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CITY OF CEDAR FALLS, IOWA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30,20 13
Prepared by:
Finance/Public Records Division of
Department of Administrative Services
Jennifer Rodenbeck, CPA, CPFO Finance Manage/City Clerk
City of Cedar Falls, Iowa Gomprehensive Annual Financial Report For the Fiscal Year Ended June 30,2013
Table of Contents
INTRODUCTORY SECTION Letter of Transmittal. . GFOA Certificate of Achievement . Organizational Charts . . . . Principal Officials.
FINANCIAL SECTION I ndependent Auditor's Report Management's Discussion and Analysis Basic Financial Statements:
Government-wide Financíal Statements: Statement of Net Position Statement of Activities. . . .
Fund Financial Statements: Balance Sheet- Governmental Funds . . . . Statement of Revenues, Expenditures, and Changes ín Fund
Balances - Governmental Funds. . . . . . . Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds. Statement of Revenues, Expenses, and Changes in Fund Net
Assets - Proprietary Funds. Statement of Cash Flows - Proprietary Funds.
Notes to Financial Statements. . . . Required Supplementary lnformation :
Budgetary Comparison Schedule - Function Budget Notes to Required Supplementary lnformation Schedule of Funding Progress
Other Supplem entary I nformation : Combining Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds . Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Governmental Funds
Paqe
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11
12
14
15
18
31
33
81
83
86
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37
39 40
42
44
46
87
91
Combining Statement of Net Position - lnternal Service Funds. Combining Statement of Revenues, Expenses, and Changes
in Fund Net Position - lnternal Service Funds Combining Statement of Cash Flows - lnternal Service Funds. Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules by Source. Schedule by Function and Activity Schedule of Changes by Function and Activity.
STATISTICAL SECTION Financial Trends:
Net Position by Component Changes in Net Position. Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds
Revenue Capacity: Assessed and Taxable Value of Property. . . . Property Tax Rates - Direct and Overlapping Governments. . . Principal Property Taxpayers Property Tax Levies and Collections.
Debt Capacity:
Ratios of Outstanding Debt by Type. Ratios of General Bonded Debt Outstanding Direct and Overlapping Debt. Legal Debt Margin lnformation. . . Revenue Bond Coverage - Sewer Authority. Sales History and Total Sewer Charges. Water Meters by Rate Class. Largest Sewer Customers
Demographics on Economic lnformation: Demographic and Economic Statistics Principal Employers . . . . Full-Time Equivalent City Government Employees by
Function/Department Operating I nformation :
Operating lndicators by Function. . . . Capital Asset Statistics by Function . . . .
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97
99
101
102 104
106
108
112
114
116
118
120
122
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126
128
129
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133
134
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DEPARTMENT OF ADMINISTRATIVE SERVICES CITY OF CEDAR FALLS, IOWA 220 CLAY STREET CEDAR FALLS, IOIVA 50613 PHONE: 319-273-8600 FAX: 319-268-5126 www.cedarfalls,comw
October 1,2013
To Mayor Crews, Members of the City Council and citizens of the City of Cedar Falls:
I am pleased to submit to you the comprehensíve Annual Financial Report (CAFR) of the city of cedar Falls, lowa,for the year ended June 30, 2013. This is the eleventh CAFR completed in compliance with the Governmental Accountíng standards Board Statement No. 34 (GASB 34). Responsibility for both the accuracy of the data andthe completeness and fairness of the presentation, including all disclosures, rests with the city. To the best of ourknowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designedto present fairly the financíal position and results of operations of the city. All disclosures necessary to enable thereader to gain an understanding of the city's financial activities have been included.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basicfinancial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal isdesigned to complement MD&A and should be read in conjunction with it. The city of cedar Falls, MD&A can befound immediately following the report of the independent auditors.
The city is required to undergo an annual single audit in conformity with the provisions of the u.s. office ofManagement and Budget (oMB) circular A-133, "Audits of states, Local Governments, and Nonprofitorganizations'" lnformation to comply with oMB circular A-133, "Audits of states, Local Governments, andNonprofit organizations," and "Government Auditing standards" is included in another report under a separate cover.
The city of cedar Falls provides many municipal services including fire and police protection, streets, garbage collection, parks, recreation, cultural arts, planning, zonihg, g"n"r"i a¿m¡n¡stråtion, and sewer and storm waterservices' For financial reportíng purposes, all funds, agencies, boards, commissions, trusts and authoritiesinvolved in the provision of these services are included íf the city is financially accountable. Financial accountability is determined by several different factors, including fiscal dàpendence, ability to impose will upon theentity's governlng body, provision of specific financial burdens or benefits and separate legal entity status. Aftercareful evaluation of these factors, the city has included in this financíal report the cedar Falls Electric utílity, Gasutility, water utility, and communícations utility, as well as all funds of the cíty. The utilities are each reported asdiscretely presented component units.
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"OUR CITZENS ARE OUR BUSINESS"
GOVERNMENTAL STRUCTURE
The City has operated under the mayor-council form of government since incorporation. Policy-making and legislative authority are vested in the governing council, which consists of seven members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, setting goals, and approving mayor- appointed committees. The full-time mayor is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day{o-day operations of the City, and for appointing department directors. The mayor and Council are elected on a nonpartisan basis. The Council consists of two council members elected at large and one council member elected from each of the five wards as established by ordinance, elected for terms of four years. The mayor is elected at large and to a two-year term.
ECONOM¡C CONDITION AND OUTLOOK
The City, incorporated in 1854, is located in the northeastern part of the state, has a land area of 28.9 square miles and a population of 39,260. The City is empowered to levy a property tax on both real and personal property located within its boundaries, and has the power by state statute to extend its corporate limits by annexation, which is seldom done, but will be done when deemed appropriate by the City Council.
The economic condition and outlook of Cedar Falls continues to be strong. The Cedar Falls economy was insulated from many of the impacts created by the recent recession due to the growth and stability of the University of Northern lowa and a diverse service business sector.
The Greater Cedar Valley Alliance was formed in the metro area to organize the human resources and generate needed development capital to attract new business and industry to the area and to encourage expansion of businesses already in the area. As a result, many new businesses have located offices and plants in the metro area. Target Corporation constructed a distribution center with an assessed value of approximately $¿S million in FY02 and in FY08 completed a second refrigeration center. The Cedar Falls lndustrial and Technology Park continues to show tremendous expansion.
The increase in new businesses and expansion of established firms has had a positive effect on employment and the City's tax base. Historically, Cedar Falls' unemployment rate has closely followed the State trends, which are significantly lower than the nation's unemployment rate (See Attachment A). This is due to the strong service employment base supported by the state university located in Cedar Falls. Since the devaluation of property in l9B6-1988, Cedar Falls has had steady growth in property values. Assessed values increased in FY14 by $gZ million, and taxable values increased by $229 million (See Attachment B) due to the increase in assessed valuations and the residential rollback.
The City of Cedar Falls maintains a comparatively low tax rate. Cedar Falls has the fifth lowest tax rate per capita of the twenty largest cities in the state of lowa (See Attachment C). Thís low rate can be attributed to the efforts of the City to streamline operations over the past twenty years. This has been accomplished by maintaining the approximate same number of employees, even when demand for service has increased. Cedar Falls had one of the lowest number of full{ime employees per 1,000 residents in FY12. (See Attachment D).
Over the past ten years Cedar Falls' residential housíng sales prices have significantly increased. ln 2002, the average sales price reported was $153,312. ln2012, the average sales pricewas $206,773, which is a thirty-five (35) percent increase in the past ten years (See Attachment E). These statistics indicate that Cedar Falls' local economy is sound and there is a strong market for Cedar Falls homes.
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Housing values have surged from the recession and devaluation of the mid-1980's to values that once again place the homeowners living in Cedar Falls in an advantageous market position. This market growth is a credit to businesses, the school system, utilities, and quality of City services in Cedar Falls. Each entity has worked together to strengthen the local economy, create jobs, and improve Cedar Falls' quality of life.
MAJOR INITIATIVES
Disinfection Project: ln August 2009, the Public Works department presented to council information on an Ultraviolet Light (UV) Alternatives Evaluation Workshop. This is a process to treat bacteria at the Water Reclamation Facility. The Environmental Protection Agency (EPA) has directed a new standard of treatment. The advantage of UV over other disinfectants is it can inactivate hard to control organisms, such as E.coli, without chemical additions to the final product and without producing a harmful disinfection by-product. Using UV is a better and safer way to disinfect and there are no residuals.
ln FY11, the Public Works department solicited bids for the construction of the Water Reclamation Facility UV Disinfection and Biosolids Handling Facilities lmprovements Project (Disinfection Project). Construction of the project began in FY12 and a majority of the construction has occurred during FY13. Completion is expected in FY14. The total project cost will be approximately 921.8 million.
This project will have a significant impact on the City's sewer fund. The City Council did approve a So/o increase on sewer rates each year for five years beginning in FY12. The council also decided not to finance the project in a traditional way of selling sewer bonds. lnstead the City has opted to self-finance the project. Cash reserves from the City's Capital lmprovements Fund and Hospital Fund havefinanced the project. Through June 30,2013, these funds have foaned the sewer fund $15.9 million. Self-financing has allowed these funds to earn interest at a rate greater than earnings on traditional investments and the sewer fund benefits by paying interest costs lower than bond rates.
Bluff Street Lift Station: ln 1962, the Bluff Street Lift Station was constructed below the 1Oo-year flood elevation. During the Flood of 2008, the entire basement (pump room) filled with water and the control room had five feet of standing water in it. Due to its location, the station was not accessible for several days and out of service for about two weeks because of the significant damage to the mechanical equipment in the station as well as to the backup generator. Because of the dry well/wet well configuration of the station, conventional flood protection was not practical, therefore the City applied for a Community Development Grant (CDBG) Disaster Recovery Grant to construct the new station at a higher elevation and that is not subject to flooding and is completely accessible in a high water event.
ln FY10, design on the new lift station started and the Public Works Department solicited bids for the New Bluff Street Lift Station project. Construction began in FY12 and continued in FY13. Completion will occur in FY14. The total project cost will be approximately $Z.g million. The CDBG grant will fund $3.g million of the cost. The remaining cost will be financed with sewer bonds and self-financing options. Sewer rates increases described above also were needed to help finance this project as well.
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ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
ln developing and evaluating the City's accounting control system, consideration is given to the adequacy of internal accounting controls. Accounting control comprises the plan of organization and the procedures and records that are concerned with the safeguarding of assets and the reliability of financial records and consequen¡y are designed to provide reasonable assurance that:
¡ Transactions are executed in accordance with management's general or specific authorizations. ' Transactions are recorded as necessary(1)to permit preparation of financial statements in conformitywith
generally accepted accounting principles or any other criteria, such as finance-related legal and contractual compliance requirements applicable to such statements, and (2) to maintain accountability for assets.
. Access to assets is permitted only in accordance to management's authorization.
' The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The definition of accounting control comprehends reasonable, but not absolute, assurance that the objectives expressed in it will be accomplished by the system. The concept of reasonable assurance recognizes that the cost of internal controls should not exceed the benefits. The benefit consists of reductions in the risk of failing to achieve the objectives implicit in the definition of accounting control.
All internal controf evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
ln accordance with the State of lowa, the City has formally established budgetary accounting control for its operating funds. Budgetary control is maintained at the function level (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). The City has adhered to these budgetary laws.
INDEPENDENT AUDIT
Eide Bailly, LLP, a firm of independent public accountants has audíted the financial records, books of account and transactions of the City for the fiscal year ended June 30, 2013, and their opinion is included in the Financial Section of this report. The financial statements are the responsibility of the City. The responsibility of the independent public accountants is to express an opinion on the City's fínancial statements based on their audit. An audit is conducted in accordance with U.S. generally accepted auditing standards. Those standards require that the audit be planned and performed in a manner to obtain a reasonable assurance as to whether the financial statements are free of material misstatement.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cedar Falls for its comprehensive annual financial report (CAFR) for the year ended June 30, 2012. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
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ln order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Cedar Falls has received a Certificate of Achievement for the last twenty-three consecutive years (fiscal years ended 1990-2012). We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA.
ACKNOWLEDGMENTS
The preparation of this report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance/Public Records Division, particularly Lisa Roeding, Deputy Finance Manager and Cathy Niebergall, Financial Technician. Each member of the division has my sincere appreciation for the contributions made in the preparation of this report. I would also like to thank the members of the City Council for their continued interest and support in planning and conducting the financial operations of the City in a responsible and prudent manner.
Sincerely,
enbeck, CPA, CPFO nce Manager/City Clerk
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Unempl ATTACHMENT A
Unemployment Rates Cedar Falls, Waterloo, lowa & U.S.
Unemployment Rates Gedar Falls, Waterloo, lowa & U.S.
9.00
8.00
7.00
c) o) o c c)o L o fL
6.00
5.00
4.00
3.00
2.00 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
tCedarFalls +Waterloo +lowa +U.S.
Month 12-13
Cedar Falls (ln %)
Waterloo (ln %)
lowa (ln %)
U.S. (ln o/o)
July Aug sep Oct Nov Dec Jan Feb Mar Apr May June
4.O 4.4 3.2 3.5 3.1 3.5 3.8 3.3 3.1 3.0 3.1 3.9
6.6 6.8 5.7 5_8
5.8 6.8 7.6 6.6 5.8 5.4 5.4 5.7
5.3 5.5 5.2 5.1 4.9 4.9 5.0 5.0 4.9 4.7 4.6 4.6
8.3 8.1 7.8 7.9 7.7 7.8 7.9 7.7 7.6 7.5 7.6 7.6
Average 3.5 6.2 5.0 7.8
Cedar Falls has consistently remained below Waterloo and the nation's unemployment rates.
Historically Cedar Falls' unemployment rate has closely followed the State trends. Cedar Falls is insulated from many of the economic problems in the Metro area due to a strong service employment base supported by UNI.
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ATTACHMENT B taxvaluel4
Taxable Valuations FY04-FY 14 City of Cedar Falls
3,000,000,000
2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
FYO4 FYOs FYO6 FYOT FYOS FYO9 FYIO FY11 FY12 FY13 FY14
rTaxable Value trAssessed Value
Year Taxable Value
Assessed Value
FYO4
FYOs
FYO6
FYOT
FYOS
FYO9
FYlO FY11 FY12 FY13 FY14
817,996,990 903,439,479 920,739,030 985,250,969
1 ,018,530,694 1,098,295,277 1 ,150,079,051 1 ,1 85,969,161 1,254,921,347 1,393,51 1,204 1,622,962,335
1,427,127,146 1,673,902,007 1,737 ,456,552 1,931 ,759,494 2,013,912,356 2,252,421,925 2,336,646,915 2,402,107,961 2,459,320,459 2,618,319,943 2,650,433,900
The last ten years have provided a steady growth trend ín assessed valuations. ln addition, FY08 was the first year that assessed values exceeded $2 billion and taxable values exceeded $1 billion.
For FY14, assessed values increased by $32,t 14,057. However, taxable values increased by $229,35 1 ,191 due to the change in the residential rollback factor to 52.82% for Fy14 and the release of the TIF increment.
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Citytaxr
900.00
800.00
700.00
600.00
500.00
400.00
300.00
200.00
Property Tax Per Capita (FY13) 20 Largest lowa Cities
ATTACHMENT C
Property Tax Per Gapita (FY13) 20 Largest Gities
WDM IC CR BE CB DA WA CL UR AN DI\4 FD MC MA SC CF AM MA DU BU
C¡ty 2010 Abbre-
Population viation
FYI3 Tax Per Person
West Des Moines lowa City Cedar Rapids Bettendorf Council Bluffs Davenport Waterloo Clinton Urbandale
keny Des Moines Fort Dodge Mason City Marion Sioux City Cedar Falls Ames Marshalltown Dubuque Burlington
800.53 749.90 685.03 675.82 673.97 664.56 609.53 570.61 550.35 548.16 535.64 493.31 486.57 480.96 448.28 435.53 407.26 402.19 394.58 385.09
56,609 67,862
126,326 33,217 62,230 99,685 68,406 26,885 39,463 45,582
203,433 25,206 28,079 34,768 82,684 39,260 58,965 27,552 57,637 25,663
WDM tc
CR BE CB DA WA CL UR AN DM
MC MA SC CF AM MA DU BU
FD
Averaqe 549.89
For over two decades Cedar Falls' local government has operated at one of the lowest per capita property tax rates among the 20 largest cities in lowa.
At a cost of $435.53 per person, the City is sub- stantially below the average rate of $549.89. This rate can be attributed to the City's concerted efforts to streamline operations over the past 20 years.
lf the City of Cedar Falls operated at the state average property tax per capita, an additional 4.S million dollars would be devoted to operations. This would be an increase of 26% of taxes levied in FY13.
lncluded in Cedar Falls' population are university students who live in campus housing and do not pay property taxes. Thís results in an even greater property tax burden on the citizens.
I
ATTACHMENT D
Full-Time Employees Per 1,000 Residents Comparison of 20 Largest Cities
12
10
I
6
4
oe 9ù \o "so
a\s "$
Eo gù 9h .$Þ oQ (a & ow $*.$o$ o( È¡Þùe
City FY12
Employees 2010
Population Employees Per 1,000
Cedar Rapids Dubuque lowa City Mason City Des Moines Ames Sioux City Burlington Davenport Waterloo Council Bluffs Fort Dodge Bettendorf Clinton Marshalltown W. Des Moines Gedar Falls Ankeny Marion Urbandale
1293.0 550.0 626.0 250.0
1750.0 503.0 684.0 205.0 773.0 516.0 441.O
177.0 230.0 184.0 174.0 337.0 215.0 212.0 160.0 180.0
126,326 57,637 67,862 28,079
203,433 58,965 82,694 25,663 99,695 68,406 62,230 25,206 33,217 26,895 27,552 56,609 39,260 45,592 34,769 39,463
10.24 9.54 9.22 8.90 8.60 8.53 8.27 7.99 7.75 7.54 7.09 7.O2
6.92 6.84 6.31 5.95 5.48 4.65 4.60 4.56
Average 7.30
Among the top twenty largest cities in the State of lowa, the City of Cedar Falls continues to have one of the lowest number of employees per capita. The pressures of new construction growth, road development, and societal values have placed greater demands on existing staff. ln the near future, the City Council wíll need to prioritize services or focus on key services to address thé over extension of City staff.
Cedar Falls city government continued to have one of the lowest number of employees per 1,000 capita comparing the top 20 largest cities.
Cedar Falls has 1.82 employees per 1,000 capita less than the state average, which is equivalent to 71 fewer fu ll{ime employees.
Employment reductions have been implemented over the last 10 years, which has streamlined Cedar Falls' employment.
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Resalel2 ATTACHMENT E
The average sale price of residential properties in Cedar Falls has grown by 35% between 2OO2- 2012 from $153,31 2 to $206,773.
However, in2O11 the average sale price declined slighfly
Average Residential Sales Price (Annual) Cedar Falls, lowa
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
Average Sales Price
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
153,312 163,637 168,599 181,310 190,929 195,090 192,154 207,754 199,318 197,576 206,773
Average 186,g3g
- 10 -
Government Finance Officers Association
Certificate of Achievement for Excellence in Financial Reporting
Presented to
City of Cedar FaIIs fowa
For its Comprehensive Annual Financial Report
for the Fiscal Year Ended
June 30,2012
ØrtrÊtu- Executive Director/CEO
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City of Cedar Falls, lowa Organizational Chart
Operations and Maintenance
Water Reclamation
Public Works
lnvestigat¡ons
School Reserve Officer & Crossing
Guard Program
Police Department
Patrol
Code Enforcement
lnspections
Suppression
Prevent¡on
Fire Department
City Council
Mayor
Citizens of Cedar Falls
Cultural Services
Library*
Parks
Recreation
Visitor & Tourism Services
Community Ctr& Senior Services
Human & Leisure Services
Community Services
Engineering & Storm Water
lnspect¡on Services
Planning and Zoning
Developmental Services
Legal Services
Finance/Public Records & Parking
lnformation Systems
Cable W
Administrative Services
I
A I\) t
city division org.doc January 29,2013
Financial Services
*The Library is governed by the Library Board of Trustees' which are appointed by the Mayor & City Council. The Library is shown under the Human & Leisure Services Department since that department is the Board's liaison.
City of Cedar Falls, lowa Boards and Commissions
I
J (¡) I
Board of Electrical Examiners
Comm Ctr & Senior Services Board
Park & Recreation Commission
Historic Preservation Commission
Board of Appeals
Civil Service Commission
Library Board of Trustees
Visitors & Tourism Board
City Council
Jon Crews Mayor
Board of Adjustment
Cedar Falls Health Trust Board
Human Rights Commission
Utilities Board of Trustees
Art & Culture Board
Board of Plumbing Examiners
Housing Commission
Planning & Zoning Commission
Finance Division January 25,2011City boards & commissions.doc
CITY OF CEDAR FALLS, ¡OWA
PRINCIPAL OFFICIALS June 30,2013
Title Mayor Council Member- 1't Ward Council Member - 2nd Ward Council Member - 3'd Ward Council Member - 4th Ward Council Member- Sth Ward Council Member - At Large Council Member - At Large Administrative Services Director Developmental Services Director Human & Leisure Services Director Fire Chief Police Chief Public Works Director City Attorney Finance Manager/City Clerk lnformation Systems Manager Cable TV Manager City Engineer City Planner Community Services Manager lnspection Services Manager Acting Cultural Services Manager Recreation Division Manager Visitors & Tourism Manager Cedar Falls Public Library Director Operations and Maintenance Manager Water Reclamation Manager Cedar Falls Utilities General Manager
Name Jon Crews Tom Hagarty Susan deBuhr John Runchey Mare Madsen Schmidt Frank Darrah Nick Taíber Dave Wieland Richard L. McAlister Ron Gaines Mark Ripplinger John Schilling Jeff Olson Bruce Sorensen Steve Moore Jennifer Rodenbeck Laurene Saathoff Denny Bowman Randy Lorenzen Marty Ryan Robert Seymour Craig Witry Emily Drennen Bruce Verink Kimberly Manning Sheryl McGovern Brian Heath Lyle Krueger Jim Krieg
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dar Falls Visitor 8. Tourism Center
.¿>\ EideBailly.
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
City of Cedar Falls, Iowa
Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remainingfundinformationoftheCityofCedarFalls,Iowaasofandfortheyearended Jine30,2013, 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 e1Tor.
Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Cedar Falls Utilities, which represent the entire assets, net position, and revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Cedar Falls Utilities, is based on the report of the other auditors. 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 mateiial 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 fiaud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that ur" upprop.iate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of thè-entìty,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.
l5 www.eidebqilly.com
3999PennsylvonioAve.,Ste 100 | Dubuque,lAS2oo2-2273 I Tsó3.55ó t79o I Fs63.5577942 ) EoE
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, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Cedar Falls, Iowa, as of June 30,2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Re quir e d Supp le me ntary Informat ion
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the other required supplementary information listed in the table of contents 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 inquires of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquires, 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.
Other Inþrmation
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively compromise the City of Cedar Falls, Iowa's financial statements. The introductory section, combining nonmajor fund financial statements, capital asset schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements.
The combining nonmajor fund financial statements and capital asset schedules 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 nonmajor fund financial statements and capital asset schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
l6
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report, under separate cover, dated September 27,2013, on our consideration of the City of Cedar Falls, Iowa's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance.
õ*,4 z¿/ Dubuque, Iowa September 27,2013
I7
MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Cedar Falls' financial performance provides an overview of the City's financial activities for the fiscal year ended June 30, 2013. Please read it in conjunction with the transmittal letter found on pages 1 - 10 of this report.
2013 FINANCIAL H¡GHLIGHTS
year 2013. Property taxes increased $893,816 for all activities.
from fiscal year 2012. Public Safety expenses increased by $t,029,534 and Public Works expenses decreased by $1,061,71 0.
amount, the net position of the governmental activities increased by $8,113,574 and the net position of the business-type activities increased by $3,804,534.
USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements and other information as follows:
o Management's Discussion and Analysis introduces the basic financial statements and provides an analytical overview of the City's fínancial activities.
o Government-wide Financial Statements consist of a Statement of Net Position and a Statement of Activities. These provide ínformation about the activities of the City as a whole and present an overall view of the City's finances.
The Fund Financial Statements tell how governmental activities were financed in the short term as well as what remains for future spending. Fund fínancial statements report the City's operations in more detail than the government-wíde statements by providing information about the City's 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 lnformation further explains and supports the financial statements with a comparison of the City's budget for the year.
Other Supplementary lnformation provides detailed information about the nonmajor Special Revenue and Capital Projects Funds and the lnternal Service Funds.
REPORTING THE CITY'S FINANCIAL ACTIV¡TIES
Government-wide Financial Statements
One of the most important questions asked about the City's finances is, "ls the City of Cedar Falls in a better financial position at the end of the fiscal year, compared to last year?" The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
a
a
a
a
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accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid.
The Statement of Net Position presents all of the City's assets and liabilities, with the difference between the two reported as "net position". Over time, increases or decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. A person will need to consider other non-financial factors, however, such as changes in the City's property tax base and the condition of the City's infrastructure, to assess the overall health of the City.
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 untilfuture fiscal periods.
The Statement of Net Position and the Statement of Activities report two kinds of activities:
. Governmental activities - Most of the City's basic services are reported here, including the general administration, streets, fire, police, parks, recreation, library, and housing and block grant assistance. Property taxes, local option sales taxes, road use taxes, and federal and state grants finance most of these activities.
¡ Business-type activities - The City of Cedar Falls charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City's sewer, refuse, and storm water are reported in this section.
The Government-wide financial statements can be found on pages 31 - 34 of this report.
Fund Financial Statements
The Fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law or by bond requirements. The City has two kinds of funds:
. Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of these funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called the "modified accrual basis" of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance City programs.
The required financial statements for governmental funds include a balance sheet and a statement of revenues, expenditures, and changes in fund balances. We describe the relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation at the bottom of the fund financial statements.
The City maintains 21 individual governmentalfunds. lnformation is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund, Hospital Fund, TIF Fund, Street Repair Fund, Street Construction Fund, Debt Service Fund, FEMA Fund, and Bond Fund, all of which are considered to be major funds. Data from the
. other twelve governmentalfunds are combined into a single, aggregated presentation. lndividual fund data for each of these non-major governmental funds is provided in the form of combining statements located in the supplementary information section of this report.
Ïhe basic Governmental Fund Financial Statements can be found on pages 35 - 39 of this report.
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a Proprietary Funds - When the City charges customers for the service it provides, these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as businessìype activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, refuse and storm water activities.
lnternal Service Funds are used to accumulate and allocate costs internally. The City uses internal service funds for its information systems, vehicle maintenance, and various risk management activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sewer Fund, Refuse Fund, and Storm Water Fund, all of which are considered major funds. lnternal Service Funds are combined into a single, aggregated presentation in the proprietary fund financial statements. lndividual fund data for internal service funds is provided in the form of combining statements located in the supplementary information section of this report.
The basic Proprietary Fund Financial Statements can be found on pages 40 - 45 of this report.
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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 change in the net position for governmental and business-type activities.
Governmental activities Business-type activities Total
2013 2012 2013 2012 2013 2012
g 107,527,954 $ 163,936,827
106,608,386 $
162,574,422
(4,381,386) $
83,715,207
1,255,950 $
74,092,070
103,146,568
247,652,034
$ 107,864,336 236,666,492
Current and
other assets
Capital assets
Total assets
Long-term debt
Other liabilities
Total liabilities
271,464,781
8,622,236 $
28,488,990
269,182,808
11,345,500 $
31,597,327
79,333,821
3,152,973 $
2,114,941
75,348,020
3,763,871 $
1,322,776
$
350,798,602
11,775,209 $
30,603,931
344,530,828
15,109,371
32,920,103
$ sz,r 11,226 g 42,942,827 $ 5,267,914 $ 5,086,647 $ 42,379,140 $ 48,029,474
Net assets:
Net investment
in capital assets $
Restricted
Unrestricted
155,314,591 $
24,150,307
54,888,657
151,130,097 $
24,405,828
50,704,056
79,677,940 $
9,500
(5,621,533)
70,328,202 $
9,500
(76,32s)
234,992.531
24,159,807
49,267,124
s 221,458,299 24,415,328
50,627,727
Total net position $ 234,353,555 $ 226,235,981 $ 74,065,907 $ 70,261,373 $ 308,419,462 $ 296,s01,3S4
Net position of governmental activities increased from FY12 by approximately $A.t million, or 3.59%. This increase was due primarily to the continued strength of the property tax base and the small amount of general obligation debt outstanding by the City. Net position of business-type activities increased from FY12by approximately $g.g million, or 5.41%. This increase was due to new assets constructed or being constructed. These assets include the new Public Works complex, the disinfection project and the Bluff Street liftstation. ln addition, this was the seventh year that storm water fees were collected. The largest portion of the City's net position is the net investment in capital assets (e.g., land, infrastructure, buildings, and equipment). The debt related to the investment in capital assets is liquidated with sources other than capital assets. Restricted net position represent resources that are subject to external restrictions, bond covenants, 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{o-day operations are approximately $49 million at the end of the year.
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For the year ended June 30, 2013, net position changed as follows
Governmental Activities Business e Activities Total
2013 2012 2013 2012 2013 2012
Revenues
Program Revenues
Charges for
servrces
Operating grants
and contributions
Capital grants and
contributío ns
General Revenues
Property taxes
Local Option Sales Tax
Hotel/Motel Tax & Other
Use of money and
property
lntergovernm ental
Miscellaneous
Gain on Sale of assets
Utility contribution
Total revenues
Expenses
Public safety
Public works
Health and social
servrces
Culture and
recreation
Community and
economrc
development
General government
Debt service
Sewer
Refuse
Storm Water
Total expenses
$ 4,911,766 $ 5,099,756$ 8,461,470$ 8,469,215$ 13,373,236$ 13,568,971
2,098,639 1 ,695,1 1 7 2,098,639 1,695,117
6,479,932 1 1,529,905 577,411 140,450 7,O57,343 1 1 ,670,355
24,695,940
4,793,027
7 51,577
1,268,202
4,405,345
1,375,437
23,802,124
5,062,220
692,486
1,275,402
4,296,073
1,014,890
6,606
1,625,000
24,695,940
4,793,027
751,577
1,307,088
4,405,345
1,375,437
23,802,124
5,062,220
692,486
38,886 36,1 37 1 ,311,539
4,296,073
'1,014,890
6,606
1,625,0001,637,000 1,637,000
$ 52,416,865 $ 56,099,579 $ S,OZZ,767 g 8,645,802 $ 61,494,632 $ 64,745,381
$ 9,491,677 $ 11,909,568
$ $
320,864
7,262,'t 10
8,357,058
4,890,409
228,173
8,462,143 $
12,971,278
316,339
7,098,908
7,815,848
4,333,403
452,378
9,491,677 $
11,909,568
320,864
7,262,110
8,462,143
12,971,278
31 6,339
7,098,908
3,617,688
2,770,264
728,713
3,336,990
2,492,305
722,991
8,357,058
4,890,409
228,173
3,617,688
2,770,264
728,713
7,815,848
4,333,403
452,378
3,336,990
2,492,305
722,991
$ 42,459,85s $ 41,450,297 $ 7,1 16,665 $ 6,552,286 $ 49,576,524 $ 48,002,s83
$ 9,957,006
(1,843,432)
8 14,64s,282 $ 1,961,102 $ 1,843,432
2,093,516 $
8, 91 9,1 54
11,918,108 $ 16,742,758 9,154)
lncrease in net position
before transfers
ïransfers
lncrease in net position
Net position, beginning
Net position, ending
8,113,574 $
226,239,981
5,730J28 $ 220,509,853
3,804,534 $ 70,261,373
11,012,670 $
59,248,703
11,91 8,108 $ 296,501,354
16,742,798
279,758,556
$
$ 74,065,907 $ 70,261,373$ 234,353,555 $ 226,239,981
22
$ 308,419,462 $ 296,501,354
Property taxes increased by approximately $893,000 from FY12 due to increased taxable valuations. FEMA grants for property buyouts related to the 2008 Flood received in FY12, caused capital grants and contributions to decreasefor FY1 3.
INDIVIDUAL MAJOR FUND ANALYSIS
Governmental Fund Highlights
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $64,696,852. $548,225 is nonspendable for inventory. $25,435,109 is restricted for TlF, debt service, road use tax funds, local option sales tax, employee retirement systems, bond proceeds and various grants. $16,551,115 is committed for the City's health trust fund and parking fund. $16,376,887 is assigned for recreational capital funds, police forfeiture funds, economic development and capital improvements. Thís leaves $5,785,516 for unassigned fund balances in the governmental funds.
The Governmental fund balances increased by $4,880,073, or 8.160/0. This increase was due in part to the increase in the FEMA Fund.
The General Fund is the chief operating fund of the City of Cedar Falls. At the end of the current fiscal year, unassigned fund balance of the General Fund was $6,978,807, while the total fund balance totaled $9,037,503. As a measure of the General Funds liquidity, it may be useful to compare both unreserved fund balances and total fund balances to total fund expenditures. Unassigned fund balance represents 33.51% of the total General Fund expenditures, while the total fund balance represents 43.39% of that same amount.
The following fund balances in the other major funds, which comprise the Total Governmental Funds are listed below: FY13 FY12 lncrease
Amount Amount (Decrease) Hospital Fund
TIF Fund
Street Repair Fund
Street Construction Fund
Debt Service Fund
FEMA Fund
Bond Fund
Other Governmental Funds
15,718,951 $ 15,435
12,609,671
6,012,776
318,846
(529,170)
(644,688)
22,157,628
$ 443,930 (3,767)
(1,061,578)
891,363
56,970
3,749,701
(595,880)
1,311,285
$ 15,274,921
19,202
13,671,249
5,121,413
261,976
(4,278,871)
(48,808)
20,846,343
The FEMA Fund had the largest increase in fund balance due to the reimbursements received for projects related to the 2008 Flood.
The Street Repair Fund had a decrease in fund balance due to many projects being able to be completed during FY13
The Hospital Fund had an increase in fund balance due to the fewer projects being funded by the Health Trust Board
The Street Construction Fund had an increase in fund balance due to the increase in road use taxes received. Road use tax funds have increased due to the population increase in Cedar Falls which causes the formula to be revised.
23
The Bond Fund had a decrease in fund balance due to bond proceeds received in prior years being spent out on various projects.
The Other Governmental Funds had an increase in fund balance due to the increase in the Capital lmprovements Fund. This increase was the result of the Fund being paid back for cashflowing various Capital Projects.
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The following schedule presents a summary of the governmental fund revenues for the fiscal year ended June 30, 2013 and June 30, 2012.
Revenues FY13
Amount Percent of Total
FY12
Amount
lncrease (Decrease)
from FY12
Percent of lncrease
(Decrease)
Property taxes and
assessments
Other city taxes Licenses and permits
Use of money and property
lntergovernm ental
Charges for services
Fines and forfeitures Miscellaneous
Utility contribution in lieu of taxes
$ 24,696,783 5,519,022
1 ,076 ,1 86
1,268,202
12,599,954
3,386,415
449j65 1 ,358,192
$ 23,766,846 5,755,920
1 ,162,401
1,275,402
18,920,930
3,507,339
430,016
1,052,265
$ 929,937 (236,8e8)
(86,215)
(7,200) (6,320,976)
(120,s24)
19,149
305,927
12,000
47.50 o/o
10.62
2.07
2.44
24.23
6.51
0.86
2.61
16.89 % (4.30)
(1.57)
(0.13)
(114.82)
(2.20)
0.35
5.56
0.221,637,000 3.16 1,625,000
$ 51,990,919 100.00 % 57,496,119 _q_(5,50529q_ j_qo.oo %_ The most significant decrease in revenues was in intergovernmental. The decrease was due to the receipt of FEMA disaster assistance payments and IJOBS grant revenues for the new Public Works Complex in FY12. The most significant increase was in property taxes. The increase was due to increased property tax valuation due to the change in the residential rollback factor.
Governmental Revenues FY13
Other City Taxes 10.620/o
Licenses & Permits 2.07%
Use of Money & Property 2.44o/o
Property Taxes 47.50%
Utility Contributions 3j6%
Fines & Forfeitures 0.86%
lntergovernmental 24.23%
Charges for Services 6.51%
Miscellaneous 2.61o/o
-25 -
The following schedule presents a summary of governmental expenditures for the fiscal years ended June 30, 2013 and June 30,2012.
Public Safety
Public Works
Health & Social Services
Culture & Recreation
Cummunity and Economic Development
General Government Debt Service
Capital Projects
$ 8,999,942 10,089,252
172,284
6,449,626
2,646,490
4,684,063
2,956,009
9,544,629
Expenditures
FY13
Amount
Percent
of Total
19.76 %
22.15
0.38
14.16
5.81
10.29
6.49
20.96
FY12
Amount
lncrease
(Decrease)
from FY12
Percent of lncrease
(Decrease)
$ 8,375,158 10,810,336
167,759
6,410,049
2,447,212
4,775,981
3,918,383
11,390,660
624,784 (721,084)
4,525
39,577
199,278
(e1,e18)
(962,374\ ( 1 ,846,031 )
22.69 % (26.1e)
0.16
1.44
7.24
(3.34)
(34.e5)
(67.05)
$
$ 45,542,295 100.00 % $ 48,295,538 $ (2,753,243) 100.00 %
The most significant decrease in expenditures occurred in the capital projects function. This was due to several projects occurring during FY12, including disaster recovery expenditures.
The most significant increase in expenditures occurred in Public Safety. This was due to increased pension costs as set by the State of lowa.
Governrnental Expend itures FY13
Capital Projects 20.960/o
Debt Service 6.49o/o
General Govemment 10.29o/o
Community and Economic
Development 5.81o/o
Public Safety 19.760/o
Public Works 22.15o/o
Culture and Recreation
14.160/o
Health & Social Services 0.38%
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Proprietary Funds
City of Cedar Falls proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
Net position of the Sewer, Refuse and Storm Water funds at the end of the year amounted to $74,065,907. There are net position in the Governmental Activities lnternal Service fund of $15,126,691 .
These funds were established for the City operations that are financed and operated in a manner similar to private business enterprises. The cost of providing the services to the general public is recovered, in whole or in part, through user charges.
The City's enterprise operations are comprised of three separate and distinct activities: Sewer, Refuse and Storm Water. Results of operations for these funds for the years ended June 30, 2013 and June 30, 2012 are as follows:
Sewer Refuse Storm Water 2013 2012 2013 2012 2013 2012
Operating Revenues Operating Expenses
Non-Operating Rev (Exp)
CapitalContributions O perating Transfers, net
Change in Net Position
4,574,181 $ 3,208,163
(387,334)
178,978
1,633,090
2,790,752
$ 2,996,396 2,770,264
9,712
$ 3,328,306 $ 2,488,868
6,079
$ 4,313,923
2,856,740 (460,314)
77,480
5,028,445
6,102,794
210,342
446,186
4,143,060
4,988,577
890,893 $ 728,713
6,983
398,433
567,596
826,986
722,991
6,68 5
62,970
(252,351)
(78,701)
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Proprietary Fund Operating Revenues & Expenses FYI3
I
Sewer Refuse Storm Water
I Operating Revenue ü Operating Expenses
BUDGETARY HIGHLIGHTS
Over the course of the year, the City Council revised the budget two times. These amendments were done in January and May 2013. The amendments were needed due to the City's participation in the Jumpstart, Buyout, Demolition, and Public Assistance Federal & State Programs. At the end of the year, the City did not exceed the amended budgeted amounts in any of its functions.
27
CAP¡TAL ASSET AND DEBT ADMINISTRATION
CapitalAssets At the end of June 30, 2013, the City had approximately $Z¿g million invested in capital assets including police and fire equipment, public buildings, park facilities, roads, bike trails, bridges, water treatment facilities, sanitary sewer lines, and storm water improvements. (See Table following.) This represents a net increase of approximately 911 million or 4.64% over last year.
City of Cedar Falts Capital Assets (net of depreciation)
Gove rnm enta I activities Business activities Total
2013 2012 2013 2012 2013 2012
Land
Buildings
lmprovements other than
buildings
Machinery and
equipment
lnfrastructure Construction
in progress
$ 28,867,975 18,419,051
$ 30,480,556 36,407,208
$ 30,316,450 37,498,908
$ 28,703,869 $ 1,612,581 $ 1,612,581 19,077 ,238 17,988,157 18,421,670
8,195,797 8,666,142 8,195,797 8,666,142
6,674,726
90,353,811
6,954,815
86,908,330
5,324,374
30,831,125
5,457,929
30,874,644
11,999,100
121,184,936
12,412,744
117,782,974
11,425,467 12,264,028 27,958,970 17,725,246 39,384,437 29,989,274 Total $ 163,936,S27 $ 162,574,422 $ 83,715,207 ç 74,092,070 $ 247,652,034 $ 236,666,492
Major capital asset events during the current fiscal year included the following:
. Hwy 58 Pedestrian Bridge.
. Bluff Street Liftstation. o Northern lndustrial Park. . Ridgeway Avenue. o TreatmentFacilityDisinfection.
More detailed information about the city's capital assets is presented statements.
tn Note 3 to the financial
Capital Assets Net of Depreciation Land
12.310/o
Construction ln Progress 15.90%
Buildings 14.70Yo
lmprovements 3.31Yo
Machinery & Equipment 4.85%lnfrastructure
48.93Yo
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Debt
Atyear-end,theCityhad$11,610,000ínoutstandingbondscomparedto$14,910,000¡astyear. Thatisadecreaseof $3,300,000 or 22.13%.
Gity of Cedar Falls Outstanding Debt General Obligation Debt
Govem rnental activities Total
2013 2012 2013 2012
Business-type activities
2013 2012 General obligation
bonds $ Tax increment
financing
Capital loan notes
1,125,000
10,210,000
$ $ 2,335,000 $ 2,755,000 $ 2,æ5,000 $ 2,755,000
575,000
8,075,000 625,000 920,000 575,000
8,700,000
1,125,000
11,030,000
Total $ 8,650,000 $ 11,335,000 $ 2,960,000 $ 3,575,000 $ 11,610,000 $ 14,910,000
The City of Cedar Falls was upgraded to a Aa1 rating from Moody's lnvestor Services for all general obligation issuances. This was a result of Moody's recalibrating their U.S. municipal rating scale.
State statutes limit the amount of general obligation debt a government entity may issue to 5% of its total assessed valuation. As of June 30, 2013, the City's legal debt margin was $1 19,762,511 .
More detailed information about the City's long-term debt is presented in Note 3 to the financial statements.
Gity of Cedar Falls Outstanding Debt FY13
CapitalLoan Notes 75o/o
GO Bonds 20To
TIF Bonds 5%
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ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
During the state legislative session in 2004, the legislature permanently eliminated certain state funding to local governments starting with FY2005 and will continue in all future years. This along with the continuation of the state rollback on residential properties greatly affects the City's general operating fund.
Even with the State reductions, the City Council did establish a balanced budget in the General Fund for Fyj4. The tax levy rate per $1,000 of taxable valuation for FY14 is provided below:
$ 8.10 2.76
.56
.21
.27
.10
.00
.02
$ 12.02
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. The City's discretely presented component units, Cedar Falls Utilities, have separately issued financial statements. lf you have questions about this report or need additional information, contact the Department of Administrative Services, 220 Clay Street, Cedar Falls, lowa 50613.
General levy
Trust and Agency levy
Debt Service levy
Transit levy
Library levy
Liability lnsurance levy
Emergency Management levy
Municipal Band levy
Total levy
30-
dar Falls The Falls Aquatic Center
dar Falls Veteran's Memorial
Park
CiÇ of Gedar Falls, lowa Statement of Net Position
June 30, 2013
Primarv Government
ASSETS Cash Certificates of Deposit Receivables, net of allowance for uncollectible amounts:
Property taxes Other city taxes Accrued interest Special assessments Notes from associated company Customers Human & Leisure services contributions Other
Due from component unit lnternal balances Due from other governments lnventories Prepaids and other assets Restricted assets:
Cash Certificates of deposit US government and agency securities
Capital assets: Land Land improvements Buildings Machinery and equipment lnfrastructure Construction in progress Accum ulated depreciation
Total assets
LIABILITIES Accounts payable Accrued liabilities Due to primary government Note payable to associated company Unearned revenue Long-term liabilities:
Portion due or payable within one year: Bonds payable Compensated absences
Portion due or payable after one year: Bonds payable Compensated absences Net OPEB liability Total liabilities
NET POSITION Net investment in capital assets Restricted:
Streets Debt service Em ployee retirement system TIF Post closure costs
Unrestricted Total net position
$ 61 ,017,101 S 9,732,421
21,855J75 979,860
64,720 44,163
11,977
3,925,645 959,113 850,000
15,340,000 1,615,165
877.012
28,867,975 13,155,356 27,818,640 I 7,1 53,865
163,497,944 11,425,467
(97,982,420\ $ 271,464,781
1,145,520
(15,340,000)
68,69ô
23,933,783 7,964,022
45,857,843 27,958,970
(23,611,9921 $ 79,333,821
Governmental Activities
Business-type Activities Total
$ 70,749,522
21,855,175 979,860
76,697 44,163
3,925,645 2,104,633
850,000
1 ,61 5,1 65 945,708
30,480,556 13,155,356 51,752,423 25,117,887
209,355,787 39,384,437
(121,594,412\ $ 350,798,602
1612,581
$ 2,624,404 't,028,432
21,789,027
2,775,O00 841,889
5,847,236 1,862,099
343, I 39 s 37,111,226
18,531,342 318,846
5,284,684 15,435
't,546,705 76,962
635,000 138,633
2,517,973 352,641
$ 4,171,109 1 ,'t 05,394
21,789,027
3,410,000 980,522
8,365,209 2,214,740
18,531,342 318,846
5,284,684 15,435 9,500
49.267.124 T--m6;413262-
$
343 139 $ 5.267 ,914 $ 42,379,140
$ 1s5,314,591 g 79,677,940 $ 234,ss2,531
54,888,657 $ 234,353,555
See notes to financial statements
-31 -
Component Units Electric Utility
Gas Ut¡litv
Water Utility
Communications Utititv
$ 25,140,464 4,863,620
50,292
738,090 4J25,443
7,088,038 8,165,964
883,693
3,416,O21 6,719,750 2,743,250
1,326,855 4,683
25,745.195 20,862,151
145,179,355 19,422,336
(78,980,669) $ 201,304,895
144,501 136,449 36,307
39,835
2,029,561 652,815
18,388,514 1,146,341
(9,824,603) 2 950 811
548,845-
72,035 1 10,378 24,687
63,466
838,873 376,977
28,285,949 572,606
(8,981,686) $ 26,107,994
1 ,005,1 81
502,746 't,183,414
216,366
259,544 340,000
1,321,858
18,042,813 17,205,059
1,4'10,409 (7,431,0s8)
$ 38,11 1,68s
s 7,782,233 $ 3,704,010 $ 2,341 ,894
5,006 13
3,000,000 1,562,201 419,347 1,709,01 1
4 448
4456883641038
4947263,206
$$ 5,973,191 5,210,181 1,430,000
2,590,000
48,361,300 738,286
$ 1,267,263 567,454
685,821 '165,403
$ 2,685,941
624,408 115,210
2,217,831 584,733
3,738,090
1,595,000
14,119,021 1,047,349
154,492 145,026
$
526 484
86 664 4 $ 1.039.136 S
$ 87,762,796 S 12,432,463 $ 2t,156,185 $ 9,775,113
I 20852,
3 912 673
32-
City of Cedar Falls, lowa Statement of Activities
For the Year Ended June 30, 2013
Proqram Revenues
Functions/Programs
Primary government:
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
lnterest on long{erm debt and related fees
Total governmental activities
Business-Çpe activities:
Sewer
Refuse
Storm Water
Total business-type activities
Total primary government
Component units
Electric Utility
Gas Utility
Water Utility
Communications Utility
Total component units
Expenses Charges for
Services
Operating Grants and
Contributions
Capital Grants and
Contributions
6,479,932
$g 9,491,677 11,909,568
320,864
7,262,110
8,357,058
4,890,409
673,860
204,592
2,400,747
1,632,567
$ 172,475 $
346,880
1,579,284
173
$
$ 3,617,688 2,770,264
728,713
$ 4,911,766 $ 2,098,639
4,574,181
2,996,396
890.893
ö$
$ 6,479,932
$ 178,978
398,433
$ 7,116,665 s 8.461.470 $ 577,411 s 49. 76.524 $ 13,373,235 $ 2,098,639 $7. ,343
$ 44,734,893 9,421,934
3,003,090
13,669,240
$ 70,829,157
52,331,653
10,318,526
3,91 8,126
14,574,001
$ $ $ 4,528,905 570,795
877,513
482,690 $ 81.142.306 $ $ 6,459,903
General revenues:
Property taxes and assessments
Local option sales tax
Hotel/motel taxes
Other c¡ty taxes
Use of money and property
lntergovernmental, not restricted to specific programs
Miscellaneous
Utility contribution in lieu of taxes
Transfers
Total general revenues and kansfers
Change in net position
Net position - beginning
Net position - ending
See notes to financial statements
-33-
Net (Exoense) Revenue and Chanqes in net oosition Units
Governmental Activities Activities
Electric Total Utit¡ty
Gas Water Communications Ut¡lityU
$ (8,645,342) $ (5,225,044)
(320,864)
(4,514,483)
(6,777,774)
(3,257,8421
e28.173\
$ (8,645,342) (5,225,044)
(320,864)
(4,514,483)
(6,777,774)
(3,257,842)
(228,173\
$ (28,969,s22)$ (28,96e,522) $
s
$$ $ $
s $ s
$ 'lj35,471
226,132
560,613
$ $ $ $ $
s1 ,216 s s $ $ (28,969,522) s___1p22216 ß (27. 047.306) $ $ s $
$ $ $ $ 12,125,665 $ $ $ 1,467,387
1,792,549
$ $ $ s 12 125.665 S I $ 1,792,549 1,387,451
$ 1,387,451,387
$ 24,695,940 4,793,027
64't,404
110,173
1,268,202
4,405,345
1,375,437
1,637,000
(1,843,432)
$ 37,08s,096 $ 8,1 1 3,574
226
$
38,886
24,695,940
4,793,027
641,404
110,173
1,307,088
4,405,345
1,375,437
1,637,000
$ $ $ $$
14 060100 790 243 6 006
$ 38,965,414 S '100,790 s 14.060 g 243 $ 1,792,792
23,276,066
$ 25,068,858
$ 6,006 $ 11,918,108
296,501,354
$ 308,419,462
$ 12,226,455 124,053,956
$ 1,481,447 21.7 83,423
$ 136,280,41 1s 234.353.555 $ ,907
-34 -
$
Gity of Cedar Falls, lowa
Balance Sheet Governmental Funds
June 30, 2013
Special Revenue
General Fund
Hospital Fund
TIF Fund
Street Repair Fund
ASSETS Cash
Receivables, net of allowance for uncollectible amounts:
Property taxes Other city taxes Accrued interest Special assessments Human & Leisure services contributions Other
Due from component unit Due from other funds Advance to other funds Due from other governments lnventories
Total assets
LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued liabilities Unavailable revenue Due to other funds
Total liabilities
FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned
Total fund balances
Total liabilities and fund balances
$ 8,387,522 g 4,449,430 $
17,500,966 89,494 20,376
3,925,645 203,097 850,000
1 1,255,000 36,436
241,612
2,045,522
$ 12,357,526
800,872
14,811
192,967543 459
$et 148 $ 16.247 ,889 $ 2,045,522 $ 13,366,176
$ 386,168 $ 368,260
21,463,217 529,03; 2,030,087
$ 707,862
48,643
$
$ 22,217,645 $ 529,038 $ 2,030,087 $ 7s6,505
12,609,671
$ 9,037,503 $ 15.718 ,851 $ 15,435 $ 12,609,671 $sl 148 $ r6,247,889 $ 2.045.522
Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. lnternal service funds are used by management to charge the costs of fleet management, management information
systems and risk management activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.
Accrued interest payable is not due and payable in the current period and, therefore, is not reported in the funds.
Accrued compensated absences and other postemployment benefits, are not due and payable in the current period and, therefore, are not reported in the funds.
Bonds payable are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities
241,612
1,817,084 6,978,807
15,718,851 15,435
$l 176
See notes to financial statements
-35-
Special Revenue Street
Construction Fund
Capital Projects Debt
Service Fund
FEMA Fund
Bond Fund
Other Governmental
Funds
Total Governmental
Funds
$ 5,524,030 $ 315,949 $
960,463
321,513 283,206
$ $ 16,714,455 $
1,348,224 89,494 13,380 44,163
8,987
47,748,912
310,544 843,'t45
1,413,731 4,085,000
103,527 23,407
21,855,175 979,860 48,567 44,163
3,925,645 948,510 850,000
1,413,731 1s,340,000
1,615,165 548,225
$ 6,128 ,749 $ 1 ,276,412 $ 310,544 $ 843,145 $ $ 95,317,953
$ $81,671 34,302
957,566 49,042 392,035
93,162 1,000,904
167,28s $ 10,016
1,488,647 20,792
2,135,390 412,578
26,659,402 1,413,731
$ 398,637 $ 393,767 $
$ r 15,973 S 957,566 $ 839,714 $ 1,487,833 $t 740 $ 30,621,101 283,206
5,729,570 318,846 23,407
6,761,587 832,264
14,559,803 (1e,433)
548,225 25,435,109 16,551 ,1 15 16,376,887 5,785,516(529,170) (644,688)
$ 6,012J76 $ 318,846 529 170 $ $ 6,128 ,749 $ I ,276,412 $ 310,544
$ 15722 628 $ 64,696,852 $ 843,145 $
161,247,257 4,870,375
15J26,691
(18,017)
(2,s47,367) (8,622,236)
36
$ 234,353,555
City of Gedar Falls, lowa statement of Revenues, Expenditures, and changes in Fund Balances
Governmental Funds For the Year Ended June 30, 2013
Special Revenue
General Fund
Hospital Fund
TIF Fund
Street Repair Fund
Revenues: Property taxes and assessments Other city taxes Licenses and permits
Use of money and property lntergovernmental Charges for services Fines and forfeitures Miscellaneous Utility contribution in lieu of taxes
Total revenues
Expenditures: Current:
Public safety Public works Health and social services Culture and recreation Community and economic development General government
Debt service Capital projects
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses): Transfers: Transfers in Transfers out
Total other financing sources (uses)
Net change ín fund balances
Fund balances, beginning lncrease (decrease) in reserve for inventories
Fund balances, ending
$ 22,802,718 $ 601,464 $ 7.6 79,979 $ 5.455
$ 15,121 ,936 414,348
I ,076,186 79,054
829,802 3,337,424
283,084 23,884
1,637,000
$ 7,679,979 $$
600,922
542
4,793,027
46,875
615,890
,792
$$$ 7,665,379 $ 1,464,790
14,750 6,094,248
903,259 4,684,063
5,702,990 157,534
$ 20, 826,489 $ r sz 534 S
$ 1,976,229 $ 443,930 $ 2.679,979 $
$ 633,942 $ (2,583,045)
$ 766,990 $ (8,450,736)
$ s,702,990
7,1 98)
(814,380)
949 103 $1 $ (7,683,746) $ 814,380) $ 27,126 $
8,949,454 60,923
443,930 $
15,274,921
(3,767) $ 19,202
(1,061,578)
13,671,249
$ 9,037,503
See notes to financial statements
-37 -
$ r 5,718,351 s 15,435 $ 12. 609,671
Special Revenue Street
Construction Fund
Capital Proiects Debt
Service Fund
FEMA Fund
Bond Fund
Other Governmental
Funds
Total Governmental
Funds
$ $ $ $845,493 $ 3,736
1,049,375 $ 307,911
538,132 1,643,577
48,991
166,081
637,588
24,696,783 5,519,022 1,076,186
1,268,202 12,599,954 3,386,415
449,165 1,358,192
1,637,000
3,804,757
3,346
4,464,326 3,219
1,857,492
76,942
$$
$
$
103 $'849,22994,464 ,326 $ 1,937,65s $ 4,391 ,655 $ st,990,919
$ $ 1,334,563 $ 233,078
8,999,942 10,089,252
172,284 6,449,626 2,646,490 4,684,063 2,956,009 9,544,629
2,688,394
2,956,009
355,378 1,743,231
1,764,779 3,382,280 4,397,570 $ 2,688,394 $ 2,956,009 $ 1,764,779
$ 1,119,709 $ (2,106.780) $ 2,699,547
$ 3,382,280 $ 8, 063,820 $ 45,542,295
$ (1,444,627\ $ (3,672,165) $ 6.448,624
$ 5,495 $ 2,163,750 (280,8e0)
$ 3,574,665 $ (2,524,511)
1,060,704 $ (211,957)
5,092,148 $ (111,350)
13,297,694 (14,976,86s)
$ (275,3e5) $ 2,1 63,750 $ 1 ,050,1s4 $ 848,747 $ 4,980,798 $ (1,679,175) $ 844,314 $
5,121,413 47,049
$ 3,749,701 $ (4,278,871)
(5es,880) $
(48,808) 20,846,343 2,652
59,816,779 110,624
56,970
261,876
1,308,633 g 4,769,449
318,846 $ (529,170) $$ 6,012/76 $
-38
688) $ 22,t57,628 $ ,852
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Government funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures overthe life of the assets. capital ouflay expenditures exceeded depreciation expense in the current year, as follows:
Net acquisition of capital assets Depreciation expense
Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues and are deferred in the governmentalfunds, as follows:
Other
Proceeds from issuing long-term liabilities provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of net posítion. 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 repayments exceeded issues, as follows:
Discount on general obligation bonds Repaid Accrued interest
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 Other postemployment benefìts Change in inventory
lnternal service funds are used by management to charge the costs of fleet management, management information systems and risk management activities to individual funds. The net revenue of certaín activities of internal service funds is reported with governmental activities
Change in net position of governmental activities
City of Gedar Falls, lowa Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2013
8,392,833 16. 795,933)
1 926
38,262 2,685,000
4 572
1,194 (67,810) 110,623
$ +,t69,449
1,596,900
(183,926)
2,727,834
44,007
(840,6e0)
See notes to financial statements
-39-
$ 8,113.574
City of Gedar Falls, lowa Statement of Net Position
Proprietary Funds June 30, 2013
ASSETS Current assets:
Cash Receivables, net of allowance for uncollectible amounts:
Accrued interest Other
lnventories Total current assets
Noncurrent assets: Capital assets:
Land Buildings Machinery and equipment lnfrastructure Construction in progress Accu mulated depreciation
Total noncurrent assets Totalassets
LIABILITIES Current liabilities:
Accounts payable Accrued liabilities Bonds payable - due within one year Compensated absences - due within one year
Total current liabilities Noncurrent liabilities:
Bonds payable- after one year Advance from other funds Compensated absences - after one year
Total noncurrent liabilities Total liabilities
NET POSITION Net investment in capital assets Restricted for post closure costs Unrestricted
Total net position
B usiness-type Activities - Enterprise Fund
Sewer Fund Refuse Fund
$ 4,943,465 $ 2,740,373
6,921 741,598 40 937
5 73 921$g
2,916 366,850
27 759 137 898
$ zzs,aza 11,595,276 5,506,598
29,629,206 27,921,795
(16,716,752\ $ 58,715,981 $ 64,448,902
$ 1,487,753 53,530
635,000 76,255
$ 2o4,B4s 12,338,507 2,457,434
14,666 (1,969 ,065)
$ 13.046 ,387 184 85
$ 46,596 19,291
1
55,451 2 252 538 $ 't21,338
$ 2,517,973 15,340,000
119,479
$
217,041 $ 17,977 ,452 $ 217,041 $ 20,229,990 $ 338,329
$ 54,678,714 $ 13,046,397 9,500
1 459 802 790 019 fi 44,218,912
See notes to financial statements
-40-
$ 15,845,906
Business-type Activities - Governmental
Activities - lnternal
Service Funds Enterorise Fund
Storm Water Fund Total
fi 2,048,583 $ 9]32,qZt $ 13,268,189
2,140 37,072
I'1,977 1,145,520
68,696
16,153 10,603
328,787 $ 2,087,79s $ to, 958,614 $ 13,623,732
$ 627,858 $ 90,302
7,649,361 16,229,637
22,519 (4,926,175\
$ 11,952,839 $ 14,040,634
$ 12,356 4,141
$
$ 1,612,581 23,933,793 7,964,022
45,857,843 27,959,970
(23,611,992\ $ 83,715,207 $ 94,673,821
(5,050,093) $ 2,689,570 $ 16,313,302
1,546,705 76,962
635,000 138,633
489,014 597,837
$
$ 55,154 55 154
$ t,186,611
$
6,927
$
$ 23,424 397 300
$ 2,517,973 15,340,000
352,641 8 18,210,614 $ 20,607,914
16 12'l $ 16,121 $ s9,s4s
$ 11,952,839
2,048,250 $ 14,001,089
$ 2,689,570
1 437 121 $ 15,126,691
-41 -
City of Cedar Falls, lowa statement of Revenues, Expenses, and changes in Fund Net position
Proprietary Funds Forthe Year Ended June 30,2013
Business-type Activities - Enterprise Funds
Sewer Fund Refuse Fund
Operating revenues: Charges for services Other
Total operating revenues
Operating expenses: Personal services Contractual services Supplies and equipment Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses): lnterest revenue lnterest expense Gain (loss) on disposal of equipment
Nonoperating revenues (expenses), net
lncome before contributions and transfers
Capital contributions Transfers in Transfers out
Contributions and transfers, net
Change in net position
Net position, beginning
Net position, ending
$ 4,572,082 2,099
$ 2,4s0,482 545,914
181 $ 2,996,3964 574
$ 1,192,506 782,117 279,469 954,072
$ 1,128,444 1,140,222
84,352 417,246
,264$ 3,208,163 $ 2]70 1 366 018 $ 226,132
$ 22,191 (409,525)
$ 9,712
$ (387 ,334) $ 9,712
$ 978,684 $ 235,844
$ 178,979 2,431,073 (797,983)
$ 343,792
(133,450)
$ 1.812,068 $ 210,342
$ 2,790,752 $ 446,196
41,429,160 15,399,720
See notes to financial statements
-42-
_$ 44218,912 _qj_5,845,906
Storm Water Fund
Business-type Activities - Enterprise Funds
Governmental Activities- lnternal
Service FundsTotal
$ 823,814 67,079
7,846,379 615,092
$ 6,311,468 204,351
$
$ 890,893 $ 8,461 ,470 $ 6,51s,819
$ 223,050 97,573 17,607
390,483
2,544,000 2,019,912
381,427 1,761,9O1
$ 1,413,994 4,235,561 1,147 ,335
41g,Og2
$
$ 728,713 $ 6,70r,140 $ 7,214,872 $ 162j80 $ 1 754 330 $ (699,053)
$ 6,993 $ 3g,gg6 (409,525)
$ s2,7s7 (30,137)
$ 6,983 $ (370,639) 22 620
$ 169,163 $ 1.383 $ (676,433),691
$ 398,433 $ 577,411 $ 2,774,965 (931,433) (164,257)
$ 398,433 $ 2,420,943 164 257
$
$74
567,596$3,904,534$(940,690)
13,433,493 70,261,373 15,967,391 $ 15,126,691$ 14,001,099 065
-43-
City of Cedar Falls, lowa Statement of Cash Flows
Proprietary Funds For the Year Ended June 30,2019
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services Payments to suppliers Payments to employees
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds Transfers to other funds
Net cash provided by (used for) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Net acquisition of property and equipment Capital contributions Advance from other funds Principal paid on debt maturities Payments on advance from other funds lnterest paid
Net cash (used for) capital and related financíng activities CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments
Net increase (decrease) in cash
CASH BALANCES, Beginning CASH BALANCES, Ending
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss) Adjustments to reconcile operating income
to net cash provided by operating activities: Depreciation Change in assets and liabilities: (lncrease) decrease in:
Customer and other receivables lnventories
lncrease (decrease) in accounts payable, accrued and other liabilities Net cash provided by operating activities
See notes to financial statements
Business-type Activities -
Enterprise Funds Sewer Fund
$ 4,490,696
(323,299) (.173.442 ) 2 I 945
$ 2,431,013 . (797,993)
$ 1.633 ,090
$ (10,622,149) 17g,g7B
7,700,000 (615,000) (560,000) (383 ,166)
$ (4,301.336
21 479$
$ 1,366,01g
954,072
(83,079) 3,406
753.527
-44-
$2 945
Busíness-type Activities - Enterprise Funds
Governmental Activities -
lnternal Service Funds
6,290,399 (5,029,794) (1.0 04,492\
113
(164,257\
Refuse Fund
Storm Water Fund Total
$ 2,957,493 $ 985,277 $ 8,333,456 $ (1,256,072) (1,697,960) (1.107 ,889) 2 500 888
$ 210 342 $ $ 1,843,432 $ (164,257)
$ (243,002) $
(108,589) (219,557\
$ 593,532 $ 557,131 $ 4.144,608 $ 257
$ 343,792 (133,450)
$ $ 2,774,865 $ (931 ,433)
$(
(519,789) 398,433
243,002) $ (121,356)
I '156 $ 6,T04 $ 442,479
$ (11,384,939) 577,411
7,700,000 (615,000) (560,000) (383,166)
$ (4,665,694)
$ (213,717)
$eß ,717\ $
$ s7o,o2g 2,170,345
$ 2,740,373
$
$
37,339 $ 52,608
606 1041
1,359,685
8,372,736 $ 9,732,421
$ (68,253) 13,336,442
$ 13,268,189$ 2,048,s83
$ 226,132 $ 162,180 $ 1,754,330 $ (699,053)
417,246 390,483 1,761,901 419,092
(52,442) (3,702)
(5,616)
6 298 10 084
(141,136) (2e6)
769,909
233,249 (92,015) 396 851
$ $ 4,144,609 $593 532 $ 557,131
-45-
257,113
dar Falls Oveffnan Park
NOTE I
NOTE 2
CITY OF CEDAR FALLS, ¡OWA NOTES TO FINANCIAL STATEMENTS
INDEX
SUMMARY OF SIGN¡FICANT ACCOUNTING POLICIES
A. Reporting Entity B. Government-wideand Fund FinancialStatements C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation D. Assets, Liabilities, and Net position or Equity
STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetarylnformation B. Deficit Fund Balances
NOTE 3. DETA¡L NOTES ON ALL FUNDS
A. Deposits and lnvestments B. Receivable C. CapitalAssets D. Leases E. Long{erm Debt F. Long-termLiabilities G. lnterfund Balances H. lnterfundTransactions
NOTE 4. OTHER NOTES
A. Retirement Systems B. Due To/From Component Unit C. Related Party Transactions D. Risk Management E. Commitments and Contingencies F. New GovernmentalAccounting Standards Board (GASB) Standards
-46-
Note 1 Summary of Significant Accounting Policies
Reporting Entity
The City of Cedar Falls is a municipal corporation governed by an elected mayor and seven-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The discretely presented component units are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the City. The discretely presented electric, gas, water, and communications utilities each have a December 31 year end.
Discretely Presented Component Unls. The electric, gas, water, and communications utilities serve all the citizens of the City and are governed by a five-member board appointed by the mayor of the City of Cedar Falls. The rates for user charges and bond issuance authorizations are approved by the City Council, and the legal liability for the general obligation portion of the Utilities' debt remains with the City.
Complete financial statements for the Utilities may be obtained at the administrative offices Cedar Falls Utilities Utility Parkway Cedar Falls, lowa 50613
Jointly Governed Organizations. The City also participates in several jointly governed organizations for which the City is not financially accountable or that the nature and significance of the relationship with the City are such that exclusion does not cause the City's financial statements to be misleading or incomplete. City officials are members of the following boards and commissions: Black Hawk County Consolidated Public Safety Communications Center, Black Hawk County Solid Waste Management Commission, Black Hawk County Criminal Justice lnformation Systems and Metropolitan Transit Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component uníts. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business{ype activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
The statement of net position presents the assets and liabilities, with the difference reported as net position. Net position are reported in three categories.
Net investment in capital assefs consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds, notes, and other debt that are attributed to the acquisition, construction, or improvement of those assets.
Restricted net position result when constraints placed on net asset use are either externally imposed or imposed by law through constitutional provisions or enabling legislation.
A.
B.
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c.
Unrestricted net position consist of net position that do not meet the definition of the two preceding categories. Unrestricted net position often have constraints on resources that are imposed by management, but can be removed or modified.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as other governmental funds.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financíal statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
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 avaílable. 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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal períod. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchíse taxes, licenses, interest, fines and forfeitures, and special assessments are susceptible to accrual. Sales taxes collected and held by the state at year-end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred, all other grant requirements have been met, and the criteria for accrual has been met.
The City reports the following major governmental funds:
The general fund is the City's primary operating fund. lt accounts for all financial resources of the general government, except those required to be accounted for in another fund.
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The hospiúal fund accounts for the lease income derived from Sartori Memorial Hospital.
The TIF fund accounts for property taxes received through tax increment financing.
The sfreef repair fund accounts for local option sales tax received from the state to be used to repair streets.
The sfreef construction fund accounts for state revenues allocated to the City to be used to maintain and improve the City's streets.
The debf service fund accounts for the servicing of general long-term debt not being financed by proprietary funds.
The FEMA fund accounts for the proceeds and expenditures related to disaster assistance and recovery.
Ihe bond fund accounts for all bond proceeds not related to proprietary funds and all the related capital projects associated with the bond sales.
The City reports the following major proprietary funds:
The setøer fund accounts for the operations and maintenance of the City's sanitary sewer system.
The refuse fund accounts for the operations and maintenance of the City's garbage collection.
The sform water fund accounts for the operations and maintenance of the city's storm water system.
Additionally, the City reports the following fund type:
lnternal service funds account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. These include data processing, vehicle maintenance, health insurance, health insurance severance, payroll, and risk management activities.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments between the government's refuse and sewer functions and various other functions of the government. Elimination of the charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. lnternally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
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 refuse fund, sewer fund, and the government's internal service funds are charges to customers for services. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed.
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D. Assets, Liabilities, and Net position or Equity
1. Deposr'fs and lnvestments The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
State statutes authorize the City and the Utility to invest publíc 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. lnvestments of the City and the Utility are reported at fair value. Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with the other funds. These funds are Street Construction, Debt Service, and the Cemetery Perpetual Care Funds.
2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans).
All trade and property tax receivables are shown net of an allowance for uncollectibles.
The County Treasurer bills and collects taxes for the City. Taxes for the year ended June 30, 2013, were certified with the County during the preceding fiscal year and were due in two equal installments by September 30, 2012 and March 31,2013. Property tax receivable is recognized on the levy or lien date, which is the date the tax asking is certified by the City to the County Board of Supervisors. Any County collections on the 2012-2013 tax levy remitted to the City within sixty days subsequentto June 30,2013, are recorded as propertytax revenues. Taxes notcollected and remitted to the City within sixty days subsequent to June 30, 2013, are delinquent and have been recorded as receivables and deferred revenue.
By statute, the City is required to certify its budget in March 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 and will not be recognized as revenue until the year for which it is levied.
3. Inventories and Prepaíd ltems lnventories in the governmental fund types are valued at cost using the first-in/first-out method. The costs of governmental fund type inventories are recognized as expenditures when purchased. lnventories in the proprietary fund types and component unit are valued at the lower of first-in/first- out cost or market, except for fuel inventories of the Electric Utility, which are valued at the lower of last-in/first-out method cost or market. The cost of proprietary fund type and component unit inventories are recognized as expenses when consumed.
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Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
4. Restricted Assefs
Certain assets of the component units are restricted because of applicable bond provisions
5. Capital Assefs Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide statement of net position. Capital assets are defined by the government as equipment with initial, individual cost of $2,500 or greater or a purchase of land, land improvements, building, or infrastructure with a value of $5,000 or greater and an estimated useful life of greater than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded as estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. lnterest incurred during the construction phase of capital assets of business{ype activities is included as part of the capitalized value of the assets constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Computer Equipment 5 years Streets 30 years Equipment 10-30 years Buildings 40-50 years Office Equipment 10-30 years Land lmprovements 20-40 years Vehicles 10-20 years Storm Water 40 years Parking Lots 15 years Bridges 45 years Furniture 20 years Lift Stations 50 years Large Vehicles 20-40 years Sewer 50 years Traffic Signals 20 years Historic Buildings 100 years
6. Compensated Absences City employees accumulate vacation, sick leave, and comp-time hours for subsequent use or for payment upon termination, death, or retirement. Earned vacation pay and a maximum of one-half of all unused sick leave may be paid upon termination of employment.
All severance is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental fund financial statements
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only for employees that have resigned or retired. The compensated absence liability has been computed based on rates of pay in effect on June 30, 2013.
7. Long-term Obligations ln the government-wide financial statements and proprietary fund financiaf statements, long{erm debt and other long{erm obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight- line method. Bonds payable are reported net of the applicable bond premium or discount.
ln the fund financial statements, governmentalfund types recognize bond premium and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. lssuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
8. Fund Balance Policies Beginning with fiscal year 2011, the City implemented GASB Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions." This Statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government's fund balances more transparent. The following classifications describe the relatíve strength of the spending constraints: ¡ Nonspendable fund balance - amounts that are not in spendable form (such as inventory) or
are required to be maintained intact.
Restrícted fund balance - amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation.
Committed fund balance - amounts constrained to specific purposes by the City itself, using its highest level of decision-making authority (i.e., City Council by adoption of an ordinance prior to the end of the fiscal year). To be reported as commítted, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint.
Assigned fund balance - amounts the City intends to use for a specific purpose. lntent can be expressed by the City Council or by an official or body to which the City Council delegates the authority. The City Council has by resolution authorized the Finance Manager to asiign fund balance.
a
a
a
o Unassigned fund balance - amounts not included in other spendable classifications reported. The City would typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reseryes the right to selectively spend Unassigned resources first to defer the use of these other classified funds.
As of June 30,2013, fund balances are composed of the following:
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Fund Balance Classification
Non spen dable lnventory
Restricted
Puroose
TIF Debt Street Repair Road Use Tax Debt Service Community Block Gmnt Housing Assistance Employee Retireme nt S ystems Visitors & Tourism Cemetery Perpetual Care
Health Services Parking
Cultural Services Recreational Services Capital Projects
Fund
General Street Construction Non-major Governmenta I Funds
TIF Street Repair Street Construction Debt Service Non-major Governmental Funds Non-major Governmental Funds Non-major Governmenta I Fu nds Non-major Governmental Funds Non-major Governmental Funds
Hospital
Non-major Governmental Funds
General General Non-major Governmental Funds
Amount
241,612 283,206
23,407
$ sqa,zzs $ ts,+es
12,609,671 5,729,570
318,846 103,007
567,201 5,284,684
450,481 356,214
$ 25,435,109 $ t 5,71 8,8s 1
832,264 $ t6,s51,11s $ 140,093
1,676,991 14,559,803
$
$ 16,376,887
The City Council has adopted a mínimum cash reserve policy. Those amounts are as follows General Fund: 15-25% and preferably at the 2l-25o/olevel Refund Fund: 20-30%, but no less than $500,000. Sewer Fund: 65-75%, but no less than $1,500,000. Street Fund: 20-30%, but no less than $1,000,000. Storm Water Fund: 10-20%, but no less than $200,000
Note 2. Stewardship, Gompliance, and Accountability
Budgetary information
The City prepares and adopts an annual budget on a function basis for the City as a whole, rather than at the fund level, as prescribed by lowa statutes. The state of lowa mandates that annual budgets for the fiscal year beginning July 1 be certified to the County Auditor no later than March 15 preceding the beginning of the fiscal year. The review and adoption of the budget for the City is in accordance with state laws and City budget procedures as stated in City Code, recodified November 1971, and amended by ordinance adoption thereafter. Budget proposals for all operating department requests are conducted by the Department of Administrative Services who prepares, for the Mayor's consideration, a preliminary budget by January 1 of each year for the coming fiscal year. The budget proposal presented to the City Council by the Mayor and Director of Administrative Services is a complete financial plan for the upcoming fiscal year. The proposal is submitted on or before the first Monday of February. The City Council holds various budget meetings with the Mayor, Director of Administrative Services, department heads, and boards and commissions, as well as holding a public hearing prior to adopting the budget. The Council adopts the budget by resolution and certifies it to
Committed
Assigned
A.
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the County Auditor by the 1Sth of March preceding the beginning of the fiscal year. This budget becomes the appropriation for operations of the City.
The adopted budget presents expenditures in nine functions- 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. The legal level of control (the level on which expenditures may not legally exceed appropriations) is the function level. Appropriations as adopted lapse at the end of the fiscal year.
Amendments to the City budget are considered annually as funding sources are availabfe. Management is not authorized to amend the budget or to make budgetary transfers between functions without the approval of the City Council. An additional levy of property taxes is not allowed by state law. The City budget for the current year may be amended for any of the following purposes:
. To permit the appropriation and expenditure of unexpended, unencumbered fund balances on hand at the end of the preceding fiscal year.
. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation.
To permit transfers between funds as prescribed by state law
To permít transfers between functions.
The Council adopts the amended budget by resolution and certifies it to the County Auditor by May 31 of the budget year. The amended budget becomes the appropriation for operations of the City. The City Council adopted two budget amendment resolutions during the year ended June 30, 2013.
Encumbrance accounting is employed in governmentalfunds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balance and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year.
Due to the emphasis placed on monitoring budgets, as a result of limited resources to provide City services, major classifications such as personal services, capital outlays, contractual services, and commodities are monitored throughout the year by the Department of Administrative Services.
Monthly reports are prepared by department and activity. Any major deviations must be approved by the Department of Administrative Services and the Mayor. While the legal level of control is the program level of expenditure, departments are responsible for not expending more than the amount of the appropriation for each activity within their area of responsibility, unless approved by the Department of Administrative Services and the Mayor.
The City budgets all receipts, disbursements, and interfund and intrafund transfers on the cash basis plus recorded accounts payable. The budget amounts included in this report are the final cash basis budget for the year for all funds excluding the trust and agency funds, which are not budgeted for by the City. Budgeted interfund transfers and intrafund transfers have been eliminated in the following statement of program disbursements - budget and actual.
lndividual fund budgets are, in all cases where appropriations are required, the same as the appropriation amounts. ln the case of the General Fund and most of the special revenue funds, unexpended budgeted amounts lapse at the end ofthe budget year.
a
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B. Deficit Fund Balances The FEMA fund, a major capital projects fund, has a deficit fund balance of $529,170. The deficit fund balance is expected to be recovered through future federal and state reimbursements. The Bond fund, a major capital projects fund, has a deficit fund balance of $644,688. This deficit fund balance is expected to be recovered through future bond sales. The Sidewalk Assessment fund, a non-major capital projects fund, has a deficit fund balance of $19,433. The deficit fund balance is expected to be recovered through future property tax special assessments.
Note 3. Detailed Notes On All Funds
Deposits and Investments
The City's deposits in banks and credit unions at June 30, 2013 were entirely covered by federal depository insurance, collateralized with securities or letters of credít held by the City or the City's agent in the City's name or by the State Sinking Fund in accordance with Chapter 12C of the Code of lowa. This chapter provides for additional assessments against the depositories to insure 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 evídences 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.
Cash balances as of June 30, 2013, consist of the following:
Cash - unrestricted $ 70,749,522
The City had no investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 3, as amended by Statement No. 40.
A reconciliation of cash as shown on the combined balance sheet for the primary government follows:
Carrying amount of deposits $ 70,749,522
A.
Cash - Governmental Activities Cash - Business-type Activities
Total
$ 61,017,101 9,732,421
$ 70,749,522
lnterest Rafe Rrsk: The City's investment policy limits the investments of operating funds (funds expected to be expended in the current budget year or within fifteen months of receipt) in instruments that mature within 397 days. Funds not identified as operating funds may be invested in instruments with maturities longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
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Credit Rrsk: The City's investment policy limits investments in commercial paper and other corporate debt to the top two highest classifications. The City did not invest in any commercial paper or other corporate debt during the year.
Concentration of credit risk: The City's investment policy does not allow for a prime bankers' acceptance or commercial paper and other corporate debt balances to be greater than ten percent of its total deposits and investments. The policy also limits the amount that can be invested in a single issue to five percent of its total deposits and investments. The City held no such investments during the year.
Custodial credit risk - deposifs: ln the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The City's deposits are entirely covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of lowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds.
Custodial credit risk - investmenfs: For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outsíde party. The City did not hold any investments during the year.
The component units' deposits were entirely covered by Federal depository insurance, collateralized with securities or letters of credit held by the entity or its agent in the entity's name, or by a multiple financial institution collateral pool in accordance with Chapter 12C of the Code of lowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds.
Cash balances as of December 31,2012, consist of the following:
Cash - unrestricted Cash - restricted
$ 25,140,464 $ 3,416,021
7,782,233
163,206
Communications Utility
$ 2,341,894
259,544
Electric Utility
Gas Utility
$ 28,556,485 $ 7,945,439 $ 3,776,504 $ 2,601,439
A reconciliation of cash and investments as shown on the statement for net position for the com ponent units follows:
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Carrying amount of deposits
Carrying amount of certificates
Carrying amount of investments Total
Electric Utilitv
$ 28,556,485 1 1,583,370
2,743,250
Gas Utilitv
$ 7,945,439 $
Water Utilitv
3,776,504
Communications Utilitv
$ 2,601,438 340,000
1 ,321,858 $ 42,883,105 $ 7,945,439 $ 3,776,504 $ 4,263,296
Cash
Cash - Restricted
lnvestments:
Certificates of deposit
Certificates of deposit -
restricted
U.S. government and agency
securitie s - restricted Total
$ 25,140,464 $ 3,416,021
7,782,233 $ 163,206
3,704,010 $ 72,494
2,341,894
259,544
4,863,620
6,719,750 340,000
2,743,250 I ,321,858 $ 42,883,105 $ 7,945,439 $ 3,776,504 $ 4,263,296
B. Receivable On June 30, 2013, the City has recorded a $3,925,645 receivable for library, recreation, and cultural contributions held by the Cedar Falls Civic Foundation. The funds will be used to support library services, recreation services, and the cultural center, therefore is reported as an asset to the General Fund.
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c. CapitalAssets
Capital asset activity for the year ended June 30, 2013 was as follows
Primary Government
Beginning
Balance lncreases Decreases
Ending
Balance
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not
being depreciated
Capitalassets, being
depreciated:
Buildings
Land improvements
Machinery and equipment
lnfrastructure
Total capital assets, being
depreciated
$ 28,703,869 $ 12,264,028
164,106 $ 3,917,060
$ 28,867,975 11,425,4674,755,621
$ 40,967,897 $ 4,081,166 $ 4,755,621 g 40,293,42
$ 27,802,237 $ 13,116,321
16,799,232
154,932,742
16,403 $ 39,035
713,847
8,565,202
$ 27,818,640 13,155,356
17,153,865
163,497,944
359,214
I 212,650.532 $e 3U,487 $ 359,214 $ 221,625,805 Less accumulated depreciation for:
Buildings $ Land improvements
Machinery and equipment
lnfrastructure
8,724,999 $ 4,450,179
9,844,417
68,024,412
674,590 $ 509,380
910,322
5,119,721
$ 9,399,589 4,959,559
10,479,138
73,14ø',133
275,600
Totalaccumulateddepreciation $ 91,044,007 $7 013 $ 275,600 $ 97,982,420 Total capital assets, being
depreciated, net $ 121,606,52s $ 2,120,474 $ gg,Or+ $ 123,643,385 Governmental activities cap ital
asset, net $ 162,574,422 $ 6,201,640 $ 4,839,235 $ 163,936,827
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B usiness-type activities: Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated
Buildings
Machinery and equipment lnfrastructure
Total capital assets, being depreciated
Less accumulated depreciation for Buildings
Machinery and equipment lnfrastructure
Total accum ulated depreciation
Beginning
Balance lncreases Decreases
$ t ,612,581 $ $ $ t ,612,581 27,958,97017, 725,246 10,332,560 98,836
$ 1s,337,827 $ 10,332,560 $ ge,ss6 $ 29,571,s51
Ending
Balance
$ 23,873,450 $ 7,784,472
44,949,632
60,333 $ 182,670
908,211
$ 23,933,783 7,964,022
45,857,843
3,120
$ 76,607,554 $ 1,151 ,214 $ 3,120 $ 77,755,648
3,120
$ 21,853,311 $ 1,761,801 $ 3,120 $ 23,611,992 Total capital assets, being
depreciated, net 54 754,243 $ (610,587) $ $ s4,143,656 B usiness-type activities capital
assets, net $ 74,092,070 $ 9,721,973 $ 98,836 $ 83,715,207
Depreciation expense was charged to functions/programs of the primary government as follows:
G overnmental a ctivities: Public safety $ 103,320 Public works 5,202,955 Health and social services 148,578 Culture and recreation 1,102,432 Community and economic development 79,678 General government 158,969 Capital assets held by government's internal service funds are charged to
the various functions based on their usage of the assets 418,081 Total depreciation expense - governmental activities $ 7,214,013
$ 5,451,780 $ 2,326,543
14,074,988
493,846 $ 316,225
951,730
$ 5,945,626 2,639,648
15,026,718
B usine ss-type activ ities
Sewer
Refuse
Storm Water Total depreciation expense - business-type activities
$ 954,O72
417,246
390,483
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$ t ,761 ,801
Construction Com m itments
The City has active construction projects as of June 30,2013. At year-end the City's commitments with contractors are as follows:
Project Expended Remaining Authorization to Date Commitment
Big Woods Campground Bluff St. Liftstation Center St. Bridge Disinfection
Downtown Levee lmprovements Dry Run Creek Watershed E. Seerly Bridge
Hwy 58 Pedestrian Bridge Leversee Rd. & Lonetree Rd. Northern lndustrial Park Prairie Parkway Extension Sewer Rehab
Street Reconstruction Street Restoration
Traffic Signal Traffíc Study Union Rd. Trail
UNlWetlands West Viking Road
$ zg,88z 7,229,500
800,661
22,345,155 256,000
112,478 112,959
2,812,546 1,064,388
1,205,000
104,009
329,539
2,287,375 1,599,965
254,763 52,500
328,971
6s,000
302,300
$ l+,381 6,928,358
114,444
19,920,951
224,391
4,434 76,451
1,585,773
442,299
1,131,023 94,038
764,762 791,182 216,025 36,678
24,906 260,210
$ 5,500 301,142
686,217
2,424,204
31,619
108,044
36,508
1,226,773
622,099
73,977
9,970
329,539
1,522,613
808,683
38,738
15,822
328,971
40,094
42,090
$ 41,341,894 $ 32,690,302 $ 8,651,592
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Discretelv Presented Comoonent Units
Activity for the Electric Utility for the year ended December 31, 2012, was as follows
Beginning Bala nce lncreases Decreases
Ending Balance
Capital assets, not being depreciated:
Land
Construction in progress Total capital assets, not
being depreciated
Capital assets, being depreciated: Buildings Land improvements Machinery and equipment lnfrastructure Total capital assets, being
depreciated
Less accumulated depreciation for: Buildings Land improvements Machinery and equipment I nfrastru cture
Total capital assets, being depreciated, net
Electric Utility capital assets, net
$ t ,326,855 I,787 ,180
$ 11,114,035
$ $ t ,326,855 19,422,33616,439,850 6,804,694
$ 16,439,850 $ 6,804,694 $ 20J49,191
$ 24,821,423 $ 4,683
21 ,031,550 141 ,291,960
1,043,433
1,384,816 4,918,137
$ r19,661 $ 25,745,195 4,683
1,554,215 20,862,151 1,030,742 145,179,355
$ 187,149,616 $ 7,346,386 $ 2,704,618 $ 191,791 384
$ $ 232,380 $ 21
1,760,562
9,844,430 4,550
11,342,420 55,226,371 2,891 647
117,235
I ,554,166 650,311
$ 9,959,575 4,571
11,548,816 57 ,467,707
$ 76,417,771 $+, 884,610 $ 2,321,712 $ 78,980,669
$ I 10,731 ,845 g 121,845,880
ç 2,461,776 $ 382,906 * $ 112.81 0,715 $ 18,901,626 $ 7,187,600 $ 133 906
*Cedar Falls Utilities uses FERC utility accounting which allows for depreciation calculated using the composite straight-line method. Under this method it is common for accumulated depreciation deletions to exceed the cost removed.
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Activity for the Gas Utility for the year ended December 31,2012 was as follows:
Beginning
Balance lncreases Decreases Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Machinery and equipment lnfrastru cture
Total capital assets, being depreciated
Less accumulated depreciation
Buildings
Machinery and equipment
lnfrastru cture
Ending
Balance
$ 39,835
397,197
$
1 ,313,761 564,617
$ 437,032 $ 1,313,761 $ SO+,0r7 $ 1,186,176
$ $ gg,egs 1 ,146,341
$ 1,968,345 $ 733,725
18,034,690
61,216 $ 8,234
495,168
$ 2,029,561 652,81 5
18,388,514
89,144 141,344
$ 20,736,760 $ 564,618 $ 230,48S $ 21,070,890
$ 317,608 $ 326,980
8,655,529
47,685 $ 40,854
673,310
$ 365,294 278,690
9,180,620
89,144
148,219
$ 9,300,117 $ 761 ,849 $ 237,363 $ 9,824 ,603 Total capital assets, being
depreciated, net
Gas Utility capital assets, net
$ 11,436,643 $ (197,231 ) $ (6,875) .$ 11,246,287
$ 11,873,675 $ 1,116,530 ç 557,742 $ 12,432,463
*Cedar Falls Utilities uses FERC utility accounting which allows for depreciation calculated using the composite straighlline method. Under this method it is common for accumulated depreciation deletions to exceed the cost removed.
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Activity for the Water Utility for the year ended December 31,2012 was as follows
Begin ning
Balance lncreases Decreases Ending
Balance
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Machinery and equipment
lnfrastru cture
Total capital assets, being depreciated
Less accumu lated depreciation Buildings
Machinery and equipment
lnfrastructure
Total accum ulated depreciation
63,466 $ -- 193,142 1,765,502
$ $ $ 63,466
572,6061,386 ,038
$ 256,608 $ 1,765,502 $ 1,386,038 $ 636,072
$ 807,702 $ 430,338
27,042,778
31,171 $ 24,803
1,342,270
$ 838,873 376,977
28,285,949
78,164
99,099
$ 28,280,818 $ 1,398,244 $ 177,263 $ 29,501,799
$ 128,684 $ 236,496
8,179,228
18,501 $ 21,942
570,384
78,164
95,385
147,185
180,274
8,654,227
$
$ 8,544,408 $ 610,827 $ 173,549 $ g,g8 r ,686 Total capital assets, being
depreciated, net $ 19,736,410 $ 787,417 $ 3,714*$20,520,113 Water Utility capital assets, net $ 19,993,018 $ 2,552,919 $ 1,389,752 $ 21,156,185
*Cedar Falls Utilities uses FERC utility accounting which allows for depreciation calculated using the composite straight-line method. Under this method it is common for accumulated depreciation deletions to exceed the cost removed.
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Activity for the Communications Utility for the year ended December 31,2012 was as follows:
Beginning Ending Balance lncreases Decreases Balance
Capital assets, not being
depreciated:
Construction in progress
Total capital assets, not
being depreciated
$ 1,273,710 $ 7,382,169 $ 7,245,470 $ 1,410,409
s 1,273,710 $ 7,382,169 $ 7,245,470 $ 1,410,409 Capital assets, being depreciated
Machinery and equipment
lnfrastructure
Total capital assets, being depreciated
Less accumulated depreciation
Machinery and equipment
lnfrastructure
Total accumulated depreciation
$ 18,861,591 $ 1,204,555 3,026,616 17,906,062
$ 385,777 32,084,505
$ 18,042,81 3 17,205,059
$ 32,470,282 $ 21,888,207 $ 19,110,617 $ 35,247,872
$ 259,923 $ I,394,732
21,333 $ 2,269,939
78,575 $ 4,436,295
202,681
7,228,376
$ 9,654,655 $ 2,291,272 $ 4,514,870 $ 7,431,058 Total capital assets, being
depreciated, net $ 22,815,627 $ 19,596,935 $ 14,595, 747 * S 27.816,814 Com m unications U tility capital
assets, net $ 24,089,337 $ 26,979,104 $ 21,841,217 $ 29,227,223
"Cedar Falls Utilities uses FERC utility accounting which allows for depreciation calculated using the composite straight-line method. Under this method it is common for accumulated depreciation deletions to exceed the cost removed.
D. Leases Sartori Memorial Hospital
On January 1, 1997, the operations of Sartori Memorial Hospital (Hospital) were sold to Covenant Health Systems, lnc. As part of this sale, the City entered into a lease agreement with Sartori Memorial Hospital, lnc. (SMH), whereas the City will lease to SMH the land and buildings owned by the City and used in the Hospital's operations. The initial term of the lease shall be for a period of 25 years, with variable lease payments each year. The lease may be extended for up to three additional terms, with each additional term being for a period of five years. At the termination of this lease, Covenant Health Systems, lnc. will also pay to the City an amount of $660,378, which represents the liability arising from accrued vacation of Hospital personnel as of December 31, 1996. The present value of this liability as of June 30, 2013, is recorded as a receivable and deferred revenue in the Hospital Fund in the amount of $543,459.
64
Crystal Distribution Services
On November 12, 2001, the City entered into a lease agreement with Crystal Distribution Services, lnc. for the former Top Air building constructed in the City's industrial and technology park. The lease was amended on November 24,2003. The lease agreement is for a period of twelve years with various monthly payments ranging from $10,000 to $20,000 payable to the City. Crystal Distribution Services will have the option to purchase the building upon expiration of the lease.
The leases for the Hospital and with Crystal Distribution Services are both being treated as operating leases by the City. The future minimum lease payments for these leases are as follows:
Year Ending June 30 H ospita I Build ing
2014 2015 2016 2017
2018 2019-2021
Total
31,796
31,796
31,796 31,796
31,796 95,385
$ $ t 31,175
$ 254,365 $ 131,175
The capital assets being leased through the operating leases are as follows
G overnm ental Activities
Hospital Building
Land
B uilding
Less:
Accumu lated depreciation Total
$ 151,494
5,873,537 $
2,153,925
(2,210,765\ 892,981) $ 3,814,266 $ 1,260,944
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E. Long-term Debt General Obligation Bonds
Unmatured general obligation bonds totaling $2,320,626, net of unamortized discount of $14,374, are outstanding as of June 30, 2013. These bonds bear interest with rates ranging from 2.30o/o to 3.70%; mature in varying annual amounts through June 30,2018; and were originally issued for $4,310,000. Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending June 30,
Busine Activities Principal lnterest
2014
2015
2016
2017
2018 Total
$ 435,000
450,000
465,000
485,000
s00,000 $ 2,335,000
$ 80,972
66,835
51,760
35,718
18,500 $ 253,785
Tax lncrement Financing Bonds
Unmatured tax increment financing bonds totaling $597,880 net of unamortized deferred amount on refunding of $22,880, are outstanding as of June 30, 2013. These bonds bear an interest rate of 3.00%; mature June 30, 2014; and were originally issued for 92,865,000. Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Year E nding Governm ental Activities
June 30 P rincip al lnte rest
2014
Total
$ 5 75,000 $ 17,250
$ 575,00 0 $ 17,250
State Revolving Loan
ln July 2011, the City entered into a loan and disbursement agreement with the lowa Finance Authority for the issuance of $21 million in sewer revenue capital loan notes under the State Revolving Fund Program. These notes will finance the major renovation project at the City's water treatment facility related to disinfection compliance. As of June 30, 2013, only $2f 0,640 has been issued relating to the loan's administrative fees.
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CapitalLoan Notes
Unmatured capital loan notes totaling $8,646,063, net of unamortized discount and unamortized deferred amount on refunding of $53,937 are outstanding as of June 30,2013. These notes bear interest at rates of 1 .40% to 3.80%; mature in varying annual amounts through June 30, 2024; and were originally issued for $14,670,000. Annual debt service requirements to maturing for capital loan notes are as follows:
Year Ending
June 30,
Govenm ental Activities Bu siness{ype Activities
Principal lnterest Principal lnterest
2014
2015
2016
2017
2018
2019-2023
2024
Total
$ 2,200,000 $ 1,040,000
1,070,000
1 ,145,000
1,175,000
1,260,000
185,000
198,958 $ 156,875
134,515
109,555
81,278
147,407
7,030
200,000
215,000
210,000
$ 4,290
3,290
1,785
$ 8,075,000 $ 835,618 $ 62s,000 $ 9,365
As of June 30, 2013, the outstanding general obligation debt of the City did not exceed its legal debt margin computed as follows:
Estimated actual valuation of taxable property within the City $ 2,659,350,229
Debt limit - 5% of total actual valuation
Debt applicable to debt limit:
General obligation bonds
General obligation bonds - component unit
Legal debt margin
$ 132,967,511
I 1 ,610,000
1,595,000
$ t 19,762,511
All tax-exempt debt issued by the City is subject to IRS arbitrage rebate unless the City meets the $5 million small issuers exemption in a given year. As of June 30, 2013, the City had no arbitrage liability.
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Debt Summary
Following is a summary of the City's debt transactions for the year ended June 30,2013, and the total bonded indebtedness of the City as of that date.
D ate of lss ue
Bala nce
Beginning
of Year
lss u ed/
lncu rred
During Year
R edee med/
Paid
D uring Year
Ba lance
End of Year
Amount Due W ithin
One Year G overnm enta I Activities: Tax increment financing bonds
Tax increm ent finan cin g 2010 $ r,r25,000 $ $ 550,000 $ szs,ooo $ 575,000
Less una mortized deferred amount on refunding (51 ,7 81\ (28,901 ) (22,880\
$ 1 ,176 ,781 $ $ sze 901 $ SgZ 880 $ 5 75,00 0 CapitalLoan Notes:
Corporate Purpose Corporate Purpose Refunding Refunding
2008 2009 2010 2012
$ 3,04 5,000 $ 3,10 5,000
740,000 3 320 000
$ 10,21 0,000 $
$ 665,000 $ 20 5,000 36 5,000
2,380,000 2,900,000
375,000 2,420,000
$ 685,000 2 05,00 0 3 75,00 0
900 000 935 000 $ 2,t 35,000 $ 8,075,000 $ 2,200,000
4,043 31,166Less una mortized discou nt Less unamortized deferred
amount on refunding
Governmental activity total long-term debt
3 5,209
6,072 (3 ,406) 19,47 8 $ 10,168 719 $ $ 2.144 ,363 $ 8,024,356 $ 2,200,000
$ 2,723,264 $ 8,622,236 $ 2,775,000$ 11,345,500 $
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Date of
lssue
Balance
Beginning
of Year
lssued/
lncurred
During Year
Redeemed/
Paid
During Year
Balance
End of Year
Amount
Due Wihin
One Year
Bus iness-t¡rye activities
General obligation bonds:
Seuær
Less u namortized d íscount
Capital Loan Notes:
Ser¡¡er Refunding
Less u namortized d efened
amount on refunding
State Revolving Loan
Business{ype activity total
long{erm debt
$ 2,755,000 $ 17,U8
2008 $ 420,OOO $
2,974
2,335,000 $
14,374
435,000
$ 2,737,652 $ $ 417,026 $ 2,320,626 $ 435,000
2012 $ 820,000 $
4,421
$ 195,000 $ 625,000 $ 200,000
1,128 3,293
$ 815,579 $ 193,872 $ 621 707 $ 200,000
$ 210,64 $ $ $ 210,640 $
$ 3,763,871 $ 610,898 $ 3,152,973 $ 635,000
Revenue Bonds and lnstallment Agreements - Electric Utility The Series 2005 and 2007 revenue bonds require annual principal payments, due December 1, and semiannual interest payments, due June 1 and December 1. lnterest rates throughout the term of the bonds are in a range between 3.75o/o and 4.375%. The bonds are secured by the future net revenues of the Utility. Long-term debt matures and bears interest as follows:
Component Unit -
Revenue Bonds
Year Ending Principal lnterest
2013
2014
2015
2016
2017
2018-2022
2023-2026
2,135,000
2,225,000
2,320,000
2,420,000
2,525,000
14,350,000
9,450,000
1,461,318
1,379,344
1,290,343
1,197,544
1,100,744
3,877,969
861,125
$ $
$ 35,425,000 $ rr 387
The bond resolution provides certain covenants relating to the collection, segregation, and distribution of revenues from customers; places certain restrictions on the future of borrowing and leasing or disposition of assets; and requires that minimum insurance coverage be maintained.
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Gapital Loan Notes - Electric Utility The 20104 and 20108 revenue capital loan notes require annual principal payments, due December 1, and semiannual interest payments, due June 1 and December 1. lnterest rates are in a range between 2.50% and 4.75o/o The capital loan notes are secured by the future net revenues of the Utility.
Component Unit -
Capital Loan Notes
Year Princioal lnterest
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2030
455,000 $ 460,000
1,070,000
1,100,000
1,120,000
6,160,000
3,640,000
1,960,000
563,068
549,667
536,1 18
507,267
477,618
1,868,932
865,303
187,250
$
$ t 5,965,000 $ 5,555,223
Debt Summary - Electric Utility Long-term debt activity for the year ended December 31,2012 was as follows:
Beginning
Balance Addilions Reductions Ending
Balance
Amounts
Due Wihin One Year
Revenue Bonds:
Series 2003 Series 2005
Series 2007
CapitalLoan Notes: Series 2010A
Series 20108 Totalbonds
Less: Unamortized
discount
Add: Unamortized
premium
Totallong-term debt
$ 1,430,000 $ 21,2Q,000 15,610,000
9,590,000
6,820,000
$ 1,430,000 $ 690,000
735,000
$ 20,550,000
14,875,000
1,370,000
765,000
395,000
50,000
3,300,000
9,195,000 405,000
50,0006,770,000 51,390,000 2,590,00054,690,000
8ß,751
374,586
47,539 799,212
14,074 360,512
$ 54,217,835 $ $ 3,266,535 $ 50,951,300 $ 2,590,000
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General Obligation Capital Loan Notes - Communications Utility All general obligation (G O ) bonds and notes have been issued by the City on behalf of the Utility. The G.O. notes require annual principal payments, due December 1, and semiannual interest payments, due June 1 and December 1. lnterest rates throughout the term of the notes are in a range between 1.30% and 3.80%. The total debt service obligations over the remaining term of the notes are as follows:
Component Unit - G.O. Capital Loan Notes
Year Ending Principal lnterest
2013
2014
2015
2016
2017
2018-2022
2023-2024
$ 155,000
165,000
105,000
110,000
I 15,000
650,000
295,000
$ 47,878
45,242
41,860
39,340
36,370
124,600
16,765
$ t,595,000 $ 3s2,055
Revenue Capital Loan Notes - Gommunications Utility The Series 2009 and 2010 revenue capital loan notes require annual principal payments, due December 1, and semiannual interest payments, due June 1 and December 1. lnterest rates throughout the term of the notes are in a range between 3.0% and 4.3o/o. The notes are secured by the future net revenues of the Utility. The bonds mature and bear interest as follows:
Component Unit - Revenue Ca pital Loan Notes
Year Ending Principal lnterest
2013
201 4
2015
2016
2017
2018-2022
2023-2024
$ 1,440,000
1,475,000
1,525,000
1,570,000
1,630,000
5,700,000
460,000
$ 434,310
391,110
346,860
301,110
252,310
51 1,500
29,773
$ t 3,800,000 $ 2,266,973 The bond resolution provides certain covenants relating to the collection, segregation, and distribution of revenues from customers; places certain restrictions on the future of borrowing and leasing or disposition of assets; and requires that minimum insurance coverage be maintained.
The Board of Trustees of the Municipal Electric Utility authorized a loan to be extended to the Utility under Resolution No. 2759, 2840, 2939, 2994, and 3086. The December 31 , 2012 outstanding balance on this loan was $738,090, bearing interest as 3.1%. The Board of Trustees of the Municipal Gas Utility approved a loan to be extended to the Utility under Resolution No. 5077. The December 31,2012 outstanding balance on this loan was $3,000,000, bearing interest a|2.0%.
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Debt Summary - Gommunications Utility Long-term debt activity for the year ended December 31,2012 was as follows
Beginning Balance
Ending Balance
Amounts Due Within One YearAdditions Reductions
Capital loan notes
Series 2009 Revenue capital loan notes
Series 2009
Revenue capital loan notes Series 2010
$ 1,7s0,000 $ $ 155,000 $ 1,595,000 $ 155,000
2,990,000 335,000 2,655,000 345,000
12,210,000 1 ,065,000 11,145,000 1,095,000 $ 16,950,000 $ $ 1,ss5,000 $ 1s,395,000 $ 1,s9s,000
Less: unamortized discount on debt
Add: unamortized premium on debt
145,009 13,714 131,295
494,381
$ 17,299,372 44,065 450,316
$ $ 1,585,351 $ 15,714,021 $ 1,595,000
F. Long-term Liabilities Accrued Compensated Absences
Following is a summary of the City's activity for accrued compensated absences for the year-ended June 30, 2013, and the total liability of the City as of that date as reported on the government-wide statement of net position:
Balance Beginning
of Year lncreases Decreases
Balance End of Year
Amount Payable Within
One Year
Governmental activities $ 2,685,552 $ 270,448 $ 252,012 $ 2,703,988 $ 841 ,88e
Business-type activities $ 454,212 $ ¡a,soo $ 1,738 $ 491,274 $ 13s,633
The majority of compensated absences expenditures are paid for out of the General Fund
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Other Postemployment Benefits (OPEB)
The City implemented GASB Statement No. 45, Accountinq and Financial Reoortinq bv Emolovers for Postemplvolment Benefits other Than Pensions during the year ended June 30, 2009.
Plan Description - The City operates a single-employer health benefit plan, which provides self- insured medical/prescription drug benefits for all full{ime active and retired employees and their eligible dependents. Eligible retirees receive health care coverage through the same plan that is available to active employees. To be eligible for these benefits, participants must be receiving a pension benefit from the lowa Public Employee Retirement System (IPERS), receiving a Social Security Disability Benefit, or retired under Code Chapter 411 of the lowa Code. There were twenty retirees participating in the plan as of June 30th. Retirees pay the same premium for the health benefit plan as active employees, which results in an implicit subsidy and an OPEB liability. The Plan does not issue a stand-alone financial report.
Fundinq Policv - The contribution requirements of plan members are established and may be amended by the City. The City currently finances the benefit plan on a pay-as-you-go basis. The majority of expenditures are paid for out of the General Fund.
Annual OPEB Cost and Net OPEB Oblioation - The City's annual OPEB cost ís calculated based on the annual require contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years.
The following table shows the components of the City's annual OPEB cost for the year ended June 30,2013, the amount actually contributed to the plan and changes in the City's net OPEB obligation:
Annual required contribution lnterest on net OPEB obligation Adjustment to annual required contribution Annual OPEB Cost Net contributions - retirees lncrease in net OPEB obligation Net OPEB obligation beginning of year Net OPEB obligation end of year
$ 47,124 14,945
(13,239)
48,830 18.980 67,810
275.329
$343,139
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2011 . The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30,2013.
For the year ended June 30, 2013, the City paid $93,141 for retiree health claims. Plan members eligible for benefits contributed $112,121 or 100% of the premium costs. The net resulted in a $18,980 contribution for retirees
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The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation as of June 30, 2013 are summ arized as follows:
Year Ended Annual
OPEB Cost Percentage of Annual
OPEB Cost Contributed from City
Net OPEB Obligation
June 30,2013 $48,830 (38.87%) $343,139 June 30, 2012 $ 48,830 148.3o/o $275,329
June 30, 201 1 $ 52,149 4.60/0 $298,903
Funded Status and Fundino Prooress - As of July 1, 2011,ïhe most recent actuarial valuation date for the period July 1 , 2012 through June 30, 2013, the actuarial accrued liability was $525,162, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $525,162. The covered payroll (annual payroll of active employees covered by the plan) was $1 1,619,949 and the ratio of the UAAL to covered payroll was 4.5%. As of June 30, 2013, there were no trust fund assets.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumption about future employments, mortality and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the employer and the plan members and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
As of the July 1, 2011 actuarial valuation date, the projected unit credit actuarial cost method was used. The actuarial assumption includes a 5% discount rate based on the City's funding policy. The projected annual medical trend rate is 9%. The ultimate medical trend rate is 6%. The medical trend rate is reduced 0.5% each year until reaching the 6% ultimate trend rate. An inflation rate of 0% is assumed for purposes of this computation.
Mortality rates are from the RP2000 Group Annuity Mortality Table, applied on a gender-specific basis Annual retirement and termination probabilities were developed from a combination of the retirement probabilities from MFPRS|Actuarial Report, the IPERS Actuarial Report, and the City's experience.
Projected claim costs of the health plan are $675.42 per month for retirees less than age 65 and $443.17 per month for retirees who have attained age 65. The salary increase rate was assumed to be 3% per year. The UAAL is being amortized as a level percentage of projected payroll expense on an open basis over 30 years.
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G. lnterfund Balances
lndividual interfund receivable and payable balances by fund type as of June 30,2013, were stated in the fund financial statements as follows:
Due to/from other funds: Total
Fund lnterfund
Receivables lnterfund Payables
FEMA Fund Bond Fund
N onm ajo r Governm ental Funds Total
The balances are due to the elimination of reporting negatíve cash
Advances from/to other funds:
$ 1,413,731 $ r,413,731
Total
$ $
1.413 ,731
392,035
1,000,904
20,792
Advance to
Other Funds
Advance from
Other FundsFund
HospitalFund
Nonmajor Govemmental Funds
Sewer Fund Total
$ 11,255,000 4,085,000
$
15,340,000
$ 15,340,000 $ 15,340,000
The amount payable from the Sewer Fund to the Hospital Fund and the Capital lmprovements Fund relates to internal financing for the large disinfection project at the City's water treatment facility.
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H. lnterfund Transactions The following transfers represent individual fund interfund transfers as stated in the Fund Financial Statements. General Fund Street Construction Fund
Non-m ajor Governm enta I Fund s Sewer Fund Refuse Fund lnternal Service Funds
$
$ 633,942 TIF Fund
1 39,160 1 01,350 101,220 1 33,4s0 158,762
Street Construction F und
Debt Service Fund
FEMA Fund
Bond Fund
N on-m ajor G overn me ntal Fu nds
Sewer Fund
Refuse Fund
Bond Fund Sewer Fund
lnternal Service Funds
General Fund TIF Fund
General Fund TIF Fund
TIF Fu nd Street Repair Fund
General Fund TIF Fund Street Repair Fund FEMA Fund Non-m ajor Gove rnm enta I Fund s
FEMA Fund
Street Construction Fund FEMA Fund Sewer Fund
$ 211,957 555,033
$ 766,990 $ 5,49 5
$ 1,580,000 s83,750
$ 2,163,750 $ 75,881
3,498,784 3 74,665
$ 488,283 572,421
$ 1,060,704 $ 927,164
3,879,919 241,959
33,106 10 00
5,092,148
$ 2,431,073 $ 141,730
60,332 141 ,730
$ s+sJsz Total -s--lEF.72F5E-
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move debt service payments from proprietary or special revenue funds to the debt service fund as debt service payments come due and, (3) to move receipts from user fee generated funds to the general fund for certain administrative and custodial costs in the generalfund.
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Note 4. Other Notes
B.
A. Retirement Systems
IPERS
The City contributes to the lowa Public Employees Retirement System (IPERS) which is a cost- sharing multiple-employer defined benefit pension plan administered by the State of lowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, lowa, 50306-91 17.
Plan members are required to contribute 5.78% of their annual covered salary and the City is required to contribute 8.67% of annual covered payroll. Contribution requirements are established by State statute. The City's contributions to IPERS for the years ended June 30, 2013, 2012 and 2011 were $822,374, $771,437 and $619,003 respectively, equal to the required contributions for each year.
Municipal Fire and Police Retirement System of lowa
The City contributes to the Municipal Fire and Police Retirement System of lowa (the Plan), which is a cost-sharing, multiple-employer defined benefit pension plan administered by a Board of Trustees. The Plan provides retirement, disability and death benefits, which are established by State statute to plan members and beneficiaries. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to Municipal Fire and Police Retirement System of lowa, 7155 Lake Dr., West Des Moines, lowa 50266.
Plan members are required to contribute 9.40Yo of earnable compensation and the Gity's contribution rate may not be less than 26J2% of earnable compensation. Contribution requirements are established by State statute. The City's contributions to the Plan for the years ended June 30, 2013, 2012, and 2011 were $1,144,556, $1,080,516 and $798,970 respectively, which met the required minimum contribution for each year.
Due To/From Gomponent Unit
Amounts due from the component unit to the general fund at June 30, 2013, were as follows
Due from
Component Unit: Electric utility Gas utility Total
$ 750,000 100.000
c
$ 850J00
This amount differs from the amount reported as due to primary government since the Electric Utility and Gas utility component units have a calendar year end of December 31,2012.
Related Party Transactions
During the fiscal year ended June 30, 2003, the Black Hawk County Solid Waste Management Commission, which is a jointly governed organization, passed a resolution for annual distributions of its excess funds. The prorated share for the City of Cedar Falls was at.$564,721to be received each year. However, in 2012,the commission decided to reduce the payments to $29g,534for FY2O13 &
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D.
FY2O14. The payments received in fiscalyears ended June 30, 2003,2004,2005, 2006, 2OO7,2OOB, 2009,2010,2011,2012 and 2013 have been recorded in the Refuse Fund as other operating revenue.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the government has established various funds to account for and finance its uninsured risks of loss.
The City has established a Health lnsurance Reserve Fund for insuring benefits provided to City employees and covered dependents, which is included in the internal service fund type. Health benefits were self-insured up to a specific stop loss amount of $85,000 and an aggregate stop loss of approximately $3,344,144for 2013. Coverage from a private insurance company is maintained for losses in excess of the stop loss amounts. All claims handling procedures are performed by a third- party claims administrator. lncurred but not reported claims have been accrued as a liability based upon the claims administrator's estimate.
All funds of the City participate in the program and make payments to the Health lnsurance Reserve Fund based on actuarial estimates of the amounts needed to pay prior-year and current-year claims. The City has also established reserve funds for insuring workers' compensation, liability, and long- term disability claims which are included in the general fund type. Liability benefits were self-insured up to a specific stop loss amount of $100,000 and an aggregate stop loss amount of $260,000. Long- term disability benefits are self funded for the first six months, and the maximum benefit per individual is $18,000. Workers'compensation benefits were self-insured up to an aggregate stop loss amount of $350,000 with no specific stop loss amount. Coverage from private insurers is maintained for losses in excess of the stop loss amounts. An independent claims administrator performs all claims handling procedures. Settled claims for the above funds have not exceeded commercial coverage in any of the last three fiscal years.
Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (lBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims.
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Changes in reported liabilities for the fiscal year ended June 30, 2013, are summarized as follows:
Risk Manaqement Fund
Claim liabilities
June 30, 201 1
Claims and changes
in estimates during
fiscal year 2012
Claim payments
Claim liabilities
June 30, 2012
Claims and changes
in estimates during
fiscal year 2013
Claim payments
Claim liabilities June 30, 2013
$ 404,998 $ 301 ,881 $
Health ln sura nce
Reserve Fund
Workers' Compensation
Reserve Liability
Reserve
Long-Term Disability
Reserve
$
Total
$ 706,879
2,681 ,146 (2,830,757)
2,596,371
(2,60e,886) 84,775
(220,871)
$ 39r,483 $ 165,785 $ $ $ ssz,zoa
2,741,637
(2,719,041)
2,541,207
(2,550,165)
200,430
(168,876)
$ 382,525 $ 197,33e $ 579,864
Gommitments and Contingencies
Legal counsel has reported that as of June 30, 2013, there were claims and losses that are on file against the City. The City has the authority to levy additional taxes outside the regular limit to fund any uninsured judgment against the City. However, it is estimated that all of these claims and losses will be covered by insurance when exceeding stop loss limits, and the amounts prior to reaching these limits would not materially affect future financial statements of the City.
New Governmental Accounting Standards Board (GASB) Standards
The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by the City. The statements which might impact the City are as follows:
Statement No. 65, ltems Previously Reported as Assefs and Liabilities, issued March 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities.
StatementNo.66, Technical Corrections-anamendmentof G,ASBSfafemenfs No. 10andNo.62, issued March 2O12, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to improve accounting and financial reporting for a governmentalfinancial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
$
E
F
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Statement No. 67, Financial Reporting for Pension Plans - an amendment of GASB Statement No. 25, issued June 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish accounting and financial reporting requirements related to pensions for governments whose employees are provided with pensions through pension plans that are covered by the scope of this Statement, as well as for nonemployer governments that have a legal obligation to contribute to those plans.
Statement No. 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement 27, issued June 2012, will be effective for the fiscal year ending June 30, 2015. The objectíve of this Statement is to improve information provided by state and local governmental employers about financial support for pensions that is provided by other entities.
Statement No. 69, Government Combinations and Disposa/s of Government Operationg issued January 2013, will be effective for the fiscal year ending June 30,2015. The objective of this statement is to improve financial reporting by addressing accounting and financial reporting for government combinations and disposals of government operations. The term government combinations is used in this Statement to refer to a variety of arrangements including mergers and acquisitions.
Statement No. 70, Accounting and Financiat Reporting for Nonexchange Financial Guarantees, issued April 2013, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to improve the recognition, measurement, and disclosure guidance for state and local governments that have extended or received financial guarantees that are nonexchange transactions.
The City's management has not yet determined the effect these statements will have on the Cíty's financial statements.
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City of Cedar Falls IJniversity of Northern lowa
Gity of Cedar Falls, lowa
Budgetary Comparison Schedule - Function Budget For the Year Ended June 30,2013
Revenues: Property taxes and assessments Other City taxes Licenses and permits Use of money and property lntergovernmental Charges for services Miscellaneous
Total revenues
Expenditures: Current:
Public safety Public works Health and social services Culture and recreation Community and economic development General government
Debt service Capital projects Business-type
Total expenditures
Excess (defíciency) of revenues over (under) expenditures
Other financing sources (uses): Proceeds from long-term debt Transfers in Transfers out
Total other financing sources (uses)
Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses
Fund balances, beginning
Fund balances, ending
Budgeted Amounts
Original Final
$ 24,909,307 5,504,911
990,450 1,155,130
17,001,000 11,732,015 4,957,372
$ 56,463,620 $ 66 140 085
$ 24,909,307 5,499,911
971,950 1,154,130
11,524,950 11,526,300
877,272
$ 9,125,770 11,496,110
203,250 7,067,140 2,524,330 4,837,030 3,221,690 5,570,090
17,874,290
$ 9,368,320 12,559,960 3,203,250 7,239,277 2,677,390 4,937,030 3,221,690
14,970,090 17,900,290
$61
$ 11,027,000 19,951,490
(19,951,490)
$ 11,027,000 19,951,490
(19,951,490)
919,680 $ 75,877 ,267 5,456 060 $(e ,737,192\
$ 11,027,000
$ 5,570,940 48,971,939
11 7 000
$ 1,2ïg,g1g 48,971,939
See notes to the required supplementary information
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$ 54,542,778 $ 50,261,656
$
Actual Amounts
Variance with Final Budget -
Positive (Neoative )
$ (200,621) 32,170 94,091
(11,546) (2,763,197)
(593,814) (2,507,669)
$60 189,509 $ (5,950 ,576)
$ 399,262 2,461,977 3,030,965
959,769 34,171
156,549 265,671
2,019,904 4,266,716
$ 62,282,394 $ 13,594,993 $ ,875) $ 7 644 307
$ $ (11,027,000) 5,415,207
(5,415,207) 25,366,697
(25,366,697)
$ n1.027 ,000)
24,709,696 5,536,991 1,074,541 1,143,594
14,237,913 11,138,201 2,349,703
$ 8,g6g,os8 10,097,993
172,295 6,279,509 2,643,209 4,690,491 2,956,009
12,850,296 13,633,564
$
$ (2,092,875) 57,552,947
$ (3,382,693) 8,591,109
$ 55,460,012 $ 5,19g,416
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City of Gedar Falls, lowa
Notes to Required supplementary lnformation - Budgetary Reporting For the Year ended June 30, 2013
Note A - Budgetary Reporting
The budgetary comparison is presented as Required Supplementary lnformation in accordance with Government Accounting Statement No. 41 for governments with signíficant budgetary perspective differences resulting from not being able to present budgetary comparisons for the General Fund and each major Special Revenue Fund.
ln accordance with the Code of lowa, the City Council annually adopts a budget on the cash basis plus recorded accounts payable following required public notíce and hearing for all funds. The annual budget may be amended during the year utilizing similar stãtutorily prescribed procedures. Encumbrances are not recognized on the cash basis budget and appropriations lapse at year end.
Formal and legal budgetary control is based upon 9 major classes of disbursements known as functions, not by fund or fund type. These g functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt seryice, 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 Project Funds, 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, two budget amendments increased budgeted disbursements by $13,957,587. These budget amendments are reflected in the final budget amounts.
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City of Gedar Falls, lowa
Budgetary Comparison Schedule - Program Budget
Notes to RSI
Note B - Explanation of Differences between Budgetary Sources and Uses of funds and GAAP Revenues and Expenditures for the GAAP General Fund and Major Special Revenue Funds
Sources
Actual amounts (budgetary basis) "total revenues" from the budgetary comparison schedule - function budget
Adjustments: The city budgets for all receipts on the cash basis, rather than the modified accrual or accrual basis
Total revenues for the function budget on a GAAp basis of accounting
Reclassifications: The City reports sources of funds in the function budget as
revenues in other major and nonmajor funds for GAAp reporting Debt Service Fund FEMA Fund Bond capital projects Fund Nonmajor governmental GAAP funds Business-type enterprise funds
Total revenues for general fund and major speciar revenue funds
Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds:
General Fund Hospital Fund TIF Fund Street Repair Fund Street Construction Fund
Total revenues for general fund and major special revenue funds
Function Budget
$ 60,189,509
262,gg}
$ 60,452,399
(849,229) (4,464,326) (1,937,653) (4,391,655) (8,461 ,470)
$ 40,349,056
$ 22,902,719 601,464
7,679,979 5,455,792 3,809,103
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$ 40,349,056
Uses
Actual amounts (budgetary basis) "total expenditures" from the budgetary comparison schedule - function budget
Adjustments The City budgets for expenditures on the cash basis, rather than on the
modified accrual or accrual basis on all items except payments to suppliers
The City does not budget for depreciation
Total uses for the function budget on a GAAp basis of accountÍng
Reclassifications: The City reports uses of funds in the function budget as expenditures in
other major and nonmajor funds for GAAp reporting: Debt Service Fund FEMA Fund Bond capital projects Fund Nonmajor governmental GAAp funds B usiness-type enterprise funds
Total expenditures for general fund and major special revenue funds
Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds:
General Fund Hospital Fund TIF Fund Street Repair Fund Street Construction Fund
Total expenditures for general fund and major special revenue funds
Function Budget
$ 62,282,394
(10,032,949)
$ 52,249,435
(2,956,009) (1,764,779) (3,392,290) (8,063,920) (6,707,140)
$ 29,375,407
$ 20,826,499 157,534
5,702,990 2,699,394
$ 29,375,407
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City of Cedar Falls, lowa
Schedule of Funding Progress for the Gedar Falls Health plan
June 30,2013
Fiscal Year
Actuarial Valuation
Date
Actuarial Value of Assets
Actuarial Accrued
Liability (AAL)
Unfunded AAL Funded
Ratio Govered Payroll
UAAL As a Percentage of Covered
Payroll(UAAL ) 2011 July 1 ,2009
2012 July 1 ,2011 2013 July 1 ,2011
671,926 671,926 0.0% 10,976,7g5 6.1% 525,162 525,162 0.0% 11,327,306 4.6% 525,162 525,162 0.0o/o 11,019,949 4.5%
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dar Falls Hearst Center for
the Arts Garden
Gity of Gedar Falls, lowa Combining Balance Sheet
Nonmajor Governmental Funds June 30, 2013 (Page 1 oÍ 2l
Community Development
Fund
Housing Assistance
Fund
ASSETS Cash Receivables, net of allowance for uncollectible amounts:
Property taxes Other city taxes Accrued interest Special assessment Other
Due from other funds Advance to other funds Due from other governments lnventories
Totalassets
LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued liabilities Unavailable revenue Due to other funds
Total liabilities
FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned
Totalfund balances
$ 13,451 $ s70,133
98,443
111 894 $ 570,133
6,301 2,596
$ 8,887 $ 2,932
$ $ 738 2,194
103,007 567,201
$ 103,007 $ 567,201 Total liabilities and fund balances $ 1111,gg4 $ 570,133
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Special Revenue
Parking Fund
Police Retirement
Fire Retirement
Visitor & Tourism
$ 836,804 $ 2,868,772 $ 2,478,404 $ 4g2,761
763,843 584,381
1,075 866 89,494
517
2 860 _ -- , __ 20,547 _$_3,633,s6e _$_3,063,65- -$---503319
954
$
$ 840,739
3,988 1,627
$ 65,884 $ 2,227 $ 761,797 582,629
$ 5,615 $ 82l.6all $ 584,8s5 122 291
2,860 20,547 450,4912,805,999 2,479,796
832,264
$ 835 124 $ 2.80s $ 2,478,796 471 028,888 _$_a40,r39 _$__a,ffi,569_ 063,651 $ 593,319$3.
(continued)
29,199 3,609
89,494
88
City of Cedar Falls, lowa Combining Balance Sheet
Nonmajor Governmental Funds June 30, 2013 (Page 2 of 2)
Special Revenue
ASSETS Cash Receivables, net of allowance for uncollectible amounts:
Property taxes Other city taxes Accrued interest Special assessment Other
Due from other funds Advance to other funds Due from other governments lnventories
Totalassets
LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued liabilities Unavailable revenue Due to other funds
Total liabilities
FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned
Totalfund balances
Total liabílities and fund balances
$ 202,668 $ 116,328 $ 27,218
$ 202,668 $ 116,328 $ 37,219
Hillside Perpetual
Care
$ $ $
$ $
202,669 116,329 37,219
$ 202,668 $ 116,328 $ 37 218 $ 202,668 $ 116,329 $ 37,218
Greenwood Perpetual
Care
Fairview Perpetual
Care
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(continued)
Gaoital Proiects Washington
Park Renovation lmorovem ents
Sidewalk Assessment
Economic Development
Capital
Capital
Total
$ 30,624 $ 3,961,ss6 $
3,760 '18,971
8,997
$ 5,11s,736 $ 16,21 4,4ss
1,349,224 gg,4g4
13,390 44,163
g,gg7
1,413,731 4,095,000
103,527 23,407
$ 23,844,368
37 6,171 25,192
1,413,731 4,095,000
5,094
_$__gqgql_ $ 8,083,358 $ 25,192 $ 6,535.63;
$ 58,959 $ $ 18,970 23,933 11,925
20 792
$ $ 167,295 10,016
1,499,647 20 792
$ $ 77,929 $ 44,625 $ 11,925 $ I 686 740
30,661 8,005,429 6,523,713
23,407 6,761,597
932,264 14,559,903
(19.433)(19 ,433) $ 30,661 $ 8,005,429 (19 ,433) $ 6.523 ,713 $ 22157 ,628
25,192 $ 6,535,639 $ 23.944.368$ 30,661 $ 8,083,358
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City of Gedar Falls, lowa Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 90,2019
(Page 1 of 2l
Revenues: Property taxes and assessments Other city taxes Use of money and property lntergovernmental Charges for services Fines and forfeitures Miscellaneous
Total revenues
Expenditures: Current:
Public safety Public works Culture and recreation Community and economic development
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses): Transfers in Transfers out
Total other financing sources (uses)
Net change in fund balances Fund balances, beginning lncrease (decrease) in reserve for inventories
Fund balances, ending
Community Devefopment
Fund
Housing Assistance
Fund
$
376,306 4,315
1,210,129
7,674
$ 376 306 $r 117
$
369,492 1,373,739
$ 369.492 $ 1.373,739
b 814 $ (151 ,622\
$
$
$
$
$
$ 6,814 96,1 93
$
$ (151,622) 719,923
$ 103,007 _$_56r,201
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Special Revenue
Visitor & Tourism
$
3,457 307,911
5,729
38,511 166,091
14,544
$ 208,049 $ 621 150 $ 540.525 $ 328,183
$ 783,910 $ 550,653 $ 233,079
355,379
$233,078 $ 783,910 $ 550,653 $ 355,378
0,128) $ (27 ,195)
$ $ $ $ 55,424 (14,040)(13,320)
$ $ 41,394
$ $
Parking Fund
Police Retirement
Fire Retirement
$ 559,891 $ 476,405 $
59,301 63,866
1,959 254
$
$ (25,029) $ (162,760) $ (1
$
$ (162,760) 2,969,649
(10,128) 2,499,924
14,189 454,549
2,291
$ 835,124 $ 2,805,888 $ 2,478,796 $ 4l1,O2g
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(continued)
Gity of Cedar Falls, lowa Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds For the Year Ended June 90,2019
(Page 2 oÍ 2)
S I Revenue Gree
Revenues: Property taxes and assessments Other city taxes Use of money and property lntergovernmental Charges for services Fines and forfeitures Miscellaneous
Total revenues
Expenditures: Current:
Public safety Public works Culture and recreation Community and economic development
Capital projects
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses): Transfers in Transfers out
Total other financing sources (uses)
Net change in fund balances Fund balances, beginning lncrease (decrease) in reserve for inventories
Fund balances, ending
Perpetual Care
$
5,870 3,630 980
r$ 5,870 $ 3,630 $ e8o
$
$ $ $
$ 5,870 $ 3,630 980
$ $ $
$ $ $
$ ego 36,239
Fairview Perpetual
Care
Hillside Perpetual
Care
$$
$$
$ s,BZo $ 196,799
3,630 112,699
_$ 2o¿qgg_ $_1_1_q.gæ_ $ 37,218
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(continued)
Capital Proiects Washington
Park Renovation
Capital Sidewalk Assessment
Economic Development
Capitallm Total
$ $ 5,409 $ 7,671 $ 121 204,360
57,143
246,157
196,994
$ 1,049,375 307,911 539,132
1,643,577 48,991
166,091 637,59911,622 355,379
$121$ 513,068 $ 19,293 $ 552,363 $ 4.3e1 ,655
$$$ $
22,516 4,108,165
$ t,334,s63 233,079 355,379
1,743,231 4,397,570266,ggg
$ $ 266,889 $ 22,516 4 108 165 $ 8,063,920
$ 121 $ 246,179 $ (3,223) 555,802)$ (3.
$ $ 1,096,905 (83,990)
$ 3,949,919
$ (3,672,165)
$ $ s,og2,i4g (111,350)
$ $ 1,002.815 $ $ 3.949 ,919 $ $121
30,540 1,249,994 6,756,435
$ (3,223) (16,21Q)
394,117 6,129,596
$
$ 30,661 $ 8,005,429
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City of Cedar Falls, lowa
Combining Statement of Net Position lnternal Service Funds
June 30,2013
ASSETS Current assets:
Cash Receivables, net of allowance for uncollectible amounts:
Accrued interest Other
lnventories Total current assets
Noncurrent assets: Capital assets:
Buildings Machinery and equipment Accumulated depreciation
Total noncurrent assets Total assets
LIABILITIES Current liabilitíes:
Accounts payable Accrued liabilities Compensated absences due within one year
Noncurrent liabilities: Compensated absences after
one year Total liabilities
NET POSITION Investment in capital assets Unrestricted
Total net position
Pa
$ 6,050,286 $ 17,457 $ 2,2OO,B77
7,395 6,807
2,695
$6. 064,479 $ 17,457 $ 2.203,564
$ $ $
$ $ $ 6,064,478 $ 17,457 $ 2,203,564
$ 5,162 382,525
$ 17,457 $ 388,642
Health lnsurance
$ sB7
$ 5 676 791
$ s,676,791
Health lnsurance Severance
687 $ 17,457 $ 388.642
$ $ 1,914,922
$ 1,814,922
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Risk Management
Data Processing
Vehicle Maintenance Total
$ 3,269,890 $ 902,450 $ 827,227 $ 13,268,1g9
3,791 3,690
1,O41 1,251 106
16,153 10,603
328,7973 833 324 954 3 7 371 $ 907 324$1 538 $ 13.623153 ,732
$ $ 1,253,735
90,302 6,395,626
90,302 7,649,361
$ $
$ $ 299,489 $ 2.390 ,081 $ 3,277 ,371 $ 1,206,913 3 543 619
$ 13,230 197,339
$ 3,402 8,042
$ 61,121 9,931
(4.095 ,847\ (5.050 ,0e3) 2 689 570
16 313 2
489,O14 597,837
(954,246)
$
$
26,359 18,247 44,606
25 710 29,444 55 154 210 56e $ 63,513 $ 118,743 $1 186 611
$ $ 299,489 $ 2,390,081 $ 2,699,570 066 802 843 811 1 034 795 12 7 121
$ 3,066,902 $ 1,143,300 $ 3,424,876 _$_1_5,126,691
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City of Cedar Falls, lowa Gombining Statement of Revenues, Expenses,
and Changes in Fund Net position lnternal Service Funds
For the Year Ended June 30, 2013
Operating revenues: Charges for services Other
Total operating revenues
Operating expenses: Personal services Contractual services Supplies and equipment Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses): Use of money and property Loss on disposal of equipment
Nonoperating revenues (expenses)
lncome (loss) before transfers
Transfers out
Change in net position
Net position, beginning
Net position, ending
$ 2,783,954 $2r 750 $ 286
$ $ 697,819 2,814,529 27,750
2 814 528 $ 27,750 $ 697,819 $ (30,574) $ $ ø10,965)
$ 23,98s $ $ 8,869
$ 2,771,556 12,399
$ 27,Tso
Health lnsurance
Health lnsurance Severance Pa il
$ 278,170 9,694
854
$
$ 23,985 $ $ 8,869 $ (6,589) $ $ (402,096)
$ (6,s89) $ 5,683,390
$ (402,096) 2,217,019
$ 5,676,T91 $ $ 1.814,922
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Risk Management
Data Processinq
Vehicle Maintenance Total
$ 561,450 $ 129,413
$ 1,749,640 54,696
$ 6,311,469 204,351
922,902 160
$ 689,863 $ e23 062 $1 336 $ 6,515804
$ $ 352,739 264,592 63,569
105,509
,819
$ 363,336 269,732
1,093,767 312,574
$ 1,413,994 4,235,561 1,147,335
419,092
859,959
$ 859 $ n70 ,096) $ 136,655 $ Q2 4,0731
$ 7.21 4,872 699 053
959 $ 786,407 $ 2,029,409
$ 12,267 $ 3,502 $ (9,783)
4,134 $ (20,354)
52,757 (30,137)
$ 12,267 $ (6,281)
$ (157,829) $ 130,374 (5,495)
$ 22,620
$ (676,433) (164,257)
$ (163,324) $ 3,230,126
130,374
1,012,926
$ (399,055) $ 3,923,931
(840,690)
15,967,391
$3, 066,802 $ 1.143,300 $ 3.424 ,876 $ 15,126,691
-98-
City of Cedar Falls, lowa Combining Statement of Gash Flows
lnternal Service Funds Forthe Year Ended June 30,2013
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services Payments to suppliers Payments to employees
Net cash províded by (used for) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Net acquisition of property and equípment
CASH FLOWS FROM INVESTING ACTIVITIES lnterest received on investments
Net increase (decrease) in cash
CASH BALANCES, Beginning CASH BALANCES, Ending
Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities: Depreciation Change in assets and liabilities: (lncrease) decrease in:
Other receivables lnventories
lncrease (decrease) in accounts payable, accrued and other liabilities Net cash provided by (used for) operating activities
$ 2,771,556 $ (2,914,120')
6,671
(9,603) $ (42,564) $ (2,e32\
$ $
$ $
$ 23.994 $
$ (18,570) $ (2,932) 20,3896,069,956
$ 6,oso,286 $ 17,4s7
$ (30,574) $
(3,032)
(8,958) e.%2\ $ 42,564\ $ (2,932)
Health lnsurance
Health lnsurance Severance
-99-
Risk Data Processinq
Vehicle MaintenancePayroll M ment ïotal
$e4
$ 278,170 $ 302
561,450 $ (494,643)
922,902 $ (331,225)
1,749$40 (1,399,796)
,257)
ß41 ,0421 351 475 ,20Ð $ 66,807 $ 250 635 $ 9,369
$ $ (s,49s )$ $ (158,762) $ n64
071 $eß$ $ $ Í07 ,646) 1 ,7171 $ 82e $ 12,199 $ 3,320 S 4.267 $I 52,608 $ (15,373)
565 $66 807
$ 146,309 $ (2s1,197) 756 141 1 078 424
$ (68,253) 13,336,4422,216,252$ 2,200,979
386,763 $ (24,202\
$ 902,450 $ 827,227 $13 189
$ (410,965) $ (1 70,096)$136,655$(224,073)$(699,053)
105,509 312,574 418,092
236,339 (1,083)
I 555 $ 250,635
(58) (90,932)
11 858
233,249 (92,015)
396 851 I 369 $ 257.113
-.
- 100 -
City of Gedar Falls, lowa GapitalAssets used in the operation of Governmental Funds
Gomparative Schedules by Source* June 30,2013 and 2012
2013
Governmental fund capital assets: Land
Land improvements
Buíldings
Machinery and equipment lnfrastructure
Construction in progress
Total governmental funds capital assets
2012
$ 28,703,969 13,116,321
27,711,935
9,120,292
154,932,742
12,264,029
8 254,179,594 245,949 187
$ 23þ15,754 45,791,071
145,667,441
225,195
30,659,726
$ 28,867,975 13,155,356
27,729,339
9,504,504
163,497,944
11,425,467
lnvestments in governmental funds capital assets by source: General fund $ 23,T07,691 Special revenue funds 49,456,210 Capital projects funds 14g,S2},gg1 lnternal service 22í,1gs Donations 31,269,597
*
Total governmental funds capital assets $ 254,179,594 $ 245
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental actívíties in the statement of net assets.
-101-
City of Gedar Falls, lowa Gapital Assets used in the operation of Governmental Funds
Schedule by Function and Activity " June 30,2013
Function and Activitv Land
1,842,041
69,599
10,883,674
360,042
Buildings
Public Safety
Public Works
Health & Social Services
Culture and Recreation
Community and Economic Development
General Government
$ 12,500 290,326
151,494
2,906,049
25,553,706
53,901
$ $ 1,024,831 1,513,123
5,973,537
12,992,115
2,165,425
4,169,307
$ 28,867,975 $ 13,155,356 $ 27,72g,399
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets.
-102-
Machinery and
Equipment
Construction tn
lnfrastructure Progress Total
$ 1,143,269 3,717,204
3,289,069
130,907
1,224,061
$$ $ 2,1go,sg4 169,953,163
6,094,630
36,519,522
34,995,406
5,447,269
157,511,134 4,079,335
5,986,910 570,906
6,775,326
$e, 504,504 $ 163,497,944 $ 11,425,467 $ 254.179.594
-103-
Gity of Gedar Falls, lowa capital Assets used in the operation of Governmental Funds
Schedule of Changes by Function and Activity " For the Fiscal Year Ended June 30, 2013
Governmental Funds Capital
Assets July 1 ,2012 Additions Deletions June 30 2013
Public Safety
Public Works
Health & Social Services
Culture and Recreation
Community and
Economic Development
General Government
$ 2,184,644 161,493,409
6,094,630
36,165,632
34,541,937
5,379,035
$ 90,094 12,144,993
369,293
476,065
148,175
$ 94,744
4,675,229
16,403
32,496
79,941
Governmental Funds Capital
Assets
$ 2,180,594 168,953,163
6,094,630
36,519,522
34,995,406
5,447,269
$ 245,849,187 $ 13,229,210 $ 4,g98,g13 $ 254,179,5g4:
This schedule presents only the capital asset balances related to governmentalfunds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal servíce funds are íncluded as governmental activities in the statement of net assets.
-104-
City of Cedar Falls, lowa Statistical Section
This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health.
Gontents Paqe
Debt Gapacity These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future 124
Demographic and Economic lnformation These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place. 136
Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over tíme.
Revenue Capacity These schedules contain information to help the reader assess the city's most significant local revenue source, the property tax.
Operating lnformation These schedules contain service and infrastructure data to help the reader understand how the information in the city's financial report relates to the services the city provides and the activities it performs.
Sources: Unless othen¿vise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The city implemented GASB Statement 34 in 2003; therefore the first four tables include information beginning in that year.
106
116
141
- 10s -
City of Cedar Falls, lowa Net Position by Gomponent
Last Ten Fiscal Years (Accrual basis of accounting)
FiscalYear 2004 2005 2006 2007
Governmental activities Net investment in capitalassets Restricted Unrestricted
Total governmental activities net position
Business-type activities Net investment in capitalassets Restricted Unrestricted
Total business{ype activities net position
Primary government Net investment in capitalassets Restricted Unrestricted
ïotal primary government net position
s 144,878,688 $ 1
$ 94,619,419 15,944,416 34,315,853
$ 100,950,333 16,699,109 36,569,953
$ 108,3s9,511 17,167,913 37,686,372
$ 1 13,859,357 18,571,430 42,994,411
54,107,394
$ 26,644,501 $ 809,500
6,340,472
28,566,202 $ 809,500
6,179,451
30,991,450 $ 808,500
6,285,467
36,487,952 808,500
5,569,366
$ 33,793,473 $ 35,554,153 $ 38,085,417 $ 42,865,718
$ t2t,262,920 16,752,916 40,656,325
$ 129,416,535 $ 139,350,961 17,496,609 17,976,413 42,749,404 43,971,939
$ 150,347,209 19,379,930 49,563,777
$ 178,672,161 $ 189,661,547 g 201,299,213 $ 21g,290,916
- 106 -
Fiscal Year 2008 2009 2010 2011 2012 2013
$ 118,688,310 $ 123,367,386 $ 131 ,237,132 g 145,480,365 $ tSt,13O,O97 $ t 20,491 ,013 21,421,340 22,341 ,338 24,OgO,2oO 24,405,g2g 45,657,412 49,697,913 52,747,529 50,939,2g9 50,704,056
55,314,591 24,150,307 54,889,657
_q_1_e4,æA, ?35 _q_1_93,486,539 _q 206,325,99S _$ 220,509,853 Å 226,239, 981 $ 234 555
$ ¿t,521,531 $ 449,500
4,019,315
44,414,522 $ 449,500
4,522,039
46,273,076 $ 9,500
4,897,575
52,510,319 $ 9,500
6,729,994
70,328,202 $ 9,500
(76,329)
79,677,940 9,500
(5,621,533)
$ 45,989,346 $ 49,386,060 $ St ,17O,151 $ 59,248,703 $ 70,261 ,373 $ 74,065,907
$ 167,781,909 ç 177,510,209 g 197,990,684 $ 221,458,2gg g 234,992,531 21,870,840 22,350,838 24,099,700 24,415,328 24,159,807
$ 160,209,941 20,940,513 49,675,727 53,219,951 57,635,103 57,668,172 50,627,727 49,267,124
$ 230,826,081 $ 242,8?2,599 S_25r,496,149 _q_2r9,r5S,556 _q 296501,354 _$_A08,41 9,462
-107-
City of Cedar Falls, lowa Ghanges in Net Position
Last Ten Fiscal Years (Accrual basis of accounting)
(Page I of2)
Fiscal Year
2004 2005 2006 Expenses
Governmental activities: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects
Total governmental activities expenses
Business-type activities: Sewer Refuse Storm Water
Total business-type activities expenses
Total primary government expenses
Program Revenues Governmental activities:
Charges for services: Public Safety Public Works Culture and Recreation General Government
Operating grants and contributions Capital grants and contributions
Total governmental activities program revenues
Business-type activities: Charges for services:
Sewer Refuse Storm Water
Capital grants and contributions: sewer and storm water Tota I busi ness-type activities prog ram revenues
Total primary government program revenues
Net (Expense)/Reven ues Governmental activities Business-type activities
Total primary government net expense
26,544,816 28.5 76,734
$ 6,378,906 8,083,107
177,236 4,788,464 2,641,914 3,309,062 1,046,548
119,579
$ 6,786,083 $ 8,121,486
261,476 5,350,058 3,345,487 3,751 ,183
960,961
6,920,986 9,291,307
325,479 5,911,073 4,353,658 3,972,891
968,298
31,743,692
2,656,015 1,699,546
2,777,820 2,176,174
3,212,254 1,797,655
4,3s5,561 4,953,994 909 $ 30,e00,377 $ 33.530 ,728 $ 36. 753,601
$ sot,zsa 311,932
1,356,978 1,147,836 2,207,574 4,210,176
602,800 209,424
1,550,008 1,242,703 3,143,285
$ 715,066 344,195
1,841,570 I ,323,816 2,533,024 3,622,803
10,380,478
$
2.759,995 9,796 ,284 9,508,215
3,747,185 2,471,886
3,777,236 2,460,525
3,862,562 2,576,395
11,687 820,264 1,553,151
$ 16,027,042 $ 16.s66 ,240 758 7.058 ,025 7,992,108
$ 18,372,586
(16,748,532) (19,068,519) (2't,363,214) _ 1,875,197 2,104,031 $ (14,873,335ì $ (16,964,488I
2 982 199
- 108 -
Fiscal Year 2007 2008 2009 2010 2011 2012 2013
$ 6,602,108 $ 9,390,405
147,O07 5,894,494 4,341,611 3,918,s50
930,278
8,065,013 $ 9,696,327
234,124 6,736,108 4,346,385 4,244,545
831 ,315
7,192,846 $ 13,938,703
310,365 6,836,437 5,677,705 4,619,221
754,989
7,725,740 $ 10,699,831
164,836 6,864,804 7,019,195 4,797,762
741,933
8,62s,520 $ 10,949,200
326,666 7,104,212 7,291,549 4,493,885
551,543
8,462,143 $ 12,971,278
316,339 7,098,908 7,815,848 4,333,403
452,378
9,491,677 11,909,568
320,864 7,262,110 8,357,058 4,890,409
228,173
31,224,453 34,153,817 39,330 ,266 38,014,101 39.342 ,575 41,450,297 42,459,859
3,359,111 2,011,573
61 192 5, 989,876
$ 37,214,325
3,009,639 2,142,679
652,999
3,178,3s4 2,355,999
620 460
3,187,378 2,410,813
732,218
3,223,476 2,537,735
3,336,990 2,492,305
722,991
3,617,688 2,770,264
075 728 713 5,805,317
$ 39,959,134 6,1 54,813 6,330,409
$ 44,344,510 6,454,286
$ 4s,796,861 6,552 ,286 7,116,665
$ 49,576,524$ 45, 485,079 $ 48.002 ,583
$ 534,722 249,903
2,028,869 1,466,523 2,365,608 4,395,714
11.422 ,844 11,041,339
567,948 $ 282,146
2,024,082 1 ,1 65,048 2,461,032 4,922,588
$ 538,3e8 259,569
2,184,620 1,'19'1,151
2,153,921 7,183,972
13,51 1,631
$ s97,348 240,997
2,170,036 1,587,244 1,606,798 8,928,178
661,784 217,172
2,206,722 1,588,066 2,360,697
$ 748,246 199,648
2,469,465 1,682,397 1,695,117
11,s29,905 18,324,778
$ 673,860 204,592
2,400,747 1,632,567 2,098,639 6,479,932
337
$
15,0 73,637 1 5,1 30 ,601 22,108,078
3,794,631 2,746,393
731,844
3,775,728 2,833,449
780,666
3,999,239 3,148,295
780,837 983,243
4,015,527 3,186,384
787,942 128.795
4,138,346 3,318,008
806,364 460,559
4,313,923 3,328,306
826,986 140,450
4,574,181 2,996,396
890,893 577.4113.221 ,140 950
10,494,008
$ 21 ,916,8s2 7,723,793 8,911 ,614 8,118,648
$ 23,249,249 8,609,66s
$ 26,934,443 9. 038,881
$ 30,831 ,355 $ 22,529,218
(22,883,s00) (17,234,497) (23,125,s19) (28,969,522) 788 239
8, 723,277
$ 18. 765j32 $ 22,423,245
(19,801,609) 4,504,132
@ (23,112,478)
918 76 (25,818,635)
2,756,801 S?3F61€-34-i-
2,268,991 2,057,379 F-Jî4Fdsso-6l5-J21^0-68-140I
16
- 109 -
(continued)
City of Gedar Falls, lowa Changes in Net Position
Last Ten Fiscal Years (Accrual basis of accounting)
(Page 2 of 2)
Fiscal Year
2004 2005 2006 General Revenues and Other Changes in Net position
Governmental activities: General revenues:
Property taxes and assessments Other city taxes Use of money and property lntergovernmental Miscellaneous Gain on sale of assets UtiliÇ contribution in lieu of taxes
Transfers Total governmental activities
Business-type activities: General revenues:
Property taxes and assessments Use of money and property
Transfers Total business-type activities
Total primary government
Ghange in Net Position Governmental activities Business-type activities
Total primary government
190,965 (343,351) 1450 ,93s)
$ 27,273,439 g 27,953,874 $ 30.01 8,681
$ 10,333,942 $ 9,228,706 $ 9,106,402 1,760,680 2,531,264
ElõF8e¡-silT-f TF--?,666-
$ 14,110,761 4,169,362 2,618,556 3,785,710
946,12',1
72,034 1,400,000
(2O,070',)
$ 16,034,121 4,349,790 1,874,497 3,809,479
207,661 65,215
1,400,000 556,462
28,297,225
$ 17,163,242 4,709,758 2,425,140 3,527,541
491,847
1,400,000
30,469,616
301 ,153
27.082 ,474
54,475 116,420 20,070
149 212,962
4621 (752,088)
2 162
-110-
(continued)
Fiscal Year 2007 2008 2009 2010 2011 2012 2013
$ 18,931 ,378 $ 4,582,479 2,924,080 3,5s1,69s
474,249
19,468,413 5,060,324 2,868,337 3,728,669
850,716
$ 20,994,332 $ 5,308,296 2,421,181 3,693,255
965,194
1,500,000 (413,819)
34,468,439
22,066,237 5,022,500 1,640,456 4,2s8,253 1,127,964
1,524,990 82,s59
$ 23,373,676 5,291,546 1,344,936 4,269,554 1,324,189
5,668 1,57s,010
(5,771,627\
g 23,802,'t24 5,754,706 1,275,402 4,256,073 1,014,890
6,606 1,625,000
(8,91 9,1 54)
$ 24,695,940 5,544,604 1,268,202 4,40s,345 1,375,437
1,637,000 (1,843,4321 37,083,096
1,400,000 1 49,1 30
1,400,000 ß52,444\
32.01 3,011 32,524,015 35,722,959 31.41 8,352 28,85s ,647
1,287 424,012
(149,130)
1,609 351,099 852,444
1,961 224,133 413.819
36,137 38,886 8,91 9,154
276,169
$ 32,289,180 't,205,152
$ 33,729,167 639,913 8,955,291 1 ,882,318
$ 38,965,414$ 3s.108 ,3s2 $ 35.71 8,811 $ 37.227 ,913 $ 37,810 ,938
$ 12,211,402 $ 9,411,s37 $ 8,649,304 $ 12,83s,45s $ 14,183,855 $ s,730,1284,780,301 Wry __Æ:4! _ 1,784,0s1 8,078,552 11,012,670F]6-B%?-?0r FlæEf5_ 5læ46m- Fl4sr3s--sl @ ffi $ 8,1 13,574
534
-111-
City of Gedar Falls, lowa Fund Balances, Governmental Funds,
Last Ten Fiscal years (modified accrual basis of accounting)
Fiscal Year 2004 2005 2006 2007
General Fund Nonspendable Assigned Unassigned
ïotal general fund
All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned
ïotal all other governmental funds
$5. 808,422 $ 6.375,134 $ 7 342 $ 7. 565,592
$ $ $ $78,299 896,147
4,833,976
86,234 841,776
5,447,124
119,589 695,321
6,251,432
147,220 1,196,550 6,221,822
$ 143,013 $ 21,379,781 12,179,838
7,984,681 (2,458)
140,490 22,7'12,063 12,689,217 8,982,080 (50e,6e0)
$ 133,443 24,404,192 13,199,514 7,020,781 (se8,e88)
$ lsr,sro 24,333,854 13,069,761 9,382,350 (701,s32)
$41 s 44.014,160 $ 44.1 63,942 $ 46,23s,s43
-112-
Fiscal Year 2008 2009 2010 2011 2012 2013
$ $ $ $131,466 1,122,010 6,291,771
132,803 1,246,712 6,473,074
178,147 1,620,436 6,489,104
181,341 1,445,007 6,498,932
$ 180,689 1,722,948 7,045,817
241,612 1,817,084 6,978,807
$
$ 7,545,247 $ 7,8s2,589 $ 8.287 ,687 $ 8.12 5,280 $ 8.949 ,454 $ 9.037 ,503
$ 83,341 27,182,248 13,723,684 9,700,146 (358,297)
$ e¿,zgt 25,967,407 14,395,783 9,526,406 (186,530)
$ 126,2ss 26,841,011 15,163,647 11,201,701 (1,740,555)
$ 201,20s $ 27,037,209 15,697,718 10,758,664 (2,840,288)
256,912 25,892,197 16,145,534 12,916,571 (4,343,889)
$ 306,613 25,435,109 1ô,551 ,1 1 5 14,559,803 (1 ,193,291)
$ 50,331,122 $ 49,787,857 $ 51.592 ,ose $ $ s0,867 ,325 $ 55.659 ,349
-113-
City of Gedar Falls, lowa Changes in Fund Balances, Governmental Funds,
Last Ten Fiscal years (modified accrual basis of accounting)
Fiscal Year 2004 2005 2006 2007
Revenues: Property taxes and assessments Other city taxes Licenses and permits Use of money and property lntergovernmental Charges for services Fines and forfeitures Miscellaneous Utility contribution in lieu of taxes
Total revenues
Expenditures: Current:
Public safety Public works Health and social services Culture and recreation Community and economic
development General government
Debt service Principal lnterest
Capital projects Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses): lssuance of long-term debt Premium on long-term debt lssuance of refunding debt Discount on long-term debt Land contract Payments on refunding bonds Transfers in ïransfers out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital expenditures
1 400,000 '1,400 000 000 $ 34,436 ,522 34,556 ,421 $ 37.221 ,187 $ 39,554,090
$ 14,085,403 $ 4,169,362
947,159 2,619,556 6,324,293 1,994,119
547,257 2,460,394
16,033,559 $ 4,210,659
923,727 1,874,497 6,457,295 2,244,467
436,741 975,479
17,186,164 4,712,426
982,954 2,425,140 6,834,940 2,599,376
652,321 437,966
1,400,000
$ 18,931,049 4,564,009
785,116 2,924,090 7,047,600 2,797,909
466,199 649,1 1g
1
$ 6,288,812 $ 6,997,749
50,921 4,246,929
2,600,174 3,075,636
4,025,954 1,067,520 6,656,971
6,692,529 $ 7,364,214
135,160 4,756,551
2,523,565 3,455,372
3,409,713 1,029,414
7,173,967 $ 7,595,353
I gg,1 64 5,277,697
2,394,359 3,814,373
2,920,000 937,274
7,373,926 7,929,949
838,195 5,330,492
2,345,966 3,929,549
3,040,000 916,414
5,392,9998,257 ,673 I 612 287 $3s 6$ 37,623j90 $ 39,914,464 $ 37,096,269
$ (564 ,044\ ,066 769 $ (2,693,277) $ 2,457,a12
$ 2,355,000 $ 5,45o,ooo $ 2,g3s,ooo $
(14,130) 1,200,000
3,777,372 (3,822,938)
(17,594)
7,349,961 (6,924,992)
5,650,000 (43,274)
(5,650,000) 5,999,757
(5,289,524) 5,914,949
(5,942,507)
$ 3,495,304 $ 5 957,375 $ 3 5e$ 72,341 2,890,606 $ 809,682 $ 2,s30,1s3$ 2,931,260 $
18.0o/o
-114-
16.9o/o 13.8% 14.60/o
Fiscal Year 2008 2009 2010 2011 2012 2013
$ 19,459,594 $ 5,032,799 1,031,667 2,969,337 9,1 53,1 04 2,927,076
421,274 803,161
20,994,332 $ 5,339,099
767,939 2,421,181
10,199,992 2,969,223
436,578 994,537
22,066,237 $ 5,029,677 1,106,716 1,640,456
12,351,723 3,115,157
373,752 1,057,446 1,524,990
23,379,676 5,292,406 1,093,024 1,344,936
21,764,416 3,179,755
400,965 1,370,497 1 ,575,010
$ 23,766,946 $ 5,755,920 1,162,401 1,275,402
19,920,930 3,507,339
430,016 1,052,265
24,696,793 5,519,022 1 ,076,196 1,268,202
12,599,954 3,386,415
449,165 1 ,359,1921,400 000 1,500 ,000
$+z 997,0'11 $ 1,625,000 1 637,000
45,611,979 $ ¿e, 266j54 $ 59 389,695 $ 57,496,119 $51 990 919
$ 7,996,188 $ 7,292,523
97,296 5,536,493
7,551,507 $ 7,793,997
163,528 6,065,699
2,253,049 4,381,790
2,910,000 739,841 486,565
7,922,903 $ 8,816,279
87,304 6,076,259
8,155,206 $ 9,027,992
17g,Og4 6,557,554
8,375,159 $ 10,910,336
167,759 6,410,049
8,ggg,g42 10,099,252
172,284 6,449,626
2,646,490 4,694,063
2,529,313 4,1 69,1 61
2,850,000 806,181
9,857 ,325 13
2,291,961 4,613,694
2,930,000 728,057
16,357,596
2,602,604 4,316,949
3,235,000 596,048
2 00 053
2,447,212 4,775,991
3,415,000 503,383
11,390,660
2,685,000 271,009
9,544,629 $ 41,113,460 45,335 ,875 $ 49,823,931 $ 54,669 ,490 $ 48,295,538 $ 45,542,295
$ 1,883,551 $ 276,004 $ (1.557 ,777\ $ 4 720,195 $ g,2oo,sg1 $ 6,449,624 $ 4,B2o,ooo $
(1,645,000) (30,1 25)
8,359,264 (9,227,533)
10,291,922 (10,906,635)
$ 3,44o,ooo $ 227,162
5,135,000 (28,724)
(5,325,000) 11 ,017,106
(10,755,275) 9,806,376
(15,504,674)
3,320,000 (8,300)
(3,295,000) 11,275,219
(19,720,563) 13,297,694
(14,976,969)
$ $
$ 2,275,606 $ (51 4,713t $ 3,710,269 $ (5,699,299 $ (8,41S ,644') $_l,1sg z_ _q__(238,r0Ð. S__2,ß2,4e2_ $_ (er8,l_q!l
11.4% 10.1o/o 10.3o/o 10.7%
$ zer,ggz
-115-
10.2% 8.0%
City of Gedar Falls, lowa Assessed and Taxable Value of property
Last Ten Fiscal Years (Unaudited)
Real and Personal Pro perty Reqular Aqricultural Land
Levy Year
For Fiscal Year
Endíng June 30,
Taxable Value
Assessed Value
Taxable Value
Assessed Value
2003 2004$g17,g96,gg0$1,420,200,646$6,926,500$6,926,500
2004 2005 903,439,479 1,669,493,277 5,419,730 5,418,730 2005 2006 920,739,030 1,732,109,902 5,347,650 5,347,650 2006 2007 985,250,969 1,925,997,344 5,771,140 5,771,140 2007 2008 1,019,530,694 2,00g,35g,g26 5,453,530 5,453,530 2008 2009 1,099,295,277 2,246,395,915 5,439,677 6,036,1 10 2009 2010 1 ,150,079,051 2,330,760,1 55 5,525,129 5,886,760 2010 2011 1,195,969,161 2,393,911,221 5,3g1,329 8,196,740 2011 2012 1,254,921,347 2,450,027,999 5,572,605 8,292,560 2012 2013 1,393,51 1,204
Source: Black Hawk County Auditor's Office 2,609,407,333 5,671,067 9,912,510
Note: Property in the city is reassessed every other year. Tax rates are per $1,000 of assessed value.
-116-
Taxable Value
Assessed Value
Total Taxable Value as a
Percentage of Assessed
Value
Total Total Direct Tax Rate
$ 824,823,480 $ 1,427,127,146 57.g0 % $ 14.10410 908,959,209 1,673,902,007 54.30 13.65325 926,096,690 1,737,456,552 53.30 14.05084 991,022,009 1,931 ,759,494 51.30 13.84420
1,023,994,214 2,013,912,356 50.g5 13.60793
1,103,733,954 2,252,421,925 49.00 13.26327
1 ,155,603,179 2,336,646,915 49.46 13.O2110 1,191,350,490 2,402,107,961 49.60 12.99252
1,260,393,952 2,459,320,459 51.27 12.86369
1,399,192,271 2,619,319,g43 53.44 12.20300
-117 -
City of Gedar Falls, lowa Property Tax Rates
Direct and Overlapping Governments Last Ten Fiscal Years
(Unaudited)
City of Cedar Falls
Overlappinq Rates
Black Hawk County
Fiscal Year
Operating Millaqe
Debt Service
Total City Millage
Operating Millage
Debt Service
Total County Millage
2004 $ 11.93225 $ 2.17185 $ 14.10410 $ 7.15152 $ 0.59469 $ 7.74621 2005 11 .85492 1 .79833 13.65325 6.90953 0.58284 7.49237 2006 12.39156 1.65928 14.05084 7.04780 0.56052 7.60832 2007 12.51746 L32674 13.84420 6.83182 0.55784 7.38966 2008 12.41427 1 .19366 13.60793 6.82613 0.58407 7.41020 2009 1 1 .94886 1 .31441 13.26327 6.35616 0.57975 6.93591 2010 11 .82625 1 .19485 13.02110 6.12831 0.57689 6.70520 2011 11.81700 1.17552 12.99252 6.22972 0.44212 6.67184 2012 11.79924 1.06445 12.86369 5.92415 0.67322 6.59737 2013 11.68479 0.51821 12.20300
Source: Department of Management website 5.59849 0.64144 6.23993
Note: The city's general fund maximum property tax rate may only be $g.1o per $1 ,000 of valuation. The remaining portion of the operating rate and the rate for debt service are set based on each year's requirements.
-118-
Overlapp ing Rates
Schools
Operating Millaqe
Debt Service
Total School Millage Other
$ 13.91234 $ 13.00577
13.02846
13.02447
13.13283
13.73251
13.73228
14.15215
13.78651
1337802
Total
$ 13.91234 $ 1.13876 $ 36.90141
13.OO577 1.36743 35.51882
13.02846 1.42197 36.1 0959
13.02447 1.34392 35.60225
13.13283 1.18405 35.33501
13.73251 1.36422 35_29591
13.73228 1.33721 34.79579
14.15215 1.38794 35.20445
13.78651 1.28109 34.52866
13.37802 1.3377 33.15865
-119-
City of Cedar Falls, lowa Pri ncipal Property Taxpayers
Current Year and Nine Years Ago
2004
Taxpaver
Assessed
Valuation for Fiscal Year
2003 -2004 Rank
Percentage
of Total
Assessed
Valuation
Target Corporation
College Square Mall Assoc. LLC
R and N lnvestments
Walmart Re Business Trust
WB CF Assoc LTD Partners
Twenty Seventh Street Assoc, LLC
Cedar Falls lnvestments, LLC
Gold Falls Villa Apart LLC
Standard Distribution Co.
Harvest Mallard Point Retirement
Quest Corporation (US West, lnc)
Davenport Farm & Fleet, lnc.
Cedar Falls Retirement Residence
Christopherson, Jerry
Lockard Blackhawk LC
SUH Northern lowa, LLC
$ 29,994,090
5,140,960
6,818,405
5,833,160
6,855,470
5,322,420
6,134,500
5,269,390
2.10 %
0.36
0.49
0.48
0.41
0.48
0.37
0.43
0.37
5"49 o/o
1
I
6,987,210 2
4
6
3
7
5
I $ 78,354,595
Source: Black Hawk County Auditor's Office
Note: There was only data available for the top nine taxpayers for 2004.
-120-
2013
Assessed
Valuation for Fiscal Year
2012 - 2013 Rank
Percentage
of Total
Assessed
Valuation
$ 85,871,200
30,224,620
13,909,090
13,574,740
12,739,950
11,533,470
9,243,740
8,964,160
8,326,900
8,164,470
3.28 o/o
1.15
0.53
0.52
0.49
0.44
0.35
0.34
0.32
0.31
1
2
3
4
5
6
7
I I 10
$ 202,550,240 7.73 %
-121-
City of Gedar Falls, lowa Property Tax Levies and Gollections
Last Ten Fiscal Years (Unaudited)
Levy
Year
For Fiscal
Year Endíng
June 30, Total
Tax Lew
Current
Tax
Collection
Percentage
of Current
Taxes
Collected
Delinquent
Tax
Collectíons
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 2013 17,297,169 Source: Black Hawk County Auditor's Office.
2OO4 $ 11,796,749 $ 11,924,764 100.24% $ 1O4 2005 12,646,619 12,643,423 gg.g7
2006 13,267,496 13,396,021 100.97 1,479 2007 13,963,307 14,007,952 100.32 108 2008 14,161,591 14,114,301 99.67 6,972
2009 14,989,920 14,915,373 99.50 1,464 2010 15,398,267 15,370,354 gg.g2 2,009
2011 15,871,931 15,850,623 gg.g7 7,350
2012 16,552,935 16,576,996 100.1 5 15,223
17,091,764 gg.g7 3,967
-122-
Total Tax
Collections
Total Tax Collections as a Percentage
of Total
Tax Lew
Outstanding
Delinquent
Taxes
Delinquent
Taxes as a Percentage
of Total
Tax Levy
$ 11,924,969 100.24 % $ g4,733
12,643,423 gg.g7
13,397,500 100.99
14,007,960 100.32
14,121,273 99.72
14,916,937 99.51
15,372,363 gg.g3
15,857,973 gg.g1
16,592,219 100.24
17,095,731 98.89
0.72 o/o
84,230 0.67
56,511 0.43
49,550 0.35
47,296 0.33
45,039 0.30
39,266 0.26
38,390 0.24
22,693 0.14
25,924 0.15
-123-
City of Cedar Falls, lowa Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
Fiscal
Year
General
Obligation
Bonds
Tax lncrement Financing
Bonds
General Obligation
General Obligation
Capital Loan
Note
General
Obligation
Bonds
Revenue
Debt
2004 $ 19,210,000 $ 3,115,000 $ 2,850,000 $ 4,705,000 2005 16,115,000 7,225,000 2,160,000 4,075,000 2006 16,960,000 6,395,000 2,980,000 3,420,000 2007 14,670,000 5,545,000 2,270,000 2,740,000 2008 11,055,000 4,665,000 4,820,000 5,925,000 1,005,000 2009 9,435,000 3,760,000 4,435,000 5,295,000 765,000 2010 5,360,000 2,865,000 9,725,000 4,735,000 2011 4,340,000 2,015,000 8,360,000 4,160,000 2012 1,125,000 10,210,000 2,755,000 210,640 2013 575,000 g,075,000 2,335,000 210,640
Note: Details regarding the city's outstanding debt can be found in the notes to the financÍal statements.
1 Population and personal income data can be found on page 136
-124-
Busine SS- Activities
Capital
Loans
Total
Primary
Government
Percentage
of Personal lncomel
Per
Capital
795
813
814
692
728
619
588
481
385
$ 28,890,000 2.96 o/o
29,575,000 2.95
29,655,000 2.60
25,225,000 2.15
27,370,O00 2.15
23,690,000 1.89
22,695,000 1.66
18,875,000 1.32
820,000 15,120,640 1.O4
625,000 11,920,640 0.77 301
-125-
City of Cedar Falls, Iowa Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year
General
Obligation
Debt
Taxable
Value of Percentage
Taxable Value
of Property
Assessed
Value of P
2004 $ 24,175,000 $ 924,923,490 2.93 % $ 1,427,127,146 2005 25,500,000 908,859,209 2.81 1,673,902,007
2006 26,235,O00 926,096,690 2.83 1,737,456,552
2007 22,485,O00 991,022,009 2.27 1,931 ,759,494
2008 26,365,000 1,023,994,214 2.57 2,013,912,356
2009 22,915,000 1,103,733,954 2.08 2,252,421,925
2010 22,685,000 1 ,155,603,179 1.96 2,336,646,915
2011 18,875,000 1,191,350,490 1.58 2,402,107,961
2012 14,090,000 1,260,393,952 1.12 2,458,320,459
2013 10,995,000 1 ,399,1 92,271 0.79 2,619,319,g43 Note: Detaíls regarding the city's outstanding debt can be found in the notes to the financial statements.
1 lncludes only general obligation debt supported by property tax dollars.
-126-
Percentage
Assessed
Value
of Property
1.69 %
1.52
1.51
1.16
1.31
1.02
0.97
0.79
0.57
0.42
665.19
700.93
720.41
617.23
701.51
599.01
588.33
480.77
358.89
279.80
Per
-127 -
City of Cedar Falls, lowa Direct and Overlapping Debt
As ofJune 30,2013
Jurisdiction
Net General Obligation
Bonded Debt
Outstanding
Percentage Applicable
to City 1
Amount Applicable
to
Government
Direct, City of Cedar Falls, lowa $ 8,650,000 100.00 % $ 9,650,000
Overlapping:
Black Hawk County $ 39,020,000 32.01 g 12,490,302 Cedar Falls Public School District
Area Vll Hawkeye Community College 4,770,O00 19.04 908,208
Total Overlapping $ 43,790,000 $ 13,398,510
Total $ 52,440,000 $ 22,048,510
Source: Black Hawk County Audítor
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Cedar Falls. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
t' The percentage of overlapping debt applicable is estimated using net taxable property values. Applicable percentages were estimated by determining the portion of the County's net value that is within the government's boundaries and dividing it by the county's total value.
-128-
City of Cedar Falls, lowa Legal Debt Margin lnformation
Last Ten FiscalYears
FiscalYear
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit as a percentage of of debt limit
2004 2005 2006 2007 2008
$ 71,356,357 $ 83,695,100 $ 86,872,828 $ 96,5A7,924 $ 100,g07,511
27,265,000 29,260,000 29,660,000 24,555,000 2g,070,000 $ 44,091,3s7 $ 55,435,100 $ 58,212,929 g ?2,032,9% $ ?2,13?,511
38.21% 33.77o/o 32.99% 25.42o/o 27.85o/o
Note: Under lowa code, the cíty's outstanding general obligation debt should not exceed 5 percent of total assessed property value.
-129-
2009 2010 2011 2012 2013
$ 114,324,931 $ 118,846,750 $ 122,094,381 $ 125,016,901 g 132,967,511
24,235,000 25,005,000 20,770,000 16,660,000 13,205,000
$ 90,089,931 $ 93,841,750 $ 101,324,381 $ 108,356,901_ S__119J62þ11
21.20o/o 21.04o/o 17.01o/o 13.33% 9.93%
Legal Debt Margin Galculation for Fiscal year 2013 Estimated actualvaluation $ 2,659,g50,229
Debt limit - 5o/o of total actual valuation Debt applicable to debt limit: General obligation bonds General obligation bonds - component unit
Legal debt margin
$ 132,967,511
1 1,610,000 1,595,000
$ 119,762,511
- 130 -
City of Gedar Falls, lowa Revenue Bond Coverage
Sewer Authority Last Ten Fiscal Years
Fiscal Year
Gross Revenues
Less: Operating
Expenses 1
Net Revenue Available for Debt Servíce
Debt Service Requirements 2
Principal lnterest
2004 $3,935,712 $1,533,995 92,301,927 $ 395,000 $ 172,735 2005 3,943,396 1,622,996 2,320,510 630,000 212,069 2006 4,118,235 2,021,641 2,096,594 655,000 175,227
2007 4,157,339 2,350,397 1,906,941 680,000 146,799
2008 4,070,619 1 ,977 ,204 2,093,415 1 ,735,000 1 16,36g
2009 4,169,965 2,077,597 2,092,379 240,000 28,583
2010 4,066,1 10 2,076,699 1,999,421 765,000 22,103
2011 4,162,150 2,113,293 2,049,967
2012 4,333,859 1,902,799 2,431,060 5,108
2013 4,596,372 2,254,091 2,342,291 6,319 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
t Net of depreciation, interest, and debt service transfers. 2 tncludes principal and interest of revenue bonds only.
-131 -
Debt Service Requirements2
Total Coverage
$ 567,735 4.05
842,069 2.76
830,227 2.53
826,798 2.19
1,851,369 1.13
268,583 7.79
787,103 2.53
5,109 475.93
6,319 370.67
-132-
Fiscal Year
2003 - 04
2004 - 05
2005 - 06
2006 - 07
2007 - 08
2008 - 09
2009 - 10
2010 - 11
2011 - 12
2012 - 13
City of Cedar Falls, lowa Sales History and Total Sewer Gharges
Last Ten Fiscal years
Water Sales (CCF)
1,969,675
1,700,179
1,737,946
1,695,516
1,765,541
1,873,290
1,523,693
1,664,699
1 ,750,015
1,826,799
Source: Cedar Falls Utilities
Sewer Charqes
$ 3,686,991 3,603,779
3,644,514
3,694,725
4,492,230
4,666,695
4,665,753
4,735,793
4,953,594
5,239,056
- 133 -
Gity of Cedar Falls, lowa Water Meter by Rate Glass
Last Ten Fiscal Years
Fiscal Year Residential Commercial lndustrial Government Other Total
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10,365
10,764
11,057
11,237
11,445
11,259
11,529
11,914
11,957
12,329
890
909
936
955
983
972
984
991
995
1,002
173
177
183
190
195
197
196
200
208
211
11,470
11,890
12,214
12,420
12,664
12,465
12,746
13,041
13,196
13,576
39
37
35
35
38
35
34
33
33
32
3
3
3
3
3
3
3
3
3
3
Source: Cedar Falls Utilities
-134-
City of Gedar Falls, lowa Largest Sewer Customers
Fiscal Yea¡ 2O13
Water Sales
Percent of TotalWater
Sales Sewer
Charges
Percent of TotalSewer
ChargesCustomer
Uníversity of Northern lowa
Nazareth Lutheran Church
Western Home Communities
Country Terrace MHP LLC-700 W Ridgeway
Target Corporation
Metokote Corporation
College Park Mills
CF Schools
Newaldaya Lifescapes
Sartori Memorial Hospital, lnc.
Gold Falls Villa Apts.
Clark Enterprises LLC
ïotal2013 CCF Total 2013 Sewer Billings
'l
2
3
4
5
6
7
I I
10
11
12
95,943
30,323
24,686
20,230
17,471
16,495
10,569
9,736
9,311
8,714
8,353
6,193
1,826,799 $5,238,056
5.25 %
1.66
1.35
1.11
0.96
0.90
0.58
0.53
0.51
0.48
0.46
0.34
251,099
65,136
97,795
85,340
57,012
35,986
36,271
29,406
31,739
'18,874
49,251
38,364
4.79 %
1.24
1.87
1.63
1.09
0.69
0.69
0.56
0.61
0.36
0.94
0.73
$
Source: Cedar Falls Utilities, Finance Dept. special lS report
- 135 -
City of Cedar Falls, lowa Demographic and Economic Statistics
Last Ten Galendar Years
Year Population Personal
lncome
Per Capita Personal
tncomel Median
Age
School
Enrollment
Unemployment
Rate
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
36,343
36,390
36,417
36,429
37,593
38,255
38,559
39,260
39,260
39,260
26,846
27,531
31,331
32,239
33,839
32,705
35,409
36,376
36,903
39,195
26.0
25.7
25.7
25.7
25.7
25.7
25.4
26.8
26.8
26.8
4,437
4,393
4,435
4,502
4,501
4,515
4,679
4,645
5,069
5,121
$ 975,664,179 $ 1,001 ,577,790
1,140,991,027
1,174,399,102
1,271,771,137
1,251,129,775
1,365,261,664
1,428,121,760
1,449,911,790
1,539,795,700
4.0
3.7
2.9
2.3
2.6
3.2
4.2
5.9
3.8
3.5
Sources: Population provided by the US Census Bureau. School enrollment is supplied by the Cedar Falls Board of Education. Unemployment data provided by the lowa Workforce.
Note: Population and median age information are based on surveys conducted during the last quarter of the calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census at the start of the school year.
1 Per Capita lncome is based on Metropolitan Waterloo/Cedar Falls and based on figures from Bureau of Economic Analysis
- 136 -
City of Cedar Falls, lowa Principal Employers
Gurrent Year and Nine Years Ago
2004
Employees Empl
Number of Percentage of Total City
20.660/0
10.53o/o
2.99o/o
2.91%
1.94%
2.15o/o
1.600/0
1.31o/o
131%
1.29o/o
oyees'l Rank Empl oyment John Deere Product Engineer Center 2
Wheaton Franciscan Healthcare 2
University of Northern lowa
Hy-Vee Food Stores 2
Area Education Agency 267
Wal-Mart Super Center 2
Cedar Falls Communíty School District
Target Distribution
City of Cedar Falls/Municipal Utilities
Viking Pump lnc, Unit of lndex Corp.
Martin Brothers Distributing Co., lnc
The Western Home
Principal Financial Group
Cedar Falls Lutheran Home
Total
4,265
2,173
617
600
400
443
330
271
271
267
1
2
3
4
6
5
7
8
I 10
9,637 46.69%
source: official Bond statements from public Financial Management, lnc.
1 Number of employees includes all full{ime, part-time and seasonal employees.
2 Number of employees includes multiple locations in both Cedar Falls and Waterloo.
-137 -
2013
Number of Emp loyeesl Rank Em
6,739
3,027
2,586
1 ,155
1 ,150
750
750
572
540
466
1
2
3
4
5
6
7
I I 10
Percentage of Total City
28.43o/o
12.77o/o
10.91%
4.87%
4.85%
3.16%
3.16%
2.41o/o
2.28o/o
1.s7%
17,735 74.81%
- 138 -
City of Gedar Falls, lowa Full-Time Equivalent Gity Government Employees by Function/Department
Last Ten Fiscal Years
Full-Time Equivalent Employees as of June 30 2004 2005 2006 2007 2008
Public Safety Police Fire lnspection Services
Public Works Streets Parking Meter Engineering
Culture and Recreation Human & Leisure Administration Cultural Services Library Cemetery Golf Parks Recreation Visitor & Tourism Senior Services
Community & Economic Development Developmental Services Admin. Economic Development Planning Services Block Grant Housing Vouchers Section I Housing
General Government Mayor's Office Administrative Services Admin. Financial Services Legal Services Personnel Public Records Cable TV Print Shop Public Buildings
lnternal Service lnformation Systems Vehicle Maintenance
Sewer Refuse Storm Water
Total 305.75 307 .62 313.50 317.65 320.20
49.89 34.60 6.00
24.82 3.10
13.60
2.00 9.05
14.80 4.40 6.40
16.20 31.05 2.40
'1.50
1.85 3.43 2.20 2.50
1.50 1.50 4.95 3.00 2.00 3.50 4.00 1.00
11.31
3.00 6.40
17.30 16.50
49.89 34.60 6.00
24.35 3.10
11.60
50.89 35.60 6.50
25.35 3.10
11.60
2.25 8.81
16.20 4.60 7.15
18.68 31.05 2.60
1.50 1.85 3.43 2.20 2.50
1.50 1.50 4.95 2.00 2.00 3.50 4.00 1.00
14.1"1
4.00 6.40
16.88 15.80
5't.49 35.65 6.50
24.37 3.66
11.57
2.25 8.00
17.53 4.60 5.s0
18.48 3O.BB
2.90 0.50
1.50 1.77 3.68 2.17 1.79
1.50 1.50 5.95 3.00
3.45 4.30 1.00
14.71
4.00 6.10
16.30 17.80 3.25
51.69 35.65 6.40
24.37 3.61
11.42
2.25 8.00
17.25 4.60 4.70
18.90 32.23 2.90 0.50
1.50 2.10 3.68 1.84 1.79
1.50 1.50 6.45 3.00
3.70 4.50 1.00
15.25
4.00 6.10
16.72 17.80 3.30
2.00 8.81
16.20 4.60 7.15
18.68 31.05 2.60
1.50 1.85 3.43 2.20 2.50
1.50 1.50 4.95 3.00 2.00 3.50 3.00 1.00
12.11
3.00 6.40
16.75 16.80
Source: City's Financial Plans
- 139 -
Full-Time Equivalent Employees as of June 30 2009 2010 ry1 2012 2013
53.44 35.65 6.40
20.56 3.61
11.42
52.69 35.65
7.40
20.56 3.61
11.42
51.74 33.80
7.40
21.56 3.61
11.42
2.25 8.48
17.73 4.60 5.00
20.65 35.26 3.20 0.78
1.50 2.00 3.68 1.67 1.87
1.50 1.50 6.45 3.00
50.87 33.80
7.40
22.26 3.61
11.42
50.77 35.20 9.s0
22.06 3.81
11.52
1.50 2.02 3.68 1.79 1.93
1.50 1.50 5.95 3.00
2.25 8.00
17.25 4.60 4.90
20.10 33.50
3.20 1.23
2.25 8.20
17.55 4.60 5.30
20.10 34.26 3.20 1.23
1.50 2.00 3.68 1.69 1.84
2.25 8.50
18.56 4.60 5.00
20.65 35.26 3.20 0.78
1.50 2.12 3.68 1.69 1.92
2.25 8.52
19.84 4.60 5.00
21.45 35.26
3.20 0.78
1.50 2.26 3.68 1.68 1.79
1.50 1.50 6.45 3.00
3.70 4.50 1.00
15.25
4.00 6.10
18.38 19.30 3.30
1.50 1.50 6.45 3.00
3.70 4.50 1.00
15.25
1.50 1.50 6.45 3.00
3.70 4.50 1.00
15.84
4.00 6.10
18.38 21.35
4.30
4.10 4.50 1.00
't5.84
4.00 6.10
18.38 21.35 4.30
3.70 4.50 1.00
15.84
4.00 6.10
18.38 22.35 4.30
4.00 6.10
18.38 19.30 3.30
325.00 326.71 3s0.82 330.69 335.98
-140-
Gity of Gedar Falls, lowa Operating lndicators by Function
Last Ten Fiscal Years
Fiscal Year
2004 2005 2006
Public Safety
Police
Physical arrests
Traffic violations
Parking violations
Fire
Number of calls answered
lnspections conducted
Sewer
Sewage System
Daily average treatment in gallons
Maximum daily capacity of treatment plant in gallons
Water System
Daily average consumption in gallons
Maximum daily capacity of plant in gallons
Refusel
Solid Waste
32 Gallon Containers
68 Gallon Containers
95 Gallon Containers
Yard Waste
95 Gallon Containers
Sources: Various city departments
1,672
5,453
37,260
1,511
2,166
4,120,000
21,600,000
1,616
6,007
34,056
1,452
1,807
4,600,000
21,600,000
1,670
4,705
29,952
1,599
2,517
4,550,000
21,600,000
3,900,209
21,600,000
3,439,943
21,600,000
3,636,259
21,600,000
3,155
5,679
1,093
3,299
5,903
1,294
3,344
5,997
1,464
5,2904,499 4,924
' Statistícs begin in Fy04
-141 -
Fiscal Year 2007 2008 2009 2010 2011 2012 2013
1,421
2,562
25,575
1,925
2,331
5,730,000
21,600,000
1,353
7,267
26,354
1,936
2,470
6,510,000
21,600,000
1,501
3,544
25,267
2,016
2,076
5,130,000
21,600,000
1,403
3,237
21,726
1,937
3,750
5,726,000
21,600,000
1,199
2,966
18,646
1,924
1,854
5,210,000
21,600,000
1,099
2,939
18,619
2,166
1,929
4,100,000
21,600,000
1,179
5,554
20,ggg
2,190
2,943
4,100,000
21,600,000
3,379,709
21,600,000
3,660,000
21,600,000
4,110,000
21,600,000
4,135,000
22,913,0OO
3,400,000
23,400,000
3,400,000
23,400,000
3,400,000
23,400,000
3,392
6,169
1,652
3,529
6,273
1,760
3,735
6,337
1,876
4,047
6,490
1,999
4,343
6,790
2,163
4,572
6,990
2,301
4,600
6,ggg
2,307
5,575 5,769 5,ggg 6,281 6,554 6,741 6,916
-142-
City of Cedar Falls, lowa Gapital Asset Statistics by Function
Last Ten Fiscal Years
FiscalYear
Public safety
Police
Stations
Patrol Units Fire
Stations
Fire apparatus Public works
Streets
Miles
Street lights Health and social services
Hospital
Number of patient beds Cultural and Recreation
Hearst Center for the Arts Library
Cemeteries
Acreage
Golf
Miniature golf course Parks
Acreage
Recreation
Recreation Center Swimming pools
Softballfields Baseballfields Tennis courts
Sewer
Sewage System
Miles of sanitary sewer Miles of storm sewers Number of treatment plants
Number of service connectors Water Systems
Miles of water mains Number of service connectors Number of city owned fire hydrants
2004 2005 2006 2007 2oO8
2
8
2
I
569 3
56.9
3
1
12
200
2,670
1
101
1
12
203
2,695
1
101
1
1
3
56.9
3
1
34
1,116
162
161
1
11,039
175.30
11,407
1,593
205
2,705
1
101
3
1
34
1,116
163
162
1
11,649
184.70
11,682
1,717
1
10
210
2,856
101
34
1,116
169
167
1
1 1,966
181.80
12,041
1,771
1
10
215
2,998
101
34
1,136
177
168
1
11,975
192.90
12,212
1,951
2
I 2
8
10
2
I
1
1
3
56.9
3
1
34
1,116
56.9
1
I 3
1
1
3
'l
1
3
1
3
I 2
6
1
3
I 2
6
1
3
I 2
6
1
3
8
2
6
1
3
8
2
b
160
160
1
11,039
169.00
10,967
1,503
Sources: Various city departments
-143-
FiscalYear 2009 2010 2011
1 1
20't2
217
3,088
1
101
33
1,131
180.47
172.33
1
12,544
199.00
12,544
2,067
2013
10
217
3,025
101
34
1,136
178.62
171.2
1
12,145
195.70
12,169
1,892
217
3,048
101
34
1j36
178.99
171.4
1
12,187
198.24
12,328
1,923
217
3,080
101
34
1,136
180.11
172.13
1
12,544
199.00
12,544
2,067
2
I
10
3
8
10
3
I
10
2
8
10
2
I
1
3
I 2
6
1
1
3
1
1
3
1
1
3
1
1
3
1
1
3
956
2
56.9
2
56.9 569 22
I56. 2
217
3,"t04
101
34
1,132
185.94
176.18
1
12,544
201.50
11,996
2,011
1
3
I 2
o
1
3
9
2
6
1
3
9
2
6
1
3
9
2
b
-144-
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