CITY OF DES MOINES, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 ASSETS DEBT TAX GENERAL SERVICE INCREMENT Cash and investments $ 24,534,410 $ 1,846,644 $ 482,630 Taxes receivable 57,786,569 29,876,286 27,154,329 Accounts receivable 4,448,029 --- --- Loans receivable, net of allowance for doubtful accounts --- --- --- Accrued interest receivable 28,593 --- --- Due from other funds 463,716 --- --- Due from other governmental units 1,188,917 --- --- Advance to other funds 6,466,568 --- --- Special assessment receivables 30,585 --- --- Inventory --- --- --- Prepaid items 1,250,195 --- --- Total assets $ 96,197,582 $ 31,722,930 $ 27,636,959 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $ 2,086,980 $ --- $ --- Contracts payable --- --- --- Accrued wages payable 3,013,695 --- --- Accrued employee benefits --- --- --- Due to other funds 117,360 --- --- Due to other governmental units --- --- --- Unearned revenue 83,333 --- --- Good faith, security deposits 894,731 --- 50,000 Total liabilities 6,196,099 --- 50,000 Deferred inflows of resources: Unavailable revenue - property taxes 55,578,702 29,587,659 27,016,892 Unavailable revenue - intergovernmental --- --- --- Unavailable revenue - special assessments --- --- --- Total deferred inflows of resources 55,578,702 29,587,659 27,016,892 Fund balances: Nonspendable 7,716,763 --- --- Restricted 143,875 2,135,271 570,067 Committed 1,200,000 --- --- Unassigned 25,362,143 --- --- Total fund balances 34,422,781 2,135,271 570,067 Total liabilities, deferred inflows of resources and fund balances (deficits) $ 96,197,582 $ 31,722,930 $ 27,636,959 The notes to the financial statements are an integral part of this statement. 28
BENEFIT FRANCHISE OTHER TOTAL TAX FEE COURT CAPITAL GOVERNMENTAL GOVERNMENTAL ACCOUNTS SETTLEMENT PROJECTS FUNDS FUNDS $ --- $ 37,401 $ 27,397,625 $ 10,726,121 $ 65,024,831 20,547,203 --- --- 14,388,087 149,752,474 --- 1,181,417 651,259 374,296 6,655,001 --- --- --- 2,974,637 2,974,637 --- --- --- 1,663 30,256 --- --- 1,925,679 11,876 2,401,271 --- --- 4,797,109 8,432,965 14,418,991 --- --- --- --- 6,466,568 --- --- 2,621,248 14,971 2,666,804 --- --- --- 472,726 472,726 --- --- 57,052 191,473 1,498,720 $ 20,547,203 $ 1,218,818 $ 37,449,972 $ 37,588,815 $ 252,362,279 $ --- $ --- $ 406,685 $ 1,401,531 $ 3,895,196 --- --- 4,958,456 --- 4,958,456 --- --- 67,210 418,665 3,499,570 --- --- --- 239,098 239,098 250,642 --- --- 1,675,037 2,043,039 --- --- --- 200,000 200,000 --- --- 24,304 15,337 122,974 --- --- --- 525,934 1,470,665 250,642 --- 5,456,655 4,475,602 16,428,998 20,305,239 --- --- 14,279,641 146,768,133 --- --- 1,467,104 440,057 1,907,161 --- --- 2,621,248 --- 2,621,248 20,305,239 --- 4,088,352 14,719,698 151,296,542 --- --- 57,052 4,262,649 12,036,464 --- 1,218,818 887,263 12,264,551 17,219,845 --- --- 26,960,650 2,541,206 30,701,856 (8,678) --- --- (674,891) 24,678,574 (8,678) 1,218,818 27,904,965 18,393,515 84,636,739 $ 20,547,203 $ 1,218,818 $ 37,449,972 $ 37,588,815 $ 252,362,279 29
CITY OF DES MOINES, IOWA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2015 Total governmental fund balances $ 84,636,739 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 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. Long-term receivables are not available to pay for current-period expenditures, and therefore, are not reported in the funds; Due from component unit. 996,634,243 4,528,409 30,190,400 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 Capital assets, net of accumulated depreciation 3,297,823 Other current assets 13,231,878 Deferred outflow of resources, pension related items 434,733 Other current liabilities (2,989,636) Net pension liability - IPERS (2,097,601) Other noncurrent liabilities (519,035) Deferred inflow of resources, pension related items (868,656) 10,489,506 Internal service funds allocated to business-type activities 6,541,666 Pension related deferred outflows of resources and deferrend inflows of resources are not due and payable in the current year and, therefore are not reported in the governmental funds, as follows: Deferred outflows of resources - IPERS 6,028,282 Deferred outflows of resources - MFPRSI 19,503,719 Deferred inflows of resources - IPERS (12,187,626) Deferred inflows of resources - MFPRSI (32,197,828) (18,853,453) 30
Long-term liabilities including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. Unamortized premium cost (16,921,388) Unamortized discount 46,269 Accrued employee benefits (31,407,800) Other accrued post retirement benefits (6,117,388) Accrued interest payable (1,467,712) Notes payable (3,810,852) Section 108 loans payable (8,449,000) General obligation bonds payable (364,340,000) Other liabilities, claims and judgments (285,000) Revenue bonds payable, net of discount of $209,600 (30,190,400) Net pension liability - IPERS (29,430,236) Net pension liability - MFPRSI (85,200,836) (577,574,343) Net position of governmental activities $ 536,593,167 The notes to the financial statements are an integral part of this statement. 31
CITY OF DES MOINES, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2015 DEBT TAX GENERAL SERVICE INCREMENT Revenues: Taxes $ 58,496,571 $ 27,790,702 $ 26,032,343 Franchise fees 12,940,957 --- --- Licenses and permits 4,181,428 --- --- Fines and forfeitures 6,155,227 --- --- Charges for sales and services 17,238,681 --- --- Use of money and property 1,321,365 10,104 254,511 Miscellaneous 17,171,643 298,525 329,466 Intergovernmental 3,419,204 4,809,531 --- Total revenue 120,925,076 32,908,862 26,616,320 Expenditures: Current: Public safety 97,868,679 --- --- Public works 8,211,037 --- --- Health and social services 407,467 --- --- Culture and recreation 19,450,339 --- --- Community and economic development 5,848,317 --- 9,886,969 General government 15,125,613 368,725 --- Capital outlay 405,440 --- --- Debt service: Principal retirement --- 59,663,004 214,500 Interest and fiscal charges --- 16,900,298 438,230 Total expenditures 147,316,892 76,932,027 10,539,699 Excess (deficiency) of revenues over expenditures (26,391,816) (44,023,165) 16,076,621 Other financing sources (uses): Transfers in 33,932,743 13,379,323 --- General obligation bonds issued --- 54,660,000 --- Premium on bond issue --- 5,545,738 --- Loan Proceeds --- 1,200,000 --- Transfers out (2,336,875) (29,957,470) (16,144,326) Proceeds from damage claims 30,318 --- --- Proceeds from capital asset sale 284,939 --- 550,000 Total other financing sources (uses) 31,911,125 44,827,591 (15,594,326) Net change in fund balances 5,519,309 804,426 482,295 Fund balances, beginning of year 28,903,472 1,330,845 87,772 Fund balances (deficits), end of year $ 34,422,781 $ 2,135,271 $ 570,067 The notes to the financial statements are an integral part of this statement. 32
BENEFIT FRANCHISE OTHER TOTAL TAX FEE COURT CAPITAL GOVERNMENTAL GOVERNMENTAL ACCOUNTS SETTLEMENT PROJECTS FUNDS FUNDS $ 22,363,499 $ --- $ --- $ 10,512,097 $ 145,195,212 --- 5,839,320 --- --- 18,780,277 --- --- --- 137,955 4,319,383 --- --- --- 17,890 6,173,117 --- --- 133,728 2,077,908 19,450,317 --- 466 34,545 520,774 2,141,765 --- --- 1,287,538 2,073,289 21,160,461 542,738 --- 21,826,492 40,761,608 71,359,573 22,906,237 5,839,786 23,282,303 56,101,521 288,580,105 --- --- 50,807 2,835,948 100,755,434 --- --- 1,575,374 19,401,300 29,187,711 --- --- --- 14,607,373 15,014,840 --- --- 830,546 700,418 20,981,303 --- --- 2,208,604 1,194,952 19,138,842 --- --- 1,275,870 4,012,751 20,782,959 --- --- 50,313,286 218,406 50,937,132 --- 2,855,000 --- --- 62,732,504 --- 1,873,875 --- --- 19,212,403 --- 4,728,875 56,254,487 42,971,148 338,743,128 22,906,237 1,110,911 (32,972,184) 13,130,373 (50,163,023) --- --- 28,046,970 3,527,218 78,886,254 --- --- --- --- 54,660,000 --- --- --- --- 5,545,738 --- --- --- --- 1,200,000 (23,034,073) --- (307,948) (10,261,795) (82,042,487) --- --- 424,349 24,888 479,555 --- --- 547,875 160,425 1,543,239 (23,034,073) --- 28,711,246 (6,549,264) 60,272,299 (127,836) 1,110,911 (4,260,938) 6,581,109 10,109,276 119,158 107,907 32,165,903 11,812,406 74,527,463 $ (8,678) $ 1,218,818 $ 27,904,965 $ 18,393,515 $ 84,636,739 33
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, 2015 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances: Total governmental funds $ 10,109,276 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The following is the detail of the amount by which depreciation exceeded capital outlays in the current period. Capital outlay 50,937,134 Depreciation (37,698,964) 13,238,170 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 from sale of capital assets Capital assets contributed by private sources (1,543,239) 838,955 2,141,853 1,437,569 Repayment on long-term receivable (due from component unit) is recognized in the governmental funds in the current year. Revenue related to the long-term receivable was recognized in the Statement of Activities at the inception of the agreement and thereby the revenue recognized in the governmental funds is reversed. Current period payments (1,580,000) Amortization of discount on receivable 19,522 (1,560,478) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (1,957,883) 34
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 longterm debt and related items. Amortization of premium 2,972,430 Long-term debt issued, including premiums of $5,545,738 (61,405,738) Repayment of long-term debt principal 62,732,504 Interest 515,704 Amortization of discount on general obligation bonds (96,453) Amortization of discount on revenue bonds (19,522) 4,698,925 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 Accrued employee benefits (549,108) Other accrued post retirement benefits (908,986) Claims and judgments (2,000) Pension expense - IPERS 2,432,004 Pension expense - MFPRSI (9,845,316) 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. Change in internal service fund allocations to business-type activities (8,873,406) (1,071,435) 1,903,385 Change in net position of governmental activities $ 17,924,123 The notes to the financial statements are an integral part of this statement. 35