CITY OF DES MOINES, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2017 ASSETS DEBT TAX GENERAL SERVICE INCREMENT Cash and investments $ 28,910,771 $ 19,469,062 $ 2,460,350 Taxes receivable 58,841,748 30,462,981 30,496,699 Accounts receivable 4,324,723 --- --- Loans receivable, net of allowance for doubtful accounts --- --- --- Accrued interest receivable 204,263 --- --- Due from other funds 411,060 --- --- Due from other governmental units 1,670,381 135,118 --- Advance to other funds 5,294,102 --- --- Special assessment receivables 23,007 --- --- Inventory --- --- --- Prepaid items 1,146,718 --- 471,788 Total assets $ 100,826,773 $ 50,067,161 $ 33,428,837 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $ 2,566,904 $ 417 $ 82,520 Contracts payable 2,500 --- --- Accrued wages payable 5,111,826 --- --- Accrued employee benefits --- --- --- Due to other funds 1,515 --- --- Due to other governmental units --- --- --- Unearned revenue 2,793 --- --- Good faith, security deposits 857,769 --- --- Total liabilities 8,543,307 417 82,520 Deferred inflows of resources: Unavailable revenue - property taxes 56,523,319 30,157,569 30,151,582 Unavailable revenue - intergovernmental --- --- --- Unavailable revenue - special assessments --- --- --- Total deferred inflows of resources 56,523,319 30,157,569 30,151,582 Fund balances: Nonspendable 6,440,820 --- 471,788 Restricted 143,875 19,909,175 2,722,947 Committed 1,400,000 --- --- Unassigned 27,775,452 --- --- Total fund balances 35,760,147 19,909,175 3,194,735 Total liabilities, deferred inflows of resources and fund balances (deficits) $ 100,826,773 $ 50,067,161 $ 33,428,837 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 $ --- $ --- $ 42,787,234 $ 17,393,606 $ 111,021,023 22,030,571 --- --- 14,429,801 156,261,800 --- 7,068,572 130,291 374,065 11,897,651 --- --- --- 2,644,108 2,644,108 --- --- --- 55,450 259,713 --- --- 2,272,262 40,616 2,723,938 --- --- 4,575,489 9,894,814 16,275,802 --- --- --- --- 5,294,102 --- --- 2,640,215 29,207 2,692,429 --- --- --- 64,590 64,590 --- --- 41,385 214,847 1,874,738 $ 22,030,571 $ 7,068,572 $ 52,446,876 $ 45,141,104 $ 311,009,894 $ --- $ --- $ 394,648 $ 2,199,367 $ 5,243,856 --- --- 6,203,168 --- 6,205,668 --- --- 174,770 835,979 6,122,575 --- --- --- 851,639 851,639 62,400 695,518 --- 1,534,791 2,294,224 --- --- --- 120,000 120,000 --- --- 72,935 --- 75,728 --- --- --- 152,056 1,009,825 62,400 695,518 6,845,521 5,693,832 21,923,515 21,830,116 --- --- 14,290,004 152,952,590 --- --- 844,492 1,828,152 2,672,644 --- --- 2,640,215 --- 2,640,215 21,830,116 --- 3,484,707 16,118,156 158,265,449 --- --- 41,385 4,110,436 11,064,429 138,055 6,373,054 879,835 16,063,108 46,230,049 --- --- 41,195,428 3,762,333 46,357,761 --- --- --- (606,761) 27,168,691 138,055 6,373,054 42,116,648 23,329,116 130,820,930 $ 22,030,571 $ 7,068,572 $ 52,446,876 $ 45,141,104 $ 311,009,894 29
CITY OF DES MOINES, IOWA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2017 Total governmental fund balances $ 130,820,930 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. 1,012,886,021 5,312,859 Long-term receivables are not available to pay for current-period expenditures, and therefore, are not reported in the funds; Due from component unit. 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. 26,890,402 Capital assets, net of accumulated depreciation 4,541,820 Other current assets 11,877,141 Deferred outflow of resources, pension related items 1,263,850 Other current liabilities (3,731,830) Net pension liability - IPERS (3,185,503) Other noncurrent liabilities (578,655) Deferred inflow of resources, pension related items (520,026) 9,666,797 Internal service funds allocated to business-type activities 11,372,228 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: Deferred outflows of resources - IPERS 17,698,548 Deferred outflows of resources - MFPRSI 57,231,524 Deferred inflows of resources - IPERS (7,182,429) Deferred inflows of resources - MFPRSI (17,288,478) 50,459,165 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 (18,811,254) Accrued employee benefits (32,227,607) Other accrued post retirement benefits (7,251,471) Accrued interest payable (1,395,908) Notes payable (2,442,527) Section 108 loans payable (8,391,000) General obligation bonds payable (378,905,000) Other liabilities, claims and judgments (1,890,000) Revenue bonds payable, net of discount of $174,598 (26,890,402) Net pension liability - IPERS (44,555,255) Net pension liability - MFPRSI (119,659,747) (642,420,171) Net position of governmental activities $ 604,988,231 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, 2017 DEBT TAX GENERAL SERVICE INCREMENT Revenues: Taxes $ 61,350,447 $ 30,149,073 $ 27,869,226 Franchise fees 13,096,572 --- --- Licenses and permits 5,131,906 --- --- Fines and forfeitures 6,829,759 --- --- Charges for sales and services 15,976,326 --- --- Use of money and property 1,968,720 118,117 511,958 Miscellaneous 16,487,612 275,633 3,060 Intergovernmental 5,118,809 4,392,752 --- Total revenue 125,960,151 34,935,575 28,384,244 Expenditures: Current: Public safety 102,599,987 --- --- Public works 8,892,020 --- Health and social services 677,847 --- --- Culture and recreation 18,862,195 --- --- Community and economic development 5,446,133 --- 10,305,832 General government 19,575,356 700,740 --- Capital outlay 163,604 --- --- Debt service: Principal retirement --- 48,865,397 216,500 Interest and fiscal charges --- 16,550,261 435,766 Total expenditures 156,217,142 66,116,398 10,958,098 Excess (deficiency) of revenues over expenditures (30,256,991) (31,180,823) 17,426,146 Other financing sources (uses): Transfers in 34,636,952 14,696,361 --- General obligation bonds issued --- 72,370,000 --- Premium on bond issue --- 4,163,796 --- Transfers out (5,820,286) (44,282,100) (16,654,946) Proceeds from damage claims 25,351 --- --- Proceeds from capital asset sale 401,805 --- --- Total other financing sources (uses) 29,243,822 46,948,057 (16,654,946) Net change in fund balances (1,013,169) 15,767,234 771,200 Fund balances, beginning of year 36,773,316 4,141,941 2,423,535 Fund balances, end of year $ 35,760,147 $ 19,909,175 $ 3,194,735 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 $ 20,227,977 $ --- $ --- $ 13,597,370 $ 153,194,093 --- 6,022,103 --- --- 19,118,675 --- --- --- 126,650 5,258,556 --- --- --- 1,950 6,831,709 --- --- 97,372 2,366,470 18,440,168 --- 2,192 5,094 340,554 2,946,635 --- 5,722,523 1,642,705 2,418,352 26,549,885 886,979 --- 14,636,232 44,647,177 69,681,949 21,114,956 11,746,818 16,381,403 63,498,523 302,021,670 --- --- 1,625,287 4,912,855 109,138,129 --- --- 1,282,397 23,659,038 33,833,455 --- --- --- 8,399,169 9,077,016 --- --- 768,077 766,476 20,396,748 --- --- 2,365,613 702,234 18,819,812 --- --- 270,587 4,632,242 25,178,925 --- --- 50,305,506 1,102,251 51,571,361 --- 4,760,000 --- --- 53,841,897 --- 1,050,535 --- --- 18,036,562 --- 5,810,535 56,617,467 44,174,265 339,893,905 21,114,956 5,936,283 (40,236,064) 19,324,258 (37,872,235) --- --- 50,899,467 3,784,463 104,017,243 --- --- --- --- 72,370,000 --- --- --- --- 4,163,796 (20,979,112) --- (545,654) (16,161,097) (104,443,195) --- --- 160,464 121,406 307,221 --- --- 668,117 13,470 1,083,392 (20,979,112) --- 51,182,394 (12,241,758) 77,498,457 135,844 5,936,283 10,946,330 7,082,500 39,626,222 2,211 436,771 31,170,318 16,246,616 91,194,708 $ 138,055 $ 6,373,054 $ 42,116,648 $ 23,329,116 $ 130,820,930 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, 2017 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances: Total governmental funds $ 39,626,222 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 51,571,361 Depreciation (41,403,166) 10,168,195 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 (1,083,392) 360,043 1,208,603 485,254 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 (1,705,000) Amortization of discount on receivable 17,100 (1,687,900) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (6,943,247) 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 long-term debt and related items. Amortization of premium 3,402,176 Long-term debt issued, including premiums of $4,163,796 (76,533,796) Repayment of long-term debt principal 53,841,897 Interest 2,132 Amortization of discount on revenue bonds (17,100) (19,304,691) 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 (251,715) Other accrued post retirement benefits (579,519) Claims and judgments (1,635,000) Pension expense - IPERS (30,022) Pension expense - MFPRSI 12,491,505 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 9,995,249 731,036 2,362,649 Change in net position of governmental activities $ 35,432,767 The notes to the financial statements are an integral part of this statement. 35