2021 Annual Comprehensive Financial Report
BudgetAI Summary
The City of Des Moines, Iowa's 2021 Annual Comprehensive Financial Report provides a detailed financial overview for the fiscal year ended June 30, 2021, prepared by the Department of Finance. The report includes government-wide and fund-level financial statements covering assets, revenues, expenditures, and fund balances across governmental and proprietary funds. The document received recognition from the Government Finance Officers Association (GFOA) for achievement in financial reporting standards.
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CITY OF DES MOINES, IOWA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 _______________________________________________ -- 1 of 253 -- Annual Comprehensive Financial Report of the City of Des Moines, Iowa For the Fiscal Year Ended June 30, 2021 Prepared by the Department of Finance -- 2 of 253 -- CITY OF -- 3 of 253 -- CITY OF DES MOINES, IOWA I TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal ............................................................................................................................................. VII GFOA Certificate of Achievement ..................................................................................................................... XIII Organizational Chart ............................................................................................................................................. XV List of Elected and Appointed Officials ............................................................................................................ XVII FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT ........................................................................................................... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS .................................................................................... 5 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ........................................................................................................................ 22 Statement of Activities ............................................................................................................................. 24 Governmental Fund Financial Statements Balance Sheet - Governmental Funds .................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position......... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds................................................................................................................................................... 30 Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................................................... 32 Proprietary Fund Financial Statements Statement of Net Position - Proprietary Funds .................................................................................... 34 Reconciliation of Enterprise Funds’ Net Position to the Statement of Net Position ....................... 39 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds ............................................................................................................................. 40 Reconciliation of the Change in Net Position of Enterprise Funds to the Statement of Activities ........................................................................................................................................ 43 Statement of Cash Flows - Proprietary Funds ...................................................................................... 44 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position - Fiduciary Funds - Custodial ................................................. 48 Statement of Changes in Fiduciary Net Position – Fiduciary Funds – Custodial ........................... 49 Notes to the Financial Statements ............................................................................................................... 51 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule – Budgetary Basis – All Governmental Funds and Enterprise Funds .......................................................................... 111 Budgetary Comparison Schedule – Budget to GAAP Reconciliation .............................................. 112 Notes to Required Supplementary Information.................................................................................. 113 Other Postemployment Benefit Plan .................................................................................................... 115 Schedule of the City’s Proportionate Share of the Net Pension Liability – Iowa Public Employees’ Retirement System (IPERS) ........................................................................................... 116 Schedule of the City Contributions - IPERS ......................................................................................... 118 Notes to Required Supplementary Information – IPERS Pension Liability .................................... 119 Schedule of the City’s Proportionate Share of the Net Pension Liability – Municipal Fire and Police Retirement System of Iowa (MFPRSI).................................................................... 120 Schedule of the City Contributions - MFPRSI ..................................................................................... 122 Notes to Required Supplementary Information – Pension Liability ................................................ 123 -- 4 of 253 -- CITY OF DES MOINES, IOWA II PAGE FINANCIAL SECTION (continued) Other Supplementary Information COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Governmental Funds Combining Balance Sheet Schedule - All General Fund Accounts .................................................. 128 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – All General Fund Accounts............................................................................................................. 129 Combining Balance Sheet Schedule - All Capital Projects Accounts ............................................... 130 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – All Capital Projects Accounts ......................................................................................................... 132 Combining Balance Sheet - Nonmajor Governmental Funds ........................................................... 134 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) - Nonmajor Governmental Funds .................................................................................................... 136 Proprietary Funds Combining Statement of Net Position Schedule – All Parking Fund Accounts ............................. 138 Combining Schedule of Revenues, Expenditures, and Changes in Fund Net Position Schedule – All Parking Fund Accounts............................................................................................................. 141 Combining Statement of Cash Flows Schedule – All Parking Fund Accounts ............................... 142 Combining Statement of Net Position (Deficit) - Nonmajor Enterprise Funds ............................. 144 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) – Nonmajor Enterprise Funds ........................................................................................................... 145 Combining Statement of Cash Flows - Nonmajor Enterprise Funds .............................................. 146 Combining Statement of Net Position - Internal Service Funds ....................................................... 148 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) – Internal Service Funds ..................................................................................................................... 150 Combining Statement of Cash Flows - Internal Service Funds ........................................................ 152 Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function ........................................................................................................ 156 Schedule by Function .............................................................................................................................. 157 Combined Schedule of Bonds Payable ........................................................................................................ 158 STATISTICAL SECTION (UNAUDITED) Table 1: Net Position by Component ........................................................................................................ 182 Table 2: Changes in Net Position .............................................................................................................. 184 Table 3: Program Revenues by Function/Program ............................................................................... 192 Table 4: Fund Balances, Governmental Funds ........................................................................................ 196 Table 5: Changes in Fund Balances, Governmental Funds ................................................................... 198 Table 6: Tax Revenues by Source, Governmental funds ....................................................................... 201 Table 7: Assessed Value and Estimated Actual Value of Taxable Property ........................................ 202 -- 5 of 253 -- CITY OF DES MOINES, IOWA III PAGE STATISTICAL SECTION (UNAUDITED) (continued) Table 8: Direct and Overlapping Property Tax Rates ............................................................................. 204 Table 9: Property Tax Levies and Collections ......................................................................................... 207 Table 10: Principal Property Taxpayers ..................................................................................................... 209 Table 11: Ratios of Net General Bonded Debt Outstanding by Type .................................................... 210 Table 12: Direct and Overlapping Governmental Activities Debt .......................................................... 213 Table 13: Legal Debt Margin Information .................................................................................................. 214 Table 14: Pledged-Revenue Coverage ........................................................................................................ 216 Table 15: Demographic and Economic Statistics ....................................................................................... 219 Table 16: Principal Employers .................................................................................................................... 221 Table 17: Full-Time City Governmental Employees by Functions/Programs ..................................... 222 Table 18: Operating Indicators by Function/Program ............................................................................. 224 Table 19: Capital Asset Statistics by Function/Program ......................................................................... 226 Table 20: Schedule of Insurance in Force ................................................................................................... 228 -- 6 of 253 -- CITY OF -- 7 of 253 -- INTRODUCTORY SECTION -- 8 of 253 -- CITY OF -- 9 of 253 -- VII February 28, 2022 The Honorable Mayor Members of the City Council Citizens of Des Moines, Iowa State law requires that cities, such as Des Moines, publish each fiscal year a complete set of audited financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), and that their financial condition and transactions be examined by the Auditor of State or by a certified public accountant. This report is published to fulfill that requirement for the fiscal year ended June 30, 2021. Management assumes full responsibility for the completeness and reliability of the information contained in this report. In order to do so, the City has established a comprehensive framework of internal control that is designed to protect against loss, theft, or misuse of assets and compile reliable information for preparation of the financial statements. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The City’s financial statement have been audited by RSM US LLP. They have issued an unmodified (“clean”) opinion on the City of Des Moines’s financial statements for the year ended June 30, 2021. The independent auditor’s report is present at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. -- 10 of 253 -- VIII Profile of the Government The City of Des Moines, Iowa was incorporated as a town in 1851 and as a city in 1857. Extending over 80 square miles, it is home to an estimated 215,000 people and the central city of a metropolitan area of approximately 710,000. It is a river city, intersected by the Des Moines and Raccoon Rivers. Des Moines is the capital of Iowa, and operates under the council-manager-ward form of government. The Mayor and two Council Members are elected at-large, while another four Council Members each represent one of the four wards into which the City is divided. A City Manager, City Clerk and City Attorney are all appointed by the Council. Des Moines provides a full range of services, including police and fire protection, sanitation services, park and recreational programs and facilities; construction and maintenance of infrastructure including streets, roads, bridges, and a storm water utility; enforcement of building code regulations; traffic control and parking; housing and other community improvements and social services; economic development and library services. The Des Moines Public Library Foundation, which raises funds for the benefit of the City’s libraries, and the Des Moines Airport Authority, which runs the airport that serves central Iowa, are discretely presented component units in this report. The Des Moines Independent Community School District, Des Moines Water Works, Des Moines Area Regional Transit, The Des Moines Metropolitan Wastewater Reclamation Authority and Metro Waste Authority —while providing other services to the citizens of Des Moines—do not meet the established criteria for component entities of the City, and thus, are excluded from this report. The City benefits from strong and diverse neighborhoods and a citizenry deeply involved in its government. The development of 51 recognized neighborhood associations and 25 active boards and commissions strengthen the basic framework of the City’s governmental structure. The City Council is required by Chapter 384 of the Code of Iowa to adopt an annual budget on or before March 31 of each year. This annual budget serves as the foundation for the City of Des Moines’s financial planning and control. The adopted budget provides appropriations (authority to spend) for program operations for the fiscal year that begins on July 1 and ends on June 30 of the following year. Budget amendments (revisions to the adopted budget) must be prepared and adopted in the same manner as the original budget. State law requires that expenditures be controlled at the program level. The budget is also prepared by department, fund and sub activity levels. -- 11 of 253 -- IX Local Economy and Living Conditions Des Moines is the industrial, commercial, financial, trade, transportation, and governmental center of Iowa. The City’s insurance industry is the third largest in the world – after London and Hartford – and growing. There are over 200 insurance offices and headquarters located in Iowa employing more than 20,000 people in Des Moines. Insurance activities are part of a strong local economy that is also based in agriculture, manufacturing, technology, education, health care, and other services. During calendar year 2021, Des Moines continued to receive praise from various outlets. Accolades include: • Named Among Three “Breakout Cities on the Forefront of America’s Economic Recovery” — The Wall Street Journal, 2021 • #2 Safest Place to Live in the U.S. — U.S. News & World Report, 2021 • Top 5 Most Sustainable Metro — Site Selection Magazine, 2021 • Top 5 Best Place to Raise Kids — SmartAsset, 2021 • Top 10 City to Live in After the Pandemic — Today, 2021 • #1 Best Place to Live in the Midwest for High Salaries and Low Cost of Living — The Ascent, 2021 • Top 10 City Whose Unemployment Rate is Dropping — WalletHub, 2021 • Top 5 Emerging North American Tech Market — CBRE, 2021 While Iowa is an agricultural state, the City’s economic diversification insulates it from most swings in the farming-based economy. Further, as many of the state’s rural communities experience population decreases, the Des Moines metropolitan area continues to grow, with much of the expansion resulting from the relocation of residents to Des Moines from rural areas. The variety of components contributing to the City’s economy creates a stability that is apparent from unemployment figures. The City has historically enjoyed a relatively low unemployment rate for each of the last three years: 4.1 percent in 2020, 2.6 percent in 2019, 2.4 percent in 2018. Additional background data is included in the statistical section of this report. Long-term Financial Planning The City Council and administration routinely consider the long-term view regarding financial matters. Operating budget decisions are based on long-term sustainability. A budget plan considers multi-year trends for all major revenues and expenditures. The City has a detailed Capital Improvement Plan (CIP) that considers the impact of the investment in infrastructure, the associated debt burden, and any changes in operating costs associated with maintaining new assets. The CIP shows funding for current year and five years out. -- 12 of 253 -- X The below information is a summary of the expected expenditures under the five-year plan from the 2021 CIP: • Bridge replacements, repairs and maintenance - $31.6 million • Fire equipment and station repairs and maintenance - $22.8 million • Library building improvements and collection acquisitions - $6.6 million • Municipal building replacements and improvements - $73.6 million • Park improvements and equipment replacement - $42.5 million • Street repairs and maintenance - $278.6 million • Parking (on-street and in-ramp) improvements and repairs - $8.9 million • Sanitary sewer improvements and repairs - $22.0 million • Storm water improvements and repairs - $91.5 million Relevant Financial Policies The City regards General Fund unassigned fund balance as a critical component of fiscal health and has worked to improve this credit metric to continue strong bond rating. City policy for the General Fund unassigned fund balance has changed and now targets a minimum of 15% of annual expenditures, as opposed to 10% previously in place. The June 30, 2021 balance is 29.36% of expenditures, down from 22.53% in 2020. Enterprise funds are monitored regularly and user fees adjusted to maintain required revenue bond coverage and sufficient working capital balances. The policy for the major enterprise funds is to maintain a working capital balance of 20% of annual expenditures. The City investment policy is to invest public funds not currently needed in a manner which will provide protection of principal, meet the daily cash flow demands of the City and provide market returns. The primary objectives in priority order are safety of principal, liquidity, and return on investments. Major Initiatives The Council has undertaken a new strategic planning process which guides the funding choices in the capital and operating budgets ahead. Pursuit of past Council established goals has resulted in the City successfully moving forward in facilitating downtown development, neighborhood improvements, and environmental sustainability projects. Corporations have started, or have plans in place for, headquarter renovations, new building projects, or plans to locate their headquarters in downtown Des Moines. The largest transportation project, extension of the Southeast Connector eastward from SE 30th Street to U.S. Route 65, has used roughly 10 percent of its estimated $65.3 million budget. Other new development has started along the connector: commercial, residential, hotels and restaurants. -- 13 of 253 -- XI The downtown housing stock remains strong for rental units and owner-occupied condominiums. Desire for downtown residential living continues to increase, turning the downtown into a vibrant “24/7” location. New construction projects continue to take place on the east and west side of the Des Moines River, which divides the downtown. New projects on the edge of the central business district are starting. Council has approved plans or support to match private investment in streetscape and corridor enhancement projects that will provide for beautification and walkability improvements of the areas. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Des Moines for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2020. This was the 44th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government has to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Preparation and publication of the Annual Comprehensive Financial Report were the responsibility of a team led by Finance Department Comptroller Tim McCarthy and Deputy Finance Director James Remington. This team consisted of colleagues in the Finance Department, the audit team from RSM US LLP, and many others in the City’s operating departments, particularly the Housing, Engineering, and Community Development Departments. All members of the team have our deep appreciation and respect for their outstanding contributions to this report—both individually and collectively. Respectfully submitted, Scott E. Sanders Nickolas J. Schaul City Manager Finance Director/Treasurer -- 14 of 253 -- CITY OF -- 15 of 253 -- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Des Moines Iowa For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/CEO -- 16 of 253 -- CITY OF -- 17 of 253 -- XV City of Des Moines, Iowa Table of Organization Citizens of Des Moines ELECT Des Moines City Council Frank Cownie, Mayor Carl Voss, At-Large Connie Boesen, At-Large Bill Gray, Ward I Linda Westergaard, Ward II Josh Mandelbaum, Ward III Joe Gatto, Ward IV APPOINTS City Attorney City Manager City Clerk Boards, Commissions and Committeees Neighborhood Services Engineering Access Advisory Board Airport Board Citizen Odor Board Civil Service Commission Enterprise Community Steering Committee Historic Preservation Commission Housing Appeals Board Human Rights Commission Board of Library Trustees Licensing and Appeals Board Metro Advisory Council Des Moines Area Regional Transit Neighborhood Revitalization Board Park and Recreation Board Plan and Zoning Commission Power Engineers Examining Board Public Housing Advisory Board Sister City Commission Skywalk Committee Strategic Planning Commission Traffic Safety Commission Urban Design Review Board Water Works Board of Trustees Youth Advisory Board Zoning Board of Adjustment Park and Recreation Human Resources Fire Police Information Technology Housing Services Finance Development Services As of 6/30/21 Public Works -- 18 of 253 -- CITY OF -- 19 of 253 -- XVII CITY OF DES MOINES, IOWA ELECTED AND APPOINTED OFFICIALS For the Fiscal Year Ended June 30, 2021 Elected Officials: Term Expires Frank Cownie Mayor 1/1/2024 Carl Voss Council Member, At-Large 1/1/2024 Connie Boesen Council Member, At-Large 1/1/2022 Bill Gray Council Member, Ward I 1/1/2022 Linda Westergaard Council Member, Ward II 1/1/2024 Josh Mandelbaum Council Member, Ward III 1/1/2022 Joe Gatto Council Member, Ward IV 1/1/2024 Council-Appointed Officials: Scott Sanders City Manager Jeffrey D. Lester City Attorney P. Kay Cmelik City Clerk -- 20 of 253 -- CITY OF -- 21 of 253 -- FINANCIAL SECTION -- 22 of 253 -- CITY OF -- 23 of 253 -- 1 Independent Auditor’s Report Honorable Mayor and Members of the City Council City of Des Moines, 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 remaining fund information of the City of Des Moines, Iowa, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the discretely presented component units, the Des Moines Airport Authority and the Des Moines Public Library Foundation, which collectively represent 100% of the 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 Des Moines Airport Authority and the Des Moines Public Library Foundation is based on the reports 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 material misstatement. The financial statements of the Des Moines Public Library Foundation were not audited in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’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. -- 24 of 253 -- 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As explained in note 20 of the financial statements, the City adopted GASB State No. 84, Fiduciary Activities, which restated beginning net position of the governmental activities, the beginning fund balance of the general fund and beginning net position/fund balance of the aggregate remaining fund information. Our opinions are not modified with respect to this matter. Opinions In our opinion, based on our audit and the reports 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, as of June 30, 2021, 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 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, other postemployment benefit liability and related ratios, the budgetary comparison schedules, the Iowa Public Employees Retirement System pension plan schedules and the Municipal Fire and Police Retirement System of Iowa pension plan schedules, as 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 and the other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We and the other auditors 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 Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and other schedules listed in the table of contents as supplementary information and the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and other schedules listed in the table of contents as supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and the other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of other auditors, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. -- 25 of 253 -- 3 The accompanying introductory and statistical sections as listed in the table of contents 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to solely describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Des Moines, Iowa February 28, 2022 -- 26 of 253 -- CITY OF -- 27 of 253 -- 5 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2021 This section of the annual financial report presents an overview and analysis of the financial activities of the City of Des Moines for the fiscal year ended June 30, 2021. Readers are encouraged to consider the information presented here in conjunction with additional information furnished in the letter of transmittal and the financial statements which follow. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City of Des Moines exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $1,142,253,976 (net position). Last year’s June 30, 2020 total net position was $1,070,527,773. The total unrestricted net position of the City was negative ($66,894,557). This was comprised of unrestricted negative governmental net position ($90,009,943) and business type activities net position of $23,115,386. • At the close of this current fiscal year, the City of Des Moines' governmental funds reported combined ending fund balances of $227,799,475 an increase of $60,682,141 in comparison with the prior year. This increase was attributable primarily to an increase in transfers into the Capital Project Fund and additional intergovernmental revenues related to the ongoing COVID-19 pandemic. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $53,371,093 or 29.4 percent of total General Fund expenditures. This represents a $14,635,385 increase in the unassigned fund balance. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Des Moines' basic financial statements. The City of Des Moines' basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Des Moines' finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City of Des Moines' assets, deferred outflows of resources, liabilities and deferred inflows of resources with the difference between the assets/deferred outflows of resources and liabilities/deferred -- 28 of 253 -- 6 inflows of resources reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Des Moines is improving or deteriorating. The Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to 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 only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Des Moines that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Des Moines include public safety, public works, health and social services, culture and recreation, community and economic development, and general government. The business-type activities of the City of Des Moines include the municipal housing agency, parking facilities system, sanitary sewer system, golf courses, solid waste system, and storm water utility. The government-wide financial statements include the City of Des Moines itself (known as the primary government), as well as the Public Library of Des Moines Foundation, a discretely presented component unit, which raises funds for the benefit of the City’s libraries and the Des Moines Airport Authority, a discretely presented component unit, which runs the airport that serves central Iowa. The Des Moines Independent Community School District, the Des Moines Waterworks, Des Moines Area Regional Transit, the Wastewater Reclamation Authority, and Metro Waste Authority provide services to the citizens of Des Moines but do not meet established criteria as component units of the City, and thus, are not included in this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Des Moines, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Des Moines can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. • Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, -- 29 of 253 -- 7 governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near- term financial requirements. Because the focus of governmental funds is narrower than that of the government- wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Des Moines maintains 16 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt Service Fund, Tax Increment Fund, Benefit Tax Accounts Fund, Franchise Fee Court Settlement Fund, Local Option Sales Tax Fund, American Rescue Plan Fund and Capital Projects Fund, all of which are considered major funds. Data from the other 8 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. • Proprietary Funds. The City of Des Moines maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Des Moines' various functions. The City of Des Moines uses internal service funds to account for the equipment service center, forestry, central services, radio communications, equipment and radio replacement, and group health insurance. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government- wide financial statements. The City of Des Moines maintained six enterprise funds in fiscal year 2021. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Parking Facilities System Fund, Sewer System Fund, Storm Water Utility Fund, and Municipal Housing Agency Fund as these are considered to be major funds of the City of Des Moines. Data from the other two -- 30 of 253 -- 8 enterprise funds (Golf Courses Fund and Solid Waste System Fund) are combined into a single, aggregated presentation. Individual fund data for each of these non- major enterprise funds is provided in the form of combining statements elsewhere in this report. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. • Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Des Moines' own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has only one type of fiduciary funds: custodial funds. The total assets held in the fiduciary funds at June 30, 2021 were $723,564,166 all of which belonged to the Des Moines Metropolitan Wastewater Reclamation Authority (WRA), a custodial fund. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information. The City’s budgetary comparison schedule is presented as required supplementary information immediately following the notes to the financial statements. The combining statements referred to earlier in connection with non-major governmental funds, non-major enterprise funds, internal service funds, and agency funds are presented immediately following the required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Des Moines, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1,142,253,976, at the close of the fiscal year ended June 30, 2021. By far the largest portion of the City of Des Moines' net position, $1,106,094,901 or 96.8 percent, reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City of Des Moines uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Des Moines' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. -- 31 of 253 -- 9 Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total 2021 2021 2021 2020 2020 2020 Current and other assets 549,466,261 $ 77,764,809 $ 627,231,070 $ 436,473,107 $ 60,090,119 $ 496,563,226 $ Capital assets 1,207,542,919 495,403,525 1,702,946,444 1,121,487,963 467,817,596 1,589,305,559 Total assets 1,757,009,180 573,168,334 2,330,177,514 1,557,961,070 527,907,715 2,085,868,785 Total deferred outflow of resources 61,098,163 3,614,516 64,712,679 46,802,055 3,309,520 50,111,575 Noncurrent liabilities 699,230,704 178,898,032 878,128,736 614,385,225 136,007,418 750,392,643 Other liabilities 156,167,451 20,665,676 176,833,127 94,776,793 21,648,249 116,425,042 Total liabilities 855,398,155 199,563,708 1,054,961,863 709,162,018 157,655,667 866,817,685 Total deferred inflow of resources 196,629,630 1,044,724 197,674,354 197,752,767 2,282,533 200,035,300 Net position: Net investment in capital assets 763,997,971 342,096,930 1,106,094,901 703,716,716 338,541,335 1,042,258,051 Restricted 92,091,530 10,962,102 103,053,632 44,661,895 10,058,950 54,720,845 Unrestricted (90,009,943) 23,115,386 (66,894,557) (50,530,271) 22,678,750 (27,851,521) Total net position 766,079,558 $ 376,174,418 $ 1,142,253,976 $ 697,848,340 $ 371,279,035 $ 1,069,127,375 $ City of Des Moines' Net Position Note: fiscal 2020 net position in the above table has not been restated. Within the financial statements, opening balances for governmental funds have been restated due to the adoption of GASB Statement No. 84 and a reconsideration of what funds should be treated as fiduciary. An additional portion of the City of Des Moines' net position, $103,053,632 (9.0 percent) represents resources that are subject to external restrictions on how they may be used. The balance of unrestricted net position is a negative net position balance of ($66,894,557). There is negative unrestricted net position as a result of the GASB 68 pension liability for both IPERS and MFPRSI booked in fiscal 2021. These liabilities represent the City’s allocated share of the unfunded portion of these two pension funds. The net pension liability was measured at $213,409,053 in fiscal 2021, up from $177,894,533 in fiscal 2020, a difference of $35,514,520. The business-type activities funds have a positive unrestricted net position. The governmental activities funds have a negative unrestricted net position balance that requires additional future resources to fulfill ongoing obligations to the citizens and creditors of the governmental activities. At the end of the current fiscal year, the City of Des Moines is able to report positive net position balances in the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. -- 32 of 253 -- 10 The City’s total net position increased by $71,726,203 during the current fiscal year. The net position in governmental activities increased by $66,830,820, while the net position in business-type activities increased by $4,895,383. A summary of the City’s changes in net position follows. Note that opening balances for fiscal year 2021 have been restated while ending balances for fiscal year 2020 have not been: Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total 2021 2021 2021 2020 2020 2020 $ 69,578,522 $ 106,677,387 $ 176,255,909 $ 67,274,257 $ 100,932,299 $ 168,206,556 62,925,569 21,173,380 84,098,949 46,587,654 22,062,606 68,650,260 19,248,477 3,371,016 22,619,493 27,273,638 5,986,598 33,260,236 184,735,294 --- 184,735,294 167,642,731 --- 167,642,731 69,882,304 --- 69,882,304 65,629,712 --- 65,629,712 Other 385,150 191,629 576,779 2,822,723 2,009,646 4,832,369 Total revenues 406,755,316 131,413,412 538,168,728 377,230,715 130,991,149 508,221,864 Expenses: 147,553,966 --- 147,553,966 146,897,935 --- 146,897,935 Public works 65,268,316 --- 65,268,316 59,581,938 --- 59,581,938 Health and social services 11,094,869 --- 11,094,869 9,902,331 --- 9,902,331 Culture and recreation 33,865,746 --- 33,865,746 33,393,608 --- 33,393,608 35,885,238 --- 35,885,238 26,461,222 --- 26,461,222 General government 49,931,107 --- 49,931,107 38,695,179 --- 38,695,179 Interest on long-term debt 11,539,387 --- 11,539,387 12,341,923 --- 12,341,923 Parking facilities system --- 10,716,509 10,716,509 --- 10,682,504 10,682,504 Sewer system --- 40,043,204 40,043,204 --- 41,163,607 41,163,607 Stormwater utility --- 22,158,196 22,158,196 --- 19,541,537 19,541,537 Golf --- 676,692 676,692 --- 301,658 301,658 Solid waste --- 13,770,043 13,770,043 --- 13,499,100 13,499,100 Municipal Housing Agency --- 23,939,252 23,939,252 --- 24,325,138 24,325,138 Total expenses 355,138,629 111,303,896 466,442,525 327,274,136 109,513,544 436,787,680 51,616,687 20,109,516 71,726,203 49,956,579 21,477,605 71,434,184 Transfers 15,214,133 (15,214,133) --- (11,657,716) 11,657,716 --- 66,830,820 4,895,383 71,726,203 38,298,863 33,135,321 71,434,184 699,248,738 371,279,035 1,070,527,773 659,549,477 338,143,714 997,693,191 Net position - ending 766,079,558 $ 376,174,418 $ 1,142,253,976 $ 697,848,340 $ 371,279,035 $ 1,069,127,375 $ Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Net position - beginning Public safety Community and economic development Increase/(decrease) in net position before transfers Increase/(decrease) in net position City of Des Moines' Changes in Net Position Revenues: Program revenues: Charges for services -- 33 of 253 -- 11 Governmental Activities. Total governmental activities revenue for the fiscal year was $406,755,316 compared to $377,230,715 in 2020. The largest single revenue source for the City was property taxes of $184,735,294. Property taxes increased by $17,092,563 (10.2 percent) from fiscal 2020. This increase is primarily the result of an increase in assessed property values of approximately 10.8 percent over the prior assessment year. Other taxes for fiscal year 2021 were $69,882,304 compared to $65,629,712 for fiscal 2020. The slight overall increase of $4,252,592 was due to a combination of increases in LOSST revenue offset by other decreased tax revenue due to the COVID-19 pandemic and an overall downturn in investment income. Additionally, fiscal 2021 was the last year in which the City collected Franchise Fees in relation to the Franchise Fee Court Settlement Fund; collections for the year totaled $768,953. Intergovernmental Revenue was up this year primarily due to increases in Federal grant funding related to the COVID-19 pandemic. Governmental activities increased the City’s net position by $66,830,820. Certain revenues are generated that are specific to governmental program activities. These totaled $151,752,568 in fiscal 2021 compared to $141,135,549 in fiscal 2020. The graph below shows a comparison between the expenses by governmental activity type and the revenues generated that are specific to those activities: $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 Public Safety Public Works Health And Human Services Culture And Recreation Community And Economic Development General Government Interest On Long-Term Debt Expenses and Program Revenues - Governmental Activities Expense Revenue -- 34 of 253 -- 12 The program expenses shown in the table on the previous page were $355,138,629 in fiscal year 2021 as compared to $327,274,136 in fiscal year 2020. The largest factor in the increased costs, aside from inflation, was an increase in grant funding to subrecipients related to the City of Des Moines’ response to the COVID-19 pandemic. The graph below shows the percentage of the total governmental revenues allocated by each revenue type: Franchise fees 3.7% Capital grants and contributions 4.9% Other 0.1% Charges for services 17.9% Operating grants and contributions 16.2% LOSST 8.8% Hotel/Motel Taxes 1.0% Property taxes 47.4% Revenues by Source - Governmental Activities Business-Type Activities. Total business-type activities revenue for the fiscal year was $131,413,412 compared to $130,991,149 in 2020. All but $191,629 and $2,009,646 of this revenue was generated for specific business-type activity expenses in fiscal years 2021 and 2020, respectively. The decrease in non-specific business-type revenue was due primarily to overall economic trends resulting in decreased interest rates on the City of Des Moines’ investments. The graph on the following page shows a comparison between the business-type activity expenditures and program revenues. -- 35 of 253 -- 13 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 Parking Facilities System Sewer System Stormwater Utility Golf Solid Waste System Municipal Housing Agency Expenses and Program Revenue - Business-type Activities Expense Revenue The graph below shows the breakdown of revenues by source for the business-type activities: Capital grants and contributions 2.6% Other 0.1% Charges for services 81.2% Operating grants and contributions 16.1% Revenues By Source - Business-type Activities -- 36 of 253 -- 14 Business-type activities increased the City of Des Moines' net position by $4,895,383 accounting for the increase, in total, in the government's net position. Key elements of this increase are as follows: • The Sanitary Sewer Utility increased by $13,245,198. This increase was primarily due to an operating income of $11,316,628 resulting from largely flat expenses and an increase in charges for sales and services. • The Storm Water Utility increased by $4,469,376. This increase was in line with normal operations. • The Solid Waste System decreased by $11,498,157. This decrease was primarily due to a transfer out of bond proceeds in the amount of $13,660,000 to the Capital Projects Fund. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Des Moines uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City of Des Moines' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Des Moines' financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Des Moines' governmental funds reported combined ending fund balances of $227,799,475 an increase of $60,682,141 in comparison with the prior year. The increase was primarily driven by increases in the General Fund of $13,811,779, the Local Option Sales Tax Fund of $10,222,605, and the Capital Projects Fund of $32,508,073. There were no significant offsetting decreases for fiscal 2021. Fund balance identified as nonspendable totaled $9,015,562. There were restrictions of $75,015,811 on the governmental fund balance. Committed fund balance totaled $92,217,562 and unassigned fund balance totaled $51,550,540. See footnote 21 for a further breakdown of the classifications of the governmental fund balance. The General Fund is the chief operating fund of the City of Des Moines. At the end of the current fiscal year, unassigned fund balance of the General Fund was $53,371,093 while total fund balance was $60,345,517. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 29.4 percent of total General Fund expenditures, while total fund balance represents 33.2 percent of that same amount. -- 37 of 253 -- 15 The fund balance of the City of Des Moines' General Fund increased by $13,811,779 during the current fiscal year compared to a ($5,559,047) decrease in 2020. This increase was primarily the result of an increase in revenue of $16,322,255, a decrease in transfers out of ($9,012,425) and offset by an increase in expenditures of $9,861,037. The increase in revenue was primarily due to an increase in intergovernmental revenues of $11,482,500 which relates mainly to grants for COVID-19 pandemic response. The Debt Service Fund has a total fund balance of $14,775,110. The net increase in fund balance during the current year in the Debt Service Fund was $1,291,244. The relatively small increase for the year was the result of increases in both issuances and payments of debt. The most conspicuous activity for the year was a full repayment of the debt due from the Airport Authority, a component unit of the City of Des Moines. The Tax Increment Fund (TIF) has a total fund balance of $17,123,375. The net decrease in fund balance during the current year in the Tax Increment Fund was ($35,976). The small net change is due to increases in tax collections for the fund being matched by offsetting payments on TIF agreements. The Benefit Tax Accounts Special Revenue Fund had a total fund balance of $757,378 at the end of fiscal 2021. The net increase is due primarily to offsetting expenses not keeping pace with slightly increased tax collections. The Franchise Fee Court Settlement Fund was set up in fiscal 2014 to account for City transactions related to a court ruling. A lawsuit, which became a class action suit, was made against the City for charging franchise fees. The court ruled a portion of the utility fee received by the City between September 2004 and May 2009 had to be returned to those who paid the fee because the City’s costs of regulating the gas and electrical utilities were less than the amount collected. To pay the judgment, the City issued general obligation bonds. On March 4, 2014 Des Moines voters approved a referendum to raise the franchise fee by 2.5 percent for about a 7-year period to pay the debt. At the end of the fiscal year, there was no fund balance. Total revenue of $769,044 was collected in fiscal 2021 and principal of $2,585,000 and interest and fiscal charges of $40,283 were paid during the period. On June 8, 2020, the City passed an ordinance repealing the additional 2.5 percent fee and finished paying off the associated debt in fiscal 2021. The Local Option Sales Tax Fund was set up in fiscal 2020 to account for revenue received under the Local Option Sales and Service Tax passed in March 2019 and effective beginning July 1, 2019. Under the law, 50.0 percent of revenue is to be used for property tax relief while the remaining 50.0 percent may be used for any lawful purpose of the -- 38 of 253 -- 16 City. During the year, the fund balance increased by $10,222,605. This increase is in line with the increase in fund balance during the first year of operation for this fund. The American Rescue Plan Fund was established in fiscal year 2021 in order to track the receipt and expenditure of federal funds under the American Rescue Plan Act of 2021. The City of Des Moines anticipates total funding under the Act of roughly $94,800,000, with $47,412,307 being received in fiscal year 2021 and the remainder in fiscal year 2022. The City is considering the revenue unearned as it had not met the requirements to utilize the funding at year end. The Capital Projects Fund has a total fund balance of $85,446,337. The net increase in fund balance during the current year in the Capital Projects Fund was $32,508,073. This increase was due to an increase of transfers in; primarily of bonds sold to pay for future capital improvements. Proprietary Funds. The City of Des Moines' proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position (deficit) of the Parking Facility System was ($748,986); those for the Sewer System were $21,526,922; the Storm Water Utility were $26,039,182; and those for the Municipal Housing Agency were $2,728,338. Other factors concerning the finances of these funds have been addressed in the discussion of the City of Des Moines' business- type activities. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City of Des Moines' investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $1,702,946,444 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of Des Moines' investment in capital assets for the current fiscal year was 7.2 percent (a 7.6 percent increase for governmental activities and a 5.9 percent increase for business-type activities). Major capital asset events during fiscal year 2021 included the following: • $17.5 million towards the completion of phase 2 of the Municipal Services Center. • $1.2 million toward the reconstruction of the Locust Ave Bridge over the Des Moines River. -- 39 of 253 -- 17 • $1.8 million towards rehabilitation of the Court Avenue, SW 1st Street and Scott Ave Bridges over the Des Moines River. • $6.9 million toward the rehabilitation of the E 30th Street Bridge over the railroad lines. • $5.1 million toward Hamilton Storm Sewer improvements. • $1.8 million toward the construction or reconstruction of recreational trails across the City. • $4.7 million toward the construction of Fire Station 11. • $3.5 million for repair and replacement of the City’s sidewalk system. • $11.9 million on various sewer separation projects throughout the City. • $4.6 million toward various storm water improvements throughout the City. • $10.2 million for Des Moines River flood mitigation improvements. • $12.9 million for the City's various on-going street maintenance and reconstruction projects. • $1.1 million for maintenance of the City’s parking ramps. • $4.7 million towards arterial pavement rehabilitation, primarily for the reconstruction of Fleur Drive. 2021 2020 2021 2020 2021 2020 Land 151,429 $ 151,311 $ 23,889 $ 21,725 $ 175,318 $ 173,036 $ Buildings 250,961 245,374 121,705 119,803 372,666 365,177 Improvements other than buildings 1,363,465 1,311,357 492,946 439,313 1,856,411 1,750,670 Machinery and equipment 102,066 97,599 28,406 29,537 130,472 127,136 Construction in progress 193,580 120,959 71,400 87,042 264,980 208,001 Accumulated depreciation (853,958) (805,112) (242,941) (229,602) (1,096,899) (1,034,714) Total 1,207,543 $ 1,121,488 $ 495,405 $ 467,818 $ 1,702,948 $ 1,589,306 $ City of Des Moines' Capital Assets (amounts expressed in thousands) Governmental Activities Business-type Activities Total Additional information on the City of Des Moines' capital assets can be found in note 6 of this report. Long-Term Debt. At the end of the current fiscal year, the City of Des Moines had total bonded debt outstanding of $563,720,000. Of this amount, $487,460,000 comprises debt backed by the full faith and credit of the government. The remainder of the City of Des -- 40 of 253 -- 18 Moines' debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 2021 2020 2021 2020 2021 2020 General obligation 468,535 $ 396,225 $ 18,925 $ 6,295 $ 487,460 $ 402,520 $ bonds Revenue bonds - 22,520 76,260 59,260 76,260 81,780 Total 468,535 $ 418,745 $ 95,185 $ 65,555 $ 563,720 $ 484,300 $ City of Des Moines' Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-type Activities Total (amounts expressed in thousands) The City of Des Moines’ total bonded debt increased by $79,420,000 which is a 16.4 percent decrease from the prior fiscal year. This increase was due to the City of Des Moines issuing $154,785,000 in bonded debt for governmental activities and $36,145,000 in bonded debt for business-type activities. The City of Des Moines and the City of Des Moines Storm Water/Sewer system each maintained its debt rating of an AA+ rating from Standard & Poor’s during the fiscal year. State statutes limit the amount of general obligation debt a governmental entity may issue to 5 percent of its total assessed valuation. The current debt limitation for the City of Des Moines is $725,257,392, which is significantly in excess of the City of Des Moines’ outstanding general obligation debt of $487,460,000. Additional information on the City of Des Moines' long-term debt can be found in Note 9 of this report. BUDGETARY HIGHLIGHTS In accordance with the Code of Iowa, the City Council annually adopts a budget on the modified accrual basis following required public notice and hearing which includes all funds except fiduciary funds and internal service funds. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon ten major classes of disbursements known as functions, not by fund or fund type. These ten functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital projects, business- type/enterprises and transfers out. The legal level of control is at the aggregated function -- 41 of 253 -- 19 level, not at the fund or fund type level. These budget amendments are reflected in the final budgeted amounts. Differences between the original budget and the final amended budget for the City of Des Moines can be summarized as follows: The total original fiscal 2021 revenue budget of $499,364,301 was decreased through an amendment to $496,520,878 a decrease of $2,843,423. The total other financing sources and net transfers per the original budget of $136,528,000 was increased to $228,097,574 an increase of $91,569,574. The major factor in the difference between original estimates and final estimates was due to decreases in some tax streams due to the COVID-19 pandemic. Actual revenues for fiscal 2021 were $499,059,029 compared to the revised budget projection of $496,520,878, a difference of $2,538,151, or 0.5 percent. The total original fiscal 2021 expenditure budget of $651,120,618 was increased through an amendment to $754,491,765 an increase of $103,371,147. The majority of this increase was for anticipated expenditures for capital projects. Expenditures were under the revised budget in total by $117,189,541. This underage was primarily due to expenditure shortfalls in community and economic development. See page 109 for the Budgetary Comparison Schedule—All Governmental Funds and Enterprise Funds. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The outlook for the Des Moines economy continues to remain positive. The City issued 3,222 permits for construction valued at $375 million in calendar year 2020. The total value of permits issued in prior calendar years 2019 and 2018 were $462 million and $507 million, respectively. The outlook on the economy in Des Moines and the surrounding metropolitan area has been positive with continued growth in residential, commercial and industrial activity. Surrounding cities are also seeing strong growth. The City, in conjunction with the regional Corporation for Economic Development, the Des Moines Partnership and the Convention and Visitors Bureau, continues to work diligently to spur economic development activity within the City of Des Moines and metro area. The City of Des Moines, with our economic development partners, are working with area businesses to assist with program funds that have been allocated to the City from the U.S. Department of Housing and Urban Development and other sources available. The full effect of the -- 42 of 253 -- 20 pandemic is still unknown, but the City of Des Moines is continually analyzing the financial impact in response to the COVID-19 pandemic. Despite the pandemic, during calendar year 2021, Des Moines received the following accolades: • Named Among Three “Breakout Cities on the Forefront of America’s Economic Recovery” — The Wall Street Journal, 2021 • #2 Safest Place to Live in the U.S. — U.S. News & World Report, 2021 • Top 5 Most Sustainable Metro — Site Selection Magazine, 2021 • Top 5 Best Place to Raise Kids — SmartAsset, 2021 • Top 10 City to Live in After the Pandemic — Today, 2021 • #1 Best Place to Live in the Midwest for High Salaries and Low Cost of Living — The Ascent, 2021 • Top 10 City Whose Unemployment Rate is Dropping — WalletHub, 2021 • Top 5 Emerging North American Tech Market — CBRE, 2021 Assessed valuations for calendar year 2020 in Des Moines increased 1.17 percent over calendar year 2019. Indicators for continued growth are positive. Construction permit values have been strong for the past three fiscal years, 2018 through 2020, totaling $1.34 billion. Corporation renovations and new construction, along with residential, mixed use, commercial, and hotel projects are underway and planned over the next few years. As the result of state legislation, beginning in fiscal year 2015, commercial, industrial and railroad classes of property will now be subject to a rollback. The assessed valuation for commercial and industrial property is now adjusted by 90 percent to determine the taxable valuation. The state legislature created a standing appropriation, beginning in fiscal year 2015, to reimburse local governments for the property tax reductions resulting from the new rollback for commercial and industrial property. Multi-residential property was previously taxed the same as commercial property but will now be phased down to the same rates as residential property over an 8-year period. All of this has been taken into account for the future budget. Approximately 49.1 percent of all General Fund revenues were derived from property taxes during fiscal 2021. Continuous efforts are being made to both diversify revenues and implement strategic expense reductions. As part of the budget discussions in fiscal year 2019, the City Council approved multi- year rate increases for the Sanitary Sewer Enterprise. A 3.0 percent Sanitary Sewer fee increase is scheduled for July 1, 2020 and July 1, 2021 to address ongoing sewer separation requirements mandated by the federal government and fund lining projects to extend the -- 43 of 253 -- 21 life of the sewer system. Also during fiscal year 2019, the City Council approved multi- year rate increases for the Storm Water Enterprise. A 6.0 percent Storm Water fee increase is scheduled for January 1, 2020 and January 1, 2021, a 5.0 percent Storm Water fee increase is scheduled for January 1, 2022, and a 3.0 percent Storm Water fee increase is scheduled for January 1, 2023 to address flood protection improvements and separation of sewer systems. No additional rate changes were approved by City Council for the Parking fund. As part of the budget discussions in fiscal year 2020, the City Council approved a 5.0 percent rate increase for the monthly collection fees charged for Solid Waste services scheduled for July 1, 2020 and a 3.0 percent rate increase for July 1, 2021. City Council also approved an increase in the fee reduction for those residential owners who qualify for one under municipal code to ensure their Solid Waste service rates remain unchanged. On July 1, 2011 the City converted to a self-funded health care program with a third-party administrator for processing claims. The self-funded program has allowed the City to pay claims and build a reserve fund sufficient to meet State self-funded health insurance reserve requirements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Des Moines' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Nickolas Schaul, Finance Director, City of Des Moines, 400 Robert D Ray Drive, Des Moines, IA 50309-1891. -- 44 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION June 30, 2021 GOVERN- MENTAL BUSINESS- TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY ASSETS Current assets: Unrestricted current assets: Cash and investments 287,413,637 $ 68,373,459 $ 355,787,096 $ 361,538 $ 64,259,873 $ Taxes receivable 194,220,232 --- 194,220,232 --- --- Accounts receivable 8,883,992 285,637 9,169,629 56,839 11,745,446 Loans receivable, current 50,000 --- 50,000 --- --- Accrued interest receivable 62,140 --- 62,140 --- 1,590 Internal balances 21,182,634 (21,182,634) --- --- --- Due from other governmental units 31,681,205 9,682,889 41,364,094 --- --- Inventory 373,867 67,149 441,016 --- 143,939 Prepaid items 1,253,293 30,774 1,284,067 1,585 14,737 Total unrestricted current assets 545,121,000 57,257,274 602,378,274 419,962 76,165,585 Restricted assets: Cash and investments --- 981,688 981,688 3,459,618 --- Interest receivable --- 217,695 217,695 --- --- Total restricted current assets --- 1,199,383 1,199,383 3,459,618 --- Total current assets 545,121,000 58,456,657 603,577,657 3,879,580 76,165,585 Noncurrent assets: Restricted cash and investments --- 19,058,324 19,058,324 --- 17,357,142 Restricted accounts receivable --- --- --- --- 336,068 Restricted interest receivable --- 17,018 17,018 --- --- Loans receivable, net of allowance for Doubtful accounts $4,229,311 1,707,876 --- 1,707,876 --- --- Notes receivables --- --- --- --- 528,453 Special assessment receivables 2,637,385 --- 2,637,385 --- --- Other restricted assets --- --- --- 8,754 --- Capital assets: Land 151,429,275 23,888,914 175,318,189 --- --- Construction in progress 193,579,504 71,399,598 264,979,102 --- 48,040,686 Buildings 250,960,778 121,704,565 372,665,343 --- 249,085,502 Improvements other than buildings 1,363,464,846 492,945,993 1,856,410,839 --- 220,025,360 Machinery and equipment 102,066,483 28,405,670 130,472,153 13,236 27,220,991 Accumulated depreciation (853,957,967) (242,941,215) (1,096,899,182) (5,058) (280,218,503) Total capital assets 1,207,542,919 495,403,525 1,702,946,444 8,178 264,154,036 Total noncurrent assets 1,211,888,180 514,478,867 1,726,367,047 16,932 282,375,699 Total assets 1,757,009,180 572,935,524 2,329,944,704 3,896,512 358,541,284 Deferred Outflows of Resources Other postemployment deferred outflows 2,151,878 315,203 2,467,081 --- 243,864 Pension related deferred outflows 58,946,285 3,299,313 62,245,598 --- 647,160 Loss on refunding debt --- --- --- --- 48,654 Total deferred outflows of resources 61,098,163 3,614,516 64,712,679 --- 939,678 The notes to the financial statements are an integral part of this statement. PRIMARY GOVERNMENT COMPONENT UNITS 22 -- 45 of 253 -- GOVERN- MENTAL BUSINESS- TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY LIABILITIES Current liabilities: Accounts payable 6,944,690 $ 865,429 $ 7,810,119 $ --- $ 3,914,673 $ Contracts payable 10,204,845 5,738,471 15,943,316 --- 687,325 Accrued wages payable 9,101,878 1,220,634 10,322,512 23,168 42,926 Accrued employee benefits 28,729,348 1,199,020 29,928,368 --- 67,516 Good faith, tenant, security, airport deposits 1,038,355 138,766 1,177,121 --- 290,537 Accrued interest payable 1,432,828 120,085 1,552,913 --- --- Due to other governmental units --- --- --- --- --- Due to primary government --- --- --- --- --- Other liabilities, claims and judgments 4,731,900 --- 4,731,900 --- --- Notes, loans, and bonds payable 44,445,010 10,150,087 54,595,097 --- --- Unearned revenue 49,538,597 18,712 49,557,309 --- --- Total current liabilities - from unrestricted 156,167,451 19,451,204 175,618,655 23,168 5,002,977 Current liabilities payable from restricted assets: Notes, loans, and bonds payable --- 702,428 702,428 --- 1,045,000 Accrued interest payable --- 279,231 279,231 --- 76,176 Total current liabilities - from restricted --- 981,659 981,659 --- 1,121,176 Total current liabilities 156,167,451 20,432,863 176,600,314 23,168 6,124,153 Noncurrent liabilities: Accrued employee benefits 13,617,100 1,979,653 15,596,753 --- 842,256 Other post retirement benefits 19,880,286 2,912,039 22,792,325 --- 608,119 Net pension liability 199,620,585 13,788,468 213,409,053 --- 3,946,156 Other liabilities --- 258,246 258,246 --- --- Notes, loans, and bonds payable, net 466,112,733 159,959,626 626,072,359 --- 31,753,879 Total noncurrent liabilities 699,230,704 178,898,032 878,128,736 --- 37,150,410 Total liabilities 855,398,155 199,330,895 1,054,729,050 23,168 43,274,563 DEFERRED INFLOWS OF RESOURCES Property taxes 187,661,308 --- 187,661,308 --- --- Other postretirement deferred inflows 3,870,700 566,975 4,437,675 --- 97,908 Pension related deferred inflows 5,097,622 477,749 5,575,371 --- 177,692 Total deferred inflows of resources 196,629,630 1,044,724 197,674,354 --- 275,600 NET POSITION Net investment in capital assets 763,997,971 342,096,930 1,106,094,901 --- 231,403,811 Restricted: Public housing program --- 1,707,735 1,707,735 --- --- Debt retirement 13,342,282 9,254,367 22,596,649 --- 3,877,846 Corpus non-expendable permanent 4,114,621 --- 4,114,621 1,137,525 --- Donor restricted temporary --- --- --- 1,606,615 --- Capital projects 3,262,701 --- 3,262,701 --- --- Public works 12,457,076 --- 12,457,076 --- --- Police and fire 481,664 --- 481,664 --- --- Culture and recreation 1,475,997 --- 1,475,997 --- --- Community and economic development 17,289,053 --- 17,289,053 --- --- Other restricted assets 39,668,136 --- 39,668,136 --- 17,339,937 Unrestricted (90,009,943) 23,115,389 (66,894,554) 1,129,204 63,309,205 Total net position 766,079,558 $ 376,174,421 $ 1,142,253,979 $ 3,873,344 $ 315,930,799 $ PRIMARY GOVERNMENT COMPONENT UNITS 23 -- 46 of 253 -- CITY OF DES MOINES STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 PROGRAM REVENUES CHARGES FOR OPERATING CAPITAL SALES AND GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS Primary government: Governmental activities: Public safety 147,553,966 $ 28,711,991 $ 4,507,463 $ 100,010 $ Public works 65,268,316 4,102,995 30,061,407 17,797,731 Health and social services 11,094,869 151,050 10,205,863 --- Culture and recreation 33,865,746 3,274,911 978,651 850,736 Community and economic development 35,885,238 700,283 6,892,924 --- General government 49,931,107 32,637,292 8,800,040 500,000 Interest on long-term debt 11,539,387 --- 1,479,221 --- Total governmental activities 355,138,629 69,578,522 62,925,569 19,248,477 Business-type activities: Parking facilities system 10,716,509 8,045,592 --- --- Sewer system 40,043,204 50,553,992 --- 561,429 Stormwater utility 22,158,196 30,345,944 --- 1,261,092 Golf 676,692 527,792 --- 3,900 Solid waste system 13,770,043 15,346,330 --- --- Municipal Housing Agency 23,980,807 1,565,527 21,334,868 1,716,875 Total business-type activities 111,345,451 106,385,177 21,334,868 3,543,296 Total primary government 466,484,080 $ 175,963,699 $ 84,260,437 $ 22,791,773 $ Component unit, Des Moines Public Library Foundation 392,237 $ --- $ 359,931 $ --- $ Component unit, Des Moines Airport Authority 40,534,597 $ 42,657,777 $ 4,056,938 $ 19,473,932 $ General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Local Option Sales Taxes Hotel/motel taxes Franchise taxes Investment earnings Miscellaneous Gain on disposal of capital assets Transfers - internal activities Total general revenues and transfers Change in net position Net position, beginning, as restated Net position, ending The notes to the financial statements are an integral part of this statement. 24 -- 47 of 253 -- PRIMARY GOVERNMENT COMPONENT UNIT GOVERNMENTAL BUSINESS-TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY (114,234,502) $ --- $ (114,234,502) $ --- $ --- $ (13,306,183) --- (13,306,183) --- --- (737,956) --- (737,956) --- --- (28,761,448) --- (28,761,448) --- --- (28,292,031) --- (28,292,031) --- --- (7,993,775) --- (7,993,775) --- --- (10,060,166) --- (10,060,166) --- --- (203,386,061) --- (203,386,061) --- --- --- (2,670,917) (2,670,917) --- --- --- 11,072,217 11,072,217 --- --- --- 9,448,840 9,448,840 --- --- --- (145,000) (145,000) --- --- --- 1,576,287 1,576,287 --- --- --- 636,463 636,463 --- --- --- 19,917,890 19,917,890 --- --- (203,386,061) $ 19,917,890 $ (183,468,171) $ --- $ --- $ (32,306) $ 25,654,050 $ 156,903,801 --- 156,903,801 --- --- 27,831,493 --- 27,831,493 --- --- 51,442,395 --- 51,442,395 --- --- 4,041,075 --- 4,041,075 --- --- 14,398,834 --- 14,398,834 --- --- 210,503 175,595 386,098 354,858 647,612 30,480 --- 30,480 78,904 --- 144,167 16,034 160,201 --- --- 15,214,133 (15,214,133) --- --- --- 270,216,881 (15,022,504) 255,194,377 433,762 647,612 66,830,820 4,895,386 71,726,206 401,456 26,301,662 699,248,738 371,279,035 1,070,527,773 3,471,888 289,629,137 766,079,558 $ 376,174,421 $ 1,142,253,979 $ 3,873,344 $ 315,930,799 $ NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION 25 -- 48 of 253 -- CITY OF DES MOINES, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2021 BENEFIT DEBT TAX TAX GENERAL SERVICE INCREMENT ACCOUNTS ASSETS Cash and investments 54,640,383 $ 14,493,115 $ 16,990,538 $ 486,871 $ Taxes receivable 74,630,658 28,568,261 40,563,003 25,570,138 Accounts receivable 5,323,968 --- --- --- Loans receivable, net of allowance for doubtful accounts --- --- --- --- Accrued interest receivable 26,862 --- --- --- Due from other funds 6,344,417 --- --- --- Due from other governmental units 294,468 --- --- --- Advance to other funds 3,592,762 --- --- --- Special assessment receivables --- --- --- --- Inventory --- --- --- --- Prepaid items 948,667 --- --- --- Total assets 145,802,185 $ 43,061,376 $ 57,553,541 $ 26,057,009 $ LIABILITIES Accounts payable 2,666,266 $ --- $ --- $ --- $ Contracts payable 1,727 --- --- --- Accrued wages payable 7,749,785 --- --- --- Accrued employee benefits --- --- --- --- Due to other funds --- --- --- --- Unearned revenue 2,031,999 --- --- --- Good faith, security deposits 917,420 --- --- --- Total liabilities 13,367,197 --- --- --- DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 72,089,471 28,286,266 40,430,166 25,299,631 Unavailable revenue - intergovernmental --- --- --- --- Unavailable revenue - special assessments --- --- --- --- Total deferred inflows of resources 72,089,471 28,286,266 40,430,166 25,299,631 FUND BALANCES (DEFICITS) Nonspendable 4,541,429 --- --- --- Restricted 1,432,995 14,775,110 17,123,375 757,378 Committed 1,000,000 --- --- --- Unassigned 53,371,093 --- --- --- Total fund balances 60,345,517 14,775,110 17,123,375 757,378 Total liabilities, deferred inflows of resources and fund balances (deficits) 145,802,185 $ 43,061,376 $ 57,553,541 $ 26,057,009 $ The notes to the financial statements are an integral part of this statement. 26 -- 49 of 253 -- FRANCHISE LOCAL AMERICAN OTHER TOTAL FEE COURT OPTION RESCUE CAPITAL GOVERNMENTAL GOVERNMENTAL SETTLEMENT SALES TAX PLAN PROJECTS FUNDS FUNDS --- $ 18,494,911 $ 47,412,307 $ 93,693,011 $ 24,251,854 $ 270,462,990 $ --- 2,932,474 --- --- 21,940,514 194,205,048 --- --- --- 1,335,814 208,566 6,868,348 --- --- --- --- 1,757,876 1,757,876 --- --- --- --- 35,278 62,140 --- --- --- --- 112,558 6,456,975 --- 17,246,681 --- 3,406,911 10,060,855 31,008,915 --- --- --- --- --- 3,592,762 --- --- --- 2,637,385 --- 2,637,385 --- --- --- --- 72,600 72,600 --- --- --- 162,264 124,648 1,235,579 --- $ 38,674,066 $ 47,412,307 $ 101,235,385 $ 58,564,749 $ 518,360,618 $ --- $ 117,279 $ --- $ 480,317 $ 2,350,799 $ 5,614,661 $ --- --- --- 10,186,559 16,559 10,204,845 --- 20,061 --- 240,088 787,105 8,797,039 --- --- --- --- 839,576 839,576 --- --- --- 322,924 3,220,728 3,543,652 --- --- 47,412,307 73,935 2,280 49,520,521 --- --- --- --- 120,935 1,038,355 --- 137,340 47,412,307 11,303,823 7,337,982 79,558,649 --- --- --- --- 21,555,774 187,661,308 --- 17,246,681 --- 1,847,840 1,609,280 20,703,801 --- --- --- 2,637,385 --- 2,637,385 --- 17,246,681 --- 4,485,225 23,165,054 211,002,494 --- --- --- 162,264 4,311,869 9,015,562 --- 21,290,045 --- 894,342 18,742,566 75,015,811 --- --- --- 84,748,128 6,469,434 92,217,562 --- --- --- (358,397) (1,462,156) 51,550,540 --- 21,290,045 --- 85,446,337 28,061,713 227,799,475 --- $ 38,674,066 $ 47,412,307 $ 101,235,385 $ 58,564,749 $ 518,360,618 $ 27 -- 50 of 253 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2021 Total governmental fund balances 227,799,475 $ Amounts reported for governmental activities in the statement of net position are different because: 1,190,525,246 23,341,186 Capital assets, net of accumulated depreciation 17,017,673 Other current assets 19,972,746 Deferred outflow of resources, pension related items 848,421 Deferred outflow of resources, OPEB related items 82,627 Other current liabilities (5,929,555) Net pension liability - IPERS (3,545,715) Other accrued post retirement benefits (763,351) Other noncurrent liabilities (384,294) Deferred inflow of resources, pension related items (122,854) Deferred inflow of resources, OPEB related items (148,625) 27,027,073 Internal service funds allocated to business-type activities 16,536,465 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 inflows of resources in the governmental funds balance sheet. Internal service funds are used by management to charge the costs of certain services to individual funds. The assets, deferred outflow of resources, liabilities and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position. 28 -- 51 of 253 -- Deferred outflows of resources - IPERS 12,138,237 Deferred outflows of resources - MFPRSI 45,959,627 Deferred outflows of resources - OPEB 2,069,251 Deferred inflows of resources - IPERS (1,757,651) Deferred inflows of resources - MFPRSI (3,217,117) Deferred inflows of resources - OPEB (3,722,075) 51,470,272 Unamortized premium cost (31,901,317) Accrued employee benefits (38,705,883) Other accrued post retirement benefits (19,116,935) Accrued interest payable (1,432,828) Notes payable (3,269,426) Section 108 loans payable (6,852,000) General obligation bonds payable (468,535,000) Other liabilities, claims and judgments (4,731,900) Net pension liability - IPERS (50,728,054) Net pension liability - MFPRSI (145,346,816) (770,620,159) Net position of governmental activities 766,079,558 $ The notes to the financial statements are an integral part of this statement. Long-term liabilities including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. Pension related deferred outflows of resources and deferred inflows of resources are not due and payable in the current year and, therefore are not reported in the governmental funds, as follows: 29 -- 52 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2021 BENEFIT DEBT TAX TAX GENERAL SERVICE INCREMENT ACCOUNTS Revenues: Taxes 74,679,424 $ 27,831,493 $ 40,352,652 $ 24,757,636 $ Franchise fees 13,629,881 --- --- --- Licenses and permits 3,905,491 --- --- --- Fines and forfeitures 6,848,095 --- --- --- Charges for sales and services 19,385,190 --- --- --- Use of money and property 1,644,019 --- 641,212 --- Miscellaneous 16,129,371 --- --- --- Intergovernmental 15,997,164 23,597,728 --- 942,061 Total revenue 152,218,635 51,429,221 40,993,864 25,699,697 Expenditures: Current: Public safety 117,959,420 --- --- --- Public works 5,103,052 --- --- --- Health and social services 508,769 --- --- --- Culture and recreation 19,788,696 --- --- --- Community and economic development 11,908,671 --- 19,340,177 --- General government 26,338,042 875,577 --- --- Capital outlay 186,226 --- --- --- Debt service: Principal retirement --- 102,794,455 758,000 --- Interest and fiscal charges --- 17,394,687 195,515 --- Total expenditures 181,792,876 121,064,719 20,293,692 --- Excess (deficiency) of revenues over expenditures (29,574,241) (69,635,498) 20,700,172 25,699,697 Other financing sources (uses): Transfers in 49,992,116 37,426,797 --- --- Transfers out (6,667,609) (135,352,972) (20,736,148) (25,479,671) Premium on bond issue --- 14,067,917 --- --- General obligation bonds issued --- 154,785,000 --- --- Loan proceeds --- --- --- --- Proceeds from damage claims 7,000 --- --- --- Proceeds from capital asset sale 54,513 --- --- --- Total other financing sources (uses) 43,386,020 70,926,742 (20,736,148) (25,479,671) Net change in fund balances 13,811,779 1,291,244 (35,976) 220,026 Fund balances, beginning of year, as restated 46,533,738 13,483,866 17,159,351 537,352 Fund balances, end of year 60,345,517 $ 14,775,110 $ 17,123,375 $ 757,378 $ The notes to the financial statements are an integral part of this statement. 30 -- 53 of 253 -- FRANCHISE LOCAL AMERICAN OTHER TOTAL FEE COURT OPTION RESCUE CAPITAL GOVERNMENTAL GOVERNMENTAL SETTLEMENT SALES TAX PLAN PROJECTS FUNDS FUNDS --- $ 34,195,714 $ --- $ --- $ 21,155,164 $ 222,972,083 $ 768,953 --- --- --- --- 14,398,834 --- --- --- --- 97,281 4,002,772 --- --- --- --- 20,078 6,868,173 --- 43,808 --- 16,743 1,731,597 21,177,338 91 --- --- 26,485 99,053 2,410,860 --- 1,934 --- 4,526,329 1,697,351 22,354,985 --- --- --- 9,557,742 47,629,830 97,724,525 769,044 34,241,456 --- 14,127,299 72,430,354 391,909,570 --- --- --- 69,358 4,122,295 122,151,073 --- --- --- 1,649,869 24,892,760 31,645,681 --- --- --- --- 10,199,499 10,708,268 --- --- --- 1,519,976 692,675 22,001,347 --- --- --- 2,961,162 1,249,514 35,459,524 --- 3,810,120 --- 800,689 4,263,298 36,087,726 --- --- --- 87,274,897 45,185,557 132,646,680 2,585,000 32,118 --- --- 737,000 106,906,573 40,283 4,512 --- --- 137,600 17,772,597 2,625,283 3,846,750 --- 94,275,951 91,480,198 515,379,469 (1,856,239) 30,394,706 --- (80,148,652) (19,049,844) (123,469,899) 626,057 5,818,904 --- 114,558,849 49,896,256 258,318,979 --- (26,102,560) --- (1,925,601) (26,951,840) (243,216,401) --- --- --- --- --- 14,067,917 --- --- --- --- --- 154,785,000 --- 111,555 --- --- --- 111,555 --- --- --- 23,477 --- 30,477 --- --- --- --- --- 54,513 626,057 (20,172,101) --- 112,656,725 22,944,416 184,152,040 (1,230,182) 10,222,605 --- 32,508,073 3,894,572 60,682,141 1,230,182 11,067,440 --- 52,938,264 24,167,141 167,117,334 --- $ 21,290,045 $ --- $ 85,446,337 $ 28,061,713 $ 227,799,475 $ 31 -- 54 of 253 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Net change in fund balances: Total governmental funds 60,682,141 $ Capital outlay 132,646,680 Depreciation (48,063,058) 84,583,622 (54,513) (238,975) 743,031 449,543 Current period payments (22,520,000) Amortization of discount on receivable 128,779 (22,391,221) 17,929,840 Capital assets contributed by private sources Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The following is the detail of the amount by which depreciation exceeded capital outlays in the current period. The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations and disposals) is to increase/decrease net position: Proceeds from the sale of capital assets Gain (Loss) from sale of capital assets Repayment on long-term receivable (due from component unit) is recognized in the governmental funds in the current year. Revenue related to the long-term receivable was recognized in the Statement of Activities at the inception of the agreement and thereby the revenue recognized in the governmental funds is reversed. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 32 -- 55 of 253 -- Amortization of premium 6,237,104 Long-term debt issued, including premiums of $14,067,917 (168,964,472) Repayment of long-term debt principal 106,906,573 Interest 124,886 Amortization of discount on revenue bonds (128,779) (55,824,688) (3,841,101) (722,960) (3,835,400) Pension expense - IPERS (2,340,694) Pension expense - MFPRSI (11,823,101) (22,563,256) 2,136,869 Change in internal service fund allocations to business-type activities 1,827,970 Change in net position of governmental activities 66,830,820 $ The notes to the financial statements are an integral part of this statement. Other accrued post retirement benefits Claims and judgments Internal service funds are used by management to charge the costs of various activities internally to individual funds. The net income of certain activities of internal service funds is reported with governmental activities. The issuance of long-term debt (e.g. bonds, loan, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In the statement of activities, interest is accrued on outstanding bonds, whereas in the governmental funds an interest expenditure is reported when due. The following is the detail of the net effect of these differences in the treatment of long-term debt and related items. 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: Accrued employee benefits 33 -- 56 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2021 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Current assets: Unrestricted current assets: Cash and investments 2,371,897 $ 23,578,678 $ 26,775,772 $ Taxes receivable --- --- --- Accounts receivable 22,511 --- 1,468 Due from other governmental units 6,360 4,183,665 3,693,855 Inventory --- --- --- Prepaid items --- 12,796 17,190 Total unrestricted current assets 2,400,768 27,775,139 30,488,285 Restricted current assets: Cash and investments --- 243,634 738,054 Interest receivable --- 14,449 203,246 Total restricted current assets --- 258,083 941,300 Total current assets 2,400,768 28,033,222 31,429,585 Noncurrent assets: Restricted cash and investments --- 1,877,072 15,473,517 Restricted interest receivable --- --- 17,018 Capital assets: Land 14,145,778 2,161,508 6,069,720 Construction in progress 3,852,157 36,310,682 31,236,759 Buildings 80,181,606 573,492 --- Improvements other than buildings 34,861,107 230,030,481 218,729,764 Machinery and equipment 1,146,429 6,396,132 5,552,100 Accumulated depreciation (70,222,453) (81,978,204) (38,128,430) Total capital assets, net of accumulated depreciation 63,964,624 193,494,091 223,459,913 Total noncurrent assets 63,964,624 195,371,163 238,950,448 Total assets 66,365,392 223,404,385 270,380,033 Other postemployment benefits related deferred outflows 18,361 120,879 55,084 Pension related deferred outflows 170,462 1,212,807 657,586 Total deferred outflow of resources 188,823 1,333,686 712,670 BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS ASSETS DEFERRED OUTFLOW OF RESOURCES 34 -- 57 of 253 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 4,186,047 $ 11,461,065 $ 68,373,459 $ 16,950,647 $ --- --- --- 15,184 161,582 100,076 285,637 2,015,644 1,710,324 88,685 9,682,889 672,290 67,149 --- 67,149 301,267 --- 788 30,774 17,714 6,125,102 11,650,614 78,439,908 19,972,746 --- --- 981,688 --- --- --- 217,695 --- --- --- 1,199,383 --- 6,125,102 11,650,614 79,639,291 19,972,746 1,707,735 --- 19,058,324 --- --- --- 17,018 --- 1,388,411 123,497 23,888,914 --- --- --- 71,399,598 --- 38,733,873 2,215,594 121,704,565 --- 5,858,605 3,466,036 492,945,993 --- 1,627,062 13,683,947 28,405,670 52,564,999 (39,160,542) (13,451,586) (242,941,215) (35,547,326) 8,447,409 6,037,488 495,403,525 17,017,673 10,155,144 6,037,488 514,478,867 17,017,673 16,280,246 17,688,102 594,118,158 36,990,419 50,494 70,385 315,203 82,627 471,803 786,655 3,299,313 848,421 522,297 857,040 3,614,516 931,048 (continued) BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 35 -- 58 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION (CONTINUED) PROPRIETARY FUNDS June 30, 2021 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Liabilities: Current liabilities: Accounts payable 223,664 $ 82,976 $ 157,213 $ Contracts payable 98,870 2,112,375 3,527,226 Accrued wages payable 64,663 268,670 442,762 Accrued employee benefits 111,913 273,863 425,078 Due to other funds 933,577 --- --- Tenant security deposits --- --- --- Accrued interest payable 73,974 --- 13,183 Revenue bonds payable --- 2,255,489 5,697,083 General obligation bonds payable --- --- 420,000 Capital lease payable 1,192,515 --- --- Unearned revenue --- --- --- Total current liabilities - from unrestricted 2,699,176 4,993,373 10,682,545 Current liabilities payable from restricted assets: Revenue bonds payable --- 215,511 486,917 Accrued interest payable --- 28,116 251,115 Total current liabilities - from restricted --- 243,627 738,032 2,699,176 5,237,000 11,420,577 Noncurrent liabilities: Accrued employee benefits 198,910 486,755 732,888 Other postemployment benefits 169,633 1,116,753 508,900 Net pension liability 712,393 5,068,555 2,748,178 Advance from other funds 792,139 --- --- Revenue bonds payable, net --- 24,584,346 95,035,033 General obligation bonds payable, net --- --- 6,347,702 Capital lease payable, net 20,197,469 --- --- Other liabilities --- --- --- Total noncurrent liabilities 22,070,544 31,256,409 105,372,701 Total liabilities 24,769,720 36,493,409 116,793,278 Other postemployment benefits related deferred inflows 33,028 217,432 99,083 Pension related deferred inflows 24,683 175,618 95,220 Total deferred inflow of resources 57,711 393,050 194,303 Net investment in capital assets 42,475,770 164,326,370 120,809,893 Restricted: Public housing program --- --- --- Debt retirement --- 1,998,320 7,256,047 Unrestricted (748,986) 21,526,922 26,039,182 Total net position (deficit) 41,726,784 $ 187,851,612 $ 154,105,122 $ The notes to the financial statements are an integral part of this statement. LIABILITIES Total current liabilities DEFERRED INFLOWS OF RESOURCES NET POSITION BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 36 -- 59 of 253 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 260,254 $ 141,322 $ 865,429 $ 1,330,029 $ --- --- 5,738,471 --- 140,490 304,049 1,220,634 304,839 185,132 203,034 1,199,020 2,416,695 119,830 --- 1,053,407 1,859,916 138,766 --- 138,766 --- --- 32,928 120,085 --- --- --- 7,952,572 --- --- 585,000 1,005,000 --- --- --- 1,192,515 --- 18,712 --- 18,712 18,076 863,184 1,266,333 20,504,611 5,929,555 --- --- 702,428 --- --- --- 279,231 --- --- --- 981,659 --- 863,184 1,266,333 21,486,270 5,929,555 200,235 360,865 1,979,653 384,294 466,492 650,261 2,912,039 763,351 1,971,757 3,287,585 13,788,468 3,545,715 --- 2,800,623 3,592,762 --- --- 1,395,076 121,014,455 --- --- 12,400,000 18,747,702 --- --- --- 20,197,469 --- 258,246 --- 258,246 --- 2,896,730 20,894,410 182,490,794 4,693,360 3,759,914 22,160,743 203,977,064 10,622,915 90,826 126,606 566,975 148,625 68,318 113,910 477,749 122,854 159,144 240,516 1,044,724 271,479 8,447,409 6,037,488 342,096,930 17,017,673 1,707,735 --- 1,707,735 --- --- --- 9,254,367 --- 2,728,341 (9,893,605) 39,651,854 10,009,400 12,883,485 $ (3,856,117) $ 392,710,886 $ 27,027,073 $ BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 37 -- 60 of 253 -- CITY OF -- 61 of 253 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE ENTERPRISE FUNDS NET POSITION TO THE STATEMENT OF NET POSITION For the Fiscal Year Ended June 30, 2021 Net position of enterprise funds 392,710,886 $ (16,536,465) Net position of business-type activities 376,174,421 $ The notes to the financial statements are an integral part of this statement. Amounts reported for proprietary activities in the statement of activities are different because: Internal service funds are used by management to charge the costs of various activities internally to individual funds. The net expense of certain activities of internal service funds is reported with business-type activities. 39 -- 62 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2021 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Operating revenues: Charges for sales and services 8,045,360 $ 50,536,005 $ 30,345,944 $ Operating grants --- --- --- Miscellaneous 232 17,987 --- Total operating revenues 8,045,592 50,553,992 30,345,944 Operating expenses: Personal services 1,210,579 5,578,578 7,038,347 Contractual services 3,583,542 22,709,780 4,315,063 Commodities 205,116 401,208 386,190 Depreciation 3,128,052 4,813,776 4,574,676 Other charges 1,534,938 5,734,022 2,963,415 Total operating expenses 9,662,227 39,237,364 19,277,691 Operating income (loss) (1,616,635) 11,316,628 11,068,253 Non-operating revenues (expenses): Investment earnings 3,429 8,083 149,938 Proceeds from damage claims --- --- --- Interest expense and fiscal charges (942,170) (367,574) (2,491,755) Gain (loss) on disposal of capital assets 525 20,276 (7,663) Total nonoperating revenues (expenses) (938,216) (339,215) (2,349,480) Income (loss) before transfers, capital grants and contributions (2,554,851) 10,977,413 8,718,773 Capital grants and contributions --- 561,429 1,261,092 Transfers in 2,250,000 5,066,458 2,738,703 Transfers out --- (3,360,102) (8,249,192) Change in net position (304,851) 13,245,198 4,469,376 Total net position - beginning 42,031,635 174,606,414 149,635,746 Total net position - ending 41,726,784 $ 187,851,612 $ 154,105,122 $ The notes to the financial statements are an integral part of this statement. BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 40 -- 63 of 253 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 1,416,829 $ 15,840,263 $ 106,184,401 $ 52,042,575 $ 21,334,868 --- 21,334,868 --- 148,698 33,859 200,776 10,532 22,900,395 15,874,122 127,720,045 52,053,107 3,507,068 5,580,796 22,915,368 5,699,026 18,986,938 6,434,748 56,030,071 34,391,122 --- 398,963 1,391,477 4,388,814 1,172,389 803,650 14,492,543 4,405,163 --- 457,084 10,689,459 1,287,835 23,666,395 13,675,241 105,518,918 50,171,960 (766,000) 2,198,881 22,201,127 1,881,147 3,338 10,807 175,595 --- --- --- --- --- --- (197,064) (3,998,563) --- --- 2,896 16,034 144,167 3,338 (183,361) (3,806,934) 144,167 (762,662) 2,015,520 18,394,193 2,025,314 1,716,875 3,900 3,543,296 --- --- --- 10,055,161 111,555 --- (13,660,000) (25,269,294) --- 954,213 (11,640,580) 6,723,356 2,136,869 11,929,272 7,784,463 385,987,530 24,890,204 12,883,485 $ (3,856,117) $ 392,710,886 $ 27,027,073 $ BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 41 -- 64 of 253 -- CITY OF -- 65 of 253 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE CHANGE IN NET POSITION OF ENTERPRISE FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Net changes in net position in enterprise funds 6,723,356 $ (1,827,970) Change in net position of business-type activities 4,895,386 $ The notes to the financial statements are an integral part of this statement. Amounts reported for proprietary activities in the statement of activities are different because: Internal service funds are used by management to charge the costs of various activities internally to individual funds. The net expense of certain activities of internal service funds is reported with business-type activities. 43 -- 66 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2021 SEWER STORMWATER PARKING SYSTEM UTILITY CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 8,043,256 $ 49,940,376 $ 30,064,395 $ Receipts from interfund services provided --- --- --- Payments to suppliers (5,753,283) (28,773,353) (7,583,094) Payments to employees (1,029,577) (5,201,568) (6,796,098) Receipts from miscellaneous revenue --- 17,987 (699) Payments for interfund services used --- --- --- Net cash provided by (used in) operating activities 1,260,396 15,983,442 15,684,504 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments to interfund accounts (525,767) --- --- Proceeds from interfund accounts --- --- --- Transfers In 2,250,000 5,066,458 2,738,703 Transfers Out --- (3,360,102) (8,249,192) Intergovernmental receipts --- --- --- Net cash provided by (used in) Noncapital financing activities 1,724,233 1,706,356 (5,510,489) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from intergovernmental and capital grants --- --- 590,554 Interest paid on capital debt (946,129) (444,659) (3,355,837) Principal paid on long-term debt and leases (1,144,997) (1,843,000) (5,432,000) Proceeds from issuance of revenue bonds and notes from direct borrowings --- 7,936,564 29,086,710 Proceeds from issuance of general obligation bonds --- --- --- Proceeds from premium on general obligation bonds --- --- --- Proceeds from premium on revenue bonds --- --- 2,315,486 Proceeds from sale of capital assets 525 99,887 68,872 Acquisition and construction of capital assets (1,898,276) (17,345,596) (24,587,477) Net cash provided by (used) by capital and related financing activities (3,988,877) (11,596,804) (1,313,692) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments --- 2,811,685 $ 28,407,756 $ Purchase of investments --- (2,756,185) (26,142,087) Interest and dividends received 3,429 950 33,568 Net cash provided by investing activities 3,429 56,450 2,299,237 Net increase (decrease) in cash and cash equivalents (1,000,819) 6,149,444 11,159,560 Cash and cash equivalents, beginning of year 3,372,716 17,672,868 16,354,266 Cash and cash equivalents, end of year 2,371,897 $ 23,822,312 $ 27,513,826 $ BUSINESS-TYPE ACTIVITIES - 44 -- 67 of 253 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS 21,766,915 $ 15,706,914 $ 125,521,856 $ 41,915,958 $ --- --- --- 8,061,850 (19,291,641) (7,314,798) (68,716,169) (39,265,721) (3,383,317) (5,499,110) (21,909,670) (5,589,466) --- --- 17,288 --- --- --- --- (252,786) (908,043) 2,893,006 34,913,305 4,869,835 --- --- (525,767) 1,664,679 --- 60,481 60,481 --- --- --- 10,055,161 111,555 --- (13,660,000) (25,269,294) --- --- --- --- (494,636) --- (13,599,519) (15,679,419) 1,281,598 1,716,875 3,900 2,311,329 --- --- (289,495) (5,036,120) --- --- (675,000) (9,094,997) --- --- - 37,023,274 --- --- 13,660,000 13,660,000 --- --- 1,520,435 1,520,435 --- --- --- - --- --- 2,896 172,180 144,167 (1,182,103) --- (45,013,452) (5,426,954) 534,772 14,222,736 (4,457,351) (5,282,787) --- $ --- $ 31,219,441 $ --- $ --- --- (28,898,272) --- 3,338 10,807 52,092 --- 3,338 10,807 2,373,261 --- (369,933) 3,527,030 19,465,282 868,646 6,263,715 7,934,035 51,597,600 16,082,001 5,893,782 $ 11,461,065 $ 71,062,882 $ 16,950,647 $ (continued) 45 -- 68 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2021 SEWER STORMWATER PARKING SYSTEM UTILITY Reconciliation of cash and cash equivalents to specific assets on the combined statement of net position: Unrestricted cash and investments 2,371,897 $ 23,578,678 $ 26,775,772 $ Restricted cash and investments - current - 243,634 738,054 Restricted cash and investments - noncurrent - 1,877,072 15,473,517 Less items not meeting the definition of cash equivalents - (1,877,072) (15,473,517) Cash and cash equivalents, end of year 2,371,897 23,822,312 27,513,826 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) (1,616,635) $ 11,316,628 $ 11,068,253 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 3,128,052 4,813,776 4,574,676 (Increase) decrease in accounts and taxes receivable (7,616) 22,638 174,749 (Increase) decrease in due from other governmental units 5,280 (618,267) (456,298) Increase in inventories --- --- --- (Increase) decrease in prepaid items 191,620 100,029 69,044 Increase (decrease) in accounts and contracts payable (429,687) (28,372) 11,831 Increase in accrued wages payable 7,887 36,813 54,006 Increase (decrease) in accrued employee benefits and other postemployment benefits (20,972) 27,398 31,518 Decrease in due to other governmental units --- --- --- Decrease in other liabilities, self-sufficiency participation and tenant security deposits --- --- --- Decrease in unearned revenue --- --- --- Increase in deferred outflows (5,251) (136,249) (67,573) Decrease in deferred inflows (71,363) (435,552) (246,097) Increase in net pension liability 79,081 884,600 470,395 Total adjustments 2,877,031 4,666,814 4,616,251 Net cash provided by (used in) operating activities 1,260,396 $ 15,983,442 $ 15,684,504 $ Schedule of noncash investing and financing activities: Increase (decrease) in fair value of investments - $ (27,750) $ (36,600) $ Schedule of noncash capital and related financing activities: - Gain (loss) on disposal of capital assets 525 $ 20,276 $ (7,663) $ Payments on accounts or contracts payable for acquisition of capital assets --- (2,215,625) (1,795,174) Capital assets contributed --- 561,429 670,538 The notes to the financial statements are an integral part of this statement. BUSINESS-TYPE ACTIVITIES - 46 -- 69 of 253 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS 4,186,047 $ 11,461,065 $ 68,373,459 $ 16,950,647 $ - - 981,688 - 1,707,735 - 19,058,324 - - - (17,350,589) - 5,893,782 11,461,065 71,062,882 16,950,647 (765,618) $ 2,198,881 $ 22,201,509 $ 1,881,147 $ 1,172,389 803,650 14,492,543 4,405,163 (46,746) (69,207) 73,818 (2,005,424) (1,010,436) 46,476 (2,033,245) (72,832) --- --- - (8,285) - 67,742 428,435 (40,963) (304,703) (91,745) (842,676) 461,512 18,035 43,907 160,648 45,121 45,618 (81,958) 1,604 54,975 (5,956) --- (5,956) --- (70,724) --- (70,724) --- - (144,477) (144,477) --- (35,024) (60,899) (304,996) (66,638) (179,381) (305,416) (1,237,809) (332,525) 274,503 486,052 2,194,631 548,584 (142,425) 694,125 12,711,796 2,988,688 (908,043) $ 2,893,006 $ 34,913,305 $ 4,869,835 $ - $ - $ (64,350) $ - $ - $ 2,896 $ 16,034 $ 144,167 $ --- --- (4,010,799) --- --- --- 1,231,967 --- 47 -- 70 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS - CUSTODIAL June 30, 2021 WATER RECLAMATION INVEST AUTHORITY DSM TOTALS ASSETS Cash 40,788,140 $ --- $ 40,788,140 $ Investments 28,476,987 --- 28,476,987 Receivables 5,534,371 --- 5,534,371 Prepaids 264,078 --- 264,078 Capital assets, net of depreciation 648,500,591 --- 648,500,591 Total assets 723,564,167 --- 723,564,167 LIABILITIES Accounts payable 5,673,295 --- 5,673,295 Accrued employee expenses 2,681,378 --- 2,681,378 Accrued interest payable 853,898 --- 853,898 Bonds payable 414,677,369 --- 414,677,369 Total liabilities 423,885,940 --- 423,885,940 Deferred Inflows of Resources, deferred charge on refunding 1,075,186 --- 1,075,186 NET POSITION (DEFICIT) Restricted for other governments 298,603,041 --- 298,603,041 Total net position (deficit) 298,603,041 $ --- $ 298,603,041 $ 48 -- 71 of 253 -- CITY OF DES MOINES, IOWA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS - CUSTODIAL For the Fiscal Year Ended June 30, 2021 WATER RECLAMATION INVEST AUTHORITY DSM TOTALS Additions: Contributions --- $ 112,038 $ 112,038 $ Charges for sales and services 57,570,501 --- 57,570,501 Sales tax 2,049,032 --- 2,049,032 Investment earnings 171,741 --- 171,741 Gain on disposal of capital assets 47,342 --- 47,342 Total additions 59,838,616 112,038 59,950,654 Deductions: Payments to suppliers & employees 23,268,146 262,590 23,530,736 Interest expense and fiscal charges 11,638,242 208,660 11,846,902 Depreciation 23,727,412 --- 23,727,412 Distribution to Invest DSM --- 3,396,727 3,396,727 Total operating expenses 58,633,800 3,867,977 62,501,777 Operating income (loss) 1,204,816 (3,755,939) (2,551,123) 1,204,816 (3,755,939) (2,551,123) 297,398,225 3,755,939 301,154,164 Total net position (deficit) - ending 298,603,041 $ --- $ 298,603,041 $ Change in net position Total net position (deficit) - beginning, as restated 49 -- 72 of 253 -- CITY OF -- 73 of 253 -- 51 CITY OF DES MOINES, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2021 1. Summary of Significant Accounting Policies The following is a summary of significant accounting policies employed in the preparation of these financial statements. A. Reporting Entity The City of Des Moines is located in Polk County and was first incorporated as a town in 1851 and as a city in 1857 under the laws of the State of Iowa. The City operates under the council-manager-ward form of government. In accordance with the Codification of Governmental Accounting and Financial Reporting Standards, the City has considered all potential organizations for which the nature and significance of their relationships with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a majority of an organization’s governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for that organization to provide specific benefits to or impose specific financial burdens on the City. The discretely presented component units discussed below are included in the City’s reporting entity because of the nature and significance of their relationship with the City and the ongoing financial support. The component units are discretely presented and reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the City. The Des Moines Public Library Foundation (Foundation) has a December 31st year-end. The Foundation is a non-profit community foundation founded to provide financial support to the Public Library of Des Moines by fund raising from the private sector, by indirectly supporting library advocacy groups, and by fostering innovative public and private collaboration. Money raised by the Foundation serves to enhance the operating budget of the public library by enhancing its collections, facilities and services, both traditional and technological, beyond what tax dollars provide. The Foundation is presented as a discretely presented component unit as it meets the requirements of GASB Statement No. 39, misleading to exclude. The Foundation publishes its own annual financial report, which is available at their office 1000 Grand Avenue, Des Moines, IA 50309. The Des Moines Airport Authority (the Authority) has a December 31st year-end. The Authority is responsible for the operation of the Des Moines International Airport and was established on November 1, 2011 pursuant to Section 330A of Iowa Code. A five- -- 74 of 253 -- 52 member board governs the Authority and is appointed by the Des Moines City Council. Upon dissolution of the Authority, all assets, deferred outflows of resources, liabilities and deferred inflows of resources would revert back to the City. The Authority publishes its own annual financial report, which is available at their office at 5800 Fleur Drive, Des Moines, Iowa 50321. B. 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 non-fiduciary activities of the City. For the most part, the effect of inter-fund activity has been removed from these statements. However, inter-fund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts which comprise its assets, liabilities, deferred outflows/inflows of resources, fund balance/net position, revenues, and expenditures or expenses, as appropriate. The City has the following funds: (1) Governmental Fund Types Governmental fund types are those funds through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund from which they are paid; and the difference between governmental fund assets and deferred outflows of resources and liabilities and deferred inflows of resources, the fund equity, is referred to as "fund balance." The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following comprise the City's major governmental funds: -- 75 of 253 -- 53 (a) General Fund The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Many of the more important activities of the City, including operation of the City's general service departments; street and highway maintenance; public safety, parks, cemetery, library, and recreation programs, are accounted for in this fund. The following accounts are included in this fund: General – To account for those resources funding traditional government functions not related to minor other activity detailed below. Other General – To account for several minor general fund activities not material enough to disclose separately (i.e. Benchmarking and City-wide Training, City match of Federal Police grant, and Employee Wellness Program). (b) Tax Increment Fund The Tax Increment Fund, a special revenue fund, accounts for receipt of property taxes allocated to various tax increment financing districts and used to pay the principal and interest on tax increment debt. (c) Debt Service Fund The Debt Service Fund is used to account for the funding and payment of interest and principal of general obligation and tax increment debt of the City. (d) Capital Projects Fund The Capital Projects Fund is used to account for all resources used in the acquisition and construction of capital facilities and other capital assets, with the exception of those that are financed through proprietary funds. The following accounts are included in this fund: Bridge Projects – To account for funding and construction of bridge projects. Fire Protection Projects – To account for funding and construction for improvements to the City’s fire stations and the acquisition of major firefighting apparatus. Library Projects – To account for funding and construction of major projects in the City’s Library System. Municipal Buildings Projects – To account for funding, construction, and improvements to municipal buildings not financed by enterprise operations. Park Improvement Projects – To account for funding and construction for major projects related to improvements to the City’s Parks System. -- 76 of 253 -- 54 Other Capital Projects – To account for projects that don’t fit into one of the other categories but require significant capital investment to complete, such as technology and environmental projects. Special Assessment Projects – To account for the collection of special assessment revenue utilized in major construction projects including streets, sidewalks, and sewers that provide benefit to particular property owners. Street Projects – To account for funding and construction of street, traffic control, and sidewalk projects. Urban Renewal Projects – To account for funding and construction of urban renewal projects. (e) Benefit Tax Accounts Fund Benefit Tax Accounts Fund, a special revenue fund, is used to account for the receipt and disbursement of property taxes generated by the trust and agency levy. The purpose of this portion of the levy is to fund employers’ share of costs for pensions and retirement systems. (f) Franchise Fee Court Settlement Fund Franchise Fee Court Settlement Fund, a special revenue fund, is used to account for the receipt and disbursement of voter approved franchise fee supplement receipts. The purpose of the supplement is to retire the general obligation bonds, whose proceeds were used to settle the judgment entered by the district court on November 27, 2013. The bonds were retired as of June 1, 2021. This fund is major for public purpose. (g) Local Option Sales Tax Local Option Sales Tax Fund, a special revenue fund, is used to account for the receipt and disbursement of local option sales tax revenue generated by a one-cent tax on taxable purchases within City limits. The tax was approved by voters on March 5, 2019 and is designated by City Council action to be used for property tax relief (50%) and other lawful purposes of the City (50%). (h) American Rescue Plan American Rescue Plan, a special revenue fund, is used to account for the receipt and disbursement of funds awarded through the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act of 2021. The City anticipates receiving $94.80 million in total, and must have those funds obligated by December 31, 2024 and fully spent by December 31, 2026. -- 77 of 253 -- 55 The other governmental funds of the City are considered non-major and are as follows: Special revenue funds are used to account for revenues derived from specific sources, which are usually required by law or regulation to be accounted for in separate funds. The following non-major funds are included in this fund type: Community Development Block Grant (CDBG) – To account for the Community Development Block Grant Program administered by the U.S. Department of Housing and Urban Development. Community Services – To account for the administration of federal programs designed to provide various services to the City’s elderly and low to moderate income residents. Other Employee Benefits – To account for the receipt and disbursement of property taxes generated by the trust and agency levy. The purpose of this portion of the levy is to fund employers’ share of costs of employee benefits that are not related to pensions or retirement. Road Use Tax – To account for state revenues allocated to the City for maintenance and improvement of City streets. Other Special Revenue – To account for several minor special revenue activities not material enough to disclose separately. Permanent funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs. The following non-major funds are included in this fund type: Permanent Cemetery Maintenance – Accounts for the fees collected for cemetery maintenance and related disbursements. Swartzell Endowment – Accounts for the principal and interest earnings of the trust, established to fund the cost of perennial plantings and public beautification projects. Weise Bird Habitats - Accounts for the funds bequeathed to the City under the will of Ruth E. Weise, to be used for the planting, cultivation, and preservation of trees and shrubs, and nesting, feeding habitats, and stations for birds in City parks. (2) Proprietary Fund Types Proprietary fund types are used to account for a government's ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is upon income determination, financial position and cash flows. -- 78 of 253 -- 56 Enterprise funds are used to finance and account for the acquisition, operation, and maintenance of the City's facilities and services which are supported primarily by user charges. The following comprise the City's major enterprise funds: (a) Stormwater Utility Fund – To account for the operation and maintenance of the City’s Stormwater Utility. (b) Parking Facilities System Fund – To account for the operation and maintenance of the City’s on and off street public parking facilities, except for those facilities operated by the Des Moines Airport Authority. (c) Sewer System Fund – To account for the operation and maintenance of the City’s Sanitary Sewer System. (d) Municipal Housing Agency Fund – To account for operations of the Federal Section 8 Rent Payment Assistance Program and low-income housing projects. This fund is major for public purpose. The other enterprise funds of the City are considered non-major and are as follows: Golf Courses – To account for the operation and maintenance of the City’s three golf courses: Waveland, Grandview, and A.H. Blank. Solid Waste System – To account for the operation and maintenance of the City’s Solid Waste Collection System. Internal service funds are used to finance and account for services and commodities provided by designated departments or agencies to other departments and agencies of the City. The following funds are included in this fund type: Central Services – To provide telephone services and miscellaneous field supplies to City departments. Equipment Replacement – To finance the replacement of automotive equipment, as necessary. The automotive equipment is initially acquired by the various user departments. Equipment Service Center – To provide maintenance and repair services for City automotive equipment. Forestry – To provide ground maintenance to other departments. Group Health Insurance – Accounts for City contributions, employee contributions, and self-insurance and health care cost of various health benefit plans. -- 79 of 253 -- 57 Radio Communications – To provide maintenance and repair services for radio equipment. Radio Replacement – To finance the replacement of radio equipment, as necessary. The radio equipment is initially acquired by the various user departments. (3) Fiduciary Fund Types Fiduciary fund types are used to account for assets held by a governmental unit in a trustee capacity for individuals, private organizations, other governmental units, and/or other funds. Custodial Funds Custodial funds are used to report fiduciary activities that are not required to be reported in pension trust funds, investment trust funds, or private-purpose trust funds. The City currently only reports custodial funds in its fiduciary fund types. The following funds are included in this fund type: Invest DSM – Upon creation of Invest DSM through a 28E agreement, the City acted as its operating agency providing accounting and treasury operations through September of 2020. The City paid out all Invest DSM funds by the end of fiscal 2021. Wastewater Reclamation Authority (WRA) – The City acts as the operating agency for the WRA, a joint venture of the City and surrounding municipalities. In this capacity, based on the operating agreement, the City holds and controls the WRA’s assets and liabilities and provides its general accounting and treasury operations. D. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Similarly, the custodial funds have an economic resources measurement focus and are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied and budgeted for. 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 available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period, with the exception of property taxes which is 60 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service -- 80 of 253 -- 58 expenditures, as well as expenditures related to compensated absences, net pension liabilities, other postemployment benefits and claims and judgments, are recorded only when payment is due. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures recorded and the availability criteria. In the other, monies are virtually unrestricted as to the purpose of expenditure, and are usually revocable only for failure to comply with prescribed requirements. These resources are reflected as revenues at the time of receipt, or earlier if the susceptible to accrual and availability criteria are met. Licenses and permits, fines and forfeitures, charges for sales and services (other than utility and ambulance), and miscellaneous revenues are generally recorded as revenue when received in cash, because they are generally not measurable until actually received. In the category of use of money and property, property rentals are recorded as revenue when received in cash, but investment earnings are recorded as earned, since they are measurable and available. Property taxes are recognized as a receivable at the time an enforceable legal claim is established. This is determined to occur when the budget is certified. The tax receivable represents unpaid taxes from the current year and the 2021 levy as based on the 2019 assessed valuations. The tax lien date is January 1, 2020. As the levy is intended for use in the 2022 fiscal year, the revenue has been recorded as a deferred inflow of resources. Taxes are levied on July 1 and are payable in two installments on September 30 and March 31. Tax payments become delinquent on October 1 and April 1. The County Treasurer bills and collects property taxes for the City. Property taxes are considered available if received within 60 days of year-end. The City is permitted by the Code of Iowa to levy taxes up to $8.10 per $1,000 of assessed valuation for General Fund purposes, $0.27 per $1,000 of assessed valuation for an Emergency Fund to assist in the funding of General Fund activities, and unlimited amounts for the payment of principal and interest on general obligation bonds, judgments awarded against the City, costs associated with pension and related employee benefits, and to pay the premium costs on tort liability insurance. The combined tax rate for the collection year ended June 30, 2021 was $16.61 per $1,000 of assessed valuation. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and internal service funds are charges to customers for sales and services and housing operating grants. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. -- 81 of 253 -- 59 E. Budgetary and Legal Appropriation and Amendment Policies As allowed by GASB Statement No. 41, Budgetary Comparison Schedules – Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of ten functional areas as required by state statute for its legally adopted budget. F. Encumbrances Appropriations in the governmental funds are charged for encumbrances when commitments are made. At year-end, the encumbrances roll forward but the related budget for them does not. G. Cash and Pooled Cash Investments Except where otherwise required, the City maintains all deposits in a bank account in the name of the City. These deposits are invested on a short-term basis with interest income being recorded in the General Fund, except for interest income allocated to enterprise funds and where specifically required by law to be recorded in other funds. The balance reported in each fund represents an equity interest in the commingled pool of cash, which is under the management of the City Treasurer. H. Investments Investments are reported at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, and GASB Statement No. 72, Fair Value Measurement and Application. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. I. Statement of Cash Flows For purposes of the statement of cash flows for proprietary fund types, all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased are considered to be cash equivalents. J. Loans Receivable Loans receivable consist primarily of low and non-interest bearing loans. The City receives federal funds from the U.S. Department of Housing and Urban Development as part of the Community Development Block Grant, which allows the City to provide loans at below-market-rates to eligible corporations and individuals to finance urban and community development. Loans are carried at the amount of unpaid principal. Management records allowances for estimated uncollectible amounts based on historic information and review of outstanding amounts. As of June 30, 2021, the allowance for uncollectible amounts was $4,229,311. As of June 30, 2021, the City also had approximately $5,987,187 of loans outstanding which, due to the terms and nature of the agreements, are -- 82 of 253 -- 60 expected to be forgiven in the future and are, therefore, not recorded in the statement of net position but are expensed at the time of disbursement. K. Inventories and Prepaid Items Inventories are reported at cost and consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are consumed using the consumption method. Inventories are determined by actual count and priced on the first-in, first-out basis. 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. Prepaid items are expensed as the underlying service is consumed. L. Capital Assets Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and the proprietary fund financial statements. Capital assets are defined by the City of Des Moines as assets with an initial, individual cost of more than $5,000 and an initial useful life of one year or greater. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition 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 the life of the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Prior to fiscal year 2018, interest costs associated with constructed assets were capitalized as part of the cost of the asset. As a result of the adoption of GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of the Construction Period, no interest costs were capitalized in the current year and none will be capitalized going forward. Capital assets are depreciated using the half-year convention depreciation method (straight-line depreciation with a half-year taken the first year and the last year) over the following estimated useful lives: -- 83 of 253 -- 61 The City's collection of works of art, botanical center exhibits, library books, and other similar assets are not capitalized. These collections are unencumbered, held for public exhibition and education, protected, cared for and preserved and subject to City policy that requires proceeds from the sale of these items to be used to acquire other collection items. M. Deferred Inflows/Outflows of Resources Deferred inflows of resources: In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from three sources: property taxes, special assessments and intergovernmental revenue. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the City’s government-wide statements, the property tax revenues remain under the modified accrual basis of accounting and will become an inflow in the year for which the taxes are levied and budgeted for. In addition, the unamortized portions of deferred inflows related to the net pension liability and other postemployment benefits are also included in the City’s and Authority’s government-wide statements. Deferred outflows of resources: In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority, a discretely presented component unit, has three items that qualified for reporting in this category, in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In the City’s and Authority’s government-wide statements, pension related deferred outflows consists of unrecognized items not yet charged to pension expense and contributions from the employer after the measurement Assets Years Buildings 40 Improvements Other than Buildings: Bridges 60 Infrastructure Systems 50 Skywalks 40 Bridge Improvements 30 Flood Control 30 Infrastructure Improvements 20 Machinery and Equipment: Equipment 3-15 Vehicles 3-5 -- 84 of 253 -- 62 date but before the end of the employer’s reporting period. Additionally, the City and Authority both recognize deferred inflows due to other postemployment benefit related items not yet charged to expense. N. Inter-fund Transactions Transactions among City funds that would be treated as revenues and expenditures or expenses if they involved organizations external to the City government are accounted for as revenues and expenditures or expenses in the funds involved. Transactions, which constitute reimbursements to a fund for expenditures initially made from it, which are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the reimbursed fund. Transactions, which constitute the transfer of resources from a fund receiving revenues to a fund through which the revenues are to be expended, are separately reported in the respective funds' operating statements. Activity between funds that are representative of lending/borrowing arrangements at the end of the fiscal year are referred to as "due to/from other funds" or "advances to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Noncurrent portions of long-term inter-fund loan receivables are reported as advances within the governmental funds and enterprise funds. In the General fund the advance is offset equally by a fund balance nonspendable amount which indicates that they do not constitute expendable financial resources, and therefore, are not available for appropriation. O. Compensated Absences City employees accumulate vacation and sick leave hours for subsequent use or for payment upon termination, death, or retirement. Sick leave is payable when used, or upon death or retirement. If paid upon death or retirement, the total accumulated hours are paid at one-half of the then effective hourly rate for that employee, with a maximum of 750 hours per employee. For the government-wide financial statements, and the proprietary fund types, these accumulations are recorded as expenses and liabilities of the appropriate fund in the fiscal year earned. For governmental fund types, the amount of accumulated unpaid vacation and sick leave is recorded as a liability of the respective fund only if they have matured, for example, as a result of employee retirements and resignations. P. Fund Balance In the governmental fund financial statements, fund balances are classified as follows: -- 85 of 253 -- 63 Nonspendable: Amounts which cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained. Restricted: Amounts restricted to specific purposes when constraints placed on the use of the resources are either externally imposed by creditors, grantors, state or federal laws, or imposed by law through constitutional provisions or enabling legislation. Committed: Amounts which can be used only for the specific purpose pursuant to constraints formally imposed by the City Council through resolution approved prior to year-end. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same action it employed to commit those funds. Assigned: Amounts constrained by the City’s intent to use them for a specific purpose. It is the City’s policy that the authority to assign fund balance has been delegated by City Council to the City Manager and the Finance Director, through the adoption of the budget. Unassigned: All amounts not included in other spendable classifications. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. When an expenditure is incurred in governmental funds which can be paid using either restricted or unrestricted resources, it is the City’s policy to pay the expenditure from restricted fund balance and then from less restrictive classifications of committed, assigned and then unassigned fund balances. Q. Net Position Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources. Net investment in capital assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net investment in capital assets excludes unspent debt proceeds. The portion of the debt related to unspent proceeds is included in the same net position component as the unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Net position restricted through enabling legislation consists of $14,775,110 for debt service and $12,457,076 for road use. The City first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. As of June 30, 2021, the governmental activities had unspent bond proceeds of $77,217,640. The City also had unspent bond proceeds of $8,863,941 in the Stormwater Utility fund. -- 86 of 253 -- 64 R. Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. S. Accounts Receivable Accounts receivable result primarily from miscellaneous services provided to citizens in the General Fund, Capital Projects Fund, and other non-major governmental funds. Accounts receivable in the proprietary funds result from providing services specific to the operations of the fund. As of June 30, 2021, there was no allowance for doubtful accounts and the City had no significant write offs during the year then ended. T. Long-Term Obligations In the government-wide and proprietary fund type financial statements, long-term debt is reported as a liability 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 effective interest method. Bond issuance costs are expensed at the time of debt issuance In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of the debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Bond issuance costs are an expenditure at the time of debt issuance. U. Pensions The net pension liability, deferred outflows and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position of the Iowa Public Employees’ Retirement System and the Municipal Fire and Police Retirement System (Systems’) and additions to/deductions from the Systems’ fiduciary net position have been determined on the same basis as they are reported by the Systems’. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The pension liability related to governmental activities are generally liquidated by the General Fund, whereas amounts related to proprietary activities are liquidated through the fund recognizing the liability. V. Total OPEB Liability For purposes of measuring the total other postemployment benefit (OPEB) liability, deferred inflows of resources related to OPEB and OPEB expense, information has been based on the actuary report. For this purpose, benefit payments are recognized when due -- 87 of 253 -- 65 and payable in accordance with the benefit terms. The OPEB liability related to governmental activities are generally liquidated by the General Fund, whereas amounts related to proprietary activities are liquidated through the fund recognizing the liability. 2. Individual Fund Disclosures The following is a summary of deficit fund balances/net position of individual funds at June 30, 2021: DEFICIT DEFICIT FUND NET FUND TYPE INDIVIDUAL FUND BALANCES POSITION Governmental Special Revenue, Community Services 639,896 $ - $ Governmental Special Revenue, CDBG 113,124 - Proprietary Enterprise, Golf - 515,189 Proprietary Enterprise, Solid Waste System - 3,340,928 Proprietary Internal Service, Equipment Service Center - 1,886,434 Proprietary Internal Service, Forestry - 3,541,186 Proprietary Internal Service, Radio Communications - 246,185 The individual fund balance deficits will be eliminated by future taxes, intergovernmental revenue and fees for services. 3. Cash and Pooled Cash Investments and Investments The City maintains a cash and investment pool that is available for use by all funds, where the resources have been pooled in order to maximize investment opportunities. Each fund type's portion of this pool is displayed on the balance sheet as "Cash and investments." Investment income is allocated to the various funds based on their respective participation and in accordance with accounting principles generally accepted in the United States of America. In addition, investments are separately held by several of the City's funds. The Library Foundation has an endowment fund. As of December 31, 2020, the balance of $3,000,532 is in money market funds, U.S. government agencies, and mutual funds. A. Authorized Investments The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions approved pursuant to Chapter 12C, Code of Iowa; 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. However, the City’s investment policy additionally limits investments in commercial paper to obligations at the time of purchase rated within the two highest ratings, issued by nationally recognized statistical rating organizations with a maturity less than 270 days, provided that at the time of purchase no more than 10% of the investment portfolio be invested in commercial paper and no more than 5% of the investment portfolio shall be invested in securities of a single issuer. It also limits -- 88 of 253 -- 66 investments in prime bankers’ acceptances to those that mature within 270 days and that are eligible for purchase by a federal reserve bank, provided that at the time of purchase no more than 5% of the investment portfolio shall be invested in the securities of a single issuer. B. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. In accordance with the City’s investment policy, the City minimizes the market value risk of investments in the portfolio by structuring its investment portfolio so that securities mature to meet cash requirements for operations, thereby avoiding the need to sell securities in the open market prior to maturity. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity as of June 30, 2021: Investment Maturities (in Years) Security Less Description Fair Value Than 1 1 - 5 6 - 10 Commercial Paper 19,991,763 $ 19,991,763 $ — $ — $ Federal Farm Credit 3,567,065 — 3,567,065 — FHLB 6,762,095 1,200,049 5,562,046 — FNMA 6,531,791 — 6,531,791 — Treasury Bill 107,983,694 107,983,694 — — Treasury Note 8,529,517 — 8,529,517 — Total 153,365,925 $ 129,175,506 $ 24,190,419 $ — $ The above table includes the investments of the WRA, a custodial fund, of $28,476,987. C. Credit Risk Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s policy requires money market funds to have a rating of AAAm-g1, AAA-m or AA-m by Standard & Poor’s and Aaa, Aa1 or Aa2 if rated by Moody’s. Commercial paper must be rated “Prime- 1” by Moody’s and “A-1” or better by Standard & Poor’s at time of purchase. -- 89 of 253 -- 67 As of June 30, 2021, the City’s investments were rated as follows: Security Description Moody's Standard & Poor's Commercial Paper Prime-1 A-1 Federal Farm Credit Aaa AA+ FHLB Aaa AA+ FNMA Aaa AA+ D. Concentration of Credit Risk The City’s investment policy seeks diversification to reduce overall portfolio risk while attaining benchmark average rates of return to meet all anticipated cash requirements. The policy requires that, with the exception of U.S. Treasury securities, no more than 50% of the City’s total investment portfolio will be invested in a single security type, and no more than 25% with a single financial institution. The Finance Director/Treasurer will invest in securities with varying maturities. Certificates of deposit will be limited to the amount approved by City Council for each financial institution in accordance with Chapter 12C of the Code of Iowa. Prime bankers’ acceptances and commercial paper are limited as explained under authorized investments, above. More than 5% of the City’s investments are in Commercial Paper (13%) and Treasuries (76%) respectively. The City’s investments are in accordance with these policies regarding diversification. E. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Chapter 12C of the Code of Iowa requires all City funds be deposited into an approved depository and be either insured or collateralized. At June 30, 2021, the City’s deposits were held in banks within the state of Iowa and covered by the state sinking fund per Section 12C.25 of the Code of Iowa. At June 30, 2021, $153,365,925 of City investments were uninsured and unregistered securities held in trust at the City’s primary bank. F. Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly examples as follows: • Quoted prices for similar assets or liabilities in active market -- 90 of 253 -- 68 • Quoted prices for identical or similar assets or liabilities in markets that are not active • Inputs other than quoted prices that are observable for the asset or liability, such as the following: o Interest rates and yield curves observable at commonly quoted intervals o Implied volatilities o Credit spreads Level 3 inputs are significant unobservable inputs. Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy below. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Investments by Balance at Identical Assets Inputs Inputs fair value level June 30, 2021 Level 1 Level 2 Level 3 US Treasury Securities 116,513,211 $ — $ 116,513,211 $ — $ US Agency Securities 16,860,951 — 16,860,951 — Commercial Paper 19,991,763 — 19,991,763 — Total 153,365,925 $ — $ 153,365,925 $ — $ Assets and Liabilities Measured at Fair Value on a Recurring Basis The City utilized the following level 2 inputs to determine fair value: U.S. Treasury and Agency Securities: U.S. Government securities are reported at fair value based on a bullet (non-call) spread scale for each issuer for maturities going out to forty years. These spreads represent credit risk and are obtained from the new issue market, secondary trading, and dealer quotes. An Option Adjusted Spread (OAS) model is incorporated to adjust spreads of issues that have early redemption features. Final spreads are added to a U.S. Treasury curve. A special cash discounting yield/price routine calculates prices from final yields to accommodate odd coupon payment dates typical of medium-term notes. Commercial Paper: Investments in commercial paper are valued based on pricing for similar or identical assets traded in relatively inactive markets. -- 91 of 253 -- 69 A reconciliation of cash and investments as shown on the financial statements of the City follows: Cash and equivalents 291,726,310 $ Investments 153,365,925 445,092,235 $ Current assets: Unrestricted Cash and investments 355,787,096 $ Restricted cash and investments 981,688 Noncurrent assets: Restricted cash and investments 19,058,324 Fiduciary funds: Cash and investments 69,265,127 445,092,235 $ 4. Joint Venture The City is a participating community in the Des Moines Metropolitan Wastewater Reclamation Authority joint venture. This joint venture provides primary and secondary treatment of the sewer flows of the participating communities. The Amended and Restated Agreement for the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) was effective on July 1, 2004 with the second amended and restated agreement becoming effective on June 11, 2014. This agreement amended and restated the previous Integrated Community Area (I.C.A.) these agreements provide continued operation, improvements, and expansion. The WRA Agreement establishes the WRA as a separate legal entity with its own Board. The WRA Agreement also creates an independent governance structure, establishes an independent bonding authority for the WRA, and provides a framework for additional communities to participate. The City retains an ongoing financial responsibility to the WRA since it is obligated in some manner for the debts of the joint venture. Although the debt of the WRA is to be paid solely and only from WRA revenues, the participating communities in the joint venture cannot withdraw from the joint venture while any of bonds issued during the time the entity was a participating community are still outstanding. The WRA Sewer Revenue Bonds Series 2013B and 2015E include provisions that place the WRA debt service requirements on the same parity and rank as other debts of the participating communities. The WRA Agreement requires the debt service on these bonds to be allocated to the participating communities based on the WRA flows of the core communities and expansion communities of each calendar year. During fiscal 2021, the 2013B Series was refunded as 2021A. As of June 30, 2021, the Series 2015E bonds had a balance of $1,375,000 and the City of Des Moines’ estimated future allocation based on the WRA flows is currently $356,378. As of June 30, 2021, the Series 2021A bonds had a balance of $37,380,000 and the City of Des Moines’ estimated future allocation based on the WRA flows is currently $11,021,341. -- 92 of 253 -- 70 The State Revolving Loans are allocated based on the WRA flows of the participating communities. As of June 30, 2021, the WRA had $346,698,901 in State Revolving Loans with allocation governed by the WRA Agreement, of which $128,902,359 future principal debt service is a commitment of the City of Des Moines. The WRA Agreement does not provide for the determination of an equity interest for the participating communities. Withdrawing from the joint venture is a forfeit of all reversionary interest and no compensation would be paid. The WRA issues separate financial statements which may be obtained at 3000 Vandalia Road, Des Moines, Iowa 50317. -- 93 of 253 -- 71 Condensed financial information of the joint venture as of June 30, 2021 is as follows: Statement of Net Position Current assets 54,374,576 $ Noncurrent assets 669,189,591 Total assets 723,564,167 $ Current liabilities 24,955,374 $ Noncurrent liabilities 398,930,566 Total liabilities 423,885,940 $ Deferred inflow of resources 1,075,186 $ Net position: Net investment in capital assets 227,829,610 $ Restricted 36,648,026 Unrestricted 34,125,405 298,603,041 $ Statement of Revenues, Expenses and Changes in Net Position Operating revenues 57,570,501 $ Operating expenses 46,995,558 Operating income 10,574,943 Nonoperating, net (9,370,127) Change in net position 1,204,816 $ Statement of Cash Flows Cash provided by operating activities 34,939,483 $ Cash (used in) investing activities (1,548,060) Cash (used in) capital and related financing activities (34,643,672) Increase in cash and pooled cash (1,252,249) $ -- 94 of 253 -- 72 5. Operating Lease Rentals The City, as lessor, has various operating lease agreements for the use of land and facilities. The following is a schedule by year of minimum future rentals required under operating leases having initial or remaining noncancelable lease terms in excess of one year as of June 30, 2021: Year ending GENERAL FUND CAPITAL PROJECTS PARKING ENTERPRISE FUNDS TOTAL June 30, 2022 261,286 $ 16,000 $ 39,480 $ 316,766 $ 2023 189,828 16,000 1,000 206,828 2024 180,577 16,000 300 196,877 2025 164,572 16,000 - 180,572 2026 166,709 16,000 - 182,709 2027-2031 513,064 16,000 - 529,064 2032-2036 191,486 - - 191,486 2037-2041 92,328 - - 92,328 2042-2046 92,328 - - 92,328 2047-2051 36,931 - - 36,931 1,889,109 $ 96,000 $ 40,780 $ 2,025,889 $ Total minimum future rentals -- 95 of 253 -- 73 6. Changes in Capital Assets The following is a summary of changes in capital assets for the year ended June 30, 2021: BEGINNING ENDING BALANCE BALANCE 7/1/2020 ADDITIONS DELETIONS 6/30/2021 GOVERNMENTAL ACTIVITIES Capital Assets, not being depreciated: Land 151,310,488 $ 412,275 $ (293,488) $ 151,429,275 $ Construction in Progress 120,959,300 111,511,839 (38,891,635) 193,579,504 Total capital assets not being depreciated 272,269,788 111,924,114 (39,185,123) 345,008,779 Capital Assets, being depreciated: Buildings 245,374,130 5,586,648 - 250,960,778 Improvements Other than Buildings 1,311,357,006 52,107,840 - 1,363,464,846 Machinery and Equipment 97,598,852 8,089,698 (3,622,067) 102,066,483 Total capital assets being depreciated 1,654,329,988 65,784,186 (3,622,067) 1,716,492,107 Less accumulated depreciation for: Buildings 121,135,306 6,466,821 - 127,602,127 Improvements Other than Buildings 615,617,528 37,138,459 - 652,755,987 Machinery and Equipment 68,358,979 8,862,941 (3,622,067) 73,599,853 Total accumulated depreciation 805,111,813 52,468,221 (3,622,067) 853,957,967 Total capital assets, being depreciated, net 849,218,175 13,315,965 - 862,534,140 Governmental activities capital assets, net 1,121,487,963 $ 125,240,079 $ (39,185,123) $ 1,207,542,919 $ BUSINESS-TYPE ACTIVITIES Capital Assets, not being depreciated: Land 21,724,535 $ 2,164,379 $ - $ 23,888,914 $ Construction in Progress 87,042,208 30,708,229 (46,350,839) 71,399,598 Total capital assets not being depreciated 108,766,743 32,872,608 (46,350,839) 95,288,512 Capital Assets, being depreciated: Buildings 119,802,703 1,901,862 - 121,704,565 Improvements Other than Buildings 439,313,229 53,632,764 - 492,945,993 Machinery and Equipment 29,536,828 178,224 (1,309,382) 28,405,670 Total capital assets being depreciated 588,652,760 55,712,850 (1,309,382) 643,056,228 Less accumulated depreciation for: Buildings 71,976,233 3,427,232 - 75,403,465 Improvements Other than Buildings 135,514,961 9,448,434 - 144,963,395 Machinery and Equipment 22,110,713 1,616,877 (1,153,235) 22,574,355 Total accumulated depreciation 229,601,907 14,492,543 (1,153,235) 242,941,215 Total capital assets, being depreciated, net 359,050,853 41,220,307 (156,147) 400,115,013 Business-Type activities capital assets, net 467,817,596 $ 74,092,915 $ (46,506,986) $ 495,403,525 $ -- 96 of 253 -- 74 Depreciation Expense was charged to the functions of the primary government as follows: GOVERNMENTAL ACTIVITIES Public Safety 4,809,429 $ General Government 3,421,208 Public Works 29,231,709 Health and Social Services 1,399 Culture and Recreation 10,427,123 Community and Economic Development 172,190 Internal service assets are charged to the various functions based on their useage of the assets 4,405,163 Total Depreciation Expense - Governmental Activities 52,468,221 $ BUSINESS-TYPE ACTIVITIES Parking Facilities System 3,128,052 $ Sewer System 4,813,776 Stormwater Utility 4,574,676 Municipal Housing Agency 1,172,389 Solid Waste System 692,040 Golf 111,610 Total Depreciation Expense - Business-type Activities 14,492,543 $ 7. Employee Retirement Systems The City contributes to two employee retirement systems, the Iowa Public Employees Retirement System (IPERS) and the Municipal Fire and Police Retirement System of Iowa (MFPRSI). IPERS is administered by the State of Iowa. MFPRSI is governed by a nine-member Board of Trustees. Though separate and apart from state government, the Board is authorized by the state legislature, which also establishes by statute the pension and disability benefits and the System's funding mechanism. All full-time employees must participate in either IPERS or MFPRSI. As of June 30, 2021, the City had the following balances related to its pension accounts: IPERS MFPRSI Total Net Pension Liability 68,062,237 $ 145,346,816 $ 213,409,053 $ Deferred Inflows 2,358,254 3,217,117 5,575,371 Deferred Ouflows 16,285,971 45,959,627 62,245,598 Pension Expense 10,429,402 23,546,405 33,975,807 A. Defined Benefit Pension Plan - Iowa Public Employees Retirement System Plan Description: IPERS membership is mandatory for employees of the City, except for those covered by another retirement system. Employees of the City of Des Moines are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by Iowa Public Employees’ Retirement System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive, P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org. -- 97 of 253 -- 75 IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder. Chapter 97B and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits: A regular member may retire at normal retirement age and receive monthly benefits without an early-retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member’s years of service plus the member’s age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on the members first month of entitlement to the benefits.) Members cannot begin receiving retirement benefits before age 55. The formula used to calculate a Regular member’s monthly IPERS benefit includes: • A multiplier (based on years of service). • The member’s highest five-year average salary. (For members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five-year average salary.) If a member retires before normal retirement age, the member’s monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early- retirement reduction is calculated differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25% for each month that the member receives benefits before the member’s earliest normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50% for each month that the member receives benefits before age 65. Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member’s lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July, 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits: A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before retirement, the member’s beneficiary will receive a lifetime annuity or a lump- sum payment equal to the present actuarial value of the member’s accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. Contributions: Effective July 1, 2012, as a result of a 2010 law change, the contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS’ Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to 1% for regular members. IPERS Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the “entry age normal” actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial -- 98 of 253 -- 76 contribution rate covers normal cost plus the unfunded actuarial liability payment. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board. In fiscal year 2021, pursuant to the required rate, Regular members contributed 6.29% of pay and the City contributed 9.44% for a total rate of 15.73%. The City’s total contributions to IPERS for the year ended June 30, 2021 were $7,573,979. Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2021, the City reported a liability of $68,062,237 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of contributions to the pension plan relative to the contributions of all IPERS participating employers. At June 30, 2020, the City’s collective proportion was .975698% which was a decrease of .001396% from its proportion measured as of June 30, 2019. For the year ended June 30, 2021, the City recognized pension expense of $10,429,402. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 75,189 $ (1,613,248) $ Changes of assumptions 3,493,612 — Net difference between projected and actual earnings on pension plan investments 3,826,175 — Changes in proportion and differences between City contributions and proportionate share of contributions 1,317,016 (745,006) Total deferred amounts to be recognized in pension expense in future periods 8,711,992 (2,358,254) City contributions subsequent to the measurement date 7,573,979 — Total deferred amounts related to pension 16,285,971 $ (2,358,254) $ -- 99 of 253 -- 77 $7,573,979 reported as the deferred outflows of resources related to pensions resulting from the City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the average remaining service life of all system members or 5 years as follows: Fiscal Year Ended June 30, Pension Expense 2022 1,172,411 $ 2023 1,646,896 2024 1,379,250 2025 2,183,892 2026 (28,711) Total 6,353,738 $ There were no non-employer contributing entities at IPERS. Actuarial Assumptions: The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 2.60 percent per annum Rates of salary increase 3.25 to 16.25 percent, average, including inflation. Rates vary by membership group. Long-term Investment rate of return 7.00 percent, compounded annually, net of investment expense, including inflation. The actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies with dates corresponding to those listed above. Mortality rates were based on the RP-2014 Generational Mortality Tables, with age setbacks and age set forwards based on different membership groups. Future mortality improvements were anticipated using Projection Scale MP-2017. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best -- 100 of 253 -- 78 estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Asset Allocation Core Plus Fixed Income 28.0% -0.29% Domestic Equity 22.0% 4.43% International Equity 17.5% 5.15% Private Equity 11.0% 6.54% Private Real Assets 7.5% 4.48% Global Smart Beta Equity 6.0% 4.87% Public Credit 4.0% 2.29% Private Credit 3.0% 3.11% Cash 1.0% -0.78% Total 100% Long-Term Expected Real Rate of Return Discount Rate: The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the contractually required rate and that contributions from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1.00% lower (6.00%) or 1.00% higher (8.00%) than the current rate. 1% Decrease (6.0%) Discount Rate (7.0%) 1% Increase (8.0%) City's proportionate share of the net pension liability 113,488,028 $ 68,062,237 $ 29,973,396 $ Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued IPERS financial report which is available on IPERS’ website at www.ipers.org. Payables to the Pension Plan: At June 30, 2021, the City reported payables to the defined benefit pension plan of $403,524 for legally required employer contributions and $268,874 -- 101 of 253 -- 79 for legally required employee contributions which had been withheld from employee wages but not yet remitted to IPERS. B. Defined Benefit Pension Plan - Municipal Fire and Police Retirement System of Iowa Plan Description: MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City of Des Moines are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits: Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement benefits are granted to members with 22 years of service, while partial benefits are available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member’s highest 3 years of compensation. The average of these 3 years becomes the member’s average final compensation. The base benefit is 66% of the member’s average final compensation. Additional benefits are available to members who perform more than 22 years of service (2% for each additional year of service, up to a maximum of 8 years). Survivor benefits are available to the beneficiary of a retired member according to the provisions of the benefit option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50% surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in the DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member’s retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member’s retirement benefit at the member’s earliest date eligible and 100% if the member delays enrollment for 24 months. At the member’s actual date of retirement, the member’s DROP account will be distributed to the member in form of a lump sum or rollover to an eligible plan. Disability and Death Benefits: Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred -- 102 of 253 -- 80 in the line of duty, with benefits equivalent to the greater of 60% of the member’s average final compensation or the member’s service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50% of the member’s average final compensation, for those with 5 or more years of service, or the member’s service retirement benefit calculation amount, and 25% of average final compensation for those with less than 5 years of service. Death benefits are similar to disability benefits. Benefits for accidental death are 50% of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40% of the average final compensation of the member plus an additional amount for each child, or a lump-sum distribution to the designated beneficiary equal to 50% of the previous year’s earnable compensation of the member or equal to the amount of the member’s total contributions plus interest. Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. The surviving spouse or dependents of an active member who dies due to a traumatic personal injury incurred in the line of duty receives a $100,000 lump-sum payment. Contributions: Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa as modified by act of the 1994 General Assembly, to establish compliance with the Federal Older Workers Benefit Protections Act, the contribution rate was 9.40% of earnable compensation for the year ended June 30, 2021. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the entry age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer’s contribution rate cannot be less than 17.00% of earnable compensation. The contribution rate was 25.31% for the year ended June 30, 2021. The City's contributions to MFPRSI for the year ended June 30, 2021 were $15,224,032. If approved by the state legislature, state appropriation may further reduce the employer’s contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of Iowa therefore is considered to be a non-employer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 – Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2021. Net Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2021, the City reported a liability of -- 103 of 253 -- 81 $145,346,816 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of contributions to the pension plan relative to the contributions of all MFPRSI participating employers. At June 30, 2020, the City’s proportion was 18.2230% which was a decrease of .2142% from its proportion measured as of June 30, 2019. For the year ended June 30, 2021, the City recognized pension expense of $23,546,405. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 3,996,247 $ (789,535) $ Changes of assumptions 3,600,396 (173,409) Net difference between projected and actual earnings on pension plan investments 21,382,252 — Changes in proportion and differences between City contributions and proportionate share of contributions 1,756,700 (2,254,173) Total deferred amounts to be recognized in pension expense in future periods 30,735,595 (3,217,117) City contributions subsequent to the measurement date 15,224,032 — Total deferred amounts related to pension 45,959,627 $ (3,217,117) $ -- 104 of 253 -- 82 $15,224,032 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the average remaining service life of all system members or 5 years as follows: Fiscal Year Ended June 30, Pension Expense 2022 6,097,163 $ 2023 8,663,597 2024 7,647,656 2025 5,080,131 2026 29,931 Total 27,518,478 $ Actuarial Assumptions: The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 3.00 percent Salary increases 3.75 to 15.11 percent, including inflation Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience study for the period from July 1, 2007 to June 30, 2017. Mortality rates used by the Plan were based on the RP 2014 Blue Collar Healthy Annuitant table with males set-forward zero years, females set-forward two years and disabled set- forward three years (male only rates), with generational projection of future mortality improvement with 50% of Scale BB beginning in 2017. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation along with the best estimates of geometric real rates of return for each major asset class included in the pension plan’s target asset allocation as of December 31, 2018, (see the discussion of the pension plan’s investment policy) are summarized in the following tables: -- 105 of 253 -- 83 Asset Class Global Fixed Income 10.02% Core Infrastructure 3.01% Domestic Equities 11.95% Core Real Estate 8.00% International Equities 10.02% Core Investments 43% Global Fixed Income 8.75% Domestic Equities 13.13% International Equities 13.13% Strategic Investments Allocation 35% Private Markets 22% Total 100% Target Allocation Asset Class Long-Term Expected Real Rate of Return Large Cap 7.4% Small Cap 8.1% International Large Cap 7.2% Emerging Markets 7.9% Global Infrastructure 7.5% Private Non-Core Real Estate 11.5% Private Credit 6.4% Private Equity 10.8% Core Plus Fixed Income 4.0% Private Core Real Estate 7.2% Discount Rate: The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that contributions will be made at 9.40% of covered payroll and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00% higher (8.50%) than the current rate. -- 106 of 253 -- 84 1% Decrease (6.5%) Discount Rate (7.5%) 1% Increase (8.5%) City's proportionate share of the net pension liability 222,933,729 $ 145,346,816 $ 81,080,188 $ Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued MFPRSI financial report which is available on MFPRSI’s website at www.mfprsi.org. Payables to the Pension Plan: At June 30, 2021, the City of Des Moines reported payables to the defined benefit pension plan of $802,645 for legally required employer contributions and $283,192 for legally required employee contributions which had been withheld from employee wages but not yet remitted to MFPRSI. 8. Deferred Compensation The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code, Section 457, and also Section 401(a). The Section 457 plan, available to all City employees, and the Section 401(a) plan, available only to the SPM employment group, permits them to defer a portion of their salary until future years. The deferred compensation is available to employees at termination, retirement, death, unforeseeable emergency, loan or via in-service contributions at age 70 ½. The City matches 100% of employee contributions up to 2.0% or 2.5% of the employee’s salary, depending upon the governing employment agreement. For the fiscal year ended June 30, 2021, the City made $3,476,865 in matching contributions. The City’s 401(a) plan does not meet the definition of a component unit under GASB Statement No. 84 and the City does not control the assets of the plan, so the plan is not included as a fiduciary activity in the financial statements. In accordance with federal legislation (the Small Business and Wage Protection Act of 1996), the City has confirmed or established trust arrangements for all of the assets in the plan, to ensure those assets are protected and used exclusively for plan participants and beneficiaries. As a result of these arrangements, the deferred compensation plans are not reported in the City's financial statements. -- 107 of 253 -- 85 9. Long-term Debt The following is a summary of changes in long-term debt for the year ended June 30, 2021: BALANCE JUNE 30, 2020 ADDITIONS RETIREMENTS BALANCE JUNE 30, 2021 DUE WITHIN ONE YEAR RANGE OF INTEREST RATES Governmental Activities: General Obligation Bonds 396,225,000 $ 154,785,000 $ (82,475,000) $ 468,535,000 $ 42,555,000 $ 0.50% to 5.00% Add premiums 24,070,504 14,067,917 (6,237,104) 31,901,317 — Net General Obligation Bonds 420,295,504 168,852,917 (88,712,104) 500,436,317 42,555,000 Revenue Bonds 22,520,000 $ — $ (22,520,000) $ — $ — $ 4.50% to 5.75% Less discounts (128,779) — 128,779 — — Net Revenue Bonds 22,391,221 — (22,391,221) — — Section 108 Loans payable 7,610,000 — (758,000) 6,852,000 804,000 2.55% to 2.87% Notes Payable 871,444 111,555 (416,573) 566,426 312,010 2.80% to 10.55% Notes from Direct Borrowings and Private Placement 3,440,000 — (737,000) 2,703,000 774,000 4.00% Accrued Employee Benefits 38,192,540 45,750,136 (41,596,228) 42,346,448 28,729,348 N/A Liability for Claims/Judgments 896,500 3,970,479 (135,079) 4,731,900 4,731,900 N/A 493,697,209 $ 218,685,087 $ (154,746,205) $ 557,636,091 $ 77,906,258 $ Business-type Activities General Obligation Bonds 6,295,000 $ 13,660,000 $ (1,030,000) $ 18,925,000 $ 1,005,000 $ 1.25% to 5.00% Add premiums 1,025,212 1,520,435 (322,869) 2,222,778 — Net General Obligation Bonds 7,320,212 15,180,435 (1,352,869) 21,147,778 1,005,000 Revenue Bonds 59,260,000 $ 22,485,000 $ (5,485,000) $ 76,260,000 $ 6,020,000 $ 2.00% to 5.00% Add premiums 3,091,906 2,315,486 (740,216) 4,667,176 — Net Revenue Bonds 62,351,906 24,800,486 (6,225,216) 80,927,176 6,020,000 Revenue Bonds from Direct Borrowings & Private Placement 34,243,930 14,538,274 (1,435,000) 47,347,204 2,635,000 1.02% to 2.00% Capital Lease 22,534,981 — (1,144,997) 21,389,984 1,192,515 4.15% to 7.50% Accrued Employee Benefits 3,081,886 2,344,114 (2,247,327) 3,178,673 1,199,020 N/A 129,532,915 $ 56,863,309 $ (12,405,409) $ 173,990,815 $ 12,051,535 $ The payments on the bonds payable that pertain to the City's governmental activities are made by the debt service fund and the franchise fee fund. The payments on the tax increment notes, the Section 108 CDBG loans, and the notes payable that pertain to the City's governmental activities are made by the Tax Increment and the Economic Development Special Revenue Fund within the Other Special Revenue Funds. The accrued employee benefits and claims and judgments attributable to the governmental activities are generally liquidated by the General Fund. -- 108 of 253 -- 86 General Obligation Bonds: Governmental Activities: The City has issued the following general obligation bonds that are indebtedness secured by the full faith and credit of the City: GENERAL OBLIGATION BONDS GENERAL OBLIGATION BONDS YEAR PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 2022 28,750,000 $ 12,992,696 $ 13,805,000 $ 3,595,948 $ 42,555,000 $ 16,588,644 $ 2023 28,885,000 11,386,101 11,890,000 2,766,063 40,775,000 14,152,164 2024 41,970,000 10,029,451 10,180,000 2,310,636 52,150,000 12,340,087 2025 26,090,000 8,206,163 8,275,000 1,912,942 34,365,000 10,119,105 2026 24,390,000 7,159,788 7,490,000 1,611,792 31,880,000 8,771,580 2027-2031 111,315,000 22,129,259 33,315,000 4,845,734 144,630,000 26,974,993 2032-2036 74,160,000 8,205,058 22,715,000 1,658,809 96,875,000 9,863,867 2037-2040 21,375,000 1,039,212 3,930,000 192,387 25,305,000 1,231,599 Totals 356,935,000 $ 81,147,728 $ 111,600,000 $ 18,894,311 $ 468,535,000 $ 100,042,039 $ General Obligation Debt Service Tax Increment Debt Service Governmental Activities Total Proceeds from the Series 2020D General Obligation Bonds totaled $84,760,000 were allocated to certain capital improvement projects. Of this total, $13,660,000 has been allocated to the Solid Waste Fund. Proceeds from the Series 2020E Taxable General Obligation Bonds totaled $5,090,000 and were allocated to pay the costs of carrying out various essential and general corporate purpose projects. Proceeds from the Series 2021A General Obligation Refunding Capital Loan Notes totaled $34,760,000 and were used to current refund the Series 2013A General Obligation Bonds dated August 28, 2013, and to current refund the Series 2013B General Obligation Refunding Bonds dated August 28, 2013. Proceeds from the Series 2021B Taxable General Obligation Urban Renewal Capital Loan Notes totaled $43,835,000 and were allocated to provide funds to pay the costs of aiding in the planning, undertaking and carrying out of urban renewal projects, including funding urban renewal projects designed to protect the interests of the City and preserve the availability of parking for use by the public, which includes acquiring a privately constructed parking garage and adjacent parcels, and/or providing financial assistance, including but not limited to providing long-term financing for such projects. Solid Waste Enterprise Fund: The City has issued the following general obligation bonds that are obligations of the Solid Waste Enterprise Fund: Series June 30, 2021 Balance Maturity Fiscal Year Purpose General Obligation 2020D 12,985,000 $ 2040 Capital improvements The bonds are intended to be paid by solid waste customers net revenues, however the bonds are secured by the City’s property owners. Total principal and interest remaining to be paid on the bonds is $16,206,694. Principal and interest paid for the current year was $964,495. -- 109 of 253 -- 87 Stormwater Management Utility Enterprise Fund: The City has issued the following general obligation bonds that are obligations of the Stormwater Management Utility Enterprise Fund: Series June 30, 2021 Balance Maturity Fiscal Year Purpose General Obligation 2020A 5,940,000 $ 2032 Refunding Proceeds from the 2020F Stormwater Management Utility Revenue Bonds totaled $22,485,000 and were allocated to pay costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Stormwater Management Utility, including Closes Creek watershed improvements, flood mitigation and protection system improvements, levee maintenance and improvements, and city-wide stormwater projects. The bonds are intended to be paid by sewer customers net revenues, however the bonds are secured by the City’s property owners. Total principal and interest remaining to be paid on the bonds is $7,233,250. Principal and interest paid for the current year was $663,602. General Obligation Bonds YEAR PRINCIPAL INTEREST 2022 1,005,000 $ 628,731 $ 2023 1,035,000 578,481 2024 1,065,000 526,731 2025 1,090,000 473,481 2026 1,130,000 418,981 2027-2031 6,160,000 1,263,858 2032-2036 4,210,000 473,881 2037-2040 3,230,000 150,800 Totals 18,925,000 $ 4,514,944 $ Business-Type Activities Revenue Bonds: Revenue bonds are the obligations of specific funds and are generally payable solely from the revenues of the respective funds. Sewer Enterprise Fund: The City has issued the following revenue bonds in the Sewer Fund: Series June 30, 2021 Balance Maturity Fiscal Year Purpose Sewer Revenue 2014B 2,305,000 $ 2023 Capital Improvements The City has pledged future sewer customer revenues, net of specified operating expenses, to repay the revenue bonds in the table above. The bonds are payable solely from the sewer -- 110 of 253 -- 88 customer net revenues. Annual principal and interest payments on the bonds are expected to require less than 80% of net revenues. Total principal and interest remaining to be paid on the bonds is $2,420,250. Principal and interest paid for the current year and total customer net revenues were $1,235,625 and $18,439,724, respectively. Stormwater Management Utility Enterprise Fund: The City has issued the following revenue bonds in the Storm Water Utility Enterprise Fund: Series June 30, 2021 Balance Maturity Fiscal Year Purpose Series 2016C 6,120,000 $ 2031 Refund & Capital Improvements Series 2016D 6,550,000 2030 Refund Series 2018C 39,905,000 2038 Capital Improvements Series 2020F 21,380,000 2040 Capital Improvements The City has pledged future sewer customer revenues, net of specified operating expenses, to repay the revenue bonds in the table above. The bonds are payable solely from the stormwater utility customer net revenues. Annual principal and interest payments on the bonds are expected to require less than 80% of net revenues. Total principal and interest remaining to be paid on the bonds is $97,494,320. Principal and interest paid for the current year and total customer net revenues were $7,131,821 and $16,607,283, respectively. Future principal and interest payments on the Enterprise Funds Revenue Bonds as of June 30, 2021 is summarized as follows: Revenue Bonds YEAR PRINCIPAL INTEREST 2022 6,020,000 $ 2,729,925 $ 2023 6,240,000 2,428,925 2024 3,870,000 2,146,300 2025 3,980,000 1,952,800 2026 4,085,000 1,775,000 2027-2031 21,385,000 6,316,188 2032-2036 19,225,000 3,294,838 2037-2040 11,455,000 590,344 Totals 76,260,000 $ 21,234,320 $ Business-Type Activities Net position of certain enterprise funds of $9,254,367 are restricted for debt service and the payment of certain liabilities pursuant to the requirements of the revenue bond ordinances. Section 108 Loans Payable: On November 15, 2007, the City closed a $17,500,000 Section 108 loan to make a loan for the benefit of River Point West LLC, for the purpose of financing the acquisition and clearance of properties in the River Point West area for sale and subsequent redevelopment, and the construction of supporting public infrastructure improvements to serve the developed properties. On March 28, 2019, the loan was refinanced at the then -- 111 of 253 -- 89 outstanding principal balance of $8,326,000. The loan was refinanced to reduce the average interest rate from 5.220% to 2.696%. The balance of the loan as of June 30, 2021, is $6,852,000 and is payable through fiscal year 2028. The loan is not a general obligation of the City. The principal and interest is payable solely from the tax increment revenues of the Metro Center Urban Renewal Area of the City. Tax increment revenues are projected to produce 100% of the debt service requirements over the life of the bonds. Total principal and interest paid in the current year and TIF revenues were $953,515 and $33,114,406, respectively. Notes Payable, Governmental Activities: Two new notes payable were created in fiscal year 2021, each covering the purchase of two Nissan Leaf vehicles, and each in the amount of $55,777. The balances of the two notes payable at June 30, 2021 were $23,659 and $ 37,969. One lease is scheduled to mature in fiscal year 2022 and the other in fiscal year 2023. Also included in notes payable are leases held by Wells Fargo known as Supplement WF3 and Supplement WF4 with outstanding balances of $139,199 and $365,599, respectively. The total outstanding balance of these notes payable is $566,426 and they are payable through fiscal year 2024. The principal and interest on the Wells Fargo leases is payable from the debt service levy and the principal and interest on the Nissan Leaf leases is paid from the Local Option Sales Tax fund. Total principal and interest remaining to be paid on the notes payable is $620,101. Principal and interest paid in the current year and the debt service levy were $442,708 and $29,821,844 respectively. Future principal and interest payments on the Section 108 Loans Payable and Notes Payable accounted for in the Governmental Activities are summarized as follows: FISCAL CDBG SECTION 108 LOANS YEAR PRINCIPAL INTEREST PRINCIPAL INTEREST 2022 804,000 $ 175,519 $ 312,010 $ 28,377 $ 2023 852,000 154,337 162,373 15,888 2024 903,000 131,667 92,043 9,411 2025 953,000 107,134 — — 2026 1,008,000 80,621 — — 2027-2028 2,332,000 69,659 — — Totals 6,852,000 $ 718,937 $ 566,426 $ 53,676 $ NOTES PAYABLE GOVERNMENTAL ACTIVITIES Direct placement debt, Governmental Activities: The City’s outstanding notes from direct borrowing and placements related to governmental activities of $4,000,000 IFA bonds. The bonds are for the construction of a full-service convention center hotel and meeting space. The balance of the note payable is $2,703,000 and is payable through 2024. The principal and interest are payable from sales tax receipts collected within the district. Annual principal and interest on the bonds are expected to require 100% of the revenue. Total principal and interest remaining to be paid on the notes payable is $2,931,840. Principal and interest paid for the current year was $874,600. -- 112 of 253 -- 90 Future principal and interest payments on the Governmental Direct borrowings as of June 30, 2021 is summarized as follows: Notes from Direct Borrowings and Direct Payments YEAR PRINCIPAL INTEREST 2022 774,000 $ 108,120 $ 2023 840,000 77,160 2024 1,089,000 43,560 Totals 2,703,000 $ 228,840 $ Governmental Activities Direct Placement Debt, Business-type Activities: The City borrowed money through the State Revolving Loan fund to partially fund the Lower Oak Park Sewer Separation, the Near West Side Sewer Separation and Yeader Creek Sewer Separation, and the Riverbend Sewer Separation projects. The City has issued $19,250,000 of SRF loans to help complete the Near West Side Sewer Separation and Yeader Creek Sewer Separation projects, has issued $13,360,000 of SRF loans to complete the Lower Oak Park Sewer Separation project, has issued $20,000,000 of SRF loans to complete the Riverbend Sewer Separation project, has issued $6,247,000 of SRF loans to complete the Near West Side Sewer Separation Supplemental project, and $15,000,000 of SRF loans to complete the West Ingersoll Sewer Separation project. At June 30, 2021, the City has drawn all $19,250,000 of the Near West Side Sewer Separation loan funds, all $13,360,000 of the Lower Oak Park Sewer Separation loan funds, $11,000,000 of the Riverbend Sewer Separation project, $4,398,356 of the Near West Side Sewer Separation Supplemental project, and $1,329,848 of the West Ingersoll Sewer Separation project The City has the ability to draw up to an additional $9,000,000 as work is completed on the Riverbend Sewer Separation project, up to an additional $1,848,644 as work is completed on the Near West Side Sewer Separation Supplemental project, and up to an additional $13,670,122 as work is completed on the West Ingersoll Sewer Separation project. All of these projects also have a Stormwater component to the work, and as such, the City Council has directed that the Sanitary Sewer fund and Stormwater fund will each be responsible for 50% of the debt accumulated, except in the cases of the Yeader Creek Sewer Separation project and the West Ingersoll Sewer Separation project which will be the sole responsibility of the Sanitary Sewer fund. The principal balance outstanding at June 30, 2021, is $9,558,000 in the Sanitary Sewer fund for the Near West Side Sewer Separation project and Yeader Creek Sewer Separation projects, $6,096,000 in the Sanitary Sewer fund for the Lower Oak Park Sewer Separation project, $5,500,000 in the Sanitary Sewer fund for the Riverbend Sewer Separation project, $2,199,175 in the Sanitary Sewer fund for the Near West Side Sewer Separation Supplemental project, and $1,329,848 in the Sanitary Sewer fund for the West Ingersoll Sewer Separation project, $8,869,000 in the Stormwater fund for the Near West Side Sewer Separation project, $6,096,000 in the Stormwater fund for the Lower Oak Park Sewer Separation project, $5,500,000 for the Riverbend Sewer Separation project, and $2,199,181 in the Stormwater fund for the Near West Side Sewer Separation Supplemental project. -- 113 of 253 -- 91 Notes from Direct Borrowings and Direct Payments YEAR PRINCIPAL INTEREST 2022 2,635,000 $ 696,810 $ 2023 3,291,000 658,100 2024 3,345,000 606,449 2025 2,832,848 553,915 2026 2,789,000 511,783 2027-2031 14,555,000 1,930,177 2032-2036 11,358,356 892,921 2037-2038 6,541,000 221,040 Totals 47,347,204 $ 6,071,195 $ Business-Type Activities Capital Lease, Business-type Activities: The City entered into a Capital Lease for the building and purchase of a 543-vehicle capacity parking garage located at 402 E 2nd Street. The revenues generated by the parking system have been pledged to pay the debt service. Total principal and interest remaining to be paid on the lease purchase is $33,283,193. Interest paid for the current year was $2,080,199. Future principal and interest payments on the Capital Lease Purchase agreement as of June 30, 2021 are summarized as follows: Business-Type Activities Parking Ramp Lease Purchase YEAR PRINCIPAL INTEREST 2022 1,192,515 $ 887,684 $ 2023 969,339 1,110,861 2024 1,022,652 1,057,547 2025 1,078,898 1,001,301 2026 1,138,238 941,962 2027-2031 6,132,522 4,268,476 2032-2036 7,920,751 2,480,248 2037 1,935,069 145,130 Totals 21,389,984 $ 11,893,209 $ The City has an associated capital asset for the parking ramp obtained via the Capital Lease Purchase within the Parking Fund. As of June 30, 2021, the net book value of the leased asset is $20,478,824. -- 114 of 253 -- 92 Discretely presented component units Long-Term Debt A summary of the Authority’s long-term debt for the year ended December 31, 2020, is as follows: Authority Due to Primary Direct Bank Revenue Bonds Government Debt Total Balance December 31, 2019 10,945,000 $ 23,415,000 $ — $ 34,360,000 $ Issuances — — 22,520,000 22,520,000 Retirements (995,000) (23,415,000) — (24,410,000) Balance December 31, 2020 9,950,000 — 22,520,000 32,470,000 Less: Current portion 1,045,000 — — 1,045,000 Non-current portion 8,905,000 $ — $ 22,520,000 $ 31,425,000 $ A. The Authority had a due to primary government (the City of Des Moines, Iowa) related to the Aviation System Revenue Bonds, Series 2010 A, B, C, and D which were assigned to the Authority upon its creation. On July 10, 2020, the Authority called the remaining Series 2010 bonds and issued Series 2020 bonds through a direct placement with West Bank in the amount of $22,520,000. This direct bank debt is an interest only two-year note with a variable interest rate. B. On February 22, 2012, the Authority issued $10,945,000 of Revenue Refunding Capital Loan Notes (Series 2012). The capital loan notes are special obligations payable solely from and secured by a pledge of the net revenues of the Airport, subject to the prior lien on the net revenues of the Airport Revenue Capital Loan Notes. Principal is payable annually with interest paid semi-annually on June 1st and December 1st with an interest rate of 5%. Total principal and interest remaining to be paid on the bonds is $12,066,500. There were interest payments of $547,250 made on the Series 2012 bonds during the twelve months ended December 31, 2020 and a balance due totaling $9,950,000. C. As of December 31, 2020, the Authority reported $3,877,846 as restricted net position for debt service, consisting of $3,455,669 in revenue bond reserve cash for all revenue bonds and $422,177 for current debt service. $3,524,572 is restricted for the operations and maintenance fund reserve requirement. Annual principal and interest payments on all revenue bonds and capital loan notes are expected to require roughly 34% of the Authority’s net revenues. -- 115 of 253 -- 93 As of December 31, 2020, the Authority’s long-term debt matures as follows: Principal Interest Principal Interest 2021 1,045,000 $ 471,375 $ — $ 416,620 $ 2022 1,095,000 417,875 22,520,000 208,310 2023 1,145,000 361,875 — — 2024 1,205,000 303,125 — — 2025 1,270,000 241,250 — — 2026-2028 4,190,000 321,000 — — Total 9,950,000 $ 2,116,500 $ 22,520,000 $ 624,930 $ Airport Revenue Bonds Airport Direct Bank Debt Accrued Employee Benefits Future benefits payable are recorded for the Authority’s accrued employee benefits and accrued post-retirement benefits obligations. Below is a calculation of the accrued employee benefits for all Authority employees as of December 31, 2020: Balance December 31, 2019 989,736 $ Additions 340,554 Payments (420,518) Balance December 31, 2020 909,772 Less: current portion 67,516 Non-current portion 842,256 $ 10. Revenue Bond Resolution Requirements The revenue bond resolutions contain significant limitations and restrictions on annual debt service requirements, require minimum amounts to be maintained in various restricted accounts to provide for payment of principal and interest, and require minimum revenue bond coverage. In the Sewer System Fund, $1,998,320 of net position is restricted for bond reserves. In the Stormwater Utility Fund, $7,256,047 of net position is restricted for bond reserves. 11. Conduit Debt From time to time, the City has issued industrial revenue bonds on behalf of private sector and nonprofit entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property and revenues of those entities, and are payable solely from the resources of those entities. The City is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. -- 116 of 253 -- 94 As of June 30, 2021, there were three series of industrial revenue bonds outstanding with an aggregate principal amount payable of $7,785,000. 12. Debt Extinguishment On March 9, 2021, the City issued $34,760,000 in General Obligation Bonds (Series 2021A), with an average interest rate of 3.24% to refund $28,845,000 of Series 2013A General Obligation Bonds with an average interest rate of 4.35% on June 1, 2021 and to refund $10,060,000 of Series 2013B General Obligation Refunding Bonds with an average interest rate of 4.00% on June 1, 2021. The refunding was done to reduce aggregate debt service payments by $9,953,959 over the next twelve years and obtain an economic gain (difference between the present values of the old debt and new debt service payments) of $9,421,536. 13. Inter-fund Receivables and Payables The individual fund inter-fund receivable and payable balances include both Due to/from Other Funds and Advances to/from Other Funds. These balances at June 30, 2021 were: INTERFUND RECEIVABLE INTERFUND PAYABLE General 6,344,417 $ — $ Capital Projects — 322,924 Other Governmental Funds 112,558 3,220,728 Parking, Enterprise — 933,577 Municipal Housing Agency, Enterprise — 119,830 Internal Service Funds — 1,859,916 Total 6,456,975 $ 6,456,975 $ ADVANCES ADVANCES RECEIVABLE PAYABLE General 3,592,762 $ — $ Parking, enterprise — 792,139 Other Enterprise Funds — 2,800,623 Total 3,592,762 $ 3,592,762 $ Inter-fund balances resulted from the time lag between the dates that (1) inter-fund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. The advances were to finance the construction of enterprise assets. The inter-fund receivables and payables are scheduled to be collected in the subsequent year whereas the inter-fund advances are not. -- 117 of 253 -- 95 14. Fund Transfer Reconciliation The following is a schedule of transfers as included in the basic financial statements of the City: TRANSFERS TRANSFERS IN OUT General Fund 49,992,116 $ 6,667,609 $ Debt Service 37,426,797 135,352,972 Tax Increment — 20,736,148 Benefit Tax Accounts — 25,479,671 Franchise Fee Court Settlement 626,057 — Local Option Sales Tax 5,818,904 26,102,560 Capital Projects 114,558,849 1,925,601 Other Governmental Funds 49,896,256 26,951,840 Parking Facilities System 2,250,000 — Sewer System 5,066,458 3,360,102 Stormwater Utility 2,738,703 8,249,192 Other Enterprise — 13,660,000 Internal Service 111,555 — Total 268,485,695 $ 268,485,695 $ 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 receipts restricted to debt service from the funds collecting the receipts to the Debt Service Fund as debt service payments become due, and (3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 15. Other Postemployment Benefits The City provides access to postretirement medical benefits to all retirees as required by Chapter 509A.13 of the Code of Iowa. Although retirees are required to pay 102% of the premium rate, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, requires that employers recognize the Implicit Rate Subsidy that exists in postretirement medical plans provided by governmental employers. The Implicit Rate Subsidy refers to the concept that retirees under age 65 (and not eligible for Medicare) generate higher claims on average than active participants. When a medical plan is self-insured or fully insured through a third-party administrator, a premium is usually determined by analyzing the claims of the entire population in the plan and adjusting for administrative costs. The resulting premium is called a blended premium because it blends the claims of active and retired participants. Since individuals generally have more and higher claims as they get older, the blended premium paid for retirees is lower than their expected claims. Another way of considering this is that if the retirees were removed from the plan, the -- 118 of 253 -- 96 premium for the active group would be lower; therefore, the retirees’ premiums are being subsidized by the active group. Since the employer generally pays a large portion or all of the premiums for the active group, this subsidy creates a liability for the employer. The difference between the expected claims for the retiree group and the blended premium is called the Implicit Rate Subsidy. Plan description: The City sponsors an agent multi-employer health care plan, consisting of two employers, that provides medical, prescription drugs and dental benefits to all active and retired employees and their eligible dependents. Employees who have attained age 55 and retire from active employment are eligible for retiree benefits. Eligible retirees and their dependents receive medical and prescription coverage through a fully-insured plan with Wellmark BCBS and dental benefits through a self-insured plan. These are the same plans that are available for active employees. Funding policy: The City of Des Moines establishes and amends contribution requirements. The current funding policy of the City is to pay health insurance premiums as they occur. This arrangement does not qualify as other postemployment benefits (OPEB) plan assets under Governmental Accounting Standards Board (GASB) Statement No. 75 for current GASB reporting. Contributions of the full premium are required for both retiree and dependent coverage. The contribution for each insured group is assumed to be the expected, composite per capita cost for the group. This composite is then disaggregated into an age-specific starting cost curve based on the average age of the group and for assumptions for age-based morbidity. The average age of the pre-65 retiree group is 61. Retiree expenses are then offset by monthly contributions. The City does not issue a publicly available financial report for the Plan. As of June 30, 2021, the following employees were utilizing benefits described herein: Employees utilizing City's health insurance: Active 1,601 Retired (inactive currently receiving benefits) 182 Total 1,783 The City’s total OPEB liability as of June 30, 2021 was $22,792,323. This balance was determined by an actuarial valuation as of that date utilizing the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Rate of inflation 2.60 percent Salary increases 3.25 percent, including inflation Discount rate 2.19 percent Health Care Trend Rates 7.50 percent in fiscal 2021, decreasing to 4.50 percent by fiscal 2028 The discount rate was based on the yield rate for a 20-year tax-exempt general obligation municipal bond with an average rating of AA/Aa or higher. -- 119 of 253 -- 97 Mortality rates were based on the following tables depending on the covered individual’s classification: • IPERS Employees and Retirees: SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using Scale MP-2019. • MFPRSI Employees and Retirees: SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully generational using Scale MP-2019. • Surviving Spouses: SOA Pub-2010 Contingent Survivor Headcount Weighted Mortality Table fully generational using Scale MP-2019. Changes in the Total OPEB Liability Total OPEB Liability Balance as of June 30, 2020 22,869,853 $ Service cost 1,524,709 Interest 632,453 Changes in assumptions 645,877 Difference between expected and actual experience (1,636,097) Benefit payments (1,244,470) Balance as of June 30, 2021 22,792,325 $ Sensitivity of the total OPEB liability to changes in the discount rate: The following presents the total OPEB liability of the City, as well as what the City’s approximate total OPEB liability would be if it were calculated using a discount rate that is 1% lower (1.19%) or 1% higher (3.19%) than the current discount rate: 1% Decrease Discount Rate 1% Increase 1.19% 2.19% 3.19% Total OPEB Liability 24,192,907 $ 22,792,325 $ 21,429,423 $ Sensitivity of the total OPEB liability to changes in the health care cost trend rate: The following presents the total OPEB liability of the City, as well as what the City’s approximate total OPEB liability would be if it were calculated using a health care cost trend rate that is 1% lower (6.50% decreasing to 3.50%) or 1% higher (8.50% decreasing to 5.50%) than the current health care cost trend rate: Health Care 1% Decrease Cost Trend Rate 1% Increase (6.50% Decreasing (7.50% Decreasing (8.50% Decreasing to 3.50%) to 4.50%) to 5.50%) Total OPEB Liability 20,205,559 $ 22,792,325 $ 25,830,638 $ -- 120 of 253 -- 98 OPEB Expense and deferred outflows of resources and deferred inflows of resources related to OPEB: For the year ended June 30, 2021, the City recognized OPEB expense of $1,869,356. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual experience 1,226,521 $ (3,146,194) $ Changes in assumptions 1,240,560 (1,291,481) Balance as of June 30, 2021 2,467,081 $ (4,437,675) $ Amounts reported as the deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense over the average future service to retirement of plan participants as follows: Fiscal Year Ended June 30, OPEB Expense 2022 (287,806) $ 2023 (287,806) 2024 (287,806) 2025 (287,806) 2026 (287,806) Thereafter (531,564) Total (1,970,594) $ 16. Commitments and Contingent Liabilities A. Grants The City has received financial assistance from numerous federal and state agencies in the form of grants and entitlements. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements, and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, liabilities resulting from disallowed claims, if any, will not have a material effect on the City's financial position as of June 30, 2021. B. Litigation The City Attorney reported that as of June 30, 2021, various claims and lawsuits were on file against the City, and estimated that the potential settlements against the City not covered by insurance would not materially affect the financial position of the City. The City has authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. -- 121 of 253 -- 99 C. Self-insurance The City's property, casualty, and workers compensation liabilities for all funds are covered by a combination of self-insurance, or self-insured retention, and commercial insurance. Property insurance for the City is provided by Alliant Insurance Services, Inc. with a loss limit of $500,000,000 and loss of business income and extra expense coverage of up to $100,000,000, with various levels of deductibles. Excess liability coverage is maintained through Allied World in the amount of $10,000,000 per occurrence, with a $2,000,000 self-insured retention. Workers compensation insurance is maintained for all employees through Safety National Casualty Corporation at statutory limits, with a $1,250,000 self-insured retention. Additionally, the Municipal Housing Agency purchases first dollar workers compensation coverage. For certain enterprise fund operations (Stormwater, Solid Waste, Sanitary, and Municipal Housing), automobile liability insurance is maintained through Travelers Insurance Company with a per occurrence limit of $2,000,000 and a $5,000 deductible. This policy is designed to cover the excess liability policy’s $2,000,000 self-insured retention. The City purchases a blanket property insurance policy with a $100,000 per occurrence deductible. The Municipal Housing Agency also purchases its own blanket property insurance policy with a $5,000 deductible per occurrence. Chapter 384, Revision I, Subsection 4 of the Code of Iowa provides that a city may establish a Debt Service Fund, and shall certify taxes to be levied for the Debt Service Fund in the amount necessary to pay judgments against the city, except those authorized by state law to be paid from other funds. As a result, the City self-insures the first $2,000,000 per occurrence of liability on its General Fund operations, and is able to provide this coverage through its taxing process. The City's tort liability claims and related administration expenses are accounted for in the appropriate fund related to the claim. Claims and related administration expenses are accounted for in the General Fund. Health benefit insurance and related administration expenses are accounted for in an internal service fund. The current portion of workers compensation claims is recorded in the same fund as the recipient's payroll was recorded. Within the past ten years, there has only been one worker’s compensation claim which exceeded the City’s $1,250,000 self-insured coverage. Within that same period, there have been no claims which exceeded the City’s $2,000,000 self-insured liability policy. Liabilities are reported when it is probable that a loss will occur, and the amount of the loss can be reasonably estimated. Claim liabilities are calculated considering recent claim settlement trends, including frequency and amount of payouts and other economic and social factors. -- 122 of 253 -- 100 The following is a summary of estimated claims liability for the year ended June 30, 2021 (with comparative amounts for 2020): 2021 2020 Balance at beginning of year 10,189,496 $ 12,135,571 $ Current year claims and changes in estimate 7,712,273 2,152,465 Claim payments (4,601,675) (4,098,540) Balance at end of year 13,300,094 $ 10,189,496 $ 2021 2020 Balance at beginning of year 896,500 $ 1,267,402 $ Current year claims and changes in estimate 3,970,479 267,850 Claim payments (135,079) (638,752) Balance at end of year 4,731,900 $ 896,500 $ WORKERS COMPENSATION LEGAL SETTLEMENTS The City became self-insured for medical claims and prescription coverage in fiscal year 2012. All claim handling procedures are performed by an independent claims administrator. Dental insurance is self-funded and administered by Delta Dental of Iowa. Liabilities are recognized when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. The aggregate liability for claims for the year ended June 30, 2021 (with comparative amounts for 2020) is as follows: 2021 2020 Claims payable, beginning of the year 2,052,000 $ 1,873,000 $ Current year claims and changes in estimate 27,058,318 26,500,307 Claim payments (26,921,318) (26,321,307) Claims payable, end of the year 2,189,000 $ 2,052,000 $ Workers compensation and health insurance claims attributed to governmental and internal service funds are recorded in the Governmental Activities in the Accrued Employee Benefits line item. Legal settlements are also included in the Governmental Activities, in the line item entitled “Other liabilities for claims and judgments.” D. Construction Contracts The City has recognized as a liability only that portion of construction contracts representing construction completed, but not yet paid for, through June 30, 2021. The City has additional commitments for signed construction contracts of approximately $129.04 million as of June 30, 2021. -- 123 of 253 -- 101 E. Arbitrage Arbitrage rules apply to tax-exempt debt issued after August 31, 1986. The rules require that earnings from the investment of tax-exempt bond proceeds which exceed the yield on the bonds must be remitted to the federal government every five years. The City entered into an agreement with an outside consulting firm to assist City personnel in reviewing arbitrage rebate calculations for the above bond issues. Those bond issues that have been reviewed show that no arbitrage rebate is owed. For the bond issues that have not yet been reviewed, management believes that the rebate amounts, if any, will not be material to the financial statements. F. Developer Commitments In order to encourage development within designated TIF districts, the City Council has approved developer grants to 122 different projects. The grants are to be paid only after certain conditions have been met by each project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage of future property taxes generated by the property. Currently, it is estimated that outstanding commitments totaling about $378.97 million exist, of which $23.86 million may be eligible to be paid in the next fiscal year. These items are expensed in the period in which they are paid. No liability is recognized due to the fact that the agreements are conditional, and the payments are to be funded by future property taxes receivable on the project and are subject to the City Council’s right of non-appropriation each fiscal year. See further discussion of the related tax abatements of these agreements in Note 17. G. Significant Encumbrances The City had outstanding purchase orders (excluding construction contracts disclosed in Section D above) at June 30, 2021 that represented agreements to purchase goods and services. The balances by fund were as follows: General Fund 1,191,120 $ Capital Projects 3,340,627 Other Governmental Funds 4,673,182 Internal Service Funds 3,578,926 Parking 4,268 Sewer System 13,021 Stormwater Utility 45,959 12,847,103 $ -- 124 of 253 -- 102 H. Coronavirus Outbreak On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a "Public Health Emergency of International Concern" and on March 11, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and actions taken to mitigate the spread of it have had, and are expected to continue to have, an adverse impact on the economies and financial markets of many countries and their political subdivision. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to amongst other provisions, provide emergency assistance for individuals, families and businesses affected by the coronavirus pandemic. It is unknown how long the adverse conditions associated with the coronavirus will last and what the complete financial effect will be to the City. The extent to which COVID-19 may affect the City’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information, which may emerge concerning the severity of COVID-19 and actions taken to contain COVID-19 or its impact, among others. Additionally, it is reasonably possible that estimates made in the financial statements have been, or will be, materially and adversely impacted in the near term as a result of these conditions. 17. Tax Abatements Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The City provides property tax abatements for urban renewal and economic development projects with tax increment financing (TIF) as provided for in Chapters 15A and 403 of the Code of Iowa. To be eligible for an abatement under one of these types of projects, the developer has to enter into an agreement. After the developer meets the terms of the agreement, the City is required to rebate a portion of the property tax paid by the developer, to pay the developer an economic development grant or to pay the developer a predetermined dollar amount. These payments are funded by the incremental property tax generated from the increased property value (the tax increment) created by the improvements made to the property. Generally, the agreements require the developer to improve a given property’s value up to an agreed upon dollar amount. The improvements may be through new construction or renovations, depending upon the specifics of the agreement and purpose of the project. Additional requirements the City commonly imposes upon the developer include creating -- 125 of 253 -- 103 and sustaining a specified number of jobs in the community, building a specified number of residential units within a given affordability threshold, or developing a certain square footage of retail space. As these agreements are intended to achieve a desired goal of the City, additional metrics may be worked into them on a case-by-case basis. Under TIF, for the year ended June 30, 2021, the City abated $6,202,225 of property tax which would have otherwise flowed to its General Fund and a further $12,837,952 which would have flowed to other local taxing authorities. 18. New Pronouncements As of June 30, 2021, the GASB has issued several statements not yet implemented by the City. The statements which might impact the City are as follows: GASB Statement No. 87, Leases, issued June 2017, will be effective for the City beginning with its fiscal year ending June 30, 2022, with earlier adoption encouraged. Statement No. 87 establishes a single approach to accounting for and reporting leases by state and local governments. Under this statement, a government entity that is a lessee must recognize (1) a lease liability and (2) an intangible asset representing the lessee’s right to use the leased asset. In addition, the City must report the (1) amortization expense for using the lease asset over the shorter of the term of the lease or the useful life of the underlying asset, (2) interest expense on the lease liability and (3) note disclosures about the lease. The Statement provides exceptions from the single-approach for short-term leases, financial purchases, leases of assets that are investments, and certain regulated leases. This statement also addresses accounting for lease terminations and modifications, sale-leaseback transactions, non-lease components embedded in lease contracts (such as service agreements), and leases with related parties. GASB Statement No. 91, Conduit Debt Obligations, issued May 2019, will be effective for the City beginning with its fiscal year ending June 30, 2023. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers, and eliminate diversity in practice associated with (1) commitments extended by users, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligation; and improving required noted disclosures. GASB Statement No. 96, Subscription-Based Information Technology Arrangements, issued May 2020, will be effective for the City beginning with its fiscal year ending June 30, 2023. The Statement provides guidance on the accounting and financial reporting for subscription- based information technology arrangements (SBITAs) for government end users. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implantation costs of a SBITA; and (4) requires note disclosure regarding a SBITA. -- 126 of 253 -- 104 GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, issued June 2020, will be effective for the City beginning with its fiscal year ending June 30, 2022 except for the requirements in paragraphs 4 and 5 that are effective upon issuance. The primary objective of Statement No. 97 are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The City’s management has determined the implementation of GASB Statement No. 87 may have a significant impact on the City’s Financial Statements but has not yet determined the effect of Statement Nos. 91, 96 or 97. 19. Subsequent Events On September 30, 2021, the City issued $89,125,000 of General Obligation Bonds, Series 2021F, which will be used for various essential corporate purposes, essential corporate urban renewal purposes and general corporate purposes. Principal payments on the General Obligation Bonds begin on June 1, 2022 and continue annually until maturity on June 1, 2041. Interest rates on this issue range from 2.0% to 5.0%. On September 30, 2021, the City issued $5,050,000 of Taxable General Obligation Bonds, Series 2021G, which will be used to pay costs of the demolition of abandoned, dilapidated or dangerous buildings, structures or properties or the abatement of a nuisance; and the establishment and funding of programs to provide for or assist in providing for the acquisition of demolition of housing, as part of a municipal housing project. Principal payments on the General Obligation Bonds begin on June 1, 2022 and continue annually until maturity on June 1, 2026. Interest rates on this issue range from 0.15% to 0.85%. On September 30, 2021, the City issued $26,505,000 of Stormwater Management Utility Revenue Bonds, Series 2021H, which will be used to provide funds to pay costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing, and equipping all or part of the Stormwater Management Utility, including Closes Creek watershed improvements, flood mitigation and protection system improvements, levee maintenance and improvements, and city-wide stormwater projects. Principal payments on the General Obligation Bonds begin on June 1, 2022 and continue annually until maturity on June 1, 2041. Interest rates on this issue range from 1.50% to 5.00%. -- 127 of 253 -- 105 20. Beginning Fund Balances Restated With the adoption of GASB Statement No. 84, Fiduciary Activities, the City reassessed its custodial funds. This resulted in the inclusion of former agency funds in the General Fund and Other Governmental Funds. This resulted in increases to the beginning fund balances of the General Fund of $1,142,441 and the Other Governmental Funds, included in the aggregate remaining funds opinion unit, of $257,955. Additionally, the City reports two custodial funds, the Water Reclamation Authority and Invest DSM. The opening net position of the fiduciary funds, included within the aggregate remaining funds opinion unit, have been restated by $301,154,164. See below table for original balance, ending balance and change by unit: Ending Balance June 30, 2020 As Restated Restatement General Fund 45,391,297 $ 46,533,738 $ 1,142,441 $ Other Governmental Funds 23,909,186 24,167,141 257,955 Fiduciary Funds — 301,154,164 301,154,164 -- 128 of 253 -- 21. Fund Balances GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions establishes criteria for reclassifying fund balances into specifically defined classifications and clarified definitions for governmental fund types. The details for the City of Des Moines' fund balances are the following: BENEFIT DEBT TAX TAX Fund Balances: GENERAL SERVICE INCREMENT ACCOUNTS Nonspendable: Advances 3,592,762 $ --- $ --- $ --- $ Inventories --- --- --- --- Prepaids 948,667 --- --- --- Corpus for permanent funds --- --- --- --- Total nonspendable 4,541,429 --- --- --- Restricted: Federal, state, and local grants --- --- --- --- Road Use --- --- --- --- Maintenance on public land, cemetery --- --- --- --- Debt Service --- 14,775,110 --- --- Capital improvements and maintenance --- --- --- --- Employee benefits 864,003 --- --- 757,378 Police department --- --- --- --- Fire department --- --- --- --- SSMID districts --- --- --- --- Community projects --- --- --- --- Library gift fund --- --- --- --- Sales Tax --- --- --- --- Tort 568,992 --- --- --- Economic development --- --- 17,123,375 --- Human Rights --- --- --- --- Scholarship --- --- --- --- Total restricted 1,432,995 14,775,110 17,123,375 757,378 Committed Capital improvements and maintenance --- --- --- --- Maintenance on public land, cemetery --- --- --- --- Litigation 1,000,000 --- --- --- Economic development --- --- --- --- Community projects --- --- --- --- Total committed 1,000,000 --- --- --- Unassigned 53,371,093 --- --- --- Total fund balances 60,345,517 $ 14,775,110 $ 17,123,375 $ 757,378 $ 106 -- 129 of 253 -- LOCAL OTHER TOTAL OPTION CAPITAL GOVERNMENTAL GOVERNMENTAL SALES TAX PROJECTS FUNDS FUNDS --- $ --- $ --- $ 3,592,762 $ --- --- 72,600 72,600 --- 162,264 124,648 1,235,579 --- --- 4,114,621 4,114,621 --- 162,264 4,311,869 9,015,562 --- --- 26,716 26,716 --- --- 12,457,076 12,457,076 --- --- 1,080,500 1,080,500 --- --- --- 14,775,110 --- 894,342 2,368,359 3,262,701 --- --- 1,231,374 2,852,755 --- --- 445,983 445,983 --- --- 35,681 35,681 --- --- 531,275 531,275 --- --- 41,058 41,058 --- --- 354,439 354,439 21,290,045 --- --- 21,290,045 --- --- --- 568,992 --- --- 165,678 17,289,053 --- --- 3,479 3,479 --- --- 948 948 21,290,045 894,342 18,742,566 75,015,811 --- 84,748,128 --- 84,748,128 --- --- 168,449 168,449 --- --- --- 1,000,000 --- --- 6,268,626 6,268,626 --- --- 32,359 32,359 --- 84,748,128 6,469,434 92,217,562 --- (358,397) (1,462,156) 51,550,540 21,290,045 $ 85,446,337 $ 28,061,713 $ 227,799,475 $ 107 -- 130 of 253 -- CITY OF -- 131 of 253 -- REQUIRED SUPPLEMENTARY INFORMATION -- 132 of 253 -- CITY OF -- 133 of 253 -- CITY OF DES MOINES, IOWA BUDGETARY COMPARISON SCHEDULE BUDGETARY BASIS -- ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 GOVERNMENTAL ENTERPRISE FUND TYPES FUND TYPES BASIS ACTUAL BASIS ACTUAL FINAL TO AMOUNTS AMOUNTS NET ORIGINAL FINAL ACTUAL Revenue: Taxes 222,972,083 $ --- $ 222,972,083 $ 231,151,462 $ 221,165,778 $ 1,806,305 $ Franchise fees 14,398,834 --- 14,398,834 16,710,000 13,010,000 1,388,834 Licenses and permits 4,002,772 --- 4,002,772 3,968,067 3,820,993 181,779 Fines and forfeitures 6,868,173 --- 6,868,173 5,748,338 6,016,538 851,635 Charges for sales and services 21,177,358 106,480,419 127,657,777 117,197,701 115,884,591 11,773,186 Use of money and property 3,055,516 1,302,845 4,358,361 4,039,855 3,906,765 451,596 Miscellaneous 22,354,985 196,968 22,551,953 25,652,164 27,672,081 (5,120,128) Intergovernmental 75,075,696 21,173,380 96,249,076 94,896,714 105,044,132 (8,795,056) Total revenue 369,905,417 129,153,612 499,059,029 499,364,301 496,520,878 2,538,151 Expenditure: Current: Public safety 122,151,073 --- 122,151,073 127,761,862 128,443,102 6,292,029 Public works 31,645,701 --- 31,645,701 32,444,065 31,081,710 (563,991) Health and social services 10,708,268 --- 10,708,268 16,383,274 18,245,786 7,537,518 Culture and recreation 22,001,347 --- 22,001,347 25,842,457 22,269,646 268,299 Community and economic development 35,459,524 --- 35,459,524 40,298,461 86,185,882 50,726,358 General government 36,105,533 --- 36,105,533 29,310,083 31,031,571 (5,073,962) Business-type --- 90,545,450 90,545,450 182,701,103 182,128,683 91,583,233 Capital outlay 132,646,680 39,722,625 172,369,305 130,105,397 150,693,110 (21,676,195) Debt service 102,012,534 14,303,489 116,316,023 66,273,916 104,412,275 (11,903,748) Total expenditure 492,730,660 144,571,564 637,302,224 651,120,618 754,491,765 117,189,541 Excess (deficiency) of revenue over expenditure (122,825,243) (15,417,952) (138,243,195) (151,756,317) (257,970,887) 119,727,692 Other financing sources (uses): Transfers in 258,318,979 19,998,230 278,317,209 228,760,780 309,483,427 (31,166,218) Other financing sources 169,049,462 35,346,632 204,396,094 136,528,000 228,097,574 (23,701,480) Transfers out (243,216,401) (24,758,742) (267,975,143) (228,760,780) (309,483,427) 41,508,284 Total other financing sources (uses) 184,152,040 30,586,120 214,738,160 136,528,000 228,097,574 (13,359,414) Net change in fund balances 61,326,797 15,168,168 76,494,965 (15,228,317) $ (29,873,313) $ 106,368,278 $ Fund balances, beginning of year 211,887,038 19,082,143 230,969,181 Fund balances, end of year 273,213,835 $ 34,250,311 $ 307,464,146 $ The notes to the required supplementary are an integral part of this statement. BUDGETED AMOUNTS 111 -- 134 of 253 -- CITY OF DES MOINES, IOWA BUDGETARY COMPARISON SCHEDULE -- BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 BUDGET ACCRUAL GAAP BASIS ADJUSTMENTS BASIS Revenues 369,905,417 $ 22,004,153 $ 391,909,570 $ Expenditures 492,730,660 22,648,809 515,379,469 Net (122,825,243) (644,656) (123,469,899) Other financing sources (uses) 184,152,040 --- 184,152,040 Beginning fund balances, as restated 211,887,038 (44,769,704) 167,117,334 Ending fund balances 273,213,835 $ (45,414,360) $ 227,799,475 $ ENTERPRISE FUND TYPES BUDGET ACCRUAL GAAP BASIS ADJUSTMENTS BASIS Revenues 129,153,612 $ 1,302,845 $ 127,850,767 $ Expenses 144,571,564 39,094,201 105,477,363 Net (15,417,952) 37,791,356 22,373,404 Other financing sources (uses) 30,586,120 46,236,171 (15,650,051) Beginning fund balances (2,090,723) 357,830,122 385,987,530 Ending fund balances 13,077,445 $ 441,857,649 $ 392,710,883 $ See notes to required supplementary information. GOVERNMENTAL FUND TYPES 112 -- 135 of 253 -- 113 CITY OF DES MOINES, IOWA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – BUDGETARY REPORTING June 30, 2021_________________________________________________________________________ In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and hearing by function which includes all funds except fiduciary funds and internal service funds. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon ten major classes of disbursements known as functions, not by fund or fund type. These ten functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay, business-type and non-program. The legal level of control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted disbursements, including transfers out by $184,093,794. These budget amendments are reflected in the final budgeted amounts. The primary differences between the budget basis and the basis of accounting used in the fund statements are: 1. Revenues are recorded when received in cash (budget), as opposed to when they are measurable and available (GAAP). 2. Expenditures are recorded when paid (budget), as opposed to when the obligation is incurred (GAAP). 3. Certain activities and funds of the general, special revenue, and capital projects fund types are not included in the annual operating budgets adopted by the Council. During the year ended June 30, 2021, disbursements exceeded the amounts budgeted in the public works function, general government function, capital outlay function and debt service function. -- 136 of 253 -- CITY OF -- 137 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS REQUIRED SUPPLEMENTARY INFORMATION June 30, 2021* June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB liability Service cost 1,524,709 $ 1,454,823 $ 702,378 $ 1,784,438 $ Interest 632,453 798,010 891,160 785,904 Differences between expected and 1,009,672 actual experience (1,636,097) 855,763 (2,537,829) Changes of assumptions or other (933,920) inputs 645,877 (993,390) 999,676 Benefit payments (1,244,470) (1,042,697) (1,155,130) (1,192,403) Net change in total OPEB liability (77,528) 1,072,509 (1,099,745) 1,453,691 Total OPEB liability—beginning 22,869,853 21,797,344 22,897,089 21,443,398 Total OPEB liability—ending 22,792,325 $ 22,869,853 $ 21,797,344 $ 22,897,089 $ Covered payroll 133,211,961 $ 129,018,849 $ 125,853,482 $ 121,243,537 $ Total OPEB liability as a percentage 17.11% 17.73% 17.32% 18.89% of covered payroll Notes to Required Supplementary Information: Changes of assumptions: Changes of assumptions and other inputs primarily reflects the effects of changes in the discount rate each period. The following are the discount rates used in each period: 2021 2.19% 2020 2.66% 2019 3.51% 2018 3.87% 2017 3.58% *Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. 115 -- 138 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020* June 30, 2019* June 30, 2018* City's proportion of the net pension liability 0.975698% 0.977094% 0.976427% City's proportionate share of the net pension liability 68,062,237 $ 56,960,233 $ 61,771,261 $ City's covered payroll 75,547,523 $ 74,801,432 $ 73,341,533 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 90.09% 76.15% 84.22% Plan fiduciary net position as a percentage of the total pension liability 81.87% 85.45% 82.57% *Amounts presented for each fiscal year were determined as of the above measurement date. See notes to required supplementary information Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. 116 -- 139 of 253 -- June 30, 2017* June 30, 2016* June 30, 2015* 0.947660% 0.953277% 0.961187% 62,561,805 $ 59,448,726 $ 47,487,290 $ 70,050,080 $ 68,356,528 $ 65,822,469 $ 89.31% 86.97% 72.14% 81.23% 82.21% 85.19% 117 -- 140 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF THE CITY CONTRIBUTIONS IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION Contributions in Relation to Contributions Statutorily the Statutorily Contributions City's as a Percentage Required Required Deficiency Covered of Covered Contribution Contribution (Excess) Payroll Payroll 2021 7,573,979 $ 7,573,979 $ --- $ 80,298,604 $ 9.432% 2020 7,254,857 7,254,857 --- 75,547,523 9.603% 2019 7,070,797 7,070,797 --- 74,801,432 9.453% 2018 6,559,917 6,559,917 --- 73,341,533 8.944% 2017 6,294,715 6,294,715 --- 70,050,080 8.986% 2016 6,104,238 6,104,238 --- 68,356,528 8.930% 2015 5,903,769 5,903,769 --- 65,822,469 8.969% 2014 5,782,471 5,782,471 --- 64,753,315 8.930% 2013 5,590,585 5,590,585 --- N/A N/A 2012 5,605,331 5,605,331 --- N/A N/A See notes to required supplementary information N/A - not available 118 -- 141 of 253 -- 119 CITY OF DES MOINES, IOWA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLENTARY INFORMATION IPERS PENSION LIABILTY Note 1. Changes of benefit terms Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final average salary changed from the highest three to the highest five years of covered wages. The vesting requirement changed from four years of service to seven years. The early retirement reduction increased from 3 percent per year measured from the member’s first unreduced retirement age to a 6 percent reduction for each year of retirement before age 65. In 2008, legislative action transferred four groups – emergency medical service providers, county jailers, county attorney investigators, and National Guard installation security officers – from Regular membership to the protection occupation group for future service only. The 2006 Legislature passed several provisions. One of these was the requirement that the System must be fully funded before benefits can be increased, and it must remain fully funded after the benefit change. A benefit increase may be enacted if such increase is accompanied by an increase in the contribution rate necessary to support the benefit enhancement. In addition, no transfer may be made to the Favorable Experience Dividend reserve account unless the System is fully funded and would remain so after the transfer. Benefit provisions for sheriffs and deputies were changed in the 2004 legislative session. The eligibility for unreduced retirement benefits was lowered from age 55 by one year each July 1 (beginning in 2004) until it reached age 50 on July 1, 2008. The years of service requirement remained at 22 or more. Their contribution rates were also changed to be shared 50-50 by the employee and employer instead of the previous 40-60 split. Note 2. Changes in actuarial assumptions and methods The 2017 valuation implemented the following refinements as a result of a quadrennial experience study: Decreased the inflation assumption from 3.00 percent to 2.60 percent. Decreased the assumed rate of interest on member accounts from 3.75 percent to 3.50 percent per year. The long-term rate of return assumption decreased from 7.50% to 7.00%. The wage growth and payroll growth assumption decreased from 4.00% to 3.25%. -- 142 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA REQUIRED SUPPLEMENTARY INFORMATION June 30, 2020* June 30, 2019* June 30, 2018* City's proportion of the net pention liability 18.2230% 18.4372% 18.5243% City's proportionate share of the net pension liability 145,346,816 $ 120,934,295 $ 110,294,179 $ City's covered payroll 57,411,473 $ 55,811,804 $ 53,870,249 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 253.17% 216.68% 204.74% Plan fiduciary net position as a percentage of the total pension liability 93.62% 76.47% 79.94% *Amounts presented for each fiscal year were determined as of the above measurement date. See notes to required supplementary information Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. 120 -- 143 of 253 -- June 30, 2017* June 30, 2016* June 30, 2015* 18.0072% 18.2983% 18.3048% 105,607,726 $ 119,659,747 $ 106,280,275 $ 50,736,981 $ 49,569,046 $ 46,489,038 $ 208.15% 241.40% 228.61% 81.07% 80.60% 78.20% 121 -- 144 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF THE CITY CONTRIBUTIONS MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA REQUIRED SUPPLEMENTARY INFORMATION Contributions in Relation to Contributions Statutorily the Statutorily Contributions City's as a Percentage Required Required Deficiency Covered of Covered Contribution Contribution (Excess) Payroll Payroll 2021 15,224,032 $ 15,224,032 $ --- $ 59,247,812 $ 25.696% 2020 14,232,013 14,232,013 --- 57,411,473 24.789% 2019 14,555,612 14,555,612 --- 55,811,804 26.080% 2018 13,859,111 13,859,111 --- 53,870,249 25.727% 2017 13,300,483 13,300,483 --- 50,736,981 26.215% 2016 13,871,135 13,871,135 --- 49,569,046 27.983% 2015 14,626,300 14,626,300 --- 46,489,038 31.462% 2014 13,965,577 13,965,577 --- 46,366,458 30.120% 2013 11,874,300 11,874,300 --- N/A N/A 2012 11,548,981 11,548,981 --- N/A N/A See notes to required supplementary information N/A - not available 122 -- 145 of 253 -- 123 CITY OF DES MOINES, IOWA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLENTARY INFORMATION MFPRSI PENSION LIABILTY Note 1. Changes of benefit terms There were no significant changes of benefit terms. Note 2. Changes of assumptions For the valuation as of June 30, 2017, the plan changed its estimated mortality rates to the RP 2014 Blue Collar Healthy Annuitant with males set-forward zero years, females set-forward two years and disabled set-forward three years (male only rates), with generational projection of future mortality improvement with 50% of Scale BB beginning in 2017. -- 146 of 253 -- CITY OF -- 147 of 253 -- COMBINING STATEMENTS, INDIVIDUAL FUND STATEMENTS AND SCHEDULES -- 148 of 253 -- CITY OF -- 149 of 253 -- CITY OF -- 150 of 253 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET SCHEDULE ALL GENERAL FUND ACCOUNTS June 30, 2021 GENERAL OTHER TOTALS ASSETS Cash and investments 54,219,790 $ 420,593 $ 54,640,383 $ Taxes receivable 74,630,658 --- 74,630,658 Accounts receivable 5,323,668 300 5,323,968 Accrued interest receivable 26,862 --- 26,862 Due from other funds 6,344,417 --- 6,344,417 Due from other governmental units 294,468 --- 294,468 Advance to other funds 3,592,762 --- 3,592,762 Prepaid items 948,667 --- 948,667 Total assets 145,381,292 $ 420,893 $ 145,802,185 $ LIABILITIES Accounts payable 2,666,192 $ 74 $ 2,666,266 $ Contracts payable 1,727 --- 1,727 Accrued wages payable 7,749,785 --- 7,749,785 Unearned revenue 2,031,999 --- 2,031,999 Good faith, security deposits 917,420 --- 917,420 Total liabilities 13,367,123 74 13,367,197 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 72,089,471 --- 72,089,471 Unavailable revenue - intergovernmental --- --- --- Unavailable revenue - special assessments --- --- --- Total deferred inflows of resources 72,089,471 --- 72,089,471 FUND BALANCES (DEFICITS) Nonspendable 4,541,429 --- 4,541,429 Restricted 1,432,995 --- 1,432,995 Committed 1,000,000 --- 1,000,000 Unassigned 52,950,274 420,819 53,371,093 Total fund balance 59,924,698 420,819 60,345,517 Total liabilities, deferred inflows of resources and fund balances (deficits) 145,381,292 $ 420,893 $ 145,802,185 $ 128 -- 151 of 253 -- CITY OF DES MOINES, IOWA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GENERAL FUND ACCOUNTS For the Fiscal Year Ended June 30, 2021 GENERAL OTHER TOTALS Revenues: Taxes 74,679,424 $ --- $ 74,679,424 $ Franchise fees 13,629,881 --- 13,629,881 Licenses and permits 3,905,491 --- 3,905,491 Fines and forfeitures 6,848,095 --- 6,848,095 Charges for sales and services 19,385,077 113 19,385,190 Use of money and property 1,644,019 --- 1,644,019 Miscellaneous 15,825,116 304,255 16,129,371 Intergovernmental 15,997,164 --- 15,997,164 Total revenues 151,914,267 304,368 152,218,635 Expenditures: Current: Public safety 117,957,958 1,462 117,959,420 Public works 5,103,052 --- 5,103,052 Health and social services 508,769 --- 508,769 Culture and recreation 19,788,696 --- 19,788,696 Community and economic development 11,908,671 --- 11,908,671 General governmental 26,309,413 28,629 26,338,042 Capital outlay 186,226 --- 186,226 Total expenditures 181,762,785 30,091 181,792,876 Excess (deficiency) of revenues over expenditures (29,848,518) 274,277 (29,574,241) Other financing sources (uses): Transfers in 49,992,116 --- 49,992,116 Transfers out (6,522,609) (145,000) (6,667,609) Proceeds from damage claims 7,000 --- 7,000 Proceeds from capital asset sale 54,513 --- 54,513 Total other financing sources (uses) 43,531,020 (145,000) 43,386,020 Net changes in fund balance 13,682,502 129,277 13,811,779 Fund balances (deficits), beginning of year 46,242,196 291,542 46,533,738 Fund balances (deficits), end of year 59,924,698 $ 420,819 $ 60,345,517 $ 129 -- 152 of 253 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET SCHEDULE ALL CAPITAL PROJECTS ACCOUNTS June 30, 2021 MUNICIPAL PARK BRIDGE BUILDINGS STREET IMPROVEMENT PROJECTS PROJECTS PROJECTS PROJECTS Cash and investments 4,334,056 $ 30,358,228 $ 38,800,416 $ 8,622,565 $ Accounts receivable --- --- 10,000 --- Due from other governmental units 220,824 --- 2,501,231 313,347 Special assessments receivable --- --- --- --- Prepaid items --- --- --- --- Total assets 4,554,880 $ 30,358,228 $ 41,311,647 $ 8,935,912 $ LIABILITIES Accounts payable 6,175 $ 69,411 $ 74,379 $ 125,828 $ Contracts payable 911,083 2,527,833 5,143,920 1,167,094 Accrued wages payable 8,782 28,378 127,734 50,736 Due to other funds --- --- --- --- Unearned revenue --- --- 38,630 --- Total liabilities 926,040 2,625,622 5,384,663 1,343,658 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - intergovernmental 220,824 --- 1,313,669 313,347 Unavailable revenue - special assessment --- --- --- --- Total deferred inflows of resources 220,824 --- 1,313,669 313,347 FUND BALANCES (DEFICITS) Nonspendable --- --- --- --- Restricted --- --- --- --- Committed 3,408,016 27,732,606 34,613,315 7,278,907 Unassigned --- --- --- --- Total fund balances (deficits) 3,408,016 27,732,606 34,613,315 7,278,907 Total liabilities, deferred inflows of resources and fund balances (deficits) 4,554,880 $ 30,358,228 $ 41,311,647 $ 8,935,912 $ ASSETS 130 -- 153 of 253 -- FIRE SPECIAL URBAN OTHER PROTECTION LIBRARY ASSESSMENT RENEWAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS TOTALS 3,129,043 $ 1,266,944 $ 894,342 $ --- $ 6,287,417 $ 93,693,011 $ --- 468 --- --- 1,325,346 1,335,814 --- --- --- --- 371,509 3,406,911 --- --- 2,637,385 --- --- 2,637,385 --- --- --- --- 162,264 162,264 3,129,043 $ 1,267,412 $ 3,531,727 $ --- $ 8,146,536 $ 101,235,385 $ 5,392 $ 44,443 $ --- $ 6 $ 154,683 $ 480,317 $ 327,792 --- --- --- 108,837 10,186,559 5,984 861 --- 162 17,451 240,088 --- --- --- 322,924 --- 322,924 --- --- --- 35,305 --- 73,935 339,168 45,304 --- 358,397 280,971 11,303,823 --- --- --- --- --- 1,847,840 --- --- 2,637,385 --- --- 2,637,385 --- --- 2,637,385 --- --- 4,485,225 --- --- --- --- 162,264 162,264 --- --- 894,342 --- --- 894,342 2,789,875 1,222,108 --- --- 7,703,301 84,748,128 --- --- --- (358,397) --- (358,397) 2,789,875 1,222,108 894,342 (358,397) 7,865,565 85,446,337 3,129,043 $ 1,267,412 $ 3,531,727 $ --- $ 8,146,536 $ 101,235,385 $ 131 -- 154 of 253 -- CITY OF DES MOINES, IOWA COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL CAPITAL PROJECTS ACCOUNTS For the Fiscal Year Ended June 30, 2021 MUNICIPAL PARK BRIDGE BUILDINGS STREET IMPROVEMENT PROJECTS PROJECTS PROJECTS PROJECTS Revenues: Charges for sales and services --- $ --- $ --- $ --- $ Use of money and property 511 6,914 22,585 17,241 Miscellaneous --- --- 3,677,537 446,132 Intergovernmental 4,714,166 --- 4,247,011 398,757 Total revenue 4,714,677 6,914 7,947,133 862,130 Expenditures: Current: Public safety --- --- --- --- Public works 8,046 --- 912,469 --- Culture and recreation --- --- --- 374,137 Community and economic development --- --- --- --- General government --- 70,609 --- --- Capital outlay 10,907,145 21,748,997 38,205,946 8,276,276 Total expenditures 10,915,191 21,819,606 39,118,415 8,650,413 Excess (deficiency) of revenues over expenditures (6,200,514) (21,812,692) (31,171,282) (7,788,283) Other financing sources (uses): Transfers in 3,500,000 42,464,000 49,717,607 7,026,710 Transfers out --- (215,188) (1,054,710) (105,703) Proceeds from damage claims --- 23,477 --- --- Total other financing sources (uses) 3,500,000 42,272,289 48,662,897 6,921,007 (2,700,514) 20,459,597 17,491,615 (867,276) 6,108,530 7,273,009 17,121,700 8,146,183 Fund balances (deficits), end of year 3,408,016 $ 27,732,606 $ 34,613,315 $ 7,278,907 $ Net changes in fund balance Fund balances (deficits), beginning of year 132 -- 155 of 253 -- FIRE SPECIAL URBAN OTHER PROTECTION LIBRARY ASSESSMENT RENEWAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS TOTALS --- $ 16,743 $ --- $ --- $ --- $ 16,743 $ 359 406 (22,079) --- 548 26,485 --- 22,795 --- --- 379,865 4,526,329 --- --- --- --- 197,808 9,557,742 359 39,944 (22,079) --- 578,221 14,127,299 55,369 --- --- --- 13,989 69,358 --- --- --- --- 729,354 1,649,869 --- 989,227 --- --- 156,612 1,519,976 --- --- --- 7,161 2,954,001 2,961,162 --- --- --- --- 730,080 800,689 6,500,422 179,754 --- 1,456,357 87,274,897 6,555,791 1,168,981 --- 7,161 6,040,393 94,275,951 (6,555,432) (1,129,037) (22,079) (7,161) (5,462,172) (80,148,652) 1,930,000 2,185,000 --- --- 7,735,532 114,558,849 --- --- --- --- (550,000) (1,925,601) --- --- --- --- --- 23,477 1,930,000 2,185,000 --- --- 7,185,532 112,656,725 (4,625,432) 1,055,963 (22,079) (7,161) 1,723,360 32,508,073 7,415,307 166,145 916,421 (351,236) 6,142,205 52,938,264 2,789,875 $ 1,222,108 $ 894,342 $ (358,397) $ 7,865,565 $ 85,446,337 $ 133 -- 156 of 253 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2021 OTHER COMMUNITY EMPLOYEE CDBG SERVICES BENEFITS ASSETS Cash and investments --- $ --- $ 2,044,628 $ Taxes receivable --- --- 20,087,026 Accounts receivable --- --- 26 Loans receivable, net of allowance for doubtful accounts 645,438 --- --- Accrued interest receivable 2,903 --- --- Due from other funds --- --- --- Due from other governmental units 2,041,513 2,200,771 --- Inventory --- --- --- Prepaid items --- 125 20,792 Total assets 2,689,854 $ 2,200,896 $ 22,152,472 $ LIABILITIES Accounts payable 550,929 201,924 90,484 Contracts payable --- --- --- Accrued wages payable 94,697 17,336 100,999 Accrued employee benefits --- --- 834,676 Due to other funds 1,317,043 1,903,685 --- Unearned revenue --- --- --- Good faith, security deposits --- --- --- Total liabilities 1,962,669 2,122,945 1,026,159 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes --- --- 19,874,147 Unavailable revenue - intergovernmental 840,309 717,847 --- Total deferred inflows of resources 840,309 717,847 19,874,147 FUND BALANCES (DEFICITS) Nonspendable --- 125 20,792 Restricted 26,716 38,408 1,231,374 Committed --- 32,359 --- Unassigned (139,840) (710,788) --- Total fund balances (deficits) (113,124) (639,896) 1,252,166 Total liabilities, deferred inflows of resources and fund balances 2,689,854 $ 2,200,896 $ 22,152,472 $ SPECIAL REVENUE 134 -- 157 of 253 -- OTHER PERMANENT ROAD USE SPECIAL CEMETERY SWARTZELL WEISE BIRD TAX REVENUE MAINTENANCE ENDOWMENT HABITATS TOTALS 8,906,918 $ 7,934,241 $ 4,948,605 $ 414,812 $ 2,650 $ 24,251,854 $ --- 1,853,488 --- --- --- 21,940,514 112,756 94,683 1,101 --- --- 208,566 --- 1,112,438 --- --- --- 1,757,876 --- 32,375 --- --- --- 35,278 --- 112,558 --- --- --- 112,558 5,091,905 726,666 --- --- --- 10,060,855 72,600 --- --- --- --- 72,600 19,569 84,162 --- --- --- 124,648 14,203,748 $ 11,950,611 $ 4,949,706 $ 414,812 $ 2,650 $ 58,564,749 $ 1,068,556 438,906 --- --- --- 2,350,799 16,559 --- --- --- --- 16,559 564,488 9,585 --- --- --- 787,105 4,900 --- --- --- --- 839,576 --- --- --- --- --- 3,220,728 --- 2,280 --- --- --- 2,280 --- 120,935 --- --- --- 120,935 1,654,503 571,706 --- --- --- 7,337,982 --- 1,681,627 --- --- --- 21,555,774 --- 51,124 --- --- --- 1,609,280 --- 1,732,751 --- --- --- 23,165,054 92,169 84,162 3,700,757 413,864 --- 4,311,869 12,457,076 3,904,894 1,080,500 948 2,650 18,742,566 --- 6,268,626 168,449 --- --- 6,469,434 --- (611,528) --- --- --- (1,462,156) 12,549,245 9,646,154 4,949,706 414,812 2,650 28,061,713 14,203,748 $ 11,950,611 $ 4,949,706 $ 414,812 $ 2,650 $ 58,564,749 $ SPECIAL REVENUE PERMANENT 135 -- 158 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2021 OTHER COMMUNITY EMPLOYEE CDBG SERVICES BENEFITS Revenues: Taxes --- $ --- $ 19,549,713 $ Licenses and permits --- --- --- Fines and forfeitures --- --- --- Charges for sales and services --- --- --- Use of money and property 18,037 32,650 --- Miscellaneous 106,720 15,500 227,737 Intergovernmental 3,994,442 5,200,054 741,367 Total revenues 4,119,199 5,248,204 20,518,817 Expenditures: Current: Public safety --- --- --- Public works --- --- --- Health and social services 4,546,792 5,652,707 --- Culture and recreation --- --- --- Community and economic development --- --- --- General government --- --- 4,246,124 Capital outlay --- --- --- Debt service: Principal retirement --- --- --- Principal retirement --- --- --- Total expenditures 4,546,792 5,652,707 4,246,124 Excess (deficiency) of revenues over expenditures (427,593) (404,503) 16,272,693 Other financing sources (uses): Transfers in --- --- 2,500,000 Transfers out --- --- (18,440,110) Total other financing sources (uses) --- --- (15,940,110) Net changes in fund balances (427,593) (404,503) 332,583 314,469 (235,393) 919,583 (113,124) $ (639,896) $ 1,252,166 $ Fund balances (deficits), end of year SPECIAL REVENUE Fund balances (deficits), beginning of year 136 -- 159 of 253 -- PERMANENT ROAD USE OTHER SPECIAL CEMETERY SWARTZELL WEISE BIRD TAX REVENUE MAINTENANCE ENDOWMENT HABITATS TOTALS --- $ 1,605,451 $ --- $ --- $ --- $ 21,155,164 $ 97,281 --- --- --- --- 97,281 20,078 --- --- --- --- 20,078 1,574,590 285 156,722 --- --- 1,731,597 --- 48,250 --- 116 --- 99,053 123,356 1,224,038 --- --- --- 1,697,351 31,259,483 6,434,484 --- --- --- 47,629,830 33,074,788 9,312,508 156,722 116 --- 72,430,354 --- 4,122,295 --- --- --- 4,122,295 24,892,760 --- --- --- --- 24,892,760 --- --- --- --- --- 10,199,499 --- 692,675 --- --- --- 692,675 --- 1,249,514 --- --- --- 1,249,514 --- 17,174 --- --- --- 4,263,298 45,185,557 --- --- --- 45,185,557 --- 737,000 --- --- --- 737,000 --- 137,600 --- --- --- 137,600 24,892,760 52,141,815 --- --- --- 91,480,198 8,182,028 (42,829,307) 156,722 116 --- (19,049,844) --- 47,396,256 --- --- --- 49,896,256 (6,069,935) (2,441,795) --- --- --- (26,951,840) (6,069,935) 44,954,461 --- --- --- 22,944,416 2,112,093 2,125,154 156,722 116 --- 3,894,572 10,437,152 7,521,000 4,792,984 414,696 2,650 24,167,141 12,549,245 $ 9,646,154 $ 4,949,706 $ 414,812 $ 2,650 $ 28,061,713 $ PERMANENT SPECIAL REVENUE 137 -- 160 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF NET POSITION SCHEDULE ALL PARKING ACCOUNTS June 30, 2021 PARK AND PARKING RIDE TOTALS Current assets: Unrestricted current assets: Cash and investments 269,976 $ 2,101,921 $ 2,371,897 $ Accounts receivable 9,702 12,809 22,511 Due from other governmental units 6,360 --- 6,360 Prepaid items --- --- --- Total current assets 286,038 2,114,730 2,400,768 Noncurrent, capital assets: Land 12,409,949 1,735,829 14,145,778 Construction in progress 3,852,157 --- 3,852,157 Buildings 78,040,302 2,141,304 80,181,606 Improvements other than buildings 17,045,102 17,816,005 34,861,107 Machinery and equipment 1,146,429 --- 1,146,429 Accumulated depreciation (56,624,314) (13,598,139) (70,222,453) Total capital assets, net of accumulated depreciation 55,869,625 8,094,999 63,964,624 Total assets 56,155,663 10,209,729 66,365,392 Other postemployment benefits related deferred outflows 18,361 --- 18,361 Pension related deferred outflows 170,462 --- 170,462 Total deferred outflow of resources 188,823 --- 188,823 ASSETS DEFERRED OUTFLOW OF RESOURCES 138 -- 161 of 253 -- PARK AND PARKING RIDE TOTALS Liabilities: Current liabilities: Accounts payable 196,653 $ 27,011 $ 223,664 $ Contracts payable 29,037 69,833 98,870 Accrued wages payable 63,579 1,084 64,663 Accrued employee benefits 111,913 --- 111,913 Due to other funds 933,577 --- 933,577 Accrued interest payable 73,974 --- 73,974 Capital lease payable 1,192,515 --- 1,192,515 2,601,248 97,928 2,699,176 Noncurrent liabilities: Accrued employee benefits 198,910 --- 198,910 Other postemployment benefits 169,633 --- 169,633 Net pension liability 712,393 --- 712,393 Advance from other funds 792,139 --- 792,139 Capital lease payable, net 20,197,469 --- 20,197,469 Total noncurrent liabilities 22,070,544 --- 22,070,544 Total liabilities 24,671,792 97,928 24,769,720 Other postemployment benefits related deferred inflows 33,028 --- 33,028 Pension related deferred inflows 24,683 --- 24,683 Total deferred inflow of resources 57,711 --- 57,711 Net investment in capital assets 34,450,604 8,025,166 42,475,770 Unrestricted (2,835,621) 2,086,635 (748,986) Total net position 31,614,983 $ 10,111,801 $ 41,726,784 $ NET POSITION LIABILITIES Total current liabilities DEFERRED INFLOWS OF RESOURCES 139 -- 162 of 253 -- CITY OF -- 163 of 253 -- CITY OF DES MOINES, IOWA COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION ALL PARKING ACCOUNTS For the Fiscal Year Ended June 30, 2021 PARK AND PARKING RIDE TOTALS Operating revenues: Charges for sales and services 6,808,745 $ 1,236,615 $ 8,045,360 $ Miscellaneous 232 --- 232 Total operating revenues 6,808,977 1,236,615 8,045,592 Operating expenses: Personal services 1,174,401 36,178 1,210,579 Contractual services 2,485,863 1,097,679 3,583,542 Commodities 205,116 --- 205,116 Depreciation 2,461,281 666,771 3,128,052 Other charges 1,287,074 247,864 1,534,938 Total operating expenses 7,613,735 2,048,492 9,662,227 Operating income (loss) (804,758) (811,877) (1,616,635) Non-operating revenues (expenses): Investment earnings --- 3,429 3,429 Interest expense and fiscal charges (942,170) --- (942,170) Gain (loss) on disposal of capital assets 525 --- 525 Total nonoperating revenues (expenses) (941,645) 3,429 (938,216) Income (Loss) before transfers (1,746,403) (808,448) (2,554,851) Transfers in 2,250,000 --- 2,250,000 Change in net position 503,597 (808,448) (304,851) 31,111,386 10,920,249 42,031,635 Total net position (deficit) - ending 31,614,983 $ 10,111,801 $ 41,726,784 $ Total net position (deficit) - beginning 141 -- 164 of 253 -- CITY OF DES MOINES, IOWA COMBINING SCHEDULE OF CASH FLOWS ALL PARKING ACCOUNTS For the Fiscal Year Ended June 30, 2021 PARK AND PARKING RIDE TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 6,806,633 $ 1,236,623 $ 8,043,256 $ Payments to suppliers (4,251,652) (1,501,631) (5,753,283) Payments to employees (1,015,490) (14,087) (1,029,577) Net cash provided by (used in) operating activities 1,539,491 (279,095) 1,260,396 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments to interfund accounts (525,767) --- (525,767) Transfers In 2,250,000 --- 2,250,000 Net cash provided by noncapital and related financing activities 1,724,233 --- 1,724,233 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on capital debt (946,129) --- (946,129) Principal paid on long-term debt (1,144,997) --- (1,144,997) Proceeds from sale of capital assets 525 --- 525 Acquisition and construction of capital assets (1,172,937) (725,339) (1,898,276) (3,263,538) (725,339) (3,988,877) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received --- 3,429 3,429 Net cash provided by investing activities --- 3,429 3,429 Net increase (decrease) in cash and cash equivalents 186 (1,001,005) (1,000,819) 269,790 $ 3,102,926 $ 3,372,716 $ 269,976 $ 2,101,921 $ 2,371,897 $ Net cash (used in) capital and related financing activities Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 142 -- 165 of 253 -- PARK AND PARKING RIDE TOTALS Operating income (loss) (804,758) $ (811,877) $ (1,616,635) $ Depreciation expense 2,461,281 666,771 3,128,052 (7,624) 8 (7,616) Decrease in due from other governmental units 5,280 --- 5,280 Decrease in accounts payable and contracts payable (273,599) (156,088) (429,687) Decrease in prepaids 169,396 22,224 191,620 Increase (decrease) in accrued wages payable 8,020 (133) 7,887 Decrease in accrued employee benefits and other postemployment benefits (20,972) --- (20,972) Decrease in deferred outflows (5,251) --- (5,251) Decrease in deferred inflows (71,363) --- (71,363) Increase in net pension liability 79,081 --- 79,081 Total adjustments 2,344,249 532,782 2,877,031 Net cash provided by (used in) operating activities 1,539,491 $ (279,095) $ 1,260,396 $ Schedule of noncash capital and related financing activities: Gain on disposal of capital assets 525 $ --- $ 525 $ (Increase) decrease in accounts receivable Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: 143 -- 166 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF NET POSITION (DEFICIT) NONMAJOR ENTERPRISE FUNDS June 30, 2021 SOLID GOLF WASTE COURSES SYSTEM TOTALS Current assets: Unrestricted current assets: Cash and investments 4,500 $ 11,456,565 $ 11,461,065 $ Accounts receivable 39,739 60,337 100,076 Due from other governmetnal units --- 88,685 88,685 Prepaid items --- 788 788 Total current assets 44,239 11,606,375 11,650,614 Noncurrent, capital assets: Land 123,497 --- 123,497 Buildings 1,071,714 1,143,880 2,215,594 Improvements other than buildings 3,210,234 255,802 3,466,036 Machinery and equipment 647,965 13,035,982 13,683,947 Accumulated depreciation (2,801,814) (10,649,772) (13,451,586) Total capital assets, net of accumulated depreciation 2,251,596 3,785,892 6,037,488 Total assets 2,295,835 15,392,267 17,688,102 Other postemployment benefits related deferred outflows --- 70,385 70,385 Pension related deferred outflows --- 786,655 786,655 Total deferred outflows of resources --- 857,040 857,040 Liabilities: Current liabilities: Accounts payable 9,784 131,538 141,322 Accrued wages payable 617 303,432 304,049 Accrued employee benefits --- 203,034 203,034 Accrued interest payable --- 32,928 32,928 General obligation bonds payable --- 585,000 585,000 Total current liabilities 10,401 1,255,932 1,266,333 Noncurrent liabilities: Accrued employee benefits --- 360,865 360,865 Other postemployment benefits --- 650,261 650,261 Net pension liability --- 3,287,585 3,287,585 Advance from other funds 2,800,623 --- 2,800,623 Revenue bonds payable, net --- 1,395,076 1,395,076 General obligation bonds payable, net --- 12,400,000 12,400,000 Total noncurrent liabilities 2,800,623 18,093,787 20,894,410 Total liabilities 2,811,024 19,349,719 22,160,743 Other postemployment benefits related deferred inflows --- 126,606 126,606 Pension related deferred inflows --- 113,910 113,910 Total deferred inflows of resources --- 240,516 240,516 Net investment in capital assets 2,251,596 3,785,892 6,037,488 Unrestricted (2,766,785) (7,126,820) (9,893,605) Total net position (deficit) (515,189) $ (3,340,928) $ (3,856,117) $ NET POSITION (DEFICIT) ASSETS DEFERRED OUTFLOWS OF RESOURCES LIABILITIES DEFERRED INFLOWS OF RESOURCES 144 -- 167 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION (DEFICIT) NONMAJOR ENTERPRISE FUNDS For the Fiscal Year Ended June 30, 2021 SOLID GOLF WASTE COURSES SYSTEM TOTALS Operating revenues: Charges for sales and services 493,933 $ 15,346,330 $ 15,840,263 $ Miscellaneous 33,859 --- 33,859 Total operating revenues 527,792 15,346,330 15,874,122 Operating expenses: Personal services 18,051 5,562,745 5,580,796 Contractual services 526,102 5,908,646 6,434,748 Commodities 4,930 394,033 398,963 Depreciation 111,610 692,040 803,650 Other charges 13,422 443,662 457,084 Total operating expenses 674,115 13,001,126 13,675,241 Operating income (loss) (146,323) 2,345,204 2,198,881 Non-operating revenues (expenses): Investment earnings --- 10,807 10,807 Interest expense and fiscal charges --- (197,064) (197,064) Gain (loss) on disposal of capital assets --- 2,896 2,896 Total nonoperating revenues (expenses) --- (183,361) (183,361) Income (loss) before transfers, capital grants and contributions (146,323) 2,161,843 2,015,520 Capital grants and contributions 3,900 --- 3,900 Transfers out --- (13,660,000) (13,660,000) Change in net position (142,423) (11,498,157) (11,640,580) (372,766) 8,157,229 7,784,463 Total net position (deficit) - ending (515,189) $ (3,340,928) $ (3,856,117) $ Total net position (deficit) - beginning 145 -- 168 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Fiscal Year Ended June 30, 2021 SOLID GOLF WASTE COURSES SYSTEM TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 506,499 $ 15,200,415 $ 15,706,914 $ Payments to suppliers (552,920) (6,761,878) (7,314,798) Payments to employees (17,960) (5,481,150) (5,499,110) Net cash (used in) provided by operating activities (64,381) 2,957,387 2,893,006 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer out - (13,660,000) (13,660,000) Proceeds from interfund accounts 60,481 --- 60,481 Net cash provided by (used in) noncapital and related financing activities 60,481 (13,660,000) (13,599,519) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from intergovernmental and capital grants 3,900 --- 3,900 Interest paid on capital debt --- (164,136) (164,136) Proceeds from the sale of capital assets --- 2,896 2,896 Principal paid on long-term debt --- (675,000) (675,000) Proceeds from issuance of general obligation bonds --- 13,660,000 13,660,000 Proceeds from premium on General obligation bonds --- 1,395,076 1,395,076 3,900 14,218,836 14,222,736 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received --- 10,807 10,807 Net cash provided by investing activities --- 10,807 10,807 Net increase in cash and cash equivalents --- 3,527,030 3,527,030 4,500 $ 7,929,535 $ 7,934,035 $ 4,500 $ 11,456,565 $ 11,461,065 $ Net cash provided by capital and related financing activities Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 146 -- 169 of 253 -- SOLID GOLF WASTE COURSES SYSTEM TOTALS Operating income (loss) (146,323) $ 2,345,204 $ 2,198,881 $ Depreciation expense 111,610 692,040 803,650 (Increase) in prepaid expenses - 67,742 67,742 (21,293) (47,914) (69,207) Decrease in due from other governmental units --- 46,476 46,476 (Decrease) in accounts payable (8,466) (83,279) (91,745) Increase in accrued wages payable 91 43,816 43,907 Decrease in accrued employee benefits --- (42,489) (42,489) Decrease other postemployment benefits --- (39,469) (39,469) Decrease in unearned revenue --- (144,477) (144,477) Decrease in deferred outflows --- (60,899) (60,899) (Decrease) in deferred inflows --- (305,416) (305,416) Increase in net pension liability --- 486,052 486,052 Total adjustments 81,942 612,183 694,125 Net cash (used in) provided by operating activities (64,381) $ 2,957,387 $ 2,893,006 $ Schedule of noncash capital and related financing activities: Gain on disposal of capital assets --- $ 2,896 $ 2,896 $ Decrease in accounts receivable Reconciliation of operating income (loss) to net cash (used in) provided by operating activities: Adjustments to reconcile operating income to net cash (used in) provided by operating activities: 147 -- 170 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2021 EQUIPMENT RADIO SERVICE CENTRAL COMMUNI- CENTER FORESTRY SERVICES CATIONS ASSETS Current assets: Cash and investments 1,059,340 $ --- $ 495,038 $ 253,833 $ Taxes receivable 15,184 --- --- --- Accounts receivable 32 --- --- --- Due from other governmental units 16,714 --- --- 1,600 Inventory 92,086 --- 209,181 --- Prepaid items --- --- --- --- Total current assets 1,183,356 --- 704,219 255,433 Noncurrent assets, capital assets: Machinery and equipment 190,712 --- 1,114,041 21,328 Accumulated depreciation (142,269) --- (1,114,041) (21,328) Total capital assets, net of accumulated depreciation 48,443 --- --- --- Total assets 1,231,799 --- 704,219 255,433 DEFERRED OUTFLOW OF RESOURCES Other postemployment benefits related deferred outflows 48,964 24,482 1,530 7,651 Pension related deferred outflows 521,962 200,757 25,057 100,645 Total deferred outflow of resources 570,926 225,239 26,587 108,296 LIABILITIES Liabilities: Current liabilities: Accounts payable 327,756 539,347 2,352 156 Accrued wages payable 174,625 86,533 7,362 30,452 Accrued employee benefits 145,412 52,615 7,610 22,058 Due to other funds --- 1,859,916 --- --- Unearned revenue --- --- --- --- Total current liabilities 647,793 2,538,411 17,324 52,666 Noncurrent liabilities: Accrued employee benefits 243,975 89,726 12,978 37,615 Other postemployment benefits 452,356 226,178 14,136 70,681 Net pension liability 2,181,379 839,003 104,717 420,616 Total noncurrent liabilities 2,877,710 1,154,907 131,831 528,912 Total liabilities 3,525,503 3,693,318 149,155 581,578 DEFERRED INFLOWS OF RESOURCES Other postemployment benefits related deferred inflows 88,074 44,037 2,752 13,762 Pension related deferred inflows 75,582 29,070 3,628 14,574 Total deferred inflow of resources 163,656 73,107 6,380 28,336 NET POSITION (DEFICIT) Net investment in capital assets 48,443 --- --- --- Unrestricted (1,934,877) (3,541,186) 575,271 (246,185) Total net position (deficit) (1,886,434) $ (3,541,186) $ 575,271 $ (246,185) $ 148 -- 171 of 253 -- EQUIPMENT RADIO GROUP HEALTH REPLACEMENT REPLACEMENT INSURANCE TOTALS 2,751,883 $ 20,049 $ 12,370,504 $ 16,950,647 $ --- --- --- 15,184 --- --- 2,015,612 2,015,644 500,000 --- 153,976 672,290 --- --- --- 301,267 17,714 --- --- 17,714 3,269,597 20,049 14,540,092 19,972,746 48,800,685 2,438,233 --- 52,564,999 (31,831,455) (2,438,233) --- (35,547,326) 16,969,230 --- --- 17,017,673 20,238,827 20,049 14,540,092 36,990,419 --- --- --- 82,627 --- --- --- 848,421 --- --- --- 931,048 39,328 --- 421,090 1,330,029 --- --- 5,867 304,839 --- --- 2,189,000 2,416,695 --- --- --- 1,859,916 --- --- 18,076 18,076 39,328 --- 2,634,033 5,929,555 --- --- --- 384,294 --- --- --- 763,351 --- --- --- 3,545,715 --- --- --- 4,693,360 39,328 --- 2,634,033 10,622,915 --- --- --- 148,625 --- --- --- 122,854 --- --- --- 271,479 16,969,230 --- --- 17,017,673 3,230,269 20,049 11,906,059 10,009,400 20,199,499 $ 20,049 $ 11,906,059 $ 27,027,073 $ 149 -- 172 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION (DEFICIT) INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2021 EQUIPMENT RADIO SERVICE CENTRAL COMMUN- CENTER FORESTRY SERVICES ICATIONS Operating revenues: Charges for sales and services 8,647,798 $ 2,248,330 $ 544,714 $ 870,005 $ Miscellaneous 474 --- --- --- Total operating revenue 8,648,272 2,248,330 544,714 870,005 Operating expenses: Personal services 3,395,273 1,476,162 139,791 566,257 Contractual services 823,498 1,821,602 359,622 107,106 Commodities 4,307,264 32,582 20,184 28,784 Depreciation 21,966 --- --- --- Other charges 62,716 1,188,224 --- --- Total operating expenses 8,610,717 4,518,570 519,597 702,147 Operating income (loss) 37,555 (2,270,240) 25,117 167,858 Non-operating revenues (expenses): Gain/(loss) on disposal of capital assets --- --- --- --- Total nonoperating revenues (expenses) --- --- --- --- Income (Loss) before transfers 37,555 (2,270,240) 25,117 167,858 Transfers in --- --- --- --- 37,555 (2,270,240) 25,117 167,858 (1,923,989) (1,270,946) 550,154 (414,043) Total net position (deficit) - ending (1,886,434) $ (3,541,186) $ 575,271 $ (246,185) $ Change in net position Total net position (deficit) - beginning 150 -- 173 of 253 -- EQUIPMENT RADIO GROUP HEALTH REPLACEMENT REPLACEMENT INSURANCE TOTALS 6,445,686 $ --- $ 33,286,042 $ 52,042,575 $ 10,058 --- --- 10,532 6,455,744 --- 33,286,042 52,053,107 --- --- 121,543 5,699,026 67,813 --- 31,211,481 34,391,122 --- --- --- 4,388,814 4,383,197 --- --- 4,405,163 --- --- 36,895 1,287,835 4,451,010 --- 31,369,919 50,171,960 2,004,734 --- 1,916,123 1,881,147 144,167 --- --- 144,167 144,167 --- --- 144,167 2,148,901 --- 1,916,123 2,025,314 111,555 --- --- 111,555 2,260,456 --- 1,916,123 2,136,869 17,939,043 20,049 9,989,936 24,890,204 20,199,499 $ 20,049 $ 11,906,059 $ 27,027,073 $ 151 -- 174 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2021 EQUIPMENT RADIO SERVICE CENTRAL COMMUNI- CENTER FORESTRY SERVICES CATIONS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 585,742 $ 2,248,330 $ 544,714 $ 870,005 $ Receipts from interfund services provided 8,061,850 --- --- --- Payments to suppliers (5,088,813) (2,362,465) (430,787) (139,731) Payments to employees (3,352,691) (1,395,407) (157,521) (568,171) Proceeds from damage claims --- --- --- --- Payments for interfund services used (97,649) (155,137) --- - Net cash provided by (used in) operating activities 108,439 (1,664,679) (43,594) 162,103 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from interfund accounts --- 1,664,679 --- --- Payments to interfund accounts --- --- --- --- Transfers in --- --- --- --- Intergovernmental receipts 6,964 --- --- (1,600) Net cash provided by (used in) noncapital and related financing activities 6,964 1,664,679 --- (1,600) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets --- --- --- --- Proceeds from sale of capital assets --- --- --- --- Net cash used in capital and related financing activities --- --- --- --- Net increase (decrease) in cash and cash equivalents 115,403 - (43,594) 160,503 Cash and cash equivalents, beginning of year 943,937 $ - $ 538,632 $ 93,330 $ Cash and cash equivalents, end of year 1,059,340 $ - $ 495,038 $ 253,833 $ 152 -- 175 of 253 -- EQUIPMENT RADIO GROUP HEALTH REPLACEMENT REPLACEMENT INSURANCE TOTALS 6,455,744 $ --- $ 31,211,423 $ 41,915,958 $ --- --- --- 8,061,850 (141,619) --- (31,102,306) (39,265,721) --- --- (115,676) (5,589,466) --- --- --- - --- --- --- (252,786) 6,314,125 - (6,559) 4,869,835 --- --- --- 1,664,679 --- --- --- - 111,555 --- --- 111,555 (500,000) --- --- (494,636) (388,445) --- --- 1,281,598 (5,426,954) --- --- (5,426,954) 144,167 --- --- 144,167 (5,282,787) --- --- (5,282,787) 642,893 - (6,559) 868,646 2,108,990 $ 20,049 $ 12,377,063 $ 16,082,001 $ 2,751,883 $ 20,049 $ 12,370,504 $ 16,950,647 $ (continued) 153 -- 176 of 253 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS (CONTINUED) ALL INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2021 EQUIPMENT RADIO SERVICE CENTRAL COMMUNI- CENTER FORESTRY SERVICES CATIONS Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) 37,555 (2,270,240) 25,117 167,858 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 21,966 --- - --- Decrease in due from other governmental units - --- - --- Decrease in accounts and taxes receivable (680) --- --- --- Decrease in inventories (28,347) --- 20,062 --- (Increase) decrease in prepaid items 14,964 --- (59,470) --- Increase (decrease) in accounts payable 20,399 524,806 (11,573) (3,841) Increase in accrued wages payable 22,469 27,082 (12,930) 2,633 Increase (decrease) in accrued employee benefits and other postemployment benefits (50,039) 74 (10,699) (24,318) Decrease in deferred outflows (34,085) (22,524) (2,657) (7,372) (Decrease) in deferred inflows (210,006) (71,416) (9,379) (41,724) (Decrease) in net pension liability 314,243 147,539 17,935 68,867 Total adjustments 70,884 605,561 (68,711) (5,755) Net cash provided by (used in) operating activities 108,439 $ (1,664,679) $ (43,594) $ 162,103 $ Schedule of noncash capital and related financing activities: Gain on sale of capital asset --- --- --- --- 154 -- 177 of 253 -- EQUIPMENT RADIO GROUP HEALTH REPLACEMENT REPLACEMENT INSURANCE TOTALS 2,004,734 - 1,916,123 1,881,147 4,383,197 --- --- 4,405,163 - --- (72,832) (72,832) - --- (2,004,744) (2,005,424) --- --- --- (8,285) 3,543 --- --- (40,963) (77,349) --- 9,070 461,512 --- --- 5,867 45,121 --- --- 139,957 54,975 --- --- --- (66,638) --- --- --- (332,525) --- --- --- 548,584 4,309,391 - (1,922,682) 2,988,688 6,314,125 $ - $ (6,559) $ 4,869,835 $ 144,167 --- --- 144,167 155 -- 178 of 253 -- CITY OF DES MOINES, IOWA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION For the Fiscal Year Ended June 30, 2021 GOVERNMENTAL GOVERNMENTAL FUNDS FUNDS CAPITAL ASSETS CAPITAL ASSETS JUNE 30, 2020 ADDITIONS DELETIONS JUNE 30, 2021 Function: Public safety 110,094,234 $ 2,570,812 $ (1,401,461) $ 111,263,585 $ General government 351,510,918 114,503,106 (39,225,169) 426,788,855 Public works 1,095,761,740 47,698,563 (8,500) 1,143,451,803 Health and social services 13,989 --- --- 13,989 Culture and recreation 313,108,057 7,557,412 --- 320,665,469 Community and economic development 6,752,186 --- --- 6,752,186 Total Governmental Funds Capital Assets 1,877,241,124 $ 172,329,893 $ (40,635,130) $ 2,008,935,887 $ * 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 position. 156 -- 179 of 253 -- CITY OF DES MOINES, IOWA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION June 30, 2021 LAND AND BUILDINGS IMPROVEMENTS MACHINERY CONSTRUCTION LAND AND BLDG OTHER THAN AND IN IMPROVEMENTS IMPROVEMENTS BUILDINGS EQUIPMENT PROGRESS TOTAL Function: Public safety 10,698,182 $ 46,702,576 $ 26,177,244 $ 27,685,583 $ --- $ 111,263,585 $ General government 122,905,627 94,993,780 1,371,527 13,938,417 193,579,504 426,788,855 Public works 19,249,630 2,608,442 1,116,118,274 5,475,457 --- 1,143,451,803 Health and social services --- --- --- 13,989 --- 13,989 Culture and recreation 6,070,975 106,647,131 205,633,026 2,314,337 --- 320,665,469 Community and economic development 4,574,294 8,849 2,095,342 73,701 --- 6,752,186 163,498,708 $ 250,960,778 $ 1,351,395,413 $ 49,501,484 $ 193,579,504 $ 2,008,935,887 $ * Total Governmental Funds Capital Assets 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 position. 157 -- 180 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE General Obligation Bonds: General Obligation Bonds 2014C 5.00 JDI 07-14 06-24 4.00 4.00 Taxable General Obligation Urban Renewal Bonds 2014D 2.65 JDI 07-14 06-24 2.85 3.05 General Obligation Refunding Capital Loan Notes 2014E 5.00 JDI 09-14 06-27 2.25 2.38 3.00 3.00 3.00 General Obligation Bonds 2015A 5.00 JDI 08-15 06-35 5.00 4.00 4.00 4.00 3.00 3.00 3.00 3.13 3.25 3.25 3.38 3.38 3.50 General Obligation Refunding Bonds 2015B 5.00 JDI 08-15 06-28 5.00 4.00 4.00 4.00 3.00 3.00 General Obligation Bonds, 2016A 5.00 JDI 09-16 06-36 5.00 5.00 2.00 INTEREST 158 -- 181 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING 1,440,000 22 $24,945,000 $24,945,000 $7,025,000 $17,920,000 1,480,000 23 15,000,000 24 260,000 22 $2,250,000 $2,250,000 $1,450,000 $800,000 265,000 23 275,000 24 3,560,000 22 $27,465,000 $27,465,000 $16,055,000 $11,410,000 2,410,000 23 1,305,000 24 1,335,000 25 1,380,000 26 1,420,000 27 1,245,000 22 $40,225,000 $40,225,000 $17,635,000 $22,590,000 1,310,000 23 1,370,000 24 1,430,000 25 1,485,000 26 1,540,000 27 1,590,000 28 1,640,000 29 1,690,000 30 1,740,000 31 1,795,000 32 1,855,000 33 1,915,000 34 1,985,000 35 1,790,000 22 $19,655,000 $19,655,000 $7,920,000 $11,735,000 1,905,000 23 1,460,000 24 1,535,000 25 1,610,000 26 1,685,000 27 1,750,000 28 1,810,000 22 $42,825,000 $42,825,000 $8,675,000 $34,150,000 1,900,000 23 1,995,000 24 2,095,000 25 ANNUAL SERIAL PAYMENTS BONDS 159 -- 182 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST 2.00 2.13 2.25 2.25 2.38 2.38 2.50 2.50 2.63 2.63 2.75 General Obligation Refunding Bonds, 2016B 5.00 JDI 09-16 06-30 4.00 3.00 3.00 3.00 2.00 2.00 2.25 2.25 General Obligation Bonds, 2017A 5.00 JDI 09-17 06-37 5.00 5.00 5.00 5.00 2.00 2.25 3.00 3.00 3.00 3.00 3.13 3.00 3.00 3.00 3.00 General Obligation Bonds, 2017B 2.25 JDI 09-17 06-37 2.25 2.50 4.00 2.50 3.00 3.00 3.00 3.13 3.00 3.00 3.00 3.13 160 -- 183 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 2,135,000 26 2,180,000 27 2,225,000 28 2,275,000 29 2,325,000 30 2,385,000 31 2,440,000 32 2,500,000 33 2,560,000 34 2,630,000 35 2,695,000 36 2,255,000 22 $29,545,000 $29,545,000 $7,135,000 $22,410,000 2,385,000 23 2,500,000 24 2,595,000 25 2,685,000 26 2,780,000 27 2,850,000 28 2,925,000 29 1,435,000 30 1,575,000 22 $39,780,000 $39,780,000 $5,645,000 $34,135,000 1,655,000 23 1,740,000 24 1,825,000 25 1,920,000 26 2,015,000 27 2,055,000 28 2,100,000 29 2,165,000 30 2,230,000 31 2,295,000 32 2,365,000 33 2,435,000 34 2,515,000 35 2,585,000 36 2,660,000 37 565,000 25 $8,915,000 $8,915,000 $0 $8,915,000 595,000 26 605,000 27 620,000 28 645,000 29 660,000 30 680,000 31 700,000 32 725,000 33 745,000 34 770,000 35 790,000 36 815,000 37 161 -- 184 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST General Obligation Annual Appropriation Bonds, 2017C 4.00 JDI 09-17 06-37 4.00 4.00 4.00 General Obligation Refunding Capital Loan Notes, 2018A 5.00 JDI 03-18 06-25 5.00 5.00 2.25 General Obligation Bonds, 2018B 5.00 JDI 08-18 06-38 5.00 5.00 5.00 5.00 5.00 3.00 3.00 3.00 3.00 3.13 3.13 3.25 3.25 3.38 3.38 3.38 General Obligation Bonds, 2019A 5.00 JDI 07-19 06-39 5.00 5.00 5.00 5.00 5.00 4.00 4.00 4.00 3.00 2.75 2.75 2.88 2.88 3.00 3.00 3.00 3.13 General Obligation Bonds, 2019B 4.00 JDI 07-19 06-24 4.00 4.00 162 -- 185 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 820,000 22 $4,785,000 $4,785,000 $1,855,000 $2,930,000 855,000 23 890,000 24 365,000 25 8,790,000 22 $44,325,000 $44,325,000 $23,245,000 $21,080,000 6,160,000 23 4,210,000 24 1,920,000 25 1,810,000 22 $45,640,000 $45,640,000 $5,490,000 $40,150,000 1,865,000 23 1,915,000 24 1,965,000 25 2,025,000 26 2,085,000 27 2,150,000 28 2,220,000 29 2,295,000 30 2,375,000 31 2,465,000 32 2,560,000 33 2,660,000 34 2,770,000 35 2,880,000 36 2,995,000 37 3,115,000 38 6,525,000 22 $84,815,000 $84,815,000 $12,940,000 $71,875,000 6,140,000 23 6,335,000 24 5,670,000 25 5,870,000 26 5,205,000 27 5,380,000 28 5,555,000 29 4,100,000 30 4,235,000 31 2,700,000 32 2,790,000 33 2,900,000 34 1,570,000 35 1,625,000 36 1,690,000 37 1,755,000 38 1,830,000 39 480,000 22 $2,405,000 $2,405,000 $905,000 $1,500,000 500,000 23 520,000 24 163 -- 186 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST General Obligation Bonds, 2020A 5.00 JDI 03-20 06-32 5.00 5.00 5.00 5.00 5.00 5.00 4.00 2.00 2.00 2.00 General Obligation Bonds, 2020D 5.00 JDI 09-20 06-40 5.00 5.00 5.00 5.00 5.00 5.00 4.00 4.00 3.00 1.25 1.38 1.50 1.63 1.63 1.75 1.75 1.88 1.88 Taxable General Obligation, 2020E 4.00 JDI 09-20 06-25 4.00 4.00 0.50 General Obligation Refunding Capital Loan Notes, 2021A 5.00 JDI 03-21 06-33 5.00 5.00 5.00 5.00 5.00 5.00 4.00 4.00 1.00 1.00 1.13 164 -- 187 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 730,000 22 $25,135,000 $25,135,000 $1,305,000 $23,830,000 1,890,000 23 2,370,000 24 2,595,000 25 2,715,000 26 2,995,000 27 2,715,000 28 1,865,000 29 1,950,000 30 1,990,000 31 2,015,000 32 4,925,000 22 $84,760,000 $84,760,000 $5,410,000 $79,350,000 4,970,000 23 5,035,000 24 5,085,000 25 4,245,000 26 4,300,000 27 4,360,000 28 4,430,000 29 4,500,000 30 3,950,000 31 4,020,000 32 4,115,000 33 4,230,000 34 4,340,000 35 3,170,000 36 3,265,000 37 3,365,000 38 3,470,000 39 3,575,000 40 1,000,000 22 $5,090,000 $5,090,000 $1,005,000 $4,085,000 1,010,000 23 1,030,000 24 1,045,000 25 1,690,000 22 $34,760,000 $34,760,000 $0 $34,760,000 2,030,000 23 2,125,000 24 2,225,000 25 3,075,000 26 1,865,000 27 2,610,000 28 3,770,000 29 --- 30 8,365,000 31 4,170,000 32 2,835,000 33 165 -- 188 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST Taxable General Obligation Urban Renewal Capital Loan Notes, Series 2021B 2.00 JDI 03-21 06-34 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.10 1.20 1.30 1.40 Total General Obligation Bonds 166 -- 189 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 2,855,000 22 $43,835,000 $43,835,000 $0 $43,835,000 3,080,000 23 3,140,000 24 3,205,000 25 3,270,000 26 3,335,000 27 3,400,000 28 3,470,000 29 3,535,000 30 3,575,000 31 3,610,000 32 3,655,000 33 3,705,000 34 $611,155,000 $611,155,000 $123,695,000 $487,460,000 167 -- 190 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST Revenue Bonds: Sewer Revenue Bonds: Sewer Revenue Capital Loan Notes 2014B 5.00 JDI 04-14 06-23 2.50 Sewer Revenue 2018D (State Revolving Fund - Loan C0946R) 1.02 JDI 10-18 06-39 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 Sewer Revenue 2018F (State Revolving Fund - Loan C0948R) 1.22 JDI 10-18 06-40 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 Sewer Revenue 2020B (State Revolving Fund - Loan CS-1920858-01) 1.49 JDI 05-20 06-41 1.49 168 -- 191 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 1,130,000 22 $16,240,000 $16,240,000 $13,935,000 $2,305,000 1,175,000 23 310,000 22 $6,668,000 $6,668,000 $572,000 $6,096,000 313,000 23 317,000 24 320,000 25 323,000 26 326,000 27 330,000 28 333,000 29 337,000 30 340,000 31 343,000 32 347,000 33 350,000 34 354,000 35 358,000 36 361,000 37 365,000 38 369,000 39 451,000 22 $10,000,000 $10,000,000 $442,000 $9,558,000 456,000 23 462,000 24 467,000 25 473,000 26 479,000 27 484,000 28 490,000 29 496,000 30 502,000 31 508,000 32 514,000 33 520,000 34 527,000 35 533,000 36 539,000 37 546,000 38 552,000 39 559,000 40 431,000 22 $10,000,000 $5,500,000 $0 $5,500,000 439,000 23 169 -- 192 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST 1.49 1.49 1.49 1.49 1.49 1.49 1.49 1.49 1.49 1.49 Sewer Revenue 2021C (State Revolving Fund - Loan CS-1920795-S1) 2.00 JDI 06-21 06-41 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Sewer Revenue 2021D (State Revolving Fund - Loan CS-1920944-01) 2.00 2.00 2.00 Total Sewer Revenue Bonds 170 -- 193 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 446,000 24 452,000 25 459,000 26 466,000 27 473,000 28 480,000 29 487,000 30 495,000 31 502,000 32 370,000 33 149,000 22 $3,624,000 $2,199,180 $0 $2,199,180 152,000 23 155,000 24 158,000 25 161,000 26 165,000 27 168,000 28 171,000 29 175,000 30 178,000 31 182,000 32 186,000 33 189,000 34 10,180 35 617,000 22 $15,000,000 $1,329,849 $0 $1,329,849 630,000 23 82,849 24 $42,908,000 $38,408,000 $14,949,000 $26,988,029 171 -- 194 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST Stormwater Revenue Bonds: Stormwater Management Utility Revenue Bonds, Series 2016C 5.00 JDI 09-16 06-31 5.00 5.00 3.00 3.00 2.00 2.10 2.25 2.25 2.38 Stormwater Management Utility Revenue Refunding Bonds, Series 2016D 5.00 JDI 09-16 06-30 5.00 5.00 3.00 3.00 2.00 2.10 3.00 3.00 Stormwater Management Utility Revenue Capital Loan Notes, Series 2018C 5.00 JDI 08-18 06-38 5.00 5.00 5.00 5.00 5.00 5.00 3.00 3.00 3.00 3.13 3.13 3.25 3.25 3.38 3.38 3.50 172 -- 195 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 1,555,000 22 $12,715,000 $12,715,000 $6,595,000 $6,120,000 1,635,000 23 340,000 24 345,000 25 350,000 26 360,000 27 370,000 28 380,000 29 385,000 30 400,000 31 610,000 22 $8,830,000 $8,830,000 $2,280,000 $6,550,000 640,000 23 675,000 24 715,000 25 735,000 26 765,000 27 780,000 28 800,000 29 830,000 30 1,755,000 22 $43,620,000 $43,620,000 $3,715,000 $39,905,000 1,810,000 23 1,865,000 24 1,920,000 25 1,985,000 26 2,050,000 27 2,120,000 28 2,195,000 29 2,280,000 30 2,375,000 31 2,465,000 32 2,560,000 33 2,665,000 34 2,780,000 35 2,900,000 36 3,025,000 37 3,155,000 38 173 -- 196 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST Sewer Revenue 2018F (State Revolving Fund - Loan C0946R) 1.02 JDI 10-18 06-39 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 Sewer Revenue 2018G (State Revolving Fund - Loan C0949R) 1.22 JDI 10-18 06-40 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 1.22 Sewer Revenue 2020C (State Revolving Fund - Loan CS-1920858-01) 1.49 JDI 05-20 06-41 1.49 1.49 1.49 1.49 1.49 1.49 174 -- 197 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 310,000 22 $6,668,000 $6,668,000 $572,000 $6,096,000 313,000 23 317,000 24 320,000 25 323,000 26 326,000 27 330,000 28 333,000 29 337,000 30 340,000 31 343,000 32 347,000 33 350,000 34 354,000 35 358,000 36 361,000 37 365,000 38 369,000 38 388,000 22 $9,250,000 $9,250,000 $381,000 $8,869,000 396,000 23 404,000 24 412,000 25 420,000 26 429,000 27 437,000 28 446,000 29 455,000 30 464,000 31 473,000 32 483,000 33 493,000 34 502,000 35 512,000 36 523,000 37 533,000 38 544,000 39 555,000 40 431,000 22 $10,000,000 $5,500,000 $0 $5,500,000 439,000 23 446,000 24 452,000 25 459,000 26 466,000 27 473,000 28 175 -- 198 of 253 -- CITY OF DES MOINES, IOWA COMBINED SCHEDULE OF BONDS PAYABLE June 30, 2021 FINAL ISSUE MATURITY RATES DATES DATE DATE INTEREST 1.49 1.49 1.49 1.49 1.49 Stormwater Management Utility Revenue Bonds, Series 2020F 5.00 JDI 09-20 06-40 5.00 5.00 5.00 5.00 5.00 5.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Sewer Revenue 2021E (State Revolving Fund - Loan C1200R) 2.00 JDI 06-21 06-41 Total Stormwater Revenue Bonds Total Revenue Bonds Total General Obligation and Revenue Bonds 176 -- 199 of 253 -- FISCAL AMOUNT YEAR AUTHORIZED ISSUED RETIRED OUTSTANDING ANNUAL SERIAL PAYMENTS BONDS 480,000 28 487,000 28 495,000 28 502,000 28 370,000 28 970,000 22 $22,485,000 $22,485,000 $1,105,000 $21,380,000 980,000 23 990,000 24 1,000,000 25 1,015,000 26 1,025,000 27 1,040,000 28 1,060,000 29 1,075,000 30 1,095,000 31 1,115,000 32 1,140,000 33 1,170,000 34 1,200,000 35 1,230,000 36 1,265,000 37 1,300,000 38 1,335,000 39 1,375,000 40 165,000 22 $3,623,000 $2,199,175 $0 $2,199,175 166,000 23 168,000 24 169,000 25 171,000 26 173,000 27 175,000 28 176,000 29 178,000 30 180,000 31 182,000 32 184,000 33 112,175 34 $117,191,000 $111,267,175 $14,648,000 $96,619,175 $160,099,000 $149,675,175 $29,597,000 $123,607,204 $771,254,000 $760,830,175 $153,292,000 $611,067,204 177 -- 200 of 253 -- CITY OF -- 201 of 253 -- STATISTICAL SECTION -- 202 of 253 -- CITY OF -- 203 of 253 -- 181 STATISTICAL SECTION This part of the City of Des Moines’ annual comprehensive 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 government’s overall financial health. Contents Page Financial Trends 182 These schedules contain trend information to help the reader understand how the City of Des Moines’ financial performance and well-being have changed over time. Revenue Capacity 201 These schedules contain information to help the reader assess the City of Des Moines’ most significant local revenue source, the property tax. Debt Capacity 210 These schedules present information to help the reader assess the affordability of the City of Des Moines’ current levels of outstanding debt and the City of Des Moines’ ability to issue additional debt in the future. Demographic and Economic Information 219 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City of Des Moines’ financial activities take place. Operating Information 224 These schedules contain service and infrastructure data to help the reader understand how the information in the City of Des Moines’ financial report relates to the services the City of Des Moines provides and the activities in performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. -- 204 of 253 -- CITY OF DES MOINES, IOWA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Governmental activities: Net investment in capital assets 763,997,971 $ 703,716,716 $ 668,196,568 $ 639,424,605 $ Restricted: Capital projects 3,262,701 2,369,327 2,370,310 3,192,588 Debt retirement 13,342,282 13,156,334 4,924,629 3,148,524 Corpus/Endowments/permanently restricted 4,114,621 4,249,971 4,097,300 3,983,061 Donor restricted purposes/temporarily restricted - - - - Police and fire 481,664 531,296 573,280 1,265,369 Public works 12,457,076 10,421,670 12,076,600 9,873,168 Health and social services - - - - Culture and recreation 1,475,997 1,748,302 1,765,923 1,608,974 Community and economic development 17,289,053 - - - Other restricted assets 39,668,136 12,184,995 3,575,571 4,776,639 Unrestricted (90,009,943) (50,530,271) (38,030,704) (65,470,632) Total governmental activities net position 766,079,558 $ 697,848,340 $ 659,549,477 $ 601,802,296 $ Business-type activities: Net investment in capital assets 342,096,930 $ 338,541,335 $ 308,497,550 $ 316,765,007 $ Restricted: Capital projects - - - - Public housing program 1,707,735 2,912,354 2,896,344 3,135,420 Debt retirement 9,254,367 7,146,596 7,146,596 4,454,546 Unrestricted 23,115,386 22,678,750 19,603,224 10,715,246 Total business-type activities net position 376,174,418 $ 371,279,035 $ 338,143,714 $ 335,070,219 $ Primary government: Net investment in capital assets 1,106,094,901 $ 1,042,258,051 $ 976,694,118 $ 956,189,612 $ Restricted: Capital projects 3,262,701 2,369,327 2,370,310 3,192,588 Public housing program 1,707,735 2,912,354 2,896,344 3,135,420 Debt retirement 22,596,649 20,302,930 12,071,225 7,603,070 Endowments/permanently restricted 4,114,621 4,249,971 4,097,300 3,983,061 Donor restricted purposes/temporarily restricted - - - - Police and fire 481,664 531,296 573,280 1,265,369 Public works 12,457,076 10,421,670 12,076,600 9,873,168 Health and social services - - - - Culture and recreation 1,475,997 1,748,302 1,765,923 1,608,974 Community and economic development 17,289,053 - - - Other restricted assets 39,668,136 12,184,995 3,575,571 4,776,639 Unrestricted (66,894,557) (27,851,521) (18,427,480) (54,755,386) Total primary government net position 1,142,253,976 $ 1,069,127,375 $ 997,693,191 $ 936,872,515 $ *As restated for GASB 75. See Notes to the Financial Statements for further information. 182 -- 205 of 253 -- Table 1 2017* 2016 2015 2014 2013 2012 612,859,417 $ 648,729,341 $ 627,588,818 $ 614,177,213 $ 627,843,052 $ 594,193,590 $ 879,835 881,071 887,263 888,328 865,663 849,924 24,886,321 3,180,672 1,886,377 - - 622,330 3,830,999 3,709,917 3,598,450 3,481,043 3,387,035 3,387,035 906,494 921,067 932,213 932,213 917,034 815,499 - - 1,159,309 - 1,642,857 1,488,697 10,149,716 9,588,074 6,314,263 1,817,452 819,683 155,266 - - - - 201,268 1,724,384 1,646,955 1,628,645 1,713,415 1,815,120 953,924 1,139,051 - - - - 1,437,818 997,898 3,372,846 2,559,058 1,984,709 1,663,777 - - (64,464,296) (101,642,381) (109,471,650) 22,024,663 (25,682,004) (6,914,119) 594,068,287 $ 569,555,464 $ 536,593,167 $ 646,799,809 $ 612,386,330 $ 598,459,555 $ 277,688,763 $ 282,428,015 $ 275,958,369 $ 273,748,942 $ 254,919,414 $ 268,716,677 $ 2,287,721 - - - - - 4,339,945 4,491,284 6,005,705 7,215,809 9,282,578 10,468,627 4,454,546 5,018,646 5,018,646 5,018,646 5,152,298 7,106,798 46,281,655 27,750,785 13,897,395 14,724,885 23,234,667 3,423,756 335,052,630 $ 319,688,730 $ 300,880,115 $ 300,708,282 $ 292,588,957 $ 289,715,858 $ 890,548,180 $ 931,157,356 $ 903,547,187 $ 887,926,155 $ 882,762,466 $ 862,910,267 $ 3,167,556 881,071 887,263 888,328 865,663 849,924 4,339,945 4,491,284 6,005,705 7,215,809 9,282,578 10,468,627 29,340,867 8,199,318 6,905,023 5,018,646 5,152,298 7,729,128 3,830,999 3,709,917 3,598,450 3,481,043 3,387,035 3,387,035 906,494 921,067 932,213 932,213 917,034 815,499 - - 1,159,309 - 1,642,857 1,488,697 10,149,716 9,588,074 6,314,263 1,817,452 819,683 155,266 - - - - 201,268 1,724,384 1,646,955 1,628,645 1,713,415 1,815,120 953,924 1,139,051 - - - - 1,437,818 997,898 3,372,846 2,559,058 1,984,709 1,663,777 - - (18,182,641) (73,891,596) (95,574,255) 36,749,548 (2,447,337) (3,490,363) 929,120,917 $ 889,244,194 $ 837,473,282 $ 947,508,091 $ 904,975,287 $ 888,175,413 $ 183 -- 206 of 253 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Expenses: Governmental activities: Public safety 147,553,966 $ 146,897,935 $ 133,479,994 $ 120,232,843 $ Public works 65,268,316 59,581,938 56,342,138 55,883,069 Health and social services 11,094,869 9,902,331 9,578,685 9,643,000 Culture and recreation 33,865,746 33,393,608 32,790,812 32,646,689 Community and economic development 35,885,238 26,461,222 24,412,677 41,587,724 General Government 49,931,107 38,695,179 37,847,520 36,726,594 Interest on long-term debt 11,539,387 12,341,923 13,174,684 12,136,101 Total governmental activities expenses 355,138,629 327,274,136 307,626,510 308,856,020 Business-type activities: Airport - - - - Parking facilities system 10,716,509 10,682,504 12,753,187 14,784,051 Sewer system 40,043,204 41,163,607 37,884,466 36,629,644 Stormwater utility 22,158,196 19,541,537 20,312,642 18,069,451 Golf 676,692 301,658 364,359 344,436 Solid waste system 13,770,043 13,499,100 14,290,636 14,025,099 Municipal Housing Agency 23,939,252 24,325,138 23,978,374 22,495,280 Total business-type activities expenses 111,303,896 109,513,544 109,583,664 106,347,961 Total primary government expenses 466,442,525 436,787,680 417,210,174 415,203,981 Program revenue: Governmental activities: Charges for services: Public safety 28,711,991 27,373,638 23,854,592 19,856,782 Public works 4,102,995 2,978,646 4,499,746 4,542,178 Health and social services 151,050 275,145 646,862 427,177 Culture and recreation 3,274,911 2,791,514 3,202,191 3,713,972 Community and economic development 700,283 226,615 1,428,558 1,887,540 General Government 32,637,292 33,628,699 35,160,101 29,163,845 Interest on long-term debt - - - - 184 -- 207 of 253 -- Table 2 2017 2016 2015 2014 2013 2012 108,995,939 $ 112,162,186 $ 119,483,595 $ 102,583,945 $ 102,611,418 $ 98,465,997 $ 58,724,734 53,423,423 51,339,248 51,344,028 53,399,991 49,340,265 9,528,495 18,613,187 15,436,157 15,696,523 19,585,129 17,316,619 32,102,902 33,828,194 30,754,939 29,431,057 29,227,384 28,981,404 19,132,739 20,226,141 19,337,576 19,849,605 20,399,479 19,585,102 31,039,641 26,732,006 26,117,356 23,630,372 21,991,537 66,299,402 14,649,355 14,897,447 15,840,246 16,179,088 17,870,953 16,348,496 274,173,805 279,882,584 278,309,117 258,714,618 265,085,891 296,337,285 - - - - - 250,444,292 16,531,115 12,625,176 11,632,790 11,229,564 11,361,604 11,903,920 35,361,004 33,593,378 32,892,418 32,738,830 33,024,065 32,547,541 16,333,453 16,851,616 15,896,140 13,253,946 13,795,476 13,062,830 274,661 222,351 216,784 318,933 224,460 224,339 12,868,357 12,599,520 12,255,052 11,122,261 11,046,303 11,212,320 21,554,655 21,452,997 22,284,760 22,329,081 23,857,284 26,255,903 102,923,245 97,345,038 95,177,944 90,992,615 93,309,192 345,651,145 377,097,050 377,227,622 373,487,061 349,707,233 358,395,083 641,988,430 22,548,480 22,916,078 20,807,818 19,420,273 19,101,131 17,034,087 7,918,911 11,473,360 9,051,823 16,278,364 8,671,944 11,786,989 535,310 157,414 746,912 861,606 12,196 1,284,516 2,864,389 4,442,482 3,826,159 5,284,120 5,234,705 5,531,829 158,495 1,478,853 656,065 1,285,139 412,254 630,461 32,919,680 27,627,092 24,529,091 10,814,381 17,248,638 22,851,736 275,633 479,524 149,061 - - - (Continued) 185 -- 208 of 253 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Operating grants and contributions: Public safety 4,507,463 $ 3,309,766 $ 4,524,279 $ 5,022,809 $ Public works 30,061,407 28,288,240 27,904,610 27,027,302 Health and social services 10,205,863 7,999,801 9,056,185 6,526,872 Culture and recreation 978,651 744,791 685,195 762,771 Community and economic development 6,892,924 31,015 45,505 69,846 General Government 8,800,040 3,160,317 2,338,555 3,267,989 Interest on long-term debt 1,479,221 3,053,724 5,346,333 4,358,560 Capital grants and contributions: Public safety 100,010 203,178 310,457 563,311 Public works 17,797,731 21,590,076 16,645,845 11,725,740 Health and social services - - - - Culture and recreation 850,736 4,515,930 744,153 770,082 Community and economic development - 962,639 - - General Government 500,000 1,815 2,000,000 - Total governmental activities program revenue 151,752,568 141,135,549 138,393,167 119,686,776 Business-type activities: Charges for services: Airport - - - - Parking facilities system 8,045,592 10,892,706 12,987,938 11,048,191 Sewer system 50,553,992 45,059,794 45,790,283 43,851,403 Stormwater utility 30,345,944 28,044,245 26,313,896 24,258,001 Golf 527,792 478,702 267,337 465,081 Solid waste system 15,346,330 15,034,953 14,537,461 12,671,821 Municipal Housing Agency 1,857,737 1,421,899 1,510,156 1,440,612 Operating grants and contributions: Parking facilities system - - - - Municipal Housing Agency 21,173,380 22,062,606 20,080,393 19,009,341 186 -- 209 of 253 -- Table 2 (Continued) 2017 2016 2015 2014 2013 2012 5,346,957 $ 5,074,250 $ 3,649,823 $ 1,244,125 $ 4,216,793 $ 8,648,949 $ 26,300,446 23,767,246 22,361,431 20,621,045 19,702,584 22,469,564 8,180,904 17,506,167 13,721,310 15,336,088 17,965,653 15,335,824 581,423 1,167,128 627,167 111,905 (99,510) 75,331 20,993 62,121 82,281 66,074 370,881 702,261 4,260,121 2,207,958 435,530 304,870 266,767 48,105,538 4,392,752 5,444,846 4,958,995 3,193,088 1,716,465 1,736,823 1,577,281 837,498 548,963 4,355,332 5,683,249 3,367,430 14,256,747 17,045,179 23,614,653 25,284,550 11,846,672 9,510,431 - - - 6,329 187,401 1,641,705 1,635,555 2,269,613 1,834,137 2,931,224 2,417,417 4,347,444 17,723 - - 250,000 - - 246,980 20,851 20,212 59,180 65,347 72,012 134,038,780 143,977,660 131,621,431 127,707,693 115,020,587 175,132,930 - - - - - 16,984,284 10,626,608 10,632,984 8,887,844 8,256,025 8,915,654 8,863,630 42,171,051 40,227,829 39,205,878 34,874,030 33,606,796 31,434,033 24,938,001 22,141,238 20,573,495 19,624,449 18,564,737 17,713,463 505,667 649,733 137,021 251,752 200,151 435,266 12,881,284 12,383,400 12,294,509 12,222,678 11,975,569 12,230,965 1,523,489 1,441,062 1,514,642 1,668,154 1,407,721 1,295,707 - - - - - 282,117 17,602,214 17,821,648 17,267,565 17,901,651 18,677,807 18,718,280 (Continued) 187 -- 210 of 253 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Capital grants and contributions: Airport - $ - $ - $ - $ Sewer system 561,429 1,636,942 1,001,829 934,186 Stormwater utility 1,261,092 3,419,677 806,872 3,177,112 Golf 3,900 3,000 3,895 3,500 Municipal Housing Agency 1,544,595 926,979 769,078 907,772 Total business-type activities program revenues 131,221,783 128,981,503 124,069,138 117,767,020 Total primary government program revenues 282,974,351 270,117,052 262,462,305 237,453,796 Net (expense) revenue: Governmental activities (203,386,061) (186,138,587) (169,233,343) (189,169,244) Business-type activities 19,917,887 19,467,959 14,485,474 11,419,059 Total primary government net expense (183,468,174) (166,670,628) (154,747,869) (177,750,185) 188 -- 211 of 253 -- Table 2 (Continued) 2017 2016 2015 2014 2013 2012 - $ - $ - $ - $ - $ 2,205,972 $ 846,485 340,943 378,068 498,357 1,731,558 6,809,139 4,275,195 6,003,844 191,525 2,172,789 96,589 6,537,700 1,500 3,000 4,000 6,000 - - 1,107,391 615,879 804,361 606,942 1,664,846 1,010,302 116,478,885 112,261,560 101,258,908 98,082,827 96,841,428 124,520,858 250,517,665 256,239,220 232,880,339 225,790,520 211,862,015 299,653,788 (140,135,025) (135,904,924) (146,687,686) (131,006,925) (150,065,304) (121,204,355) 13,555,640 14,916,522 6,080,964 7,090,212 3,532,236 (221,130,287) (126,579,385) (120,988,402) (140,606,722) (123,916,713) (146,533,068) (342,334,642) (Continued) 189 -- 212 of 253 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 General revenues and other changes in net position: Governmental activities: Taxes: Property taxes, levied for general purposes 156,903,801 $ 142,199,633 $ 139,322,876 $ 122,593,271 $ Hotel/Motel taxes 4,041,075 6,199,754 7,226,054 6,338,200 Property taxes, levied for debt service 27,831,493 25,443,098 29,741,049 30,036,110 Local Option Sales taxes 51,442,395 41,340,012 - - Franchise taxes 14,398,834 18,089,946 19,955,046 20,092,159 Investment earnings 210,503 3,037,955 4,059,878 2,663,865 Gain on sale of capital asset 144,167 - 123,499 3,311,313 Miscellaneous 30,480 (215,232) 2,760 402,555 Transfers--internal activities 15,214,133 (11,657,716) 26,549,362 11,465,780 Total governmental activities 270,216,881 224,437,450 226,980,524 196,903,253 Business-type activities: Investment earnings 175,595 1,725,493 3,209,452 2,002,885 Miscellaneous - 161,526 20,512 4,062 Gain (Loss) on sale of capital asset 16,034 122,627 11,907,312 160,930 Transfers--internal activities (15,214,133) 11,657,716 (26,549,362) (11,465,780) Total business-type activities (15,022,504) 13,667,362 (11,412,086) (9,297,903) Total primary government 255,194,377 238,104,812 215,568,438 187,605,350 Changes in net position: Governmental activities 66,830,820 38,298,863 57,747,181 7,734,009 Business-type activities 4,895,383 33,135,321 3,073,388 2,121,156 Total primary government 71,726,203 $ 71,434,184 $ 60,820,569 $ 9,855,165 $ 190 -- 213 of 253 -- Table 2 (Continued) 2017 2016 2015 2014 2013 2012 117,100,978 $ 113,624,373 $ 111,620,593 $ 113,060,166 $ 111,126,341 $ 108,767,775 $ 5,944,042 6,059,311 5,783,917 5,105,780 4,758,796 4,366,762 30,149,073 28,329,549 27,790,702 29,813,410 30,044,536 28,160,613 - - - - - - 19,118,675 17,972,341 18,780,277 14,581,925 13,063,992 11,966,544 2,946,635 2,800,540 2,141,765 2,328,387 2,732,385 2,400,126 309,930 2,153,413 921,273 777,015 661,158 721,566 424,411 345,694 729,515 21,343 487,835 455,780 (425,952) (2,418,000) (3,156,233) (267,622) 1,117,036 14,002,737 175,567,792 168,867,221 164,611,809 165,420,404 163,992,079 170,841,903 1,266,342 779,503 713,931 621,051 367,897 316,323 2,440 64,311 543,131 - - 1,252 113,526 630,279 264,476 140,440 90,002 (71,731) 425,952 2,418,000 3,156,233 267,622 (1,117,036) (14,002,737) 1,808,260 3,892,093 4,677,771 1,029,113 (659,137) (13,756,893) 177,376,052 172,759,314 169,289,580 166,449,517 163,332,942 157,085,010 35,432,767 32,962,297 17,924,123 34,413,479 13,926,775 49,637,548 15,363,900 18,808,615 10,758,735 8,119,325 2,873,099 (234,887,180) 50,796,667 $ 51,770,912 $ 28,682,858 $ 42,532,804 $ 16,799,874 $ (185,249,632) $ 191 -- 214 of 253 -- CITY OF DES MOINES, IOWA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Governmental activities: Charges for services: Public safety 28,711,991 $ 27,373,638 $ 23,854,592 $ 19,856,782 $ Public works 4,102,995 2,978,646 4,499,746 4,542,178 Health and social services 151,050 275,145 646,862 427,177 Culture and recreation 3,274,911 2,791,514 3,202,191 3,713,972 Community and economic development 700,283 226,615 1,428,558 1,887,540 General Government 32,637,292 33,628,699 35,160,101 29,163,845 Interest on long-term debt - - - - Operating grants and contributions: Public safety 4,507,463 3,309,766 4,524,279 5,022,809 Public works 30,061,407 28,288,240 27,904,610 27,027,302 Health and social services 10,205,863 7,999,801 9,056,185 6,526,872 Culture and recreation 978,651 744,791 685,195 762,771 Community and economic development 6,892,924 31,015 45,505 69,846 General Government 8,800,040 3,160,317 2,338,555 3,267,989 Interest on long-term debt 1,479,221 3,053,724 5,346,333 4,358,560 Capital grants and contributions Public safety 100,010 203,178 310,457 563,311 Public works 17,797,731 21,590,076 16,645,845 11,725,740 Health and social services - - - - Culture and recreation 850,736 4,515,930 744,153 770,082 Community and economic development - 962,639 - - General Government 500,000 1,815 2,000,000 - Total governmental activities program revenue 151,752,568 141,135,549 138,393,167 119,686,776 Business-type activities: Charges for services: Airport - - - - Parking facilities system 8,045,592 10,892,706 12,987,938 11,048,191 Sewer system 50,553,992 45,059,794 45,790,283 43,851,403 Stormwater utility 30,345,944 28,044,245 26,313,896 24,258,001 Golf 527,792 478,702 267,337 465,081 Solid waste system 15,346,330 15,034,953 14,537,461 12,671,821 Municipal Housing Agency 1,857,737 1,421,899 1,510,156 1,440,612 192 -- 215 of 253 -- Table 3 2017 2016 2015 2014 2013 2012 22,548,480 $ 22,916,078 $ 20,807,818 $ 19,420,273 $ 19,101,131 $ 17,034,087 $ 7,918,911 11,473,360 9,051,823 16,278,364 8,671,944 11,786,989 535,310 157,414 746,912 861,606 12,196 1,284,516 2,864,389 4,442,482 3,826,159 5,284,120 5,234,705 5,531,829 158,495 1,478,853 656,065 1,285,139 412,254 630,461 32,919,680 27,627,092 24,529,091 10,814,381 17,248,638 22,851,736 275,633 479,524 149,061 - - - 5,346,957 5,074,250 3,649,823 1,244,125 4,216,793 8,648,949 26,300,446 23,767,246 22,361,431 20,621,045 19,702,584 22,469,564 8,180,904 17,506,167 13,721,310 15,336,088 17,965,653 15,335,824 581,423 1,167,128 627,167 111,905 (99,510) 75,331 20,993 62,121 82,281 66,074 370,881 702,261 4,260,121 2,207,958 435,530 304,870 266,767 48,105,538 4,392,752 5,444,846 4,958,995 3,193,088 1,716,465 1,736,823 1,577,281 837,498 548,963 4,355,332 5,683,249 3,367,430 14,256,747 17,045,179 23,614,653 25,284,550 11,846,672 9,510,431 - - - 6,329 187,401 1,641,705 1,635,555 2,269,613 1,834,137 2,931,224 2,417,417 4,347,444 17,723 - - 250,000 - - 246,980 20,851 20,212 59,180 65,347 72,012 134,038,780 143,977,660 131,621,431 127,707,693 115,020,587 175,132,930 - - - - - 16,984,284 10,626,608 10,632,984 8,887,844 8,256,025 8,915,654 8,863,630 42,171,051 40,227,829 39,205,878 34,874,030 33,606,796 31,434,033 24,938,001 22,141,238 20,573,495 19,624,449 18,564,737 17,713,463 505,667 649,733 137,021 251,752 200,151 435,266 12,881,284 12,383,400 12,294,509 12,222,678 11,975,569 12,230,965 1,523,489 1,441,062 1,514,642 1,668,154 1,407,721 1,295,707 193 -- 216 of 253 -- CITY OF DES MOINES, IOWA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Operating grants and contributions: Parking facilities system - $ - $ - $ - $ Municipal Housing Agency 21,173,380 22,062,606 20,080,393 19,009,341 Capital grants and contributions: Airport - - - - Sewer system 561,429 1,636,942 1,001,829 934,186 Stormwater utility 1,261,092 3,419,677 806,872 3,177,112 Golf 3,900 3,000 3,895 3,500 Municipal Housing Agency 1,544,595 926,979 769,078 907,772 Total business-type activities program revenues 131,221,783 128,981,503 124,069,138 117,767,020 Total primary government program revenues 282,974,351 $ 270,117,052 $ 262,462,305 $ 237,453,796 $ 194 -- 217 of 253 -- Table 3 (continued) 2017 2016 2015 2014 2013 2012 - $ - $ - $ - $ - $ 282,117 $ 17,602,214 17,821,648 17,267,565 17,901,651 18,677,807 18,718,280 - - - - - 2,205,972 846,485 340,943 378,068 498,357 1,731,558 6,809,139 4,275,195 6,003,844 191,525 2,172,789 96,589 6,537,700 1,500 3,000 4,000 6,000 - - 1,107,391 615,879 804,361 606,942 1,664,846 1,010,302 116,478,885 112,261,560 101,258,908 98,082,827 96,841,428 124,520,858 250,517,665 $ 256,239,220 $ 232,880,339 $ 225,790,520 $ 211,862,015 $ 299,653,788 $ 195 -- 218 of 253 -- CITY OF DES MOINES, IOWA FUND BALANCES (DEFICITS), GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 General Fund: Nonspendable 4,541,429 $ 5,655,589 $ 5,400,481 $ 5,795,608 $ Restricted 1,432,995 - 175,380 143,875 Committed 1,000,000 1,000,000 1,000,000 1,000,000 Unassigned 53,371,093 38,735,708 44,374,483 32,604,828 Total General Fund 60,345,517 $ 45,391,297 $ 50,950,344 $ 39,544,311 $ All Other Governmental Funds: Nonspendable 4,474,133 $ 4,972,291 $ 4,566,594 $ 4,738,470 $ Restricted 73,582,816 61,179,480 41,857,638 26,700,446 Committed 91,217,562 56,476,166 44,641,966 45,000,829 Unassigned (1,820,553) (2,302,296) (1,309,108) (632,429) Total all other government funds 167,453,958 $ 120,325,641 $ 89,757,090 $ 75,807,316 $ 196 -- 219 of 253 -- Table 4 2017 2016 2015 2014 2013 2012 6,440,820 $ 7,070,710 $ 7,716,763 $ 8,092,922 $ 8,209,961 $ 9,489,312 $ 143,875 143,875 143,875 285,478 750,000 500,000 1,400,000 1,250,000 1,200,000 - 250,000 - 27,775,452 28,308,731 25,362,143 20,525,072 17,057,774 15,613,514 35,760,147 $ 36,773,316 $ 34,422,781 $ 28,903,472 $ 26,267,735 $ 25,602,826 $ 4,623,609 $ 4,236,516 $ 4,319,701 $ 4,175,752 $ 3,504,050 $ 3,991,588 $ 46,086,174 22,226,428 17,075,970 8,712,228 7,639,753 27,995,476 44,957,761 33,591,823 29,501,856 32,883,290 38,519,303 79,926,261 (606,761) (5,633,375) (683,569) (147,279) (6,557,607) (6,875,886) 95,060,783 $ 54,421,392 $ 50,213,958 $ 45,623,991 $ 43,105,499 $ 105,037,439 $ 197 -- 220 of 253 -- CITY OF DES MOINES, IOWA CHANGES IN FUND BALANCES, (DEFICITS) GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Unaudited) 2021 2020 2019 2018 Revenues: Taxes 222,972,083 $ 215,182,497 $ 176,289,979 $ 158,967,581 $ Franchise fees 14,398,834 18,089,946 19,955,046 20,092,159 Licenses and permits 4,002,772 4,427,534 4,804,484 4,740,483 Fines and Forfeitures 6,868,173 6,494,366 7,212,504 3,889,340 Charges for sales and services 21,177,338 18,210,351 16,201,286 14,971,112 Use of money and property 2,410,860 5,055,134 5,997,366 4,702,896 Miscellaneous 22,354,985 23,087,044 21,875,867 21,843,232 Intergovernmental 97,724,525 62,893,445 66,248,789 57,744,429 Total revenue 391,909,570 353,440,317 318,585,321 286,951,232 Expenditures: Public safety 122,151,073 119,537,011 118,212,221 110,575,960 Public works 31,645,681 32,468,112 27,692,137 28,729,788 Health and social services 10,708,268 9,377,836 9,198,093 9,272,889 Culture and recreation 22,001,347 21,380,898 21,528,737 20,245,050 Community and economic development 35,459,524 26,065,349 24,125,445 42,089,399 General Government 36,105,533 33,663,506 30,445,685 31,011,748 Capital outlay 132,646,680 82,843,393 80,919,632 59,942,356 Debt service: Principal retirement 106,888,766 91,707,908 46,954,838 109,305,337 Interest and fiscal charges 17,772,597 18,624,053 18,140,014 17,592,139 Total expenditures 515,379,469 435,668,066 377,216,802 428,764,666 Excess (deficiency) of revenue over expenditures (123,469,899) (82,227,749) (58,631,481) (141,813,434) Other financing sources (uses): Transfers in 258,318,979 166,531,129 147,886,324 136,250,660 General obligation bonds issued 154,785,000 106,060,000 45,640,000 97,805,000 Other debt issued 111,555 - 8,326,000 4,000,000 Premium on bond issue 14,067,917 12,589,360 1,991,865 7,589,148 Proceeds from capital asset sale 54,513 241,270 1,451,476 5,169,966 Proceeds from damage claims 30,477 4,339 28,585 314,236 Transfers out (243,216,401) (178,188,845) (121,336,962) (124,784,880) Total other financing sources (uses) 184,152,040 107,237,253 83,987,288 126,344,130 Net changes in fund balance 60,682,141 $ 25,009,504 $ 25,355,807 $ (15,469,304) $ Debt service as a percentage of noncapital expenditures 32.6% 31.3% 22.0% 34.4% 198 -- 221 of 253 -- Table 5 2017 2016 2015 2014 2013 2012 153,194,093 $ 148,013,233 $ 145,195,212 $ 147,979,356 $ 145,929,673 $ 141,295,150 $ 19,118,675 17,972,341 18,780,277 14,581,925 13,063,992 11,966,544 5,258,556 6,055,968 4,319,383 3,887,499 3,530,391 3,269,769 6,831,709 6,520,277 6,173,117 5,795,248 5,594,223 5,208,910 18,440,168 19,125,930 19,450,317 19,336,054 18,731,338 18,812,361 2,946,635 2,800,540 2,141,765 2,328,387 2,732,385 2,400,126 26,549,885 25,847,782 21,160,461 19,700,246 20,960,853 28,328,520 69,681,949 65,782,573 71,359,573 74,392,864 63,827,825 80,999,710 302,021,670 292,118,644 288,580,105 288,001,579 274,370,680 292,281,090 109,138,129 105,026,519 100,755,434 98,386,596 99,589,431 95,432,399 33,833,455 30,094,569 29,187,711 29,864,165 33,505,738 30,744,446 9,077,016 18,337,890 15,014,840 15,687,215 19,302,953 17,376,407 20,396,748 22,955,145 20,981,303 21,286,732 21,857,828 21,877,142 18,819,812 19,969,567 19,138,842 19,716,976 20,293,135 19,430,143 25,178,926 21,995,185 20,782,959 58,722,127 18,105,052 22,942,437 51,571,361 45,625,899 50,937,132 68,300,228 56,199,324 61,677,986 53,841,896 70,494,428 62,732,504 55,061,631 53,745,701 74,160,314 18,036,562 18,369,838 19,212,403 17,684,652 17,827,371 19,010,017 339,893,905 352,869,040 338,743,128 384,710,322 340,426,533 362,651,291 (37,872,235) (60,750,396) (50,163,023) (96,708,743) (66,055,853) (70,370,201) 104,017,243 83,413,129 78,886,254 88,079,063 61,604,867 58,309,686 72,370,000 61,770,000 54,660,000 96,970,000 - 31,135,000 - - 1,200,000 - 1,880,000 942,038 4,163,796 4,595,136 5,545,738 3,743,709 - 2,663,005 1,083,392 3,208,250 1,543,239 1,048,787 1,695,537 917,859 307,221 337,876 479,555 368,098 96,249 103,105 (104,443,195) (85,831,129) (82,042,487) (88,346,685) (60,487,831) (64,329,843) 77,498,457 67,493,262 60,272,299 101,862,972 4,788,822 29,740,850 39,626,222 $ 6,742,866 $ 10,109,276 $ 5,154,229 $ (61,267,031) $ (40,629,351) $ 24.9% 28.9% 28.5% 23.0% 25.2% 31.0% 199 -- 222 of 253 -- CITY OF -- 223 of 253 -- CITY OF DES MOINES, IOWA Table 6 TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Unaudited) MONIES GENERAL LOCAL HOTEL/ SPECIAL MOBILE AND FISCAL PROPERTY OPTION MOTEL UTILITY HOME CREDITS YEAR TAXES SALES TAX TAX EXCISE TAX TAX TAX TOTAL TAXES 2020-21 181,410,292 $ 34,195,714 $ 4,041,075 $ 3,196,098 $ 128,904 $ --- $ 222,972,083 $ 2019-20 164,205,563 41,340,012 6,199,754 3,286,879 108,344 41,946 215,182,497 2018-19 165,486,042 18,850 7,226,054 3,442,351 117,640 17,892 176,308,829 2017-18 148,955,894 19,267 6,338,200 3,545,742 111,539 16,206 158,986,848 2016-17 143,428,514 19,265 5,944,042 3,687,646 116,160 17,731 153,213,358 2015-16 137,970,237 --- 6,059,311 3,830,805 113,745 39,135 148,013,233 2014-15 134,938,971 --- 5,783,917 4,328,395 116,770 27,159 145,195,212 2013-14 138,924,204 --- 5,105,780 3,806,577 112,613 30,182 147,979,356 2012-13 137,153,184 --- 4,758,396 3,870,710 114,851 32,532 145,929,673 2011-12 132,970,699 --- 4,366,762 3,812,245 120,644 24,800 141,295,150 Change 2010-2020 36.429% N/A -7.458% -16.162% 6.847% -100.000% 57.806% Source: City records. 201 -- 224 of 253 -- CITY OF DES MOINES, IOWA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) Valuation Residential Commercial Multi-Residential Industrial Farm Year Property Property Property Property Property 2020 9,411,437,272 $ 3,713,734,882 $ 640,669,560 $ 284,532,510 $ 8,923,390 $ 2019 9,352,006,786 3,659,230,072 637,590,926 262,478,000 9,008,210 2018 8,387,920,278 3,356,340,218 526,834,720 239,752,265 12,200,160 2017 8,316,000,972 3,226,654,345 497,515,480 221,176,310 12,313,940 2016 7,602,629,792 2,887,659,189 434,948,600 203,130,168 12,883,320 2015 7,554,660,667 2,794,190,934 430,752,232 204,247,187 12,892,780 2014 7,246,808,590 3,028,517,860 - 192,952,200 13,388,970 2013 7,196,629,860 2,995,848,700 - 192,434,180 12,766,840 2012 7,316,677,770 3,009,375,580 - 190,078,540 10,324,900 2011 7,263,391,920 2,999,787,340 - 188,487,690 10,057,750 Source: State of Iowa Department of Management 202 -- 225 of 253 -- Table 7 Total Taxable Total Actual Taxable Value Railway Utilities Assessed Direct Percent Taxable as a % of Property Property Value Tax Rate Growth Value Assessed Value 24,019,093 $ 431,958,354 $ 14,515,275,061 $ 16.61156 $ 0.98% 9,377,544,953 $ 65% 22,751,525 431,002,818 14,374,068,337 16.61156 10.95% 9,365,412,911 65% 20,451,600 412,180,202 12,955,679,443 16.64000 2.09% 8,644,228,282 67% 18,996,894 398,263,684 12,690,921,625 17.24000 9.78% 8,360,172,170 66% 19,675,108 399,561,830 11,560,488,007 16.92000 1.32% 7,711,757,167 67% 17,822,928 394,961,480 11,409,528,208 16.92000 4.95% 7,531,683,825 66% 16,110,454 373,862,719 10,871,640,793 16.92000 1.17% 7,205,252,588 66% 16,195,058 331,982,463 10,745,857,101 16.92001 (1.71)% 7,214,656,648 67% 16,509,244 389,559,024 10,932,525,058 16.91982 1.08% 7,337,632,507 67% 15,154,668 338,306,985 10,815,186,353 16.58000 (3.26)% 7,146,015,644 66% 203 -- 226 of 253 -- CITY OF DES MOINES, IOWA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (Unaudited) Overlapping Rates Tax Employee Debt Broadlawns Ag Polk Year General Transit Insurance Emergency Benefits Service Total Polk County Extension County Levied Fund Fund Fund Fund Fund Fund Direct County Hospital District Assessor 2020-2021 8.10000 0.00000 0.28537 0.00000 5.26082 2.96537 16.61156 7.30880 2.67405 0.03426 0.24836 2019-2020 8.10000 0.00000 0.28537 0.00000 5.26082 2.96537 16.61156 7.30880 2.67405 0.03502 0.25455 2018-2019 8.10000 0.00000 0.30000 0.00000 5.27000 2.97000 16.64000 7.30880 2.77513 0.03578 0.24836 2017-2018 8.10000 0.00000 0.30000 0.00000 5.27000 3.57000 17.24000 7.30880 2.77513 0.03690 0.25471 2016-2017 8.10000 0.00000 0.29000 0.00000 4.52000 4.01000 16.92000 7.30880 2.77545 0.03985 0.27220 2015-2016 8.10000 0.00000 0.29000 0.00000 4.60000 3.93000 16.92000 7.30880 3.21296 0.04102 0.27920 2014-2015 8.10000 0.00000 0.29000 0.00000 4.64000 3.89000 16.92000 7.16880 3.11769 0.04061 0.27750 2013-2014 8.10000 0.00000 0.29000 0.00000 4.42000 4.11001 16.92001 6.94381 2.99567 0.03945 0.27822 2012-2013 8.10000 0.00000 0.29000 0.00000 4.31000 4.21982 16.91982 6.80992 2.97819 0.03866 0.24382 2011-2012 8.10000 0.00000 0.30122 0.00000 4.24945 3.92933 16.58000 6.80992 2.92193 0.03696 0.24628 Source: Polk County Auditor and Polk County Treasurer Overlapping rates are those of state, local, and county governments that apply to property owners within the City of Des Moines. Not all overlapping rates apply to all City property owners, although Polk County, Broadlawns Hospital, Ag Extension District, County Assessor, State of Iowa, and Area XI Community College rates apply to all property owners. The school district rates apply to owners depending upon the location of property within the city limits. City Direct Rates 204 -- 227 of 253 -- Table 8 Overlapping Rates Des Moines Carlisle SE Polk Saydel Johnston WDM Area XI Community Community Community Community Community Community State of Community Regional School School School School Schools School Iowa College Transit District District District District District Disrtict 0.00280 0.63533 0.94475 18.61192 17.81025 15.44256 12.89000 17.75113 13.15863 0.00280 0.63533 0.94475 18.61192 17.81025 15.44256 12.89000 17.75113 13.15863 0.00280 0.65249 0.93975 18.60686 17.85352 15.58596 12.89000 18.35192 13.16229 0.00290 0.69468 0.91475 18.60074 17.85352 16.50058 12.89000 18.35111 13.27000 0.00330 0.72334 0.82400 18.50586 17.91087 20.31754 12.76417 18.35317 13.26872 0.00330 0.67574 0.80400 18.42809 17.91101 20.65563 12.76105 18.35491 13.24189 0.00330 0.65724 0.73900 18.14592 17.91215 21.65866 12.87969 18.36026 13.26572 0.00330 0.69120 0.67400 18.34842 17.91246 21.65866 12.87971 17.35444 13.26452 0.00330 0.58466 0.59400 18.34845 18.57766 21.65866 13.47994 17.35008 13.30184 0.00320 0.59018 0.44400 18.34848 20.65059 21.65866 13.97969 17.34599 13.84954 205 -- 228 of 253 -- CITY OF -- 229 of 253 -- CITY OF DES MOINES, IOWA Table 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Unaudited) Collected Within the Fiscal Year of the Levy Total Collections to Date Taxes Levied Delinquent Fiscal Year for the Percentage Tax Percentage Ended June 30 Tax Year Tax Year Amount of Levy Collections1 Amount of Levy 2021 2019 181,437,751 $ 180,139,959 $ 99.28% 1,154,790 $ 181,294,749 $ 99.92% 2020 2018 165,645,341 164,022,582 99.02% 1,413,997 164,085,107 99.06% 2019 2017 165,655,632 165,284,619 99.78% 105,715 165,390,334 99.84% 2018 2016 149,773,091 148,724,279 99.30% 47,275 148,771,554 99.33% 2017 2015 143,290,177 143,046,188 99.83% 126,460 143,305,075 100.01% 2016 2014 146,521,326 144,200,974 98.42% - 144,200,974 98.42% 2015 2013 141,425,834 141,068,543 99.75% 181,084 141,249,627 99.88% 2014 2012 140,944,915 138,802,425 98.48% 635,538 139,437,963 98.93% 2013 2011 137,005,743 136,853,184 99.89% 109,464 136,962,648 99.97% 2012 2010 137,113,954 136,716,970 99.71% 372,019 137,088,989 99.98% Source: Polk County, City Records 1 Beginning in collection year 2017, delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Polk County Treasurer by levy year. 207 -- 230 of 253 -- CITY OF -- 231 of 253 -- CITY OF DES MOINES, IOWA Table 10 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND TEN YEARS AGO (Unaudited) 2021* 2011 Percentage Percentage of Total County of Total County Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Principal Life Insurance Co. $296,394,714 1 3.53% $257,537,900 1 4.42% MidAmerican Energy 176,229,000 2 2.10% Nationwide Mutual Life 158,979,240 3 1.89% 193,336,200 2 3.32% Wellmark, Inc. 119,748,600 4 1.43% 63,290,000 5 1.09% Wells Fargo Properties, Inc 109,629,900 5 1.31% 99,471,700 4 1.71% Employers Mutual Casualty Co. 91,449,900 6 1.09% 51,064,070 6 0.88% Linden Street Investments LLC 82,260,000 7 0.98% Polk Co./IEC Hotel Corp 37,841,528 8 0.45% Federal Home Loan Bank of DSM 34,452,000 9 0.41% SRE Bulldog Hotel Owner LLC 31,140,000 10 0.37% Mercy Medical Plaza 164,193,000 3 2.82% Iowa Methodist Medical Center 50,903,000 7 0.87% Ruan Center 38,675,000 8 0.66% Meredith Corporation 34,961,000 9 0.60% Hubbell Realty Co. 30,428,850 10 0.52% Total $1,138,124,882 13.56% $983,860,720 16.89% Source: Polk County Auditor *Taxable valuation of 1/1/2020 for fiscal year 2021 209 -- 232 of 253 -- CITY OF DES MOINES, IOWA RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING BY TYPE LAST TEN FISCAL YEARS (Unaudited) General Less Amount Net Fiscal Obligation Available in General Loans Notes Revenue Year Bonds Debt Service Bonded Debt (A) Payable Payable Bonds 2021 500,436,317 $ 14,775,110 $ 485,661,207 $ 6,852,000 $ 3,269,426 $ - $ 2020 420,295,504 13,483,866 406,811,638 7,610,000 4,311,444 22,391,221 2019 397,397,090 2,046,509 395,350,581 8,326,000 5,228,354 23,271,867 2018 390,289,790 3,982,978 386,306,812 8,360,000 5,763,190 25,116,614 2017 397,716,254 19,909,175 377,807,079 8,391,000 2,442,527 26,890,402 2016 376,029,634 4,141,941 371,887,693 8,420,000 3,105,424 28,578,302 2015 381,215,119 2,135,271 379,079,848 8,449,000 3,810,852 30,190,400 2014 384,225,358 1,330,845 382,894,513 8,476,000 3,396,356 31,750,878 2013 338,390,683 415,784 337,974,899 8,500,000 4,188,987 33,247,906 2012 392,467,179 21,217,274 371,249,905 8,500,000 3,299,688 34,728,075 (1) Per capita numbers for current year are based on 2020 census data all others are based upon 2010 census data Note: Details regarding the City's outstanding debt may be found in the notes to the basic financial statements. Governmental Activities 210 -- 233 of 253 -- Table 11 Net General Percentage General Total Percentage of Total General Bonded of Actual Notes Obligation Revenue Capital Primary Per Capita Per Bonded Debt Per Property Payable Bonds (B) Bonds Leases Government Income(1) Capita(1) Debt (A+B) Capita Value 47,347,204 $ 21,147,778 $ 80,927,176 $ 21,389,984 $ 681,369,885 $ 11.14% 3,182 506,808,985 $ 2,367 $ 3.49% 34,243,930 7,320,212 62,351,904 22,534,981 581,059,196 10.87% 2,856 414,131,850 2,036 2.89% 15,166,772 20,315,008 67,218,277 22,534,981 559,458,349 10.46% 2,750 415,665,589 2,043 3.52% 88,716 24,341,714 30,691,401 22,534,981 507,186,406 9.49% 2,493 410,648,526 2,018 3.78% 262,403 26,940,897 47,848,636 - 510,492,119 9.55% 2,509 404,747,976 1,989 3.73% 431,243 29,517,277 39,093,893 - 485,175,773 9.07% 2,385 401,404,970 1,973 3.70% 595,373 32,074,950 44,666,175 - 501,001,869 9.37% 2,463 411,154,798 2,021 3.78% 1,358,023 34,618,703 50,687,942 - 514,513,260 9.62% 2,529 417,513,216 2,052 3.89% 2,110,860 37,604,556 50,263,584 - 474,306,576 10.17% 2,332 375,579,455 1,846 3.44% 4,076,232 - 70,039,940 - 513,111,114 11.00% 2,522 371,249,905 1,825 3.43% Business-Type Activities 211 -- 234 of 253 -- CITY OF -- 235 of 253 -- CITY OF DES MOINES, IOWA Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CURRENT YEAR (Unaudited) NET PERCENTAGE GOVERNMENTAL APPLICABLE CITY OF ACTIVITIES TO THIS DES MOINES LONG-TERM DEBT GOVERNMENTAL SHARE OF NAME OF GOVERNMENTAL UNIT OUTSTANDING * UNIT DEBT City of Des Moines 510,557,743 $ 100.00 % 510,557,743 $ Polk County 156,258,713 30.66 47,908,921 School Districts: Carlisle 15,830,000 21.76 3,444,608 Johnston 43,465,000 5.85 2,542,703 Saydel 24,650,000 2.23 549,695 Southeast Polk 96,000,000 6.49 6,230,400 Area XI Community College 95,175,000 16.50 15,703,875 Total overlapping 431,378,713 76,380,202 Total direct and overlapping 941,936,456 $ 586,937,945 $ *Excludes revenue-supported debt, tax and aid anticipation certificates and school energy loans. Source: Polk County Auditor, DMACC, individual school districts and the Iowa Dept. of Management 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 Des Moines. 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 of, and therefore responsible for repaying the debt of, each overlapping government. 213 -- 236 of 253 -- CITY OF DES MOINES, IOWA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (Unaudited) Legal Debt Margin Calculation for Fiscal Year 2021 Assessed value 14,505,147,841 $ Debt limit (5% of assessed value) 725,257,392 Debt applicable to limit: General obligation bonds 487,460,000 (1) Other Legal Indebtedness (TIF Rebates and Leases) 26,861,570 Total net debt applicable to limit 514,321,570 Legal debt margin 210,935,822 $ 2021 2020 2019 2018 Debt limit 725,257,392 $ 716,441,672 $ 633,944,619 $ 577,394,243 $ Total net debt applicable to limit 514,321,570 514,081,949 415,647,116 406,792,071 Legal debt margin 210,935,822 $ 202,359,723 $ 170,602,172 $ 144,706,876 $ Total net debt applicable to the limit as a percentage of debt limit 70.92% 71.75% 70.45% 74.60% (1) Series 2017C is annually appropriated, and as such, only the FY21 principal and interest payment are included in the general obligation bonds total 214 -- 237 of 253 -- Table 13 2017 2016 2015 2014 2013 2012 569,816,717 $ 542,887,856 $ 536,568,585 $ 545,879,527 $ 541,844,172 $ 558,198,015 $ 425,109,841 403,990,465 410,589,515 420,745,764 376,513,284 356,554,826 138,897,391 $ 125,979,070 $ 125,133,763 $ 165,330,888 $ 185,289,346 $ 204,306,551 $ 74.42% 76.52% 77.08% 69.49% 63.88% 64.04% 215 -- 238 of 253 -- CITY OF DES MOINES, IOWA PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS (Unaudited) Sanitary Sewer Bonds Fiscal Operating Less Operating Net Available Debt Service Year Revenues Expenses Revenue Principal Interest Coverage 2021 43,402,971 $ 25,081,080 $ 18,321,891 $ 1,843,000 $ 351,540 $ 8.35 2020 44,596,347 24,769,557 19,826,790 1,331,000 313,310 12.06 2019 43,235,162 24,066,934 19,168,228 4,743,000 352,673 3.76 2018 42,256,608 20,843,397 21,413,211 6,838,879 4,267,184 1.93 2017 40,817,623 13,468,591 27,349,032 6,344,619 3,849,276 2.68 2016 40,227,829 16,383,252 23,844,577 5,910,380 4,190,492 2.36 2015 36,695,644 14,041,889 22,653,755 6,061,897 4,735,653 2.10 2014 34,800,047 15,736,151 19,063,896 17,746,569 4,334,845 0.86 2013 33,585,154 15,867,875 17,717,279 4,510,011 4,436,786 1.98 2012 31,372,051 16,455,238 14,916,813 4,465,544 4,746,394 1.62 216 -- 239 of 253 -- Table 14 Stormwater Bonds Operating Less Operating Net Available Debt Service Revenues Expenses Revenue Principal Interest Coverage 29,191,308 $ 12,770,563 $ 16,420,745 $ 5,432,000 $ 3,206,728 $ 1.90 27,891,788 12,810,190 15,081,598 3,421,000 2,442,658 2.57 26,213,274 12,324,026 13,889,248 3,810,000 2,275,790 2.28 24,368,563 10,058,517 14,310,046 4,480,000 1,272,462 2.49 23,590,839 9,006,510 12,374,772 3,135,000 1,205,494 2.85 22,141,238 9,766,466 11,599,092 2,970,000 907,398 2.99 20,569,761 8,970,669 11,483,423 3,117,918 990,264 2.80 19,677,703 8,194,280 9,866,268 3,029,222 1,070,579 2.41 18,283,969 8,417,701 9,153,688 2,955,587 1,148,870 2.23 17,957,553 8,803,865 8,747,484 2,892,012 1,225,294 2.12 217 -- 240 of 253 -- CITY OF -- 241 of 253 -- CITY OF DES MOINES, IOWA Table 15 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (Unaudited) Fiscal Year Median Per Capita Ended Family Income Median School Unemployment June 30, Population(1) Income(1) (State of Iowa) Age(1) Enrollment (3) Rate(2) 2021 214,133 $53,859 $33,107 35.2 31,621 4.7% 2020 203,443 51,851 31,559 33.5 32,545 9.2% 2019 203,443 51,851 30,865 33.5 32,789 2.6% 2018 203,443 51,851 30,047 33.5 33,057 2.4% 2017 203,443 51,851 28,628 33.5 32,979 3.1% 2016 203,443 51,851 26,280 33.5 32,582 3.8% 2015 203,443 51,851 26,280 33.5 32,396 3.4% 2014 203,443 51,851 26,280 33.5 32,413 4.1% 2013 203,443 51,851 26,280 33.5 32,062 4.7% 2012 203,443 51,851 26,280 33.5 31,275 5.0% Sources: 1. US Census Bureau. 2. U.S. Bureau of Labor Statistics. 3. Des Moines Public Schools. Notes: The demographic statistic is being added to the report. Personal Income data is not available. 219 -- 242 of 253 -- CITY OF -- 243 of 253 -- CITY OF DES MOINES, IOWA Table 16 PRINCIPAL EMPLOYERS GREATER DES MOINES CURRENT YEAR (Unaudited) Percentage Number of of Total City Number of Employer Employees* Rank Employment Employees Rank Wells Fargo 13,500 1 3.9% 13,500 1 Unity Point Health Partners 8,708 2 2.5% 5,505 4 State of Iowa 7,700 3 2.2% Principal Financial Group 6,500 4 1.9% 6,131 3 HyVee Food Stores 6,400 5 1.8% 2,100 9 Des Moines Public Schools 5,200 6 1.5% 4,967 6 Nationwide/Allied Insurance 4,525 7 1.3% 5,000 5 MercyOne 4,276 8 1.2% 7,100 2 John Deere Companies 3,500 9 1.0% 3,100 7 Corteva Agriscience 2,500 10 0.7% Dupont Pioneer 2,849 8 Kum and Go 1,820 10 Total employment** 347,554 Source: *Greater Des Moines Partnership **Bureau of Labor Statistics - Metropolitan Area ***City Records 2020* 2013*** 221 -- 244 of 253 -- CITY OF DES MOINES FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTIONS LAST TEN FISCAL YEARS (Unaudited) FUNCTIONS/PROGRAMS 2021 2020 2019 2018 GOVERNMENTAL FUND TYPES Public safety Police Department 446.0 446.0 444.0 448.0 Fire Department 306.0 303.0 296.0 295.0 Development and Neighborhood Services 62.9 57.9 54.0 54.9 Total public safety 814.9 806.9 794.0 797.9 Public works Engineering 100.0 97.0 95.0 90.0 Public Works Department 86.1 86.1 86.1 88.0 Total public works 186.1 183.1 181.1 178.0 Health and social services Neighborhood Services Grants 22.9 25.9 26.7 25.9 Human Rights 6.0 5.0 5.0 5.0 Total health and social services 28.9 30.9 31.7 30.9 Culture and recreation Parks Department 52.0 51.0 50.0 49.0 Public Libraries 65.0 64.0 59.0 56.0 Total culture and recreation 117.0 115.0 109.0 105.0 Community and economic development Development Services 24.0 7.0 7.0 7.0 Total Community and economic development 24.0 7.0 7.0 7.0 General government City Clerk 7.0 7.0 7.0 7.0 City Manager 41.1 39.1 35.0 36.0 Finance Department 21.0 22.0 22.0 22.0 Human Resources 11.0 11.0 11.0 11.0 Information Technology 35.0 34.0 33.0 31.0 Legal 21.3 21.3 20.3 20.3 Mayor and Council 7.0 7.0 7.0 7.0 Parks Department 9.0 9.0 9.0 9.0 Total general government 152.4 150.4 144.3 143.3 Total governmental fund types 1323.3 1293.3 1267.1 1262.1 PROPRIETARY FUNDS Airport 17.0 17.0 17.0 17.0 Parking facilities system 14.0 14.0 14.0 14.0 Sewer system 55.5 54.3 54.6 54.3 Stormwater utility 64.1 65.3 64.7 63.7 Solid waste system 49.8 49.8 49.6 49.0 Municipal Housing Agency 35.0 34.0 34.0 34.0 Internal service funds 63.0 63.0 61.0 60.0 Total proprietary funds 298.4 297.4 294.9 292.0 Total City employment 1621.7 1590.7 1562.0 1554.1 Source: City records. 222 -- 245 of 253 -- Table 17 2017 2016 2015 2014 2013 2012 448.0 448.0 450.0 450.0 452.0 460.0 295.0 283.0 283.0 283.0 283.0 283.0 50.1 44.7 45.7 45.4 46.6 48.4 793.1 775.7 778.7 778.4 781.6 791.4 86.8 84.8 84.5 85.5 88.5 92.0 87.0 86.0 86.0 86.0 90.0 94.0 173.8 170.8 170.5 171.5 178.5 186.0 27.7 27.1 26.4 27.6 28.5 30.6 5.0 4.0 3.0 3.0 3.0 3.0 32.7 31.1 29.4 30.6 31.5 33.6 50.0 70.0 71.3 72.5 75.5 86.8 56.0 56.0 55.0 55.0 55.0 63.0 106.0 126.0 126.3 127.5 130.5 149.8 7.0 7.0 5.0 5.0 5.0 5.0 7.0 7.0 5.0 5.0 5.0 5.0 7.0 7.0 7.0 7.0 6.4 6.0 33.0 12.0 10.0 10.0 10.0 10.0 22.0 21.0 21.0 21.0 24.0 23.0 11.0 10.0 10.0 10.0 10.0 10.0 31.0 28.0 28.0 29.0 29.0 29.0 18.3 18.3 17.0 18.0 18.0 19.0 7.0 7.0 7.0 7.0 7.0 8.0 9.0 9.0 9.4 11.2 11.2 10.0 138.3 112.3 109.4 113.2 115.6 115.0 1250.9 1222.9 1219.3 1226.2 1242.7 1280.8 17.0 19.0 21.0 21.0 21.0 0.0 14.3 14.3 14.5 14.5 14.5 14.5 53.4 53.1 53.0 52.0 48.5 52.8 63.6 63.9 64.0 64.0 68.5 67.2 50.0 50.0 50.0 50.0 50.0 50.0 35.0 37.0 47.0 50.0 60.0 59.0 60.0 60.0 60.0 60.0 60.0 59.0 293.3 297.3 309.5 311.5 322.5 302.5 1544.2 1520.2 1528.8 1537.7 1565.2 1583.3 223 -- 246 of 253 -- CITY OF DES MOINES, IOWA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS (Unaudited) 2021 2020 2019 Public safety: Police Department--calls to dispatch 195,768 200,409 446,723 Detective bureau--persons offenses assigned 3,845 1,158 5,127 Detective Bureau--property offenses assigned 10,887 9,207 12,810 Fire Department--total incidents 29,325 27,684 26,721 Fire suppression--total fires 836 706 609 Emergency medical services--medic calls 18,604 18,240 18,272 Emergency medical services--transports 15,570 15,439 20,204 Permit and Development Center--number of permits issued 15,073 17,703 18,091 Permit and Development Center--number of inspections 35,253 40,622 50,071 Permit and Development Center--number of plan reviews 11,014 12,953 12,928 Public works: Engineering Department--cost of awarded contracts $123,165,045 $106,828,709 $104,067,204 Public Works Department--snow and ice control-lane miles 2,207 2,207 2,207 Health and social services: Low-income energy assistance (number of households) ** ** ** Furnace repair/replacements (number of households) ** ** ** Energy reconnect project (number of households) ** ** ** NCS applications taken - 95 53 Senior Living Program applications taken (households) ** ** ** Culture and recreation: Library usage--annual visits 278,963 658,588 881,497 Aquatic center/pools attendance 72,142 19,797 96,313 Annuals (plants) distributed to organizations 144,500 179,000 210,000 Community center attendance (calendar year) 25,021 64,294 86,630 Cemeteries--burials 579 515 507 Community and economic development: Increment valuations in tax increment financing districts $2,474,157,134 $2,126,182,194 $1,945,522,995 General government: Animal licenses issued (cat and dog) 16,717 17,950 19,286 Legal Department--written legal opinions 1,403 1,394 1,347 Tort litigation--traffic court trials 688 815 631 Enterprise funds: Number of sanitary sewer feet cleaned per year 2,916,656 2,981,663 2,986,489 Number of storm sewer feet cleaned per year 153,663 339,349 794,691 Solid waste collected annually (lbs) per year 140,976,000 128,374,000 158,126,431 Rounds of golf 110,059 103,271 84,961 Source: City records. *Current year not available **The Community Action Agency was taken over by Impact Community Action Partnership on October 1, 2015 224 -- 247 of 253 -- Table 18 2018 2017 2016 2015 2014 2013 2012 389,044 367,194 363,543 372,977 380,692 387,237 330,493 4,931 8,788 9,314 9,212 5,720 6,271 7,525 13,818 13,776 12,306 8,793 13,782 14,459 14,286 26,130 24,971 23,206 22,440 21,833 21,326 20,128 726 619 587 653 715 748 795 18,437 17,540 16,587 15,547 16,009 15,283 15,078 15,300 14,406 13,452 13,004 12,681 12,150 11,684 17,287 15,567 15,543 15,464 15,039 10,991 11,848 41,813 12,399 41,254 41,172 33,438 32,764 30,814 13,261 35,803 12,770 12,455 10,646 10,764 10,314 $68,117,323 $50,534,697 $34,798,141 $16,483,904 $32,538,737 $120,961,394 $122,891,377 2,207 2,207 2,207 2,207 2,207 2,207 2,207 ** ** ** 6,001 6,194 6,546 6,743 ** ** ** 148 179 173 185 ** ** ** - 5 376 103 54 42 37 3 8 16 49 ** ** ** 99 142 120 107 813,042 866,329 2,223,053 2,674,409 973,456 1,106,879 1,304,080 91,331 114,404 113,154 107,161 64,309 113,064 144,810 233,000 258,000 323,300 277,660 211,369 190,000 356,171 73,505 91,951 126,665 98,974 188,209 488,609 168,641 560 504 613 645 594 608 539 $1,332,180,629 $1,367,806,860 $1,235,548,361 $1,220,550,250 $1,245,474,135 $1,210,792,190 $1,225,945,910 19,510 20,174 22,355 21,731 21,306 21,760 22,841 1,359 1,335 1,297 1,041 1,140 1,160 993 624 988 1,532* 1,532 820 1,113* 1,113* 3,202,117 4,002,646 2,931,359 3,191,128 2,812,129 2,229,031 1,921,251 800,529 515,145 562,710 670,900 515,626 654,568 237,498 162,013,940 153,713,820 169,916,000 167,000,000 161,000,000 154,000,000 122,000,000 84,057 87,185 84,990 87,903 82,948 89,987 95,252 225 -- 248 of 253 -- CITY OF DES MOINES, IOWA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Unaudited) 2021 2020 2019 2018 Function/Program Public Safety: Police: Number of Stations 1 1 1 1 Fire: Number of Stations 10 10 10 10 Stations with EMS transport capability 9 9 9 9 Public Works: Streets paved lane miles 2,167 2,167 2,143 2,141 Streets unpaved lane miles 79 79 74 74 Sanitary sewer miles 1,005 1,006 942 942 Storm sewer miles 571 568 529 529 Number of street lights 25,200 25,200 25,200 24,880 Area--number of city square miles 91 91 91 91 Culture and Recreation: Parks-number of park areas 76 76 75 75 Total park acres 4,033 4,033 4,031 4,031 Number of boulevards 9 9 9 9 Number of playgrounds 61 59 58 58 Number of golf courses 3 3 3 3 Number of soccer fields 12 12 12 12 Number of aquatic centers/pools 5 5 5 5 Number of tennis courts 57 64 64 64 Number of softball diamonds 8 8 8 8 Number of baseball diamonds 8 8 8 8 Number of community centers 2 2 2 2 Miles of bike trails 86 86 83 81 Cemeteries: Number of facilities 7 7 7 7 Number of acres 345 345 345 345 Library: Number of Facilities 6 6 6 6 Number of Volumes 457,843 450,658 481,218 478,237 Source: City Records 226 -- 249 of 253 -- Table 19 2017 2016 2015 2014 2013 2012 1 1 1 1 1 1 10 10 10 10 10 10 8 8 8 7 8 7 2,139 2,139 2,134 2,167 2,076 2,073 74 74 74 40 76 77 942 942 935 935 935 935 529 529 493 493 493 494 24,750 25,900 25,700 25,500 25,500 25,500 91 91 91 91 91 91 75 76 76 76 76 76 4,031 4,031 3,877 2,877 3,875 3,875 9 9 9 9 9 9 62 63 63 63 65 68 3 3 3 3 3 3 12 12 12 12 12 12 5 5 5 5 5 5 64 64 64 59 61 61 8 8 8 8 9 9 8 8 8 8 8 8 2 3 3 3 3 3 81 81 78 45 45 42 7 7 7 7 7 7 345 345 345 345 345 345 6 6 6 6 6 6 478,993 548,848 522,809 560,890 590,242 596,718 227 -- 250 of 253 -- CITY OF DES MOINES, IOWA SCHEDULE OF INSURANCE IN FORCE June 30, 2021 (Unaudited) POLICY POLICY TYPE OF INSURANCE / INSURANCE COMPANY NUMBER PERIOD PROPERTY INSURANCE Alliant Insurance Services, Inc. 017471589/06 (Dec 05) 7-1-20/21 Housing Authority Property Insurance HAPI-342-208636-2021 1-1-21/22 FLOOD INSURANCE Selective Insurance Co. (N.F.I.P.) Various 7-1-20/21 Selective Insurance FLD2068053 1-1-21/22 CRIME INSURANCE Travelers Casualty & Surety Co. of America 105645396 7-1-20/21 SPECIAL EXCESS LIABILITY INSURANCE Allied World Insurance Company 5155-0041-00 7-1-20/21 GENERAL LIABILITY INSURANCE Housing Authority Risk Retention Group HARRG-342-208637-2021 1-1-21/22 AUTO LIABILITY INSURANCE The Travelers Indemnity Company of America H-810-9160P789-IND-20 7-1-20/21 WORKERS COMPENSATION INSURANCE National Union Fire Ins. Co. of Pittsburgh, PA (VFIS) CFP-5516-0128E-05 7-1-20/21 National Union Fire Ins. Co. of Pittsburgh, PA SRG-0009103048-E 7-1-20/21 Mutual of Omaha SR2014IA-P-052502 7-1-20/21 EXCESS WORKERS COMPENSATION INSURANCE Safety National Casualty Corp SP 4063326 7-1-20/21 228 -- 251 of 253 -- Table 20 NAMED INSURED / POLICY ANNUAL DETAILS OF COVERAGE LIMITS PREMIUM City of Des Moines Buildings & Contents 718,476,749 $ 574,717 $ Policy Aggregate Loss Limit: 500,000,000 Business Interruption & Extra Expense 100,000,000 Included Boiler & Machinery 100,000,000 Included Earthquake 20,000,000 Included Flood 5,000,000 Included Municipal Housing Agency Buildings & Contents 44,430,088 $ 71,326 $ City of Des Moines & Housing Authority (6 buildings in Flood Zone "A") Various 60,840 $ 2309 Euclid Ave 421,000 $ 4,013 $ Shared: City, WRA & DMMHA Employee Theft 5,000,000 $ 16,490 $ Computer Fraud 5,000,000 included Funds Tranfer Fraud 5,000,000 included Shared: City & DMMHA Citywide General, Automobile, Law 10,000,000 $ 213,790 $ Enforcement, Public Officials Liability, etc 2,000,000 SIR Municipal Housing Agency General Liability 2,000,000 $ 46,509 $ Shared: City & DMMHA Following enterpise fund activities included: 2,000,000 $ 123,944 $ Curbside Recycling Pickup Program Included Sanitary/Storm Sewer Included Solid Waste Collection Included Municipal Housing Agency Included City - HazMat Team/Fire Dept Mutual Aid Primary Occupational Medical 250,000 $ 23,176 $ Excess Occupational Medical 500,000 9,740 Excess Occupational Medical 500,000 11,704 City of Des Moines (including WRA Operations) Employers Liability Limit 1,250,000 $ 391,396 $ WRA Operations Liability Limit 500,000 229 -- 252 of 253 -- CITY OF -- 253 of 253 --
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This is the table of contents and opening pages of Des Moines County's 107th Annual Financial Report for the fiscal period July 1, 2011 to June 30, 2012, prepared by County Auditor Carol S. Copeland. The document contains comprehensive financial information and a detailed index covering numerous county departments and functions, including human services, conservation, emergency management, courthouse maintenance, and various specialized boards and commissions. Specific budget figures and policy decisions are not presented in this excerpt, which consists primarily of the document's organizational structure and content guide.
AI summary