HomeMy WebLinkAbout2022-12-19 F01 Presentation_FY2022 Audit ReportAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 19, 2022
AGENDA ITEM:Independent Auditor’s Final Report for the fiscal year ending June 30, 2022
FORMAT:Presentation
SYNOPSIS INCLUDING PRO & CON: City staff met with representatives of Denman &
Company on 12/13/2022 to review the draft audit report. A representative of
Denman & Company, LLP will take part in the Council meeting to present the
audit.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION:
ATTACHMENTS: I. FY2022 Audit Report
PREPARED BY:Becky Schuett
REVIEWED BY:
F1
Honorable Mayor and
Members of the City Council
Waukee, Iowa
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Waukee (the City) for the year ended June 30,
2022. Professional standards require that we provide you with information about our responsibilities under
auditing standards generally accepted in the United States of America and Government Auditing Standards, as
well as certain information related to the planned scope and timing of our audit. We have communicated such
information in our presentation about planning matters on July 14, 2022. Professional standards also require that
we communicate to you the following information related to our audit.
Significant Audit Matters
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 Waukee are described in Note 1 to the financial statements. During the
year ended June 30, 2022, the City implemented Governmental Accounting Standards Board Statements No. 87,
Leases, which required reporting of certain lease assets and liabilities which were previously not recognized. No
other new accounting policies were adopted and the application of existing policies was not changed during the
year. 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 financial statements were:
Management's estimate of depreciation expense is based on the City's estimated useful life of assets using the
straight line method.
Management's estimate of other post employment benefits (OPEB) obligation and OPEB related deferred
inflows and outflows of resources is based upon actuarial assumptions that represent the anticipated future
experience of the OPEB plan.
Management's estimate of net pension liability and pension related deferred inflows and outflows of resources
is based upon actuarial assumptions and the City’s proportionate share of the Plan’s total pension liability.
We evaluated the key factors and assumptions used to develop the depreciation, OPEB obligation and net
pension liability estimates in determining that they are reasonable in relation to the financial statements taken
as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of long-term liabilities in Note 4 to the financial statements and the pension plan disclosure
in Note 5 to the financial statements.
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. The
attached schedules summarize uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole. Corrected misstatements identified during the audit were related to the conversion from the cash
basis to the accrual basis of accounting. These adjustments were prepared from information provided by City
personnel and had a significant effect on the City's financial statements.
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
We have requested certain representations from management that are included in the management representation
letter dated December 2, 2022.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Matters
We applied certain limited procedures to the 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 other supplementary information which accompanies the financial statements but
are not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information complies
with accounting principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the other supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the use of the City of Waukee Council and management, and is not
intended to be, and should not be, used by anyone other than these specified parties.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
December 2, 2022
Governmental Unit:
Opinion Unit:
Total Assets
Total
Liabilities
Working
Cap.
Fund
Balance/Net
Position Revenues Expen.
Change in
Fund
Balance/
Net
Position
Net difference between
hotel/motel tax received in
August 2021 and 2022
recorded to the wrong fiscal
year per State's records.
F - (20,714) - (20,714)
Total - - - - (20,714) - (20,714)
- - - - (20,714) - (20,714)
- - - - (20,714) - (20,714)
22,348,091 13,119,305 9,228,786 18,451,073 16,550,917 1,900,156
0.00% 0.00% 0.00% 0.00% -0.11% 0.00% -1.09%
0.00% 0.00% 0.00% 0.00% -0.11% 0.00% -1.09%
City of Waukee Financial Statement Date:6/30/2022
General Fund A Listing of Known Audit Differences Over: $ 11,630
Net unadjusted AD—current year (iron curtain method)
Description (Nature) of
Audit Difference (AD)
Factual (F),
Judgmental (J),
or Projected (P) Cause
Financial Statement Effect—Amount of Over- (Under-) statement of:
Timing of receipts
Less audit adjustments subsequently booked
Effect of unadjusted AD—prior years
Combined current year and prior year AD (rollover method)
Financial statement caption totals
Current year AD as % of F/S captions (iron curtain method)
Current and prior year AD as % of F/S captions (rollover method)
City of Waukee, Iowa
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2022
TABLE OF CONTENTS
Page
OFFICIALS 3
INDEPENDENT AUDITOR'S REPORT 4-6
MANAGEMENT'S DISCUSSION AND ANALYSIS 7-14
BASIC FINANCIAL STATEMENTS 15
Government-wide financial statements
Statement of net position 16-17
Statement of activities 18-19
Governmental fund financial statements
Balance sheet 20
Reconciliation of the balance sheet—governmental funds to the statement of net position 21
Statement of revenues, expenditures and changes in fund balances 22
Reconciliation of the statement of revenues, expenditures and changes in
fund balances—governmental funds to the statement of activities 23
Proprietary fund financial statements
Statement of net position 24
Statement of revenues, expenses and changes in fund net position 25
Statement of cash flows 26-27
Notes to financial statements 28-52
REQUIRED SUPPLEMENTARY INFORMATION 53
Schedule of changes in the City’s total OPEB liability, related ratios and notes 54
Budgetary comparison schedule of revenues, expenditures/expenses and changes in
balances—budget and actual—governmental funds and proprietary funds 55-56
Note to required supplementary information—budgetary reporting 57
Schedule of the City’s proportionate share of the net pension liability 58
Schedule of City contributions 59-60
Notes to required supplementary information—pension liability 61
SUPPLEMENTARY INFORMATION 62
Nonmajor Governmental Funds
Combining balance sheet 63
Combining schedule of revenues, expenditures and changes in fund balances 64
Nonmajor Proprietary Funds
Combining statement of net position 65
Combining statement of revenues, expenses and changes in fund net position 66
Combining statement of cash flows 67-68
Schedule of revenues by source and expenditures by function—all governmental funds 69-70
Schedule of expenditures of federal awards 71
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 72-73
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED
BY THE UNIFORM GUIDANCE 74-76
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 77-80
-3-
City of Waukee, Iowa
OFFICIALS
(Before January 2022)
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
Courtney Clarke, Mayor January 2024
Chris Crone, Council Member January 2024
Ben Sinclair, Council Member January 2022
Larry Lyon, Council Member January 2024
Anna Bergman Pierce, Council Member January 2022
Charlie Bottenberg, Council Member January 2022
CITY ADMINISTRATOR
Brad Deets Indefinite
CITY CLERK
Rebecca D. Schuett Indefinite
DIRECTOR OF FINANCE
Linda Burkhart Indefinite
CITY ATTORNEY
Steven P. Brick January 2022
(After January 2022)
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
Courtney Clarke, Mayor January 2024
Chris Crone, Council Member January 2024
Ben Sinclair, Council Member January 2026
Larry Lyon, Council Member January 2024
Anna Bergman Pierce, Council Member January 2026
Charlie Bottenberg, Council Member January 2026
CITY ADMINISTRATOR
Brad Deets Indefinite
CITY CLERK
Rebecca D. Schuett Indefinite
DIRECTOR OF FINANCE
Linda Burkhart Indefinite
CITY ATTORNEY
Steven P. Brick January 2023
-4-
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and
Members of the City Council
Waukee, Iowa
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business type activities, each
major fund, and the aggregate remaining fund information of City of Waukee, Iowa (the City), as of and for the year ended
June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financia l
statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, business type activities, each major fund, and the aggregate remaining fund
information of City of Waukee, Iowa, as of June 30, 2022, and the respective changes in financial position, and , where
applicable, cash flows thereof for the year then ended in accordance with accounting princip les generally accepted in the
United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are req uired to be independent of City
of Waukee, Iowa and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Emphasis of Matter
As discussed in Note 13 to the financial statements, City of Waukee, Iowa adopted new accounting guidance related to
Governmental Accounting Standards Board Statement No 87, Leases. Our opinions are not modified with respect to this
matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about City of Waukee, Iowa’s ability to continue as a going
concern for twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
-5-
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a m aterial misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there i s a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,
we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to desig n audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of
Waukee, Iowa’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about City of Waukee, Iowa’s ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis, the budgetary comparison information, the schedule of changes in the City’s total OPEB liability, related ratios
and notes, the schedule of the City’s proportionate share of the net position liability, and the schedule of City contributions
on pages 7 through 14 and 54 through 61 be presented to supplement the basic financial statements. Such information
is the responsibility of management and, 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, ec onomic, 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.
-6-
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of Waukee, Iowa’s basic financial statements. We previously audited, in accordance with the standards referred to
in the third paragraph of this report, the financia l statements for the nine years ended June 30, 2021 (which are not
presented herein) and expressed unmodified opinions on those financial statements. The supplementary information
included in pages 63 – 71, including the schedule of expenditures of federa l awards required by Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, is presented for purposes of additional analysis and is not a required part of the basi c financial statements.
The supplementary information is the responsibility of management and w as derived from and relates 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
supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2022, on our
consideration of the City of Waukee, Iowa’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agree ments and other matters. The purpose of that report is
solely 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 effectiveness of the City ’s 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 of Waukee, Iowa’s internal control over financial reporting and compliance.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
December 2, 2022
-7-
_____________________________________________________________________________________________________________________________
MANAGEMENT’S DISCUSSION AND ANALYSIS
_____________________________________________________________________________________________________________________________
The City of Waukee provides this Management’s Discussion and Analysis of its financial statements. This narrative overview
and analysis of the financial activities is for the fiscal year ended June 30, 2022. We encourage readers to consider this
information in conjunction with the City’s financial statements, which follow.
2022 FINANCIAL HIGHLIGHTS
• Revenues of the City’s Governmental Funds increased 26.4 %, or $ 9,572,295, from fiscal 2021 to fiscal 2022. Property
and other City Taxes increased $ 2,649,945, Tax Increment Financing increased $ 1,575,098, Licenses and Permits increased
$ 1,457,210, Intergovernmental increased $ 2,630,717, Charges for Services increased $ 74,312, Use of Money/Property
increased $ 176,472 and Miscellaneous increased $ 1,008,541.
• Program expenditures of the City’s Governmental Funds increased 12.7 %, or $ 7,747,448 in fiscal 2022 from fiscal
2021. Public Safety expenses increased $ 1,125,673, Health and Social Services decreased $ 44,000, Community and Economic
Development increased $ 1,191,486, Culture and Recreation increased $ 722,033, Public Works increased $ 960,624, General
Government increased $ 210,057, Debt Service increased $ 2,575,914 and Capital Projects increased $ 1,005,661.
• The City has a net position of $ 296,094,562 on June 30, 2022 as compared to $ 257,699,211 on June 30, 2021. Of this
amount, the net position of the Governmental Activities was $ 193,093,681 and the net position of the Business Type Activities
was $ 103,000,881.
USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements and other information, as follows:
Management’s Discussion and Analysis introduces the basic financial statements and provides an analytical overview of the
City’s financial activities.
Government-wide Financial Statements consist of a Statement of Net Position and a Statement of Activities. These provide
information about the activities of the City of Waukee as a whole and present an overall view of the City’s fin ances.
The Fund Financial Statements tell how governmental services were financed in the short term as well as what remains for
future spending. Fund financial statements report the City’s operations in more detail than the government -wide financial
statements by providing information about the most significant funds.
Notes to Financial Statements provide additional information essential to a full understanding of the data provided in the ba sic
financial statements.
Required Supplementary Information further explains and supports the financial statements with a comparison of the
City’s budget for the year, the City’s proportionate share of net pension liability and related contributions, as well as pre senting
the Schedule of Changes in the City’s Total OPEB Liability, Related Ratios and Notes.
Supplementary Information provides detailed information about the non -major Governmental and Proprietary Funds, and
Schedule of Revenues by Source and Expenditures by Function.
-8-
REPORTING THE CITY’S FINANCIAL ACTIVITIES
Government-wide Financial Statements
One of the most important questions asked about the City’s finances is, “Is the City as a whole better or worse off as a resu lt of
the year’s activities?” The Statement of Net Position and the Statement of Activities report information which helps to answe r
this question. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of res ources
using the accrual basis of accounting and the economic resources measurement focus, which is similar to the accounting use d
by most private sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when
cash is received or paid.
The Statement of Net Position presents all of the City’s assets, deferred outflows of resources, liab ilities, and deferred inflows
of resources with the difference reported as “net position”. Over time, increases or decreases in the City’s net position ma y
serve as a useful indicator of whether the financial position of the City is improving or deteriora ting.
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 change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fis cal
years.
The Statement of Net Position and the Statement of Activities report two kinds of activities:
• Governmental activities include public safety, public works, health and social services, culture and recreation,
community and economic development, general government, debt service and capital projects. Property tax, state and federal
grants, and license and permit fees finance most of these activities.
• Business type activities include the water, sewer, gas and storm water utilities, the municipal golf course and the
City’s sanitation department. These activities are financed primarily by user charge s.
Fund Financial Statements
The City has two kinds of funds:
(1) Governmental funds account for most of the City’s basic services. These focus on how money flows into and out of those
funds and the balances at year-end that are available for spending. Governmental funds include: 1) the General Fund, 2) the
Special Revenue Funds, such as Tax Increment Financing Revenues, and Local Options Sales Tax, 3) the Debt Service Fund and
4) the Capital Projects Fund. These funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cas h.
The governmental fund financial statements provide a detailed, short -term view of the City’s general governmental operations
and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial
resources that can be spent in the near future to finance the City’s programs.
The required financial statements for governmental funds include a Balance Sheet and a Statement of Revenues, Expenditures
and Changes in Fund Balances.
2) Proprietary funds account for the City’s Enterprise and Internal Service Funds. These funds report servic es for which the
City charges customers for the service it provides. Proprietary funds are reported in the same way all activities are report ed
in the Statement of Net Position and the Statement of Activities. The major difference between the proprietary funds and the
business type activities included in the government-wide statements is the detail and additional information, such as cash
flows, provided in the proprietary fund statements. The Enterprise Funds include the Water, Sewer, Gas, Storm Water, Golf
Course and Sanitation Funds. The City is responsible for ensuring the assets reported in these funds are used only for their
intended purposes and by those to whom the assets belong.
The financial statements required for proprietary funds include a Statement of Net Position, a Statement of Revenues,
Expenses and Changes in Fund Net Position and a Statement of Cash Flows.
Reconciliations of the government-wide statements to the fund financial statements follow the fund financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
-9-
As noted earlier, net position may serve over time as a useful indicator of financial position. The analysis that follows
focuses on the changes in the net assets for governmental and business type activities.
Net Position at Year End
Governmental Activities Business Type Activities Total
2022 2021 2022 2021 2022 2021
Current and Other Assets $ 85,745,134 $ 86,141,818 $ 37,963,631 $ 32,150,209 $ 123,708,765 $118,292,027
Non-Current Assets 4,186,506 - 471,999 - 4,658,505 -
Capital Assets 253,036,836 218,226,580 89,918,543 82,873,285 342,955,379 301,099,865
Total Assets 342,968,476 304,368,398 128,354,173 115,023,494 471,322,649 419,391,892
Deferred Outflows of Resources 1,667,777 1,872,768 303,330 336,157 1,971,107 2,208,925
Current Liabilities 14,329,240 19,186,059 4,040,082 3,708,364 18,369,322 22,894,423
Non-Current Liabilities 103,172,323 91,864,026 20,607,476 22,706,336 123,779,799 114,570,362
Total Liabilities 117,501,563 111,050,085 24,647,558 26,414,700 142,149,121 137,464,785
Deferred Inflows of Resources 34,041,009 26,490,413 1,009,064 46,408 35,050,073 26,536,821
Net Position:
Net investment in Capital Assets 166,312,940 140,345,707 73,724,828 65,578,280 240,037,768 205,923,987
Restricted 19,910,593 24,142,119 1,053,912 1,051,493 20,964,505 25,193,612
Unrestricted 6,870,148 4,212,842 28,222,141 22,268,770 35,092,289 26,481,612
Total Net Position $ 193,093,681 $ 168,700,668 $ 103,000,881 $ 88,898,543 $ 296,094,562 $ 257,599,211
Net position of governmental activities increased $ 24,393,013, or 14.46%, over fiscal year 2021. Net position of business
type activities increased $ 14,002,338, or 15.73%, over fiscal year 2021. The largest portion of the City’s net p osition is the
investment in capital assets (e.g., land, infrastructure, buildings and equipment), less the related debt, excluding unspent debt
proceeds. 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 finance day-to-day operations without
constraints established by debt covenants, legislation or other legal requirements, is $ 35,092,289 at the end of this year.
-10-
Changes in Net Position for the Year Ended June 30, 2022
Governmental Activities Business Type Activities Total
2022 2021 2022 2021 2022 2021
Revenues:
Property Tax Levied and Other City Tax $ 17,782,171 $ 16,470,531 $ – $ – $ 17,782,171 $ 16,470,531
Tax Increment Financing 8,290,501 6,715,401 – – 8,290,501 6,715,401
Local Option Sales Tax 4,950,902 3,588,423 – – 4,950,902 3,588,423
Commercial/Industrial Tax Replacement 692,564 585,000 – – 692,564 585,000
Unrestricted Interest 287,261 140,858 166,784 82,506 454,045 223,364
Operating Grants and Contributions 3,172,816 2,743,573 – – 3,172,816 2,743,573
Charges for Services 5,765,696 3,752,470 32,696,707 30,754,257 38,462,403 34,506,727
Capital Grants and Contributions 11,001,624 7,504,071 1,794,916 910,400 12,796,540 8,414,471
Gain (loss) from Disposal of Capital Assets 162,414 209,266 71,360 21,849 233,774 231,115
Grants/Contributions Not Restricted 500,000 2,572,513 – – 500,000 2,572,513
Miscellaneous 13,511 44,553 406,429 245,897 419,940 290,450
Total Revenues 52,619,460 44,326,659 35,136,196 32,014,909 87,755,656 76,341,568
Transfers 479,889 290,350 (479,889) (290,350) – –
Total Revenues and Transfers $ 53,099,349 $ 44,617,009 $ 34,656,307 $ 31,724,559 $ 87,755,656 $ 76,341,568
-11-
Governmental Activities Business Type Activities Total
2022 2021 2022 2021 2022 2021
Program Expenses
Public Safety $ 8,807,490 $ 8,261,049 $ – $ – $ 8,807,490 $ 8,261,049
Public Works 9,942,839 9,106,146 – – 9,942,839 9,106,146
Health and Social Services 35,000 79,000 – – 35,000 79,000
Culture and Recreation 3,888,117 3,267,418 – – 3,888,117 3,267,418
Community and Economic Development 1,985,899 861,193 – – 1,985,899 861,193
General Government 1,613,904 1,845,872 – – 1,613,904 1,845,872
Interest on Long-Term Debt 2,433,087 1,968,494 – – 2,433,087 1,968,494
Business Type Activities – – 20,653,969 20,731,124 20,653,969 20,731,124
Total Expenses 28,706,336 25,389,172 20,653,969 20,731,124 49,360,305 46,120,296
Increase in Net Position 24,393,013 19,227,837 14,002,338 10,893,435 38,395,351 30,121,272
Net Position Beginning of
Year 168,700,668 149,472,831 88,998,543 78,005,108 257,699,211 227,477,939
Net Position End of Year $ 193,093,681 $ 168,700,668$ 103,000,881$ 88,898,543$ 296,094,562 $ 257,699,211
-12-
The City maintained the property tax levy of $ 13.30 per $1,000 for FY22, while recognizing an increase of $ 2,886,740 in
property tax revenue due to increase in residential and commercial property valuation. Revenues for operating and capital
grants, contributions restricted and unrestricted interest, increased by $ 2,969,480, charges for service increased by
$3,955,676, gain from disposal of capital assets increased $ 2,659 and miscellaneous revenues increased by $ 129,490.
Overall revenues for governmental activities increased approximately $ 8,292,800 from the prior year.
The cost of all governmental activities this year was approximately $ 28.7 million compared to approximately $ 25.4 million
last year. However, as shown in the Statement of Activities on pages 18 and 19, the amount taxpayers ultimately financed for
these activities was $ 8.8 million as some of the cost was paid by those directly benefited from the programs ($ 5,765,696) o r
by other governments and organizations which subsidized certain progra ms with grants and contributions ($ 14,174,440).
Overall revenues for business type activities increased $ 3,121,287 over the prior year.
The cost of all business activities remained level at $ 20.7 million compared to approximately $ 20.7 million last y ear.
INDIVIDUAL MAJOR FUND ANALYSIS
Governmental Fund Highlights
As the City of Waukee completed the year, its governmental funds reported a combined fund balance of $ 52,063,260 at June
30, 2022, compared to $ 52,273,414 combined fund balance at June 30, 2021.
The General Fund showed an increase of $ 1,900,156 from the prior year to $ 9,228,786.
The Tax Increment Financing Urban Renewal Funds account for revenues from the tax authorized by ordinance in the urban
renewal districts which are used to pay the principal and interest on indebtedness incurred for urban renewal redevelopment
projects. These funds ended fiscal 2022 with a $ 1,700,138 balance compared to the prior year ending balance of $ 4,558,839.
The Debt Service Fund ended fiscal 2022 with a $ 5,247,130 balance compared to the prior year ending balance of $ 3,416,205.
Bond principal and interest payments increased by $ 2,743,861 in fiscal 2022.
The Local Option Sales Tax Fund ended fiscal 2022 with a $11,208,256 balance compared to the prior year ending balance of
$ 7,309,927.
The Capital Projects Fund ended fiscal 2022 with a $ 20,378,940 balance compared to the prior year ending balance of
$ 25,673,832.
Proprietary Fund Highlights
The Water Fund, which accounts for the operation and maintenance of the City’s water system, ended fiscal 2022 with a net
position of $28,622,721 compared to the prior year ending net position balance of $ 23,819,760.
The Sewer Fund, which accounts for the operation and maintenance of the City’s wastewate r treatment and sanitary sewer
system, ended fiscal 2022 with a net position of $ 45,926,663, compared to the prior year ending net position balance of
$ 40,742,746.
The Gas Fund, which accounts for the operations and maintenance of the City’s gas utility , ended fiscal 2022 with a
$ 21,484,577 net position balance, compared to the prior year ending net position balance of $ 18,648,296.
The Golf Course Fund, which accounts for the operations and maintenance of the City's municipal golf course, ended fiscal
2022 with a net position of $ 1,543,155, compared to the prior year ending net position balance of $ 1,289,704.
BUDGETARY HIGHLIGHTS
-13-
Over the course of the year, the City of Waukee amended its budget once in May of 2022. The amendment was required to
cover unplanned disbursements, including program expenditures associated with an increase to Public Safety, Culture and
Recreation, General Government, Debt Service, Enterprise Activities and Transfers Out and an increase to Public Works, Health
and Social Services and Community and Economic Development; while also increasing revenue sources for Licenses and
Permits, Use of Money and Property, Intergovernmental, Charges for Services, Miscellaneous, Other Financing Sources and
Transfers.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets include land, buildings and improvements, equipment, streets, sewer systems, lighting systems, traf fic
signals and other infrastructure. Capital assets for governmental activities totaled $ 253,036,836 (net of accumulated
depreciation) at June 30, 2022. Capital assets for business type activities totaled $ 89,918,543 (net of accumulated
depreciation) at June 30, 2022. See Note 3 to the financial statements for more information about the City’s capital assets.
The major capital outlays for governmental activities during the year included the completion of Warrior Lane Roundabout
phase 1, extension of SE Laurel Street to Alice’s Road, completion of the Traffic Signal Enhancem ent project, purchase of
OpenGov software for building permits, and the addition of traffic signals at Esker Ridge and LA Grant Parkway. The City als o
completed a major park project with the addition of Triumph Park, improvements to dugouts and fencing in Centennial Park,
and completion of Daybreak Park.
For business type activities, the major additions included the fees associated with the Wastewater Reclamation Authority
(WRA), Transite Water Main replacement phase 2, Southwest Area Trunk Sewer phase 2, and Little Walnut Creek Sewer phase
2, as well as the annual gas distribution system improvements.
Construction in progress at June 30, 2022 for the City consists several governmental activities projects including the public
works building expansion, Douglas Parkway from Warrior Lane to NE Badger Lane, Warrior Lane Roundabout phase 2, SE
Ashworth Corridor, improvements to the intersection at Ashworth and Ute, and Northwest Douglas Parkway; as well as utility
projects including the ASR well, West Area Trunk Sewer phase 2, Little Walnut Creek Sewer phase 5 and Lift Station No 2
rehabilitation.
Long-Term Debt
At June 30, 2022, the City had $ 103,172,323 in total non-current debt outstanding for governmental activities. Total non -
current debt outstanding for business type activities was $ 20,607,476 at June 30, 2022.
The City maintained their general obligation bond rating of Aa2, assigned by national rating agency, Moody’s Investors
Services, on April 10, 2017. The Constitution of the State of Iowa limits the amount of general obligation debt cities can issue
to 5 percent of the assessed value of all taxable property within the City’s corporate limits. The City’s outstanding genera l
obligation debt of $ 103,155,816 or 80.98% is below its constitutional debt limit of $127,379,974. Other obligations include
accrued vacation pay, total OPEB liability and net pension liability. Additional information about the City’s long -term debt is
presented in Note 4 to the financial statements.
-14-
ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE
Several economic factors affected decisions made by the City in setting its fiscal 2023 budget. The City of Waukee will
experience a significant increase in General Fund revenues and expenditures from fiscal 2022 to fiscal 2023. The major factors
that will play a role in this change are the increase in property tax revenues from increased valuations for fiscal 2023, and the
continued increase generated by the Local Option Sales Tax approved by voters in November 2017.
The General Fund is projected to end fiscal 2023 with a fund balance of approximately $ 9,154,000, or a planned decrease of
$ 75,000 from fiscal 2022. The tax levy rates per $1,000 of taxable valuation for fiscal 2023 were reduced by $0.20, wit h the
current levy as provided below:
General levy $7.70
Debt Service levy 3.32
Employee Benefits Levy 2.08
Total $13.10
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to present our citizens, taxpayers, customers, investors and creditors with a general overv iew
of the City’s finances and operating activities. If you have any questions or require additional information, please contact the
City Administrator or the Finance Director, at Waukee City Hall, 230 W Hickman Road, Waukee, Iowa.
-15-
BASIC FINANCIAL STATEMENTS
See Notes to Financial Statements.
-16-
City of Waukee, Iowa
STATEMENT OF NET POSITION
June 30, 2022
Primary Government
Governmental Business Type
Activities Activities Total
ASSETS
Current assets, unrestricted
Cash and investments $ 56,038,792 $ 32,874,085 $ 88,912,877
Receivables
Property tax
Delinquent 30,002 – 30,002
Succeeding year 26,825,651 – 26,825,651
Special assessments 115,926 – 115,926
Customer accounts – 2,035,878 2,035,878
Other 577,809 – 577,809
Due from other governments 1,721,435 – 1,721,435
Internal balances 85,000 (85,000) –
Inventories 350,519 1,098,585 1,449,104
Total current assets, unrestricted 85,745,134 35,923,548 121,668,682
Restricted cash and investments – 2,040,083 2,040,083
Noncurrent assets
Lease receivable 1,465,735 – 1,465,735
Net pension asset 2,720,771 471,999 3,192,770
Capital assets, net 253,036,836 89,918,543 342,955,379
Total assets 342,968,476 128,354,173 471,322,649
DEFERRED OUTFLOWS OF RESOURCES
Pension 1,572,323 272,766 1,845,089
OPEB 95,454 30,564 126,018
Total deferred outflows of resources 1,667,777 303,330 1,971,107
LIABILITIES
Current liabilities
Accounts payable 8,343,174 2,253,456 10,596,630
Accrued compensation 418,332 71,187 489,519
Accrued interest payable 252,000 42,107 294,107
Customer deposits payable – 359,064 359,064
Compensated absences 103,948 76,073 180,021
Lease agreements payable 58,295 18,176 76,471
General obligation bonds/notes 4,557,550 – 4,557,550
Revenue notes payable – 585,000 585,000
Direct borrowings 420,000 635,019 1,055,019
Installment contracts 175,941 – 175,941
Total current liabilities 14,329,240 4,040,082 18,369,322
Noncurrent liabilities
Compensated absences 425,797 – 425,797
Lease agreements payable 335,637 38,345 373,982
General obligation bonds/notes, net 89,793,989 – 89,793,989
Revenue notes payable, net – 10,502,135 10,502,135
Direct borrowings 11,755,000 9,903,692 21,658,692
Installment contracts 351,881 – 351,881
Total OPEB liability 510,019 163,304 673,323
Total noncurrent liabilities 103,172,323 20,607,476 123,779,799
Total liabilities 117,501,563 24,647,558 142,149,121
See Notes to Financial Statements.
-17-
City of Waukee, Iowa
STATEMENT OF NET POSITION (continued)
June 30, 2022
Primary Government
Governmental Business Type
Activities Activities Total
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Leases 1,447,885 – 1,447,885
Succeeding year property taxes 26,825,651 – 26,825,651
Pension 5,709,375 990,462 6,699,837
OPEB 58,098 18,602 76,700
Total deferred inflows of resources 34,041,009 1,009,064 35,050,073
NET POSITION
Net investment in capital assets 166,312,940 73,724,828 240,037,768
Restricted for
Debt service 5,497,696 1,053,912 6,551,608
Other purposes 14,412,897 – 14,412,897
Unrestricted 6,870,148 28,222,141 35,092,289
Total net position $193,093,681 $103,000,881 $296,094,562
See Notes to Financial Statements.
-18-
City of Waukee, Iowa
STATEMENT OF ACTIVITIES
Year ended June 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Service Contributions Contributions
FUNCTIONS/PROGRAMS
Primary government
Governmental activities
Public safety $ 8,807,490 $ 3,396,085 $ 27,774 $ –
Public works 9,942,839 1,490,447 3,132,454 8,858,463
Health and social services 35,000 – – –
Culture and recreation 3,888,117 670,147 12,588 2,143,161
Community and economic development 1,985,899 – – –
General government 1,613,904 209,017 – –
Interest on long-term debt 2,433,087 – – –
Total governmental activities 28,706,336 5,765,696 3,172,816 11,001,624
Business type activities
Water 5,090,602 8,130,084 – 1,794,916
Sewer 3,671,463 8,999,757 – –
Gas 8,351,659 11,380,169 – –
Golf 610,455 756,821 – –
Other 2,929,790 3,429,876 – –
Total business type activities 20,653,969 32,696,707 – 1,794,916
Total primary government $49,360,305 $38,462,403 $3,172,816 $12,796,540
GENERAL REVENUES
Property and other city tax levied for
General purposes
Debt service
Employee benefits
Tax increment financing
Local option sales tax
Commercial/Industrial tax replacement
Grants and contributions not restricted for specific purposes
Unrestricted interest on investments
Gain from disposal of capital assets
Miscellaneous
TRANSFERS
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION BEGINNING OF YEAR
NET POSITION END OF YEAR
See Notes to Financial Statements.
-19-
Net Revenue (Expense) and Changes in Net Position
Primary Government
Governmental Business Type
Activities Activities Total
$ (5,383,631) $ – $ (5,383,631)
3,538,525 – 3,538,525
(35,000) – (35,000)
(1,062,221) – (1,062,221)
(1,985,899) – (1,985,899)
(1,404,887) – (1,404,887)
(2,433,087) – (2,433,087)
(8,766,200) – (8,766,200)
– 4,834,398 4,834,398
– 5,328,294 5,328,294
– 3,028,510 3,028,510
– 146,366 146,366
– 500,086 500,086
– 13,837,654 13,837,654
(8,766,200) 13,837,654 5,071,454
10,022,826 – 10,022,826
5,184,143 – 5,184,143
2,575,202 – 2,575,202
8,290,501 – 8,290,501
4,950,902 – 4,950,902
692,564 – 692,564
500,000 – 500,000
287,261 166,784 454,045
162,414 71,360 233,774
13,511 406,429 419,940
479,889 (479,889) –
33,159,213 164,684 33,323,897
24,393,013 14,002,338 38,395,351
168,700,668 88,998,543 257,699,211
$193,093,681 $103,000,881 $296,094,562
See Notes to Financial Statements.
-20-
City of Waukee, Iowa
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2022
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
ASSETS
Cash and investments $10,459,210 $23,387,335 $ 5,241,597 $ 1,786,651 $10,850,910 $ 4,183,313 $55,909,016
Receivables
Property tax
Delinquent 12,702 – 6,283 7,706 – 3,311 30,002
Succeeding year 11,078,655 – 5,645,031 7,115,100 – 2,986,865 26,825,651
Special assessments – 378 – – – 115,548 115,926
Other 558,990 – – – – 18,819 577,809
Due from other funds 85,000 – – – – – 85,000
Due from other governments – 1,110,764 – – 357,346 253,325 1,721,435
Inventory 153,534 – – – – 196,985 350,519
Total assets $22,348,091 $24,498,477 $10,892,911 $ 8,909,457 $11,208,256 $ 7,758,166 $85,615,358
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts payable $ 1,440,826 $ 4,051,322 $ 750 $ 94,219 $ – $ 333,459 $ 5,920,576
Accrued compensation 394,181 – – – – 24,151 418,332
Total liabilities 1,835,007 4,051,322 750 94,219 – 357,610 6,338,908
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax 11,078,655 – 5,645,031 7,115,100 – 2,986,865 26,825,651
Special assessments – 237 – – – 113,681 113,918
Other 205,643 67,978 – – – – 273,621
Total deferred inflows of
resources 11,284,298 68,215 5,645,031 7,115,100 – 3,100,546 27,213,190
FUND BALANCES
Nonspendable 238,534 – – – – 196,985 435,519
Restricted for
Capital projects – 20,378,940 – – – – 20,378,940
Debt service – – 5,247,130 – – 250,566 5,497,696
Urban renewal – – – 1,700,138 – – 1,700,138
Other purposes 420,099 – – – 11,208,256 3,852,459 15,480,814
Committed 956,063 – – – – – 956,063
Unassigned 7,614,090 – – – – – 7,614,090
Total fund balances 9,228,786 20,378,940 5,247,130 1,700,138 11,208,256 4,300,010 52,063,260
Total liabilities, deferred
inflows of resources
and fund balances $22,348,091 $24,498,477 $10,892,911 $ 8,909,457 $11,208,256 $ 7,758,166 $85,615,358
See Notes to Financial Statements.
-21-
City of Waukee
RECONCILIATION OF THE BALANCE SHEET—
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
June 30, 2022
Total governmental fund balances $ 52,063,260
Amounts reported for 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. 253,036,836
Other long term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds, as unavailable revenue. 387,539
Long-term liabilities, including bonds payable, notes from direct borrowings and
direct placements, installment contracts, bond premiums and discounts,
other post employment benefits payable, net pension liability, compensated
absences and accrued interest payable, are not due and payable in the current
period and, therefore, are not reported as liabilities in the governmental funds. (108,441,884)
Pension and OPEB 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 governmental funds, as follows:
Deferred outflows of resources 1,667,777
Deferred inflows of resources (5,767,473) (4,099,696)
Lease receivables and the corresponding deferred inflows of resources are not
financial resources and are not due and payable in the current year and, therefore,
are not reported in the governmental funds.
Lease receivable 1,465,735
Deferred inflows of resources (1,447,885) 17,850
The Internal Service Fund is used by management to charge the costs of
future equipment purchases to individual funds. The assets of the Internal
Service Fund are allocated between governmental and business type
activities in the Statement of Net Position. 129,776
Net position of governmental activities $193,093,681
See Notes to Financial Statements.
-22-
City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year ended June 30, 2022
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
REVENUES
Property tax $ 9,801,958 $ – $ 5,184,143 $ – $ – $ 2,575,202 $17,561,303
Tax increment financing – – – 8,290,499 – – 8,290,499
Other city tax 128,358 91,057 – – 4,950,902 15,750 5,186,067
Licenses and permits 2,828,410 762,749 – – – 18,184 3,609,343
Use of money and property 242,700 104,426 12,592 46,531 45,396 24,597 476,242
Intergovernmental 1,038,393 1,934,935 94,136 516,388 – 3,153,951 6,737,803
Charges for service 916,042 – – – – – 916,042
Miscellaneous 197,257 2,317,000 – – – 596,702 3,110,959
Total revenues 15,153,118 5,210,167 5,290,871 8,853,418 4,996,298 6,384,386 45,888,258
EXPENDITURES
Operating
Public safety 8,787,632 – – – – – 8,787,632
Public works 761,864 – – – – 3,080,186 3,842,050
Health and social services 35,000 – – – – – 35,000
Culture and recreation 3,076,562 – – – – – 3,076,562
Community and economic
development 607,728 – – 1,428,636 – – 2,036,364
General government 1,589,810 – – – – – 1,589,810
Debt service
Principal – 175,941 11,200,000 – – – 11,375,941
Interest – – 3,592,158 – – – 3,592,158
Bond issuance and other costs – 132,074 5,500 – – – 137,574
Capital projects 1,692,321 31,981,364 – – – 382,181 34,055,866
Total expenditures 16,550,917 32,289,379 14,797,658 1,428,636 – 3,462,367 68,528,957
Excess (deficiency) of
revenues over (under)
expenditures (1,397,799) (27,079,212) (9,506,787) 7,424,782 4,996,298 2,922,019 (22,640,699)
OTHER FINANCING SOURCES
(USES)
Bond proceeds – 19,877,550 – – – – 19,877,550
Bond premium – 1,837,711 – – – – 1,837,711
Sale of capital assets 166,885 – – – – 42,010 208,895
Operating transfers in 3,134,570 800,000 11,337,712 – – – 15,272,282
Operating transfers out (3,500) (730,941) – (10,283,483) (1,097,969) (2,650,000) (14,765,893)
Total other financing
sources (uses) 3,297,955 21,784,320 11,337,712 (10,283,483) (1,097,969) (2,607,990) 22,430,545
CHANGE IN FUND BALANCES 1,900,156 (5,294,892) 1,830,925 (2,858,701) 3,898,329 314,029 (210,154)
FUND BALANCES, beginning 7,328,630 25,673,832 3,416,205 4,558,839 7,309,927 3,985,981 52,273,414
FUND BALANCES, ending $ 9,228,786 $20,378,940 $ 5,247,130 $ 1,700,138 $11,208,256 $ 4,300,010 $52,063,260
See Notes to Financial Statements.
-23-
City of Waukee
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES—
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year ended June 30, 2022
Change in fund balances—Total governmental funds $ (210,154)
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds reported capital outlays as expenditures while governmental
activities report depreciation expense to allocate those expenditures over the
life of the assets. Capital outlay expenditures exceeded depreciation expense
in the current year, as follows:
Capital outlays 41,159,212
Depreciation expense (7,991,137) 33,168,075
Governmental funds do not report capital assets and therefore do not report
gains or losses on the disposal of those assets. (3,049)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds.
Changes in unavailable revenue
Special assessments (14,297)
Other (523,525) (537,822)
Proceeds from issuing long-term liabilities provide current financial resources to
governmental funds, but issuing debt increase long -term liabilities in the
Statement of Net Position. Repayment of long-term liabilities is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the
Statement of Net Position. Current year issues exceeded repayments as follows:
Issued (19,877,550)
Repaid 11,375,941 (8,501,609)
Governmental funds report the effect of premiums, discounts and similar items
when debt is first issued, whereas these amounts are deferred and amortized
in the Statement of Activities. (744,007)
The City’s current year IPERS contributions are reported as expenditures in the
governmental funds but are reported as deferred outflows of resources in the
Statement of Net Position. 906,458
Some expenses 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, as follows:
Compensated absences (73,330)
Other postemployment benefits (58,245)
Pension gain 430,295
Leases 14,853
Interest on long-term debt 27,000 340,573
The Internal Service Fund is used by management to charge the costs of future
equipment purchases to individual funds. The change in net position of the
Internal Service Fund is allocated to governmental activities. (25,452)
Change in net position of governmental activities $24,393,013
See Notes to Financial Statements.
-24-
City of Waukee, Iowa
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2022
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
ASSETS
Current assets
Cash and investments $12,405,955 $11,689,837 $ 6,527,046 $ 136,750 $2,030,813 $ 32,790,401 $ 213,460
Receivables, net of allowances
Customer accounts 780,205 605,224 313,235 – 337,214 2,035,878 –
Due from other funds 100,000 – – – – 100,000 –
Inventories 632,731 – 452,796 13,058 – 1,098,585 –
Total current assets 13,918,891 12,295,061 7,293,077 149,808 2,368,027 36,024,864 213,460
Noncurrent assets
Restricted cash and investments 1,001,165 852,930 168,908 2,587 14,493 2,040,083 –
Net pension asset 113,931 89,565 131,778 26,931 109,794 471,999 –
Capital assets, net of accumulated
depreciation 20,392,652 49,326,687 14,868,346 1,781,958 3,548,900 89,918,543 –
Total noncurrent assets 21,507,748 50,269,182 15,169,032 1,811,476 3,673,187 92,430,625 –
Total assets 35,426,639 62,564,243 22,462,109 1,961,284 6,041,214 128,455,489 213,460
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 65,840 51,759 76,154 15,563 63,450 272,766 –
OPEB related deferred outflows 7,532 6,964 8,599 2,077 5,392 30,564 –
Total deferred outflows of resources 73,372 58,723 84,753 17,640 68,842 303,330 –
LIABILITIES
Current liabilities
Accounts payable 773,544 675,499 561,066 42,237 201,110 2,253,456 –
Accrued compensation 12,545 12,463 18,520 12,595 15,064 71,187 –
Compensated absences 14,414 14,414 25,842 505 20,898 76,073 –
Due to other funds – – – 185,000 – 185,000 –
Customer deposits payable 229,914 – 129,150 – – 359,064 –
Lease agreements payable – – – 18,176 – 18,176 –
Revenue notes payable 340,000 245,000 – – – 585,000 –
Direct borrowings and placements – 547,159 – 22,860 65,000 635,019 –
Interest payable 15,424 26,266 – – 417 42,107 –
Total current liabilities 1,385,841 1,520,801 734,578 281,373 302,489 4,225,082 –
Noncurrent liabilities
Lease agreements payable – – – 38,345 – 38,345 –
Revenue notes payable, net 5,207,544 5,294,591 – – – 10,502,135 –
Direct borrowings and placements – 9,651,515 – 47,177 205,000 9,903,692 –
Total OPEB liability 40,245 37,211 45,943 11,096 28,809 163,304 –
Total noncurrent liabilities 5,247,789 14,983,317 45,943 96,618 233,809 20,607,476 –
Total liabilities 6,633,630 16,504,118 780,521 377,991 536,298 24,832,558 –
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 239,077 187,946 276,530 56,514 230,395 990,462 –
OPEB related deferred inflows 4,583 4,239 5,234 1,264 3,282 18,602 –
Total deferred inflows of resources 243,660 192,185 281,764 57,778 233,677 1,009,064 –
NET POSITION
Net investment in capital assets 16,839,455 36,813,874 14,868,346 1,711,921 3,491,232 73,724,828 –
Restricted for bond retirement 415,827 581,664 39,758 2,587 14,076 1,053,912 –
Unrestricted 11,367,439 8,531,125 6,576,473 (171,353) 1,834,773 28,138,457 213,460
Total net position $28,622,721 $45,926,663 $21,484,577 $1,543,155 $5,340,081 102,917,197 $ 213,460
Amounts reported for business type activities in the Statement of Net Position are different because
The Internal Service Fund is used by management to charge the costs of future equipment
purchases to individual funds. The assets of the Internal Service Fund are allocated between
governmental and business type activities in the Statement of Net Position. 83,684
Net assets of business type activities $103,000,881
See Notes to Financial Statements.
-25-
City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Year ended June 30, 2022
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
OPERATING REVENUES
Charges for service $ 8,130,084 $ 8,999,757 $11,380,169 $ 747,403 $3,429,876 $ 32,687,289 $ –
Miscellaneous 173,389 23,872 15,846 101,562 14,821 329,490 –
Total operating revenues 8,303,473 9,023,629 11,396,015 848,965 3,444,697 33,016,779 –
OPERATING EXPENSES
Business type activities
Cost of sales and services 4,186,697 1,905,801 7,805,620 529,788 2,749,939 17,177,845 –
Depreciation and amortization 738,112 1,459,912 546,039 69,339 174,569 2,987,971 –
Total operating expenses 4,924,809 3,365,713 8,351,659 599,127 2,924,508 20,165,816 –
Operating income 3,378,664 5,657,916 3,044,356 249,838 520,189 12,850,963 –
NONOPERATING REVENUES
(EXPENSES)
Interest income 72,978 55,136 26,675 5,523 6,472 166,784 1,048
Rental income 76,939 – – – – 76,939 –
Gain on disposal of capital assets 29,495 26,615 15,250 – – 71,360 –
Grant revenue 1,794,916 – – – – 1,794,916 –
Interest expense and fiscal charges (165,793) (305,750) – (1,910) (5,282) (478,735) –
Total nonoperating revenues
(expenses) 1,808,535 (223,999) 41,925 3,613 1,190 1,631,264 1,048
Income before transfers 5,187,199 5,433,917 3,086,281 253,451 521,379 14,482,227 1,048
Transfers in – – – – 555,000 555,000 3,500
Transfers (out) (384,238) (250,000) (250,000) – (150,651) (1,034,889) (30,000)
CHANGE IN NET POSITION 4,802,961 5,183,917 2,836,281 253,451 925,728 14,002,338 (25,452)
NET POSITION, beginning 23,819,760 40,742,746 18,648,296 1,289,704 4,414,353 88,914,859 238,912
NET POSITION, ending $28,622,721 $45,926,663 $21,484,577 $1,543,155 $5,340,081 $102,917,197 $ 213,460
See Notes to Financial Statements.
-26-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year ended June 30, 2022
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 8,326,627 $ 9,015,419 $11,557,073 $ 747,403 $3,427,618 $33,074,140 $ –
Cash received from other revenues 173,389 23,872 15,846 101,562 114,821 429,490 –
Cash paid for personal services (991,341) (909,022) (1,127,872) (269,902) (708,437) (4,006,574) –
Cash paid to suppliers (3,868,578) (933,541) (6,603,180) (277,773) (2,083,975) (13,767,047) –
Net cash flows from operating activities 3,640,097 7,196,728 3,841,867 301,290 750,027 15,730,009 –
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payments made on interfund accounts – – – (202,804) – (202,804) –
Transfers to other funds (384,238) (250,000) (250,000) – (150,651) (1,034,889) (30,000)
Transfers from other funds – – – – 555,000 555,000 3,500
Net cash flows from noncapital
financing activities (384,238) (250,000) (250,000) (202,804) 404,349 (682,693) (26,500)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,206,199) (4,893,714) (2,554,698) – (285,685) (9,940,296) –
Proceeds from sale of capital assets 31,305 28,425 15,250 – – 74,980 –
Proceeds from capital grants 1,794,916 – – – – 1,794,916 –
Principal paid on revenue notes (330,000) (240,000) – – – (570,000) –
Principal paid on direct borrowings
and placements – (654,337) – (22,422) (65,000) (741,759) –
Interest and fiscal charges paid (199,888) (333,478) – (1,910) (5,369) (540,645) –
Net cash flows from capital and
related financing activities (909,866) (6,093,104) (2,539,448) (24,332) (356,054) (9,922,804) –
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 72,978 55,136 26,675 5,523 6,472 166,784 1,048
Proceed from sale of investments – – – 57,342 – 57,342 –
Purchase of investments (1,592) (691) – – – (2,283) –
Cash received from property rental 76,939 – – – – 76,939 –
Net cash flows from investing activities 148,325 54,445 26,675 62,865 6,472 298,782 1,048
NET CHANGE IN CASH AND CASH
EQUIVALENTS 2,494,318 908,069 1,079,094 137,019 804,794 5,423,294 (25,452)
CASH AND CASH EQUIVALENTS, beginning 10,187,761 11,554,007 5,616,860 2,318 1,239,540 28,600,486 238,912
CASH AND CASH EQUIVALENTS, ending $12,682,079 $12,462,076 $ 6,695,954 $ 139,337 $2,044,334 $34,023,780 $ 213,460
See Notes to Financial Statements.
-27-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
Year ended June 30, 2022
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
RECONCILIATION OF OPERATING
INCOME TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income $ 3,378,664 $ 5,657,916 $3,044,356 $ 249,838 $ 520,189 $12,850,963 $ –
Adjustments to reconcile operating income
to net cash flows from operating activities
Depreciation expense 738,112 1,459,912 546,039 69,339 174,569 2,987,971 –
Change in assets, deferred outflows,
liabilities and deferred inflows
Customer accounts receivable 196,543 15,662 83,776 – (2,258) 293,723 –
Due from other governments – – 93,128 – 100,000 193,128 –
Inventories (492,316) – (132,686) (4,232) – (629,234) –
Accounts payable, net of capital assets (140,718) 109,070 265,138 11,074 9,995 254,559 –
Accrued compensation (7,552) (3,982) (3,122) 4 (3,370) (18,022) –
Customer deposits 33,230 – 1,300 – – 34,530 –
Compensated absences (6,825) (636) (50) (4,016) 4,880 (6,647) –
Net pension asset (305,788) (238,962) (337,430) (87,237) (294,508) (1,263,925) –
Deferred outflows of resources 8,261 4,908 2,771 7,803 9,084 32,827 –
Deferred inflows of resources 231,885 182,846 269,090 54,670 224,165 962,656 –
Total OPEB liability 6,601 9,994 9,557 4,047 7,281 37,480 –
Net cash flows from operating activities $ 3,640,097 $ 7,196,728 $3,841,867 $ 301,290 $ 750,027 $15,730,009 $ –
RECONCILIATION OF CASH AND CASH
EQUIVALENTS AT YEAR END TO SPECIFIC
ASSETS INCLUDED ON THE STATEMENT
OF NET POSITION
Current assets
Cash and investments $12,405,955 $11,689,837 $6,527,046 $ 136,750 $2,030,813 $32,790,401 $ 213,460
Restricted assets - cash and investments
Customer deposits 229,914 – 129,150 – – 359,064 –
Revenue note and interest sinking account 46,210 277,152 39,758 2,587 13,521 379,228 –
Revenue note reserve account 725,041 575,778 – – 972 1,301,791 –
13,407,120 12,542,767 6,695,954 139,337 2,045,306 34,830,484 213,450
Less items not meeting the definition of
cash equivalent
Certificates of deposit (725,041) (80,691) – – (972) (806,704) –
Cash and cash equivalents at year end $12,682,079 $12,462,076 $6,695,954 $ 139,337 $2,044,334 $34,023,780 $ 213,460
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-28-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Waukee is a political subdivision of the State of Iowa located in Dallas County. It was first incorporated in
1869 and operates under the Home Rule provisions of the Constitution of Iowa. The City operates under the Mayor -
Council-Clerk/Administrator form of government with the Mayor and Council Members elected on a non -partisan basis.
The City of Waukee provides numerous services to citizens, including public safety, public works, health and social
services, culture and recreation, community and economic development and general government services. It also
operates the water, sewer, gas, storm water and solid waste utilities and the public golf course.
The financial statements of the City of Waukee, Iowa, have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles. The more significant of the government's accounting policies are described below:
Reporting Entity
For financial reporting purposes, the City of Waukee has included all funds, organizations, agencies, boards, commissions
and authorities. The City has also considered all potential component units for which it is financially accountable, and
other organizations for which the nature and significance of their relationship with the City are such that exclusion w ould
cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board
has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting
majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the
potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. The City has
no component units which meet the Government Accounting Standards Board criteria.
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: Bravo Greater Des Moines, Inc., Des
Moines Area Metropolitan Planning Board, Central Iowa Regional Drinking Water Commission, Dallas County Housing
Trust Fund Board, Dallas County Emergency Management Commission, Metro Advisory Council, Westcom, Wastewater
Reclamation Authority and Waukee Economic Development Corporation.
Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and the Statement of Activities report information on all of the nonfiduciary activities of
the primary government. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which are supported by property tax and intergovernmental revenues, are reported separately
from business type activities, which rely to a significant extent on fees and charges for service.
The Statement of Net Position presents the City's nonfiduciary assets, deferred outflows of resources, liabilities and
deferred inflows of resources, with the difference reported as net position. Net position is reported in three categories:
Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by
outstanding balances for bonds, notes and other debt attributable to the acquisition, construction or improvement of
those assets. The related debt excludes unspent debt proceeds of $28,579,126.
Restricted net position results when constraints placed on net position use are either externally imposed or imposed
by law through constitutional provisions or enabling legislation.
Unrestricted net position consists of net position not meeting the definition of the preceding categories. Unrestricted
net position often has constraints on resources imposed by management which can be removed or modified.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-29-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of Presentation (continued)
Government-wide Financial Statements (continued)
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by
program revenues. Direct expenses are those clearly identifiable with a specific function. Program re venues include
1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided
by a given function and 2) grants, contributions and interest restricted to meeting the operational or capital requirements
of a particular function. Property tax and other items not properly included among program re venues are reported
instead as general revenues.
Fund Financial Statements
Separate financial statements are provided for governmental and proprietary funds. Major individual governmental and
proprietary funds are reported as separate columns in the fund financial statements. All remaining governmental funds
and proprietary funds are aggregated and reported as nonmajor governmental and nonmajor proprietary funds.
The City reports the following major governmental funds:
General Fund
The General Fund is the general operating fund of the City. All general tax revenues from general and emergency
levies and other revenues not allocated by law or contractual agreement to some other fund are accounted for in
this fund. From the fund are paid the general operating expenditures, the fixed charges and the capital improvement
costs not paid from other funds.
Special Revenue
Urban Renewal Tax Increment Financing Fund is used to account for revenues from the tax authorized by ordinance
in the City’s urban renewal districts and to pay the principal and interest on the general obligation capital loan notes
and other indebtedness incurred for urban renewal projects.
The Local Option Sales Tax Fund is used to account for local option sales tax collections to be used for property tax
relief and City quality of life improvement purposes.
Capital Projects Fund
The Capital Projects Fund is used to account for all resources used in the acquisition and construction of capital
facilities and other capital assets.
Debt Service Fund
The Debt Service Fund is used to account for property tax and other revenues to be used for the payment of interest
and principal on the City's general long-term debt.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-30-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of Presentation (continued)
The City reports the following major proprietary funds:
Enterprise
The Water Fund is used to account for the operation and maintenance of the City's water system.
The Sewer Fund is used to account for the operation and maintenance of the City's sewer system.
The Gas Fund is used to account for the operation and maintenance of the City's gas system.
The Golf Fund is used to account for the operation and maintenance of the C ity's municipal golf course.
Measurement Focus and Basis of Accounting
The government-wide and proprietary fund financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property tax is recognized as revenue in the year for
which it is levied. Grants and similar items are recognized as revenue as s oon as all eligibility requirements imposed by
the provider have been satisfied.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recogn ized 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 r evenues to be available if they are collected
within 60 days after year end.
Property tax, intergovernmental revenues (shared revenues, grants and reimbursements from other governments) and
interest are considered to be susceptible to accrual. All other revenue items are considered to be measurable and
available only when cash is received by the City.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, principal and
interest on long-term debt, claims and judgments and compensated absences are recognized as expenditures only when
payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general
long-term debt are reported as other financing sources.
When an expenditure is incurred in governmental funds which can be paid using either restricted or unrestricted resources,
the City’s policy is generally to first apply the expenditure toward restricted fund balance and then to less -restrictive
classifications - committed, assigned and then unassigned fund balances.
Under terms of grant agreements, the City funds certain programs by a combination of specific cost -reimbursement grants,
categorical block grants and general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted net position available to finance the program. It is the City’s policy to first apply cost -reimbursement grant
resources to such programs, followed by categorical block grants and then by general revenues.
Proprietary funds distinguish operating revenues a nd 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 is charges to
customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services,
administrative expenses and depreciation/amortization on capital assets. All revenues and expenses no t meeting this
definition are reported as nonoperating revenues and expenses.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-31-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash and Pooled Cash Investments
The cash balances of most City funds are pooled and invested. Interest earned on investments is recorded in the General
Fund unless otherwise provided by law.
For purposes of the statement of cash flows, all short -term cash investments that are highly liquid (including restricted
assets) are considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash and,
at the day of purchase, have a maturity date no longer than three months.
Property Tax Receivable, Including Tax Increment Financing
Property tax, including tax increment financing, in governmental funds are accounted for using the modified accrual basis
of accounting.
Property tax receivable is recognized in these funds on the levy or lien date, which is the date that the tax asking i s certified
by the City Council to the County Board of Supervisors. Delinquent property tax receivable represents taxes collected by
the County but not remitted to the City at June 30, 2022 and unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City Council 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 tax revenues recognized in these funds become due and collectible in September and March of the current fiscal
year with a 1½ percent per month penalty for delinquent payments; is based on January 1, 2020 assessed property
valuations; is for the tax accrual period July 1, 2021 through June 30, 2022 and reflects the tax asking contained in the
budget certified to the County Board of Supervisors in March 2021.
Special Assessments Receivable
Special assessments receivable represents the amounts due from individuals for work done which benefits their property.
These assessments are payable by individuals in not less than ten nor more than twenty annual installments. Each annual
installment with interest on the unpaid balance is due on September 30 and is subject to the same interest and penalties
as other taxes.
Customer Accounts and Unbilled Usage
Accounts receivable are recorded in the Enterprise Funds at the time the service is billed. Unbilled usage for service
consumed between periodic scheduled billing dates is not estimated or recorded to the financial statements per City
policy.
Due from and Due to Other Funds
During the course of its operations, the City has numerous transactions between funds. To the extent certain transactions
between funds had not been paid or received as of June 30, 2022, balances of interfund amounts receivable or payable
have been recorded in the fund financial statements.
Due from Other Governments
Due from other governments represents amounts due from the State of Iowa and various shared revenues, grants and
reimbursements from other governments.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-32-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Inventories
Inventories are valued at cost using the first-in/first-out method. Inventories consist of materials and supplies. Inventories
are recorded as expenses when consumed rather than when purchased.
Restricted Assets
Funds set aside for payment of Enterprise Fund revenue notes are classified as restricted assets since their use is
restricted by applicable note indentures. Other restricted assets include customer deposits restricted for application to
unpaid customer accounts or for refund to customers.
Lease Receivable/Deferred Inflow of Resources
The City is the lessor for certain noncancellable leases. The City recognized a lease receivable and a deferred inflow of
resources in the accompanying statement of net position.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term, discounted at the City’s incremental borrowing rate. Subsequently, the
lease receivable is reduced by the principal portion of the lease payments received. The deferred inflows of resources is
initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease
term.
Capital Assets
Capital assets, which include property, equipment and vehicles and infrastructure assets acquired after July 1, 1980 (e.g.
roads, bridges, curbs, gutters, sidewalks and similar items which are immovable and of value only to the City) are reported
in the applicable governmental or business type activities columns in the government-wide Statement of Net Position and
in the Proprietary Funds Statement of Net Position. Capital assets are recorded at historical cost if purchased or
constructed. Donated capital assets are recorded at estima ted 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 extend ing asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets are defined
by the City as assets with initial, individual cost in excess of $5,000 and estimated useful lives in excess of two years.
Capital assets of the City are depreciated using the straight-line method over the following estimated useful lives:
Estimated
Asset Class useful lives
Buildings 40-50 years
Improvements other than buildings 20-50 years
Vehicles 5-10 years
Equipment 5-30 years
Infrastructure 20-40 years
Right-of-use leased assets 2-9 years
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-33-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Leases
The City is the lessee for various noncancellable leases of buildings , equipment, and vehicles. The City has recognized
lease liabilities and intangible right-of-use leased assets (lease assets) in the financial statements. The City recognized
lease liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the presen t value of payments expected
to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payment s
made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made
at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized
on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines the discount rate it uses to discount the
expected lease payments to present value, lease term and lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the
lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate of leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of
the lease liability are composed of fixed payments and, if applicable, any purchase option price the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease
assets and liabilities if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with capital assets and lease liabilities are reported as lease agreements payable on the
statement of net position.
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 resource s consist of
unrecognized items not yet charged to pension and OPEB expense and contributions from the City after the measurement
date but before the end of the City’s reporting period.
Compensated Absences
City employees accumulate a limited amount of earned but unused vacation for subsequent use. A liability is recorded
when incurred in the government-wide and proprietary fund financial statements. For governmental fund types, the
amount of earned but unused vacation is recorded as a liability of the respective fund only if they have matured, for
example, as a result of employee retirement. The compensated absences liability has been computed based on rates of
pay in effect at June 30, 2022. The compensated absences liability attributable to the governmental activities will be paid
primarily by the General Fund.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-34-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental or business type activities column in the Statement of Net Position
and the proprietary fund Statement of Net Position.
In the governmental fund financial statements, the face amount of debt issued is reported as other financing sources.
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 the fiduciary net position of the Iowa Public Employees’
Retirement System (IPERS) and additions to/deductions from IPERS’ fiduciary ne t position have been determined on the
same basis as they are reported by IPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are re ported at
fair value. The net pension liability attributable to the governmental activities will be paid primarily by the General Fund.
Deferred Inflows of Resources
Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be
recognized 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 in the fund financial statements consist of property tax
receivable and other receivables not collected within sixty days after year end and succeeding year property tax and tax
increment financing receivables that will not be recognized until the year for which they are levied.
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, the unamortized portion
of the net difference between projected and actual earnings on IPERS’ investments , and leasing revenues which will not
be recognized until the period in which they are due .
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB and OPEB expense, information has been determined based on the City’s actuary report. For this
purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. The total OPEB
liability attributable to the governmental activities will be paid primarily by the General Fund.
Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable – Amounts which cannot be spent either because they are in a nonspendable form or because they
are legally or contractually required to be maintained intact.
Restricted – Amounts restricted to specific purposes when constr aints placed on the use of the resources are either
externally imposed by creditors, grantors or state or federal laws or imposed by law through constitutional provisions
or enabling legislation.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-35-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Balances (continued)
Committed – Amounts which can be used only for specific purposes pursuant to constraints formally imposed by the
City Council through ordinance or resolution approved prior to year-end. Those committed amounts cannot be used
for any other purpose unless the City Council removes or changes the specified use by taking the same action it
employed to commit those amounts.
Unassigned – All amounts not included in the preceding classifications. The General Fund is the only fund which
would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds
would also be reported as unassigned.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information. For the year
ended June 30, 2022, the City’s disbursements did not exceed the amount budgeted.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred
outflows of resources, liabilities, and deferred inflows of resources at the date of the basic financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from
those estimates.
NOTE 2 CASH AND POOLED CASH INVESTMENTS
The City's deposits in banks at June 30, 2022 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 ensure there will be no loss of public funds.
The City is 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; 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.
The City had no investments meeting the disclosure requirements of Governmental Accounting Standards Board
Statement No. 72.
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) in instruments that mature within 397 days. Funds not identified as operating funds
may be invested in investments with maturities longer than 397 days but the maturities shall be consistent with the needs
and use of the City.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-36-
NOTE 3 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2022 was as follows:
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Governmental activities
Capital assets not being depreciated
Land $ 25,396,306 $ 1,023,297 $ – $ – $ 26,419,603
Construction in progress 34,410,023 33,334,081 – (42,266,627) 25,477,477
Total capital assets not being depreciated 59,806,329 34,357,378 – (42,266,627) 51,897,080
Capital assets being depreciated
Buildings 10,098,613 – – – 10,098,613
Improvements other than buildings 224,579,485 7,183,232 – 41,875,060 273,637,777
Equipment 9,387,427 872,896 355,240 391,567 10,296,650
Right-of-use assets 393,932 – – – 393,932
Total capital assets being depreciated 244,459,457 8,056,128 355,240 42,266,627 294,426,972
Less accumulated depreciation for
Buildings 4,291,056 395,264 – – 4,686,320
Improvements other than buildings 75,268,469 6,814,527 – – 82,082,996
Equipment 6,085,749 781,346 352,191 – 6,514,904
Right-of-use assets – 2,996 – – 2,996
Total accumulated depreciation 85,645,274 7,994,133 352,191 – 93,287,216
Total capital assets being depreciated, net 158,420,251 61,995 3,049 42,266,627 201,139,756
Governmental activities capital assets, net $218,226,580 $34,419,373 $ 3,049 $ – $253,036,836
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Business type activities
Capital assets not being depreciated
Land $ 2,256,811 $ – $ – $ – $ 2,256,811
Construction in progress 4,495,907 6,282,886 20,814 (8,176,257) 2,581,722
Total capital assets not being depreciated 6,752,718 6,282,886 20,814 (8,176,257) 4,838,533
Capital assets being depreciated
Buildings 557,486 – – – 557,486
Equipment 5,310,466 278,559 130,359 – 5,458,666
Infrastructure 97,309,861 3,439,697 – 8,176,257 108,925,815
Right-of-use assets 56,521 – – – 56,521
Total capital assets being depreciated 103,177,813 3,718,256 130,359 8,176,257 114,998,488
Less accumulated depreciation for
Buildings 276,607 13,192 – – 289,799
Equipment 3,259,197 358,436 126,739 – 3,490,894
Infrastructure 23,521,442 2,609,970 – – 26,131,412
Right-of-use assets – 6,373 – – 6,373
Total accumulated depreciation 27,057,246 2,987,971 126,739 – 29,918,478
Total capital assets being depreciated, net 76,120,567 730,285 3,620 8,176,257 85,080,010
Business type activities capital assets, net $ 82,873,285 $ 7,013,171 $ 24,434 $ – $ 89,918,543
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-37-
NOTE 3 CAPITAL ASSETS (continued)
Depreciation expense was charged to functions of the primary government as follows:
Governmental activities
Public safety $ 409,506
Public works 6,294,618
Culture and recreation 965,444
Community and economic development 804
General government 323,761
Total depreciation expense--governmental activities $7,994,133
Business type activities
Water $ 738,112
Sewer 1,459,912
Gas 546,039
Golf 69,339
Nonmajor 174,569
Total depreciation expense--business type activities $2,987,971
NOTE 4 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2022 is as follows:
Balance Balance
beginning end Due within
of year Increases Decreases of year one year
Governmental activities
General obligation bonds/notes $ 84,604,982 $21,715,261 $11,968,704 $ 94,351,539 (1) $4,557,550
Notes from direct borrowings and
direct placements 12,500,000 – 325,000 12,175,000 420,000
Installment contract 703,763 – 175,941 527,822 175,941
Compensated absences 456,415 73,330 – 529,745 103,948
Lease agreements payable 451,977 – 58,045 393,932 58,295
Total OPEB liability 374,582 135,437 – 510,019 –
Net pension liability (asset) 4,460,344 – 7,181,115 (2,720,771) –
Totals $103,552,063 $21,924,028 $19,708,805 $105,767,286 $5,315,734
Business type activities
Revenue bonds/notes $ 11,707,424 $ – $ 620,289 $ 11,087,135 (2) $ 585,000
Notes from direct borrowings and
direct placements 11,280,470 – 741,759 10,538,711 635,019
Compensated absences 82,720 – 6,647 76,073 76,073
Lease agreements payable 70,096 – 13,575 56,521 18,176
Total OPEB liability 125,824 37,480 – 163,304 –
Net pension liability (asset) 791,926 – 1,263,925 (471,999) –
Totals $ 24,058,460 $ 37,480 $ 2,646,195 $ 21,449,745 $1,314,268
(1) Included in balance are unamortized bond premiums totaling $4,938,989 at June 30, 2022.
(2) Included in balance are unamortized bond premiums totaling $247,135 at June 30, 2022.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-38-
NOTE 4 LONG-TERM LIABILITIES (continued)
Governmental Activities
Nine issues of unmatured general obligation bonds/notes, totaling $89,412,550, are outstanding at June 30, 2022.
General obligation bonds/notes bear interest at rates ranging from 2.0% to 5.0% and mature in varying annual amounts,
ranging from $100,000 to $1,900,000, with the final maturities due in the year ending June 30, 20 41.
The City has one issuance of a note from direct borrowing and direct placements with an outstanding balance totaling
$12,175,000 at June 30, 2022. The note bears an interest rate of 2.15% and matures in varying annual amounts, ranging
from $325,000 to $1,190,000 with the final maturities due in the year ending June 30, 2035.
The City has entered into an installment contract with a neighboring City related to the Ashworth reconstruction project.
The agreement is noninterest bearing and requires annual installments of approximately $176,000 through June 2025.
The balance due as of June 30, 2022 was $527,822.
Details of general obligation and revenue bonds/notes payable at June 30, 2022 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Governmental activities Date of issue rates due date payments issue 2022
General Obligation Bonds
and Notes
General Obligation 2014A December 10, 2014 2.00-3.50 June 1, 2034 $510,000 - 1,335,000 $23,295,000 $14,465,000
General Obligation 2015C November 19, 2015 2.50-4.00 June 1, 2030 380,000 - 485,000 7,340,000 3,495,000
General Obligation 2017A May 24, 2017 3.00-4.00 June 1, 2036 100,000 - 1,900,000 13,940,000 12,425,000
General Obligation 2018A June 19, 2018 3.00-5.00 June 1, 2038 835,000 - 1,310,000 19,775,000 16,670,000
General Obligation 2019A August 21, 2019 3.00-5.00 June 1, 2031 325,000 - 440,000 4,655,000 3,470,000
General Obligation 2020B November 19, 2020 2.125-5.00 June 1, 2036 250,000 - 880,000 9,155,000 8,905,000
General Obligation 2022A April 6, 2021 2.00-5.00 June 1, 2040 170,000 - 1,390,000 17,305,000 10,305,000
General Obligation 2021B November 4, 2021 2.00-5.00 June 1, 2041 200,000 - 1,390,000 19,760,000 19,560,000
*General Obligation 2022A July 6, 2022 N/A N/A N/A 117,550 117,550
*The City received a good faith deposit in June 2022 related to the City’s July 6, 2022 debt issuance.
Direct Borrowings and
Placements
General Obligation 2020A May 7, 2020 2.15 June 1, 2035 325,000 - 1,190,000 12,800,000 12,175,000
Installment Contract
City of West Des Moines July 1, 2021 0.00 July 1, 2024 175,941 879,704 527,822
A summary of the bond/note principal and interest maturities by type of bond/note is as follows:
Year ending General Obligation Direct Borrowings and Placements
June 30 Principal Interest Total Principal Interest Total
2023 $ 4,557,550 $ 2,993,503 $ 7,551,053 $ 420,000 $ 261,762 $ 681,762
2024 4,800,000 2,816,503 7,616,503 510,000 252,732 762,732
2025 5,240,000 2,622,678 7,862,678 660,000 241,768 901,768
2026 5,520,000 2,409,653 7,929,653 745,000 227,578 972,578
2027 5,805,000 2,176,453 7,981,453 1,000,000 211,560 1,211,560
2028-2032 32,785,000 7,260,030 40,045,030 5,345,000 725,303 6,070,303
2033-2037 23,895,000 2,533,694 26,428,694 3,495,000 151,360 3,646,360
2038-2041 6,810,000 354,275 7,164,275 – – –
Subtotal 89,412,550 23,166,789 112,579,339 12,175,000 2,072,063 14,247,063
Plus unamortized premium 4,938,989 – 4,938,989 – – –
Totals $94,351,539 $23,166,789 $117,518,328 $12,175,000 $2,072,063 $14,247,063
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-39-
NOTE 4 LONG-TERM LIABILITIES (continued)
Governmental Activities (continued)
Year ending Installment Contract
June 30 Principal Interest Total
2023 $ 175,941 $ – $ 175,941
2024 175,941 – 175,941
2025 175,940 – 175,940
Totals $ 527,822 $ – $ 527,822
Business Type Activities
Five issues of unmatured revenue notes, totaling $10,840,000, are outstanding at June 30, 2022. These notes bear
interest at rates ranging from 3.00% to 5.00% and mature in varying annual amounts, ranging from $100,000 to $265,000,
with the final maturities due in the year ending June 30, 2038.
Four issues of unmatured direct borrowing and direct placement notes, totaling $10,538,711, are outstanding at June 30,
2022. These notes bear interest at rates ranging from 1.6% to 2.25% and mature in var ying annual amounts, ranging
from $22,348 to $603,800 with the final maturities due in the year ending June 30, 2038.
The resolutions providing for the issuance of the revenue notes and direct borrowing and direct placement notes include
the following provisions:
(1) The notes/bonds will only be redeemed from the future earnings of the enterp rise activity and the note/bondholders
hold a lien on the future earnings of the funds.
(2) Sufficient monthly transfers shall be made to the sinking funds for the purpose of making the note/bond principal and
interest payments when due.
(3) Additional monthly transfers shall be made to the reserve funds until specific minimum balances have been
accumulated. These accounts are restricted for the purpose of paying note/bond principal and interest payments due
when insufficient money is available in the sinking funds.
During the year ended June 30, 2022, the City was in compliance with the bond provisions.
The City has pledged future customer revenues, net of specified operating expenses, to repay the $26,805,975 in revenue
notes issued from 2015 to 2022. Proceeds from the notes provided financing for construction of improvements to the
facilities and infrastructure and purchase capacity. The notes are payable solely from customer net revenues and are
payable through 2038. Annual principal and interest payments on the notes are expected to require less than net
revenues. The total principal and interest remaining to be paid on the notes is $26,368,241. For the current year, principal
and interest paid and total customer net revenues were $1,906,495 and $9,807,990, respectively.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-40-
NOTE 4 LONG-TERM LIABILITIES (continued)
Business-Type Activities (continued)
Details of revenue notes and bonds payable at June 30, 2022 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Business Type activities Date of issue rates due date payments issue 2022
Revenue Notes and Bonds
Water
Series 2015B July 21, 2015 3.00 June 1, 2027 $120,000 - 140,000 $1,450,000 $ 655,000
Series 2018B June 19, 2018 3.00 - 4.00 June 1, 2038 100,000 - 265,000 3,410,000 3,010,000
Series 2019B August 21, 2019 3.00 - 5.00 June 1, 2034 110,000 - 180,000 2,040,000 1,730,000
Sewer
Series 2016C December 20, 2016 3.00 - 3.125 June 1, 2036 100,000 - 205,000 2,685,000 2,275,000
Series 2018C June 19, 2018 3.00 – 5.00 June 1, 2038 140,000 - 250,000 3,565,000 3,170,000
Direct Borrowings and
Direct Placements
Sewer
Series 2017 September 1, 2017 2.20 June 1, 2038 426,308 - 603,800 9,942,975 8,146,166
Series 2018A July 6, 2018 2.00 June 1, 2038 138,000 - 174,000 2,948,000 2,052,508
Golf Course
Series 2019C November 19, 2019 2.25 June 1, 2025 22,348 - 23,868 125,000 70,037
Stormwater
Series 2016A June 1, 2016 1.60 - 2.00 June 1, 2026 65,000 - 70,000 640,000 270,000
Year ending Revenue Notes/Bonds Direct Borrowings and Placements
June 30 Principal Interest Total Principal Interest Total
2023 $ 585,000 $ 367,884 $ 952,884 $ 635,019 $ 224,515 $ 859,534
2024 600,000 344,134 944,134 646,869 211,340 858,209
2025 660,000 319,634 979,634 664,892 197,842 862,734
2026 685,000 293,134 978,134 653,626 184,047 837,673
2027 705,000 265,584 970,584 595,444 170,326 765,770
2028-2032 3,610,000 998,554 4,608,554 3,175,619 657,465 3,833,084
2033-2037 3,480,000 414,120 3,894,120 3,536,751 307,117 3,843,868
2038-2039 515,000 18,025 533,025 630,491 15,809 646,300
Subtotal 10,840,000 3,021,069 13,861,069 10,538,711 1,968,461 12,507,172
Plus unamortized premium 247,135 – 247,135 – – –
Totals $11,087,135 $3,021,069 $14,108,204 $10,538,711 $1,968,461 $12,507,172
As of June 30, 2022, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows:
Actual valuation $2,547,599,476
Debt limit - 5% of total actual valuation $127,379,974
Debt applicable to debt limit
General obligation bonded debt outstanding $ 89,412,550
Notes from direct borrowings and placements 12,175,000
Tax increment financing and other agreements subject to debt limit 1,568,266
Total debt subject to debt limit $103,155,816
Percentage of debt limit 80.98%
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-41-
NOTE 5 PENSION PLAN
Plan Description
IPERS is a cost-sharing multiple employer defined benefit pension plan administered by Iowa Public Employees’
Retirement System. Membership is mandatory for employees of the City, except for those covered by another retirement
system. IPERS issues a stand-alone financial report which is available to the public by mail at P.O. Box 9117, Des
Moines, Iowa 50306-9117 or at www.ipers.org.
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, any time after reachin g 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.
Protection occupation members may retire at normal retirement age which is generally at age 55 and may retire any time
after reaching age 50 with 22 or more years of covered employment. The formula used to calculate a protection
occupation members’ monthly IPERS benefit includes:
• 60% of average salary after completion of 22 years of service, plus an additional 1.5% of average salary for years
of service greater than 22 but not more than 30 years of service.
• The member’s highest three-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 % 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% 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 for the rest of
the member’s lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July
1990 receive a guaranteed dividend with their regular November benefit payments.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-42-
NOTE 5 PENSION PLAN (continued)
Contributions
Contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS’ Contribution
Rate Funding Policy and Actuarial Amortization Method. State statute limits the amount rates can increase or decrease
each year to 1 percentage point. IPERS Contribution Rate Funding Policy re quires 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 2022, pursuant to the required rate, regular members contributed 6.29% of covered payroll, and the City
contributed 9.44% of covered payroll, for a total rate of 15.73%. Protection occupation members contributed 6.21% of
covered payroll, and the City contributed 9.31% of covered payroll, for a total rate of 15.52%.
The City’s total contributions to IPERS for the year ended June 30, 2022 were $1,050,356.
Net Pension Liability (Asset), Pension Expense, Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2022, the City reported a liability (asset) of $(3,192,770) for its proportionate share of the net pension liability
(asset). The net pension liability (asset) was measured as of June 30, 2021, and the total pension liability (asset) used
to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The City’s proportion
of the net pension liability (asset) was based on the City’s share of contributions to IPERS relative to the contributions of
all IPERS participating employers. The following table summarizes the change in the City’s proportionate share:
June 30
2021 2020 Change
City’s proportionate share 0.924832% 0.074768% 0.850064%
For the year ended June 30, 2022, the City recognized pension expense (gain) of $(529,498). At June 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience $ 333,564 $ 82,336
Change in assumptions 99,342 3,677
Net difference between projected and actual earnings on IPERS’ investments – 6,583,868
Change in proportion and difference between City contributions and
proportionate share of contributions 361,827 29,956
City contributions subsequent to the measurement date 1,050,356 –
Totals $1,845,089 $6,699,837
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-43-
NOTE 5 PENSION PLAN (continued)
$1,050,356 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 (asset) in the year
ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense (gain) as follows:
Year ending June 30, Total
2023 $(1,417,873)
2024 (1,466,971)
2025 (1,371,829)
2026 (1,689,201)
2027 40,770
Totals $(5,905,104)
There were no non-employer contributing entities at IPERS.
Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Rate of inflation (effective June 30, 2017) 2.60% per annum.
Rates of salary increase (effective June 30, 2017) 3.25 to 16.25% average, including inflation. Rates vary
by membership group.
Long-term investment rate of return 7.00%, compounded annually, net of investment
(effective June 30, 2017) expense, including inflation
Wage growth (effective June 30, 2017) 3.25% per annum based on 2.60% inflation and
0.65% real wage inflation.
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an economic assumption
study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.
Mortality rates used in the 2021 valuation were based on the RP-2014 Employee and Healthy Annuitant Tables with MP-
2017 generational adjustments.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-44-
NOTE 5 PENSION PLAN (continued)
The long-term expected rate of return on IPERS’ investments was determined using a building-block method in which
best-estimate ranges of expected future real rates (expected returns, net of 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-Term Expected
Asset Class Asset Allocation Rate of Return
Domestic Equity 22.0% 4.43%
International Equity 17.5 6.01
Global Smart Beta Equity 6.0 5.10
Core Plus Fixed Income 26.0 0.29
Public Credit 4.0 2.08
Cash 1.0 (0.25)
Private Equity 13.0 9.51
Private Real Assets 7.5 4.63
Private Credit 3.0 2.87
Total 100.0%
Discount Rate
The discount rate used to measure the total pension liability (asset) was 7.0%. The projection of cash flows used to
determine the discount rate assumed that employee contributions will be made at the contractually required rate and
contributions from the City will be made at contractually required rates, actuarially determined. B ased on those
assumptions, IPERS’ fiduciary net position was projected to be available to make all projected future benefit payments to
current active and inactive employees. Therefore, the long-term expected rate of return on IPERS’ investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability (asset) calculated using the discount rate
of 7.0%, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated
using a discount rate that is 1% lower (6.0%) or 1% higher (8.0%) than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.0%) (7.0%) (8.0%)
City’s proportionate share of the net pension liability (asset) $2,773,087 $(3,192,770) $(8,189,245)
IPERS’ Fiduciary Net Position
Detailed information about IPERS’ fiduciary net position is available in the separately issued IPERS financial report which
is available on IPERS’ website at www.ipers.org.
Payables to IPERS
At June 30, 2022, the City reported payables to IPERS of $41,846 for legally required City contributions and $24,776 for
legally required employee contributions withheld from employee wages which had not yet been remitted to IPERS.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-45-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City administers a single-employer benefit plan which provides medical and prescription drug benefits to retired
employees and their dependents under certain conditions. Group insurance benefits are established under Iowa Code
Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
OPEB Benefits
Individuals who are employed by the City and are eligible to participate in the group health plan are eligible to continue
healthcare benefits upon retirement. Retirees under age 65 pay the same premium for the medical and prescription drug
benefits as active employees, which results in an implicit rate subsidy and an OPEB liability.
Retired participants must be age 55 or older with 5 years of service at retirement. Employees covered by the plan make
contributions toward the plan premiums. At June 30, 2022, the following employees were covered by the benefit terms.
Inactive employees or beneficiaries currently receiving benefit payments 1
Active employees 125
Total 126
Total OPEB Liability
The City’s total OPEB liability of $673,323 was measured as of June 30, 2022, and was determined by an actuarial
valuation as of July 1, 2021.
Actuarial Assumptions
The OPEB liability as of June 30, 2022 was determined using the following actuarial assumptions and the entry age
normal actuarial cost method, applied to all periods included in the measurement.
Rate of inflation 3.0% per annum
Rates of salary increase 3.25% per annum
Discount rate 2.14% per annum
Healthcare cost trend rate 5.50% initial rate decreasing by .25% annually to
an ultimate rate of 5%
The discount rate used to measure the OPEB liability was 2.14% which reflects the index rate for 20-year tax-exempt
general obligation municipal bonds with an average rating of AA/Aa or higher as of the measurement dat e.
Mortality rates were based on the RP-2014 annuitant distinct mortality table adjusted to 2006 with MP-2021 generational
projection of future mortality improvement.
Annual retirement probabilities are based on varying rates by age and turnover probab ilities which mirror those used by
IPERS.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-46-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Changes in Total OPEB Liability
OPEB Liability
Total OPEB liability, July 1, 2021 $ 500,406
Changes for the year
Service cost 65,155
Interest 14,218
Changes in benefit terms (1,576)
Difference between expected and actual experience 30,610
Changes in assumptions 75,022
Benefit payments (10,512)
Net changes 172,917
Total OPEB liability, June 30, 2022 $ 673,323
Sensitivity of the City’s Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using a discount rate that is 1% lower (1.14%) or 1% higher (3.14%) than the current discount rate.
1% Discount 1%
Decrease Rate Increase
(1.14%) (2.14%) (3.14%)
Total OPEB liability $ 738,804 $ 673,323 $ 612,570
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate
The following presents the total OPEB liability, calculated using the current healthcare cost trend rate of 5.5% decreasing
to 5.0%, as well as the total OPEB liability calculated using a healthcare cost trend rate that is 1% lower (4.5% to 4.0%)
or 1% higher (6.5% to 6.0%) than the current rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
4.5% decreasing 5.5% decreasing 6.5% decreasing
to 4.0% to 5.0% to 6.0%
Total OPEB liability $ 579,388 $ 673,323 $ 787,470
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $80,897. At June 30, 2022, the City reported
deferred inflows of resources and deferred outflows of resources related to OPEB from the following sources:
Deferred Deferred
Inflows of Outflows of
Resources Resources
Differences between expected and actual experience $ (37,342) $ 54,776
Changes in assumptions or other inputs (39,358) 71,242
Totals $ (76,700) $ 126,018
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-47-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
The amount reported as deferred inflows of resources and deferred outflows of resources related to OPEB will be
recognized net of OPEB expense as follows:
Year ending June 30
2023 $ 3,100
2024 3,100
2025 3,100
2026 3,100
2027 3,100
Thereafter 33,816
Total $ 49,310
NOTE 7 INTERFUND TRANSFERS
The detail of interfund transfers for the year ended June 30, 2022 is as follows:
Transfer to Transfer from Amount
General Nonmajor governmental funds $ 2,600,000
Equipment revolving 30,000
Urban renewal TIF 504,570
3,134,570
Debt Service Governmental funds
Urban renewal TIF 9,778,913
Local option sales tax 1,097,969
Capital projects 175,941
Enterprise funds
Water 134,238
Nonmajor enterprise funds 150,651
11,337,712
Capital projects Nonmajor governmental funds 50,000
Water 250,000
Sewer 250,000
Gas 250,000
800,000
Nonmajor enterprise funds Capital projects 555,000
Equipment revolving General 3,500
Total $15,830,782
Transfers generally move resources from the fund statutorily required to collect the resources to the fund statutorily
required to expend the resources.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-48-
NOTE 8 DUE FROM AND DUE TO OTHER FUNDS
The detail of interfund receivables and payables at June 30, 2022 is as follows:
Payable Fund Receivable Fund Amount
Enterprise-Golf Course General $ 85,000
Enterprise-Water 100,000
Total $ 185,000
Amounts due from Golf Course result from interfund loans to finance the Golf Course’s operations. Repayments will be
made from future revenues over the next several years.
NOTE 9 RISK MANAGEMENT
The City of Waukee is a member in the Iowa Communities Assurance Pool, as allowed by Chapter 670.7 of the Code of
Iowa. The Iowa Communities Assurance Pool (Pool) is a local government risk -sharing pool whose 794 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. 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 casualty
operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general and administrative
expenses, claims, claims expenses and reinsurance ex penses estimated for the fiscal 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 at a level
determined by the Board not to exceed 300 percent of the basis rate.
The Pool also provides property coverage. Members who elect such coverage make annual property operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses , reinsurance
premiums, losses and loss expenses for property risks estimated for the fiscal 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 fr om
capital and, if insufficient, by the subsequent year's member contributions.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its operating funds at
the time of payment to the risk pool. The City's contributions to the Pool for the year ended June 30, 2022 were $269,795.
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 $5 00,000 per claim. Claims exceeding
$500,000 are reinsured through reinsurance and excess risk-sharing agreements up to the amount of risk-sharing
protection provided by the City’s risk-sharing certificate. Property and automobile physical damage risks are retained by
the Pool up to $250,000 each occurrence, each location . Property risks exceeding $250,000 are reinsured through
reinsurance and excess risk-sharing agreements up to the amount of risk -sharing protection provided by the City’s risk-
sharing certificate.
The Pool's intergovernmental contract with its members provides that in the event a casualty claim, property loss, or series
of claims or losses exceeds the amount of risk-sharing protection provided by the City’s risk-sharing certificate, or in the
event a casualty claim, property loss or series of casualty claims or losses exhausts the Pool’s funds and any excess risk-
sharing recoveries, then payment of such claims or losses shall be the obligation of the respective individual m ember
against whom the claim was made or the loss was incurred.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-49-
NOTE 9 RISK MANAGEMENT (continued)
The City does not report a liability for losses in excess of reinsurance or excess risk -sharing recoveries unless it is deemed
probable that such losses have occurred and the amount of such loss can be reasonably estimated. Accordingly, at June
30, 2022, no liability has been recorded in the City's financial statements. As of June 30, 2022, settled claims have not
exceeded the risk pool or reinsurance coverage since the Pool's inception.
Members agree to continue membership in the Pool for a period of not less than one full year. After such period, a
member who has given 60 days' prior written notice may withdraw from the Pool. Upon withdrawal, paym ents for all
casualty 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. Upon withdrawal, a formula set forth in the Pool’s
intergovernmental contract with its members is applied to determine the amount (if any) to be refunded to the withdrawing
member.
The City also carries commercial insurance purchased from other insurers for coverage associated with workers
compensation. The City assumes liability for any deductibles, and claims in excess of coverage limitations. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
NOTE 10 EMPLOYEE HEALTH INSURANCE PLAN
The Iowa Governmental Health Care Plan was established to account for the partial self-funding of the City’s health
insurance benefit plan. The plan is funded by both employee and City contributions and is administered through a service
agreement with Iowa Governmental Health Care Plan. The agreement is subject to automatic renewal provisions. The
City assumes liability for claims up to the deductible of $5,000/$10,000 per single/family plan with a maximum out of
pocket expense of $7,350/$14,700 per single/family plan. The deductible and maximum out of pocket expense for the
City is reduced by the deductible amount paid by the employee of $200/$400 per single/family plan and employee
maximum out of pocket expense of $500/$1,000 per single/family plan. Claims in excess of deductibles are covered by
Iowa Governmental Health Care Plan.
Monthly payments of service fees and plan contributions to the Iowa Governmental Health Care Plan Fund are recorded
as expenditures from the operating funds. Under the administrative services agreement, monthly payments of service
fees and claims processed are paid to Employee Benefit Systems, who administers the plan. The City records the Plan
assets and related liabilities of the health plan in the General Fund. The City’s contribution to the plan for the year ended
June 30, 2022 was $282,872.
Amounts payable from the Iowa Governmental Health Care Plan at June 30, 2022 total $21,440, which is for incurred but
not reported (IBNR) and reported but not paid claims, which is included in accounts payable in these financial statements.
The amounts are based on actuarial estimates of the amounts necessary to pay prior year and current year claims and
to establish a reserve for catastrophic losses. A liability has been established based on the requirements of Governmental
Accounting Standards Board Statement No. 10, which requires a liability for claims be reported if information prior to the
issuance of the financial statements indicates it is probable a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated. Settlements have not exceeded the stop -loss
coverage in any of the past three years.
A reconciliation of changes in the aggregate liabilities for claims for the year ended June 30, 2022 is as follows:
Unpaid claims as of beginning of year $ 37,693
Incurred claims (including claims incurred but
not reported as of June 30) 251,301
Payments on claims (267,554)
Unpaid claims as of year end $ 21,440
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-50-
NOTE 11 COMMITMENTS
The City entered into contract commitments with contractors for the completion of several infrastructure construction
projects. The total contract commitments are approximately $77,000,000 of which approximately $59,000,000 has been
incurred as of June 30, 2022. The unpaid commitment balance is approximately $18,000,000 which will be funded by
current reserves in the capital projects funds and other sources.
The City, in equal partnership with a neighboring city, has entered into an agreement with the Iowa Department of
Transportation (IDOT) where the cities have agreed to reimburse in equal shares the IDOT’s construction cost for a new
interstate interchange which straddles the shared border of the two cities. The construction project was nearly complete
but not finalized at June 30, 2022. As a result, final repayment amounts and terms have not yet been formalized.
However, the cities and IDOT have agreed that payments will be made in ten annual equal principal -only installments. It
is currently estimated that each city’s share of the total project cost will be appro ximately $9 million. No liability for this
obligation has been recognized.
NOTE 12 URBAN RENEWAL DEVELOPMENT AGREEMENTS
The City has entered into development agreements for urban renewal projects. The agreements require the City to rebate
portions of the incremental property tax paid by the developer in exchange for development of commercial projects by the
developer. The total to be paid by the City under the agreements is not to exceed $46,567,895. During the year ended
June 30, 2022, the City rebated $1,376,485 of incremental property tax to developers. The outstanding balance of the
agreements at June 30, 2022 was $44,904,424.
The agreements are not a general obligation of the City and, due to their nature, are not recorded as a liability in the City’s
financial statements.
The agreements include an annual appropriation clause and, accordingly, only the amount payable in the succeeding
year on the agreements is subject to the constitutional debt limitation. The entire outstanding principal balance of
agreements not including an annual appropriation clause would be subject to the constitutional debt limitation.
In August 2017, the Waukee City Council approved a development agreement with a developer for th e construction of
data centers. The agreement calls for property tax abatements to the developer equal to approximately 71 percent of the
taxable value added by the development over a twenty year period beginning with the year each data center is first
assessed for taxation. In consideration of the property tax abatements, the developer has made certain commitments,
including maintaining certain employment levels and achieving a minimum assessed value for each data center of
$200,000,000. In addition, the developer has committed to contributing to a public improvements fund $500,000 annually
for each data center constructed for a twenty year period, not to exceed $100,000,000 in total. In 2022, the developer
contributed $500,000 under this agreement.
NOTE 13 CONTINGENCIES
The City is involved in lawsuits arising in the ordinary course of activities. While these cases ma y have future financial
effect, management, based on advice of counsel, believes that their ultimate outcome will not be material to the financial
statements.
NOTE 14 TAX ABATEMENTS
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that
results from an agreement between one or more governments and an individual or entity in which (a) one or more
governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises
to take a specific action after the agreement has been entered into that contributes to economic development or otherwise
benefits the governments or the citizens of those governments.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-51-
NOTE 14 TAX ABATEMENTS (continued)
City Tax Rebates
The City provides tax rebates for urban renewal and economic development projects with tax increment financing as
provided for in Chapter 15A and 403 of the Code of Iowa. For these types of projects, the Cit y enters into agreements
with developers which require the City, after developers meet the terms of the agreements, to rebate a portion of the
property tax paid by the developers, to pay the developers an economic development grant or to pay the developers a
predetermined dollar amount. No other commitments were made by the City as part of these agreements.
For the year ended June 30, 2022, $535,902 of property tax was diverted from the City under the urban renewal and
economic development projects.
NOTE 15 JOINT VENTURE
The City is a participating community in the Des Moines Metropolitan Wastewater Reclamation Authority joint venture.
This joint venture provides primary and secondary treatment of the sewer flows for the participating communities. The
Amended and Restated Agreement for the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) was
effective on July 1, 2004, with the second amended and restated agreement becoming effective June 11, 2014. This
agreement amended and restated the previous Integrated Community Area (I.C.A.) Agreement to provide continued
operation, improvements and expansion. The WRA Agreement establishes the WRA as a separate legal entity with its
own Board. The WRA Agreement creates an independent governance structure, establishes an independent bonding
authority for the WRA and provides a framework for additional communities to participate. The City of Waukee joined the
WRA effective July 1, 2007.
Annually, the WRA establishes an allocation to all participating communities based on operations, maintenance, debt
service and reserve requirements. Allocations are based on wastewater reclamation facility flows and are adjusted
prospectively for differences in budgeted flows and actual flows.
The City retains an ongoing financial responsibility to the WRA since it is obligated in some manner for the debts of the
joint venture through the annual allocation. Although the debt of the WRA is to be paid solely and only from WRA
revenues, the participating communities in the joint venture cannot withdraw from the joint venture while any of the bonds
issued during the time the entity was a participating community are still outstanding. The WRA Sewer Revenue Bonds
Series 2015E and 2021 include provisions that place the WRA debt service requirements on the same parity as other
debts of the participating communities.
In May of 2015, the WRA issued Sewer Revenue Bonds Series 2015E for the purpose of refunding Series 2006A. During
fiscal year 2021, the WRA issued Sewer Revenue Bonds Series 2021 for the purpose of refunding Series 2013B. The
WRA Agreement requires the debt service of these bonds to be allocated to the participating communities based on the
WRA flows of the core communities and expansion communities of each calendar year. As of June 30, 2022, the Series
2015E and 2021 bonds had a combined balance of $59,910,000 and the City of Waukee’s estimated future allocation
based on the WRA flows is currently $2,460,085.
The WRA Agreement requires the debt service on all State Revolving Loans issued after July 1, 2004 to be allocated to
the participating communities based on the WRA flow of the core communities and expansion communities each calendar
year. As of June 30, 2022, the outstanding balance of State Revolving Loan issues totaled $34 2,162,943 and the City of
Waukee’s estimated future allocation is currently $11,405,096.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-52-
NOTE 15 JOINT VENTURE (continued)
The WRA Agreement does not provide for the determinati on of an equity interest for the participating communities.
Withdrawing from the joint venture is a forfeit of all reversionary interest and no compensation will be paid. Since there is
no specific and measurable equity interest in the WRA Agreement, no investment in the joint venture has been reported
by the City.
The WRA issues separate financial statements that may be obtained at 3000 Vandalia Road, Des Moines, Iowa 50317 -
1346.
NOTE 16 SUBSEQUENT EVENTS
In July 2022, the City issued $11,755,000 in General Obligation Bonds Series 2022A for the purpose of providing funds
for urban renewal projects, street improvements, and utility improvements as deemed necessary.
NOTE 17 ACCOUNTING CHANGE
Governmental Accounting Standards Board Statement No. 87, Leases, was implemented during fiscal year 2022. The
new requirements require the reporting of certain lease assets and liabilities which were previously not reported. The
result of these changes had no effect on the beginning net portion.
NOTE 18 PROSPECTIVE ACCOUNTING CHANGE
Governmental Accounting Standards Board has issued Statement No. 96, Subscription Based Information Technology
Arrangements. This statement will be implemented for the fiscal year ending June 30, 2023. The revised requirements
of this statement will require reporting certain assets and liabilities for the right -to-use another party’s information
technology software alone or in combination with tangible capital assets that are not currently reported.
-53-
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-54-
City of Waukee, Iowa
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Required Supplementary Information
For the last five years
2022 2021 2020 2019 2018
Service cost $ 65,155 $ 43,554 $ 42,183 $ 36,277 $ 35,135
Interest 14,218 17,071 15,270 15,487 13,952
Changes of benefit terms (1,576) – – – –
Differences between expected and
actual experience 30,610 – (48,220) – 38,762
Changes in assumptions 75,022 – 2,242 – (57,754)
Benefit payments (10,512) (8,843) (5,878) (10,128) (4,547)
Net change in total OPEB liability 172,917 51,782 5,597 41,636 25,548
Total OPEB liability, beginning of year 500,406 448,624 443,027 401,391 375,843
Total OPEB liability, end of year $ 673,323 $ 500,406 $ 448,624 $ 443,027 $ 501,391
Covered-employee payroll $9,612,608 $8,059,332 $7,805,648 $6,878,139 $6,661,636
Total OPEB liability as a percentage of
covered-employee payroll 7.00% 6.21% 5.75% 6.44% 6.03%
NOTES TO SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Changes in benefit terms
There were no significant changes in benefit terms.
Changes in assumptions
Changes in assumptions reflect the effects of changes in the discount rate each period. The following are the discount
rates used in each period.
Year ended June 30, 2017 4.50%
Year ended June 30, 2018 3.58%
Year ended June 30, 2019 3.58%
Year ended June 30, 2020 3.50%
Year ended June 30, 2021 3.50%
Year ended June 30, 2022 2.14%
See accompanying independent auditor's report.
-55-
City of Waukee, Iowa
BUDGETARY COMPARISON SCHEDULE OF REVENUES,
EXPENDITURES/EXPENSES AND CHANGES IN BALANCES - BUDGET AND ACTUAL -
GOVERNMENTAL FUNDS AND PROPRIETARY FUNDS
Required Supplementary Information
Year ended June 30, 2022
Governmental Proprietary Budgetary Total
funds actual funds actual adjustments actual
REVENUES
Property taxes $17,561,303 $ – $ – $ 17,561,303
Tax increment financing 8,290,499 – – 8,290,499
Other city tax 5,186,067 – – 5,186,067
Licenses and permits 3,609,343 – – 3,609,343
Use of money and property 476,242 243,723 – 719,965
Intergovernmental 6,737,803 1,794,916 – 8,532,719
Charges for service 916,042 32,687,289 – 33,603,331
Miscellaneous 3,110,959 329,490 – 3,440,449
Total revenues 45,888,258 35,055,418 – 80,943,676
EXPENDITURES/EXPENSES
Public safety 8,787,632 – – 8,787,632
Public works 3,842,050 – – 3,842,050
Health and social services 35,000 – – 35,000
Culture and recreation 3,076,562 – – 3,076,562
Community and economic development 2,036,364 – – 2,036,364
General government 1,589,810 – – 1,589,810
Debt service 15,105,673 – (175,941) 14,929,732
Capital projects 34,055,866 – 175,941 34,231,807
Business type activities – 20,644,551 8,535,212 29,179,763
Total disbursements 68,528,957 20,644,551 8,535,212 97,708,720
Excess (deficiency) of revenues over (under)
expenditures/expenses (22,640,699) 14,410,867 (8,535,212) (16,765,044)
OTHER FINANCING SOURCES (USES), NET 22,430,545 (408,529) – 22,022,016
Excess (deficiency) of revenues and other
financing sources over expenditures/expenses
and other financing uses (210,154) 14,002,338 (8,535,212) 5,256,972
BALANCES, beginning of year 52,273,414 88,914,859 – 141,188,273
BALANCES, end of year $52,063,260 $102,917,197 $(8,535,212) $146,445,245
-56-
Budgeted amounts Final to actual
Original Final variance
$ 17,483,278 $ 17,483,278 $ 78,025
8,747,646 8,747,646 (457,147)
3,287,696 3,339,696 1,846,371
2,383,430 2,584,130 1,025,213
335,780 432,200 287,765
3,993,852 5,955,289 2,577,430
25,849,200 33,163,200 440,131
280,900 565,730 2,874,719
62,361,782 72,271,169 8,672,507
9,370,780 9,390,490 602,858
4,073,481 4,253,906 411,856
51,000 51,000 16,000
3,220,745 3,293,535 216,973
2,097,530 2,266,700 230,336
1,812,620 2,739,725 1,149,915
14,538,957 14,973,500 43,768
44,945,000 44,945,000 10,713,193
27,569,163 33,871,668 4,691,905
107,679,276 115,785,524 18,076,804
(45,317,494) (43,514,355) 26,749,311
21,315,000 21,373,400 648,616
(24,002,494) (22,140,955) 27,397,927
104,299,557 104,299,557 36,888,716
$ 80,297,063 $ 82,158,602 $64,296,643
-57-
City of Waukee, Iowa
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING
Year ended June 30, 2022
The budgetary comparison is presented as Required Supplementary Information in accordance with Government
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.
In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and
hearing for all funds. The annual budget may be amended during the year utilizing similar statutorily prescribed
procedures. Encumbrances are not recognized on the budget and appropriations lapse at year end.
Formal and legal budgetary control is based upon nine major classes of disbursements known as functions, not by fund.
These nine functions are: public safety, public works, health and social services, culture and recreation, community and
economic development, general government, debt service, capital projects and business type activities. Function
disbursements required to be budgeted include disbursements for the General Fund, Special Revenue Funds, Debt
Service Fund, Capital Projects Fund and Enterprise Funds. Although the budget document presents function
disbursements by fund, the legal level of control is at the aggregated function level, not by fund. During the year, one
budget amendment increased budgeted disbursements by $8,106,248. This budget amendment is reflected in the final
budgeted amounts.
For the year ended June 30, 2022, the City’s disbursements did not exceed the amount budgeted.
-58-
City of Waukee, Iowa
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Iowa Public Employees’ Retirement System
For the Last Eight Years *
(In Thousands)
Required Supplementary Information
June 30
2022 2021 2020 2019 2018 2017 2016 2015
City’s proportion of the net
pension liability 0.924832% 0.074768% 0.064552% 0.068199% 0.064287% 0.060546% 0.053387% 0.045117%
City’s proportionate share of
the net pension liability (asset) $(3,193) $5,252 $3,738 $4,315 $4,282 $3,810 $2,638 $1,829
City’s covered-employee payroll $11,232 $9,852 $9,056 $8,178 $7,814 $6,949 $6,412 $6,005
City’s proportionate share of the net
pension liability as a percentage
of its covered-employee payroll (28.42)% 53.31% 41.28% 52.76% 54.80% 54.83% 41.14% 30.49%
Plan fiduciary net position as a
percentage of the total pension
liability 100.81% 82.90% 85.45% 83.62% 82.21% 81.82% 85.19% 84.61%
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full ten -
year trend is compiled, the City will present information for those years for which information is available.
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June
30 of the preceding fiscal year.
See accompanying independent auditor’s report.
-59-
City of Waukee, Iowa
SCHEDULE OF CITY CONTRIBUTIONS
Iowa Public Employees’ Retirement System
Last Ten Fiscal Years
(In Thousands)
Required Supplementary Information
Year ended June 30
2022 2021 2020 2019
Statutorily required contribution $ 1,050 $ 940 $ 875 $ 827
Contributions in relation to the statutorily
required contribution 1,050 940 875 827
Contribution deficiency (excess) $ – $ – $ – $ –
City’s covered-employee payroll $11,232 $9,852 $9,056 $8,178
Contributions as a percentage of
covered-employee payroll 9.3% 9.5% 9.7% 10.1%
See accompanying independent auditor’s report.
-60-
Year ended June 30
2018 2017 2016 2015 2014 2013
$ 723 $ 641 $ 578 $ 550 $ 497 $ 423
723 641 578 550 497 423
$ – $ – $ – $ – $ – $ –
$7,814 $6,949 $6,412 $6,005 $5,339 $4,633
9.3% 9.2% 9.0% 9.2% 9.3% 9.1%
See accompanying independent auditor’s report.
-61-
City of Waukee, Iowa
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION LIABILITY
Year ended June 30, 2022
CHANGES OF BENEFIT TERMS
There are no significant changes in benefit terms.
CHANGES OF ASSUMPTIONS
The 2018 valuation implemented the following refinements as a result of a demographic assumption study dated June 28,
2018:
• Changed mortality assumptions to the RP-2014 mortality tables with mortality improvements modeled using Scale
MP-2017.
• Adjusted retirement rates.
• Lowered disability rates.
• Adjusted the probability of a vested regular member electing to receive a deferred benefit.
• Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a resu lt of an experience study dated March 24, 2017:
• Decreased the inflation assumption from 3.00% to 2.60%.
• Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per year.
• Decreased the discount rate from 7.50% to 7.00%.
• Decreased the wage growth assumption from 4.00% to 3.25%.
• Decreased the payroll growth assumption from 4.00% to 3.25%.
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%.
• Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per year.
• Adjusted male mortality rates for retirees in the regular membership group.
• Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64.
• 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.
See accompanying independent auditor’s report.
-62-
SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-63-
City of Waukee
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
ASSETS
Cash and investments $1,335,133 $ 57,522 $2,535,478 $ 6,481 $ 248,699 $4,183,313
Receivables
Property tax
Delinquent – 3,311 – – – 3,311
Succeeding year property tax – 2,986,865 – – – 2,986,865
Special assessments – – – – 115,548 115,548
Other 18,819 – – – – 18,819
Due from other governments 253,325 – – – – 253,325
Inventory 196,985 – – – – 196,985
Total assets $1,804,262 $3,047,698 $2,535,478 $ 6,481 $ 364,247 $7,758,166
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 333,459 $ – $ – $ – $ – $ 333,459
Accrued compensation 24,151 – – – – 24,151
Total liabilities 357,610 – – – – 357,610
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax – 2,986,865 – – – 2,986,865
Special assessments – – – – 113,681 113,681
Total deferred inflows of resources – 2,986,865 – – 113,681 3,100,546
FUND BALANCES
Nonspendable 196,985 – – – – 196,985
Restricted for
Debt service – – – – 250,566 250,566
Other 1,249,667 60,833 2,535,478 6,481 – 3,852,459
Total fund balances 1,446,652 60,833 2,535,478 6,481 250,566 4,300,010
Total liabilities, deferred inflows
of resources and fund balances $1,804,262 $3,047,698 $2,535,478 $ 6,481 $ 364,247 $7,758,166
See accompanying independent auditor's report.
-64-
City of Waukee
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year ended June 30, 2022
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
REVENUES
Property taxes $ – $2,575,202 $ – $ – $ – $2,575,202
Other city taxes – – – – 15,750 15,750
Licenses and permits 18,184 – – – – 18,184
Use of money and property – 8,871 10,300 – 5,426 24,597
Intergovernmental 3,136,877 17,074 – – – 3,153,951
Miscellaneous 96,702 – 500,000 – – 596,702
Total revenues 3,251,763 2,601,147 510,300 – 21,176 6,384,386
EXPENDITURES
Operating
Public works 3,080,186 – – – – 3,080,186
Capital projects 382,181 – – – – 382,181
Total expenditures 3,462,367 – – – – 3,462,367
Excess (deficiency) of revenues
over (under) expenditures (210,604) 2,601,147 510,300 – 21,176 2,922,019
OTHER FINANCING SOURCES (USES)
Sale of capital assets 42,010 – – – – 42,010
Operating transfers out (50,000) (2,600,000) – – – (2,650,000)
Total other financing sources (uses) (7,990) (2,600,000) – – – (2,607,990)
NET CHANGE IN FUND BALANCES (218,594) 1,147 510,300 – 21,176 314,029
FUND BALANCES, beginning 1,665,246 59,686 2,025,178 6,481 229,390 3,985,981
FUND BALANCES, ending $1,446,652 $ 60,833 $2,535,478 $ 6,481 $ 250,566 $4,300,010
See accompanying independent auditor's report.
-65-
City of Waukee, Iowa
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
June 30, 2022
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
ASSETS
Current assets
Cash and investments $ 688,441 $ 70,132 $1,272,240 $2,030,813
Receivables
Customer accounts 151,022 70,305 115,887 337,214
Total current assets 839,463 140,437 1,388,127 2,368,027
Noncurrent assets
Restricted cash and investments – – 14,493 14,493
Net pension asset – 58,391 51,403 109,794
Capital assets, net of accumulated depreciation – – 3,548,900 3,548,900
Total noncurrent assets – 58,391 3,614,796 3,673,187
Total assets 839,463 198,828 5,002,923 6,041,214
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows – 33,744 29,706 63,450
OPEB related deferred outflows – 1,912 3,480 5,392
Total deferred outflows of resources – 35,656 33,186 68,842
LIABILITIES
Current liabilities
Accounts payable 146,006 3,862 51,242 201,110
Accrued compensation – 7,498 7,566 15,064
Compensated absences – 12,993 7,905 20,898
Direct borrowings and placements – – 65,000 65,000
Interest payable – – 417 417
Total current liabilities 146,006 24,353 132,130 302,489
Noncurrent liabilities
Direct borrowings and placements – – 205,000 205,000
Total OPEB liability – 10,215 18,594 28,809
Total noncurrent liabilities – 10,215 223,594 233,809
Total liabilities 146,006 34,568 355,724 536,298
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows – 122,529 107,866 230,395
OPEB related deferred inflows – 1,164 2,118 3,282
Total deferred inflows of resources – 123,693 109,984 233,677
NET POSITION
Net investment in capital assets – – 3,491,232 3,491,232
Restricted for bond retirement – – 14,076 14,076
Unrestricted 693,457 76,223 1,065,093 1,834,773
Total net position $ 693,457 $ 76,223 $4,570,401 $5,340,081
See accompanying independent auditor's report.
-66-
City of Waukee, Iowa
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2022
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
OPERATING REVENUES
Charges for service $1,596,284 $ 439,354 $1,394,238 $3,429,876
Miscellaneous 9,821 – 5,000 14,821
Total operating revenues 1,606,105 439,354 1,399,238 3,444,697
OPERATING EXPENSES
Business type activities
Cost of sales and services 1,636,664 404,729 708,546 2,749,939
Depreciation and amortization – 5,449 169,120 174,569
Total operating expenses 1,636,664 410,178 877,666 2,924,508
Operating income (loss) (30,559) 29,176 521,572 520,189
NONOPERATING REVENUES (EXPENSES)
Interest income 2,655 284 3,533 6,472
Interest expense and fiscal charges – – (5,282) (5,282)
Total nonoperating revenues (expenses) 2,655 284 (1,749) 1,190
Income (loss) before transfers (27,904) 29,460 519,823 521,379
Transfers in – – 555,000 555,000
Transfers (out) – – (150,651) (150,651)
– – 404,349 404,349
CHANGE IN NET POSITION (27,904) 29,460 924,172 925,728
NET POSITION, beginning 721,361 46,763 3,646,229 4,414,353
NET POSITION, ending $ 693,457 $ 76,223 $4,570,401 $5,340,081
See accompanying independent auditor's report.
-67-
City of Waukee, Iowa
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2022
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customer and users $1,593,713 $ 447,042 $1,386,863 $3,427,618
Cash received from other revenues 9,821 – 105,000 114,821
Cash paid for personal services – (257,191) (451,246) (708,437)
Cash paid to supplies (1,621,605) (177,584) (284,786) (2,083,975)
Net cash flows from operating activities (18,071) 12,267 755,831 750,027
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer to other funds – – (150,651) (150,651)
Transfers from other funds – – 555,000 555,000
Net cash flows from noncapital financing activities – – 404,349 404,349
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets – – (285,685) (285,685)
Principal paid on direct borrowings and placements – – (65,000) (65,000)
Interest and fiscal charges paid – – (5,369) (5,369)
Net cash flows from capital and related financing activities – – (356,054) (356,054)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,655 284 3,533 6,472
Net cash flows from investing activities 2,655 284 3,533 6,472
NET CHANGE IN CASH AND CASH EQUIVALENTS (15,416) 12,551 807,659 804,794
CASH AND CASH EQUIVALENTS, beginning 703,857 57,581 478,102 1,239,540
CASH AND CASH EQUIVALENTS, ending $ 688,441 $ 70,132 $1,285,761 $2,044,334
See accompanying independent auditor's report.
-68-
City of Waukee, Iowa
COMBINING STATEMENT OF CASH FLOWS (continued)
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2022
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
RECONCILATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ (30,559) $ 29,176 $ 521,572 $ 520,189
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities
Depreciation expense – 5,449 169,120 174,569
Change in assets, deferred outflows, liabilities and
deferred inflows
Customer accounts receivable (2,571) 7,688 (7,375) (2,258)
Due from other governments – – 100,000 100,000
Accounts payable, net of capital assets 15,059 131 (5,195) 9,995
Accrued compensation – (1,250) (2,120) (3,370)
Compensated absences – 1,375 3,505 4,880
Net pension liability – (156,949) (137,559) (294,508)
Deferred outflows of resources – 5,735 3,349 9,084
Deferred inflows of resources – 119,130 105,035 224,165
OPEB liability – 1,782 5,499 7,281
Net cash flows from operating activities $ (18,071) $ 12,267 $ 755,831 $ 750,027
RECONCILIATION OF CASH AND CASH EQUIVALENTS
AT YEAR END TO SPECIFIC ASSETS INCLUDED ON
THE COMBINING STATEMENT OF NET POSITION
Current assets
Cash and investments $ 688,441 $ 70,132 $1,272,240 $2,030,813
Restricted assets - cash and investments
Revenue note and interest sinking account – – 14,493 14,493
Less items not meeting the definition of cash equivalents
Certificated of deposit – – (972) (972)
Cash and cash equivalents at year end $ 688,441 $ 70,132 $1,285,761 $2,044,334
See accompanying independent auditor's report.
-69-
City of Waukee, Iowa
SCHEDULE OF REVENUES BY SOURCE AND EXPENDITURES BY FUNCTION -
ALL GOVERNMENTAL FUNDS
For the last ten years
Modified Accrual Basis
2022 2021 2020 2019
REVENUES
Property tax $17,561,303 $16,442,792 $15,148,227 $13,264,907
Tax increment financing 8,290,499 6,715,401 5,198,896 4,130,856
Other city tax 5,186,067 3,654,633 3,390,034 2,598,522
Licenses and permits 3,609,343 2,152,133 2,319,665 2,427,879
Use of money and property 476,242 299,770 645,933 934,034
Intergovernmental 6,737,803 4,107,086 4,085,765 5,368,170
Charges for service 916,042 841,730 615,964 471,715
Miscellaneous 3,110,959 2,102,418 1,642,806 785,244
Totals $45,888,258 $36,315,963 $33,047,290 $29,981,327
EXPENDITURES
Operating
Public safety $ 8,787,632 $ 7,661,959 $ 7,097,460 $ 6,206,481
Public works 3,842,050 2,881,426 2,450,087 2,158,676
Health and social services 35,000 79,000 – 800
Culture and recreation 3,076,562 2,354,529 2,231,556 2,125,735
Community and economic development 2,036,364 844,878 862,639 991,664
General government 1,589,810 1,379,753 1,119,735 1,139,586
Debt service 15,105,673 12,529,759 9,592,326 8,859,158
Capital projects 34,055,866 33,050,205 13,721,659 16,764,881
Totals $68,528,957 $60,781,509 $37,075,462 $38,246,981
See accompanying independent auditor's report.
-70-
Modified Accrual Basis
2018 2017 2016 2015 2014 2013
$11,935,530 $ 9,985,457 $ 9,436,301 $ 8,385,843 $ 7,666,911 $ 7,133,514
3,549,942 3,414,595 3,229,861 3,204,146 3,017,853 3,427,898
59,400 35,436 27,921 133,216 60,988 39,355
1,287,456 1,594,670 1,288,941 1,391,499 1,057,350 639,233
525,131 325,215 195,336 182,503 222,405 210,762
5,921,270 4,250,128 5,241,337 5,602,222 2,539,186 3,713,932
546,674 540,001 351,341 414,059 597,042 728,310
255,233 479,481 405,168 385,164 281,147 1,058,091
$24,080,636 $20,624,983 $20,176,206 $19,698,652 $15,442,882 $16,951,095
$ 5,443,568 $ 4,839,355 $ 4,281,395 $ 3,543,201 $ 3,286,146 $ 2,912,583
1,935,403 1,997,301 2,297,252 2,281,384 2,241,516 1,580,884
700 – 5,100 4,800 16,500 12,750
2,039,626 1,838,317 1,763,428 1,599,802 1,457,105 2,010,987
1,387,462 1,206,432 1,211,082 760,100 910,021 618,937
1,074,305 818,853 817,880 872,753 757,317 785,443
7,227,132 8,930,321 7,507,909 6,421,577 5,996,633 4,642,544
25,490,622 10,369,279 11,339,024 19,067,964 9,226,292 5,976,606
$44,598,818 $29,999,858 $29,223,070 $34,551,581 $23,891,530 $18,540,734
See accompanying independent auditor's report.
-71-
City of Waukee, Iowa
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended June 30, 2022
Assistance Agency or
listing pass-through Federal
Federal Grantor/Pass-Through/Grantor/Grant Description number number expenditures
U.S. Department of the Treasury
Direct
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A $1,805,930
U.S. Department of Justice
Passed through Iowa Department of Homeland Security
Bulletproof Vest Partnership Program 16.607 N/A 13,602
Total federal expenditures $1,819,532
NOTE 1 BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of City of
Waukee under programs of the federal government for the year ended June 30, 2022. The information in this Schedule
is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations, Part 200 Uniform
Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because
the Schedule presents only a selected portion of the operations of City of Waukee, it is not intended to a nd does not
present the financial position, changes in financial position or cash flows of City of Waukee.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable
or are limited as to reimbursement.
Indirect Cost Method
City of Waukee has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
-72-
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
Waukee, Iowa
We have audited in accordance with the 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, each major fund, and the aggregate remaining fund information of
City of Waukee, Iowa (the City), as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated December 2, 2022.
Report on 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) as a basis for designing 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.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected on a timely basis. 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.
Our consideration of internal control 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. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
-73-
Report on 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 an immaterial instance of
noncompliance or other matters which is described in 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, 2022 are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City. Since our audit was based on tests and samples, not all
transactions that might have had an impact on the comments were necessarily audited. The comments
involving statutory and other legal matters are not intended to constitute legal interpretations of those
statutes.
City’s Response to the Finding
The City’s response to the finding identified in our audit is described in the accompanying schedule of
findings and questioned costs. The City’s response was not subject to the auditing procedures applied
in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of inter nal 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.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
December 2, 2022
-74-
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and
Members of the City Council
Waukee, Iowa
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Waukee’s (the City) compliance with the types of compliance requirements
identified as subject to audit in the OMB 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, 2022. The City’s major federal
program is identified in the summary of auditor’s results section of the accompanying schedule of findings
and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above
that could have a direct and material effect on each of its major federal program for the year ended June 30,
2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the
Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section
of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of the City’s compliance with the compliance requirements
referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal
programs.
-75-
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when
it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Noncompliance with the compliance requirements referred to above is considered material
if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made
by a reasonable user of the report on compliance about the City’s compliance with the requirements of each
major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in orde r to
design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such
opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control ov er
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 a
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
that material noncompliance with a type of compliance requirement of a federal pro gram 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.
-76-
Our consideration of internal control over compliance was for the li mited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in inter nal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that were not
identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
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 the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
December 2, 2022
-77-
City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year ended June 30, 2022
Part 1 – Summary of Independent Auditor’s Results
Financial Statements
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified opinion
Internal control over financial reporting:
➢ Material weakness(es) identified? Yes X No
➢ Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
➢ Material weakness(es) identified? Yes X No
➢ Significant deficiency(ies) identified? Yes X None Reported
Type of auditor’s report issued on compliance for major
federal programs: Unmodified opinion
➢ Any audit findings disclosed that are required
to be reported in accordance with 2 CFR
200.516(a)? Yes X No
Identification of major federal programs: Assistance Listing Number 21.027 – Coronavirus State
and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between type A and
type B programs: $750,000
Auditee qualified as low-risk auditee? Yes X No
-78-
City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2022
Part II—Findings Relating to the Financial Statements
INTERNAL CONTROL DEFICIENCIES
No matters were noted.
INSTANCES OF NONCOMPLIANCE
No matters were noted.
Part III—Findings and Questioned Costs for Federal Awards
INTERNAL CONTROL DEFICIENCIES
No matters were noted.
INSTANCES OF NONCOMPLIANCE
No matters were noted.
-79-
City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2022
Part IV—Other Findings Related to Required Statutory Reporting
IV-A-22 CERTIFIED BUDGET
Disbursements exceeded the amounts budgeted in the general government and debt service functions prior to
being amended in May 2022. Chapter 384.20 of the Code of Iowa states, in part, “Public monies may not be
expended or encumbered except under an annual or continuing appropriation.”
Recommendation
The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before
disbursements were allowed to exceed the budget.
Response
The City will work to amend future budgets prior to exceeding approved expenditures.
Conclusion
Response accepted.
IV-B-22 QUESTIONABLE EXPENDITURES
No expenditures were noted that may not meet the requirements of public purpose as defined in an Attorney
General’s opinion dated April 25, 1979.
IV-C-22 TRAVEL EXPENSE
No expenditures of City money for travel expenses of spouses of City officials and/or employees were noted.
IV-D-22 RESTRICTED DONOR ACTIVITY
No transactions were noted between the City, City officials, City employees and restricted donors, in
compliance with Chapter 68B of the Code of Iowa.
IV-E-22 BUSINESS TRANSACTIONS
We noted no business transactions between the City and City officials or employees in excess of $1,500.
IV-F-22 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 that the coverage is adequate for current operations.
IV-G-22 COUNCIL MINUTES
No transactions were found that we believe should have been approved in the Council minutes but were not.
-80-
City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2022
Part IV—Other Findings Related to Required Statutory Reporting (continued)
IV-H-22 DEPOSITS AND INVESTMENTS
No instances of noncompliance with the deposit and investment provisions of Chapters 12B and 12C of the
Code of Iowa and the City’s investment policy were noted.
IV-I-22 REVENUE BONDS AND NOTES
No instances of noncompliance with the City’s revenue bond and note provisions were noted.
IV-J-22 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, and no exceptions were noted.