CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2016 ASSETS BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Current assets: Unrestricted current assets: Cash and investments $ 5,859,181 $ 23,911,323 $ 19,419,675 Taxes receivable --- --- --- Accounts receivable 6,928 213,643 80,306 Special assessments receivable --- 39,537 19,309 Due from other funds 1,629,409 1,416 1,159 Due from other governmental units 11,291 --- 1,702,865 Inventory --- --- --- Prepaid items --- 978 7,034 Total unrestricted current assets 7,506,809 24,166,897 21,230,348 Restricted current assets: Cash and investments --- 3,075 4,801 Interest receivable --- 1,131 --- Total restricted current assets --- 4,206 4,801 Total current assets 7,506,809 24,171,103 21,235,149 Noncurrent assets: Restricted cash and investments --- 4,598,491 3,567,274 Restricted interest receivable --- --- 17,817 Capital assets Land 11,876,386 1,340,176 1,023,701 Construction in progress 5,654,549 5,467,436 4,246,944 Buildings 64,449,039 573,491 --- Improvements other than buildings 34,703,680 187,523,904 143,516,219 Machinery and equipment 1,148,917 6,921,744 4,614,700 Accumulated depreciation (64,263,856) (60,934,995) (20,230,875) Total capital assets, net of accumulated depreciation 53,568,715 140,891,756 133,170,689 Total noncurrent assets 53,568,715 145,490,247 136,755,780 Total assets $ 61,075,524 $ 169,661,350 $ 157,990,929 DEFERRED OUTFLOW OF RESOURCES Pension related deferred outflows $ 166,423 $ 619,089 $ 975,479 36
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS GOVERNMENTAL ACTIVITIES MUNICIPAL OTHER TOTAL INTERNAL HOUSING ENTERPRISE ENTERPRISE SERVICE AGENCY FUNDS FUNDS FUNDS $ 1,703,097 $ 9,288,880 $ 60,182,156 $ 10,027,009 --- --- --- 23,629 48,127 349,441 698,445 12,772 --- 87,646 146,492 --- --- --- 1,631,984 15,000 291,706 --- 2,005,862 802 67,149 --- 67,149 134,056 19,220 200 27,432 41,028 2,129,299 9,726,167 64,759,520 10,254,296 --- --- 7,876 --- --- --- 1,131 --- --- --- 9,007 --- 2,129,299 9,726,167 64,768,527 10,254,296 4,491,284 --- 12,657,049 --- --- --- 17,817 --- 1,388,411 123,497 15,752,171 --- --- --- 15,368,929 --- 35,296,208 1,474,219 101,792,957 --- 5,846,153 3,483,643 375,073,599 --- 1,464,984 14,998,278 29,148,623 36,034,431 (33,008,953) (14,495,075) (192,933,754) (30,989,946) 10,986,803 5,584,562 344,202,525 5,044,485 15,478,087 5,584,562 356,877,391 5,044,485 $ 17,607,386 $ 15,310,729 $ 421,645,918 $ 15,298,781 $ 499,494 $ 764,916 $ 3,025,401 $ 820,763 (continued) 37
CITY OF DES MOINES, IOWA STATEMENT OF NET POSITION (CONTINUED) PROPRIETARY FUNDS June 30, 2016 LIABILITIES BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Liabilities: Current liabilities: Accounts payable $ 394,489 $ 103,474 $ 162,646 Contracts payable 599,579 410,629 189,111 Accrued wages payable 72,586 147,820 248,540 Accrued employee benefits 102,217 270,529 438,496 Due to other funds 1,607,998 --- --- Tenant security deposits --- --- --- Notes payable --- 168,841 --- Accrued interest payable 12,708 35,764 22,788 Revenue bonds payable --- 2,646,417 2,814,167 General obligation bonds payable 1,855,000 100,000 470,000 Unearned revenue --- --- --- Total 4,644,577 3,883,474 4,345,748 Current liabilities payable from restricted assets: Revenue bonds payable --- 240,583 255,833 Accrued interest payable --- 39,685 68,963 Total current liabilities payable from restricted assets Total current liabilities --- 280,268 324,796 4,644,577 4,163,742 4,670,544 Noncurrent liabilities: Accrued employee benefits 163,575 432,921 701,714 Other postemployment benefits 72,858 229,736 211,069 Net pension liability 501,652 1,894,658 2,968,568 Advance from other funds 2,727,421 --- --- Notes payable --- 262,402 --- Revenue bonds payable, net --- 13,146,251 19,990,642 General obligation bonds payable, net 5,923,570 12,141,210 9,027,497 Other liabilities --- --- --- Total noncurrent liabilities 9,389,076 28,107,178 32,899,490 Total liabilities 14,033,653 32,270,920 37,570,034 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows 131,217 494,254 787,620 NET POSITION Net investment in capital assets 45,790,145 116,126,058 104,246,501 Restricted: Public housing program --- --- --- Debt retirement --- 1,786,348 3,232,298 Unrestricted 1,286,932 19,602,859 13,129,955 Total net position $ 47,077,077 $ 137,515,265 $ 120,608,754 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 $ 303,738 $ 217,447 $ 1,181,794 $ 1,306,769 --- --- 1,199,319 --- 97,153 158,879 724,978 178,231 227,402 250,426 1,289,070 1,927,154 81,214 --- 1,689,212 4,775 110,457 --- 110,457 --- --- --- 168,841 --- --- --- 71,260 --- --- --- 5,460,584 --- --- --- 2,425,000 --- 11,684 --- 11,684 14,497 831,648 626,752 14,332,199 3,431,426 --- --- 496,416 --- --- --- 108,648 --- --- --- 605,064 --- 831,648 626,752 14,937,263 3,431,426 155,680 400,750 1,854,640 305,385 175,937 206,480 896,080 228,643 1,614,806 2,356,890 9,336,574 2,544,870 --- 3,039,430 5,766,851 --- --- --- 262,402 --- --- --- 33,136,893 --- --- --- 27,092,277 --- 222,979 --- 222,979 --- 2,169,402 6,003,550 78,568,696 3,078,898 3,001,050 6,630,302 93,505,959 6,510,324 431,035 622,925 2,467,051 673,459 10,986,803 5,584,562 282,734,069 5,044,485 4,491,284 --- 4,491,284 --- --- --- 5,018,646 --- (803,292) 3,237,856 36,454,310 3,891,276 $ 14,674,795 $ 8,822,418 $ 328,698,309 $ 8,935,761 39
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, 2016 Net changes in net position in enterprise funds $ 328,698,309 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 (9,009,579) Change in net position of business-type activities $ 319,688,730 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, 2016 BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS PARKING FACILITIES SEWER STORMWATER SYSTEM SYSTEM UTILITY Operating revenues: Charges for sales and services $ 10,632,984 $ 40,206,960 $ 21,859,585 Operating grants --- --- --- Miscellaneous --- 20,869 281,653 Total operating revenues 10,632,984 40,227,829 22,141,238 Operating expenses: Personal services 1,254,676 4,424,228 5,963,689 Contractual services 6,973,528 18,294,002 2,627,318 Commodities 266,092 329,386 269,694 Depreciation 3,686,632 4,066,215 3,209,388 Other charges 153,068 5,125,870 2,931,932 Total operating expenses 12,333,996 32,239,701 15,002,021 Operating income (loss) (1,701,012) 7,988,128 7,139,217 Non-operating revenues (expenses): Gain/(loss) on disposal of capital assets 599,361 10,971 10,358 Investment earnings 14,479 477,866 255,279 Proceeds from damage claims 1,428 1,512 1,371 Interest expense and fiscal charges (135,963) (843,664) (1,008,772) Total nonoperating revenues (expenses) 479,305 (353,315) (741,764) Income (loss) before capital grants, contributions and transfers (1,221,707) 7,634,813 6,397,453 Capital grants and contributions --- 340,943 6,003,845 Transfers in 3,414,000 662,744 --- Transfers out --- (50,000) (1,608,745) Change in net position 2,192,293 8,588,500 10,792,553 Total net position - beginning 44,884,784 128,926,765 109,816,201 Total net position - ending $ 47,077,077 $ 137,515,265 $ 120,608,754 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 $ 1,441,062 $ 12,957,148 $ 87,097,739 $ 40,881,415 17,821,648 --- 17,821,648 --- --- 75,985 378,507 2,394 19,262,710 13,033,133 105,297,894 40,883,809 3,493,113 4,856,818 19,992,524 5,125,456 16,126,163 5,341,133 49,362,144 30,092,301 --- 292,201 1,157,373 5,262,982 1,505,542 931,863 13,399,640 1,408,922 --- 757,089 8,967,959 636,229 21,124,818 12,179,104 92,879,640 42,525,890 (1,862,108) 854,029 12,418,254 (1,642,081) 70,635 (61,046) 630,279 80,515 5,367 26,512 779,503 --- --- 60,000 64,311 7,821 --- (9,086) (1,997,485) --- 76,002 16,380 (523,392) 88,336 (1,786,106) 870,409 11,894,862 (1,553,745) 615,879 3,000 6,963,667 --- --- --- 4,076,744 --- --- --- (1,658,745) --- (1,170,227) 873,409 21,276,528 (1,553,745) 15,845,022 7,949,009 307,421,781 10,489,506 $ 14,674,795 $ 8,822,418 $ 328,698,309 $ 8,935,761 43
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, 2016 Net changes in net position in enterprise funds $ 21,276,528 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 (2,467,913) Change in net position of business-type activities $ 18,808,615 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, 2016 BUSINESS-TYPE ACTIVITIES - CASH FLOWS FROM OPERATING ACTIVITIES SEWER STORMWATER PARKING SYSTEM UTILITY Receipts from customers and users $ 10,656,474 $ 40,415,651 $ 20,371,204 Receipts from interfund services provided --- --- --- Payments to suppliers (6,933,357) (23,838,277) (5,862,699) Payments to employees (1,200,960) (4,388,935) (5,894,853) Receipts from miscellaneous revenue --- 20,869 281,653 Proceeds from damage claims 1,428 1,512 1,371 Payments for interfund services used --- --- --- Net cash provided (used) by operating activities 2,523,585 12,210,820 8,896,676 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Proceeds from interfund accounts 847,915 --- --- Payments to interfund accounts (1,625,767) (1,416) (1,159) Transfers In 3,414,000 662,744 - Transfers Out --- (50,000) (1,608,745) Intergovernmental receipts --- --- --- Net cash provided (used) by capital and related financing activities 2,636,148 611,328 (1,609,904) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from intergovernmental and capital grants --- 9,062 5,726,966 Interest paid on capital debt (214,414) (1,370,275) (1,307,939) Principal paid on long-term debt and leases (1,825,000) (2,472,130) (3,435,000) Proceeds from sale of capital assets 4,246,986 2,843,708 3,719,430 Acquisition and construction of capital assets (8,377,557) (6,809,946) (7,505,689) Net cash (used) by capital and related financing activities (6,169,985) (7,799,581) (2,802,232) 46
MUNICIPAL OTHER GOVERNMENTAL ACTIVITIES HOUSING ENTERPRISE INTERNAL AGENCY FUNDS TOTALS SERVICE FUNDS $ 19,526,688 $ 12,857,979 $ 103,827,996 $ 30,370,940 --- --- --- 10,604,238 (16,138,132) (6,270,672) (59,043,137) (35,476,963) (3,501,002) (4,957,425) (19,943,175) (5,065,790) --- --- 302,522 --- --- 60,000 64,311 7,821 --- --- --- (192,244) (112,446) 1,689,882 25,208,517 248,002 --- --- 847,915 --- --- (320,251) (1,948,593) 28,429 --- --- 4,076,744 --- --- --- (1,658,745) --- --- --- --- (31) - (320,251) 1,317,321 28,398 615,879 3,000 6,354,907 --- --- (9,086) (2,901,714) --- --- - (7,732,130) --- 149,403 37,965 10,997,492 94,120 (1,926,393) (1,073,540) (25,693,125) (3,169,189) (1,161,111) (1,041,661) (18,974,570) (3,075,069) (continued) 47
CITY OF DES MOINES, IOWA STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2016 BUSINESS-TYPE ACTIVITIES - CASH FLOWS FROM INVESTING ACTIVITIES SEWER STORMWATER PARKING SYSTEM UTILITY Proceeds from sales and maturities of investments --- $ 14,183,451 $ 9,895,927 Purchase of investments --- (14,468,451) (9,729,916) Interest and dividends received 14,479 478,315 210,375 Net cash provided (used) by investing activities 14,479 193,315 376,386 Net increase (decrease) in cash and cash equivalents (995,773) 5,215,882 4,860,926 Cash and cash equivalents, beginning of year 6,854,954 18,698,516 14,563,550 Cash and cash equivalents, end of year $ 5,859,181 $ 23,914,398 $ 19,424,476 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (1,701,012) $ 7,988,128 $ 7,139,217 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 3,686,632 4,066,215 3,209,388 Proceeds from damage claims 1,428 1,512 1,371 (Increase) decrease in accounts and taxes receivable 23,436 174,069 107,672 (Increase) decrease in special assessments receivable --- (26,050) (2,799) (Increase) decrease in due from other governmental units 54 60,672 (1,593,254) Decrease in inventories --- --- --- (Increase) decrease in prepaid items --- 2,404 1,821 (Increase) decrease in accounts and contracts payable 459,331 (91,423) (35,574) Increase (decrease) in accrued wages payable 36,705 58,076 87,459 Increase in accrued employee benefits and other postemployment benefits 45,841 74,721 158,632 Increase (decrease) in due to other governmental units --- --- --- (Decrease) in other liabilities, self-sufficiency participation and tenant security deposits --- --- --- Increase (decrease) in unearned revenue --- --- --- (Increase) decrease in deferred outflows (79,537) (289,901) (469,947) Increase in deferred inflows (39,267) (148,987) (226,652) Decrease in net pension liability 89,974 341,384 519,342 Total adjustments 4,224,597 4,222,692 1,757,459 Net cash provided (used) by operating activities $ 2,523,585 $ 12,210,820 $ 8,896,676 Schedule of noncash investing and financing activities: Increase (decrease) in fair value of investments 1,349 (720) (27,319) Schedule of noncash capital and related financing activities: Gain (loss) on disposal of capital assets 599,361 10,971 10,358 Capitalized Interest --- 148,793 180,601 Payments on contracts payable for acquisition of capital assets --- 138,785 48,676 Capital assets contributed --- 331,881 276,878 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 $ --- $ --- $ 24,079,378 $ --- --- --- (24,198,367) --- 5,367 26,512 735,048 --- 5,367 26,512 616,059 --- (1,268,190) 354,482 8,167,327 (2,798,669) 7,462,571 8,934,398 56,513,989 12,825,678 $ 6,194,381 $ 9,288,880 $ 64,681,316 $ 10,027,009 $ (1,862,108) $ 854,029 $ 12,418,254 $ (1,642,081) 1,505,542 931,863 13,399,640 1,408,922 --- 60,000 64,311 7,821 2,381 (148,085) 159,473 96,965 --- (31,282) (60,131) --- 202,993 4,213 (1,325,322) --- --- --- --- (36,726) 43 (200) 4,068 16,345 (12,012) 119,951 440,273 342,686 26,108 37,705 246,053 57,905 35,021 (10,599) 303,616 135,719 61,303 --- 61,303 --- (2,385) --- (2,385) --- (314) --- (314) (5,596) (226,511) (361,686) (1,427,582) (386,030) (121,960) (181,184) (718,050) (195,197) 279,453 415,157 1,645,310 447,269 1,749,662 835,853 12,790,263 1,890,083 $ (112,446) $ 1,689,882 $ 25,208,517 $ 248,002 --- (61,046) (87,736) --- --- --- 620,690 80,515 --- --- 329,394 --- --- --- 187,461 --- --- --- 608,759 --- 49