CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2018 ASSETS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Current assets: Unrestricted current assets: Cash and investments $ 3,421,882 $ 23,736,565 $ 18,467,420 Taxes receivable --- --- --- Accounts receivable 9,501 463 378 Due from other funds --- 20 --- Due from other governmental units 4,560 382,952 274,110 Inventory --- --- --- Prepaid items 3,031 21,894 25,339 Total unrestricted current assets 3,438,974 24,141,894 18,767,247 Restricted current assets: Cash and investments --- --- --- Interest receivable --- 221 --- Total restricted current assets --- 221 --- Total current assets 3,438,974 24,142,115 18,767,247 Noncurrent assets: Restricted cash and investments --- 2,471,059 3,255,640 Restricted interest receivable --- --- 17,018 Capital assets Land 14,145,778 1,507,707 1,123,701 Construction in progress 1,010,915 12,085,613 17,036,449 Buildings 90,234,951 573,492 --- Improvements other than buildings 34,861,107 196,550,975 156,638,761 Machinery and equipment 1,066,396 7,502,416 6,232,423 Accumulated depreciation (71,636,278) (68,923,528) (26,203,023) Total capital assets, net of accumulated depreciation BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS 69,682,869 149,296,675 154,828,311 Total noncurrent assets 69,682,869 151,767,734 158,100,969 Total assets $ 73,121,843 $ 175,909,849 $ 176,868,216 DEFERRED OUTFLOW OF RESOURCES Other postemployment benefits related deferred outflows 7,771 43,849 21,647 Pension related deferred outflows 316,965 1,275,144 1,877,417 Total deferred outflow of resources $ 324,736 $ 1,318,993 $ 1,899,064 36
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS $ 2,998,802 $ 4,519,670 $ 53,144,339 $ 12,535,225 --- --- --- 26,453 47,519 309,827 367,688 21,425 --- --- 20 --- 260,492 91,544 1,013,658 319,199 67,149 --- 67,149 199,996 --- 950 51,214 39,185 3,373,962 4,921,991 54,644,068 13,141,483 --- --- --- --- --- --- 221 --- --- --- 221 --- 3,373,962 4,921,991 54,644,289 13,141,483 2,853,199 --- 8,579,898 --- --- --- 17,018 --- 1,388,411 123,497 18,289,094 --- --- --- 30,132,977 --- 36,291,882 1,741,314 128,841,639 --- 5,858,605 3,466,036 397,375,484 --- 1,525,877 16,305,019 32,632,131 37,011,682 (35,530,407) (13,314,970) (215,608,206) (32,131,900) 9,534,368 8,320,896 391,663,119 4,879,782 12,387,567 8,320,896 400,260,035 4,879,782 $ 15,761,529 $ 13,242,887 $ 454,904,324 $ 18,021,265 18,872 27,198 119,337 33,303 550,068 1,464,374 5,483,968 1,568,126 $ 568,940 $ 1,491,572 $ 5,603,305 $ 1,601,429 (continued) 37
CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION (CONTINUED) PROPRIETARY FUNDS June 30, 2018 BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY LIABILITIES Current liabilities: Accounts payable $ 586,787 $ 339,420 $ 392,326 Contracts payable 49,438 2,120,772 1,965,180 Accrued wages payable 46,768 197,124 284,388 Accrued employee benefits 110,137 302,012 381,433 Due to other funds 384,499 1,815 1,505 Tenant security deposits --- --- --- Notes payable --- 88,716 --- Accrued interest payable 84,408 29,248 20,413 Revenue bonds payable --- 2,353,628 2,156,795 General obligation bonds payable 1,920,000 1,505,000 485,000 Unearned revenue --- --- --- Total 3,182,037 6,937,735 5,687,040 Current liabilities payable from restricted assets: Revenue bonds payable --- 217,372 353,205 Accrued interest payable --- 23,541 65,509 Total current liabilities payable from restricted assets Total current liabilities --- 240,913 418,714 3,182,037 7,178,648 6,105,754 Noncurrent liabilities: Accrued employee benefits 177,335 486,278 614,157 Other postemployment benefits 198,251 1,118,698 552,269 Net pension liability 669,818 2,503,184 3,966,215 Advance from other funds 1,960,949 --- --- Revenue bonds payable, net --- 7,039,167 18,571,234 General obligation bonds payable, net 2,011,681 10,470,137 7,949,896 Capital lease payable 22,534,981 --- --- Other liabilities --- --- --- Total noncurrent liabilities 27,553,015 21,617,464 31,653,771 Total liabilities $ 30,735,052 $ 28,796,112 $ 37,759,525 DEFERRED INFLOWS OF RESOURCES Other postemployment benefits related deferred inflows 7,188 40,559 20,023 Pension related deferred inflows 148,466 553,215 887,624 Total deferred inflows of resources $ 155,654 $ 593,774 $ 907,647 NET POSITION Net investment in capital assets 43,216,207 128,938,005 126,755,531 Restricted: Public housing program --- --- --- Flood projects --- --- --- Debt retirement --- 1,786,348 2,668,198 Unrestricted (660,334) 17,114,603 10,676,379 Total net position $ 42,555,873 $ 147,838,956 $ 140,100,108 The notes to the financial statements are an integral part of this statement. 38
GOVERNMENTAL BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS $ 91,516 $ 479,090 $ 1,889,139 $ 1,097,808 --- --- 4,135,390 --- 112,775 188,601 829,656 208,067 198,501 257,962 1,250,045 1,889,896 53,913 --- 441,732 --- 122,323 --- 122,323 --- --- --- 88,716 --- --- --- 134,069 --- --- --- 4,510,423 --- --- --- 3,910,000 --- 18,712 --- 18,712 9,802 597,740 925,653 17,330,205 3,205,573 --- --- 570,577 --- --- --- 89,050 --- --- --- 659,627 --- 597,740 925,653 17,989,832 3,205,573 192,630 415,352 1,885,752 364,233 481,465 693,876 3,044,559 849,645 2,077,247 3,119,635 12,336,099 3,357,583 --- 2,734,868 4,695,817 --- --- --- 25,610,401 --- --- --- 20,431,714 --- --- --- 22,534,981 --- 287,157 --- 287,157 --- 3,038,499 6,963,731 90,826,480 4,571,461 $ 3,636,239 $ 7,889,384 $ 108,816,312 $ 7,777,034 17,456 25,157 110,383 30,805 105,653 701,046 2,396,004 756,633 $ 123,109 $ 726,203 $ 2,506,387 $ 787,438 9,534,368 8,320,896 316,765,007 4,879,782 3,135,420 --- 3,135,420 --- --- --- --- --- --- --- 4,454,546 --- (98,667) (2,202,024) 24,829,957 6,178,440 $ 12,571,121 $ 6,118,872 $ 349,184,930 $ 11,058,222 39
CITY OF
CITY OF DES MOINES, IOWA RECONCILIATION OF THE ENTERPRISE FUNDS NET POSITION TO THE STATEMENT OF NET POSITION For the Fiscal Year Ended June 30, 2018 Net position of enterprise funds $ 349,184,930 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 (14,114,711) Net position of business-type activities $ 335,070,219 The notes to the financial statements are an integral part of this statement. 41
CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2018 BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Operating revenues: Charges for sales and services $ 11,048,191 $ 43,837,461 $ 24,251,019 Operating grants --- --- --- Miscellaneous --- 13,942 6,982 Total operating revenues 11,048,191 43,851,403 24,258,001 Operating expenses: Personal services 1,242,157 4,955,388 6,236,027 Contractual services 8,121,407 20,042,488 2,334,748 Commodities 187,023 471,919 328,515 Depreciation 4,173,745 4,445,579 3,585,464 Other charges 179,046 5,386,389 3,176,559 Total operating expenses 13,903,378 35,301,763 15,661,313 Operating income (loss) (2,855,187) 8,549,640 8,596,688 Non-operating revenues (expenses): Gain/(loss) on disposal of capital assets 5,022 41,889 (69,584) Investment earnings 13,144 661,145 1,195,088 Proceeds from damage claims 639 --- --- Interest expense and fiscal charges (760,583) (774,108) (1,520,483) Total nonoperating revenues (expenses) (741,778) (71,074) (394,979) Income (loss) before capital grants, contributions and transfers (3,596,965) 8,478,566 8,201,709 Capital grants and contributions --- 934,186 3,177,112 Transfers in 7,329,392 1,025,752 481,859 Transfers out (3,590,000) (8,742,000) (4,970,783) Change in net position 142,427 1,696,504 6,889,897 Total net position - beginning, as restated 42,413,446 146,142,452 133,210,211 Total net position - ending $ 42,555,873 $ 147,838,956 $ 140,100,108 The notes to the financial statements are an integral part of this statement. 42
GOVERNMENTAL BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS $ 1,440,612 $ 13,061,681 $ 93,638,964 $ 46,763,904 19,009,341 --- 19,009,341 --- --- 75,222 96,146 25,860 20,449,953 13,136,903 112,744,451 46,789,764 3,684,727 5,303,625 21,421,924 5,621,613 17,246,425 5,565,565 53,310,633 31,842,793 --- 426,471 1,413,928 5,308,720 1,266,079 922,680 14,393,547 1,820,929 --- 1,376,114 10,118,108 347,396 22,197,231 13,594,455 100,658,140 44,941,451 (1,747,278) (457,552) 12,086,311 1,848,313 --- 183,603 160,930 74,513 41,828 91,680 2,002,885 --- --- 3,423 4,062 22,945 --- (34,974) (3,090,148) --- 41,828 243,732 (922,271) 97,458 (1,705,450) (213,820) 11,164,040 1,945,771 907,772 3,500 5,022,570 --- --- --- 8,837,003 --- --- (3,000,000) (20,302,783) --- (797,678) (3,210,320) 4,720,830 1,945,771 13,368,799 9,329,192 344,464,100 9,112,451 $ 12,571,121 $ 6,118,872 $ 349,184,930 $ 11,058,222 43
CITY OF
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, 2018 Net changes in net position in enterprise funds $ 4,720,830 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 (2,599,674) Change in net position of business-type activities $ 2,121,156 The notes to the financial statements are an integral part of this statement. 45
CITY OF DES MOINES, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2018 BUSINESS-TYPE ACTIVITIES - CASH FLOWS FROM OPERATING ACTIVITIES SEWER STORMWATER PARKING SYSTEM UTILITY Receipts from customers and users $ 11,041,615 $ 43,892,042 $ 24,431,410 Receipts from interfund services provided --- --- --- Payments to suppliers (8,355,062) (25,789,170) (5,743,948) Payments to employees (1,149,761) (4,798,829) (6,156,374) Receipts from miscellaneous revenue --- --- 6,982 Proceeds from damage claims 639 --- --- Payments for interfund services used --- --- --- Net cash provided (used) by operating activities 1,537,431 13,304,043 12,538,070 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments to interfund accounts (384,498) --- --- Proceeds from interfund accounts 2,525 --- --- Transfers In 7,329,392 1,025,752 481,859 Transfers Out (3,590,000) (8,742,000) (4,970,783) Intergovernmental receipts --- --- --- Net cash provided (used) by capital and related financing activities 3,357,419 (7,716,248) (4,488,924) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from intergovernmental and capital grants --- --- 2,259,727 Interest paid on capital debt (731,836) (1,057,220) (2,341,371) Principal paid on long-term debt and leases (1,885,000) (3,274,687) (13,675,000) Proceeds from sale of capital assets 5,022 54,423 119,132 Acquisition and construction of capital assets (4,097,571) (9,728,239) (14,555,056) Net cash provided by (used) by capital and related financing activities (6,709,385) (14,005,723) (28,192,568) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments $ --- $ 14,581,670 $ 18,521,393 Purchase of investments --- (12,451,342) (15,289,944) Interest and dividends received 13,144 646,461 1,200,334 Net cash provided by investing activities 13,144 2,776,789 4,431,783 Net increase (decrease) in cash and cash equivalents (1,801,391) (5,641,139) (15,711,639) Cash and cash equivalents, beginning of year 5,223,273 29,377,704 34,179,059 Cash and cash equivalents, end of year $ 3,421,882 $ 23,736,565 $ 18,467,420 46
MUNICIPAL OTHER GOVERNMENTAL ACTIVITIES HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS $ 20,497,203 $ 13,169,024 $ 113,031,294 $ 37,925,279 --- --- --- 8,833,978 (17,134,845) (7,109,169) (64,132,194) (37,548,631) (3,627,124) (5,164,782) (20,896,870) (5,626,556) --- --- 6,982 --- --- 3,423 4,062 22,945 --- --- --- (292,732) (264,766) 898,496 28,013,274 3,314,283 --- (214,861) (599,359) (318,449) --- --- 2,525 9,802 --- --- 8,837,003 --- --- (3,000,000) (20,302,783) --- --- --- --- 254 --- (3,214,861) (12,062,614) (308,393) 907,772 3,500 3,170,999 --- --- (34,974) (4,165,401) --- --- - (18,834,687) --- --- 224,440 403,017 77,335 (484,004) (4,275,020) (33,139,890) (2,161,713) 423,768 (4,082,054) (52,565,962) (2,084,378) $ --- $ --- $ 33,103,063 $ --- --- --- (27,741,286) --- 41,828 91,680 1,993,447 --- 41,828 91,680 7,355,224 --- 200,830 (6,306,739) (29,260,078) 921,512 5,651,171 10,826,409 85,257,616 11,613,713 $ 5,852,001 $ 4,519,670 $ 55,997,538 $ 12,535,225 (continued) 47
CITY OF DES MOINES, IOWA STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2018 BUSINESS-TYPE ACTIVITIES - SEWER STORMWATER PARKING SYSTEM UTILITY Reconciliation of cash and cash equivalents to specific assets on the combined statement of net position: Unrestricted cash and investments $ 3,421,882 $ 23,736,565 $ 18,467,420 Restricted cash and investments - noncurrent --- 2,471,059 3,255,640 Less items not meeting the definition of cash equivalents --- (2,471,059) (3,255,640) Cash and cash equivalents, end of year 3,421,882 23,736,565 18,467,420 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (2,855,187) $ 8,549,640 $ 8,596,688 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 4,173,745 4,445,579 3,585,464 Proceeds from damage claims 639 --- --- (Increase) decrease in accounts and taxes receivable (9,476) 339,261 169,607 (Increase) decrease in special assessments receivable --- 13,400 15,694 (Increase) decrease in due from other governmental units 2,900 (312,022) (4,910) (Increase) in inventories --- --- --- (Increase) decrease in prepaid items (3,031) (18,108) (14,099) Increase (decrease) in accounts and contracts payable 132,414 129,734 109,973 Increase (decrease) in accrued wages payable (2,166) 18,102 5,871 Increase (decrease) in accrued employee benefits and other postemployment benefits 75,986 113,461 (21,236) Increase (decrease) in due to other governmental units --- --- --- Increase in other liabilities, self-sufficiency participation and tenant security deposits --- --- --- Increase (decrease) in unearned revenue --- --- --- (Increase) decrease in deferred outflows (70,185) (318,255) (424,592) Increase (decrease) in deferred inflows 56,185 214,405 308,374 (Increase) decrease in net pension liability 35,607 128,846 211,236 Total adjustments 4,392,618 4,754,403 3,941,382 Net cash provided (used) by operating activities $ 1,537,431 $ 13,304,043 $ 12,538,070 Schedule of noncash investing and financing activities: Increase (decrease) in fair value of investments (6) 19,571 (4,608) Schedule of noncash capital and related financing activities: Gain (loss) on disposal of capital assets 5,022 41,889 (69,584) Payments on accounts or contracts payable for acquisition of capital assets --- 1,972,142 1,246,355 Capital lease 22,534,981 --- --- Capital assets contributed --- 934,186 917,385 The notes to the financial statements are an integral part of this statement. 48
MUNICIPAL OTHER GOVERNMENTAL ACTIVITIES HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS $ 2,998,802 $ 4,519,670 $ 53,144,339 $ 12,535,225 2,853,199 --- 8,579,898 --- --- --- (5,726,699) --- 5,852,001 4,519,670 55,997,538 12,535,225 $ (1,747,278) $ (457,552) $ 12,086,311 $ 1,848,313 1,266,079 922,680 14,393,547 1,820,929 --- 3,423 4,062 22,945 (1,881) 64,932 562,443 (13,149) --- (32,557) (3,463) --- 29,350 3,079 (281,603) --- --- --- --- (24,684) 21,577 --- (13,661) 13,198 18,196 258,981 649,298 (330,968) 15,096 (4,231) 32,672 (4,817) 42,507 46,182 256,900 (102,039) 10,547 --- 10,547 --- 7,735 --- 7,735 --- 1,499 (3,333) (1,834) (17,358) (167,876) (311,884) (1,292,792) (337,579) 148,740 247,277 974,981 267,412 90,943 161,499 628,131 172,080 1,482,512 1,356,048 15,926,963 1,465,970 $ (264,766) $ 898,496 $ 28,013,274 $ 3,314,283 --- --- 14,957 --- --- 183,603 160,930 74,513 --- --- 3,218,497 --- --- --- 22,534,981 --- --- --- 1,851,571 --- 49