HomeMy WebLinkAbout2024-12-02 F01 Presentation_FY2024 Audit ReportAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 2, 2024
AGENDA ITEM:Independent Auditor’s Final Report for the fiscal year ending June 30, 2024
FORMAT:Presentation
SYNOPSIS INCLUDING PRO & CON: A representative of Denman & Company, LLP will
present the audit.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION:
ATTACHMENTS: I. FY2024 Audit Report
PREPARED BY:Becky Schuett
REVIEWED BY:
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City of Waukee, Iowa
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2024
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 28-54
REQUIRED SUPPLEMENTARY INFORMATION 55
Schedule of changes in the City’s total OPEB liability, related ratios and notes 56
Budgetary comparison schedule of revenues, expenditures/expenses and changes in
balances—budget and actual—governmental funds and proprietary funds 57
Note to required supplementary information—budgetary reporting 58
Schedule of the City’s proportionate share of the net pension liability 59
Schedule of City contributions 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
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City of Waukee, Iowa
OFFICIALS
(Before January 2024)
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 2024
(After January 2024)
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
Courtney Clarke, Mayor January 2028
Chris Crone, Council Member January 2028
Ben Sinclair, Council Member January 2026
Rob Grove, Council Member January 2028
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 2025
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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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial
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, 2024, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
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 required 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.
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.
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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 material 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 is 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 design 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 56 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, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
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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 financial statements for the nine years ended June 30, 2023 (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 federal 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 basic financial statements.
The supplementary information is the responsibility of management and was 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 November 6, 2024, 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 agreements 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 CPA LLP
West Des Moines, Iowa
November 6, 2024
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_____________________________________________________________________________________________________________________________
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, 2024. We encourage readers to consider this information in conjunction with the City’s financial statements, which follow.
2024 FINANCIAL HIGHLIGHTS
• Revenues of the City’s Governmental Funds increased 9.3 %, or $ 4,533,983, from fiscal 2023 to fiscal 2024. Property and Other City Taxes increased $ 3,593,309, Tax Increment Financing increased $ 1,203,035, Licenses and Permits decreased $ 940,726, Intergovernmental decreased $ 471,043, Charges for Services increased $ 228,093, Use of Money/Property increased $ 2,642,989 and Miscellaneous decreased $ 1,721,674.
• Program expenditures of the City’s Governmental Funds increased 1.7 %, or $ 1,065,186 in fiscal 2024 from fiscal 2023. Public Safety expenses increased $ 1,821,945, Health and Social Services decreased $ 2,000, Community and Economic Development decreased $ 55,548, Culture and Recreation increased $ 710,772, Public Works increased $ 430,082, General Government increased $ 157,774, Debt Service increased $ 2,231,540 and Capital Projects decreased $ 4,229,379.
• The City has a net position of $ 406,566,892 on June 30, 2024 as compared to $ 352,870,060 on June 30, 2023. Of this amount, the net position of the Governmental Activities was $ 240,140,538 and the net position of the Business Type Activities was $ 166,426,354.
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 finances. 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 basic 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 presenting 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, Schedule of Revenues by Source and Expenditures by Function, and Schedule of Expenditures of Federal Awards.
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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 result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information which helps to answer this question. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources using the accrual basis of accounting and the economic resources measurement focus, which is similar to the accounting used 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, liabilities, and deferred inflows of resources with the difference reported as “net position”. Over time, increases or decreases in the City’s net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 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 fiscal 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 charges.
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 Sale 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 cash. 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 Funds. These funds report services for which the City charges customers for the service it provides. Proprietary funds are reported in the same way all activities are reported 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, and Storm Water. 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.
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Reconciliations between the government-wide financial statements and the fund financial statements follow the fund financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS 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 (in thousands of dollars) Governmental Activities Business Type Activities Total 2024 2023 2024 2023 2024 2023 Current and Other Assets $ 133,826 $ 95,637 $ 37,796 $ 35,786 $ 171,622 $131,423 Non-Current Assets 1,321 1,395 - - 1,321 1,395 Capital Assets 305,991 280,464 164,187 120,480 470,178 400,944 Total Assets 441,138 377,496 201,983 156,266 643,121 533,762 Deferred Outflows of Resources 3,370 2,069 507 341 3,877 2,410 Current Liabilities 16,473 14,048 5,487 5,977 21,960 20,025 Non-Current Liabilities 149,962 110,212 30,526 19,713 180,488 129,925 Total Liabilities 166,435 124,260 36,013 25,690 202,448 149,950 Deferred Inflows of Resources 37,933 33,197 49 156 37,982 33,353 Net Position: Net investment in Capital Assets 177,418 176,657 135,590 99,958 313,008 276,615 Restricted 47,687 34,327 1,355 1,032 49,042 35,359 Unrestricted 15,035 11,125 29,481 29,771 44,516 40,896 Total Net Position $ 240,140 $ 222,109 $ 166,426 $ 130,761 $ 406,566 $ 352,870 Net position of governmental activities increased $ 18,031,934, or 8.12%, over fiscal year 2023. Net position of business type activities increased $ 35,664,898, or 27.27%, over fiscal year 2023. The largest portion of the City’s net position 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 $ 44,516,276 at the end of this year.
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Changes in Net Position for the Year Ended June 30, 2024 (in thousands of dollars) Governmental Activities Business Type Activities Total 2024 2023 2024 2023 2024 2023 Revenues: Property Tax Levied and Other City Tax $ 23,494 $ 19,918 $ – $ – $ 23,494 $ 19,918 Tax Increment Financing 7,816 6,612 – – 7,816 6,612 Local Option Sales Tax 5,686 5,654 – – 5,686 5,654 Property Tax Replacement 415 554 – – 415 554 Unrestricted Interest 5,096 2,433 1,917 1,451 7,013 3,884 Operating Grants and Contributions 3,528 3,376 – – 3,528 3,376 Charges for Services 6,025 8,523 35,361 37,173 41,386 45,696 Capital Grants and Contributions 13,107 8,826 23,752 19,094 36,859 27,920 Gain from Disposal of Capital Assets 141 73 113 62 254 135 Grants/Contributions Not Restricted 675 500 – – 675 500 Miscellaneous 19 19 245 275 264 294 Total Revenues 66,002 56,488 61,388 58,055 127,390 114,543 Transfers 366 5,397 (366) (5,397) – – Total Revenues and Transfers $ 66,368 $ 61,885 $ 61,022 $ 52,658 $ 127,390 $ 114,543
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Governmental Activities Business Type Activities Total 2024 2023 2024 2023 2024 2023 Program Expenses Public Safety $ 12,333 $ 10,213 $ – $ – $ 12.333 $ 10,213 Public Works 19,606 9,737 – – 19,606 9,737 Health and Social Services 50 52 – – 50 52 Culture and Recreation 7,468 6,356 – – 7,468 6,356 Community and Economic Development 1,845 1,900 – – 1,845 1,900 General Government 2,965 1,824 – – 2,965 1,824 Interest on Long-Term Debt 4,069 2,790 – – 4,069 2,790 Business Type Activities – – 25,357 24,897 25,357 24,897 Total Expenses 48,336 32,872 25,357 24,897 73,693 57,769 Increase in Net Position 18,032 29,015 35,665 27,761 53,697 56,776 Net Position Beginning of Year 222,109 193,094 130,761 103,000 352,870 296,094 Net Position End of Year $ 240,141 $ 222,109 $ 166,426 $ 130,761 $ 406,567 $ 352,870
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The City decreased the property tax levy by $0.05 to $ 13.05 per $1,000 for FY24, while recognizing an increase of $ 4,779,332 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 $ 12,220,339, charges for services decreased by $ 4,310,588, gain from disposal of capital assets increased $ 119,446 and miscellaneous revenues decreased by $ 29,725. Overall revenues for governmental activities increased approximately $ 4,482,000 from the prior year. The cost of all governmental activities this year was approximately $ 48.3 million compared to approximately $ 32.9 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 ($ 25.7) million as some of the cost was paid by those directly benefited from the programs ($ 6,025,265) or by other governments and organizations which subsidized certain programs with grants and contributions ($ 16,635,605). Overall revenues for business type activities increased approximately $ 8,363,992 over the prior year. The cost of all business activities increased approximately $.5 million to $ 25.4 million compared to approximately $ 24.9 million last year.
INDIVIDUAL MAJOR FUND ANALYSIS
Governmental Fund Highlights As the City of Waukee completed the year, its governmental funds reported a combined fund balance of $ 91,053,632 at June 30, 2024, compared to $ 58,329,362 combined fund balance at June 30, 2023. The General Fund showed an increase of $ 3,564,509 from the prior year to $ 16,201,333. 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 2024 with a $ 6,191,724 balance compared to the prior year ending balance of $ 4,108,002. The Debt Service Fund ended fiscal 2024 with a $ 10,566,194 balance compared to the prior year ending balance of $7,745,488. Bond principal and interest payments increased by $ 2,048,101 in fiscal 2024. The Local Option Sales Tax Fund ended fiscal 2024 with a $10,966,391 balance compared to the prior year ending balance of $ 16,262,174. The Capital Projects Fund ended fiscal 2024 with a $ 43,503,798 balance compared to the prior year ending balance of $13,002,880.
Proprietary Fund Highlights
The Water Fund, which accounts for the operation and maintenance of the City’s water system, ended fiscal 2024 with a net position of $49,237,949 compared to the prior year ending net position balance of $ 38,120,018. The Sewer Fund, which accounts for the operation and maintenance of the City’s wastewater treatment and sanitary sewer system, ended fiscal 2024 with a net position of $ 64,438,305, compared to the prior year ending net position balance of $ 53,656,984. The Gas Fund, which accounts for the operation and maintenance of the City’s gas system, ended fiscal year 2024 with a net position of $ 24,491,690, compared to the prior year ending net position balance of $ 22,635,361. The Stormwater Fund, which accounts for the operation and maintenance of the City’s stormwater utility, ended fiscal year 2024 with a net position of $ 25,476,273, compared to the prior year ending net position balance of $ 13,821,277.
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BUDGETARY HIGHLIGHTS Over the course of the year, the City of Waukee amended its budget once in May of 2024. The amendment was required to cover unplanned disbursements, including program expenditures associated with a decrease to Community & Economic Development, and an increase to Public Safety, Debt Service, Enterprise Activities and Transfers Out; while also increasing revenue sources for Licenses and Permits, Use of Money and Property, Intergovernmental, Charges for Services, Other City Taxes, 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, traffic signals and other infrastructure. Capital assets for governmental activities totaled $ 305,991,096 (net of accumulated depreciation) at June 30, 2024. Capital assets for business type activities totaled $ 164,186,903 (net of accumulated depreciation) at June 30, 2024. 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 the SE Ashworth Road Corridor, improvements on the intersection of Ashworth with Ute, Phase 2 of the Warrior Lane Roundabout and the completion of some culvert and pond improvements, including the NW Douglas Parkway culvert and pond, the NW Sunrise Drive Culvert and the pond in the Waukee Towne Center. In addition to these projects, improvements to the Heart of the Warrior trail were also completed. For business type activities, the major additions included annual additions to the water, sewer and gas distribution systems. Construction in progress on June 30, 2024 for the City consists of several governmental activities projects including the continued construction of a second Public Safety building, as well as continued progress on the Stratford Crossing Park and the T Avenue Corridor project. Utility projects in progress include the 3rd Street Elevated Water Storage Tank Replacement, which is nearing completion, West Area Trunk Sewer phase 2, Northeast Outfall Sewer and Lift Station No 2 rehabilitation.
Long-Term Debt At June 30, 2024, the City had $ 149,961,981 in total non-current debt outstanding for governmental activities. Total non-current debt outstanding for business type activities was $ 30,526,390 at June 30, 2024. The City’s July 25, 2024 general obligation bond rating was upgraded to Aa1, assigned by national rating agency, Moody’s Investors Services. 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. Based on $3,416,185,614 of assessed valuation, the City’s outstanding general obligation debt of $ 143,577,437 or 84.06%, is below its constitutional debt limit of $ 170,809,281. Other obligations include accrued vacation pay, net OPEB liability and net pension liability. Additional information about the City’s long-term debt is presented in Note 4 to the financial statements.
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ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE Several economic factors affected decisions made by the City in setting its fiscal 2025 budget. The City of Waukee will experience a significant increase in General Fund revenues and expenditures from fiscal 2024 to fiscal 2025. The major factors that will play a role in this change are the increase in property tax revenues from increased valuations for fiscal 2025, 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 2025 with a fund balance of approximately $ 16,141,000, or a planned decrease of $ 60,000 from fiscal 2024. The tax levy rates per $1,000 of taxable valuation for fiscal 2025 were reduced by $0.10, with the current levy as provided below: General levy $8.13 Emergency Levy 0.00 Debt Service levy 3.32 Employee Benefits Levy 1.50 Total $12.95
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to present our citizens, taxpayers, customers, investors and creditors with a general overview 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.
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BASIC FINANCIAL STATEMENTS
See Notes to Financial Statements.
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City of Waukee, Iowa
STATEMENT OF NET POSITION
June 30, 2024
Primary Government
Governmental Business Type
Activities Activities Total
ASSETS
Current assets, unrestricted
Cash and investments $ 94,797,726 $ 31,871,558 $126,669,284
Receivables
Property tax
Delinquent 141,765 – 141,765
Succeeding year 36,385,602 – 36,385,602
Special assessments 97,886 – 97,886
Customer accounts – 2,287,719 2,287,719
Other 1,212,066 – 1,212,066
Due from other governments 817,761 – 817,761
Inventories 373,502 1,324,624 1,698,126
Total current assets, unrestricted 133,826,308 35,483,901 169,310,209
Restricted cash and investments – 2,311,732 2,311,732
Noncurrent assets
Lease receivable 1,320,714 – 1,320,714
Capital assets, net 305,991,096 164,186,903 470,177,999
Total assets 441,138,118 201,982,536 643,120,654
DEFERRED OUTFLOWS OF RESOURCES
Pension 3,160,011 446,586 3,606,597
OPEB 210,428 59,945 270,373
Total deferred outflows of resources 3,370,439 506,531 3,876,970
LIABILITIES
Current liabilities
Accounts payable 6,295,394 2,957,146 9,252,540
Accrued compensation 719,938 105,110 825,048
Accrued interest payable 385,000 57,285 442,285
Customer deposits payable – 384,171 384,171
Compensated absences 132,575 105,620 238,195
Lease agreements payable 59,713 8,429 68,142
IT subscriptions 165,029 46,472 211,501
General obligation bonds/notes 6,965,000 – 6,965,000
Revenue notes payable – 515,000 515,000
Direct borrowings 660,000 1,307,725 1,967,725
Installment contracts 1,090,537 – 1,090,537
Total current liabilities 16,473,186 5,486,958 21,960,144
Noncurrent liabilities
Compensated absences 536,469 – 536,469
Lease agreements payable 223,330 22,178 245,508
IT subscriptions 98,671 63,405 162,076
General obligation bonds/notes, net 127,759,461 – 127,759,461
Revenue notes payable, net – 7,195,241 7,195,241
Direct borrowings 10,585,000 22,620,418 33,205,418
Installment contracts 7,147,367 – 7,147,367
Net pension liability 2,812,441 397,466 3,209,907
Total OPEB liability 799,242 227,682 1,026,924
Total noncurrent liabilities 149,961,981 30,526,390 180,488,371
Total liabilities 166,435,167 36,013,348 202,448,515
See Notes to Financial Statements.
-17-
City of Waukee, Iowa
STATEMENT OF NET POSITION (continued)
June 30, 2024
Primary Government
Governmental Business Type
Activities Activities Total
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Leases 1,247,027 – 1,247,027
Succeeding year property taxes 36,385,602 – 36,385,602
Pension 251,898 35,599 287,497
OPEB 48,325 13,766 62,091
Total deferred inflows of resources 37,932,852 49,365 37,982,217
NET POSITION
Net investment in capital assets 177,418,526 135,589,789 313,008,316
Restricted for
Debt service 10,887,108 1,355,276 12,242,384
Other purposes 36,799,917 – 36,799,917
Unrestricted 15,034,987 29,481,289 44,516,276
Total net position $240,140,538 $166,426,354 $406,566,892
See Notes to Financial Statements.
-18-
City of Waukee, Iowa
STATEMENT OF ACTIVITIES
Year ended June 30, 2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Service Contributions Contributions
FUNCTIONS/PROGRAMS
Primary government
Governmental activities
Public safety $12,333,398 $ 3,548,027 $ 143,355 $ –
Public works 19,606,318 908,003 3,384,937 12,814,413
Health and social services 50,000 – – –
Culture and recreation 7,467,720 1,340,750 – 292,900
Community and economic development 1,845,341 – – –
General government 2,965,429 228,485 – –
Interest on long-term debt 4,068,727 – – –
Total governmental activities 48,336,933 6,025,265 3,528,292 13,107,313
Business-type activities
Water 7,244,474 10,220,734 – 7,270,718
Sewer 4,374,175 9,556,435 – 4,979,049
Gas 8,964,388 10,549,441 – –
Stormwater 1,533,772 1,719,293 – 11,502,516
Other 3,240,081 3,314,607 – –
Total business type activities 25,356,890 35,360,510 – 23,752,283
Total primary government $73,693,823 $41,385,775 $ 3,528,292 $36,859,596
GENERAL REVENUES
Property and other city tax levied for
General purposes
Debt service
Employee benefits
Tax increment financing
Local option sales tax
Other taxes
Property 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 (Expenses) and Changes in Net Position
Primary Government
Governmental Business Type
Activities Activities Total
$ (8,642,016) $ – $ (8,642,016)
(2,498,965) – (2,498,965)
(50,000) – (50,000)
(5,834,070) – (5,834,070)
(1,845,341) – (1,845,341)
(2,736,944) – (2,736,944)
(4,068,727) – (4,068,727)
(25,676,063) – (25,676,063)
– 10,246,978 10,246,978
– 10,161,309 10,161,309
– 1,585,053 1,585,053
– 11,688,037 11,688,037
– 74,526 74,526
– 33,755,903 33,755,903
(25,676,063) 33,755,903 8,079,840
14,301,085 – 14,301,085
6,691,917 – 6,691,917
2,322,134 – 2,322,134
7,815,523 – 7,815,523
5,686,088 – 5,686,088
179,029 – 179,029
415,148 – 415,148
674,884 – 674,884
5,095,778 1,916,723 7,012,501
141,432 112,990 254,422
19,140 245,121 264,261
365,839 (365,839) –
43,707,997 1,908,995 45,616,992
18,031,934 35,664,898 53,696,832
222,108,604 130,761,456 352,870,060
$240,140,538 $166,426,354 $406,566,892
See Notes to Financial Statements.
-20-
City of Waukee, Iowa
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2024
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
ASSETS
Cash and investments $16,762,837 $47,372,070 $10,539,917 $ 6,405,678 $10,455,970 $ 3,261,254 $ 94,797,726
Receivables
Property tax
Delinquent 49,086 – 27,327 55,518 – 9,834 141,765
Succeeding year 14,729,303 – 7,476,561 11,457,835 – 2,721,903 36,385,602
Special assessments – – – – – 97,886 97,886
Other 1,053,977 – – – – 158,089 1,212,066
Due from other governments 34,941 – – – 510,421 272,399 817,761
Inventory 161,160 – – – – 212,342 373,502
Total assets $32,791,304 $47,372,070 $18,043,805 $17,919,031 $10,966,391 $ 6,733,707 $133,826,308
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts payable $ 943,360 $ 3,868,272 $ 1,050 $ 269,472 $ – $ 251,028 $ 5,333,182
Accrued compensation 681,240 – – – – 38,698 719,938
Total liabilities 1,624,600 3,868,272 1,050 269,472 – 289,726 6,053,120
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year
property tax 14,729,303 – 7,476,561 11,457,835 – 2,721,903 36,385,602
Special assessments – – – – – 97,886 97,886
Other 236,068 – – – – – 236,068
Total deferred inflows of
resources 14,965,371 – 7,476,561 11,457,835 – 2,819,789 36,719,556
FUND BALANCES
Nonspendable 161,160 – – – – 212,342 373,502
Restricted for
Capital projects – 43,503,798 – – – – 43,503,798
Debt service – – 10,566,194 – – 320,914 10,887,108
Urban renewal – – – 6,191,724 – – 6,191,724
Other purposes 190,818 – – – 10,966,391 3,090,936 14,248,145
Committed 1,622,351 – – – – – 1,622,351
Unassigned 14,227,004 – – – – – 14,227,004
Total fund balances 16,201,333 43,503,798 10,566,194 6,191,724 10,966,391 3,624,192 91,053,632
Total liabilities, deferred
inflows of resources
and fund balances $32,791,304 $47,372,070 $18,043,805 $17,919,031 $10,966,391 $ 6,733,707 $133,826,308
See Notes to Financial Statements.
-21-
City of Waukee
RECONCILIATION OF THE BALANCE SHEET—
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
June 30, 2024
Total governmental fund balances $ 91,053,632
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. 305,991,096
Other long term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds, as unavailable revenue. 333,954
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. (160,382,047)
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 3,370,439
Deferred inflows of resources (300,223) 3,070,216
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 1,320,714
Deferred inflows of resources (1,247,027) 73,687
Net position of governmental activities $240,140,538
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, 2024
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
REVENUES
Property tax $13,842,474 $ – $ 6,691,917 $ – $ – $ 2,780,745 $23,315,136
Tax increment financing – – – 7,815,524 – – 7,815,524
Other city tax 158,131 – – – 5,686,088 21,631 5,865,850
Licenses and permits 2,712,016 – – – – 24,236 2,736,252
Use of money and property 1,030,557 2,068,052 481,335 517,228 1,028,878 304,325 5,430,375
Intergovernmental 1,064,490 188,869 157,307 13,864 – 3,453,447 4,877,977
Charges for service 1,416,259 – – – – – 1,416,259
Miscellaneous 660,170 50,000 – – – 936,287 1,646,457
Total revenues 20,884,097 2,306,921 7,330,559 8,346,616 6,714,966 7,520,671 53,103,830
EXPENDITURES
Operating
Public safety 12,044,504 – – – – – 12,044,504
Public works 818,469 – – – – 3,370,713 4,189,182
Health and social services 50,000 – – – – – 50,000
Culture and recreation 4,607,063 – – – – – 4,607,063
Community and economic
development 752,887 – – 1,101,713 – – 1,854,600
General government 1,670,195 – – – – – 1,670,195
Debt service
Principal – 175,941 6,030,000 – – – 6,205,941
Interest – – 4,798,412 – – – 4,798,412
Bond issuance and other costs – 292,152 5,483 – – – 297,635
Capital projects 900,831 24,399,981 – – – 222,299 25,523,111
Total expenditures 20,843,949 24,868,074 10,833,895 1,101,713 – 3,593,012 61,240,643
Excess (deficiency) of
revenues over (under)
expenditures 40,148 (22,561,153) (3,503,336) 7,244,903 6,714,966 3,927,659 (8,136,813)
OTHER FINANCING SOURCES
(USES)
Bond proceeds – 38,305,000 – – – – 38,305,000
Bond premium – 1,945,891 – – – – 1,945,891
Sale of capital assets 211,814 – – – – 32,539 244,353
Transfers in 3,312,547 12,811,180 6,324,042 – – – 22,447,769
Transfers out – – – (5,161,181) (12,010,749) (4,910,000) (22,081,930)
Total other financing
sources (uses) 3,524,361 53,062,071 6,324,042 (5,161,181) (12,010,749) (4,877,461) 40,861,083
CHANGE IN FUND BALANCES 3,564,509 30,500,918 2,820,706 2,083,722 (5,295,783) (949,802) 32,724,270
FUND BALANCES, beginning 12,636,824 13,002,880 7,745,488 4,108,002 16,262,174 4,573,994 58,329,362
FUND BALANCES, ending $16,201,333 $43,503,798 $10,566,194 $ 6,191,724 $10,966,391 $ 3,624,192 $91,053,632
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, 2024
Change in fund balances—Total governmental funds $32,724,270
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 24,595,067
Contributed assets 12,868,444
Subscription-based IT agreements 87,185
Depreciation and amortization expense (11,556,847) 25,993,840
Governmental funds do not report capital assets and therefore do not report
gains or losses on the disposal of those assets. (102,921)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds.
Change in unavailable revenue
Special assessments (733)
Other (137,510) (138,243)
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, including IT subscription and lease 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 (46,366,965)
Repayments
General obligation bonds 5,520,000
Direct borrowings and direct placements 510,000
Installment contracts 175,941
Lease agreements payable 57,515
Subscription-based IT arrangements 344,714 (39,758,795)
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. (998,513)
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. 1,228,822
Some revenues and expenses reported in the Statement of Activities do not require
the use of current financial resources and, therefore, are not reported as revenue
and expenditures in governmental funds, as follows:
Compensated absences (61,963)
Other postemployment benefits (103,033)
Pension expense (681,684)
Interest on long-term debt (96,000)
Lease related revenue 26,145 (916,535)
Change in net position of governmental activities $18,031,934
See Notes to Financial Statements.
-24-
City of Waukee, Iowa
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2024
Enterprise Funds
Nonmajor
Water Sewer Gas Stormwater Funds Total
ASSETS
Current assets
Cash and investments $12,315,710 $ 9,400,699 $ 5,506,145 $ 3,683,880 $ 965,124 $ 31,871,558
Receivables, net of allowances
Customer accounts 1,075,446 706,740 147,920 141,406 216,207 2,287,719
Inventories 558,396 – 742,962 – 23,266 1,324,624
Total current assets 13,949,552 10,107,439 6,397,027 3,825,286 1,204,597 35,483,901
Noncurrent assets
Restricted cash and investments 1,016,092 812,258 182,158 298,100 3,124 2,311,732
Capital assets, net of accumulated
depreciation 40,449,642 77,940,773 19,116,695 24,935,672 1,744,121 164,186,903
Total noncurrent assets 41,465,734 78,753,031 19,298,853 25,233,772 1,747,245 166,498,635
Total assets 55,415,286 88,860,470 25,695,880 29,059,058 2,951,842 201,982,536
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 85,510 85,502 129,847 51,205 94,522 446,586
OPEB related deferred outflows 13,338 13,554 17,032 7,875 8,146 59,945
Total deferred outflows of resources 98,848 99,056 146,879 59,080 102,668 506,531
LIABILITIES
Current liabilities
Accounts payable 1,036,732 989,715 848,766 38,181 43,752 2,957,146
Accrued compensation 17,585 17,555 26,782 12,509 30,679 105,110
Compensated absences 20,458 20,458 42,740 10,830 11,134 105,620
Customer deposits payable 241,771 – 142,400 – – 384,171
Lease agreements payable – – – – 30,607 30,607
IT subscriptions 2,012 2,012 95,863 2,012 7,978 109,877
Revenue notes payable 355,000 160,000 – – – 515,000
Notes from direct borrowings and direct placements – 1,113,971 – 170,000 23,754 1,307,725
Interest payable 13,152 32,261 – 11,872 – 57,285
Total current liabilities 1,686,710 2,335,972 1,156,551 245,404 147,904 5,572,541
Noncurrent liabilities
Revenue notes payable, net 4,452,830 2,742,411 – – – 7,195,241
Notes from direct borrowings and
placements, net – 19,305,329 – 3,315,089 – 22,620,418
Net pension liability 76,105 76,098 115,565 45,573 84,125 397,466
Total OPEB liability 50,660 51,482 64,691 29,909 30,940 227,682
Total noncurrent liabilities 4,579,595 22,175,320 180,256 3,390,571 115,065 30,440,807
Total liabilities 6,266,305 24,511,292 1,336,807 3,635,975 262,969 36,013,348
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows 6,816 6,816 10,351 4,082 7,534 35,599
OPEB related deferred inflows 3,064 3,113 3,911 1,808 1,870 13,766
Total deferred inflows of resources 9,880 9,929 14,262 5,890 9,404 49,365
NET POSITION
Net investment in capital assets 35,641,812 54,619,062 19,116,695 24,491,853 1,720,367 135,589,789
Restricted for bond retirement 406,169 619,997 39,758 286,228 3,124 1,355,276
Unrestricted 13,189,968 9,199,246 5,335,237 698,192 1,058,646 29,481,289
Total net position $49,237,949 $64,438,305 $24,491,690 $25,476,273 $2,782,137 $166,426,354
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, 2024
Enterprise Funds
Nonmajor
Water Sewer Gas Stormwater Funds Total
OPERATING REVENUES
Charges for service $10,220,734 $ 9,556,435 $10,549,441 $ 1,719,293 $ 3,314,607 $ 35,360,510
Miscellaneous 8,091 8,477 6,174 – 131,243 153,985
Total operating revenues 10,228,825 9,564,912 10,555,615 1,719,293 3,445,850 35,514,495
OPERATING EXPENSES
Business type activities
Cost of sales and services 6,135,924 2,274,644 8,340,155 900,824 3,141,668 20,793,215
Depreciation and amortization 961,432 1,708,086 623,675 426,177 97,129 3,816,499
Total operating expenses 7,097,356 3,982,730 8,963,830 1,327,001 3,238,797 24,609,714
Operating income 3,131,469 5,582,182 1,591,785 392,292 207,053 10,904,781
NONOPERATING REVENUES (EXPENSES)
Interest income 830,542 588,594 265,222 186,960 45,405 1,916,723
Rental income 91,136 – – – – 91,136
Gain (loss) on disposal of capital assets 75,547 22,941 (120) 11,475 3,147 112,990
Capital contributions 7,270,718 4,979,049 – 11,502,516 – 23,752,283
Interest expense and fiscal charges (147,118) (391,445) (558) (206,771) (1,284) (747,176)
Total nonoperating revenues (expenses) 8,120,825 5,199,139 264,544 11,494,180 47,268 25,125,956
Income before transfers 11,252,294 10,781,321 1,856,329 11,886,472 254,321 36,030,737
Transfers (out) (134,363) – – (231,476) – (365,839)
CHANGE IN NET POSITION 11,117,931 10,781,321 1,856,329 11,654,996 254,321 35,664,898
NET POSITION, beginning 38,120,018 53,656,984 22,635,361 13,821,277 2,527,816 130,761,456
NET POSITION, ending $49,237,949 $64,438,305 $24,491,690 $25,476,273 $ 2,782,137 $166,426,354
See Notes to Financial Statements.
-26-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year ended June 30, 2024
Enterprise Funds
Nonmajor
Water Sewer Gas Stormwater Funds Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $10,312,119 $ 9,528,194 $10,741,845 $ 1,706,618 $ 3,301,032 $35,589,808
Cash received from other revenues 8,091 8,477 6,174 – 131,243 153,985
Cash paid for personal services (1,042,017) (1,059,115) (1,329,973) (613,480) (555,553) (4,600,138)
Cash paid to suppliers (5,071,664) (1,328,148) (6,558,660) (285,809) (2,596,626) (15,840,907)
Net cash flows from operating activities 4,206,529 7,149,408 2,859,386 807,329 280,096 15,302,748
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers to other funds (134,363) – – (231,476) – (365,839)
Net cash flows from noncapital financing activities (134,363) – – (231,476) – (365,839)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (8,555,596) (13,664,145) (2,539,243) (283,127) (87,502) (25,129,613)
Proceeds from sale of capital assets 126,919 33,216 6,630 15,000 – 181,765
Principal paid on revenue notes (345,000) (2,330,000) – – – (2,675,000)
Principal paid on direct borrowings and placements – (654,000) – (168,600) (23,419) (846,019)
Interest and fiscal charges paid (173,654) (435,620) (558) (202,750) (1,284) (813,866)
Proceeds from bond issuance – 11,261,601 – 3,456,215 – 14,717,816
Net cash flows from capital and related
financing activities (8,947,331) (5,788,948) (2,533,171) 2,816,738 (112,205) (14,564,917)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 830,542 588,594 265,222 186,960 45,405 1,916,723
Purchase of investments – – – (255,231) – (255,231)
Cash received from property rental 91,136 – – – – 91,136
Net cash flows from investing activities 921,678 588,594 265,222 (68,271) 45,405 1,752,628
NET CHANGE IN CASH AND CASH EQUIVALENTS (3,953,487) 1,949,054 591,437 3,324,320 213,296 2,124,620
CASH AND CASH EQUIVALENTS, beginning 16,559,503 8,182,889 5,096,866 400,047 754,952 30,994,257
CASH AND CASH EQUIVALENTS, ending $12,606,016 $10,131,943 $ 5,688,303 $ 3,724,367 $ 968,248 $33,118,877
See Notes to Financial Statements.
-27-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
Year ended June 30, 2024
Enterprise Funds
Nonmajor
Water Sewer Gas Stormwater Funds Total
RECONCILIATION OF OPERATING INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITES
Operating income $ 3,131,469 $ 5,582,182 $ 1,591,785 $ 392,292 $ 207,053 $10,904,781
Adjustments to reconcile operating income
to net cash flows from operating activities
Depreciation and amortization expense 961,432 1,708,086 623,675 426,177 97,129 3,816,499
Change in assets, deferred outflows, liabilities
and deferred inflows
Customer accounts receivable 91,385 (28,241) 192,404 (12,675) (13,575) 229,298
Inventories 63,826 – 81,514 – (4,014) 141,326
Accounts payable, net of capital assets (27,700) (109,385) 365,497 (42) 7,828 236,198
Accrued compensation 4,270 4,240 3,976 3,822 6,119 22,427
Customer deposits (7,987) – 11,450 – – 3,463
Compensated absences 4,303 4,303 7,650 2,965 (5,565) 13,656
Net pension liability 22,121 30,540 42,423 18,731 37,400 151,215
Deferred outflows of resources (23,851) (34,747) (46,034) (21,539) (39,176) (165,350)
Deferred inflows of resources (24,414) (19,624) (31,743) (11,313) (19,425) (106,519)
Total OPEB liability 11,675 12,054 16,789 8,911 6,325 55,754
Net cash flows from operating activities $ 4,206,529 $ 7,149,408 $ 2,859,386 $ 807,329 $ 280,096 $15,302,748
RECONCILIATION OF CASH AND CASH EQUIVALENTS
AT YEAR END TO SPECIFIC ASSETS INCLUDED ON
THE STATEMENT OF NET POSITION
Current assets
Cash and investments $12,315,710 $ 9,400,699 $ 5,506,145 $ 3,683,880 $ 965,124 $31,871,558
Restricted assets – cash and investments
Customer deposits 241,771 – 142,400 – – 384,171
Revenue note and interest sinking account 48,535 235,631 39,758 40,487 3,124 367,535
Revenue note reserve account 725,786 576,627 – 257,613 – 1,560,026
13,331,802 10,212,957 5,688,303 3,981,980 968,248 34,183,290
Less items not meeting the definition of cash equivalents
Certificates of deposit (725,786) (81,014) – (257,613) – (1,064,413)
Cash and cash equivalents at year end $12,606,016 $10,131,943 $ 5,688,303 $ 3,724,367 $ 968,248 $33,118,877
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Contributed capital assets $ 7,270,718 $ 4,979,049 $ – $11,502,516 $ – $23,752,283
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-28-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Waukee (the City) 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 would
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 Governmental 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, 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 $27,143,750 in governmental activities and
$3,041,270 in business type activities.
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.
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)
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.
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 revenues 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 revenues 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 Stormwater Fund is used to account for the operation and maintenance of the City’s stormwater system.
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 soon 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 recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days 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 and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations. The principal operating revenues of the City's Enterprise Funds 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 not 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 generally allocated to
each participating fund based on the percentage of its average balance.
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 is 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, 2024 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 in April 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, 2022 assessed property
valuations; is for the tax accrual period July 1, 2023 through June 30, 2024 and reflects the tax asking contained in the
budget certified to the County Board of Supervisors in April 2023.
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, 2024, 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. Subsequently, the lease receivable is reduced by the principal portion of
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.
Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease
receipts to present value, lease term and lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the
lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease
receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount
of the lease receivable.
Capital Assets
Capital assets, which include property, equipment and vehicles and infrastructure and intangibles acquired after July 1,
1980 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
(except for intangible right-of-use lease assets, the measurement of which is discussed under “Leases” following) if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repair not adding to the value of the asset or materially extending asset lives are
not capitalized. 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-33-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Capital Assets (continued)
Capital assets of the City are depreciated/amortized 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 2-10 years
Intangibles 2-5 years
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 present value of payments expected
to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments
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.
Subscription-Based Information Technology Arrangements (SBITA)
The City has entered into contracts that convey control of the right-of-use information technology software. The City has
recognized an IT subscription liability and an intangible right-of-use IT subscription asset in the government-wide financial
statements. The City’s policy is to recognize IT subscription liabilities with an initial, individual value of $5,000, or more.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-34-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Subscription-Based Information Technology Arrangements (SBITA) (continued)
At the commencement of the IT subscription term, the City initially measures the subscription liability at the present value
of payment expected to be made during the subscription term. Subsequently, the IT subscription liability is reduced by
the principal portion of payments made. The right-of-use IT subscription asset is initially measured as the sum of the
initial IT subscription liability, adjusted for subscription payments made at or before the subscription commencement date,
plus capitalized implementation costs less any incentives received from the SBITA vendor at or before the commencement
of the subscription term. Subsequently, the right-of-use IT subscription asset is amortized on a straight-line basis over its
useful life.
Key estimates and judgments related to IT subscription arrangements include how the City determines the discount rate
it uses to discount the expected payments to present value, term and payments.
The City uses the interest rate charged by the IT subscription vendor as the discount rate. When the interest rate charged
by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate.
The subscription term includes the noncancelable period of the subscription. Payments included in the measurement of
the liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its IT subscription arrangements and
will remeasure the right-of-use IT subscription asset and liability if certain changes occur that are expected to significantly
affect the amount of the subscription liability.
Right-of-use IT subscription assets are reported with other capital assets 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 resources 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, 2024. The compensated absences liability attributable to the governmental activities will be paid
primarily by the General Fund.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-35-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 net 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 reported 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 constraints 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.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-36-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information. For the year
ended June 30, 2024, the City’s disbursements exceeded the amount budgeted in the business type activities function.
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, 2024 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
-37-
NOTE 3 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024 was as follows:
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Governmental activities
Capital assets not being depreciated
Land $ 29,676,039 $ 242,900 $ – $ 764,504 $ 30,683,443
Construction in progress 32,923,254 20,416,285 – (22,810,382) 30,529,157
Total capital assets not being depreciated 62,599,293 20,659,185 – (22,045,878) 61,212,600
Capital assets being depreciated
Buildings 11,002,716 79,870 – 6,378,001 17,460,587
Improvements other than buildings 298,115,867 15,025,830 – 15,667,877 328,809,574
Equipment 11,431,289 949,612 363,369 – 12,017,532
Subscription-based information technology
arrangements 1,000,159 126,760 – – 1,126,919
Right-of-use assets 399,683 – – – 399,683
Total capital assets being depreciated 321,949,714 16,182,072 363,369 22,045,878 359,814,295
Less accumulated depreciation for
Buildings 5,083,470 516,350 – – 5,599,820
Improvements other than buildings 91,012,483 9,643,735 – – 100,656,218
Equipment 7,296,079 964,570 260,448 – 8,000,201
Subscription-based information technology
arrangements 282,372 370,137 – – 652,509
Right-of-use assets 64,996 62,055 – – 127,051
Total accumulated depreciation 103,739,400 11,556,847 260,448 – 115,035,799
Total capital assets being depreciated, net 218,210,314 4,625,225 102,921 22,045,878 244,778,496
Governmental activities capital assets, net $280,809,607 $25,284,410 $ 102,921 $ – $305,991,096
Business type activities
Capital assets not being depreciated
Land $ 3,305,231 $ – $ – $ 143,020 $ 3,448,251
Construction in progress 12,606,108 20,423,340 – (605,962) 32,423,486
Total capital assets not being depreciated 15,911,339 20,423,340 – (462,942) 35,871,737
Capital assets being depreciated
Buildings 576,846 – – – 576,846
Equipment 5,418,534 651,162 324,754 – 5,744,942
Infrastructure 131,123,222 26,322,085 – 462,942 157,908,249
Subscription-based information technology
arrangements 134,328 128,309 – – 262,637
Right-of-use assets 56,521 – – – 56,521
Total capital assets being depreciated 137,309,451 27,101,556 324,754 462,942 164,549,195
Less accumulated depreciation for
Buildings 303,637 14,239 – – 317,876
Equipment 3,440,664 413,641 252,832 – 3,601,473
Infrastructure 28,864,727 3,293,073 – – 32,157,800
Subscription-based information technology
arrangements 38,173 84,727 – – 122,900
Right-of-use assets 23,161 10,819 – – 33,980
Total accumulated depreciation 32,670,362 3,816,499 252,832 – 36,234,029
Total capital assets being depreciated, net 104,639,089 23,285,057 71,922 462,942 128,315,166
Business type activities capital assets, net $120,550,428 $43,708,397 $ 71,922 $ – $164,186,903
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-38-
NOTE 3 CAPITAL ASSETS (continued)
Depreciation and amortization expense was charged to functions of the primary government as follows:
Governmental activities
Public safety $ 467,208
Public works 7,462,019
Culture and recreation 2,881,221
Community and economic development 201
General government 746,198
Total depreciation and amortization expense--governmental activities $11,556,847
Business type activities
Water $ 961,432
Sewer 1,708,086
Gas 623,675
Stormwater 426,177
Nonmajor 97,129
Total depreciation and amortization expense--business type activities $ 3,816,499
NOTE 4 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2024 is as follows:
Balance Balance
beginning end Due within
of year Increases Decreases of year one year
Governmental activities
General obligation bonds/notes $100,940,948 $38,305,000 $4,521,487 $134,724,461 (1) $6,965,000
Notes from direct borrowings and
direct placements 11,755,000 – 510,000 11,245,000 660,000
Installment contract 351,881 8,061,964 175,941 8,237,904 1,090,537
Compensated absences 607,081 61,963 – 669,044 132,575
Lease agreements payable 340,558 – 57,515 283,043 59,713
IT subscriptions 565,957 42,457 344,714 263,700 165,029
Total OPEB liability 569,607 229,635 – 799,242 –
Net pension liability 1,551,213 1,261,228 – 2,812,441 –
Totals $116,682,245 $47,962,247 $5,609,657 $159,034,835 $9,072,854
Business type activities
Revenue bonds/notes $10,457,723 $ – $2,747,482 $ 7,710,241 (2) $ 515,000
Notes from direct borrowings and
direct placements 10,063,872 14,714,216 849,945 23,928,143 1,307,725
Compensated absences 91,964 13,656 – 105,620 105,620
Lease agreements payable 38,345 – 7,738 30,607 8,429
IT subscriptions 11,983 97,894 – 109,877 46,472
Total OPEB liability 171,928 55,754 – 227,682 –
Net pension liability 246,251 151,215 – 397,466 –
Totals $21,082,066 $15,032,735 $3,605,165 $ 32,509,636 $1,983,246
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-39-
NOTE 4 LONG-TERM LIABILITIES (continued)
(1) Included in balance are unamortized bond premiums totaling $5,574,461 at June 30, 2024.
(2) Included in balance are unamortized bond premiums totaling $225,330 at June 30, 2024.
Governmental Activities
Ten issues of unmatured general obligation bonds/notes, totaling $129,150,000, are outstanding at June 30, 2024.
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 $2,605,000, with the final maturities due in the year ending June 30, 2043.
The City has one issuance of a note from direct borrowing and direct placements with an outstanding balance totaling
$11,245,000 at June 30, 2024. The note bears an interest rate of 2.15% and matures in varying annual amounts, ranging
from $660,000 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, 2024 was $175,940.
The City has entered into an installment contract with the Des Moines Airport Authority related to the Des Moines Airport
renovation project. The agreement is noninterest bearing and requires annual installments of roughly $180,000 for four
years. The balance due as of June 30, 2024 was $722,670.
The City has entered into an installment contract with the Iowa Department of Transportation (IDOT) related to an
interstate interchange project. According to the agreement, the City is to reimburse the IDOT $7,339,294 over the next
ten years, in equal installments. The balance due as of June 30, 2024 was $7,339,294.
Details of general obligation bonds and notes payable at June 30, 2024 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Governmental activities Date of issue rates due date payments issue 2024
General Obligation Bonds
and Notes
General Obligation 2014A December 10, 2014 2.50-3.50 June 1, 2034 $510,000 - 1,725,000 $23,295,000 $11,670,000
General Obligation 2015C November 19, 2015 2.50-3.00 June 1, 2030 420,000 - 485,000 7,340,000 2,700,000
General Obligation 2017A May 24, 2017 3.00-4.00 June 1, 2036 100,000 - 1,900,000 13,940,000 11,840,000
General Obligation 2018A June 19, 2018 3.00-5.00 June 1, 2038 835,000 - 1,310,000 19,775,000 14,860,000
General Obligation 2019A August 21, 2019 3.00-5.00 June 1, 2031 355,000 - 440,000 4,655,000 2,790,000
General Obligation 2020B November 19, 2020 2.00-5.00 June 1, 2036 440,000 - 880,000 9,155,000 8,185,000
General Obligation 2021A April 6, 2021 2.00-5.00 June 1, 2040 170,000 - 935,000 17,305,000 9,000,000
General Obligation 2021B November 4, 2021 2.00-5.00 June 1, 2041 595,000 - 1,390,000 19,760,000 19,010,000
General Obligation 2022A July 6, 2022 3.125-5.00 June 1, 2042 345,000 - 800,000 11,755,000 11,180,000
General Obligation 2023A September 6, 2023 4.00-5.00 June 1, 2043 1,380,000 - 2,605,000 38,305,000 37,915,000
Direct Borrowings and
Placements
General Obligation 2020A May 7, 2020 2.15 June 1, 2035 660,000 - 1,190,000 12,800,000 11,245,000
Installment Contract
City of West Des Moines July 1, 2021 0.00 July 1, 2024 175,941 879,704 175,940
Iowa Department of
Transportation November 22, 2023 0.00 November 22, 2034 733,929 7,339,294 7,339,294
Des Moines Airport
Authority December 5, 2022 0.00 December 5, 2028 180,668 722,670 722,670
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-40-
NOTE 4 LONG-TERM LIABILITIES (continued)
Governmental Activities (continued)
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
2025 $ 6,965,000 $ 4,773,340 $ 11,738,340 $ 660,000 $ 241,768 $ 901,768
2026 7,370,000 4,474,065 11,844,065 745,000 227,578 972,578
2027 7,740,000 4,148,365 11,888,365 1,000,000 211,560 1,211,560
2028 8,305,000 3,805,365 12,110,365 1,025,000 190,060 1,215,060
2029 8,785,000 3,631,938 12,416,938 1,045,000 168,023 1,213,023
2030-2034 45,505,000 12,120,994 57,625,994 5,580,000 492,996 6,072,996
2035-2039 29,530,000 5,362,519 34,892,519 1,190,000 25,585 1,215,585
2040-2043 14,950,000 1,313,294 16,263,294 – – –
Subtotal 129,150,000 39,629,880 168,779,880 11,245,000 1,557,570 12,802,570
Plus unamortized premium 5,574,461 – 5,574,461 – – –
Totals $134,724,461 $39,629,880 $174,354,341 $11,245,000 $1,557,570 $12,802,570
Year ending Installment Contracts
June 30 Principal Interest Total
2025 $ 1,090,537 $ – $ 1,090,537
2026 914,597 – 914,597
2027 914,597 – 914,597
2028 914,595 – 914,595
2029 733,929 – 733,929
2030-2034 3,669,649 – 3,669,649
Totals $ 8,237,904 $ – $ 8,237,904
Business Type Activities
Four issues of unmatured revenue notes, totaling $7,580,000, are outstanding at June 30, 2024. 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.
Six issues of unmatured direct borrowing and direct placement notes, totaling $23,833,054, are outstanding at June 30,
2024. These notes bear interest at rates ranging from 1.75% to 5.00% and mature in varying annual amounts, ranging
from $22,348 to $791,000 with the final maturities due in the year ending June 30, 2044.
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 enterprise 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-41-
NOTE 4 LONG-TERM LIABILITIES (continued)
Business Type Activities (continued)
During the year ended June 30, 2024, the City was in compliance with the bond provisions.
The City has pledged future customer revenues, net of specified operating expenses, to repay the $40,670,975 in notes
issued from 2015 to 2024. 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 2044. 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 $39,226,452. For the current year, principal and interest
paid and total customer net revenues were $2,072,334 and $9,534,258, respectively.
Details of revenue notes and bonds payable at June 30, 2024 are as follows:
Outstanding
Amount of as of
Interest Final Annual original June 30,
Business Type activities Date of issue rates due date payments issue 2024
Revenue Notes and Bonds
Water
Series 2015B July 21, 2015 3.00 June 1, 2027 $130,000 - 140,000 $1,450,000 $ 405,000
Series 2018B June 19, 2018 3.00-4.00 June 1, 2038 100,000 - 265.000 3,410,000 2,810,000
Series 2019B August 21, 2019 3.00-5.00 June 1, 2034 125,000 - 180,000 2,040,000 1,495,000
Sewer
Series 2018C June 19, 2018 3.00-5.00 June 1, 2038 160,000 - 250,000 3,565,000 2,870,000
Direct Borrowings and
Direct Placements
Sewer
Series 2017 September 1, 2017 2.20 June 1, 2038 454,971 - 603,800 9,942,975 7,265,699
Series 2018A July 6, 2018 1.75 June 1, 2038 116,000 - 146,000 2,948,000 1,826,000
Series 2023A April 28, 2023 1.75 June 1, 2044 543,000 - 791,000 13,200,000 11,327,601
Golf Course
Series 2019C November 19, 2019 2.25 June 1, 2025 22,348 - 23,868 125,000 23,754
Stormwater
Series 2016A June 1, 2016 1.90-2.00 June 1, 2026 70,000 640,000 140,000
Series 2023C September 6, 2023 4.00-5.00 June 1, 2043 100,000 - 245,000 3,350,000 3,250,000
Details of revenue notes and bonds payable at June 30, 2024 are as follows:
Year ending Revenue Notes/Bonds Direct Borrowings and Placements
June 30 Principal Interest Total Principal Interest Total
2025 $ 515,000 $ 256,878 $ 771,878 $ 1,307,725 $ 580,613 $ 1,888,338
2026 535,000 234,728 769,728 1,307,626 571,912 1,879,538
2027 550,000 211,678 761,678 1,285,444 542,117 1,827,561
2028 520,000 192,478 712,478 1,315,429 511,995 1,827,424
2029 535,000 176,878 711,878 1,344,597 481,104 1,825,701
2030-2034 2,955,000 628,873 3,583,873 7,221,906 1,917,392 9,139,298
2035-2039 1,970,000 173,912 2,143,912 7,197,726 1,052,031 8,249,757
2040-2044 – – – 2,852,601 280,809 3,133,410
Subtotal 7,580,000 1,875,425 9,455,425 23,833,054 5,937,973 29,771,027
Plus unamortized premium 130,241 – 130,241 95,089 – 95,089
Totals $7,710,241 $1,875,425 $9,585,666 $23,928,143 $5,937,973 $29,866,116
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-42-
NOTE 4 LONG-TERM LIABILITIES (continued)
As of June 30, 2024, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows:
Actual valuation $3,416,185,614
Debt limit - 5% of total actual valuation $170,809,281
Debt applicable to debt limit
General obligation bonded debt outstanding $129,150,000
Notes from direct borrowings and placements 11,245,000
Tax increment financing and other agreements subject to debt limit 3,182,437
Total debt subject to debt limit $143,577,437
Percentage of debt limit 84.06%
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 reaching age 62 with 20 or more years of covered employment, or when
the member’s years of service plus the member’s age at the last birthday equals or exceeds 88, whichever comes first.
These qualifications must be met on the member’s first month of entitlement to benefits. Members cannot begin receiving
retirement benefits before age 55. The formula used to calculate a regular member’s monthly IPERS benefit includes:
• A multiplier based on years of service.
• The member’s highest five-year average salary. For members with service before June 30, 2012, the highest
three-year average salary as of that date will be used if it is greater than the highest five-year average salary.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-43-
NOTE 5 PENSION PLAN (continued)
Pension Benefits (continued)
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.
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 requires 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 2024, 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, 2024 were $1,393,875.
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2024, the City reported a liability of $3,209,907 for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on
the City’s share of contributions to IPERS relative to the contributions of all IPERS participating employers. The following
table summarizes the change in the City’s proportionate share:
June 30
2023 2022 Change
City’s proportionate share 0.071115% 0.047575% 0.023540%
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-44-
NOTE 5 PENSION PLAN (continued)
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (continued)
For the year ended June 30, 2024, the City recognized pension expense of $761,548. At June 30, 2024, 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 $1,037,836 $ 16,501
Change in assumptions – 213,266
Net difference between projected and actual earnings on IPERS’ investments 615,062 –
Change in proportion and difference between City contributions and
proportionate share of contributions 559,824 57,730
City contributions subsequent to the measurement date 1,393,875 –
Totals $3,606,597 $ 287,497
$1,393,875 reported as deferred outflows of resources related to pensions resulting from the City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June
30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year ending June 30, Total
2025 $ 74,025
2026 (284,717)
2027 1,688,684
2028 375,244
2029 71,989
Totals $1,925,225
There were no non-employer contributing entities to IPERS.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-45-
NOTE 5 PENSION PLAN (continued)
Actuarial Assumptions
The total pension liability in the June 30, 2023 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, 2023 valuation were based on the results of a quadrennial experience
study covering the period of July 1, 2017 through June 30, 2021.
Mortality rates used in the 2023 valuation were based on the PubG-2010 mortality tables with future mortality
improvements modeled using Scale MP-2021.
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 21.0% 4.56%
International equity 16.5 6.22
Global smart beta equity 5.0 5.22
Core plus fixed income 23.0 2.69
Public credit 3.0 4.38
Cash 1.0 1.59
Private equity 17.0 10.44
Private real assets 9.0 3.88
Private credit 4.5 4.60
Total 100.0%
Discount Rate
The discount rate used to measure the total pension liability 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. Based 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-46-
NOTE 5 PENSION PLAN (continued)
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0%,
as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1% 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) $10,572,894 $3,209,907 $(2,961,633)
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, 2024, the City reported payables to IPERS of $58,366 for legally required City contributions and $38,584 for
legally required employee contributions withheld from employee wages which had not yet been remitted to IPERS.
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, 2024, the following employees were covered by the benefit terms.
Inactive employees or beneficiaries currently receiving benefit payments 2
Active employees 147
Total 149
Total OPEB Liability
The City’s total OPEB liability of $1,026,924 was measured as of June 30, 2024, and was determined by an actuarial
valuation as of July 1, 2023.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-47-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Assumptions
The OPEB liability as of June 30, 2024 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 3.65% 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 3.65% 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 date.
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 probabilities which mirror those used by
IPERS.
Changes in Total OPEB Liability
OPEB Liability
Total OPEB liability, July 1, 2023 $ 741,535
Changes for the year
Service cost 94,567
Interest 36,577
Differences between expected and actual experience 86,620
Changes in assumptions 91,145
Benefit payments (23,520)
Net changes 285,389
Total OPEB liability, June 30, 2024 $1,026,924
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 (2.65%) or 1% higher (4.65%) than the current discount rate.
1% Discount 1%
Decrease Rate Increase
(2.65%) (3.65%) (4.65%)
Total OPEB liability $1,130,236 $1,026,924 $ 932,553
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-48-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
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 5.25% decreasing
to 5.0%, as well as the total OPEB liability calculated using a healthcare cost trend rate that is 1% lower (4.25% to 4.0%)
or 1% higher (6.25% to 6.0%) than the current rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
4.25% d ecreasing 5.25% decreasing 6.25% decreasing
to 4.0% to 5.0% to 6.0%
Total OPEB liability $ 889,269 $1,026,924 $1,193,784
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2024, the City recognized OPEB expense of $146,852. At June 30, 2024, 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 $ 30,090 $ 125,820
Changes in assumptions or other inputs 32,001 144,553
Totals $ 62,091 $ 270,373
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
2025 $ 15,708
2026 15,708
2027 15,708
2028 15,708
2029 15,708
Thereafter 129,742
Total $ 208,282
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-49-
NOTE 7 SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS
The City has entered into subscription-based information technology arrangements (SBITAs) for various subscription-based
services, including public safety, traffic enhancement, and financial management programs under terms ranging from one to
four years. The total of the City’s subscription assets are recorded at a cost of $1,389,556, less accumulated amortization of
$775,409.
The future subscription payments under SBITA arrangements are as follows:
Year ending June 30 Principal Interest Total
2025 $ 211,501 $ 9,242 $ 220,743
2026 94,764 4,213 98,977
2027 67,312 1,706 69,018
Total $ 373,577 $ 15,161 $ 388,738
NOTE 8 INTERFUND TRANSFERS
The detail of interfund transfers for the year ended June 30, 2024 is as follows:
Transfer to Transfer from Amount
General Nonmajor governmental funds $ 2,910,000
Urban renewal TIF 402,547
3,312,547
Debt service Governmental funds
Urban renewal TIF 4,758,634
Local option sales tax 1,199,569
Enterprise funds
Water 134,363
Storm water 231,476
6,324,042
Capital projects Local option sales tax 10,811,180
Nonmajor governmental funds 2,000,000
12,811,180
Total $22,447,769
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
-50-
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 803 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, employment practices liability, public officials’ liability, cyber
liability, and law enforcement. 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 expenses 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 from
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, 2024 were $403,060.
The Pool uses reinsurance and excess risk-sharing agreements to reduce its exposure to large losses. The Pool retains
general, automobile, employment practices, law enforcement, cyber, and public officials' liability risks up to $500,000 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 $500,000 each occurrence, each location. Property risks 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.
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 member
against whom the claim was made or the loss was incurred.
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, 2024, no liability has been recorded in the City's financial statements. As of June 30, 2024, 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, payments 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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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, 2024 was $289,308.
Amounts payable from the Iowa Governmental Health Care Plan at June 30, 2024 total $53,242, 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, 2024 is as follows:
Unpaid claims as of beginning of year $ 33,810
Incurred claims (including claims incurred but
not reported as of June 30) 365,240
Payments on claims (345,808)
Unpaid claims as of year end $ 53,242
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 $82,000,000 of which approximately $47,000,000 has been
incurred as of June 30, 2024. The unpaid commitment balance is approximately $35,000,000 which will be funded by
current reserves in the capital projects funds and other sources.
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. During the year ended June 30, 2024, the City rebated $1,019,501 of incremental property tax to developers.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 12 URBAN RENEWAL DEVELOPMENT AGREEMENTS (continued)
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 the 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 2024, the developer
contributed $500,000 under this agreement.
NOTE 13 CONCENTRATION AND CONTINGENCIES
The City levies property taxes in order to fund many of its essential public services. The authority to levy property taxes
is governed by applicable state law. Changes in state law, including potential limits or reductions in the City’s tax levy
authority, could materially affect the financial condition and operating results of the City.
The City is involved in lawsuits arising in the ordinary course of activities. While these cases may 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 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 City 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, 2024, $394,845 of property tax was diverted from the City under the urban renewal and
economic development projects.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 15 JOINT VENTURES
Des Moines Metropolitan Wastewater Reclamation Authority
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
include provisions that place the WRA debt service requirements on the same parity as other debts of the participating
communities.
The WRA Agreement requires the debt service of the 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, 2024, the bonds
had a combined balance of $77,365,000 and the City of Waukee’s estimated future allocation based on the WRA flows is
currently $3,129,357.
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, 2024, the outstanding balance of State Revolving Loan issues totaled $373,386,852 and the City of
Waukee’s estimated future allocation is currently $13,697,522.
The WRA Agreement does not provide for the determination 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.
Central Iowa Water Works
The City is a founding agency of the Central Iowa Water Works (CIWW) joint venture. CIWW was formed during fiscal
year 2024 in order to provide for the ownership, operation and maintenance of the region’s water supply facilities and to
act as the exclusive wholesale supplier of water to member agencies.
The CIWW agreement, effective November 28, 2023 establishes CIWW as a separate legal entity with its own board.
The agreement creates an independent governance structure, establishes independent bonding authority for CIWW,
provides a framework for additional communities to participate and establishes funding mechanisms for the joint venture’s
capital and operating expenditures. The agreement also establishes CIWW’s operational commencement date as
January 1, 2025.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 15 JOINT VENTURES (continued)
Central Iowa Water Works (continued)
The agreement transfers certain water supply facility assets owned by the Founding Agencies to CIWW. Each Founding
Agency continues to own and operate the water supply facility infastructure which solely services its residents. The assets
previously owned by the City of Waukee and transferred to CIWW were not material to the City’s financial statements.
Westcom Dispatch Center
The City is a participating community in the Westcom Dispatch Center joint venture. This joint venture is a consolidated
public safety dispatch facility. Westcom currently provides 911 emergency responses and dispatch services to the
suburban cities of West Des Moines, Clive, Urbandale, Norwalk, Waukee, and Windsor Heights.
Westcom began on August 7, 2000, with the execution of an intergovernmental agreement between West Des Moines,
Clive, and Urbandale to provide continued operation, improvements to, and expansion of a consolidated dispatch center.
West Des Moines has been the contracting and hiring authority for the joint venture since inception. The Westcom
Agreement also establishes a management committee structure as well as providing a framework for additional
communities to participate. Since its creation, the Agreement has been amended to include the Cities of Norwalk Waukee
and Windsor Heights.
The Westcom agreement is tiered to establish an equity interest for the Authority Member cities as well as allowing for
Contracted User cities who receive no equity interest. As of June 30, 2024, the Cities of West Des Moines, Urbandale,
Clive, Norwalk, and Waukee are classified as Authority Members. The City of Waukee became an Authority Member as
of June 30, 2024. The percentages of ownership for each Authority Member City as of June 30, 2024 are as follows:
City Equity Percentage
West Des Moines 49.71%
Urbandale 29.98%
Clive 14.00%
Norwalk 3.30%
Waukee 3.01%
100.00%
Each participating city maintains an undivided interest in the assets contributed to the Westcom operations. Additionally,
each participating city has an ongoing financial responsibility to fund the operations of Westcom based on annual
budgeted operations and capital expenditures as approved by the management committee. Expenditures to Westcom by
the City during the year ended June 30, 2024 were $926,361. The City of Waukee’s equity interest in Westcom as of
June 30, 2024 was not material to the financial statements.
NOTE 16 SUBSEQUENT EVENTS
In July 2024, the City approved GO Bond Series 2024A and 2024B for $12,165,000 and $11,590,000, respectively, for
various capital improvement projects.
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REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
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City of Waukee, Iowa
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Required Supplementary Information
For the last seven years
2024 2023 2022
Service cost $ 94,567 $ 67,272 $ 65,155
Interest 36,577 15,690 14,218
Changes of benefit terms – – (1,576)
Differences between expected and actual experience 86,620 – 30,610
Changes in assumptions 91,145 – 75,022
Benefit payments (23,520) (14,750) (10,512)
Net change in total OPEB liability 285,389 68,212 172,917
Total OPEB liability, beginning of year 741,535 673,323 500,406
Total OPEB liability, end of year $ 1,026,924 $ 741,535 $ 673,323
Covered-employee payroll $12,727,014 $9,925,018 $9,612,608
Total OPEB liability as a percentage of
covered-employee payroll 8.07% 7.47% 7.00%
2021 2020 2019 2018
Service cost $ 43,554 $ 42,183 $ 36,277 $ 35,135
Interest 17,071 15,270 15,487 13,952
Changes of benefit terms – – – –
Differences between expected and actual experience – (48,220) – 38,762
Changes in assumptions – 2,242 – (57,734)
Benefit payments (8,843) (5,878) (10,128) (4,547)
Net change in total OPEB liability 51,782 5,597 41,636 25,548
Total OPEB liability, beginning of year 448,624 443,027 401,391 375,843
Total OPEB liability, end of year $ 500,406 $ 448,624 $ 443,027 $ 401,391
Covered-employee payroll $8,059,332 $7,805,648 $6,878,139 $6,651,636
Total OPEB liability as a percentage of
covered-employee payroll 6.21% 5.75% 6.44% 6.00%
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%
Year ended June 30, 2023 2.14%
Year ended June 30, 2024 3.65%
See accompanying independent auditor's report.
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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, 2024
Final
Governmental Proprietary Budgetary Total Budgeted amounts to actual
funds actual funds actual adjustments actual Original Final variance
REVENUES
Property taxes $23,315,136 $ – $ – $ 23,315,136 $ 23,236,917 $ 23,236,917 $ 78,219
Tax increment financing 7,815,524 – – 7,815,524 7,622,600 7,622,600 192,924
Other city tax 5,865,850 – – 5,865,850 4,789,554 6,389,554 (523,704)
Licenses and permits 2,736,252 – – 2,736,252 2,169,450 3,163,700 (427,448)
Use of money and property 5,430,375 2,007,859 – 7,438,234 1,458,800 6,718,700 719,534
Intergovernmental 4,877,977 – – 4,877,977 4,243,890 4,392,245 485,732
Charges for service 1,416,259 35,360,510 – 36,776,769 32,198,700 33,498,700 3,278,069
Miscellaneous 1,646,457 153,985 – 1,800,442 1,266,350 1,266,350 534,092
Total revenues 53,103,830 37,522,354 – 90,626,184 76,986,261 86,288,766 4,337,418
EXPENDITURES/EXPENSES
Public safety 12,044,504 – – 12,044,504 12,816,130 12,917,030 872,526
Public works 4,189,182 – – 4,189,182 4,856,520 4,856,520 667,338
Health and social services 50,000 – – 50,000 67,000 67,000 17,000
Culture and recreation 4,607,063 – – 4,607,063 4,797,550 4,797,550 190,487
Community and economic development 1,854,600 – – 1,854,600 3,009,300 2,884,300 1,029,700
General government 1,670,195 – – 1,670,195 2,331,570 2,331,570 661,375
Debt service 11,301,988 – (561,199) 10,740,789 9,376,625 11,042,770 301,981
Capital projects 25,523,111 – 434,593 25,957,704 46,515,950 46,515,950 20,558,246
Business type activities – 25,356,890 23,629,575 48,986,465 36,312,524 47,845,482 (1,140,983)
Total disbursements 61,240,643 25,356,890 23,502,969 110,100,502 120,083,169 133,258,172 23,157,670
Excess (deficiency) of revenues over
(under) expenditures/expenses (8,136,813) 12,165,464 (23,502,969) (19,474,318) (43,096,908) (46,969,406) 27,495,088
OTHER FINANCING SOURCES
(USES), NET 40,861,083 23,499,434 23,752,283 40,608,234 46,565,000 46,565,000 (5,956,766)
Excess (deficiency) of revenues
and other financing sources over
expenditures/expenses and
other financing uses 32,724,270 35,664,898 249,314 21,133,916 3,468,092 (404,406) 21,538,322
BALANCES, beginning of year 58,329,362 130,761,456 – 189,090,818 125,996,138 125,996,138 63,094,680
BALANCES, end of year $91,053,632 $166,426,354 $ 249,314 $210,224,734 $129,464,230 $125,591,732 $84,633,002
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City of Waukee, Iowa
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING
Year ended June 30, 2024
The budgetary comparison is presented as Required Supplementary Information in accordance with Governmental
Accounting Standards Board Statement No. 41 for governments with significant budgetary perspective differences
resulting from not being able to present budgetary comparisons for the General Fund and each major Special Revenue
Fund.
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 $13,175,003. This budget amendment is reflected in the final
budgeted amounts.
For the year ended June 30, 2024, the City’s disbursements exceeded the amounts budgeted in the business type
activities function.
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City of Waukee, Iowa
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Iowa Public Employees’ Retirement System
(In Thousands)
Required Supplementary Information
Year ended June 30
2024 2023 2022 2021 2020
City’s proportion of the net
pension liability 0.071115% 0.047575% 0.924832% 0.074768% 0.064552%
City’s proportionate share of
the net pension liability (asset) $3,210 $1,797 $(3,193) $5,252 $3,738
City’s covered-employee
payroll $14,654 $12,585 $11,232 $9,852 $9,056
City’s proportionate share
of the net pension liability
as a percentage of
its covered-employee payroll 21.91% 14.28% (28.42)% 53.31% 41.28%
Plan fiduciary net position as a
percentage of the total
pension liability 90.13% 91.40% 100.81% 82.90% 85.45%
Year ended June 30
2019 2018 2017 2016 2015
City’s proportion of the net
pension liability 0.068199% 0.064287% 0.060546% 0.053387% 0.045117%
City’s proportionate share of
the net pension liability (asset) $4,315 $4,282 $3,810 $2,638 $1,829
City’s covered-employee
payroll $8,178 $7,814 $5,949 $6,412 $6,005
City’s proportionate share
of the net pension liability
as a percentage of
its covered-employee payroll 52.76% 54.80% 54.83% 41.14% 30.49%
Plan fiduciary net position as a
percentage of the total
pension liability 83.62% 82.21% 81.82% 85.19% 84.61%
In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30th
of the preceding fiscal year.
See accompanying independent auditor’s report.
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City of Waukee
SCHEDULE OF CITY CONTRIBUTIONS
Iowa Public Employees’ Retirement System for the Last Ten Years
(In Thousands)
Other Information
Year ended June 30
2024 2023 2022 2021 2020
Statutorily required contribution $ 1,394 $ 1,193 $ 1,050 $ 940 $ 875
Contributions in relation to the
statutorily required contribution 1,394 1,193 1,050 940 875
Contribution deficiency $ – $ – $ – $ – $ –
City’s covered-employee payroll $14,654 $12,585 $11,232 $9,852 $9,056
Contributions as a percentage of
covered-employee payroll 9.5% 9.5% 9.3% 9.5% 9.7%
Year ended June 30
2019 2018 2017 2016 2015
Statutorily required contribution $ 827 $ 723 $ 641 $ 578 $ 550
Contributions in relation to the
statutorily required contribution 827 723 641 578 550
Contribution deficiency $ – $ – $ – $ – $ –
City’s covered-employee payroll $8,178 $7,814 $6,949 $6,412 $6,005
Contributions as a percentage of
covered-employee payroll 10.1% 9.3% 9.2% 9.0% 9.2%
See accompanying independent auditor’s report.
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City of Waukee, Iowa
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION LIABILITY
Year ended June 30, 2024
CHANGES OF BENEFIT TERMS
There are no significant changes in benefit terms.
CHANGES OF ASSUMPTIONS
The 2022 valuation incorporated the following refinements after a quadrennial experience study:
• Changed mortality assumptions to the PubG-2010 mortality tables with mortality improvements modeled using
Scale MP-2021.
• Adjusted retirement rates for regular members.
• Lowered disability rates for regular members.
• Adjusted termination rates for all membership groups.
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 result 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%.
See accompanying independent auditor’s report.
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SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-63-
City of Waukee
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
Special Revenue Funds Debt service
Road Employee Public Emergency Special
Use Tax Benefits Improvement Forfeitures Levy Assessments Total
ASSETS
Cash and investments $ 847,685 $ 226,921 $1,830,391 $ 10,748 $ 24,595 $ 320,914 $3,261,254
Receivables
Property tax
Delinquent – 8,205 – – 1,629 – 9,834
Succeeding year property tax – 2,721,903 – – – – 2,721,903
Special assessments – – – – – 97,886 97,886
Other 158,089 – – – – – 158,089
Due from other governments 272,399 – – – – – 272,399
Inventory 212,342 – – – – – 212,342
Total assets $1,490,515 $2,957,029 $1,830,391 $ 10,748 $ 26,224 $ 418,800 $6,733,707
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts payable $ 249,982 $ – $ – $ 1,046 $ – $ – $ 251,028
Accrued compensation 38,698 – – – – – 38,698
Total liabilities 288,680 – – 1,046 – – 289,726
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax – 2,721,903 – – – – 2,721,903
Special assessments – – – – – 97,886 97,886
Total deferred inflows of
resources – 2,721,903 – – – 97,886 2,819,789
FUND BALANCES
Nonspendable 212,342 – – – – – 212,342
Restricted for
Debt service – – – – – 320,914 320,914
Other 989,493 235,126 1,830,391 9,702 26,224 – 3,090,936
Total fund balances 1,201,835 235,126 1,830,391 9,702 26,224 320,914 3,624,192
Total liabilities, deferred
inflows of resources and
fund balances $1,490,515 $2,957,029 $1,830,391 $ 10,748 $ 26,224 $ 418,800 $6,733,707
See accompanying independent auditor's report.
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City of Waukee
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year ended June 30, 2024
Special Revenue Funds Debt service
Road Employee Public Emergency Special
Use Tax Benefits Improvement Forfeitures Levy Assessments Total
REVENUES
Property taxes $ – $2,320,130 $ – $ – $ 460,615 $ – $2,780,745
Other city taxes – – – – – 21,631 21,631
Licenses and permits 24,236 – – – – – 24,236
Use of money and property – 86,264 184,201 – 14,261 19,599 304,325
Intergovernmental 3,384,937 57,162 – – 11,348 – 3,453,447
Miscellaneous 436,287 – 500,000 – – – 936,287
Total revenues 3,845,460 2,463,556 684,201 – 486,224 41,230 7,520,671
EXPENDITURES
Operating
Public works 3,370,713 – – – – – 3,370,713
Capital projects 222,299 – – – – – 222,299
Total expenditures 3,593,012 – – – – – 3,593,012
Excess of revenues over
expenditures 252,448 2,463,556 684,201 – 486,224 41,230 3,927,659
OTHER FINANCING SOURCES
(USES)
Sale of capital assets 32,539 – – – – – 32,539
Transfers out – (2,450,000) (2,000,000) – (460,000) – (4,910,000)
Total other financing sources
(uses) 32,539 (2,450,000) (2,000,000) – (460,000) – (4,877,461)
NET CHANGE IN FUND
BALANCES 284,987 13,556 (1,315,799) – 26,224 41,230 (949,802)
FUND BALANCES, beginning 916,848 221,570 3,146,190 9,702 – 279,684 4,573,994
FUND BALANCES, ending $1,201,835 $ 235,126 $1,830,391 $ 9,702 $ 26,224 $ 320,914 $3,624,192
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
June 30, 2024
Enterprise Funds
Solid Utility
Waste Billing Golf Total
ASSETS
Current assets
Cash and investments $ 97,659 $ 155,668 $ 711,797 $ 965,124
Receivables
Customer accounts 147,541 68,666 – 216,207
Inventories – – 23,266 23,266
Total current assets 245,200 224,334 735,063 1,204,597
Noncurrent assets
Restricted cash and investments – – 3,124 3,124
Capital assets, net of accumulated depreciation 2,089 2,089 1,739,943 1,744,121
Total noncurrent assets 2,089 2,089 1,743,067 1,747,245
Total assets 247,289 226,423 2,478,130 2,951,842
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows – 59,255 35,267 94,522
OPEB related deferred outflows – 3,350 4,796 8,146
Total deferred outflows of resources – 62,605 40,063 102,668
LIABILITIES
Current liabilities
Accounts payable 38 1,306 42,408 43,752
Accrued compensation – 9,604 21,075 30,679
Compensated absences – 8,751 2,383 11,134
Lease agreements payable – – 30,607 30,607
IT subscriptions 2,012 2,012 3,954 7,978
Total current liabilities 2,050 21,673 100,427 124,150
Noncurrent liabilities
Direct borrowings and placements – – 23,754 23,754
Net pension liability – 52,737 31,388 84,125
Total OPEB liability – 12,724 18,216 30,940
Total noncurrent liabilities – 65,461 73,358 138,819
Total liabilities 2,050 87,134 173,785 262,969
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows – 4,723 2,811 7,534
OPEB related deferred inflows – 769 1,101 1,870
Total deferred inflows of resources – 5,492 3,912 9,404
NET POSITION
Net investment in capital assets 2,089 2,089 1,716,189 1,720,367
Unrestricted 243,150 194,313 624,307 1,061,770
Total net position $ 245,239 $ 196,402 $2,340,496 $2,782,137
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2024
Enterprise Funds
Solid Utility
Waste Billing Golf Total
OPERATING REVENUES
Charges for service $1,713,643 $ 551,103 $1,049,861 $3,314,607
Miscellaneous – – 131,243 131,243
Total operating revenues 1,713,643 551,103 1,181,104 3,445,850
OPERATING EXPENSES
Business type activities
Cost of sales and services 2,008,956 473,196 659,516 3,141,668
Depreciation and amortization 1,928 1,928 93,273 97,129
Total operating expenses 2,010,884 475,124 752,789 3,238,797
Operating income (loss) (297,241) 75,979 428,315 207,053
NONOPERATING REVENUES (EXPENSES)
Gain on disposal of capital assets – – 3,147 3,147
Interest income 15,302 6,522 23,581 45,405
Interest expense and fiscal charges (68) (123) (1,093) (1,284)
Total nonoperating revenues 15,234 6,399 25,635 47,268
CHANGE IN NET POSITION (282,007) 82,378 453,950 254,321
NET POSITION, beginning 527,246 114,024 1,886,546 2,527,816
NET POSITION, ending $ 245,239 $ 196,402 $2,340,496 $2,782,137
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2024
Enterprise Funds
Solid Utility
Waste Billing Golf Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customer and users $1,716,548 $ 534,623 $1,049,861 $3,301,032
Cash received from other revenues – – 131,243 131,243
Cash paid for personal services – (268,156) (287,397) (555,553)
Cash paid to supplies (2,008,918) (223,549) (364,159) (2,596,626)
Net cash flows from operating activities (292,370) 42,918 529,548 280,096
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,918) (1,963) (83,621) (87,502)
Principal paid on direct borrowings and placements – – (23,419) (23,419)
Interest and fiscal charges paid (68) (123) (1,093) (1,284)
Net cash flows from capital and related financing activities (1,986) (2,086) (108,133) (112,205)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 15,302 6,522 23,581 45,405
Net cash flows from investing activities 15,302 6,522 23,581 45,405
NET CHANGE IN CASH AND CASH EQUIVALENTS (279,054) 47,354 444,996 213,296
CASH AND CASH EQUIVALENTS, beginning 376,713 108,314 269,925 754,952
CASH AND CASH EQUIVALENTS, ending $ 97,659 $ 155,668 $ 714,921 $ 968,248
RECONCILATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ (297,241) $ 75,979 $ 428,315 $ 207,053
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities
Depreciation and amortization expense 1,928 1,928 93,273 97,129
Change in assets, deferred outflows, liabilities and
deferred inflows
Customer accounts receivable 2,905 (16,480) – (13,575)
Inventories – – (4,014) (4,014)
Accounts payable, net of capital assets 38 (3,172) 10,962 7,828
Accrued compensation – 809 5,310 6,119
Compensated absences – (5,085) (480) (5,565)
Net pension liability – 21,540 15,860 37,400
Deferred outflows of resources – (21,060) (18,119) (39,179)
Deferred inflows of resources – (13,249) (6,176) (19,425)
OPEB liability – 1,708 4,617 6,325
Net cash flows from operating activities $ (292,370) $ 42,918 $ 529,548 $ 280,096
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF CASH FLOWS (continued)
NONMAJOR PROPRIETARY FUNDS
Year ended June 30, 2024
Enterprise Funds
Solid Utility
Waste Billing Golf Total
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 $ 97,659 $ 155,668 $ 711,797 $ 965,124
Restricted assets, cash and investments
Revenue note and interest sinking account – – 3,124 3,124
Cash and cash equivalents at year end $ 97,659 $ 155,668 $ 714,921 $ 968,248
See accompanying independent auditor's report.
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City of Waukee, Iowa
SCHEDULE OF REVENUES BY SOURCE AND EXPENDITURES BY FUNCTION -
ALL GOVERNMENTAL FUNDS
For the last ten years
Modified Accrual Basis
2024 2023 2022 2021 2020
REVENUES
Property tax $23,315,136 $19,733,997 $17,561,303 $16,442,792 $15,148,227
Tax increment financing 7,815,524 6,612,489 8,290,499 6,715,401 5,198,896
Other city tax 5,865,850 5,853,680 5,186,067 3,654,633 3,390,034
Licenses and permits 2,736,252 3,676,978 3,609,343 2,152,133 2,319,665
Use of money and property 5,430,375 2,787,386 476,242 299,770 645,933
Intergovernmental 4,877,977 5,349,020 6,737,803 4,107,086 4,085,765
Charges for service 1,416,259 1,188,166 916,042 841,730 615,964
Miscellaneous 1,646,457 3,368,131 3,110,959 2,102,418 1,642,806
Totals $53,103,830 $48,569,847 $45,888,258 $36,315,963 $33,047,290
EXPENDITURES
Operating
Public safety $12,044,504 $10,222,559 $ 8,787,632 $ 7,661,959 $ 7,097,460
Public works 4,189,182 3,759,100 3,842,050 2,881,426 2,450,087
Health and social services 50,000 52,000 35,000 79,000 –
Culture and recreation 4,607,063 3,896,291 3,076,562 2,354,529 2,231,556
Community and economic development 1,854,600 1,910,148 2,036,364 844,878 862,639
General government 1,670,195 1,512,421 1,589,810 1,379,753 1,119,735
Debt service 11,301,988 9,070,448 15,105,673 12,529,759 9,592,326
Capital projects 25,523,111 29,752,490 34,055,866 33,050,205 13,721,659
Totals $61,240,643 $60,175,457 $68,528,957 $60,781,509 $37,075,462
See accompanying independent auditor's report.
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City of Waukee, Iowa
SCHEDULE OF REVENUES BY SOURCE AND EXPENDITURES BY FUNCTION -
ALL GOVERNMENTAL FUNDS (continued)
For the last ten years
Modified Accrual Basis
2019 2018 2017 2016 2015
REVENUES
Property tax $13,264,907 $11,935,530 $ 9,985,457 $ 9,436,301 $ 8,385,843
Tax increment financing 4,130,856 3,549,942 3,414,595 3,229,861 3,204,146
Other city tax 2,598,522 59,400 35,436 27,921 133,216
Licenses and permits 2,427,879 1,287,456 1,594,670 1,288,941 1,391,499
Use of money and property 934,034 525,131 325,215 195,336 182,503
Intergovernmental 5,368,170 5,921,270 4,250,128 5,241,337 5,602,222
Charges for service 471,715 546,674 540,001 351,341 414,059
Miscellaneous 785,244 255,233 479,481 405,168 385,164
Totals $29,981,327 $24,080,636 $20,624,983 $20,176,206 $19,698,652
EXPENDITURES
Operating
Public safety $ 6,206,481 $ 5,443,568 $ 4,839,355 $ 4,281,395 $ 3,543,201
Public works 2,158,676 1,935,403 1,997,301 2,297,252 2,281,384
Health and social services 800 700 – 5,100 4,800
Culture and recreation 2,125,735 2,039,626 1,838,317 1,763,428 1,599,802
Community and economic development 991,664 1,387,462 1,206,432 1,211,082 760,100
General government 1,139,586 1,074,305 818,853 817,880 872,753
Debt service 8,859,158 7,227,132 8,930,321 7,507,909 6,421,577
Capital projects 16,764,881 25,490,622 10,369,279 11,339,024 19,067,964
Totals $38,246,981 $44,598,818 $29,999,858 $29,223,070 $34,551,581
See accompanying independent auditor's report.
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City of Waukee, Iowa
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended June 30, 2024
Assistance Agency
Federal Grantor/Pass-Through listing pass-through Federal
Grantor/Grant Description number number expenditures
U.S. Department of the Treasury
Iowa Department of Management
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A $1,215,662
U.S. Department of Justice
Passed through Iowa Department of Homeland Security
Bulletproof Vest Partnership Program 16.607 N/A 98,614
Total federal expenditures $1,314,276
NOTE A BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal award activity of the City under
programs of the federal government for the year ended June 30, 2024. 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 the City it is not intended to and does not present the financial
position, change in net position, or cash flows of the City.
NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
NOTE C INDIRECT COST RATE
The City has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.
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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, 2024, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated November 6, 2024.
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 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 or significant deficiencies may exist that were not identified.
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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, 2024 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 Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the finding identified in our audit and described in the accompanying schedule of findings
and questioned costs. The City’s responses were not subject to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Denman CPA LLP
West Des Moines, Iowa
November 6, 2024
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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, 2024. 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 programs for the year
ended June 30, 2024.
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.
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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
order 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 over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or 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
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to mer it attention by those charged
with governance.
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Our consideration of internal control over compliance was for the limited 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 internal 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 CPA LLP
West Des Moines, Iowa
November 6, 2024
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City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year ended June 30, 2024
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 U.S. 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
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City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2024
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.
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City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2024
Part IV—Other Findings Related to Required Statutory Reporting
IV-A-24 CERTIFIED BUDGET
Disbursements exceeded the amounts budgeted in the business type activities function at the end of the fiscal
year. In addition, disbursements exceeded the amounts budgeted in the debt service and business type
activities function prior to the budget amendment in April 2024. 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-24 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-24 TRAVEL EXPENSE
No expenditures of City money for travel expenses of spouses of City officials and/or employees were noted.
IV-D-24 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-24 BUSINESS TRANSACTIONS
We noted no business transactions between the City and City officials or employees in excess of $1,500.
IV-F-24 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-24 COUNCIL MINUTES
No transactions were found that we believe should have been approved in the Council minutes but were not.
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City of Waukee, Iowa
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year ended June 30, 2024
Part IV—Other Findings Related to Required Statutory Reporting (continued)
IV-H-24 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-24 REVENUE BONDS AND NOTES
No instances of noncompliance with the City’s revenue bond and note provisions were noted.
IV-J-24 TAX INCREMENT FINANCING (TIF)
The Special Revenue, Tax Increment Financing (TIF) Fund properly disbursed payments for TIF loans and
rebates. Also, the City properly completed the Tax Increment Debt Certification Forms to request TIF property
taxes.
IV-K-24 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.
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,
2024. 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 August 5, 2024. 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. No 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 these 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. 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 November 6, 2024.
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 CPA LLP
West Des Moines, Iowa
November 6, 2024