HomeMy WebLinkAbout2020-12-07-G01 Presentation_FY2020 AuditAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 7, 2020
AGENDA ITEM:Independent Auditor’s Final Report for the fiscal year ending June 30, 2020
FORMAT:Presentation
SYNOPSIS INCLUDING PRO & CON: City staff met with David Ellis and Robert Endriss of
Denman & Company on 11/23/2020 to review the draft audit report. A
representative of Denman & Company, LLP will take part in the Council
meeting to present the audit.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION:
ATTACHMENTS: I. FY2020 Audit Report
PREPARED BY:Becky Schuett
REVIEWED BY:
G1
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,
2020. 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 17, 2020. Professional standards also require
that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Waukee are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during the year. We
noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the financial statements were:
Management's estimate of depreciation expense is based on the City's estimated useful life of assets using the
straight line method.
Management's estimate of other post employment benefits (OPEB) obligation and OPEB related deferred
inflows and outflows of resources is based upon actuarial assumptions that represent the anticipated future
experience of the OPEB plan.
Management's estimate of net pension liability and pension related deferred inflows and outflows of resources
is based upon actuarial assumptions and the City’s proportionate share of the Plan’s total pension liability.
We evaluated the key factors and assumptions used to develop the depreciation, OPEB obligation and net
pension liability estimates in determining that they are reasonable in relation to the financial statements taken
as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of long-term liabilities in Note 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. The
attached schedules summarize uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole. Corrected misstatements identified during the audit were related to the conversion from the cash
basis to the accrual basis of accounting. These adjustments were prepared from information provided by City
personnel and had a significant effect on the City's financial statements.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated November 9, 2020.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Matters
We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic
financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing
the information and comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on other supplementary information which accompanies the financial statements but
are not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information complies
with accounting principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the other supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the use of the City of Waukee Council and management, and is not
intended to be, and should not be, used by anyone other than these specified parties.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
November 9, 2020
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionProperty tax revenue received in August 2020 related to FY20.F (15,134) (15,134) - (15,134) Total (15,134) - - - (15,134) - (15,134) (15,134) - - - (15,134) - (15,134) (15,134) - - - (15,134) - (15,134) 18,649,758 10,167,401 8,482,357 14,963,541 13,642,685 1,320,856 -0.08% 0.00% 0.00% 0.00% -0.10% 0.00% -1.15%-0.08% 0.00% 0.00% 0.00% -0.10% 0.00% -1.15%City of Waukee Financial Statement Date: 6/30/2020General Fund A Listing of Known Audit Differences Over: $ 13,690 Net unadjusted AD—current year (iron curtain method)Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Less audit adjustments subsequently bookedEffect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Current and prior year AD as % of F/S captions (rollover method)
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionProperty tax revenue received in August 2020 related to FY20.F (15,328) (15,328) - (15,328) Total (15,328) - - - (15,328) - (15,328) (15,328) - - - (15,328) - (15,328) (15,328) - - - (15,328) - (15,328) 9,463,451 6,776,872 2,686,579 5,332,381 142,594 5,189,787 -0.16% 0.00% 0.00% 0.00% -0.29% 0.00% -0.30%-0.16% 0.00% 0.00% 0.00% -0.29% 0.00% -0.30%City of Waukee Financial Statement Date: 6/30/2020Tax Increment Financing A Listing of Known Audit Differences Over: $ 7,790 Net unadjusted AD—current year (iron curtain method)Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Less audit adjustments subsequently bookedEffect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Current and prior year AD as % of F/S captions (rollover method)
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionProperty tax revenue received in August 2020 related to FY20.F (8,345) (8,345) - (8,345) Total (8,345) - - - (8,345) - (8,345) (8,345) - - - (8,345) - (8,345) (8,345) - - - (8,345) - (8,345) 6,523,415 4,730,325 1,793,090 4,337,284 3,300,177 1,037,107 -0.13% 0.00% 0.00% 0.00% -0.19% 0.00% -0.80%-0.13% 0.00% 0.00% 0.00% -0.19% 0.00% -0.80%City of Waukee Financial Statement Date: 6/30/2020Debt Service A Listing of Known Audit Differences Over: $ 5,840 Net unadjusted AD—current year (iron curtain method)Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Less audit adjustments subsequently bookedEffect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Current and prior year AD as % of F/S captions (rollover method)
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionAccrued interest receivableF (3,979) (3,979) - (3,979) Total (3,979) - - - (3,979) - (3,979) (3,979) - - - (3,979) - (3,979) (3,979) - - - (3,979) - (3,979) 2,001,364 1,310,722 690,642 635,262 705,741 (70,479) -0.20% 0.00% 0.00% 0.00% -0.63% 0.00% 5.65%-0.20% 0.00% 0.00% 0.00% -0.63% 0.00% 5.65%City of Waukee Financial Statement Date: 6/30/2020Golf Fund A Listing of Known Audit Differences Over: $ 2,280 Net unadjusted AD—current year (iron curtain method)Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Less audit adjustments subsequently bookedEffect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Current and prior year AD as % of F/S captions (rollover method)
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionPrepaid expense not recorded by the City. F (17,949) 17,949 (17,949) Total (17,949) - - - - 17,949 (17,949) (17,949) - - - - 17,949 (17,949) (17,949) - - - - 17,949 (17,949) 17,538,527 540,476 16,998,051 7,924,174 5,921,888 2,002,286 -0.10% 0.00% 0.00% 0.00% 0.00% 0.30% -0.90%-0.10% 0.00% 0.00% 0.00% 0.00% 0.30% -0.90%City of Waukee Financial Statement Date: 6/30/2020Current and prior year AD as % of F/S captions (rollover method)Less audit adjustments subsequently bookedGas A Listing of Known Audit Differences Over: $ 13,020 Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Net unadjusted AD—current year (iron curtain method)Effect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionPrepaid expense not recorded by the CityF (4,679) 4,679 (4,679) Total (4,679) - - - - 4,679 (4,679) (4,679) - - - - 4,679 (4,679) (4,679) - - - - 4,679 (4,679) 3,997,821 1,008,516 2,989,305 2,886,372 2,336,189 550,183 -0.12% 0.00% 0.00% 0.00% 0.00% 0.20% -0.85%-0.12% 0.00% 0.00% 0.00% 0.00% 0.20% -0.85%Effect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Current and prior year AD as % of F/S captions (rollover method)Less audit adjustments subsequently bookedNet unadjusted AD—current year (iron curtain method)Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:City of Waukee Financial Statement Date: 6/30/2020Nonmajor proprietary A Listing of Known Audit Differences Over: $ 3,980
City of Waukee, Iowa
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS
June 30, 2020
TABLE OF CONTENTS
Page
OFFICIALS 3
INDEPENDENT AUDITOR'S REPORT 4-5
MANAGEMENT'S DISCUSSION AND ANALYSIS 6-13
BASIC FINANCIAL STATEMENTS 14
Government-wide financial statements
Statement of net position 15-16
Statement of activities 17-18
Governmental fund financial statements
Balance sheet 19
Reconciliation of the balance sheet—governmental funds to the statement of net position 20
Statement of revenues, expenditures and changes in fund balances 21
Reconciliation of the statement of revenues, expenditures and changes in
fund balances—governmental funds to the statement of activities 22
Proprietary fund financial statements
Statement of net position 23
Statement of revenues, expenses and changes in fund net position 24
Statement of cash flows 25-26
Notes to financial statements 27-51
REQUIRED SUPPLEMENTARY INFORMATION 52
Schedule of changes in the City’s total OPEB liability, related ratios and notes 53
Budgetary comparison schedule of revenues, expenditures/expenses and changes in
balances—budget and actual—governmental funds and proprietary funds 54-55
Note to required supplementary information—budgetary reporting 56
Schedule of the City’s proportionate share of the net pension liability 57
Schedule of City contributions 58-59
Notes to required supplementary information—pension liability 60
SUPPLEMENTARY INFORMATION 61
Nonmajor Governmental Funds
Combining balance sheet 62
Combining schedule of revenues, expenditures and changes in fund balances 63
Nonmajor Proprietary Funds
Combining statement of net position 64
Combining statement of revenues, expenses and changes in fund net position 65
Combining statement of cash flows 66-67
Schedule of revenues by source and expenditures by function—all governmental funds 68-69
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 70-71
SCHEDULE OF FINDINGS 72-74
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City of Waukee, Iowa
OFFICIALS
Before January 2020
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
William Peard, Mayor January 2020
Rachelle Hughes, Council Member January 2020
Courtney Clarke, Council Member January 2022
Larry Lyon, Council Member January 2020
Anna Bergman, Council Member January 2022
Charlie Bottenberg, Council Member January 2022
CITY ADMINISTRATOR
Tim Moerman Indefinite
CITY CLERK
Rebecca D. Schuett Indefinite
DIRECTOR OF FINANCE
Linda Burkhart Indefinite
CITY ATTORNEY
Steven P. Brick January 2020
After January 2020
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
Courtney Clarke, Mayor January 2024
Chris Crone, Council Member January 2024
Ben Sinclair, Council Member January 2022
Larry Lyon, Council Member January 2024
Anna Bergman, Council Member January 2022
Charlie Bottenberg, Council Member January 2022
CITY ADMINISTRATOR
Tim Moerman Indefinite
CITY CLERK
Rebecca D. Schuett Indefinite
DIRECTOR OF FINANCE
Linda Burkhart Indefinite
CITY ATTORNEY
Steven P. Brick January 2021
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and
Members of the City Council
Waukee, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business type activities,
each major fund, and the aggregate remaining fund information of the City of Waukee, Iowa (the City), as of and
for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business type activities, each major fund, and the aggregate
remaining fund information of the City of Waukee, Iowa, as of June 30, 2020, and the respective changes in its
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.
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Other Matters
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 6 through 13 and 53 through 60 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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, 2019
(which are not presented herein) and expressed unmodified opinions on those financial statements. The combining
and individual nonmajor fund financial statements and schedule of revenues by source and expenditures by
function, are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements and schedule of revenues by source and
expenditures by function, are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and schedule of revenues
by source and expenditures by function are 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 9, 2020 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 & COMPANY, LLP
West Des Moines, Iowa
November 9, 2020
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_______________________________________________________________________________________
MANAGEMENT’S DISCUSSION AND ANALYSIS
____________________________________________________________________________________________
The City of Waukee provides this Management’s Discussion and Analysis of its financial statements. This narrative overview and
analysis of the financial activities is for the fiscal year ended June 30, 2020. We encourage readers to consider this information in
conjunction with the City’s financial statements, which follow.
2020 FINANCIAL HIGHLIGHTS
• Revenues of the City’s Governmental Funds increased 10.2 %, or $ 3,065,963, from fiscal 2019 to fiscal 2020. Property and
other City Taxes increased $ 2,674,832, Tax Increment Financing increased $ 1,068,040, Licenses and Permits decreased $ 108,214,
Intergovernmental decreased $ 1,282,405, Charges for Services increased $ 144,249, Use of Money/Property decreased $288,101 and
Miscellaneous increased $ 857,562.
• Program expenditures of the City’s Governmental Funds decreased 3.1 %, or $ 1,171,519 in fiscal 2020 from fiscal 2019.
Public Safety expenses increased $ 890,979, Community and Economic Development decreased $ 129,025, Culture and Recreation
increased $ 105,821, Public Works increased $ 291,411, General Government decreased $ 19,851, Debt Service increased $ 733,168
and Capital Projects decreased $ 3,043,222.
• The City has a net position of $ 227,477,939 on June 30, 2020 as compared to $ 206,335,314 on June 30, 2019. Of this
amount, the net position of the Governmental Activities was $ 149,472,831 and the net position of the Business Type Activities was
$ 78,005,108.
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.
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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 Option 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 and Internal Service 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 Course and Sanitation Funds. The City is
responsible for ensuring the assets reported in these funds are used only for their intended purposes and by those to whom the assets
belong.
The financial statements required for proprietary funds include a Statement of Net Position, a Statement of Revenues, Expenses and
Changes in Fund Net Position and a Statement of Cash Flows.
Reconciliations between the government-wide financial statements and the fund financial statements follow the fund financial
statements.
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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 at Year End
Governmental Activities Business Type Activities Total
2020 2019 2020 2019 2020 2019
Current and Other Assets $74,287,176 $ 57,178,178 $29,514,040 $ 24,701,642 $103,801,216 $ 81,879,820
Capital Assets 183,365,294 172,608,710 76,036,857 72,663,152 259,402,151 245,271,862
Total Assets 257,652,470 229,786,888 105,550,897 97,364,794 363,203,367 327,151,682
Deferred Outflows of Resources 1,546,826 1,826,783 313,760 403,545 1,860,586 2,230,328
Current Liabilities 10,973,329 9,754,154 3,412,250 3,128,151 14,385,579 12,882,305
Non-Current Liabilities 74,784,983 64,913,946 24,267,910 24,400,904 99,052,893 89,314,850
Total Liabilities 85,758,312 74,668,100 27,680,160 27,529,055 113,438,472 102,197,155
Deferred Inflows of Resources 23,968,153 20,772,143 179,389 77,398 24,147,542 20,849,541
Net Position:
Net investment in Capital Assets 125,342,452 117,430,736 56,721,544 49,707,757 182,063,996 167,138,493
Restricted 18,731,898 13,189,406 482,539 578,485 19,214,437 13,767,891
Unrestricted 5,398,481 5,553,286 20,801,025 19,875,644 26,199,506 25,428,930
Total Net Position $ 149,472,831 $ 136,173,428 $ 78,005,108 $ 70,161,886 $ 227,477,939 $ 206,335,314
Net position of governmental activities increased $ 13,483,169, or 9.91%, over fiscal year 2019. Net position of business type
activities increased $ 7,843,222, or 11.18%, over fiscal year 2019. 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 $ 26,085,148 at the end of this year.
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Changes in Net Position for the Year Ended June 30, 2020
Governmental Activities Business Type Activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Property Tax Levied and Other City Tax $ 15,280,012 $ 13,609,900 $ – $ – $ 15,280,012 $ 13,609,900
Tax Increment Financing 5,198,896 4,130,856 – – 5,198,896 4,130,856
Local Option Sales Tax 3,191,666 2,486,798 – – 3,191,666 2,486,798
Commercial/Industrial Tax Replacement 325,767 281,962 – – 325,767 281,962
Unrestricted Interest 529,735 829,688 392,745 533,864 922,480 1,363,552
Operating Grants and Contributions 3,376,316 4,758,398 – – 3,376,316 4,758,398
Charges for Services 3,480,864 3,406,233 24,359,221 23,743,464 27,840,085 27,149,697
Capital Grants and Contributions 2,946,552 4,215,775 – – 2,946,552 4,215,775
Gain (loss) from Disposal of Capital Assets 349,045 41,518 132,949 (1,229,699) 481,994 (1,188,181)
Miscellaneous 1,642,806 785,243 209,210 280,238 1,852,016 1,065,481
Total Revenues 36,321,659 34,546,371 25,094,125 23,327,867 61,415,784 57,874,238
Transfers 618,003 386,729 (618,003) (386,729) – –
Total Revenues and Transfers $ 36,939,662 $ 34,933,100 $ 24,476,122 $ 22,941,138 $ 61,415,784 $ 57,874,238
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Governmental Activities Business Type Activities Total
2020 2019 2020 2019 2020 2019
Program Expenses
Public Safety $ 7,702,081 $ 6,655,888 $ – $ – $ 7,702,081 $ 6,655,888
Public Works 8,399,357 7,964,923 – – 8,399,357 7,964,923
Health and Social Services – 800 – – – 800
Culture and Recreation 2,828,872 2,583,818 – – 2,828,872 2,583,818
Community and Economic Development 893,086 1,002,123 – – 893,086 1,002,123
General Government 1,260,145 1,328,393 – – 1,260,145 1,328,393
Interest on Long-Term Debt 2,372,952 2,120,887 – – 2,372,952 2,120,887
Business Type Activities – – 16,632,900 16,648,986 16,632,900 16,648,986
Total Expenses 23,456,493 21,656,832 16,632,900 16,648,986 40,089,393 38,305,818
Increase in Net Position 13,483,169 13,276,268 7,843,222 6,292,152 21,326,391 19,568,420
Net Position Beginning of
Year 135,989,662 122,897,160 70,161,886 63,869,734 206,151,548 186,766,894
Net Position End of Year $ 149,472,831 $ 136,173,428 $ 78,005,108 $ 70,161,886 $227,477,939 $ 206,335,314
-11-
The City maintained the property tax levy of $ 13.40 per $1,000 for FY20, while recognizing an increase of $ 2,738,152 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 $ 3,092,377, charges for services increased by $ 690,388, gain from disposal of
capital assets increased $ 1,670,175 and miscellaneous revenues increased by $ 786,535.
Overall revenues for governmental activities increased approximately $ 1,775,000 from the prior year.
The cost of all governmental activities this year was approximately $ 23.5 million compared to approximately $ 21.7 million last year.
However, as shown in the Statement of Activities on pages 17 and 18, the amount taxpayers ultimately financed for these activities
was ($ 13.7) million as some of the cost was paid by those directly benefited from the programs ($ 3,480,864) or by other governments
and organizations which subsidized certain programs with grants and contributions ($ 6,322,868).
Overall revenues for business type activities increased $ 1,766,258 over the prior year.
The cost of all business activities this year was relatively stable, with approximately $ 16.6 million compared to approximately $ 16.6
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 $ 46,926,179 at June 30,
2020, compared to $ 32,012,307 combined fund balance at June 30, 2019.
The General Fund showed an increase of $ 1,320,856 from the prior year to $ 8,482,357.
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 2020 with a $ 2,686,579 balance compared to the prior year ending balance of $ 2,617,568.
The Debt Service Fund ended fiscal 2020 with a $ 1,793,090 balance compared to the prior year ending balance of $ 755,983. Bond
principal and interest payments increased by $ 520,292 in fiscal 2020.
The Local Option Sales Tax Fund ended fiscal 2020 with a $4,726,484 balance compared to the prior year ending balance of
$ 2,015,215.
The Capital Projects Fund ended fiscal 2020 with a $ 25,644,379 balance compared to the prior year ending balance of $ 17,793,834.
Proprietary Fund Highlights
The Water Fund, which accounts for the operation and maintenance of the City’s water system, ended fiscal 2020 with a net position
of $21,014,786 compared to the prior year ending net position balance of $ 19,411,303.
The Sewer Fund, which accounts for the operation and maintenance of the City’s wastewater treatment and sanitary sewer system,
ended fiscal 2020 with a net position of $ 36,228,640, compared to the prior year ending net position balance of $ 32,291,710.
The Gas Fund, which accounts for the operations and maintenance of the City’s gas utility, ended fiscal 2020 with a $ 16,998,051 net
position balance, compared to the prior year ending net position balance of $ 14,995,765.
The Golf Course Fund, which accounts for the operations and maintenance of the City's municipal golf course, ended fiscal 2020 with
a net position of $ 690,642, compared to the prior year ending net position balance of $ 761,121.
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BUDGETARY HIGHLIGHTS
Over the course of the year, the City of Waukee amended its budget once in May of 2020. The amendment was required to cover
unplanned disbursements, including program expenditures associated with a decrease to Public Safety and Culture and Recreation,
and an increase to Public Works, Community and Economic Development, General Government, Debt Service, and Business Type
Activities; while also increasing revenue sources for Licenses and Permits, Use of Money and Property, Intergovernmental, Charges
for Services, Miscellaneous, Other Financing Sources and Transfers.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets include land, buildings and improvements, equipment, streets, sewer systems, lighting systems, traffic signals
and other infrastructure. Capital assets for governmental activities totaled $ 183,365,294 (net of accumulated depreciation) at June
30, 2020. Capital assets for business type activities totaled $ 76,036,857 (net of accumulated depreciation) at June 30, 2020. 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 Library interior renovations, City
wide phone system and copier/printer replacement, land purchase for future public safety building, replacement of road grader, Sugar
Creek Municipal Golf Course golf carts replacement, Kettlestone Blvd, Fox Creek park including the City’s first splash pad, and the
continuation of the entrance signage project.
For business type activities, the major additions included the fees associated with the Wastewater Reclamation Authority (WRA),
completion of the NW Area water main extension-phase II, a water chloramination facility; sewer projects included the completion
of Kettlestone East sewer installation; gas projects included general distribution system improvements, and the completion of the
Alice’s Road Gas Main improvements project to relocate the main along the Alice’s Road corridor in conjunction with the paving
project.
Construction in progress at June 30, 2020 for the City consists primarily of the Alice’s Road Widening Phase 4 & Phase 5 projects,
Triumph Park planning, and planning & engineering for several roads projects including Ashworth Road improvements, street
infrastructure for the new Northwest High School including 10th Street, Sunrise Drive, 4th Street and Douglas Parkway, 5-Way
intersection and Warrior Lane improvements; parks projects also included Alice’s Historic District park, Westown Meadows park and
Glynn Village park.
Long-Term Debt
At June 30, 2020, the City had $ 74,784,983 in total non-current debt outstanding for governmental activities. Total non-current debt
outstanding for business type activities was $ 24,267,910 at June 30, 2020.
The City maintained their general obligation bond rating of Aa2, assigned by national rating agency, Moody’s Investors Services, on
April 10, 2017. The Constitution of the State of Iowa limits the amount of general obligation debt cities can issue to 5 percent of the
assessed value of all taxable property within the City’s corporate limits. The City’s outstanding general obligation debt of
$ 76,357,000 or 72.81%, is below its constitutional debt limit of $ 104,866,529. Other obligations include accrued vacation pay, net
OPEB liability and net pension liability. Additional information about the City’s long-term debt is presented in Note 5 to the financial
statements.
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ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE
Several economic factors affected decisions made by the City in setting its fiscal 2021 budget. The City of Waukee will experience
a significant increase in General Fund revenues and expenditures from fiscal 2020 to fiscal 2021. The major factors that will play a
role in this change are the increase in property tax revenues from increased valuations for fiscal 2021, and the new increase generated
by the Local Sales Tax approved by voters in November 2017.
The General Fund is projected to end fiscal 2021 with a fund balance of approximately $ 7,810,000, or a planned decrease of $ 671,600
from fiscal 2020. The tax levy rates per $1,000 of taxable valuation for fiscal 2021 was reduced by $0.10/$1000 as provided below:
General levy $7.90
Debt Service levy 3.32
Employee Benefits Levy 2.08
Total $13.30
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to present our citizens, taxpayers, customers, investors and creditors with a general overview of the
City’s finances and operating activities. If you have any questions or require additional information, please contact the City
Administrator or the Finance Director, at Waukee City Hall, 230 W Hickman Road, Waukee, Iowa.
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BASIC FINANCIAL STATEMENTS
See Notes to Financial Statements.
-15-
City of Waukee, Iowa
STATEMENT OF NET POSITION
June 30, 2020
Primary Government
Governmental Business Type
Activities Activities Total
ASSETS
Current assets
Cash and investments $ 48,500,597 $ 26,178,042 $ 74,678,639
Receivables
Property tax
Delinquent 223,229 – 223,229
Succeeding year 23,120,093 – 23,120,093
Special assessments 176,528 – 176,528
Customer accounts – 1,692,465 1,692,465
Other 668,131 – 668,131
Due from other governments 704,555 – 704,555
Internal balances 645,397 (645,397) –
Inventories 248,646 316,661 565,307
Total unrestricted current assets 74,287,176 27,541,771 101,828,947
Restricted assets – cash and investments – 1,972,269 1,972,269
Noncurrent assets
Capital assets, net of accumulated depreciation 183,365,294 76,036,857 259,402,151
Total assets 257,652,470 105,550,897 363,203,367
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 1,521,794 305,364 1,827,158
OPEB related deferred outflows 25,032 8,396 33,428
Total deferred outflows of resources 1,546,826 313,760 1,860,586
LIABILITIES
Current liabilities
Accounts payable 3,259,807 1,291,070 4,550,877
Accrued compensation 399,205 84,376 483,581
Accrued interest payable 201,000 58,285 259,285
Customer deposits payable – 254,769 254,769
Compensated absences 63,317 78,873 142,190
General obligation bonds/notes 6,875,000 21,846 6,896,846
Tax increment financing (TIF) bonds 175,000 – 175,000
Revenue notes payable – 1,623,031 1,623,031
Total current liabilities 10,973,329 3,412,250 14,385,579
Noncurrent liabilities
Compensated absences 341,709 – 341,709
General obligation bonds/notes, net 70,994,050 92,512 71,086,562
Revenue notes payable, net – 23,437,999 23,437,999
Total OPEB liability 335,939 112,685 448,624
Net pension liability 3,113,285 624,714 3,737,999
Total noncurrent liabilities 74,784,983 24,267,910 99,052,893
Total liabilities 85,758,312 27,680,160 113,438,472
See Notes to Financial Statements.
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City of Waukee, Iowa
STATEMENT OF NET POSITION (continued)
June 30, 2020
Primary Government
Governmental Business Type
Activities Activities Total
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property taxes 23,120,093 – 23,120,093
Pension related deferred inflows 779,685 156,453 936,138
OPEB related deferred inflows 68,375 22,936 91,311
Total deferred inflows of resources 23,968,153 179,389 24,147,542
NET POSITION
Net investment in capital assets 125,342,452 56,721,544 182,063,996
Restricted for
Debt service 1,982,364 482,539 2,464,903
Other purposes 16,749,534 – 16,749,534
Unrestricted 5,398,481 20,801,025 26,199,506
Total net position $149,472,831 $ 78,005,108 $227,477,939
See Notes to Financial Statements.
-17-
City of Waukee, Iowa
STATEMENT OF ACTIVITIES
Year ended June 30, 2020
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
FUNCTIONS/PROGRAMS
Primary Government
Governmental activities
Public safety $ 7,702,081 $ 2,235,300 $ – $ –
Public works 8,399,357 783,835 3,376,316 2,556,302
Culture and recreation 2,828,872 251,316 – 390,250
Community and economic development 893,086 – – –
General government 1,260,145 210,413 – –
Interest on long-term debt 2,372,952 – – –
Total governmental activities 23,456,493 3,480,864 3,376,316 2,946,552
Business-type activities
Water 4,602,967 6,212,099 – –
Sewer 3,178,219 7,009,264 – –
Gas 5,809,784 7,797,032 – –
Golf 705,741 483,994 – –
Other 2,336,189 2,856,832 – –
Total business-type activities 16,632,900 24,359,221 – –
Total Primary Government $40,089,393 $27,840,085 $ 3,376,316 $ 2,946,552
GENERAL REVENUES
Property and other city tax levied for
General purposes
Debt service
Employee benefits
Tax increment financing
Local option sales tax
Commercial/Industrial tax replacement
Unrestricted interest on investments
Gain from disposal of capital assets
Miscellaneous
TRANSFERS
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION BEGINNING OF YEAR
NET POSITION END OF YEAR
See Notes to Financial Statements.
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Net Revenue (Expense) and Changes in Net Position
Primary Government
Governmental Business-type
Activities Activities Total
$ (5,466,781) $ – $ (5,466,781)
(1,682,904) – (1,682,904)
(2,187,306) – (2,187,306)
(893,086) – (893,086)
(1,049,732) – (1,049,732)
(2,372,952) – (2,372,952)
(13,652,761) – (13,652,761)
– 1,609,132 1,609,132
– 3,831,045 3,831,045
– 1,987,248 1,987,248
– (221,747) (221,747)
– 520,643 520,643
– 7,726,321 7,726,321
(13,652,761) 7,726,321 (5,926,440)
8,784,556 – 8,784,556
4,249,659 – 4,249,659
2,245,797 – 2,245,797
5,198,896 – 5,198,896
3,191,666 – 3,191,666
325,767 – 325,767
529,735 392,745 922,480
349,045 132,949 481,994
1,642,806 209,210 1,852,016
618,003 (618,003) –
27,135,930 116,901 27,252,831
13,483,169 7,843,222 21,326,391
135,989,662 70,161,886 206,151,548
$149,472,831 $78,005,108 $227,477,939
See Notes to Financial Statements.
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City of Waukee, Iowa
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2020
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
ASSETS
Cash and investments $ 8,173,303 $27,918,796 $1,956,353 $2,599,980 $4,483,636 $3,425,286 $48,357,354
Receivables
Property tax
Delinquent 67,694 – 40,287 97,856 – 17,392 223,229
Succeeding year 9,208,288 – 4,726,775 6,765,615 – 2,419,415 23,120,093
Special assessments – 949 – – – 175,579 176,528
Other 432,182 179,479 – – – 56,470 668,131
Due from other funds 645,397 – – – – – 645,397
Due from other governments – 160,000 – – 242,848 301,707 704,555
Inventory 122,894 – – – – 125,752 248,646
Total assets $18,649,758 $28,259,224 $6,523,415 $9,463,451 $4,726,484 $6,521,601 $74,143,933
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts payable $ 469,126 $ 2,453,896 $ 3,550 $ 11,257 $ – $ 321,978 $ 3,259,807
Accrued compensation 378,024 – – – – 21,181 399,205
Total liabilities 847,150 2,453,896 3,550 11,257 – 343,159 3,659,012
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax 9,208,288 – 4,726,775 6,765,615 – 2,419,415 23,120,093
Special assessments – 949 – – – 165,737 166,686
Intergovernmental – 160,000 – – – – 160,000
Other 111,963 – – – – – 111,963
Total deferred inflows of
resources 9,320,251 160,949 4,726,775 6,765,615 – 2,585,152 23,558,742
FUND BALANCES
Nonspendable 768,291 – – – – 125,752 894,043
Restricted for
Capital projects – 25,644,379 – – – – 25,644,379
Debt service – – 1,793,090 – – 189,274 1,982,364
Urban renewal and development – – – 2,686,579 – – 2,686,579
Other purposes 435,036 – – – 4,726,484 3,278,264 8,439,784
Committed 664,574 – – – – – 664,574
Unassigned 6,614,456 – – – – – 6,614,456
Total fund balances 8,482,357 25,644,379 1,793,090 2,686,579 4,726,484 3,593,290 46,926,179
Total liabilities, deferred
inflows of resources
and fund balances $18,649,758 $28,259,224 $6,523,415 $9,463,451 $4,726,484 $6,521,601 $74,143,933
See Notes to Financial Statements.
-20-
City of Waukee
RECONCILIATION OF THE BALANCE SHEET—
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
June 30, 2020
Total governmental fund balances $ 46,926,179
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. 183,365,294
Other long term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds, as unavailable revenue 438,649
Long-term liabilities, including bonds payable, bond premiums and discounts,
other post employment benefits payable, net pension liability, compensated
absences and accrued interest payable, are not due and payable in the current
period and, therefore, are not reported as liabilities in the governmental funds. (82,099,300)
Pension and OPEB related deferred outflows of resources and deferred inflows of
resources are not due and payable in the current year and, therefore, are not
reported in the governmental funds, as follows:
Deferred outflows of resources 1,546,826
Deferred inflows of resources (848,060) 698,766
The Internal Service Fund is used by management to charge the costs of
future equipment purchases to individual funds. The assets of the Internal
Service Fund are allocated between governmental and business type
activities in the Statement of Net Position. 143,243
Net position of governmental activities $149,472,831
See Notes to Financial Statements.
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City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year ended June 30, 2020
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
REVENUES
Property tax $ 8,652,771 $ – $4,249,659 $ – $ – $2,245,797 $15,148,227
Tax increment financing – – – 5,198,896 – – 5,198,896
Other city tax 9,412 175,480 – – 3,191,666 13,476 3,390,034
Licenses and permits 1,961,060 288,636 – – – 69,969 2,319,665
Use of money and property 202,569 289,663 17,312 64,831 42,973 28,585 645,933
Intergovernmental 531,936 953,229 70,313 68,654 – 2,461,633 4,085,765
Charges for services 614,439 – – – – 1,525 615,964
Miscellaneous 113,711 – – – – 1,529,095 1,642,806
Total revenues 12,085,898 1,707,008 4,337,284 5,332,381 3,234,639 6,350,080 33,047,290
EXPENDITURES
Operating
Public safety 7,097,460 – – – – – 7,097,460
Public works 655,182 – – – – 1,794,905 2,450,087
Culture and recreation 2,231,556 – – – – – 2,231,556
Community and economic
development 720,045 – – 142,594 – – 862,639
General government 1,119,735 – – – – – 1,119,735
Debt service
Principal – – 7,055,024 – – – 7,055,024
Interest – – 2,269,948 – – – 2,269,948
Bond issuance and other costs – 260,227 7,127 – – – 267,354
Capital projects 1,802,207 11,587,732 – – – 331,720 13,721,659
Total expenditures 13,626,185 11,847,959 9,332,099 142,594 – 2,126,625 37,075,462
Excess (deficiency) of
revenues over (under)
expenditures (1,540,287) (10,140,951) (4,994,815) 5,189,787 3,234,639 4,223,455 (4,028,172)
OTHER FINANCING SOURCES
(USES)
Bond proceeds – 17,455,000 – – – – 17,455,000
Bond premium – 536,496 – – – – 536,496
Sale of capital assets 322,416 – – – – 26,629 349,045
Operating transfers in 2,555,227 – 6,031,922 – – – 8,587,149
Operating transfers out (16,500) – – (5,120,776) (523,370) (2,325,000) (7,985,646)
Total other financing
sources (uses) 2,861,143 17,991,496 6,031,922 (5,120,776) (523,370) (2,298,371) 18,942,044
CHANGE IN FUND BALANCES 1,320,856 7,850,545 1,037,107 69,011 2,711,269 1,925,084 14,913,872
FUND BALANCES, beginning 7,161,501 17,793,834 755,983 2,617,568 2,015,215 1,668,206 32,012,307
FUND BALANCES, ending $ 8,482,357 $25,644,379 $1,793,090 $2,686,579 $4,726,484 $3,593,290 $46,926,179
See Notes to Financial Statements.
-22-
City of Waukee
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES—
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year ended June 30, 2020
Change in fund balances—Total governmental funds $14,913,872
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 17,718,993
Depreciation expense (6,962,409) 10,756,584
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds
Changes in unavailable revenue
Special assessments (66,583)
Grants (947,947)
Other 42,477 (972,053)
Proceeds from issuing long-term liabilities provide current financial resources to
governmental funds, but issuing debt increase long-term liabilities in the
Statement of Net Position. Repayment of long-term liabilities is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the
Statement of Net Position. Current year issues exceeded repayments as follows:
Issued (17,455,000)
Repaid 7,055,024 (10,399,976)
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. (347,146)
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. 743,015
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in governmental funds, as follows:
Compensated absences (79,333)
Other postemployment benefits (42,603)
Pension expense (1,083,569)
Interest on long-term debt (25,000) (1,230,505)
The Internal Service Fund is used by management to charge the costs of future
equipment purchases to individual funds. The change in net position of the
Internal Service Fund is allocated to governmental activities. 19,378
Change in net position of governmental activities $13,483,169
See Notes to Financial Statements.
-23-
City of Waukee, Iowa
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2020
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
ASSETS
Current assets
Cash and investments $ 7,594,211 $11,782,918 $ 4,901,411 $ – $1,815,818 $ 26,094,358 $ 226,927
Receivables, net of allowances
Customer accounts 656,649 499,548 257,268 – 279,000 1,692,465 –
Due from other funds 100,000 – – – – 100,000 –
Inventories 95,668 – 203,974 17,019 – 316,661 –
Total current assets 8,446,528 12,282,466 5,362,653 17,019 2,094,818 28,203,484 226,927
Noncurrent assets
Restricted assets – cash and investments
Customer deposits 153,819 – 100,950 – – 254,769 –
Revenue note and interest sinking account 59,635 220,815 39,758 43,805 15,310 379,323 –
Revenue note reserve account 715,699 565,136 – 57,342 – 1,338,177 –
Capital assets, net of accumulated
depreciation 18,802,211 41,613,358 11,956,731 1,860,462 1,804,095 76,036,857 –
Total noncurrent assets 19,731,364 42,399,309 12,097,439 1,961,609 1,819,405 78,009,126 –
Total assets 28,177,892 54,681,775 17,460,092 1,978,628 3,914,223 106,212,610 –
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 62,621 62,286 76,059 22,211 82,187 305,364 –
OPEB related deferred outflows 2,282 1,802 2,376 525 1,411 8,396 –
Total deferred outflows of resources 64,903 64,088 78,435 22,736 83,598 313,760 –
LIABILITIES
Current liabilities
Accounts payable 529,113 212,971 165,538 42,639 340,809 1,291,070 –
Accrued compensation 19,056 15,140 19,473 14,761 15,946 84,376 –
Compensated absences 21,055 13,832 21,564 4,290 18,132 78,873 –
Due to other funds – – – 745,397 – 745,397 –
Customer deposits payable 153,819 – 100,950 – – 254,769 –
General obligation notes payable – – – 21,846 – 21,846 –
Revenue notes payable 315,000 920,000 – 323,031 65,000 1,623,031 –
Interest payable 17,553 39,207 – 940 585 58,285 –
Total current liabilities 1,055,596 1,201,150 307,525 1,152,904 440,472 4,157,647 –
Noncurrent liabilities
General obligation notes payable, net – – – 92,512 – 92,512 –
Revenue notes payable, net 5,975,369 17,127,630 – – 335,000 23,437,999 –
Total OPEB liability 30,617 24,185 31,889 7,051 18,943 112,685 –
Net pension liability 128,111 127,424 155,602 45,440 168,137 624,714 –
Total noncurrent liabilities 6,134,097 17,279,239 187,491 145,003 522,080 24,267,910 –
Total liabilities 7,189,693 18,480,389 495,016 1,297,907 962,552 28,425,557 –
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows 32,084 31,912 38,969 11,380 42,108 156,453 –
OPEB related deferred inflows 6,232 4,922 6,491 1,435 3,856 22,936 –
Total deferred inflows of resources 38,316 36,834 45,460 12,815 45,964 179,389 –
NET POSITION
Net investment in capital assets 14,495,458 27,229,855 11,956,731 1,423,073 1,616,427 56,721,544 –
Restricted for bond retirement 442,781 – 39,758 – – 482,539 –
Unrestricted 6,076,547 8,998,785 5,001,562 (732,431) 1,372,878 20,717,341 226,927
Total net position $21,014,786 $36,228,640 $16,998,051 $ 690,642 $2,989,305 77,921,424 $ 226,927
Amounts reported for business type activities in the
Statement of Net Position are different because
The Internal Service Fund is used by management to charge the costs of future equipment
purchases to individual funds. The assets of the Internal Service Fund are allocated between
governmental and business type activities in the Statement of Net Position. 83,684
Net assets of business type activities $78,005,108
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, 2020
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
OPERATING REVENUES
Charges for services $ 6,212,099 $ 7,009,264 $ 7,797,032 $ 483,994 $2,856,832 $24,359,221 $ –
Miscellaneous 6,050 7,811 41,311 77,468 3,531 136,171 –
Total operating revenues 6,218,149 7,017,075 7,838,343 561,462 2,860,363 24,495,392 –
OPERATING EXPENSES
Business type activities
Cost of sales and services 3,566,928 1,698,344 5,351,261 614,502 2,235,422 13,466,457 –
Depreciation and amortization 680,277 1,074,603 426,799 68,804 94,399 2,344,882 –
Total operating expenses 4,247,205 2,772,947 5,778,060 683,306 2,329,821 15,811,339 –
Operating income (loss) 1,970,944 4,244,128 2,060,283 (121,844) 530,542 8,684,053 –
NONOPERATING REVENUES
(EXPENSES)
Interest income 133,029 173,066 60,641 – 26,009 392,745 2,878
Rental income 73,039 – – – – 73,039 –
Gain on disposal of capital assets 12,261 21,698 25,190 73,800 – 132,949 –
Interest expense and fiscal charges (355,762) (405,272) (31,724) (22,435) (6,368) (821,561) –
Total nonoperating revenues
(expenses) (137,433) (210,508) 54,107 51,365 19,641 (222,828) 2,878
Income (loss) before transfers 1,833,511 4,033,620 2,114,390 (70,479) 550,183 8,461,225 2,878
Transfers in – – – – – – 16,500
Transfers (out) (230,028) (96,690) (112,104) – (179,181) (618,003) –
CHANGE IN NET POSITION 1,603,483 3,936,930 2,002,286 (70,479) 371,002 7,843,222 19,378
NET POSITION, beginning 19,411,303 32,291,710 14,995,765 761,121 2,618,303 70,078,202 207,549
NET POSITION, ending $21,014,786 $36,228,640 $16,998,051 $ 690,642 $2,989,305 $77,921,424 $ 226,927
See Notes to Financial Statements.
-25-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year ended June 30, 2020
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $6,194,025 $ 6,964,295 $7,773,081 $ 483,994 $2,858,404 $24,273,799 $ –
Cash received from other revenues 6,050 7,811 41,311 77,468 3,531 136,171 –
Cash paid for personal services (897,696) (716,293) (937,998) (206,756) (558,881) (3,317,624) –
Cash paid to suppliers (2,549,756) (962,322) (4,314,251) (394,176) (1,657,450) (9,877,955) –
Net cash flows from operating activities 2,752,623 5,293,491 2,562,143 (39,470) 645,604 11,214,391 –
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payments made on interfund accounts – – – (25,002) – (25,002) –
Transfers to other funds (230,028) (96,690) (112,104) – (179,181) (618,003) –
Transfers from other funds – – – – – – 16,500
Net cash flows from noncapital
financing activities (230,028) (96,690) (112,104) (25,002) (179,181) (643,005) 16,500
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (935,245) (3,607,056) (859,335) (9,238) (239,595) (5,650,469) –
Proceeds from sale of capital assets 12,261 32,029 51,129 73,800 – 169,219 –
Principal paid on revenue notes (2,210,000) (798,000) (1,195,000) (68,286) (60,000) (4,331,286) –
Interest and fiscal charges paid (341,505) (417,038) (34,413) (22,604) (6,438) (821,998) –
Proceeds from bond issuance 2,242,925 2,041,918 – – – 4,284,843 –
Proceeds from equipment notes payable – – – 125,000 – 125,000 –
Net cash flows from capital and
related financing activities (1,231,564) (2,748,147) (2,037,619) 98,672 (306,033) (6,224,691) –
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 133,029 173,066 60,641 – 26,009 392,745 2,878
Purchase of investments (96,835) – – – – (96,835) –
Cash received from property rental 73,039 – – – – 73,039 –
Net cash flows from investing activities 109,233 173,066 60,641 – 26,009 368,949 2,878
NET CHANGE IN CASH AND CASH
EQUIVALENTS 1,400,264 2,621,720 473,061 34,200 186,399 4,715,644 19,378
CASH AND CASH EQUIVALENTS, beginning 6,407,401 9,745,902 4,569,058 9,605 1,644,729 22,376,695 207,549
CASH AND CASH EQUIVALENTS, ending $7,807,665 $12,367,622 $5,042,119 $ 43,805 $1,831,128 $27,092,339 $ 226,927
See Notes to Financial Statements.
-26-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
Year ended June 30, 2020
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss) $1,970,944 $ 4,244,128 $2,060,283 $ (121,844) $ 530,542 $ 8,684,053 $ –
Adjustments to reconcile operating income
(loss) to net cash provided by (used in)
operating activities
Depreciation expense 680,277 1,074,603 426,799 68,804 94,399 2,344,882 –
Change in assets, deferred outflows,
liabilities and deferred inflows
Customer accounts receivable (18,074) (44,969) (23,951) – 1,572 (85,422) –
Inventories 24,256 – 87,902 (1,653) – 110,505 –
Accounts payable, net of capital assets 74,377 22,561 (3,087) 20,893 (3,605) 111,139 –
Accrued compensation 3,643 59 1,180 1,024 677 6,583 –
Customer deposits (10,103) – (1,450) – – (11,553) –
Compensated absences 6,940 1,102 6,830 1,397 2,378 18,647 –
Net pension liability (13,922) (48,295) (42,149) (29,273) (16,778) (150,417) –
Deferred outflows of resources 9,615 27,372 24,673 15,864 12,261 89,785 –
Deferred inflows of resources 23,279 19,321 25,483 5,797 28,111 101,991 –
OPEB liability 1,391 (2,391) (370) (479) (3,953) (5,802) –
Net cash flows from operating activities $2,752,623 $ 5,293,491 $2,562,143 $ (39,470) $ 645,604 $11,214,391 $ –
RECONCILIATION OF CASH AND CASH
EQUIVALENTS AT YEAR END TO SPECIFIC
ASSETS INCLUDED ON THE STATEMENT
OF NET POSITION
Current assets
Cash and investments $7,594,211 $11,782,918 $4,901,411 $ – $1,815,818 $26,094,358 $ 226,927
Restricted assets – cash and investments
Customer deposits 153,819 – 100,950 – – 254,769 –
Revenue note and interest sinking account 59,635 220,815 39,758 43,805 15,310 379,323 –
Revenue note reserve account 715,699 565,136 – 57,342 – 1,338,177 –
8,523,364 12,568,869 5,042119 101,147 1,831,128 28,066,627 226,927
Less items not meeting the definition of
cash equivalent
Certificates of deposit (715,699) (201,247) – (57,342) – (974,288) –
Cash and cash equivalents at year end $7,807,665 $12,367,622 $5,042,119 $ 43,805 $1,831,128 $27,092,339 $ 226,927
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-27-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Waukee is a political subdivision of the State of Iowa located in Dallas County. It was first incorporated in
1869 and operates under the Home Rule provisions of the Constitution of Iowa. The City operates under the Mayor-
Council-Clerk/Administrator form of government with the Mayor and Council Members elected on a non-partisan basis.
The City of Waukee provides numerous services to citizens, including public safety, public works, 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 Board, Central Iowa Regional Drinking Water Commission, Dallas County Housing
Trust Fund Board, Dallas County Emergency Management Commission, Metro Advisory Council, Westcom, Wastewater
Reclamation Authority and Waukee Economic Development Corporation.
Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and the Statement of Activities report information on all of the nonfiduciary activities of
the primary government and its component units. 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 $25,881,283.
Restricted net position results when constraints placed on net position use are either externally imposed or imposed
by law through constitutional provisions or enabling legislation.
Unrestricted net position consists of net position not meeting the definition of the preceding categories. Unrestricted
net position often has constraints on resources imposed by management which can be removed or modified.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-28-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of Presentation (continued)
Government-wide Financial Statements (continued)
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by
program revenues. Direct expenses are those clearly identifiable with a specific function. Program 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 Golf Fund is used to account for the operation and maintenance of the City's municipal golf course.
Measurement Focus and Basis of Accounting
The government-wide and proprietary fund financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property tax is recognized as revenue in the year for
which it is levied. Grants and similar items are recognized as revenue as 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 recorded in the General
Fund unless otherwise provided by law.
For purposes of the statement of cash flows, all short-term cash investments that are highly liquid (including restricted
assets) are considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash and,
at the day of purchase, have a maturity date no longer than three months.
Property Tax Receivable, Including Tax Increment Financing
Property tax, including tax increment financing, in governmental funds are accounted for using the modified accrual basis
of accounting.
Property tax receivable is recognized in these funds on the levy or lien date, which is the date that the tax asking 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, 2020 and unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City Council to be collected in the next fiscal year for the purposes set out in the budget
for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year
for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year
becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded,
the related revenue is deferred in both the government-wide and fund financial statements and will not be recognized as
revenue until the year for which it is levied.
Property tax revenues recognized in these funds become due and collectible in September and March of the current fiscal
year with a 1½ percent per month penalty for delinquent payments; is based on January 1, 2018 assessed property
valuations; is for the tax accrual period July 1, 2019 through June 30, 2020 and reflects the tax asking contained in the
budget certified to the County Board of Supervisors in March 2019.
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, 2020, 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.
Capital Assets
Capital assets, which include property, equipment and vehicles and infrastructure assets acquired after July 1, 1980 (e.g.
roads, bridges, curbs, gutters, sidewalks and similar items which are immovable and of value only to the City) are reported
in the applicable governmental or business type activities columns in the government-wide Statement of Net Position and
in the Proprietary Funds Statement of Net Position. Capital assets are recorded at historical cost if purchased or
constructed. Donated capital assets are recorded at 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.
Capital assets of the City are depreciated using the straight-line method over the following estimated useful lives:
Estimated
Asset Class useful lives
Buildings 40-50 years
Improvements other than buildings 20-50 years
Vehicles 5-10 years
Equipment 5-30 years
Infrastructure 20-40 years
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and will not be
recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources consist of
unrecognized items not yet charged to pension expense and contributions from the City after the measurement date but
before the end of the City’s reporting period.
Compensated Absences
City employees accumulate a limited amount of earned but unused vacation for subsequent use. A liability is recorded
when incurred in the government-wide and proprietary fund financial statements. For governmental fund types, the
amount of earned but unused vacation is recorded as a liability of the respective fund only if they have matured, for
example, as a result of employee retirement. The compensated absences liability has been computed based on rates of
pay in effect at June 30, 2020. The compensated absences liability attributable to the governmental activities will be paid
primarily by the General Fund.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-32-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental or business type activities column in the Statement of Net Position
and the proprietary fund Statement of Net Position.
In the governmental fund financial statements, the face amount of debt issued is reported as other financing sources.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the Iowa Public Employees’
Retirement System (IPERS) and additions to/deductions from IPERS’ fiduciary 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 consist of property tax receivable and other receivables not
collected within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax and tax increment
financing receivable that will not be recognized as revenue until the year for which they are levied and the unamortized
portion of the net difference between projected and actual earnings on IPERS’ investments.
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-33-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Balances (continued)
Committed – Amounts which can be used only for specific purposes pursuant to constraints formally imposed by the
City Council through ordinance or resolution approved prior to year-end. Those committed amounts cannot be used
for any other purpose unless the City Council removes or changes the specified use by taking the same action it
employed to commit those amounts.
Unassigned – All amounts not included in the preceding classifications. The General Fund is the only fund which
would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds
would also be reported as unassigned.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information. For the year
ended June 30, 2020, the City’s disbursements exceeded the amount budgeted in the business type activities function.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred
outflows of resources, liabilities, deferred inflows of resources at the date of the basic financial statements and the reported
amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those
estimates.
NOTE 2 CASH AND POOLED CASH INVESTMENTS
The City's deposits in banks at June 30, 2020 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
-34-
NOTE 3 ALLOWANCES FOR COLLECTION LOSSES
Allowances have been made for estimated collection losses on the following receivable amounts:
Allowance
for
Gross collection Net
receivables losses receivables
Customer accounts
Water fund $ 657,499 $ 850 $ 656,649
Sewer fund 499,948 400 499,548
Gas fund 259,018 1,750 257,268
Nonmajor proprietary funds 279,000 – 279,000
Totals $1,695,465 $ 3,000 $1,692,465
Other
General fund $ 502,182 $ 70,000 $ 432,182
Capital projects fund 179,479 – 179,479
Nonmajor governmental funds 56,470 – 56,470
Totals $ 738,131 $ 70,000 $ 668,131
NOTE 4 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2020 was as follows:
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Governmental activities
Capital assets not being depreciated
Land $ 18,304,637 $ 1,404,649 $ – $ – $ 19,709,286
Construction in progress 27,179,593 11,790,995 – (15,084,142) 23,886,446
Total capital assets not being depreciated 45,484,230 13,195,644 – (15,084,142) 43,595,732
Capital assets being depreciated
Buildings 9,059,466 – – 211,959 9,271,425
Improvements other than buildings 181,509,694 3,511,344 – 14,872,183 199,893,221
Equipment 7,959,732 1,012,005 201,798 – 8,769,939
Total capital assets being depreciated 198,528,892 4,523,349 201,798 15,084,142 217,934,585
Less accumulated depreciation for
Buildings 3,622,811 308,168 – – 3,930,979
Improvements other than buildings 62,663,898 6,029,379 – – 68,693,277
Equipment 5,117,703 624,862 201,798 – 5,540,767
Total accumulated depreciation 71,404,412 6,962,409 201,798 – 78,165,023
Total capital assets being depreciated, net 127,124,480 (2,439,060) – 15,084,142 139,769,562
Governmental activities capital assets, net $172,608,710 $10,756,584 $ – $ – $183,365,294
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-35-
NOTE 4 CAPITAL ASSETS (continued)
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Business type activities
Capital assets not being depreciated
Land $ 1,226,032 $ – $ – $ – $ 1,226,032
Construction in progress 12,223,518 3,094,903 – (12,513,498) 2,804,923
Total capital assets not being depreciated 13,449,550 3,094,903 – (12,513,498) 4,030,955
Capital assets being depreciated
Buildings 557,486 – – – 557,486
Equipment 4,770,938 369,464 322,400 – 4,818,002
Infrastructure 76,403,643 2,290,490 – 12,513,498 91,207,631
Total capital assets being depreciated 81,732,067 2,659,954 322,400 12,513,498 96,583,119
Less accumulated depreciation for
Buildings 250,223 13,192 – – 263,415
Equipment 3,070,619 305,546 286,130 – 3,090,035
Infrastructure 19,197,623 2,026,144 – – 21,223,767
Total accumulated depreciation 22,518,465 2,344,882 286,130 – 24,577,217
Total capital assets being depreciated, net 59,213,602 315,072 36,270 12,513,498 72,005,902
Business type activities capital assets, net $ 72,663,152 $ 3,409,975 $ 36,270 $ – $ 76,036,857
Depreciation expense was charged to functions of the primary government as follows:
Governmental activities
Public safety $ 371,796
Public works 5,887,098
Culture and recreation 530,637
Community and economic development 804
General government 172,074
Total depreciation expense--governmental activities $6,962,409
Business type activities
Water $ 680,277
Sewer 1,074,603
Gas 426,799
Golf 68,804
Nonmajor 94,399
Total depreciation expense--business type activities $2,344,882
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-36-
NOTE 5 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2020 is as follows:
Balance Balance
beginning end Due within
of year Increases Decreases of year one year
Governmental activities
General obligation bonds/notes $66,951,928 $17,991,496 $7,074,374 $77,869,050 (1) $6,875,000
Urban Renewal Revenue bonds 345,000 – 170,000 175,000 175,000
Compensated absences 325,693 79,333 – 405,026 63,317
Total OPEB liability 324,540 11,399 – 335,939 –
Net pension liability 3,540,665 – 427,380 3,113,285 –
Totals $71,487,826 $18,082,228 $7,671,754 $81,898,300 $7,113,317
Business type activities
General obligation notes payable $ – $ 125,000 $ 10,642 $ 114,358 $ 21,846
Revenue bonds/notes 25,093,281 4,081,918 4,114,169 25,061,030 (2) 1,623,031
Compensated absences 60,226 18,647 – 78,873 78,873
Total OPEB liability 118,487 – 5,802 112,685 –
Net pension liability 775,131 – 150,417 624,714 –
Totals $26,047,125 $ 4,225,565 $4,281,830 $25,991,660 $1,723,750
(1) Included in balance are unamortized bond premiums and discounts totaling $2,175,160 and $66,110, respectively at
June 30, 2020.
(2) Included in balance are unamortized bond premiums totaling $396,779 at June 30, 2020.
Governmental Activities
Thirteen issues of unmatured general obligation bonds/notes, totaling $75,760,000, are outstanding at June 30, 2020.
General obligation bonds/notes bear interest at rates ranging from 1.2% to 5.0% and mature in varying annual amounts,
ranging from $100,000 to $2,265,000, with the final maturities due in the year ending June 30, 2038.
One issue of unmatured Urban Renewal revenue notes, totaling $175,000, is outstanding at June 30, 2020. The note
bears interest at 3.9% and matures in the year ending June 30, 2021.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-37-
NOTE 5 LONG-TERM LIABILITIES (continued)
Governmental Activities (continued)
Details of general obligation and revenue bonds/notes payable at June 30, 2020 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Governmental activities Date of issue rates due date payments issue 2020
General Obligation Bonds
and Notes
General Obligation 2010A June 2, 2010 3.38-3.50 June 1, 2022 $135,000 - 140,000 $ 1,435,000 $ 275,000
General Obligation 2010B June 2, 2010 3.60 June 1, 2021 185,000 1,745,000 185,000
General Obligation 2012B June 14, 2012 3.00 June 1, 2021 340,000 4,220,000 340,000
Urban Renewal 2012D December 28, 2012 2.00 June 1, 2021 445,000 3,745,000 445,000
General Obligation 2013B May 28, 2013 2.00-3.00 June 1, 2028 100,000 - 350,000 3,280,000 1,085,000
General Obligation 2013D December 12, 2013 3.00-5.00 June 1, 2033 110,000 - 930,000 8,740,000 2,630,000
General Obligation 2014A December 10, 2014 2.00-3.50 June 1, 2034 510,000 - 2,265,000 23,295,000 18,065,000
General Obligation 2015C November 19, 2015 2.00-4.00 June 1, 2030 370,000 - 485,000 7,340,000 4,245,000
General Obligation
Refunding 2016B September 20, 2016 1.20-1.30 June 1, 2022 200,000 - 315,000 1,720,000 515,000
General Obligation 2017A May 24, 2017 2.00-4.00 June 1, 2036 120,000 - 1,900,000 13,940,000 12,745,000
General Obligation 2018A June 19, 2018 3.00-5.00 June 1, 2038 805,000 - 1,310,000 19,775,000 18,320,000
General Obligation 2019A August 21, 2019 3.00-5.00 June 1, 2031 315,000 - 440,000 4,655,000 4,110,000
General Obligation 2020A May 7, 2020 2.15 June 1, 2035 300,000 - 1,190,000 12,800,000 12,800,000
Revenue Bonds
Urban Renewal 2010C June 2, 2010 3.90 June 1, 2021 175,000 1,590,000 175,000
The City has pledged future tax increment revenues to repay the $1,590,000 of bonds issued June 2, 2010. The Urban
Renewal revenue bonds were issued for the purpose of defraying a portion of the cost of an urban renewal project. The
bonds are payable solely from the proceeds of the tax increment revenues received by the City and are payable through
2021. The bonds are not a general obligation of the City. However, the debt is subject to the constitutional debt limitation
of the City. Annual principal and interest payments on the bonds are expected to require approximately three percent of
the tax increment revenues. The total principal and interest remaining to be paid on the notes is $181,825. For the current
year, $183,285 of principal and interest was paid on the bonds and total tax increment revenues were $4,337,284.
The covenants providing for the issuance of the Urban Renewal Revenue Bonds include the following provisions.
a) The City must maintain the urban renewal project area and the ordinance implementing the tax increment mechanism
in force and will annually cause the incremental taxes thereof to be levied in an amount not less than the principal
and interest coming due within the year.
b) The City must maintain proper books and prepare special bond reports, which are to be audited within 210 days of
the City’s fiscal year end and made available to bondholders.
c) The City must comply with the Constitution and laws of Iowa related to each bond issue.
The Revenue bond also has a stated reserve requirement that is calculated as the lesser of (a) 10 percent of the stated
principal amount on the bonds and parity obligations or (b) the maximum annual debt service coming due on the bonds
and other parity obligations, or (c) 125 percent of the average annual principal and interest coming due on the bonds.
The City has established a reserve amount of $159,000.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-38-
NOTE 5 LONG-TERM LIABILITIES (continued)
A summary of the bond/note principal and interest maturities by type of bond/note is as follows:
Year ending General Obligation Revenue
June 30 Principal Interest Total Principal Interest Total
2021 $ 6,875,000 $ 2,383,540 $ 9,258,540 $ 175,000 $ 6,825 $ 181,825
2022 3,960,000 2,160,047 6,120,047 – – –
2023 3,940,000 2,034,559 5,974,559 – – –
2024 4,090,000 1,898,679 5,988,679 – – –
2025 4,305,000 1,760,041 6,065,041 – – –
2026-2030 25,120,000 6,526,035 31,646,035 – – –
2031-2035 22,790,000 2,776,896 25,566,896 – – –
2036-2038 4,680,000 261,000 4,941,000 – – –
Subtotal 75,760,000 19,800,797 95,560,797 175,000 6,825 181,825
Plus unamortized premium 2,109,050 – 2,109,050 – – –
Totals $77,869,050 $19,800,797 $97,669,847 $ 175,000 $ 6,825 $ 181,825
Business-Type Activities
Ten issues of unmatured revenue notes, totaling $24,664,251, are outstanding at June 30, 2020. These notes bear
interest at rates ranging from 1.50% to 5.00% and mature in varying annual amounts, ranging from $65,000 to $747,000,
with the final maturities due in the year ending June 30, 2038.
The City has issued one general obligation note which remains outstanding as of June 30, 2020, totaling $114,358,
payable from the Golf Fund. The note bears interest at a rate of 2.25% and matures in varying amounts, ranging from
$21,846 to $23,921 with final maturity due in the year ending June 30, 2025.
The resolutions providing for the issuance of the revenue notes and bonds 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.
During the year ended June 30, 2020, the City was in compliance with the revenue bond provisions.
The City has pledged future customer revenues, net of specified operating expenses, to repay the $31,032,339 in revenue
notes issued from 2013 to 2020. Proceeds from the notes provided financing for construction of improvements to the
facilities and infrastructure and purchase capacity. The notes are payable solely from customer net revenues and are
payable through 2038. Annual principal and interest payments on the notes are expected to require less than net
revenues. The total principal and interest remaining to be paid on the notes is $30,501,063. For the current year, principal
and interest paid and total customer net revenues were $5,050,497 and $6,567,563, respectively.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-39-
NOTE 5 LONG-TERM LIABILITIES (continued)
Details of revenue notes and bonds payable at June 30, 2020 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Business Type activities Date of issue rates due date payments issue 2020
Revenue Notes and Bonds
Water
Series 2015B July 21, 2015 3.00 June 1, 2027 $115,000 - 140,000 $1,450,000 $ 890,000
Series 2018B June 19, 2018 3.00 - 4.00 June 1, 2038 100,000 - 265,000 3,410,000 3,210,000
Series 2019B August 21, 2019 3.00 - 5.00 June 1, 2034 100,000 - 180,000 2,040,000 1,940,000
Sewer
Series 2013A March 1, 2013 2.00 - 2.50 June 1, 2024 110,000 - 120,000 1,185,000 465,000
Series 2016C December 20, 2016 3.00 - 3.125 June 1, 2036 100,000 - 205,000 2,685,000 2,475,000
Series 2017 September 1, 2017 2.00 June 1, 2035 445,000 - 747,000 12,537,000 9,200,375
Series 2018C June 19, 2018 3.00 – 5.00 June 1, 2038 130,000 - 250,000 3,565,000 3,440,000
Series 2018A July 6, 2018 2.00 June 1, 2035 135,000 - 174,000 2,948,000 2,320,845
Golf Course
Refunding bond
Series 2016 February 19, 2016 3.50 December 1, 2020 323,031 572,339 323,031
Stormwater
Series 2016A June 1, 2016 1.50 - 2.00 June 1, 2026 65,000 - 70,000 640,000 400,000
General Obligation
Golf
Series 2019C November 19, 2019 2.25 June 1, 2025 21,846 - 23,921 125,000 114,358
Year ending Revenue Notes/Bonds General Obligation
June 30 Principal Interest Total Principal Interest Total
2021 $ 1,623,031 $ 666,358 $ 2,289,389 $ 21,846 $ 2,486 $ 24,332
2022 1,348,000 623,997 1,971,997 22,348 1,984 24,332
2023 1,379,000 585,453 1,964,453 22,860 1,472 24,332
2024 1,412,000 545,718 1,957,718 23,383 949 24,332
2025 1,501,000 504,508 2,005,508 23,921 411 24,332
2026-2030 7,650,000 1,896,690 9,546,690 – – –
2031-2035 8,041,220 901,767 8,942,987 – – –
2036-2038 1,710,000 112,321 1,822,321 – – –
Subtotal 24,664,251 5,836,812 30,501,063 114,358 7,302 121,660
Plus unamortized premium 396,779 – 396,779 – – –
Totals $25,061,030 $5,836,812 $30,897,842 $ 114,358 $ 7,302 $ 121,660
As of June 30, 2020, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows:
Actual valuation $2,097,330,572
Debt limit - 5% of total actual valuation $104,866,529
Debt applicable to debt limit
General obligation bonded debt outstanding $75,760,000
Urban Renewal revenue bonds outstanding 175,000
Tax increment financing debt outstanding 422,000
Total debt subject to debt limit $76,357,000
Percentage of debt limit 72.81%
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-40-
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-along 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.
If a member retires before normal retirement age, the member’s monthly retirement benefit will be permanently reduced
by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and
after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25% for each month that the member
receives benefits before the member’s earliest normal retirement age. For service earned starting July 1, 2012, the
reduction is 0.50% for each month that the member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of
the member’s lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July
1990 receive a guaranteed dividend with their regular November benefit payments.
Disability and Death Benefits
A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to
claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before
retirement, the member’s beneficiary will receive a lifetime annuity or a lump-sum payment equal to the present actuarial
value of the member’s accrued benefit or calculated with a set formula, whichever is greater. When a member dies after
retirement, death benefits depend on the benefit option the member selected at retirement.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-41-
NOTE 6 PENSION PLAN (continued)
Contributions
Contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS’ Contribution
Rate Funding Policy and Actuarial Amortization Method. State statute limits the amount rates can increase or decrease
each year to 1 percentage point. IPERS Contribution Rate Funding Policy 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 2020, 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 6.61% of
covered payroll, and the City contributed 9.91% of covered payroll, for a total rate of 16.52%.
The City’s total contributions to IPERS for the year ended June 30, 2020 were $874,936.
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2020, the City reported a liability of $3,737,999 for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2019, 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
2019 2018 Change
City’s proportionate share 0.064552% 0.068199% (0.003647)%
For the year ended June 30, 2020, the City recognized pension expense of $1,246,743. At June 30, 2020, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience $ 30,138 $ 152,436
Change in assumptions 627,785 7,941
Net difference between projected and actual earnings
on IPERS’ investments – 741,169
Change in proportion and difference between
City contributions and proportionate share
of contributions 294,299 34,592
City contributions subsequent to the
measurement date 874,936 –
Totals $1,827,158 $ 936,138
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-42-
NOTE 6 PENSION PLAN (continued)
$874,936 reported as deferred outflows of resources related to pensions resulting from the City contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021.
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
2021 $ 233,417
2022 (75,514)
2023 (42,126)
2024 (91,515)
2025 (8,178)
Totals $ 16,084
There were no non-employer contributing entities at IPERS.
Actuarial Assumptions
The total pension liability in the June 30, 2019 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, 2019 valuation were based on the results of an economic assumption
study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.
Mortality rates used in the 2019 valuation were based on the RP-2014 Employee and Healthy Annuitant Tables with MP-
2017 generational adjustments.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-43-
NOTE 6 PENSION PLAN (continued)
The long-term expected rate of return on IPERS’ investments was determined using a building-block method in which
best-estimate ranges of expected future real rates (expected returns, net of investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term Expected
Asset Class Asset Allocation Rate of Return
Domestic Equity 22.0% 5.60%
International Equity 15.0 6.08
Global Smart Beta Equity 3.0 5.82
Core Plus Fixed Income 27.0 1.71
Public Credit 3.5 3.32
Public Real Assets 7.0 2.81
Cash 1.0 (0.21)
Private Equity 11.0 10.13
Private Real Assets 7.5 4.76
Private Credit 3.0 3.01
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 of current active and
inactive employees. Therefore, the long-term expected rate of return on IPERS’ investments was applied to all periods
of projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0%,
as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1% lower (6.0%) or 1% higher (8.0%) than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.0%) (7.0%) (8.0%)
City’s proportionate share of the net pension liability (asset) $8,634,445 $3,737,999 $ (366,599)
IPERS’ Fiduciary Net Position
Detailed information about IPERS’ fiduciary net position is available in the separately issued IPERS financial report which
is available on IPERS’ website at www.ipers.org.
Payables to IPERS
At June 30, 2020, the City reported payables to IPERS of $36,953 for legally required City contributions and $22,549 for
legally required employee contributions withheld from employee wages which had not yet been remitted to IPERS.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-44-
NOTE 7 OTHER POST EMPLOYMENT BENEFITS
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 4 years of service at retirement. Employees covered by the plan make
contributions toward the plan premiums. At June 30, 2020, the following employees were covered by the benefit terms.
Inactive employees or beneficiaries currently receiving benefit payments 0
Active employees 110
Total 110
Total OPEB Liability
The City’s total OPEB liability of $448,624 was measured as of June 30, 2020, and was determined by an actuarial
valuation as of July 1, 2019.
Actuarial Assumptions
The OPEB liability as of June 30, 2020 was determined using the following actuarial assumptions and the entry age
normal actuarial cost method, applied to all periods included in the measurement.
Rate of inflation 3.0% per annum
Rates of salary increase 3.25% per annum
Discount rate 3.5% per annum
Healthcare cost trend rate 6.0% initial rate decreasing by .25% annually to
an ultimate rate of 5%
The discount rate used to measure the OPEB liability was 3.5% 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-2019 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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-45-
NOTE 7 OTHER POST EMPLOYMENT BENEFITS (continued)
Changes in Total OPEB Liability
OPEB
Liability
Total OPEB liability, July 1, 2019 $ 443,027
Changes for the year
Service cost 42,183
Interest cost 15,270
Differences between expected and actual experience (48,220)
Changes in assumptions 2,242
Benefit payments (5,878)
Net changes 5,597
Total OPEB liability, June 30, 2020 $ 448,624
Changes in assumptions reflect a change in the discount rate from 3.58% in fiscal year 2019 to 3.5% in fiscal year 2020.
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 (2.5%) or 1% higher (4.5%) than the current discount rate.
1% Discount 1%
Decrease Rate Increase
(2.5%) (3.5%) (4.5%)
Total OPEB liability $ 495,319 $ 448,624 $ 405,873
Sensitivity of the City’s Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
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 healthcare cost trend rates that are 1% lower (5% to 4%) or 1% higher (7% to 6%) than the current
healthcare cost trend rates.
Healthcare
1% Cost 1%
Decrease Trend Rate Increase
(5% to 4%) (6% to 5%) (7% to 6%)
Total OPEB liability $ 385,974 $ 448,624 $ 524,421
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2020, the City recognized OPEB expense of $52,786. At June 30, 2020, the City reported
deferred inflows of resources and deferred outflows of resources related to OPEB from the following sources:
Deferred Deferred
Inflows of Outflows of
Resources Resources
Differences between expected and actual experience $ 44,594 $ 31,355
Changes in assumptions or other inputs 46,717 2,073
Totals $ 91,311 $ 33,428
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-46-
NOTE 7 OTHER POST EMPLOYMENT BENEFITS (continued)
The amount reported as deferred inflows of resources and deferred outflows of resources related to OPEB will be
recognized net of OPEB expense as follows:
Year ending June 30
2021 $ (4,667)
2022 (4,667)
2023 (4,667)
2024 (4,667)
2025 (4,667)
Thereafter (34,548)
$ (57,883)
NOTE 8 INTERFUND TRANSFERS
The detail of interfund transfers for the year ended June 30, 2020 is as follows:
Transfer to Transfer from Amount
General Nonmajor governmental funds $2,325,000
Urban renewal TIF 230,227
2,555,227
Debt Service Governmental funds
Urban renewal TIF 4,890,549
Local option sales tax 523,370
Enterprise funds
Water 230,028
Sewer 96,690
Gas 112,104
Nonmajor enterprise funds 179,181
6,031,922
Equipment Revolving General 16,500
Total $8,603,649
Transfers generally move resources from the fund statutorily required to collect the resources to the fund statutorily
required to expend the resources.
NOTE 9 DUE FROM AND DUE TO OTHER FUNDS
The detail of interfund receivables and payables at June 30, 2020 is as follows:
Payable Fund Receivable Fund Amount
Enterprise-Golf Course General $ 645,397
Enterprise-Water 100,000
Total $ 745,397
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-47-
NOTE 9 DUE FROM AND DUE TO OTHER FUNDS (continued)
Amounts due from Golf Course result from interfund loans to finance the Golf Course’s operations. Repayments will be
made from future revenues over the next several years.
NOTE 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 779 members include
various governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for the purpose of
managing and funding third-party liability claims against its members. The Pool provides coverage and protection in the
following categories: general liability, automobile liability, automobile physical damage, public officials’ liability, police
professional liability, property, inland marine and boiler/machinery. There have been no reductions in insurance coverage
from prior years.
Each member's annual casualty contributions to the Pool fund current operations and provide capital. Annual casualty
operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general and administrative
expenses, claims, claims expenses and reinsurance 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, 2020 were $189,601.
The Pool uses reinsurance and excess risk-sharing agreements to reduce its exposure to large losses. The Pool retains
general, automobile, police professional, and public officials' liability risks up to $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 $250,000 each occurrence, each location. Property risks exceeding $250,000 are reinsured through
reinsurance and excess risk-sharing agreements up to the amount of risk-sharing protection provided by the City’s risk-
sharing certificate.
The Pool's intergovernmental contract with its members provides that in the event a casualty claim, property loss, or series
of claims or losses exceeds the amount of risk-sharing protection provided by the City’s risk-sharing certificate, or in the
event a casualty claim, property loss or series of casualty claims or losses exhausts the Pool’s funds and any excess risk-
sharing recoveries, then payment of such claims or losses shall be the obligation of the respective individual 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, 2020, no liability has been recorded in the City's financial statements. As of June 30, 2020, settled claims have not
exceeded the risk pool or reinsurance coverage since the Pool's inception.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-48-
NOTE 10 RISK MANAGEMENT (continued)
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.
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 deductible and maximum out of pocket expense for the
City is reduced by the deductible amount paid by the employee of $200/$400 per single/family plan and employee
maximum out of pocket expense of $500/$1,000 per single/family plan. Claims in excess of deductibles are covered by
Iowa Governmental Health Care Plan.
Monthly payments of service fees and plan contributions to the Iowa Governmental Health Care Plan Fund are recorded
as expenditures from the operating funds. Under the administrative services agreement, monthly payments of service
fees and claims processed are paid to Employee Benefit Systems, who administers the plan. The City records the Plan
assets and related liabilities of the health plan in the General Fund. The City’s contribution to the plan for the year ended
June 30, 2020 was $303,624.
Amounts payable from the Iowa Governmental Health Care Plan at June 30, 2020 total $25,240, 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, 2020 is as follows:
Unpaid claims as of beginning of year $ 32,933
Incurred claims (including claims incurred but
not reported as of June 30) 239,345
Payments on claims (247,038)
Unpaid claims as of year end $ 25,240
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-49-
NOTE 12 COMMITMENTS
The City entered into contract commitments with contractors for the completion of several infrastructure construction
projects. The total contract commitments are approximately $32,000,000 of which approximately $20,000,000 has been
incurred as of June 30, 2020. The unpaid commitment balance is approximately $12,000,000 which will be funded by
current reserves in the capital projects funds and other sources.
The City, in equal partnership with a neighboring city, has entered into an agreement with the Iowa Department of
Transportation (IDOT) where the cities have agreed to reimburse in equal shares the IDOT’s construction cost for a new
interstate interchange which straddles the shared border of the two cities. The construction project was nearly complete
but not finalized at June 30, 2020. As a result, final repayment amounts and terms have not yet been formalized.
However, the cities and IDOT have agreed that payments will be made in ten annual equal principal-only installments
beginning in 2021. It is currently estimated that each city’s share of the total project cost will be approximately $9 million.
No liability for this obligation has been recognized.
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. The total to be paid by the City under the agreements is not to exceed $32,116,986. During the year ended
June 30, 2020, the City rebated $10,000 of incremental property tax to developers. The outstanding balance of the
agreements at June 30, 2020 was $32,116,986.
The agreements are not a general obligation of the City and, due to their nature, are not recorded as a liability in the City’s
financial statements.
The agreements include an annual appropriation clause and, accordingly, only the amount payable in the succeeding
year on the agreements is subject to the constitutional debt limitation. The entire outstanding principal balance of
agreements not including an annual appropriation clause would be subject to the constitutional debt limitation.
In August 2017, the Waukee City Council approved a development agreement with a developer for 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 2020, the developer
contributed $1,500,000 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 of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-50-
NOTE 15 TAX ABATEMENTS (continued)
City Tax Rebates
The City provides tax rebates for urban renewal and economic development projects with tax increment financing as
provided for in Chapter 15A and 403 of the Code of Iowa. For these types of projects, the 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, 2020, $3,882 of property tax was diverted from the City under the urban renewal and
economic development projects.
NOTE 16 JOINT VENTURE
The City is a participating community in the Des Moines Metropolitan Wastewater Reclamation Authority joint venture.
This joint venture provides primary and secondary treatment of the sewer flows for the participating communities. The
Amended and Restated Agreement for the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) was
effective on July 1, 2004, with the second amended and restated agreement becoming effective June 11, 2014. This
agreement amended and restated the previous Integrated Community Area (I.C.A.) Agreement to provide continued
operation, improvements and expansion. The WRA Agreement establishes the WRA as a separate legal entity with its
own Board. The WRA Agreement creates an independent governance structure, establishes an independent bonding
authority for the WRA and provides a framework for additional communities to participate. The City of Waukee joined the
WRA effective July 1, 2007.
Annually, the WRA establishes an allocation to all participating communities based on operations, maintenance, debt
service and reserve requirements. Allocations are based on wastewater reclamation facility flows and are adjusted
prospectively for differences in budgeted flows and actual flows.
The City retains an ongoing financial responsibility to the WRA since it is obligated in some manner for the debts of the
joint venture through the annual allocation. Although the debt of the WRA is to be paid solely and only from WRA
revenues, the participating communities in the joint venture cannot withdraw from the joint venture while any of the bonds
issued during the time the entity was a participating community are still outstanding. The WRA Sewer Revenue Bonds
Series 2013B and 2015E 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 WRA’s outstanding bond obligations to be allocated to the
participating communities based upon the WRA flows of the core communities and expansion communities of each
calendar year. As of June 30, 2020 the WRA’s outstanding bond/loan obligations and the City of Waukee’s estimated
future allocation are as follows:
City of Waukee’s
WRA Outstanding Estimated
Debt Obligation Debt Obligations Future Allocation
Series 2013B and 2015E $ 71,775,000 $ 2,768,602
State Revolving Loans 344,358,376 10,896,149
Total $416,133,376 $13,664,751
The WRA Agreement does not provide for the determination of an equity interest for the participating communities.
Withdrawing from the joint venture is a forfeit of all reversionary interest and no compensation will be paid. Since there is
no specific and measurable equity interest in the WRA Agreement, no investment in the joint venture has been reported
by the City.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-51-
NOTE 16 JOINT VENTURE (continued)
The WRA issues separate financial statements that may be obtained at 3000 Vandalia Road, Des Moines, Iowa 50317-
1346.
NOTE 17 SUBSEQUENT EVENTS
In October 2020, the Waukee City Council approved the issuance of $9,155,000 in General Obligation Bonds Series
2020B for the purpose of providing funds to pay costs of construction, improvement, and equipping of the Triumph Park
project.
-52-
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-53-
City of Waukee, Iowa
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Required Supplementary Information
For the last three years
2020 2019 2018
Service cost $ 42,183 $ 36,277 $ 35,135
Interest cost 15,270 15,487 13,952
Differences between expected and actual experience (48,220) – 38,762
Changes in assumptions 2,242 – (57,754)
Benefit payments (5,878) (10,128) (4,547)
Net change in total OPEB liability 5,597 41,636 25,548
Total OPEB liability, beginning of year 443,027 401,391 375,843
Total OPEB liability, end of year $ 448,624 $ 443,027 $ 401,391
Covered-employee payroll $7,805,648 $6,878,139 $6,661,636
Total OPEB liability as a percentage of covered-employee payroll 5.75% 6.44% 6.03%
NOTES TO SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Changes in benefit terms
There were no significant changes in benefit terms.
Changes in assumptions or other inputs
Changes in assumptions or other inputs reflect the effects of changes in the discount rate each period. The following
are the discount rates used in each period.
Year ended June 30, 2017 4.5%
Year ended June 30, 2018 3.58%
Year ended June 30, 2019 3.58%
Year ended June 30, 2020 3.5%
See accompanying independent auditor's report.
-54-
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, 2020
Governmental Proprietary Total
funds actual funds actual Adjustments actual
REVENUES
Property taxes $15,148,227 $ – $ – $ 15,148,227
Tax increment financing 5,198,896 – – 5,198,896
Other city tax 3,390,034 – – 3,390,034
Licenses and permits 2,319,665 – – 2,319,665
Use of money and property 645,933 465,784 – 1,111,717
Intergovernmental 4,085,765 – – 4,085,765
Charges for services 615,964 24,359,221 – 24,975,185
Miscellaneous 1,642,806 136,171 – 1,778,977
Total revenues 33,047,290 24,961,176 – 58,008,466
EXPENDITURES/EXPENSES
Public safety 7,097,460 – – 7,097,460
Public works 2,450,087 – – 2,450,087
Health and social services – – – –
Culture and recreation 2,231,556 – – 2,231,556
Community and economic development 862,639 – – 862,639
General government 1,119,735 – – 1,119,735
Debt service 9,592,326 – (346,113) 9,246,213
Capital projects 13,721,659 – 260,227 13,981,886
Business type activities – 16,632,900 7,801,697 24,434,597
Total disbursements 37,075,462 16,632,900 7,715,811 61,424,173
Excess (deficiency) of revenues over (under)
expenditures/expenses (4,028,172) 8,328,276 (7,715,811) (3,415,707)
OTHER FINANCING SOURCES (USES), NET 18,942,044 (485,054) – 18,456,990
Excess (deficiency) of revenues and other
financing sources over expenditures/expenses
and other financing uses 14,913,872 7,843,222 (7,715,811) 15,041,283
BALANCES, beginning of year 32,012,307 70,078,202 – 102,090,509
BALANCES, end of year $46,926,179 $77,921,424 $ (7,715,811) $117,131,792
-55-
Budgeted amounts Final to actual
Original Final variance
$15,115,776 $15,115,776 $ 32,451
5,263,083 5,263,083 (64,187)
2,456,905 2,462,405 927,629
1,528,130 1,713,280 606,385
525,180 762,680 349,037
3,941,633 3,944,500 141,265
21,574,860 24,417,860 557,325
1,346,750 1,451,800 327,177
51,752,317 55,131,384 2,877,082
7,795,845 7,789,985 692,525
2,967,540 3,098,940 648,853
2,000 2,000 2,000
2,612,454 2,535,919 304,363
831,960 905,470 42,831
1,900,016 2,575,476 1,455,741
8,633,160 9,333,055 86,842
26,670,000 26,670,000 12,688,114
22,154,756 23,588,144 (846,453)
73,567,731 76,498,989 15,074,816
(21,815,414) (21,367,605) 17,951,898
18,395,000 18,567,800 (110,810)
(3,420,414) (2,799,805) 17,841,088
65,955,806 65,955,806 36,134,703
$62,535,392 $63,156,001 $53,975,791
-56-
City of Waukee, Iowa
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING
Year ended June 30, 2020
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 $2,931,258. This budget amendment is reflected in the final
budgeted amounts.
For the year ended June 30, 2020, the City’s disbursements exceeded the amount budgeted in the business type activities
function.
-57-
City of Waukee, Iowa
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Iowa Public Employees’ Retirement System
For the Last Six Years *
(In Thousands)
Required Supplementary Information
June 30
2020 2019 2018 2017 2016 2015
City’s proportion of the net pension
liability 0.064552% 0.068199% 0.064287% 0.060546% 0.053387% 0.045117%
City’s proportionate share of the net
pension liability $3,738 $4,315 $4,282 $3,810 $2,638 $1,829
City’s covered-employee payroll $9,056 $8,178 $7,814 $6,949 $6,412 $6,005
City’s proportionate share of the net
pension liability as a percentage of
its covered-employee payroll 41.28% 52.76% 54.80% 54.83% 41.14% 30.49%
Plan fiduciary net position as a
percentage of the total pension liability 85.45% 83.62% 82.21% 81.82% 85.19% 84.61%
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full ten-
year trend is compiled, the City will present information for those years for which information is available.
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June
30 of the preceding fiscal year.
See accompanying notes to required supplementary information – pension liability.
-58-
City of Waukee, Iowa
SCHEDULE OF CITY CONTRIBUTIONS
Iowa Public Employees’ Retirement System
Last Ten Fiscal Years
(In Thousands)
Required Supplementary Information
Year ended June 30
2020 2019 2018 2017
Statutorily required contribution $ 875 $ 827 $ 723 $ 641
Contributions in relation to the statutorily
required contribution 875 827 723 641
Contribution deficiency (excess) $ – $ – $ – $ –
City’s covered-employee payroll $9,056 $8,178 $7,814 $6,949
Contributions as a percentage of covered-employee payroll 9.7% 10.1% 9.3% 9.2%
See accompanying notes to required supplementary information – pension liability.
-59-
Year ended June 30
2016 2015 2014 2013 2012 2011
$ 578 $ 550 $ 497 $ 423 $ 374 $ 328
578 550 497 423 374 328
$ – $ – $ – $ – $ – $ –
$6,412 $6,005 $5,339 $4,633 $4,491 $4,144
9.0% 9.2% 9.3% 9.1% 8.3% 7.9%
See accompanying notes to required supplementary information – pension liability.
-60-
City of Waukee, Iowa
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION LIABILITY
Year ended June 30, 2020
CHANGES OF BENEFIT TERMS
There are no significant changes in benefit terms.
CHANGES OF ASSUMPTIONS
The 2018 valuation implemented the following refinements as a result of a demographic assumption study dated June 28,
2018:
• Changed mortality assumptions to the RP-2014 mortality tables with mortality improvements modeled using Scale
MP-2017.
• Adjusted retirement rates.
• Lowered disability rates.
• Adjusted the probability of a vested regular member electing to receive a deferred benefit.
• Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a 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%.
The 2014 valuation implemented the following refinements as a result of a quadrennial experience study:
• Decreased the inflation assumption from 3.25% to 3.00%.
• Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per year.
• Adjusted male mortality rates for retirees in the regular membership group.
• Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning
June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate
closed 20 year period.
-61-
SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-62-
City of Waukee
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2020
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
ASSETS
Cash and investments $1,157,828 $ 63,046 $2,018,499 $ 6,481 $ 179,432 $3,425,286
Receivables
Property tax
Delinquent – 17,392 – – – 17,392
Succeeding year property tax – 2,419,415 – – – 2,419,415
Special assessments – – – – 175,579 175,579
Other 56,470 – – – – 56,470
Due from other governments 301,707 – – – – 301,707
Inventory 125,752 – – – – 125,752
Total assets $1,641,757 $2,499,853 $2,018,499 $ 6,481 $ 355,011 $6,521,601
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 321,978 $ – $ – $ – $ – $ 321,978
Accrued compensation 21,181 – – – – 21,181
Total liabilities 343,159 – – – – 343,159
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax – 2,419,415 – – – 2,419,415
Special assessments – – – – 165,737 165,737
Total deferred inflows of resources – 2,419,415 – – 165,737 2,585,152
FUND BALANCES
Nonspendable 125,752 – – – – 125,752
Restricted for
Debt service – – – – 189,274 189,274
Other 1,172,846 80,438 2,018,499 6,481 – 3,278,264
Total fund balances 1,298,598 80,438 2,018,499 6,481 189,274 3,593,290
Total liabilities, deferred inflows
of resources and fund balances $1,641,757 $2,499,853 $2,108,499 $ 6,481 $ 355,011 $6,521,601
See accompanying independent auditor's report.
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City of Waukee
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year ended June 30, 2020
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
REVENUES
Property taxes $ – $2,245,797 $ – $ – $ – $2,245,797
Other city taxes – – – – 13,476 13,476
Licenses and permits 69,969 – – – – 69,969
Use of money and property – 13,085 12,904 – 2,596 28,585
Intergovernmental 2,423,087 38,546 – – – 2,461,633
Charges for services – – – 1,525 – 1,525
Miscellaneous 29,095 – 1,500,000 – – 1,529,095
Total revenues 2,522,151 2,297,428 1,512,904 1,525 16,072 6,350,080
EXPENDITURES
Operating
Public works 1,794,905 – – – – 1,794,905
Capital projects 331,720 – – – – 331,720
Total expenditures 2,126,625 – – – – 2,126,625
Excess of revenues over expenditures 395,526 2,297,428 1,512,904 1,525 16,072 4,223,455
OTHER FINANCING SOURCES (USES)
Sale of capital assets 26,629 – – – – 26,629
Operating transfers out – (2,325,000) – – – (2,325,000)
Total other financing sources (uses) 26,629 (2,325,000) – – – (2,298,371)
NET CHANGE IN FUND BALANCES 422,155 (27,572) 1,512,904 1,525 16,072 1,925,084
FUND BALANCES, beginning 876,443 108,010 505,595 4,956 173,202 1,668,206
FUND BALANCES, ending $1,298,598 $ 80,438 $2,018,499 $ 6,481 $ 189,274 $3,593,290
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
June 30, 2020
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
ASSETS
Current assets
Cash and investments $ 557,374 $ 74,655 $1,183,789 $1,815,818
Receivables
Customer accounts 127,211 56,829 94,960 279,000
Total current assets 684,585 131,484 1,278,749 2,094,818
Noncurrent assets
Restricted assets – cash and investments – – 15,310 15,310
Capital assets, net of accumulated depreciation – 11,576 1,792,519 1,804,095
Total noncurrent assets – 11,576 1,807,829 1,819,405
Total assets 684,585 143,060 3,086,578 3,914,223
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows – 32,760 49,427 82,187
OPEB related deferred outflows – 586 825 1,411
Total deferred outflows of resources – 33,346 50,252 83,598
LIABILITIES
Current liabilities
Accounts payable – 273 340,536 340,809
Accrued compensation – 8,384 7,562 15,946
Compensated absences – 13,006 5,126 18,132
Revenue notes payable – – 65,000 65,000
Interest payable – – 585 585
Total current liabilities – 21,663 418,809 440,472
Noncurrent liabilities
Revenue notes payable – – 335,000 335,000
Total OPEB liability – 7,870 11,073 18,943
Net pension liability – 67,020 101,117 168,137
Total noncurrent liabilities – 74,890 447,190 522,080
Total liabilities – 96,553 865,999 962,552
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows – 16,784 25,324 42,108
OPEB related deferred inflows – 1,602 2,254 3,856
Total deferred inflows of resources – 18,386 27,578 45,964
NET POSITION
Net investment in capital assets – 11,576 1,604,851 1,616,427
Unrestricted 684,585 49,891 638,402 1,372,878
Total net position $ 684,585 $ 61,467 $2,243,253 $2,989,305
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, 2020
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
OPERATING REVENUES
Charges for services $1,384,718 $ 378,443 $1,093,671 $2,856,832
Miscellaneous – 3,087 444 3,531
Total operating revenues 1,384,718 381,530 1,094,115 2,860,363
OPERATING EXPENSES
Business type activities
Cost of sales and services 1,324,052 377,850 533,520 2,235,422
Depreciation and amortization – 8,139 86,260 94,399
Total operating expenses 1,324,052 385,989 619,780 2,329,821
Operating income (loss) 60,666 (4,459) 474,335 530,542
NONOPERATING REVENUES (EXPENSES)
Interest income 7,222 785 18,002 26,009
Interest expense and fiscal charges – – (6,368) (6,368)
Total nonoperating revenues 7,222 785 11,634 19,641
Income (loss) before transfers 67,888 (3,674) 485,969 550,183
Transfers (out) – – (179,181) (179,181)
– – (179,181) (179,181)
CHANGE IN NET POSITION 67,888 (3,674) 306,788 371,002
NET POSITION, beginning 616,697 65,141 1,936,465 2,618,303
NET POSITION, ending $ 684,585 $ 61,467 $2,243,253 $2,989,305
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, 2020
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customer and users $1,395,078 $ 374,102 $1,089,224 $2,858,404
Cash received from other revenues – 3,087 444 3,531
Cash paid for personal services – (230,502) (328,379) (558,881)
Cash paid to supplies (1,324,052) (133,900) (199,498) (1,657,450)
Net cash flows from operating activities 71,026 12,787 561,791 645,604
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer to other funds – – (179,181) (179,181)
Net cash flows from noncapital financing activities – – (179,181) (179,181)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets – – (239,595) (239,595)
Principal paid on revenue notes – – (60,000) (60,000)
Interest and fiscal charges paid – – (6,438) (6,438)
Net cash flows from capital and related financing activities – – (306,033) (306,033)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 7,222 785 18,002 26,009
Net cash flows from investing activities 7,222 785 18,002 26,009
NET CHANGE IN CASH AND CASH EQUIVALENTS 78,248 13,572 94,579 186,399
CASH AND CASH EQUIVALENTS, beginning 479,126 61,083 1,104,520 1,644,729
CASH AND CASH EQUIVALENTS, ending $ 557,374 $ 74,655 $1,199,099 $1,831,128
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, 2020
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
RECONCILATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 60,666 $ (4,459) $ 474,335 $ 530,542
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities
Depreciation expense – 8,139 86,260 94,399
Change in assets, deferred outflows, liabilities and
deferred inflows
Customer accounts receivable 10,360 (4,341) (4,447) 1,572
Accounts payable, net of capital assets – (6,712) 3,107 (3,605)
Accrued compensation – 374 303 677
Compensated absences – 2,579 (201) 2,378
Net pension liability – 6,062 (22,840) (16,778)
Deferred outflows of resources – (1,751) 14,012 12,261
Deferred inflows of resources – 12,508 15,603 28,111
OPEB liability – 388 (4,341) (3,953)
Net cash flows from operating activities $ 71,026 $ 12,787 $ 561,791 $ 645,604
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 $ 557,374 $ 74,655 $1,183,789 $1,815,818
Restricted assets – cash and investments
Revenue note and interest sinking account – – 15,310 15,310
Cash and cash equivalents at year end $ 557,374 $ 74,655 $1,199,099 $1,831,128
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
2020 2019 2018 2017
REVENUES
Property tax $15,148,227 $13,264,907 $11,935,530 $ 9,985,457
Tax increment financing 5,198,896 4,130,856 3,549,942 3,414,595
Other city tax 3,390,034 2,598,522 59,400 35,436
Licenses and permits 2,319,665 2,427,879 1,287,456 1,594,670
Use of money and property 645,933 934,034 525,131 325,215
Intergovernmental 4,085,765 5,368,170 5,921,270 4,250,128
Charges for services 615,964 471,715 546,674 540,001
Miscellaneous 1,642,806 785,244 255,233 479,481
Totals $33,047,290 $29,981,327 $24,080,636 $20,624,983
EXPENDITURES
Operating
Public safety $ 7,097,460 $ 6,206,481 $ 5,443,568 $ 4,839,355
Public works 2,450,087 2,158,676 1,935,403 1,997,301
Health and social services – 800 700 –
Culture and recreation 2,231,556 2,125,735 2,039,626 1,838,317
Community and economic development 862,639 991,664 1,387,462 1,206,432
General government 1,119,735 1,139,586 1,074,305 818,853
Debt service 9,592,326 8,859,158 7,227,132 8,930,321
Capital projects 13,721,659 16,764,881 25,490,622 10,369,279
Totals $37,075,462 $38,246,981 $44,598,818 $29,999,858
See accompanying independent auditor’s report.
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Modified Accrual Basis
2016 2015 2014 2013 2012 2011
$ 9,436,301 $ 8,385,843 $ 7,666,911 $ 7,133,514 $ 6,811,607 $ 6,397,893
3,229,861 3,204,146 3,017,853 3,427,898 3,186,693 3,051,143
27,921 133,216 60,988 39,355 462,040 62,895
1,288,941 1,391,499 1,057,350 639,233 507,344 531,196
195,336 182,503 222,405 210,762 204,505 215,266
5,241,337 5,602,222 2,539,186 3,713,932 1,762,542 4,495,541
351,341 414,059 597,042 728,310 253,692 239,040
405,168 385,164 281,147 1,058,091 813,998 440,669
$20,176,206 $19,698,652 $15,442,882 $16,951,095 $14,002,421 $15,433,643
$ 4,281,395 $ 3,543,201 $ 3,286,146 $ 2,912,583 $ 3,040,673 $ 2,821,515
2,297,252 2,281,384 2,241,516 1,580,884 1,381,993 1,192,453
5,100 4,800 16,500 12,750 15,175 16,909
1,763,428 1,599,802 1,457,105 2,010,987 1,338,835 1,312,158
1,211,082 760,100 910,021 618,937 885,864 1,023,639
817,880 872,753 757,317 785,443 868,324 787,974
7,507,909 6,421,577 5,996,633 4,642,544 6,111,183 3,919,273
11,339,024 19,067,964 9,226,292 5,976,606 3,501,963 7,768,712
$29,223,070 $34,551,581 $23,891,530 $18,540,734 $17,144,010 $18,842,633
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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, 2020, 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 9, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances of
noncompliance or other matters which are 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, 2020 are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City. Since our audit was based on tests and samples, not all
transactions that might have had an impact on the comments were necessarily audited. The comments
involving statutory and other legal matters are not intended to constitute legal interpretations of those
statutes.
City’s Response to the Finding
The City’s response to the finding identified in our audit is described in the accompanying schedule of
findings. The City’s response was not subject to the auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of 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 & COMPANY, LLP
W est Des Moines, Iowa
November 9, 2020
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SCHEDULE OF FINDINGS
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City of Waukee, Iowa
SCHEDULE OF FINDINGS
Year ended June 30, 2020
SECTION I—OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING
I-A-20 CERTIFIED BUDGET
Disbursements during the year ended June 30, 2020 exceeded the amounts budgeted in the business type
activities function. 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
While the business type activities function was not amended prior to exceeding budgeted expenditures, the
overage was applicable to a prepayment of debt during the fiscal year. The City will work to amend future
budgets prior to exceeding approved expenditures.
Conclusion
Response accepted.
I-B-20 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.
I-C-20 TRAVEL EXPENSE
No expenditures of City money for travel expenses of spouses of City officials and/or employees were noted.
I-D-20 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.
I-E-20 BUSINESS TRANSACTIONS
We noted no business transactions between the City and City officials or employees in excess of $1,500.
I-F-20 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.
I-G-20 COUNCIL MINUTES
No transactions were found that we believe should have been approved in the Council minutes but were not.
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City of Waukee, Iowa
SCHEDULE OF FINDINGS (continued)
Year ended June 30, 2020
SECTION I—OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING (continued)
I-H-20 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.
I-I-20 REVENUE BONDS AND NOTES
No instances of noncompliance with the City’s revenue bond and note provisions were noted.
I-J-20 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.