to improve the
usefulness of information about post-employment benefits other than pensions (other post-
employment benefits or OPEB) included in the general purpose external financial reports of state and local
governmental OPEB plans for making decisions and assessing accountability.
Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions,
will be effective for fiscal year ending June 30, 2018. The primary objective of this Statement is to improve
accounting and financial reporting by state and local governments for post-employment benefits other than
pensions (other postemployment benefits or OPEB). It also improves information provided by state and local
governmental employers about financial support for OPEB that is provided by other entities.
Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments, will be effective for the fiscal year June 30, 2016. The objective of this Statement is to
identify in the context of the current governmental financial reporting environment the hierarchy of
generally accepted accounting principles (GAAP). The "GAAP hierarchy" consists of the sources of
accounting principles used to prepare financial statements of state and local governmental entities in
conformity with GAAP and the framework for selecting those principles.
Statement No. 77, Tax Abatement Disclosures, will be effective for the fiscal year June 30, 2017. The
objective of this Statement is to improve financial reporting by giving users of financial statements essential
information that is not consistently or comprehensively reported to the public at present. Disclosure of
information about the nature and magnitude of tax abatements will make these transactions more transparent
to financial statement users.
The City's management has not yet determined the effect these statements will have on the City's financial
statements.
101
THIS PAGE IS INTENTIONALLY LEFT BLANK
Required Supplementary Information
June 30, 2015
City of Dubuque, Iowa
103
THIS PAGE IS INTENTIONALLY LEFT BLANK
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 30,2015
Budgeted Amounts Final to Actual
Actual Original Final Variance
RECEIPTS
Property tax $ 24,011,071 $ 24,011,071 $ 24,011,071 $
Tax increment financing 10,398,216 10,622,261 10,622,261 (224,045)
Other City tax 10,755,580 14,959,338 15,092,048 (4,336,468)
Licenses and permits 4,603,650 1,344,102 1,287,497 3,316,153
Use of money and property 12,658,010 12,903,511 11,856,209 801,801
Intergovernmental 33,139,639 54,838,264 66,557,121 (33,417,482)
Charges for fees and service 33,883,027 37,704,466 37,705,466 (3,822,439)
Special assessments 205,437 32,000 806,748 (601,311)
Miscellaneous 9,237,622 8,512,439 10,361,586 (1,123,964)
Total Receipts 138,892,252 164,927,452 178,300,007 (39,407,755)
EXPENDITURES
Public safety 27,192,192 28,145,634 28,007,628 815,436
Public works 11,335,142 12,382,658 12,462,539 1,127,397
Health and social services 1,026,482 1,125,838 1,149,362 122,880
Culture and recreation 10,835,959 11,730,605 11,453,573 617,614
Community and economic development 13,092,830 13,443,888 13,048,129 (44,701)
General government 8,073,113 7,832,880 7,824,598 (248,515)
Debt service 8,539,749 8,982,241 9,413,416 873,667
Capital projects 24,392,421 36,838,327 59,903,247 35,510,826
Business-type activities 55,904,109 80,456,566 118,501,103 62,596,994
Total Expenditures 160,391,997 200,938,637 261,763,595 101,371,598
EXCESS(DEFICIENCY)OF RECEIPTS
OVER(UNDER)EXPENDITURES (21,499,745) (36,011,185) (83,463,588) 61,963,843
OTHER FINANCING SOURCES,NET 53,299,084 29,886,684 63,754,743 (10,455,659)
EXCESS DEFICIENCY OF RECEIPTS
AND
OTHER FINANCING SOURCES OVER
(UNDER)EXPENDITURES AND
OTHER FINANCING USES 31,799,339 (6,124,501) (19,708,845) 51,508,184
BALANCE,BEGINNING OF YEAR 60,339,338 67,083,198 107,292,283 -
BALANCE,ENDING OF YEAR $ 92,138,677 $ 60,958,697 $ 87,583,438 $ 51,508,184
See Notes to Required Supplementary Information.
105
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION—BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30,2015
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, 2015, was amended two times during the year to allow the
City to increased function expenditures by $60,824,958 primarily for the carry-forward of unfinished
capital improvement projects. During the year ended June 30, 2015, expenses for community and
economic development and general government exceeded the budgeted amount.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Governmental Enterprise
Modified Funds Funds
Budgetary Accrual Accrual/Accrual Modified Accrual
Basis Adjustments Basis Accrual Basis Basis Total
Receipts/Revenne $ 138,892,252 $ (4,378,189) $ 134,514,063 $ 93,998,206 $ 40,515,857 $ 134,514,063
Expenditures/Expenses 160,391,997 (27,077,724) 133,314,273 97,724,941 35,589,332 133,314,273
Deficiency of Receipts/Revenue
Under Expenditures/Expenses (21,499,745) 22,699,535 1,199,790 (3,726,735) 4,926,525 1,199,790
Other Financing Sources 53,299,084 (40,953,687) 12,345,397 4,508,655 7,836,742 12,345,397
Net 31,799,339 (18,254,152) 13,545,187 781,920 12,763,267 13,545,187
Balance,Beginning* 60,339,338 137,232,177 197,571,515 58,619,921 138,951,594 197,571,515
Balance,Ending $ 92,138,677 $ 118,978,025 $ 211,116,702 $ 59,401,841 $ 151,714,861 $ 211,116,702
*Balance,Beginning for Enterprise Funds Accrual Basis reflects the prior year adjustment for GASB No.68 net pension liability.
106
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST FISCAL YEAR*
(IN THOUSANDS)
Required Supplementary Information
2015
City's proportion of the net pension liability(asset) 0.0370349 %
City's proportionate share of the net pension liability $ 14,688
City's covered-employee payroll $ 24,210
City's proportionate share of the net pension liability as a percentage
of its covered-employee payroll 60.67 %
Plan fiduciary net position as a percentage of the total pension liability 87.61 %
* The amounts presented for each fiscal year were determined as of June 30.
Data reported is measured as of July 1,2014(measurement date).
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However,until a full 10-year trend is
compiled,the City will present information for those years for which information is available
107
CITY OF DBUQUE, IOWA
SCHEDULE OF THE CITY'S CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMEN SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2015 2014 2012 2011 2010 2009 2010 2008 2007 2006
Statutorily required contribution $ 2,151 $ 2,164 $ 2,022 $ 1,911 $ 1,573 $ 1,415 $ 1,275 $ 1,164 $ 1,039 $ 983
Contributions in relation to the
statutorily required contribution
Contribution deficiency (excess)
City's covered -employee payroll
Contributions as a percentage of
covered -employee payroll
CO
(2,151) (2,164) (2,022) (1,911) (1,573) (1,415) (1,275) (1,164) (1,039) (983)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $
$ 24,039 $ 24,210 $ 23,321 $ 23,676 $ 22,627 $ 21,275 $ 20,071 $ 19,246 $ 18,065 $ 17,091
8.95 % 8.94 % 8.67 % 8.07 % 6.95 % 6.65 % 6.35 % 6.05 % 5.75 % 5.75 %
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMNATRY INFORMATION--PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30,2015
Changes of benefit terms:
Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final average
salary changed from the highest three to the highest five years of covered wages. The vesting requirement
changed from four years of service to seven years. The early retirement reduction increased from 3 percent per
year measured from the member's first unreduced retirement age to a 6 percent reduction for each year of
retirement before age 65.
In 2008, legislative action transferred four groups - emergency medical service providers, county jailers, county
attorney investigators, and National Guard installation security officers - from Regular membership to the
protection occupation group for future service only.
Benefit provisions for sheriffs and deputies were changed in the 2004 legislative session. The eligibility for
unreduced retirement benefits was lowered from age 55 by one year each July 1 (beginning in 2004) until it
reached age 50 on July 1, 2008. The years of service remained at 22 or more. Their contribution rates were
also changed to be shared 50-50 by the employee and employer, instead of the previous 40-60 split.
Changes of assumption
The 2014 valuation implemented the following refinements as a result of a quadrennial experience study:
• Decreased the inflation assumption from 3.25 to 3.00 percent.
• Decreased the assumed rate of interest on members account from 4.00 percent to 3.75 percent per year.
• Adjusted male mortality rates for retirees in the Regular membership group.
• Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL
beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be
amortized on a separate closed 20 year period.
The 2010 valuation implemented the following refinements as a result of a quadrennial experience study:
• Adjusted retiree mortality assumptions.
• Modified retirement rates to reflect fewer retirements.
• Lowered disability rates at most ages
• Generally increased the probability of terminating members receiving a deferred retirement benefit
• Modified salary increase assumptions based on various service duration.
109
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMNATRY INFORMATION--PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30,2015(continued)
The 2007 valuation adjusted the application of the entry age normal cost method to better match projected
contributions to the projected salary streams in the future years. It also included the calculation of the UAL
amortization payments the one-year lag between the valuation date and the effective date of the annual actuarial
contribution rate.
The 2006 valuation implemented the following refinements as a result of a quadrennial experience study:
• Adjusted salary increase assumptions to service based assumptions
• Decreased the assumed interest rate credited on employee contributions from 4.25 percent to 4.00
percent.
• Lowered the inflation assumption from 3.50 percent to 3.25 percent.
• Lowered disability rates for sheriffs and deputies and protection occupation members.
110
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST FISCAL YEAR*
(IN THOUSANDS)
Required Supplementary Information
2015
City's proportion of the net pension liability(asset) 5.0788 %
City's proportionate share of the net pension liability $ 18,410
City's covered-employee payroll $ 12,968
City's proportionate share of the net pension liability as a percentage
141.96 %
of its covered-employee payroll
86.27 %
Plan fiduciary net position as a percentage of the total pension liability
* The amounts presented for each fiscal year were determined as of June 30.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-
year trend is compiled,the City will present information for those years for which he information is available.
111
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S CONTRIBUTION
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST FISCAL YEAR*
(IN THOUSANDS)
Required Supplementary Information
2015 2014 2012 2011 2010 2009 2010 2008 2007 2006
Statutorily required contribution $ 3,969 $ 3,906 $ 3,310 $ 3,177 $ 2,404 $ 1,966 $ 2,078 $ 2,632 $ 2,730 $ 2,704
Contributions in relation to the
statutorily required contribution
Contribution deficiency (excess)
City's covered -employee payroll
Contributions as a percentage of
covered -employee payroll
N
(3,969) (3,906) (3,310) (3,177) (2,404) (1,966) (2,078) (2,632) (2,730) (2,704)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $
$ 13,052 $ 12,968 $ 12,672 $ 12,831 $ 12,080 $ 11,565 $ 11,083 $ 10,330 $ 9,838 $ 9,585
30.41 % 30.12 % 26.12 % 24.76 % 19.90 % 17.00 % 18.75 % 25.48 % 27.75 % 28.21 %
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMNATRY INFORMATION--PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30,2015
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions
Effective July 1, 2014, two additional steps were taken to phase in the 1994 Group Annuity Mortality Table for
post-retirement mortality. The two additional steps result in a weighting of 2/12 of the 1971 Group Annuity
Mortality Table and 10/12 of the 1994 Group Annuity Mortality Table.
113
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN(OPEB)
FOR THE YEAR ENDED JUNE 30,2015
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) db-a) (a/b) (c) (b-a/c)
2013 07/01/12 - $ 5,720,577 $ 5,720,577 - % $ 31,830,608 18.00 %
2014 07/01/12 - 5,720,577 5,720,577 - 32,626,573 17.53
2015 07/01/14 - 4,550,896 4,550,896 - 32,126,628 14.20
114
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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.
Employee 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 state 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.
116
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds and trust funds.
Airport Construction Fund — This fund is used to account for the resources and costs related to
airport capital improvements.
Sales Tax Construction Fund — This fund is used to account for the resources and costs related to
capital improvements financed through the local option sales tax.
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.
117
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2015
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
ASSETS
Cash and pooled cash investments $ 1,274,711 $ 55,231 $ - $ -
Receivables
Property tax
Delinquent - - 34,330 2,552
Succeeding year - - 4,881,930 370,550
Accounts and other - 36,192 - -
Special assessments - - - -
Accruedinterest - 720 - -
Notes - -
Intergovernmental 592,645 31,793 - -
Inventories 399,243 - -Prepaid items 26,695 2,927 - -
Restricted cash and pooled cash investments - 500,747 - -
Total Assets $ 2,293,294 $ 627,610 $ 4,916,260 $ 373,102
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 105,676 $ 119,881 $ - $ -
Accrued payroll 42,244 7,278 - -
Intergovemmental payable 4,987
Total Liabilities 147,920 132,146
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - 4,881,930 370,550
Special assessments - - - -
Grams - 173 - -
Cther - - 6,559 488
Total Deferred Inflows of Resources 173 4,888,489 371,038
FUND BALANCES
Nonspendable:
Endowment corpus - - - -
Inventory 399,243 - - -
Long-term notes receivable - - -Prepaid items 26,695 2,927
Restricted:
Endowments - - - -
Library - - - -
Debt service - - - -
Capital improvements 1,719,436 - - -
Franchise agreement - - - -
Special assessments - - - -
Claims - - - 2,064
Iowa Finance Authority Trust - - - -
Community programs - 492,364 - -
Employee benefits - - 27,771 -
Committed,capitalimprovements - - - -
Total Fund Balances 2,145,374 495,291 27,771 2,064
Total Liabilities,Deferred Inflows of Resources and Fund
Balances $ 2,293,294 $ 627,610 $ 4,916,260 $ 373,102
118
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
$ 72 $ 265,980 $ 1,213,688 $ 1,750 $ 2,204,657 $ 24,121 $ 364,091 $ 3,069,707
- - - - - 1,540 - -
- - - - - 290,940 - -
- 145,938 - - - - - -
756,293 - - - - - - -
- 428 1,963 - 26,480 39 589 4,965
- - - 75,801 7,053,443 - - 657,518
- - - 15,000 196,643 - 1,026,032 327,208
- 15,891 - - 11,737 - - -
1,005,202 1,781,429
$ 756,365 $ 428,237 $ 1,215,651 $ 92,551 $ 9,492,960 $ 316,640 $ 2,395,914 $ 5,840,827
$ - $ 7,901 $ 3,281 $ - $ 85,151 $ - $ 390,575 $ 196,268
- 2,416 - - 8,813 - - -
10,317 3,281 93,964 390,575 196,268
- - - - - 290,940 - -
720,712 - - - - - - -
- - - - 196,643 - 766,952 -
- - - - - 169 - -
720,712 196,643 291,109 766,952
- - - - - - - 657,518
- 15,891 - - 11,737 - - -
- - 1,212,370 - - - - -
- - - - - 25,531 - -
- - - - - - 1,238,387 -
- 402,029 - - - - - -
35,653 - - - - - - -
92,551 - - - -
9,190,616
- - - - - - - 4,987,041
35,653 417,920 1,212,370 92,551 9,202,353 25,531 1,238,387 5,644,559
$ 756,365 $ 428,237 $ 1,215,651 $ 92,551 $ 9,492,960 $ 316,640 $ 2,395,914 $ 5,840,827
(Continued)
119
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS EXHIBIT A-1
JUNE 30,2015 (continued)
Capital Projects
Funds Permanent Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
ASSETS
Cash and pooled cash investments $ 5,453,211 $ - $ 11 $ 13,927,230
Receivables
Property tax
Delinquent - - - 38,422
Succeeding year - - - 5,543,420
Accounts and other 75 - - 182,205
Special assessments - - - 756,293
Accruedinterest 8,821 76 34 44,115
Notes - - - 7,786,762
Intergovernmental 890,545 - - 3,079,866
Inventories - - - 399,243
Prepaid items - - - 57,250
Restricted cash and pooled cash investments 1,909,458 141,192 20,867 5,358,895
Total Assets $ 8,262,110 $ 141,268 $ 20,912 $ 37,173,701
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 550,520 $ - $ - $ 1,459,253
Accrued payroll - - - 60,751
Intergovernmental payable 4,987
Total Liabilities 550,520 1,524,991
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - - 5,543,420
Special assessments - - - 720,712
Grants 371,426 - - 1,335,194
Other 28,309 35,525
Total Deferred Inflows of Resources 399,735 7,634,851
FUND BALANCES
Nonspendable:
Endowment corpus - 57,412 12,000 69,412
Inventory - - - 399,243
Long-term notes receivable - - - 657,518
Prepaid items - - - 57,250
Restricted:
Endowments - 83,856 8,912 92,768
Library - - - 1,212,370
Debt service - - - 25,531
Capital improvements - - - 2,957,823
Franchise agreement - - - 402,029
Special assessments - - - 35,653
Claims - - - 2,064
Iowa Finance Authority Trust - - - 92,551
Community programs - - - 9,682,980
Employee benefits - - - 27,771
Committed,capital improvements 7,311,855 12,298,896
Total Fund B alances 7,311,855 141,268 20,912 28,013,859
Total Liabilities,Deferred Inflows of Resources and Fund
Balances $ 8,262,110 $ 141,268 $ 20,912 $ 37,173,701
120
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CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2015
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
REVENUES
Taxes $ - $ - $ 5,117,544 $ 380,516
Special assessments - - - -
Intergovernmental 6,141,194 4,857,584 - -
Chargesforservices - - -Investment earnings - - - -
Contributions - 1,017 - -
Miscellaneous 38,969 88,538 - -
Total Revenues 6,180,163 4,947,139 5,117,544 380,516
EXPENDITURES
Governmental activities
Current
Public works 5,045,179 - - -
Health and social services - - - -
Culture and recreation - - - -
Community and economic development - 5,245,824 - -
General government 25,861 - 18 -
Debt service
Principal - - - -
Interest and fiscal charges - - -Capital projects - - - -
Total Expenditures 5,071,040 5,245,824 18 -
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 1,109,123 (298,685) 5,117,526 380,516
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - -
Premium on bonds - - - -
Transfers in - 351,830 - -
Transfers out (358,893) - (5,141,335) (382,075)
Insurance recovery - - - -
Sale of capital assets - - - -
Total Other Financing Sources(Uses) (358,893) 351,830 (5,141,335) (382,075)
NET CHANGE IN FUND BALANCES 750,230 53,145 (23,809) (1,559)
FUND BALANCES,BEGINNING 1,395,144 442,146 51,580 3,623
FUND BALANCES,ENDING $ 2,145,374 $ 495,291 $ 27,771 $ 2,064
122
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
$ - $ - $ - $ - $ - $ 120,210 $ - $ 1,752,050
85,501 - - - - - - -
- - - 171,247 3,043,157 47,500 1,399,722 -
- - 2,027 - 5,856 - 217,770 -
46,292 1,658 6,018 - 65,222 - 6,678 22,122
- - - - - - 99,374 500
12,397 619,434 82,987 - 7,817 - - 2,171
144,190 621,092 91,032 171,247 3,122,052 167,710 1,723,544 1,776,843
- - - - 54,199 - 103,630 -
- 1,144 - - 23,005 - - -
- - 100,396 - 114,302 - - -
- - - 92,360 4,202,051 - - -
- 508,489 - - - 79 - -
- - - - - 4,910,735 - -
- - - - - 3,442,829 - -
- - - - - - 1,804,313 835,230
- 509,633 100,396 92,360 4,393,557 8,353,643 1,907,943 835,230
144,190 111,459 (9,364) 78,887 (1,271,505) (8,185,933) (184,399) 941,613
- - - - 82,292 - 813,990 938,072
- - - - 1,207 - 11,914 13,785
- - - - 378,807 8,599,683 402,774 3,676
(146,778) - (11,645) - (61,968) (416,707) (163,905) (632,353)
- - - - 105,764 - - -
(146,778) - (11,645) - 506,102 8,182,976 1,064,773 323,180
(2,588) 111,459 (21,009) 78,887 (765,403) (2,957) 880,374 1,264,793
38,241 306,461 1,233,379 13,664 9,967,756 28,488 358,013 4,379,766
$ 35,653 $ 417,920 $ 1,212,370 $ 92,551 $ 9,202,353 $ 25,531 $ 1,238,387 $ 5,644,559
(Continued)
123
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS EXHIBIT A-2
FOR THE YEAR ENDED JUNE 30,2015 (coufiuued)
Capital
Projects Funds Permanent Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
REVENUES
Taxes $ 2,628,073 $ - $ - $ 9,998,393
Special assessments - - - 85,501
Intergovernmental 3,443,940 - - 19,104,344
Charges for services 35,033 - - 260,686
Investment earnings 23,206 5,787 87 177,070
Contributions - - - 100,891
Miscellaneous 49,967 - - 902,280
Total Revenues 6,180,219 5,787 87 30,629,165
EXPENDITURES
Governmental activities
Current
Public works - - - 5,203,008
Health and social services - - - 24,149
Culture and recreation - 3,711 - 218,409
Community and economic development - - - 9,540,235
General government - - - 534,447
Debt service
Principal - - - 4,910,735
Interest and fiscal charges - - - 3,442,829
Capital projects 7,118,538 - - 9,758,081
Total Expenditures 7,118,538 3,711 - 33,631,893
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (938,319) 2,076 87 (3,002,728)
OTHER FINANCING SOURCES (USES)
Issuance of debt 1,563,242 - - 3,397,596
Premium on bonds 22,862 - - 49,768
Transfers in 108,862 - 8,422 9,854,054
Transfers out (296,314) - - (7,611,973)
Insurance recovery 25,178 - - 25,178
Sale of capital assets - - - 105,764
Total Other Financing Sources(Uses) 1,423,830 - 8,422 5,820,387
NET CHANGE IN FUND BALANCES 485,511 2,076 8,509 2,817,659
FUND BALANCES,BEGINNING 6,826,344 139,192 12,403 25,196,200
FUND BALANCES,ENDING $ 7,311,855 $ 141,268 $ 20,912 $ 28,013,859
124
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises --where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund — This fund is used to account for the operations of the City's refuse
collection services.
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.
125
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION EXHIBIT B-1
NONMAJOR ENTERPRISE FUNDS
JUNE 30,2015
Total Other
Refuse America's Enterprise
Collection Salt River Project Funds
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 771,561 $ - $ - $ 771,561
Receivables
Accounts 322,474 - - 322,474
Accrued interest 1,329 - - 1,329
Total Current Assets 1,095,364 - - 1,095,364
NONCURRENT ASSETS
Restricted cash and pooled cash investments 50,000 - - 50,000
Capital assets
Buildings - 175,458 - 175,458
Improvements to other than buildings - 686,312 - 686,312
Machinery and equipment 2,159,038 36,342 - 2,195,380
Accumulated depreciation (1,165,639) (39,384) - (1,205,023)
Net Capital Assets 993,399 858,728 - 1,852,127
Total Noncurrent Assets 1,043,399 858,728 - 1,902,127
Total Assets 2,138,763 858,728 - 2,997,491
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 127,814 - - 127,814
LIABILITIES
CURRENT LIABILITIES
Accounts payable 14,741 - 2,015 16,756
Accrued payroll 31,535 - - 31,535
General obligation bonds payable 4,627 - - 4,627
Accrued compensated absences 1 - - 1
Accrued interest payable 243 - - 243
Due to other funds - 88 - 88
Total Current Liabilities 51,147 88 2,015 53,250
NONCURRENT LIABILITIES
General obligation bonds payable 85,452 - - 85,452
Accrued Compensated Absences 270,462 - - 270,462
Net pension liability 616,825 - - 616,825
Net OPEB Liability 166,807 - - 166,807
Total Noncurrent Liabilities 1,139,546 - - 1,139,546
Total Liabilities 1,190,693 88 2,015 1,192,796
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 235,239 - - 235,239
NET POSITION
Net investment in capital assets 903,319 858,728 - 1,762,047
Unrestricted (62,674) (88) (2,015) (64,777)
Total Net Position $ 840,645 $ 858,640 S (2,015) $ 1,697,270
126
CITY OF DUBUQUE,IOWA EXHIBIT B-2
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30,2015
Total Other
Refuse America's Enterprise
Collection Salt River Project Funds
OPERATING REVENUES
Charges for sales and services $ 3,782,675 $ 193,390 $ - $ 3,976,065
Other 818 38,881 - 39,699
Total Operating Revenues 3,783,493 232,271 - 4,015,764
OPERATING EXPENSES
Employee expense 2,546,424 557 - 2,546,981
Utilities 18,122 - - 18,122
Repairs and maintenance 246,920 3,715 - 250,635
Supplies and services 655,945 212,780 24,000 892,725
Insurance 20,441 - - 20,441
Depreciation 255,244 27,639 - 282,883
Total Operating Expenses 3,743,096 244,691 24,000 4,011,787
OPERATING INCOME(LOSS) 40,397 (12,420) (24,000) 3,977
NONOPERATING REVENUES
Investment earnings 5,659 - - 5,659
Interest expense (3,058) - - (3,058)
Net Nonoperating Revenues 2,601 - - 2,601
INCOME(LOSS)BEFORE TRANSFERS 42,998 (12,420) (24,000) 6,578
TRANSFERS IN - 50,277 23,590 73,867
CHANGE IN NET POSITION 42,998 37,857 (410) 80,445
NET POSITION,BEGINNING,
AS RESTATED 797,647 820,783 (1,605) 1,616,825
NET POSITION,ENDING $ 840,645 $ 858,640 $___(2,015) $ 1,697,270
127
CITY OF DUBUQUE,IOWA EXHIBIT B-3
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30,2015
America's Total Other
Refuse River Enterprise
Collection Salt Project Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,770,166 $ 193,390 $ - $ 3,963,556
Cash payments to suppliers for goods and services (935,336) (247,263) (23,590) (1,206,189)
Cash payments to employees for services (2,597,592) (557) - (2,598,149)
Other operating receipts 818 38,881 - 39,699
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 238,056 (15,549) (23,590) 198,917
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 50,277 23,590 73,867
Payment of interfund balances - (34,728) - (34,728)
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES - 15,549 23,590 39,139
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal Paid (4,507) - - (4,507)
Interest paid (3,058) - - (3,058)
NET CASH USED FOR CAPITAL AND
RELATED FINANCING ACTIVITIES (7,565) - - (7,565)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 6,540 - - 6,540
NET INCREASE IN CASH AND POOLED
INVESTMENTS 237,031 - - 237,031
CASH AND POOLED INVESTMENTS,BEGINNING 584,530 - - 584,530
CASH AND POOLED INVESTMENTS,ENDING $ 821,561 $ - $ - $ 821,561
(Continued)
128
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B-3
NONMAJOR ENTERPRISE FUNDS (continued)
YEAR ENDED JUNE 30,2015
Business-type Activities-Enterprise Funds
America's Total Other
Refuse River Enterprise
Collection Salt Project Funds
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)
OPERATING ACTIVITIES
Operating income(loss) $ 40,397 $ (12,420) $ 24,000 $ 3,977
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 255,244 27,639 - 282,883
Change in assets and liabilities
(Increase)Decrease in receivables (12,509) - - (12,509)
Increase(Decrease)in accounts payable 6,092 (30,768) 410 (24,266)
Increase(Decrease)in accrued liabilities (24,761) - - (24,761)
Increase(Decrease)in net pension liability (241,648) - - (241,648)
(Increase)Decrease in deferred outflows (36,930) - - (36,930)
Increase(Decrease)in deferred inflows 235,239 - - 235,239
Increase in net OPEB liability 16,932 - - 16,932
Total Adjustments 197,659 3,129 410 194,940
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 238,056 $ (15,549) $ 23,590 $ 198,917
129
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.
130
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CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2015
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ - $ 112,533 $ -
Receivables
Accounts - - -
Accrued interest - -
Inventories - 61,842 12,865
Prepaid items - - -
Total Current Assets - 174,375 12,865
NONCURRENT ASSETS
Capital assets
Machinery and equipment - 324,248 -
Accumulated depreciation - (84,159) -
Net Capital Assets - 240,089 -
Total Noncurrent Assets - 240,089 -
Total Assets - 414,464 12,865
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 219,064 73,125 -
LIABILITIES
CURRENT LIABILITIES
Accounts payable - 16,077
Accrued payroll 19,596 19,192 -
Due to other funds 16,357 - 10,569
Total Current Liabilities 35,953 35,269 10,569
NONCURRENT LIABILITIES
Net pension liability 1,057,199 352,903 -
Total Noncurrent Liabilities 1,057,199 352,903 -
Total Liabilities 1,093,152 388,172 10,569
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 403,185 134,587 -
NET POSITION
Net investment in capital assets - 240,090 -
Unrestricted (1,277,273) (275,260) 2,296
Total Net Position(Deficit) $ (1,277,273) $ (35,170) $ 2,296
132
EXHIBIT C-1
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 1,746,376 $ 871,579 $ 2,730,488
313,235 - 313,235
2,825 1,410 4,235
- - 74,707
- 6,488 6,488
2,062,436 879,477 3,129,153
- - 324,248
- - (84,159)
- - 240,089
- - 240,089
2,062,436 879,477 3,369,242
- - 292,189
504,512 1,454,193 1,974,782
- - 38,788
- - 26,926
504,512 1,454,193 2,040,496
- - 1,410,102
- - 1,410,102
504,512 1,454,193 3,450,598
- - 537,772
- 240,090
11557,924 (574,716) (567,029)
$ 1,557,924 $ (574,716) $ (326,939)
133
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION(DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30,2015
General Garage Stores/
Service Service Printing
OPERATING REVENUES
Charges for sales and services $ 2,414,273 $ 2,184,180 $ 21,590
Other - 35,771 -
Total Operating Revenues 2,414,273 2,219,951 21,590
OPERATING EXPENSES
Employee expense 2,320,475 910,855 -
Utilities - 26,520 3,865
Repairs and maintenance - 32,288 -
Supplies and services 5,235 1,055,389 18,210
Insurance 11,628 27,626 -
Depreciation - 28,337 -
Total Operating Expenses 2,337,338 2,081,015 22,075
OPERATING INCOME(LOSS) 76,935 138,936 (485)
NONOPERATING REVENUES(EXPENSES)
Investment earnings - - -
Gain on disposal of assets - 51765 -
-INCOME(LOSS)BEFORE TRANSFERS 76,935 144,701 (485)
TRANSFERS IN - 300,000 -
CHANGE IN NET POSITION 76,935 444,701 (485)
NET POSITION(DEFICIT),BEGINNING,AS RESTATED (1,354,208) (479,871) 2,781
NET POSITION(DEFICIT),ENDING $ (1,277,273) $ (35,170) $ 2,296
134
EXHIBIT C-2
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,937,907 $ 1,083,684 $ 15,641,634
25,569 1,533 62,873
9,963,476 1,085,217 15,704,507
- - 3,231,330
30,385
- - 32,288
9,639,205 1,039,886 11,757,925
29,372 190,926 259,552
- - 28,337
9,668,577 1,230,812 15,339,817
294,899 (145,595) 364,690
12,292 7,850 20,142
- - 5,765
307,191 (137,745) 390,597
- 300,000
307,191 (137,745) 690,597
11250,733 (436,971) (1,017,536)
$ 1,557,924 $ (574,716) $ (326,939)
135
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2015
General Garage Stores/
Service Service Printing
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,414,273 $ 2,184,180 $ 21,590
Cash payments to suppliers for goods and services (16,984) (1,126,542) (23,647)
Cash payments to employees for services (2,395,425) (933,529) -
Other operating receipts - 35,771
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 1,864 159,880 (2,057)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers to other funds - 300,000 -
Proceeds from interfund balances - - 2,057
Payment of interfund balnaces (1,864) (135,385)
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCING ACTIVITIES (1,864) 164,615 2,057
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets - (217,727) -
Proceeds from sale of capital assets - 5,765
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES - (211,962) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received - - -
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS - 112,533 -
CASH AND POOLED INVESTMENTS,BEGINNING - - -
CASH AND POOLED INVESTMENTS,ENDING $ - $ 112,533 $ -
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operating income(loss) $ 76,935 $ 138,936 $ (485)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation - 28,337 -
Change in assets and liabilities
Increase in receivables - - -
(Increase)Decrease in inventories and prepaid items - 25,082 (1,572)
Increase(Decrease)in accounts payable (120) (9,801) -
Increase(Decrease)in net pension liability (414,170) (138,253) -
(Increase)Decrease in deferred outflows (63,296) (21,128) -
Increase indeferred inflows 403,185 134,587 -
Increase(Decrease)in accrued liabilities (670) 2,120 -
Total Adjustments (75,071) 20,944 (1,572)
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 1,864 $ 159,880 $ (2,057)
136
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,723,837 $ 1,083,684 $ 15,427,564
(9,862,845) (865,417) (11,895,435)
- - (3,328,954)
25,569 1,533 62,873
(113,439) 219,800 266,048
- 300,000
- 2,057
- - (137,249)
- 164,808
- - (217,727)
5,765
- - (211,962)
16,435 8,870 25,305
(97,004) 228,670 244,199
1,843,380 642,909 2,486,289
$ 1,746,376 $ 871,579 $ 2,730,488
$ 294,899 $ (145,595) $ 364,690
- 28,337
(214,070) - (214,070)
50,983 (6,488) 68,005
(245,251) 371,883 116,710
- - (552,422)
- - (84,424)
537,772
1,450
(408,338) 365,395 (98,642)
$ (113,439) $ 219,800 $ 266,048
137
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.
138
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES EXHIBIT D-1
AGENCY FUND
FOR THE YEAR ENDED JUNE 30,2015
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 510,076 $ 218,431 $ 88,233 $ 640,274
Accounts receivable 54,656 - 3,578 51,078
Total Assets $ 564,732 $ 218,431 $ 91,811 $ 691,352
LIABILITIES
Accounts payable $ 4,640 $ - $ 4,640 $ -
Due to other agency 560,092 218,431 87,171 691,352
Total Liabilities $ 564,732 $ 218,431 $ 91,811 $ 691,352
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 592,292 $ 124,586 $ 49,134 $ 667,744
Accrued interest 2,239 1,080 2,239 1,080
Total Assets $ 594,531 $ 125,666 $ 51,373 $ 668,824
LIABILITIES
Due to other agency $ 594,531 $ 125,666 $ 51,373 $ 668,824
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 1,102,368 $ 343,017 $ 137,367 $ 1,308,018
Accounts receivable 54,656 - 3,578 51,078
Accrued interest 2,239 1,080 2,239 1,080
Total Assets $ 1,159,263 $ 344,097 $ 143,184 $ 1,360,176
LIABILITIES
Accounts payable $ 4,640 $ - $ 4,640 $ -
Due to other agency 1,154,623 344,097 138,544 1,360,176
Total Liabilities $ 1,159,263 $ 344,097 $ 143,184 $ 1,360,176
139
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Statistical Section (unaudited)
June 30, 2015
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. 144
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 154
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. 158
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. 169
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. 172
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
143
CITY OF DUBUQUE,IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2006 2007 2008 2009 2010
Governmental activities
Net investment in capital assets $ 267,762,059 $ 288,978,975 $ 296,143,451 $ 298,855,346 $ 309,126,684
Restricted 21,693,357 23,900,328 31,970,724 27,171,123 26,064,318
Unrestricted 15,132,486 21,921,571 18,987,841 (5,280,715) (11,256,312)
Total governmental activities net position $ 304,587,902 $ 334,800,874 $ 347,102,016 $ 320,745,754 $ 323,934,690
Business-type activities
Net investment in capital assets $ 88,802,536 $ 91,483,532 $ 95,104,575 $ 120,473,286 $ 124,805,513
Restricted 554,294 554,318 554,505 770,157 129,642
Unrestricted 13,258,072 11,214,900 11,312,806 12,321,125 11,679,961
Total business-type activities net position $ 102,614,902 $ 103,252,750 $ 106,971,886 $ 133,564,568 $ 136,615,116
Primary government
Net investment in capital assets $ 356,564,595 $ 380,462,507 $ 391,248,026 $ 419,328,632 $ 433,932,197
Restricted 22,247,651 24,454,646 32,525,229 27,941,280 26,193,960
Unrestricted 28,390,558 33,136,471 30,300,647 7,040,410 423,649
Total primarygovemment net positions $ 407,202,804 $ 438,053,624 $ 454,073,902 $ 454,310,322 $ 460,549,806
144
TABLE 1
Year
2011 2012 2013 2014 2015
$ 329,416,245 $ 347,890,769 $ 342,046,442 $ 354,732,451 $ 348,173,267
23,738,199 26,180,100 23,491,207 21,501,638 22,044,478
(4,891,381) (16,876,988) (8,361,688) (18,151,279) (49,576,407)
$ 348,263,063 $ 357,193,881 $ 357,175,961 $ 358,082,810 $ 320,641,338
$ 135,026,753 $ 132,237,734 $ 138,498,777 $ 138,842,390 $ 148,487,126
893,519 957,802 6,011,848 5,315,519 7,796,668
2,603,799 10,665,596 (641,384) (593,202) (4,568,933)
$ 138,524,071 $ 143,861,132 $ 143,869,241 $ 143,564,707 $ 151,714,861
$ 464,442,998 $ 480,128,503 $ 480,545,219 $ 493,574,841 $ 496,660,393
24,631,718 27,137,902 29,503,055 26,817,157 29,841,146
(2,287,582) (6,211,392) (9,003,072) (18,744,481) (54,145,340)
$ 486,787,134 $ 501,055,013 $ 501,045,202 $ 501,647,517 $ 472,356,199
145
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2006 2007 2008 2009 2010
Expenses
Governmental activities:
Public safety $ 18,892,980 $ 20,326,724 $ 16,966,210 $ 22,038,265 $ 22,067,988
Public works 16,390,322 16,505,560 18,847,068 19,079,688 22,121,629
Health and social services 678,748 759,367 800,566 849,237 852,099
Culture and recreation 9,627,505 9,837,299 10,857,409 12,640,716 11,446,084
Community and economic development 8,541,167 11,965,805 11,961,584 12,693,140 15,422,099
General government 3,868,687 4,940,154 5,804,003 6,423,908 7,963,016
Interest on long-term debt 1,460,730 1,400,748 2,577,417 3,164,126 3,101,897
Total governmental activities expenses 59,460,139 65,735,657 67,814,257 76,889,080 82,974,812
Business-type activities:
Sewage disposal works 5,298,353 5,814,076 6,141,524 6,326,708 6,631,326
Water utility 4,700,483 4,780,063 4,814,692 6,100,491 6,093,827
Stormwater utility 1,153,628 1,198,675 1,706,735 2,138,198 2,213,144
Parking facilities 1,629,427 1,611,447 2,173,110 2,147,405 4,003,776
America's River Project 82,617 434,667 126,699 61,927 423,158
Refuse collection 2,463,795 2,496,018 2,724,050 2,788,665 2,703,887
Transit system 2,555,080 2,760,459 2,703,983 2,625,145 2,832,066
Salt
Total business-type activities expenses 17,883,383 19,095,405 20,390,793 22,188,539 24,901,184
Total primary government expenses $ 77,343,522 $ 84,831,062 $ 88,205,050 $ 99,077,619 $ 107,875,996
Program Revenues
Governmental activities:
Charges for services
Public safety 1,809,481 1,857,324 2,088,723 2,020,625 2,348,064
Public works 3,370,291 4,839,781 4,061,883 4,456,364 4,046,583
Culture and recreation 2,218,315 2,251,562 2,109,571 2,279,688 2,192,886
Other activities 895,920 1,074,550 1,382,889 1,557,597 2,412,880
Operating grants and contributions 12,902,410 11,641,904 11,709,123 12,599,967 20,830,113
Capital grants and contributions 6,881,573 23,741,282 8,032,602 4,811,729 10,748,522
Total governmental activities program revenues 28,077,990 45,406,403 29,384,791 27,725,970 42,579,048
Business-type activities:
Charges for services
Sewage disposal works 5,077,491 5,259,432 5,484,079 5,904,535 5,893,730
Water utility 4,669,340 4,743,896 4,875,530 5,320,642 5,326,202
Stortnwater utility 928,850 1,227,243 1,766,334 2,291,249 2,282,625
Parking facilities 1,886,642 1,977,757 2,141,607 2,224,185 2,399,843
America's River Project 51,373 3,099 2,140 - 7,000
Refuse collection 2,397,525 2,642,251 2,710,583 2,872,649 2,893,017
Transit system 341,743 237,088 195,817 196,260 273,433
Salt - - - - -
Operating grants and contributions 920,762 1,167,344 1,209,636 1,095,946 1,652,277
Capital grants and contributions 2,769,657 1,670,874 2,830,263 3,613,321 3,800,582
Total business-type activities program revenues 19,043,383 18,928,984 21,215,989 23,518,787 24,528,709
Total primary government program revenues $ 47,121,373 $ 64,335,387 $ 50,600,780 $ 51,244,757 $ 67,107,757
146
TABLE2
Year
2011 2012 2013 2014 2015
$ 23,759,068 $ 26,326,367 $ 28,292,481 $ 27,578,517 $ 25,525,937
18,978,423 22,917,747 21,607,536 21,306,882 19,207,837
1,072,347 913,954 716,970 1,055,398 928,968
10,911,733 12,749,558 13,647,178 13,696,331 13,002,690
12,890,841 22,030,950 17,388,720 14,591,257 18,064,831
9,052,704 6,133,983 6,248,483 9,610,084 6,420,173
3,294,951 3,294,912 4,049,640 3,684,993 3,903,667
79,960,067 94,367,471 91,951,008 91,523,462 87,054,103
7,899,011 9,718,669 9,375,748 11,481,103 12,019,866
6,523,993 7,410,710 6,817,772 8,812,340 7,800,393
2,811,321 2,750,767 3,347,304 3,431,096 4,131,562
4,775,834 3,152,055 3,586,405 3,732,492 3,383,419
180,086 22,787 22,770 33,579 24,000
2,828,891 3,173,075 3,468,859 3,750,366 3,740,404
2,947,958 3,629,750 3,492,095 3,847,320 4,245,823
671,647 661,395 346,066 56,468 244,691
28,638,741 30,519,208 30,457,019 35,144,764 35,590,158
$ 108,598,808 $ 124,886,679 $ 122,408,027 $ 126,668,226 $ 122,644,261
2,579,573 2,915,562 2,495,737 2,624,455 2,532,114
5,331,667 5,178,439 4,472,479 5,829,293 6,092,356
2,108,177 2,321,553 2,488,844 2,321,265 2,547,843
2,530,234 2,873,298 3,264,979 3,921,256 3,493,143
14,204,627 23,013,997 13,995,316 12,784,907 11,992,439
23,482,866 16,560,811 10,791,945 12,162,649 9,704,043
50,237,144 52,863,660 37,509,300 39,643,825 36,361,938
6,643,974 7,827,281 8,924,785 10,025,673 10,582,662
5,638,277 6,037,073 6,922,582 7,248,790 7,463,430
2,993,539 3,180,134 3,192,256 3,224,504 3,490,040
2,750,610 2,908,989 2,883,865 2,920,148 3,036,214
3,082,197 3,257,960 3,346,795 3,700,922 3,783,493
193,236 278,835 307,314 275,907 397,545
773,258 665,942 395,000 45,600 232,271
2,773,933 1,579,493 2,264,695 1,717,208 1,866,535
6,536,527 5,323,486 1,240,583 2,920,942 10,020,715
31,385,551 31,059,193 29,477,875 32,079,694 40,872,905
$ 81,622,695 $ 83,922,853 $ 66,987,175 $ 71,723,519 $ 77,234,843
(Continued)
147
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2006 2007 2008 2009 2010
Net(Expense)/Revenue
Governmental activities $ (31,382,149) $ (20,329,254) $ (38,429,466) $ (49,163,110) $ (40,395,764)
Business-type activities 1,160,000 (166,421) 825,196 1,330,248 (372,475)
Total primary government net expense $ (30,222,149) $ (20,495,675) $ (37,604,270) $ (47,832,862) $ (40,768,239)
General Revenues and Other Changes in Net Position
Governmental activities:
General Revenues
Property taxes 19,716,620 21,656,908 22,744,563 23,716,819 24,876,073
Local option sales tax 7,336,124 7,817,403 8,020,889 7,649,853 8,112,471
Hotel/moteltax 1,862,439 1,569,743 1,622,455 1,611,954 1,678,806
Utility franchise fees 1,521,201 1,492,920 1,516,123 1,486,292 1,591,712
Gaming 14,034,847 15,556,551 15,346,468 9,627,391 8,209,761
Unrestricted investment earnings 1,081,141 1,870,403 2,741,499 2,215,413 1,339,709
Gain on sale of capital assets 77,627 - 92,525 407,503 -
Other 572,602 586,931 898,241 918,605 880,930
Transfers 5,033,974 (7,633) (2,252,155) (24,826,982) (3,104,762)
Total governmental activities 51,236,575 50,543,226 50,730,608 22,806,848 43,584,700
Business-type activities:
General Revenues
Unrestricted investment earnings 339,599 796,636 630,049 433,148 294,562
Gain on sale of capital assets 703 - 11,736 2,304 23,699
Extraordinary item - - - - -
Transfers (5,033,974) 7,633 2,252,155 24,826,982 3,104,762
Total business-type activities (4,693,672) 804,269 2,893,940 25,262,434 3,423,023
Total primary government $ 46,542,903 $ 51,347,495 $ 53,624,548 $ 48,069,282 $ 47,007,723
Change in Net Position
Governmental activities $ 19,854,426 $ 30,213,972 $ 12,301,142 $ (26,356,262) $ 3,188,936
Business-type activities (3,533,672) 637,848 3,719,136 26,592,682 3,050,548
Total primary government $ 16,320,754 $ 30,851,820 $ 16,020,278 $ 236,420 $ 6,239,484
148
TABLE2
(continued)
Year
2011 2012 2013 2014 2015
$ (29,722,923) $ (41,503,811) $ (54,441,708) $ (51,879,637) $ (50,692,165)
2,746,810 539,985 (979,144) (3,065,070) 5,282,747
$ (26,976,113) $ (40,963,826) $ (55,420,852) $ (54,944,707) $ (45,409,418)
28,249,114 30,816,614 32,668,554 33,264,283 36,277,719
7,929,761 8,459,888 8,764,787 8,211,366 8,760,246
1,826,809 1,903,944 1,953,763 2,006,514 2,623,551
2,488,858 2,272,481 2,568,347 2,609,421 2,828,688
13,327,223 8,785,453 8,452,298 7,878,008 7,397,709
668,363 1,529,149 201,153 777,958 668,134
149,937 1,417,048 907,122 483,782 19,495
622,494 - - - -
(1,211,263) (4,749,948) (1,092,236) (2,444,846) (7,288,593)
54,051,296 50,434,629 54,423,788 52,786,486 51,286,949
184,581 206,672 65,351 135,461 185,356
19,337 84,178 384,697 180,229 6,571
(2,253,036) (243,722) (555,031) - -
1,211,263 4,749,948 1,092,236 2,444,846 7,288,593
(837,855) 4,797,076 987,253 2,760,536 7,480,520
$ 53,213,441 $ 55,231,705 $ 55,411,041 $ 55,547,022 $ 58,767,469
$ 24,328,373 $ 8,930,818 $ (17,920) $ 906,849 $ 594,784
1,908,955 5,337,061 8,109 (304,534) 12,763,267
$ 26,237,328 $ 14,267,879 $ (9,811) $ 602,315 $ 13,358,051
149
CITY OF DUBUQUE,IOWA
FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2006 2007 2008 2009 2010
General Fund
Reserved $ 1,477,141 $ 4,455,303 $ 1,699,825 $ 4,864,701 $ 5,199,760
Unreserved 16,050,997 17,827,631 17,982,016 14,206,181 8,622,705
Nonspendable - - - - -
Assigned - - - - -
Unassigned - - - - -
Total general fund $ 17,528,138 $ 22,282,934 $ 19,681,841 $ 19,070,882 $ 13,822,465
All Other Governmental Funds
Reserved $ 15,564,016 $ 13,942,519 $ 31,887,038 $ 19,634,305 $ 24,404,656
Unreserved,reported in:
Special revenue fiords 7,277,471 7,586,898 7,431,931 5,981,390 4,011,022
Debt service fimd - - - - -
Capital projects fiords (981,248) 4,195,354 7,875,448 5,659,214 (989,025)
Permanent fimds 83,367 115,825 33,958 35,550 33,273
Nonspendable - - - - -
Reshicted - - - - -
Committed - - - - -
Unassigned - - - - -
Total all other governmental fiords $ 21,943,606 $ 25,840,596 $ 47,228,375 $ 31,310,459 $ 27,459,926
*Classification changed in 2011 due to adoption of GASB 54.
150
TABLE3
Yeu
2011* 2012 2013 2014 2015
868,631 5,613,359 6,646,278 6,549,063 6,082,043
8,904,490 5,549,803 3,434,440 1,904,805 647,772
6,139,306 9,371,016 8,806,171 7,356,066 8,693,524
$ 15,912,427 $ 20,534,178 $ 18,886,889 $ 15,809,934 $ 15,423,339
10,320,305 10,975,468 9,092,520 8,640,780 1,183,423
18,010,570 31,362,126 30,738,046 23,620,615 30,496,183
5,203,472 5,843,671 10,827,172 10,548,592 12,298,896
(377,363) (429,344) - - -
$ 33,156,984 $ 47,751,921 $ 50,657,738 $ 42,809,987 $ 43,978,502
151
CITY OF DUBUQUE,IOWA
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2006 2007 2008 2009 2010
Revenues
Taxes $ 30,043,167 $ 32,526,525 $ 33,898,692 $ 34,454,146 $ 36,252,156
Special assessments 322,214 586,459 177,585 250,372 318,178
Licenses and permits 965,712 1,052,896 1,153,429 1,088,386 1,115,472
Intergovernmental 15,021,722 16,744,703 14,256,523 15,796,822 27,310,624
Charges for services 6,620,243 7,351,191 7,833,151 8,029,189 8,063,284
Fines and forfeits 204,201 158,360 188,603 199,839 224,601
Investment earnings 1,096,445 1,913,420 2,731,953 2,206,382 1,348,615
Contributions 246,908 1,168,463 6,134,002 1,369,759 2,333,995
Gaming 14,034,847 15,556,551 15,346,468 9,627,391 8,209,761
Miscellaneous 1,106,991 1,149,546 1,269,376 1,600,679 2,111,834
Total revenues 69,662,450 78,208,114 82,989,782 74,622,965 87,288,520
Expenditures
Current
Public safety 19,535,369 20,743,196 21,542,661 21,335,192 21,979,729
Public works 11,605,567 12,506,378 16,331,107 14,261,551 19,251,625
Health and social services 715,598 783,209 797,644 815,873 813,609
Culture and recreation 9,998,462 10,244,244 10,277,787 12,227,506 14,909,517
Community and economic development 9,981,645 11,695,902 11,847,512 11,953,279 14,654,816
General government 4,090,866 4,441,043 6,310,939 5,836,839 6,368,308
Debt service
Principal 1,325,970 1,663,339 1,762,375 2,169,678 2,651,765
Interest 1,493,504 1,412,012 2,406,431 3,095,166 3,145,735
Capital projects 14,528,340 8,227,257 15,351,848 24,274,120 14,831,118
Total expenditures 73,275,321 71,716,580 86,628,304 95,969,204 98,606,222
Excess(deficiency)of revenues over
(under)expenditures (3,612,871) 6,491,534 (3,638,522) (21,346,239) (11,317,702)
Other Financing Sources(Uses)
Issuance of bonds 13,682 743,591 23,083,696 5,905,000 4,722,176
Discount on bonds - - (266,158) (48,516) (31,990)
Premiums on bonds - - - - 554,796
Issuance of refunding bonds 1,515,750 - 2,965,000 - 8,885,000
Payment to refunded bonds escrow agent (1,494,371) - (2,875,000) - (9,405,000)
Transfers in 7,334,605 10,394,726 14,801,589 7,451,152 7,993,297
Transfers out (11,904,890) (11,789,548) (18,185,109) (9,084,228) (10,562,137)
Insurance recovery - - - - -
Saleofcapitalassets 150,491 2,811,483 2,901,190 593,956 62,610
Total other financing sources(uses) (4,384,733) 2,160,252 22,425,208 4,817,364 2,218,752
Net change in fund balances $ (7,997,604) $ 8,651,786 $ 18,786,686 $ (16,528,875) $ (9,098,950)
Debt service as a percentage of noncapital
expenditures 4.99 % 5.01 % 6.55 % 7.68 % 7.74%
152
TABLE4
Year
2011 2012 2013 2014 2015
$ 40,428,894 $ 43,443,669 $ 45,440,973 $ 46,034,361 $ 50,490,204
232,535 596,138 175,486 154,692 85,501
1,170,922 1,570,022 1,271,771 1,136,941 1,198,420
26,171,082 37,574,783 26,580,831 23,050,052 20,828,524
8,723,086 9,296,329 8,952,179 10,264,257 10,711,243
454,117 525,389 484,128 455,219 362,661
654,587 1,511,437 180,016 756,809 668,134
1,297,621 1,578,376 370,154 678,561 789,268
13,327,223 8,785,453 8,452,298 7,878,008 7,397,709
2,075,262 1,319,558 1,315,915 1,705,275 1,466,542
94,535,329 106,201,154 93,223,751 92,114,175 93,998,206
23,950,386 24,476,772 26,506,714 27,644,190 27,570,773
14,429,415 12,385,929 13,416,108 13,942,772 11,200,427
1,040,114 828,837 680,466 1,049,194 939,172
11,279,951 10,873,474 11,218,019 12,351,497 12,300,454
12,361,176 22,237,140 18,678,496 14,420,980 16,418,909
7,686,929 6,335,947 5,035,108 5,898,293 5,977,605
2,820,371 3,224,680 3,182,240 4,595,808 4,910,735
3,321,157 3,220,546 3,991,115 3,650,694 3,577,829
15,102,893 23,459,891 16,636,698 18,779,651 14,829,037
91,992,392 107,043,216 99,344,964 102,333,079 97,724,941
2,542,937 (842,062) (6,121,213) (10,218,904) (3,726,735)
6,996,722 27,215,363 6,577,268 - 11,137,321
(39,547) (71,689) - - 72,852
1,642 123,990 - - -
705,000 - 4,949,148 - -
(690,000) - (4,949,148) - -
15,850,523 8,773,387 15,295,630 15,862,516 18,073,553
(18,961,892) (18,336,603) (16,981,203) (17,294,762) (25,241,795)
628,482 132,425 49,209 59,796 106,288
753,153 2,221,877 2,438,837 666,648 360,436
5,244,083 20,058,750 7,379,741 (705,802) 4,508,655
$ 7,787,020 $ 19,216,688 $ 1,258,528 $ (10,924,706) $ 781,920
8.49 % 7.65 % 8.57 % 9.51 % 9.97 %
153
CITY OF DUBUQUE,IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY TABLE 5
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Total
Taxable
Value to
Real Property Exemptions Total Total
Levy Fiscal Taxable Assessed Real Taxable Assessed Assessed Total Direct
Year Year Value Value Property Value Value Value Tax Rate
2004 2006 $ 1,710,334 $ 2,679,078 $ 9,862 $ 1,700,472 $ 2,679,078 63.47 % 9.69910 %
2005 2007 1,780,354 2,804,568 9,122 1,771,232 2,804,568 63.16 9.98030
2006 2008 1,823,304 2,870,178 8,939 1,814,365 2,870,178 63.21 10.31685
2007 2009 1,949,071 3,171,681 9,298 1,939,773 3,171,681 61.16 9.96904
2008 2010 2,033,135 3,239,112 9,246 2,023,889 3,239,112 62.48 9.85777
2009 2011 2,159,622 3,349,823 8,885 2,150,737 3,349,823 64.20 10.02742
2010 2012 2,243,474 3,406,186 8,875 2,234,599 3,406,186 65.60 10.45111
2011 2013 2,337,129 3,476,638 8,872 2,328,257 3,476,638 66.97 10.78478
2012 2014 2,398,151 3,503,774 8,799 2,389,352 3,503,774 68.19 11.02586
2013 2015 2,522,048 3,686,202 8,729 2,513,319 3,686,202 68.18 11.02588
Source: Dubuque County Assessor's and Auditor's Offices
154
CITY OF DUBUQUE,IOWA
PROPERTY TAX RATES TABLE6
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER$1,000 ASSESSED VALUE
Dubuque Boarder Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubuque
Year Year City District Independents Voc.Tech County Total City to Total
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
2012 2014 11.02586 14.60281 0.75274 0.90455 6.43124 33.71720 32.70
2013 2015 11.02588 13.99630 0.66355 0.90807 6.43124 33.02504 33.39
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
Year Year General Transit Insurance Benefits Service Total
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
2012 2014 8.10000 0.38382 0.16288 2.33093 0.04823 11.02586
2013 2015 8.10000 0.48268 0.16595 2.23209 0.04516 11.02588
Source: Dubuque County Auditor's Office.
155
CITY OF DUBUQUE,IOWA
PRINCIPAL PROPERTY TAXPAYERS TABLE 7
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2015 2006
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 LLC $ 56,945 1 2.26%
Kennedy Mall Inc. 35,410 2 1.40 $ 23,834 1 1.39%
Progressive Processing LLC(Hormel) 25,065 3 0.99
Medical Associates Realty LLC 20,945 4 0.83 17,880 2 1.05
Nordstrom,Inc. 15,559 5 0.62 16,723 4 0.98
Walter Development LLC 14,623 6 0.58
The McGraw Hill Companies Inc. 14,487 7 0.57
Platinum Holdings LLC 0.56
14,062 8 10,162 6 0.59
Flexsteel Industries Inc. 0.50
12,534 9
Lexington Dubuque LLC 0.47
11,892 10 9,815 7 0.57
Otto A LLC
17,500 3 1.02
Asbury Dubuque LLC
9,095 9 0.53
Minglewood Limited Partnership
U.S.West Communications 9,043 10 0.53
American Trust&Savings Bank 9,401 8 0.55
10,531 5 0.62
$ 221,522 8.78 % $ 133,984 7.83 %
Source: Dubuque County Auditor's Office
156
CITY OF DUBUQUE,IOWA
PROPERTY TAX LEVIES AND TABLES
COLLECTIONS LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Percent of Total Tax Ratio of
Total Current Current Delinquent Collections Outstanding Delinquent
Fiscal Levy Tax Tax Taxes Tax Total Tax to Total Delinquent Taxes to Total
Year Year Levy' Collections Collected Collections Collections2 Tax Levy Taxes Tax Levy
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 18,690 98.4 5 18,695 98.4 262 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 21,340 21,339 100.0 1 21,340 99.9 185 0.87
2013 2012 22,789 22,752 99.8 7 22,759 99.9 182 0.80
2014 2013 23,993 23,915 99.7 8 23,923 99.7 211 0.88
2015 2014 24,866 24,715 99.4 7 24,722 99.4 362 1.46
'Excludes tax increment levy.
2Includes taxes collected in June by the County but not received by the City until July.
157
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business-
General Tax Increment Tax Increment General
Fiscal Obligation Financing Financing Other Loans Obligation
Year Bonds Bonds Notes Payable Bonds
2006 $ 24,036,627 $ 3,040,304 $ 590,439 $ - $ 11,428,712
2007 22,870,646 2,594,831 1,279,885 - 10,895,593
2008 21,752,907 24,879,116 1,279,885 - 11,384,371
2009 25,941,693 24,363,262 1,169,684 150,000 14,448,770
2010 27,887,864 24,449,674 1,049,696 282,857 23,957,802
2011 32,561,048 23,037,222 1,931,348 282,857 25,254,652
2012 53,087,811 22,258,283 1,767,664 4,735,714 35,108,003
2013 56,517,165 21,920,537 1,235,903 5,638,871 34,921,131
2014 52,568,648 21,556,435 1,030,036 5,541,428 32,738,862
2015 59,614,941 21,165,946 811,608 5,444,285 45,868,394
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
'Population and personal income data can be found in Table 17.
*Personal Income unavailable at report date
158
TABLE 9
Type Activities
Capital Other Total Percentage of
Loan Revenue Loans Primary Personal Per
Notes Bonds Payable Government Income' Capital
$ $ 940,000 $ $ 40,036,082 2.01% $ 694
720,000 38,360,955 1.81 665
611,977 490,000 60,398,256 2.66 2,174
3,914,076 1,434,713 390,890 71,813,088 3.22 1,245
8,289,621 1,115,430 371,978 87,404,922 3.88 1,515
33,195,408 6,777,793 2,252,109 125,292,437 5.12 2,174
61,957,749 6,521,188 331,235 185,767,647 7.14 3,223
75,415,431 6,260,299 309,304 202,218,641 7.77 3,508
82,924,949 14,151,437 286,263 210,798,058 8.11 3,657
85,477,970 34,543,432 262,055 253,188,631 * 4,393
159
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING TABLE 10
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
Percentage of Percentage of
General Taxable Taxable Assessed Assessed
Fiscal Obligation Value of Value of Value of Value of Per
Year Bonds Property Property Property Property Capita
2006 $ 35,465 $ 1,700,472 2.09 % $ 2,679,078 1.32 % 615
2007 33,766 1,771,232 1.91 % 2,804,658 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
2014 85,308 2,398,151 3.56 % 3,503,774 2.43 % 1,480
2015 105,483 2,522,048 4.18 % 3,686,202 2.86 % 1,830
160
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2015
TABLE 11
Jurisdiction
Net General Tax Tax
Obligation Increment Increment Percentage Amount
Bonded Debt Financing Financing Sales Tax Loans Applicable Applicable to
Outstanding 1 Bonds Notes Revenue Bonds Payable to City Government
Direct, City of Dubuque, Iowa $ 59,101,394 $ 21,370,000 $ 811,608 $
Overlapping:
Dubuque County
Dubuque Community School District
Northeast Iowa Community College
Total Overlapping
Total
4,500,000
47,863,000
4,500,000 - - 47,863,000
$ 5,444,285 100.00 % $ 86,727,287
1,052,668 0.06 % 3,332
- 99.88 % 47,805,564
47,270,000 0.06 % 28,362
48,322,668 47,837,258
$ 63,601,394 $ 21,370,000 $ 811,608 $ 47,863,000 $ 53,766,953 $ 134,564,545
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 bome by the residents and businesses of
Dubuque. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden bome 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.
m
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2006 2007 2008 2009
Debit limit $ 138,789 S 145,401 S 148,824 S 163,621
Total net debt
applicable to limit 39,443 38,060 60,485 76,182
Legal debit margin $ 99,346 S 107,341 S 88,339 S 87,439
Total net debt
applicable to the debt
limit as a percentage
of debt limit 28.42% 26.18 % 40.64 % 46.56 %
162
TABLE 12
2010 2011 2012 2013 2014 2015
$ 167,247 $ 174,333 $ 177,668 $ 181,668 $ 183,621 $ 193,114
101,152 92,443 142,316 143,303 149,923 173,597
$ 66,095 $ 81,890 $ 35,352 $ 38,365 $ 33,698 $ 19,517
60.48 % 53.03 % 80.10 % 78.88 % 81.65 % 89.89 %
Legal Debt Margin Calculation for Fiscal Year 2015
Estimated actual value $ 3,862,274,416
Debt limit- 5%of total actual valuation $ 193,113,721
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund) $ 173,597,304
Legal debt margin $ 19,516,417
163
CITY OF DUBUQUE,IOWA
REVENUE DEBT COVERAGE LAST TABLE 13
TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Net Revenue Next Fiscal Year's
Fiscal Gross Operating Available For Debt Service Requirements
Year Revenues' Expenses2 Debt Service Principal Interest Total Coverage'
WATER UTILITY
2008 $ 4,933 $ 3,959 $ 974 $ 39 $ 57 $ 96 10.15
2009 5,391 5,196 195 70 52 122 1.60
2010 5,353 5,153 200 70 182 252 0.79
2011 5,680 5,316 364 255 238 493 0.74
2012 6,087 5,895 192 260 231 491 0.39
2013 6,944 5,391 1,553 432 344 776 2.00
2014 7,283 7,384 (101) 275 218 493 (0.20)
2015 7,511 6,322 1,189 285 211 496 2.40
STORMWATER UTILITY
2009 2,402 1,309 1,093 75 58 133 8.22
2010 2,357 1,320 1,037 100 178 278 3.73
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 1,715 320 309 629 1.87
2014 3,240 1,833 1,407 331 311 642 2.19
2015 3,551 2,162 1,389 341 356 697 1.99
SEWAGE DISPOSAL WORKS
2009 6,084 5,093 991 - 7 7 141.57
2010 5,995 5,331 664 33 382 415 1.60
2011 6,699 6,029 670 34 1,129 1,163 0.58
2012 7,878 7,018 860 1,719 1,443 3,162 0.27
2013 8,951 6,113 2,838 2,326 1,423 3,749 0.76
2014 10,083 6,754 3,329 2,603 1,358 3,961 0.84
2015 10,629 6,950 3,679 2,610 1,435 4,045 0.91
PARKING BONDS
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.
'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 requirement.
164
CITY OF DUBUQUE,IOWA
WATER AND SEWER RECEIPT HISTORY TABLE 14
LAST TEN FISCAL YEARS
Water Sewer Gallons
Fiscal Year Revenue Revenue Billed
2006 $ 4,534,013 $ 4,802,519 1,842,678,178
2007 4,599,040 5,142,044 1,929,908,816
2008 4,747,206 5,348,001 1,971,517,064
2009 5,085,319 5,684,459 1,836,957,848
2010 5,209,591 5,710,768 1,822,051,488
2011 5,561,910 6,502,740 1,903,364,420
2012 6,298,768 8,682,927 1,914,175,940
2013 6,701,771 8,472,382 1,945,227,547
2014 7,028,091 9,756,996 1,845,151,329
2015 7,231,393 10,417,833 1,864,028,948
Source: Cash basis receipt ledgers.
Note: Revenue includes charges for services,penalties, and investment earnings.
This table has been restated from prior years to remove sales tax from revenue.
WATER RATE SCHEDULE HISTORY
Unit Price by Fiscal Year
Steps Gallons 2015 2014 2013 2012 2011 2010
First 22,440 @ S 0.00406 S 0.00387 S 0.00355 S 0.00309 S 0.00294 S 0.00283
Next 89,760 @ 0.00332 0.00316 0.00290 0.00252 0.00240 0.00231
Next 261,800 @ 0.00309 0.00294 0.00270 0.00235 0.00224 0.00215
Next 374,000 @ 0.00274 0.00261 0.00239 0.00208 0.00198 0.00190
Excess @ 0.00240 0.00229 0.00210 0.00183 0.00174 0.00167
165
CITY OF DUBUQUE,IOWA
WATER METERS BY RATE CLASS TABLE 15
LAST TEN FISCAL YEARS
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
2014 20,887 1,945 81 68 22,981
2015 20,969 1,968 83 76 23,096
166
CITY OF DUBUQUE,IOWA
LARGEST WATER AND SEWER CUTOMERS TABLE 16
FISCAL YEAR 2015
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot Inc $ 343,148 1 4.75 %
Hormel Foods Corporation* 145,460 2 2.01 $ 327,431 1 3.14 %
Prairie Farms Dairy Inc 79,224 3 1.10
Hormel Foods Corporation* 68,063 4 0.94 146,866 2 1.41
Premier Linen&Dry Cleaning 49,588 5 0.69 103,737 3 1.00
Finley Hospital 43,170 6 0.60 74,796 4 0.72
Peninsula Gaming Co LLC 41,066 7 0.57 54,112 6 0.52
Mercy Medical Center 33,782 8 0.47
Inland Protein Corporation 33,238 9 0.46
StoneMll Nursing Home 32,022 10 0.44 53,620 7 0.51
Grand Harbor Resort&Waterpark 57,975 5 0.56
Yes Companies Exp LLC 49,651 8 0.48
Alpin Park Community 49,609 9 0.48
Tablemound Investments 48,205 10 0.46
Total Revenue $ 7,231,393 $ 10,417,833
*Same company,separate accounts.Previously combined several accounts under same business,now listerd seperately.
167
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS TABLE 17
FISCAL YEAR ENDING JUNE 30,2015
Estimated Remaining
Sales Tax Remaining Second Lien Revenues
Increment Senior Lien Series Revenues After Series 2014 after Second
Fiscal Revenue 2015A Senior Lien Debt Lien Debt
Year Receipts Net Debt Service' Debt Service Servicez Service
2015 $ 1,784,299 $ $ 1,784,299 $ $ 1,784,299
2016 3,084,781 3,084,781 3,084,781
2017 3,915,672 3,915,672 (323,100) 3,592,572
2018 4,764,427 (762,650) 4,001,777 (323,100) 3,678,677
2019 4,764,911 (762,650) 4,002,261 (323,100) 3,679,161
2020 4,801,918 (762,650) 4,039,268 (323,100) 3,716,168
2021 5,593,037 (762,650) 4,830,387 (323,100) 4,507,287
2022 6,399,662 (762,650) 5,637,012 (323,100) 5,313,912
2023 6,869,796 (2,767,650) 4,102,146 (438,100) 3,664,046
2024 6,956,900 (2,771,000) 4,185,900 (1,393,500) 2,792,400
2025 6,956,900 (2,768,969) 4,187,931 (1,400,500) 2,787,431
2026 6,952,300 (2,771,031) 4,181,269 (1,344,250) 2,837,019
2027 6,952,300 (2,768,719) 4,183,581 (1,363,000) 2,820,581
2028 6,947,494 (2,768,394) 4,179,100 (1,365,000) 2,814,100
2029 6,713,458 (2,767,300) 3,946,158 (1,365,000) 2,581,158
2030 6,238,500 (2,768,800) 3,469,700 - 3,469,700
2031 5,797,823 (686,400) 5,111,423 - 5,111,423
2032 1,500,000 1,500,000 - 1,500,000
2033 1,500,000 1,500,000 - 1,500,000
'Net of capitalized interest and the debt service reserve fund.
2 Consisting of the Sales Tax Increment Revenue Bonds(Unlimited Property Tax Supported),Second Lien Series 2014,
dated June 16,2014,issued under the Master Resolution. Net of capitalized interest.
168
CITY OF DUBUQUE,IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS TABLE 18
LAST TEN CALENDAR YEARS
Per Capita Public
Personal Personal Median School Unemployment
Year Population Income Income' Agee Enrollment' Rate^
2006 57,686 $ 1,993,455,102 $ 34,557 37 10,733 3.5 %
2007 57,686 2,125,036,868 36,838 37 10,727 3.7
2008 57,686 2,275,135,840 39,440 38 10,614 3.8
2009 57,686 2,233,198,118 38,713 37 10,697 6.2
2010 57,686 2,251,946,068 39,038 37 10,517 6.4
2011 57,637 2,447,843,390 42,470 37 10,467 5.8
2012 57,637 2,532,281,595 43,935 37 10,469 5.2
2013 57,637 2,600,235,618 45,114 39 10,513 4.6
2014 57,637 2,600,293,255 45,115 39 10,578 4.4
2015 57,637 * * 38 10,634 3.7
Data Sources:
'U.S. Department of Commerce,Bureau of Economic Analysis.
2 Greater Dubuque Development Corporation.
'Dubuque Community School District.
^Iowa Department of Employment Services as of June 30.
*Unavailable at report date.
Per Capita Personal Income'was revised by U.S. Department of Commerce,Bureau of Economic
Analysis which also affects Personal Income.
169
CITY OF DUBUQUE,IOWA
PRINCIPAL EMPLOYERS TABLE 19
CURRENT YEAR AND NINE YEARS AGO
2015 2006
Percentage of Percentage of
#of Total City #of Total City
Employer Employees Rank Employment' Employees Rank Employment'
John Deere 2 2,400 1 4.36 % 1,900 1 3.54 %
Dubuque Community Schools 1,946 2 3.53 1,410 2 2.62
Mercy Medical Center 1,313 3 2.38 1,324 3 2.46
Medical Associates 1,027 4 1.86 998 5 1.86
Unity Point Health 859 5 1.56 920 7 1.71
City of Dubuque 695 6 1.26 716 10 1.33
Eagle Window&Door 660 7 1.20 950 6 1.77
IBM 625 8 1.13
Sedgwick 550 9 1.00
Diamond Jo 510 10 0.93
Flexsteel 750 9 1.44
Heartland Financial USA,Inc.' 760 8 1.41
McCoy Group' 1,200 4 2.23
10,585 19.21 % 10,928 20.37 %
Source: Greater Dubuque Development Corp.
'Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor,Bureau
of Labor Statistics.
z Located just outside City Limits.
3 2006 numbers include employees outside the City.
170
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE,IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
Full-Time
2006 2007 2008 2009
Public Safety
Emergency Communications 11.00 11.00 11.00 13.00
Fire 90.00 90.00 90.00 90.00
Police 99.00 100.00 101.00 108.67
Building Services 7.00 7.00 7.00 8.00
Public Works
Public Works 87.00 87.00 87.00 88.00
Engineering 25.00 25.00 25.00 26.00
Health&Social Services
Health Services 5.00 5.00 4.00 4.00
Human Rights 3.00 3.00 3.00 3.00
Cultural and Recreation
Civic Center 1.15 0.15 0.15 0.15
Library 18.00 18.00 18.00 18.00
Park 21.92 21.92 21.92 21.92
Recreation 8.93 7.93 7.93 7.93
Community&Economic Development
Community/Economic Dev 3.00 3.00 3.00 3.00
Housing Services 21.00 20.25 18.00 22.00
Planning Services 8.00 8.00 8.00 8.00
General Government
Airport 13.00 13.23 12.00 12.00
Cable TV 2.00 2.00 2.00 2.00
City Clerks Office 3.00 3.00 3.00 3.00
City Manager's Office 11.00 11.00 11.00 13.50
Finance 14.00 14.00 14.00 14.00
Legal 2.62 3.00 3.00 4.00
Information Services 6.00 6.00 7.00 7.00
Business Type
Water 23.00 23.00 23.00 23.00
*Water&Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 8.00 8.00 7.00 7.50
Transit 8.55 8.00 7.00 7.00
Total 518.17 516.48 512.00 532.67
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.
172
TABLE20
Equivalent as of June 30
2010 2011 2012 2013 2014 2015
13.00 13.00 13.00 13.00 13.00 13.00
90.00 90.00 90.00 90.00 90.00 90.00
110.84 113.34 114.25 115.00 115.08 115.88
8.00 9.00 9.00 9.00 9.24 11.66
87.42 87.42 87.42 86.17 86.42 86.42
26.00 27.00 27.00 29.00 29.00 29.00
4.00 4.00 4.00 4.00 4.00 4.00
3.00 3.00 4.00 5.00 5.00 5.00
0.15 0.15 0.15 0.15 0.15 0.15
18.00 18.00 18.00 19.00 19.00 19.00
22.51 22.50 23.50 23.50 23.50 23.50
8.43 8.93 9.93 9.93 9.93 10.93
3.00 3.00 3.00 3.00 4.00 4.00
22.00 22.25 23.00 25.80 27.00 26.00
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
15.00 15.00 14.00 15.00 15.00 16.00
14.00 14.00 14.00 14.00 14.08 14.88
4.66 5.00 5.00 5.00 5.00 5.00
7.00 7.00 7.00 7.50 8.00 8.00
24.00 25.00 25.00 25.00 26.00 26.00
18.00 18.00 18.00 18.00 18.00 18.00
9.00 9.00 9.00 9.00 9.00 9.00
6.00 7.00 6.00 6.00 6.32 8.00
539.01 546.59 549.25 557.05 561.72 568.42
173
CITY OF DUBUQUE,IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal-
2006 2007 2008 2009
Public Safety
Police
Physical arrests 4,790 5,078 5,090 6,325
Traffic violations 8,398 6,842 6,881 8,801
Parking violations 46,575 42,530 40,741 36,457
Fire
Number of calls answered 4,176 4,454 4,699 4,480
Inspections conducted 409 360 624 443
Sewer
Sewage system
Daily average treatment in gallons 8,500,000 8,000,000 10,310,000 7,981,000
Maximum daily capacity of treatment plant in
gallons 13,500,000 13,500,000 13,500,000 21,131,000
Water systems
Daily average consumption in gallons 8,057,000 7,950,000 7,812,000 7,845,000
Maximum daily capacity of plant in gallons 18,000,000 18,000,000 17,000,000 18,000,000
Refuse(Municipal Collection)
Tonnage 10,573 10,807 11,798 10,774
Sources: Various City Departments.
Statistics updated for fiscal year 2006, 2007&2008.
174
TABLE 21
Year
2010 2011 2012 2013 2014 2015
6,365 6,350 6,319 6,106 5,532 3,767
8,901 12,289 11,836 12,089 8,959 7,354
37,056 35,799 34,910 35,516 36,768 37,635
4,557 4,884 5,307 4,792 5,165 5,603
1,035 555 589 512 471 791
9,068,000 8,132,000 7,817,000 10,987,000 7,091,000 7,237,000
21,131,000 23,240,000 23,240,000 23,240,000 24,500,000 24,500,000
7,684,000 7,636,000 7,226,000 6,953,000 7,235,000 6,956,000
18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000
10,615 10,660 11,180 10,535 10,311 10,690
175
CITY OF DUBUQUE,IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal-
2006 2007 2008 2009
Public safety
Police
Stations 1 1 1 1
Patrol units 19 19 19 19
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles' 295 307 317 320
Street lights' 1,755 1,802 1,855 1,877
Health and social services
Hospital 2 2 2 2
Number of patient beds 421 405 405 405
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 44 47 47 47
Acreage 845 898 898 898
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 7 8 8 7
Baseball fields 1 1 1 1
Tennis courts 19 19 19 20
Sewer
Sewage system
Miles of sanitary sewer' 263 286 290 295
Miles of storm sewers' 116 120 122 143
Number of treatment plants 1 1 1 1
Number of service connectors 21,443 21,568 21,633 21,347
Water systems
Miles of water mains 313 315 316 317
Number of service connectors 21,257 21,210 21,243 21,347
Number of city owned fire hydrants 2,780 2,798 2,812 2,831
Sources: Various City Departments.
'City GIS System
176
TABLE 22
Year
2010 2011 2012 2013 2014 2015
1 1 1 1 1 1
22 22 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
321 325 328 329 331 333
1,916 1,931 2,081 2,084 2,110 2,161
2 2 2 2 2 2
389 389 389 389 389 373
1 1 1 1 1 1
1 1 1 1 1 1
48 48 51 51 51 53
901 901 1,001 1,001 1,001 974
1 1 1 1 1 1
2 2 2 2 2 2
7 7 7 7 7 11
1 1 1 1 1 1
20 20 20 20 20 20
300 300 304 304 307 320
144 150 155 141 144 145
1 1 1 1 1 1
21,599 21,702 22,393 22,428 22,888 22,928
318 319 320 321 315 318
21,986 22,092 22,161 22,536 22,702 22,787
2,843 2,854 2,863 2,879 2,336 2,346
177
CITY OF DUBUQUE,IOWA Table 23
RETAIL SALES
LAST TEN CALENDAR YEARS
Taxable Number of
Year Retail Sales Businesses
2009 $ 961,287,890 2,026
2010 971,050,048 2,043
2011 1,014,284,468 2,009
2012 1,060,222,499 1,993
2013 1,057,837,212 2,008
2014 1,240,664,593 3,337
2015
Data Sources:
Iowa Department of Revenue
Prior years not available
*Unavailable at report date
178
Compliance Section
June 30, 2015
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
Eid�lly.
CPAs&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 GovernmentAuditing 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 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, 2015, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated February 22, 2016.
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.
The financial statements of Dubuque Convention and Visitors Bureau, a discretely presented component
unit, were not audited in accordance with Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit 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 certain deficiencies in internal control that we
consider to be material weaknesses and significant deficiencies.
www.eidebailly.com
181
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
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 11 of the accompanying schedule of findings and questioned
costs as item 2015-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. We consider the deficiencies described in Part 11 of the accompanying schedule of findings
and questioned costs as items 2015-B and 2015-C to be significant deficiencies.
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. However,we noted certain immaterial instances of non-
compliance which are described in Part IV of the accompanying schedule of findings and questioned
costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2015 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 Responses 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.
��' A,,I,, ,/,G �
Dubuque, Iowa
February 22, 2016
182
Eid�lly.
CPAs&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-4-133 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, 2015. 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 with the requirements of laws, regulations, contracts and
grants applicable to its federal programs.
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-4 uditing 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.
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183
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
Basis for Qualified Opinion on State of Good Repair Grants Program
As described in the accompanying schedule of findings and questioned costs, the City did not comply
with requirements regarding CFDA 20.525 State of Good Repair Grants Program as described in finding
number 2015-001 for Matching, Level of Effort, and Earmarking. Compliance with such requirements is
necessary, in our opinion, for the City to comply with the requirements applicable to that program.
Qualified Opinion on State of Good Repair Grants Program
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the
City complied, in all material respects, with the compliance requirements referred to above that could
have a direct and material effect on the State of Good Repair Grants Program for the year ended June 30,
2015.
Opinion on the Other Major Federal Programs
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 its other major federal
programs identified in the summary of auditor's results section of the accompanying schedule of findings
and questioned costs for the year ended June 30, 2015.
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 of a federal program
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.
184
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 and therefore, material weaknesses and significant
deficiencies may exist that were not identified. We consider the deficiency in internal control over
compliance described in the accompanying schedule of findings and questioned costs as item 2015-001 to
be a material weakness.
The City's response to the internal control over compliance finding identified in our audit is described in
the accompanying schedule of findings and questioned costs. The City's response was not subjected to the
auditing procedures applied in the audit of compliance and, accordingly,we express no opinion on the
response.
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.
,A,,,
SGT
Dubuque, Iowa
February 22, 2016
185
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2015
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Housing and Urban Development:
Direct program:
Community Development Block
Grants/Entitlement Grants 14.218 $ 1,391,484
Community Development Block
Grants/Entitlement Grants 14.218 60,996
1,452,480
Pass-through program from:
Iowa Department of Economic Development:
Community Development Block Grants/
Special Purpose/Insular Areas 14.225 08-DRADM-230 11,400
Community Development Block Grants/
State's Program and Non-Entitlement
Grants in Hawaii 14.228 08-DRH-212 2,235,756
Community Development Block Grants/
State's Program and Non-Entitlement
Grants in Hawaii 14.228 08-DRIFWP-203 187,330
Community Development Block Grants/
State's Program and Non-Entitlement
Grants in Hawaii 14.228 08-NSP-019 38,334
2,461,420
Direct program:
Continuum of Care Program 14.267 75,103
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation 14.856 71,512
Section 8 Housing Choice Vouchers 14.871 4,196,739
Section 8 Housing Choice Vouchers 14.871 492,139
Section 8 Housing Choice Vouchers 14.871 31,470
Section 8 Housing Choice Vouchers 14.871 31,205
4,751,553
Total U.S. Department of Housing and Urban
Development 8,823,468
U.S. Department of the Interior:
Pass-through program from:
Iowa Department of Natural Resources:
Outdoor Recreation Acquisition,
Development and Planning 15.916 19-01291 33,900
186
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2015
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Justice:
Pass-through program from:
Iowa Department of Justice:
Violence Against Women Formula Grants 16.588 VW-15-42B-CJ $ 3,822
Direct program:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 11,015
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 7,729
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 2,796
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 2,700
Pass-through program from:
Dubuque County Sheriffs Office:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 12-JAG-76310 29,027
53,267
Total U.S. Department of Justice 57,089
U.S. Department of Transportation:
Direct program:
Airport Improvement Program 20.106 730,063
Airport Improvement Program 20.106 299,103
Airport Improvement Program 20.106 215,942
Airport Improvement Program 20.106 111,825
Airport Improvement Program 20.106 35,480
Airport Improvement Program 20.106 13,039
1,405,452
Pass-through program from:
Iowa Department of Transportation:
Highway Planning and Construction 20.205 HDP-2100-(679)-71-31 1,822,877
Highway Planning and Construction 20.205 STP-U-2100(634)--70-31 1,190,052
Highway Planning and Construction 20.205 STP-A-PA-27(4)86-31 364,642
Highway Planning and Construction 20.205 TCSP-052-2(129)--95-31 96,025
Highway Planning and Construction 20.205 HDP-2100-(661)-71-31 71,819
Highway Planning and Construction 20.205 HDP-2100-(655)-71-31 37,053
Highway Planning and Construction 20.205 BROS-2100(659)--8J-31 33,487
Highway Planning and Construction 20.205 UYC-14-001 5,036
3,620,991
187
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2015
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Transportation: (continued)
Federal Transit Cluster:
Direct program:
Federal Transit- Capital Investment
Grants 20.500 $ 12,177
Federal Transit-Formula Grants 20.507 902,532
Federal Transit-Formula Grants 20.507 262,514
Federal Transit-Formula Grants 20.507 87,104
Pass-through program from:
Iowa Department of Transportation:
Federal Transit-Formula Grants 20.507 IA-95-XO14 Shopping 78,283
Federal Transit-Formula Grants 20.507 IA-95-X014 Night Rider 54,022
Federal Transit-Formula Grants 20.507 IA-95-XO14 FF15 46,824
1,431,279
Direct program:
State of Good Repair Grants Program 20.525 5,122,930
Total Federal Transit Cluster 6,566,386
Pass-through program from:
Iowa Department of Transportation:
Formula Grants for Rural Areas 20.509 ICB-CY14 199,196
Enhanced Mobility of Seniors and
Individuals with Disabilities 20.513 IA-16-X005-210-14 46,273
Iowa Department of Public Safety:
State and Community Highway Safety 20.600 PAP 15-402-MOOP 10,388
State and Community Highway Safety 20.600 PAP 14-402-MOOP 6,332
16,720
Total U.S. Department of Transportation 11,855,018
Environmental Protection Agency:
Direct program:
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 100,584
188
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2015
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Health and Human Services:
Pass-through program from:
Dubuque County Health Department:
Hospital Preparedness Program(HPP)
and Public Health Emergency
Preparedness (PHEP) Aligned
Cooperative Agreements 93.074 5885BT22 $ 1,924
Iowa Department of Health and Human Services:
Substance Abuse and Mental Health Services
Projects of Regional and National
Significance 93.243 5 885CP 12 1,050
Total U.S. Department of Health and Human Services 2,974
Corporation for National and Community Service:
Pass-through program from:
Iowa Commission on Volunteers:
AmeriCorps 94.006 14-AC-14 161,384
AmeriCorps 94.006 13-AC-13 43,509
Total Corporation for National and Community Service 204,893
U.S. Department of Homeland Security:
Direct Program:
Assistance to Firefighters Grant 97.044 19,067
Total $ 21,096,993
189
City of Dubuque
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2015
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 for governmental funds and the full
accrual basis of accounting for the proprietary funds. 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.
Note 2 - Significant Accounting Policies
Governmental and proprietary 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 in the governmental fund types and on the full accrual basis —
when expenditures are incurred in the proprietary fund types. The City's summary of significant accounting
policies is presented in Note 1 in the City's basic financial statements.
Note 3 - Subrecipients
Of the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal awards to
subrecipients as follows:
Federal Amount
CFDA Provided to
Program Title Number Subrecipients
Community Development Block Grants/Entitlement Grants 14.218 $ 92,666
190
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified Yes
Significant deficiencies identified not
considered to be material weaknesses Yes
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weaknesses identified Yes
Significant deficiencies identified not
considered to be material weaknesses None reported
Type of auditor's report issued on compliance for major programs: Qualified
Any audit findings disclosed that are required to be reported in
accordance with OMB Circular A-133 §.510(a): Yes
Identification of major programs:
Name of Federal Program CFDA Number
Community Development Block Grants/ 14.228
State's Program and Non-Entitlement
Grants in Hawaii
Highway Planning and Construction 20.205
Federal Transit Cluster:
Federal Transit-Capital Investment Grants 20.500
Federal Transit-Formula Grants 20.507
State of Good Repair Grant Program 20.525
Dollar threshold used to distinguish between type A
and type B programs: $632,910
Auditee qualified as low-risk auditee? No
191
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part II: Findings Related to the Financial Statements:
MATERIAL WEAKNESS
2015-A Material Audit Adjustments
Criteria—A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles and the requirements of OMB Circular A-133,Audits of States,
Local Governments, and Non-Profit Organizations.
Condition—During the course of our engagement, we proposed material audit adjustments to
intergovernmental receivables, capital assets, and schedule of expenditures of federal awards 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. This significantly limits the City's review procedures.
Effect—The effect of this condition was financial data not in accordance with generally accepted
accounting principles and the requirements of OMB Circular A-133,Audits of States, Local
Governments, and Non-Profit Organizations.
Recommendation—We recommend that finance staff continue to receive relevant training and that
additional review procedures be implemented in preparing the financial statements.
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.
Additional checks have been put in place to monitor the situations identified in this audit.
SIGNIFICANT DEFICIENCIES
2015-B Grant Reconciliation Process
Criteria—A properly designed system of internal control over grant accounting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition—During the course of our engagement, we noted several instances in which the City did
not reconcile grant revenues with grant expenditures on the accrual basis.
Cause—Control activities relating to grant recording and processing vary between the different
departments of the City. Furthermore, monitoring of grant revenues and expenses is not always
performed by personnel of the finance department.
Effect—The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
192
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part II: Findings Related to the Financial Statements: (continued)
Recommendation—We recommend that finance designate a staff member to monitor the grant
reconciliation process for all of the grants of the City. We also recommend staff follow City policy
to perform monthly grant reimbursement requests if a grant is over$100,000.
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.
Additional finance staff will be assigned for the review and auditing of grant documentation. The
City's grant policy directs staff to request monthly draws if reimbursements due are $100,000 or
more.
2015-C Tax Increment Financing Reconciliation Process
Criteria—A properly designed system of internal control over Tax Increment Financing (TIF)
allows entities to properly segregate duties surrounding the preparation of TIF information.
Condition—During the course of our engagement, we noted the Budget Director prepares, reviews,
and maintains all Tax Increment Financing duties.
Cause—Complexities surrounding the nature of TIF have caused most of the duties to be assigned
to one individual.
Effect—The effect of this condition was controls were not properly segregated surrounding the
preparation of the TIF forms certified to the County.
Recommendation—The Finance Department should implement additional controls over the
management of its approximately $140,000,000 in TIF indebtedness. Such controls should include
increasing supporting documentation for the amounts certified, formalizing a review and approval
procedure, comparing future TIF needs with TIF abatement schedules and rebate agreements, and
comparing future needs with cash on hand for each TIF district.
Response —The Finance Department and Economic Development Department will evaluate
opportunities to aid in the preparation and review of TIF reports for both the State and County.
Finance will receive the relevant training, and management will review documents used for the
preparation of TIF reports.
193
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part III: Findings and Questioned Costs for Federal Awards:
MATERIAL WEAKNESS AND NONCOMPLIANCE:
2015-001 U.S. Department of Transportation
CFDA#20.525
State of Good Repair Grants Program
Matching, Level of Effort, Earmarking
Material Weakness in Internal Control and Noncompliance
Criteria—A properly designed system of internal control over compliance with the requirements of
federal programs allows entities to meet those requirements set forth by the federal government in
administering federal grants. 49 CFR Part 18.24 requires that entities expending federal awards
follow applicable matching guidance provided by the federal agency.
Condition—The City did not match the appropriate amount of funds required by the State of Good
Repairs Grant.
Cause—It appears the cause was due to using an incorrect formula during submission of grant
expenses for reimbursement.
Effect—The City did not comply with applicable matching criteria approved by the Department of
Transportation and received excess federal funding. The City was required to return excess funds to
the Department of Transportation.
Recommendation—The City should put procedures in place to insure that they are following all
requirements of federal grants related to the provisions of the 49 CFR Part 18.24.
Response—During the audit process the City became aware of a formula error that resulted in the
City requesting $467,315 of excess grant funds. The excess funds have been returned to the U.S.
Department of Transportation. Review procedures have been implemented to prevent this error in
the future.
194
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part IV: Other Findings Related to Required Statutory Reporting:
2015-IA-A Certified Budget—Disbursements during the year ended June 30, 2015 exceeded the amount
budgeted in the Community and Economic Development functions and the general government
functions. Chapter 384.20 of the Code of Iowa states, in part, "Public monies may not be expended
or encumbered except under an annual or continuing appropriation."
Recommendation—The budget should have been amended in accordance with Chapter 384.18 of
the Code of Iowa before disbursements were allowed to exceed the budget.
Response —The budget will be amended in the future, if applicable.
2015-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.
2015-IA-C Travel Expense—No expenditures of City money for travel expenses of spouses of City officials
or employees were noted.
2015-IA-D Business Transactions—Business transactions between the City and City officials or employees
are detailed as follows:
Name, Title, and Transaction
Business Connection Description Amount
John Klostermann, employee, brother-in-law
is owner of Drive Line of Dubuque Services $ 11,032
Dave Castro, employee, daughter is Services 763
owner of East Mill Bakeshop &
Catering
Eileen Trimble, employee, brother and Services 5,960
sister-in-law are owners of Jet Business
Solutions
John Liphardt, employee, brother-in-law Services 199,518
is owner of Fred Jackson Tuckpointing
Jane Smith, employee, brother-in-law Services 14,900
is owner of Felderman Business Associates
Janna Beau, employee, sister and brother- Services 3,325
in-law are owners of Kramer Pest Control
John Hefel, employee, spouse is owner of Services 1,801
A Frame of Mind Framing & Gallery
195
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
Name, Title, and Transaction
Business Connection Description Amount
Michael Burds, employee, is owner of Services $ 775
Michael W Burds
Tom Pregler, employee, father is Services 8,099
owner of Overhead Door Company
Kevin Schmitt, employee, mother is Services 6,599
owner of Poor Man's Caf6
Mike Kerth, employee, father-in-law Services 31,007
is owner of Steve's Ace Hardware
In accordance with Chapter 362.5(3)(j)of the Code of Iowa, the transactions with East Mill
Bakeshop & Catering and Michael W Burds do not appear to represent conflicts of interest since
total transactions with this individual were less than$1,500 during the fiscal year. The transactions
with Fred Jackson Tuckpointing Co., Poor Man's Catering, and Jet Business Solutions do not
appear to be a conflict of interest since they were entered into through competitive bidding in
accordance with Chapter 362.5(3)(d) of the Code of Iowa. The transactions with Drive Line of
Dubuque, Felderman Business Associates, A Frame of Mind Framing & Gallery, Overhead Door
Company, Kramer Pest Control, and Steve's Ace Hardware may represent a conflict of interest.
Recommendation—We recommend the City review the transactions with Drive Line of Dubuque,
Felderman Business Associates, A Frame of Mind Framing & Gallery, Overhead Door Company,
Kramer Pest Control, and Steve's Ace Hardware with legal counsel.
Response—The transactions with Drive Line of Dubuque, Felderman Business Associates, A
Frame of Mind Framing & Gallery, Overhead Door Company, Kramer Pest Control, and Steve's
Ace Hardware are being reviewed with legal counsel. Due to the changing dynamics of our
workforce and vendors, related party vendors are not easily identified until after the transaction has
happened. The City monitors and self-reports incidents of related party transactions. The City has
implemented a centralized list of known related party vendors for department review before
purchasing.
2015-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.
2015-IA-F Council Minutes—No transactions were found that we believe should have been approved in the
Council minutes but were not.
2015-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.
196
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
2015-IA-H Revenue Debt—The Sewage Disposal Works' revenue capital loan notes include a requirement for
the utility to produce net revenues of at least 110% of the current year debt service requirement.
The Sewage Disposal Works did not meet this requirement in fiscal year 2015.
No instances of non-compliance with the provisions of the Water Utility revenue debt resolutions
were noted.
No instances of non-compliance with the provisions of the Stormwater Utility revenue debt
resolutions were noted.
Recommendation—The City should review the bond covenant requirements and contact their
bond consultants.
Response —Although sewer rates were increased by 5%in fiscal year 2015, the revenue was less
than projected due to lower than anticipated actual usage. Sewer rates were increased an additional
5%for fiscal year 2015. Sewer rates will be increased a projected 10%in fiscal year 2016. Rates
will increase each subsequent fiscal year until bond covenant is met.
The City's bond consultants have been informed of the noncompliance and appropriate action will
be taken.
2015-IA-I Annual Urban Renewal Report—The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1.
197
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2015
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
2015-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 2014 that were based on incorrect calculations or did not
represent TIF debt.
Recommendation—The City should have certified the needed corrections in the fall 2015. To
minimize the likelihood of future errors, the City should implement additional controls over the
management of its approximately $140,000,000 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 December 1, 2015. The TIF form is prepared from
source documentation including general ledger reports, TIF development agreements and TIF debt
amortization schedules. The City will continue to monitor source documents to prevent future
errors.
2015-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 45513.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
2015-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.
198
City of Dubuque
Corrective Action Plan
Year Ended June 30, 2015
Contact Person, Anticipated
Comment Title, Date of
Number Comment Title Corrective Action Plan Phone Number Completion
Findings Related to the Financial Statements:
2015-A Material Audit The corrective action plan Jean Nachtman, Not determined at
Adjustments was documented in our Finance Director this date.
response to the auditor's 563-589-4133
comment. See the Schedule
of Findings and Questioned
Costs.
2015-B Grant The corrective action plan Jean Nachtman, Not determined at
Reconciliation was documented in our Finance Director this date.
Process response to the auditor's 563-589-4133
comment. See the Schedule
of Findings and Questioned
Costs.
2015-C Tax Increment The corrective action plan Jean Nachtman, Not determined at
Financing was documented in our Finance Director this date.
Reconciliation response to the auditor's 563-589-4133
Process comment. See the Schedule
of Findings and Questioned
Costs.
Findings Related to the Federal Programs:
2015-001 Matching, The corrective action plan Jean Nachtman, Not determined at
Level of Effort, was documented in our Finance Director this date.
Earmarking response to the auditor's 563-589-4133
comment. See the Schedule
of Findings and Questioned
Costs.
199
City of Dubuque
Summary Schedule of Prior Federal Audit Findings
Year Ended June 30, 2015
No findings reported in the prior year.
200
EideBaffl
v
CPAs&BUSINESS ADVISORS
February 22, 2016
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, 2015. 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 15, 2015.
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. During the year ended June 30, 2015,the City adopted GASB Statement No. 68,Accounting
and Financial Reporting for Pensions and GASB Statement No. 71,Pension Transition for Contributions
Made Subsequent to the Measurement Date.Accordingly,the accounting change has been retrospectively 1
applied to the financial statements beginning July 1, 2014.No other significant new accounting policies
were adopted, and the application of other existing policies was not changed during the year ended
June 30, 2015. 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.com 1
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 T 563.556.1790 1 F 563.557.7842 1 EOE
Management's estimate of other posternployment 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.
Management's estimate of the net pension liability,pension related deferred outflows of
resources and deferred inflows of resources, and pension expense are based on plan level
actuarial reports, allocated to the City using annual employer contributions. We evaluated the key
factors and assumptions used to develop the pension related balances in detennining that they are
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 misstatements, some of
which were material to the City's financial statements,were detected as a result of audit procedures and
were corrected by management:
Equity Increase(Decrease)
Governmental/
Fund Business-type
Statements Activities
General
To decrease intergovernmental receivable for excess accrual
of local option sales tax $ (367,641) $ (367,641)
Airport Construction
To increase grant accounts receivable and unavailable revenues - 239,178
Sales Tax Construction
To decrease intergovernmental receivable for excess accrual
of local option sales tax (147,056) (147,056)
Street Construction
To decrease intergovernmental receivable for excess accrual j
of local option sales tax (220,584) (220,584)
I
2
Equity Increase(Decrease)
Governmental/
Fund Business-type
Statements Activities
Sewage Disposal Works
To transfer green alley assets from Sewage Disposal Works to
Stonnwater(material misstatement) $ (3,762,869) $
To decrease construction in progress for bond issuance costs and
and prior year accounts payable(material misstatement) (909,105) (909,105)
To increase account receivable for error in workpaper 138,950 138,950
Water Utility
To decrease construction in progress for bond issuance costs (179,399) (179,399)
To correct the allocation of bond premium between Water
Utility and Governmental Activities 120,381 120,381
To increase account receivable for error in workpaper 114,448 114,448
Stonnwater Fund
To transfer green alley assets from Sewage Disposal Works to
Stormwater(material misstatement) 3,762,869 -
To increase intergovernmental receivable and revenue for
sales tax increment revenue (material misstatement) 1,013,273 1,013,273
To increase account receivable for error in workpaper 53,939 53,939
Transit System
To decrease construction in progress for bond issuance costs (71,108) (71,108)
Refuse Collection
To increase account receivable for error in workpaper 47,761 47,761
Governmental Activities
To correct the allocation of bond premium between Water
Utility and Governmental Activities (120,381) (120,381)
Disagreements with Management
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
I
We have requested certain representations from management that are included in the management
representation letter dated February 22, 2016.
3
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 detennination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge,there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards,with management each year prior to retention as the City's auditors. However,these
discussions occurred in the normal course of our professional relationship,and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the management's discussion and analysis,the budgetary
comparison schedule,the schedule of the City's proportionate share of net pension liability,the schedule
of the City's pension contributions and schedule of funding progress for the retiree benefit plan, which are
required supplementary information (RSI)that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries,the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining nonmajor fund financial statements and the schedule of
expenditures of federal awards,which accompany the financial statements but are not RSI. With respect
to this supplementary infonnation, 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 infonnation is appropriate and complete in relation to our audit
of the financial statements. We compared and reconciled the supplementary infonnation to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on introductory and statistical sections, which accompany the financial
statements but are not RSI. We did not audit or perforin other procedures on this other information and
we do not express an opinion or provide any assurance on it.
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
G
Dubuque, Iowa
4
THE CITY OF Dubuque
UB E
DM�II�l
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jean Nachtman, Finance Director
SUBJECT: Responses to Auditor's Findings
DATE: February 22, 2016
INTRODUCTION
The Auditor's Communication with Those Charged with Governance letter was issued
by Eide Bailly LLP on February 22, 2016 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 2015 details specific findings. Pages 192-198 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 February 22, 2016
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.
2015-A Material Audit Adjustments (Page 192 in CAFR)
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. Additional checks have been put in place to monitor the
situations identified in this audit.
2015-B Grant Reconciliation Process (Page 192 in CAFR)
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.
Additional finance staff will be assigned for the review and auditing of grant
documentation. The City's grant policy directs staff to request monthly draws if
reimbursements due are $100,000 or more.
2105-C Tax Increment Financing Reconciliation Process (Page 193 in CAFR)
The Finance Department and Economic Development will evaluate opportunities to
aid in the preparation and review of TIF reports for both the State and County.
Finance will receive the relevant training, and management will review documents
used for the preparation of TIF reports.
2015-001 Material Weakness and Noncompliance (Page 194 in CAFR)
During the audit process the City became aware of a formula error that resulted in the
City requesting $467,315 of excess grant funds. The excess funds have been returned
to the US Department of Transportation. Review procedures have been implemented to
prevent this error in the future.
2015-IA-A Certified Budget (Page 195 in CAFR)
The budget will be amended in the future, if applicable.
2015-IA-D Business Transactions (Page 195 in CAFR)
The transactions with Drive Line of Dubuque, Felderman Business Associates, A Frame
of Mind Framing & Gallery, Overhead Door Company, Kramer Pest Control, and Steve's
Ace Hardware are being reviewed with legal counsel. Due to the changing dynamics of
our workforce and vendors, related party vendors are not easily identified until after the
transaction has happened. The City monitors and self-reports incidents of related party
transactions. The City has implement a centralized list of known related party vendors
for department review before purchasing.
2015-IA-H Revenue Debt (Page 197 in CAFR)
Although sewer rates were increased by 5% in fiscal year 2015, the revenue was less
than projected due to lower than anticipated actual usage. Sewer rates were
increased an additional 5% for fiscal year 2015. Sewer rates will be increased a
projected 10% in fiscal year 2016. Rates will increase each subsequent fiscal year
until bond covenant is met.
The City's bond consultants have been informed of the noncompliance and
appropriate action will be taken.
2015-IA-J Tax Increment Financing (Page 198 in CAFR)
The City identified and corrected the misreported debt amounts on City TIF Form 3 of
the County TIF Certification Form that was filed December 1 , 2015. The TIF form is
prepared from source documentation including general ledger reports, TIF development
agreements and TIF debt amortization schedules. The City will continue to monitor
source documents to prevent future errors.
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