HomeMy WebLinkAbout2021-12-20-F01 Presentation_FY2021 AuditAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 20, 2021
AGENDA ITEM:Independent Auditor’s Final Report for the fiscal year ending June 30, 2021
FORMAT:Presentation
SYNOPSIS INCLUDING PRO & CON: City staff met with David Ellis and Robert Endriss of
Denman & Company on 12/15/2021 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. FY2021 Audit Report
PREPARED BY:Becky Schuett
REVIEWED BY:
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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,
2021. 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 16, 2021. 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 4 to the financial statements and the pension plan disclosure
in Note 5 to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management. The
attached schedules summarize uncorrected misstatements of the financial statements. Management has
determined that their effects are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole. Corrected misstatements identified during the audit were related to the conversion from the cash
basis to the accrual basis of accounting. These adjustments were prepared from information provided by City
personnel and had a significant effect on the City's financial statements.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 10, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Matters
We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic
financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing
the information and comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on other supplementary information which accompanies the financial statements but
are not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information complies
with accounting principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the other supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the use of the City of Waukee Council and management, and is not
intended to be, and should not be, used by anyone other than these specified parties.
DENMAN & COMPANY, LLP
West Des Moines, Iowa
December 10, 2021
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionJune 2021 construction inspection fees not recorded as a receivable.F(52,921) (52,921) (52,921) - (52,921) Total(52,921) - - (52,921) (52,921) - (52,921) (52,921) - - (52,921) (52,921) - (52,921) (52,921) - - (52,921) (52,921) - (52,921) 18,630,137 11,301,5077,328,630 13,278,670 17,039,743 (3,761,073) -0.28% 0.00% 0.00% -0.72% -0.40% 0.00% 1.41%-0.28% 0.00% 0.00% -0.72% -0.40% 0.00% 1.41%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)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:Staff oversightLess audit adjustments subsequently bookedCity of WaukeeFinancial Statement Date:6/30/2021General FundA Listing of Known Audit Differences Over: $13,680
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 (16,739) 16,739 (16,739) Total (16,739) - - - - 16,739 (16,739) (16,739) - - - - 16,739 (16,739) (16,739) - - - - 16,739 (16,739) 19,374,320 726,024 18,648,296 10,840,171 9,078,713 1,761,458 -0.09% 0.00% 0.00% 0.00% 0.00% 0.18% -0.95%-0.09% 0.00% 0.00% 0.00% 0.00% 0.18% -0.95%Financial statement caption totalsCurrent year AD as % of F/S captions (iron curtain method)Net unadjusted AD—current year (iron curtain method)Effect of unadjusted AD—prior yearsCombined current year and prior year AD (rollover method)City of Waukee Financial Statement Date: 6/30/2021Current and prior year AD as % of F/S captions (rollover method)Less audit adjustments subsequently bookedGas A Listing of Known Audit Differences Over: $ 14,120 Description (Nature) of Audit Difference (AD)Factual (F), Judgmental (J), or Projected (P) CauseFinancial Statement Effect—Amount of Over- (Under-) statement of:Client oversight
Governmental Unit:Opinion Unit:Total AssetsTotal LiabilitiesWorking Cap.Fund Balance/Net Position Revenues Expen.Change in Fund Balance/ Net PositionAccrued interest receivableF 4,991 4,991 - 4,991 Total 4,991 - - - 4,991 - 4,991 4,991 - - - 4,991 - 4,991 4,991 - - - 4,991 - 4,991 1,888,705 599,001 1,289,704 847,257 571,587 275,670 0.26% 0.00% 0.00% 0.00% 0.59% 0.00% 1.81%0.26% 0.00% 0.00% 0.00% 0.59% 0.00% 1.81%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)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:Client oversightLess audit adjustments subsequently bookedCity of Waukee Financial Statement Date: 6/30/2021Golf Fund A Listing of Known Audit Differences Over: $ 2,030
City of Waukee, Iowa
INDEPENDENT AUDITOR'S REPORTS
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS
June 30, 2021
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 27-50
REQUIRED SUPPLEMENTARY INFORMATION 51
Schedule of changes in the City’s total OPEB liability, related ratios and notes 52
Budgetary comparison schedule of revenues, expenditures/expenses and changes in
balances—budget and actual—governmental funds and proprietary funds 53-54
Note to required supplementary information—budgetary reporting 55
Schedule of the City’s proportionate share of the net pension liability 56
Schedule of City contributions 57-58
Notes to required supplementary information—pension liability 59
SUPPLEMENTARY INFORMATION 60
Nonmajor Governmental Funds
Combining balance sheet 61
Combining schedule of revenues, expenditures and changes in fund balances 62
Nonmajor Proprietary Funds
Combining statement of net position 63
Combining statement of revenues, expenses and changes in fund net position 64
Combining statement of cash flows 65-66
Schedule of revenues by source and expenditures by function—all governmental funds 67-68
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 69-70
SCHEDULE OF FINDINGS 71-73
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City of Waukee, Iowa
OFFICIALS
Term expires
MAYOR AND MEMBERS OF CITY COUNCIL
Courtney Clarke, Mayor January 2024
Chris Crone, Council Member January 2024
Ben Sinclair, Council Member January 2022
Larry Lyon, Council Member January 2024
Anna Bergman Pierce, Council Member January 2022
Charlie Bottenberg, Council Member January 2022
CITY ADMINISTRATOR
Tim Moerman Indefinite
CITY CLERK
Rebecca D. Schuett Indefinite
DIRECTOR OF FINANCE
Linda Burkhart Indefinite
CITY ATTORNEY
Steven P. Brick January 2022
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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, 2021, 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, 2021, 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 52 through 59 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, 2020
(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 December 10, 2021 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
December 10, 2021
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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, 2021. We encourage readers to consider this information in conjunction with the City’s financial statements, which follow.
2021 FINANCIAL HIGHLIGHTS
• Revenues of the City’s Governmental Funds increased 9.9 %, or $ 3,268,673, from fiscal 2020 to fiscal 2021. Property and other City Taxes increased $ 1,559,164, Tax Increment Financing increased $ 1,516,505, Licenses and Permits decreased $ 167,532, Intergovernmental increased $ 21,321, Charges for Services increased $ 225,766, Use of Money/Property decreased $ 346,163 and Miscellaneous increased $ 459,612.
• Program expenditures of the City’s Governmental Funds increased 63.9 %, or $ 23,706,047 in fiscal 2021 from fiscal 2020. Public Safety expenses increased $ 564,499, Health and Social Services increased $ 79,000, Community and Economic Development decreased $ 17,761, Culture and Recreation increased $ 122,973, Public Works increased $ 431,339, General Government increased $ 260,018, Debt Service increased $ 2,937,433 and Capital Projects increased $ 19,328,546.
• The City has a net position of $ 257,599,211 on June 30, 2021 as compared to $ 227,477,939 on June 30, 2020. Of this amount, the net position of the Governmental Activities was $ 168,700,668 and the net position of the Business Type Activities was $ 88,898,543.
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.
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
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by most private sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid. The Statement of Net Position presents all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as “net position”. Over time, increases or decreases in the City’s net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal years. The Statement of Net Position and the Statement of Activities report two kinds of activities:
• Governmental activities include public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service and capital projects. Property tax, state and federal grants, and license and permit fees finance most of these activities.
• Business type activities include the water, sewer, gas and storm water utilities, the municipal golf course and the City’s sanitation department. These activities are financed primarily by user charges.
Fund Financial Statements The City has two kinds of funds: (1) Governmental funds account for most of the City’s basic services. These focus on how money flows into and out of those funds and the balances at year-end that are available for spending. Governmental funds include: 1) the General Fund, 2) the Special Revenue Funds, such as Tax Increment Financing Revenues, and Local Options Sales Tax, 3) the Debt Service Fund and 4) the Capital Projects Fund. These funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund financial statements provide a detailed, short-term view of the City’s general governmental operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The required financial statements for governmental funds include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. 2) Proprietary funds account for the City’s Enterprise 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 2021 2020 2021 2020 2021 2020 Current and Other Assets $86,141,818 $ 74,287,176 $32,150,209 $ 29,514,040 $118,292,027 $103,801,216 Capital Assets 218,226,580 183,365,294 82,873,285 76,036,857 301,099,865 259,402,151 Total Assets 304,368,398 257,652,470 115,023,494 105,550,897 419,391,892 363,203,367 Deferred Outflows of Resources 1,872,768 1,546,826 336,157 313,760 2,208,925 1,860,586 Current Liabilities 19,186,059 10,973,329 3,708,364 3,412,250 22,894,423 14,385,579 Non-Current Liabilities 91,864,026 74,784,983 22,706,336 24,267,910 114,570,362 99,052,893 Total Liabilities 111,050,085 85,758,312 26,414,700 27,680,160 137,464,785 113,438,472 Deferred Inflows of Resources 26,490,413 23,968,153 46,408 179,389 26,536,821 24,147,542 Net Position: Net investment in Capital Assets 140,345,707 125,342,452 65,578,280 56,721,544 205,923,987 182,063,996 Restricted 24,142,119 18,731,898 1,051,493 482,539 25,193,612 19,214,437 Unrestricted 4,212,842 5,398,481 22,268,770 20,801,025 26,481,612 26,199,506 Total Net Position $ 168,700,668 $ 149,472,831 $ 88,898,543 $ 78,005,108 $ 257,599,211 $ 227,477,939 Net position of governmental activities increased $ 19,227,837, or 12.86%, over fiscal year 2020. Net position of business type activities increased $ 10,893,435, or 13.97%, over fiscal year 2020. 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 $ 26,481,612 at the end of this year.
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Changes in Net Position for the Year Ended June 30, 2021 Governmental Activities Business Type Activities Total 2021 2020 2021 2020 2021 2020 Revenues: Property Tax Levied and Other City Tax $ 16,470,531 $ 15,280,012 $ – $ – $ 16,470,531 $ 15,280,102 Tax Increment Financing 6,715,401 5,198,896 – – 6,715,401 5,198,896 Local Option Sales Tax 3,588,423 3,191,666 – – 3,588,423 3,191,666 Commercial/Industrial Tax Replacement 585,000 325,767 – – 585,000 325,767 Unrestricted Interest 140,858 529,735 82,506 392,745 223,364 922,480 Operating Grants and Contributions 2,743,573 3,376,316 – – 2,743,573 3,376,316 Charges for Services 3,752,470 3,480,864 30,654,257 24,359,221 34,406,727 27,840,085 Capital Grants and Contributions 7,504,071 2,946,552 910,400 – 8,414,471 2,946,552 Gain from Disposal of Capital Assets 209,266 349,045 21,849 132,949 231,115 481,994 Grants/Contributions Not Restricted 2,572,513 – – – 2,572,513 – Miscellaneous 44,553 1,642,806 245,897 209,210 290,450 1,852,016 Total Revenues 44,326,659 36,321,659 31,914,909 25,094,125 76,241,568 61,415,874 Transfers 290,350 618,003 (290,350) (618,003) – – Total Revenues and Transfers $ 44,617,009 $ 36,939,662 $ 31,624,559 $ 24,476,122 $ 76,241,568 $ 61,415,784
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Governmental Activities Business Type Activities Total 2021 2020 2021 2020 2021 2020 Program Expenses Public Safety $ 8,261,049 $ 7,702,081 $ – $ – $ 8,261,049 $ 7,702,081 Public Works 9,106,146 8,399,357 – – 9,106,146 8,399,357 Health and Social Services 79,000 – – – 79,000 – Culture and Recreation 3,267,418 2,828,872 – – 3,267,418 2,828,872 Community and Economic Development 861,193 893,086 – – 861,193 893,086 General Government 1,845,872 1,260,145 – – 1,845,872 1,260,145 Interest on Long-Term Debt 1,968,494 2,372,952 – – 1,968,494 2,372,952 Business Type Activities – – 20,731,124 16,632,900 20,731,124 16,632,900 Total Expenses 25,389,172 23,456,493 20,731,124 16,632,900 46,120,296 40,089,393 Increase in Net Position 19,227,837 13,483,169 10,893,435 7,843,222 30,121,272 21,326,391 Net Position Beginning of Year 149,472,831 135,989,662 78,005,108 70,161,886 227,477,939 206,151,548 Net Position End of Year $ 168,700,668 $ 149,472,831 $ 88,898,543 $ 78,005,108 $257,599,211 $ 227,477,939
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The City lowered the property tax levy by $0.10 to $ 13.30 per $1,000 for FY21, while recognizing an increase of $ 2,707,024 in property tax revenue due to increase in residential and commercial property valuation. Revenues for operating and capital grants and contributions restricted and unrestricted interest, increased by $6,708,573, charges for services increased by $ 6,566,642, gain from disposal of capital assets decreased $ 250,879 and miscellaneous revenues decreased by $ 1,561,566. Overall revenues for governmental activities increased $ 8,005,000 from the prior year. The cost of all governmental activities this year was approximately $ 25.4 million compared to approximately $ 23.5 million last year. However, as shown in the Statement of Activities on pages 18 and 19, the amount taxpayers ultimately financed for these activities was ($ 11.4) million as some of the cost was paid by those directly benefiting from the programs ($ 3,752,470) or by other governments and organizations which subsidized certain programs with grants and contributions ($ 10,247,644). Overall revenues for business type activities increased $ 6,820,784 over the prior year. The cost of all business activities increased to $ 20.7 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 $ 52,273,414 at June 30, 2021, compared to $ 46,926,179 combined fund balance at June 30, 2020. The General Fund showed a decrease of $ 1,153,727 from the prior year to $ 7,328,630. 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 2021 with a $ 4,558,839 balance compared to the prior year ending balance of $ 2,686,579. The Debt Service Fund ended fiscal 2021 with a $ 3,416,205 balance compared to the prior year ending balance of $ 1,793,090. Bond principal and interest payments increased by $ 2,723,325 in fiscal 2021. The Local Option Sales Tax Fund ended fiscal 2021 with a $7,309,927 balance compared to the prior year ending balance of $ 4,726,484. The Capital Projects Fund ended fiscal 2021 with a $ 25,673,832 balance compared to the prior year ending balance of $ 25,644,379.
Proprietary Fund Highlights
The Water Fund, which accounts for the operation and maintenance of the City’s water system, ended fiscal 2021 with a net position of $23,819,760 compared to the prior year ending net position balance of $ 21,014,786. The Sewer Fund, which accounts for the operation and maintenance of the City’s wastewater treatment and sanitary sewer system, ended fiscal 2021 with a net position of $ 40,742,746, compared to the prior year ending net position balance of $ 36,228,640. The Gas Fund, which accounts for the operations and maintenance of the City’s gas utility, ended fiscal 2021 with a $ 18,648,296 net position balance, compared to the prior year ending net position balance of $ 16,998,051. The Golf Course Fund, which accounts for the operations and maintenance of the City's municipal golf course, ended fiscal 2021 with a net position of $ 1,289,704, compared to the prior year ending net position balance of $ 690,642.
BUDGETARY HIGHLIGHTS
-12-
Over the course of the year, the City of Waukee amended its budget once in May of 2021. The amendment was required to cover unplanned disbursements, including program expenditures associated with a decrease to Public Safety, Culture and Recreation, and Transfers Out and an increase to Public Works, Health and Social Services, Community and Economic Development, General Government, Debt Service, and Enterprise Activities; while also increasing revenue sources for Licenses and Permits, Intergovernmental, Charges for Services, Miscellaneous, Other Financing Sources, and a decrease to Use of Money and Property, 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 $ 218,226,580 (net of accumulated depreciation) at June 30, 2021. Capital assets for business type activities totaled $ 82,873,285 (net of accumulated depreciation) at June 30, 2021. See Note 3 to the financial statements for more information about the City’s capital assets. The major capital outlays for governmental activities during the year included the completion of City Hall exterior renovations, library patron services system, land purchase for future civic campus, server refresh and Zoom room projects, warning siren upgrade project; several parks projects including Alice Nizzi Park, Glynn Village Park & trails phase 1; and the extension of SE Kettlestone Blvd. For business type activities, the major additions included the fees associated with the Wastewater Reclamation Authority (WRA), completion of the transite water main phase 1 and the Kettlestone sanitary trunk sewer project and the annual gas distribution system improvements. Construction in progress at June 30, 2021 for the City consists primarily of street projects including NW 10th Street, NW 2nd and Sunrise Phase II, and NW Douglas 10th to 2nd for the new Northwest High School, continuation of construction for the Triumph Park sports complex, Warrior Lane roundabout phase 1, Laurel Street, SE Ashworth Corridor and the traffic signal enhancement project; as well as several utility projects including an ASR well, Warrior Lane joint utility trench, transite water main phase 2, Little Walnut Creek sewer phase 2, SW Area trunk sewer phase 2, and the rehabilitation of lift station number 3.
Long-Term Debt At June 30, 2021, the City had $ 91,864,026 in total non-current debt outstanding for governmental activities. Total non-current debt outstanding for business type activities was $ 22,706,336 at June 30, 2021. 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 $93,863,698 or 78.99%, is below its constitutional debt limit of $ 118,834,828. Other obligations include accrued vacation pay, total OPEB liability and net pension liability. Additional information about the City’s long-term debt is presented in Note 4 to the financial statements.
-13-
ECONOMIC FACTORS BEARING ON THE CITY’S FUTURE Several economic factors affected decisions made by the City in setting its fiscal 2022 budget. The City of Waukee will experience a significant increase in General Fund revenues and expenditures from fiscal 2021 to fiscal 2022. The major factors that will play a role in this change are the increase in property tax revenues from increased valuations for fiscal 2022, and the continued increase generated by the Local Option Sales Tax approved by voters in November 2017. The General Fund is projected to end fiscal 2022 with a fund balance of approximately $ 8,285,000, or a planned increase of $ 475,000 from fiscal 2021. The tax levy rates per $1,000 of taxable valuation for fiscal 2022 maintained the current levy 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, 2021
Primary Government
Governmental Business Type
Activities Activities Total
ASSETS
Current assets
Cash and investments $ 57,593,241 $ 27,546,178 $ 85,139,419
Receivables
Property tax
Delinquent 39,839 – 39,839
Succeeding year 26,285,120 – 26,285,120
Special assessments 138,864 – 138,864
Customer accounts – 2,329,601 2,329,601
Other 618,789 – 618,789
Due from other governments 861,038 93,128 954,166
Internal balances 287,804 (287,804) –
Inventories 317,123 469,351 786,474
Total unrestricted current assets 86,141,818 30,150,454 116,292,272
Restricted cash and investments – 1,999,755 1,999,755
Noncurrent assets
Capital assets, net of accumulated depreciation 218,226,580 82,873,285 301,099,865
Total assets 304,368,398 115,023,494 419,391,892
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 1,849,720 328,415 2,178,135
OPEB related deferred outflows 23,048 7,742 30,790
Total deferred outflows of resources 1,872,768 336,157 2,208,925
LIABILITIES
Current liabilities
Accounts payable 7,223,928 1,958,865 9,182,793
Accrued compensation 447,071 89,209 536,280
Accrued interest payable 279,000 53,728 332,728
Customer deposits payable – 324,534 324,534
Compensated absences 60,119 82,720 142,839
General obligation bonds/notes 10,675,000 – 10,675,000
Revenue notes payable – 570,000 570,000
Notes from direct borrowings and placements 325,000 651,656 976,656
Installment contract 175,941 – 175,941
Total current liabilities 19,186,059 3,730,712 22,916,771
Noncurrent liabilities
Compensated absences 396,296 – 396,296
General obligation bonds/notes, net 73,929,982 – 73,929,982
Revenue notes payable, net – 11,137,424 11,137,424
Notes from direct borrowings and placements 12,175,000 10,628,814 22,803,814
Installment contract 527,822 – 527,822
Total OPEB liability 374,582 125,824 500,406
Net pension liability 4,460,344 791,926 5,252,270
Total noncurrent liabilities 91,864,026 22,683,988 114,548,014
Total liabilities 111,050,085 26,414,700 137,464,785
See Notes to Financial Statements.
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City of Waukee, Iowa
STATEMENT OF NET POSITION (continued)
June 30, 2021
Primary Government
Governmental Business Type
Activities Activities Total
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property taxes 26,285,120 – 26,285,120
Pension related deferred inflows 142,410 25,285 167,695
OPEB related deferred inflows 62,883 21,123 84,006
Total deferred inflows of resources 26,490,413 46,408 26,536,821
NET POSITION
Net investment in capital assets 140,345,707 65,578,280 205,923,987
Restricted for
Debt service 3,645,595 1,051,493 4,697,088
Other purposes 20,496,524 – 20,496,524
Unrestricted 4,212,842 22,268,770 26,481,612
Total net position $168,700,668 $ 88,898,543 $257,599,211
See Notes to Financial Statements.
-17-
City of Waukee, Iowa
STATEMENT OF ACTIVITIES
Year ended June 30, 2021
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Service Contributions Contributions
FUNCTIONS/PROGRAMS
Primary government
Governmental activities
Public safety $ 8,261,049 $ 2,664,393 $ 21,881 $ –
Public works 9,106,146 430,112 2,721,692 6,621,858
Health and social services 79,000 – – –
Culture and recreation 3,267,418 464,147 – 882,213
Community and economic development 861,193 – – –
General government 1,845,872 193,818 – –
Interest on long-term debt 1,968,494 – – –
Total governmental activities 25,389,172 3,752,470 2,743,573 7,504,071
Business type activities
Water 4,914,481 7,823,371 – –
Sewer 3,517,434 8,068,235 – –
Gas 9,078,713 10,758,155 – –
Golf 571,587 747,540 – –
Other 2,648,909 3,256,956 – 910,400
Total business type activities 20,731,124 30,654,257 – 910,400
Total primary government $46,120,296 $34,406,727 $2,743,573 $8,414,471
GENERAL REVENUES
Property and other city tax levied for
General purposes
Debt service
Employee benefits
Tax increment financing
Local option sales tax
Commercial/Industrial tax replacement
Grants and contributions not restricted for specific purposes
Unrestricted interest on investments
Gain from disposal of capital assets
Miscellaneous
TRANSFERS
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION BEGINNING OF YEAR
NET POSITION END OF YEAR
See Notes to Financial Statements.
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Net Revenue (Expense) and Changes in Net Position
Primary Government
Governmental Business Type
Activities Activities Total
$ (5,574,775) $ – $ (5,574,775)
667,516 – 667,516
(79,000) – (79,000)
(1,921,058) – (1,921,058)
(861,193) – (861,193)
(1,652,054) – (1,652,054)
(1,968,494) – (1,968,494)
(11,389,058) – (11,389,058)
– 2,908,890 2,908,890
– 4,550,801 4,550,801
– 1,679,442 1,679,442
– 175,953 175,953
– 1,518,447 1,518,447
– 10,833,533 10,833,533
(11,389,058) 10,833,533 (555,525)
9,286,018 – 9,286,018
4,751,948 – 4,751,948
2,432,565 – 2,432,565
6,715,401 – 6,715,401
3,588,423 – 3,588,423
585,000 – 585,000
2,572,513 – 2,572,513
140,858 82,506 223,364
209,266 21,849 231,115
44,553 245,897 290,450
290,350 (290,350) –
30,616,895 59,902 30,676,797
19,227,837 10,893,435 30,121,272
149,472,831 78,005,108 227,477,939
$168,700,668 $88,898,543 $257,599,211
See Notes to Financial Statements.
-19-
City of Waukee, Iowa
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2021
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
ASSETS
Cash and investments $ 7,766,266 $31,028,730 $3,409,737 $ 4,556,114 $7,044,621 $3,632,545 $57,438,013
Receivables
Property tax
Delinquent 21,862 – 9,518 2,725 – 5,734 39,839
Succeeding year 9,787,809 – 5,178,191 8,747,646 – 2,571,474 26,285,120
Special assessments – 1,065 – – – 137,799 138,864
Other 321,893 296,763 – – – 133 618,789
Due from other funds 287,804 – – – – – 287,804
Due from other governments 315,022 – – – 265,306 280,710 861,038
Inventory 129,481 – – – – 187,642 317,123
Total assets $18,630,137 $31,326,558 $8,597,446 $13,306,485 $7,309,927 $6,816,037 $85,986,590
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES
Accounts payable $ 586,460 $ 5,354,898 $ 3,050 $ – $ – $ 111,216 $ 6,055,624
Accrued compensation 426,855 – – – – 20,216 447,071
Total liabilities 1,013,315 5,354,898 3,050 – – 131,432 6,502,695
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax 9,787,809 – 5,178,191 8,747,646 – 2,571,474 26,285,120
Special assessments – 1,065 – – – 127,150 128,215
Other 500,383 296,763 – – – – 797,146
Total deferred inflows of
resources 10,288,192 297,828 5,178,191 8,747,646 – 2,698,624 27,210,481
FUND BALANCES
Nonspendable 417,285 – – – – 187,642 604,927
Restricted for
Capital projects – 25,673,832 – – – – 25,673,832
Debt service – – 3,416,205 – – 229,390 3,645,595
Urban renewal and development – – – 4,558,839 – – 4,558,839
Other purposes 481,153 – – – 7,309,927 3,568,949 11,360,029
Committed 777,374 – – – – – 777,374
Unassigned 5,652,818 – – – – – 5,652,818
Total fund balances 7,328,630 25,673,832 3,416,205 4,558,839 7,309,927 3,985,981 52,273,414
Total liabilities, deferred
inflows of resources
and fund balances $18,630,137 $31,326,558 $8,597,446 $13,306,485 $7,309,927 $6,816,037 $85,986,590
See Notes to Financial Statements.
-20-
City of Waukee
RECONCILIATION OF THE BALANCE SHEET—
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
June 30, 2021
Total governmental fund balances $ 52,273,414
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. 218,226,580
Other long term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds, as unavailable revenue 925,361
Long-term liabilities, including bonds payable, notes from direct borrowings and
direct placements, installment contracts, bond premiums and discounts,
other post employment benefits payable, net pension liability, compensated
absences and accrued interest payable, are not due and payable in the current
period and, therefore, are not reported as liabilities in the governmental funds. (104,547,390)
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 1,872,768
Deferred inflows of resources (205,293) 1,667,475
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. 155,228
Net position of governmental activities $168,700,668
See Notes to Financial Statements.
-21-
City of Waukee, Iowa
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year ended June 30, 2021
Other
Special Revenue Nonmajor
Capital Debt Urban Local Option Governmental
General Projects Service Renewal TIF Sales Tax Funds Total
REVENUES
Property tax $ 9,258,279 $ – $ 4,751,948 $ – $ – $2,432,565 $16,442,792
Tax increment financing – – – 6,715,401 – – 6,715,401
Other city tax 32,358 3,911 – – 3,588,423 29,941 3,654,633
Licenses and permits 2,084,978 62,113 – – – 5,042 2,152,133
Use of money and property 180,535 59,716 9,512 15,134 14,965 19,908 299,770
Intergovernmental 778,383 117,000 83,110 412,328 – 2,716,265 4,107,086
Charges for service 841,730 – – – – – 841,730
Miscellaneous 102,407 – – – – 2,000,011 2,102,418
Total revenues 13,278,670 242,740 4,844,570 7,142,863 3,603,388 7,203,732 36,315,963
EXPENDITURES
Operating
Public safety 7,661,959 – – – – – 7,661,959
Public works 706,615 – – – – 2,174,811 2,881,426
Health and social services 79,000 – – – – – 79,000
Culture and recreation 2,354,529 – – – – – 2,354,529
Community and economic
development 644,924 – – 199,954 – – 844,878
General government 1,379,753 – – – – – 1,379,753
Debt service
Principal – 175,941 9,485,000 – – – 9,660,941
Interest – – 2,563,297 – – – 2,563,297
Bond issuance and other costs – 293,109 12,412 – – – 305,521
Capital projects 4,212,963 28,634,242 – – – 203,000 33,050,205
Total expenditures 17,039,743 29,103,292 12,060,709 199,954 – 2,377,811 60,781,509
Excess (deficiency) of
revenues over (under)
expenditures (3,761,073) (28,860,552) (7,216,139) 6,942,909 3,603,388 4,825,921 (24,465,546)
OTHER FINANCING SOURCES
(USES)
Bond proceeds – 24,325,000 2,135,000 – – – 26,460,000
Bond premium – 2,565,005 323,310 – – – 2,888,315
Sale of capital assets 143,791 – – – – 41,770 185,561
Operating transfers in 2,475,000 2,000,000 6,380,944 – – – 10,855,944
Operating transfers out (11,445) – – (5,070,649) (1,019,945) (4,475,000) (10,577,039)
Total other financing
sources (uses) 2,607,346 28,890,005 8,839,254 (5,070,649) (1,019,945) (4,433,230) 29,812,781
CHANGE IN FUND BALANCES (1,153,727) 29,453 1,623,115 1,872,260 2,583,443 392,691 5,347,235
FUND BALANCES, beginning 8,482,357 25,644,379 1,793,090 2,686,579 4,726,484 3,593,290 46,926,179
FUND BALANCES, ending $ 7,328,630 $25,673,832 $ 3,416,205 $4,558,839 $7,309,927 $3,985,981 $52,273,414
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, 2021
Change in fund balances—Total governmental funds $ 5,347,235
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds reported capital outlays as expenditures while governmental
activities report depreciation expense to allocate those expenditures over the
life of the assets. Capital outlay expenditures exceeded depreciation expense
in the current year, as follows:
Capital outlays 41,330,654
Depreciation expense (7,617,945) 33,712,709
Governmental funds do not report capital assets and therefore do not report
gains or losses on the disposal of those assets. (19,727)
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 (38,471)
Grants (160,000)
Other 685,183 486,712
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 (27,339,704)
Repaid 9,660,941 (17,678,763)
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. (2,085,932)
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. 800,940
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 (51,389)
Other postemployment benefits (35,135)
Pension expense (1,182,798)
Interest on long-term debt (78,000) (1,347,322)
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. 11,985
Change in net position of governmental activities $19,227,837
See Notes to Financial Statements.
-23-
City of Waukee, Iowa
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2021
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
ASSETS
Current assets
Cash and investments $ 9,930,279 $10,855,313 $ 5,449,252 $ – $1,227,650 $ 27,462,494 $ 238,912
Receivables, net of allowances
Customer accounts 976,748 620,886 397,011 – 334,956 2,329,601 –
Due from other funds 100,000 – – – – 100,000 –
Due from other governments – – 93,128 – – 93,128 –
Inventories 140,415 – 320,110 8,826 – 469,351 –
Total current assets 11,147,442 11,476,199 6,259,501 8,826 1,562,606 30,454,574 238,912
Noncurrent assets
Restricted cash and investments 980,931 778,694 167,608 59,660 12,862 1,999,755 –
Capital assets, net of accumulated
depreciation 18,809,347 45,768,055 12,859,687 1,794,776 3,641,420 82,873,285 –
Total noncurrent assets 19,790,278 46,546,749 13,027,295 1,854,436 3,654,282 84,873,040 –
Total assets 30,937,720 58,022,948 19,286,796 1,863,262 5,216,888 115,327,614 238,912
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 79,564 61,956 85,285 25,009 76,601 328,415 –
OPEB related deferred outflows 2,069 1,675 2,239 434 1,325 7,742 –
Total deferred outflows of resources 81,633 63,631 87,524 25,443 77,926 336,157 –
LIABILITIES
Current liabilities
Accounts payable 797,234 439,789 295,928 31,163 394,751 1,958,865 –
Accrued compensation 20,097 16,445 21,642 12,591 18,434 89,209 –
Compensated absences 21,239 15,050 25,892 4,521 16,018 82,720 –
Due to other funds – – – 387,804 – 387,804 –
Customer deposits payable 196,684 – 127,850 – – 324,534 –
Revenue notes payable 330,000 240,000 – – – 570,000 –
Direct borrowings and placements – 564,308 – 22,348 65,000 651,656 –
Interest payable 16,516 36,708 – – 504 53,728 –
Total current liabilities 1,381,770 1,312,300 471,312 458,427 494,707 4,118,516 –
Noncurrent liabilities
Revenue notes payable, net 5,580,547 5,556,877 – – – 11,137,424 –
Direct borrowings and placements – 10,288,703 – 70,111 270,000 10,628,814 –
Total OPEB liability 33,644 27,217 36,386 7,049 21,528 125,824 –
Net pension liability 191,857 149,397 205,652 60,306 184,714 791,926 –
Total noncurrent liabilities 5,806,048 16,022,194 242,038 137,466 476,242 22,683,988 –
Total liabilities 7,187,818 17,334,494 713,350 595,893 970,949 26,802,504 –
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows 6,126 4,770 6,566 1,925 5,898 25,285 –
OPEB related deferred inflows 5,649 4,569 6,108 1,183 3,614 21,123 –
Total deferred inflows of resources 11,775 9,339 12,674 3,108 9,512 46,408 –
NET POSITION
Net investment in capital assets 15,056,651 32,440,873 12,859,687 1,702,317 3,518,752 65,578,280 –
Restricted for bond retirement 437,731 501,986 39,758 59,660 12,358 1,051,493 –
Unrestricted 8,325,378 7,799,887 5,748,851 (472,273) 783,243 22,185,086 238,912
Total net position $23,819,760 $40,742,746 $18,648,296 $1,289,704 $4,314,353 88,814,859 $ 238,912
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 $ 88,898,543
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, 2021
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
OPERATING REVENUES
Charges for service $ 7,823,371 $ 8,068,235 $10,758,155 $ 747,540 $3,256,956 $30,654,257 $ –
Miscellaneous 10,009 18,886 42,325 99,717 – 170,937 –
Total operating revenues 7,833,380 8,087,121 10,800,480 847,257 3,256,956 30,825,194 –
OPERATING EXPENSES
Business type activities
Cost of sales and services 4,043,764 1,908,810 8,626,281 490,632 2,527,433 17,596,920 –
Depreciation and amortization 724,239 1,304,173 452,432 65,686 115,537 2,662,067 –
Total operating expenses 4,768,003 3,212,983 9,078,713 556,318 2,642,970 20,258,987 –
Operating income 3,065,377 4,874,138 1,721,767 290,939 613,986 10,566,207 –
NONOPERATING REVENUES
(EXPENSES)
Interest income 31,845 36,787 11,857 – 2,017 82,506 540
Rental income 74,960 – – – – 74,960 –
Gain (loss) on disposal of capital assets 11,738 3,762 27,834 – (21,485) 21,849 –
Grant revenue – – – – 910,400 910,400 –
Interest expense and fiscal charges (146,478) (304,451) – (15,269) (5,939) (472,137) –
Total nonoperating revenues
(expenses) (27,935) (263,902) 39,691 (15,269) 884,993 617,578 –
Income before transfers 3,037,442 4,610,236 1,761,458 275,670 1,498,979 11,183,785 540
Transfers in – – – 323,392 – 323,392 11,445
Transfers (out) (232,468) (96,130) (111,213) – (173,931) (613,742) –
CHANGE IN NET POSITION 2,804,974 4,514,106 1,650,245 599,062 1,325,048 10,893,435 11,985
NET POSITION, beginning 21,014,786 36,228,640 16,998,051 690,642 2,989,305 77,921,424 226,927
NET POSITION, ending $23,819,760 $40,742,746 $18,648,296 $1,289,704 $4,314,353 $88,814,859 $ 238,912
See Notes to Financial Statements.
-25-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year ended June 30, 2021
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 $ 7,503,272 $ 7,946,897 $10,525,284 $ 747,540 $3,201,000 $29,923,993 $ –
Cash received from other revenues 10,009 18,886 42,325 99,717 – 170,937 –
Cash paid for personal services (959,027) (774,306) (1,032,047) (203,134) (614,090) (3,582,604) –
Cash paid to suppliers (2,883,974) (1,169,159) (7,533,911) (290,270) (1,787,349) (13,664,663) –
Net cash flows from operating activities 3,670,280 6,022,318 2,001,651 353,853 799,561 12,847,663 –
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payments made on interfund accounts – – – (357,593) – (357,593) –
Transfers to other funds (232,468) (96,130) (111,213) – (173,931) (613,742) –
Transfers from other funds – – – 323,392 – 323,392 11,445
Net cash flows from noncapital
financing activities (232,468) (96,130) (111,213) (34,201) (173,931) (647,943) 11,445
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (671,783) (5,234,595) (1,371,818) – (2,077,443) (9,355,639) –
Proceeds from sale of capital assets 42,349 41,450 44,264 – 19,800 147,863 –
Proceeds from capital grants – – – – 910,400 910,400 –
Principal paid on revenue notes (315,000) (695,000) – – – (1,010,000) –
Principal paid on direct borrowings
and placements – (668,209) – (344,930) (65,000) (1,078,139) –
Interest and fiscal charges paid (212,337) (341,483) – (16,209) (6,020) (576,049) –
Net cash flows from capital and
related financing activities (1,156,771) (6,897,837) (1,327,554) (361,139) (1,218,263) (10,961,564) –
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 31,845 36,787 11,857 – 2,017 82,506 540
Proceed from sale of investments – 121,247 – – – 121,247 –
Purchase of investments (7,750) – – – (972) (8,722) –
Cash received from property rental 74,960 – – – – 74,960 –
Net cash flows from investing activities 99,055 158,034 11,857 – 1,045 269,991 540
NET CHANGE IN CASH AND CASH
EQUIVALENTS 2,380,096 (813,615) 574,741 (41,487) (591,588) 1,508,147 11,985
CASH AND CASH EQUIVALENTS, beginning 7,807,665 12,367,622 5,042,119 43,805 1,831,128 27,092,339 226,927
CASH AND CASH EQUIVALENTS, ending $10,187,761 $11,554,007 $ 5,616,860 $ 2,318 $1,239,540 $28,600,486 $ 238,912
See Notes to Financial Statements.
-26-
City of Waukee, Iowa
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
Year ended June 30, 2021
Internal
Enterprise Funds Service Fund
Nonmajor Equipment
Water Sewer Gas Golf Funds Total Revolving
RECONCILIATION OF OPERATING
INCOME TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income $ 3,065,377 $ 4,874,138 $ 1,721,767 $ 290,939 $ 613,986 $10,566,207 $ –
Adjustments to reconcile operating income
to net cash flows from operating activities
Depreciation expense 724,239 1,304,173 452,432 65,686 115,537 2,662,067 –
Change in assets, deferred outflows,
liabilities and deferred inflows
Customer accounts receivable (320,099) (121,338) (139,743) – (55,956) (637,136) –
Due from other governments – – (93,128) – – (93,128) –
Inventories (44,747) – (116,136) 8,193 – (152,690) –
Accounts payable, net of capital assets 177,918 (35,145) 130,390 (11,476) 137,238 398,925 –
Accrued compensation 1,041 1,305 2,169 (2,170) 2,488 4,833 –
Customer deposits 42,865 – 26,900 – – 69,765 –
Compensated absences 184 1,218 4,328 231 (2,114) 3,847 –
Net pension liability 63,746 21,973 50,050 14,866 16,577 167,212 –
Deferred outflows of resources (16,730) 457 (9,089) (2,707) 5,672 (22,397) –
Deferred inflows of resources (26,541) (27,495) (32,786) (9,707) (36,452) (132,981) –
Total OPEB liability 3,027 3,032 4,497 (2) 2,585 13,139 –
Net cash flows from operating activities $ 3,670,280 $ 6,022,318 $ 2,001,651 $ 353,853 $ 799,561 $12,847,663 $ –
RECONCILIATION OF CASH AND CASH
EQUIVALENTS AT YEAR END TO SPECIFIC
ASSETS INCLUDED ON THE STATEMENT
OF NET POSITION
Cash and investments $ 9,930,279 $10,855,313 $ 5,449,252 $ – $1,227,650 $27,462,494 $ 238,912
Restricted cash and investments 980,931 778,694 167,608 59,660 12,862 1,999,755 –
10,911,210 11,634,007 5,616,860 59,660 1,240,512 29,462,249 238,912
Less items not meeting the definition of
cash equivalent
Certificates of deposit (723,449) (80,000) – (57,342) (972) (861,763) –
Cash and cash equivalents at year end $10,187,761 $11,554,007 $ 5,616,860 $ 2,318 $1,239,540 $28,600,486 $ 238,912
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, health and social
services, culture and recreation, community and economic development and general government services. It also
operates the water, sewer, gas, storm water and solid waste utilities and the public golf course.
The financial statements of the City of Waukee, Iowa, have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles. The more significant of the government's accounting policies are described below:
Reporting Entity
For financial reporting purposes, the City of Waukee has included all funds, organizations, agencies, boards, commissions
and authorities. The City has also considered all potential component units for which it is financially accountable, and
other organizations for which the nature and significance of their relationship with the City are such that exclusion would
cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board
has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting
majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the
potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. The City has
no component units which meet the Government Accounting Standards Board criteria.
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the citizenry of the City
but do not meet the criteria of a joint venture since there is no ongoing financial interest or responsibility by the participating
governments. City officials are members of the following boards and commissions: Bravo Greater Des Moines, Inc., Des
Moines Area Metropolitan Planning Board, Central Iowa Regional Drinking Water Commission, Dallas County Housing
Trust Fund Board, Dallas County Emergency Management Commission, Metro Advisory Council, Westcom, Wastewater
Reclamation Authority and Waukee Economic Development Corporation.
Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and the Statement of Activities report information on all of the nonfiduciary activities of
the primary government. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which are supported by property tax and intergovernmental revenues, are reported separately
from business type activities, which rely to a significant extent on fees and charges for service.
The Statement of Net Position presents the City's nonfiduciary assets, deferred outflows of resources, liabilities and
deferred inflows of resources, with the difference reported as net position. Net position is reported in three categories:
Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by
outstanding balances for bonds, notes and other debt attributable to the acquisition, construction or improvement of
those assets. The related debt excludes unspent debt proceeds of $26,459,286.
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, 2021 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, 2019 assessed property
valuations; is for the tax accrual period July 1, 2020 through June 30, 2021 and reflects the tax asking contained in the
budget certified to the County Board of Supervisors in March 2020.
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, 2021, 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 and OPEB expense and contributions from the City after the measurement
date but before the end of the City’s reporting period.
Compensated Absences
City employees accumulate a limited amount of earned but unused vacation for subsequent use. A liability is recorded
when incurred in the government-wide and proprietary fund financial statements. For governmental fund types, the
amount of earned but unused vacation is recorded as a liability of the respective fund only if they have matured, for
example, as a result of employee retirement. The compensated absences liability has been computed based on rates of
pay in effect at June 30, 2021. 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 in the fund financial statements consist of property tax
receivable and other receivables not collected within sixty days after year end and succeeding year property tax and tax
increment financing receivables that will not be recognized until the year for which they are levied.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax and tax increment
financing receivable that will not be recognized as revenue until the year for which they are levied and the unamortized
portion of the net difference between projected and actual OPEB earnings on IPERS’ investments.
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB and OPEB expense, information has been determined based on the City’s actuary report. For this
purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. The total OPEB
liability attributable to the governmental activities will be paid primarily by the General Fund.
Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable – Amounts which cannot be spent either because they are in a nonspendable form or because they
are legally or contractually required to be maintained intact.
Restricted – Amounts restricted to specific purposes when constraints placed on the use of the resources are either
externally imposed by creditors, grantors or state or federal laws or imposed by law through constitutional provisions
or enabling legislation.
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, 2021, the City’s disbursements exceeded the amount budgeted in the health and social services and
capital projects functions.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred
outflows of resources, liabilities, and deferred inflows of resources at the date of the basic financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from
those estimates.
NOTE 2 CASH AND POOLED CASH INVESTMENTS
The City's deposits in banks at June 30, 2021 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 CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2021 was as follows:
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Governmental activities
Capital assets not being depreciated
Land $ 19,709,286 $ 5,687,020 $ – $ – $ 25,396,306
Construction in progress 23,886,446 28,352,777 – (17,829,200) 34,410,023
Total capital assets not being depreciated 43,595,732 34,039,797 – (17,829,200) 59,806,329
Capital assets being depreciated
Buildings 9,271,425 22,690 – 804,498 10,098,613
Improvements other than buildings 199,893,221 7,661,562 – 17,024,702 224,579,485
Equipment 8,769,939 774,909 157,421 – 9,387,427
Total capital assets being depreciated 217,934,585 8,459,161 157,421 17,829,200 244,065,525
Less accumulated depreciation for
Buildings 3,930,979 360,077 – – 4,291,056
Improvements other than buildings 68,693,277 6,575,192 – – 75,268,469
Equipment 5,540,767 682,676 137,694 – 6,085,749
Total accumulated depreciation 78,165,023 7,617,945 137,694 – 85,645,274
Total capital assets being depreciated, net 139,769,562 841,216 19,727 17,829,200 158,420,251
Governmental activities capital assets, net $183,365,294 $34,881,013 $ 19,727 $ – $218,226,580
Balance Balance
beginning end
of year Increases Decreases Transfers of year
Business type activities
Capital assets not being depreciated
Land $ 1,226,032 $ – $ – $1,030,779 $ 2,256,811
Construction in progress 2,804,923 3,970,369 137,733 (2,141,652) 4,495,907
Total capital assets not being depreciated 4,030,955 3,970,369 137,733 (1,110,873) 6,752,718
Capital assets being depreciated
Buildings 557,486 – – – 557,486
Equipment 4,818,002 800,516 308,052 – 5,310,466
Infrastructure 91,207,631 4,991,357 – 1,110,873 97,309,861
Total capital assets being depreciated 96,583,119 5,791,873 308,052 1,110,873 103,177,813
Less accumulated depreciation for
Buildings 263,415 13,192 – – 276,607
Equipment 3,090,035 351,200 182,038 – 3,259,197
Infrastructure 21,223,767 2,297,675 – – 23,521,442
Total accumulated depreciation 24,577,217 2,662,067 182,038 – 27,057,246
Total capital assets being depreciated, net 72,005,902 3,129,806 126,014 1,110,873 76,120,567
Business type activities capital assets, net $ 76,036,857 $7,100,175 $ 263,747 $ – $ 82,873,285
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-35-
NOTE 3 CAPITAL ASSETS (continued)
Depreciation expense was charged to functions of the primary government as follows:
Governmental activities
Public safety $ 366,546
Public works 6,143,620
Culture and recreation 845,057
Community and economic development 804
General government 261,918
Total depreciation expense--governmental activities $7,617,945
Business type activities
Water $ 724,239
Sewer 1,304,173
Gas 452,432
Golf 65,686
Nonmajor 115,537
Total depreciation expense--business type activities $2,662,067
NOTE 4 LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:
Balance Balance
beginning end Due within
of year Increases Decreases of year one year
Governmental activities
General obligation bonds/notes $65,069,050 $29,348,315 $ 9,812,383 $ 84,604,982 (1) $10,675,000
Urban Renewal Revenue bonds 175,000 – 175,000 – –
Notes from direct borrowings and
direct placements 12,800,000 – 300,000 12,500,000 325,000
Installment contract – 879,704 175,941 703,763 175,941
Compensated absences 405,026 51,389 – 456,415 60,119
Total OPEB liability 335,939 38,643 – 374,582 –
Net pension liability 3,113,285 1,347,059 – 4,460,344 –
Totals $81,898,300 $31,665,110 $10,463,324 $103,100,086 $11,236,060
Business type activities
Revenue bonds/notes $12,816,779 $ – $ 1,109,355 $ 11,707,424 (2) $ 570,000
Notes from direct borrowings and
direct placements 12,358,609 – 1,078,139 11,280,470 629,308
Compensated absences 78,873 3,847 – 82,720 82,720
Total OPEB liability 112,685 13,139 – 125,824 –
Net pension liability 624,714 167,212 – 791,926 –
Totals $25,991,660 $ 184,198 $ 2,187,494 $ 23,988,364 $ 1,282,028
(1) Included in balance are unamortized bond premiums totaling $4,194,982 at June 30, 2021.
(2) Included in balance are unamortized bond premiums totaling $297,424 at June 30, 2021.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-36-
NOTE 4 LONG-TERM LIABILITIES (continued)
Governmental Activities
Nine issues of unmatured general obligation bonds/notes, totaling $80,410,000, are outstanding at June 30, 2021.
General obligation bonds/notes bear interest at rates ranging from 1.3% to 5.0% and mature in varying annual amounts,
ranging from $100,000 to $7,000,000, with the final maturities due in the year ending June 30, 2040.
The City has one issuance of a note from direct borrowing and direct placements with an outstanding balance totaling
$12,500,000 at June 30, 2021. The note bears an interest rate of 2.15% and matures in varying annual amounts, ranging
from $325,000 to $1,190,000 with the final maturities due in the year ending June 30, 2035.
The City has entered into an installment contract with a neighboring City related to the Ashworth reconstruction project.
The agreement is noninterest bearing and requires annual installments of approximately $176,000 through June 2025.
The balance due as of June 30, 2021 was $703,763.
Details of general obligation and revenue bonds/notes payable at June 30, 2021 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Governmental activities Date of issue rates due date payments issue 2021
General Obligation Bonds
and Notes
General Obligation 2010A June 2, 2010 3.50 June 1, 2022 $140,000 $ 1,435,000 $ 140,000
General Obligation 2014A December 10, 2014 2.00-3.50 June 1, 2034 $510,000 - 1,335,000 23,295,000 15,800,000
General Obligation 2015C November 19, 2015 2.50-4.00 June 1, 2030 380,000 - 485,000 7,340,000 3,875,000
General Obligation
Refunding 2016B September 20, 2016 1.30 June 1, 2022 200,000 1,720,000 200,000
General Obligation 2017A May 24, 2017 3.00-4.00 June 1, 2036 100,000 - 1,900,000 13,940,000 12,625,000
General Obligation 2018A June 19, 2018 3.00-5.00 June 1, 2038 835,000 - 1,310,000 19,775,000 17,515,000
General Obligation 2019A August 21, 2019 3.00-5.00 June 1, 2031 325,000 - 440,000 4,655,000 3,795,000
General Obligation 2020B November 19, 2020 2.125-5.00 June 1, 2036 250,000 - 880,000 9,155,000 9,155,000
General Obligation 2021A April 6, 2021 2.00-5.00 June 1, 2040 170,000 - 7,000,000 17,305,000 17,305,000
Direct Borrowings and
Placements
General Obligation 2020A May 7, 2020 2.15 June 1, 2035 325,000 - 1,190,000 12,800,000 12,500,000
Installment Contract
City of West Des Moines July 1, 2021 0.00 July 1, 2024 175,941 879,704 703,763
A summary of the bond/note principal and interest maturities by type of bond/note is as follows:
Year ending General Obligation Direct Borrowings and Placements
June 30 Principal Interest Total Principal Interest Total
2022 $10,675,000 $ 2,965,004 $ 13,640,004 $ 325,000 $ 268,750 $ 593,750
2023 4,190,000 2,380,190 6,570,190 420,000 261,762 681,762
2024 4,500,000 2,215,690 6,715,690 510,000 252,732 762,732
2025 4,645,000 2,036,866 6,681,866 660,000 241,768 901,768
2026 4,865,000 1,853,590 6,718,590 745,000 227,578 972,578
2027-2031 26,985,000 6,294,814 33,279,814 5,230,000 837,748 6,067,748
2032-2036 21,830,000 2,254,301 24,084,301 4,610,000 250,475 4,860,475
2037-2040 2,720,000 142,175 2,862,175 – – –
Subtotal 80,410,000 20,142,630 100,552,630 12,500,000 2,340,813 14,840,813
Plus unamortized premium 4,194,982 – 4,194,982 – – –
Totals $84,604,982 $20,142,630 $104,747,612 $12,500,000 $2,340,813 $14,840,813
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-37-
NOTE 4 LONG-TERM LIABILITIES (continued)
Governmental Activities (continued)
Year ending Installment Contract
June 30 Principal Interest Total
2022 $ 175,941 $ – $ 175,941
2023 175,941 – 175,941
2024 175,941 – 175,941
2025 175,940 – 175,940
Totals $ 703,763 $ – $ 703,763
Business Type Activities
Five issues of unmatured revenue notes, totaling $11,410,000, are outstanding at June 30, 2021. These notes bear
interest at rates ranging from 3.00% to 5.00% and mature in varying annual amounts, ranging from $100,000 to $265,000,
with the final maturities due in the year ending June 30, 2038.
Four issues of unmatured direct borrowing and direct placement notes, totaling $11,280,470, are outstanding at June 30,
2021. These notes bear interest at rates ranging from 1.6% to 2.25% and mature in varying annual amounts, ranging
from $22,348 to $603,800 with the final maturities due in the year ending June 30, 2038.
The resolutions providing for the issuance of the revenue notes and direct borrowing and direct placement notes include
the following provisions:
(1) The notes/bonds will only be redeemed from the future earnings of the 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, 2021, the City was in compliance with the bond provisions.
The City has pledged future customer revenues, net of specified operating expenses, to repay the $31,157,339 in revenue
notes issued from 2015 to 2021. 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 $28,285,443. For the current year, principal
and interest paid and total customer net revenues were $2,775,979 and $8,823,815, respectively.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-38-
NOTE 4 LONG-TERM LIABILITIES (continued)
Business-Type Activities (continued)
Details of revenue notes and bonds payable at June 30, 2021 are as follows:
Amount of Outstanding
Interest Final Annual original June 30,
Business Type activities Date of issue rates due date payments issue 2021
Revenue Notes and Bonds
Water
Series 2015B July 21, 2015 3.00 June 1, 2027 $120,000 - 140,000 $1,450,000 $ 775,000
Series 2018B June 19, 2018 3.00 - 4.00 June 1, 2038 100,000 - 265,000 3,410,000 3,110,000
Series 2019B August 21, 2019 3.00 - 5.00 June 1, 2034 110,000 - 180,000 2,040,000 1,840,000
Sewer
Series 2016C December 20, 2016 3.00 - 3.125 June 1, 2036 100,000 - 205,000 2,685,000 2,375,000
Series 2018C June 19, 2018 3.00 – 5.00 June 1, 2038 140,000 - 250,000 3,565,000 3,310,000
Direct Borrowings and
Direct Placements
Sewer
Series 2017 September 1, 2017 2.20 June 1, 2038 426,308 - 603,800 9,942,975 8,667,166
Series 2018A July 6, 2018 2.00 June 1, 2038 138,000 - 174,000 2,948,000 2,185,845
Golf Course
Series 2019C November 19, 2019 2.25 June 1, 2025 22,348 - 23,868 125,000 92,459
Stormwater
Series 2016A June 1, 2016 1.60 - 2.00 June 1, 2026 65,000 - 70,000 640,000 335,000
Year ending Revenue Notes/Bonds Direct Borrowings and Placements
June 30 Principal Interest Total Principal Interest Total
2022 $ 570,000 $ 390,984 $ 960,984 $ 629,308 $ 240,215 $ 869,523
2023 585,000 367,884 952,884 662,507 229,567 892,074
2024 600,000 344,134 944,134 675,347 215,562 890,909
2025 660,000 319,634 979,634 694,354 201,215 895,569
2026 685,000 293,134 978,134 707,494 186,455 893,949
2027-2031 3,545,000 1,108,018 4,653,018 3,269,879 718,936 3,988,815
2032-2036 3,745,000 534,538 4,279,538 3,446,955 351,328 3,798,283
2037-2038 1,020,000 53,725 1,073,725 1,194,626 39,644 1,234,270
Subtotal 11,410,000 3,412,051 14,822,051 11,280,470 2,182,922 13,463,392
Plus unamortized premium 297,424 – 297,424 – – –
Totals $11,707,424 $3,412,051 $15,119,475 $11,280,470 $2,182,922 $13,463,392
As of June 30, 2021, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows:
Actual valuation $2,376,696,557
Debt limit - 5% of total actual valuation $118,834,828
Debt applicable to debt limit
General obligation bonded debt outstanding $80,410,000
Notes from direct borrowings and placements 12,500,000
Tax increment financing debt outstanding 953,698
Total debt subject to debt limit $93,863,698
Percentage of debt limit 78.99%
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-39-
NOTE 5 PENSION PLAN
Plan Description
IPERS is a cost-sharing multiple employer defined benefit pension plan administered by Iowa Public Employees’
Retirement System. Membership is mandatory for employees of the City, except for those covered by another retirement
system. IPERS issues a stand-alone financial report which is available to the public by mail at P.O. Box 9117, Des
Moines, Iowa 50306-9117 or at www.ipers.org.
IPERS benefits are established under Iowa Code Chapter 97B and the administrative rules thereunder. Chapter 97B and
the administrative rules are the official plan documents. The following brief description is provided for general
informational purposes only. Refer to the plan documents for more information.
Pension Benefits
A regular member may retire at normal retirement age and receive monthly benefits without an early-retirement reduction.
Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when
the member’s years of service plus the member’s age at the last birthday equals or exceeds 88, whichever comes first.
These qualifications must be met on the member’s first month of entitlement to benefits. Members cannot begin receiving
retirement benefits before age 55. The formula used to calculate a regular member’s monthly IPERS benefit includes:
• A multiplier based on years of service.
• The member’s highest five-year average salary. For members with service before June 30, 2012, the highest
three-year average salary as of that date will be used if it is greater than the highest five-year average salary.
Protection occupation members may retire at normal retirement age which is generally at age 55 and may retire any time
after reaching age 50 with 22 or more years of covered employment. The formula used to calculate a protection
occupation members’ monthly IPERS benefit includes:
• 60% of average salary after completion of 22 years of service, plus an additional 1.5% of average salary for years
of service greater than 22 but not more than 30 years of service.
• The member’s highest three-year average salary.
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
-40-
NOTE 5 PENSION PLAN (continued)
Contributions
Contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS’ Contribution
Rate Funding Policy and Actuarial Amortization Method. State statute limits the amount rates can increase or decrease
each year to 1 percentage point. IPERS Contribution Rate Funding Policy 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 2021, 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 6.41% of
covered payroll, and the City contributed 9.61% of covered payroll, for a total rate of 16.02%.
The City’s total contributions to IPERS for the year ended June 30, 2021 were $939,887.
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2021, the City reported a liability of $5,252,270 for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2020, 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
2020 2019 Change
City’s proportionate share 0.074768% 0.064552% 0.010216%
For the year ended June 30, 2021, the City recognized pension expense of $1,334,737. At June 30, 2021, 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 $ 46,882 $ 122,491
Change in assumptions 381,777 6,186
Net difference between projected and actual earnings on IPERS’ investments 492,219 –
Change in proportion and difference between City contributions and
proportionate share of contributions 317,370 39,018
City contributions subsequent to the measurement date 939,887 –
Totals $2,178,135 $ 167,695
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-41-
NOTE 5 PENSION PLAN (continued)
$939,887 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
2022 $ 237,251
2023 275,779
2024 226,661
2025 316,532
2026 14,330
Totals $1,070,553
There were no non-employer contributing entities at IPERS.
Actuarial Assumptions
The total pension liability in the June 30, 2020 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, 2020 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 2020 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
-42-
NOTE 5 PENSION PLAN (continued)
The long-term expected rate of return on IPERS’ investments was determined using a building-block method in which
best-estimate ranges of expected future real rates (expected returns, net of investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Long-Term Expected
Asset Class Asset Allocation Rate of Return
Domestic Equity 22.0% 4.43%
International Equity 17.5 5.15
Global Smart Beta Equity 6.0 4.87
Core Plus Fixed Income 28.0 (0.29)
Public Credit 4.0 2.29
Cash 1.0 (0.78)
Private Equity 11.0 6.54
Private Real Assets 7.5 4.48
Private Credit 3.0 3.11
Total 100.0%
Discount Rate
The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine
the discount rate assumed that employee contributions will be made at the contractually required rate and contributions
from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, IPERS’
fiduciary net position was projected to be available to make all projected future benefit payments to current active and
inactive employees. Therefore, the long-term expected rate of return on IPERS’ investments was applied to all periods
of projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0%,
as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1% lower (6.0%) or 1% higher (8.0%) than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.0%) (7.0%) (8.0%)
City’s proportionate share of the net pension liability $10,678,403 $5,252,270 $ 705,033
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, 2021, the City reported payables to IPERS of $41,365 for legally required City contributions and $23,783 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
-43-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City administers a single-employer benefit plan which provides medical and prescription drug benefits to retired
employees and their dependents under certain conditions. Group insurance benefits are established under Iowa Code
Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
OPEB Benefits
Individuals who are employed by the City and are eligible to participate in the group health plan are eligible to continue
healthcare benefits upon retirement. Retirees under age 65 pay the same premium for the medical and prescription drug
benefits as active employees, which results in an implicit rate subsidy and an OPEB liability.
Retired participants must be age 55 or older with 4 years of service at retirement. Employees covered by the plan make
contributions toward the plan premiums. At June 30, 2021, the following employees were covered by the benefit terms.
Inactive employees or beneficiaries currently receiving benefit payments –
Active employees 110
Total 110
Total OPEB Liability
The City’s total OPEB liability of $500,406 was measured as of June 30, 2021, and was determined by an actuarial
valuation as of July 1, 2019.
Actuarial Assumptions
The OPEB liability as of June 30, 2021 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
-44-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Changes in Total OPEB Liability
OPEB
Liability
Total OPEB liability, July 1, 2020 $ 448,624
Changes for the year
Service cost 43,554
Interest cost 17,071
Benefit payments (8,843)
Net changes 51,782
Total OPEB liability, June 30, 2021 $ 500,406
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 $ 552,491 $ 500,406 $ 452,721
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 $ 430,524 $ 500,406 $ 584,952
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $55,958. At June 30, 2021, 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 $ (40,968) $ 28,886
Changes in assumptions or other inputs (43,038) 1,904
Totals $ (84,006) $ 30,790
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-45-
NOTE 6 OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
The amount reported as deferred inflows of resources and deferred outflows of resources related to OPEB will be
recognized net of OPEB expense as follows:
Year ending June 30
2022 $ (4,667)
2023 (4,667)
2024 (4,667)
2025 (4,667)
2026 (4,667)
Thereafter (29,881)
$ (53,216)
NOTE 7 INTERFUND TRANSFERS
The detail of interfund transfers for the year ended June 30, 2021 is as follows:
Transfer to Transfer from Amount
General Nonmajor governmental funds $ 2,475,000
Debt Service Governmental funds
Urban renewal TIF 5,070,649
Local option sales tax 696,553
Enterprise funds
Water 232,468
Sewer 96,130
Gas 111,213
Nonmajor enterprise funds 173,931
6,380,944
Golf Local option sales tax 323,392
Capital projects Nonmajor governmental funds 2,000,000
Equipment Revolving General 11,445
Total $11,190,781
Transfers generally move resources from the fund statutorily required to collect the resources to the fund statutorily
required to expend the resources.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
-46-
NOTE 8 DUE FROM AND DUE TO OTHER FUNDS
The detail of interfund receivables and payables at June 30, 2021 is as follows:
Payable Fund Receivable Fund Amount
Enterprise-Golf Course General $ 287,804
Enterprise-Water 100,000
Total $ 387,804
Amounts due from Golf Course result from interfund loans to finance the Golf Course’s operations. Repayments will be
made from future revenues over the next several years.
NOTE 9 RISK MANAGEMENT
The City of Waukee is a member in the Iowa Communities Assurance Pool, as allowed by Chapter 670.7 of the Code of
Iowa. The Iowa Communities Assurance Pool (Pool) is a local government risk-sharing pool whose 785 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, 2021 were $217,318.
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.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 9 RISK MANAGEMENT (continued)
The City does not report a liability for losses in excess of reinsurance or excess risk-sharing recoveries unless it is deemed
probable that such losses have occurred and the amount of such loss can be reasonably estimated. Accordingly, at June
30, 2021, no liability has been recorded in the City's financial statements. As of June 30, 2021, settled claims have not
exceeded the risk pool or reinsurance coverage since the Pool's inception.
Members agree to continue membership in the Pool for a period of not less than one full year. After such period, a
member who has given 60 days' prior written notice may withdraw from the Pool. Upon withdrawal, payments for all
casualty claims and claims expenses become the sole responsibility of the withdrawing member, regardless of whether a
claim was incurred or reported prior to the member's withdrawal. Upon withdrawal, a formula set forth in the Pool’s
intergovernmental contract with its members is applied to determine the amount (if any) to be refunded to the withdrawing
member.
The City also carries commercial insurance purchased from other insurers for coverage associated with workers
compensation. The City assumes liability for any deductibles, and claims in excess of coverage limitations. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
NOTE 10 EMPLOYEE HEALTH INSURANCE PLAN
The Iowa Governmental Health Care Plan was established to account for the partial self-funding of the City’s health
insurance benefit plan. The plan is funded by both employee and City contributions and is administered through a service
agreement with Iowa Governmental Health Care Plan. The agreement is subject to automatic renewal provisions. The
City assumes liability for claims up to the deductible of $5,000/$10,000 per single/family plan with a maximum out of
pocket expense of $7,350/$14,700 per single/family plan. The deductible and maximum out of pocket expense for the
City is reduced by the deductible amount paid by the employee of $200/$400 per single/family plan and employee
maximum out of pocket expense of $500/$1,000 per single/family plan. Claims in excess of deductibles are covered by
Iowa Governmental Health Care Plan.
Monthly payments of service fees and plan contributions to the Iowa Governmental Health Care Plan Fund are recorded
as expenditures from the operating funds. Under the administrative services agreement, monthly payments of service
fees and claims processed are paid to Employee Benefit Systems, who administers the plan. The City records the Plan
assets and related liabilities of the health plan in the General Fund. The City’s contribution to the plan for the year ended
June 30, 2021 was $315,610.
Amounts payable from the Iowa Governmental Health Care Plan at June 30, 2021 total $37,693, 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, 2021 is as follows:
Unpaid claims as of beginning of year $ 25,240
Incurred claims (including claims incurred but
not reported as of June 30) 261,994
Payments on claims (249,541)
Unpaid claims as of year end $ 37,693
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 11 COMMITMENTS
The City entered into contract commitments with contractors for the completion of several infrastructure construction
projects. The total contract commitments are approximately $55,000,000 of which approximately $31,000,000 has been
incurred as of June 30, 2021. The unpaid commitment balance is approximately $24,000,000 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, 2021. As a result, final repayment amounts and terms have not yet been formalized.
However, the cities and IDOT have agreed that payments will be made in ten annual equal principal-only installments. It
is currently estimated that each city’s share of the total project cost will be approximately $9 million. No liability for this
obligation has been recognized.
NOTE 12 URBAN RENEWAL DEVELOPMENT AGREEMENTS
The City has entered into development agreements for urban renewal projects. The agreements require the City to rebate
portions of the incremental property tax paid by the developer in exchange for development of commercial projects by the
developer. The total to be paid by the City under the agreements is not to exceed $46,332,983. During the year ended
June 30, 2021, the City rebated $134,690 of incremental property tax to developers. The outstanding balance of the
agreements at June 30, 2021 was $45,263,070.
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 2021, the developer
contributed $2,000,000 under this agreement.
NOTE 13 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 14 TAX ABATEMENTS
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that
results from an agreement between one or more governments and an individual or entity in which (a) one or more
governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises
to take a specific action after the agreement has been entered into that contributes to economic development or otherwise
benefits the governments or the citizens of those governments.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 14 TAX ABATEMENTS (continued)
City Tax Rebates
The City provides tax rebates for urban renewal and economic development projects with tax increment financing as
provided for in Chapter 15A and 403 of the Code of Iowa. For these types of projects, the 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, 2021, $68,526 of property tax was diverted from the City under the urban renewal and
economic development projects.
NOTE 15 JOINT VENTURE
The City is a participating community in the Des Moines Metropolitan Wastewater Reclamation Authority joint venture.
This joint venture provides primary and secondary treatment of the sewer flows for the participating communities. The
Amended and Restated Agreement for the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) was
effective on July 1, 2004, with the second amended and restated agreement becoming effective June 11, 2014. This
agreement amended and restated the previous Integrated Community Area (I.C.A.) Agreement to provide continued
operation, improvements and expansion. The WRA Agreement establishes the WRA as a separate legal entity with its
own Board. The WRA Agreement creates an independent governance structure, establishes an independent bonding
authority for the WRA and provides a framework for additional communities to participate. The City of Waukee joined the
WRA effective July 1, 2007.
Annually, the WRA establishes an allocation to all participating communities based on operations, maintenance, debt
service and reserve requirements. Allocations are based on wastewater reclamation facility flows and are adjusted
prospectively for differences in budgeted flows and actual flows.
The City retains an ongoing financial responsibility to the WRA since it is obligated in some manner for the debts of the
joint venture through the annual allocation. Although the debt of the WRA is to be paid solely and only from WRA
revenues, the participating communities in the joint venture cannot withdraw from the joint venture while any of the bonds
issued during the time the entity was a participating community are still outstanding. The WRA Sewer Revenue Bonds
Series 2015E and 2021 include provisions that place the WRA debt service requirements on the same parity as other
debts of the participating communities.
In May of 2015, the WRA issued Sewer Revenue Bonds Series 2015E for the purpose of refunding Series 2006A. During
fiscal year 2021, the WRA issued Sewer Revenue Bonds Series 2021 for the purpose of refunding Series 2013B. The
WRA Agreement requires the debt service of these bonds to be allocated to the participating communities based on the
WRA flows of the core communities and expansion communities of each calendar year. As of June 30, 2021, the Series
2015E and 2021 bonds had a combined balance of $63,310,000 and the City of Waukee’s estimated future allocation
based on the WRA flows is currently $2,580,031.
The WRA Agreement requires the debt service on all State Revolving Loans issued after July 1, 2004 to be allocated to
the participating communities based on the WRA flow of the core communities and expansion communities each calendar
year. As of June 30, 2021, the outstanding balance of State Revolving Loan issues totaled $346,698,902 and the City of
Waukee’s estimated future allocation is currently $11,455,460.
City of Waukee, Iowa
NOTES TO FINANCIAL STATEMENTS
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NOTE 15 JOINT VENTURE (continued)
The WRA Agreement does not provide for the determination of an equity interest for the participating communities.
Withdrawing from the joint venture is a forfeit of all reversionary interest and no compensation will be paid. Since there is
no specific and measurable equity interest in the WRA Agreement, no investment in the joint venture has been reported
by the City.
The WRA issues separate financial statements that may be obtained at 3000 Vandalia Road, Des Moines, Iowa 50317-
1346.
NOTE 16 SUBSEQUENT EVENTS
In October 2021, the Waukee City Council approved the issuance of $19,760,000 in General Obligation Urban Renewal
Bonds Series 2021B for the purpose of providing funds for the Urban Renewal Plans for the Waukee Unified Urban
Renewal Area, Waukee Consolidated Urban Renewal Area, and the North Waukee Residential Urban Renewal Area.
NOTE 17 PROSPECTIVE ACCOUNTING CHANGE
Governmental Accounting Standards Board has issued Statement No. 87, Leases. This statement will be implemented
for the fiscal year ending June 30, 2022. The revised requirements of this statement will require reporting of certain
potentially significant lease liabilities that are not currently reported.
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REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
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City of Waukee, Iowa
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Required Supplementary Information
For the last four years
2021 2020 2019 2018
Service cost $ 43,554 $ 42,183 $ 36,277 $ 35,135
Interest cost 17,071 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 (8,843) (5,878) (10,128) (4,547)
Net change in total OPEB liability 51,782 5,597 41,636 25,548
Total OPEB liability, beginning of year 448,624 443,027 401,391 375,843
Total OPEB liability, end of year $ 500,406 $ 448,624 $ 443,027 $ 401,391
Covered-employee payroll $8,059,332 $7,805,648 $6,878,139 $6,661,636
Total OPEB liability as a percentage of covered-employee payroll 6.21% 5.75% 6.44% 6.03%
NOTES TO SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
Changes in benefit terms
There were no significant changes in benefit terms.
Changes in assumptions
Changes in assumptions reflect the effects of changes in the discount rate each period. The following are the discount
rates used in each period.
Year ended June 30, 2017 4.5%
Year ended June 30, 2018 3.58%
Year ended June 30, 2019 3.58%
Year ended June 30, 2020 3.5%
Year ended June 30, 2021 3.5%
See accompanying independent auditor's report.
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City of Waukee, Iowa
BUDGETARY COMPARISON SCHEDULE OF REVENUES,
EXPENDITURES/EXPENSES AND CHANGES IN BALANCES - BUDGET AND ACTUAL -
GOVERNMENTAL FUNDS AND PROPRIETARY FUNDS
Required Supplementary Information
Year ended June 30, 2021
Governmental Proprietary Total
funds actual funds actual Adjustments actual
REVENUES
Property taxes $16,442,792 $ – $ – $ 16,442,792
Tax increment financing 6,715,401 – – 6,715,401
Other city tax 3,654,633 – – 3,654,633
Licenses and permits 2,152,133 – – 2,152,133
Use of money and property 299,770 157,466 – 457,236
Intergovernmental 4,107,086 910,400 – 5,017,486
Charges for service 841,730 30,654,257 – 31,495,987
Miscellaneous 2,102,418 170,937 – 2,273,355
Total revenues 36,315,963 31,893,060 – 68,209,023
EXPENDITURES/EXPENSES
Public safety 7,661,959 – – 7,661,959
Public works 2,881,426 – – 2,881,426
Health and social services 79,000 – – 79,000
Culture and recreation 2,354,529 – – 2,354,529
Community and economic development 844,878 – – 844,878
General government 1,379,753 – – 1,379,753
Debt service 12,529,759 – (469,050) 12,060,709
Capital projects 33,050,205 – 460,375 33,510,580
Business type activities – 20,731,124 9,170,857 29,901,981
Total disbursements 60,781,509 20,731,124 9,162,182 90,674,815
Excess (deficiency) of revenues over (under)
expenditures/expenses (24,465,546) 11,161,936 (9,162,182) (22,465,792)
OTHER FINANCING SOURCES (USES), NET 29,812,781 (268,501) – 29,544,280
Excess (deficiency) of revenues and other
financing sources over expenditures/expenses
and other financing uses 5,347,235 10,893,435 (9,162,182) 7,078,488
BALANCES, beginning of year 46,926,179 77,921,424 – 124,847,603
BALANCES, end of year $52,273,414 $88,814,859 $(9,162,182) $131,926,091
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Budgeted amounts Final to actual
Original Final variance
$16,295,013 $16,295,102 $ 147,690
6,765,615 6,765,615 (50,214)
2,964,865 3,419,996 234,637
1,563,680 2,197,280 (45,147)
817,680 391,650 65,586
5,108,340 5,584,944 (567,458)
24,861,446 30,264,996 1,230,991
2,370,300 2,445,568 (172,213)
60,746,939 67,365,151 843,872
8,359,550 8,272,700 610,741
3,727,052 4,058,197 1,176,771
46,000 71,000 (8,000)
2,872,300 2,678,825 324,296
911,560 966,770 121,892
4,372,804 4,643,904 3,264,151
9,518,084 12,082,232 21,523
24,204,500 31,035,000 (2,475,580)
29,142,061 35,410,041 5,508,060
83,153,911 99,218,669 8,543,854
(22,406,972) (31,853,518) 9,387,726
19,655,000 22,233,700 7,310,580
(2,751,972) (9,619,818) 16,698,306
80,822,274 80,822,274 44,025,329
$78,070,302 $71,202,456 $60,723,635
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City of Waukee, Iowa
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING
Year ended June 30, 2021
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 $16,064,758. This budget amendment is reflected in the final
budgeted amounts.
For the year ended June 30, 2021, the City’s disbursements exceeded the amount budgeted in the health and social
services and capital projects functions.
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City of Waukee, Iowa
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Iowa Public Employees’ Retirement System
For the Last Seven Years *
(In Thousands)
Required Supplementary Information
June 30
2021 2020 2019 2018 2017 2016 2015
City’s proportion of the net pension
liability 0.074768% 0.064552% 0.068199% 0.064287% 0.060546% 0.053387% 0.045117%
City’s proportionate share of the net
pension liability $5,252 $3,738 $4,315 $4,282 $3,810 $2,638 $1,829
City’s covered-employee payroll $9,852 $9,056 $8,178 $7,814 $6,949 $6,412 $6,005
City’s proportionate share of the net
pension liability as a percentage of
its covered-employee payroll 53.31% 41.28% 52.76% 54.80% 54.83% 41.14% 30.49%
Plan fiduciary net position as a
percentage of the total pension liability 82.90% 85.45% 83.62% 82.21% 81.82% 85.19% 84.61%
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full ten-
year trend is compiled, the City will present information for those years for which information is available.
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June
30 of the preceding fiscal year.
See accompanying notes to required supplementary information – pension liability.
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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
2021 2020 2019 2018
Statutorily required contribution $ 940 $ 875 $ 827 $ 723
Contributions in relation to the statutorily
required contribution 940 875 827 723
Contribution deficiency (excess) $ – $ – $ – $ –
City’s covered-employee payroll $9,852 $9,056 $8,178 $7,814
Contributions as a percentage of covered-employee payroll 9.5% 9.7% 10.1% 9.3%
See accompanying notes to required supplementary information – pension liability.
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Year ended June 30
2017 2016 2015 2014 2013 2012
$ 641 $ 578 $ 550 $ 497 $ 423 $ 374
641 578 550 497 423 374
$ – $ – $ – $ – $ – $ –
$6,949 $6,412 $6,005 $5,339 $4,633 $4,491
9.2% 9.0% 9.2% 9.3% 9.1% 8.3%
See accompanying notes to required supplementary information – pension liability.
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City of Waukee, Iowa
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION LIABILITY
Year ended June 30, 2021
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.
• Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64.
• Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning
June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate
closed 20 year period.
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SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
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City of Waukee
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
ASSETS
Cash and investments $1,328,193 $ 53,952 $2,025,178 $ 6,481 $ 218,741 $3,632,545
Receivables
Property tax
Delinquent – 5,734 – – – 5,734
Succeeding year property tax – 2,571,474 – – – 2,571,474
Special assessments – – – – 137,799 137,799
Other 133 – – – – 133
Due from other governments 280,710 – – – – 280,710
Inventory 187,642 – – – – 187,642
Total assets $1,796,678 $2,631,160 $2,025,178 $ 6,481 $ 356,540 $6,816,037
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 111,216 $ – $ – $ – $ – $ 111,216
Accrued compensation 20,216 – – – – 20,216
Total liabilities 131,432 – – – – 131,432
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues
Succeeding year property tax – 2,571,474 – – – 2,571,474
Special assessments – – – – 127,150 127,150
Total deferred inflows of resources – 2,571,474 – – 127,150 2,698,624
FUND BALANCES
Nonspendable 187,642 – – – – 187,642
Restricted for
Debt service – – – – 229,390 229,390
Other 1,477,604 59,686 2,025,178 6,481 – 3,568,949
Total fund balances 1,665,246 59,686 2,025,178 6,481 229,390 3,985,981
Total liabilities, deferred inflows
of resources and fund balances $1,796,678 $2,631,160 $2,025,178 $ 6,481 $ 356,540 $6,816,037
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, 2021
Special Revenue Funds Debt service
Road Employee Public Special
Use Tax Benefits Improvement Forfeitures Assessments Total
REVENUES
Property taxes $ – $2,432,565 $ – $ – $ – $2,432,565
Other city taxes – – – – 29,941 29,941
Licenses and permits 5,042 – – – – 5,042
Use of money and property – 3,054 6,679 – 10,175 19,908
Intergovernmental 2,697,636 18,629 – – – 2,716,265
Miscellaneous 11 – 2,000,000 – – 2,000,011
Total revenues 2,702,689 2,454,248 2,006,679 – 40,116 7,203,732
EXPENDITURES
Operating
Public works 2,174,811 – – – – 2,174,811
Capital projects 203,000 – – – – 203,000
Total expenditures 2,377,811 – – – – 2,377,811
Excess of revenues over expenditures 324,878 2,454,248 2,006,679 – 40,116 4,825,921
OTHER FINANCING SOURCES (USES)
Sale of capital assets 41,770 – – – – 41,770
Operating transfers out – (2,475,000) (2,000,000) – – (4,475,000)
Total other financing sources (uses) 41,770 (2,475,000) (2,000,000) – – (4,433,230)
NET CHANGE IN FUND BALANCES 366,648 (20,752) 6,679 – 40,116 392,691
FUND BALANCES, beginning 1,298,598 80,438 2,018,499 6,481 189,274 3,593,290
FUND BALANCES, ending $1,665,246 $ 59,686 $2,025,178 $ 6,481 $ 229,390 $3,985,981
See accompanying independent auditor's report.
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City of Waukee, Iowa
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
June 30, 2021
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
ASSETS
Current assets
Cash and investments $ 703,857 $ 57,581 $ 466,212 $1,227,650
Receivables
Customer accounts 148,451 77,993 108,512 334,956
Total current assets 852,308 135,574 574,724 1,562,606
Noncurrent assets
Restricted cash and investments – – 12,862 12,862
Capital assets, net of accumulated depreciation – 5,449 3,635,971 3,641,420
Total noncurrent assets – 5,449 3,648,833 3,654,282
Total assets 852,308 141,023 4,223,557 5,216,888
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows – 40,872 35,729 76,601
OPEB related deferred outflows – 519 806 1,325
Total deferred outflows of resources – 41,391 36,535 77,926
LIABILITIES
Current liabilities
Accounts payable 130,947 3,731 260,073 394,751
Accrued compensation – 8,748 9,686 18,434
Compensated absences – 11,618 4,400 16,018
Direct borrowings and placements – – 65,000 65,000
Interest payable – – 504 504
Total current liabilities 130,947 24,097 339,663 494,707
Noncurrent liabilities
Direct borrowings and placements – – 270,000 270,000
Total OPEB liability – 8,433 13,095 21,528
Net pension liability – 98,558 86,156 184,714
Total noncurrent liabilities – 106,991 369,251 476,242
Total liabilities 130,947 131,088 708,914 970,949
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Pension related deferred inflows – 3,147 2,751 5,898
OPEB related deferred inflows – 1,416 2,198 3,614
Total deferred inflows of resources – 4,563 4,949 9,512
NET POSITION
Net investment in capital assets – 5,449 3,513,303 3,518,752
Restricted for bond retirement – – 12,358 12,358
Unrestricted 721,361 41,314 20,568 783,243
Total net position $ 721,361 $ 46,763 $3,546,229 $4,314,353
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, 2021
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
OPERATING REVENUES
Charges for service $1,499,547 $ 421,733 $1,335,676 $3,256,956
Total operating revenues 1,499,547 421,733 1,335,676 3,256,956
OPERATING EXPENSES
Business type activities
Cost of sales and services 1,464,082 430,446 632,905 2,527,433
Depreciation and amortization – 6,127 109,410 115,537
Total operating expenses 1,464,082 436,573 742,315 2,642,970
Operating income (loss) 35,465 (14,840) 593,361 613,986
NONOPERATING REVENUES (EXPENSES)
Loss on disposal of capital assets – – (21,485) (21,485)
Grant revenue – – 910,400 910,400
Interest income 1,311 136 570 2,017
Interest expense and fiscal charges – – (5,939) (5,939)
Total nonoperating revenues 1,311 136 883,546 884,993
Income (loss) before transfers 36,776 (14,704) 1,476,907 1,498,979
Transfers (out) – – (173,931) (173,931)
CHANGE IN NET POSITION 36,776 (14,704) 1,302,976 1,325,048
NET POSITION, beginning 684,585 61,467 2,243,253 2,989,305
NET POSITION, ending $ 721,361 $ 46,763 $3,546,229 $4,314,353
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, 2021
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customer and users $1,478,307 $ 400,569 $1,322,124 $3,201,000
Cash paid for personal services – (241,718) (372,372) (614,090)
Cash paid to supplies (1,333,135) (176,061) (278,153) (1,787,349)
Net cash flows from operating activities 145,172 (17,210) 671,599 799,561
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer to other funds – – (173,931) (173,931)
Net cash flows from noncapital financing activities – – (173,931) (173,931)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets – – (2,077,443) (2,077,443)
Proceeds from sale of capital assets – – 19,800 19,800
Proceeds from capital grant – – 910,400 910,400
Principal paid on direct borrowings and placements – – (65,000) (65,000)
Interest and fiscal charges paid – – (6,020) (6,020)
Net cash flows from capital and related financing activities – – (1,218,263) (1,218,263)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 1,311 136 570 2,017
Purchase of investments – – (972) (972)
Net cash flows from investing activities 1,311 136 (402) 1,045
NET CHANGE IN CASH AND CASH EQUIVALENTS 146,483 (17,074) (720,997) (591,588)
CASH AND CASH EQUIVALENTS, beginning 557,374 74,655 1,199,099 1,831,128
CASH AND CASH EQUIVALENTS, ending $ 703,857 $ 57,581 $ 478,102 $1,239,540
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, 2021
Enterprise Funds
Solid Utility Storm
Waste Billing Water Total
RECONCILATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ 35,465 $ (14,840) $ 593,361 $ 613,986
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities
Depreciation expense – 6,127 109,410 115,537
Change in assets, deferred outflows, liabilities and
deferred inflows
Customer accounts receivable (21,240) (21,164) (13,552) (55,956)
Accounts payable, net of capital assets 130,947 3,458 2,833 137,238
Accrued compensation – 364 2,124 2,488
Compensated absences – (1,388) (726) (2,114)
Net pension liability – 31,538 (14,961) 16,577
Deferred outflows of resources – (8,045) 13,717 5,672
Deferred inflows of resources – (13,823) (22,629) (36,452)
Total OPEB liability – 563 2,022 2,585
Net cash flows from operating activities $ 145,172 $ (17,210) $ 671,599 $ 799,561
RECONCILIATION OF CASH AND CASH EQUIVALENTS
AT YEAR END TO SPECIFIC ASSETS INCLUDED ON
THE COMBINING STATEMENT OF NET POSITION
Cash and investments $ 703,857 $ 57,581 $ 466,212 $1,227,650
Restricted cash and investments – – 12,862 12,862
703,857 57,581 479,074 1,240,512
Less items not meeting the definition of cash equivalent
Certificated of deposit – – (972) (972)
Cash and cash equivalents at year end $ 703,857 $ 57,581 $ 478,102 $1,239,540
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
2021 2020 2019 2018
REVENUES
Property tax $16,442,792 $15,148,227 $13,264,907 $11,935,530
Tax increment financing 6,715,401 5,198,896 4,130,856 3,549,942
Other city tax 3,654,633 3,390,034 2,598,522 59,400
Licenses and permits 2,152,133 2,319,665 2,427,879 1,287,456
Use of money and property 299,770 645,933 934,034 525,131
Intergovernmental 4,107,086 4,085,765 5,368,170 5,921,270
Charges for service 841,730 615,964 471,715 546,674
Miscellaneous 2,102,418 1,642,806 785,244 255,233
Totals $36,315,963 $33,047,290 $29,981,327 $24,080,636
EXPENDITURES
Operating
Public safety $ 7,661,959 $ 7,097,460 $ 6,206,481 $ 5,443,568
Public works 2,881,426 2,450,087 2,158,676 1,935,403
Health and social services 79,000 – 800 700
Culture and recreation 2,354,529 2,231,556 2,125,735 2,039,626
Community and economic development 844,878 862,639 991,664 1,387,462
General government 1,379,753 1,119,735 1,139,586 1,074,305
Debt service 12,529,759 9,592,326 8,859,158 7,227,132
Capital projects 33,050,205 13,721,659 16,764,881 25,490,622
Totals $60,781,509 $37,075,462 $38,246,981 $44,598,818
See accompanying independent auditor’s report.
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Modified Accrual Basis
2017 2016 2015 2014 2013 2012
$ 9,985,457 $ 9,436,301 $ 8,385,843 $ 7,666,911 $ 7,133,514 $ 6,811,607
3,414,595 3,229,861 3,204,146 3,017,853 3,427,898 3,186,693
35,436 27,921 133,216 60,988 39,355 462,040
1,594,670 1,288,941 1,391,499 1,057,350 639,233 507,344
325,215 195,336 182,503 222,405 210,762 204,505
4,250,128 5,241,337 5,602,222 2,539,186 3,713,932 1,762,542
540,001 351,341 414,059 597,042 728,310 253,692
479,481 405,168 385,164 281,147 1,058,091 813,998
$20,624,983 $20,176,206 $19,698,652 $15,442,882 $16,951,095 $14,002,421
$ 4,839,355 $ 4,281,395 $ 3,543,201 $ 3,286,146 $ 2,912,583 $ 3,040,673
1,997,301 2,297,252 2,281,384 2,241,516 1,580,884 1,381,993
– 5,100 4,800 16,500 12,750 15,175
1,838,317 1,763,428 1,599,802 1,457,105 2,010,987 1,338,835
1,206,432 1,211,082 760,100 910,021 618,937 885,864
818,853 817,880 872,753 757,317 785,443 868,324
8,930,321 7,507,909 6,421,577 5,996,633 4,642,544 6,111,183
10,369,279 11,339,024 19,067,964 9,226,292 5,976,606 3,501,963
$29,999,858 $29,223,070 $34,551,581 $23,891,530 $18,540,734 $17,144,010
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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, 2021, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated December 10, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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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 an immaterial instance of
noncompliance or other matters which is described in the accompanying schedule of findings.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2021 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
December 10, 2021
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SCHEDULE OF FINDINGS
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City of Waukee, Iowa
SCHEDULE OF FINDINGS
Year ended June 30, 2021
SECTION I—OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING
I-A-21 CERTIFIED BUDGET
Disbursements during the year ended June 30, 2021 exceeded the amounts budgeted in the health and social
services and capital projects functions. In addition, disbursements exceeded the amounts budgeted in the
health and social services function prior to being amended in May 2021. Chapter 384.20 of the Code of Iowa
states, in part, “Public monies may not be expended or encumbered except under an annual or continuing
appropriation.”
Recommendation
The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before
disbursements were allowed to exceed the budget.
Response
The City will work to amend future budgets prior to exceeding approved expenditures.
Conclusion
Response accepted.
I-B-21 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-21 TRAVEL EXPENSE
No expenditures of City money for travel expenses of spouses of City officials and/or employees were noted.
I-D-21 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-21 BUSINESS TRANSACTIONS
We noted no business transactions between the City and City officials or employees in excess of $1,500.
I-F-21 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-21 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, 2021
SECTION I—OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING (continued)
I-H-21 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-21 REVENUE BONDS AND NOTES
No instances of noncompliance with the City’s revenue bond and note provisions were noted.
I-J-21 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.