HomeMy WebLinkAbout2026-01-19 F01 Presentation_FY2025 AuditAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: January 19, 2026
AGENDA ITEM:Independent Auditor’s Final Report for the fiscal year ending June 30, 2025
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. FY2025 Audit Report
PREPARED BY:Becky Schuett
REVIEWED BY:
F1
Honorable Mayor and
Members of the City Council
Waukee, Iowa
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Waukee (the City) for the year ended June 30,
2025.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 4, 2025. Professional standards also require
that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Waukee are described in Note 1 to the financial statements. During the
year ended June 30, 2025,the City implemented Governmental Accounting Standards Board Statement No. 101,
Compensated Absences.No other new accounting policies were adopted and the application of existing policies
was not changed during the year. We noted no transactions entered into by the City during the year for which
there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the
financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements
and because of the possibility that future events affecting them may differ significantly from those expected. The
most sensitive estimates affecting the financial statements were:
•Management's estimate of depreciation expense is based on the City's estimated useful life of assets using
the straight line method.
•Management's estimate of other post employment benefits (OPEB) obligation and OPEB related deferred
inflows and outflows of resources is based upon actuarial assumptions that represent the anticipated future
experience of the OPEB plan.
•Management's estimate of net pension liability and pension related deferred inflows and outflows of
resources is based upon actuarial assumptions and the City's proportionate share of the Plan's total
pension liability.
We evaluated the key factors and assumptions used to develop 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 5 to the financial statements and the pension plan disclosure
in Note 6 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. In addition, the attached schedule summarizes
uncorrected misstatements of the financial statements. Management has determined that their effects are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
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, 2025.
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, 2025
Passed adjustment threshold 281,300$
Library Foundation P Staff Election 2686 536,800 536,800
Total 536,800$ -$ 536,800$ -$ -$ -$
Effect of unadjusted audit differences from prior years -
Combined current and prior year audit differences (Rollover method)536,800 - 536,800 - - -
Financial Statement Caption Totals 709,665,648 275,947,433 433,718,215$109,499,771 82,348,448 27,151,323$
Current year differences as a % of financial statement captions (Iron Curtain Method) 0.1% 0.0% 0.1% 0.0% 0.0% 0.0%
Current and prior year audit differences as a % of financial statement caption (Rollover Method) 0.1% 0.0% 0.1% 0.0% 0.0% 0.0%
w/p ref. Total Assets
FINANCIAL STATEMENT EFFECT
City of Waukee, Iowa
Year ended June 30, 2025
Total Liabilities
Equity / Net
Position Revenues Expenses
Change in net
position
Description (Nature) of Audit
Difference (AD)
Factual (F)
Judgmental
(J), or
Projected (P) Cause
Summary of Passed Adjustments
City of Waukee, Iowa
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS
June 30, 2025
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 28-55
REQUIRED SUPPLEMENTARY INFORMATION 56
Schedule of changes in the City's total OPEB liability, related ratios and notes 57
Budgetary comparison schedule of revenues, expenditures/expenses and changes in
balances—budget and actual—governmental funds and proprietary funds 58
Note to required supplementary information—budgetary reporting 59
Schedule of the City's proportionate share of the net pension liability 60
Schedule of City contributions 61
Notes to required supplementary information—pension liability 62
SUPPLEMENTARY INFORMATION 63
Nonmajor Governmental Funds
Combining balance sheet 64
Combining schedule of revenues, expenditures and changes in fund balances 65
Nonmajor Proprietary Funds
Combining statement of net position 66
Combining statement of revenues, expenses and changes in fund net position 67
Combining statement of cash flows 68-69
Schedule of revenues by source and expenditures by function—all governmental funds 70-71
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
SCHEDULE OF FINDINGS 74-76
City of Waukee, Iowa
OFFICIALS
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 2026
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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, 2025,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, 2025,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.
Change in Accounting Principle
As described in Note 2 to the financial statements, the City adopted new accounting guidance related to
Governmental Accounting Standards Board Statement No. 101,Compensated Absences.Our opinion is not
modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about City of Waukee, Iowa's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known information
that may raise substantial doubt shortly thereafter.
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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 57 through 62 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, 2024
(which are not presented herein) and expressed unmodified opinions on those financial statements. The
supplementary information included in pages 64 –71 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, 2025,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, 2025
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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, 2025 .We
encourage readers to consider this information in conjunction with the City’s financial statements, which follow.
2025 FINANCIAL HIGHLIGHTS
•Revenues of the City’s Governmental Funds increased 12.3%,or $6,546,087 ,from fiscal 2024 to fiscal
2025.Property and Other City Taxes increased $2,316,532 ,Tax Increment Financing increased
$3,541,648 ,Licenses and Permits decreased $301,464,Intergovernmental increased $601,759,Charges
for Services increased $408,688,Use of Money/Property increased $50,748 and Miscellaneous decreased
$71,824.
•Program expenditures of the City’s Governmental Funds increased 52.9%,or $32,449,591 in fiscal 2025
from fiscal 2024.Public Safety expenses increased $1,257,394,Health and Social Services increased
$30,000,Community and Economic Development increased $715,408 ,Culture and Recreation increased
$296,089,Public Works decreased $7,506,General Government increased $88,886,Debt Service
increased $4,324,305 and Capital Projects increased $25,745,015 .
•The City has a net position of $433,514,270 on June 30, 2025 as compared to $406,566,892 on June 30,
2024.Of this amount, the net position of the Governmental Activities was $259,466,665 and the net
position of the Business Type Activities was $174,047,605.
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, and Schedule of Revenues by Source and Expenditures by Function.
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
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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 Sales Tax, 3) the Debt Service Fund and 4) the Capital Projects Fund. These funds are
reported using the current financial resources measurement focus and the modified accrual basis of
accounting, which measures cash and all other financial assets that can readily be converted to 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, Storm Water, Golf, and Sanitation Funds. The City is
responsible for ensuring the assets reported in these funds are used only for their intended purposes and
by those to whom the assets belong.
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
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The financial statements required for proprietary funds include a Statement of Net Position,a Statement of
Revenues, Expenses and Changes in Fund Net Position and a Statement of Cash Flows.
Reconciliations 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
2025 2024 2025 2024 2025 2024
Current and Other Assets $138,297 $133,826 $43,103 $37,796 $181,399 $171,622
Non-Current Assets 1,370 1,321 – –1,370 1,321
Capital Assets 349,056 305,991 174,409 164,187 523,464 470,178
Total Assets 488,722 441,138 217,511 201,983 706,234 643,121
Deferred Outflows of Resources 2,941 3,370 423 507 3,365 3,877
Current Liabilities 21,852 16,473 13,479 5,487 35,331 21,960
Non-Current Liabilities 163,641 149,962 30,350 30,526 193,991 180,488
Total Liabilities 185,493 166,435 43,829 36,013 229,322 202,448
Deferred Inflows of Resources 46,704 37,933 58 49 46,762 37,982
Net Position
Net investment in Capital Assets 180,560 177,418 142,460 135,590 323,020 313,008
Restricted 62,006 47,687 1,655 1,335 63,661 49,042
Unrestricted 16,901 15,035 29,933 29,481 46,833 44,516
Total Net Position $259,467 $240,140 $174,048 $166,406 $433,514 $406,566
Net position of governmental activities increased $19,326,127 ,or 8.05%,over fiscal year 2024.Net position of
business type activities increased $7,621,251 ,or 4.58%,over fiscal year 2024.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 $46,833,463 at the end of this year.
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
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Changes in Net Position for the Year Ended June 30, 2025 (in thousands of dollars)
Governmental
Activities
Business Type
Activities Total
2025 2024 2025 2024 2025 2024
Revenues
Property Tax Levied and Other City Tax $25,135 $23,494 $ – $ – $25,135 $23,494
Tax Increment Financing 11,357 7,816 – –11,357 7,816
Local Option Sales Tax 6,337 5,686 – –6,337 5,686
Property Tax Replacement 337 415 – –337 415
Unrestricted Interest 4,995 5,096 1,908 1,917 6,903 7,013
Operating Grants and Contributions 4,147 3,528 – –4,147 3,528
Charges for Services 6,337 6,025 38,037 35,361 44,374 41,386
Capital Grants and Contributions 3,810 13,107 7,134 23,752 10,944 36,859
Gain from Disposal of Capital Assets 27 141 (714) 113 (687) 254
Grants/Contributions Not Restricted 677 675 – –677 675
Miscellaneous 16 19 279 245 295 264
Total Revenues 63,175 66,002 46,644 61,388 109,819 127,390
Transfers 488 366 (488)(366)––
Total Revenues and Transfers $63,663 $66,368 $46,156 $61,022 $109,819 $127,390
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
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Governmental
Activities
Business Type
Activities Total
2025 2024 2025 2024 2025 2024
Program Expenses
Public Safety $14,088 $12,333 $ – $ – $14,088 $12,333
Public Works 12,727 19,606 – –12,727 19,606
Health and Social Services 115 50 – –115 50
Culture and Recreation 8,034 7,468 – –8,034 7,468
Community and Economic Development 2,306 1,845 – –2,306 1,845
General Government 2,097 2,965 – –2,097 2,965
Interest on Long-Term Debt 4,971 4,069 – –4,971 4,069
Business Type Activities – –29,278 25,357 29,278 25,357
Special Items
Contribution to Central Iowa Water Works ––9,257 –9,257 –
Total Expenses 44,337 48,336 38,535 25,357 73,616 73,693
Increase in Net Position 19,326 18,032 7,621 35,665 26,947 53,697
Net Position Beginning of Year 240,141 222,109 166,426 130,761 406,567 352,870
Net Position End of Year $259,467 $240,141 $174,048 $166,426 $433,514 $406,567
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
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The City decreased the property tax levy by $0.10 to $12.95 per $1,000 for FY25 ,while recognizing an increase
of $5,858,180 in property tax revenue due to increase in residential and commercial property valuation. Revenues
for operating and capital grants, contributions restricted and unrestricted interest, decreased by $25,404,000 ,
charges for services increased by $2,988,000 ,gain from disposal of capital assets decreased $941,000 and
miscellaneous revenues increased by $31,000.
Overall revenues for governmental activities decreased approximately $2,827,000 from the prior year.
The cost of all governmental activities this year was approximately $44.3 million compared to approximately $48.3
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 ($30.0)million as some of the cost was paid by those directly benefited
from the programs ($6,336,554 )or by other governments and organizations which subsidized certain programs
with grants and contributions ($7,630,008).
Overall revenues for business type activities decreased approximately $14,744,000 over the prior year.
The cost of all business activities increased approximately $13.2 million to $38.5 million compared to
approximately $25.4 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
$83,266,032 at June 30, 2025,compared to $91,053,632 combined fund balance at June 30, 2024.
The General Fund showed an increase of $2,376,671 from the prior year to $18,578,004.
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 2025 with a $9,921,376 balance compared to the prior
year ending balance of $6,191,724 .
The Debt Service Fund ended fiscal 2025 with a $14,333,760 balance compared to the prior year ending balance
of $10,566,194 .Bond principal and interest payments increased by $4,268,885 in fiscal 2025.
The Local Option Sales Tax Fund ended fiscal 2025 with a $8,154,491 balance compared to the prior year ending
balance of $10,966,391 .
The Capital Projects Fund ended fiscal 2025 with a $27,819,599 balance compared to the prior year ending
balance of $43,503,798 .
Proprietary Fund Highlights
The Water Fund, which accounts for the operation and maintenance of the City’s water system, ended fiscal 2025
with a net position of $45,630,975 compared to the prior year ending net position balance of $49,237,949 .
The Sewer Fund, which accounts for the operation and maintenance of the City’s wastewater treatment and
sanitary sewer system, ended fiscal 2025 with a net position of $71,249,463 ,compared to the prior year ending
net position balance of $64,438,305 .
The Gas Fund, which accounts for the operations and maintenance of the City’s gas utility, ended fiscal 2025 with
a $25,669,357 net position balance, compared to the prior year ending net position balance of $24,491,690 .
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
-12-
The Stormwater Fund, which accounts for the operation and maintenance of the City’s stormwater utility, ended
fiscal year 2025 with a net position of $28,384,534,compared to the prior year ending net position balance of
$25,476,273 .
BUDGETARY HIGHLIGHTS
Over the course of the year, the City of Waukee amended its budget once in May of 2025. 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 $349,055,730
(net of accumulated depreciation) at June 30, 2025.Capital assets for business type activities totaled
$171,680,302 (net of accumulated depreciation) at June 30, 2025 .See Note 4 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 a second Public
Safety Building, the T Avenue Corridor, the SE Archer Avenue Extension, the addition of flashing yellow turn
arrows at key intersections throughout the City and the completion of the Ute Avenue Overlay project. In addition
to these projects, several improvements were made to City Parks including new parking and playground
improvements to Centennial Park and the addition of Stratford Crossing Park.
For business type activities, the major additions included annual additions to the water, sewer and gas distribution
systems.
Construction in progress on June 30, 2025 for the City consists of several governmental activities projects
including the first phase of a multi-year project to extend University Avenue from South Warrior Lane to 10th
Street, as well as continued progress on the Spring Crest Park, the Prairie Rose Greenway Trail project and
several culvert replacements. Utility projects in progress include the Northeast Outfall Sewer, which is nearing
completion, Bluestem Truck Sewer phase 2, West Area Trunk Sewer phase 3 and Lift Station No 4 and 6
rehabilitations.
Long-Term Debt
At June 30, 2025,the City had $163,641,272 in total non-current debt outstanding for governmental activities.
Total non-current debt outstanding for business type activities was $30,349,601 at June 30, 2025 .
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 $4,905,358,271 of assessed valuation, the City’s outstanding general obligation debt of $157,880,000 or
64.37%,is below its constitutional debt limit of $245,267,914 .Other obligations include accrued compensated
absences, total OPEB liability and net pension liability. Additional information about the City’s long-term debt is
presented in Note 5 to the financial statements.
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
-13-
ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE
Several economic factors affected decisions made by the City in setting its fiscal 2026 budget. The City of
Waukee will experience a significant increase in General Fund revenues and expenditures from fiscal 2025 to
fiscal 2026.The major factors that will play a role in this change are the increase in property tax revenues from
increased valuations for fiscal 2026, and the continued increase generated by the Local Sales Tax approved by
voters in November 2017.
The General Fund is projected to end fiscal 2026 with a fund balance of approximately $15,649,000 ,or a planned
decrease of $492,000 from fiscal 2025.The tax levy rates per $1,000 of taxable valuation for fiscal 2026 were
reduced by $0.15,with the current levy as provided below:
General Levy $7.89
Emergency Levy 0.00
Debt Service Levy 3.17
Employee Benefits Levy 1.74
Total $12.80
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.
City of Waukee, Iowa
MANAGEMENT'S DISCUSSION AND ANALYSIS
-14-
BASIC FINANCIAL STATEMENTS
-15-
City of Waukee, Iowa
STATEMENT OF NET POSITION
June 30, 2025
Primary Government
Governmental Business Type
Activities Activities Total
ASSETS
Current assets, unrestricted
Cash and investments $90,878,008 $39,326,888 $130,204,896
Receivables
Delinquent property taxes 59,873 –59,873
Succeeding year property taxes 45,052,377 –45,052,377
Special assessments 72,704 –72,704
Customer accounts –2,822,354 2,822,354
Other 803,653 –803,653
Due from other governments 1,065,877 –1,065,877
Inventories 364,155 953,451 1,317,606
Total current assets, unrestricted 138,296,647 43,102,693 181,399,340
Restricted cash and investments –2,728,402 2,728,402
Noncurrent assets
Lease receivable 1,369,998 –1,369,998
Capital assets, net 349,055,730 171,680,302 520,736,032
Total assets 488,722,375 217,511,397 706,233,772
DEFERRED OUTFLOWS OF RESOURCES
Pension 2,748,094 369,119 3,117,213
OPEB 193,225 54,136 247,361
Total deferred outflows of resources 2,941,319 423,255 3,364,574
LIABILITIES
Current liabilities
Accounts payable 10,151,165 1,637,531 11,788,696
Accrued compensation 850,961 116,938 967,899
Accrued interest payable 441,000 54,249 495,249
Customer deposits payable –415,202 415,202
Compensated absences 123,026 340,408 463,434
Lease agreements payable 59,875 22,799 82,674
IT subscriptions 282,107 79,903 362,010
General obligation bonds/notes 8,320,000 –8,320,000
Revenue notes payable –635,000 635,000
Direct borrowings 745,000 1,203,162 1,948,162
Due to Central Iowa Water Works –8,973,975 8,973,975
Installment contracts 878,463 –878,463
Total current liabilities 21,851,597 13,479,167 35,330,764
See Notes to Financial Statements.
-16-
City of Waukee, Iowa
STATEMENT OF NET POSITION (continued)
June 30, 2025
Primary Government
Governmental Business Type
Activities Activities Total
Noncurrent liabilities
Compensated absences 1,419,967 –1,419,967
Lease agreements payable 192,509 –192,509
IT subscriptions 222,995 –222,995
General obligation bonds/notes, net 143,158,299 –143,158,299
Revenue notes payable, net –9,766,702 9,766,702
Direct borrowings 9,840,000 20,097,794 29,937,794
Installment contracts 6,160,504 –6,160,504
Net pension liability 1,758,641 236,217 1,994,858
Total OPEB liability 888,357 248,888 1,137,245
Total noncurrent liabilities 163,641,272 30,349,601 193,990,873
Total liabilities 185,492,869 43,828,768 229,321,637
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Leases 1,264,368 –1,264,368
Succeeding year property taxes 45,052,377 –45,052,377
Pension 344,619 46,289 390,908
OPEB 42,796 11,990 54,786
Total deferred inflows of resources 46,704,160 58,279 46,762,439
NET POSITION
Net investment in capital assets 180,559,915 142,459,833 323,019,748
Restricted for
Debt service 14,364,661 1,654,982 16,019,643
Other purposes 47,641,416 –47,641,416
Unrestricted 16,900,673 29,932,790 46,833,463
Total net position $259,466,665 $174,047,605 $433,514,270
See Notes to Financial Statements.
-17-
City of Waukee, Iowa
STATEMENT OF ACTIVITIES
Year ended June 30, 2025
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Service Contributions Contributions
FUNCTIONS/PROGRAMS
Primary government
Governmental activities
Public safety $14,087,897 $3,911,142 $25,186 $ –
Public works 12,727,430 683,973 4,114,725 3,126,179
Health and social services 114,501 – – –
Culture and recreation 8,033,580 1,455,462 7,441 683,875
Community and economic development 2,305,513 – – –
General government 2,097,199 285,977 – –
Interest on long-term debt 4,970,642 –––
Total governmental activities 44,336,762 6,336,554 4,147,352 3,810,054
Business-type activities
Water 7,458,803 11,010,264 –1,888,033
Sewer 6,351,251 10,486,164 –2,245,554
Gas 9,908,398 10,803,874 – –
Stormwater 1,932,898 1,971,992 –3,000,897
Other 3,625,899 3,764,645 ––
Total business-type activities 29,277,249 38,036,939 –7,134,484
Total primary government $73,614,011 $44,373,493 $4,147,352 $10,944,538
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 (loss) from disposal of capital assets
Miscellaneous
SPECIAL ITEMS
Contribution to Central Iowa Water Works
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.
-18-
Net Revenue (Expenses) and Changes in Net
Position
Primary Government
Governmental Business Type
Activities Activities Total
$(10,151,569)$ – $(10,151,569)
(4,802,553)–(4,802,553)
(114,501)–(114,501)
(5,886,802)–(5,886,802)
(2,305,513)–(2,305,513)
(1,811,222)–(1,811,222)
(4,970,642)–(4,970,642)
(30,042,802)–(30,042,802)
–5,439,494 5,439,494
–6,380,467 6,380,467
–895,476 895,476
–3,039,991 3,039,991
–138,746 138,746
–15,894,174 15,894,174
(30,042,802)15,894,174 (14,148,628)
14,693,476 –14,693,476
7,479,972 –7,479,972
2,726,307 –2,726,307
11,357,171 –11,357,171
6,337,314 –6,337,314
235,267 –235,267
337,037 –337,037
676,804 –676,804
4,994,569 1,908,086 6,902,655
27,112 (714,281) (687,169)
15,568 278,696 294,264
–(9,257,092) (9,257,092)
488,332 (488,332)–
49,368,929 (8,272,923)41,096,006
19,326,127 7,621,251 26,947,378
240,140,538 166,426,354 406,566,892
$259,466,665 $174,047,605 $433,514,270
See Notes to Financial Statements.
-19-
City of Waukee, Iowa
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2025
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option
General Projects Service Renewal TIF Sales Tax Funds Total
ASSETS
Cash and investments $19,982,074 $35,054,259 $14,322,731 $10,004,426 $7,436,263 $4,078,255 $90,878,008
Receivables
Delinquent property tax 28,790 –13,279 12,518 –5,286 59,873
Succeeding year property tax 15,913,320 –8,487,271 17,145,808 –3,505,978 45,052,377
Special assessments – – – – –72,704 72,704
Other 644,978 5,448 – – –153,227 803,653
– – – –718,228 347,649 1,065,877
Inventory 159,120 ––––205,035 364,155
Total assets $36,728,282 $35,059,707 $22,823,281 $27,162,752 $8,154,491 $8,368,134 $138,296,647
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCES
LIABILITIES
Accounts payable $1,137,596 $7,240,108 $2,250 $95,568 $ – $282,076 $8,757,598
Accrued compensation 802,387 ––––48,574 850,961
Total liabilities 1,939,983 7,240,108 2,250 95,568 –330,650 9,608,559
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax 15,913,320 –8,487,271 17,145,808 –3,505,978 45,052,377
Special assessments – – – – –72,704 72,704
Other 296,975 –––––296,975
Total deferred inflows of
resources 16,210,295 –8,487,271 17,145,808 –3,578,682 45,422,056
FUND BALANCES
Nonspendable 159,120 – – – –205,035 364,155
Restricted for
Capital projects –27,819,599 – – – –27,819,599
Debt service – –14,333,760 – –30,901 14,364,661
Urban renewal – – –9,921,376 – –9,921,376
Other purposes 280,588 – – –8,154,491 4,222,866 12,657,945
Committed 1,711,323 – – – – –1,711,323
Unassigned 16,426,973 –––––16,426,973
Total fund balances 18,578,004 27,819,599 14,333,760 9,921,376 8,154,491 4,458,802 83,266,032
Total liabilities, deferred
inflows of resources and
fund balances $36,728,282 $35,059,707 $22,823,281 $27,162,752 $8,154,491 $8,368,134 $138,296,647
See Notes to Financial Statements.
-20-
City of Waukee, Iowa
RECONCILIATION OF THE BALANCE SHEET—
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
June 30, 2025
Total governmental fund balances $83,266,032
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. 349,055,730
Other long term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds, as unavailable revenue. 369,679
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,
IT subscriptions and lease agreements payable, and accrued interest payable,
are not due and payable in the current period and, therefore, are not reported as
liabilities in the governmental funds. (175,884,310)
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 2,941,319
Deferred inflows of resources (387,415)2,553,904
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 1,369,998
Deferred inflows of resources (1,264,368)105,630
Net position of governmental activities $259,466,665
See Notes to Financial Statements.
-21-
City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year ended June 30, 2025
Special Revenue Other
Local Nonmajor
Capital Debt Urban Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
REVENUES
Property tax $14,693,476 $ – $7,479,972 $ – $ – $2,726,307 $24,899,755
Tax increment financing – – –11,357,172 – –11,357,172
Other city tax 252,480 – – –6,337,314 7,969 6,597,763
Licenses and permits 2,427,693 – – – –7,095 2,434,788
Use of money and property 1,283,740 2,156,929 501,070 671,421 661,720 206,243 5,481,123
Intergovernmental 781,006 333,846 122,411 79,177 –4,163,296 5,479,736
Charges for service 1,824,947 – – – – –1,824,947
Miscellaneous 738,390 69,224 –––767,019 1,574,633
Total revenues 22,001,732 2,559,999 8,103,453 12,107,770 6,999,034 7,877,929 59,649,917
EXPENDITURES
Operating
Public safety 13,301,898 – – – – –13,301,898
Public works 609,470 – – – –3,572,206 4,181,676
Health and social services 80,000 – – – – –80,000
Culture and recreation 4,903,152 – – – – –4,903,152
Community and economic
development 1,112,065 – –1,457,943 – –2,570,008
General government 1,759,081 – – – – –1,759,081
Debt service
Principal –175,941 9,263,929 – – –9,439,870
Interest – –5,833,368 – – –5,833,368
Bond issuance costs –346,154 6,901 – – –353,055
Capital projects 734,102 50,217,911 –––316,113 51,268,126
Total expenditures 22,499,768 50,740,006 15,104,198 1,457,943 –3,888,319 93,690,234
Excess (deficiency) of
revenues over (under)
expenditures (498,036)(48,180,007)(7,000,745)10,649,827 6,999,034 3,989,610 (34,040,317)
OTHER FINANCING
SOURCES (USES)
Bond proceeds –23,755,000 – – – –23,755,000
Bond premium –1,964,678 – – – –1,964,678
Sale of capital assets 44,707 – – – – –44,707
Transfers in 2,830,000 7,686,000 10,768,311 – – –21,284,311
Transfers out –(909,870)–(6,920,175)(9,810,934)(3,155,000)(20,795,979)
Total other financing
sources (uses) 2,874,707 32,495,808 10,768,311 (6,920,175)(9,810,934)(3,155,000)26,252,717
2,376,671 (15,684,199) 3,767,566 3,729,652 (2,811,900) 834,610 (7,787,600)
16,201,333 43,503,798 10,566,194 6,191,724 10,966,391 3,624,192 91,053,632
FUND BALANCES,ending $18,578,004 $27,819,599 $14,333,760 $9,921,376 $8,154,491 $4,458,802 $83,266,032
See Notes to Financial Statements.
-22-
City of Waukee, Iowa
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES —
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year ended June 30, 2025
Change in fund balances—Total governmental funds $(7,787,600)
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 51,366,469
Contributed assets 2,792,333
Subscription-based IT agreements and lease right-of-use assets 589,454
Depreciation and amortization expense (12,090,736)42,657,520
Governmental funds do not report capital assets and therefore do not report gains or
losses on disposal of those assets. (24,242)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. 35,725
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
General obligation bonds (23,755,000)
Lease agreements payable (17,010)
Subscription-based IT arrangements (686,253)
Repayments
General obligation bonds 7,870,000
Direct borrowings and direct placements 660,000
Installment contracts 1,198,937
Lease agreements payable 47,669
Subscription-based IT arrangements 444,851 (14,236,806)
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. (868,837)
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. 1,358,290
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 (873,949)
Pension expense and other postemployment benefits (909,917)
Interest on long-term debt (56,000)
Lease related revenue 31,943 (1,807,923)
Change in net position of governmental activities $19,326,127
See Notes to Financial Statements.
-23-
City of Waukee, Iowa
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2025
Enterprise Funds
Nonmajor
Enterprise
Water Sewer Gas Stormwater Funds Total
ASSETS
Current assets
Cash and investments $14,694,066 $13,810,149 $5,943,350 $3,926,044 $953,279 $39,326,888
Receivables, net of allowances
Customer accounts 1,262,702 777,642 345,919 169,493 266,598 2,822,354
Due from other funds – – – –57,614 57,614
Inventories 367,322 –567,107 –19,022 953,451
Total current assets 16,324,090 14,587,791 6,856,376 4,095,537 1,296,513 43,160,307
Noncurrent assets
Restricted cash and investments 1,025,558 1,206,237 182,158 298,891 15,558 2,728,402
Capital assets, net 42,707,761 80,114,754 19,401,147 27,420,115 2,036,525 171,680,302
Total noncurrent assets 43,733,319 81,320,991 19,583,305 27,719,006 2,052,083 174,408,704
Total assets 60,057,409 95,908,782 26,439,681 31,814,543 3,348,596 217,569,011
Pension related deferred outflows 68,019 67,923 109,244 44,996 78,937 369,119
OPEB related deferred outflows 11,830 12,034 14,801 7,825 7,646 54,136
Total deferred outflows of resources 79,849 79,957 124,045 52,821 86,583 423,255
LIABILITIES
Current liabilities
Accounts payable 624,160 534,054 382,392 41,504 55,421 1,637,531
Due to other funds – – – –57,614 57,614
Accrued compensation 20,187 20,153 28,172 14,143 34,283 116,938
Compensated absences 73,436 74,369 108,098 38,405 46,100 340,408
Customer deposits payable 259,852 –155,350 – –415,202
Lease agreements payable – – – –22,799 22,799
IT subscriptions 2,019 2,019 65,421 2,019 8,425 79,903
Revenue notes payable 365,000 170,000 –100,000 –635,000
–1,133,162 –70,000 –1,203,162
Due to Central Iowa Water Works 8,973,975 – – – –8,973,975
Interest payable 11,979 30,920 –11,350 –54,249
Total current liabilities 10,330,608 1,964,677 739,433 277,421 224,642 13,536,781
Noncurrent liabilities
Revenue notes payable, net 4,066,610 2,566,829 –3,133,263 –9,766,702
–20,097,794 – – –20,097,794
Net pension liability 43,529 43,466 69,911 28,795 50,516 236,217
Total OPEB liability 54,385 55,328 68,047 35,975 35,153 248,888
Total noncurrent liabilities 4,164,524 22,763,417 137,958 3,198,033 85,669 30,349,601
Total liabilities 14,495,132 24,728,094 877,391 3,475,454 310,311 43,886,382
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows 8,530 8,517 13,700 5,643 9,899 46,289
OPEB related deferred inflows 2,621 2,665 3,278 1,733 1,693 11,990
Total deferred inflows of resources 11,151 11,182 16,978 7,376 11,592 58,279
NET POSITION
Net investment in capital assets 38,274,132 56,144,950 19,335,726 26,699,724 2,005,301 142,459,833
Restricted for bond retirement 406,808 1,005,317 39,758 187,541 15,558 1,654,982
Unrestricted 6,950,035 14,099,196 6,293,873 1,497,269 1,092,417 29,932,790
Total net position $45,630,975 $71,249,463 $25,669,357 $28,384,534 $3,113,276 $174,047,605
See Notes to Financial Statements.
-24-
City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Year ended June 30, 2025
Enterprise Funds
Nonmajor
Enterprise
Water Sewer Gas Stormwater Funds Total
OPERATING REVENUES
Charges for service $11,010,264 $10,486,164 $10,803,874 $1,971,992 $3,764,645 $38,036,939
Miscellaneous 3,238 19,754 24,140 12,859 145,487 205,478
Total operating revenues 11,013,502 10,505,918 10,828,014 1,984,851 3,910,132 38,242,417
OPERATING EXPENSES
Business-type activities
Cost of sales and services 6,141,269 3,759,315 9,267,578 1,092,993 3,533,936 23,795,091
Depreciation and amortization 1,180,012 1,966,962 637,891 709,131 90,879 4,584,875
Total operating expenses 7,321,281 5,726,277 9,905,469 1,802,124 3,624,815 28,379,966
Operating income 3,692,221 4,779,641 922,545 182,727 285,317 9,862,451
Interest income 737,197 659,619 258,051 206,830 46,389 1,908,086
Rental income 73,218 – – – –73,218
Gain (loss) on disposal of capital assets (466,116) (248,682)– –517 (714,281)
Grant revenue – – –318,896 –318,896
Capital contributions 1,888,033 2,245,554 –2,682,001 –6,815,588
Interest expense and fiscal charges (137,522)(624,974)(2,929)(130,774)(1,084)(897,283)
Total nonoperating revenues expenses) 2,094,810 2,031,517 255,122 3,076,953 45,822 7,504,224
Income before special items and transfers 5,787,031 6,811,158 1,177,667 3,259,680 331,139 17,366,675
CONTRIBUTION TO CENTRAL
IOWA WATER WORKS (9,257,092)– – – –(9,257,092)
TRANSFERS (OUT)(136,913)––(351,419)–(488,332)
CHANGE IN NET POSITION (3,606,974) 6,811,158 1,177,667 2,908,261 331,139 7,621,251
NET POSITION,beginning 49,237,949 64,438,305 24,491,690 25,476,273 2,782,137 166,426,354
NET POSITION,ending $45,630,975 $71,249,463 $25,669,357 $28,384,534 $3,113,276 $174,047,605
See Notes to Financial Statements.
-25-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year ended June 30, 2025
Enterprise Funds
Nonmajor
Enterprise
Water Sewer Gas Stormwater Funds Total
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers and users $10,823,008 $10,415,262 $10,605,875 $1,943,905 $3,714,254 $37,502,304
Cash received from other revenues 3,238 19,754 24,140 12,859 145,487 205,478
Cash paid for personal services (1,106,848) (1,126,190) (1,387,705) (739,774) (620,414) (4,980,931)
Cash paid to suppliers (5,143,103)(2,594,996)(8,107,442)(323,654)(2,870,162)(19,039,357)
Net cash flows from operating activities 4,576,295 6,713,830 1,134,868 893,336 369,165 13,687,494
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (136,913)––(351,419)–(488,332)
Net cash flows from noncapital financing
activities (136,913)––(351,419)–(488,332)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of
capital assets (2,349,490) (2,592,437) (952,785) (511,566) (390,127) (6,796,405)
Proceeds from sale of capital assets 2,430 2,658 – – –5,088
Proceeds from capital grants – – –318,896 –318,896
Principal paid on revenue notes (355,000) (160,000)– – –(515,000)
Principal paid on direct borrowings
and placements –(1,055,743)–(170,000) (23,754) (1,249,497)
Interest and fiscal charges paid (159,915) (631,897) (2,929) (143,122) (1,084) (938,947)
Proceeds from bond issuance –1,867,399 –––1,867,399
Net cash flows from capital and related
financing activities (2,861,975)(2,570,020)(955,714)(505,792)(414,965)(7,308,466)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 737,197 659,619 258,051 206,830 46,389 1,908,086
Proceeds from sale of investments –81,014 – – –81,014
Purchase of investments (8,703)– – – –(8,703)
Cash received from property rental 73,218 ––––73,218
Net cash flows from investing activities 801,712 740,633 258,051 206,830 46,389 2,053,615
NET CHANGE IN CASH AND CASH
EQUIVALENTS 2,379,119 4,884,443 437,205 242,955 589 7,944,311
12,606,016 10,131,943 5,688,303 3,724,367 968,248 33,118,877
CASH AND CASH EQUIVALENTS,ending $14,985,135 $15,016,386 $6,125,508 $3,967,322 $968,837 $41,063,188
See Notes to Financial Statements.
-26-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
Year ended June 30, 2025
Enterprise Funds
Nonmajor
Enterprise
Water Sewer Gas Stormwater Funds Total
RECONCILIATION OF OPERATING
INCOME TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income $3,692,221 $4,779,641 $922,545 $182,727 $285,317 $9,862,451
Adjustments to reconcile operating income
to net cash flows from operating activities
Depreciation and amortization expense 1,180,012 1,966,962 637,891 709,131 90,879 4,584,875
Change in assets, deferred outflows,
liabilities and deferred inflows
Customer accounts receivable (187,256) (70,902) (197,999) (28,087) (50,391) (534,635)
Due from other funds – – – –(57,614) (57,614)
Inventories 191,074 –175,855 –4,244 371,173
Accounts payable, net of capital assets (364,836) (9,946) (466,374) 3,323 11,669 (826,164)
Accrued compensation 2,602 2,598 1,390 1,634 3,604 11,828
Customer deposits 18,081 –12,950 – –31,031
Compensated absences 52,978 53,911 65,358 27,575 34,966 234,788
Due to other funds – – – –57,614 57,614
Net pension liability (32,576) (32,632) (45,654) (16,778) (33,609) (161,249)
Deferred outflows of resources 18,999 19,099 22,834 6,259 16,085 83,276
Deferred inflows of resources 1,271 1,253 2,716 1,486 2,188 8,914
Total OPEB liability 3,725 3,846 3,356 6,066 4,213 21,206
Net cash flows from operating activities $4,576,295 $6,713,830 $1,134,868 $893,336 $369,165 $13,687,494
RECONCILIATION OF CASH AND CASH
EQUIVALENTS AT YEAR END TO
SPECIFIC ASSETS INCLUDED ON THE
STATEMENT OF NET POSITION
Current assets
Cash and investments $5,943,350 $3,926,044 $953,279 $39,326,888
Restricted assets –cash and investments
Customer deposits 241,771 –142,400 – –384,171
49,298 619,697 39,758 41,278 15,558 765,589
Revenue note reserve account 734,489 586,540 –257,613 –1,578,642
15,719,624 15,016,386 6,125,508 4,224,935 968,837 42,055,290
Less items not meeting the definition of
cash equivalents
Certificates of deposit (734,489)––(257,613)–(992,102)
Cash and cash equivalents at year end $6,125,508 $3,967,322 $968,837 $41,063,188
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Contribution to Central Iowa Water Works
financed through long-term obligations
and transfers of assets $9,257,092 $ –$ –$ –$ –$9,257,092
Contributed capital assets $1,888,033 $2,245,554 $ –$2,682,001 $ –$6,815,588
See Notes to Financial Statements.
-27-
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
Government Accounting Standards Board criteria.
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the citizenry of the
City but do not meet the criteria of a joint venture since there is no ongoing financial interest or responsibility by
the participating governments. City officials are members of the following boards and commissions: Bravo
Greater Des Moines, Inc., Des Moines Area Metropolitan Planning Organization, 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 $2,757,504 in
governmental activities and $2,584,891 in proprietary activities.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-28-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of Presentation
Government-wide Financial Statements
Restricted net position results when constraints placed on net position use are either externally imposed
or imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position consists of net position not meeting the definition of the preceding categories.
Unrestricted net position often has constraints on resources imposed by management which can be
removed or modified.
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
-29-
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
-30-
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, 2025 ,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 1 percent per month penalty for delinquent payments; is based on January 1, 2023
assessed property valuations; is for the tax accrual period July 1, 2024 through June 30, 2025 and reflects the tax
asking contained in the budget certified to the County Board of Supervisors in April 2024 .
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, 2025,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
-31-
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
-32-
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
Subscription-based IT arrangements 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
-33-
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 payments 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 subsequent term includes the noncancellable 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, the unamortized portion of the net
difference between projected and actual earnings on pension plan investments, and contributions from the City
after the measurement date but before the end of the City's reporting period.
Compensated Absences
The City recognizes a liability for accumulated time off which is more likely than not to be used or otherwise paid
to employees. City employees accumulate a limited amount of earned but unused vacation and sick leave hours
for subsequent use or for payment upon termination, death or retirement. For governmental fund types, the
amount of accumulated paid time off 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, 2025.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
-34-
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
-35-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
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 CHANGE IN ACCOUNTING PRINCIPLE
Governmental Accounting Standards Board Statement No. 101,Compensated Absences,was implemented in
fiscal year 2025.This statement replaces previous guidance on compensated absences and requires the City to
recognize a liability for leave that accumulates and is more likely than not to be used for time off or otherwise paid
to employees. Implementation did not have a material effect on the City's financial statements; therefore, prior
period amounts were not restated.
NOTE 3 CASH AND POOLED CASH INVESTMENTS
The City's deposits in banks at June 30, 2025 were entirely covered by federal depository insurance or by the State
Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional
assessments against the depositories to ensure there will be no loss of public funds.
The City is authorized by statute to invest public funds in obligations of the United States government, its agencies
and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions
approved by the City Council; prime eligible bankers acceptances; certain high rated commercial paper; perfected
repurchase agreements; certain registered open-end management investment companies; certain joint investment
trusts; and warrants or improvement certificates of a drainage district.
The City had no investments meeting the disclosure requirements of Governmental Accounting Standards Board
Statement No. 72.
Interest rate risk
The City's investment policy limits the investment of operating funds (funds expected to be expended in the current
budget year or within 15 months of receipt) in instruments that mature within 397 days. Funds not identified as
operating funds may be invested in investments with maturities longer than 397 days but the maturities shall be
consistent with the needs and use of the City.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-36-
NOTE 4 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2025 was as follows:
Balance Balance
beginning end
of year Increases Decreases Transfer of year
Governmental activities
Capital assets not being depreciated
Land $30,683,443 $654,500 $ – $199,987 $31,537,930
Construction in progress 30,529,157 50,131,521 –(13,287,976)67,372,702
61,212,600 50,786,021 –(13,087,989)98,910,632
Capital assets being depreciated
Buildings 17,460,587 83,726 – –17,544,313
Improvements other than buildings 328,809,574 2,871,357 –13,087,989 344,768,920
Equipment 12,017,532 849,054 224,568 –12,642,018
Subscription-based information
technology arrangements 1,126,919 561,423 – –1,688,342
Right-of-use assets 399,683 28,031 18,698 –409,016
Total capital assets being depreciated 359,814,295 4,393,591 243,266 13,087,989 377,052,609
Less accumulated depreciation for
Buildings 5,599,820 573,170 – –6,172,990
Improvements other than buildings 100,656,218 10,124,216 – –110,780,434
Equipment 8,000,201 1,003,290 200,326 –8,803,165
Subscription-based information
technology arrangements 652,509 332,673 – –985,182
Right-of-use assets 127,051 57,387 18,698 –165,740
Total accumulated depreciation 115,035,799 12,090,736 219,024 –126,907,511
Net capital assets being depreciated 244,778,496 (7,697,145)24,242 13,087,989 250,145,098
Governmental activities capital assets, net $305,991,096 $43,088,876 $24,242 $ –$349,055,730
Business type activities
Capital assets not being depreciated
Land $3,448,251 $ – $ – $55,219 $3,503,470
Construction in progress 32,423,486 5,106,838 –(12,700,593)24,829,731
Total capital assets not being depreciated 35,871,737 5,106,838 –(12,645,374)28,333,201
Capital assets being depreciated
Buildings 576,846 – – –576,846
Equipment 5,744,942 77,500 62,657 –5,759,785
Infrastructure 157,908,249 7,836,196 1,436,894 12,645,374 176,952,925
Subscription-based information
technology arrangements 262,637 65,508 – –328,145
Right-of-use assets 56,521 –––56,521
Total capital assets being depreciated 164,549,195 7,979,204 1,499,551 12,645,374 183,674,222
Less accumulated depreciation for
Buildings 317,876 – – –317,876
Equipment 3,601,473 –62,657 –3,538,816
Infrastructure 32,157,800 4,479,719 429,126 –36,208,393
Subscription-based information
technology arrangements 122,900 94,336 – –217,236
Right-of-use assets 33,980 10,820 ––44,800
Total accumulated depreciation 36,234,029 4,584,875 491,783 –40,327,121
Net capital assets being depreciated 128,315,166 3,394,329 1,007,768 12,645,374 143,347,101
Business type activities capital assets, net $164,186,903 $8,501,167 $1,007,768 $ –$171,680,302
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-37-
NOTE 4 CAPITAL ASSETS (continued)
Depreciation and amortization expense was charged to functions of the primary government as follows:
Governmental activities
Public safety $493,545
Public works 7,813,570
Culture and recreation 3,059,064
General government 690,056
Health and social services 34,501
Total depreciation and amortization expense--governmental activities $12,090,736
Business type activities
Water $1,180,012
Sewer 1,966,962
Gas 637,891
Stormwater 709,131
Nonmajor 90,879
Total depreciation and amortization expense--business type activities $4,584,875
NOTE 5 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2025 is as follows:
Balance Balance
beginning end Due within
of year Increases Decreases of year one year
Governmental activities
General obligation bonds/notes $134,724,461 $23,755,000 $7,001,162 $151,478,299 (1)$8,320,000
Notes from direct borrowings and
direct placements 11,245,000 –660,000 10,585,000 745,000
Installment contract 8,237,904 –1,198,937 7,038,967 878,463
Compensated absences 669,044 873,949 –1,542,993 123,026
Lease agreements payable 283,043 17,010 47,669 252,384 59,875
IT subscriptions 263,700 686,253 444,851 505,102 282,107
Total OPEB liability 799,242 89,115 –888,357 –
Net pension liability 2,812,441 –1,053,800 1,758,641 –
Totals $159,034,835 $25,421,327 $10,406,419 $174,049,743 $10,408,471
Business type activities
Revenue bonds/notes $11,055,330 $ – $653,628 $10,401,702 (2)$635,000
Notes from direct borrowings and
direct placements 20,583,054 1,867,399 1,149,497 21,300,956 1,203,162
Due to Central Iowa Water Works –8,973,975 –8,973,975 8,973,975
Compensated absences 105,620 234,788 –340,408 340,408
Lease agreements payable 30,607 –7,808 22,799 22,799
IT subscriptions 109,877 54,993 84,967 79,903 79,903
Total OPEB liability 227,682 21,206 –248,888 –
Net pension liability 397,466 –161,249 236,217 –
Totals $32,509,636 $11,152,361 $2,057,149 $41,604,848 $11,255,247
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-38-
NOTE 5 LONG-TERM LIABILITIES (continued)
(1) Included in balance are unamortized bond premiums totaling $6,443,299 at June 30, 2025 .
(2) Included in balance are unamortized bond premiums totaling $186,702 at June 30, 2025 .
Governmental Activities
Twelve issues of unmatured general obligation bonds/notes, totaling $145,035,000 ,are outstanding at June 30,
2025.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,
2044.
The City has one issuance of a note from direct borrowing and direct placements with an outstanding balance
totaling $10,585,000 at June 30, 2025.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 the Des Moines Airport Authority related to the Des Moines
Airport renovation project. The agreement is noninterest bearing and requires annual installments of
approximately $144,000 for four years. Two payments of approximately $144,000 were made during the year
ended June 30, 2025.The balance due as of June 30, 2025 was $433,602 .
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 $7,339,297 over ten
years, in equal installments. The balance due as of June 30, 2025 was $6,605,365 .
Details of general obligation and revenue bonds/notes payable at June 30, 2025 are as follows:
Amount of Outstanding
Governmental Interest Final original June 30,
activities Date of issue rates due date Annual Payments issue 2025
General Obligation Bonds and Notes
GO Series 2014A December 2014 3.00-3.50 June 2034 $510,000 - $1,725,000 $23,295,000 $10,215,000
GO Series 2015C November 2015 3.00 June 2020 430,000 -485,000 7,340,000 2,280,000
GO Series 2017A May 2017 3.00-3.375 June 2036 100,000 -1,900,000 13,940,000 11,630,000
GO Series 2018A June 2018 3.00-5.00 June 2038 835,000 -1,310,000 19,775,000 13,885,000
GO Series 2019A August 2019 3.00-5.00 June 2031 370,000 -440,000 4,655,000 2,435,000
GO Series 2020B November 2020 2.00-5.00 June 2036 500,000 -880,000 9,155,000 7,745,000
GO Series 2021A April 2021 2.00-5.00 June 2040 170,000 -935,000 17,305,000 8,210,000
GO Series 2021B November 2021 2.00-5.00 June 2041 655,000 -1,390,000 19,760,000 18,415,000
GO Series 2022A July 2022 3.125-5.00 June 2042 350,000 -800,000 11,755,000 10,835,000
GO Series 2023A September 2023 4.00-5.00 June 2043 1,500,000 -2,605,000 38,305,000 36,535,000
GO Series 2024A September 2024 3.875-5.00 June 2044 425,000 -860,000 12,165,000 11,750,000
GO Series 2024B September 2024 3.875-5.00 June 2044 365,000 -875,000 11,590,000 11,100,000
Direct Borrowings and Placements
GO Series 2020A May 2020 2.15 June 2035 745,000 -1,190,000 12,800,000 10,585,000
Installment Contract
Iowa Department of
Transportation November 2023 0.00 November 2034 733,929 7,339,294 6,605,365
Des Moines Airport
Authority December 2022 0.00 December 2028 Variable 722,670 433,602
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-39-
NOTE 5 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:
General Obligation Direct borrowings and Placements
Year ending June 30 Principal Interest Total Principal Interest Total
2026 $8,320,000 $5,536,223 $13,856,223 $745,000 $227,578 $972,578
2027 8,735,000 5,163,034 13,898,034 1,000,000 211,560 1,211,560
2028 9,345,000 4,770,284 14,115,284 1,025,000 190,060 1,215,060
2029 9,875,000 4,376,833 14,251,833 1,045,000 168,023 1,213,023
2030 10,810,000 3,957,719 14,767,719 1,070,000 145,555 1,215,555
2031-2035 49,745,000 13,900,814 63,645,814 5,700,000 373,024 6,073,024
2036-2040 32,090,000 6,329,056 38,419,056 – – –
2041-2044 16,115,000 1,325,850 17,440,850 –––
Subtotal 145,035,000 45,359,813 190,394,813 10,585,000 1,315,800 11,900,800
Plus unamortized premium 6,443,299 –6,443,299 –––
Totals $151,478,299 $45,359,813 $196,838,112 $10,585,000 $1,315,800 $11,900,800
Installment Contracts
Year ending June 30 Principal Interest Total
2026 $878,463 $ – $878,463
2027 878,463 –878,463
2028 878,463 –878,463
2029 733,929 –733,929
2030 733,929 –733,929
2031-2034 2,935,720 –2,935,720
Totals $7,038,967 $ –$7,038,967
Business Type Activities
Five issues of unmatured revenue notes, totaling $10,215,000 ,are outstanding at June 30, 2025.These notes
bear interest at rates ranging from 3.00% to 5.00% and mature in varying annual amounts, ranging from $100,000
to $265,000,with the final maturities due in the year ending June 30, 2038.
Four issues of unmatured direct borrowing and direct placement notes, totaling $21,300,956 ,are outstanding at
June 30, 2025.These notes bear interest at rates ranging from 1.75% to 2.20% and mature in varying annual
amounts, ranging from $70,000 to $791,000 with the final maturities due in the year ending June 30, 2044.
The City has an initial obligation to Central Iowa Water Works (CIWW) for the City's share of Central Iowa Water
Work’s net position. This obligation is calculated based on the City's capacity usage, less the assets it contributed
to the system. the City's obligation to CIWW of $8,973,975 is due January 1, 2026, however, the City issued
revenue bonds during fiscal year 2026 to fund the obligation.
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
-40-
NOTE 5 LONG-TERM LIABILITIES (continued)
Business Type Activities (continued)
During the year ended June 30, 2025,the City was in compliance with the bond provisions.
The City has pledged future customer revenues, net of specified operating expenses, to repay the $40,545,975in
notes issued from 2015 to 2025 .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 $38,605,994 .For the
current year, principal and interest paid and total customer net revenues were $2,665,325 and $8,654,589 ,
respectively.
Details of revenue notes and bonds payable at June 30, 2025 are as follows:
Business Type
activities Date of issue
Interest
rates Final due date Annual payments
Amount of
original
issue
Outstanding
as of June
30, 2025
Revenue Notes and Bonds
Water
Series 2015B July 2015 3.00 June 2027 $130,000 - $140,000 $1,450,000 $275,000
Series 2018B June 2018 3.00-4.00 June 2038 100,000 -265,000 3,410,000 2,710,000
Series 2019B August 2019 3.00-5.00 June 2034 125,000 -180,000 2,040,000 1,370,000
Sewer
Series 2018C June 2018 3.00-5.00 June 2038 160,000 -250,000 3,565,000 2,710,000
Stormwater
Series 2023C September 2023 4.00-5.00 June 2043 100,000 -245,000 3,350,000 3,150,000
Direct Borrowings and Placements
Sewer
Series 2017 September 2017 2.20 June 2038 454,971 -603,800 9,942,975 6,906,241
Series 2018A July 2018 1.75 June 2038 116,000 -146,000 2,948,000 1,710,000
Series 2023A April 2023 1.75 June 2044 543,000 -791,000 13,200,000 12,614,715
Stormwater
Series 2016A June 2016 1.90-2.00 June 2026 70,000 640,000 70,000
Other
Water
Central Iowa
Water Works January 1, 2025 n/a January 1, 2026 8,973,975 8,973,975 8,973,975
Details of revenue notes and bonds payable at June 30, 2025 are as follows:
Revenue Notes/Bonds Direct Borrowings and Placements
Year ending June 30 Principal Interest Total Principal Interest Total
2026 $635,000 $369,459 $1,004,459 $1,203,162 $444,563 $1,647,725
2027 675,000 341,409 1,016,409 1,156,078 419,353 1,575,431
2028 650,000 315,959 965,959 1,181,274 395,070 1,576,344
2029 670,000 293,859 963,859 1,205,786 370,255 1,576,041
2030 695,000 271,059 966,059 1,230,599 344,926 1,575,525
2031-2035 3,685,000 982,351 4,667,351 6,546,728 1,325,910 7,872,638
2036-2040 2,500,000 373,721 2,873,721 5,707,424 625,376 6,332,800
2041-2044 705,000 58,988 763,988 3,069,905 157,780 3,227,685
Subtotal 10,215,000 3,006,805 13,221,805 21,300,956 4,083,233 25,384,189
Plus unamortized premium 186,702 –186,702 –––
Totals $10,401,702 $3,006,805 $13,408,507 $21,300,956 $4,083,233 $25,384,189
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-41-
NOTE 5 LONG-TERM LIABILITIES (continued)
As of June 30, 2025,the general obligation debt issued by the City did not exceed its legal debt limit computed as
follows:
Actual valuation $4,905,358,271
Debt limit -5% of total actual valuation $245,267,914
Debt applicable to debt limit
General obligation bonded debt outstanding $145,035,000
Notes from direct borrowings and placements 10,585,000
Tax increment financing and other agreements subject to debt limit 2,260,000
Total debt subject to debt limit $157,880,000
Percentage of debt limit 64.37 %
NOTE 6 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
-42-
NOTE 6 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 2025,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, 2025 were $1,526,127 .
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2025,the City reported a liability of $1,994,858 for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2024,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
2024 2023 Change
City's proportionate share 0.054781 %0.071115 %(0.016334)%
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-43-
NOTE 6 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, 2025,the City recognized pension expense of $903,874 .At June 30, 2025,the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience $897,233 $2,187
Change in assumptions –172,086
Net difference between projected and actual earnings on IPERS' investments 56,820 –
Change in proportion and difference between City contributions and
proportionate share of contributions 637,033 216,635
City contributions subsequent to the measurement date 1,526,127 –
Totals $3,117,213 $390,908
$1,526,127 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
2026 $(542,832)
2027 1,661,091
2028 201,977
2029 (131,333)
2030 11,275
Totals $1,200,178
There were no non-employer contributing entities at IPERS.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-44-
NOTE 6 PENSION PLAN (continued)
Actuarial Assumptions
The total pension liability in the June 30, 2024 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, 2024 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 2024 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 Real Rate
Asset Class Allocation of Return
Domestic equity 21.0%3.5%
International equity 13.0 5.2
Global smart beta equity 5.0 4.1
Core plus fixed income 25.5 3.0
Public credit 3.0 4.5
Cash 1.0 1.7
Private equity 17.0 8.9
Private real assets 9.0 4.3
Private credit 5.5 6.6
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
-45-
NOTE 6 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 $10,505,313 $1,994,858 $(5,135,429)
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.
NOTE 7 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, 2025,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 $1,137,245 was measured as of June 30, 2025 ,and was determined by an
actuarial valuation as of July 1, 2023.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-46-
NOTE 7 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Assumptions
The OPEB liability as of June 30, 2025 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 3.00% per annum
Rates of salary increase 3.25% per annum
Discount rate 3.65% per annum
Healthcare cost trend rate 5.00% per annum
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, 2024 $1,026,924
Changes for the year
Service cost 97,641
Interest 40,536
Benefit payments (27,856)
Net changes 110,321
Total OPEB liability, June 30, 2025 $1,137,245
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 $1,251,655 $1,137,245 $1,032,736
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-47-
NOTE 7 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 5.00%,
as well as the total OPEB liability calculated using a healthcare cost trend rate that is 1% lower (4.00%)or 1%
higher (6.00%)than the current rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
(4.00%)(5.00%)(6.00%)
Total OPEB liability $984,802 $1,137,245 $1,322,031
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025,the City recognized OPEB expense of $146,852. At June 30, 2025,the City
reported deferred inflows of resources and deferred outflows of resources related to OPEB from the following
sources:
Deferred Deferred
Inflows of Outflows
Resources Resources
Differences between expected and actual experience $26,464 $114,956
Changes in assumptions or other inputs 28,322 132,405
Totals $54,786 $247,361
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
2026 $15,708
2027 15,708
2028 15,708
2029 15,708
2030 15,708
Thereafter 114,035
Total $192,575
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-48-
NOTE 8 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
$2,016,487 ,less accumulated amortization of $1,202,418 .
The future subscription payments under SBITA arrangements are as follows:
Year ending June 30 Principal Interest Total
2026 $362,010 $15,132 $377,142
2027 142,951 6,427 149,378
2028 47,323 2,333 49,656
2029 32,721 936 33,657
Total $585,005 $24,828 $609,833
NOTE 9 INTERFUND TRANSFERS
The detail of interfund transfers for the year ended June 30, 2025 is as follows:
Transfer to Transfer from Amount
General Nonmajor governmental funds $2,830,000
Debt service Governmental funds
Urban renewal TIF 6,920,175
Local options sales tax 2,124,934
Capital projects 909,870
Nonmajor governmental funds 325,000
Enterprise funds
Water 136,913
Storm water 351,419
10,768,311
Capital projects Local options sales tax 7,686,000
Total $21,284,311
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
-49-
NOTE 10 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 805
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,
2025 were $562,253.
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, 2025,no liability has been recorded in the City's financial statements. As of June 30,
2025,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
-50-
NOTE 11 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 maximum out of
pocket expense for the City is reduced by the amount paid by the employee of $500/$1,000 per single/family plan
(maximum out-of-pocket). 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, 2025 was $313,347 .
Amounts payable from the Iowa Governmental Health Care Plan at June 30, 2025 total $82,205 ,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, 2025 is as follows:
Unpaid claims as of beginning of year $53,242
Incurred claims (including claims incurred but
not reported as of June 30) 416,187
Payments on claims (387,224)
Unpaid claims as of year end $82,205
NOTE 12 COMMITMENTS
The City has entered into contract commitments with contractors for the completion of several infrastructure
construction projects. The total contract commitments are approximately $71,000,000 of which approximately
$61,000,000 has been incurred as of June 30, 2025.The unpaid commitment balance is approximately
$10,000,000 which will be funded by current reserves in the capital projects funds and other sources.
NOTE 13 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, 2025 ,the City rebated $1,293,596 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
-51-
NOTE 13 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 2025 ,the developer contributed $500,000 under this agreement.
NOTE 14 CONTINGENCIES
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 15 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, 2025,$484,947 of property tax was diverted from the City under the urban renewal
and economic development projects.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-52-
NOTE 16 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, 2025,the bonds had a combined balance of $71,905,000 and the City of Waukee's estimated future allocation
based on the WRA flows is currently $2,970,469.
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, 2025,the outstanding balance of State Revolving Loan issues
totaled $397,455,984 and the City of Waukee's estimated future allocation is currently $14,626,778 .
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. The City retains a reversionary interest percentage in the net position of the WRA redeemable only in
the event the WRA is dissolved. 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. During the year ended June 30, 2025 the City
paid the WRA $2,060,175 for operations, maintenance, equipment replacement and debt service payments.
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
-53-
NOTE 16 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 infrastructure which solely services its
residents. The assets previously owned by the City of Waukee and transferred to CIWW had net book value of
approximately $280,000.
The agreement includes terms for which consideration is to be paid by the member agencies to CIWW for its
actual net position in CIWW. The agreement requires payments of any deficit net position be made to CIWW by
January 1, 2026. The City of Waukee’s deficit net position was approximately $8,974,000, which the City intends
to pay to CIWW prior to January 1, 2026.
Annually, CIWW establishes a member cost allocation to all participating member agencies based on operations,
maintenance, debt service and reserve requirements. Allocations are based on volume of water delivered to each
member agency.
The City retains an ongoing financial responsibility to CIWW since it is obligated in some manner for the debts of
the joint venture through the annual cost allocation. Although the debt of CIWW is to be paid solely and only from
CIWW revenues, no member agency may withdraw from the joint venture at the detriment of the other holders of
CIWW’s issued bonds.A withdrawing member, therefore, must fund its allocated share of the outstanding bonds
upon withdrawal, per the agreement. The CIWW Agreement requires the debt service of the outstanding bonds
to be allocated to the member agencies based on volume of water delivered.
The CIWW Agreement does not provide for the determination of an equity interest for the member agencies.
Withdrawing from the joint venture is a forfeit of all reversionary interest and no compensation will be paid.
The City retains a reversionary interest percentage in the net position of CIWW redeemable only in the event
CIWW is dissolved. Since there is no specific and measurable equity interest in the CIWW agreement, no
investment in the joint venture has been reported by the City. During the year ended June 30, 2025 ,the City paid
CIWW $1,945,833 for operations, maintenance and debt service payments.
Contribution to Central Iowa Water Works totaling $9,257,092 is reported as an outflow of resources on the
accompanying statement of activities, which reflects the net book value of the capital assets contributed to CIWW
and the City's deficit net position to be funded to CIWW by January 1, 2026.
CIWW issues separate financial statements that may be obtained at 2201 George Flagg Parkway, Des Moines,
Iowa 50321.
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 and Waukee and Windsor Heights.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-54-
NOTE 16 JOINT VENTURES (continued)
Westcom Dispatch Center (continued)
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, 2025,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, 2025 are as follows:
City Equity Percentage
West Des Moines 48.83%
Urbandale 29.56
Clive 13.69
Norwalk 3.70
Waukee 4.22
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, 2025 were $1,146,777 .The City of
Waukee's equity interest in Westcom as of June 30, 2025 was not material to the financial statements.
NOTE 17 SALE OF GAS UTILITY
On April 21, 2025, the City Council approved an Asset Purchase Agreement with MidAmerican Energy Company,
a third-party utility provider, for the sale of the City’s municipally owned gas utility system, which is reported as a
separate enterprise fund. The agreement provides for the transfer of substantially all gas utility assets and related
operations, with an agreed minimum purchase price of $17,650,000, subject to final adjustments at closing.
The transaction closed on October 22, 2025, after satisfaction of customary closing conditions. Upon closing, the
City will derecognize the assets and liabilities of the gas utility enterprise fund and recognize a gain or loss on
disposal in accordance with Governmental Accounting Standards Board (GASB) Statement No. 69,Government
Combinations and Disposals of Government Operations .
The City anticipates that sale proceeds will be used for future capital projects. Any outstanding obligations of the
gas utility, including bonded debt, will be addressed in accordance with the terms of the transaction and
applicable debt covenants.
NOTE 18 SUBSEQUENT EVENTS
As disclosed in Note 17 to the financial statements, the City closed on the sale of its Gas Utility to a third-party
Utility provider for a purchase price of $17,650,000 on October 22, 2025.
On November 3, 2025, the City authorized the issuance of $9,000,000 in Water Revenue Bonds to fund its
obligations to Central Iowa Water Works, as disclosed in Note 5 to the financial statements.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-55-
REQUIRED SUPPLEMENTARY INFORMATION
-56-
City of Waukee, Iowa
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Required Supplementary Information
For the last eight years
2025 2024 2023 2022
Service cost $97,641 $94,567 $67,272 $65,155
Interest 40,536 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 (27,856)(23,520)(14,750)(10,512)
Net change in total OPEB liability 110,321 285,389 68,212 172,917
Total OPEB liability, beginning of year 1,026,924 741,535 673,323 500,406
Total OPEB liability, end of year $1,137,245 $1,026,924 $741,535 $673,323
Covered-employee payroll $13,140,642 $12,727,014 $9,925,018 $9,612,608
Total OPEB liability as a percentage of
covered-employee payroll 8.65 %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)(4,567)
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 %6.03 %
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, 2018 3.58% Year ended June 30, 2022 2.14%
Year ended June 30, 2019 3.58% Year ended June 30, 2023 2.14%
Year ended June 30, 2020 3.50% Year ended June 30, 2024 3.65%
Year ended June 30, 2021 3.50% Year ended June 30, 2025 3.65%
See accompanying independent auditor's report.
-57-
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, 2025
Final
Proprietary Budgetary Total Budgeted amounts to actual
funds actual funds actual adjustments actual Original Final variance
REVENUES
Property taxes $24,899,755 $ – $ – $24,899,755 $24,869,470 $24,876,620 $23,135
Tax increment financing 11,357,172 – –11,357,172 11,457,835 11,457,835 (100,663)
Other city tax 6,597,763 – –6,597,763 6,197,797 6,147,797 449,966
Licenses and permits 2,434,788 – –2,434,788 2,518,350 2,389,350 45,438
Use of money and property 5,481,123 1,981,304 –7,462,427 3,556,000 6,906,400 556,027
Intergovernmental 5,479,736 318,896 –5,798,632 4,716,316 5,386,992 411,640
Charges for service 1,824,947 38,036,939 –39,861,886 35,038,700 37,340,810 2,521,076
Miscellaneous 1,574,633 205,478 –1,780,111 1,176,400 1,505,527 274,584
Total revenues 59,649,917 40,542,617 –100,192,534 89,530,868 96,011,331 4,181,203
EXPENDITURES/EXPENSES
Public safety 13,301,898 – –13,301,898 14,285,400 14,294,983 993,085
Public works 4,181,676 – –4,181,676 5,054,578 5,054,578 872,902
Health and social services 80,000 – –80,000 67,000 80,000 –
Culture and recreation 4,903,152 – –4,903,152 4,997,000 5,131,693 228,541
Community and economic development 2,570,008 – –2,570,008 3,329,970 3,329,970 759,962
General government 1,759,081 – –1,759,081 2,314,640 2,314,640 555,559
Debt service 15,626,293 –(175,941) 15,450,352 13,582,392 15,305,652 (144,700)
Capital projects 51,268,126 –175,941 51,444,067 69,729,870 79,473,370 28,029,303
Business type activities –29,277,249 3,667,700 32,944,949 34,738,950 38,158,394 5,213,445
Total disbursements 93,690,234 29,277,249 3,667,700 126,635,183 148,099,800 163,143,280 36,508,097
Excess (deficiency) of revenues over
(under) expenditures/expenses (34,040,317)11,265,368 (3,667,700)(26,442,649)(58,568,932)(67,131,949)40,689,300
OTHER FINANCING SOURCES
(USES), NET 26,252,717 (3,644,117)(2,441,504)25,050,104 46,225,000 46,234,400 (21,184,296)
Excess (deficiency) of revenues
and other financing sources over
expenditures/expenses and
other financing uses (7,787,600) 7,621,251 (6,109,204) (1,392,545) (12,343,932) (20,897,549) 19,505,004
BALANCES ,beginning of year 91,053,632 166,426,354 –257,479,986 158,219,802 158,219,802 99,260,184
BALANCES ,end of year $83,266,032 $174,047,605 $(6,109,204)$256,087,441 $145,875,870 $137,322,253 $118,765,188
See accompanying independent auditor's report.
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City of Waukee, Iowa
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION -BUDGETARY REPORTING
Year ended June 30, 2025
The budgetary comparison is presented as Required Supplementary Information in accordance with Government
Accounting Standards Board Statement No. 41 for governments with significant budgetary perspective differences
resulting from not being able to present budgetary comparisons for the General Fund and each major Special
Revenue Fund.
In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice
and hearing for all funds. The annual budget may be amended during the year utilizing similar statutorily
prescribed procedures. Encumbrances are not recognized on the budget and appropriations lapse at year end.
Formal and legal budgetary control is based upon nine major classes of disbursements known as functions, not
by fund. These nine functions are: public safety, public works, health and social services, culture and recreation,
community and economic development, general government, debt service, capital projects and business type
activities. Function disbursements required to be budgeted include disbursements for the General Fund, Special
Revenue Funds, Debt Service Fund, Capital Projects Fund and Enterprise Funds. Although the budget document
presents function disbursements by fund, the legal level of control is at the aggregated function level, not by fund.
During the year, one budget amendment increased budgeted disbursements by $15,043,480 .This budget
amendment is reflected in the final budgeted amounts.
For the year ended June 30, 2025,the City's disbursements exceeded the amounts budgeted in the debt service
function.
See accompanying independent auditor's report.
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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
2025 2024 2023 2022 2021
City's proportion of the net
pension liability 0.054781 %0.071115 %0.047575 %0.924832 %0.074768 %
City's proportionate share of
the net pension liability (asset)$1,995 $3,210 $1,797 $(3,193)$5,252
City's covered-employee
payroll $16,257 $14,654 $12,585 $11,232 $9,852
City's proportionate share
of the net pension liability
as a percentage of
its covered-employee payroll 12.27 %21.91 %14.28 %(28.43)%53.31 %
Plan fiduciary net position as a
percentage of the total
pension liability 92.30 %90.13 %91.40 %100.81 %82.90 %
Year ended June 30
2020 2019 2018 2017 2016
City's proportion of the net
pension liability 0.064552 %0.068199 %0.064287 %0.060546 %0.053387 %
City's proportionate share of
the net pension liability (asset)$3,738 $4,315 $4,282 $3,810 $2,638
City's covered-employee
payroll $9,056 $8,178 $7,814 $5,949 $6,412
City's proportionate share
of the net pension liability
as a percentage of
its covered-employee payroll 41.28 %52.76 %54.80 %64.04 %41.14 %
Plan fiduciary net position as a
percentage of the total
pension liability 85.45 %83.62 %82.21 %81.82 %85.19 %
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, Iowa
SCHEDULE OF CITY CONTRIBUTIONS
Iowa Public Employees' Retirement System for the Last Ten Years
(In Thousands)
Other Information
Year ended June 30
2025 2024 2023 2022 2021
Statutorily required contribution $1,526 $1,394 $1,193 $1,050 $940
Contributions in relation to the
statutorily required contribution 1,526 1,394 1,193 1,050 940
Contribution deficiency $ –$ –$ –$ –$ –
City's covered-employee payroll $16,257 $14,654 $12,585 $11,232 $9,852
Contributions as a percentage of
covered-employee payroll 9.4 %9.5 %9.5 %9.3 %9.5 %
Year ended June 30
2020 2019 2018 2017 2016
Statutorily required contribution $875 $827 $723 $641 $578
Contributions in relation to the
statutorily required contribution 875 827 723 641 578
Contribution deficiency $ –$ –$ –$ –$ –
City's covered-employee payroll $9,056 $8,178 $7,814 $5,949 $6,412
Contributions as a percentage of
covered-employee payroll 9.7 %10.1 %9.3 %10.8 %9.0 %
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, 2025
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
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City of Waukee, Iowa
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2025
Special Revenue Funds Debt service
Road Employee Public Emergency Special
Use Tax Benefits Improvement Forfeiture Levy Assessments Total
ASSETS
Cash and investments $1,326,360 $251,454 $2,431,592 $10,436 $27,512 $30,901 $4,078,255
Receivables
Property tax
Delinquent –5,286 – – – –5,286
Succeeding year property tax –3,505,978 – – – –3,505,978
Special assessments – – – – –72,704 72,704
Other 153,227 – – – – –153,227
Due from other governments 347,649 – – – – –347,649
Inventory 205,035 –––––205,035
Total assets $2,032,271 $3,762,718 $2,431,592 $10,436 $27,512 $103,605 $8,368,134
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $281,353 $ – $ – $723 $ – $ – $282,076
Accrued compensation 48,574 –––––48,574
Total liabilities 329,927 ––723 ––330,650
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax –3,505,978 – – – –3,505,978
Special assessments –––––72,704 72,704
Total deferred inflows of
resources –3,505,978 –––72,704 3,578,682
FUND BALANCES
Nonspendable 205,035 – – – – –205,035
Restricted for
Debt service – – – – –30,901 30,901
Other 1,497,309 256,740 2,431,592 9,713 27,512 –4,222,866
Total fund balances 1,702,344 256,740 2,431,592 9,713 27,512 30,901 4,458,802
Total liabilities, deferred inflows
of resources and fund balances $2,032,271 $3,762,718 $2,431,592 $10,436 $27,512 $103,605 $8,368,134
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year ended June 30, 2025
Special Revenue Funds Debt service
Road Employee Public Emergency Special
Use Tax Benefits Improvement Forfeiture Levy Assessments Total
REVENUES
Property taxes $ – $2,726,307 $ – $ – $ – $ – $2,726,307
Other city taxes – – – – –7,969 7,969
Licenses and permits 7,095 – – – – –7,095
Use of money and property –76,736 101,201 –1,288 27,018 206,243
Intergovernmental 4,114,725 48,571 – – – –4,163,296
Miscellaneous 267,008 –500,000 11 ––767,019
Total revenues 4,388,828 2,851,614 601,201 11 1,288 34,987 7,877,929
EXPENDITURES
Operating
Public works 3,572,206 – – – – –3,572,206
Capital projects 316,113 –––––316,113
Total expenditures 3,888,319 –––––3,888,319
Excess of revenues over expenditures 500,509 2,851,614 601,201 11 1,288 34,987 3,989,610
OTHER FINANCING SOURCES (USES)
Transfers out –(2,830,000)–––(325,000)(3,155,000)
Total other financing sources (uses)–(2,830,000)–––(325,000)(3,155,000)
NET CHANGE IN FUND BALANCES 500,509 21,614 601,201 11 1,288 (290,013) 834,610
FUND BALANCES,beginning 1,201,835 235,126 1,830,391 9,702 26,224 320,914 3,624,192
FUND BALANCES ,ending $1,702,344 $256,740 $2,431,592 $9,713 $27,512 $30,901 $4,458,802
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
June 30, 2025
Enterprise Funds
Solid Utility
Waste Billing Golf Total
ASSETS
Current assets
Cash and investments $ – $106,812 $846,467 $953,279
Receivables
Customer accounts 185,236 81,362 –266,598
Due from other funds 57,614 –57,614
Inventories ––19,022 19,022
Total current assets 185,236 245,788 865,489 1,296,513
Noncurrent assets
Restricted cash and investments – –15,558 15,558
Capital assets, net of accumulated depreciation 2,095 2,096 2,032,334 2,036,525
Total noncurrent assets 2,095 2,096 2,047,892 2,052,083
Total assets 187,331 247,884 2,913,381 3,348,596
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows –41,856 37,081 78,937
OPEB related deferred outflows –3,238 4,408 7,646
Total deferred outflows of resources –45,094 41,489 86,583
LIABILITIES
Current liabilities
Accounts payable –673 54,748 55,421
Due to other funds 57,614 – –57,614
Accrued compensation –11,342 22,941 34,283
Compensated absences –25,389 20,711 46,100
Lease agreements payable – –22,799 22,799
IT subscriptions 2,019 2,019 4,387 8,425
Total current liabilities 59,633 39,423 125,586 224,642
Noncurrent liabilities
Net pension liability –26,786 23,730 50,516
Total OPEB liability –14,888 20,265 35,153
Total noncurrent liabilities –41,674 43,995 85,669
Total liabilities 59,633 81,097 169,581 310,311
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows –5,249 4,650 9,899
OPEB related deferred inflows –717 976 1,693
Total deferred inflows of resources –5,966 5,626 11,592
NET POSITION
Net investment in capital assets 76 77 2,005,148 2,005,301
Restricted for bond retirement – –15,558 15,558
Unrestricted 127,622 205,838 758,957 1,092,417
Total net position $127,698 $205,915 $2,779,663 $3,113,276
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, 2025
Enterprise Funds
Solid Utility
Waste Billing Golf Total
OPERATING REVENUES
Charges for service $2,108,156 $551,667 $1,104,822 $3,764,645
Miscellaneous 7,511 –137,976 145,487
Total operating revenues 2,115,667 551,667 1,242,798 3,910,132
OPERATING EXPENSES
Business type activities
Cost of sales and services 2,232,735 547,283 753,918 3,533,936
Depreciation and amortization 1,934 1,934 87,011 90,879
Total operating expenses 2,234,669 549,217 840,929 3,624,815
Operating income (loss) (119,002)2,450 401,869 285,317
NONOPERATING REVENUES (EXPENSES)
Interest income 1,529 7,131 37,729 46,389
Gain on disposal of capital assets – –517 517
Interest expense and fiscal charges (68)(68)(948)(1,084)
Total nonoperating revenues 1,461 7,063 37,298 45,822
CHANGE IN NET POSITION (117,541) 9,513 439,167 331,139
NET POSITION,beginning 245,239 196,402 2,340,496 2,782,137
NET POSITION,ending $127,698 $205,915 $2,779,663 $3,113,276
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, 2025
Enterprise Funds
Solid Utility
Waste Billing Golf Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customer and users $2,128,075 $481,357 $1,104,822 $3,714,254
Cash received from other revenues 7,511 –137,976 145,487
Cash paid for personal services –(299,873) (320,541) (620,414)
Cash paid to supplies (2,232,773)(235,469)(401,920)(2,870,162)
Net cash flows from operating activities (97,187)(53,985)520,337 369,165
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,933) (1,934) (386,260) (390,127)
Principal paid on direct borrowings and placements – –(23,754) (23,754)
Interest and fiscal charges paid (68)(68)(948)(1,084)
Net cash flows from capital and related
financing activities (2,001)(2,002)(410,962)(414,965)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,529 7,131 37,729 46,389
Net cash flows from investing activities 1,529 7,131 37,729 46,389
NET CHANGE IN CASH AND CASH EQUIVALENTS (97,659) (48,856) 147,104 589
CASH AND CASH EQUIVALENTS,beginning 97,659 155,668 714,921 968,248
CASH AND CASH EQUIVALENTS,ending $ –$106,812 $862,025 $968,837
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)$(119,002)$2,450 $401,869 $285,317
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities
Depreciation and amortization expense 1,934 1,934 87,011 90,879
Change in assets, deferred outflows, liabilities and
deferred inflows
Customer accounts receivable (37,695) (12,696)–(50,391)
Due from other funds –(57,614)–(57,614)
Inventories – –4,244 4,244
Accounts payable, net of capital assets (38) (633) 12,340 11,669
Accrued compensation –1,738 1,866 3,604
Compensated absences –16,638 18,328 34,966
Due to other funds 57,614 – –57,614
Net pension liability –(25,951) (7,658) (33,609)
Deferred outflows of resources –17,511 (1,426) 16,085
Deferred inflows of resources –474 1,714 2,188
OPEB liability –2,164 2,049 4,213
Net cash provided by operating activities $(97,187)$(53,985)$520,337 $369,165
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, 2025
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 $ – $106,812 $846,467 $953,279
Restricted assets, cash and investments
Revenue note and interest sinking account ––15,558 15,558
Cash and cash equivalents at year end $ –$106,812 $862,025 $968,837
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
2025 2024 2023 2022 2021
REVENUES
Property tax $24,899,755 $23,315,136 $19,733,997 $17,561,303 $16,442,792
Tax increment financing 11,357,172 7,815,524 6,612,489 8,290,499 6,715,401
Other city tax 6,597,763 5,865,850 5,853,680 5,186,067 3,654,633
Licenses and permits 2,434,788 2,736,252 3,676,978 3,609,343 2,152,133
Use of money and property 5,481,123 5,430,375 2,787,386 476,242 299,770
Intergovernmental 5,479,736 4,877,977 5,349,020 6,737,803 4,107,086
Charges for service 1,824,947 1,416,259 1,188,166 916,042 841,730
Miscellaneous 1,574,633 1,646,457 3,368,131 3,110,959 2,102,418
Totals $59,649,917 $53,103,830 $48,569,847 $45,888,258 $36,315,963
EXPENDITURES
Operating
Public safety $13,301,898 $12,044,504 $10,222,559 $8,787,632 $7,661,959
Public works 4,181,676 4,189,182 3,759,100 3,842,050 2,881,426
Health and social services 80,000 50,000 52,000 35,000 79,000
Culture and recreation 4,903,152 4,607,063 3,896,291 3,076,562 2,354,529
Community and economic development 2,570,008 1,854,600 1,910,148 2,036,364 844,878
General government 1,759,081 1,670,195 1,512,421 1,589,810 1,379,753
Debt service 15,626,293 11,301,988 9,070,448 15,105,673 12,529,759
Capital projects 51,268,126 25,523,111 29,752,490 34,055,866 33,050,205
Totals $93,690,234 $61,240,643 $60,175,457 $68,528,957 $60,781,509
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
2020 2019 2018 2017 2016
REVENUES
Property tax $15,148,227 $13,264,907 $11,935,530 $9,985,457 $9,436,301
Tax increment financing 5,198,896 4,130,856 3,549,942 3,414,595 3,229,861
Other city tax 3,390,034 2,598,522 59,400 35,436 27,921
Licenses and permits 2,319,665 2,427,879 1,287,456 1,594,670 1,288,941
Use of money and property 645,933 934,034 525,131 325,215 195,336
Intergovernmental 4,085,765 5,368,170 5,921,270 4,250,128 5,241,337
Charges for service 615,964 471,715 546,674 540,001 351,341
Miscellaneous 1,642,806 785,244 255,233 479,481 405,168
Totals $33,047,290 $29,981,327 $24,080,636 $20,624,983 $20,176,206
EXPENDITURES
Operating
Public safety $7,097,460 $6,206,481 $5,443,568 $4,839,355 $4,281,395
Public works 2,450,087 2,158,676 1,935,403 1,997,301 2,297,252
Health and social services –800 700 –5,100
Culture and recreation 2,231,556 2,125,735 2,039,626 1,838,317 1,763,428
Community and economic development 862,639 991,664 1,387,462 1,206,432 1,211,082
General government 1,119,735 1,139,586 1,074,305 818,853 817,880
Debt service 9,592,326 8,859,158 7,227,132 8,930,321 7,507,909
Capital projects 13,721,659 16,764,881 25,490,622 10,369,279 11,339,024
Totals $37,075,462 $38,246,981 $44,598,818 $29,999,858 $29,223,070
See accompanying independent auditor's report.
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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, 2025,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, 2025.
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. We did identify a deficiency in internal control, described in
Part I of the accompanying schedule of findings as item 2025-001 that we consider to be a significant deficiency.
-72-
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.
Comments involving statutory and other legal matters about the City's operations for the year ended June 30,
2025 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, 2025
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City of Waukee, Iowa
SCHEDULE OF FINDINGS (continued)
Year ended June 30, 2025
Part I—Findings Relating to the Financial Statements
INTERNAL CONTROL DEFICIENCIES
2025-001 COST BASIS OF INVENTORY
Criteria
Management is responsible for maintaining accurate inventory records in accordance with U.S. GAAP,
including both quantity and historical cost. Controls should ensure that recorded costs reflect actual
acquisition costs, and that periodic inventory counts and reconciliations are performed
Condition
During the performance of our audit procedures over inventory, we did not identify any material
discrepancies in inventory counts. However, we identified several instances in which the City's records for
the historical cost of inventory on-hand were not consistent with actual amounts paid for those inventory
items.
Cause
The City has not established sufficient information management systems to ensure the accurate reporting
of the cost basis of inventory.
Effect
Inaccurate inventory costs increases the risk of misstatement to the City's fund financial statements.
Recommendation
The City should investigate opportunities to increase the sophistication of the City's inventory management
systems and should develop internal control processes which involve additional oversight and review of
department inventory schedules, particularly the cost basis reported.
Response
The City will begin using Elements XS to track inventory costs and counts.
Conclusion
Response accepted.
INSTANCES OF NONCOMPLIANCE
No matters were noted.
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City of Waukee, Iowa
SCHEDULE OF FINDINGS (continued)
Year ended June 30, 2025
Part II—Other Findings Related to Required Statutory Reporting
II-A-25 CERTIFIED BUDGET
Disbursements exceeded the amounts budgeted in the debt service function at the end of the fiscal
year. In addition, disbursements exceeded the amounts budgeted in the heath and social services
function prior to the budget amendment in May 2025.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.
II-B-25 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.
II-C-25 TRAVEL EXPENSE
No expenditures of City money for travel expenses of spouses of City officials and/or employees were
noted.
II-D-25 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.
II-E-25 BUSINESS TRANSACTIONS
We noted no business transactions between the City and City officials or employees in excess of
$1,500.
II-F-25 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.
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City of Waukee, Iowa
SCHEDULE OF FINDINGS (continued)
Year ended June 30, 2025
Part II—Other Findings Related to Required Statutory Reporting (continued)
II-G-25 COUNCIL MINUTES
No transactions were found that we believe should have been approved in the Council minutes but
were not.
II-H-25 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.
II-I-25 REVENUE BONDS AND NOTES
No instances of noncompliance with the City's revenue bond and note provisions were noted.
II-J-25 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.
II-K-25 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.
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