CITY OF DES MOINES, IOWA ANNUAL COMPREHENSIVE FINANCIAL REPORT
BudgetAI Summary
The City of Des Moines, Iowa's Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024 presents the city's complete financial position, including government-wide financial statements, governmental fund statements, and proprietary fund statements prepared by the Department of Finance. The report includes an independent auditor's report, management's discussion and analysis, and detailed financial statements covering assets, liabilities, revenues, expenditures, and fund balances across various city funds and operations.
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CITY OF DES MOINES, IOWA ANNUAL C OMPREHENSIVE F INANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024 _______________________________________________ -- 1 of 234 -- CITY OF -- 2 of 234 -- Annual Comprehensive Financial Report of the City of Des Moines, Iowa For the Fiscal Year Ended June 30, 2024 Prepared by the Department of Finance -- 3 of 234 -- CITY OF -- 4 of 234 -- 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 (Deficits) - 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 the 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 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios .................................. 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 – MFPRSI Pension Liability ................................ 123 -- 5 of 234 -- 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 Schedule of Net Position – All Parking Fund Accounts ................................................ 138 Combining Schedule of Revenues, Expenses, and Changes in Fund Net Position – All Parking Fund Accounts............................................................................................................. 141 Combining Schedule of Cash Flows – 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 – All Internal Service Funds ................................................. 152 Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function ........................................................................................................ 156 Schedule by Function .............................................................................................................................. 157 STATISTICAL SECTION (UNAUDITED) Table 1: Net Position by Component ........................................................................................................ 162 Table 2: Changes in Net Position .............................................................................................................. 164 Table 3: Program Revenues by Function/Program ............................................................................... 172 Table 4: Fund Balances (Deficits), Governmental Funds ....................................................................... 176 Table 5: Changes in Fund Balances (Deficits), Governmental Funds .................................................. 178 Table 6: Tax Revenues by Source, Governmental funds ....................................................................... 181 Table 7: Assessed Value and Estimated Actual Value of Taxable Property ........................................ 182 -- 6 of 234 -- CITY OF DES MOINES, IOWA III PAGE STATISTICAL SECTION (UNAUDITED) (continued) Table 8: Direct and Overlapping Property Tax Rates ............................................................................. 184 Table 9: Property Tax Levies and Collections ......................................................................................... 187 Table 10: Principal Property Taxpayers ..................................................................................................... 189 Table 11: Ratios of Net General Bonded Debt Outstanding by Type .................................................... 190 Table 12: Direct and Overlapping Governmental Activities Debt.......................................................... 193 Table 13: Legal Debt Margin Information .................................................................................................. 194 Table 14: Pledged-Revenue Coverage ........................................................................................................ 196 Table 15: Demographic and Economic Statistics ....................................................................................... 199 Table 16: Principal Employers .................................................................................................................... 201 Table 17: Full-Time City Governmental Employees by Functions ......................................................... 202 Table 18: Operating Indicators by Function/Program............................................................................. 204 Table 19: Capital Asset Statistics by Function/Program ......................................................................... 206 Table 20: Schedule of Insurance in Force ................................................................................................... 208 -- 7 of 234 -- CITY OF -- 8 of 234 -- INTRODUCTORY SECTION -- 9 of 234 -- CITY OF -- 10 of 234 -- VII April 30, 2025 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, 2024. 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, 2024. 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. -- 11 of 234 -- 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 700,000. 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. -- 12 of 234 -- 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 2024, Des Moines continued to receive praise from various outlets. Accolades include: • #4 Best U.S. City for Young Adults — homebuyer.com • #2 Best U.S. City for Young Professionals — forbes.com • Top 15 Most Affordable Place to Buy a Home — zillow.com • Top 10 best city for work life balance — coworkingcafe.com • #3 most livable metros for Renters — rentcafe.com 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: 2.8 percent in 2023, 2.6 percent in 2022, and 4.2 percent in 2021. 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. -- 13 of 234 -- X The below information is a summary of the expected expenditures under the five-year plan from the fiscal 2024 CIP: • $30.0 million towards the purchase of a new city hall at 1200 Locust Street. • $3.1 million toward Closes Creek watershed improvements. • $2.7 million toward the rehabilitation of the Walnut Street Bridge. • $3.4 million toward Hamilton Storm Sewer improvements. • $5.6 million for phase 1 of the Principal Park improvements. • $7.2 million for Des Moines River flood mitigation improvements. • $2.9 million toward the construction or reconstruction of recreational trails across the City. • $3.5 million on various sewer separation projects throughout the City. • $46.6 million for the City's various on-going street maintenance and reconstruction projects. 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 its 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, 2023 balance is 43.6% of expenditures, down from 46.1% in 2023. 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. 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 -- 14 of 234 -- XI 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, 2023. This was the 46th 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 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 -- 15 of 234 -- CITY OF -- 16 of 234 -- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Des Moines Iowa For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO -- 17 of 234 -- CITY OF -- 18 of 234 -- XV City of Des Moines, Iowa Table of Organization Citizens of Des Moines ELECT Des Moines City Council Connie Boesen, Mayor Carl Voss, At-Large Mike Simonson, At-Large Chris Coleman, 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 6/30/24 Public Works -- 19 of 234 -- CITY OF -- 20 of 234 -- XVII CITY OF DES MOINES, IOWA ELECTED AND APPOINTED OFFICIALS For the Fiscal Year Ended June 30, 2024 Elected Officials: Term Expires Connie Boesen Mayor 1/1/2028 Carl Voss Council Member, At-Large 1/1/2028 Mike Simonson Council Member, At-Large 1/1/2026 Chris Coleman Council Member, Ward I 1/1/2026 Linda Westergaard Council Member, Ward II 1/1/2028 Josh Mandelbaum Council Member, Ward III 1/1/2026 Joe Gatto Council Member, Ward IV 1/1/2028 Council-Appointed Officials: Scott Sanders City Manager Jeffrey D. Lester City Attorney Laura Baumgartner City Clerk -- 21 of 234 -- CITY OF -- 22 of 234 -- FINANCIAL SECTION -- 23 of 234 -- CITY OF -- 24 of 234 -- Independent Auditor’s Report Honorable Mayor and Members of the City Council City of Des Moines, Iowa Opinions We have audited the 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, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the other auditors, the accompanying 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, 2024, 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. We did not audit the financial statements of the discretely present 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 as of June 30, 2024. Those statements were audited by other auditors whose report 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 solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -- 25 of 234 -- Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. -- 26 of 234 -- 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary 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 fund statements and other schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and other schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Des Moines, Iowa April 30, 2025 -- 27 of 234 -- CITY OF -- 28 of 234 -- 5 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2024 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, 2024. 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 $1,447,192,610 (net position). Last year’s June 30, 2023 total net position was $1,375,294,402. The total unrestricted net position of the City was $104,729,437. This was comprised of unrestricted governmental net position $27,511,610 and business type activities net position of $77,217,827. • At the close of this current fiscal year, the City of Des Moines' governmental funds reported combined ending fund balances of $384,376,029 an increase of $31,880,711 in comparison with the prior year. This increase was attributable primarily to an increase in Local Option Sales and Service Tax revenue and an increase in transfers in to the General Fund. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $87,185,061 or 43.6 percent of total General Fund expenditures. This represents a $10,163,411 decrease 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 -- 29 of 234 -- 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, -- 30 of 234 -- 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 15 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, 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 2024. 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 -- 31 of 234 -- 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, 2024 were $788,596,591 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 $1,447,192,610, at the close of the fiscal year ended June 30, 2024. By far the largest portion of the City of Des Moines' net position, $1,219,789,075 or 84.3 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. -- 32 of 234 -- 9 Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total 2024 2024 2024 2023 2023 2023 Current and other assets 683,039,360 $ 131,760,041 $ 814,799,401 $ 663,034,581 $ 99,605,294 $ 762,639,875 $ Capital assets 1,373,196,576 584,074,326 1,957,270,902 1,300,526,858 567,729,908 1,868,256,766 Total assets 2,056,235,936 715,834,367 2,772,070,303 1,963,561,439 667,335,202 2,630,896,641 Total deferred outflow of resources 62,806,289 5,217,060 68,023,349 42,652,941 3,495,581 46,148,522 Noncurrent liabilities 757,559,201 237,755,491 995,314,692 684,071,383 221,943,157 906,014,540 Other liabilities 152,479,364 19,211,142 171,690,506 159,837,415 21,785,645 181,623,060 Total liabilities 910,038,565 256,966,633 1,167,005,198 843,908,798 243,728,802 1,087,637,600 Total deferred inflow of resources 225,022,103 873,741 225,895,844 212,192,719 1,920,442 214,113,161 Net position: Net investment in capital assets 847,903,572 371,885,503 1,219,789,075 830,648,182 360,408,441 1,191,056,623 Restricted 108,566,375 14,107,723 122,674,098 94,286,548 12,267,814 106,554,362 Unrestricted 27,511,610 77,217,827 104,729,437 25,178,133 52,505,284 77,683,417 Total net position 983,981,557 $ 463,211,053 $ 1,447,192,610 $ 950,112,863 $ 425,181,539 $ 1,375,294,402 $ City of Des Moines' Net Position An additional portion of the City of Des Moines' net position, $122,674,098 (8.5 percent) represents resources that are subject to external restrictions on how they may be used. The balance of unrestricted net position is $104,729,437. The net pension liability was measured at $166,569,523 in fiscal 2024, up from $143,809,194 in fiscal 2023, a difference of $22,760,329. The business-type activities and governmental funds have positive unrestricted net positions. 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. The City’s total net position increased by $71,898,208 during the current fiscal year. The net position in governmental activities increased by $33,868,694, while the net position in business-type activities increased by $38,029,514. -- 33 of 234 -- 10 A summary of the City’s changes in net position follows: Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total 2024 2024 2024 2023 2023 2023 $ 77,065,044 $ 115,963,032 $ 193,028,076 $ 71,864,263 $ 109,892,860 $ 181,757,123 62,873,720 26,133,289 89,007,009 49,578,649 20,969,757 70,548,406 47,943,030 3,574,678 51,517,708 74,094,867 2,288,974 76,383,841 192,178,620 --- 192,178,620 194,375,747 --- 194,375,747 76,901,077 --- 76,901,077 84,192,780 --- 84,192,780 Other 23,806,195 8,850,377 32,656,572 16,447,973 5,534,771 21,982,744 Total revenues 480,767,686 154,521,376 635,289,062 490,554,279 138,686,362 629,240,641 Expenses: 163,083,174 --- 163,083,174 148,300,581 --- 148,300,581 Public works 75,998,393 --- 75,998,393 67,964,266 --- 67,964,266 Health and social services 14,242,238 --- 14,242,238 15,372,035 --- 15,372,035 Culture and recreation 42,830,320 --- 42,830,320 41,154,434 --- 41,154,434 37,743,580 --- 37,743,580 34,508,684 --- 34,508,684 General government 85,346,402 --- 85,346,402 59,302,327 --- 59,302,327 Interest on long-term debt 20,334,805 --- 20,334,805 12,451,616 --- 12,451,616 Parking facilities system --- 13,414,894 13,414,894 --- 13,522,165 13,522,165 Sewer system --- 40,738,836 40,738,836 --- 39,360,464 39,360,464 Stormwater utility --- 25,519,505 25,519,505 --- 23,664,287 23,664,287 Golf --- 440,728 440,728 --- 667,473 667,473 Solid waste --- 16,527,382 16,527,382 --- 15,889,961 15,889,961 Municipal Housing Agency --- 27,170,597 27,170,597 --- 24,745,617 24,745,617 Total expenses 439,578,912 123,811,942 563,390,854 379,053,943 117,849,967 496,903,910 41,188,774 30,709,434 71,898,208 111,500,336 20,836,395 132,336,731 Transfers (7,320,080) 7,320,080 --- (3,337,268) 3,337,268 --- 33,868,694 38,029,514 71,898,208 108,163,068 24,173,663 132,336,731 950,112,863 425,181,539 1,375,294,402 841,949,795 401,007,876 1,242,957,671 Net position - ending 983,981,557 $ 463,211,053 $ 1,447,192,610 $ 950,112,863 $ 425,181,539 $ 1,375,294,402 $ Increase/(decrease) in net position City of Des Moines' Changes in Net Position Revenues: Program revenues: Charges for services 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 Governmental Activities. Total governmental activities revenue for the fiscal year was $480,767,686 compared to $490,554,279 in 2023. The largest single revenue source for the City was property taxes of $192,178,620. Property taxes decreased by $2,197,127 (1.1 percent) from fiscal 2023. This decrease is primarily the result of a change in the amount of delinquent taxes remitted to the City of Des Moines. Other taxes for fiscal year 2024 were $76,901,077 compared to $84,192,780 for fiscal 2023. The decrease of $7,291,703 was primarily due to a decrease in LOSST receipts. -- 34 of 234 -- 11 The decrease in Intergovernmental Revenue year-over-year was primarily due to the prior year’s numbers being abnormally high due to the recognition of American Rescue Act funds. Governmental activities increased the City’s net position by $33,868,694. Certain revenues are generated that are specific to governmental program activities. These totaled $187,881,794 in fiscal 2024 compared to $195,537,779 in fiscal 2023. 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 $180,000,000 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 The program expenses shown in the table above were $439,578,912 in fiscal year 2024 as compared to $379,053,943 in fiscal year 2023. The decrease is largely due to the effective pension expense being eliminated at the government-wide level because of unexpectedly positive returns in the market during the pension assessment year recorded. -- 35 of 234 -- 12 The graph below shows the percentage of the total governmental revenues allocated by each revenue type: Franchise fees 2.8% Capital grants and contributions 10.0% Other 5.0% Charges for services 16.0% Operating grants and contributions 13.1% LOSST 11.1% Hotel/Motel Taxes 2.1% Property taxes 40.0% Revenues by Source - Governmental Activities Business-Type Activities. Total business-type activities revenue for the fiscal year was $154,521,376 compared to $138,686,362 in 2023. All but $8,769,254 and $81,123 of this revenue was generated for specific business-type activity expenses in fiscal years 2024 and 2023, respectively. The increase in non-specific business-type revenue was due primarily to overall economic trends resulting in increased 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. -- 36 of 234 -- 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 2.3% Ot her 5.7% Charges for services 75.0% Operat ing grants and contributions 16.9% Revenues By Source - Business-type Activities -- 37 of 234 -- 14 Business-type activities increased the City of Des Moines' net position by $38,029,514 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 $17,206,797. This increase was primarily due to increases in revenue from usage and an increase in investment earnings due to favorable interest rates. • The Storm Water Utility increased by $19,254,816. This increase was largely due to an increase in revenue from usage. 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 $384,376,029 an increase of $31,880,711 in comparison with the prior year. The increase was primarily driven by increases in the Debt Service Fund of $11,689,231 and the Capital Projects Fund of $26,561,366. The offsetting decrease for fiscal 2024 was in the General Fund with a change of ($10,899,218). Fund balance identified as nonspendable totaled $7,736,233. There were restrictions of $111,759,513 on the governmental fund balance. Committed fund balance totaled $180,084,750 and unassigned fund balance totaled $84,795,533. See footnote 19 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 $87,185,061 while total fund balance was $92,611,469. 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 43.6 percent of total General Fund expenditures, while total fund balance represents 46.3 percent of that same amount. The fund balance of the City of Des Moines' General Fund decreased by $10,899,218 during the current fiscal year compared to a $41,692,452 increase in 2023. This decrease -- 38 of 234 -- 15 was primarily the result of expending ARPA funds that had been transferred into the General Fund in fiscal 2023 for specific projects. The Debt Service Fund has a total fund balance of $30,740,085. The net increase in fund balance during the current year in the Debt Service Fund was $11,689,231. This was very consistent with the prior year. The Tax Increment Fund (TIF) has a total fund balance of $22,481,428. The net increase in fund balance during the current year in the Tax Increment Fund was $9,594,946. The net increase was largely due to an increase in tax revenue ahead of anticipated future expenditures. The Benefit Tax Accounts Special Revenue Fund had a total fund balance of $613,266 at the end of fiscal 2024. The small net decrease is due to the difference between tax revenue and the amount needed to cover current year expenditures. 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 City. During the year, the fund balance decreased by $9,764,405. This decrease is due to the amount transferred out to satisfy the legal allocation requirements. 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 had received its total anticipated allocation of roughly $94,800,000 as of the end of fiscal 2022. During the year, the fund balance remained the same as the prior year at zero. The City anticipates the fund being closed out within the next couple years as the deadline for expending ARPA funds approaches. The Other Employee Benefits Fund has a total fund balance of $3,074,060. The net increase in fund balance during the current year in the Other Employee Benefits Fund was $2,332,370. This increase was due to larger than normal transfers in during the current year in preparation for larger than normal separation payouts due to upcoming retirements. The Capital Projects Fund has a total fund balance of $175,624,772. The net increase in fund balance during the current year in the Capital Projects Fund was $26,561,366. This increase was due to the transfers in exceeding current year expenditures as several significant projects are taking longer to complete than initially anticipated. -- 39 of 234 -- 16 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 of the Parking Facility System was $3,545,911; those for the Sewer System were $49,267,031; the Storm Water Utility were $40,942,937; and for the Municipal Housing Agency were $5,018,865. 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, 2024, amounts to $1,957,270,902 (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 4.8 percent (a 5.6 percent increase for governmental activities and a 3.0 percent increase for business-type activities). Major capital asset events during fiscal year 2024 included the following: $30.0 million towards the purchase of a new city hall at 1200 Locust Street. $3.1 million toward Closes Creek watershed improvements. $2.7 million toward the rehabilitation of the Walnut Street Bridge. $3.4 million toward Hamilton Storm Sewer improvements. $5.6 million for phase 1 of the Principal Park improvements. $7.2 million for Des Moines River flood mitigation improvements. $2.9 million toward the construction or reconstruction of recreational trails across the City. $3.5 million on various sewer separation projects throughout the City. $46.6 million for the City's various on-going street maintenance and reconstruction projects. -- 40 of 234 -- 17 2024 2023 2024 2023 2024 2023 Land 169,608 $ 157,257 $ 29,940 $ 29,843 $ 199,548 $ 187,100 $ Buildings 340,396 310,854 106,110 105,322 446,506 416,176 Improvements other than buildings 1,527,608 1,479,544 582,598 549,406 2,110,206 2,028,950 Machinery and equipment 130,661 125,665 29,288 30,666 159,949 156,331 Right of use assets 2,476 5,542 29,996 29,996 32,472 35,538 Construction in progress 232,466 193,356 95,851 96,802 328,317 290,158 Accumulated depreciation (1,030,018) (971,691) (289,709) (274,305) (1,319,727) (1,245,996) Total 1,373,197 $ 1,300,527 $ 584,074 $ 567,730 $ 1,957,271 $ 1,868,257 $ 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 $674,225,000. Of this amount, $549,760,000 comprises debt backed by the full faith and credit of the government. The remainder of the City of Des Moines' debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 2024 2023 2024 2023 2024 2023 General obligation 533,940 $ 512,150 $ 15,820 $ 16,885 $ 549,760 $ 529,035 $ bonds Revenue bonds - - 124,465 108,235 124,465 108,235 Total 533,940 $ 512,150 $ 140,285 $ 125,120 $ 674,225 $ 637,270 $ 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 $36,955,000, which is a 5.8 percent increase from the prior fiscal year. This increase was due to the City of Des Moines issuing $69,665,000 in bonded debt for governmental activities and $21,755,000 in bonded debt -- 41 of 234 -- 18 for business-type activities, offset by principal payments of $47,875,000 and $6,590,000, respectively. 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 $964,798,967, which is significantly in excess of the City of Des Moines’ outstanding general obligation debt of $549,760,000. 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 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 2024 revenue budget of $544,073,364 was increased through an amendment to $558,049,506 an increase of $13,976,142. The total other financing sources and net transfers per the original budget of $132,664,991 decreased to $130,425,196 a decrease of $2,239,795. The major factor in the difference between original estimates and final estimates was due to timing around the release of restrictions on American Rescue Plan Act funds. Actual revenues for fiscal 2024 were $595,139,126 compared to the revised budget projection of $558,049,506, a difference of $37,089,620, or 6.6 percent. -- 42 of 234 -- 19 The total original fiscal 2024 expenditure budget of $715,309,371 was increased through an amendment to $877,181,411 an increase of $161,872,040. The majority of this increase was due to changes in the anticipated timing of capital improvement projects. Expenditures were under the revised budget in total by $207,045,443. This underage was primarily due to the original aforementioned timing of capital improvement expenses being more accurate. See page 111 for the Budgetary Comparison Schedule—All Governmental Funds and Enterprise Funds. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES 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, along with our economic development partners, is 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. During calendar year 2024, Des Moines received the following accolades: #4 Best U.S. City for Young Adults — homebuyer.com #2 Best U.S. City for Young Professionals — forbes.com Top 15 Most Affordable Place to Buy a Home — zillow.com Top 10 best city for work life balance — coworkingcafe.com #3 most livable metros for Renters — rentcafe.com Assessed valuations for calendar year 2024 in Des Moines increased 11.1 percent over calendar year 2023. Indicators for continued growth are positive. Corporate renovations and new construction, along with residential, mixed use, commercial, and hotel projects are underway and planned over the next few years. Approximately 49.1 percent of all General Fund revenues were derived from property taxes during fiscal 2024. Continuous efforts are being made to both diversify revenues and implement strategic expense reductions. -- 43 of 234 -- 20 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 234 -- CITY OF -- 45 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION June 30, 2024 GOVERN- MENTAL BUSINESS- TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY ASSETS Current assets: Unrestricted current assets: Cash and investments 406,466,986 $ 111,052,953 $ 517,519,939 $ 716,209 $ 74,036,268 $ Taxes receivable 223,979,311 --- 223,979,311 --- --- Accounts receivable, net of allowance for doubtful accounts 6,389,098 525,621 6,914,719 7,500 19,008,352 Loans receivable, current 100,000 --- 100,000 --- --- Accrued interest receivable 3,275,432 --- 3,275,432 --- 1,255,388 Lease receivable 124,254 --- 124,254 --- 3,102,010 Internal balances 22,378,244 (22,378,244) --- --- --- Due from other governmental units 12,674,026 1,929,989 14,604,015 --- --- Inventory 753,227 67,149 820,376 --- 94,618 Prepaid items 1,861,627 44,028 1,905,655 978 14,123 Total unrestricted current assets 678,002,205 91,241,496 769,243,701 724,687 97,510,759 Restricted assets: Cash and investments --- 16,686,597 16,686,597 3,976,700 --- Interest receivable --- 130,480 130,480 --- --- Total restricted current assets --- 16,817,077 16,817,077 3,976,700 --- Total current assets 678,002,205 108,058,573 786,060,778 4,701,387 97,510,759 Noncurrent assets: Restricted cash and investments --- 23,575,447 23,575,447 --- 14,364,935 Restricted accounts receivable --- --- --- --- 822,770 Restricted interest receivable --- 126,021 126,021 --- --- Lease receivable, net 4,185,975 --- 4,185,975 --- 25,535,468 Loans receivable, net of allowance for Doubtful accounts 851,180 --- 851,180 --- --- Notes receivables --- --- --- --- 79,028 Other restricted assets --- --- --- 14,494 --- Capital assets: Land 169,607,929 29,939,749 199,547,678 --- --- Construction in progress 232,466,445 95,850,619 328,317,064 --- 120,484,564 Buildings 340,396,264 106,110,056 446,506,320 --- 273,624,670 Improvements other than buildings 1,527,608,124 582,598,727 2,110,206,851 --- 271,473,263 Machinery and equipment 130,660,696 29,287,961 159,948,657 13,237 28,647,991 Right of use assets 2,475,492 29,996,021 32,471,513 52,693 3,143,870 Accumulated depreciation and amortization (1,030,018,374) (289,708,807) (1,319,727,181) (8,472) (322,368,411) Total capital assets 1,373,196,576 584,074,326 1,957,270,902 57,458 375,005,947 Total noncurrent assets 1,378,233,731 607,775,794 1,986,009,525 71,952 415,808,148 Total assets 2,056,235,936 715,834,367 2,772,070,303 4,773,339 513,318,907 Deferred Outflows of Resources Other postemployment deferred outflows 8,079,821 1,130,487 9,210,308 --- 185,691 Pension related deferred outflows 54,726,468 4,086,573 58,813,041 --- 896,825 Total deferred outflows of resources 62,806,289 5,217,060 68,023,349 --- 1,082,516 The notes to the financial statements are an integral part of this statement. PRIMARY GOVERNMENT COMPONENT UNITS 22 -- 46 of 234 -- GOVERN- MENTAL BUSINESS- TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY LIABILITIES Current liabilities: Accounts payable 8,806,000 $ 1,080,591 $ 9,886,591 $ --- $ 13,631,291 $ Contracts payable 12,469,390 3,730,299 16,199,689 --- 2,261,580 Accrued wages payable 4,298,304 478,005 4,776,309 23,236 208,286 Accrued employee benefits 56,219,108 1,174,923 57,394,031 --- 93,650 Good faith, tenant, security, airport deposits 1,189,722 135,745 1,325,467 --- 349,276 Accrued interest payable 1,745,007 202,547 1,947,554 --- --- Other liabilities, claims and judgments 14,155,300 --- 14,155,300 --- --- Notes, loans, leases, bonds payable and subscription-based IT liabilities 48,664,588 2,300,635 50,965,223 17,455 --- Unearned revenue 4,931,945 18,712 4,950,657 --- 6,098,519 Total current liabilities - from unrestricted 152,479,364 9,121,457 161,600,821 40,691 22,642,602 Current liabilities payable from restricted assets: Notes, loans, and bonds payable --- 9,697,000 9,697,000 --- --- Accrued interest payable --- 392,685 392,685 --- --- Total current liabilities - from restricted --- 10,089,685 10,089,685 --- --- Total current liabilities 152,479,364 19,211,142 171,690,506 40,691 22,642,602 Noncurrent liabilities: Accrued employee benefits 13,712,900 1,602,355 15,315,255 --- 1,217,447 Other post retirement benefits 29,834,546 4,174,296 34,008,842 --- 561,150 Net pension liability 157,200,065 9,369,458 166,569,523 --- 2,701,834 Other liabilities --- 590,351 590,351 --- --- Due to primary government --- --- --- --- --- Notes, loans, leases, bonds payable and subscription-based IT liabilities, net 556,811,690 222,019,031 778,830,721 35,238 --- Total noncurrent liabilities 757,559,201 237,755,491 995,314,692 35,238 4,480,431 Total liabilities 910,038,565 256,966,633 1,167,005,198 75,929 27,123,033 DEFERRED INFLOWS OF RESOURCES Property taxes 213,467,538 --- 213,467,538 --- --- Lease deferred inflows 4,095,055 --- 4,095,055 --- 27,576,009 Other postretirement deferred inflows 3,818,888 534,319 4,353,207 --- 164,986 Pension related deferred inflows 3,640,622 339,422 3,980,044 --- 89,832 Total deferred inflows of resources 225,022,103 873,741 225,895,844 --- 27,830,827 NET POSITION Net investment in capital assets 847,903,572 371,885,503 1,219,789,075 4,765 372,744,367 Restricted: Public housing program --- 1,723,591 1,723,591 --- --- Debt retirement 28,993,703 12,384,132 41,377,835 --- --- Corpus non-expendable permanent 3,363,477 --- 3,363,477 1,141,991 --- Donor restricted temporary --- --- --- 1,782,129 --- Capital projects 2,465,985 --- 2,465,985 --- --- Public works 24,949,002 --- 24,949,002 --- --- Police and fire 799,225 --- 799,225 --- --- Culture and recreation 4,543,303 --- 4,543,303 --- --- Community and economic development 33,498,816 --- 33,498,816 --- --- Other restricted assets 9,952,864 --- 9,952,864 --- 15,187,705 Unrestricted 27,511,610 77,217,827 104,729,437 1,768,525 71,515,491 Total net position 983,981,557 $ 463,211,053 $ 1,447,192,610 $ 4,697,410 $ 459,447,563 $ PRIMARY GOVERNMENT COMPONENT UNITS 23 -- 47 of 234 -- CITY OF DES MOINES STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2024 PROGRAM REVENUES CHARGES FOR OPERATING CAPITAL SALES AND GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS Primary government: Governmental activities: Public safety 163,083,174 $ 30,523,280 $ 4,128,783 $ --- $ Public works 75,998,393 3,602,732 37,379,831 11,093,359 Health and social services 14,242,238 742,822 11,712,865 --- Culture and recreation 42,830,320 3,914,021 1,486,548 1,815,669 Community and economic development 37,743,580 4,060,657 1,934,980 --- General government 85,346,402 34,221,532 6,230,713 35,034,002 Interest on long-term debt 20,334,805 --- --- --- Total governmental activities 439,578,912 77,065,044 62,873,720 47,943,030 Business-type activities: Parking facilities system 13,414,894 11,225,388 --- --- Sewer system 40,738,836 50,213,472 --- 1,357,455 Stormwater utility 25,519,505 34,574,108 --- 1,903,270 Golf 440,728 768,022 --- 6,200 Solid waste system 16,527,382 17,413,777 --- --- Municipal Housing Agency 27,170,597 1,768,265 26,133,289 307,753 Total business-type activities 123,811,942 115,963,032 26,133,289 3,574,678 Total primary government 563,390,854 $ 193,028,076 $ 89,007,009 $ 51,517,708 $ Component unit, Des Moines Public Library Foundation 680,418 $ --- $ 981,814 $ --- $ Component unit, Des Moines Airport Authority 49,362,786 $ 65,074,435 $ --- $ 43,843,520 $ 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 Net position, ending The notes to the financial statements are an integral part of this statement. 24 -- 48 of 234 -- PRIMARY GOVERNMENT COMPONENT UNIT GOVERNMENTAL BUSINESS-TYPE LIBRARY AIRPORT ACTIVITIES ACTIVITIES TOTAL FOUNDATION AUTHORITY (128,431,111) $ --- $ (128,431,111) $ --- $ --- $ (23,922,471) --- (23,922,471) --- --- (1,786,551) --- (1,786,551) --- --- (35,614,082) --- (35,614,082) --- --- (31,747,943) --- (31,747,943) --- --- (9,860,155) --- (9,860,155) --- --- (20,334,805) --- (20,334,805) --- --- (251,697,118) --- (251,697,118) --- --- --- (2,189,506) (2,189,506) --- --- --- 10,832,091 10,832,091 --- --- --- 10,957,873 10,957,873 --- --- --- 333,494 333,494 --- --- --- 886,395 886,395 --- --- --- 1,038,710 1,038,710 --- --- --- 21,859,057 21,859,057 --- --- (251,697,118) $ 21,859,057 $ (229,838,061) $ --- $ --- $ 301,396 $ 59,555,169 $ 163,850,024 --- 163,850,024 --- --- 28,328,596 --- 28,328,596 --- --- 53,595,072 --- 53,595,072 --- --- 10,065,246 --- 10,065,246 --- --- 13,240,759 --- 13,240,759 --- --- 19,332,885 8,769,254 28,102,139 122,328 5,533,650 858,002 --- 858,002 159,633 640,279 3,615,308 81,123 3,696,431 --- 2,293 (7,320,080) 7,320,080 --- --- --- 285,565,812 16,170,457 301,736,269 281,961 6,176,222 33,868,694 38,029,514 71,898,208 583,357 65,731,391 950,112,863 425,181,539 1,375,294,402 4,114,053 393,716,172 983,981,557 $ 463,211,053 $ 1,447,192,610 $ 4,697,410 $ 459,447,563 $ NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION 25 -- 49 of 234 -- CITY OF DES MOINES, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2024 BENEFIT DEBT TAX TAX GENERAL SERVICE INCREMENT ACCOUNTS ASSETS Cash and investments 82,266,331 $ 30,484,033 $ 21,991,722 $ 386,374 $ Taxes receivable 80,346,175 30,867,244 55,049,294 25,309,993 Accounts receivable, net of allowance for doubtful accounts 4,767,575 --- 177,412 --- Loans receivable, net of allowance for doubtful accounts --- --- --- --- Accrued interest receivable 3,257,019 --- --- --- Lease receivable 4,114,393 --- --- --- Due from other funds 3,210,268 --- --- --- Due from other governmental units 578,908 --- --- --- Advance to other funds 2,062,131 --- --- --- Inventory --- --- --- --- Prepaid items 1,115,320 1,375 --- --- Total assets 181,718,120 $ 61,352,652 $ 77,218,428 $ 25,696,367 $ LIABILITIES Accounts payable 3,670,772 $ --- $ --- $ --- $ Contracts payable 73,878 --- --- --- Accrued wages payable 3,603,181 --- --- --- Accrued employee benefits --- --- --- --- Due to other funds --- --- --- --- Unearned revenue --- --- --- --- Good faith, security deposits 1,068,787 --- --- --- Total liabilities 8,416,618 --- --- --- DEFERRED INFLOWS OF RESOURCES Lease deferred inflows 3,896,661 --- --- --- Unavailable revenue - property taxes 76,793,372 30,612,567 54,737,000 25,083,101 Unavailable revenue - intergovernmental --- --- --- --- Total deferred inflows of resources 80,690,033 30,612,567 54,737,000 25,083,101 FUND BALANCES (DEFICITS) Nonspendable 3,177,451 1,375 --- --- Restricted 1,248,957 30,738,710 22,481,428 613,266 Committed 1,000,000 --- --- --- Unassigned 87,185,061 --- --- --- Total fund balances 92,611,469 30,740,085 22,481,428 613,266 Total liabilities, deferred inflows of resources and fund balances (deficits) 181,718,120 $ 61,352,652 $ 77,218,428 $ 25,696,367 $ The notes to the financial statements are an integral part of this statement. 26 -- 50 of 234 -- LOCAL AMERICAN OTHER OTHER TOTAL OPTION RESCUE EMPLOYEE CAPITAL GOVERNMENTAL GOVERNMENTAL SALES TAX PLAN BENEFITS PROJECTS FUNDS FUNDS 14,379,826 $ 4,618,075 $ 4,075,306 $ 187,272,917 $ 34,535,081 $ 380,009,665 $ 5,502,038 --- 25,054,455 --- 1,822,143 223,951,342 --- --- --- 145,852 140,746 5,231,585 --- --- --- --- 951,180 951,180 --- --- --- --- 18,413 3,275,432 --- --- --- 195,836 --- 4,310,229 --- --- --- --- 115,222 3,325,490 6,455 --- --- 3,402,105 8,664,550 12,652,018 --- --- --- --- --- 2,062,131 --- --- --- --- 578,085 578,085 45 --- 20,752 87,296 507,752 1,732,540 19,888,364 $ 4,618,075 $ 29,150,513 $ 191,104,006 $ 47,333,172 $ 638,079,697 $ 294,440 $ --- $ 1,200 $ 363,684 $ 2,580,760 $ 6,910,856 $ --- --- --- 12,395,512 --- 12,469,390 9,204 --- 165,358 102,727 294,522 4,174,992 --- --- 1,060,154 --- 5,739 1,065,893 --- --- --- 577,443 1,550,330 2,127,773 --- 4,618,075 --- 298,935 --- 4,917,010 --- --- --- --- 120,935 1,189,722 303,644 4,618,075 1,226,712 13,738,301 4,552,286 32,855,636 --- --- --- 198,394 --- 4,095,055 --- --- 24,849,741 --- 1,391,757 213,467,538 --- --- --- 1,542,539 1,742,900 3,285,439 --- --- 24,849,741 1,740,933 3,134,657 220,848,032 45 --- 20,752 87,296 4,449,314 7,736,233 19,584,675 --- 3,053,308 894,271 33,144,898 111,759,513 --- --- --- 175,255,953 3,828,797 180,084,750 --- --- --- (612,748) (1,776,780) 84,795,533 19,584,720 --- 3,074,060 175,624,772 39,646,229 384,376,029 19,888,364 $ 4,618,075 $ 29,150,513 $ 191,104,006 $ 47,333,172 $ 638,079,697 $ 27 -- 51 of 234 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2024 Total governmental fund balances 384,376,029 $ Amounts reported for governmental activities in the statement of net position are different because: 1,355,925,244 3,285,439 Capital assets, net of accumulated depreciation 17,271,332 Other current assets 27,969,040 Deferred outflow of resources, pension related items 988,939 Deferred outflow of resources, OPEB related items 300,371 Other current liabilities (5,522,573) Net pension liability - IPERS (2,267,381) Other accrued post retirement benefits (1,109,113) Other noncurrent liabilities (380,250) Deferred inflow of resources, pension related items (82,140) Deferred inflow of resources, OPEB related items (141,969) 37,026,256 Internal service funds allocated to business-type activities 19,987,382 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 -- 52 of 234 -- Deferred outflows of resources - IPERS 15,703,636 Deferred outflows of resources - MFPRSI 38,033,893 Deferred outflows of resources - OPEB 7,779,450 Deferred inflows of resources - IPERS (1,304,306) Deferred inflows of resources - MFPRSI (2,254,176) Deferred inflows of resources - OPEB (3,676,919) 54,281,578 Unamortized premium cost (31,216,191) Accrued employee benefits (65,865,669) Other accrued post retirement benefits (28,725,433) Accrued interest payable (1,745,007) Notes payable (33,899,872) Section 108 loans payable (4,293,000) General obligation bonds payable (533,940,000) SBITA liabilities (363,889) Lease liabilities (1,763,326) Other liabilities, claims and judgments (14,155,300) Net pension liability - IPERS (36,004,391) Net pension liability - MFPRSI (118,928,293) (870,900,371) Net position of governmental activities 983,981,557 $ 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 -- 53 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2024 BENEFIT DEBT TAX TAX GENERAL SERVICE INCREMENT ACCOUNTS Revenues: Taxes 83,890,739 $ 28,328,596 $ 41,503,726 $ 24,776,014 $ Franchise fees 13,240,759 --- --- --- Licenses and permits 4,701,727 --- --- --- Fines and forfeitures 5,669,352 --- --- --- Charges for sales and services 21,789,586 --- --- --- Use of money and property 19,867,960 --- 1,832,810 --- Miscellaneous 16,465,054 --- --- --- Intergovernmental 5,204,532 1,180,500 720 1,076,382 Total revenue 170,829,709 29,509,096 43,337,256 25,852,396 Expenditures: Current: Public safety 118,683,022 --- --- --- Public works 5,730,230 --- --- --- Health and social services 589,834 --- --- --- Culture and recreation 25,860,347 --- --- --- Community and economic development 13,337,591 --- 14,811,672 --- General government 33,949,119 307,271 --- --- Capital outlay 937,034 --- --- --- Debt service: Principal retirement 148,219 47,951,111 903,000 --- Lease principal payments --- --- 32,177 --- Subscription-based principal payments 113,274 --- --- --- Interest and fiscal charges 729,230 19,166,147 162,144 --- Total expenditures 200,077,900 67,424,529 15,908,993 --- Excess (deficiency) of revenues over expenditures (29,248,191) (37,915,433) 27,428,263 25,852,396 Other financing sources (uses): Transfers in 57,897,635 49,239,195 --- --- Transfers out (72,578,308) (72,553,738) (21,693,317) (25,943,412) Premium on bond issue --- 3,254,207 --- --- General obligation bonds issued --- 69,665,000 --- --- Private debt issued 33,000,000 --- --- --- Proceeds from damage claims 1,000 --- --- --- Proceeds from capital asset sale 28,646 --- 3,860,000 --- Total other financing sources (uses) 18,348,973 49,604,664 (17,833,317) (25,943,412) Net change in fund balances (10,899,218) 11,689,231 9,594,946 (91,016) Fund balances, beginning of year, 6/30/2023, as previously reported 103,510,687 19,050,854 12,886,482 704,282 Adjustments --- --- --- --- Fund balances - 6/30/2023, as adjusted 103,510,687 19,050,854 12,886,482 704,282 Fund balances, end of year 92,611,469 $ 30,740,085 $ 22,481,428 $ 613,266 $ The notes to the financial statements are an integral part of this statement. 30 -- 54 of 234 -- FORMERLY NONMAJOR LOCAL AMERICAN OTHER OTHER TOTAL OPTION RESCUE EMPLOYEE CAPITAL GOVERNMENTAL GOVERNMENTAL SALES TAX PLAN BENEFITS PROJECTS FUNDS FUNDS 53,595,072 $ --- $ 22,354,256 $ --- $ 1,390,535 $ 255,838,938 $ --- --- --- --- --- 13,240,759 --- --- --- --- 86,028 4,787,755 --- --- --- --- 9,842 5,679,194 21,060 --- --- --- 1,005,702 22,816,348 --- --- --- 13,226 195,721 21,909,717 141,182 --- 493,632 4,339,584 1,366,338 22,805,790 --- 35,016,013 971,171 9,291,831 50,168,303 102,909,452 53,757,314 35,016,013 23,819,059 13,644,641 54,222,469 449,987,953 --- 24,200,809 --- 211,975 3,949,034 147,044,840 --- --- --- 9,867,956 25,879,070 41,477,256 --- 1,108,000 --- --- 12,317,331 14,015,165 --- --- --- 4,270,580 446,977 30,577,904 --- --- --- 4,377,695 2,465,300 34,992,258 12,380,948 --- 4,116,571 2,066,322 11,920 52,832,151 220,000 --- --- 127,314,859 457,446 128,929,339 314,880 --- --- --- 1,089,000 50,406,210 --- --- --- --- --- 32,177 --- --- --- --- --- 113,274 --- --- --- --- 43,560 20,101,081 12,915,828 25,308,809 4,116,571 148,109,387 46,659,638 520,521,655 40,841,486 9,707,204 19,702,488 (134,464,746) 7,562,831 (70,533,702) --- --- 6,000,000 163,593,947 2,234,663 278,965,440 (50,605,891) (9,707,204) (23,370,118) (2,593,475) (7,340,057) (286,385,520) --- --- --- --- --- 3,254,207 --- --- --- --- --- 69,665,000 --- --- --- --- --- 33,000,000 --- --- --- --- --- 1,000 --- --- --- 25,640 --- 3,914,286 (50,605,891) (9,707,204) (17,370,118) 161,026,112 (5,105,394) 102,414,413 (9,764,405) --- 2,332,370 26,561,366 2,457,437 31,880,711 29,349,125 --- --- 149,063,406 37,930,482 352,495,318 --- --- 741,690 --- (741,690) --- 29,349,125 --- 741,690 149,063,406 37,188,792 352,495,318 19,584,720 $ --- $ 3,074,060 $ 175,624,772 $ 39,646,229 $ 384,376,029 $ 31 -- 55 of 234 -- 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, 2024 Net change in fund balances: Total governmental funds 31,880,711 $ Capital outlay 128,929,339 Depreciation (58,354,376) 70,574,963 (3,914,286) 3,478,572 1,405,837 970,123 5,613,088 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 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 or amortization expense. The following is the detail of the amount by which capital outlays exceeded depreciation and amortization 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 32 -- 56 of 234 -- Amortization of premium 2,406,047 Long-term debt issued, including premiums of $3,254,207 (105,919,207) Repayment of long-term debt principal 50,406,210 Payments on leases 32,177 Payments on subscription-based information technology agreements 113,274 Interest (233,724) (53,195,223) (22,068,479) (1,529,449) (5,337,300) Pension benefit - IPERS 3,189,570 Pension expense - MFPRSI (1,237,743) (26,983,401) 3,955,337 Change in internal service fund allocations to business-type activities 1,053,096 Change in net position of governmental activities 33,868,694 $ 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 -- 57 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2024 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Current assets: Unrestricted current assets: Cash and investments 4,722,671 $ 52,375,932 $ 32,982,340 $ Taxes receivable --- --- --- Accounts receivable 4,115 134,344 106,028 Due from other governmental units 12,420 886,359 502,243 Inventory --- --- --- Prepaid items 20,043 8,645 13,966 Total unrestricted current assets 4,759,249 53,405,280 33,604,577 Restricted current assets: Cash and investments --- 353,082 16,333,515 Interest receivable --- --- 130,480 Total restricted current assets --- 353,082 16,463,995 Total current assets 4,759,249 53,758,362 50,068,572 Noncurrent assets: Restricted cash and investments --- --- 21,851,856 Restricted interest receivable --- --- 126,021 Capital assets: Land 14,145,778 2,161,508 12,120,555 Construction in progress 364,061 34,739,004 60,747,554 Buildings 63,074,748 573,492 --- Improvements other than buildings 34,861,107 273,056,700 265,301,716 Machinery and equipment 4,576,754 5,235,567 5,069,016 Right of Use Assets 29,996,021 --- --- Accumulated depreciation and amortization (82,978,498) (96,593,037) (52,982,164) Total capital assets, net of accumulated depreciation 64,039,971 219,173,234 290,256,677 Total noncurrent assets 64,039,971 219,173,234 312,234,554 Total assets 68,799,220 272,931,596 362,303,126 Other postemployment benefits related deferred outflows 60,074 442,365 196,606 Pension related deferred outflows 197,509 1,286,309 1,068,990 Total deferred outflow of resources 257,583 1,728,674 1,265,596 BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS ASSETS DEFERRED OUTFLOW OF RESOURCES 34 -- 58 of 234 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 7,165,847 $ 13,806,163 $ 111,052,953 $ 26,457,321 $ --- --- --- 27,969 60,214 220,920 525,621 1,157,513 422,517 106,450 1,929,989 22,008 67,149 --- 67,149 175,142 --- 1,374 44,028 129,087 7,715,727 14,134,907 113,619,740 27,969,040 --- --- 16,686,597 --- --- --- 130,480 --- --- --- 16,817,077 --- 7,715,727 14,134,907 130,436,817 27,969,040 1,723,591 --- 23,575,447 --- --- --- 126,021 --- 1,388,411 123,497 29,939,749 --- --- --- 95,850,619 --- 40,246,222 2,215,594 106,110,056 --- 5,913,168 3,466,036 582,598,727 --- 1,677,654 12,728,970 29,287,961 64,581,961 --- --- 29,996,021 --- (42,321,496) (14,833,612) (289,708,807) (47,310,629) 6,903,959 3,700,485 584,074,326 17,271,332 8,627,550 3,700,485 607,775,794 17,271,332 16,343,277 17,835,392 738,212,611 45,240,372 169,300 262,142 1,130,487 300,371 560,993 972,772 4,086,573 988,939 730,293 1,234,914 5,217,060 1,289,310 (continued) BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 35 -- 59 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION (CONTINUED) PROPRIETARY FUNDS June 30, 2024 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Liabilities: Current liabilities: Accounts payable 417,711 $ 58,945 $ 147,397 $ Contracts payable 19,155 1,007,157 2,703,987 Accrued wages payable 25,107 117,686 152,173 Accrued employee benefits 75,082 254,137 311,652 Due to other funds --- 24,750 50,250 Tenant security deposits --- --- --- Accrued interest payable 98,276 16,415 62,324 General obligation bonds payable --- --- 485,000 Lease payable 1,210,635 --- --- Unearned revenue --- --- --- Total current liabilities - from unrestricted 1,845,966 1,479,090 3,912,783 Current liabilities payable from restricted assets: Revenue bonds payable --- 2,119,000 7,578,000 Accrued interest payable --- 40,665 352,020 Total current liabilities - from restricted --- 2,159,665 7,930,020 1,845,966 3,638,755 11,842,803 Noncurrent liabilities: Accrued employee benefits 135,287 457,190 560,956 Other postemployment benefits 221,822 1,633,420 725,965 Net pension liability 452,837 2,949,175 2,450,919 Advance from other funds --- --- --- Revenue bonds payable, net --- 39,354,000 143,362,904 General obligation bonds payable, net --- --- 4,545,299 Lease payable, net 23,231,952 --- --- Other liabilities --- --- 129,326 Total noncurrent liabilities 24,041,898 44,393,785 151,775,369 Total liabilities 25,887,864 48,032,540 163,618,172 Other postemployment benefits related deferred inflows 28,394 209,081 92,925 Pension related deferred inflows 16,405 106,838 88,788 Total deferred inflow of resources 44,799 315,919 181,713 Net investment in capital assets 39,578,229 176,693,077 146,793,471 Restricted: Public housing program --- --- --- Debt retirement --- 351,703 12,032,429 Unrestricted (Deficit) 3,545,911 49,267,031 40,942,937 Total net position (deficit) 43,124,140 $ 226,311,811 $ 199,768,837 $ 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 -- 60 of 234 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 66,222 $ 390,316 $ 1,080,591 $ 1,895,144 $ --- --- 3,730,299 --- 64,468 118,571 478,005 123,312 268,748 265,304 1,174,923 2,620,196 253,731 --- 328,731 868,986 135,745 --- 135,745 --- --- 25,532 202,547 --- --- 605,000 1,090,000 --- --- --- 1,210,635 --- 18,712 --- 18,712 14,935 807,626 1,404,723 9,450,188 5,522,573 --- --- 9,697,000 --- --- --- 392,685 --- --- --- 10,089,685 --- 807,626 1,404,723 19,539,873 5,522,573 120,542 328,380 1,602,355 380,250 625,136 967,953 4,174,296 1,109,113 1,286,212 2,230,315 9,369,458 2,267,381 --- 2,062,131 2,062,131 --- --- --- 182,716,904 --- --- 11,524,876 16,070,175 --- --- --- 23,231,952 --- 461,025 --- 590,351 --- 2,492,915 17,113,655 239,817,622 3,756,744 3,300,541 18,518,378 259,357,495 9,279,317 80,019 123,900 534,319 141,969 46,595 80,796 339,422 82,140 126,614 204,696 873,741 224,109 6,903,959 1,916,767 371,885,503 17,271,332 1,723,591 --- 1,723,591 --- --- --- 12,384,132 --- 5,018,865 (1,569,535) 97,205,209 19,754,924 13,646,415 $ 347,232 $ 483,198,435 $ 37,026,256 $ BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 37 -- 61 of 234 -- CITY OF -- 62 of 234 -- CITY OF DES MOINES, IOWA RECONCILIATION OF THE ENTERPRISE FUNDS NET POSITION TO THE STATEMENT OF NET POSITION June 30, 2024 Net position of enterprise funds 483,198,435 $ (19,987,382) Net position of business-type activities 463,211,053 $ 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 -- 63 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2024 PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Operating revenues: Charges for sales and services 11,225,195 $ 50,201,465 $ 34,539,306 $ Intergovernmental --- --- --- Miscellaneous 193 12,007 34,802 Total operating revenues 11,225,388 50,213,472 34,574,108 Operating expenses: Personal services 1,036,712 5,269,791 6,118,320 Contractual services 4,721,668 22,676,467 5,382,856 Commodities 241,665 685,487 836,548 Depreciation 4,455,011 5,400,813 5,356,337 Other charges 1,708,127 5,724,760 3,526,435 Total operating expenses 12,163,183 39,757,318 21,220,496 Operating income (loss) (937,795) 10,456,154 13,353,612 Non-operating revenues (expenses): Investment earnings 186,781 2,315,265 5,161,857 Proceeds from damage claims --- --- --- Interest expense and fiscal charges (1,139,820) (683,922) (4,056,966) Gain (loss) on disposal of capital assets --- 57,736 33,765 Total nonoperating revenues (expenses) (953,039) 1,689,079 1,138,656 Income (loss) before transfers, capital grants and contributions (1,890,834) 12,145,233 14,492,268 Capital grants and contributions --- 1,357,455 1,903,270 Transfers in 800,000 4,760,500 5,367,859 Transfers out --- (1,056,391) (2,508,581) Change in net position (1,090,834) 17,206,797 19,254,816 Total net position - beginning 44,214,974 209,105,014 180,514,021 Total net position - ending 43,124,140 $ 226,311,811 $ 199,768,837 $ The notes to the financial statements are an integral part of this statement. BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 40 -- 64 of 234 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS 1,768,265 $ 18,097,729 $ 115,831,960 $ 60,624,746 $ 26,133,289 --- 26,133,289 --- --- 84,070 131,072 8,988 27,901,554 18,181,799 142,096,321 60,633,734 3,398,423 5,641,629 21,464,875 6,058,568 22,447,750 9,237,335 64,466,076 38,440,565 --- 494,208 2,257,908 7,254,346 1,004,873 712,681 16,929,715 5,020,713 --- 612,023 11,571,345 50,192 26,851,046 16,697,876 116,689,919 56,824,384 1,050,508 1,483,923 25,406,402 3,809,350 354,822 750,530 8,769,255 --- --- --- --- 9,251 --- (188,220) (6,068,928) --- --- (10,378) 81,123 136,736 354,822 551,932 2,781,450 145,987 1,405,330 2,035,855 28,187,852 3,955,337 307,753 6,200 3,574,678 --- --- --- 10,928,359 100,000 --- (43,307) (3,608,279) --- 1,713,083 1,998,748 39,082,610 4,055,337 11,933,332 (1,651,516) 444,115,825 32,970,919 13,646,415 $ 347,232 $ 483,198,435 $ 37,026,256 $ BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 41 -- 65 of 234 -- CITY OF -- 66 of 234 -- 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, 2024 Net changes in net position in enterprise funds 39,082,610 $ (1,053,096) Change in net position of business-type activities 38,029,514 $ 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 -- 67 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2024 SEWER STORMWATER PARKING SYSTEM UTILITY 11,220,255 53,028,442 34,899,971 --- --- --- (6,795,018) (29,126,491) (9,585,322) (1,139,636) (5,644,587) (6,162,290) --- --- 34,801 3,285,601 18,257,364 19,187,160 ACTIVITIE S (438,320) --- --- --- 24,750 50,250 800,000 4,760,500 5,367,859 --- (1,056,391) (2,508,581) Net cash provided by (used in) noncapital and 361,680 3,728,859 2,909,528 FINANCING ACTIVITIES --- 1,357,455 1,903,270 (1,122,169) (667,506) (4,936,683) (1,154,389) (2,300,000) (7,325,000) Proceeds from issuance of revenue bonds and notes --- 3,546,762 21,822,051 --- --- 783,900 --- --- --- --- 62,360 45,569 (733,849) (12,691,177) (17,717,710) Net cash provided by (used in) capital and related (3,010,407) (10,692,106) (5,424,603) --- --- 11,538,179 --- --- (2,821,048) 186,781 2,315,265 5,077,659 186,781 2,315,265 13,794,790 823,655 13,609,382 30,466,875 3,899,016 39,119,632 18,848,980 4,722,671 52,729,014 49,315,855 BUSINESS-TYPE ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from Interfund services provided Payments to Suppliers Payments to interfund accounts Proceeds from interfund accounts Transfers in Transfers out Payments to Employees Receipts from miscellaneous revenue Net cash provided by (used in) operating activities CASH FLOWS FROM NONCAPITAL FINANCING related financing activities CASH FLOWS FROM CAPITAL AND RELATED Proceeds from intergovernmental and capital grants Interest paid on capital debt Principal paid on long-term debt and leases from direct borrowings Proceeds from premium on revenue bonds Proceeds from damage claims Proceeds from sale of capital assets Acquisition and construction of capital assets financing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Purchase of investments Interest and dividends received Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 44 -- 68 of 234 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS 28,296,563 17,979,292 145,424,523 51,077,891 --- --- --- 9,753,676 (22,679,310) (11,199,324) (79,385,465) (45,806,831) (3,490,330) (5,988,667) (22,425,510) (6,148,960) --- --- 34,801 --- 2,126,923 791,301 43,648,349 8,875,776 --- (386,393) (824,713) (18,708) --- --- 75,000 --- --- --- 10,928,359 100,000 --- (43,307) (3,608,279) --- --- (429,700) 6,570,367 81,292 307,753 6,200 3,574,678 --- --- (295,873) (7,022,231) --- --- (600,000) (11,379,389) --- --- --- 25,368,813 --- --- --- 783,900 --- --- --- --- --- --- 92,503 200,432 164,280 (309,753) --- (31,452,489) (6,163,640) (2,000) (797,170) (19,926,286) (5,999,360) --- --- --- --- --- --- --- --- 354,822 896,192 8,830,719 --- 354,822 896,192 8,830,719 --- 2,479,745 460,623 39,123,149 2,957,708 6,409,693 13,345,540 81,622,861 23,499,613 8,889,438 13,806,163 120,746,010 26,457,321 45 -- 69 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2024 SEWER STORMWATER PARKING SYSTEM UTILITY Reconciliaiton of cash and cash equivalents to specific 4,722,671 $ 52,375,932 $ 32,982,340 $ --- 353,082 16,333,515 --- --- 21,851,856 --- --- (21,851,856) 4,722,671 52,729,014 49,315,855 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities (937,795) 10,456,154 $ 13,353,612 $ 4,455,011 5,400,813 5,356,337 807 110,927 (7,058) (Increase) decrease in due from other (5,940) 2,704,044 367,723 --- --- --- 8,043 14,016 11,585 (131,601) (53,794) 148,931 (85,664) 3,193 1,746 Increase (decrease) in accrued employee benefits and 34,050 274,804 85,099 --- --- --- Decrease in other liabilities, self-sufficiency participation --- --- --- 40,846 (484,700) (516,206) (157,702) (374,674) (219,123) 65,546 206,581 604,514 4,223,396 7,801,210 5,833,548 3,285,601 18,257,364 19,187,160 --- --- 84,198 Schedule of noncash Capital and Related financing --- 57,736 33,765 --- 1,054,831 (801,552) --- 1,357,455 1,903,270 The notes to the financial statements are an integral part of this statement BUSINESS-TYPE ACTIVITIES assets on the combined statement of net position Unrestricted cash and investments Restricted cash and investments - current Restricted cash and investments - noncurrent cash equivalents Cash and cash equivalents, end of year Less items not meeting the definition of Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation expense (Increase) decrease in accounts and taxes receivable governmental units Increase in inventories (Increase) decrease in prepaid items Increase (decrease) in accounts and contracts payable Increase in accrued wages payable other postemployment benefits Decrease in due to other governmental units and tenent security deposits Increase (decrease) in deferred outflows (Decrease) in deferred inflows Gain (loss) on disposal of capital assets Payments on accounts or contracts payable for acquisition of capital assets Capital assets contributed Increase in net pension liability Total adjustments Net cash provided by (used in) operating activities Schedule of noncash investing and financing activities: Increase (decrease) in fair value of investments activities: 46 -- 70 of 234 -- GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS 7,165,847 $ 13,806,163 $ 111,052,953 $ 26,457,321 $ --- --- 16,686,597 --- 1,723,591 --- 23,575,447 --- --- --- (21,851,856) --- 8,889,438 13,806,163 129,463,141 26,457,321 1,050,508 $ 1,483,923 25,406,402 3,809,350 1,004,873 712,681 16,929,715 5,020,713 (31,804) (177,300) (104,428) (113,201) 109,697 (25,207) 3,150,317 325,743 --- --- --- 45,604 (431) 33,213 38,235 (231,560) (855,327) (1,123,351) (834,567) 11,855 2,822 (66,048) 5,983 98,697 143,515 636,165 965,317 115,077 --- 115,077 --- 202,039 --- 202,039 --- (226,201) (431) (1,186,692) (419,912) (153,414) (844,450) (1,749,363) (265,095) 177,156 351,506 1,405,303 297,606 1,076,415 (692,622) 18,241,947 5,066,426 2,126,923 791,301 43,648,349 8,875,776 --- --- 84,198 --- --- (10,378) 81,123 136,736 --- --- 253,279 --- --- --- 3,260,725 --- 47 -- 71 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS - CUSTODIAL June 30, 2024 WATER RECLAMATION AUTHORITY ASSETS Cash 38,051,578 $ Investments 45,106,146 Receivables 11,045,932 Prepaids 196,225 Capital assets, net of depreciation 694,196,710 Total assets 788,596,591 LIABILITIES Accounts payable 12,128,139 Accrued employee expenses 2,352,246 Accrued interest payable 850,528 Bonds payable 455,831,326 Total liabilities 471,162,239 Deferred Inflows of Resources, deferred charge on refunding 576,232 NET POSITION (DEFICIT) Restricted for other governments 316,858,120 Total net position (deficit) 316,858,120 $ The notes to the financial statements are an integral part of this statement. 48 -- 72 of 234 -- CITY OF DES MOINES, IOWA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS - CUSTODIAL For the Fiscal Year Ended June 30, 2024 WATER RECLAMATION AUTHORITY Additions: Charges for sales and services 69,191,820 $ Sales tax 1,772,712 Investment earnings 3,687,169 Gain on disposal of capital assets 355,048 Total additions 75,006,749 Deductions: Payments to suppliers & employees 27,386,325 Interest expense and fiscal charges 9,789,192 Depreciation 27,618,554 Total operating expenses 64,794,071 Operating income (loss) 10,212,678 Change in net position 10,212,678 Total net position (deficit) - beginning 306,645,442 Total net position (deficit) - ending 316,858,120 $ The notes to the financial statements are an integral part of this statement. 49 -- 73 of 234 -- CITY OF -- 74 of 234 -- 51 CITY OF DES MOINES, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2024 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- -- 75 of 234 -- 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. -- 76 of 234 -- 53 The following comprise the City's major governmental funds: (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. -- 77 of 234 -- 54 Park Improvement Projects – To account for funding and construction for major projects related to improvements to the City’s Parks System. 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. (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 received $94.80 million in total, and must have those funds obligated by December 31, 2024 and fully spent by December 31, 2026. (i) Other Employee Benefits Other Employee Benefits became a major fund in fiscal year 2024. Previously a nonmajor fund, Other Employee Benefits tracks the receipt of tax revenue levied for the purposes of funding the employers’ share of costs of employee benefits that are not related to pensions or retirement. -- 78 of 234 -- 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. 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. 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. -- 79 of 234 -- 56 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 purposes. 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. -- 80 of 234 -- 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 fund is included in this fund type: 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 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 expenditures, as well as expenditures related to compensated absences, net pension liabilities, other postemployment benefits and claims and judgments, leases, are recorded only when payment is due. -- 81 of 234 -- 58 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 2024 levy as based on the 2022 assessed valuations. The tax lien date is January 1, 2023. As the levy is intended for use in the 2024 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, 2024 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. -- 82 of 234 -- 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, 2024, the allowance for uncollectible amounts was $4,161,311. As of June 30, 2024, the City also had approximately $5,647,390 of loans outstanding which, due to the terms and nature of the agreements, are 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. -- 83 of 234 -- 60 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: 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 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 234 -- 61 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 assets 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 four sources: leases, 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 assets 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 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. -- 85 of 234 -- 62 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: 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. -- 86 of 234 -- 63 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 $29,011,414 for debt service and $25,527,087 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, 2024, the governmental activities had unspent bond proceeds of $92,652,664. The City also had unspent bond proceeds of $15,211,984 in the Stormwater Utility fund. 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, 2024, there was no allowance for doubtful accounts. -- 87 of 234 -- 64 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 when incurred. 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 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. W. Leases As lessor, the City recognizes a lease receivable. The lease receivable is measured using the net present value of future lease payments to be received for the lease term. The corresponding deferred inflows of resources are recognized as inflows on a straight-line basis over the term of the lease. As lessee, the City recognizes a lease liability and an intangible right-of-use lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying leased asset. The threshold for determining long-term leases is a net present value of future payments in excess of $100,000. The net present value of future lease payments is determined by using an estimated borrowing rate -- 88 of 234 -- 65 based on the City’s bond rating and the duration of the lease. Payments are applied first to accrued interest and then to the lease liability. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. For lease contracts that are short-term, the City recognizes short-term lease payments as inflows of resources (revenues). Liabilities are only recognized if payments are received in advance, and receivables are only recognized if payments are received subsequent to the reporting period. X. Subscription-Based Information Technology Agreements (SBITAs) As lessee, for noncancelable SBITAs for the right-to-use information technology software, the City initially measures the subscription liability as the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of the subscription payments made. The right-to-use subscription asset is initially measured at the initial amount of the subscription IT liability, less subscription payments at or before the subscription commencement date, less any vendor incentives received. The right-to-use asset is offset by accumulated amortization which is expensed on a straight-line basis over the useful life of the asset. 2. Individual Fund Disclosures The following is a summary of deficit fund balances/net position of individual funds at June 30, 2024: DEFICIT DEFICIT FUND NET FUND TYPE INDIVIDUAL FUND BALANCES POSITION Governmental Nonmajor Special Revenue, Community Services 1,182,210 - Proprietary Nonmajor Enterprise, Golf - 72,084 Proprietary Internal Service, Equipment Service Center - 529,802 Proprietary Internal Service, Forestry - 1,724,047 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. -- 89 of 234 -- 66 The Library Foundation has an endowment fund. As of December 31, 2023, the balance of $3,976,700 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 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. -- 90 of 234 -- 67 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, 2024: Investment Maturities (in Years) Security Current Less Description Fair Value Than 1 1 - 5 6 - 10 Commercial Paper Total 24,643,500 $ 24,643,500 $ - $ - $ FFCB Total 36,285,787 19,947,042 16,338,745 - FHLB Total 309,864,570 225,770,650 84,093,920 - Farmer Mac Total 4,997,000 - 4,997,000 - FHLMC Total 7,661,140 7,661,140 - - FNMA Total 2,925,608 - 2,925,608 - US Treasury Total 90,328,790 73,429,200 16,899,590 - Grand Total 476,706,395 $ 351,451,532 $ 125,254,863 $ - $ The above table includes the investments of the WRA, a custodial fund, of $82,643,378. 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. As of June 30, 2024, the City’s investments were rated as follows: Security Description Moody's Standard & Poor's Commercial Paper Prime-1 A-1 FFCB Aaa AA+ FHLB Aaa AA+ Farmer Mac Aaa AA+ FHLMC 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 -- 91 of 234 -- 68 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 FHLB (14%) and Treasuries (67%) 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, 2024, 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, 2024, $476,706,394 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 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. -- 92 of 234 -- 69 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Investments by Balance at Identical Assets Inputs Inputs fair value level June 30, 2022 Level 1 Level 2 Level 3 US Treasury Securities 90,328,790 $ — $ 90,328,790 $ — $ US Agency Securities 361,734,105 111,877,850 249,856,255 — Commercial Paper 24,643,500 — 24,643,500 — Total 476,706,395 $ 111,877,850 $ 364,828,545 $ — $ 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. A reconciliation of cash and investments as shown on the financial statements of the City follows: Cash and equivalents 164,233,312 $ Investments 476,706,395 640,939,707 $ Current assets: Unrestricted Cash and investments 517,519,939 $ Restricted cash and investments 16,686,597 Noncurrent assets: Restricted cash and investments 23,575,447 Fiduciary funds: Cash and investments 83,157,724 640,939,707 $ -- 93 of 234 -- 70 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 2015E, 2021A and 2024B 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. As of June 30, 2024, the Series 2015E bonds had a balance of $21,645,000 and the City of Des Moines’ estimated future allocation based on the WRA flows is currently $5,077,156. As of June 30, 2024, the Series 2021A bonds had a balance of $30,570,000 and the City of Des Moines’ estimated future allocation based on the WRA flows is currently $7,744,939. As of June 30, 2024, the Series 2024B bonds had a balance of $25,150,000 and the City of Des Moines’ estimated future allocation based on the WRA flows is currently $10,809,722. The State Revolving Loans are allocated based on the WRA flows of the participating communities. As of June 30, 2024, the WRA had $373,386,852 in State Revolving Loans with allocation governed by the WRA Agreement, of which $126,206,353 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. -- 94 of 234 -- 71 Condensed financial information of the joint venture as of June 30, 2024 is as follows: Statement of Net Position Current assets 60,993,868 $ Noncurrent assets 727,602,723 Total assets 788,596,591 $ Current liabilities 38,471,088 $ Noncurrent liabilities 432,691,151 Total liabilities 471,162,239 $ Deferred inflow of resources 576,232 $ Net position: Net investment in capital assets 244,594,991 $ Restricted 32,571,968 Unrestricted 39,691,161 316,858,120 $ Statement of Revenues, Expenses and Changes in Net Position Operating revenues 69,191,820 $ Operating expenses 55,004,879 Operating income 14,186,941 Nonoperating, net (3,974,263) Change in net position 10,212,678 $ Statement of Cash Flows Cash provided by operating activities 41,022,739 $ Cash (used in) investing activities (13,885,748) Cash (used in) capital and related financing activities (23,413,544) Increase in cash and pooled cash 3,723,447 $ -- 95 of 234 -- 72 5. Leases City as lessor: the City leases buildings and land to various third parties. These leases have terms between 20 and 50 years with payment terms ranging from monthly to annual. Total inflows by fund for the year ending June 30, 2024 were: Capital General Projects Total Lease revenue 182,043 14,696 196,739 Interest income 68,126 2,935 71,061 Future principal and interest receipts on the lease assets as of June 30, 2024 are summarized below: YEAR Principal Interest Principal Interest 2025 111,001 $ 66,455 13,253 $ 2,747 2026 117,914 64,678 13,442 2,558 2027 125,092 62,790 13,635 2,365 2028 132,545 60,786 13,830 2,170 2029 140,280 58,663 14,028 1,972 2029-2033 809,284 257,018 73,212 6,788 2034-2038 912,208 188,976 54,436 1,565 2039-2043 1,166,407 105,179 - - 2044-2048 158,520 40,112 - - 2049-2053 30,172 36,596 - - 2054-2058 32,833 33,935 - - 2059-2063 35,729 31,038 - - 2064-2068 38,881 27,887 - - 2069-2073 42,311 24,457 - - 2074-2078 46,043 20,725 - - 2079-2083 50,104 16,664 - - 2084-2088 54,523 12,244 - - 2089-2093 59,333 7,435 - - 2094-2098 51,213 2,201 - - Totals 4,114,393 $ 1,117,839 $ 195,836 $ 20,165 $ General Fund Capital Projects City as lessee: the City leases buildings and land improvements from various third parties. These leases have terms between 20 and 50 years with payment terms ranging from monthly to annual. As of June 30, 2024, the amount of right-to-use (leased) assets, and the related amortization expense, can be found in Note 6, Changes in Capital Assets. Additionally, a table summarizing future lease payments can be found in Note 9, Long-term Debt. -- 96 of 234 -- 73 6. Changes in Capital Assets The following summary of changes in Governmental Activity capital assets for the year ended June 30, 2024: BEGINNING ENDING BALANCE BALANCE 7/1/2023 ADDITIONS DELETIONS 6/30/2024 GOVERNMENTAL ACTIVITIES Capital Assets, not being depreciated: Land 157,257,288 $ 12,786,355 $ (435,714) $ 169,607,929 $ Construction in Progress 193,356,022 70,692,338 (31,581,915) 232,466,445 Total capital assets not being depreciated 350,613,310 83,478,693 (32,017,629) 402,074,374 Capital Assets, being depreciated or amortized: Buildings 310,853,925 29,542,339 - 340,396,264 Improvements Other than Buildings 1,479,543,474 48,064,650 - 1,527,608,124 Machinery and Equipment 125,664,624 7,027,828 (2,031,756) 130,660,696 Right-of-Use Buildings 1,874,083 - - 1,874,083 Right-of-Use Subscription Assets 3,667,940 - (3,066,531) 601,409 Total capital assets being depreciated or amortized 1,921,604,046 84,634,817 (5,098,287) 2,001,140,576 Less accumulated depreciation and amortization for: Buildings 144,436,937 10,033,478 - 154,470,415 Improvements Other than Buildings 732,373,803 42,962,871 - 775,336,674 Machinery and Equipment 91,987,759 9,836,917 (1,980,683) 99,843,993 Right-of-Use Buildings 90,500 45,250 - 135,750 Right-of-Use Subscription Assets 2,801,499 496,574 (3,066,531) 231,542 Total accumulated depreciation and amortization 971,690,498 63,375,090 (5,047,214) 1,030,018,374 Total capital assets, being depreciated or amortized, net 949,913,548 21,259,727 (51,073) 971,122,202 Governmental activities capital assets, net 1,300,526,858 $ 104,738,420 $ (32,068,702) $ 1,373,196,576 $ -- 97 of 234 -- 74 The following summary of changes in Business-type Activity capital assets for the year ended June 30, 2024: BEGINNING ENDING BALANCE BALANCE 7/1/2023 ADDITIONS DELETIONS 6/30/2024 BUSINESS-TYPE ACTIVITIES Capital Assets, not being depreciated: Land 29,843,397 $ 96,352 $ - $ 29,939,749 $ Construction in Progress 96,802,193 26,753,446 (27,705,020) 95,850,619 Total capital assets not being depreciated 126,645,590 26,849,798 (27,705,020) 125,790,368 Capital Assets, being depreciated or amortized: Buildings 105,321,606 788,450 - 106,110,056 Improvements Other than Buildings 549,405,983 33,192,744 - 582,598,727 Machinery and Equipment 30,665,538 267,468 (1,645,045) 29,287,961 Right-of-Use Buildings 29,996,021 - - 29,996,021 Total capital assets being depreciated depreciated or amortized 715,389,148 34,248,662 (1,645,045) 747,992,765 Less accumulated depreciation and amortization for: Buildings 83,784,222 4,092,590 - 87,876,812 Improvements Other than Buildings 165,921,051 11,289,458 - 177,210,509 Machinery and Equipment 24,258,197 1,376,987 (1,525,738) 24,109,446 Right-of-Use Assets 341,360 170,680 - 512,040 Total accumulated depreciation and amortization 274,304,830 16,929,715 (1,525,738) 289,708,807 Total capital assets, being depreciated or amortized, net 441,084,318 17,318,947 (119,307) 458,283,958 Business-Type activities capital assets, net 567,729,908 $ 44,168,745 $ (27,824,327) $ 584,074,326 $ -- 98 of 234 -- 75 Depreciation and Amortization Expense was charged to the functions of the primary government as follows: GOVERNMENTAL ACTIVITIES Public Safety 6,122,545 General Government 4,166,655 Public Works 34,115,827 Health and Social Services Culture and Recreation 11,462,143 Community and Economic Development 2,487,207 Internal service assets are charged to the various functions based on their useage of the assets 5,020,713 Total Depreciation Expense - Governmental Activities 63,375,090 $ BUSINESS-TYPE ACTIVITIES Parking Facilities System 4,455,011 $ Sewer System 5,400,813 Stormwater Utility 5,356,337 Municipal Housing Agency 1,004,873 Solid Waste System 601,071 Golf 111,610 Total Depreciation Expense - Business-type Activities 16,929,715 $ 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, 2024, the City had the following balances related to its pension accounts: IPERS MFPRSI Total Net Pension Liability 47,641,230 $ 118,928,293 $ 166,569,523 $ Deferred Inflows 1,725,868 2,254,176 3,980,044 Deferred Ouflows 20,779,148 38,033,893 58,813,041 Pension Expense 4,305,090 17,697,093 22,002,183 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. -- 99 of 234 -- 76 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 -- 100 of 234 -- 77 assumptions and methods approved by the IPERS Investment Board. The actuarial 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 2024, 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, 2024 were $8,970,840. Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2024, the City reported a liability of $47,641,230 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, 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, 2023, the City’s collective proportion was 1.032485% which was an increase of .032409% from its proportion measured as of June 30, 2022. For the year ended June 30, 2024, the City recognized pension expense of $4,305,090. At June 30, 2024, 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 4,030,513 $ (195,822) $ Changes of assumptions — (756) Net difference between projected and actual earnings on pension plan investments 4,412,152 — Changes in proportion and differences between City contributions and proportionate share of contributions 3,365,641 (1,529,290) Total deferred amounts to be recognized in pension expense in future periods 11,808,306 (1,725,868) City contributions subsequent to the measurement date 8,970,842 — Total deferred amounts related to pension 20,779,148 $ (1,725,868) $ -- 101 of 234 -- 78 $8,970,842 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, 2025. 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 2024 (661,208) $ 2025 (3,002,743) 2026 11,210,973 2027 2,188,647 2028 346,769 Total 10,082,438 $ There were no non-employer contributing entities at IPERS. Actuarial Assumptions: The total pension liability in the June 30, 2023 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, 2023 valuation were based on the result of actuarial experience studies with dates corresponding to those listed above. Mortality rates were based on the PubG-2010 Generational Mortality Tables, with age setbacks and age set forwards based on different membership groups. Future mortality improvements were anticipated using Projection Scale MP-2021. 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. -- 102 of 234 -- 79 The target allocation and best 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 23.0% 2.69% Domestic Equity 21.0% 4.56% Private Equity 17.0% 10.44% International Equity 16.5% 6.22% Private Real Assets 9.0% 3.88% Global Smart Beta Equity 5.0% 5.22% Private Credit 4.5% 4.60% Public Credit 3.0% 4.38% Cash 1.0% 1.59% 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 101,295,860 $ 47,641,230 $ 2,677,755 $ 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. -- 103 of 234 -- 80 Payables to the Pension Plan: At June 30, 2024, the City reported payables to the defined benefit pension plan of $185,236 for legally required employer contributions and $123,186 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. -- 104 of 234 -- 81 Disability and Death Benefits: Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred 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, 2024. 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 22.98% for the year ended June 30, 2024. The City's contributions to MFPRSI for the year ended June 30, 2023 were $15,902,123. 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). -- 105 of 234 -- 82 There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2024. Net Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2024, the City reported a liability of $118,928,293 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, 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, 2023, the City’s proportion was 18.9921% which was an increase of 0.4546% from its proportion measured as of June 30, 2022. For the year ended June 30, 2024, the City recognized pension expense of $17,697,093. At June 30, 2024, 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 9,086,288 $ (4) $ Changes of assumptions 599,116 — Net difference between projected and actual earnings on pension plan investments 7,572,769 — Changes in proportion and differences between City contributions and proportionate share of contributions 4,873,597 (2,254,172) Total deferred amounts to be recognized in pension expense in future periods 22,131,770 (2,254,176) City contributions subsequent to the measurement date 15,902,123 — Total deferred amounts related to pension 38,033,893 $ (2,254,176) $ -- 106 of 234 -- 83 $15,902,123 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, 2025. 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 2024 1,484,894 $ 2025 (3,786,358) 2026 18,233,064 2027 3,769,458 2028 176,536 Total 19,877,594 $ Actuarial Assumptions: The total pension liability in the June 30, 2023 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, 2023 valuation were based on the results of actuarial experience study for the 10-year period ending June 30, 2022. 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. -- 107 of 234 -- 84 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 June 30, 2023 (see the discussion of the pension plan’s investment policy) are summarized in the following tables: Asset Class Long-Term Expected Real Rate of Return Broad Fixed Income 4.9% Broad U.S. Equity 7.1% Global Equity 7.2% Broad Non-U.S. Equity 7.4% Managed Futures 5.2% Real Estate-Core 6.8% Opportunistic Real Estate 11.1% Global Infrastructure 6.9% Private Credit 10.1% Private Equity 12.1% 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. 1% Decrease (6.5%) Discount Rate (7.5%) 1% Increase (8.5%) City's proportionate share of the net pension liability 208,282,580 $ 118,928,293 $ 44,960,469 $ -- 108 of 234 -- 85 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, 2024, the City of Des Moines reported payables to the defined benefit pension plan of $313,850 for legally required employer contributions and $132,271 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, 2024, the City made $3,972,901 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. -- 109 of 234 -- 86 9. Long-term Debt The following is a summary of changes in long-term debt for the year ended June 30, 2024: BALANCE JUNE 30, 2023 ADDITIONS RETIREMENTS BALANCE JUNE 30, 2024 DUE WITHIN ONE YEAR RANGE OF INTEREST RATES Governmental Activities: General Obligation Bonds 512,150,000 $ 69,665,000 $ (47,875,000) $ 533,940,000 $ 45,290,000 $ 0.50% to 5.00% Add premiums 33,622,238 3,254,207 (5,660,254) 31,216,191 — Net General Obligation Bonds 545,772,238 72,919,207 (53,535,254) 565,156,191 45,290,000 Section 108 Loans payable 5,196,000 — (903,000) 4,293,000 953,000 2.55% to 2.87% Notes Payable 1,439,083 — (539,210) 899,873 464,336 2.80% to 10.55% Notes from Direct Borrowings and Private Placement 1,089,000 33,000,000 (1,089,000) 33,000,000 1,805,000 4.00% Lease Liabilities 1,795,503 — (32,177) 1,763,326 33,007 0.85% to 1.70% Subscription-Based Liabilities 477,163 — (113,274) 363,889 119,245 1.00% to 2.00% Accrued Employee Benefits 47,071,689 60,934,343 (38,074,024) 69,932,008 56,219,108 N/A Liability for Claims/Judgments 8,818,000 8,377,098 (3,039,798) 14,155,300 14,155,300 N/A 611,658,676 $ 175,230,648 $ (97,325,737) $ 689,563,587 $ 119,038,996 $ Business-type Activities General Obligation Bonds 16,885,000 $ — $ (1,065,000) $ 15,820,000 $ 1,090,000 $ 1.25% to 5.00% Add Premiums 1,607,664 — (267,489) 1,340,175 — Net General Obligation Bonds 18,492,664 — (1,332,489) 17,160,175 1,090,000 Revenue Bonds 108,235,000 21,755,000 (5,525,000) 124,465,000 6,440,000 2.00% to 5.00% Add Premiums 6,089,219 783,900 (820,215) 6,052,904 — Net Revenue Bonds 114,324,219 22,538,900 (6,345,215) 130,517,904 6,440,000 Revenue Bonds from Direct Borrowings & Private Placement 61,495,289 3,613,813 (3,213,102) 61,896,000 3,257,000 1.02% to 2.00% Lease Liabilities 25,596,977 — (1,154,390) 24,442,587 1,210,635 1.07% to 7.50% Accrued Employee Benefits 2,761,667 4,617,897 (3,905,839) 3,473,725 1,491,120 N/A 222,670,816 $ 30,770,610 $ (15,951,035) $ 237,490,391 $ 13,488,755 $ 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. -- 110 of 234 -- 87 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 2025 34,485,000 $ 14,159,169 $ 10,805,000 $ 4,388,448 $ 45,290,000 $ 18,547,617 $ 2026 33,225,000 12,683,569 10,150,000 3,951,698 43,375,000 16,635,267 2027 31,430,000 11,189,507 9,280,000 3,545,698 40,710,000 14,735,205 2028 32,270,000 9,849,826 9,580,000 3,195,680 41,850,000 13,045,506 2029 30,290,000 8,577,726 9,670,000 2,850,280 39,960,000 11,428,006 2030-2034 128,335,000 28,574,095 47,750,000 9,899,725 176,085,000 38,473,820 2035-2039 84,940,000 11,761,262 23,405,000 4,498,561 108,345,000 16,259,823 2040-2043 27,220,000 2,012,606 11,105,000 971,950 38,325,000 2,984,556 Totals 402,195,000 $ 98,807,760 $ 131,745,000 $ 33,302,040 $ 533,940,000 $ 132,109,800 $ General Obligation Debt Service Tax Increment Debt Service Governmental Activities Total Proceeds from the Series 2023A General Obligation Bonds totaling $69,665,000 were allocated to certain capital improvement 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, 2024 Balance Maturity Fiscal Year Purpose General Obligation 2020D 11,210,000 $ 2040 Refunding 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 $13,334,300. Principal and interest paid for the current year was $936,381. 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, 2024 Balance Maturity Fiscal Year Purpose General Obligation 2020A 4,610,000 $ 2032 Refunding 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 $5,266,700. Principal and interest paid for the current year was $655,350. -- 111 of 234 -- 88 General Obligation Bonds YEAR PRINCIPAL INTEREST 2025 1,090,000 $ 473,481 $ 2026 1,130,000 418,981 2027 1,160,000 362,481 2028 1,195,000 304,481 2029 1,235,000 244,731 2030-2034 5,300,000 672,594 2035-2039 3,865,000 288,406 2040 845,000 15,844 Totals 15,820,000 $ 2,780,999 $ 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. Stormwater Management Utility Enterprise Fund: The City has issued the following revenue bonds in the Storm Water Utility Enterprise Fund: Series June 30, 2024 Balance Maturity Fiscal Year Purpose Series 2016C 2,590,000 $ 2031 Refund & Capital Improvements Series 2016D 4,625,000 2030 Refund Series 2018C 34,475,000 2038 Capital Improvements Series 2020F 18,440,000 2040 Capital Improvements Series 2021H 24,550,000 2041 Capital Improvements Series 2022B 18,030,000 2042 Capital Improvements Series 2023B 21,755,000 2043 Capital Improvements Proceeds from the 2023B Stormwater Management Utility Revenue Bonds totaled $21,755,000 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 city-wide stormwater utility improvement projects under the City-wide Stormwater Master Plan, Closes Creek watershed improvements, flood mitigation and protection system 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 $163,478,209. Principal and interest paid for the current year and total customer net revenues were $10,000,324 and $24,298,010, respectively. -- 112 of 234 -- 89 Future principal and interest payments on the Enterprise Funds Revenue Bonds as of June 30, 2024 is summarized as follows: Revenue Bonds YEAR PRINCIPAL INTEREST 2025 6,440,000 $ 4,474,813 $ 2026 6,670,000 4,174,013 2027 6,910,000 3,862,213 2028 7,155,000 3,550,463 2029 7,425,000 3,226,063 2030-2034 36,530,000 12,295,450 2035-2039 38,305,000 6,224,844 2040-2043 15,030,000 1,205,350 Totals 124,465,000 $ 39,013,209 $ Business-Type Activities Net position of certain enterprise funds of $9,285,376 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 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, 2024, is $4,293,000 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 $1,034,667 and $30,121,507, respectively. Notes Payable, Governmental Activities: Three new notes payable were created in fiscal year 2022, one covering the purchase of 40 tasers and related equipment in the amount of $115,200; another covering the purchase of 170 tasers and related equipment in the amount of $533,225; and another covering the purchase of 415 body-worn cameras in the amount of $1,574,400. The balances of the notes at June 30, 2024 were $28,800, $241,313 and $629,760, respectively. The direct financing purchase covering the 40 tasers and related equipment is scheduled to mature in fiscal 2025 and the others in fiscal 2026. Also included in notes payable is $76,112 Supplement WF4 and is payable through fiscal year 2024. The principal and interest on the Wells Fargo note is payable from the debt service levy, the principal and interest on the Nissan Leaf direct financing purchase and body-worn cameras direct financing purchases are paid from the Local Option Sales Tax fund and the two taser leases are paid from the annual police budget in the General Fund. Total principal and interest remaining to be paid on the notes payable is $899,873. Principal and interest paid in the current year and the debt service levy were $540,291 and $28,326,596, respectively. -- 113 of 234 -- 90 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 2025 953,000 $ 107,134 $ 464,336 $ — $ 2026 1,008,000 80,621 435,537 — 2027 1,069,000 51,535 — — 2028 1,263,000 18,124 — — Totals 4,293,000 $ 257,414 $ 899,873 $ — $ NOTES PAYABLE GOVERNMENTAL ACTIVITIES Direct placement debt, Governmental Activities: In fiscal year 2024, the City secured a $50,000,000 line of credit known as Tax-Exempt Limited Levy General Obligation Capital Loan Notes, Series 2023. The note is for the purchase and renovation of property at 1200 Locust Street in Des Moines, IA which will serve to replace City offices currently located in City Hall and the Armory Building. As of June 30, 2024, the City has drawn down $33,000,000 with the remaining $17,000,000 scheduled to be drawn in fiscal 2025. The balance of the note payable is $33,000,000 and is payable through 2038. The total principal and interest remaining to be paid on the notes payable is $52,731,664. Principal and interest paid for the current year was $717,036. Future principal and interest payments on the Governmental Direct borrowings as of June 30, 2024 is summarized as follows: Notes from Direct Borrowings and Direct Payments YEAR PRINCIPAL INTEREST 2025 1,805,000 1,987,850 2026 1,880,000 2,308,540 2027 1,955,000 2,218,488 2028 2,030,000 2,124,884 2029 2,115,000 2,027,607 2030-2034 11,905,000 8,535,541 2035-2038 11,310,000 3,112,719 Totals 33,000,000 $ 22,315,629 $ 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 and $7,035,000 of SRF loans to complete the Western Ingersoll Run -- 114 of 234 -- 91 project. At June 30, 2024, 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, $11,134,102 of the Riverbend Sewer Separation project, all $6,247,000 of the Near West Side Sewer Separation Supplemental project, and $15,000,000 of the West Ingersoll Sewer Separation project and $6,921,015 of the phase three West Ingersoll Sewer Separation project. The City has the ability to draw up to an additional $496,461 as work is completed on the Near West Side Sewer Separation Supplemental project, and up to an additional $113,985 as work is completed on the West Ingersoll Sewer Separation project. The amounts that remain to be drawn have been accrued, and are part of the outstanding debt, since the work has been completed at year-end. The Near West Side Sewer Sewer Separation, Lower Oak Park Sewer Separation, Riverbend Sewer Separation, and Near West Side Sewer Separation Supplemental 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. The principal balance outstanding at June 30, 2024, is $8,139,000 in the Sanitary Sewer fund for the Near West Side Sewer Separation project and Yeader Creek Sewer Separation projects, $5,156,000 in the Sanitary Sewer fund for the Lower Oak Park Sewer Separation project, $4,462,000 in the Sanitary Sewer fund for the Riverbend Sewer Separation project, $3,168,000 in the Sanitary Sewer fund for the Near West Side Sewer Separation Supplemental project, $13,753,000 in the Sanitary Sewer fund for the West Ingersoll Sewer Separation project and $6,745,000 in the Sanitary Sewer fund for the phase three West Ingersoll Sewer Separation project, $7,681,000 in the Stormwater fund for the Near West Side Sewer Separation project, $5,156,000 in the Stormwater fund for the Lower Oak Park Sewer Separation project, $4,462,000 for the Riverbend Sewer Separation project, and $3,124,000 in the Stormwater fund for the Near West Side Sewer Separation Supplemental project. Notes from Direct Borrowings and Direct Payments YEAR PRINCIPAL INTEREST 2025 3,257,000 $ 1,045,164 $ 2026 3,306,000 934,365 2027 3,357,000 882,755 2028 3,413,000 830,300 2029 3,462,000 776,917 2030-2034 18,142,000 3,053,508 2035-2039 19,584,000 1,583,486 2040-2042 7,375,000 242,777 Totals 61,896,000 $ 9,349,272 $ Business-Type Activities Leases, Governmental and Business-type Activities: The City has entered into a variety of leases for buildings and land improvements. The only individually significant lease relates to 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. -- 115 of 234 -- 92 Future principal and interest payments on the lease liabilities for both the governmental and business-type leases as of June 30, 2024 are summarized below: YEAR PRINCIPAL INTEREST PRINCIPAL INTEREST 2025 33,007 $ 29,647 1,210,635 $ 1,089,830 2026 33,572 29,082 1,273,775 1,028,577 2027 34,147 28,507 1,338,319 964,033 2028 34,732 27,922 1,258,459 1,043,893 2029 35,327 27,327 1,333,192 969,160 2029-2033 185,917 127,356 7,805,320 3,706,440 2034-2038 202,388 110,882 6,202,199 1,149,162 2039-2043 220,319 92,951 850,988 259,774 2044-2048 239,838 73,432 913,693 197,069 2049-2053 261,087 52,183 981,018 129,744 2054-2058 284,218 29,052 1,053,304 57,458 2059-2063 198,774 5,483 221,685 2,355 Totals 1,763,326 $ 633,824 $ 24,442,587 $ 10,597,495 $ GOVERNMENTAL LEASES BUSINESS-TYPE LEASES Subscription-Based Information Technology Agreements (SBITAs): The City has entered into a variety of SBITAs granting it use of underlying software assets. At inception, these agreements have lives between 2-6 years. Future principal and interest payments on the SBITA liabilities for the City as of June 30, 2024 are summarized below: YEAR PRINCIPAL INTEREST 2025 119,245 $ 6,222 2026 121,285 4,183 2027 123,359 2,109 Totals 363,889 $ 12,514 $ GOVERNMENTAL SBITAs -- 116 of 234 -- 93 Discretely presented component units: 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, 2023: Balance December 31, 2022 1,202,115 $ Additions 577,040 Payments (468,058) Balance December 31, 2023 1,311,097 Less: current portion 93,650 Non-current portion 1,217,447 $ 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, $351,703 of net position is restricted for bond reserves. In the Stormwater Utility Fund, $12,032,429 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. As of June 30, 2024, there were two series of industrial revenue bonds outstanding with an aggregate principal amount payable of $5,840,000. The bonds are payable through calendar year 2036. -- 117 of 234 -- 94 12. 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, 2024 were: INTERFUND RECEIVABLE INTERFUND PAYABLE General 3,210,268 $ — $ Other Governmental Funds 115,222 1,550,330 Capital Projects — 577,443 Sanitary Sewer, Enterprise — 24,750 Stormwater Utility, Enterprise — 50,250 Municipal Housing Agency, Enterprise — 253,731 Internal Service Funds — 868,986 Total 3,325,490 $ 3,325,490 $ ADVANCES ADVANCES RECEIVABLE PAYABLE General 2,062,131 $ — $ Other Enterprise Funds — 2,062,131 Total 2,062,131 $ 2,062,131 $ 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. -- 118 of 234 -- 95 13. 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 57,897,635 $ 72,578,308 $ Debt Service 49,239,195 72,553,738 Tax Increment — 21,693,317 Benefit Tax Accounts — 25,943,412 Local Option Sales Tax — 50,605,891 Capital Projects 163,593,947 2,593,475 ARPA — 9,707,204 Other Employee Benefits 6,000,000 23,370,118 Other Governmental Funds 2,234,663 7,340,057 Parking Facilities System 800,000 — Sewer System 4,760,500 1,056,391 Stormwater Utility 5,367,859 2,508,581 Other Enterprise Funds — 43,307 Internal Service Funds 100,000 — Total 289,993,799 $ 289,993,799 $ Below is a general description of the purpose of transfers by fund: General Fund – transfers in are largely due to moving money from more restrictive governmental funds (Tax Increment, Local Option Sales Tax and ARPA) to the General Fund for the purpose of covering related expenses captured therein. Transfers out of the General Fund relate to Capital Projects being funded by means other than debt. Debt Service – transfers in are from Local Option Sales Tax or Tax Increment and relate to the repayment of debt with those funds. Transfers out are usually related to bonds sold for the purpose of construction projects in the Capital Projects Fund. Tax Increment – transfers out are to Debt Service for the purpose of covering TIF-backed bonds. Benefit Tax Accounts – transfers out are to the General Fund to cover employee benefits paid out of that fund. Local Option Sales Tax – transfers out are to the Debt Service, General or the Capital Projects Funds as the intention of the Local Option Sales Tax fund is to track moneys restricted by law until an appropriate use occurs in another fund. -- 119 of 234 -- 96 Capital Projects – transfers in come from the General, Debt Service, Tax Increment and Local Option Sales Tax Funds and are used to cover construction-related expenses. Transfers out are to Debt Service in the event funds remain at the termination of a project. ARPA – transfers out are to Capital Project and Enterprise funds to cover costs for projects tracked in those funds. Other Governmental Funds – are largely special revenue funds and the transfers out are to the General Fund as expenses therein meet the requirements for the specific special revenue fund in question. Transfers in are from the General Fund as necessary to cover costs. Parking Facilities System – the transfer in comes from Tax Increment and represents TIF funding of the administration of the downtown parking system. Sewer and Stormwater Utility Systems – transfers are largely the movement of funds from one enterprise to the other in order to cover shared costs managed within a specific fund. 14. 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 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 -- 120 of 234 -- 97 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, 2024, the following employees were utilizing benefits described herein: Employees utilizing City's health insurance: Active 1,756 Retired (inactive currently receiving benefits) 153 Total 1,909 The City’s total OPEB liability as of June 30, 2024 was 34,008,841. 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 4.21 percent Health Care Trend Rates 8.00 percent in fiscal 2025, decreasing to 4.50 percent by fiscal 2032 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 as reported by the S&P Municipal Bond 20-year High Grade Rate Index. 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-2021. MFPRSI Employees and Retirees: SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully generational using Scale MP-2021. Surviving Spouses: SOA Pub-2010 Contingent Survivor Headcount Weighted Mortality Table fully generational using Scale MP-2021. -- 121 of 234 -- 98 Changes in the Total OPEB Liability Total OPEB Liability Balance as of June 30, 2023 29,300,054 $ Service cost 1,722,782 Interest 1,247,716 Changes in assumptions 349,652 Difference between expected and actual experience 3,028,807 Benefit payments (1,640,169) Balance as of June 30, 2024 34,008,842 $ 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 (3.21%) or 1% higher (5.21%) than the current discount rate: 1% Decrease Discount Rate 1% Increase 3.21% 4.21% 5.21% Total OPEB Liability 36,409,370 $ 34,008,842 $ 31,729,742 $ 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 (7.00% decreasing to 3.50%) or 1% higher (9.00% decreasing to 5.50%) than the current health care cost trend rate: Health Care 1% Decrease Cost Trend Rate 1% Increase (7.00% Decreasing (8.00% Decreasing (9.00% Decreasing to 3.50%) to 4.50%) to 5.50%) Total OPEB Liability 30,566,931 $ 34,008,842 $ 38,033,266 $ OPEB Expense and deferred outflows of resources and deferred inflows of resources related to OPEB: For the year ended June 30, 2024, the City recognized OPEB expense of $3,496,545. At June 30, 2024, 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 8,203,578 $ (1,754,884) $ Changes in assumptions 1,006,730 (2,598,323) Balance as of June 30, 2023 9,210,308 $ (4,353,207) $ -- 122 of 234 -- 99 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 2025 526,047 $ 2026 526,046 2027 517,631 2028 688,537 2029 703,830 Thereafter 1,895,010 Total 4,857,101 $ 15. 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, 2024. B. Litigation The City Attorney reported that as of June 30, 2024, 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. 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 -- 123 of 234 -- 100 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. -- 124 of 234 -- 101 The following is a summary of estimated claims liability for the year ended June 30, 2024 (with comparative amounts for 2023): 2024 2023 Balance at beginning of year 18,062,767 $ 17,043,767 $ Current year claims and changes in estimate 9,392,998 5,749,102 Claim payments (6,650,480) (4,730,102) Balance at end of year 20,805,285 $ 18,062,767 $ 2024 2023 Balance at beginning of year 8,818,000 $ 5,475,500 $ Current year claims and changes in estimate 8,377,098 4,812,733 Claim payments (3,039,798) (1,470,233) Balance at end of year 14,155,300 $ 8,818,000 $ 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, 2024 (with comparative amounts for 2023) is as follows: 2024 2023 Claims payable, beginning of the year 1,615,000 $ 2,006,000 $ Current year claims and changes in estimate 26,551,532 27,942,245 Claim payments (25,862,532) (28,333,245) Claims payable, end of the year 2,304,000 $ 1,615,000 $ 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, 2024. The -- 125 of 234 -- 102 City has additional commitments for signed construction contracts of approximately $100.99 million as of June 30, 2024. 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. At June 30, 2024, the City owed arbitrage rebates of $35,654, payable in fiscal 2025 for the Series 2020D General Obligation Bonds, $700,038, payable in fiscal 2026 for the Series 2021F General Obligation Bonds, $869,741, payable in fiscal 2027 for the Series 2022A General Obligation Bonds, and $88,702, payable in fiscal 2028 for the Series 2023A General Obligation Bonds. In addition, at June 30, 2024, the City’s Stormwater Utility fund owed arbitrage rebates of $32,471, payable in fiscal 2027 for Series 2021H Stormwater Management Utility Revenue Bonds, and $96,855, payable in fiscal 2028 for Series 2022B Stormwater Management Utility Revenue Bonds. 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 135 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 $318.63 million exist, of which $18.10 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. -- 126 of 234 -- 103 G. Significant Encumbrances The City had outstanding purchase orders (excluding construction contracts disclosed in Section D above) at June 30, 2024 that represented agreements to purchase goods and services. The balances by fund were as follows: General Fund 1,331,678 $ Capital Projects 5,390,139 Other Governmental Funds 2,476,702 Internal Service Funds 2,870,321 12,068,840 $ 16. 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 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, 2024, the City abated $5,237,173 of property tax which would have otherwise flowed to its General Fund and a further $8,977,844 which would have flowed to other local taxing authorities. -- 127 of 234 -- 104 17. New Pronouncements GASB Statement No. 100, Accounting Changes and Error Corrections, was implemented during fiscal year 2024. The new standard requires that changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period. The Other Employee Benefits Special Revenue Fund was presented as nonmajor in fiscal year 2023 and major in fiscal year 2024. As of June 30, 2024, 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. 101, Compensated Absences, issued in June 2022, will be effective for the City beginning with its fiscal year ended June 30, 2024. The object of Statement No. 101 is to better meet the information needs to financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. GASB Statement No. 102, Certain Risk Disclosures, issued in December 2023, will be effective for the City beginning with its fiscal year ended June 30, 2025. Statement No 102 requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. GASB Statement No. 103, Financial Reporting Model Improvements, issued in April 2024, will be effective for the City beginning with its fiscal year ended June 30, 2026. This Statement’s objective is to improve components of the financial reporting model to enhance effectiveness in providing essential information for decision making and to assess a government’s accountability. GASB Statement No. 104, Disclosure of Certain Capital Assets, issued in September 2024, will be effective beginning with its fiscal year ended June 30, 2026. This Statement requires certain information regarding capital assets to be presented by major class. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The City’s management has not yet determined the effect of Statement Nos. 101, 102, 103 or 104. -- 128 of 234 -- 105 18. Subsequent Events On November 12, 2024, the City issued $54,055,000 of General Obligation Bonds, Series 2024A, which will be used for various new money purposes. Principal payments on the General Obligation Bonds begin on June 1, 2025, and continue annually until June 1, 2044. Interest rates on this issue range from 3.0% to 6.0%. On November 12, 2024, the City issued $10,025,000 of Taxable General Obligation Bonds, Series 2024B, which will be used for various new money purposes. Principal payments on the Taxable General Obligation Bonds begin on June 1, 2025, and continue annually until June 1, 2029. Interest rates on this issue are 4.0%. On November 1, 2024, the City received the remaining $17,000,000 in proceeds from the Tax-Exempt Limited Levy General Obligation Capital Loan Notes, Series 2023. For additional information about this transaction please see Footnote 9. Subsequent to year-end, President Trump signed several executive orders (EOs) ordering the pause or termination of federal assistance for programs that do not align with the new administration’s policies. The Administration has tasked federal departments with evaluating all federal programs they administer to determine if the funding being provided falls under any of the EOs. During the year ended June 30, 2024, the City recognized federal financial assistance totaling $52,132,377, and at June 30, 2024 had outstanding federal receivables of $6,795,244. The City has not experienced any issues with the collectability of the receivables as a result of the EOs. As of the date of this report, the full impact of President Trump’s EOs on the City’s federal programs and funding has not been determined. Management is actively monitoring the situation and assessing the potential effects on the City's basic financial statements. -- 129 of 234 -- 19. Fund Balances 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 2,062,131 $ --- $ --- $ --- $ Inventories --- --- --- --- Prepaids 1,115,320 1,375 --- --- Corpus for permanent funds --- --- --- --- Total nonspendable 3,177,451 1,375 --- --- Restricted: Federal, state, and local grants --- --- --- --- Road Use --- --- --- --- Maintenance on public land, cemetery --- --- --- --- Debt Service --- 30,738,710 --- --- Capital improvements and maintenance --- --- --- --- Employee benefits 1,141,008 --- --- 613,266 Police department --- --- --- --- Fire department --- --- --- --- SSMID districts --- --- --- --- Community projects --- --- --- --- Library gift fund --- --- --- --- Sales Tax --- --- --- --- Tort 107,949 --- --- --- Economic development --- --- 22,481,428 --- Human Rights --- --- --- --- Scholarship --- --- --- --- Total restricted 1,248,957 30,738,710 22,481,428 613,266 Committed Capital improvements and maintenance --- --- --- --- Maintenance on public land, cemetery --- --- --- --- Litigation 1,000,000 --- --- --- Economic development --- --- --- --- Total committed 1,000,000 --- --- --- Unassigned 87,185,061 --- --- --- Total fund balances 92,611,469 $ 30,740,085 $ 22,481,428 $ 613,266 $ 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. 106 -- 130 of 234 -- LOCAL AMERICAN OTHER OTHER TOTAL OPTION RESCUE EMPLOYEE CAPITAL GOVERNMENTAL GOVERNMENTAL SALES TAX PLAN BENEFITS PROJECTS FUNDS FUNDS --- $ --- $ --- $ --- $ --- $ 2,062,131 $ --- --- --- --- 578,085 578,085 45 --- 20,752 87,296 507,752 1,732,540 --- --- --- --- 3,363,477 3,363,477 45 --- 20,752 87,296 4,449,314 7,736,233 --- --- --- --- 48,064 48,064 --- --- --- --- 24,949,002 24,949,002 --- --- --- --- 3,801,487 3,801,487 --- --- --- --- --- 30,738,710 --- --- --- 894,271 1,571,714 2,465,985 --- --- 3,053,308 --- 4,027 4,811,609 --- --- --- --- 769,102 769,102 --- --- --- --- 30,123 30,123 --- --- --- --- 391,849 391,849 --- --- --- --- 157,913 157,913 --- --- --- --- 741,816 741,816 19,584,675 --- --- --- --- 19,584,675 --- --- --- --- --- 107,949 --- --- --- --- 675,287 23,156,715 --- --- --- --- 3,479 3,479 --- --- --- --- 1,034 1,034 19,584,675 --- 3,053,308 894,271 33,144,898 111,759,513 --- --- --- 175,255,953 --- 175,255,953 --- --- --- --- 198,367 198,367 --- --- --- --- --- 1,000,000 --- --- --- --- 3,630,430 3,630,430 --- --- --- 175,255,953 3,828,797 180,084,750 --- --- --- (612,748) (1,776,780) 84,795,533 19,584,720 $ --- $ 3,074,060 $ 175,624,772 $ 39,646,229 $ 384,376,029 $ 107 -- 131 of 234 -- CITY OF -- 132 of 234 -- R EQUIRED SUPPLEMENTARY INFORMATION -- 133 of 234 -- CITY OF -- 134 of 234 -- 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, 2024 GOVERNMENTAL ENTERPRISE FUND TYPES FUND TYPES BUDGETARY BASIS BUDGETARY BASIS FINAL TO ACTUAL AMOUNTS ACTUAL AMOUNTS NET ORIGINAL FINAL ACTUAL Revenue: Taxes 255,838,938 $ --- $ 255,838,938 $ 258,252,424 $ 258,921,051 $ (3,082,113) $ Franchise fees 13,240,759 --- 13,240,759 13,450,000 13,450,000 (209,241) Licenses and permits 4,787,755 --- 4,787,755 4,697,663 5,430,000 (642,245) Fines and forfeitures 5,679,194 --- 5,679,194 7,000,000 7,500,000 (1,820,806) Charges for sales and services 22,816,348 115,831,960 138,648,308 121,440,018 122,124,207 16,524,101 Use of money and property 19,476,211 8,769,255 28,245,466 9,853,472 14,033,656 14,211,810 Miscellaneous 19,443,770 212,195 19,655,965 28,023,083 30,807,205 (11,151,240) Intergovernmental 102,909,452 26,133,289 129,042,741 101,356,704 105,783,387 23,259,354 Total revenue 444,192,427 150,946,699 595,139,126 544,073,364 558,049,506 37,089,620 Expenditure: Current: Public safety 147,044,840 --- 147,044,840 137,903,347 143,186,189 (3,858,651) Public works 41,477,256 --- 41,477,256 34,393,783 37,810,900 (3,666,356) Health and social services 14,015,165 --- 14,015,165 14,164,296 14,279,757 264,592 Culture and recreation 30,577,904 --- 30,577,904 27,019,569 27,935,375 (2,642,529) Community and economic development 34,992,258 --- 34,992,258 48,145,218 49,635,877 14,643,619 General government 52,832,151 --- 52,832,151 37,920,493 55,040,314 2,208,163 Business-type --- 99,760,204 99,760,204 143,845,938 192,604,520 92,844,316 Capital outlay 128,929,339 31,452,489 160,381,828 195,794,807 285,935,168 125,553,340 Debt service 70,652,742 18,401,620 89,054,362 76,121,920 70,753,311 (18,301,051) Total expenditure 520,521,655 149,614,313 670,135,968 715,309,371 877,181,411 207,045,443 Excess (deficiency) of revenue over expenditure (76,329,228) 1,332,386 (74,996,842) (171,236,007) (319,131,905) 244,135,063 Other financing sources (uses): Transfers in 279,065,440 10,928,359 289,993,799 274,552,835 359,167,678 (69,173,879) Other financing sources 105,920,207 25,368,813 131,289,020 132,664,991 130,425,196 863,824 Transfers out (286,385,520) (3,608,279) (289,993,799) (274,552,835) (359,167,678) 69,173,879 Total other financing sources (uses) 98,600,127 32,688,893 131,289,020 132,664,991 130,425,196 863,824 Net change in fund balances 22,270,899 34,021,279 56,292,178 (38,571,016) $ (188,706,709) $ 244,998,887 $ Fund balances, beginning of year 398,378,216 59,904,533 458,282,749 Fund balances, end of year 420,649,115 $ 93,925,812 $ 514,574,927 $ The notes to the required supplementary are an integral part of this statement. BUDGETED AMOUNTS 111 -- 135 of 234 -- CITY OF DES MOINES, IOWA BUDGETARY COMPARISON SCHEDULE -- BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2024 BUDGET MODIFIED ACCRUAL MODIFIED ACCRUAL BASIS ADJUSTMENTS ACCRUAL BASIS Revenues 444,192,427 $ 5,795,526 $ 449,987,953 $ Expenditures 520,521,655 --- 520,521,655 Net (76,329,228) 5,795,526 (70,533,702) Other financing sources (uses) 98,600,127 3,814,286 102,414,413 Beginning fund balances 398,378,216 (45,882,898) 352,495,318 Ending fund balances 420,649,115 $ (36,273,086) $ 384,376,029 $ ENTERPRISE FUND TYPES BUDGET MODIFIED ACCRUAL ACCRUAL BASIS ADJUSTMENTS ACCRUAL BASIS Revenues 150,946,699 $ --- $ 150,946,699 $ Expenses 149,614,313 26,855,466 122,758,847 Net 1,332,386 26,855,466 28,187,852 Other financing sources (uses) 32,688,893 (21,794,135) 10,894,758 Beginning fund balances 59,904,533 379,431,727 444,115,825 Ending fund balances 93,925,812 $ 384,493,058 $ 483,198,435 $ See notes to required supplementary information. GOVERNMENTAL FUND TYPES 112 -- 136 of 234 -- 113 CITY OF DES MOINES, IOWA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – BUDGETARY REPORTING June 30, 2023_________________________________________________________________________ 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 $246,486,883. 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, 2024, disbursements exceeded the amounts budgeted in the public safety function, public works function, culture and recreation function, and debt service function. -- 137 of 234 -- CITY OF -- 138 of 234 -- CITY OF DES MOINES, IOWA SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS REQUIRED SUPPLEMENTARY INFORMATION June 30, 2024* June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB liability Service cost 1,722,782 $ 1,658,004 $ 1,594,405 $ 1,524,709 $ 1,454,823 $ 702,378 $ 1,784,438 $ Interest 1,247,716 1,168,690 520,941 632,453 798,010 891,160 785,904 Differences between expected and 1,009,672 actual experience 3,028,807 414,782 6,811,675 (1,636,097) 855,763 (2,537,829) Changes of assumptions or other (933,920) inputs 349,652 (76,674) (2,831,913) 645,877 (993,390) 999,676 Benefit payments (1,640,170) (1,546,653) (1,205,530) (1,244,470) (1,042,697) (1,155,130) (1,192,403) Net change in total OPEB liability 4,708,787 1,618,149 4,889,578 (77,528) 1,072,509 (1,099,745) 1,453,691 Total OPEB liability—beginning 29,300,054 27,681,905 22,792,325 22,869,853 21,797,344 22,897,089 21,443,398 Total OPEB liability—ending 34,008,841 $ 29,300,054 $ 27,681,903 $ 22,792,325 $ 22,869,853 $ 21,797,344 $ 22,897,089 $ Covered-employee payroll 165,911,827 $ 151,699,734 $ 138,829,279 $ 133,211,961 $ 129,018,849 $ 125,853,482 $ 121,243,537 $ Total OPEB liability as a percentage 20.50% 19.31% 19.94% 17.11% 17.73% 17.32% 18.89% of covered-employee payroll Notes to Required Supplementary Information: Funding: There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. 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: 2024 4.21% 2023 4.13% 2022 4.09% 2021 2.19% 2020 2.66% 2019 3.51% 2018 3.87% *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 -- 139 of 234 -- 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, 2023* June 30, 2022 June 30, 2021 June 30, 2020 City's proportion of the net pension liability 1.032485% 1.000436% 0.988061% 0.975698% City's proportionate share of the net pension liability 47,641,220 $ 39,708,284 $ 1,385,179 $ 68,062,237 $ City's covered payroll 92,659,449 $ 84,779,306 $ 80,298,604 $ 75,547,523 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 51.42% 46.84% 1.73% 90.09% Plan fiduciary net position as a percentage of the total pension liability 90.13% 91.40% 99.65% 81.87% *Amounts presented for each fiscal year were determined as of the above measurement date. See notes to required supplementary information 116 -- 140 of 234 -- June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 0.977094% 0.976427% 0.947660% 0.953277% 0.961187% 0.988906% 56,960,233 $ 61,771,261 $ 62,561,805 $ 59,448,726 $ 47,487,290 $ 39,219,101 $ 74,801,432 $ 73,341,533 $ 70,050,080 $ 68,356,528 $ 65,822,469 $ 64,753,315 $ 76.15% 84.22% 89.31% 86.97% 72.14% 60.57% 85.45% 82.57% 81.23% 82.21% 85.19% 87.61% 117 -- 141 of 234 -- 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 2024 8,970,840 $ 8,970,840 $ --- $ 95,156,451 $ 9.427% 2023 8,746,933 8,746,933 --- 92,659,449 9.440% 2022 7,985,163 7,985,163 --- 84,779,306 9.419% 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% See notes to required supplementary information 118 -- 142 of 234 -- 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 2023 valuation implemented the following refinements as a result of a quadrennial experience study: • The inflation assumption remained unchanged at 2.60 percent. • The assumed rate of return on investments changed to 7.00%. • The long-term rate of return assumption remained unchanged at 7.00%. • The payroll growth assumption remained unchanged at 3.25%. -- 143 of 234 -- 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, 2023* June 30, 2022 June 30, 2021 City's proportion of the net pention liability 18.9921% 18.5375% 18.3743% City's proportionate share of the net pension liability 118,928,293 $ 104,100,910 $ 41,263,888 $ City's covered payroll 68,347,887 $ 62,608,615 $ 59,247,812 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 174.00% 166.27% 69.65% Plan fiduciary net position as a percentage of the total pension liability 83.53% 84.62% 93.62% *Amounts presented for each fiscal year were determined as of the above measurement date. See notes to required supplementary information 120 -- 144 of 234 -- June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 18.2230% 18.4372% 18.5243% 18.0072% 18.2983% 145,346,816 $ 120,934,295 $ 110,294,179 $ 105,607,726 $ 119,659,747 $ 57,411,473 $ 55,811,804 $ 53,870,249 $ 50,736,981 $ 49,569,046 $ 253.17% 216.68% 204.74% 208.15% 241.40% 76.47% 79.94% 81.07% 80.60% 78.20% 121 -- 145 of 234 -- 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 2024 15,902,123 $ 15,902,123 $ --- $ 68,923,772 $ 23.072% 2023 15,894,534 15,894,534 --- 68,347,887 23.255% 2022 16,451,910 16,451,910 --- 62,608,615 26.437% 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% See notes to required supplementary information 122 -- 146 of 234 -- 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, 2023, the plan used the following assumptions: • Mortality rates were based on 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. This was unchanged from 2017. • The inflation rate remained unchanged at 3.00%. • The expected salary increases remained unchanged at the range of 3.75 – 15.11%. • The expected rate of return on investment remained at 7.50%. -- 147 of 234 -- CITY OF -- 148 of 234 -- COMBINING STATEMENTS , INDIVIDUAL FUND STATEMENTS AND SCHEDULES -- 149 of 234 -- CITY OF -- 150 of 234 -- CITY OF -- 151 of 234 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET SCHEDULE ALL GENERAL FUND ACCOUNTS June 30, 2024 GENERAL OTHER TOTALS ASSETS Cash and investments 81,035,507 $ 1,230,824 $ 82,266,331 $ Taxes receivable 80,346,175 --- 80,346,175 Accounts receivable 4,717,575 50,000 4,767,575 Accrued interest receivable 3,257,019 --- 3,257,019 Lease receivable 4,114,393 --- 4,114,393 Due from other funds 3,210,268 --- 3,210,268 Due from other governmental units 578,908 --- 578,908 Advance to other funds 2,062,131 --- 2,062,131 Prepaid items 1,115,320 --- 1,115,320 Total assets 180,437,296 $ 1,280,824 $ 181,718,120 $ LIABILITIES Accounts payable 3,604,145 $ 66,627 $ 3,670,772 $ Contracts payable 73,878 --- 73,878 Accrued wages payable 3,603,181 --- 3,603,181 Good faith, security deposits 1,068,787 --- 1,068,787 Total liabilities 8,349,991 66,627 8,416,618 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - leases 3,896,661 --- 3,896,661 Unavailable revenue - property taxes 76,793,372 --- 76,793,372 Total deferred inflows of resources 80,690,033 --- 80,690,033 FUND BALANCES (DEFICITS) Nonspendable 3,177,451 --- 3,177,451 Restricted 1,248,957 --- 1,248,957 Committed 1,000,000 --- 1,000,000 Unassigned 85,970,864 1,214,197 87,185,061 Total fund balance 91,397,272 1,214,197 92,611,469 Total liabilities, deferred inflows of resources and fund balances (deficits) 180,437,296 $ 1,280,824 $ 181,718,120 $ 128 -- 152 of 234 -- 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, 2024 GENERAL OTHER TOTALS Revenues: Taxes 83,890,739 $ --- $ 83,890,739 $ Franchise fees 13,240,759 --- 13,240,759 Licenses and permits 4,701,727 --- 4,701,727 Fines and forfeitures 5,669,352 --- 5,669,352 Charges for sales and services 21,789,586 --- 21,789,586 Use of money and property 19,867,960 --- 19,867,960 Miscellaneous 16,246,975 218,079 16,465,054 Intergovernmental 4,961,868 242,664 5,204,532 Total revenues 170,368,966 460,743 170,829,709 Expenditures: Current: Public safety 118,332,466 350,556 118,683,022 Public works 5,730,230 --- 5,730,230 Health and social services 589,834 --- 589,834 Culture and recreation 25,860,347 --- 25,860,347 Community and economic development 13,337,591 --- 13,337,591 General governmental 33,896,951 52,168 33,949,119 Capital outlay 937,034 937,034 Debt Service: Principal retirement 148,219 --- 148,219 Subscription-based principal payments 113,274 --- 113,274 Interest and fiscal charges 729,230 --- 729,230 Total expenditures 199,675,176 402,724 200,077,900 Excess (deficiency) of revenues over expenditures (29,306,210) 58,019 (29,248,191) Other financing sources (uses): Transfers in 57,897,635 --- 57,897,635 Transfers out (72,451,308) (127,000) (72,578,308) Private debt issued 33,000,000 --- 33,000,000 Proceeds from damage claims 1,000 --- 1,000 Proceeds from capital asset sale 28,146 500 28,646 Total other financing sources (uses) 18,475,473 (126,500) 18,348,973 Net changes in fund balance (10,830,737) (68,481) (10,899,218) Fund balances (deficits), beginning of year 102,228,009 1,282,678 103,510,687 Fund balances (deficits), end of year 91,397,272 $ 1,214,197 $ 92,611,469 $ 129 -- 153 of 234 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET SCHEDULE ALL CAPITAL PROJECTS ACCOUNTS June 30, 2024 MUNICIPAL PARK BRIDGE BUILDINGS STREET IMPROVEMENT PROJECTS PROJECTS PROJECTS PROJECTS Cash and investments 15,101,466 $ 53,845,316 $ 72,893,644 $ 21,514,118 $ Accounts receivable, net of allowance for doubtful accounts --- --- 145,633 --- Lease Receivable --- --- --- 195,836 Due from other governmental units 2,005,160 --- 238,329 1,129,563 Prepaid items --- 3,550 2,280 --- Total assets 17,106,626 $ 53,848,866 $ 73,279,886 $ 22,839,517 $ LIABILITIES Accounts payable 2,826 $ 61,094 $ 27,597 $ 107,419 $ Contracts payable 1,009,299 1,046,708 7,953,930 2,365,938 Accrued wages payable 2,349 7,012 66,832 24,069 Due to other funds --- --- --- --- Unearned revenue --- --- 263,630 --- Total liabilities 1,014,474 1,114,814 8,311,989 2,497,426 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - leases --- --- --- 198,394 Unavailable revenue - intergovernmental 653,613 --- 131,578 757,348 Total deferred inflows of resources 653,613 --- 131,578 955,742 FUND BALANCES (DEFICITS) Nonspendable --- 3,550 2,280 --- Restricted --- --- --- --- Committed 15,438,539 52,730,502 64,834,039 19,386,349 Unassigned --- --- --- --- Total fund balances (deficits) 15,438,539 52,734,052 64,836,319 19,386,349 Total liabilities, deferred inflows of resources and fund balances (deficits) 17,106,626 $ 53,848,866 $ 73,279,886 $ 22,839,517 $ ASSETS 130 -- 154 of 234 -- FIRE SPECIAL URBAN OTHER PROTECTION LIBRARY ASSESSMENT RENEWAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS TOTALS 10,115,823 $ 460,685 $ 894,271 $ --- $ 12,447,594 $ 187,272,917 $ --- 219 --- --- --- 145,852 --- --- --- --- --- 195,836 --- --- --- --- 29,053 3,402,105 --- --- --- --- 81,466 87,296 10,115,823 $ 460,904 $ 894,271 $ --- $ 12,558,113 $ 191,104,006 $ 39,637 $ 41,297 $ --- $ --- $ 83,814 $ 363,684 $ --- --- --- --- 19,637 12,395,512 --- 1,584 --- --- 881 102,727 --- --- --- 577,443 --- 577,443 --- --- --- 35,305 --- 298,935 39,637 42,881 --- 612,748 104,332 13,738,301 --- --- --- --- --- 198,394 --- --- --- --- --- 1,542,539 --- --- --- --- --- 1,740,933 --- --- --- --- 81,466 87,296 --- --- 894,271 --- --- 894,271 10,076,186 418,023 --- --- 12,372,315 175,255,953 --- --- --- (612,748) --- (612,748) 10,076,186 418,023 894,271 (612,748) 12,453,781 175,624,772 10,115,823 $ 460,904 $ 894,271 $ --- $ 12,558,113 $ 191,104,006 $ 131 -- 155 of 234 -- 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, 2024 MUNICIPAL PARK BRIDGE BUILDINGS STREET IMPROVEMENT PROJECTS PROJECTS PROJECTS PROJECTS Revenues: Use of money and property --- $ --- $ --- $ 7,836 $ Miscellaneous --- 2,039,479 735,111 1,496,472 Intergovernmental 4,082,666 --- 4,348,518 847,658 Total revenue 4,082,666 2,039,479 5,083,629 2,351,966 Expenditures: Current: Public safety --- --- --- --- Public works 108,149 --- 9,118,023 --- Culture and recreation --- --- --- 1,337,530 Community and economic development --- --- --- --- General government --- 1,382,115 --- --- Capital outlay 4,324,376 41,564,601 63,398,081 17,386,028 Total expenditures 4,432,525 42,946,716 72,516,104 18,723,558 Excess (deficiency) of revenues over expenditures (349,859) (40,907,237) (67,432,475) (16,371,592) Other financing sources (uses): Transfers in 5,500,000 51,021,671 66,563,139 19,507,910 Transfers out --- (109,000) (518,585) (1,518,680) Proceeds from capital asset sale --- --- 25,640 --- Total other financing sources (uses) 5,500,000 50,912,671 66,070,194 17,989,230 5,150,141 10,005,434 (1,362,281) 1,617,638 10,288,398 42,728,618 66,198,600 17,768,711 Fund balances (deficits), end of year 15,438,539 $ 52,734,052 $ 64,836,319 $ 19,386,349 $ Net changes in fund balance Fund balances (deficits), beginning of year 132 -- 156 of 234 -- FIRE SPECIAL URBAN OTHER PROTECTION LIBRARY ASSESSMENT RENEWAL CAPITAL PROJECTS PROJECTS PROJECTS PROJECTS PROJECTS TOTALS --- $ --- $ 5,390 $ --- $ --- $ 13,226 $ --- 39,384 --- --- 29,138 4,339,584 --- --- --- --- 12,989 9,291,831 --- 39,384 5,390 --- 42,127 13,644,641 211,331 --- --- --- 644 211,975 --- --- --- --- 641,784 9,867,956 --- 881,536 --- --- 2,051,514 4,270,580 --- --- --- --- 4,377,695 4,377,695 --- --- --- --- 684,207 2,066,322 48,138 573,469 --- 20,166 127,314,859 259,469 1,455,005 --- --- 7,776,010 148,109,387 (259,469) (1,415,621) 5,390 --- (7,733,883) (134,464,746) 3,750,000 1,470,000 --- --- 15,781,227 163,593,947 (19,494) --- --- (220,175) (207,541) (2,593,475) --- --- --- --- --- 25,640 3,730,506 1,470,000 --- (220,175) 15,573,686 161,026,112 3,471,037 54,379 5,390 (220,175) 7,839,803 26,561,366 6,605,149 363,644 888,881 (392,573) 4,613,978 149,063,406 10,076,186 $ 418,023 $ 894,271 $ (612,748) $ 12,453,781 $ 175,624,772 $ 133 -- 157 of 234 -- CITY OF DES MOINES, IOWA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2024 OTHER COMMUNITY ROAD USE SPECIAL CDBG SERVICES TAX REVENUE ASSETS Cash and investments --- $ --- $ 20,538,138 $ 7,402,510 $ Taxes receivable --- --- --- 1,822,143 Accounts receivable --- --- 104,235 35,831 Loans receivable, net of allowance for doubtful accounts 362,957 --- 45,000 543,223 Accrued interest receivable 500 --- --- 17,913 Due from other funds --- --- --- 115,222 Due from other governmental units 1,579,819 1,617,993 4,932,518 534,220 Inventory --- --- 578,085 --- Prepaid items --- 229,356 27,404 250,992 Total assets 1,943,276 $ 1,847,349 $ 26,225,380 $ 10,722,054 $ LIABILITIES Accounts payable 678,209 1,030,297 425,784 446,470 Accrued wages payable 48,650 6,051 239,366 455 Accrued employee benefits --- --- 5,739 --- Due to other funds 747,017 676,522 --- 126,791 Good faith, security deposits --- --- --- 120,935 Total liabilities 1,473,876 1,712,870 670,889 694,651 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes --- --- --- 1,391,757 Unavailable revenue - intergovernmental 421,336 1,316,689 --- 4,875 Total deferred inflows of resources 421,336 1,316,689 --- 1,396,632 FUND BALANCES (DEFICITS) Nonspendable --- 229,356 605,489 250,992 Restricted 48,064 --- 24,949,002 4,916,196 Committed --- --- --- 3,828,797 Unassigned --- (1,411,566) --- (365,214) Total fund balances (deficits) 48,064 (1,182,210) 25,554,491 8,630,771 Total liabilities, deferred inflows of resources and fund balances 1,943,276 $ 1,847,349 $ 26,225,380 $ 10,722,054 $ SPECIAL REVENUE 134 -- 158 of 234 -- PERMANENT CEMETERY SWARTZELL WEISE BIRD MAINTENANCE ENDOWMENT HABITATS TOTALS 6,198,313 $ 393,470 $ 2,650 $ 34,535,081 $ --- --- --- 1,822,143 680 --- --- 140,746 --- --- --- 951,180 --- --- --- 18,413 --- --- --- 115,222 --- --- --- 8,664,550 --- --- --- 578,085 --- --- --- 507,752 6,198,993 $ 393,470 $ 2,650 $ 47,333,172 $ --- --- --- 2,580,760 --- --- --- 294,522 --- --- --- 5,739 --- --- --- 1,550,330 --- --- --- 120,935 --- --- --- 4,552,286 --- --- --- 1,391,757 --- --- --- 1,742,900 --- --- --- 3,134,657 2,986,418 374,409 2,650 4,449,314 3,212,575 19,061 --- 33,144,898 --- --- --- 3,828,797 --- --- --- (1,776,780) 6,198,993 393,470 2,650 39,646,229 6,198,993 $ 393,470 $ 2,650 $ 47,333,172 $ PERMANENT 135 -- 159 of 234 -- 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, 2024 FORMERLY NONMAJOR COMMUNITY OTHER EMPLOYEE CDBG SERVICES BENEFITS Revenues: Taxes --- $ --- $ --- $ Licenses and permits --- --- --- Fines and forfeitures --- --- --- Charges for sales and services --- --- --- Use of money and property 14,940 42,431 --- Miscellaneous 603,417 83,675 --- Intergovernmental 5,030,245 5,809,149 --- Total revenues 5,648,602 5,935,255 --- Expenditures: Current: Public safety --- --- --- Public works --- --- --- Health and social services 5,564,095 6,753,236 --- Culture and recreation --- --- --- Community and economic development --- --- --- General government --- --- --- Capital outlay --- --- --- Debt service: Principal retirement --- --- --- Interest and fiscal charges --- --- --- Total expenditures 5,564,095 6,753,236 --- Excess (deficiency) of revenues over expenditures 84,507 (817,981) --- Other financing sources (uses): Transfers in --- --- --- Transfers out --- --- --- Total other financing sources (uses) --- --- --- Net changes in fund balances 84,507 (817,981) --- Fund balances (deficits), beginning of year, 6/30/2023, as previously reported (36,443) (364,229) 741,690 Adjustments --- --- (741,690) Fund balances (deficits) - 6/30/2023, as adjusted (36,443) (364,229) --- 48,064 $ (1,182,210) $ --- $ Fund balances (deficits), end of year SPECIAL REVENUE 136 -- 160 of 234 -- PERMANENT ROAD USE OTHER SPECIAL CEMETERY SWARTZELL WEISE BIRD TAX REVENUE MAINTENANCE ENDOWMENT HABITATS TOTALS --- $ 1,390,535 $ --- $ --- $ --- $ 1,390,535 $ 86,028 --- --- --- --- 86,028 9,842 --- --- --- --- 9,842 839,081 6,156 160,465 --- --- 1,005,702 --- 106,419 13,355 18,576 --- 195,721 58,983 620,263 --- --- --- 1,366,338 33,492,741 5,836,168 --- --- --- 50,168,303 34,486,675 7,959,541 173,820 18,576 --- 54,222,469 --- 3,949,034 --- --- --- 3,949,034 25,879,070 --- --- --- --- 25,879,070 --- --- --- --- --- 12,317,331 --- 446,977 --- --- --- 446,977 --- 2,465,300 --- --- --- 2,465,300 --- 11,920 --- --- --- 11,920 167,508 289,938 --- --- --- 457,446 --- 1,089,000 --- --- --- 1,089,000 --- 43,560 --- --- --- 43,560 26,046,578 8,295,729 --- --- --- 46,659,638 8,440,097 (336,188) 173,820 18,576 --- 7,562,831 150,000 2,084,663 --- --- --- 2,234,663 (5,548,235) (1,791,322) --- (500) --- (7,340,057) (5,398,235) 293,341 --- (500) --- (5,105,394) 3,041,862 (42,847) 173,820 18,076 --- 2,457,437 22,512,629 8,673,618 6,025,173 375,394 2,650 37,930,482 --- --- --- --- --- (741,690) 22,512,629 8,673,618 6,025,173 375,394 2,650 37,188,792 25,554,491 $ 8,630,771 $ 6,198,993 $ 393,470 $ 2,650 $ 39,646,229 $ PERMANENT SPECIAL REVENUE 137 -- 161 of 234 -- CITY OF DES MOINES, IOWA COMBINING SCHEDULE OF NET POSITION ALL PARKING ACCOUNTS June 30, 2024 PARK AND PARKING RIDE TOTALS Current assets: Unrestricted current assets: Cash and investments 2,563,128 $ 2,159,543 $ 4,722,671 $ Accounts receivable 346 3,769 4,115 Due from other governmental units 12,420 --- 12,420 Prepaid items 20,043 --- 20,043 Total current assets 2,595,937 2,163,312 4,759,249 Noncurrent, capital assets: Land 12,409,949 1,735,829 14,145,778 Construction in progress 364,061 --- 364,061 Buildings 60,933,444 2,141,304 63,074,748 Improvements other than buildings 17,045,102 17,816,005 34,861,107 Machinery and equipment 4,576,754 --- 4,576,754 Right of Use Assets 29,996,021 --- 29,996,021 Accumulated depreciation and amortization (67,371,831) (15,606,667) (82,978,498) Total capital assets, net of accumulated depreciation 57,953,500 6,086,471 64,039,971 Total assets 60,549,437 8,249,783 68,799,220 Other postemployment benefits related deferred outflows 60,074 --- 60,074 Pension related deferred outflows 197,509 --- 197,509 Total deferred outflow of resources 257,583 --- 257,583 ASSETS DEFERRED OUTFLOW OF RESOURCES 138 -- 162 of 234 -- PARK AND PARKING RIDE TOTALS Liabilities: Current liabilities: Accounts payable 381,394 $ 36,317 $ 417,711 $ Contracts payable 19,155 --- 19,155 Accrued wages payable 24,849 258 25,107 Accrued employee benefits 75,082 --- 75,082 Accrued interest payable 98,276 --- 98,276 Lease payable 1,210,635 --- 1,210,635 1,809,391 36,575 1,845,966 Noncurrent liabilities: Accrued employee benefits 135,287 --- 135,287 Other postemployment benefits 221,822 --- 221,822 Net pension liability 452,837 --- 452,837 Lease payable, net 23,231,952 --- 23,231,952 Total noncurrent liabilities 24,041,898 --- 24,041,898 Total liabilities 25,851,289 36,575 25,887,864 Other postemployment benefits related deferred inflows 28,394 --- 28,394 Pension related deferred inflows 16,405 --- 16,405 Total deferred inflow of resources 44,799 --- 44,799 Net investment in capital assets 33,491,758 6,086,471 39,578,229 Unrestricted 1,419,174 2,126,737 3,545,911 Total net position 34,910,932 $ 8,213,208 $ 43,124,140 $ NET POSITION LIABILITIES Total current liabilities DEFERRED INFLOWS OF RESOURCES 139 -- 163 of 234 -- CITY OF -- 164 of 234 -- 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, 2024 PARK AND PARKING RIDE TOTALS Operating revenues: Charges for sales and services 9,937,606 $ 1,287,589 $ 11,225,195 $ Miscellaneous 193 --- 193 Total operating revenues 9,937,799 1,287,589 11,225,388 Operating expenses: Personal services 1,023,739 12,973 1,036,712 Contractual services 3,793,070 928,598 4,721,668 Commodities 241,665 --- 241,665 Depreciation and amortization 3,788,603 666,408 4,455,011 Other charges 1,441,107 267,020 1,708,127 Total operating expenses 10,288,184 1,874,999 12,163,183 Operating income (loss) (350,385) (587,410) (937,795) Non-operating revenues (expenses): Investment earnings 89,935 96,846 186,781 Interest expense and fiscal charges (1,139,820) --- (1,139,820) Total nonoperating revenues (expenses) (1,049,885) 96,846 (953,039) Income (Loss) before transfers, capital grants and contributions (1,400,270) (490,564) (1,890,834) Transfers in 800,000 --- 800,000 Change in net position (600,270) (490,564) (1,090,834) 35,511,202 8,703,772 44,214,974 Total net position (deficit) - ending 34,910,932 $ 8,213,208 $ 43,124,140 $ Total net position (deficit) - beginning 141 -- 165 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS ALL PARKING ACCOUNTS For the Fiscal Year Ended June 30, 2024 PARK AND PARKING RIDE TOTALS 9,932,767 1,287,488 11,220,255 (5,562,117) (1,232,901) (6,795,018) (1,167,621) 27,985 (1,139,636) 3,203,029 $ 82,572 $ 3,285,601 $ (397,374) (40,946) (438,320) 800,000 --- 800,000 Net cash provided by (used in) noncapital and related 402,626 (40,946) 361,680 CASH FLOWS FROM CAPITAL AND RELATED (1,122,169) --- (1,122,169) (1,154,389) --- (1,154,389) (733,849) --- (733,849) Net cash provided in capital and related financing (3,010,407) --- (3,010,407) 89,935 96,846 186,781 89,935 96,846 186,781 685,183 138,472 823,655 1,877,945 2,021,071 3,899,016 2,563,128 $ 2,159,543 $ 4,722,671 $ Interest paid on capital debt CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to Suppliers Payments to Employees Net cash provided by (used in) operating activities ACTIVITIES Payments to Interfund Accounts Transfers In financing activities FINANCING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING Principal paid on long-term debt Acquisition and construction of capital assets activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 142 -- 166 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS (CONTINUED) ALL PARKING ACCOUNTS For the Fiscal Year Ended June 30, 2024 PARK AND PARKING RIDE TOTALS Reconciliation of operating income (loss) to net cash Operating income (loss) (350,385) $ (587,410) $ (937,795) $ Adjustments to reconcile operating income to net cash 3,788,603 666,408 4,455,011 908 (101) 807 (5,940) --- (5,940) 8,043 --- 8,043 (94,318) (37,283) (131,601) Increase in accrued wages payable (85,675) 11 (85,664) Decrease in accrued employee beneifts and other 34,050 --- 34,050 Decrease in deferred outflows --- 40,846 40,846 (Decrease) in deferred inflows (157,803) 101 (157,702) Increase in net pension liability 65,546 --- 65,546 Total adjustments 3,553,414 669,982 4,223,396 3,203,029 $ 82,572 $ 3,285,601 $ provided by (used in) operating activities: postemployment benefits Net cash (used in) provided by operating activities provided by (used in) operating activities Depreciation expense Decrease in accounts receivable Decrease in due from other government units (Increase) decrease in prepaid items (Decrease) in accounts payable and contracts payable 143 -- 167 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF NET POSITION (DEFICIT) NONMAJOR ENTERPRISE FUNDS June 30, 2024 SOLID GOLF WASTE COURSES SYSTEM TOTALS Current assets: Unrestricted current assets: Cash and investments 4,500 $ 13,801,663 $ 13,806,163 $ Accounts receivable 84,070 136,850 220,920 Due from other governmetnal units --- 106,450 106,450 Prepaid items --- 1,374 1,374 Total current assets 88,570 14,046,337 14,134,907 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 12,081,005 12,728,970 Accumulated depreciation (3,136,643) (11,696,969) (14,833,612) Total capital assets, net of accumulated depreciation 1,916,767 1,783,718 3,700,485 Total assets 2,005,337 15,830,055 17,835,392 Other postemployment benefits related deferred outflows --- 262,142 262,142 Pension related deferred outflows --- 972,772 972,772 Total deferred outflows of resources --- 1,234,914 1,234,914 Liabilities: Current liabilities: Accounts payable 15,290 375,026 390,316 Accrued wages payable --- 118,571 118,571 Accrued employee benefits --- 265,304 265,304 Accrued interest payable --- 25,532 25,532 General obligation bonds payable --- 605,000 605,000 Total current liabilities 15,290 1,389,433 1,404,723 Noncurrent liabilities: Accrued employee benefits --- 328,380 328,380 Other postemployment benefits --- 967,953 967,953 Net pension liability --- 2,230,315 2,230,315 Advance from other funds 2,062,131 --- 2,062,131 Revenue bonds payable, net --- --- --- General obligation bonds payable, net --- 11,524,876 11,524,876 Total noncurrent liabilities 2,062,131 15,051,524 17,113,655 Total liabilities 2,077,421 16,440,957 18,518,378 Other postemployment benefits related deferred inflows --- 123,900 123,900 Pension related deferred inflows --- 80,796 80,796 Total deferred inflows of resources --- 204,696 204,696 Investment in capital assets 1,916,767 --- 1,916,767 Unrestricted (1,988,851) 419,316 (1,569,535) Total net position (deficit) (72,084) $ 419,316 $ 347,232 $ NET POSITION (DEFICIT) ASSETS DEFERRED OUTFLOWS OF RESOURCES LIABILITIES DEFERRED INFLOWS OF RESOURCES 144 -- 168 of 234 -- 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, 2024 SOLID GOLF WASTE COURSES SYSTEM TOTALS Operating revenues: Charges for sales and services 683,952 $ 17,413,777 $ 18,097,729 $ Miscellaneous 84,070 --- 84,070 Total operating revenues 768,022 17,413,777 18,181,799 Operating expenses: Personal services 3,297 5,638,332 5,641,629 Contractual services 301,215 8,936,120 9,237,335 Commodities 6,692 487,516 494,208 Depreciation 111,610 601,071 712,681 Other charges 12,649 599,374 612,023 Total operating expenses 435,463 16,262,413 16,697,876 Operating income (loss) 332,559 1,151,364 1,483,923 Non-operating revenues (expenses): Investment earnings --- 750,530 750,530 Interest expense and fiscal charges --- (188,220) (188,220) Gain (loss) on disposal of capital assets --- (10,378) (10,378) Total nonoperating revenues (expenses) --- 551,932 551,932 Income (loss) before transfers, capital grants and contributions 332,559 1,703,296 2,035,855 Capital grants and contributions 6,200 --- 6,200 Transfers out --- (43,307) (43,307) Change in net position 338,759 1,659,989 1,998,748 (410,843) (1,240,673) (1,651,516) Total net position (deficit) - ending (72,084) $ 419,316 $ 347,232 $ Total net position (deficit) - beginning 145 -- 169 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Fiscal Year Ended June 30, 2024 SOLID GOLF WASTE COURSES SYSTEM TOTALS 714,924 17,264,368 17,979,292 (331,434) (10,867,890) (11,199,324) (3,297) (5,985,370) (5,988,667) 380,193 $ 411,108 $ 791,301 $ (386,393) --- (386,393) --- (43,307) (43,307) (386,393) (43,307) (429,700) 6,200 --- 6,200 --- (295,873) (295,873) --- 92,503 92,503 --- (600,000) (600,000) 6,200 (803,370) (797,170) --- 896,192 896,192 --- 896,192 896,192 --- 460,623 460,623 4,500 13,341,040 13,345,540 4,500 $ 13,801,663 $ 13,806,163 $ Interest paid on capital debt Proceeds from sale of capital assets Transfers Out financing activities FINANCING ACTIVITIES Proceeds from intergovernmental and capital grants Principal paid on long-term debt financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends received Net cash provided by investing activities Net cash provided by (used in) capital and related Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to Suppliers Payments to Employees Net cash provided by (used in) operating activities CASH FLOWS FROM NONCAPITAL FINANCING Net cash provided by (used in) noncapital and CASH FLOWS FROM CAPITAL AND RELATED ACTIVITIES Payments to Interfund Accounts 146 -- 170 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS (CONTINUED) NONMAJOR ENTERPRISE FUNDS For the Fiscal Year Ended June 30, 2024 SOLID GOLF WASTE COURSES SYSTEM TOTALS Operating income (loss) 332,559 $ 1,151,364 $ 1,483,923 $ 111,610 601,071 712,681 --- (431) (431) (53,099) (124,201) (177,300) --- (25,207) (25,207) (10,877) (844,450) (855,327) Increase in accrued wages payable --- 2,822 2,822 Decrease in accrued employee beneifts --- 12,741 12,741 Decrease other postemployment benefits --- 130,774 130,774 Decrease in deferred outflows --- (431) (431) (Decrease) in deferred inflows --- (844,450) (844,450) Increase in net pension liability --- 351,506 351,506 Total adjustments 47,634 (740,256) (692,622) 380,193 $ 411,108 $ 791,301 $ --- (10,378) (10,378) Depreciation expense Gain (loss) on disposal of capital assets (Increase) decrease in prepaid items Decrease in accounts receivable Decrease in due from other government units (Decrease) in accounts payable Net cash (used in) provided by operating activities Schedule of noncash capital and related financing activities: provided by (used in) operating activities: provided (used in) by operating activities Adjustments to reconcile operating income to net cash Reconciliation of operating income (loss) to net cash 147 -- 171 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2024 EQUIPMENT SERVICE CENTRAL CENTER FORESTRY SERVICES ASSETS Current assets: Cash and investments 2,136,729 $ --- $ 446,815 $ Taxes receivable 27,969 --- --- Accounts receivable 654 --- 26 Due from other governmental units 22,008 --- --- Inventory 93,378 --- 81,764 Prepaid items 10,018 330 34,817 Total current assets 2,290,756 330 563,422 Noncurrent assets, capital assets: Machinery and equipment 212,018 --- 1,114,041 Accumulated depreciation (194,921) --- (1,114,041) Total capital assets, net of accumulated depreciation 17,097 --- --- Total assets 2,307,853 330 $ 563,422 DEFERRED OUTFLOW OF RESOURCES Other postemployment benefits related deferred outflows 174,761 87,381 38,229 Pension related deferred outflows 598,927 254,284 20,789 Total deferred outflow of resources 773,688 341,665 59,018 LIABILITIES Liabilities: Current liabilities: Accounts payable 923,089 25,911 8,350 Accrued wages payable 71,259 33,074 --- Accrued employee benefits 240,707 55,725 --- Due to other funds --- 868,986 --- Unearned revenue --- --- --- Total current liabilities 1,235,055 983,696 8,350 Noncurrent liabilities: Accrued employee benefits 225,454 114,268 --- Other postemployment benefits 645,302 322,651 141,160 Net pension liability 1,373,186 583,007 47,663 Total noncurrent liabilities 2,243,942 1,019,926 188,823 Total liabilities 3,478,997 2,003,622 197,173 DEFERRED INFLOWS OF RESOURCES Other postemployment benefits related deferred inflows 82,600 41,300 18,069 Pension related deferred inflows 49,746 21,120 1,727 Total deferred inflow of resources 132,346 62,420 19,796 NET POSITION (DEFICIT) Investment in capital assets 17,097 --- --- Unrestricted (546,899) (1,724,047) 405,471 Total net position (deficit) (529,802) $ (1,724,047) $ 405,471 $ 148 -- 172 of 234 -- RADIO COMMUNI- EQUIPMENT RADIO GROUP HEALTH CATIONS REPLACEMENT REPLACEMENT INSURANCE TOTALS 262,995 $ 9,274,118 $ 20,049 $ 14,316,615 $ 26,457,321 $ --- --- --- --- 27,969 --- 36,344 --- 1,120,489 1,157,513 --- --- --- --- 22,008 --- --- --- --- 175,142 76,836 7,086 --- --- 129,087 339,831 9,317,548 20,049 15,437,104 27,969,040 21,328 60,834,052 2,400,522 --- 64,581,961 (21,328) (43,579,817) (2,400,522) --- (47,310,629) --- 17,254,235 --- --- 17,271,332 339,831 26,571,783 20,049 15,437,104 45,240,372 --- --- --- --- 300,371 114,939 --- --- --- 988,939 114,939 --- --- --- 1,289,310 1,137 --- --- 936,657 1,895,144 14,929 --- --- 4,050 123,312 19,764 --- --- 2,304,000 2,620,196 --- --- --- --- 868,986 --- --- --- 14,935 14,935 35,830 --- --- 3,259,642 5,522,573 40,528 --- --- --- 380,250 --- --- --- --- 1,109,113 263,525 --- --- --- 2,267,381 304,053 --- --- --- 3,756,744 339,883 --- --- 3,259,642 9,279,317 --- --- --- --- 141,969 9,547 --- --- --- 82,140 9,547 --- --- --- 224,109 --- 17,254,235 --- --- 17,271,332 105,340 9,317,548 20,049 12,177,462 19,754,924 105,340 $ 26,571,783 $ 20,049 $ 12,177,462 $ 37,026,256 $ 149 -- 173 of 234 -- 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, 2024 EQUIPMENT SERVICE CENTRAL CENTER FORESTRY SERVICES Operating revenues: Charges for sales and services 12,998,705 $ 2,074,053 $ 371,976 $ Miscellaneous 497 --- --- Total operating revenue 12,999,202 2,074,053 371,976 Operating expenses: Personal services 3,473,479 1,679,062 (7,357) Contractual services 1,507,671 328,806 271,661 Commodities 7,090,126 51,726 70,243 Depreciation 12,723 --- --- Other charges 19,521 12,962 --- Total operating expenses 12,103,520 2,072,556 334,547 Operating income (loss) 895,682 1,497 37,429 Non-operating revenues (expenses): Proceeds from damage claims --- --- --- Gain/(loss) on disposal of capital assets --- --- --- Total nonoperating revenues (expenses) --- --- --- Income (Loss) before transfers 895,682 1,497 37,429 Transfers in --- --- --- 895,682 1,497 37,429 (1,425,484) $ (1,725,544) $ 368,042 $ Total net position (deficit) - ending (529,802) $ (1,724,047) $ 405,471 $ Change in net position Total net position (deficit) - beginning 150 -- 174 of 234 -- RADIO COMMUN- EQUIPMENT RADIO GROUP HEALTH ICATIONS REPLACEMENT REPLACEMENT INSURANCE TOTALS 894,083 $ 7,367,350 $ --- $ 36,918,579 $ 60,624,746 $ 671 7,820 --- --- 8,988 894,754 7,375,170 --- 36,918,579 60,633,734 710,458 --- --- 202,926 6,058,568 126,580 (644,411) --- 36,850,258 38,440,565 42,251 --- --- --- 7,254,346 --- 5,007,990 --- --- 5,020,713 --- --- --- 17,709 50,192 879,289 4,363,579 --- 37,070,893 56,824,384 15,465 3,011,591 --- (152,314) 3,809,350 --- 9,251 --- --- 9,251 --- 136,736 --- --- 136,736 --- 145,987 --- --- 145,987 15,465 3,157,578 --- (152,314) 3,955,337 --- 100,000 --- --- 100,000 15,465 3,257,578 --- (152,314) 4,055,337 89,875 $ 23,314,205 $ 20,049 $ 12,329,776 $ 32,970,919 105,340 $ 26,571,783 $ 20,049 $ 12,177,462 $ 37,026,256 $ 151 -- 175 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2024 EQUIPMENT SERVICE CENTRAL CENTER FORESTRY SERVICES CASH FLOWS FROM OPERATING ACTIVITIES 13,012,279 $ 2,074,054 $ 371,951 $ 3,676 --- --- (8,546,921) (374,187) (349,941) (3,512,880) (1,681,159) --- Net cash provided by (used in) operating 956,154 18,708 22,010 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES --- (18,708) --- --- --- --- Net cash provided by (used in) noncapital and --- (18,708) --- CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES --- --- --- --- --- --- Net cash used in capital and related financing - --- --- 956,154 --- 22,010 1,180,575 --- 424,805 2,136,729 $ --- $ 446,815 $ Transfers in related financing activities Acquisition and construction of capital assets Proceeds from sale of capital assets activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Payments to Interfund Accounts Receipts from customers and users Receipts from Interfund services provided Payments to Suppliers Payments to Employees activities 152 -- 176 of 234 -- RADIO GROUP COMMUN- EQUIPMENT RADIO HEALTH ICATIONS REPLACEMENT REPLACEMENT INSURANCE TOTALS 894,753 $ 7,338,826 $ --- $ 37,136,028 $ 60,827,891 $ --- --- --- --- 3,676 (141,595) (91,767) --- (36,302,420) (45,806,831) (752,141) --- --- (202,780) (6,148,960) 1,017 7,247,059 --- 630,828 8,875,776 --- --- --- --- (18,708) --- 100,000 --- --- 100,000 --- 100,000 --- --- 81,292 --- (6,163,640) --- --- (6,163,640) --- 164,280 --- --- 164,280 --- (5,999,360) --- --- (5,999,360) 1,017 1,347,699 --- 630,828 2,957,708 261,978 7,926,419 20,049 13,685,787 23,499,613 262,995 $ 9,274,118 $ 20,049 $ 14,316,615 $ 26,457,321 $ 153 -- 177 of 234 -- CITY OF DES MOINES, IOWA COMBINING STATEMENT OF CASH FLOWS (CONTINUED) ALL INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2024 EQUIPMENT SERVICE CENTRAL CENTER FORESTRY SERVICES Reconciliation of operating income (loss) to net cash Operating income (loss) 895,682 $ 1,497 $ 37,429 $ Adjustments to reconcile operating income (loss) to 12,723 --- --- 3,676 --- --- 13,078 --- (26) 54,477 --- (8,873) 1,677 5,186 1,485 14,242 14,122 (648) 3,873 1,203 --- Increase (decrease) in accrued employee benefits and 189,148 77,316 21,563 (238,481) (114,806) (11,108) (162,876) (64,782) (10,785) 168,935 98,972 (7,027) 60,472 17,211 (15,419) 956,154 $ 18,708 $ 22,010 $ Schedule of noncash capital and related financing --- $ --- $ --- $ Total adjustments Net cash provided by (used in) operating activities activities: Gain (loss) on disposal of capital assets (Decrease) in net pension liability net cash provided by (used in) operating activities Depreciation expense Decrease in due from other governmental funds Decrease in accounts and taxes receivable Decrease in inventories (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase in accrued wages payable other postemployment benefits Decrease in deferred outflows (Decrease) in deferred inflows provided by (used in) operating activities: 154 -- 178 of 234 -- RADIO GROUP COMMUN- EQUIPMENT RADIO HEALTH ICATIONS REPLACEMENT REPLACEMENT INSURANCE TOTALS 15,465 $ 3,011,591 $ - $ (152,314) $ 3,809,350 $ --- 5,007,990 --- --- 5,020,713 --- --- --- 322,067 325,743 --- (36,344) --- (89,909) (113,201) --- --- --- --- 45,604 26,344 3,543 --- --- 38,235 891 (739,721) --- (123,453) (834,567) 761 --- --- 146 5,983 (11,710) --- --- 689,000 965,317 (40,808) --- --- (14,709) (419,912) (26,652) --- --- --- (265,095) 36,726 --- --- --- 297,606 (14,448) 4,235,468 --- 783,142 5,066,426 1,017 $ 7,247,059 $ --- $ 630,828 $ 8,875,776 $ --- $ 136,736 $ --- $ --- $ 136,736 $ 155 -- 179 of 234 -- 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, 2024 GOVERNMENTAL GOVERNMENTAL FUNDS FUNDS CAPITAL ASSETS CAPITAL ASSETS JUNE 30, 2023 ADDITIONS DELETIONS JUNE 30, 2024 Function: Public safety 135,108,588 $ 1,507,132 $ (508,541) $ 136,107,179 $ General government 435,914,062 101,571,912 (35,050,282) 502,435,692 Public works 1,241,221,438 50,244,186 ` (68,013) 1,291,397,611 Health and social services 13,989 --- --- 13,989 Culture and recreation 345,114,762 8,593,861 (15,951) 353,692,672 Community and economic development 54,985,846 --- --- 54,985,846 Total Governmental Funds Capital Assets 2,212,358,685 $ 161,917,091 $ (35,642,787) $ 2,338,632,989 $ * 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 -- 180 of 234 -- CITY OF DES MOINES, IOWA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION June 30, 2024 LAND AND BUILDINGS IMPROVEMENTS MACHINERY CONSTRUCTION RIGHT LAND AND BLDG OTHER THAN AND IN OF USE IMPROVEMENTS IMPROVEMENTS BUILDINGS EQUIPMENT PROGRESS ASSETS TOTAL Function: Public safety 11,493,182 $ 56,295,626 $ 26,177,246 $ 42,141,125 $ --- $ --- $ 136,107,179 $ General government 128,247,643 124,038,837 1,371,526 15,709,832 232,466,445 601,409 502,435,692 Public works 31,228,244 2,812,290 1,252,162,936 5,194,142 --- --- 1,291,397,612 Health and social services --- --- --- 13,989 --- --- 13,989 Culture and recreation 6,877,261 110,881,086 232,988,378 2,945,946 --- --- 353,692,671 Community and economic development 4,574,295 46,368,425 2,095,342 73,701 --- 1,874,083 54,985,846 182,420,625 $ 340,396,264 $ 1,514,795,428 $ 66,078,735 $ 232,466,445 $ 2,475,492 $ 2,338,632,989 $ * 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 -- 181 of 234 -- CITY OF -- 182 of 234 -- STATISTICAL SECTION -- 183 of 234 -- CITY OF -- 184 of 234 -- 161 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 162 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 181 These schedules contain information to help the reader assess the City of Des Moines’ most significant local revenue source, the property tax. Debt Capacity 190 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 199 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 204 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. -- 185 of 234 -- CITY OF DES MOINES, IOWA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 Governmental activities: Net investment in capital assets 847,903,572 $ 830,648,182 $ 802,111,537 $ 763,997,971 $ Restricted: Debt retirement 28,993,703 17,538,321 6,940,325 13,342,282 Corpus/Endowments/permanently restricted 3,363,477 3,363,477 3,335,565 4,114,621 Donor restricted temporary - - - - Capital projects 2,465,985 3,254,807 3,476,330 3,262,701 Public works 24,949,002 22,395,325 19,420,218 12,457,076 Police and fire 799,225 567,631 2,721,586 481,664 Culture and recreation 4,543,303 3,455,849 2,054,022 1,475,997 Community and economic development 33,498,816 13,550,004 28,958,688 17,289,053 Other restricted assets 9,952,864 30,161,134 26,064,431 39,668,136 Unrestricted 27,511,610 25,178,133 (53,132,908) (90,009,943) Total governmental activities net position 983,981,557 $ 950,112,863 $ 841,949,794 $ 766,079,558 $ Business-type activities: Net investment in capital assets 371,885,503 $ 360,408,441 $ 351,539,366 $ 342,096,930 $ Restricted: Capital projects - - - - Public housing program 1,723,591 1,655,186 1,606,069 1,707,735 Debt retirement 12,384,132 10,612,628 11,253,763 9,254,367 Unrestricted 77,217,827 52,505,284 36,608,678 23,115,386 Total business-type activities net position 463,211,053 $ 425,181,539 $ 401,007,876 $ 376,174,418 $ Primary government: Net investment in capital assets 1,219,789,075 $ 1,191,056,623 $ 1,153,650,903 $ 1,106,094,901 $ Restricted: Capital projects 2,465,985 3,254,807 3,476,330 3,262,701 Public housing program 1,723,591 1,655,186 1,606,069 1,707,735 Debt retirement 41,377,835 28,150,949 18,194,088 22,596,649 Endowments/permanently restricted 3,363,477 3,363,477 3,335,565 4,114,621 Donor restricted purposes/temporarily restricted - - - - Police and fire 799,225 567,631 2,721,586 481,664 Public works 24,949,002 22,395,325 19,420,218 12,457,076 Culture and recreation 4,543,303 3,455,849 2,054,022 1,475,997 Community and economic development 33,498,816 13,550,004 28,958,688 17,289,053 Other restricted assets 9,952,864 30,161,134 26,064,431 39,668,136 Unrestricted 104,729,437 77,683,417 (16,524,230) (66,894,557) Total primary government net position 1,447,192,610 $ 1,375,294,402 $ 1,242,957,670 $ 1,142,253,976 $ *As restated for GASB 75. See Notes to the Financial Statements for further information. 162 -- 186 of 234 -- Table 1 2020 2019 2018 2017* 2016 2015 703,716,716 $ 668,196,568 $ 639,424,605 $ 612,859,417 $ 648,729,341 $ 627,588,818 $ 13,156,334 4,924,629 3,148,524 24,886,321 3,180,672 1,886,377 4,249,971 4,097,300 3,983,061 3,830,999 3,709,917 3,598,450 - - - 906,494 921,067 932,213 2,369,327 2,370,310 3,192,588 879,835 881,071 887,263 10,421,670 12,076,600 9,873,168 10,149,716 9,588,074 6,314,263 531,296 573,280 1,265,369 - - 1,159,309 1,748,302 1,765,923 1,608,974 1,646,955 1,628,645 1,713,415 - - - - - - 12,184,995 3,575,571 4,776,639 3,372,846 2,559,058 1,984,709 (50,530,271) (38,030,704) (65,470,632) (64,464,296) (101,642,381) (109,471,650) 697,848,340 $ 659,549,477 $ 601,802,296 $ 594,068,287 $ 569,555,464 $ 536,593,167 $ 338,541,335 $ 308,497,550 $ 316,765,007 $ 277,688,763 $ 282,428,015 $ 275,958,369 $ - - - 2,287,721 - - 2,912,354 2,896,344 3,135,420 4,339,945 4,491,284 6,005,705 7,146,596 7,146,596 4,454,546 4,454,546 5,018,646 5,018,646 22,678,750 19,603,224 10,715,246 46,281,655 27,750,785 13,897,395 371,279,035 $ 338,143,714 $ 335,070,219 $ 335,052,630 $ 319,688,730 $ 300,880,115 $ 1,042,258,051 $ 976,694,118 $ 956,189,612 $ 890,548,180 $ 931,157,356 $ 903,547,187 $ 2,369,327 2,370,310 3,192,588 3,167,556 881,071 887,263 2,912,354 2,896,344 3,135,420 4,339,945 4,491,284 6,005,705 20,302,930 12,071,225 7,603,070 29,340,867 8,199,318 6,905,023 4,249,971 4,097,300 3,983,061 3,830,999 3,709,917 3,598,450 - - - 906,494 921,067 932,213 531,296 573,280 1,265,369 - - 1,159,309 10,421,670 12,076,600 9,873,168 10,149,716 9,588,074 6,314,263 1,748,302 1,765,923 1,608,974 1,646,955 1,628,645 1,713,415 - - - - - - 12,184,995 3,575,571 4,776,639 3,372,846 2,559,058 1,984,709 (27,851,521) (18,427,480) (54,755,386) (18,182,641) (73,891,596) (95,574,255) 1,069,127,375 $ 997,693,191 $ 936,872,515 $ 929,120,917 $ 889,244,194 $ 837,473,282 $ 163 -- 187 of 234 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Expenses: Governmental activities: Public safety 163,083,174 $ 148,300,581 $ 129,826,976 $ 147,553,966 $ 146,897,935 $ Public works 75,998,393 67,964,266 59,167,661 65,268,316 59,581,938 Health and social services 14,242,238 15,372,035 10,589,681 11,094,869 9,902,331 Culture and recreation 42,830,320 41,154,434 37,077,618 33,865,746 33,393,608 Community and economic development 37,743,580 34,508,684 36,945,357 35,885,238 26,461,222 General Government 85,346,402 59,302,327 52,492,330 49,931,107 38,695,179 Interest on long-term debt 20,334,805 12,451,616 11,488,702 11,539,387 12,341,923 Total governmental activities expenses 439,578,912 379,053,943 337,588,325 355,138,629 327,274,136 Business-type activities: Parking facilities system 13,414,894 13,522,165 11,467,622 10,716,509 10,682,504 Sewer system 40,738,836 39,360,464 38,873,120 40,043,204 41,163,607 Stormwater utility 25,519,505 23,664,287 21,903,403 22,158,196 19,541,537 Golf 440,728 667,473 632,321 676,692 301,658 Solid waste system 16,527,382 15,889,961 14,833,586 13,770,043 13,499,100 Municipal Housing Agency 27,170,597 24,745,617 22,166,962 23,939,252 24,325,138 Total business-type activities expenses 123,811,942 117,849,967 109,877,014 111,303,896 109,513,544 Total primary government expenses 563,390,854 496,903,910 447,465,339 466,442,525 436,787,680 Program revenue: Governmental activities: Charges for services: Public safety 30,523,280 32,315,674 30,394,845 28,711,991 27,373,638 Public works 3,602,732 5,981,063 3,674,650 4,102,995 2,978,646 Health and social services 742,822 348,873 398,248 151,050 275,145 Culture and recreation 3,914,021 4,836,830 3,098,039 3,274,911 2,791,514 Community and economic development 4,060,657 215,104 559,565 700,283 226,615 General Government 34,221,532 28,166,719 25,174,362 32,637,292 33,628,699 Interest on long-term debt - - - - - 164 -- 188 of 234 -- Table 2 2019 2018 2017 2016 2015 133,479,994 $ 120,232,843 $ 108,995,939 $ 112,162,186 $ 119,483,595 $ 56,342,138 55,883,069 58,724,734 53,423,423 51,339,248 9,578,685 9,643,000 9,528,495 18,613,187 15,436,157 32,790,812 32,646,689 32,102,902 33,828,194 30,754,939 24,412,677 41,587,724 19,132,739 20,226,141 19,337,576 37,847,520 36,726,594 31,039,641 26,732,006 26,117,356 13,174,684 12,136,101 14,649,355 14,897,447 15,840,246 307,626,510 308,856,020 274,173,805 279,882,584 278,309,117 12,753,187 14,784,051 16,531,115 12,625,176 11,632,790 37,884,466 36,629,644 35,361,004 33,593,378 32,892,418 20,312,642 18,069,451 16,333,453 16,851,616 15,896,140 364,359 344,436 274,661 222,351 216,784 14,290,636 14,025,099 12,868,357 12,599,520 12,255,052 23,978,374 22,495,280 21,554,655 21,452,997 22,284,760 109,583,664 106,347,961 102,923,245 97,345,038 95,177,944 417,210,174 415,203,981 377,097,050 377,227,622 373,487,061 23,854,592 19,856,782 22,548,480 22,916,078 20,807,818 4,499,746 4,542,178 7,918,911 11,473,360 9,051,823 646,862 427,177 535,310 157,414 746,912 3,202,191 3,713,972 2,864,389 4,442,482 3,826,159 1,428,558 1,887,540 158,495 1,478,853 656,065 35,160,101 29,163,845 32,919,680 27,627,092 24,529,091 - - 275,633 479,524 149,061 (Continued) 165 -- 189 of 234 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Operating grants and contributions: Public safety 4,128,783 $ 5,223,983 $ 3,658,142 $ 4,507,463 $ 3,309,766 $ Public works 37,379,831 25,973,301 28,716,983 30,061,407 28,288,240 Health and social services 11,712,865 11,487,456 10,435,602 10,205,863 7,999,801 Culture and recreation 1,486,548 1,639,351 656,730 978,651 744,791 Community and economic development 1,934,980 25,753 5,152,013 6,892,924 31,015 General Government 6,230,713 5,228,805 7,293,519 8,800,040 3,160,317 Interest on long-term debt - - - 1,479,221 3,053,724 Capital grants and contributions: Public safety - 140,616 2,309,560 100,010 203,178 Public works 11,093,359 18,591,702 22,478,626 17,797,731 21,590,076 Health and social services - - - - - Culture and recreation 1,815,669 1,268,477 912,338 850,736 4,515,930 Community and economic development - - - - 962,639 General Government 35,034,002 54,094,072 7,240,943 500,000 1,815 Total governmental activities program revenue 187,881,794 195,537,779 152,154,165 151,752,568 141,135,549 Business-type activities: Charges for services: Parking facilities system 11,225,388 11,108,528 9,910,115 8,045,592 10,892,706 Sewer system 50,213,472 47,921,654 46,672,995 50,553,992 45,059,794 Stormwater utility 34,574,108 32,656,569 31,945,724 30,345,944 28,044,245 Golf 768,022 677,239 708,287 527,792 478,702 Solid waste system 17,413,777 15,863,169 16,159,158 15,346,330 15,034,953 Municipal Housing Agency 1,768,265 1,665,701 1,578,076 1,857,737 1,421,899 Operating grants and contributions: Municipal Housing Agency 26,133,289 20,969,757 19,227,454 21,173,380 22,062,606 166 -- 190 of 234 -- Table 2 (Continued) 2019 2018 2017 2016 2015 4,524,279 $ 5,022,809 $ 5,346,957 $ 5,074,250 $ 3,649,823 $ 27,904,610 27,027,302 26,300,446 23,767,246 22,361,431 9,056,185 6,526,872 8,180,904 17,506,167 13,721,310 685,195 762,771 581,423 1,167,128 627,167 45,505 69,846 20,993 62,121 82,281 2,338,555 3,267,989 4,260,121 2,207,958 435,530 5,346,333 4,358,560 4,392,752 5,444,846 4,958,995 310,457 563,311 1,577,281 837,498 548,963 16,645,845 11,725,740 14,256,747 17,045,179 23,614,653 - - - - - 744,153 770,082 1,635,555 2,269,613 1,834,137 - - 17,723 - - 2,000,000 - 246,980 20,851 20,212 138,393,167 119,686,776 134,038,780 143,977,660 131,621,431 12,987,938 11,048,191 10,626,608 10,632,984 8,887,844 45,790,283 43,851,403 42,171,051 40,227,829 39,205,878 26,313,896 24,258,001 24,938,001 22,141,238 20,573,495 267,337 465,081 505,667 649,733 137,021 14,537,461 12,671,821 12,881,284 12,383,400 12,294,509 1,510,156 1,440,612 1,523,489 1,441,062 1,514,642 20,080,393 19,009,341 17,602,214 17,821,648 17,267,565 (Continued) 167 -- 191 of 234 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Capital grants and contributions: Parking facilities system - $ 30,000 $ 60,000 $ - $ - $ Sewer system 1,357,455 489,103 79,542 561,429 1,636,942 Stormwater utility 1,903,270 403,715 3,147,412 1,261,092 3,419,677 Golf 6,200 700 2,100 3,900 3,000 Municipal Housing Agency 307,753 1,365,456 292,957 1,544,595 926,979 Total business-type activities program revenues 145,670,999 133,151,591 129,783,820 131,221,783 128,981,503 Total primary government program revenues 333,552,793 328,689,370 281,937,985 282,974,351 270,117,052 Net (expense) revenue: Governmental activities (251,697,118) (183,516,164) (185,434,160) (203,386,061) (186,138,587) Business-type activities 21,859,057 15,301,624 19,906,806 19,917,887 19,467,959 Total primary government net expense (229,838,061) (168,214,540) (165,527,354) (183,468,174) (166,670,628) 168 -- 192 of 234 -- Table 2 (Continued) 2019 2018 2017 2016 2015 - $ - $ - $ - $ - $ 1,001,829 934,186 846,485 340,943 378,068 806,872 3,177,112 4,275,195 6,003,844 191,525 3,895 3,500 1,500 3,000 4,000 769,078 907,772 1,107,391 615,879 804,361 124,069,138 117,767,020 116,478,885 112,261,560 101,258,908 262,462,305 237,453,796 250,517,665 256,239,220 232,880,339 (169,233,343) (189,169,244) (140,135,025) (135,904,924) (146,687,686) 14,485,474 11,419,059 13,555,640 14,916,522 6,080,964 (154,747,869) (177,750,185) (126,579,385) (120,988,402) (140,606,722) (Continued) 169 -- 193 of 234 -- CITY OF DES MOINES, IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 General revenues and other changes in net position: Governmental activities: Taxes: Property taxes, levied for general purposes 163,850,024 $ 165,255,816 $ 154,713,417 $ 156,903,801 $ Property taxes, levied for debt service 28,328,596 29,119,931 28,113,917 27,831,493 Local Option Sales taxes 53,595,072 60,285,067 55,240,296 51,442,395 Hotel/Motel taxes 10,065,246 8,720,139 7,610,216 4,041,075 Franchise taxes 13,240,759 15,187,574 15,626,934 14,398,834 Investment earnings 19,332,885 15,842,174 3,331,694 210,503 Miscellaneous 858,002 381,860 167,681 144,167 Gain on sale of capital asset 3,615,308 223,939 118,638 30,480 Transfers--internal activities (7,320,080) (3,337,268) (3,618,397) 15,214,133 Total governmental activities 285,565,812 291,679,232 261,304,396 270,216,881 Business-type activities: Investment earnings 8,769,254 5,499,525 315,328 175,595 Miscellaneous - 16,467 - - Gain (Loss) on sale of capital asset 81,123 18,779 81,764 16,034 Transfers--internal activities 7,320,080 3,337,268 3,618,397 (15,214,133) Total business-type activities 16,170,457 8,872,039 4,015,489 (15,022,504) Total primary government 301,736,269 300,551,271 265,319,885 255,194,377 Changes in net position: Governmental activities 33,868,694 108,163,068 75,870,236 66,830,820 Business-type activities 38,029,514 24,173,663 23,922,295 4,895,383 Total primary government 71,898,208 $ 132,336,731 $ 99,792,531 $ 71,726,203 $ 170 -- 194 of 234 -- Table 2 (Continued) 2020 2019 2018 2017 2016 2015 142,199,633 $ 139,322,876 $ 122,593,271 $ 117,100,978 $ 113,624,373 $ 111,620,593 $ 25,443,098 29,741,049 30,036,110 30,149,073 28,329,549 27,790,702 41,340,012 - - - - - 6,199,754 7,226,054 6,338,200 5,944,042 6,059,311 5,783,917 18,089,946 19,955,046 20,092,159 19,118,675 17,972,341 18,780,277 3,037,955 4,059,878 2,663,865 2,946,635 2,800,540 2,141,765 - 123,499 3,311,313 309,930 2,153,413 921,273 (215,232) 2,760 402,555 424,411 345,694 729,515 (11,657,716) 26,549,362 11,465,780 (425,952) (2,418,000) (3,156,233) 224,437,450 226,980,524 196,903,253 175,567,792 168,867,221 164,611,809 1,725,493 3,209,452 2,002,885 1,266,342 779,503 713,931 161,526 20,512 4,062 2,440 64,311 543,131 122,627 11,907,312 160,930 113,526 630,279 264,476 11,657,716 (26,549,362) (11,465,780) 425,952 2,418,000 3,156,233 13,667,362 (11,412,086) (9,297,903) 1,808,260 3,892,093 4,677,771 238,104,812 215,568,438 187,605,350 177,376,052 172,759,314 169,289,580 38,298,863 57,747,181 7,734,009 35,432,767 32,962,297 17,924,123 33,135,321 3,073,388 2,121,156 15,363,900 18,808,615 10,758,735 71,434,184 $ 60,820,569 $ 9,855,165 $ 50,796,667 $ 51,770,912 $ 28,682,858 $ 171 -- 195 of 234 -- CITY OF DES MOINES, IOWA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Governmental activities: Charges for services: Public safety 30,523,280 $ 32,315,674 $ 30,394,845 $ 28,711,991 $ 27,373,638 $ Public works 3,602,732 5,981,063 3,674,650 4,102,995 2,978,646 Health and social services 742,822 348,873 398,248 151,050 275,145 Culture and recreation 3,914,021 4,836,830 3,098,039 3,274,911 2,791,514 Community and economic development 4,060,657 215,104 559,565 700,283 226,615 General Government 34,221,532 28,166,719 25,174,362 32,637,292 33,628,699 Interest on long-term debt - - - - - Operating grants and contributions: Public safety 4,128,783 5,223,983 3,658,142 4,507,463 3,309,766 Public works 37,379,831 25,973,301 28,716,983 30,061,407 28,288,240 Health and social services 11,712,865 11,487,456 10,435,602 10,205,863 7,999,801 Culture and recreation 1,486,548 1,639,351 656,730 978,651 744,791 Community and economic development 1,934,980 25,753 5,152,013 6,892,924 31,015 General Government 6,230,713 5,228,805 7,293,519 8,800,040 3,160,317 Interest on long-term debt - - - 1,479,221 3,053,724 Capital grants and contributions Public safety - 140,616 2,309,560 100,010 203,178 Public works 11,093,359 18,591,702 22,478,626 17,797,731 21,590,076 Health and social services - - - - - Culture and recreation 1,815,669 1,268,477 912,338 850,736 4,515,930 Community and economic development - - - - 962,639 General Government 35,034,002 54,094,072 7,240,943 500,000 1,815 Total governmental activities program revenue 187,881,794 195,537,779 152,154,165 151,752,568 141,135,549 Business-type activities: Charges for services: Parking facilities system 11,225,388 11,108,528 9,910,115 8,045,592 10,892,706 Sewer system 50,213,472 47,921,654 46,672,995 50,553,992 45,059,794 Stormwater utility 34,574,108 32,656,569 31,945,724 30,345,944 28,044,245 Golf 768,022 677,239 708,287 527,792 478,702 Solid waste system 17,413,777 15,863,169 16,159,158 15,346,330 15,034,953 Municipal Housing Agency 1,768,265 1,665,701 1,578,076 1,857,737 1,421,899 172 -- 196 of 234 -- Table 3 2019 2018 2017 2016 2015 23,854,592 $ 19,856,782 $ 22,548,480 $ 22,916,078 $ 20,807,818 $ 4,499,746 4,542,178 7,918,911 11,473,360 9,051,823 646,862 427,177 535,310 157,414 746,912 3,202,191 3,713,972 2,864,389 4,442,482 3,826,159 1,428,558 1,887,540 158,495 1,478,853 656,065 35,160,101 29,163,845 32,919,680 27,627,092 24,529,091 - - 275,633 479,524 149,061 4,524,279 5,022,809 5,346,957 5,074,250 3,649,823 27,904,610 27,027,302 26,300,446 23,767,246 22,361,431 9,056,185 6,526,872 8,180,904 17,506,167 13,721,310 685,195 762,771 581,423 1,167,128 627,167 45,505 69,846 20,993 62,121 82,281 2,338,555 3,267,989 4,260,121 2,207,958 435,530 5,346,333 4,358,560 4,392,752 5,444,846 4,958,995 310,457 563,311 1,577,281 837,498 548,963 16,645,845 11,725,740 14,256,747 17,045,179 23,614,653 - - - - - 744,153 770,082 1,635,555 2,269,613 1,834,137 - - 17,723 - - 2,000,000 - 246,980 20,851 20,212 138,393,167 119,686,776 134,038,780 143,977,660 131,621,431 12,987,938 11,048,191 10,626,608 10,632,984 8,887,844 45,790,283 43,851,403 42,171,051 40,227,829 39,205,878 26,313,896 24,258,001 24,938,001 22,141,238 20,573,495 267,337 465,081 505,667 649,733 137,021 14,537,461 12,671,821 12,881,284 12,383,400 12,294,509 1,510,156 1,440,612 1,523,489 1,441,062 1,514,642 173 -- 197 of 234 -- CITY OF DES MOINES, IOWA PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Operating grants and contributions: Parking facilities system - $ - $ - $ - $ - $ Municipal Housing Agency 26,133,289 20,969,757 19,227,454 22,062,606 20,080,393 Capital grants and contributions: Parking facilities system - 30,000 60,000 - - Sewer system 1,357,455 489,103 79,542 1,636,942 1,001,829 Stormwater utility 1,903,270 403,715 3,147,412 3,419,677 806,872 Golf 6,200 700 2,100 3,000 3,895 Municipal Housing Agency 307,753 1,365,456 292,957 926,979 769,078 Total business-type activities program revenues 145,670,999 133,151,591 129,783,820 134,726,591 123,594,366 Total primary government program revenues 333,552,793 $ 328,689,370 $ 281,937,985 $ 286,479,159 $ 264,729,915 $ 174 -- 198 of 234 -- 2019 2018 2017 2016 2015 - $ - $ - $ - $ - $ 19,009,341 17,602,214 17,821,648 17,267,565 17,901,651 - - - - - 934,186 846,485 340,943 378,068 498,357 3,177,112 4,275,195 6,003,844 191,525 2,172,789 3,500 1,500 3,000 4,000 6,000 907,772 1,107,391 615,879 804,361 606,942 125,438,982 117,567,894 117,431,414 106,121,765 103,799,128 263,832,149 $ 237,254,670 $ 251,470,194 $ 250,099,425 $ 235,420,559 $ 175 -- 199 of 234 -- CITY OF DES MOINES, IOWA FUND BALANCES (DEFICITS), GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 General Fund: Nonspendable 3,177,451 $ 3,913,258 $ 3,795,744 $ 4,541,429 $ 5,655,589 $ Restricted 1,248,957 1,248,957 1,430,349 1,432,995 - Committed 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Unassigned 87,185,061 97,348,472 55,592,142 53,371,093 38,735,708 Total General Fund 92,611,469 $ 103,510,687 $ 61,818,235 $ 60,345,517 $ 45,391,297 $ All Other Governmental Funds: Nonspendable 4,558,782 $ 4,026,848 $ 4,441,537 $ 4,474,133 $ 4,972,291 $ Restricted 110,510,556 93,751,585 83,303,535 73,582,816 61,179,480 Committed 179,084,750 151,928,222 129,583,029 91,217,562 56,476,166 Unassigned (2,389,528) (722,024) (4,784,967) (1,820,553) (2,302,296) Total all other government funds 291,764,560 $ 248,984,631 $ 212,543,134 $ 167,453,958 $ 120,325,641 $ 176 -- 200 of 234 -- Table 4 2019 2018 2017 2016 2015 5,400,481 $ 5,795,608 $ 6,440,820 $ 7,070,710 $ 7,716,763 $ 175,380 143,875 143,875 143,875 143,875 1,000,000 1,000,000 1,400,000 1,250,000 1,200,000 44,374,483 32,604,828 27,775,452 28,308,731 25,362,143 50,950,344 $ 39,544,311 $ 35,760,147 $ 36,773,316 $ 34,422,781 $ 4,566,594 $ 4,738,470 $ 4,623,609 $ 4,236,516 $ 4,319,701 $ 41,857,638 26,700,446 46,086,174 22,226,428 17,075,970 44,641,966 45,000,829 44,957,761 33,591,823 29,501,856 (1,309,108) (632,429) (606,761) (5,633,375) (683,569) 89,757,090 $ 75,807,316 $ 95,060,783 $ 54,421,392 $ 50,213,958 $ 177 -- 201 of 234 -- CITY OF DES MOINES, IOWA CHANGES IN FUND BALANCES, (DEFICITS) GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Unaudited) 2024 2023 2022 2021 2020 Revenues: Taxes 255,838,938 $ 263,380,953 $ 262,924,526 $ 222,972,083 $ 215,182,497 $ Franchise fees 13,240,759 15,187,574 15,626,934 14,398,834 18,089,946 Licenses and permits 4,787,755 4,120,839 4,279,081 4,002,772 4,427,534 Fines and Forfeitures 5,679,194 6,934,424 6,946,186 6,868,173 6,494,366 Charges for sales and services 22,816,348 24,764,100 23,283,219 21,177,338 18,210,351 Use of money and property 21,909,717 18,340,574 3,681,100 2,410,860 5,055,134 Miscellaneous 22,805,790 22,351,298 19,991,403 22,354,985 23,087,044 Intergovernmental 102,909,452 122,538,389 80,152,384 97,724,525 62,893,445 Total revenue 449,987,953 477,618,151 416,884,833 391,909,570 353,440,317 Expenditures: Public safety 147,044,840 140,007,946 131,757,527 122,151,073 119,537,011 Public works 41,477,256 37,742,388 30,065,717 31,645,681 32,468,112 Health and social services 14,015,165 15,429,348 10,678,613 10,708,268 9,377,836 Culture and recreation 30,577,904 30,251,504 26,619,971 22,001,347 21,380,898 Community and economic development 34,992,258 31,979,664 35,520,620 35,459,524 26,065,349 General Government 52,832,151 47,672,158 44,059,600 36,105,533 33,663,506 Capital outlay 128,929,339 101,716,526 98,666,091 132,646,680 82,843,393 Debt service: Principal retirement 50,406,210 49,270,550 75,634,618 106,888,766 91,707,908 Lease principal payments 32,177 42,836 80,545 - - Subscription-based principal payments 113,274 460,728 - - - Interest and fiscal charges 20,101,081 18,837,888 18,943,239 17,772,597 18,624,053 Total expenditures 520,521,655 473,411,536 472,026,541 515,379,469 435,668,066 Excess (deficiency) of revenue over expenditures (70,533,702) 4,206,615 (55,141,708) (123,469,899) (82,227,749) Other financing sources (uses): Transfers in 278,965,440 267,912,340 250,699,204 258,318,979 166,531,129 Transfers out (286,385,520) (271,249,607) (254,317,601) (243,216,401) (178,188,845) Premium on bond issue 3,254,207 6,485,430 8,811,754 14,067,917 12,589,360 General obligation bonds issued 69,665,000 69,725,000 94,175,000 154,785,000 106,060,000 Other debt issued 33,000,000 937,891 2,222,825 111,555 - Proceeds from damage claims 1,000 2,457 81,045 30,477 4,339 Proceeds from capital asset sale 3,914,286 113,823 31,375 54,513 241,270 Total other financing sources (uses) 102,414,413 73,927,334 101,703,602 184,152,040 107,237,253 Net changes in fund balance 31,880,711 $ 78,133,949 $ 46,561,894 $ 60,682,141 $ 25,009,504 $ Debt service as a percentage of noncapital expenditures 18.0% 18.5% 25.4% 32.6% 31.3% 178 -- 202 of 234 -- Table 5 2019 2018 2017 2016 2015 176,289,979 $ 158,967,581 $ 153,194,093 $ 148,013,233 $ 145,195,212 $ 19,955,046 20,092,159 19,118,675 17,972,341 18,780,277 4,804,484 4,740,483 5,258,556 6,055,968 4,319,383 7,212,504 3,889,340 6,831,709 6,520,277 6,173,117 16,201,286 14,971,112 18,440,168 19,125,930 19,450,317 5,997,366 4,702,896 2,946,635 2,800,540 2,141,765 21,875,867 21,843,232 26,549,885 25,847,782 21,160,461 66,248,789 57,744,429 69,681,949 65,782,573 71,359,573 318,585,321 286,951,232 302,021,670 292,118,644 288,580,105 118,212,221 110,575,960 109,138,129 105,026,519 100,755,434 27,692,137 28,729,788 33,833,455 30,094,569 29,187,711 9,198,093 9,272,889 9,077,016 18,337,890 15,014,840 21,528,737 20,245,050 20,396,748 22,955,145 20,981,303 24,125,445 42,089,399 18,819,812 19,969,567 19,138,842 30,445,685 31,011,748 25,178,926 21,995,185 20,782,959 80,919,632 59,942,356 51,571,361 45,625,899 50,937,132 46,954,838 109,305,337 53,841,896 70,494,428 62,732,504 - - - - - - - - - - 18,140,014 17,592,139 18,036,562 18,369,838 19,212,403 377,216,802 428,764,666 339,893,905 352,869,040 338,743,128 (58,631,481) (141,813,434) (37,872,235) (60,750,396) (50,163,023) 147,886,324 136,250,660 104,017,243 83,413,129 78,886,254 (121,336,962) (124,784,880) (104,443,195) (85,831,129) (82,042,487) 1,991,865 7,589,148 4,163,796 4,595,136 5,545,738 45,640,000 97,805,000 72,370,000 61,770,000 54,660,000 8,326,000 4,000,000 - - 1,200,000 28,585 314,236 307,221 337,876 479,555 1,451,476 5,169,966 1,083,392 3,208,250 1,543,239 83,987,288 126,344,130 77,498,457 67,493,262 60,272,299 25,355,807 $ (15,469,304) $ 39,626,222 $ 6,742,866 $ 10,109,276 $ 22.0% 34.4% 24.9% 28.9% 28.5% 179 -- 203 of 234 -- CITY OF -- 204 of 234 -- 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 2023-24 188,458,278 $ 53,595,072 $ 10,065,246 $ 3,548,025 $ 143,832 $ 28,485 $ 255,838,938 $ 2022-23 190,490,198 60,285,067 8,720,139 3,727,583 132,693 25,273 263,380,953 $ 2021-22 179,028,635 55,240,296 7,610,216 3,651,787 123,627 23,284 245,677,845 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 41,946 215,182,498 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 Change 2015-2024 39.662% N/A 74.021% -18.029% 23.175% 4.882% 76.203% Source: Amounts in the ACFR document, "ACFR Classification" column of "Taxes". Object Codes 4500XX 181 -- 205 of 234 -- 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 2023 13,605,921,185 $ 3,263,552,259 $ - $ 296,818,412 $ 11,154,210 $ 2022 11,280,621,846 3,856,725,644 - 340,034,161 8,664,906 2021 10,431,806,617 3,840,318,888 763,926,510 335,876,930 8,857,970 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 Source: State of Iowa Department of Management 182 -- 206 of 234 -- 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 27,773,809 $ 660,504,879 $ 17,865,724,754 $ 16.61000 $ 11.10% 10,507,405,076 $ 59% 27,094,003 566,904,636 16,080,045,196 16.61000 1.37% 9,819,556,987 61% 25,465,675 457,118,562 15,863,371,152 16.61000 9.29% 9,927,470,714 63% 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% 183 -- 207 of 234 -- 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 2023-2024 8.10000 0.00000 0.28999 0.00000 5.30943 2.91058 16.61000 6.77099 2.39364 0.03175 0.25772 2022-2023 8.10000 0.00000 0.28999 0.00000 5.30943 2.91058 16.61000 6.77099 2.57722 0.03328 0.22542 2021-2022 8.10000 0.00000 0.29000 0.00000 5.26000 2.96000 16.61000 7.13383 2.5774 0.03486 0.19192 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 0.0369 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 7.1688 3.11769 0.04061 0.2775 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 184 -- 208 of 234 -- 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 0.00180 0.75916 0.95000 14.67446 17.91253 15.44253 13.07621 13.88867 12.21816 0.00240 0.69448 0.95000 15.34447 17.99628 15.44256 12.89000 17.75152 13.15798 0.00280 0.69448 0.95000 15.34447 17.99628 15.44256 12.89000 17.75152 13.15798 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 12.89 18.35111 13.27 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 185 -- 209 of 234 -- CITY OF -- 210 of 234 -- 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 2024 2022 191,938,222 $ 194,398,324 $ 101.28% (1,256,067) $ 193,142,257 $ 100.63% 2023 2021 195,384,269 $ 194,075,155 $ 99.33% (799,082) 193,276,072 98.92% 2022 2020 184,710,262 179,337,018 97.09% (368,689) 193,706,466 104.87% 2021 2019 181,437,751 180,139,959 99.28% 1,154,790 180,491,808 99.48% 2020 2018 165,645,341 164,022,582 99.02% 1,413,997 181,553,956 109.60% 2019 2017 165,655,632 165,284,619 99.78% 105,715 164,128,297 99.08% 2018 2016 149,773,091 148,724,279 99.30% 47,275 165,331,894 110.39% 2017 2015 143,290,177 143,046,188 99.83% 126,460 148,850,739 103.88% 2016 2014 146,521,326 144,200,974 98.42% - 143,046,188 97.63% 2015 2013 141,425,834 141,068,543 99.75% 181,084 144,382,058 102.09% 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. 187 -- 211 of 234 -- CITY OF -- 212 of 234 -- CITY OF DES MOINES, IOWA Table 10 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND TEN YEARS AGO (Unaudited) 2023* 2013 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. $293,791,478 1 3.32% $194,700,950 2 1.10% Mid-American Energy $187,557,428 2 2.12% $570,261,911 1 3.10% Nationwide Mutual Life 143,786,342 3 1.63% 171,376,280 3 0.90% Wells Fargo Financial, Inc 112,544,164 4 1.27% 117,288,290 6 0.60% Wellmark, Inc. 109,243,951 5 1.24% 132,797,300 5 0.70% Employers Mutual Casualty Co 91,813,874 6 1.04% Linden Street Investments LLC 73,656,975 7 0.83% Federal Home Loan Bank of DSM 34,356,015 8 0.39% Kemin Holdings LC 32,243,879 9 0.36% Merle Hay Investors 29,434,705 10 0.33% Prairie Meadows 102,909,000 7 0.60% Mercy Hospital 74,082,460 8 0.40% R & R Investors 154,605,060 4 0.80% Pioneer Hi-Bred 73,785,590 9 0.40% Hubbell Interests 71,019,790 10 0.40% Total $1,108,428,811 12.53% $1,662,826,631 9.00% Source: Polk County Auditor *Taxable valuation of 1/1/2022 for fiscal year 2023 189 -- 213 of 234 -- CITY OF DES MOINES, IOWA RATIOS OF DEBT OUTSTANDING BY TYPE LAST TEN FISCAL YEARS (Unaudited) General Less Amount Net Subscription- Fiscal Obligation Available in General Loans Notes Lease Based IT Revenue Year Bonds Debt Service Bonded Debt (A) Payable Payable Liabilities Liabilities Bonds 2024 565,156,191 $ 30,738,710 $ 534,417,481 $ 4,293,000 $ 33,899,873 $ 1,763,326 $ 363,889 $ - $ 2023 545,772,238 19,049,604 526,722,634 5,196,000 2,528,083 1,795,503 477,163 - 2022 522,652,993 6,940,325 515,712,668 6,048,000 4,001,633 2,081,939 - - 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 (1) Per capita numbers for current year and prior 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 190 -- 214 of 234 -- Table 11 Net General Percentage General Total Percentage of Total General Bonded of Actual Notes Obligation Revenue Lease Primary Per Capita Per Bonded Debt Per Property Payable Bonds (B) Bonds Liabilities Government Income(1) Capita(1) Debt (A+B) Capita Value 61,896,000 $ 17,160,175 $ 130,517,904 $ 24,442,588 $ 839,129,057 $ 13.72% 3,919 551,577,656 $ 2,576 $ 3.43% 61,495,289 18,192,664 114,324,219 25,596,977 774,900,973 12.67% 3,619 544,915,298 2,545 3.39% 51,999,451 19,822,168 100,809,770 26,696,192 734,112,146 12.01% 3,428 535,534,836 2,501 3.69% 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% Business-Type Activities 191 -- 215 of 234 -- CITY OF -- 216 of 234 -- 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 555,768,987 $ 100.00 % 555,768,987 $ Polk County 142,105,826 0.31 444,475 School Districts: Carlisle 14,605,000 21.76 3,178,048 Johnston 9,220,000 5.85 539,370 Saydel 20,340,000 2.23 453,582 Southeast Polk 86,075,000 6.49 5,586,268 Urbandale Sanitary Sewer District 484,575 0.13 630 Area XI Community College 86,510,000 16.00 13,841,600 Total overlapping 359,340,401 24,043,972 Total direct and overlapping 915,109,388 $ 579,812,959 $ *Excludes revenue-supported debt, tax and aid anticipation certificates and school energy loans. Source: Polk County Auditor, DMACC, individual school districts, the Iowa Dept. of Management and the official statements for the issued debt. 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. 193 -- 217 of 234 -- CITY OF DES MOINES, IOWA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (Unaudited) Legal Debt Margin Calculation for Fiscal Year 2024 Assessed value 19,295,979,349 $ Debt limit (5% of assessed value) 964,798,967 Debt applicable to limit: General obligation bonds 599,774,600 Other Legal Indebtedness (TIF Rebates and Leases) 20,553,153 Total net debt applicable to limit 620,327,753 Legal debt margin 344,471,214 $ 2024 2023 2022 2021 Debt limit 964,798,967 $ 803,564,354 $ 792,697,654 $ 725,257,392 $ Total net debt applicable to limit 620,327,753 671,064,474 596,497,550 514,321,570 Legal debt margin 344,471,214 $ 132,499,880 $ 196,200,104 $ 210,935,822 $ Total net debt applicable to the limit as a percentage of debt limit 64.30% 83.51% 70.92% 71.75% 194 -- 218 of 234 -- Table 13 2020 2019 2018 2017 2016 2015 716,441,672 $ 633,944,619 $ 577,394,243 $ 569,816,717 $ 542,887,856 $ 536,568,585 $ 514,081,949 415,647,116 406,792,071 425,109,841 403,990,465 410,589,515 202,359,723 $ 218,297,503 $ 170,602,172 $ 144,706,876 $ 138,897,391 $ 125,979,070 $ 70.45% 74.60% 74.42% 76.52% 77.08% 69.49% 195 -- 219 of 234 -- 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 2024 50,213,472 $ 34,356,505 $ 15,856,967 $ 2,089,051 $ 655,979 $ 5.78 2023 47,291,542 24,531,665 22,759,877 1,977,000 476,445 9.28 2022 45,677,188 23,953,581 21,723,607 3,646,000 393,453 5.38 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 2.10 196 -- 220 of 234 -- Table 14 Stormwater Bonds Operating Less Operating Net Available Debt Service Revenues Expenses Revenue Principal Interest Coverage 34,574,108 $ 15,864,159 $ 18,709,949 $ 7,114,051 $ 4,888,989 $ 1.56 32,484,260 14,098,051 18,386,209 7,259,000 4,395,120 1.58 31,232,954 13,185,444 18,047,510 7,099,000 3,761,467 1.66 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 14,584,329 3,135,000 1,205,494 3.36 22,141,238 9,766,466 12,374,772 2,970,000 907,398 3.19 20,569,761 8,970,669 11,599,092 3,117,918 990,264 2.82 197 -- 221 of 234 -- CITY OF -- 222 of 234 -- 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) 2024 214,133 $60,882 $37,526 34.4 30,801 3.0% 2023 214,133 58,018 34,915 35 30,801 2.8% 2022 214,133 60,693 33,107 35.1 30,774 2.5% 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% Sources: 1. US Census Bureau. 2. U.S. Bureau of Labor Statistics. > LAUS Publications > Overview > News Releases > Archived 3. Des Moines Public Schools. Notes: The demographic statistic is being added to the report. Personal Income data is not available. 199 -- 223 of 234 -- CITY OF -- 224 of 234 -- 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 13,000 1 3.6% 14,000 1 HyVee Food Stores 11,184 2 3.1% 6,400 4 Principal Financial Group 6,100 3 1.7% 6,066 5 MercyOne 5,777 4 1.6% 7,055 2 Unity Point Health Partners 5,492 5 1.5% 6,435 3 Des Moines Public Schools 5,200 6 1.4% 4,806 6 Amazon 3,500 7 1.0% John Deere Companies 3,328 8 0.9% 1,900 9 Nationwide/Allied Insurance 3,300 9 0.9% 4,269 7 Corteva Agriscience/Dupont Pioneer 2,255 10 Dupont Pioneer 2,800 8 Kum and Go 1,820 10 Total employment** 363,625 Source: *Greater Des Moines Partnership **Bureau of Labor Statistics > Economic Releases > Archived News Releases > June 2023 > Metropolitan Area ***City Records 2024* 2016*** 201 -- 225 of 234 -- CITY OF DES MOINES FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTIONS LAST TEN FISCAL YEARS (Unaudited) FUNCTIONS/PROGRAMS 2024 2023 2022 2021 GOVERNMENTAL FUND TYPES Public safety Police Department 447.0 447.0 444.0 446.0 Fire Department 312.0 312.0 313.0 306.0 Development and Neighborhood Services 69.9 69.9 65.9 62.9 Total public safety 828.9 828.9 822.9 814.9 Public works Engineering 103.0 102.0 101.0 100.0 Public Works Department 86.1 86.1 86.1 86.1 Total public works 189.1 188.1 187.1 186.1 Health and social services Neighborhood Services Grants 25.9 25.9 25.9 22.9 Human Rights 6.0 6.0 6.0 6.0 Total health and social services 31.9 31.9 31.9 28.9 Culture and recreation Parks Department 61.0 60.0 57.0 52.0 Public Libraries 71.0 70.0 65.0 65.0 Total culture and recreation 132.0 130.0 122.0 117.0 Community and economic development Development Services 29.0 29.0 28.0 24.0 Total Community and economic development 29.0 29.0 28.0 24.0 General government City Clerk 7.0 7.0 7.0 7.0 City Manager 54.1 49.1 45.1 41.1 Finance Department 25.0 24.0 24.0 21.0 Human Resources 14.0 13.0 13.0 11.0 Information Technology 47.0 47.0 35.0 35.0 Legal 21.3 21.3 21.3 21.3 Mayor and Council 7.0 7.0 7.0 7.0 Parks Department 8.0 9.0 9.0 9.0 Total general government 183.4 177.4 161.4 152.4 Total governmental fund types 1394.3 1385.3 1353.3 1323.3 PROPRIETARY FUNDS Airport 17.0 17.0 17.0 17.0 Parking facilities system 14.0 14.0 14.0 14.0 Sewer system 46.1 55.5 55.5 55.5 Stormwater utility 75.5 64.1 64.1 64.1 Solid waste system 49.8 49.8 49.8 49.8 Municipal Housing Agency 34.0 35.0 35.0 35.0 Internal service funds 61.0 60.0 63.0 63.0 Total proprietary funds 297.4 295.4 298.4 298.4 Total City employment 1691.7 1680.7 1651.7 1621.7 Source: City records. 202 -- 226 of 234 -- Table 17 2020 2019 2018 2017 2016 2015 446.0 444.0 448.0 448.0 448.0 450.0 303.0 296.0 295.0 295.0 283.0 283.0 57.9 54.0 54.9 50.1 44.7 45.7 806.9 794.0 797.9 793.1 775.7 778.7 97.0 95.0 90.0 86.8 84.8 84.5 86.1 86.1 88.0 87.0 86.0 86.0 183.1 181.1 178.0 173.8 170.8 170.5 25.9 26.7 25.9 27.7 27.1 26.4 5.0 5.0 5.0 5.0 4.0 3.0 30.9 31.7 30.9 32.7 31.1 29.4 51.0 50.0 49.0 50.0 70.0 71.3 64.0 59.0 56.0 56.0 56.0 55.0 115.0 109.0 105.0 106.0 126.0 126.3 7.0 7.0 7.0 7.0 7.0 5.0 7.0 7.0 7.0 7.0 7.0 5.0 7.0 7.0 7.0 7.0 7.0 7.0 39.1 35.0 36.0 33.0 12.0 10.0 22.0 22.0 22.0 22.0 21.0 21.0 11.0 11.0 11.0 11.0 10.0 10.0 34.0 33.0 31.0 31.0 28.0 28.0 21.3 20.3 20.3 18.3 18.3 17.0 7.0 7.0 7.0 7.0 7.0 7.0 9.0 9.0 9.0 9.0 9.0 9.4 150.4 144.3 143.3 138.3 112.3 109.4 1293.3 1267.1 1262.1 1250.9 1222.9 1219.3 17.0 17.0 17.0 17.0 19.0 21.0 14.0 14.0 14.0 14.3 14.3 14.5 54.3 54.6 54.3 53.4 53.1 53.0 65.3 64.7 63.7 63.6 63.9 64.0 49.8 49.6 49.0 50.0 50.0 50.0 34.0 34.0 34.0 35.0 37.0 47.0 63.0 61.0 60.0 60.0 60.0 60.0 297.4 294.9 292.0 293.3 297.3 309.5 1590.7 1562.0 1554.1 1544.2 1520.2 1528.8 203 -- 227 of 234 -- CITY OF DES MOINES, IOWA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS (Unaudited) 2024 2023 2022 Public safety: Police Department--calls for service 203,296 201,323 203,001 Criminal Investigation Division--person offenses reported 9,876 11,992 3,458 Criminal Investigation Division--property offenses reported 16,939 11,272 12,468 Fire Department--total incidents 34,120 33,093 31,834 Fire suppression--total fires 847 851 816 Emergency medical services--medic calls 21,249 20,880 20,357 Emergency medical services--transports 17,175 17,647 16,997 Permit and Development Center--number of permits issued 17,143 16,791 15,571 Permit and Development Center--number of inspections 39,211 36,254 35,532 Permit and Development Center--number of plan reviews 14,440 14,361 13,360 Public works: Engineering Department--cost of awarded contracts $75,682,408 $97,467,932 $107,370,919 Public Works Department--snow and ice control-lane miles 2,215 2,215 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 243 - 5 Senior Living Program applications taken (households) ** ** ** Culture and recreation: Library usage--annual visits 887,821 788,407 599,230 Aquatic center/pools attendance 133,657 121,447 89,241 Annuals (plants) distributed to organizations 215,900 158,200 153,350 Community center attendance (calendar year) 64,631 56,315 67,264 Cemeteries--burials 499 489 597 Community and economic development: Increment valuations in tax increment financing districts $3,107,007,829 $2,696,833,078 $2,553,399,298 General government: Animal licenses issued (cat and dog) 12,861 14,170 14,227 Legal Department--written legal opinions 1,544 1,473 1,206 Tort litigation--traffic court trials 440 342 557 Enterprise funds: Number of sanitary sewer feet cleaned per year 1,502,056 1,820,442 1,535,819 Number of storm sewer feet cleaned per year 7,413 70,078 56,200 Solid waste collected annually (lbs) per year 162,450,000 130,550,000 136,266,000 Rounds of golf 126,720 120,782 107,959 Source: City records. * Current year not available ** The Community Action Agency was taken over by Impact Community Action Partnership on October 1, 2015. 204 -- 228 of 234 -- Table 18 2021 2020 2019 2018 2017 2016 2015 195,768 200,409 446,723 389,044 367,194 363,543 372,977 3,845 1,158 5,127 4,931 8,788 9,314 9,212 10,887 9,207 12,810 13,818 13,776 12,306 13,010 29,325 27,684 26,721 26,130 24,971 23,206 22,440 836 706 609 726 619 587 653 18,604 18,240 18,272 18,437 17,540 16,587 15,547 15,570 15,439 20,204 15,300 14,406 13,452 13,004 15,073 17,703 18,091 17,287 15,567 15,543 15,464 35,253 40,622 50,071 41,813 12,399 41,254 41,172 11,014 12,953 12,928 13,261 35,803 12,770 12,455 $123,165,045 $106,828,709 $104,067,204 $68,117,323 $50,534,697 $34,798,141 $16,483,904 2,207 2,207 2,207 2,207 2,207 2,207 2,207 ** ** ** ** ** ** 6,001 ** ** ** ** ** ** 148 ** ** ** ** ** ** - - 95 53 54 42 37 3 ** ** ** ** ** ** 99 278,963 658,588 881,497 813,042 866,329 2,223,053 2,674,409 72,142 19,797 96,313 91,331 114,404 113,154 107,161 144,500 179,000 210,000 233,000 258,000 323,300 277,660 25,021 64,294 86,630 73,505 91,951 126,665 98,974 579 515 507 560 504 613 645 $2,474,157,134 $2,126,182,194 $1,945,522,995 $1,332,180,629 $1,367,806,860 $1,235,548,361 $1,220,550,250 16,717 17,950 19,286 19,510 20,174 22,355 21,731 1,403 1,394 1,347 1,359 1,335 1,297 1,041 688 815 631 624 988 1532* 1,532 2,916,656 2,981,663 2,986,489 3,202,117 4,002,646 2,931,359 3,191,128 153,663 339,349 794,691 800,529 515,145 562,710 670,900 140,976,000 128,374,000 158,126,431 162,013,940 153,713,820 169,916,000 167,000,000 110,059 103,271 84,961 84,057 87,185 84,990 87,903 205 -- 229 of 234 -- CITY OF DES MOINES, IOWA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (Unaudited) 2024 2023 2022 2021 Function/Program Public Safety: Police: Number of Stations 1 1 1 1 Fire: Number of Stations 11 11 11 10 Stations with EMS transport capability 10 10 10 9 Public Works: Streets paved lane miles 2,167 2,135 2,167 2,167 Streets unpaved lane miles 79 80 79 79 Sanitary sewer miles 1,017 1,011 1,005 1,005 Storm sewer miles 560 583 571 571 Number of street lights 24,400 24,500 24,500 25,200 Area--number of city square miles 91 91 91 91 Culture and Recreation: Parks-number of park areas 77 77 76 76 Total park acres 5,637 5,585 4,033 4,033 Number of boulevards 9 9 9 9 Number of playgrounds 65 63 61 61 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 57 57 57 Number of softball diamonds 9 8 8 8 Number of baseball diamonds 9 10 8 8 Number of community centers 2 2 2 2 Miles of bike trails 95 89 88 86 Cemeteries: Number of facilities 8 7 7 7 Number of acres 392 392 345 345 Library: Number of Facilities 6 6 6 6 Number of Volumes* 445,406 445,564 453,053 450,658 Source: City Records Note: Some information is not available for some of the years. 206 -- 230 of 234 -- Table 19 2020 2019 2018 2017 2016 2015 1 1 1 1 1 1 10 10 10 10 10 10 9 9 9 8 8 8 2,167 2,143 2,141 2,139 2,139 2,134 79 74 74 74 74 74 1,006 942 942 942 942 935 568 529 529 529 529 493 25,200 25,200 24,880 24,750 25,900 25,700 91 91 91 91 91 91 76 75 75 75 76 76 4,033 4,031 4,031 4,031 4,031 3,877 9 9 9 9 9 9 59 58 58 62 63 63 3 3 3 3 3 3 12 12 12 12 12 12 5 5 5 5 5 5 64 64 64 64 64 64 8 8 8 8 8 8 8 8 8 8 8 8 2 2 2 2 3 3 86 83 81 81 81 78 7 7 7 7 7 7 345 345 345 345 345 345 6 6 6 6 6 6 481,218 478,237 478,993 548,848 522,809 560,890 207 -- 231 of 234 -- CITY OF DES MOINES, IOWA SCHEDULE OF INSURANCE IN FORCE June 30, 2024 (Unaudited) POLICY TYPE OF INSURANCE / INSURANCE COMPANY PERIOD PROPERTY INSURANCE Alliant Insurance Services, Inc. 7-1-23/24 Housing Authority Property Insurance 1-1-24/25 FLOOD INSURANCE Selective Insurance Co. (N.F.I.P.) 7-1-23/24 Selective Insurance Co. (N.F.I.P.) 12-14-23/24 CRIME INSURANCE Travelers Casualty & Surety Co. of America 7-1-23/24 SPECIAL EXCESS LIABILITY INSURANCE States Self-Insurers Risk Retention Group 7-1-23/24 GENERAL LIABILITY INSURANCE Housing Authority Risk Retention Group 1-1-24/25 AUTO LIABILITY INSURANCE The Travelers Indemnity Company of America 7-1-23/24 WORKERS COMPENSATION INSURANCE American International Group 7-1-23/24 Mutual of Omaha 7-1-23/24 American International Group 7-1-23/24 EXCESS WORKERS COMPENSATION INSURANCE Safety National Casualty Corp 7-1-23/24 208 -- 232 of 234 -- Table 20 NAMED INSURED / POLICY ANNUAL DETAILS OF COVERAGE LIMITS PREMIUM City of Des Moines Buildings & Contents 813,779,356 $ 1,305,042 $ 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 51,798,708 $ 89,969 $ City of Des Moines & Housing Authority (6 buildings in Flood Zone "A") Various 19,638 $ 2309 Euclid Ave 421,000 $ 843 $ Shared: City, WRA & DMMHA Employee Theft 5,000,000 $ 17,925 $ Computer Fraud 5,000,000 included Funds Tranfer Fraud 5,000,000 included Shared: City & DMMHA Citywide General, Automobile, Law 10,000,000 $ 325,689 $ Enforcement, Public Officials Liability, etc 2,000,000 SIR Municipal Housing Agency General Liability 2,000,000 $ 56,225 $ Shared: City & DMMHA Following enterpise fund activities included: 2,000,000 $ 147,085 $ 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 11,739 Excess Occupational Medical 500,000 9,740 City of Des Moines (including WRA Operations) Employers Liability Limit 1,500,000 $ 494,770 $ WRA Operations Liability Limit 500,000 209 -- 233 of 234 -- CITY OF -- 234 of 234 --
More budgets from Des Moines
- Budget
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