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01/11/2016
Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-022 RESOLUTION CONFIRMING APPROVAL OF SPECIFICATIONS, BID DOCUMENT, FORM OF CONTRACT, ETC. IN CONJUNCTION WITH THE PURCHASE OF TWO (2) 2016 SINGLE AXLE SNOW CONTROL TRUCKS. WHEREAS, the City Council of the City of Waterloo, Iowa, heretofore instructed the Public Works Director of said city to prepare proposed specifications, bid document, form of contract, etc., in conjunction with the purchase of two (2) 2016 single axle snow control trucks, and WHEREAS, said Public Works Director did file said preliminary specifications, bid document, form of contract, etc., in conjunction with the purchase of two (2) 2016 single axle snow control trucks, and WHEREAS, a public hearing, upon notice was held on January 11, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that said proposed specifications, bid document, form of contract, etc., in conjunction with the Riverfront Stadium Video Display System, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: zzy Sc ares, CMC City Cl-rk Quentin Hart, Mayor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-023 RESOLUTION AUTHORIZING TO PROCEED WITH THE PURCHASE OF TWO (2) 2016 SINGLE AXLE SNOW CONTROL TRUCKS. WHEREAS, by Resolution No. 2016-022, specifications, bid documents, form of contract, etc., in conjunction with the purchase of two (2) 2016 single axle snow control trucks, have been approved and adopted by this Council after the public hearing on January 11, 2016 as prescribed by statute. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that it is deemed advisable and necessary and it is so ordered on motion by this Council that the said project proceed in accordance with said specifications. PASSED AND ADOPTED this 11th day of January 2016. C-)1-491, 014,t-- Quentin Hart, Mayor ATTEST: Suzy Sch:res, CMC City Cle k Bid Tab December 31, 2015 Purchase of (2) 2016 Single Axle Snow Control Trucks Estimate: $270,000. Bid Security Not Required Bidder Bid Security Bid Amount TriState Truck Equipment Dubuque, IA N/A No bid included Provided literature Thompson Truck and Trailer Waterloo, IA N/A $276,008.00 Truck Country of Cedar Rapids Cedar Rapids, IA N/A $259,818.00 (Truck Country w/TriState) Truck Country of Cedar Rapids Cedar Rapids, IA N/A $261,904.00 (Truck Country w/Henderson) Harrison Truck Centers Elk Run Heights, IA N/A $271,470.00 Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-024 RESOLUTION AWARDING CONTRACT TO TRUCK COUNTRY OF CEDAR RAPIDS, IOWA, IN THE AMOUNT OF $261,904.00, FOR THE PURCHASE OF TWO (2) 2016 SINGLE AXLE SNOW CONTROL TRUCKS. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the contract dated January 11, 2016, between Truck Country of Cedar Rapids, Iowa and the City of Waterloo, Iowa, in the amount of $261,904.00, for the purchase of two (2) 2016 single axle snow control trucks, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: Quentin Hart, Mayor strz y 5C City Cl ares, CMC rk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-025 RESOLUTION CONFIRMING APPROVAL OF SPECIFICATIONS, BID DOCUMENT, FORM OF CONTRACT, ETC. IN CONJUNCTION WITH THE PURCHASE OF REPLACEMENT SALT SPREADERS FOR THE STREET DEPARTMENT. WHEREAS, the City Council of the City of Waterloo, Iowa, heretofore instructed the Public Works Director of said city to prepare proposed specifications, bid document, form of contract, etc., in conjunction with the purchase of replacement salt spreaders for the Street Department, and WHEREAS, said Public Works Director did file said preliminary specifications, bid document, form of contract, etc., in conjunction with the purchase of replacement salt spreaders for the Street Department, and WHEREAS, a public hearing, upon notice was held on January 11, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that said proposed specifications, bid document, form of contract, etc., in conjunction with the purchase of replacement salt spreaders for the Street Department, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: Quentin Hart, Mayor h e Suzy S. s, CMC City C erk Bid Tab January 7, 2016 Purchase of Replacement Salt Spreaders to Support Snow and Ice Control Operations in the Street Department Estimate: $77,000. Bid Security Not Required Bidder Bid Security Bid Amount Tri-State Truck 10' $26,912.00 Equipment N/A 13' $33,556.00 Dubuque, IA (HiWay) Tri-State Truck 10' $27,196.00 Equipment N/A 13' $31,840.00 Dubuque, IA (Swenson's) Henderson Truck 10' $27,590.00 Equipment Manchester, IA N/A 13' $32,862.00 Bid Tab January 7, 2016 Purchase of Replacement Salt Spreaders to Support Snow and Ice Control Operations in the Street Department Estimate: $77,000. Bid Security Not Required Bidder Bid Security Bid Amount Tri-State Truck Equipment Dubuque, IAPt 10' N/A 1 3' a C,.i q i , 3 3 Ca' Tri-State Truck Equipment Dubuque, IA I D` N/A St '^bcm' i3( `w oZ 7 ` t 9 Cv g q Q "" Henderson Truck Equipment Manchester, IA13t Jo' N/A a 7i 510 3'A i ��do Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-026 RESOLUTION AUTHORIZING TO PROCEED WITH THE PURCHASE OF REPLACEMENT SALT SPREADERS FOR THE STREET DEPARTMENT. WHEREAS, by Resolution No. 2016-025, specifications, bid documents, form of contract, etc., in conjunction with the purchase of replacement salt spreaders for the Street Department, have been approved and adopted by this Council after the public hearing on January 11, 2016 as prescribed by statute. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that it is deemed advisable and necessary and it is so ordered on motion by this Council that the said project proceed in accordance with said specifications. PASSED AND ADOPTED this 11th day of January 2016. Quentin Hart, Mayor ATTEST: uzy S ares, CMC City Cl-rk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-028 RESOLUTION APPROVING THE APPLICATION FOR A CONVENTION AND VISITORS BUREAU MINI GRANT IN THE AMOUNT OF $5,000 FOR ADDITIONAL FUNDING FOR A NEW VIDEO SCOREBOARD AT RIVERFRONT BASEBALL STADIUM. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the grant application dated January 11, 2016, for a hotel/motel tax grant for additional funding for a new video scoreboard at Riverfront Baseball Stadium, in the amount of $5,000.00, by and between the Waterloo Convention and Visitors Bureau and the City of Waterloo, Iowa, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. ��9iYl�L. Quentin Hart, M yor ATTEST: zy chares, CMC City Ilerk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-029 RESOLUTION APPROVING SUPPLEMENTAL AGREEMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH RECREATION ENGINEERING & PLANNING, OF BOULDER, COLORADO, IN THE AMOUNT OF $245,865.00, PAID FOR WITH WDC GAMING FUNDS, FOR PRELIMINARY ENGINEERING AND DESIGN IN CONJUNCTION WITH THE CONSTRUCTION OF A WHITEWATER COURSE ON THE CEDAR RIVER IN DOWNTOWN WATERLOO. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Supplemental Agreement No. 1 to the Professional Service Agreement with Recreation Engineering & Planning, of Boulder, Colorado, in the maximum amount payable of $245,865.00 in conjunction with the construction of a whitewater course on the Cedar River in downtown Waterloo is hereby approved, and the Mayor and City Clerk are authorized to execute the same on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 11th day of January 2016. ak.9--InASt, CIC/S----- Quentin Hart, Mayor ATTEST: Suzy Shares, CMC City Clerk Prepared by Kelley Felchle, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. RESOLUTION NO. 2016-030 RESOLUTION APPROVING AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN BREAD TO BEER, LLC AND CITY OF WATERLOO FOR THE REDEVELOPMENT OF 301-325 COMMERCIAL STREET (FORMER WONDER BREAD BAKERY), ADOPTED SEPTEMBER 8, 2015, TO REMOVE ASBESTOS FROM THE ROOF FOR AN ESTIMATED TOTAL COST OF $3,000 AND AUTHORIZE MAYOR AND CITY CLERK TO EXECUTE SAID DOCUMENT BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Amendment to the Development Agreement dated January 11, 2016, between Bread to Beer, LLC and the City of Waterloo, Iowa, for the redevelopment of 301-325 Commercial Street (former Wonder Bread Bakery) originally adopted September 8, 2015, to remove asbestos from the roof of said site, for an estimated total cost of $3,000, is hereby approved and the Mayor and City Clerk are authorized and directed to execute the same on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 11th day of January, 2016. Quentin Hart, Mayor ATTEST: uzy :c ares, CMC City lerk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-031 RESOLUTION APPROVING PROFESSIONAL SERVICES AGREEMENT WITH ROBINSON ENGINEERING CO., OF INDEPENDENCE, IOWA, IN AN AMOUNT NOT TO EXCEED $21,770.00 FOR ENGINEERING DESIGN AND CONSTRUCTION RELATED SERVICES FOR THE ENVIRONMENTALLY BENEFICIAL ALLEY PERMEABLE PAVER PROJECT, AND AUTHORIZE MAYOR AND CITY CLERK TO EXECUTE SAID DOCUMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Professional Services Agreement dated January 11, 2016, between Robinson Engineering Co., and the City of Waterloo, Iowa, in an amount not to exceed $21,770.00, for engineering design and construction related services for the Environmentally Beneficial Alley Permeable Paver Project, is hereby approved and the Mayor and City Clerk are authorized and directed to execute the same on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 11th day of January 2016. (121A-CVISka.01--r4 Quentin Hart, Mayor ATTEST: Suzy 'c ares, CMC City Ilerk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-032 RESOLUTION APPROVING THIRD AMENDMENT AND RESTATED DEVELOPMENT AGREEMENT WITH CEDAR VALLEY TECHWORKS, INC. AND FDP WTC, LLC, AUTHORIZING MAYOR TO ACCEPT ADDITIONAL NON -SUBSTANTIVE CHANGES TO THE DOCUMENT UPON ADVICE OF COUNSEL AND STAFF AND AUTHORIZE MAYOR AND CITY CLERK TO EXECUTE SAID DOCUMENT. WHEREAS the original development agreement with Cedar Valley Techworks, Inc., was approved on January 30, 2012, amended on October 13, 2013 and a second amendment was approved on June 22, 2015. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Third Amendment and Restated Development Agreement dated January 11, 2016, between Cedar Valley Techworks, Inc., FDP WTC, LLC and the City of Waterloo, Iowa for the issuance of bonds and construction of the hotel and training center building at the Tech II site, is hereby approved and the Mayor and City Clerk are authorized to execute the same on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: Suzy c ares, CMC City lerk Quentin Hart, Mayor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-033 RESOLUTION APPROVING PRECONSTRUCTION AGREEMENT WITH IOWA DEPARTMENT OF TRANSPORTATION AND DIRECTING EXECUTION OF SAID AGREEMENT BY MAYOR. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Preconstruction Agreement dated January 11, 2016, for primary road improvements in conjunction with 2016 Highway 218 Asphalt Resurfacing Project (from Mitchell Avenue to 18th St./Williston Avenue), be and the same is hereby approved, and the Mayor and City Clerk authorized to execute the same in behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 11th day of January, 2016. Quentin Hart, Mayor ATTEST: Suzy Shares, CMC City C erk Prepared by Kelley Felchle, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. RESOLUTION NO. 2016-034 RESOLUTION APPROVING APPLICATION FOR R.I.S.E. FUNDING FOR IMMEDIATE OPPORTUNITY IN CONJUNCTION WITH THE TITAN TRAIL EXTENSION PROJECT, ESTIMATED AT $598,582, AND APPROVE THE MEMORANDUM OF UNDERSTANDING WITH INRCOG FOR THE WRITING, PREPARATION, AND SUBMITTAL OF SAID GRANT; AND AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE ANY NECESSARY DOCUMENTS. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the application for R.I.S.E. funding for immediate opportunity, dated January 11, 2016, in conjunction with the Titan Trail extension, estimated at $598,582, is hereby approved. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Memorandum of Understanding, dated January 11, 2016, for the writing, preparation, and submittal of the aforementioned grant, in an amount not to exceed $2,000 if the application is successful, is hereby approved and the Mayor and City Clerk are authorized and directed to execute said documents. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Suzy :E441g7 CMC City C erk I Quentin Hart, Mayor Prepared by Kelley Felchle, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. RESOLUTION NO. 2016-035 RESOLUTION APPROVING THE GRANT APPLICATION TO THE KRESGE FOUNDATION FOR NEIGHBORHOOD REVITALIZATION IN THE AMOUNT OF $75,000 FOR REVITALIZATION IN THE DOWNTOWN AREA. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the grant application dated January 11, 2016, to the Kresge Foundation for Neighborhood Revitalization, in the amount of $75,000, for revitalization in the downtown area, is hereby approved. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Suzy Sc City Cl ares, CMC rk Quentin Hart, Mayor Prepared by Kelley Felchle, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. ORDINANCE NO. 5327 AMENDING ORDINANCE NO. 5079, AS AMENDED, CITY OF WATERLOO ZONING ORDINANCE, BY AMENDING THE OFFICIAL ZONING MAP REFERRED TO IN SECTION 10-4-4, APPROVING A SITE PLAN AMENDMENT TO THE "R-3, R -P" PLANNED MULTIPLE RESIDENCE DISTRICT FOR THE PURPOSE OF CHANGING THE DESIGNATED US OF LOT C-1 THROUGH C-3 AND C-5 THROUGH C-6 OF SOUTHLAND PARK THIRD ADDITION FROM COMMERCIAL TO RESIDENTIAL TO ALLOW FOR THE CONSTRUCTION OF SINGLE FAMILY HOMES AND/OR DUPLEXES, LOCATED EAST OF 2950 SOUTHLAND DRIVE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA AS FOLLOWS: Section 1. That the Official Zoning Map referred to in Section 10-4-4 of Ordinance No. 5079 as amended, City of Waterloo Zoning Ordinance, be amended to approve a site plan amendment to the "R-3, R -P" Planned Multiple Residence District, to allow for the construction of single family homes and/or duplexes, located east of 2950 Southland Drive, legally described as follows: and Southland Park Third Addition lots C-1, C-2, C-3, C-5, C-6; subject to the following conditions: 1. That sidewalks be extended along all street frontages. 2. That a drainage, filling, and grading plan be submitted prior to a permit being issued for any homes. 3. That effective visual screening be placed along the westerly property line of lot C-3 adjoining the existing professional office located at 2950 Southland Drive. Section 2. That the City Clerk be, and is hereby directed to file a certified copy of this Ordinance with the Recorder of Black Hawk County, Iowa. INTRODUCED: PASSED 1st CONSIDERATION: PASSED 2nd CONSIDERATION: PASSED 3rd CONSIDERATION: January 11, 2016 January 11, 2016 January 11, 2016 January 11, 2016 PASSED AND ADOPTED this 11th day of January 2016. Quentin Hart, Mayor Ordinance No. 5327 Page 2 ATTEST: Suzy Schres, CMC City Clerk CERTIFICATE I, Suzy Schares, City Clerk of the City of Waterloo, Iowa, do hereby certify that the preceding is a true and complete copy of Ordinance No. 5327, as passed and adopted by the Council of the City of Waterloo, Iowa, on the 11th day of January 2016. Witnegs my hand and seal of office this llth day of January 2016. SEAL Suzy Shares, CMC City C erk Prepared by Kelley Felchle, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. ORDINANCE NO. 5328 AN ORDINANCE AMENDING THE 2008 TRAFFIC CODE BY AMENDING SECTION 543 THRU STREETS BY ADDING SUBSECTION 134(A) PINNACLE PLACE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA AS FOLLOWS: That Subsection 134 (a) Pinnacle Place is hereby added to Section 543 Thru Streets, of the 2008 Traffic Code, as follows: 134(a) Pinnacle Place West Fourth Street to Turnberry Drive. INTRODUCED: PASSED 1st CONSIDERATION: PASSED 2nd CONSIDERATION: PASSED 3rd CONSIDERATION: PASSED AND ADOPTED this 11th ATTEST: Suzy S. ares, CMC City C erk January 11, 2016 January 11, 2016 January 11, 2016 January 11, 2016 day of January 2016. Quentin Hart, ayor David Dreyer To: Subject: Letter to the editor Loose Lips Are those who want this afraid the people they represent will find out they are voting the opposite of the people's opmmn7k4sCo/espeaksofdosedsessioncausingproblenosforthetaxpayersuchasrea|estateacqubit/onsDon't excess property purchases effect taxes espedaUyvvhenwebo�andspend 1.2 million and seUhfor a DoUaras'vveU the$100,000.00 us council menlbeoshould bring mnatteothey disagree with tuthe co i|� b� one wehear about /tthe decidonhas already been made and acitizenu»c a ekowe«e'thePnob/enn|seebby�hetinne |a»«a|s«statesthink)onecan�e�pubUrnycommentbecomest»|at*/The/owaopennneehn� onlythe(Iinformation by a�N»8,th}sistruea�acosttwenty'f�vecentsacopKhovvever nneaokin8knovvstheunswe,notaUnfthetaxpayeo.VVhcn|ar0epurchasesarennadeaffectinQOurtaxesat some time we should know. Transparency is missing here! DATE: CITY OF WATERLOO, IOWA CITY HALL • 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4301 Fax (319) 291-4286 January 8, 2016 T13:..... Department Heads Department Bookkeeping Staff FROM: Mayor Hart COO— RE: FY 2017 Budget Preparation Over the last two weeks I have had the opportunity to meet with all City of Waterloo department heads. In these meetings I noticed one consistent theme: You are passionate and care deeply about the City of Waterloo. We know that change is inevitable because every two years or so you have a new mayor and a couple new council members as well. With this said, one of our first priorities will be working together to prepare a FY 2017 budget. You all provide vital information for Council and me to study and use for that purpose. The Finance Department is reviewing the base level budget requests that have been submitted. They will notify you when• they have completed their review of the base level and will provide the amount of total base level expenses to you. Once you have those amounts,.I would like you to prepare impact statements that explain what your plan would be (what costs you would reduce) in the event that you are required to reduce your budgeted base level expenses. I would like two versions — one at 2 percent reduction and one at a 5 percent reduction of the amount provided to you by Finance. If you made additional requests, please include the impacts of not filling those as well. This request is for a reduction in expenses, not in expenses net of revenue. It's important that the focus be how your departmental programming would be affected, rather than stating the number of employees that would be reduced. Examples for the Finance Department might be to stop tracking fixed assets or stop allowing the useof credit cards (rather than reducing a position). The reductions should be what you actually would plan to do. The goal is to allow Council and me to understand the reductions that would be required if an option is implemented. If -you recall, the document provided during the last Agenda meeting showed the city tax levy rate for Waterloo was the highest of the fifteen cities with the highest populations in the state for FY 2016. Our goal is not to hinder operations but to take a look at moving, our rate in a downward trend like we did last year. Our levy rate has an impact on our ability to grow our community and to attract business development and residential opportunities. Please see the attached schedule for your reference. Please return your detailed responses to me and to Michelle Weidner in the Finance Department. I appreciate your cooperation. If you have any questions, please contact me or the Finance Department. CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal opportunity/Affirmative Action Employer BUDGET TIMELINE FY 2017 Original budget instructions provided to department heads by Mayor Clark December 7, 2015. II. Budget Information due to the Finance Department December 31, 2015, III. Memo sent to department heads week of January 4, 2016. IV. Request for -2% and -5% reduction Impact statements received by January 22"d V. Mayor and CFO to meet with department heads the week of January 25th to review information submitted. VI. Televised individual departmental budget reviews with council members February 3 — 17th. VII. Question and answer Work Session on February 22"d VII. Question and Answer Council Work Session February 29th (no city council meeting) VII. Budgetary ideas and scenarios need to be submitted by March 2"`' for information to be distributed for March 7th Council Meeting. VII. March 10th Special Council Meeting for Budget Hearing and Vote. If there are any questions, please contact Mayor Hart. Thank you. POPULATION RANKING 2010 CENSUS TAXABLE VALUE JANUARY 1, 2014 VALUATION REGULAR W G&E RANKING 2015/2016 CITY TAX RATES, BY CONTROL COUNTY DEPARTMENT OF MANAGEMENT - LOCAL BUDGET DIVISION LARGEST 15 CITIES RANKED BY POPULATION AG LAND GENERAL $8.10 LEVY FY 14/15 FY 15/16 OTHER LEVIES OUTSIDE AGLAND EMERG DEBT EMPLOY LEVY SERVICE BENEFIT 8.10000 LEVY Prepared by MWeidner 1/7/2016 CAPITAL IMPROVE TOTAL REGULAR LEVY W/O AG RANKING 1 DES MOINES 203,433 6,531,346,569 1 5,985,156 *8.10000 *8.10000 0.29 0.90290 3.93000 4.60000 16.92000 3 2 CEDAR RAPIDS 126,326 5,978,853,402 2 5,741,273 *8.10000 *8.10000 1.17418 3.00003 2.68605 3.25598 15.21621 7 3 DAVENPORT 99,685 4,003,576,327 4 14,700,167 *8.10000 *8.10000 1.43 3.00375 0.27000 2.15000 4.83000 16.78000 4 4 SIOUX CITY 82,684 2,274,505,570 11 4,110,227 *8.10000 *8.10000 1.5052 3.00375 0.27000 3.13435 3.10079 16.11034 6 5 WATERLOO 68,406 2,218,783,803 12 12,372,578 *8.10000 *8.10000 1.51482 3.00375 0.27000 3.25937 4.61951 17.76370 1 6 IOWA CITY 67,862 3,147,722,337 5 1,588,496 *8.10000 *8.10000 1.50986 3.00375 3.92833 3.11277 16.65096 5 7 COUNCIL BLUF 62,230 2,461,535,598 7 10,029,508 *8.10000 *8.10000 1.29393 3.00375 0.27000 2.45000 5.63607 17.75000 2 8 AMES 58,965 2,444,958,642 8 1,879,319 5.83299 5.77474 0.652 3.00375 3.49047 0.71216 10.62937 14 9 DUBUQUE 57,637 2,255,562,993 10 3,152,505 *8.10000 *8.10000 0.64889 3.00375 0.11261 2.16440 11.02590 13 10 WEST DES MOI 56,609 4,052,638,912 3 6,018,149 *8.10000 *8.10000 0.07973 2.99345 0.27000 1.95283 1.59744 12.00000 10 11 ANKENY 45,582 2,385,879,154 9 3,572,187 6.89 6.89000 0.15 3.00375 4.25000 0.56000 11.85000 11 12 URBANDALE 39,463 2,493,875,597 6 3,335,800 7.17 7.17000 3.00375 2.15000 0.50000 9.82000 15 13 CEDAR FALLS 39,260 1,514,959,618 14 5,886,712 *8.10000 *8.10000 0.90523 3.00375 0.59195 1.93078 11.52796 12 14 MARION 34,768 1,372,569,351 15 3,165,904 *8.10000 *8.10000 0.49384 3.00375 2.29472 2.69769 13.58625 8 15 BETTENDORF 33,217 1,977,551,522 13 4,231,386 5.43326 5.04127 0.64667 3.00375 5.00004 1.86202 12.55000 9 K:\USERS\MICHELLE-W\Budget FYE16\Other Entity Budget Documents\CityRate_FY16 Dept of Mgmt Sorted by Population and Tax Levy.xls Top 15 by Population CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 bate: December 7, 2015 To: Department Heads CC: Budget Preparation Personnel From: Michelle Weidner J RE: FYE2017 Budget Process It's that time of year for us to start the budget process for FYE2017. We will be using a similar approach as was used for the prior budget. The initial layer of budgets will be calculated using expenses (other than negotiated pay increases and related pension costs and payroll taxes) at the FYE2016 level. Those base level amounts will be completed for you in the budget software. You may still adjust individual line items either up or down in the department request level, based on your best expectation of what you plan to do next year. However, you must maintain the total combined Contractual Services and Commodities expenses at the amount that was budgeted for those two categories in the prior year. Overall_ increases to these two categories will not be allowed in the base level. Please note that you are expected to review revenue estimates and adjust those accordingly. Please DO NOT leave revenues at the FYE2016 budget levels unless those are appropriate. To prepare your requests, the following documents are being provided: 1. Targeted Dates for the Fiscal Year Ending June 30, 2017 Budget Process 2. General Budgeting Instructions 3. Logos .NET Financial System Budget Entry Instructions 4. Budget Preparation Worksheet Instructions for Exporting to Excel 5. Department Request Worksheet Printing Instructions 6. FYE2017 Budget Materials Checklist Please read through this memo and all instructions carefully so that accurate information is provided. Please do not hesitate to ask questions if you do not understand the requirements or need assistance with completing the forms. We're happy to help! All prepared forms and materials for the FYE17 budget should be submitted to me or Joyce Schroeder no later than December 31, 2015, so that the requests can be compiled and analyzed. Any departments that turn in their budgets before December 24th will again receive something in their "stocking" besides a lump of coal! Please usethe enclosed FYE2017 Budget Materials Checklist to help ensure that all the necessary items have been returned (this form is also available at k:\Shared Goodies\Finance, titled Budget Checklist FYE17). CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! 1 An Equal Opportunity/Affirmative Action Employer We really appreciate you getting these back to us as soon as possible. As you know, the timeframe for publishing the budget is very short and therefore, the more time you can give us to review and compile your information, the less chance for errors in your requests as they are presented to Mayor and Council. We hope to present the budget requests and recommendations to the City Council for their review by early -to -mid- February. Additional direction regarding your initial budget requests is expected to be provided in January. Budget Activity Narratives and instructions will be provided under separate cover. Please note that Budget Preparation Worksheets have not been automatically included this year since we've provided instructions for printing and exporting these worksheets directly to Excel on your own. However, if you still prefer to have the blank worksheets, please contact me or Joyce Schroeder and we'd be happy to print them for you. As you are probably aware, we should receive our final property valuations from Black Hawk County sometime the first week of January. Our goal is to have thedepartmental information compiled by the time that information is received in order to facilitate the budget process. If you have any questions or suggestions regarding the budget process, please call me at 291- 4323 or 291-4522 ext. 3009 and we'll do our best to address them. 2 CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 TO: Honorable Mayor Hart City Council Members DATE: January 7, 2016 FROM: Michelle Weidner, Chief Financial Officer Pid RE: City of Waterloo Property Valuation Trends Dear Mayor Hart & City Council members, We received information from Black Hawk County regarding our property valuations as of January 1, 2015, which will be used to determine our property tax revenue for the budget year ending June 30, 2017. The City's total valuation increased $138,144,744 this year, including properties located in TIF districts. That brings total valuation to $3,804,346,281, the highest in Waterloo history. There are a few property tax appeals that are pending that may reduce this value slightly. As you are aware, the State of Iowa made changes to the property tax law that results in a continued reduction of the portion of property that is taxable. Taxable property valuation excluding TIF district property, increased $34,301,041 to $2,253,084,844 (1.55%). A portion of this increase is due to revaluation changes made by the County Assessor's office. The residential rollback factor decreased this year from 55.7335% to 55.6259% (the rollback is the portion of a residential property's assessed value that is taxable). The 2012 changes in the property tax law created a 10% rollback factor for commercial and industrial property that results in only 90% of those assessed values being taxable for FYE2017. This is the first year that we are affected by the new multi -residential property class that was created under the state property tax reform law. Waterloo has $51,547,226 in total assessed value that is categorized as multi -residential. These properties were classified as commercial property for FYE2016, subject to a rollback of 90%. For FYE2017, they are subject to a rollback of 86.25%. This rollback will continue to decline over several years until multi -residential properties are subject to the residential rollback rate (meaning that a smaller portion of the property value will be taxable.) CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 2 Another provision of the state property tax reform law established a state reimbursement for the commercial property rollback. At this time, we anticipate that the state will reimburse taxing bodies for the full amount of tax revenue forfeited due to this change for the fiscal year ending June 30, 2017. For FYE2017, 63.2% of total valuation (excluding TIF) is taxable, compared to 63.8% for FYE2016 and 64.8% for FYE2015. This continuing decline is due to the change in the rollback factors. Several charts that graph the trends in valuation, excluding TIF, since the January 1, 2007 valuation date (used for FYE2009 budgets) were included in the presentation. (If you'd like printed copies, please let me know.) Total property valuations have grown $335,518,613 (0.96% annual average growth) since FYE2009, while taxable property valuations have grown $265,832,367 (1.34% average annual growth). The portion of the City's total taxable property that is residential has increased from 50.98% to 61.12% over that ten-year period, due primarily to the addition of the corporate/industrial and multi -residential rollback factors. If you have any questions about the information presented, please contact me. CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 Council Communication City Council Meeting: January 11, 2016 Prepared: January 10, 2016 Dept. Head Signature: Number of Attachments: Two — CAFR, Booklet of other Auditor Communications, SUBJECT: Comprehensive Annual Financial Report for the Year Ended June 30, 2015 Submitted by: Michelle Weidner, Chief Financial Officer Recommended City Council Action: N/A Background Information: Please find attached the City of Waterloo Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015, together with the compliance report for the passenger facility charges program and a separate package of other reports from the auditors. We are pleased to report that the audited financial statements reflect that the overall financial position of the City continued to improve (with the exception of recording the net pension liability for the city's pension funds) during the fiscal year ended June 30, 2015 and that the independent auditor's report issued by McGladrey, LLP is unmodified (see the tab labeled Auditor's Report for their opinion). The financial statements reflect the city's share of the estimated net pension liability for the pension plans for the first time. Recording this liability resulted in negative unrestricted net position for the city's governmental activities for the first time since implementing GASB # 34. Reading the transmittal letter, found at pages iii through x behind the Introductory Section tab, and Management's Discussion and Analysis, found at pages 3 through 14 behind the Management's Discussion & Analysis tab, provides a summary of the information included in the basic financial statements. Reading through these two documents will provide you with an idea of the contents of the report, although I would recommend that you read the entire report to more fully understand the City's financial position. This document summarizes all the financial activity that was undertaken by the City during the fiscal year ended June 30, 2015. The footnotes, found at pages 33 through 72, provide additional background and explanation about the City's activities. The grant compliance portion of the audit is found at pages 134 through 147. One of the key indicators in the report is the trend in General fund balance. The unassigned fund balance in the General fund increased by $40,083, indicating CITY WEB SITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer FYE2015 CAFR Cover Letter Page 2 of 5 that General fund activities as a whole performed better than budgeted. Although the City did not budget to use fund balance when the original budget was certified for the year ended June 30, 2015, $500,000 of fund balance was planned to be used for the year ending June 30, 2016. Because that action was taken prior to issuing these financial statements, that amount of fund balance was moved from unassigned fund balance to the assigned fund balance category. Explanations of departmental changes that resulted in this increase can be found on page 9 of Managements' Discussion & Analysis. Unassigned fund balance of $10,224,959 is 21.5% of general fund revenue, an increase of 0.39% from the year ended June 30, 2014. This is a key indicator used by many readers of the statements, including the bond rating services. In order to provide an adequate cash flow cushion for expenses and grants, and to improve our bond rating to the next category, which is the level that many cities our size hold, it is recommended that unassigned fund balance be 25% of general fund revenues. It's significant to note that this ratio has improved from a low point of 5.2% at June 30, 2000. Overall General fund balance, including amounts restricted and assigned for special purposes, increased by $794,223. Restricted and assigned sources of fund balance increased by a total of $823,100. Nearly two -thirds -of this increase arose from health insurance costs being less than expected. General fund unrestricted cash of $7,416,289 is 15.6% of General fund revenues (including amounts levied for employee benefits), exceeding the 5% of revenues required by city ordinance. This amount decreased by $2,005,124 from FYE2014, primarily due to an increase in grant reimbursements owed to the City at June 30, 2015. A portion of that cash has been assigned to fund a pool to self - insure the City for various risks, such as uninsured worker's compensation claims and tort claims, in addition to setting aside $500,000 for the FYE16 budget. Unrestricted cash net of that committed or assigned for those purposes is $2,960,273, or 6.2% of general fund revenues, also more than the 5% of revenues required by city ordinance. The entity -wide financial statements reflect the City's substantial investment in fixed assets net of related depreciation expense and debt. The addition of these items was required by Government Accounting Standard #34 and is intended to provide the reader of the statements with more information regarding how the City has invested taxpayer funds. Capital assets currently recorded on the City's books total $695,272,248. The City's investment in capital assets, net of accumulated depreciation and related debt, was $385,685,489. The Debt Service fund, which is used to retire the city's general obligation debt, recognized a decrease in cash of $507,387 and a decrease in fund balance of $464,326 available for the retirement of future debt. This decrease was due to using refunding savings from prior years to reduce the current year debt service FYE2015 CAFR Cover Letter Page 3 of 5 levy and also the impact of the settlement of several large property tax appeal cases. The Tax Increment Financing (TIF) fund realized an increase in cash ($1,424,683) and an increase in fund balance ($2,453,860) available for the repayment of future tax increment expenses. The increase is due to timing differences between when cash is collected and when obligations are due. Note that the City cannot collect the revenue if no debt is outstanding for a district. Expenses for several large projects were incurred early in the fiscal year ending June 30, 2016. The Trust and Agency fund is used to levy property taxes for the payment of employee benefits for general fund employee activities. Cash decreased by $141,547 while fund balance increased by $12,421 in this fund during the year ended June 30, 2015. The Local Option Tax fund, which is used to repair, reconstruct and improve streets, realized a decrease in cash and fund balance available for future construction at the end of June 30, 2015. Cash decreased by $2,976,544 while fund balance decreased by $2,362,105 to $6,021,930. A second year of good construction weather resulted in more construction expense than the prior year ($376,430). At the same time, revenue declined by $337,868. Most of the year- end fund._ balance was committed to construction contracts that were already awarded but uncompleted at June 30, 2015. The Road Use Tax fund, which pays for such things as street maintenance, snow removal, traffic operations and engineering, realized an increase in cash ($190,538) and an increase in fund balance ($628,332). This fund now has a balance of $5,358,114. The City budgeted to use $573,549 in fund balance for FYE2015 operations. The implementation of a gas tax increase effective March 1, 2015 by the state legislature provided $443,542 more revenue than budgeted. The Library Special Levy fund recognized a slight increase in cash ($15,186) and fund balance ($11,191) during the year ended June 30, 2015. The fund balance is 32% of revenues at June 30, 2015, which is slightly higher than the 25% target for this fund. A very small cash balance is maintained in the Community Development Block Grant Fund. Grant funds received from the federal government are required to be spent as received. The City routinely advances general fund monies to pay these expenses until reimbursements are received, generally from the federal government. This practice reduces general fund investment earnings and temporarily reduces general fund cash available for other uses. Total cash increased by $182,354 while fund balance decreased by $145,002 in the Housing fund. Expenditures in this fund are restricted for specified uses by FYE2015 CAFR Cover Letter Page 4 of 5 the federal government. The total cash and investments balance was $4,271,736 at June 30, 2015, while fund balance declined to $4,166,255. The negative fund balance reflected in the Grants fund is temporary and was caused due to expenditures made prior to receiving reimbursements from the granting agencies. General fund monies are advanced to pay these project expenses until grant reimbursements are received. Ensuring that all grant reimbursements are received within sixty days of year-end would eliminate this negative fund balance and also allow the audit finding regarding the negative fund balance to be eliminated. The amount of grant reimbursements outstanding increased during the current year. There are situations when the reimbursements cannot be received within sixty days of year-end. For example, the city retains a portion of contract payments due until contracts are complete. The retainage is reflected as an amount due, but the reimbursing agencies don't reimburse the city until the contract is complete, creating a negative fund balance. We continue to explore ways to improve this turnaround. This practice reduces general fund investment earnings and temporarily reduces cash available for other uses in order to comply with grant requirements. Granting agency requirements that the City pay expenses prior to receiving grant reimbursements require that the City maintain a cash balance in the General fund to address this issue. The Sanitation fund, which accounts for garbage removal and recycling activities in addition to Code Enforcement activities, ended the year with $3,218,455 in cash, an increase of $38,530 from the previous year, while net position for this fund decreased by $435,076 to $4,824,879. This cash level provides the fund with a needed cushion to allow the fund to pay its bills prior to receiving revenue and to pay expenses even if revenue declines unexpectedly. Available cash not committed to repay current liabilities is 83% of revenues, covering ten months of operating expenses. The Sewer fund, which accounts for wastewater and storm water activities, ended the year with unrestricted cash available for operations of $6,766,573, a decrease of $1,095,421. Available cash not committed to repay current liabilities (excluding bonds) decreased to 37% of revenues, which is approximately four and half months of cash flow to pay operating expenses. Unrestricted net position increased by $355,594. Sewer operations cash decreased $1,324,890 to $5,154,244, due primarily to capital assets constructed, while operating cash in the storm sewer fund increased $229,469 to $1,612,329. One of the benefits obtained from having an independent audit is recommendations made for improvements to processes used by the City. Please refer to page 139 for a description of the audit findings. Three statutory compliance issues as reported in previous years (see page 139, Issues 14 -IV -F, 14 -IV -H and 14 -IV -J) were repeated. Two are situations that are required to be reported, but that the city either cannot correct or chooses not to address. The first of these findings relates to the negative fund balances carried in the FYE2015 CAFR Cover Letter Page 5 of 5 reimbursable project funds, as reported above. The second finding points out that the City has provided property tax support to the Waterloo Regional Airport, although a City ordinance requires that the airport be self-supporting. Past City Councils elected to use property taxes to support this vital economic development tool. An additional finding related to the timing of publications (See page 133, issue 14 -IV -F) was corrected during the current year. During the prior year, council minutes were not always published within 15 days as required. If you have any questions about the information presented or would like to discuss the performance of any of the funds or any of the findings specifically, please contact me. I'll be happy to provide further information. City of Waterloo, Iowa Report to the Honorable Mayor and City Council December 18, 2015 THE POWER OF BEING UNDERSTOOD AUDIT I TAX I CONSULTING 11111111111111011 RSM RSM RSM US LLP December 18, 2015 To the Honorable Mayor and City Council City of Waterloo, Iowa 715 Mulberry Street Waterloo, Iowa 50703 We are pleased to present this report related to our audit of the financial statements and compliance of City of Waterloo, Iowa (the City) for the year ended June 30, 2015. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for City's financial reporting process. This report is intended solely for the information and use of the Honorable Mayor and City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the opportunity to continue to be of service to City of Waterloo, Iowa. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING RSM U5 LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms, Visit rsmus,com/aboutus for more information regarding RSM US LLP and RSM International. Contents Required Communications 1 — 3 Summary of Significant Accounting Estimates 4 — 5 Summary of Audit Adjustments 6 Summary of Uncorrected Misstatements 7 Exhibit A — Significant Written Communications Between Management and Our Firm Representation Letter Written Communication of Internal Control Deficiencies and Management Advice Suggestions Report on Compliance for the Passenger Facility Charge Program, Report on Internal Control Over Compliance; and Report on Schedule of Passenger Facility Receipts and Disbursements and the Schedule of Passenger Facility Charges Cash Activity as Required by the Passenger Facility Charge Audit Guide for Public Agencies Required Communications Generally accepted auditing standards (AU -C 260, The Auditor's Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process. Area Comments Our Responsibilities With Our responsibilities under auditing standards generally accepted in Regard to the Financial the United States of America and Government Auditing Standards, Statement Audit issued by the Comptroller General of the United States, and provisions of OMB Circular A-133 and OMB's Compliance Supplement have been described to you in our arrangement letter dated October 12, 2015. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities which are also described in that letter. Overview of the Planned We have issued a separate communication regarding the planned Scope and Timing of the scope and timing of our audit and have discussed with you our Financial Statement Audit identification of and planned audit response to significant risks of material misstatement. Accounting Policies and Practices Preferability of Accounting Policies and Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the City. Following is a description of significant accounting policies or their application that were either initially selected or changed during the year. • GASB Statement No. 68, Accounting and Financial reporting for Pensions, replaces the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, and GASB Statement No. 50, Pension Disclosures, as they related to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. This Statement requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. This Statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information. Page 1 Area Audit Adjustments Uncorrected Misstatements Disagreements With Management Consultations With Other Accountants Comments • GASB No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68 eliminates a potential source of understatement of restated beginning net position and expense in a government's first year of implementing GASB Statement No. 68, Accounting and Financial Reporting for Pensions. To correct this potential understatement, Statement 71 requires a state or local government, when transitioning to new pension standards, to recognize a beginning deferred outflow of resources for its pension contributions made during the time between the measurement date of the beginning net pension liability and the beginning of the initial fiscal year of implementation. This amount will be recognized regardless of whether it is practical to determine the beginning amounts of all other deferred outflows of resources and deferred inflows of resources related to pensions. Also as noted in Note 11, the governmental activities, business -type activities, major enterprise fund and aggregate remaining fund information were restated to record a net pension liability and a deferred outflow of resources related to contributions made after the measurement date due to the implementation of GASB Statement Nos. 68 and 71. In addition, the appropriate disclosures and required supplementary information required under GASB No. 68 were included in the current year. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Management's Judgments and Accounting Estimates Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates. Audit adjustments recorded by City of Waterloo, Iowa are summarized in the attached Summary of Recorded Audit Adjustments. Uncorrected misstatements are summarized in the attached Summary of Uncorrected Misstatements. We encountered no disagreements with management over the application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements. We are not aware of any consultations management had with other accountants about accounting or auditing matters, other than the use of other auditors for the discretely presented component units of the City. Page 2 Area Significant Issues Discussed With Management Significant Difficulties Encountered in Performing the Audit Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit Performed in Accordance With Government Auditing Standards Significant Written Communications Between Management and Our Firm Comments A significant issue arising from the audit discussed with management included the mortality assumptions used by the MFPRSI in the calculation of the City's proportionate share of the Plan's net pension liability. Based on several factors, the City modified the mortality assumptions used by the Plan's actuary to reflect more recent mortality tables (RP -2000 Blue Collar Mortality table with projected mortality improvement using scale BB -2D). As a result, management of the City determined that the net pension liability associated with MFPRSI was understated by 29 percent and adjusted the City's financial statement accordingly. We did not encounter any significant difficulties in dealing with management during the audit. We have separately issued a report on internal control over financial reporting and compliance as required by the Government Auditing Standards and OMB Circular A-133 and this communication is included within the compliance section of the City's financial report for the year ended June 30, 2015. Copies of material written communications between our firm and the management of the City, including the representation letter provided to us by management, are attached as Exhibit A. Page 3 City of Waterloo, Iowa Summary of Significant Accounting Estimates Year Ended June 30, 2015 Accounting estimates are an integral part of the preparation of financial statements and are based upon management's current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates. The following describes the significant accounting estimates reflected in the City's June 30, 2015, financial statements. Estimate Depreciable Useful Life of Capital Assets Accounting Policy The depreciable useful life of capital assets is set at the estimated useful life of the related asset. Management's Estimation Process The determination is made at the time the asset is placed into service and involves various judgments and assumptions based on prior experience. Basis for Our Conclusions on Reasonableness of Estimate We scanned the estimated useful lives assigned to current year additions by management. We believe the estimates and the process used by management are reasonable. Incurred but Not Reported (IBNR) Liability for DentalNision and Health Insurance Self -Insurance Liability The City records an estimated liability for risk management losses which include amounts for incurred but not reported claims. The City relies on the actuarial computed IBNR based on data provided by the City of outstanding claims, history of claims and various judgments and assumptions. Management reviews the actuarial results. We tested the propriety of the information provided to the actuary. We believe the estimates and processes used by management are reasonable. Worker's Compensation and Automobile Liability The City records an estimated liability for risk management losses which include amounts for incurred but not reported claims. The City calculated the IBNR liability using various judgments and assumptions and records a liability for claims incurred. We tested the propriety of the information underlying management's estimates. Based on our procedures, we believe management's estimate is reasonable. Page 4 Estimate Other Postemployment Benefit Plan (OPEB) Assumptions Accounting Policy A liability is reported on the government -wide and proprietary fund financial statements for the difference of annual required contributions and the amounts paid by the City. Management's Estimation Process Numerous assumptions are used by the actuary and include employee- related factors such as turnover, retirement age and mortality. These factors and estimated discount rate used to determine the present value of liabilities are based upon historical data and general market data. The amount is calculated by an actuary. Management reviews the actuarial results. i . . . Conclusions on Reasonableness of Estimate We tested the information provided to the actuary and obtained the actuarial calculation reports. We believe the estimates and processes used by management are reasonable. Allowance for Doubtful Accounts The allowance for receivables are recorded at net realizable value; gross accounts receivable net an allowance for doubtful accounts. The allowance is adjusted as information about specific accounts becomes available. The City also compares current allowance amounts to prior -year collection or write-off experience. We tested the underlying information supporting this allowance, including the most recent aging reports and collection experience. We believe that management's estimate is reasonable. Allocation of Indirect Costs Operating funds, departments and activities receive services from supporting funds departments and activities. Annually, management estimates the value of these services and records applicable indirect allocations. We tested the underlying information supporting the underlying allocations. We believe that management's estimate is reasonable. Net Pension Liability (NPL) Assumptions A liability is reported in the Government -wide and proprietary funds financial statements for the City's proportionate share of the difference between the total pension liability and the fiduciary net position of the City's pension plans. The Plan uses an actuary to calculate NPL and expense based on the assumptions and estimates established by Plan management in conjunction with the pension plan from past history and investment returns. Management reviews the actuarial results provided by the Plan. For MFPRSI, the City recorded an increase to the NPL based on review of the assumptions used by the plan. We analyzed the City's methodology, tested the underlying data, obtained the calculation actuarial report and had an internal specialist review the significant assumptions and conclusions. We concluded that the process used by the City and the estimates are reasonable. Page 5 City of Waterloo, Iowa Summary of Recorded Audit Adjustments Year Ended June 30, 2015 Entry 1 Fund Local Option Sales Tax Local Option Sales Tax To adjust Local Option Tax Line Item Debit Credit Due from Other Governments $ 8,077.92 Other Tax Revenue receivable 2 Capital Projects Capital Outlay 750,000.00 Capital Projects Accounts Payable To record a payable for the economic development grant to San Marnan Management $ 8,077.92 750,000.00 3 Sanitary Sewer Deferred Outflows Sanitary Sewer Deferred Inflows Sanitary Sewer Deferred Outflows Sanitary Sewer Deferred Inflows To adjust the classification of the Deferred Outflows and Deferred Inflows relating to the IPERS Net Pension Liability 35, 515.00 13,629.00 4 Local Option Sales Tax Local Option Sales Tax Sanitary Sewer Sanitary Sewer June 2014 GO Bond Fund June 2014 GO Bond Fund June 2014 GO Bond Fund To adjust accounts payable Capital Outlay Accounts Payable General Expense Accounts Payable Capital Outlay Capital Outlay Accounts Payable at year-end 67,221.00 26,230.12 45, 065.00 35,515.00 13,629.00 67,221.00 26,230.12 4,940.00 40,125.00 Page 6 City of Waterloo, Iowa Summary of Uncorrected Misstatements Year Ended June 30, 2015 During the course of our audit, we accumulated uncorrected misstatements that were determined by management to be immaterial, both individually and in the aggregate, to the statements of financial position, results of operations, and cash flows and to the related financial statement disclosures. Following is a summary of those differences. Governmental Activities Current year passed adjustments: To correct accounts payable at year-end, Factual To correct accounts payable at year-end, Projected Close current year income effect into net position Total Grants Fund Current year passed adjustments: To correct accounts payable at year-end, Factual To correct accounts payable at year-end, Projected Close current year income effect into net position Total Aggregate Non -Major Funds Current year passed adjustments: To correct accounts payable at year-end, Projected Close current year income effect into net position Total Assets Debit (Credit) to Correct the Misstatements Liabilities Net Position Revenue Expense $ 14,278 $ $ $ (14,278) (64,235) - - 64,235 49,957 - Assets $ (49,957) $ 49,957 $ $ 49,957 Debit (Credit) to Correct the Misstatements Liabilities Net Position Revenue Expense $ 14,278 $ - $ - $ (14,278) 2,645 - (2,645) (16,923) - $ 16,923 $ (16,923) $ $ (16,923) Assets Debit (Credit) to Correct the Misstatements Liabilities Net Position Revenue Expense $ (66,880) $ - $ $ 66,880 66,880 - $ (66,880) $ 66,880 $ $ 66,880 Debit (Credit) to Correct the Misstatements Sanitary Sewer Fund and Business Type Activities Assets Liabilities Net Position Revenue Expense Current year passed adjustments: To correct accounts payable at year-end, Projected $ $ (56,045) $ - $ $ 56,045 Close current year income effect into net position - 56,045 - Total $ $ (56,045) $ 56,045 $ $ 56,045 Page 7 Exhibit A—Significant Written Communications Between Management and Our Firm CITY OF WATERLOO, IOWA • CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax 1319) 291-4571 December 18, 2015 RSM US LLP 201 North Harrison Street Suite 300 Davenport, Iowa 52801 This representation letter is provided in connection with your audit of the basic financial statements of the City of Waterloo, Iowa (the City) as of and for the year ended June 30, 2015 for the purpose of expressing an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We confirm, to the best of our knowledge and belief, that as of December 18, 2015: Financial Statements 1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated October 12, 2015, for the preparation and fair presentation of the financial statements referred to above in accordance with U.S. GAAP. 2. We acknowledge our responsibility 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. 3. We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud. 4. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable and reflect our judgment based on our knowledge and experience about past and current events, and our assumptions about conditions we expect to exist and courses of action we expect to take. 5. Related -party transactions, including those with component units for which the City is accountable, jointly governed organizations in which the City participates, and interfund transactions, including interfund accounts and advances receivable and payable, sale and purchase transactions, interfund transfers, long-term loans, leasing arrangements and guarantees, have been recorded in accordance with the economic substance of the transaction and appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 6. We are not aware of any events subsequent to the date of the financial statements, for which U.S. GAAP requires adjustment or disclosure. 7. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP. CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer RSM US LLP December 18, 2015 Page 2 8. The following have been properly recorded and/or disclosed in the financial statements: a. Net position and fund balance classifications b. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances. c. Risk financing activities 9. There are no unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5 and/or GASB Statement No. 10. 10. We have no direct or indirect legal or moral obligation for any debt of any organization, public or private, or to special assessment bond holders that is not disclosed in the financial statements. 11. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 12. We have informed you of all uncorrected misstatements. As of and for the year ended June 30, 2015, we believe that the effects of the uncorrected misstatements aggregated by you and summarized below are immaterial, both individually and in the aggregate, to the basic financial statements. For purposes of this representation, we consider items to be material, regardless of their size, if they involve the misstatement or omission of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. Governmental Activities Current year passed adjustments: To correct accounts payable at year-end, Factual To correct accounts payable at year-end, Projected Close current year income effect into net position Total Grants Fund Current year passed adjustments: To correct accounts payable at year-end, Factual To correct accounts payable al year-end, Projected Close current year income effect into net position Total Aggregate Non.Major Funds Current year passed adjustments: To correct accounts payable at year-end, Projected Close current year income effect into net position Total Sanitary Sewer Fund and Business Type Activities Current year passed adjustments; To correct accounts payable at year-end, Projected Close current year income effect into net position Total Assets Debit (Credit) to Correct the Misstatements Liabilities Net Position Revenue Expense $ $ 14,278 $ - $ - $ (14,278) (64,235) - - 64,235 49,957 - $ Assets $ (49,957) $ 49,957 $ - $ 49.957 Debit (Credit) to Correct the Misstatements L abrlrties Net Position Revenue Expense $ $ 14,278 $ - $ $ (14,278) 2,645 (2,645) - (16,923) - $ 16,923 $ (16,923) $ $ (16.923) Assets Debit (Credit) to Correct the Misstatements Liabilities Net Position Revenue Expense $ $ (66,880) $ - $ $ 66,880 66,880 - $ (66.8801 $ 66.800 $ - $ 66.880 Debit (Credit) to Correct the Misstatements Assets Liabilities Net Position Revenue Expense $ (56,045) $ - $ $ 56,045 56,045 $ (56,045) $ 56,045 $ $ 56.045 RSM US LLP December 18, 2015 Page 3 13. We agree with the findings of specialists used by IPERS in evaluating the assumptions and financial amounts related to the defined benefit plans and have adequately considered the qualifications of the specialists in determining the amounts and disclosures used in the financial statements and underlying accounting records. For MFPRSI, we reviewed the assumptions and determined the mortality tables and the lack of mortality improvement assumptions used by the Plan actuary understated the net pension liability related to MFPRSI and we have adjusted the liability accordingly. We did not give or cause any instructions to be given to the specialists with respect to the values or amounts derived in an attempt to bias their work and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists. Information Provided 14. We have provided you with: a. Access to all information of which we are aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation and other matters; b. Additional information that you have requested from us for the purpose of the audit; c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence; and d. Minutes of the meetings of the governing board and committees, or summaries of actions of recent meetings for which minutes have not yet been prepared. 15. All transactions have been recorded in the accounting records and are reflected in the financial statements. 16. We have disclosed to you the results of our assessment of risk that the financial statements may be materially misstated as a result of fraud. 17. We have no knowledge of allegations of fraud or suspected fraud affecting the City's financial statements involving: a. Management. b. Employees who have significant roles in internal control. c. Others where the fraud could have a material effect on the financial statements. 18. We have no knowledge of any allegations of fraud or suspected fraud affecting the City's financial statements received in communications from employees, former employees, analysts, regulators or others. 19. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations whose effects were considered when preparing financial statements. 20. We have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. 21. We have disclosed to you the identity of the entity's related parties and all the related -party relationships and transactions of which we are aware. RSM US LLP December 18, 2015 Page 4 22. We are aware of no significant deficiencies, including material weaknesses, in the design or operation of internal controls that could adversely affect the City's ability to record, process, summarize and report financial data. 23. We are aware of no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. Supplementary Information 24. With respect to supplementary information presented in relation to the financial statements as a whole: a. We acknowledge our responsibility for the presentation of such information. b. We believe such information, including its form and content, is fairly presented in accordance with U.S. GAAP. c. The methods of measurement or presentation have not changed from those used in the prior period. d. When supplementary information is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance of the supplementary information and the auditor's report thereon. 25. With respect to management's discussion and analysis, budget schedules, Iowa Public Employee Retirement System and Municipal Fire and Police Retirement System of Iowa Schedules of Employer's Proportionate Share of the Net Pension Liability and Schedules of Employee's Contributions and other postemployment benefit schedule of funding progress presented as required by Governmental Accounting Standards Board to supplement the basic financial statements: a. We acknowledge our responsibility for the presentation of such required supplementary information. b. We believe such required supplementary information is measured and presented in accordance with guidelines prescribed by U.S. GAAP. c. The methods of measurement or presentation have changed from those used in the prior period due to the implementation of GASB Statement Nos. 68 and 71. d. The following are underlying significant assumptions or interpretations regarding the measurement or presentation of such information includes the assumptions used by the actuary for the Pension Plans and OPEB calculation as noted in the schedule of funding progress. Compliance Considerations 26. In connection with your audit conducted in accordance with Government Auditing Standards, we confirm that management: a. Is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework. RSM US LLP December 18, 2015 Page 5 b. Is responsible for compliance with the laws, regulations and provisions of contracts and grant agreements applicable to the auditee. c. Is not aware of any instances that have occurred, or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance. d. Is not aware of any instances that have occurred, or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that have a material effect on the determination of financial statement amounts. e. Is not aware of any instances that have occurred, or are likely to have occurred, of abuse that could be quantitatively or qualitatively material to the financial statements. f. Is responsible 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. g. Acknowledges its responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. h. Has taken timely and appropriate steps to remedy fraud; noncompliance with provisions of laws, regulations, contracts and grant agreements; or abuse that the auditor reports. i. Has a process to track the status of audit findings and recommendations. j. Has identified for the auditor previous audits, attestation engagements and other studies related to the audit objectives and whether related recommendations have been implemented. k. Has provided views on the auditor's reported findings, conclusions and recommendations, as well as management's planned corrective actions, for the report. I. Acknowledges its responsibilities as it relates to non -audit services performed by the auditor, including a statement that it assumes all management responsibilities; that it oversees the services by designating an individual, preferably within senior management, who possesses suitable skill, knowledge or experience; that it evaluates the adequacy and results of the services performed; and that it accepts responsibility for the results of the services. 27. In connection with your audit of federal awards conducted in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, we confirm: a. Management is responsible for complying, and has complied, with the requirements of Circular A-133. b. Management is responsible for understanding and complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of its federal programs. RSM US LLP December 18, 2015 Page 6 c. Management is responsible for establishing and maintaining, and has established and maintained, effective internal control over compliance for federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on its federal program. d. Management has prepared the schedule of expenditures of federal awards in accordance with Circular A-133 and has included expenditures made during the period being audited for all awards provided by federal agencies in the form of grants, federal cost reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations and other assistance. e. Management has identified and disclosed all of its government programs and related activities subject to Circular A-133 compliance audit. f. Management has identified and disclosed to the auditor the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major program. g. Management has made available all federal awards (including amendments, if any) and any other correspondence relevant to federal programs and related activities that have taken place with federal agencies or pass-through entities. h. Management is not aware of any amounts questioned or noncompliance with the direct and material compliance requirements of federal awards. i. Management believes that the auditee has complied with the direct and material compliance requirements. Management has made available all documentation related to compliance with the direct and material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. k. Management has provided to the auditor its interpretations of any compliance requirements that are subject to varying interpretations. I. Management is not aware of any communications from grantors and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor's report. j• m. Management has disclosed to the auditor the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor's report. n. Management is responsible for taking corrective action on audit findings, if any, of the compliance audit. o. Management has provided the auditor with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. RSM US LLP December 18, 2015 Page 7 p. Management has disclosed all known noncompliance with direct and material compliance requirements occurring subsequent to the period covered by the auditor's report or stating that there were no such known instances. q. Management is not aware of any changes in internal control over compliance or other factors that might significantly affect internal control that have occurred subsequent to the period covered by the auditor's report. r. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared. s. The copies of federal program financial reports provided to the auditor are true copies of the reports submitted, or electronically transmitted, to the federal agency or pass-through entity, as applicable. t. Management has charged costs to federal awards in accordance with applicable cost principles and Circular A-133. u. Management is responsible for, and has accurately prepared, the summary schedule of prior audit findings to include all findings required to be included by Circular A-133. v. The reporting package does not contain protected personally identifiable information. w. Management will accurately complete the appropriate sections of the data collection form. 28. During the course of your audit, you may have accumulated records containing data that should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your possession are no longer needed by us. City of Waterloo, Iowa Zit-dY Xe.e.67 Ernest Clark, Mayor Michelle Weidner, Chief Financial Officer RSM RSM US LLP Members of the City Council City of Waterloo, Iowa Waterloo, Iowa In planning and performing our audit of the financial statements of the City of Waterloo, Iowa (the City) as of and for the year ended June 30, 2015, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Following are descriptions of all identified deficiencies in internal control that we determined did not constitute significant deficiencies or material weaknesses: Accounts Payable: Generally Accepted Accounting Principles in the United States of America (U.S. GAAP) dictate that the City record most expenditures/expenses in the period in which the goods or services were received, regardless of when the payment is made. Expenditures/expenses that have been incurred prior to year-end, but not paid until after year-end should be reported as an accrued liability. During our audit, we identified certain instances in which proper cutoff was not achieved. One instance resulted in an audit adjusting entry of $750,000 in the capital projects fund, in addition to other instances resulting in adjusting entries in the Local Option Sales Tax Fund, June 2014 Bond Fund and the Sanitary Sewer Fund, totaling $133,576. These adjustments have been recorded by the City and the expenditures are being reported in the correct period in the comprehensive annual financial report. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit tax, and consulting fxms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. Other instances resulted in three immaterial projected understatements of accounts payable as of June 30, 2015 in the Sanitary Sewer fund, Grants fund, and Aggregate Nonmajor funds totaling $106,002. These items were deemed to be immaterial and have not been recorded in the comprehensive annual financial report. We recommend the City review invoices including services provided that are close to fiscal year-end or span fiscal years and accrue the portion of the expenditure incurred in the correct fiscal year. Information Technology: Three key employees have super -user access to the financial system for which user logs are not being reviewed. Also, there is no formal modification of access level form in place at the City. We recommend a formal policy for access modification be implemented at the City as well as a review of super -user logs. This would ensure no unauthorized access within the financial systems at the City. Payroll: The City clerk and deputy city clerk employee have the ability to create a new employee, process and approve payroll, print checks and is the only one with access to download the direct deposit information from the payroll software to the bank. In addition these employees can make changes to the payroll master file including pay rates, employee addresses, deductions, etc. Further, there is not a payroll edit/change report that is reviewed by someone independent of an employee involved in the processing of payroll. We recommend restriction of the City clerk and deputy clerks access to all payroll functions. Offsite Cash Collections: The City has several outside departments that have an employee with the ability to collect, reconcile, and deposit cash receipts. There is no independent review. We recommend segregating the cash collection function in these outside departments in order to ensure proper segregation of duties over the cash collections. Net pension liability assumptions for MFPRSI: As part of the implementation of GASB 68 for the year ended June 30, 2015, the City's pension plan provider, the Municipal Fire and Police Retirement System of Iowa (MFPRSI) had an actuary calculate the net pension liability at the City's measurement date of June 30, 2014. The Plan's actuary used mortality rates that were based on 2/12 of the 1971 GAM table and 10/12 of the 1994 GAM table with no projection of future mortality improvement. Through discussions with MFPRSI, the Plan was unable to provide adequate documentation to support these assumptions under GASB 68 and actuarial standards resulting in a projection of the total pension liability using the RP -2000 Blue Collar Mortality Table and a projected mortality improvement scale BB -2D being determined. This projection resulted in an increase in the total pension liability of the Plan of 4-6 percent, in which the City recognized their proportionate share of. The City subsequently made an adjustment to the Governmental Activities to properly reflect in the increase in total pension liability as a result of the updated assumptions. We recommend the City discuss with the MFPRSI on an on-going basis to verify the appropriate assumptions are being used in the actuary calculation of the gross pension liability of the Plan. In addition, this letter includes observations with respect to matters that came to our attention in connection with our audit of the financial statements of the City of Waterloo for the year ended June 30, 2015. These items are offered for informational purposes to be considered as part of the ongoing process of modifying and improving the organization's practices and procedures. Net Pension Liability Assumptions: As part of the implementation of GASB 68 in the year ended June 30, 2015, the City's pension plan provider, the Iowa Public Employees Retirement System (IPERS) had an actuary calculate the net pension liability at the City's measurement date of June 30, 2014. We noted the following items from our review of the assumptions used in the actuarial calculation that we would like to bring to the attention of the City: • The Pension Plan assumed 4.00 percent annual payroll growth, however, between 2009 and 2014, covered payroll increased by an average of 1.97 percent per year. This could be a concern as current assumptions would be over -estimating future contributions. 2 • During fiscal year 2015, the Society of Actuaries (SOA) released updated mortality tables (RP - 2014 and RP -2015 tables) that are to be used in future actuarial. The new tables have been updated for recent mortality trends. The actuarial calculation for the June 30, 2014 measurement date did not use the new mortality tables. We recommend the City consider the appropriateness of actuarial assumptions used by IPERS to calculate their Net Pension Liability. Uniform Grant Guidance Update: The Office of Management and Budget (OMB) issued Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards on December 26, 2013. This Uniform Grant Guidance supersedes and streamlines requirements from eight different grant circulars into one set of guidance contained in Title 2 of the CFR, Subtitle A, Chapter II, Part 200. The new administrative requirements and cost principles included in this new guidance is applicable for all new federal awards made after December 26, 2014 and to additional funding to existing awards (also known as funding increments) after December 26, 2014. These new requirements and cost principles may require significant changes including, but not limited to: • Procurement policies and processes • Allocations of indirect costs • Time and effort reporting • Subrecipient monitoring • Internal control There are many resources available to assist with implementation of this new guidance including: • The various Uniform Grant Guidance documents at: http://www.whitehouse.gov/omb/grants docs • An archive of a RSM US webcast and related presentation materials at: http://rsmus.com/content/mcgladrey/en US/events/new-uniform-grant-requirements.html • An archive of an OMB Web event and related presentation materials covering the contents of the various Subparts and requirements: http://www.aicpa.orq/InterestAreas/GovernmentalAuditQuality/Resources/Pages/UGGNewCo stPrinciplesEvent.aspx • The Council on Financial Assistance Reform (COFAR) Web Site at: https://cfo.gov/cofar/ • COFAR FAQ documents at: https://cfo.gov/wp-content/uploads/2014/08/2014-08-29- Frequently-Asked-Questions.pdf New Single Audit requirements related to this guidance are effective for the fiscal year ending in 2016. All entities receiving federal funding should be familiar with this new Uniform Grant Guidance and have a plan in place to become compliant. This communication is intended solely for the information and use of management:, the City Council and others within the organization, and is not intended to be, and should not be, used by anyone other than these specified parties. Davenport, Iowa December 18, 2015 3 Report on Compliance for the Passenger Facility Charge Program, Report on Internal Control Over Compliance and Report on Schedule of Passenger Facility Charge Receipts and Disbursements and the Schedule of Passenger Facility Charges Cash Activity as Required by the Passenger Facility Charge Audit Guide for Public Agencies Independent Auditor's Report Waterloo Regional Airport Board and Honorable Mayor and City Council Waterloo Regional Airport City of Waterloo, Iowa Waterloo, Iowa P -SM US LLP Report on Compliance We have audited City of Waterloo, Iowa's (the City) compliance with the types of compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (the Guide) that could have a direct and material effect on the City's passenger facility charge program for the year ended June 30, 2015. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its passenger facility charge program. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the City's passenger facility charge program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America and the Guide. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the passenger facility change program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the passenger facility charge program. However, our audit does not provide a legal determination of the City's compliance. Opinion on the Passenger Facility Charge Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its passenger facility charge program for the year ended June 30, 2015. THE POWER OF BEING UNDERSTOOD AUDIT I TAX I CONSULTING RSM US L LP he U.S. RSM Inter nal ion ber firm of RSM International, a global network of Ind naen 1 tax, endc ulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on its passenger facility charge program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the passenger facility program and to test and report on internal control over compliance in accordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the passenger facility charge program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the passenger facility charge program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the passenger facility charge program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Guide. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Passenger Facility Charges Collected and Expended and Schedule of Passenger Facility Charges Cash Activity 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, which includes the Federal Aviation Agency Projects Fund, a special revenue fund of the City, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 18, 2015. The City's June 30, 2014 financial statements have been restated due to the implementation of GASB Statement Nos. 68 and 71 to recognize a net pension liability and deferred outflows or resources of the governmental activities, business -type activities, the major enterprise fund and the aggregate remaining fund information. Our report includes a reference to other auditors. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of passenger facility receipts and disbursements and schedule of passenger facility charges cash activity is presented for purposes of additional analysis as specified in the Guide 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 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 schedule of passenger facility receipts and disbursements and schedule of passenger facility charges cash activity are fairly stated in all material respects in relation to the financial statements as a whole. Davenport, Iowa December 18, 2015 2 City of Waterloo, Iowa Schedule of Passenger Facility Charges Receipts and Disbursements Year Ended June 30, 2015 Beginning Application Balance Approval Unliquidated PFC Interest Number PFC Collections Earned Expenditures Ending Balance Unliquidated PFC Rehab Airfield Vault & Control System 09 -08 -C -00 -ALO $ 18,377 $ (10,859) $ $ 7,518 $ Rehab Taxiway E 11 -10 -C -00 -ALO - 42,535 42,535 PFC Administration Costs 11 -10 -C -00 -ALO 10,545 9,613 20,158 - Rehab Taxiway A (East) 12 -11 -C -00 -ALO 69,915 (24,955) 10,313 34,647 Rehab Taxiway B 12 -11 -C -00 -ALO 13,834 (6,016) 7,818 Snow Removal Equipment 15 -12 -C -00 -ALO 94,729 118 94,847 Total $ 112,671 $ 105,047 $ 118 $ 183,189 $ 34,647 Passenger Facility Charges (PFCs) are expended as the local match required for CFDA No. 20.106, Airport Improvement Program, as displayed on the schedule of expenditures of federal awards plus additional amounts approved by the Federal Aviation Administration (FAA). Cumulative approvals for collections and uses are both $1,375,188 Project completed 3 City of Waterloo, Iowa Schedule of Passenger Facility Charges Cash Activity Year Ended June 30, 2015 Description Passenger Facility Charges receipts Interest Disbursements Total Totals Totals Totals July 1, 2014 Quarter #1 Quarter #2 Quarter #3 Quarter #4 for Year June 30, 2015 $ 2,501,505 $ 25,711 $ 28,512 $ 23,542 $ 27,282 $ 105,047 $ 2,606,552 31,703 33 39 32 14 118 31,821 (2,420,536) (41,033) (12,829) (64,587) (64,739) (183,188) (2,603,724) $ 112,671 $ 97,382 $ 113,104 $ 72,091 $ 34,648 $ (78,023) $ 34,648 4 MIN RSM CITY OF WATERLOO, IOWA COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2015 Prepared by: City of Waterloo Finance Department Michelle C. Weidner, CPA, Chief Financial Officer Joyce Schroeder, Financial Analyst Emily Graham, Financial Analyst Brent Bohlen, Financial Analyst ... .. .. NNW .. ./ IMP ..01 MEW MEV los w++ MIME Contents Introductory Section Table of contents i – Transmittal letter – x Officials xi Organizational structure xii GFOA Certificate xiii Financial Section Independent auditor's report 1 – 2 Management's discussion and analysis 3 – 14 Basic financial statements: Government -wide financial statements: — Statement of net position 15 – 16 Statement of activities 17 – 18 Fund financial statements: Balance sheet - governmental funds 19 – 22 Reconciliation of governmental funds balance sheet to the statement of net position 23 Statement of revenues, expenditures and changes in fund balances (deficits) - governmental funds 24 – 25 Reconciliation of the statement of revenues, expenditures and changes in fund balances of governmental funds to the statement of activities 26 Statement of net position – enterprise funds 27 – 28 Statement of revenues, expenses and changes in net position – enterprise funds 29 Statement of cash flows – enterprise funds 30 – 31 — Notes to basic financial statements 32 – 72 Required supplementary information: Other postemployment benefit plan 73 Iowa Public Employees' Retirement System: Schedule of the City's proportionate share of the net pension liability 74 Schedule of City contributions 75 Notes to required supplementary information – !PERS pension liability 76 – 77 Municipal Fire and Police Retirement System of Iowa: Schedule of the City's proportionate share of the net pension liability 78 Schedule of City contributions 79 -- Notes to required supplementary information – MFPRSI pension liability 80 Budgetary comparison schedule – budget and actual (modified cash basis) – all governmental funds and proprietary funds 81 – 82 Note to required supplementary information - budgetary reporting 83 Schedule of comparison – funds statements (GAAP basis) to budgetary (modified cash) basis 84 – 87 Supplementary information: Schedule of revenues, expenditures and changes in fund balances – General 88 – 98 Fund Nonmajor governmental funds: Combining balance sheet 99 Combining schedule of revenues, expenditures and changes in fund balances 100 Nonmajor special revenue funds: Fund descriptions 101 Combining balance sheet 102 – 103 Combining statement of revenues, expenditures and changes in fund balances 104 – 105 Contents Financial Section (continued) Supplementary information (continued): Capital projects funds: Fund descriptions Combining balance sheet Combining schedule of revenues, expenditures and changes in fund balances (deficit) Fiduciary funds, fund descriptions Agency Fund, statement of changes in assets and liabilities 106 107 — 108 109 - 110 111 112 Statistical Section (Unaudited) Statistical section contents 113 Net position by component 114 Changes in net position 115 — 116 Fund balances, governmental funds 117 Changes in fund balances, governmental funds 118 Assessed and taxable value of property 119 Property tax rates 120 Principal taxpayers 121 Property tax levies and collections 122 Ratios of outstanding debt by type 123 Ratios of general bonded debt outstanding 124 Direct and overlapping governmental activities debt 125 Legal debt margin information 126 Sewer revenue bond coverage 127 Demographic and economic statistics 128 Principal area employers 129 Full-time equivalent city government employees by function/program 130 Operating indicators by function/program 131 — 132 Capital asset statistics by function/program 133 Financial Assistance Section Schedule of expenditures of federal awards Notes to schedule of expenditures of federal awards Summary schedule of prior audit findings Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards Report on compliance for the major federal program and report on internal control over compliance Schedule of findings and questioned costs Corrective action plan 134 — 136 137 — 138 139 140 — 141 142 — 143 144-146 147 ii CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 SUZY SCHARES • City Clerk MICHELLE WEIDNER, CPA • Chief Financial Officer Mayor BUCK CLARK December 18, 2015 COUNCIL Members of the City Council MEMBERS and Citizens of the City of Waterloo, Iowa DAVID JONES Ward l -- CAROLYN COLE Ward 2 r r. ANNIE HAROLD GETTY Ward 3 QUENTIN M. HART Ward 4 RON WELPER Ward 5 BOB GREENWOOD At -Large STEVE SCHMITT At -Large We are pleased to present the Comprehensive Annual Financial Report of the City of Waterloo, Iowa (the "City") for the fiscal year ended June 30, 2015 in accordance with the provisions of Chapter 11 of the Code of Iowa. This report represents the thirteenth consecutive year that the financial statements are presented in conformity with Governmental Accounting Standards Board Statement # 34 and the nineteenth consecutive time that it has been presented in accordance with generally accepted accounting principles. It has also been audited by an independent certified public accounting firm in accordance with generally accepted auditing standards and the single audit act requirements of the U.S. Office of Management and Budget (OMB) Circular A-133, "Audits of States, Local Governments, and Nonprofit Organizations". RSM US LLP issued an unmodified ("clean") opinion on the financial statements for the year ended June 30, 2015. This report is published to provide the City Council, financial institutions and citizens detailed information concerning the financial condition of the City of Waterloo. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Management assumes this responsibility based on a comprehensive framework of internal control established for this purpose. 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. Management therefore believes the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. Management is required to provide a narrative introduction, overview and analysis of the basic financial statements, known as Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A, found at pages 3 through 14 and should be read in conjunction with it. The information presented in the Statistical Section contains information that management believes that readers of the financial statements will find useful for understanding City operations. WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer THE CITY'S BACKGROUND AND SERVICES Waterloo is the sixth largest city in the state of Iowa, with a 2010 census of 68,406. The City was incorporated in 1868 and is the county seat of Black Hawk County. Waterloo and the neighboring City of Cedar Falls are the primary urban centers in the region. The City operates under a Mayor — Council form of government, with the mayor as the elected chief executive. The City Council is comprised of seven members, five of whom are elected from separate wards and two who are elected at -large. The Mayor is elected to two-year terms, and the City Council members are elected to four-year staggered terms. The City of Waterloo provides a full range of municipal services to its citizens and is organized into 20 operating departments, the activities of which are directed by the Mayor. The public services provided by the employees of the City include police and fire protection, building inspections and animal control, the construction and maintenance of highways, streets and other infrastructure through the planning, engineering, street maintenance and traffic safety departments and recreational and cultural and arts services provided through the library, leisure services, and cultural and arts departments. The City also provides solid waste collection and wastewater treatment services and operates a regional airport. Various other human services are provided through the community development, housing and human rights departments. In addition, the central garage provides vehicle maintenance services, while the human resources and management information systems departments, city attorney, city clerk and chief financial officer and their respective departments perform various administrative functions. Funds, agencies, boards, commissions, trusts and authorities involved in the provision of municipal services must be included in the City's financial reporting as component units if the City is financially accountable for them. Although the Waterloo Water Works and the Waterloo Convention & Visitors Bureau, Inc. are operated as independent entities, they do meet the requirements to be considered component units of the City, and therefore, transactions of these entities are required to be included in this report. The Waterloo Community School District and the Metropolitan Transit Authority do not meet the established criteria for component entities of the City and are therefore not included in this report. MAJOR INITIATIVES AND PROJECTS The City has undertaken a number of major improvement initiatives. Brief descriptions of these major projects are described below. D Cedar Valley SportsPlex The Cedar Valley SportsPlex, a 125,000 square -foot recreational facility located in downtown Waterloo that includes such things as indoor soccer fields, gyms, a leisure pool and slide, fitness facility, running track and multi-purpose activity spaces, opened in January 2014. Construction of this $23 million building was completed using private donations and gaming grants. It was built on a 1.5 -block area downtown. Several vacant and flood -damaged buildings were acquired and demolished by the City to redevelop this site. This venue is spurring activity in the downtown area. iv ➢ Cedar Valley Riverfront Renaissance The Riverfront Renaissance project was a major project that utilized state "Vision Iowa" funds, as well as private funds, local funds, and partnerships with other businesses to create three major objectives: o The RiverWalk Loop — a walking and recreational trail system along the banks of Cedar River from 1St Street to 18th Street in Downtown Waterloo. This "loop" interconnects with the overall trail system of the Cedar Valley (over 100 miles total) and is a part of the American Discovery Trail system through Iowa. o The Cedar River Dam improvements — an inflatable bladder dam system that improved boatable recreational water depth upstream of the dam at 4th Street. It was designed to allow for a potential kayak course in the future, which is now _ under preliminary design. o The Riverfront Amphitheater — hosting President Barrack Obama, various concerts, Friday Loo celebrations, and the local municipal band, this space has become a popular destination for many activities, and is bringing more residents and visitors to downtown Waterloo and the riverfront. Additionally, the Center for the Arts Youth Pavilion, the Veterans addition to the Grout Museum and the construction of the East Side Ministerial Alliance Community Center were all leveraged by this project. ➢ Significant Brownfields Redevelopment A new 160,000 square -foot City Public Works building is open on the site of a former manufacturing company that burned. The City received several grants to redevelop the former Construction Machinery Company site (CMC) and utilized those funds to demolish the unsafe fire -damaged buildings, remove underground rail cars previously used for environmental dumping, and acquire one 25,000 square -foot building for redevelopment. The site is enrolled in the Iowa Department of Natural Resources Land Recycling Program. In addition to redeveloping a Brownfield site, the facility consolidated many public works functions and provides more efficient and effective operations for the City. The City was awarded $5 million in state I -Jobs funding and $1 million in funds from the Black Hawk Gaming Association for this $9 million project. The City also completed the demolition of more than ten acres of buildings on the former Chamberlain Manufacturing complex site. Demolition of the concrete slab foundations was substantially completed during the fiscal year ended June 30, 2014. Chamberlain, the company that formerly operated Chamberlain Manufacturing, is working with the EPA to address potential pollution remediation needs at the site as well. As the work on environmental testing continues to show evidence of progress, the City will continue to work towards additional cleanup and redevelopment activities. ➢ Street Improvements The street system continues to be kept in repair with a substantial program of reconstruction, overlays and long-term repairs funded with approximately $9.5 million in annual local option sales tax collections. The one -cent local option tax was renewed in November 2013 by the taxpayers for another ten years, continuing to be required to be used for street repairs and improvements. Other major construction initiatives that are V primarily funded with grants include the reconstruction of Highway 63 through the northern part of the city. The first segment of Highway 63 is open and design continues for other segments. Additionally, $7 million has been invested in traffic flow improvements to Kimball Avenue, which is now substantially complete. The initial paving and construction of Shaulis Road in the southern part of the city and the reconstruction of East Donald Street on the north side of the city have also been completed. ➢ Recreational Facilities The City is also continuing to develop its extensive system of bike trails, which are being connected to countywide and regional trail networks, creating a system of more than 117 miles of trails. The Riverwalk Loop trail in downtown Waterloo has been completed and a new trail has been constructed along the newly constructed Shaulis Road connection from Highway 21 to Highway 63. A recreational area for all -terrain vehicle trails has been developed in the Riverview neighborhood, along with new picnic shelters, fishing jetties and walking trails. A new trail around Getty Lake is nearly complete. Many improvements have been made to Riverfront Municipal Stadium, the city's baseball facility, over the past several years and bids are currently being accepted for a new video board/scoreboard for the stadium to be installed this winter. Riverfront Sports Park has been developed next to the baseball stadium with many improvements including irrigation, field renovations, electronic scoreboards, new and improved field lighting and new dugouts. Similar improvements are being made to baseball facilities at Tibbitts and Danes baseball complexes. The new RiverLoop Amphitheatre and Mark's Park children's splash park are drawing crowds to the downtown riverfront. A new LED video board and sound system have been installed at Young Arena, in addition to other facility improvements made to the facility by the Black Hawks Hockey team, a member of the United States Hockey League. Sans Souci Island, a FEMA flood buyout site on the banks of the Cedar River, has been opened to the public for hiking, fishing and picnicking. A new Tennis Center concessions and restroom building has been constructed at Byrnes Park and a new play equipment system has been installed at Gates Park. > Storm Water Pump Stations As a result of the severe flooding that occurred in 2008, the City pursued and was awarded $17 million in funding to construct eight storm water pump stations. Construction of five of the pump stations is now complete and the remaining three are also substantially complete. The pump stations will allow the City to weather future flooding with less impact on both private and public property. ECONOMIC OUTLOOK The economy of Waterloo and the Cedar Valley area remains positive with continued commercial and industrial activity, despite a reduction in work force by Deere. The regional economic development corporation, the Greater Cedar Valley Alliance, continues to work to spur development in Waterloo as well as the entire metropolitan area. Building permit valuation declined slightly to $100.2 million compared to $101.7 million during the fiscal year ended June 30, 2014. Residential real estate values have continued to trend upward. The median sales price for homes in the Waterloo -Cedar Falls area has increased by 30% since 2004 (an annual average growth rate of 3.0%). Home values appreciated with the median sales price increasing (8.7%) at vi June 30, 2015 compared to June 30, 2014. Residential construction activity was sound during the past year, with permits for 129 new units, although lower than the 216 permits that were taken out during the record-breaking year ended June 30, 2014. Waterloo is a regional retail center for Black Hawk and surrounding counties. Although retail sales slowed slightly during the year ended June 30, 2014, sales have increased steadily by an annual average rate of approximately 1.7% in Waterloo during the ten years ended June 30, 2014 (the most recent period for which statistics are available). Retail sales in 2004 totaled $954 million and increased to $1.12 billion for the fiscal year ended June 30, 2014 (the most recent information available). The 2010 census reflected a slight population decline of 0.4% from 2000. Although Waterloo has not returned to the population levels of the seventies (prior to the major disruption in the farm economy), the official decrease in population for this decade is insignificant in relation to the total population. The overall city tax base has remained stable, reflecting an average annual level of approximately 0.6% for the last five years. The City has developed a more diverse employment base since the mid -seventies, although John Deere and Company continues to play a major role in the local economy. Deere (a Fortune 100 company) remains the city's largest employer and one of the larger taxpayers, currently accounting for about 6.5% of total county employment but 2% of total property values. Deere has invested $915 million in its Waterloo area facilities since 2010, including the Westfield advanced manufacturing facility and the Waterloo Foundry, now the largest electric foundry in the state. Deere's staff levels in Waterloo have grown by 34% over the past several years and reflect net growth even with the lay-off of nearly 1,000 employees during the past year. The Company has continued to experience record-setting performance years recently. The city's average unemployment level of 4.8% (at September 30, 2015) remains above the state level of 3.6%, although it is below the national level for September 2015 of 5.1%. The Isle Casino Hotel Waterloo continues to provide a stable, strong revenue source for the City. The Isle employs nearly 600 Iowans and generates approximately $860,000 in annual City property taxes. The City receives a host city fee of 0.5% of weekly adjusted gross receipts in addition to an annual development fee of 1% of weekly adjusted gross receipts from the Isle. The City also continues to benefit from the one -cent local option tax for school construction. Nearly all school buildings in the city have been replaced with new construction or renovated to better address students' learning needs. The City of Waterloo and the Waterloo Community Schools have been working in partnership for the development and redevelopment of former school buildings and sites to be used for infill residential development, helping the City to reinvigorate existing neighborhoods with new construction, adding new tax base to the community without the expense of additional infrastructure, and utilizing land for its highest and best use. The City and School District have demolished six dilapidated former school buildings in recent years. The sites are being redeveloped into residential neighborhoods, with 26 new single family homes now completed, 2 under construction, and approximately 20 more planned. The Cedar Valley TechWorks is creating a multi -use campus that includes space for the creation and commercialization of advanced manufacturing processes and technology, as well as potential retail development. This will help leverage the region's existing advanced manufacturing base. The Cedar Valley TechWorks has received several grants to develop the site. The construction of a new extension to West Commercial Street has opened a new route to the Tech Works Campus and Downtown Waterloo. Storm water improvements were also made to aid in the development of the TechWorks complex. One of the largest 3-D printers in the nation was recently installed at the TechWorks and is being used in manufacturing. The John Deere Engine and Tractor Museum VII opened to the public in December 2014 on the TechWorks campus and is expected to bring 200,000 visitors to downtown annually. In addition, a $50 million project has been announced to redevelop a former Deere factory building into a hotel and training complex. The City of Waterloo received approval from the State of Iowa Economic Development Authority to establish an Iowa Reinvestment District that will allow the City to capture a portion of the sales and hotel/motel tax generated within the District to be used to finance projects within the district. The City of Waterloo acquired and demolished a former hotel building on the southern side of the Tech Works site to add more than four acres of new land near Downtown Waterloo for development purposes. A local developer has begun construction on a $9 million, 72 -unit multi story residential condominium project for the first of three phases of development on the site. The City and the Iowa Department of Transportation have undertaken a project to reconstruct Highway 63 through downtown Waterloo, which has resulted in the appropriation of $11,500,000 in federal funds and over $8 million in State funds to complete the design and initiate construction. The primary goals of this project are to correct the highway's current negative impact on adjacent low income and minority -populated communities, improve traffic operations and capacity and encourage private sector development along this corridor. Construction of the first segment is now complete, with two more phases to follow in the next few years. The Avenue of the Saints provides access north through Minneapolis and south through St. Louis, while Highway 20 provides access east through Chicago and west through Sioux City. The City will use over $8.7 million in federal roads funds allocated to the local urban area by the Metropolitan Planning Organization to make additional improvements, including trails and pedestrian accommodations, along the newly renovated highway system. The City continues to see healthy private investment in the community. Major projects underway include the following: ➢ A $60 million expansion by Con Agra Foods is under construction, adding a David's Sunflower Seeds product line to the existing Snack Pack pudding product line, bringing an additional 52 high -paying jobs to the community. Several additional buildings are also under construction in this area, located on the newly constructed Geraldine Road extension. > More than 500 lots are being platted for future residential development. > Commercial development exceeding $10 million is being planned near the Highway 63 and Highway 20 Interchange area, including a Love's Travel Stop, an expansion by Hawkeye Stages, an existing local business, and a multi -use commercial building. > The VGM Group, which currently employs more than 800 people in the area, is currently constructing a 74,000 square -foot professional office building designed to provide space for another 250-300 employees. This expansion will also provide additional lots for further office campus development through the extension of two roads. ➢ The redevelopment of public spaces in downtown Waterloo has resulted in several new private projects, including the renovation of a former Wonderbread bakery building into a microbrewery with retail and pub space and a number of upper floor renovations underway for more residential housing in various buildings. KWWL, the local television station, is renovating a multi -story historic building downtown as well. viii NMI FINANCIAL MANAGEMENT INFORMATION Internal Controls - City management is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute assurance that those objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls - The City's management staff is responsible and is actively involved in the financial planning and management of the City for both short-term daily operations and long- range strategic planning. The objective of established budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council, as well as the budget control procedures mandated by the State of Iowa for the prevention of spending that would lead to negative fund balance. Budgetary control is exercised at two levels in compliance with both the requirements of the Code of Iowa and the City Council's adopted policies. Management control polices adopted by the City Council require that departmental and activity budgets comply with line -item appropriations. Amendments exceeding de minimus guidelines require the specific approval of the City Council Finance Committee. The adopted policies also require most expenditures ._ exceeding $1,000 to be pre -authorized by the City Council Finance Committee, which reviews those items for budget availability and compliance with procurement procedures. aim Long-term financial and capital improvement planning are crucial strategic functions of the City. The City's management staff, coordinated by the Planning Department, prepares and presents the five-year Capital Improvement Program (CIP) to the Mayor and City Council for their review and approval annually. The CIP outlines the City's planned schedule of capital project construction over the next five-year cycle. The CIP provides an analysis of the financial funding impact and capital debt impact of the planned construction project program. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Waterloo, Iowa for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2014. This is the eleventh year that the City received this award, which is a prestigious national award, recognizing conformance with the highest standards for the preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The CAFR must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. ix a period f one year only. ent elieves A Certificate of Achievement is valid foroof Achievement programnrequbements and tthe current report continues to meet the Certificate we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been completed without the dedicated service of the entire Finance department and other City staff in addition to the RSM US LLP audit team. We want to express our appreciation to everyone who wasolved in the administ administrative of letion oa11the C Cityaudit departments,and and the preparation of this report including the especially to Joyce Schroeder, Emily Graham and Brent Bohlen in the Finance Department and the City Clerk's staff as well. Each of you has our appreciation and respect for your contributions to this report. We also want to thank the City Council for their participation in the planning and oversight processes of the City of Waterloo financial operations. Sincerely, 5fe »a) .ft1.�;� �P.ru/il Buck Clark, Michelle C. Weidner, CPA Mayor Chief Financial Officer x City of Waterloo, Iowa Officials June 30, 2015 Name Title Ernest G. Clark David Jones Carolyn Cole Patrick Morrissey Quentin Hart Ron Welper Tom Lind Steven Schmitt Michelle Weidner, CPA Suzy Schares, CMC Eric Thorson, PE James E. Walsh, Jr. David Zellhoefer Daniel Trelka Elected Mayor Council Member - 1st Ward Council Member - 2nd Ward Council Member - 3rd Ward Council Member - 4th Ward Council Member - 5th Ward Council Member - At -Large Council Member - At -Large Appointed Chief Financial Officer City Clerk City Engineer City Attorney City Attorney Director of Safety Services xi Term Expires January 2016 January 2018 January 2016 January 2018 January 2016 January 2018 January 2018 January 2016 Indefinite Indefinite Indefinite Retired December 31, 2014 Indefinite Indefinite ;—+ U C/) C N 0 0 C0 0 CITIZENS OF WATE 7:1 g ° o § e cl U • t E 0 U CY 0 (J t• -t cn • e Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Waterloo Iowa For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 Executive Director/CEO This Page Intentionally Left Blank IR Ell RSM Independent Auditor's Report RSM US LLP To the Honorable Mayor and Members of the City Council City of Waterloo, Iowa Waterloo, Iowa — Report on the Financial Statements We have audited the accompanying 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 Waterloo, Iowa (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the discretely presented component units, Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc., which collectively represent 100 percent of the assets and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component units, is based solely upon the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovemmentAuditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The financial statements of Waterloo Convention & Visitors Bureau, Inc. were not audited in accordance with GovemmentAuditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit -- opinions. THE POWER OF BEING UNDERSTOOD AUDIT 1 TAXI CONSULTING 1 RSM US LLP is the U.S. member firm of RSM International. a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. Opinions In our opinion, based on our audit and the reports of other auditors, the 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 of Waterloo, Iowa as of June 30, 2015, 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. Emphasis of Matter As explained in Note 11 to the basic financial statements, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which restated beginning net position, net pension liability and deferred outflows of resources of the governmental activities, business -type activities, the major enterprise fund and the aggregate remaining fund information. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages 3 through 14, schedule of funding progress for other postemployment benefit information on page 73, the schedule of the city's proportionate share of the net pension liability and schedule of city contributions for the Iowa Public Employees' Retirement System on pages 74 - 77, the schedule of the city's proportionate share of the net pension liability and schedule of city contributions for the Municipal Fire and Police Retirement System of Iowa on pages 78 - 80, and budgetary comparison information on pages 81 through 83 be presented to supplement the basic financial statements. Such information, 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 and other auditors 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. Other 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 accompanying combining individual and nonmajor fund financial statements and other schedules and statements, listed in the table of contents as supplementary information, and the schedule of expenditures of federal awards, as required by the U.S. Office of Management and Budget Circular A-133, Audit of States, Local Governments and Nonprofit Organizations 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. Such 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 by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the reports of the other auditors, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The accompanying introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2015 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. sn� Li LLf Davenport, Iowa December 18, 2015 2 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 As management of the City of Waterloo, we offer readers of the City of Waterloo's financial statements this narrative overview and analysis of the financial activities of the City of Waterloo for the fiscal year ended June 30, 2015. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found at pages iii - x of this report. Financial Highlights — • The assets and deferred outflows of resources of the City of Waterloo exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $396,808,283 (net position). Of this amount, the City's unrestricted net position ($20,042,942) is negative, due to recording the City's share of pension liabilities as required under the initial implementation of GASB Statement No. 68, a new accounting standard applicable for the city's participation in pension plans • The City's total net position increased by $38,898,886 compared to the restated 2014 ending net position of $357,909,397. • As of the close of this current fiscal year, the City of Waterloo's governmental funds reported combined ending fund balances of $60,377,124, a decrease of $2,028,748 in comparison with the prior year. Approximately 7.5 percent of this total amount, $4,513,109, is available for spending at the City's discretion (unassigned fund balance), although some funds are legally limited for specified purposes. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $10,224,959, or 22 percent of total General Fund expenditures. • The City of Waterloo's total long-term debt increased by $37,034,740 or 37.3 percent during the current fiscal year, due primarily to recording the city's share of net pension liabilities. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Waterloo's basic financial statements. The City of Waterloo's basic financial statements are comprised of 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 Waterloo's finances in a manner similar to a private - sector business. The statement of net position presents information about all of the City of Waterloo's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between them 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 Waterloo is improving or deteriorating. The statement of activities presents information illustrating how the government's ret 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). 3 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Both of the government -wide financial statements distinguish functions of the City of Waterloo 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 Waterloo include public safety, public works, health and social services, culture and recreation, community and economic development and general government. In addition, the convention bureau provides marketing services for tourism operated as a separate discretely presented component unit of the City. The business -type activities of the City of Waterloo include the sanitary sewer system and the solid waste system. The water utility is operated as a separate discretely presented component unit of the City. For detailed information about the Waterloo Convention & Visitors Bureau, Inc. or the Waterloo Water Works, please see their separate audited financial statements. The government -wide financial statements include only the City of Waterloo itself (known as the primary government) and its discretely presented component units, the Waterloo Water Works and Waterloo Convention and Visitors Bureau, Inc. The Waterloo Community School District and the Metropolitan Transit Authority provide services to the citizens of Waterloo 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 Waterloo, 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 Waterloo 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, 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 Waterloo maintains 20 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, Trust and Agency Fund, Grants Fund, Tax Increment Financing Fund, Local Option Tax Fund and General Obligation Debt Service Fund, all of which are considered to be major funds. Data from the other 14 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City of Waterloo maintains two proprietary funds, which are used to report the same functions presented as business -type activities in the government -wide financial statements. 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 sanitary sewer fund and the sanitation fund. The sanitary sewer fund is considered to be a major fund of the City of Waterloo. 4 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 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 statements because the resources of those funds are not available to support the City of Waterloo's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one type of fiduciary fund, an agency fund. There were no assets held in the fiduciary fund as of June 30, 2015. 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 and the other postemployment benefit plan schedule of funding progress are presented as required supplementary information immediately following the notes to the financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. -- Government -wide Financial Analysis 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 Waterloo, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $396,808,283 at the close of the fiscal year ended June 30, 2015. By far the largest portion of the City of Waterloo's net position (97 percent) reflects its investment in capital assets (e.g., land, buildings and improvements, infrastructure and vehicles and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Waterloo uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Waterloo's 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. Statement of Net Position A condensed version of the Statement of Net Position as of June 30, 2015 and 2014 follows: City of Waterloo's Net Position Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 (as restated) (not restated) (as restated) (not restated) (as restated) (not restated) Assets Current and other assets $ 120,121,950 $ 122,422,523 $ 29,940,346 $ 27,524,238 Capital assets 357,893,267 324,002,481 $ 150,062,296 $ 149,946,761 Total assets 92,799,424 91,934,831 450,692,691 415,937,312 478,015,217 446,425,004 122,739,770 119,459,069 600,754,987 565,884,073 Deferred outflows of resources 7,713,428 247 277 461,614 209,513 8,175,042 456,790 Liabilities Current liabilities 20,757,002 21,066,322 5,485,528 5,589,187 Long-term liabilities 26,242,530 26,655,509 100,914,527 67,843,915 26,287,667 21,402,599 Total liabilities 127,202,194 89,246,514 121,671,529 88,910,237 31,773,195 26,991,786 153,444,724 115,902,023 --- Deferred inflows of resources 57,884,928 44,313,058 792,094 - 58,677,022 44,313,058 Net position Net investment in capital assets 307,415,275 273,871,470 78,270,214 79,920,865 385,685,48911 333,889,570 Restricted 30,438,501 30,579,471 727,235 1,310,099 31,165,736 31,889,570 Unrestricted (31,681,588) 8,998,045 11,638,646 11,445,832 20,43,77 Total net position $ 306,172,188 $ 313,448,986 $ 90,636,095 $ 92,676,796 $ 396,808,283) $ 406,125,782 5 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 $30,438,501 of the City of Waterloo's net position (9.9 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($31,681,588) is a negative position, due to the implementation of GASB Statement No. 68, which required the City to record net pension liabilities for the city's share of liabilities in the IPERS and MFPRSI pension plans. At the end of the current fiscal year, the City of Waterloo reported positive balances in all three categories of net position for the government as a whole. The separate governmental activities had positive balances in the net investment in capital assets and fund balances restricted for specific purposes. Business -type activities also reported positive balances in all categories. The same situation held true for the prior fiscal year. The City's total net position increased by $38,898,886 during the current fiscal year from the restated 2014 net position of 357,909,397. Governmental -type activities' net position increased by $38,440,870 from the restated 2014 net position of $267,731,318. This increase was largely related to the net effect of capital asset transactions. See page 26 for a reconciliation of this increase. The total business -type activities' net position increased by $458,016 from the restated 2014 net position of $90,178,079. This increase was due primarily to capital asset and related debt transactions. Statement of Activities A condensed version of the Statement of Activities as of June 30, 2015 and 2014 follows: City of Waterloo's Changes in Net Position Business -Type Activities Total Governmental Activities 2014 2015 2014 2015 2014 2015 (as restated) (not restated) (as restated) (not restated) (as restated) (not restated) Revenues: Program revenues: Charges for services $ 11,545,698 $ 11,145,858 $ 16,246,872 $ 16,454,801 $ 27,792,570 $ 27,600,659 Operating grants and contributions 11,335,064 11,938,221 298,560 272,755 11,633,624 12,210,976 Capital grants and 39,116,737 12,668,122 contributions 39,116,737 12,668,122 General revenues: 44,585,915 Property taxes 45,514,979 44,585,915 45,514,979 17 571 979 16,745,434 Other taxes 17,471,721 16,745,434 6,74,34 Other 1,288,756 2,865,983 41,425 25,122 1,330,181 Total revenues 126,272,955 99,949,533 16,586,857 16,752,678 142,859,812 116,702,211 Expenses: Public safety 25,988,767 31,773,269 25,988,767 31,773,269 _ 29,570,277 28,531,525 Public works 29,570,277 28,531,525325,607 533,25 Health and social services 325,607 293,173 Culture and recreation 11,676,287 11,265,704 11,676,287 11,265,704 Community and economic 12,910,299 development 13,190,672 12,910,299 13,190,672 _ 4,869,696 2,111,172 General government 4,869,696 2,111,172 4,869,696 2,349,054 Interest on long-term debt 2,208,744 2,349,054 _- 12,518,569 10,503,929 12,518,569 10,503,929 Sanitatsewer 3,612,307 3,667,163 3,612,307 3,667,163 Sanitation Total expenses 87,830,050 89,234,196 16,130,876 14,171,092 103,960,926 103,405,28 8 Increase in net position before transfers 38,442,905 10,715,337 455,981 2,581,586 38,898,886 13,296,923 Transfers (2,035) 2,035 38,440,870 10,715,337 458,016 2,581,586 38,898,886 13,296,923 Neinet position 90,178,079 90,095,210 357,909,397 392,828,859 Nettposposition, being 267,731,318 302,733,649 396,808,283 $ 406,125,782 Net position, ending $ 306,172,188 $ 313,448,986 $ 90,636,095 $ 92,676,796 $ 6 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Total governmental activities' revenue for the current fiscal year was $126,272,955. The largest single revenue source for the City was property taxes of $45,514,979. Property taxes decreased by $929,064 (2.1 percent) during the year. This decrease is a result of a combination of factors, including a reduction in the assessed value of property of 3.2 percent, a reduction of 1.7 percent in the taxable value of property and an increase of 2.62 percent in the levy rate. Certain revenues are generated that are specific to governmental program activities. These totaled $61,997,499 during the fiscal year ended June 30, 2015. The graph below illustrates the comparison between the expenses by governmental activity type and the revenues generated that are specific to those activities. Expenses and Program Revenues— Governmental Activities $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Public safety Public works Health and Culture and social recreation services MIL Community General Interest and and government issuance economic costs on development long-term debt ■ Expenses I Revenues The graph below shows the percentage of the total governmental revenues allocated by each revenue type. Revenues by Source - Governmental Activities Other 1% Other Taxes -� 14% Property Taxes 36% Charges for services 9% 7 Operating Grants and Contributions I 9% Capital Grants and Contributions 31% City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Total business -type activities' revenue for the fiscal year was $16,586,857. $16,545,432 of this revenue was generated for specific business -type activity expenses. The graph below shows a comparison between the business -type activity expenses and program revenues. Expenses and Program Revenues - Business -Type Activites $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Sanitary Sewer Sanitation ■ Expenses ■ Revenues The graph below shows the breakdown of revenues by source for the business -type activities. Revenues by Source - Business -Type Activities Operating Grants and Contributions 2% 8 Charges for services 98% City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Business -type activities. Business -type activities increased the City of Waterloo's net position by $458,016 from the 2014 restated net position of $90,178,079, accounting for 1.2 percent of the growth in the City's net position. This increase was due primarily to the generation of operating revenue that was used for the construction of mandated sewer system improvements and to repay related debt. Actual operating revenue was slightly less than expected, due primarily to less use by industrial customers. Capital expenses were less than planned, resulting in additional cash held at June 30, 2015. Financial Analysis of the Government's Funds As noted earlier, the City of Waterloo uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Waterloo's 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 Waterloo's 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 Waterloo's governmental funds reported combined ending fund balances of $60,377,124, a decrease of $2,028,748 in comparison with the prior year. Fund balance in the amount of $55,864,015 is not available for new spending because it is nonspendable or has already been restricted, committed or assigned for a variety of purposes. Approximately 7.5 percent of total fund balance or $4,513,109, constitutes unassigned fund balance. The General Fund is the chief operating fund of the City of Waterloo. At the end of the current fiscal year, unassigned fund balance of the General Fund was $10,224,959, while total fund balance was $24,506,394. 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 22 percent of total General Fund expenditures, while total fund balance represents 53 percent of that same amount. Net general fund operations resulted in an increase in unassigned fund balance of $40,078 for the year. Several items contributed to this increase. Significant savings in health care costs were realized during the year ended June 30, 2015. A portion of this savings (approximately $1 million) was due to charges to departments being less than the amount originally budgeted. Overall general fund revenue was less than budgeted. Parking revenue was $60,000 less than expected. Golf revenue was $164,000 less than expected. Sports activity revenue was $26,000 less than budgeted and Young Arena revenue was $27,000 less than budgeted. Central garage revenue for fuel sales to other entities was under budget by $90,000. Police fine revenue was $26,000 less than expected. Parks revenue was $50,000 more than expected, due to receiving a FEMA reimbursement for operating expenses paid in prior years. The building inspections department realized $60,000 more revenue than was budgeted. The Center for the Arts also realized more revenue than was budgeted by $73,000. The City originally budgeted for no change in unassigned fund balance for operations for the budget year ended June 30, 2015. However, $500,000 was budgeted to be used for operations for the budget year ending June 30, 2016.This amount was included in assigned fund balance at June 30, 2015, reducing unassigned fund balance at June 30, 2015. Other variances in actual departmental performance versus amounts budgeted resulted in a net increase in fund balance of $40,078. Trust & Agency Fund— The net increase in fund balance during the current year was $12,421, resulting primarily from unemployment expense being less than budgeted. 9 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 The General Obligation Debt Service Fund—The net decrease in fund balance of $464,326 during the current year is largely due to the planned use of refunding savings received in prior years to reduce property taxes levied. Property tax protest settlements was also a factor. The Grants Fund—Although several large grant -funded projects were under construction during the year for which grant reimbursements were not received by year-end, the amount of reimbursements due was lower at June 30, 2015, reducing the temporary deficit fund balance by $102,631. TIF Fund—The total fund balance of $5,166,368 is restricted for the payment of debt service related to tax increment financing district projects. The net increase in fund balance during the current year was $2,453,860 and is the result of timing differences between revenue collections and the payment of TIF obligations. Local Option Tax Fund – The net decrease in fund balance of $2,362,105 is due to a second year of good construction weather that allowed significantly more work to be completed on contracts in the current year. Proprietary funds. The City of Waterloo's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Total net position of the sanitary sewer fund at the end of the year was $85,811,216, an increase of $200,138 from the restated 2014 net position of $85,611,078. This increase was due primarily to the continued investment in the construction of mandated sewer system improvements using bond funds sold in prior years. Other factors concerning the finances of the sanitary sewer fund have already been addressed in the discussion of the City of Waterloo's business -type activities. Budgetary Highlights In accordance with the Code of Iowa, the City Council annually adopts a budget on the modified cash basis following required public notice and hearing for all 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 and non -program. Function disbursements required to be budgeted include disbursements for the general fund, special revenue funds, debt service fund, capital projects funds and permanent funds. Although the budget document presents function disbursements by fund, 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 Waterloo are summarized below. 10 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 The total original expenditure budget including transfers out of $163,717,006 was increased to $171,732,988 (an increase of $8,015,982). • The City added project budgets for several Public Safety department grants and expenses funded with other miscellaneous revenue that were approved after the original budget certification date as well as increased expenditures for the animal control activity ($0.1 million). • The City amended the budget for an air service development project at the airport as well as adding FAA grant carryover for construction projects at the airport that continued longer than originally expected into FY2015 ($0.9 million). • Expenditures were increased for additional grants and donations received for Leisure Services, Cultural/Arts and the Library ($0.4 million). • The City increased expenditures to reflect additional federal HOME grant funds and disaster recovery grant funds for a multi -family new as well as reflect additional maintenance expenses for city owned property ($0.7 million). • The City amended the budget due to increased expenditures for liability insurance, workers compensation and medical claims ($1.1 million). • Expenditures were increased for capital projects approved for design and construction after the original budget certification date and also to reflect work completed during the current year on capital projects that were originally included in the prior year budget ($4.5 million). • The City increased the budget to fund sanitary sewer operations ($0.3 million). The total original revenue budget, including other financing sources of $157,746,893 was increased to $160,812,703 (an increase of $3,065,810). • State and federal grant revenue was increased to reflect several additional grants awarded after the original budget certification for such things as public safety projects, airport improvements, parks improvements, and a multi -family housing project, as well as others ($1.7 million). • Amendments were made to various miscellaneous charges for services to reflect higher revenues than originally anticipated with the certified budget ($0.2 million). • Donation revenue was increased to reflect additional donations received from Black Hawk Gaming as well as other entities for various City projects ($1.0 million). • The City amended the original budget for sales proceeds to reflect additional proceeds expected from the sale of property ($0.1 million). See pages 81 through 87 for the Budgetary Comparison Schedule - Budget and Actual (Modified Cash Basis) — All Governmental Funds and Proprietary Funds. 11 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Capital Asset and Debt Administration Capital Assets. The City of Waterloo's investment in capital assets for its governmental and business - type activities as of June 30, 2015, amounts to $450,692,691 (net of accumulated depreciation) as reflected in the following table. The total increase in the City of Waterloo's investment in capital assets for the current fiscal year was 8.4 percent (a 10.5 percent increase for governmental activities and a 0.9 percent increase for business -type activities). This investment in capital assets includes land, buildings and improvements, park facilities, vehicles and equipment, and roads, highways and bridges (also referred to as infrastructure assets) placed in service since July 1, 1980. City of Waterloo's Capital Assets at Fiscal Year End (Net of Depreciation) Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 Land $ 43,387,370 $ 40,638,156 $ 348,055 $ 348,055 $ 43,735,425 $ 40,986,211 Land held for redevelopment 7,778,851 8,048,966 - 7,778,851 8,048,966 Buildings and improvements 73,455,495 53,440,645 49,108,792 50,512,767 122,564,287 103,953,412 Other improvements - - 34,767,577 31,664,375 34,767,577 31,664,375 393,569 423,419 3,988 7,976 397,557 431,395 Software _ 202,119,561 197,152,848 Infrastructure 202,119, 561 197,152,848 Furniture, vehicles, machinery and equipment 11,263,856 10,580,119 4,371,629 4,335,545 15,635,485 14,915,664 Construction -in -progress 19,494,565 13,718,328 4,199,383 5,066,113 23,693,948 18,784,441 $ 357,893,267 $ 324,002,481 $ 92,799,424 $ 91,934,831 $ 450,692,691 $ 415,937,312 Major capital assets events during the current fiscal year included the following: • The City continued to acquire land and buildings in the Downtown Master Plan Redevelopment Area as well as the San Marnan and Mid port TIF Districts for continued economic development ($2.7 million). • Buildings and improvements completed ($2.1 million) included a new public works salt storage facility, replacement of the Byrnes Park Tennis Center, new dehumidification system at Young Ice Arena and replacement of the Runway Lighting Vault at the Waterloo Regional Airport. • The city invested $2.9 million into new vehicles, equipment, computers and software for various city departments. The most significant of these included a new fire truck, snow removal equipment for the airport and replacement of various mowing and maintenance equipment for the city's golf courses. • Significant investments in street construction, reconstruction and overlay programs funded with local option taxes and grants were completed ($9.3 million) and transferred to infrastructure assets. Another $4.5 million in storm water and flood protection improvements were completed and transferred to infrastructure assets, including a new lift station at Blowers Creek. An additional $7.5 million was invested in new street construction, repair of existing streets and construction of storm water improvements still in progress at June 30, 2015. • The City invested $0.6 million in new vehicles and equipment for the sewer and sanitation departments as well as added $4.0 million in sanitary sewer and storm sewer infrastructure. An additional $1.2 million was invested in sanitary sewer and storm sewer construction still in progress at June 30, 2015. Additional information about the City of Waterloo's capital assets can be found in Note 6 of this report. City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Long-term liabilities. At the end of the current fiscal year, the City of Waterloo had total bonded debt outstanding of $93,455,000. Of this amount, $92,740,000 is comprised of debt backed by the full faith and credit of the government. The remainder of the City of Waterloo's bonded debt ($715,000) represents bonds secured solely by specified revenue sources (i.e., revenue bonds). The City has incurred other debt to construct Ridgeway Towers, purchase land in the City's industrial parks and complete projects, as well as purchase equipment. The City has obligations to employees for benefit time not used at fiscal year-end. During the current fiscal year the balance due on these obligations decreased by $36,214,740. Bonded Debt: .... General obligation bonds $ 67,066,200 $ 68,505,400 Revenue bonds $ 25,673,800 $ 22,219,600 $ 92,740,000 $ 90,725,000 Total bonded debt 715,000 1,910,000 715,000 67,066,200 68,505,400 1,910,0003 26,388,800 24,129,600 93,455,000 92,635,000 Governmental Activities Business -Type Activities City of Waterloo Long-term Outstanding Debt 2015 2014 Total 2015 2014 2015 (as restated) (not restated) (as restated 2014 (not restated) (as restated) (not restated) Other Debt: Loans and notes Deferred compensation Compensated absences Net pension liability - IPERS Net pension liability - MFPRSI Total other debt Total long-term debt 2,061,316 6,441 4,035,007 7,631,561 26,777,406 2,282,005 18,958 3,917,953 2,061,316 2,282,005 5,781 6,441 24,739 294,799 315,195 4,329,806 4,233,148 1,948,102 9,579,663 26,777,406 40,511,731 6,218,916 2,242,901 320,976 42,754,632 6,539,892 outstanding $ 107,577,931 $ 74,724,316 $ 28,631,701 $ 24,450,576 $ 136,209,632 $ 99,174,892 The City of Waterloo's total long-term liabilities increased by $37,034,740 (37.3 percent) during the current fiscal year, due to recording the net pension liabilities due for the IPERS and MFPRSI retirement plans. The government issued general obligation bonds in the amount of $14,000,000 during the current fiscal year; $8,000,000 for general purposes and $6,000,000 for sewer projects. The City of Waterloo maintains an Aa2 rating from Moody's Investor Services, Inc. for general obligation debt and an Aa3 rating for sewer revenue debt. 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 Waterloo is $181,167,349, which is significantly greater than the City of Waterloo's outstanding general obligation debt ($92,442,457) and other debt subject to debt limitation ($2,061,307). The total debt subject to this limitation is $94,503,764, resulting in available debt margin of $86,663,584. Additional information about the City of Waterloo's long-term liabilities can be found in Note 9 of this report. 13 City of Waterloo, Iowa Management's Discussion and Analysis For Fiscal Year Ended June 30, 2015 Economic Factors and Next Year's Budgets and Rates Property taxes provide 45 percent of General Fund revenues. Over the past five years, citywide assessed valuations have risen an average of 0.6 percent annually, while property tax regulations imposed by the State of Iowa resulted in taxable values increasing by an average of 1.7 percent over that same time period. The fiscal 2016 budget reflects total property tax and utility excise tax revenue to decline by 1.8 percent. State property tax reform added a provision that the state would replace property tax revenue lost due to the implementation of a new reduction in taxable value of commercial and industrial properties. The City budgeted to receive $1.8 million in property tax replacement payments. The franchise fee of 2 percent for gas and electric utilities that was implemented effective July 1, 2013 to diversify revenue sources was increased to 3 percent effective July 1, 2014. This revenue source is expected to generate June 30, s re approximately thetClt $3 million illtorevenue for the year use $500 000 in general fuund reserves O16. As discussed for general operations vforere in the year report, the City budgeted ended June 30, 2016. Personnel costs make up a significant portion of City operating costs. Wage increases identified in contractual bargaining agreements are 3 percent for fiscal year 2016. The employer contribution rate required for the Municipal Fire and Police Retirement System decreased by 8.7 percent, while the contribution rate for the Iowa Public Employees Retirement System remained at the same rate as the prior year. After many years of increases in health care costs, the anticipated health care costs for the year ending June 30, 2016 are expected to decline. Federal and state mandates for clean water continue to result in additional costs both for sewer system users and property taxpayers. The current national economic environment continues to have an impact on the local economy, although to a lesser degree through the date of this report. Sales tax revenue is expected to be stable. Residential property values remain at a stable level. These factors were considered in preparing the City of Waterloo's budget for fiscal year 2016. Requests for Information This financial report is designed to provide a general overview of the City of Waterloo's finances for all those with an interest in the government's finances. Questions concerning any of the information provided C thisA,report ior nancguests ial Officer, City of Waterloo, additional financial information should be 715 Mulberry St eet, Watterloo addressed 507031e C. Weidner, CPA, Chief 14 This Page Intentionally Left Blank City of Waterloo, Iowa Statement of Net Position June 30, 2015 Assets Current assets: Cash and cash equivalents Investments Receivables Customer accounts, net of allowance for uncollectible accounts Property taxes: Delinquent Succeeding year Internal accounts Due from other governments: Component unit Primary government Other Miscellaneous Accrued interest Special assessments Assets held for sale Inventories and prepaids Total current assets Primary Government Governmental Business -Type Activities Activities Total Waterloo Convention Waterloo & Visitors Water Works Bureau, Inc. $ 43,718,657 $ 9,985,028 $ 53,703,685 $ 5,391,624 $ 304,461 430,020 431,498 2,895,965 3,402,903 6,298,868 1,638,195 444,766 444,766 44,531,570 - 44,531,570 (38,704) 38,704 1,096,935 1,096,935 13,309,192 30,585 13,339,777 55,750 - 55,750 12 - 12 105,165 246,326 351,491 96,867 - 96,867 622,661 20,896 643,557 303,435 1,886 1,055 623,522 11,722 105, 741, 901 14, 821, 377 120,563,278 8,085,247 1,052,171 Noncurrent assets: Restricted assets: Cash and cash equivalents 14,072,477 15,118,969 29,191,446 Investments - - 149,980 99,634 Receivables 15,690 15,690 - Loans and notes, net of allowance for uncollectible amounts 52,000 52,000 Special assessments 239,882 - 239,882 281,154 - Capital assets, net of accumulated depreciation 287,232,481 88,251,985 375,484,466 24,085,061 67,407 Capital assets not being depreciated 70,660,786 4,547,439 75,208,225 1,206,431 - Total noncurrent assets 372,273,316 107,918,393 480,191,709 25,722,626 167,041 Total assets 478,015,217 122,739,770 600,754,987 33, 807, 873 1,219,212 Deferred Outflows of Resources Pension related amounts 7,713,428 411,885 8,125,313 Deferred charge on refunding 49,729 49,729 Total deferred outflows of resources 7,713,428 461,614 8,175,042 See Notes to Basic Financial Statements. 15 Waterloo Primary Government Convention Governmental Business -Type Waterloo & Visitors Activities Activities Total Water Works Bureau, Inc. Liabilities Current: Accounts and retainages payable $ 5,254,601 $ 1,863,055 $ 7,117,656 $ 222,261 $ 1,517 Accrued liabilities and other 1,261,759 189,784 1,451,543 132,736 7,621 Due to primary government 1,186,475 Due to component unit 303,436 303,436 Due to other governments 57,958 Noncurrent liabilities due and payable within one year 12,222,838 3,429,787 15,652,625 61,600 Unearned revenues 472,849 - 472,849 Current liabilities payable from restricted assets: Health claims 1,012,196 1,012,196 Other 229,323 - 229,323 Accrued interest 2,902 2,902 Total current liabilities 20,757,002 5,485,528 26,242,530 1,661,030 9,138 Noncurrent: Customer deposits Worker's compensation claims Revenue bonds and notes General obligation bonds and notes, net of bond discounts and premium Other loans and notes Other postemployment benefits obligation Compensated absences and deferred compensation Net pension liability Total noncurrent liabilities Total liabilities Deferred Inflows of Resources Property taxes Pension related amounts Total deferred inflows of resources 91,439 333,000 58, 604,111 1,828,437 4,368,084 1,280,489 34,408,967 361,575 453,014 333,000 140,000 140,000 23,197,632 81,801,743 1,828,437 589,346 4,957,430 51,012 1,331,501 1,948,102 36,357,069 149,980 416,000 100, 914, 527 26,287,667 127,202,194 565,980 121,671,529 31,773,195 153,444,724 2,227,010 9,138 44,531,570 - 44,531,570 13, 353, 358 792,094 14,145,452 57, 884, 928 792,094 58,677,022 Net Position Net investment in capital assets 307,415,275 78,270,214 385,685,489 24,875,492 67,407 Restricted for: Debt service 5,407,352 727,235 6,134,587 Self-funded health insurance 9,171,476 9,171,476 Tourism promotion 1,115,425 1,115,425 Public access television 140,667 140,667 Civil rights enforcement 50,472 Housing 50,472 4,232,575 4,232,575 Donor specified 400,648 - 400,648 Employee benefits 402,813 Library 402, 813 114,230 114,230 Street and right-of-way maintenance 5,067,682 5,067,682 Improvements 4,335,161 - 4,335,161 Unrestricted (deficit) (31,681,588) 11,638,646 (20,042,942) 6,705,371 1,142,667 Total net position $ 306,172,188 $ 90,636,095 $ 396,808,283 $ 31,580,863 $ 1,210,074 16 City of Waterloo, Iowa Statement of Activities Year Ended June 30, 2015 Programs/Functions Program Revenues Operating Capital Direct Indirect Charges for Grants and Grants and Expenses Allocations Services Contributions Contributions Governmental activities: Public safety $ 25,988,767 $ $ 4,018,731 $ 659,044 $ - Public works 29,950,277 (380,000) 2,498,057 7,610,226 12,607,117 Health and social services 400,607 (75,000) 2,507 94,336 Culture and recreation 11,726,287 (50,000) 3,361,891 180,553 21,878,771 Community and economic development 13,190,672 721,039 2,725,593 4,630,849 General government 5,508,196 (638,500) 943,473 65,312 Interest and issuance costs on long-term debt 2,208,744 - - Total governmental activities 88,973,550 (1,143,500) 11,545,698 11,335,064 39,116,737 Business -type activities: Sanitary Sewer 11,826,569 Sanitation 3,160,807 692,000 451,500 12,661,602 24,236 3,585,270 274,324 Total business -type activities 14,987,376 1,143, 500 16,246,872 298,560 Total primary government $ 103,960,926 $ $ 27,792,570 $ 11,633,624 $ 39,116,737 Component unit, Waterloo Water Works $ 6,838,451 $ $ 8,016,160 $ $ 407,873 Component unit, Waterloo Convention & Visitors Bureau, Inc. $ 611,102 $ See Notes to Basic Financial Statements. $ 602,883 $ General Revenues Taxes: Property taxes levied for general purposes Property taxes levied for debt service Other taxes: Local option sales Utility excise Gaming Hotel/motel Gas and electric Cable television Mobile home Investment earnings Miscellaneous Transfer Total general revenues Changes in net position Net position, beginning of year, as restated Net position, end of year 17 Net (Expense) Revenue and Changes in Net Position Component Units Governmental Business -Type Activities Activities Total Waterloo Convention & Waterloo Visitors Water Works Bureau, Inc. $ (21,310,992) $ $ (21,310,992) $ (6,854,877) (6,854,877) (228,764) (228,764) 13,744, 928 13, 744, 928 (5,113,191) (5,113,191) (3,860,911) - (3,860,911) (2,208,744) (2,208,744) (25, 832, 551) (25, 832, 551) 167,269 167,269 247,287 247,287 414,556 414,556 (25,832,551) 414,556 (25,417,995) 30,647,230 14,867,749 9,661,301 1,601,291 1,332,801 1,205,767 2,798,330 802,557 69,674 180,123 1,108, 633 (2,035) 30,647,230 14,867,749 9,661,301 1,601,291 1,332,801 1,205,767 2,798,330 802,557 69,674 39,714 219,837 1,711 1,110,344 2,035 64,273,421 1,585,582 (8,219) 57,553 676,831 8,359 3,306 43,460 64,316,881 734,384 11,665 38,440,870 458,016 38,898,886 2,319,966 3,446 267,731,318 90,178,079 357,909,397 29,260,897 1,206,628 $ 306,172,188 $ 90,636,095 $ 396,808,283 $ 31,580,863 $ 1,210,074 City of Waterloo, Iowa Balance Sheet Governmental Funds June 30, 2015 Trust and Assets General Agency Grants Cash and cash equivalents $ 7,416,289 $ 287,775 $ Receivables: Customer accounts, net 1,277,964 Property tax: Delinquent 231,932 111,434 Succeeding year 19,111,523 9,815,145 Special assessments 345,047 - Miscellaneous - 55,750 Accrued interest Loans and notes 52,000 Due from other funds 7,949,466 Due from other governments: Federal 75,630 1,370,975 Iowa 372,077 - 6,370,795 Other 231,100 115,879 Inventories and prepaids 323,781 - Restricted assets: Cash and cash equivalents 10,168,110 1,844,107 Receivables 15,690 - Advances to other funds - Total assets $ 47,570,609 $ 12,174,340 $ 7,797,520 (Continued) 19 Tax Increment Local — Financing Option Tax $ 5,509,519 $ 5,703,110 $ 14,839 7,405,250 45,562 - 1,756,675 44,468 425,028 $ 12,974,076 $ 13,598 7,943,973 $ General Obligation Other Debt Service Governmental Total 776,243 $ 24,025,721 $ 43,718,657 1,618,001 2,895,965 80,048 6,513 444,766 7,625,979 573,673 44,531,570 - 345,047 55,750 12 12 - 52,000 655 7,995,683 635,016 2,081,621 1,827,171 10,326,718 77,910 6,468 900,853 - 298,880 622,661 19,138 2,041,122 14,072,477 - 15,690 - 116,014 129,612 8,579,318 $ 31,149,246 $ 128,189,082 City of Waterloo, Iowa Balance Sheet (Continued) Governmental Funds June 30, 2015 General Trust and Agency Grants Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) Liabilities: Accounts payable $ 320,982 $ 841 $ 1,177,570 Retainages payable 2,207 247,292 Accrued liabilities 918,749 319 5,779,689 Due to other funds Unearned revenue 198,192 274,657 Compensated absences 155,434 - Due to Waterloo Convention & Visitors Bureau, Inc. 303,436 - Payables from restricted assets 1,241,519 Advances from other funds 168,316 Total liabilities 3,308,835 841 7,479,527 Deferred Inflows of Resources: Unavailable revenue - property tax 19,343,455 9,926,579 Unavailable revenue - local option sales tax Unavailable revenue - special assessments 345,047 Unavailable revenue - intergovernmental 66,878 - 3,516,155 Total deferred inflows of resources 19,755,380 9,926,579 3,516,155 Fund balances (deficits): Nonspendable 323,781 - Restricted 9,109,347 2,246,920 Assigned 4,848,307 - - Unassigned 10,224,959 - (3,198,162) Total fund balances (deficits) 24,506,394 2,246,920 (3,198,162) Total liabilities, deferred inflows of resources and fund balances (deficits) See Notes to Basic Financial Statements. $ 47,570,609 $ 12,174,340 $ 7,797,520 21 Tax Increment Local General Obligation Other _ Financing Option Tax Debt Service Governmental — $ 96,326 $ 291,293 1,362,178 $ 404,580 23,441 1,844 387,619 1,792,043 Total $ 1,579,016 $ 4,536,913 63,609 717,688 140,376 1,082,885 1,924,701 7,995,683 472,849 28,815 186,093 303,436 - 91,439 1,332,958 168,316 7,420,089 7,420,089 4,712,935 453,433 5,166, 368 130,000 130,000 4,159, 663 1,862,267 6,021,930 3,827,956 16,796,821 7,706,027 580,186 44,976,336 130,000 - 345,047 - 1,980,721 5,563,754 7,706,027 2,560,907 51,015,137 $ 12,974,076 $ 7,943,973 $ - 298,880 622,661 873,291 26,894,612 47,996,768 - 80,579 7,244,586 (2,513,688) 4,513,109 873,291 24,760,383 60,377,124 8,579,318 $ 31,149,246 $ 128,189,082 City of Waterloo, Iowa Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2015 Total governmental fund balances Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of accumulated depreciation used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds Assets held for resale Certain revenues are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources 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: Deferred outflows of resources - IPERS Deferred outflows of resources - MFPRSI Deferred inflows of resources - IPERS Deferred inflows of resources - MFPRSI 1,615,510 6,097,918 (3,102,973) (10,250,385) $ 60,377,124 357,893,267 96,867 6,483,567 (5,639,930) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds: General obligation bonds $ (67,066,200) Other loans and notes (2,061,316) 132,062 Bond discount (898,973) Bond premium Other post employment benefits obligation (4,368,084) Worker's compensation claims payable (333,000) Compensated absences and deferred compensation (3,855,355) Net pension liability - IPERS (7,631,561) Net pension liability - MFPRSI (26,777,406) (178,874) (113,038,707) Accrued interest payable 306,172,188 Net position of governmental activities $ See Notes to Basic Financial Statements. 23 This Page Intentionally Left Blank City of Waterloo, Iowa Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) Governmental Funds Year Ended June 30, 2015 Trust and General Agency Grants Revenues: 10,811,048 $ $ 19,181,066 $ Property taxes 6,991,109 484,546 Other taxes 1,387,340 Licenses and permits 13 181 Investment income 72,596 1,037,693 - Rent 1,208,120 11, 668, 343 Intergovernmental Charges for services 7,116,773 17,108- Interfund charges for services 1,885,000 127,266 Special assessments 286,387 1,463,565 Miscellaneous 11, 971, 838 Total revenues 40,470,528 11,308,775 Expenditures: Current operating: 26,155,655 4,411,195 Public safety 2,709,274 11,415,525 Public works Health and social services 407,060 10,025,008 12,215 Culture and recreation 441,467 Community and economic development 1,784,437 5,449,376 10,271 General government Debt service: Principal Interest and fees Capital outlay 4,421,466 11,869,207 Total expenditures 46,530,810 Excess (deficiency) of revenues over expenditures (6,060,282) 6,887,309 102,631 Other financing sources (uses): 7,042,926 Transfers in (208,513) (6,874,888) Transfers out 1,400 - Insurance proceeds Bond discount Bond premium Proceeds from sale of capital assets 18,692 - Issuance of long-term debt Total other financing sources (uses) 6,854,505 (6,874,888) Net changes in fund balances (deficits) 794,223 12,421 102,631 Fund balances (deficits), beginning of year 23,712,171 2,234,499 (3,300,793) $ 24,506,394 $ 2,246,920 $ (3,198,162) Fund balances (deficits), end of year See Notes to Basic Financial Statements. 24 Tax Increment Financing Local Option Tax General Obligation Other Debt Service Governmental $ 7,309,780 $ 13,709 - $ 9,788,884 14,652 21,713 2,000 7,557,969 $ 308,733 9,345 64,296 86,364 93,802 7,323,489 9,827,249 8,120,509 1,568,913 144,688 87,459 500 1,801,560 12,189,354 9,515,202 1,928,907 Total 580,744 $ 45,440,607 26,032 17, 599, 304 26,399 1,413, 739 60,455 183,938 191,570 1,293,559 15,684,598 28,647,425 215,776 7,371,370 50,000 1,935,000 127,266 915,195 2,760,949 17, 750, 769 106, 773,157 21,780 8,201,532 596,015 7,988,494 170 7,000 11, 855, 246 12,189, 354 11,444,109 28,670,237 5,521,929 (2,362,105) 125,500 (3,193, 569) (3,068,069) (3,323,600) (10,919,468) 2,859,274 249,270 (6,168) 110,914 8,000,000 30,588,630 34, 515, 685 407,060 10,633,238 11, 783, 311 5,459,817 9,659,890 2,023,366 11, 855, 746 116,926,743 2,859,274 2,453,860 (2,362,105) (464,326) 2,712,508 8,384,035 $ 5,166,368 $ 6,021,930 $ 1,337,617 873,291 $ (10,153, 586) 10,276,970 (10,276,970) 1,400 (6,168) 110,914 18,692 8,000,000 8,354,016 8,124,838 (2,565,452) (2,028,748) 27,325,835 62,405,872 24,760,383 $ 60,377,124 City of Waterloo, Iowa Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2015 Net change in fund balances - governmental funds Amounts reported for governmental activities in the statement of activities are different because: Capital outlays to purchase or construct capital assets are reported in the governmental funds as expenditures. However, those costs are reported in the statement of net position and are allocated over their estimated useful lives as depreciation expense in the statement of activities. The amounts of capital outlay and depreciation expense for the year are as follows: $ Capital outlay 28,490,664 Depreciation (14,472,630) The net effect of various miscellaneous transactions involving capital assets is to increase/ decrease net position: Proceeds from sale of capital assets Contributed capital Net loss on disposal of capital assets Transfer of assets to business -type activities (18,692) 21,456,954 (1,563,475) (2,035) Change in assets held for resale The issuance of long-term debt provides current financial resources to governmental funds while repayment of the principal of long-term debt consumes current financial resources. These transactions have no effect on the change in net position in the statement of activities. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, interest is accrued on outstanding debt in the statement of net position whereas in the governmental funds an interest expenditure is reported only when due. The following is a detail of the net effect on these differences in the treatment of long-term debt and related items: General obligation bonds issued for governmental purposes (8,000,000) Repayment of general obligation bond principal 9,439,200 Repayment of other long-term debt principal 220,689 6,168 Bond discount (110,914) Bond premium Amortization of bond discounts, premiums and deferred charges (187,922) 2,544 1,369,765 Change in accrued interest Revenue in the statement of activities that does not provide current financial resources is not reported as revenue in the governmental funds: 6,483,567 Current year (6,507,122) Prior year 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: (89,154) Change in other post employment benefits obligation 51,00091 Change in worker's compensation claims payable (152 000) Change in compensated absences and deferred compensation liabilities 669,538 Pension expense - IPERS 4,999,233 Pension expense - MFPRSI $ 38,440,870 Change in net position of governmental activities $ (2,028,748) 14,018,034 19,872,752 (295,068) 26 This Page Intentionally Left Blank City of Waterloo, Iowa Statement of Net Position Enterprise Funds June 30, 2015 Assets Current assets: Cash and cash equivalents Customer accounts receivable Special assessments receivable Due from other governments: Waterloo Water Works Other Inventories Total current assets Sanitary Sewer Nonmajor - Sanitation Total 6,766,573 $ 2,734,213 55,329 753,198 9,395 20,896 3,218,455 $ 668,690 190,997 343,737 21,190 9,985,028 3,402,903 246,326 1,096,935 30,585 20,896 10,339,604 4,443,069 14,782,673 Noncurrent assets: Advances to other funds 27,003 11,701 38,704 Restricted cash and cash equivalents 15,007,319 111,650 15,118,969 Capital assets, net of accumulated depreciation 86,787,322 1,464,663 88,251,985 Capital assets not being depreciated 4,547,439 4,547,439 Net capital assets 91,334,761 1,464,663 92,799,424 Total noncurrent assets 106,369,083 1,588,014 107,957,097 Total assets 116,708,687 6,031,083 122,739,770 Deferred Outflows of Resources Pension related amounts Deferred charge on refunding Total deferred outflows of resources See Notes to Basic Financial Statements. 294,844 117,041 411,885 49,729 49,729 344,573 117,041 461,614 27 Liabilities, Deferred Inflows of Resources, and Net Position Liabilities: Current: Accounts payable Retainages payable Accrued liabilities Current maturities of general obligation and revenue bonds Compensated absences and deferred compensation Accrued interest, revenue bonds Total current liabilities Sanitary Sewer Nonmajor - Sanitation Total 1,644,398 $ 118,932 $ 1,763,330 99,725 - 99,725 152,981 36,803 189,784 3,186, 000 3,186, 000 172,578 71,209 243,787 2,902 2,902 5,258,584 226,944 5,485,528 _ Noncurrent: Security deposits 249,925 111,650 361,575 General obligation bonds, net bond discount and premium 23,197,632 23,197, 632 ... Revenue bonds 140,000 140,000 Other postemployment benefits obligation 372,497 216,849 589,346 Compensated absences and deferred compensation 43,132 7,880 51,012 Net pension liability 1,407,847 540,255 1,948,102 Total noncurrent liabilities 25,411,033 876,634 26,287,667 Total liabilities 30,669,617 1,103,578 31,773,195 Deferred Inflows of Resources, pension related amounts 572,427 219,667 792,094 Net position: Net investment in capital assets 76,805,551 1,464,663 78,270,214 Restricted for: Debt service 727,235 727,235 Improvements 475,982 Unrestricted 475, 982 7,802,448 3,360,216 11,162,664 Total net position $ 85,811,216 $ 4,824,879 $ 90,636,095 28 City of Waterloo, Iowa Statement of Revenues, Expenses and Changes in Net Position Enterprise Funds Year Ended June 30, 2015 Sanitary Sewer Nonmajor - Sanitation Total Operating revenues: Charges for sales and service $ 12,603,611 $ 3,585,270 $ 16,188,881 Miscellaneous 57,991 57,991 Total operating revenues 12,661,602 3,585,270 16,246,872 Operating expenses: Salaries and benefits 3,498,693 1,452,422 4,951,115 Contractual services 2,288,186 919,450 3,207,636 Intra -city reimbursements 692,000 451,500 1,143,500 Commodities 2,650,155 504,317 3,154,472 Depreciation 2,590,099 284,618 2,874,717 Total operating expenses 11,719,133 3,612,307 15,331,440 Operating income (loss) 942,469 (27,037) 915,432 Nonoperating revenues (expenses): Interest income 29,826 9,888 39,714 Intergovernmental 24,236 274,324 298,560 Interest expense (646,488) (646,488) Amortization (152,948) (152,948) Gain on disposal of capital assets 1,008 703 1,711 Capital contributions 2,035 - 2,035 Total nonoperating revenues (expenses) (742,331) 284,915 (457,416) Change in net position 200,138 257,878 458,016 Net position, beginning of year, as restated 85,611,078 4,567,001 90,178,079 Net position, end of year $ 85,811,216 $ 4,824,879 $ 90,636,095 See Notes to Basic Financial Statements. 29 City of Waterloo, Iowa Statement of Cash Flows Enterprise Funds Year Ended June 30, 2015 Nonmajor - Sanitary Sewer Sanitation Total Cash flows from operating activities: Receipts from customers and users $ 12,700,886 $ 3,638,177 Payments to suppliers $ 16,339,063 (5,084,360) (1,451,618) (6,535,978) Payments to or on behalf of employees (3,447,497) (1,484,848) (4,932,345) Payment for interfund services used (692,000) Net cash provided by operating activities (451,500) (1,143,500) 3,477,029 250,211 3,727,240 Cash flows from noncapital financing activities, intergovernmental proceeds 54,490 Cash flows from capital and related financing activities: Purchase and construction of capital assets Proceeds from disposal of capital assets Proceeds from bonds, loans and notes, net bond premiums Principal paid on debt Interest paid on debt Net cash (used in) capital and related financing activities Cash flows from investing activities, interest received (2,549,967) 1,008 6,103, 096 (3,740,800) (886,464) 271,912 326,402 (488,304) 703 (1,073,127) 30,832 (3,038,271) 1,711 6,103, 096 (3,740,800) (886,464) (487,601) (1,560,728) 9,888 40,720 Increase in cash and cash equivalents 2,489,224 44,410 2,533,634 Cash and cash equivalents, beginning of year 19,284,668 Cash and cash equivalents, end of year 3,285,695 22,570,363 $ 21,773,892 $ 3,330,105 $ 25,103,997 Reconciliation of cash and cash equivalents to statement of net position: ._ Unrestricted cash and cash equivalents $ 6,766,573 $ 3,218,455 Restricted cash and cash equivalents $ 9,985,028 15,007,319 111,650 15,118,969 $ 21,773,892 $ 3,330,105 $ 25,103,997 (Continued) 30 City of Waterloo, Iowa Statement of Cash Flows (Continued) Enterprise Funds Year Ended June 30, 2015 Sanitary Sewer Nonmajor - Sanitation Total Reconciliation of operating income (loss) to net cash provided by operating activities: 942,469 $ (27,037) $ 915,432 Operating income (loss) $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 2,590,099 284,618 2,874,717 (Increase) decrease in accounts receivable 39,284 52,907 92,191 (Increase) Decrease in inventories and prepaids (3,513) - (3,513) Increase (decrease) in accounts payable (153,931) (33,731) (187,662) 5,880 17,305 Increase in security deposits 11,4259,535 Increase in accrued liabilities 2,556 6,979 Increase in other post employment benefits obligation 21,617 9,659 31,276 Increase (decrease) in compensated absences and deferred compensation (27,186) 1,009 (26,177) Decrease in net pension liability (605,489) (232,354) (837,843) (37,386) 49,885 (Increase) in deferred outflows of resources 87,271792,094 Increase in deferred inflows of resources 572,427 219,667 Net cash provided by operating activities $ 3,477,029 $ 250,211 $ 3,727,240 Schedule of noncash capital and related financing activities: $ 627,775 Payables for acquisition of capital assets $ 627,775 $ Capitalized interest 71,229 - 71,229 See Notes to Basic Financial Statements. 31 City of Waterloo, Iowa Index to the Notes to Basic Financial Statements Note Number Title Page Number 1 Nature of Operations, Reporting Entity, Basis of Presentation, 33 - 42 Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies 2 Cash and Investments 42 - 43 3 Leasing Activities 43 - 44 4 Loans and Notes 44 - 45 5 Interfund Activity 45 - 46 6 Capital Assets 47 - 50 7 Deferred Compensation Plans 50 8 Compensated Absences 51 9 Long -Term Liabilities 52 - 56 10 Operating Leases 57 11 Retirement Systems 57 - 65 12 Deficit Fund Balances 66 13 Commitments 66 14 Other Postemployment Benefits 66 - 68 15 Employee Health Care Plan 68 16 Worker's Compensation Plan 69 17 Joint Ventures and Jointly Governed Organizations 69 18 Industrial Development Revenue Bonds 69 19 Risk Management 70 21 Fund Balances 70 22 New GASB Statements and Pending Pronouncements 71 - 72 32 This Page Intentionally Left Blank City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies Nature of operations: The City of Waterloo, Iowa (City) is a political subdivision of the state of Iowa located in Black Hawk County. It was incorporated in 1868 and operates under the Home Rule provisions of the Constitution of Iowa. The City operates under the Mayor -Council form of government with the full-time Mayor and seven part-time City Council members elected on a nonpartisan basis. The Mayor is elected for a two- year term. City Council members from five wards plus two at -large are elected for staggered four-year terms. The City provides numerous services to citizens including public safety, public works, health and social services, culture and recreation, community and economic development and general government services. The City also provides sanitary sewer and sanitation (garbage pickup) utilities for its citizens. Through its component unit, Waterloo Water Works, water utility services are also provided. Reporting entity: In accordance with Governmental Accounting and Financial Reporting Standards, the basic financial statements include all funds, organizations, agencies, boards, commissions, authorities and material component units and have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The City has considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The GASB has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting 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 the organization to provide specific benefits to, or impose specific financial burdens on, the City. These financial statements present the City of Waterloo (the primary government) and its discretely presented component units, the Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc. Complete financial statements of the Waterloo Water Works component unit can be obtained from the Waterloo Water Works administrative office, 325 Sycamore Street, Waterloo, Iowa. Complete financial statements of the Waterloo Convention & Visitors Bureau, Inc. can be obtained from their office at 313 East 5th Street, Waterloo, Iowa. Blended component unit: The Waterloo Housing Authority (Authority) is governed by a board that includes all seven members of the City Council plus two members appointed by the Mayor, subject to approval of a majority of the City Council, for a total of nine members. Although the Authority is considered legally separate from the City, it receives administrative support from the various departments within the City's General Fund. Due to the nature of its relationship with the City, the Authority is considered part of the primary government. The Authority is reported as a special revenue fund. Discretely presented component units: Waterloo Water Works: The Waterloo Water Works is a component unit that is legally separate from the City, but is financially accountable to the City. The Waterloo Water Works is governed by a three-member board appointed by the City Council and its operating budget is subject to the review of the City Council. The Waterloo Water Works operates on a calendar year-end and prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Due to the different year-end, the amount reported by the Waterloo Water Works as due to the primary government and the primary government's due from the Waterloo Water Works do not agree by $89,540. 33 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Waterloo Convention & Visitors Bureau, Inc.: The Waterloo Convention & Visitors Bureau, Inc. is a nonprofit corporation and a component unit of the City whose purpose is to strengthen the local economy by competitively marketing the area as a destination for conventions, tour groups, sporting events and individual travelers. The Organization's operations are funded primarily by an allocation of the local hotel/motel tax from the City's local transient guest tax. By ordinance, the City allocates 50 percent of the tax to the Organization. The Organization is governed by a 15 -member Board of Directors. Five members are appointed by the City, five are appointed by the Greater Cedar Valley Chamber of Commerce and the other five are elected by other members of the Organization's Board. Although the City does not appoint the voting majority of the Organization's Board of Directors, the Organization has been determined to be fiscally dependent on the City. Basis of presentation: Government -wide financial statements: The statement of net position and the statement of activities report information on all the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. However, interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by tax and intergovernmental revenue, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate Waterloo Water Works and Waterloo Convention & Visitors Bureau, Inc. component units. The statement of net position presents the City's nonfiduciary assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given program or function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program/function revenue includes: (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given program/function and (2) grants, contributions and other resources that are restricted to meeting the operational or capital requirements of a particular program/function. Taxes and other items not properly included among program revenue are reported instead as general revenue. Fund financial statements: Separate financial statements are provided for governmental and proprietary funds. The focus of fund financial statements is on major funds. Major individual governmental funds and the major enterprise fund are reported as separate columns in the fund financial statements. All remaining governmental funds are aggregated and reported as other nonmajor governmental funds. The other enterprise fund is reported in a separate column on the enterprise funds financial statements as a nonmajor fund. 34 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Description of funds: The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, reserves, fund balance/net position, revenue and expenditures or expenses, and other financing sources and uses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into categories as follows: 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 liabilities, 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. The following are the City's governmental fund types: General fund is used to account for and report all financial resources not accounted for and reported in another fund. Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest on long-term debt. Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. The City had the following major governmental funds: General Fund is used to account for and report all financial resources not accounted for and reported in another fund. Trust and Agency (Employee Benefits) Special Revenue Fund is required by the Code of Iowa to account for property taxes levied for employee benefits. This fund either pays benefits as expenditures (primarily police and fire pension costs) or transfers cash to the General Fund to reimburse allowable benefits paid from that fund. Grants Fund is used to account for resources received for various federal and Iowa funded projects which are not accounted for elsewhere and are restricted to specific programs. Tax Increment Financing Fund is used to account for the accumulation of resources from tax increment financing projects, payment of contracted rebates and other obligations related to the projects and transfers to the GO Debt Service Fund and/or other funds to reimburse the other funds for expenditures on the projects. General Obligation Debt Service Fund is required by the Code of Iowa to account for the accumulation of resources for, and payment of, debt service on general obligation long-term debt. 35 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Local Option Tax Fund is used to account for resources provided from a 1 percent sales tax approved by the citizens of Waterloo which is restricted for the construction, reconstruction and repair of City streets. Proprietary Fund Type: 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 account for operations (a) that are financed and operated in a manner similar to that of a private business enterprise where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The City had the following major proprietary fund: Sanitary Sewer Fund: Operates the sewage collection system and wastewater treatment plant. Fiduciary Fund Type: To account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Agency Fund: This is an Agency Fund used to account for property taxes collected on behalf of the Metropolitan Transit Agency, Water Works kill water assessments, and building permits passed through to Black Hawk County. 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. Agency funds follow accrual basis of accounting but do not have a measurement focus as they report only assets and liabilities. Revenue is 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 revenue in the year for which they are levied. Grants and similar items are recognized as revenue at the same time the related asset is recorded. For reimbursable grants, the asset is recorded 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. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available when it is collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenue to be available if it is collected within 60 days of the end of the fiscal year. Property taxes when levied for, charges for services, intergovernmental revenue (shared revenue, grants and reimbursements from other governments) and interest are considered to be measurable and are recognized as revenue, if available. All other revenue items are considered to be measurable and available only when cash is received by the City. 36 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, principal and interest on long-term debt, claims and judgments and compensated absences are recorded as expenditures only when payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt, premiums and discounts on the issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Under terms of grant agreements, the City funds certain programs by a combination of specific cost - reimbursement grants and general revenue. It is the City's policy to first apply cost -reimbursement grant resources to such programs and then by general revenue. Proprietary funds distinguish operating revenue and expenses from nonoperating items. Operating revenue 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 revenue of the City's enterprise funds are charges to customers for services. Operating expenses include the costs of services and administrative expenses. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. Budgets and budgetary accounting: The budgetary comparison and related disclosures are reported as required supplementary information. Summary of significant accounting policies: The significant accounting policies followed by the City include the following: Cash, pooled investments and cash equivalents: The cash balances of most City funds are pooled and deposited into interest-bearing demand deposit accounts. Interest earned on investments is allocated among funds in the ratio of cash provided by the fund unless otherwise provided by law. Interest earned by the Road Use Tax Fund is allocated to the General Fund. Investments consist of nonnegotiable certificates of deposit and deposits in Iowa Public Agency Investment Trust money market accounts which are stated at amortized cost. For purposes of the statement of cash flows, all short-term cash investments that are highly liquid (including restricted assets) are considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash and, at the day of purchase, have a maturity date no longer than three months. Receivables and payables: Receivables are reported net of any allowance for uncollectible accounts. As of June 30, 2015, the General Fund had allowances for uncollectible customer accounts totaling $800,911. Property taxes receivable are recognized on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property taxes receivable represent unpaid taxes from the current year. The succeeding year property taxes receivable represent taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property taxes receivable have been recorded, the related revenue is reported as a deferred inflow of resources (unavailable revenue) and will not be recognized as revenue until the year for which it is levied. 37 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Property tax revenue which became due and collectible in September and March of the fiscal year with a 11/2 percent per month penalty for delinquent payments; was based on January 1, 2013 assessed property valuations; was for the tax accrual period July 1, 2014 through June 30, 2015; and reflected the tax asking contained in the budget certified to the County Board of Supervisors in March 2014. Special assessments are levied against certain property owners and become liens against the property benefited by the improvement. Special assessments receivable consist of current assessments which are due within one year, delinquent assessments remaining unpaid after the due date, uncollected assessments which have been levied, but are not due within one year. Customer accounts receivable consist of amounts owed from private individuals or organizations for _ goods and services. Loans and notes consist of amounts advanced to private individuals or organizations. Collections of principal and interest from loans and notes made from federal funds are program income of the federal program when received in cash. Due from other governments consists of grants, shared revenue and amounts collected by other governments on behalf of the City. Inventories and prepaids: Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of governmental fund -type inventories are recorded as expenditures when purchased. Inventories and prepaids recorded in the governmental fund types do not reflect current available resources; therefore, an equivalent portion of fund balance is nonspendable. Prepaids consist primarily of a deposit for insurance deductibles and premiums paid in advance. Assets held for sale: Land and buildings acquired for rehabilitation and held for sale by the City is recorded at the lower of cost or fair value (specific identification basis). The cost of land acquired and construction costs incurred by the City at year-end amounted to $215,230 and was carried at lower of cost or fair value of $96,867. The cost associated with these assets are reported as expenditures in the governmental funds as they do not represent a current financial resource and are reported as assets on the government -wide statement of net position. Restricted assets: Certain assets of the governmental funds are classified as restricted assets because their use is completely restricted by donors, bond indentures, contracts or grant agreements. Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants. The "revenue, operations and maintenance" account is used to report resources set aside to subsidize potential deficiencies from the City's operation that could adversely affect debt service payments. The "revenue bond debt sinking" account is used to segregate resources accumulated for debt service payments over the next 12 months. The "revenue bond debt reserve" account is used to segregate 10 percent of the original face value of bond issues which are still outstanding to provide payments due if the "debt sinking" balance is not adequate. The "revenue bond improvements" account is used to report resources set aside to meet unexpected contingencies or to fund asset renewals and replacements. The "project" account is used to report those proceeds of bond issuances that are restricted for use in construction. City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) Bond discounts, premiums and issuance costs: In the government -wide financial statements and proprietary fund types in the fund financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as an expense in the year the costs are incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. 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 reported as an expenditure in the year the costs are incurred. Interest capitalized: Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. $71,229 of interest expense in the Sanitary Sewer Fund was capitalized during the year ended June 30, 2015. Capital assets: Capital assets are reported in the applicable governmental or business -type activities columns in the government -wide statement of net position and in the fund financial statements for proprietary funds. Capital assets are recorded at historical cost. Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized. Capital assets, other than infrastructure, are defined by the City as assets with an initial, individual cost in excess of $5,000 and estimated useful lives in excess of one year. Infrastructure is defined by the City as assets available for public use, other than buildings, and having a cost of $50,000 or more. Depreciation is computed using the straight-line method over the estimated useful life of the asset with no amount recorded in the year placed in service and a full year in the year removed from service. Estimated useful lives are as follows: Years Governmental activities: Buildings and improvements 10 - 40 Infrastructure 15 - 100 Furniture and equipment 3 - 20 Vehicles, machinery and equipment 3 - 25 Software 5 Assets under capital lease 10 - 15 Business -type activities: Buildings 15 - 50 Improvements other than buildings 50 Furniture and equipment 5 - 20 Vehicles, machinery and equipment 5 -10 Software 5 Discretely presented component units: Buildings and improvements Water supply and distribution systems Meters and equipment Machinery and equipment Leasehold improvements 39 8-40 10-99 5-63 5-26 5-39 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) The City's collection of works of art, library books and other similar assets are not capitalized. These collections are unencumbered, held for public 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. Deferred outflows of resources: In addition to assets, the statement of net position 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 position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The first is a deferred charge on refunding reported in the government -wide and enterprise funds 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. The second item is a pension related deferred outflow, which consists of unrecognized items not yet charged to pension expense and contributions from the City after the measurement date but before the end of the City's reporting period. 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 position 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: property taxes, local option sales 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 are reported as a deferred inflow of resources and will become an inflow in the year for which they are levied. The City's government -wide statements also include pension related deferred inflows, which are the unamortized portion of the difference between expected and actual experience, changes in assumptions and the change in proportion and differences between the City's contributions and proportionate share of contributions all related to the net pension liability. Pensions: The net pension liability, deferred inflows and outflows of resources related to pensions, pension expense, information about the fiduciary net position of the Iowa Public Employees' Retirement System (IPERS) and the Municipal Fire and Police Retirement System of Iowa (MFPRSI) and additions to/deductions from IPERS' and MFPRSI's fiduciary net position have been determined on the same basis as they are reported by (PERS and MFPRSI. 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. Interfund transactions: Transactions among City funds that would be treated as revenues and expenditures or expenses if they involved organizations external to 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. 40 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) 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 fund's operating statements. 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" in the fund financial statements. 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 interfund loan receivables and payables are reported as advances within the governmental and enterprise funds. Compensated absences: City ordinances and labor contracts with the City call for the accumulation of vacation, compensatory time and sick leave for subsequent use or for payment upon termination or retirement. During 2001, the City began offering an early sick leave payout option for certain employees. Qualifying employees can elect to receive 60 percent of the time in their frozen sick leave bank over a five-year period prior to their retirement or termination of employment. Vacation, compensatory time and sick pay are accrued when incurred in the government -wide and the proprietary funds statements and reported as a liability. Matured compensated absences, for example, as a result of employee retirements and resignations, are considered due and expected to be liquidated with expendable available financial resources and are reported as an expenditure and a fund liability of the respective governmental fund. Governmental fund liabilities for unmatured compensated absences are not reported in the fund financial statements. Long-term liabilities: In the government -wide financial statements and the proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. In the governmental fund financial statements, the face amount of long-term debt issued is reported as an other financing source. 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 intact. Restricted: Amounts restricted to specific purposes when constraints placed on the use of the resources are either externally imposed by creditors, grantors or state or federal laws or imposed by law through constitutional provisions or enabling legislation. Committed: Amounts which can be used only for specific purposes 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 amounts. Assigned: Amounts constrained by the City's intent to use them for a specific purpose. The authority to assign fund balance has been delegated by the City Council to the Chief Financial Officer in accordance with the City's Fund Balance and Reserve Policy. 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. 41 City of Waterloo, Iowa Notes to Basic Financial Statements Note 1. Nature of Operations, Reporting Entity, Basis of Presentation, Measurement Focus and Basis of Accounting and Summary of Significant Accounting Policies (Continued) When an expenditure is incurred in governmental funds which can be paid using either restricted or unrestricted resources, the City's policy is to pay the expenditure from restricted fund balance and then from less -restrictive classifications — committed, assigned and then unassigned fund balances. Net position: Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Amounts reported as net investment in capital assets consist 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. Unspent debt proceeds for the various capital project GO Bonds Funds are $17,379,396 and the Sanitary Sewer enterprise fund is $6,809,208. 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. The government -wide statement of net position reports $30,478,623 of restricted net position of which $16,351,961 is restricted by enabling legislation for debt service, employee benefits, self- funded health insurance, library, tourism promotion and public access television. The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. Indirect allocations: Operating funds, departments and activities receive services from supporting funds, departments and activities. Annually, management estimates the value of those services and records applicable indirect allocations. Activities related to federal grant programs have not been included in the indirect cost calculations, but are reported within the function the grant serves. Estimates and assumptions: The preparation of 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Note 2. Cash and Investments Interest rate risk: The City's policy allows the operating funds to be invested in instruments authorized by the City's investment policy that mature within 397 days and funds not identified as operating funds to be invested with maturities longer than 397 days. However, all investments of the City shall have maturities that are consistent with the liquidity needs of the City. As of June 30, 2015, the City had investments in the Iowa Public Agency Investment Trust (IPAIT) which were valued at an amortized cost of $ 8,184,768 pursuant to Rule 2a-7 under the Investment Company Act of 1940. IPAIT is registered with the Securities and Exchange Commission. The City's investment in IPAIT is not subject to interest rate risk. The discretely presented Waterloo Water Works component unit's certificates of deposit are restricted to comply with debt covenants and to secure customer deposits. 42 City of Waterloo, Iowa Notes to Basic Financial Statements Note 2. Cash and Investments (Continued) Credit risk: In accordance with the City's investment policy, the City may invest in interest bearing savings accounts, interest bearing money market accounts, and interest bearing checking accounts at any bank, savings and loan associations or credit union in the state of Iowa, obligations of the United States government, its agencies and instrumentalities, certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions, IPAIT, prime bankers' acceptances that mature within 270 days of purchase and are eligible for purchase by a Federal Reserve Bank, commercial paper or other short-term corporate debt that matures within 270 days of purchase and is rated within the two highest classifications, as established by at least one of the standard rating services, repurchase agreements, open-end management investment company organized in trust form, registered with Securities & Exchanges Commission. The policy does not allow the City to invest in reverse repurchase agreements and futures and options contracts. The investment in the Iowa Public Agency Investment Trust is unrated for credit risk purposes. The City's investments in repurchase agreements had a credit rating of AAA. Concentration of credit risk: The City's investment policy is to diversify its investment portfolio to eliminate the risk of loss resulting from overconcentration of assets in a specific maturity, a specific issuer or a specific class of securities. However, the policy limits the City from investing in prime bankers' acceptances or commercial paper of more than 10 percent of the investment portfolio and more than 5 percent of the investment portfolio with a single issuer at the time of purchase. In addition, no more than 5 percent of all amounts invested in commercial paper and other short-term corporate debt shall be invested in paper and debt rated in the second highest classification at the time of purchase. As of June 30, 2015, the City's investments were not subject to concentration of credit risk. Custodial credit risk: For deposits, this is the risk that in the event of bank failure, the City's deposits may not be returned to it. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City and Waterloo Water Works' deposits as of June 30, 2015 were entirely covered by federal depository insurance, National Credit Union insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to ensure that there will be no loss of public funds. In addition, the City had no investments subject to custodial credit risk since the City does not hold the underlying investments. Note 3. Leasing Activities Airport: The Waterloo Municipal Airport has entered into various operating leases with airlines, fixed base operators, auto lease companies, the airport restaurant and hangar tenants, as well as farm airport land. These agreements range from month-to-month leases to longer-term leases with various specified terms. Some of these lease agreements contain cancellable conditions which eliminate any future guaranteed rentals or are contingent upon income produced by the lessee. The following is a schedule by years of the future minimum lease rentals to be received under these leases as of June 30: During the year ending June 30: 2016 2017 2018 2019 Total future minimum lease rentals to be received 43 $ 426,732 53,322 15,918 6,093 $ 502,065 City of Waterloo, Iowa Notes to Basic Financial Statements Note 3. Leasing Activities (Continued) Board of Regents, State of Iowa: The City has entered into a lease agreement with the Board of Regents, State of Iowa, for the former Chicago Great Western Depot building. The term of the lease is from August 21, 2001 through August 20, 2016 at a rate of $6,035 per month. The following is a schedule by years of the future minimum lease rentals to be received under the lease as of June 30: During the year ending June 30: 2016 $ 72,420 2017 12,070 Total future minimum lease rentals to be received $ 84,490 Waterloo Hotel Equities, LLC d/b/a Ramada Waterloo Civic and Convention Center: The City has entered into a lease agreement with the Waterloo Hotel Equities, LLC d/b/a Ramada Waterloo Civic and Convention Center (Hotel) for the use of the Five Sullivan Brothers Convention Center and City parking facilities. The term of the lease is from May 23, 2005 through December 31, 2019. The rental rates are based on the gross income and sales of the Five Sullivan Brothers Convention Center, also known as the Ramada Inn Convention Center (Center) paid on a monthly basis. The amount of revenue recognized for the year ended June 30, 2015 is $67,237. The lease includes a management agreement with the Hotel for the management of the Center. Note 4. Loans and Notes General Fund: Rath/Urban Development Action Grant (UDAG) Loans: In prior years, the City received federal aid in the form of UDAGs to assist local businesses, including Rath Packing Company (Rath). Rath subsequently liquidated and the City received real estate and cash as a result of the liquidation. A portion of the cash has been loaned to local businesses to assist in their economic development: Economic development revolving loans: From time -to -time, the City has made economic development loans with repayment terms of 5 years and interest ranging from 0 to 6.5 percent. The ending balance on the one remaining loan as of June 30, 2015 was $15,800. Interest is no longer being charged on the loan. This loan was paid off subsequent to June 30, 2015. Special Revenue Funds: Community Development Block Grant (CDBG) Loans: Low-interest loans: The City has seven low-interest rehabilitation and other loans due as of June 30, 2015. The City serviced loans, with a balance of $123,313. Seven of the City -serviced loans, with a balance of $31,263 are estimated to be uncollectible. Collections of CDBG loans are grant program income which is reported in the Special Revenue Fund (CDBG) as charges for services as received. Low-income housing loans: The City has provided seven loans for low-income housing projects, five of which have a below-market interest rate. All have minimal payments required each year until maturity. Maturities range from September 2018 to August 2031. The balance of the seven loans at June 30, 2015 was $1,265,164. Cash received is program income and considered to be charges for services. Given the nature and collection history of the loans, the City has determined these amounts are uncollectible and has recorded an allowance for the full amount of the loans. 44 MEN City of Waterloo, Iowa Notes to Basic Financial Statements Note 4. Loans and Notes (Continued) Forgivable loans: The City, through its CDBG, HOME program, Economic Development Initiative program, Lead Paint Removal grant, federal and state Jumpstart funds and Iowans Helping Iowans funds, provides forgivable rehabilitation loans to low-income households. The loans are forgiven on a sliding scale over a five-year period, provided the home is not sold or abandoned. If the home is sold or abandoned, the City's lien against the property prevents a clear title transfer unless the unforgiven portion of the note is satisfied. As of June 30, 2015, the City had made 1,655 such loans totaling $30,760,691. The loan balances are considered forgivable and/or uncollectible by the City given the nature and terms of the loans and therefore, have not been recorded as assets on the balance sheet. Note 5. Interfund Activity The composition of interfund receivables and payables balances as of June 30, 2015 was as follows: Due From Due To Major governmental funds: General $ 7,949,466 $ Grants - 5,779,689 Tax increment financing 291,293 Local option tax 45,562 Nonmajor governmental funds 655 1,924,701 $ 7,995,683 $ 7,995,683 Advances to and from other funds as of June 30, 2015, were as follows: Major governmental funds: Advances To Advances From General $ - $ 168,316 Local option tax 13,598 Nonmajor governmental funds 116,014 Major Enterprise Fund, sanitary sewer 27,003 Nonmajor Enterprise Fund, sanitation 11,701 $ 168,316 $ 168,316 Interfund balances result from the time lag between the dates that (1) interfund 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 interfund receivables and payables are scheduled to be collected in the subsequent year whereas the interfund advances are not. 45 City of Waterloo, Iowa Notes to Basic Financial Statements Note 5. Interfund Activity (Continued) Due to/from primary government and component units: Due to Enterprise Funds: Sanitary sewer $ 753,198 Sanitation 343,737 Due from Waterloo Water Works 1,096,935 Waterloo Water Works - due to primary government 1,186,475 Difference $ (89,540) The difference in the above amounts of $89,540 results from the different year ends of the entities as described in Note 1. Due to Waterloo Convention & Visitors Bureau, Inc. from General Fund $ 303,436 The following is a schedule of transfers as included in the basic financial statements of the City: Transfers In Transfers Out Major governmental funds: General $ 7,042,926 $ 208,513 Trust and agency - 6,874,888 Tax increment financing 125,500 3,193,569 General obligation debt service 2,859,274 Nonmajor governmental funds 249,270 $ 10,276,970 $ 10,276,970 Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them. 46 City of Waterloo, Iowa — Notes to Basic Financial Statements Note 6. Capital Assets Capital asset activity for the year ended June 30, 2015 was as follows: Governmental Activities Beginning Ending Balance Balance June 30, 2014 Additions Deletions Transfers June 30, 2015 Capital assets, not being depreciated: -- Land $ 40,638,156 $ 2,749,214 $ $ - $ 43,387,370 Land held for redevelopment 8,048,966 938,126 1,208,241 - 7,778,851 Construction -in -progress 13,718,328 22,168,693 238,000 (16,154,456) 19,494,565 Total capital assets, not being — depreciated 62,405,450 25,856,033 1,446,241 (16,154,456) 70,660,786 Capital assets, being depreciated: Buildings and improvements 106,250,419 21,794,702 1,176,055 1,753,469 128,622,535 Infrastructure 315,224, 548 13, 798,191 329, 022, 739 Vehicles, machinery, furniture and equipment 27,779,249 2,208,611 609,116 581,661 29,960,405 Software 673,335 88,272 14,891 746,716 — Total capital assets, being depreciated 449, 927, 551 24, 091, 585 1,800,062 16,133, 321 488, 352, 395 Less accumulated depreciation for: Buildings and improvements 52,809,774 3,451,396 Infrastructure 118,071,700 8,831,478 Vehicles, machinery, furniture and equipment 17,199,130 2,071,634 Software 249,916 118,122 Total accumulated depreciation 188,330,520 14,472,630 1,094,130 555,115 14,891 55,167, 040 126, 903,178 (19,100) 18,696,549 353,147 1,664,136 (19,100) 201,119,914 Total capital assets, being depreciated, net 261,597,031 Governmental activities capital assets, net 9,618,955 135,926 16,152, 421 287, 232, 481 $ 324,002,481 $ 35,474,988 $ 1,582,167 $ (2,035) $ 357,893,267 47 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Beginning Ending Balance Balance June 30, 2014 Additions Deletions Transfers June 30, 2015 Business -Type Activities Capital assets, not being depreciated: Land $ 348,055 $ - $ $ - $ 348,055 Construction -in -progress 5,066,113 3,152,802 (4,019,532) 4,199,383 Total capital assets, not being depreciated 5,414,168 3,152,802 - (4,019,532) 4,547,438 Capital assets, being depreciated: Buildings 71,124,017 6,500 71,117,517 Improvements other than buildings 45,816,536 - - 4,019,532 49,836,068 Vehicles, machinery, furniture and equipment 10,213,949 584,473 81,453 21,135 10,738,104 Software 19,940 - - 19,940 Total capital assets, being depreciated 127,174,442 584,473 87,953 4,040,667 131,711,629 Less accumulated depreciation for: Buildings 20,611,250 1,403,975 Improvements other than buildings 14,152,161 916,330 Vehicles, machinery, furniture and equipment 5,878,404 550,424 Software 11,964 3,988 6,500 81,453 19,100 22,008,725 15,068,491 6,366,475 15,952 Total accumulated depreciation 40,653,779 2,874,717 Total capital assets, being depreciated, net Business -type activities capital assets, net 87,953 19,100 43,459,643 86,520,663 (2,290,244) 4,021,567 88,251,986 $ 91,934,831 $ 862,558 $ $ 2,035 $ 92,799,424 48 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Beginning Ending Balance Balance December 31, Transfers/ December 31, Discretely Presented Component Unit - 2013 Additions Deletions Transfers 2014 Waterloo Water Works Capital Assets Capital assets, not being depreciated: - Land $ 270,896 $ 36,104 $ - $ $ 307,000 Construction -in -progress 798,472 2,015,590 1,914,631 - 899,431 Total capital assets, not being depreciated 1,069,368 2,051,694 1,914,631 1,206,431 Capital assets, being depreciated: Buildings and improvements Water supply and distribution systems Meters and equipment Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Water supply and distribution systmes Meters and equipment Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Net discretely presented component unit - Waterloo Water Works capital assets, net 1,754,291 27, 780,173 1,173, 594 1,981,884 5,911 368,291 (1,321,863) 146,175 46,652 1,760,202 29,470,327 1,173, 594 2,081,407 32,689,942 520,377 (1,275,211) 34,485,530 755,767 7,094,999 661,164 1,269,139 28,582 505,438 30,035 106,757 18,939 32,473 784,349 7,581,498 691,199 1,343,423 9,781,069 670,812 51,412 10,400,469 22,908,873 (150,435) (1,326,623) 24, 085, 061 $ 23,978,241 $ 1,901,259 $ 588,008 $ - $ 25,291,492 Ending Balance Balance Discretely Presented Component Unit - June 30, 2014 Additions Deletions Transfers June 30, 2015 Waterloo Convention & Visitors Bureau, Inc. Capital assets, being depreciated: Equipment $ 73,572 $ $ 5,984 $ $ 67,588 Leasehold improvements 125,924 - 125,924 Total capital assets, being depreciated 199,496 5,984 193,512 Less accumulated depreciation 113,251 18,838 5,984 126,105 Total capital assets, being depreciated, net $ 86,245 $ (18,838) $ $ $ 67,407 49 City of Waterloo, Iowa Notes to Basic Financial Statements Note 6. Capital Assets (Continued) Depreciation expense was charged by the City as follows for the year ended June 30, 2015: Governmental activities: Public safety $ 889,830 Public works 11,589,914 Culture and recreation 1,664,335 Community and economic development 168,094 General government 160,457 Total governmental activities 14,472,630 Business -type activities: Sanitary sewer 2,590,099 Sanitation 284,618 Total business -type activities 2,874,717 Total primary government $ 17,347,347 Component unit - Waterloo Water Works $ 670,812 Component unit - Waterloo Convention & Visitors Bureau, Inc. $ 18,838 Note 7. Deferred Compensation Plans Deferred frozen sick leave payout: Retirees have the option of receiving their frozen sick leave (Note 8) payout immediately or receiving it as an annuity over 60 months. If the annuity option is selected, interest is paid to the retiree at the same rate as the City pays on the general obligation bonds last issued before the retirement date. As of June 30, 2015, no employees were receiving annuitized payouts. During 2001, the City began offering an early sick leave payout option. Qualifying employees can elect to receive 60 percent of the balance in their frozen sick leave bank over a 52 -month period prior to their retirement or termination of employment. As of June 30, 2015, one employee was receiving payments, the remaining balance was $6,441 and is attributable to governmental activities. Deferred compensation is reported in business -type activities as accrued liabilities and in the governmental -type activities as a long-term liability. IMO 50 — City of Waterloo, Iowa Notes to Basic Financial Statements Note 8. Compensated Absences City employees accumulate vacation and sick leave hours for subsequent use or for payment upon termination or retirement. A calendar year is primarily used for the calculation of vacation pay benefits while sick leave utilizes the City's fiscal year. Vacation days for most bargaining unit employees must be taken or paid during the calendar year with limited exceptions. Nonbargaining unit employees may carry forward up to 10 days vacation with proper approval. Upon termination, employees receive payment for unused vacation plus a payment for vacation hours accrued from January through the termination date. As of June 30, 2015, there was $2,732,388 accrued for vacation. Prior to July 1, 1984, sick leave was allowed to accumulate to a maximum of 240 days, except for police and fire personnel who could accumulate a maximum of 260 days. Any unused days as of July 1, 1984 were accumulated into a frozen sick leave bank. The days frozen in the bank are paid upon use, termination or retirement (except for library employees who will only be paid upon use). If paid upon retirement, the amount due to employees is computed as the amount equal to 60 percent of the total accumulated hours times the employee's current pay rate paid to employees. Retirees have the option of receiving the payout immediately or receiving it as an annuity over 60 months. As discussed in Note 7, active employees could elect to receive a payout of 60 percent of their frozen sick dollars beginning in July 2001. As of June 30, 2015, there was $130,601 accrued for the frozen sick leave bank. After July 1, 1984, sick leave is allowed to accumulate up to 12 days per year. At the end of the year, 25 percent of any unused sick leave is payable to the employee as a bonus and the balance of 75 percent of the unused sick leave is added to the employee's sick leave storage bank for future use. The days accumulated in the bank after July 1, 1984 are not payable upon termination or retirement. Certain Fire Department employees are eligible to receive pay -outs of 75 percent of their unused sick leave, with the balance of 25 percent of their unused leave added to their sick leave storage bank. As of June 30, 2015, $58,426, equivalent to 25 percent of unused sick leave subject to payout, has been accrued. Certain employees can elect either to be paid overtime compensation or to accrue the hours as compensatory time, defined as additional time off from regular hours. Employees are required to be paid for these services upon termination of employment. Maximum hours eligible to be used later as compensatory time are limited by law and labor contracts. Governmental funds do not recognize these accumulations as expenditures until paid. As of June 30, 2015, there was $1,597,418 accrued for unused compensatory time, which includes unused sick leave and frozen sick leave bank. Employees are also eligible to receive pay -outs of a portion of unused casual leave. The City accrued a total of $48,207 for unused casual leave earned during the fiscal year ended June 30, 2015. The sick leave bonus and accrued casual pay are reported as compensated absences in the applicable fund which includes $186,093 in governmental funds, as the liabilities are considered matured and are expected to be liquidated with expendable available financial resources. Frozen sick leave, vacation pay and compensatory time liabilities are accrued when incurred in the government -wide and proprietary fund statements and reported as a liability. 51 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities The following is a summary of the changes in long-term liabilities for the year ended June 30, 2015: June 30, 2014, as restated Governmental activities: General obligation bonds $ 68,505,400 Loans and notes 2,282,005 Deferred compensation 18,958 Compensated absences 3,917,953 Net pension liability - IPERS 10,913,759 Net pension liability - MFPRSI 40,329,185 Increases Decreases and and Issues Retirements June 30, 2015 Due Within One Year $ 8,000,000 $ 9,439,200 220,689 12,517 3,612,552 3,495,498 3,282,198 13,551,779 $ 67,066,200 2,061,316 6,441 4,035,007 7,631,561 26,777,406 $ 9,229,000 232,879 6,203 2,754,756 Subtotal 125,967,260 Unamortized discounts (150,379) Bond premium 871,899 Total long-term liabilities, governmental activities 11,612,552 (6,168) 110,914 30,001,881 (24,485) 83,840 107,577,931 (132,062) 898,973 12,222,838 $ 126,688,780 $ 11,717,298 $ 30,061,236 $ 108,344,842 $ 12,222,838 Business -type activities: General obligation bonds $ 22,219,600 Revenue bonds 1,910,000 Deferred compensation 5,781 Compensated absences 315,195 Net pension liability 2,785,945 Subtotal 27,236,521 Unamortized discounts (100,743) Bond premium 139,315 Total long-term liabilities, business - type activities $ 6,000,000 $ 2,545,800 $ 25,673,800 1,195,000 715,000 5,781 310,565 330,961 837,843 6,310,565 4,915,385 (13,218) 103,096 20,054 294,799 1,948,102 28,631,701 (87,525) 222,357 $ 2,611,000 575,000 243,778 3,429,778 $ 27,275,093 $ 6,413,661 $ 4,922,221 $ 28,766,533 $ 3,429,778 Compensated absences and the net pension liability attributable to governmental activities are generally liquidated by the General Fund. The City issues bonds and notes primarily to provide funds for the acquisition and construction of major capital facilities. General obligation bonds and notes have been issued for governmental and business - type activities and to refund debt. Revenue bonds have been issued to fund the acquisition and construction of sanitary sewer facilities and to refund prior general obligation and revenue debt. General obligation bonds and notes are direct obligations and pledge the full faith and credit of the City. Revenue bonds are the obligations of the Sanitary Sewer Enterprise Fund and are generally payable solely from the revenue of the Sanitary Sewer Enterprise Fund. Bonds generally are issued as 15- to 20 - year serial bonds. 52 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) On June 29, 2015, the City issued $12,455,000 in General Obligation Bonds, Series 2015A, maturing June 1, 2016 through June 1, 2030 with interest rates ranging from 3 percent to 3.5 percent. Of the total balance for the Series 2015A bonds, $6,455,000 was designated for general purpose and $6,000,000 was for sewer purposes. On June 29, 2015, the City issued $1,545,000 in Taxable General Obligation Bonds, Series 2015B maturing June 1, 2016 through June 1, 2029 with interest rates ranging from 1.5 percent to 4 percent. Reasons for issuance were to finance certain capital improvements including $6,000,000 for sewer system improvements, equipment and vehicle acquisitions and urban renewal projects in the City and pay a portion of the costs of issuance of the bonds. The City's outstanding general obligation long-term debt is as follows: Outstanding Issue Date Purpose Interest Rates June 30, 2015 June 2007 Taxable 5.400 - 5.600 $ 290,000 June 2008 Various 3.500 - 3.900 2,680,000 June 2008 Taxable 5.000 1,035,000 June 2009 Refunding 1.000 - 5.000 970,000 June 2009 Taxable 1.750 - 5.750 4,415,000 June 2010 Refunding 1.000 - 2.450 1,630,000 June 2010 Taxable 1.000 - 5.000 6,115,000 June 2011 Refunding 2.000 - 4.000 7,605,000 June 2011 Taxable 0.600 - 4.600 6,670,000 June 2012 Taxable 2.000 - 2.300 6,580,000 June 2012 Refunding 0.350 - 1.350 3,185,000 June 2012 Taxable 2.200 - 3.500 4,390,000 June 2013 Taxable 2.000 - 3.700 11,325,000 June 2013 Refunding 0.500 - 2.500 1,085,000 June 2014 Taxable 1.000 - 4.000 13,575,000 June 2014 Refunding 2.000 7,190, 000 June 2015 Taxable 3.000 - 3.500 12,455,000 June 2015 Taxable 1.500 - 4.000 1,545,000 Total 53 $ 92,740,000 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) Annual debt service on general obligation and revenue bonds as of June 30, 2015 are as follows: GO Debt Service General Obligation Bonds Principal Interest Year ending June 30: 2016 $ 9,229,000 $ 1,932,658 2017 8,678,200 1,713,222 2018 7,738,000 1,489,146 2019 6,836,000 1,285,771 2020 5,360,000 1,094,380 2021 - 2025 19,014,000 3,449,842 2026 - 2030 10,211,000 817,801 $ 67,066,200 $ 11,782,820 Sanitary Sewer Enterprise Sanitary Sewer Enterprise General Obligation Bonds Revenue Bonds Principal Interest Principal Interest Year ending June 30: 2016 $ 2,611,000 $ 785,277 $ 575,000 $ 17,413 2017 2,501,800 734,576 140,000 4,200 2018 2,492,000 671,833 2019 2,464,000 607,262 2020 2,005,000 538,801 - 2021-2024 9,341,000 1,724,254 - 2025 - 2029 4,259,000 345,192 - $ 25,673,800 $ 5,407,195 $ 715,000 $ 21,613 The City has pledged future sewer customer revenues, net of specified operating expenses, to repay $21,235,000 in sewer system revenue bonds issued August 2004 and $6,285,000 in sewer system refunding revenue bonds issued July 2011. Proceeds from the bonds issued August 2004 were used to construct improvements to the sewer plant. Proceeds from the bonds issued July 2011 were used to currently refund the 2004 bonds and pay costs of issuance on the 2011 bonds. The bonds are payable solely from sewer customer net revenues and are payable through 2017. Annual principal and interest payments on the bonds are expected to require less than 90 percent of net revenues in any one year of the life of the bond. The total principal and interest remaining to be paid on the bonds is $736,613. Principal and interest paid for the current year and total customer net revenues were $1,233,703 and $3,590,949, respectively. The resolutions providing for the issuance of revenue bonds include the following covenants: 1. The bonds will only be redeemed from the future earnings of the sewer system and the bondholders hold a lien on the future earnings. 2. Sufficient monthly transfers shall be made to the sewer revenue bond and interest sinking account for the purpose of making the bond principal and interest payments when due. 3. Monthly transfers will be made to establish a sewer revenue debt reserve fund. (The minimum required is currently $628,500). The amounts shall be used solely for the purpose of paying principal or interest on the bonds when insufficient money is available in the sinking fund. Whenever it shall become necessary to use the funds in the debt reserve fund, monthly payments shall be established to restore the funds used within a three-year period. City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) 4. Monthly transfers of $20,000 shall be made to the sewer improvement fund until the fund equals or exceeds $450,000. Amounts in the improvement fund not otherwise specially limited by provisions of the bond resolution shall first be used for the purpose of paying principal or interest on the bonds when there shall be insufficient money in the sinking fund and the reserve fund, to pay the cost of extraordinary maintenance or repairs, renewals and replacements not included in the annual budget of revenue and current expenses, payment of rentals on any part of the system or payments due for any property purchased as a part of the system and for capital improvements to the system. Whenever it becomes necessary to use the improvement fund, the monthly payments required shall be continued or resumed until the fund is restored to the required minimum balance. 5. The City will cause to be kept proper books and accounts adapted to the system and in accordance with accounting principles generally accepted in the United States of America, and will cause the books and accounts to be audited annually not later than 270 days after the end of each fiscal year by an independent auditor. 6. The City will faithfully and punctually perform all duties with reference to l:he Sewer Enterprise required by the Constitution and laws of the state of Iowa. 7. The City will establish rates to allow net revenue to meet or exceed 125 percent of debt service requirements for the year. For the year ended June 30, 2015, sewer net revenue was 211 percent of sewer revenue bond debt service. Loans and notes: The City, through its blended component unit, Waterloo Housing Authority, is indebted to the Federal Financing Bank (FFB) for $81,017 from the purchase of the Ridgeway Towers housing complex. The debt is scheduled to mature November 1, 2015. The United States Department of Housing and Urban Development pays interest and principal of $86,364, annually, directly to FFB. The City reports the payment transaction in the GO Debt Service Fund. During the years ended June 30, 2013 and 2011, the City had drawn $195,348 and $235,082, respectively, in loans from the Iowa Department of Economic Development, Brownfield Redevelopment Program (Department). The loans are at zero percent with no payments due in years one through five. The loan may be forgiven if planned increases in taxable valuation of property within the redevelopment area have been attained. Repayment of unforgiven loan is to be repaid in 10 equal semiannual payments as determined by the Department at a 6 percent interest rate. As of June 30, 2015, the unpaid principal was $255,430. The City has entered into development agreements including rebates of property taxes paid by other parties to the agreements. Most agreements include a set percentage of taxes paid for a specified number of years. Since payment years and amounts are unknown, they are not included in the schedule of maturities of debt. The following agreements require a guaranteed amount of principal plus interest to be paid to the developer. • Wilbert Burial Vault Co., $28,976 plus interest at 5 percent, compounded annually. The City was to pay all accrued interest by September 30, 2007 after which 90 percent of eligible property taxes will be rebated until interest and principal have been paid. • Young Development, Ltd., $29,596 plus interest at 5 percent, payable semiannually beginning November 2009 until paid in full from 100 percent of property tax payments, subject to annual appropriation. • Deer Creek Development, LLC, $1,666,289 plus interest at 7 percent through March 31, 2011 then at 4.750 percent, compounded semiannually. In fiscal year 2014, there were additions to the agreement of $6,130. Payable at $300,000 in fiscal year 2011 and semiannual payments of $100,000 are due beginning November 2011 until principal plus interest have been paid. 55 City of Waterloo, Iowa Notes to Basic Financial Statements Note 9. Long -Term Liabilities (Continued) Other loans and notes: Other governmental activity loans and notes mature as follows: Governmental Activities GO Debt Service Nonmajor Governmental Funds Principal Interest Principal Interest Year ending June 30: 2016 $ 81,017 $ 5,347 $ 151,862 $ 80,295 2017 - - 193,775 72,875 2018 184,214 65,289 2019 - - 192,383 58,703 2020 - - 199,118 51,968 2021 - 2025 - 920,226 215,888 2026 - 138,721 4,256 $ 81,017 $ 5,347 $ 1,980,299 $ 549,274 Discretely presented component unit: Balance Balance Due Within December 31, 2013 Additions Deletions December 31, 2014 One Year Capital loan notes $ 1,125,000 $ 809,000 $ 1,518,000 $ 416,000 $ Compensated absences 50,137 61,600 50,137 61,600 61,600 Subtotal 1,175,137 870,600 1,568,137 477,600 61,600 Less unamortized discount 6,392 6,392 - Total long-term debt $ 1,168,745 $ 870,600 $ 1,561,745 $ 477,600 $ 61,600 The Water Works has pledged future gross revenue, net of specified operating expenses to repay $809,000 in water revenue capital loan notes issued on July 29, 2014. Proceeds from the notes were used for the refunding of the Series 2007 capital loan notes. The refunding resulted in an economic savings of $24,315, with a present value of $22,937. Debt indentures require that certain covenants relating to the maintenance and efficiency of the operating system, the rate structure, restrictions on borrowings, leasing or disposition of assets and minimum insurance coverage be adhered to. As of December 31, 2014 annual maturities of long-term debt were as follows: Year ending December 31: Principal Interest Total 2015 $ $ - $ 2016 416,000 1,976 417,976 $ 416,000 $ 1,976 $ 417,976 City of Waterloo, Iowa Notes to Basic Financial Statements Note 10. Operating Leases Effective July 1, 1999, the City's sanitary sewer operations entered into a five-year agreement for the management of biosolid by-products produced at the Wastewater Treatment Facility. The agreement included the lease of a storage facility. This lease was extended August 1, 2014 for another five-year period, at a monthly rental of $4.900. Rental expense for all material operating leases was $112,600 for the year ended June 30, 2015. Cedar Valley SportsPlex: The Cedar Valley SportsPlex, a 125,000 square foot recreational facility that includes indoor soccer fields, gyms, a leisure pool, fitness facility, running track and multi-purpose activity spaces, opened in January 2014. The facility is a joint project of the City and the Waterloo Development Corporation. The Waterloo Development Corporation raised the funds, through a combination of private donations and grants from the Black Hawk County Gaming Association, to construct the $23 million facility. The City acquired the property where the facility is located and signed a lease purchase agreement to operate the facility for $100 per year. The lease purchase agreement gave the City the option to take ownership of the facility at the end of the lease term or to cease operating the facility at that time. In August 2014, the lease agreement was amended to remove that option, so the property will automatically transfer to the City at the end of the lease term. The Waterloo Development Corporation signed an agreement with the City which guarantees that the fundraising for construction will be completed. Because there is an automatic transfer of the assets at the end of the term of the agreement, and that future lease payments to the Waterloo Development Corporation are nominal, the City has reported a capital contribution of $21,456,954 for the year ended June 30, 2015, and no capital lease liability as of June 30, 2015. The Leisure Services department of the General Fund is operating the facility with a combination of existing and additional staff positions. The intent is for the facility to be self-supporting. Note 11. Retirement Systems As a result of the adoption of GASB Statement No. 68 and No. 71, the beginning net position of the governmental activities, business -type activities, and each enterprise fund were restated. The effect on fiscal year 2014 is as follows: Governmental Business -Type Nonmajor - Activities Activities Sanitary Sewer Sanitation Net position June 30, 2014, as previously reported $ 313,448,986 $ 92,676,796 $ 87,416,841 $ 5,259,955 Net pension liability (51,242,944) (2,785,945) (2,013,336) (772,609) Pension related deferred outflows 5,525,276 287,228 207,573 79,655 Net position June 30, 2014, as restated $267,731,318 $ 90,178,079 $ 85,611,078 $ 4,567,001 Iowa Public Employees' Retirement System: Plan description: Employees of the City are provided with pensions through the Iowa Public Employees Retirement System (IPERS)—a cost-sharing multiple -employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to (PERS, P.O. Box 9117, Des Moines, Iowa, 50306-9117. 57 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Benefits provided: IPERS provides retirement, disability and death benefits. Retirement benefits are determined based on the employee's highest five-year average salary and a multiplier based on the years of service. Employees are eligible for full retirement age 65; at age 62 with at least 20 years of covered employment or when the years of service plus the employee's age equals or exceeds 88. Four years of service is required for nonservice-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Death benefits are calculated based on the actuarial present value of the employee's accrued benefit at the time of death or a calculation based on the employee's contributions, highest covered annual wage and years of service. Contributions: Per Iowa Code Section 97B.4(4)(d) the required contribution rate is determined by the IPERS actuary as the rate necessary to fully fund the benefits as defined by Iowa Code Chapter 97B. Employees are required to contribute 5.95 percent of their annual pay. The City contractually required contribution rate for the year ended June 30, 2015, was 8.93 percent of annual payroll, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the City were $1,500,510 for the year ended June 30, 2015. Pension Liabilities, Pension Expense, and Deferred Inflow and Outflows of Resources Related to Pensions At June 30, 2015, the City reported a liability of $9,579,663 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014, 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 a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating governments, actuarially determined. At June 30, 2014, the City's proportion was 0.2415504 percent, an increase of 0.002949 percent from the City's proportion at June 30, 2013. For the year ended June 30, 2015, the City recognized pension expense of $660,565. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 104,112 $ Changes of assumptions 422,773 Net difference between projected and actual earnings on pension plan investments (3,653,411) Changes in proportion and differences between City contributions and proportionate share of contributions - (241,656) Total deferred amounts to be recognized in pension expense in future periods 526,885 (3,895,067) City contributions subsequent to the measurement date 1,500,510 Total deferred amounts related to pensions $ 2,027,395 $ (3,895,067) .010 58 — City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) $1,500,510 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, 2016. 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 of 5.28 years or 5 years (as of the beginning of the fiscal year) as follows: Year Ended June 30: 2016 2017 2018 2019 2020 Deferred Outflows of Resources Deferred Inflows of Resources $ 123,104 123,104 123,104 123,104 34,469 $ (969,814) (969,814) (969,814) (969,814) (15,811) $ 526,885 $ (3,895,067) Actuarial assumptions: The total pension liability was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00 percent Salary increases 4.00 to 17.00 percent, average, including inflation. Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation Mortality rates were based on the RP -2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. Subsequent to the actuarial valuation date used by the plans, the Society of Actuaries issued updated mortality scales and mortality improvement scales; MP2014 and MP -15. It is expected these scales may increase the total pension liability by 4 percent to 8 percent unless the plans experience indicates otherwise. The City has not been provided the impact of these scales but believes the updated scales, if determined appropriate for the plan, will have a material impact on the City's net pension obligation. The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the four-year period ending June 30, 2013. 59 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) 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 weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 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 Long -Term Asset Expected Real Allocation Rate of Return U.S. equity 23% 6.31% Non U.S. equity 15 6.76 Private equity 13 11.34 Real estate 8 3.52 Core plus fixed income 28 2.06 Credit opportunities 5 3.67 TIPS 5 1.92 Other real assets 2 6.27 Cash 1 (0.69) 100% Discount rate: The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from cities 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 7.50 percent, 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 -percentage -point lower (6.50 percent) or 1 - percentage -point higher (8.50 percent) than the current rate: 1% Decrease (6.50%) Discount Rate (7.50 (Y0) 1% Increase (8.50 (Y0) City's proportionate share of the net pension liability $ 18,100,504 $ 9,579,663 $ 2,387,190 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 can be located at www.ipers.org. 60 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) 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 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 percent of the member's average final compensation. Additional benefits are available to members who perform more than 22 years of service (2 percent 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 tc 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 percent 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 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 percent of the member's retirement benefit at the member's earliest date eligible and 100 percent 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 the form of a lump sum or rollover to an eligible plan. 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 percent 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 percent 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 percent of average final compensation for those with less than 5 years of service. 61 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent 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 percent 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 percent 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 de� es a $100 000 lump sbm payment. er who dies due to a traumatic personal injury e incurred in the of duty ece Contributions: Member contribution rates are set by state statute. In accordance with Chapter 411 of 4 neral Assembly, to the Code Woarke sodified by act f the Benefitt P otections Act, theecontribution rate was s9.4 lish compliance with the of Iowa s percent of earnable ble Federal Older compensation for the year ended June 30, 2015. 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 percent 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 percent of earnable compensation. The City's contribution rate was 30.41 percent for the year ended June 30, 2015. The City's contributions to MFPRSI for the year ended June 30, 2015 was $4,565,261. 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 percent of earnable compensation. The State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2014. Net Pension Liabilities, Pension Expense, and Deferred Inflows and Outflows of Resources Related to Pensions: At June 30, 2015, the City reported a liability of $26,777,406 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014, 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 loyers. was relative.2 thepercent, contributions, a decrea e of 0.09RSI 77553lpating percent from the Ciitt June ty's proportion June 30, 2013.he City's ortion was 5.720520 perce , 62 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) For the year ended June 30, 2015, the City recognized pension expense of $1,624,680. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ - $ (58,688) Changes of assumptions 1,532,657 Net difference between projected and actual earnings on pension plan investments (9,747,791) Changes in proportion and differences between City contributions and proportionate share of contributions (443,906) Total deferred amounts to be recognized in pension expense in future periods 1,532,657 (10,250,385) City contributions subsequent to the measurement date 4,565,261 Total deferred amounts related to pensions $ 6,097,918 $ (10,250,385) $4,565,261 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, 2016. 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 of 5.60 years or 5 years (as of the beginning of the fiscal year) as follows: Year Ended June 30: Deferred Deferred Outflows of Inflows of Resources Resources 2016 $ 358,097 $ (2,554,376) 2017 2018 358,097 (2,554,376) 2019 358,097 (2,554,376) 2020 358,097 (2,554,376) 100,269 (32,881) $ 1,532,657 $ (10,250,385) Actuarial Assumptions: The total pension liability in the June 30, 2014, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00 percent Salary increases 4.00 to 15.11 percent, average, including inflation. Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation 63 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period from July 1, 2002 to June 30, 2012. Mortality rates used by the plan were based weighting equal to 2/12 of the 1971 GAM table and 10/12 of the 1994 GAM table with no projection of future mortality improvement. The City updated the mortality rates used by the MFPRSI actuary to the RP -2000 Blue Collar Mortality with projected mortality improvement using scale BB -2D. As a result, the City increased its net pension obligation by approximately $6 million as of June 30, 2015. Subsequent to the actuarial valuation date used by the plans, the Society of Actuaries issued updated mortality scales and mortality improvement scales; MP2014 and MP -15. It is expected these scales may increase the total pension liability by 4 percent to 8 percent unless the plans experience indicates otherwise. The City has not been provided the impact of these scales but believes the updated scales, if determined appropriate for the plan, will have a material impact on the City's net pension obligation. 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 (i.e., 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. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long -Term Asset Expected Real Asset Class Allocation Rate of Return Core plus fixed income 7.0% 3.80% Emerging markets debt 3.0 6.50 Domestic equities 12.5 6.00 Master limited partnerships 5.0 8.50 International equities 12.5 7.00 Tactical asset allocation 35.0 6.00 Private equity 15.0 9.80 Private non-core real estate 5.0 9.30 0 6.80 Private core real estate 5. 5.100% Discount rate: The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions will be made at 9.40 percent 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. 64 City of Waterloo, Iowa Notes to Basic Financial Statements Note 11. Retirement Systems (Continued) 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 percent, 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 -percent lower (6.50 percent) or 1 -percent higher (8.5 percent) than the current rate. 1% Decrease (6.50%) Discount Rate (7.50 %) 1% Increase (8.50 %) City's proportionate share of the net pension liability $ 46,560,919 $ 26,7 77,406 $ 10,339,086 Component Unit Plan description: The Waterloo Water Works (Utility) maintains the Waterloo Water Works Pension Plan (Plan), which is a single employer defined benefit plan administered by the Penson Committee of the Waterloo Water Works. The Plan provides retirement benefits to plan members and beneficiaries. Cost - of -living adjustments are provided to members and beneficiaries at the discretion of the Committee. The Plan does not issue a stand-alone financial report. The actuarial report on the Plan is held at the Utility's office. Funding policy: The contribution requirements of Plan members and the Utility are established and may be amended by the Utility. Mandatory contributions to the Plan are equal to the IF'ERS rate effective January 1 of the previous year. During 2009, plan members contributions were not required and the Utility made all the required contributions. Beginning January 1, 2010, plan members were required to contribute one-third of the full contribution rate of 4.1 percent and the Utility paid the rest of the required contribution. As of January 1, 2011, plan members are required to contribute two-thirds of the full contribution rate of 4.3 percent and beginning January 1, 2012, plan members were required to contribute all of the mandatory contributions. Amounts contributed to the plan during 2014, 2013 and 2012 were $481,861, $480,199 and $423,689, respectively. Annual pension cost and net pension obligation: The annual pension cost for 2014 was determined as part of the actuarial valuation using the January 1, 2014 projected unit credit cost method. The actuarial assumptions for 2014 included (a) 8 percent investment rate of return (net of administrative expenses) and (b) projected salary increases of 3 percent per year, compounded annually and retirement at age 62 with 30 years of service. The assumptions did not include any postretirement benefits. The actuarial value of assets was determined using the current market value of investments. Three -Year Trend Information Year Ending Annual Percentage Net Pension Pension of APC Obligation Cost (APC) Contributed (Asset) December 31, 2012 423,689 100% $ December 31, 2013 480,199 December 31, 2014 100 481,861 100 65 City of Waterloo, Iowa Notes to Basic Financial Statements Note 12. Deficit Fund Balances Funds with deficit balances as of June 30, 2015 were as follows: Major governmental, Special revenue, Grants Non major governmental: Special revenue: Community Development Block Grant Federal Aviation Agency Projects Capital projects, Capital Improvements $ 3,198,162 6,673 27,266 2,264,126 The deficit of the above funds are expected to be eliminated through future transfers from other funds, grant proceeds or bond proceeds. Note 13. Commitments Construction: The City is involved in construction of capital assets, mainly streets, riverfront improvements and Brownfields reconstruction. Much of the construction is partially funded through federal, state and local grants and donations. City participation in the programs is generally funded through proceeds of debt issues, local option taxes and distributions from the Black Hawk County Solid Waste Management Commission. As of June 30, 2015, the City was committed to approximately $17.8 million of construction contracts. Property tax rebates: The City has entered into a number of development agreements with various businesses located in City tax increment financing districts. The agreements offer rebates of portions of taxes paid for up to 10 years, depending on each individual agreement. The amount of the rebates are a percentage of the actual taxes paid by the business. Rebates are reported at the time property taxes are received. See Note 9 for additional information. Loan guarantee: The City has guaranteed a bank loan of Cedar Skyline Corporation d/b/a Main Street Waterloo, a not-for-profit corporation. Main Street Waterloo and the City are not part of the same reporting entity. In 1999, Main Street Waterloo entered into a loan agreement with a financial institution, which was amended in 2006 and 2010. The note matures monthly through July 15, 2015. When the loan was entered into, the City voted to extend a nonexchange financial guarantee on the Main Street Waterloo loan. In the event that Main Street Waterloo is unable to repay the loan, the City would be required to make the payment, with no requirements for Main Street Waterloo to repay the City if the City has to pay any amount on the loan. As of June 30, 2015, the loan balance was $216,425. Based on City management's assessment of the qualitative factors and historical data, the City has not recorded a liability for this nonexchange financial guarantee. Note 14. Other Postemployment Benefits Plan description: The City sponsors a single -employer health care plan that provides self-insured medical, prescription drug, dental and vision benefits to all active and retired employees and their eligible dependents. As required by state law, employees who retire from service with the City prior to age 65 are eligible for coverage in the plan. Police and fire employees must have completed four years of service, be age 55 and vested in the Municipal Fire and Police Retirement System. All other employees must have completed four years of service (seven years of service after July 1, 2012), be age 55 and be vested in IPERS to participate in the plan. Retirees are allowed to be covered by the plan until they are medicare eligible at age 65. Spouses of retirees are eligible to be covered on the plan for an additional eight years or until they reach age 65, whichever is sooner. Other dependents are allowed to be covered under the plan while an eligible dependent. The plan does not issue a stand-alone financial report. 66 City of Waterloo, Iowa Notes to Basic Financial Statements Note 14. Other Postemployment Benefits (Continued) Funding policy: Management develops the health insurance plan contributions based on expected claims. The current funding policy of the City is to pay health claims as they occur. Retirees are responsible for the portion of premium rates not covered by the City. The required contribution is based on projected pay-as-you-go financing. For fiscal year 2015, the City contributed $1,592,523. Retiree and active members receiving benefits have required contributions of $623 per month for single health coverage and $1,576 for family coverage. Annual OPEB cost and net OPEB obligation: The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance to the parameters for GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actuarially contributed to the plan and changes in the City's annual OPEB obligation: Annual required contribution Interest on net OPEB obligation $ 1,744,000 Adjustment to annual required contribution 217,000 Annual OPEB cost (expense) (248,047) Contributions and payments made 1,712,953 Increase in net OPEB obligation 1,592,523 Net OPEB obligation - July 1, 2014 Net OPEB obligation - June 30, 2015 120,430 4,837,000 $ 4,957,430 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligations for 2014 and the two preceding years follows. Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPER Cost Cost Contributed Obligation June 30, 2013 June 30, 2014 $ 2,247,227 81.53% $ 4,720,000 June 30, 2015 1,723,884 93.21 4,837,000 1,712,953 92.97 4,957,430 Funded status and funding progress: As of July 1, 2013, the most recent valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $22,667,000 and the actuarial value of assets is none resulting in an unfunded actuarial accrued liability (UAAL) of $22,667,000. The covered payroll (annual payroll of active employees covered by the plan) was $34,171,476 and the ratio of the UAAL to the covered payroll was 72.72 percent. 67 City of Waterloo, Iowa Notes to Basic Financial Statements Note 14. Other Postemployment Benefits (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial methods and assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and included in the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2013 actuarial valuation, projected unit credit method was used. The actuarial assumptions included a 4.5 percent annual discount rate, a healthcare cost trend rate of 8.5 percent on a select basis reducing 0.5 percent each year until reaching the ultimate trend rate of 5 percent, an annual salary increase of 3.5 percent, and an inflation rate of 3.5 percent. The UAAL is being amortized as a level percentage or of of the subsidypen basis. The amortization of and a period of 30 years for heimplicit portionL is over a eriod of 20 of the subsidy. years for the explicit portion of Note 15. Employee Health Care Plan The City provides health care, including dental, vision and prescription coverages, to its employees and certain former employees through a self-funded health insurance plan. Administration is provided by contracted providers. The City accounts for the plan in the General Fund, City Clerk and Finance Department, Health/Life Insurance Activity. Other funds, departments and activities are assessed for costsrefbased on current and benefits levy employees the Truen st and Agency Funde activity. . The City isl Fund ts of these al owed to activitiesevy are funded by an employ amounts needed to provide benefits. The City purchases stop -loss insurance, $100,000 specific and 125 percent aggregate of expected claims. The City's estimated unpaid claims as of June 30 and its needed reserves for claim fluctuation were determined by an actuarial study performed as of June 30. All outstanding claims are considered matured and expected to be paid in fiscal year 2015, with current available financial resources, and accordingly, a liability payable from restricted resources is reported within the General Fund. Changes and balances are as follows: Estimated unpaid claims, beginning of year Estimated claims incurred Claims payments Estimated unpaid claims, end of year As of June 30, 2015, the City has $9,171,476 of net position restricted for the payment of future health claims. 2015 2014 $ 978,898 $ 1,383,055 8,934,148 8,047,440 (8,900,850) (8,451,597) $ 1,012,196 $ 978,898 68 City of Waterloo, Iowa Notes to Basic Financial Statements Note 16. Worker's Compensation Plan The City provides worker's compensation benefits through a self-funded plan. Administration is provided by a contracted provider. The City accounts for the plan in the General Fund, City Clerk and Finance Department, Self -Funded Worker's Compensation Activity. Costs are funded by an employee benefits levy in the Trust and Agency Fund. The City is allowed to levy amounts needed to provide benefits. The City's estimated unpaid claims as of June 30 are based on projected costs of future payments for injuries incurred prior to June 30, 2015, and is recorded as a liability in the government -wide statement of net position. $66,777 is considered matured and is recorded in the General Fund with accrued liabilities Changes and balances are as follows: Estimated unpaid claims, beginning of year Estimated claims incurred Claims payments Estimated unpaid claims, end of year 2015 2014 $ 401,986 $ 284,320 659,700 653,572 (661, 909) (535, 906) $ 399,777 $ 401,986 Note 17. Joint Ventures and Jointly Governed Organizations The City is a participating member of several organizations including the Black Hawk County Criminal Justice Information System (CJIS), the Consolidated Dispatch Center (Center), the Black Hawk County Solid Waste Management Commission (SWMC) and the Metropolitan Transit Authority (MET). In addition, the City pays its share of costs for CJIS, including debt service, pays its share of costs of the Center, pays landfill fees to SWMC and levies and collects property taxes from Black Hawk County and remits them to MET ($1,444,738 during the year ended June 30, 2015). During the year ended June 30, 2015, the City did not receive any distribution from SWMC. Cumulative unexpended SWMC distributions are reported in the General Fund as designated for Vision Iowa projects. Also, during the year ended June 30, 2015, the Sanitation Fund received an operating grant of $273,624 from SWMC. This grant was used to offset recycling costs. The Center's financial information is reported within the Black Hawk County annual financial report. CJIS, SWMC and MET issue their own annual reports. Reports are available on the Iowa Auditor of State's website http://auditor.iowa.gov/reports. The City has no equity position in any of the organizations. Note 18. Industrial Development Revenue Bonds The City has issued a total of $160,401,000 of industrial development revenue bonds under the provisions of Chapter 419 of the Code of Iowa. The amount outstanding as of June 30, 2015 is not reported to the City by either the debtors or creditors. Therefore, outstanding balances are unknown. The bonds and related interest are payable solely from revenue of applicable projects. Bond principal and interest do not constitute liabilities of the City. 69 City of Waterloo, Iowa Notes to Basic Financial Statements Note 19. Risk Management The City is exposed to various risks of loss related to torts; theft, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the purchase of commercial insurance and self-funded worker's compensation. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The City assumes the risks of loss of both mobile vehicles and equipment, except for certain pieces of equipment, such are fire and forestry equipment, with large per-unit costs which are insured against loss subject to deductibles. As of June 30, 2015, the City has assigned $3,279,404 of its General Fund, fund balance for insurable risks retained. Note 20. Fund Balances GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund types. The details for the City's fund balances are as follows: Tax General Trust and Increment Local Obligation Nonmajor Fund balances: General Agency Grants Financing Option Tax Debt Service Governmental Total Nonspendable: $ $ $ $ $ 290,434 $ 543,392 Inventories $ 252,958 $ 8,446 79,269 Prepaids 70,823 Total298,880 622,661 nonspendable 323,781 Restricted: 4,712,935 873,291 5,586,226 Debt service Self-funded health ,171,476 insurance 7,327,369 1,844,107 9 9,175,476 Tourism promotion 1,115,425 140,667 .... Public access 40,662 Housing television 140,667 - Civil rights enforcement 50,472 4,157,809 4,232,575 74,766 400,648 Donor specified 400,648 - Employee benefits 400,6 8 402,813 114,230 114,230 Library Street and right-of-way 5,067,682 5,067,682 maintenance 4,159,663 17,554,891 21, 714, 554 Improvements 4,712,935 4,159,663 873,291 26,894,612 47,996,768 '"" Total restricted 9,109,347 2,246,920 3,279,404 Assigned: Insurance 3,279,404 •••••Other postemploy- 1,040,792 ment benefits 1,040,792 40,792 111 Other 28,111 Use of fund balance for 500,000 500,000 80,579 2,396,279 Total asssigsig 453,433 1,862,267 future budget FY B453,433 1,862,267 80,579 7,244,586 ned 4,848,307 (3,198,162) (2,513,688) 4,513,109 Unassigned 10,224,959 R Total fund 873,291 $ 24,760,383 $ 60,377,124 balances (deficit) $ 24,506,394 $ 2,246,920 $ (3,198,162)$ 5,166,368 $ 6,021,930 $ 70 City of Waterloo, Iowa Notes to Basic Financial Statements Note 21. New GASB Statements and Pending Pronouncements 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. 72, Fair Value Measurement and Application, issued February 2015, will be effective for the City with its year ending June 30, 2016. This Statement defines fair value and describes how fair value should be measured, what assets and liabilities should be measured at fair value, and what information about fair value should be disclosed in the notes to the financial statements. This Statement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments, which generally are measured at fair value, are defined as a security or other asset that governments hold primarily for the purpose of income or profit and the present service capacity of which are based solely on their ability to generate cash or to be sold to generate cash. The related disclosures have been expanded to categorize fair values according to their relative reliability and to describe positions held in many alternative investments. • GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, issued in June 2015, will be effective for the City beginning with its fiscal year ending June 30, 2018. The Statement replaces the requirements of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions and requires governments to report a liability on the face of the financial statements for the OPEB they provide and outlines the reporting requirements by governments for defined benefit OPEB plans administered through a trust, cost-sharing OPEB plans administered through a trust and OPEB not provided through a trust. The Statement also requires governments to present more extensive note disclosures and required supplementary information about their OPEB liabilities. Some governments are legally responsible to make contributions directly to an OPEB plan or make benefit payments directly as OPEB comes due for employees of other governments. In certain circumstances, called special funding situations, the Statement requires these governments to recognize in their financial statements a share of the other government's net OPEB liability. • GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, issued July 2015, will be effective for the City beginning with its fiscal year ending June 30, 2016. This statement reduces the GAAP hierarchy to two categories of authoritative GAAP from the four categories under GASB Statement No. 55. The first category of authoritative GAAP consists of GASB Statements. The second category comprises GASB Technical Bulletins and Implementation Guides, as well as guidance from the AICPA that is cleared by the GASB. The Statement also addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. 71 City of Waterloo, Iowa Notes to Basic Financial Statements Note 21. New GASB Statements and Pending Pronouncements (Continued) • GASB Statement No. 77, Tax Abatement Disclosures, issued August 2015, will be effective for the City beginning with its fiscal year ending June 30, 2017. This statement requires governments to disclose information about their own tax abatements separately from information about tax abatements that are entered into by other governments and reduce the reporting government's tax revenues. The disclosures about the government's own tax abatement agreements includes the purpose of the tax abatement program, the tax being abated, the amount of tax being abated, the provisions of recapturing abated taxes, the types of commitments made by tax abatement recipients, and other commitments made by government in tax abatement agreements. The disclosures about tax abatements that are entered into by other nt's tax revenues includes the name of governments and entering reduce into the abateme t agreement,the government e the tax being abated, and the amount of the g reporting government's tax being abated. The City's management has not yet determined the effect these statements will have on the City's financial statements. 72 City of Waterloo, Iowa Required Supplementary Information Other Postemployment Benefit Plan SCHEDULE OF FUNDING PROGRESS Unfunded Actuarial (Over UAAL as a Actuarial Accrued funded) Percentage Fiscal Actuarial Value of Liability ML Funded Covered of Covered Year Valuation Assets (ML) (UAAL) Ratio Payroll Payroll Ended Date (a) (b) (b -a) (a/b) (c) [(b-a)/c] 2013 7/1/11 $ $ 29,248,000 $ 29,248,000 - % $ 31,774,140 92.05% 2014 7/1/13 22,667,000 22,667,000 32,617,036 69.49 2015 7/1/13 - 22,667,000 22,667,000 31,171,476 72.72 The information presented in the required supplementary schedule was determined as part of the actuarial valuation date as of July 1, 2013. Additional information follows: a. The actuarial method used to determine the ARC is the projected unit credit method. b. There are no plan assets. c. The actuarial assumptions included: a) 4.5 percent annual discount rate, b) a healthcare cost trend rate of 8.5 percent initially, decreasing 0.5 percent each year until reaching the ultimate trend rate of 5 percent, c) an annual salary increase of 3.5 percent, and d) an inflation rate of 3.5 percent. ._ d. The amortization method is level percentage of pay on an open basis over 30 years. 73 City of Waterloo, Iowa Required Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Iowa Public Employees' Retirement System 2015 City's proportion of the net pension liability 0.2415504% City's proportionate share of the net pension liability $ 9,579,663 City's covered -employee payroll $ 15,816,626 City's proportionate share of the net pension liability as a percentage of its covered payroll 60.57% Plan fiduciary net position as a percentage of the total pension liability 87.61% Note: GASB Statement No. 68 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. The amounts presented each year are as of the City's measurement date. See Notes to Required Supplementary Information. City of Waterloo, Iowa Required Supplementary Information Schedule of City Contributions Iowa Public Employees' Retirement System Contributions Contributions in Relation to City's as a Percentage Statutorily the Statutorily Contributions Covered- of Covered Required Required Deficiency Employee Employee Contribution Contribution (Excess) Payroll Payroll 2015 $ 1,500,510 $ 1,500,510 $ $ 16,800,363 8.93% 2014 1,420,507 1,420,507 15,816,626 8.98% 2013 1,358,920 1,358,920 N/A N/A 2012 1,250,399 1,250,399 N/A N/A 2011 1,066,879 1,066,879 N/A N/A 2010 991,202 991,202 - N/A N/A 2009 923,462 923,462 N/A N/A 2008 843,709 843,709 N/A N/A 2007 743,851 743,851 - N/A N/A 2006 722,024 722,024 - N/A N/A N/A - information was not available Note: The amounts reported in this schedule are as of the City's fiscal year-end. See Notes to Required Supplementary Information. 75 City of Waterloo, Iowa Note to Required Supplementary Information — IPERS Pension Liability Year Ended June 30, 2015 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. 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 of assumptions The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: • Decreased the inflation assumption from 3.25 percent to 3.00 percent • Decreased the assumed rate of interest on member accounts from 4.00 percent to 3.75 percent per year. • Adjusted male mortality rates for retirees in the Regular membership group. • Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64. • Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 year period. The 2010 valuation implemented the following refinements as a result of a quadrennial experience study: • Adjusted retiree mortality assumptions. • Modified retirement rates to reflect fewer retirements. • Lowered disability rates at most ages. • Lowered employment termination rates • Generally increased the probability of terminating members receiving a deferred retirement benefit. • Modified salary increase assumptions based on various service duration. The 2007 valuation adjusted the application of the entry age normal cost method to better match projected contributions to the projected salary stream in the future years. It also included in the calculation of the UAL amortization payments the one-year lag between the valuation date and the effective date of the annual actuarial contribution rate. 76 City of Waterloo, Iowa Note to Required Supplementary Information — IPERS Pension Liability Year Ended June 30, 2015 Note 2. Changes of assumptions (Continued) The 2006 valuation implemented the following refinements as a result of a quadrennial experience study: • Adjusted salary increase assumptions to service based assumptions. • Decreased the assumed interest rate credited on employee contributions from 4.25 percent to 4.00 percent. • Lowered the inflation assumption from 3.50 percent to 3.25 percent. • Lowered disability rates for sheriffs and deputies and protection occupation members. 77 City of Waterloo, Iowa Required Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Municipal Fire and Police Retirement System of Iowa 2015 City's proportion of the net pension liability 5.720520% City's proportionate share of the net pension liability $ 26,777,406 City's covered -employee payroll $ 14,608,497 City's proportionate share of the net pension liability as a percentage of its covered payroll 183.30% Plan fiduciary net position as a percentage of the total pension liability 86.27% Note: GASB Statement No. 68 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. The amounts presented each year are as of the City's measurement date. See Notes to Required Supplementary Information. 78 City of Waterloo, Iowa Required Supplementary Information Schedule of City Contributions Municipal Fire and Police Retirement System of Iowa 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contribution Contributions Deficiency (Excess) City's Covered - Employee Payroll $ 4,565,261 4,418,650 3,844,363 3,522,615 2,731,277 2,249,021 2,417,019 3,074,329 3,319,634 3,290,718 $ 4,565,261 4,418,650 3,844,363 3,522,615 2,731,277 2,249,021 2,417,019 3,074,329 3,319,634 3,290,718 N/A - information was not available Note: The amounts reported in this schedule are as of the City's fiscal year-end. See Notes to Required Supplementary Information. 79 $ 15,012,366 14,608,497 N/A N/A N/A N/A N/A N/A N/A N/A Contributions as a Percentage of Covered Employee Payroll 30.41% 30.25% N/A N/A N/A N/A N/A N/A N/A N/A City of Waterloo, Iowa Note to Required Supplementary Information — MFPRSI Pension Liability Year Ended June 30, 2015 Note 1. Changes of Benefit Terms There were no significant changes of benefit terms. Note 2. Changes of Assumptions Effective July 1, 2014, two additional steps were taken to phase in the 1994 Group Annuity Mortality Table for post-retirement mortality. The two additional steps result in a weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994 Group Annuity Mortality Table. The City also updated the mortality assumptions to the RP -2000 Blue Collar Mortality table with projected mortality improvement using scale BB -2D for the June 30, 2014 measurement date. 80 This Page Intentionally Left Blank City of Waterloo, Iowa Budgetary Comparison Schedule Budget and Actual (Modified Cash Basis) - All Governmental Funds and Proprietary Funds Required Supplementary Information Year Ended June 30, 2015 Budgeted Amounts Original Final Revenues and other financing sources receipts: Receipts: Property taxes $ 39,200,603 $ 39,200,603 Tax increment financing 6,992,576 6,992,576 Other City taxes 17,132,306 17,132,306 Licenses and permits 1,294,160 1,294,160 Use of money and property 1,279,842 1,285,162 Intergovernmental 33,856,683 35,571,382 Charges for services 24,366,493 24,524,486 Special assessments 203,000 239,500 Miscellaneous 4,866,253 5,861,179 Total receipts 129,191,916 132,101,354 Other financing sources: Transfer from other funds Issuance of long-term debt Proceeds from sale of capital assets Total other financing sources Total receipts and other financing sources Disbursements and other financing uses: Governmental -type activities: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business -type activities Total disbursements Other financing uses, transfers to other funds Total disbursements and other financing uses Receipts and other financing sources over (under) disbursements and other financing uses Balances, beginning of year Balances, end of year See Note to Required Supplementary Information. 81 16,289, 977 16,305,477 12, 000, 000 12, 000, 000 265,000 405,872 28,554,977 28,711,349 157, 746, 893 160,812,703 31,561,091 31,692,140 26,753,984 27,630,891 466,285 478,185 10,977,972 11,402,078 12,191, 841 12, 915, 287 5,259,572 6,309,657 14,835,268 14, 835, 268 26,237,354 30,753,343 19,143,662 19,410,662 147,427,029 155, 427, 511 16, 289, 977 16,305,477 163,717,006 171,732,988 (5,970,113) (10,920,285) 80,076,319 86,850,290 $ 74,106,206 $ 75,930,005 Variance Actual Amounts With Final Budgetary Basis Budget $ 38,539,187 $ (661,416) — 7,325,760 333,184 17,352,504 220,198 1,405,514 111,354 1,516,379 231,217 26,298,157 (9,273,225) 24,070,832 (453,654) 211,889 (27,611) — 6,154,226 293,047 122,874,448 (9,226,906) — 14,040,543 (2,264,934) 14,000,000 2,000,000 280,280 (125,592) 28,320,823 (390,526) 151,195,271 (9,617,432) 30,643,491 1,048,649 28,425,008 (794,117) — 404,111 74,074 10,638,002 764,076 11,609,949 1,305,338 5,747,310 562,347 14,712,870 122,398 23,142,793 7,610,550 17,315,749 2,094,913 — 142,639,283 12,788,228 16,305,477 142,639,283 29,093,705 — 8,555,988 19,476,273 86,850,290 - $ 95,406,278 $ 19,476,273 82 City of Waterloo, Iowa Note to Required Supplementary Information — Budgetary Reporting Year Ended June 30, 2015 In accordance with the Code of Iowa, the City Council annually adopts a budget on a modified cash basis following required public notice and hearing for all funds. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon 10 major classes of disbursements known as functions, not by fund or fund type. These 10 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 and nonprogram. Although the budget document presents function disbursements by fund type, the legal level of control is at the aggregated function level, not at the fund or fund type level. During the year, a budget amendment was adopted which increased budgeted expenditures by $8,015,982. The budget amendment is reflected in the final budgeted amount. The City uses the same modified cash basis of accounting for budgetary reporting as is used for its internal financial records. Under this basis, cash transactions are modified by certain receivables and payables and by certain noncash revenue and expenditures. In addition, many transactions which should be recorded in and reported by the Sanitary Sewer Enterprise Fund are recorded in and reported by governmental funds. 83 This Page Intentionally Left Blank City of Waterloo, Iowa Schedule of Comparison Funds Statements (GAAP Basis) to Budgetary (Modified Cash) Basis Required Supplementary Information Year Ended June 30, 2015 Governmental Enterprise Fund Fund Types Basis Types Basis Actual Amounts Actual Amounts Total Funds Revenue/Receipts: $ 45,440,607 Property taxes and TIF revenue $ 45,440,607 $ Other taxes 17,599,304 17,599,304 Licenses and permits 1,413,739 - 1,413,739 Use of money and property 1,477,497 39,714 1,517,211 Intergovernmental 28,647,425 298,560 28,945,985 Charges for services 7,371,370 16,188,881 23,560,251 Interfund charges for services 1,935,000 1,935,000 Special assessments 127,266 127,266 Miscellaneous 2,760,949 61,737 2,822,686 Total revenue/receipts 106,773,157 16,588,892 123,362,049 Expenditures and expenses/disbursements: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business -type activities Total expenditures and expenses/ disbursements (Continued) 30,588,630 34,515,685 407,060 10,633,238 11,783,311 5,459,817 11,683,256 11,855,746 16,130,876 30,588,630 34,515,685 407,060 10,633,238 11,783,311 5,459,817 11,683,256 11,855,746 16,130, 876 116, 926, 743 16,130,876 133,057,619 Net (10,153,586) 458,016 (9,695,570) 84 Property Tax Collected Budgetary for and Other GAAP Basis Remitted Conversion Budgetary Exceptions to MET Adjustments Basis $ $ 1,444,738 $ (1,020,398) $ 45,864,947 (246,800) 17,352,504 (8,225) 1,405,514 (832) 1,516,379 (2,647,828) 26,298,157 510,581 24,070,832 (1,935,000) - 84,623 211,889 3,331,540 6,154,226 1,444,738 (1,932,339) 122,874,448 54,861 30,643,491 1,444,738 (7,535,415) 28,425,008 (2,949) 404,111 4,764 10,638,002 (173,362) 11,609,949 287,493 5,747,310 3,029,614 14,712,870 11,287,047 23,142,793 1,184, 873 17, 315, 749 1,444,738 8,136,926 142,639,283 (10,069,265) (19,764,835) City of Waterloo, Iowa Schedule of Comparison Funds Statements (GAAP Basis) to Budgetary (Modified Cash) Basis (Continued) Required Supplementary Information Year Ended June 30, 2015 Governmental Enterprise Fund Fund Types Basis Types Basis Actual Amounts Actual Amounts Total Funds Other financing sources (uses): $ 10,276,970 Transfers in $ 10,276,970 $ (10,276,970) - (10,276,970) Transfers out 1,400 Insurance proceeds 1,400 Bond discount (6,168) (6,168) 110,914 Bond premium 110,914 Proceeds from sales of capital assets 18,692 18,692 Issuance of long-term debt 8,000,000 8,000,000 Total other financing sources (uses) 8,124,838 8,124,838 Change in fund balance/net position Balance, beginning of year Balance, end of year (2,028,748) 458,016 (1,570,732) 62,405,872 90,178,079 152,583,951 $ 60,377,124 $ 90,636,095 $ 151,013,219 Property Tax Collected Budgetary for and Other GAAP Basis Remitted Conversion Budgetary Exceptions to MET Adjustments Basis $ - $ $ 3,763,573 $ 14,040,543 10,276,970 (1,400) 6,168 (110,914) 261,588 280,280 6,000,000 14,000,000 20,195,985 28,320,823 10,126,720 8,555,988 (65,733,661) 86,850,290 _ $ $ $ (55,606,941) $ 95,406,278 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund Year Ended June 30, 2015 Revenues: Property taxes $ 19,181,066 Other taxes 6,991,109 Licenses and permits 1,387,340 Investment income 72,596 Rent 1,037,693 Intergovernmental 1,208,120 Charges for services 7,116,773 Indirect allocations 1,885,000 Special assessments 127,266 Miscellaneous 1,463,565 Total revenues $ 40,470,528 Expenditures: Public safety function Mayor Black Hawk Emergency Management Agency Contractual services $ 96,389 Total activity and department 96,389 Police department Police operations Compensation and benefits 11,331,501 Contractual services 916,939 Commodities 271,251 Total activity 12,519,691 Police computer services Contractual services Commodities Total activity 75,416 83,347 158,763 Police grants Compensation and benefits 534,364 Contractual services 5,161 Commodities 32,657 Total activity 572,182 Law enforcement programs Compensation and benefits 32,687 Contractual services 142,392 Commodities 90,857 Total activity 265,936 Tobacco grant Compensation and benefits Total activity (Continued) 4,164 4,164 88 — City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures (continued): Public safety function (continued) Police department (continued) Public safety administration Compensation and benefits Contractual services $ 143,119 Commodities 1,150 Total activity 258 144,527 Total department 13,665,263 Fire department Fire protection Compensation and benefits Contractual services 8,105,329 Commodities 427,326 Total activity 85,839 8,618,494 Fire restricted programs Compensation and benefits Contractual Services Total activity 12,260 33,617 45,877 Fire ambulance services Compensation and benefits Contractual services 1,619,477 Commodities 183,273 Total activity 178,201 1,980,951 Fire safety program Compensation and benefits Contractual services 124,248 Commodities 29,684 Total activity 1,073 155,005 Total department 10,800,327 Traffic operations department Animal Control Compensation and benefits Contractual services 135,938 Commodities 49,959 Total activity and department 26,434 212,331 Building inspection department Building and housing safety Compensation and benefits Contractual services 1,098,185 Commodities 23,671 Total activity and department 35,004 1,156, 860 (Continued) 89 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures: Public safety function (continued) Central garage department Fire - garage parts & service Compensation and benefits $ 83,657 104,5917 Commodities 188,248 Total activity and department Ambulance - garage parts & service Commodities Total activity and department 36,237 36,237 Public safety function totals Current 23,224,929 Compensation and benefits 1,224,929 Contractual services 84,977 Commodities $ 26, 9945,749 Total public safety function Public works function Mayor Telecommunications $ 100 Contractual services 100 — Total activity and department Clerk Parking administration 82,210 Compensation and benefits 0 755 Contractual services 82,2 Commodities 10 125,278 Total activity and department Sidewalk repair/construction Capital outlay Total activity and department 212,625 212,625 — Traffic operations Parking maintenance 195,321 Compensation and benefits Contractual services 45,083 5,083 Commodities 254,552 Total activity and department Central garage Central garage 702,851 Compensation and benefits 18,683 Contractual services 97,139 Commodities 818,673 Total activity Motor pool service Commodities Total activity Total department (Continued) 90 384,747 384,747 1,203,420 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures: Public works function (continued) Airport Airport administration Compensation and benefits $ 557,503 Contractual services 243,709 Commodities 111,683 Total activity and department 912,895 Public works function totals Current Compensation and benefits 1,537,885 Contractual services 350,325 Commodities 608,439 Subtotal 2,496,649 Capital outlay 212,625 Total public works function $ 2,709,274 Health and social services function Mayor Health and sanitation Contractual services $ 75,000 Total activity and department 75,000 Human rights department Human rights Compensation and benefits 219,795 Contractual services 11,880 Commodities 4,057 Total activity 235,732 EEOC contract Contractual services Total activity Housing enforcement Contractual services Commodities Total activity Cedar Valley diversity action team Contractual services Total activity Total department 33,169 33,169 61,986 1,118 63,104 55 55 332,060 Health and social services function totals Current Compensation and benefits 219,795 Contractual services 182,090 Commodities 5,175 Total health and social services function $ 407,060 (Continued) 91 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures: Culture and recreation function Mayor Fairview cemetery association Contractual services $ 50,000 Total activity and department 50,000 Cultural/arts Center for the arts Compensation and benefits 698,665 Contractual services 82,918 Commodities 40,803 Total activity 822,386 Youth pavilion Compensation and benefits 272,464 Contractual services 53,588 Commodities 21,759 Total activity 347,811 Public art Contractual services Total activity 442 442 Culture and arts grants and projects Compensation and benefits 2,305 Contractual services 66,967 Commodities 692 Total activity 69,964 Total department 1,240,603 Library Library services Compensation and benefits 1,308,413 Contractual services 235,812 Commodities 208,049 Total activity 1,752,274 Library Enrich Iowa Contractual services Commodities Total activity Library access plus Commodities Total activity Library grants Contractual services Commodities Total activity (Continued) 92 10,292 4,917 15,209 2,996 2,996 7,167 171,439 178,606 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures (continued): Culture and recreation function (continued): Library (continued): Library gift and trust Contractual services $ 16,716 Commodities 29,469 Total activity 46,185 Library service area Commodities 4,000 Capital outlay 2,954 Total activity 6,954 County library system Compensation and benefits Total activity Library open access Contractual services Total activity Total department 56,703 56,703 1,320 1,320 2,060,247 Leisure services Leisure services Compensation and benefits 1,872,676 Contractual services 234,681 Commodities 283,232 Capital outlay 16,026 Total activity 2,406,615 Downtown area maintenance Compensation and benefits 189,414 Contractual services 41,448 Commodities 28,191 Total activity 259,053 Leisure services projects Compensation and benefits 1,000 Contractual services 80,680 Commodities 59,232 Capital outlay 96,917 Total activity 237,829 Golf courses Compensation and benefits 951,791 Contractual services 111,758 Commodities 152,400 Total activity 1,215,949 Golf course improvements Contractual services Commodities Total activity (Continued) 93 873 24,644 25,517 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures (continued): Culture and recreation function (continued): Leisure services (continued) Sports and youth services Compensation and benefits $ 445,611 Contractual services 26,032 Commodities 120,496 Total activity 592,139 Young arena Compensation and benefits 429,822 Contractual services 166,034 Commodities 178,502 Total activity 774,358 Sportsplex Compensation and benefits 720,374 Contractual services 307,863 Commodities 134,461 Total activity 1,162,698 Total department 6,674,158 Culture and recreation function totals Current Compensation and benefits 6,949,238 Contractual services 1,494,591 Commodities 1,465,282 Subtotal 9,909,111 Capital outlay 115,897 Total culture and recreation function $ 10,025,008 Community and economic development function Mayor Iowa northland council of governments Contractual services $ 31,467 Total activity 31,467 Tourism promotion Contractual services Total activity Waterloo Convention & Visitors Bureau, Inc. Contractual services Total activity Total department 263,230 263,230 602,883 602,883 897,580 Planning and zoning Planning and zoning Compensation and benefits 514,614 Contractual services 22,479 Commodities 5,159 Total activity 542,252 City property management Contractual services Total activity (Continued) 104,164 104,164 94 — City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures (continued): Community and economic development function (continued): Planning and zoning (continued) Economic development Compensation and benefits $ 42,244 Total activity 42,244 Total department 688,660 Five Sullivans Civic Center Compensation and benefits 92,139 Contractual services 91,501 Commodities 14,557 Total activity and department 198,197 Community and economic development function totals Current Compensation and benefits 648,997 Contractual services 1,115,724 Commodities 19,716 Total community and economic development function $ 1,784,437 Mayor Mayor's office Compensation and benefits $ 183,535 Contractual services 11,302 Commodities 1,123 Total activity 195,960 Management information services projects Contractual services Commodities Total activity 24,385 10,205 34,590 Administrative and management information services Compensation and benefits 100,286 Contractual services 298,351 Commodities 7,475 Total activity 406,112 Total department 636,662 City council City council Compensation and benefits Contractual services Total activity and department (Continued) 95 67,530 1,302 68,832 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures: General government function (continued): City clerk and finance Telecommunications Compensation and benefits $ 141,634 Contractual services 777 Commodities 961 Total activity 143,372 — City clerk and finance Compensation and benefits 734,254 Contractual services 266,765 Commodities 70,374 Total activity 1,071,393 Liability insurance Compensation and benefits Contractual services Total activity Health/life insurance Compensation and benefits Contractual services Total activity Self-funded worker's compensation Contractual services Total activity Print shop Contractual services Total activity Total department 43,290 1,505,818 1,549,108 — (231) 92,033 91,802 708,995 708,995 36,435 36,435 3,601,105 City attorney City attorney Compensation and benefits 175,466 Contractual services 124,436 Commodities 8,672 Total activity and department 308,574 Human resources Employee assistance program Contractual services Total activity 2,015 2,015 Human resources Compensation and benefits 281,672 Contractual services 49,128 Commodities 2,300 Total activity 333,100 (Continued) 96 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures (continued): General government function (continued): Human resources (continued): Safety committee Compensation and benefits $ 1,057 Contractual services Commodities 4,238 Total activity 4,568 9,863 Total department 344,978 Building inspection Facilities maintenance Compensation and benefits Contractual services 249,205 Commodities 193,150 Total activity 35,201 477,556 Facilities restricted project Contractual services Commodities 148 Total activity 3,612 3,760 Veteran's memorial hall Contractual services Total activity Total department 7,909 7,909 489,225 General government function totals Current Compensation and benefits Contractual services 1,977,698 Commodities 3,302,802 Total general government function 134,286 $ 5,414,786 97 City of Waterloo, Iowa Schedule of Revenues, Expenditures and Changes in Fund Balances (Continued) General Fund Year Ended June 30, 2015 Expenditures: Public safety Public works Health and social services Culture and recreation Community and economic development General government Total expenditures $ 26,155,655 2,709,274 407,060 10,025,008 1,784,437 5,414,786 $ 46,496,220 Revenue under expenditures $ (6,025,692) Other financing sources (uses): Transfers in Transfers out Insurance proceeds Proceeds from sale of capital assets Total other financing sources Net change in fund balance Fund balance, beginning of year Fund balance, end of year 98 7,042,926 (208,513) 1,400 18,692 6,854,505 828,813 23,712,171 $ 24,540,984 AWNS City of Waterloo, Iowa Combining Balance Sheet Nonmajor Governmental Funds June 30, 2015 Assets Special Revenue Capital Projects Total Cash and cash equivalents $ 6,020,964 $ 18,004,757 $ 24,025,721 Receivables: Customer accounts 1,159 1,616,842 1,618,001 Property taxes: Md.Delinquent 6,513 6, 513 Succeeding year 573,673 Accrued interest - 573,673 12 12 Due from other governments: Federal 635,016 635,016 Iowa 1,827,171 1,827,171 Other 6,468 6,468 Inventories and prepaids 298,880 Restricted assets, cash and cash equivalents 298,880 2, 041,122 2,041,122 Advances to other funds 116,014 116,014 Total assets $ 11,526,992 $ 19,621,599 $ 31,148,591 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 213,443 $ 1,365,573 $ 1,579,016 Retainages payable 1,365 62,244 63,609 Accrued liabilities 140,376 Due to other funds 140,376 422,904 1,501,797 1,924,701 Compensated absences 28,815 Payable from restricted assets 98,4 91,439 91,4399 -- Total liabilities 898,342 2,929,614 3,827,956 Deferred inflows of resources: Unavailable revenue - property taxes Unavailable revenue - intergovernmental Total deferred inflows of resources 580,186 580,186 363,880 944,066 1,616,841 1,980,721 1,616,841 2,560,907 Fund Balances: Nonspendable 298,880 Restricted 298,880 Assigned 9,481,098 17,413,514 26,894,612 80,579 80,579 Unassigned (175,318)2,338,370 ( ) (2,513,688) Total fund balances 9,685,239 15,075,144 24,760,383 Total liabilities, deferred inflows of resources and fund balances 99 $ 11,527,647 $ 19,621,599 $ 31,149,246 City of Waterloo, Iowa Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2015 Special Revenue Capital Projects Total Revenues: $ 580,744 Property taxes $ 580,744 $ 26,032 - 26,032 Other taxes 26,399 Licenses and permits 26,399 Investment income 2,671 57,784 60,455 Rent 191,570 191,570 15,684,598 15,684,598 Intergovernmental 215,776 Charges for services 215,776 Interfund charges for services 50,000 50,000 Miscellaneous 123,839 791,356 915,195 Total revenues 16,901,629 849,140 17,750,769 Expenditures: Current: 21,780 Public safety 21,7808,201,532 Public works 8,201,532 596,015 Culture and recreation 596,0157,988,494 Community and economic development 7,988,494 170 General government 170 - 7,0001 Debt service, interest and fees 7,000 Capital outlay 11,855,246 11,855,246 Total expenditures 16,807,991 11,862,246 28,670,237 Revenues over (under) expenditures 93,638 (11,013,106) (10,919,468) Other financing sources (uses): Transfers in Bond discount Bond premium Issuance of long-term debt Total other financing sources (uses) 249,270 110,914 (6,168) 8,000,000 249,270 110,914 (6,168) 8,000,000 8,354,016 8,354,016 Net change in fund balance 93,638 Fund balance, beginning of year Fund balance, end of year (2,659,090) (2,565,452) 9,591,601 17,734,234 27,325,835 $ 9,685,239 $ 15,075,144 $ 24,760,383 100 City of Waterloo, Iowa Special Revenue Funds June 30, 2015 Special Revenue Funds account for the proceeds of specific revenue sources that are legally or contractually restricted for particular purposes. The proceeds are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes, as follows: Nonmajor: Library Tax Levy Fund — This fund is used to account for property taxes levied, as passed by local referendum, to be used to increase the hours of operation of the Waterloo Public Library. Community Development Block Grant Fund — This fund accounts for revenue received under the Community Development Block Grant federal entitlement. Road Use Tax Fund — This fund is required by the Code of Iowa to account for the City's share of fuel taxes collected and allocated by the state which is restricted for local street maintenance. Housing Programs Fund — This fund is used to account for resources received to provide housing assistance, primarily Federal Section 8 and Ridgeway Towers. Federal Aviation Agency Projects Fund — This fund is used to account for resources from the Federal Aviation Agency and Passenger Facility Charges restricted for airport development. 101 City of Waterloo, Iowa Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2015 Assets Cash and cash equivalents Receivables: Customer accounts Property taxes: Delinquent Succeeding year Accrued interest Due from other funds Due from other governments: Federal Iowa Other Inventories and prepaids Restricted cash and cash equivalents Advances to other funds Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Retainages payable Accrued liabilities Due to other funds Compensated absences Payable from restricted assets Total liabilities Deferred inflows of resources: Unavailable revenue - property taxes Unavailable revenue - intergovernmental Total deferred inflows of resources Special Revenue Community Library Development Tax Levy Block Grant Road Use Tax $ 198,924 $ 2,859 $ 3,553,919 6,513 573,673 987 655 120,962 - 3,812 1,773,365 6,225 - 290,434 7,825 108,189 $ 793,160 $ 127,633 $ 5,727,549 $ - $ 73,154 $ 88,165 15,984 14,593 95,392 38,146 45,562 2,181 4,601 17,853 18,165 130,494 246,972 580,186 - - 3,812 122,463 580,186 3,812 122,463 Fund balances: Nonspendable 114,230 - Restricted 80,579 - Assigned Unassigned - (6,673) Total fund balances 194,809 (6,673) 290,434 5,067,680 5,358,114 Total liabilities, deferred inflows of resources and fund balances $ 793,160 $ 127,633 $ 5,727,549 102 Special Revenue Federal Aviation Housing Programs Agency Projects Total $ 2,265,262 $ $ 6,020,964 172 1,159 6,513 573,673 12 - 12 655 19,555 494,499 635,016 49,994 1,827,171 243 6,468 8,446 298,880 2,006,474 34,648 2,041,122 116,014 $ 4,299,921 $ 579,384 $ 11,527,647 $ 23,640 $ 14,407 4,180 91,439 28,484 $ 213,443 1,365 1,365 140,376 339,196 422,904 28,815 91,439 133,666 8,446 4,157, 809 4,166,255 369,045 898,342 580,186 237,605 363,880 237,605 944,066 298,880 141,379 9,481,098 80,579 (168,645) (175,318) $ 4,299,921 $ (27,266) 9,685,239 579,384 $ 11,527,647 103 City of Waterloo, Iowa Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended June 30, 2015 Special Revenue Community Library Development Section 108 Tax Levy Block Grant Loan Program Road Use Tax Revenues: Property taxes $ 580,744 $ $ $ Other taxes 26,032 _ 26,399 Licenses and permits Investment income 430 151 - Rent Intergovernmental 2,453,705 7,480,627 Charges for services - 47,023 39,051 Interfund charges for services - - 50,000 Miscellaneous 83,766 36,774 Total revenues 607,206 2,584,494 151 7,632,851 Expenditures: Current: Public safety 7,004,519 Public works Culture and recreation 596,015 - - Community and economic development - 2,533,534 517,472 General government - 170 Total expenditures 596,015 2,533,534 517,642 7,004,519 Excess of revenues over expenditures 11,191 50,960 (517,491) 628,332 Fund balances, beginning of year 183,618 (57,633) 517,491 4,729,782 Fund balances, end of year $ 194,809 $ (6,673) $ $ 5,358,114 104 Special Revenue Housing Programs Federal Aviation Agency Projects Total 1,674 191,570 4,571,288 24,655 3,299 $ 580,744 26,032 26,399 416 2,671 191,570 1,178,978 15,684,598 105,047 215,776 50,000 123,839 4,792,486 4,937,488 1,284,441 16, 901, 629 21,780 21,780 1,197,013 8,201,532 596,015 7,988,494 170 4,937,488 1,218, 793 16, 807, 991 (145,002) 65,648 4,311,257 (92,914) -- $ 4,166,255 $ (27,266) $ 93,638 9,591,601 9,685,239 105 This Page Intentionally Left Blank City of Waterloo, Iowa Capital Projects Funds June 30, 2015 Capital Projects Funds account for the City's financial resources used for the acquisition or construction of major nonproprietary capital facilities. The City of Waterloo has capital projects funds as follows: Nonmajor: June 2009 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2010 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2011 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2012 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2013 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2014 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. June 2015 GO Bonds Fund — This fund is used to account for proceeds obligation bond sale until expended for the restricted purpose. Capital Improvements Funds — This fund is used to account for the use governmental capital projects not accounted for in other capital projects fu specific projects. from the 2009 general from the 2010 general from the 2011 general from the 2012 general from the 2013 general from the 2014 general from the 2015 general of resources on nds and are restricted for 106 City of Waterloo, Iowa Combining Balance Sheet Capital Projects Funds June 30, 2015 June 2009 GO Bonds June 2010 GO Bonds June 2011 GO Bonds Assets Cash and cash equivalents $ 325,876 $ 473,910 $ 868,304 Receivables, customer accounts Total assets $ 325,876 $ 473,910 $ 868,304 Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) Liabilities: Accounts payable $ 6,021 $ $ 19,133 Retainages payable 601 Due to other funds Total liabilities 6,622 19,133 Deferred inflows of resources, unavailable revenue - intergovernmental Fund balances (deficit): Restricted Unassigned Total fund balances (deficit) 319,254 473,910 849,171 319,254 473,910 849,171 Total liabilities, deferred inflows of resources and fund balances (deficit) $ 325,876 $ 473,910 $ 868,304 107 June 2012 June 2013 June 2014 June 2015 Capital GO Bonds GO Bonds GO Bonds GO Bonds Improvements Total $ 1,729,845 $ 1,927,303 $ 4,574,773 $ 8,104,746 $ - $ 18,004,757 - 1,616,842 1,616,842 $ 1,729,845 $ 1,927,303 $ 4,574,773 $ 8,104,746 $ 1,616,842 $ 19,621,599 $ 191,779 $ 31,917 $ 286,690 $ 61,313 68,033 $ 191,779 31,917 348,003 68,033 1,538,066 1,538,066 — $ 1,729,845 $ 1,895,386 1,895,386 1,927,303 $ 4,226,770 8,036,713 4,226,770 8,036,713 4,574,773 $ 8,104,746 $ 108 762,000 $ 1,365,573 330 62,244 1,501,797 1,501,797 2,264,127 2,929,614 1,616,841 1,616,841 74,244 17,413,514 (2,338,370) (2,338,370) (2,264,126) 15,075,144 1,616,842 $ 19,621,599 City of Waterloo, Iowa Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) Capital Projects Funds Year Ended June 30, 2015 June 2009 GO Bonds June 2010 GO Bonds June 2011 GO Bonds Revenues: Investment income $ 2,110 $ 2,281 $ 4,192 Miscellaneous Total revenues 2,110 2,281 4,192 Expenditures: Debt service, interest expense Capital outlay Total expenditures 7,000 187,141 54,190 255,875 194,141 54,190 255,875 Revenues over (under) expenditures (192,031) Other financing sources (uses): Transfers in Bond discount Bond premium Issuance of long-term debt Total other financing sources (uses) Net change in fund balances (deficit) Fund balances (deficit), beginning of year Fund balances (deficit), end of year (51,909) (251,683) (192,031) 511,285 (51, 909) 525,819 (251, 683) 1,100, 854 $ 319,254 $ 109 473,910 $ 849,171 June 2012 GO Bonds June 2013 GO Bonds $ 12,743 $ 12,743 12,372 $ June 2014 June 2015 Capital GO Bonds GO Bonds Improvements Total 12,372 896,283 896,283 2,058,239 2,058,239 (883,540) (2,045,867) 24,086 $ $ $ 57,784 791,356 791,356 24,086 791,356 849,140 - - 7,000 6,302,148 68,033 2,033,337 11,855,246 6,302,148 68,033 2,033,337 11,862,246 (6,278,062) (68,033) (1,241,981) (11,013,106) (883,540) (2,045,867) 2,421,606 $ 1,538,066 $ 3,941,253 1,895,386 $ 249,270 249,270 (6,168) - (6,168) 110,914 - 110,914 8,000,000 - 8,000,000 8,104,746 249,270 8,354,016 (6,278,062) 8,036,713 (992,711) (2,659,090) 10, 504, 832 _ (1,271,415) 17,734,234 4,226,770 $ 8,036,713 $ (2,264,126) $ 15,075,144 110 This Page Intentionally Left Blank City of Waterloo, Iowa Fiduciary Funds June 30, 2015 Fiduciary Funds account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. The City of Waterloo has the following fiduciary fund: Agency Fund — This fund is used to account for property taxes collected on behalf of the Metropolitan Transit Agency, Water Works kill water assessments, and building permits passed through to Black Hawk County. 111 City of Waterloo, Iowa Statement of Changes in Assets and Liabilities Agency Fund Year Ended June 30, 2015 Balance Balance June 30, June 30, 2014 Additions Deletions 2015 Assets, cash $ - $ 1,444,738 $ 1,444,738 $ Liabilities, due to private entities $ $ 1,444,738 $ 1,444,738 $ 112 City of Waterloo, Iowa Statistical Section This part of the City of Waterloo's comprehensive annual 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 City's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 114 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 119 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 123 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 128 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the city provides and the activities it performs. 130 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The city implemented GASB Statement 34 in fiscal 2003; therefore, schedules presenting government -wide information include information beginning in that year. 113 City of Waterloo, Iowa Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities Net investment in capital assets $ 69,770,404 $ 193,678,687 $ 202,629,813 $ 216,863,066 $ 233,853,135 $ 243,084,776 $ 250,819,314 $ 264,695,106 $ 273,871,470 $ 307,415,275 Restricted 34,279,423 22,213,054 25,583,429 32,652,537 36,648,414 28,098,845 31,552,558 30,823,956 30,579,471 30,438,501 Unrestricted 6,043,616 5,626,315 7,342,293 4,738,557 3,591,308 9,823,688 9,694,131 7,214,587 8,998,045 (31,681,588) Total governmental activities net position $ 110,093,443 $ 221,518,056 $ 235,555,535 $ 254,254,160 $ 274,092,857 $ 281,007,309 $ 292,066,003 $ 302,733,649 $ 313,448,986 $ 306,172,188 Business -type activities Net investment in capital assets $ 57,945,809 $ 63,144,916 $ 63,754,721 $ 65,420,051 $ 66,494,749 $ 67,576,579 $ 71,243,134 $ 74,508,694 $ 79,920,865 $ 78,270,214 Restricted 6,300,746 3,334,062 3,182,802 3,171,308 3,178,807 3,170,694 1,655,694 1,383,659 1,310,099 727,235 Unrestricted 7,422,263 7,963,580 9,473,128 9,440,050 10,719,450 13,086,820 14,659,699 14,202,857 11,445,832 11,638,646 Total business -type activities net position $ 71,668,818 $ 74,442,558 $ 76,410,651 $ 78,031,409 $ 80,393,006 $ 83,834,093 $ 87,558,527 $ 90,095,210 $ 92,676,796 $ 90,636,095 Primary government Net investment not in capital assets $ 127,716,213 $ 256,823,603 $ 266,384,534 $ 282,283,117 $ 300,347,884 $ 310,661,355 $ 322,062,448 $ 339,203,800 $ 353,792,335 $ 385,685,489 Restricted 40,580,169 25,547,116 28,766,231 35,823,845 39,827,221 31,269,539 33,208,252 32,207,615 31,889,570 31,165,736 Unrestricted 13,465,879 13,589,895 16,815,421 14,178,607 14,310,758 22,910,508 24,353,830 21,417,444 20,443,877 (20,042,942) Total primary government net position $ 181,762,261 $ 295,960,614 $ 311,966,186 $ 332,285,569 $ 354,485,863 $ 364,841,402 $ 379,624,530 $ 392,828,859 $ 406,125,782 $ 396,808,283 I I I I I I I I I I 114 I I I I I I I i i I I I Expenses Governmental activities: Public safety Public works Health and social services Culture and recreation Community and economic development General government Interest on long-term debt Total governmental activities expenses Business -type activities: Sanitary sewer Sanitation Total business -type activities expenses Total primary government expenses Program Revenue Governmental activities: Charges for services: Public safety Public works Culture and recreation Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenue Business -type activities: Charges for services: Sanitary sewer Sanitation Operating grants and contributions: Sanitary sewer Sanitation Capital grants and contributions: Sanitary sewer Sanitation Total business -type activities program revenue Total primary government program revenue Net (Expense)/Revenue Governmental activities Business -type activities Total primary government net expense E I E I I I I I I I I I I I I 2006 $ 25,251,052 11,579, 825 331,759 6,786,963 13,741,135 3,415,216 2,625,800 2007 City of Waterloo, Iowa Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Page 1 of 2) $ 26,046,236 17,265, 784 258,818 8,059,963 9,666,943 3,903,632 2,728,225 63,731,750 67,929,601 8,666,232 3,196,360 11,862, 592 11,469, 452 2008 2009 $ 26,214,669 $ 26,719,053 21,705,472 22,435,723 268,761 260,584 8,408,694 9,512,453 9,581,090 13,520, 082 4,511,057 5,150,029 2,782,119 2,880,205 2010 73,471,862 80,478,129 8,242,650 8,649,104 8,573,832 3,226,802 3,289,854 3,593,300 $ 75,594,342 $ 79,399,053 11,938, 958 12,167,132 $ 28,612,482 22,839,814 244,594 9,951,066 15,138, 776 4,548,726 2,736,194 84,071, 652 8,682,068 3,873,028 12,555,096 $ 85,410,820 $ 92,645,261 $ 96,626,748 $ 1,872,956 $ 1,940,446 $ 3,441,302 $ 3,143,136 1,831,575 1,774,681 1,933,607 1,894,200 2,027,873 2,077,330 2,263,815 2,441,457 637,103 580,948 1,361,824 1,139, 772 18,358,119 16,568, 953 14,018,130 16,803, 356 6,241,861 5,911,499 8,609,193 13,787,329 30,969,487 28,853,857 31,627,871 39,209,250 9,905,507 3,201,266 7,361 311,303 13,425,437 $ 44,394,924 9,321,295 3,274,550 315,437 799,265 13,710,547 14,898,963 17,336,344 $ 42,564,404 $ 45,177,404 $ 52,911,788 $ 57,112,585 $ 52,973,232 $ 3,331,924 1,887,850 2,337,191 1,125,370 18,592,551 14,938,736 2011 $ 29,629,282 23,276, 707 257,618 10,080,005 16,675,218 4,860,959 2,639,047 2012 2013 2014 2015 $ 30,037,249 $ 31,913,280 $ 31,773,269 $ 25,988,767 23,297,561 24,938,888 28,911,525 29,570,277 278,589 299,282 368,173 325,607 10,515,120 10,491,266 11,315, 704 11,676, 287 16,138, 333 14,129, 616 12,910, 299 13,190, 672 4,219,355 3,714,993 2,749,672 4,869,696 2,459,710 2,680,614 2,349,054 2,208,744 87,418,836 86,945,917 88,167,939 90,377,696 87,830,050 10,437, 723 3,408,358 13,846,081 $ 101,264,917 9,730,465 3,680,500 13,410,965 $ 100,356,882 $ 3,874,275 1,984, 786 2,339,044 1,229,991 16,376,376 9,832,416 42,213,622 9,598,454 9,628,876 3,294,443 3,349,978 240,678 339,496 288,866 274,988 127,092 106,200 3,000 13,549, 533 13, 702, 538 11,185,490 3,398,533 314,940 10,033,041 3,640,314 13,673,355 $ 101,841,294 9,811,929 3,215,663 13,027,592 $ 103,405,288 12,518,569 3,612,307 16,130, 876 $ 103,960,926 $ 3,602,246 $ 3,683,489 $ 3,800,273 2,224,870 2,192,414 2,802,925 2,592,204 2,492,426 3,010,899 1,268,316 1,489,631 1,531,761 16,603,449 14,967,188 11,938, 221 10,720,735 9,364,734 12,668,122 35,636,888 37,011,820 34,189,882 35,752,201 13,283,908 13,147, 754 12,285, 502 3,446,332 3,572,238 3,615,787 125,802 399,000 81,302 $ (32,762,263) $ (39,075,744) 1,562,845 2,241,095 $ (31,199,418) $ (36,834,649) $ (41,843,991) 1,610,575 $ (40,233,416) 54,041 215,584 273,869 12,845,301 3,609,500 272,755 $ 4,018,731 2,498,057 3,361,891 1,667,019 11,335, 064 39,116, 737 61,997, 499 12,661, 602 3,585,270 24,236 274,324 82,443 - 560 13,585 17,072, 620 16,188, 743 16,727, 556 16,545,432 $ 54,084,440 $ 50,378,625 $ 52,479,757 $ 78,542,931 $ (41,268,879) $ (41,858,030) $ (51,781,948) $ (49,934,097) 1,535,406 2,343,867 3,490,263 3,661,655 $ (39,733,473) $ (39,514,163) $ (48,291,685) $ (46,272,442) $ (51,462,669) $ (50,925,531) $ (25,417,995) $ (53,978,057) $ (54,625,495) $ (25,832,551) 2,515,388 3,699,964 414,556 115 City of Waterloo, Iowa Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) (Page 2 of 2) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General Revenue and Other Changes in Net Assets Governmental activities: Taxes: Property taxes levied for general purposes $ 24,206,180 $ 25,835,947 $ 25,848,956 $ 27,456,508 $ 28,508,924 $ 28,741,347 $ 29,825,135 $ 31,586,154 $ 30,834,085 $ 30,647,230 Property taxes levied for debt service 9,407,057 9,727,666 10,050,725 11,319,918 11,988,239 12,287,504 12,997,545 13,950,496 13,751,830 14,867,749 Other taxes 12,496,242 12,101,827 13,674, 750 14,208, 362 13,911,219 14,566,088 14,844,322 15,142, 297 16,745, 434 17,471, 721 Investment earnings 1,276,389 1,924,494 1,432,651 426,353 170,946 152,078 54,485 45,578 117,515 180,123 Miscellaneous 3,128,460 4,030,419 3,900,343 6,556,363 5,189,217 2,879,152 3,315,471 3,925,918 2,748,468 1,108,633 Gain (loss) on sale of assets - - 1,827,508 Transfers - 70,231 (44,167) (4,740) (2,035) Total governmental activities 50,514,328 53,620,353 54,907,425 59,967,504 61,596,053 58,696,400 60,992,791 64,645,703 64,197,332 64,273,421 Business -type activities: Investment earnings 402,160 532,645 357,518 85,352 17,730 21,055 18,612 16,555 25,122- 39,711 714 Gain (loss) on sale of assets (70,231) 44,167 4,740 2,711 35 Transfers Total business -type activities 402,160 532,645 357,518 85,352 17,730 (49,176) 62,779 21,295 25,122 43,460 Total primary government $ 50,916,488 $ 54,152,998 $ 55,264,943 $ 60,052,856 $ 61,613,783 $ 58,647,224 $ 61,055,570 $ 64,666,998 $ 64,222,454 $ 64,316,881 Changes in Net Assets Governmental activities $ 17,752,065 $ 14,544,609 $ 13,063,434 $ 18,698,625 $ 19,738,023 Business -type activities 1,965,005 2,773,740 1,968,093 1,620,758 2,361,597 Total primary government $ 19 $ 17 31� $ 15,031,527 $ 20,319,383 $ 22,099,620 $ 6,914,452 $ 11,058,694 $ 10,667,646 $ 10,715,337 $ 38,440,870 3,441,087 3,724,434 2,536,683 2,581,586 458,016 $ 10,355,539 $ 14,783,128 $ 13,204,329 $ 13,296,923 $ 38,898,886 I General Fund Nonspendable $ Restricted $ $ $ $ $ 310,432 $ 326,276 $ 322,077 $ 392,741 $ 323,781 Committed - - 3,602,691 3,438,392 5,497,065 8,667,499 9,109,347 Assigned 662,415 - 36,595 Unassigned - 4,878,877 4,802,837 5,318,721 4,430,460 4,848,307 Reserved 1,841,389 2,159,691 3,074,8692,367,516 3,064,085 8,417,600 9,644,699 8,907,668 10,184,876 10,224,959 Unreserved:- - - Designated 5,186,521 5,131,230 4,577,679 4,720,531 5,077,047 Undesignated 5,679,449 6,946,759 7,438,418 8,152,625 8,610,737 Total general fund $ 12,707,359 $ 14,237,680 $ 15,090,966 $ 15,240,672 $ 16,751,869 $ 17,872,015 $ 18,212,204 $ 20,045,531 $ 23,712,171 $ 24,506,394 City of Waterloo, Iowa Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 All Other Governmental Funds Nonspendable Restricted $ $ $ $ $ - $ 208,100 $ 297,516 $ 233,192 $ 466,165 $ 298,880 Committed 39,357,168 42,286,946 42,907,706 28,709,385 38,887,421 Assigned Unassigned- - - - 2,322,606 2,332,997 2,370,221 80,148 2,396,279 Reserved 1,576,334 2,103,658 2,633,730 2,923,228 2,786,146 (5,150,315) (7,161,884) (4,608,778) (1,929,863) (5,711,850) Undesignated, reported in: - Special revenue funds Debt service funds 12,385,708 13,021,323 16,846,339 17,918,742 16,410,755 1,008,597 1,529,968 Capital project funds 15,962,472 16,440,553 17,205,128 14,259,781 12,144,579 Total all other governmental funds $ 30,933,111 $ 33,095,502 $ 36,685,197 $ 35,101,751 $ 31,341,480 $ 36,737,559 $ 37,755,575 $ 40,902,341 $ 27,325,835 $ 35,870,730 117 Revenue Property taxes Other taxes Licenses and permits Investment income Rent* Intergovernmental Charges for services` Interfund charges for service Special assessments Miscellaneous Total revenue City of Waterloo, Iowa Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2006 $ 33,582,387 12,907,521 1,216,278 1,276,389 920,475 22,716,457 5,429,979 2,801,492 52,698 3,253,989 2007 2008 2009 $ 35,550,774 $ 35,863,457 11,609, 390 13,532, 878 1,528,961 1,274,948 1,924,494 1,432,651 1,023,689 992,710 21,107,074 21,833,988 5,554,760 5,767,327 2,802,327 2,825,152 39,932 39,931 3,878,401 4,683,887 84,157,665 85,019,802 88,246,929 Expenditures Current: Public safety 24,487,582 Public works 20,508,737 Health and social services 401,647 Culture and recreation 6,875,715 Community and economic development 11,177,833 General government 3,698,896 Debt service Principal 6,551,624 Interest and fees 2,627,808 Bond Issuance Costs" - Capital projects 9,570,650 Total expenditures 85,900,492 Revenue over (under) expenditures (1,742,827) Other financing sources (uses) Transfers in Transfers out Insurance proceeds Proceeds from sale of assets Capital lease obligations incurred Refunding bonds issued Payment to refunded bond escrow agent Proceeds from debt issued Bond discounts and issue costs Total other financing sources (uses) 10,433,905 (10,433,905) 232,328 9,100,000 9,332,328 Net change in fund balances $ 7,589,501 Debt service as a percentage of noncapital expenditures 12.0% $ 38,789,695 14,368,254 977,306 426,353 1,060,566 22,932,392 5,963,660 2,808,833 37,216 6,043,260 2010 93,407,535 2011 $ 40,454,704 $ 41,013,565 13,982, 362 14, 703, 052 996,031 1,236,912 170,946 152,078 1,060,889 1,094,271 30,681,962 30,092,432 5,932,437 6,397,007 2,385,680 2,134,553 225,198 47,171 3,773,963 3,292,228 99,664,172 100,163,269 25,074,830 25,958,017 22, 688, 730 15,354, 726 332,431 346,169 7,385,038 7,683,720 9,097,089 10,075,134 4,128,315 4,539,873 7,353,618 8,134,849 2,909,085 2,908,196 25,941,016 23,846,845 333,706 8,844,296 13,954,851 5,532,557 7,698,818 2,975,411 11,035,051 20,405,512 16,639,618 90,004,187 95,406,196 105,767,118 (4,984,385) (7,159,267) (12,359,583) 26,947,910 27,635,226 316,974 9,264,689 17,423,767 5,097,361 8,783,299 2,799,830 15,126,719 113,395,775 102,079,720 27,686,410 19,761,835 325,730 8,960,633 15,740,405 5,623,650 9,565,662 2,623,038 11,792, 357 (13,731,603) (1,916,451) 10,871,913 13,447,647 15,295, 255 14,434,303 (10,871,913) (13,447,647) (15,295,255) (14,434,303) - - 1,421,521 1,734,450 88,102 41,491 74,294 2,243,301 7,995,000 3,935,000 4,271,100 4,240,000 (7,932,132) (3,917,230) (4,200,992) (4,172,380) 8,526,127 9,661,649 9,400,000 7,500,000 60,280 (40,080) (62,842) 8,677,097 9,781,190 10,925,843 11,482,529 $ 3,692,712 $ 2,621,923 $ (1,433,740) $ (2,249,074) 13.0% 14.7% 12.0% * For the fiscal years ended June 30, 2003 and 2004, some rents were included in charges for services and miscellaneous revenue on the Statement of Activities. They have been reclassified to rent on this schedule. **For the fiscal years prior to June 30, 2013, bond issuance costs were included with interest and fees 118 I I I I I I I I I I 11.8% 2012 2013 $ 42,864,091 $ 45,485,229 15,460, 718 14,683, 459 1,119,886 1,128,513 54,485 45,578 1,186,419 1,191,376 25,596,988 27,797,797 6,748,285 6,512,462 1,935,000 1,935,000 93,870 124,467 3,702,763 4,503,173 98,762, 505 103,407,054 29,272,717 25,565,737 346,952 9,396,914 13,794,104 4,956,104 30,517,147 26,286,055 370,275 9,134,554 13,555,391 3,980,405 8,623,207 8,708,554 2,536,705 2,276,310 100,798 14,140,916 9,646,195 108,633,356 104,575,684 (9,870,851) (1,168,630) 2014 2015 $ 44,623,905 $ 45,440,607 16,946, 689 17, 599, 304 1,350,599 1,413,739 117,515 183,938 1,263,682 1,293,559 23,425, 271 28,647, 425 6,894,308 7,371,370 1,935,000 1,935,000 139,408 127,266 3,425,567 2,760,949 100,121,944 106,773,157 30,865,364 29,009,814 365,847 9,835,758 12,966,402 2,468,932 30,588,630 34,515,685 407,060 10,633,238 11,783,311 5,459,817 8,886,944 9,659,890 2,150,525 2,023,366 149,580 - 14,033, 868 11,855, 746 110, 733, 034 116,926,743 (10,611,090) (10,153,586) 13,368,149 14,206, 860 12, 765, 878 11, 006, 208 10, 276, 970 (13,297,918) (14,206,860) (12,765,878) (11,006,208) (10,276,970) 138,157 19,968 173,397 356,454 1,400 221,807 71,014 47,937 (6,168) 5,500,000 4,200,000 2,630,000 8,670,000 (5,586,483) - (6,744,723) (8,806,014) 7,735,081 6,740,000 9,900,348 11,595,000 8,000,000 353,883 269,088 118,687 205,713 129,606 8,432,676 11,229,056 6,148,723 12,069,090 8,124,838 $ 6,516,225 $ 1,358,205 $ 4,980,093 $ 1,458,000 $ (2,028,748) 13.5% 11.8% 13.2% 12.3% 13.2% I I I i I I I i I I I I I I I I I I I I I I I I I 1 I I City of Waterloo, Iowa Assessed and Taxable Value of Property Last Ten Fiscal Years For Fiscal Assessment Year Less: Total Taxable Date Ended Residential Commercial Industrial Military Total Taxable Total Total Value as a January 1, June Propertyridd Property TIF Other Tax -Exempt Assessed Direct Assessed Percentage of P y Property Property Property Property Value Tax Rate Value Assessed Value 2003 2005 893,839,054 672,183,148 97,124,065 64,558,282 112,393,854 8,992,261 1,831,106,142 18.78999 2,789,882,310 65.63% 2004 2006 894,181,940 667,846,702 99,012,385 63,981,335 107,833,856 8,509,114 1,824,347,104 19.15566 2,805,711,189 65.02% 2005 2007 957,337,336 668,759,754 102,622,530 91,641,046 108,515,161 8,409,864 1,920,465,963 18.84580 3,075,559,088 62.44% 2006 2008 965,742,730 680,175,443 101,833,850 95,440,962 106,356,577 8,117,232 1,941,432,330 18.76669 3,133,666,442 61.95% 2007 2009 1,021,046,822 766,647,219 98,127,515 125,534,846 109,339,414 7,908,493 2,112,787,323 18.36687 3,447,851,253 61.28% 2008 2010 1,080,004,413 787,580,318 99,231,835 134,668,232 110,644,404 7,754,888 2,204,374,314 18.30689 3,542,643,298 62.22% 2009 2011 1,119,328,144 786,637,586 99,943,010 136,188,661 106,874,812 7,498,605 2,241,473,608 18.26406 3,566,368,445 62.85% 2010 2012 1,166,201,221 781,318,790 100,090,080 150,383,839 111,996,683 7,253,351 2,302,737,262 18.53335 3,747,030,046 61.45% 2011 2013 1,251,445,651 813,065,056 121,443,090 179,551,015 111,367,841 6,985,742 2,469,886,911 18.20505 3,738,165,467 66.07% 2012 2014 1,316,533,993 800,057,810 122,324,860 183,333,664 111,068,231 6,742,623 2,526,575,935 17.49319 3,762,106,346 67.16% 2013 2015 1,303,730,888 717,175,119 112,118,499 207,637,570 112,027,732 6,558,362 2,446,131,446 17.95159 3,623,346,971 67.51% Source: Black Hawk County Auditor. Notes: (1) Does not include tax-exempt property. Tax rates are per $1,000 of assessed value. (2) Property tax on machinery and equipment was phased out during the period FYE2001 through FYE2003. 119 City of Waterloo, Iowa Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Overlapping Rates Black Hawk County Schools Total City of Waterloo Total Total Direct & Fiscal Operating Debt Total City Operating Debt County Operating Debt School Overlapping Year Millage Service Millage Millage Service Millage Millage Service Millage Other Rates 2006 15.04360 4.11206 19.15566 7.04780 0.56052 7.60832 14.99110 1.00000 15.99110 1.42197 44.17705 2007 15.47706 3.36874 18.84580 6.83182 0.55784 7.38966 15.33395 1.00000 16.33395 1.34392 43.91333 2008 15.33540 3.43129 18.76669 6.82613 0.58407 7.41020 15.74972 1.00000 16.74972 1.18405 44.11066 2009 15.10748 3.25939 18.36687 6.35616 0.57975 6.93591 15.65725 1.00000 16.65725 1.36422 43.32425 2010 15.01876 3.28813 18.30689 6.12831 0.57689 6.70520 15.45746 1.00000 16.45746 1.33721 42.80676 2011 14.92433 3.33973 18.26406 6.22972 0.44212 6.67184 15.43697 1.00000 16.43697 1.38794 42.76081 2012 15.16068 3.37267 18.53335 5.92415 0.67322 6.59737 15.28141 1.00000 16.28141 1.28109 42.69322 2013 15.03346 3.17159 18.20505 5.59849 0.64144 6.23993 14.80265 1.00000 15.80265 1.33770 41.58533 2014 14.39276 3.10043 17.49319 5.39234 0.62882 6.02116 13.12135 2.60683 15.72818 1.36950 40.61203 2015 14.74920 3.20239 17.95159 5.52447 0.59472 6.11919 13.28631 2.68895 15.97526 1.35851 41.40455 Source: Black Hawk County Auditor. Employer IOC Black Hawk County, Inc. Deere and Company Waterloo Owner, LLC (Crossroads Mall) Equitable Life Assurance in 2003 Con Agra k/n/a Hunt Wesson, Inc. Ferguson Enterprises, Inc. Bertch Cabinet Manufacturing Tyson Fresh Meats (formerly IBP, Inc.) Howard L. Allen Investments, Inc. Walmart Stores VGM Management MidAmerican Energy Qwest Corporation (formerly US West) HyVee Food Stores, Inc. Banco Mortgage Company Individual Trust City of Waterloo, Iowa Principal Taxpayers Current Year and Nine Years Ago 2015 Assessed Value 01/01/2013 Rank $ 61,591,655 50,292,036 33,941,525 20,521,559 19,672,287 16,679,680 16,354,501 15,305,640 12,687,735 11,231,043 Total $ 258,277,661 1 2 3 4 5 6 7 8 9 10 Source: Official Bond Statements prepared by Speer Financial, Inc. 121 Percentage of Total Assessed Value 2006 Assessed Value 01/01/2004 1.70% $ 1.39% 25,671,030 0.94% 33,564,460 0.57% 16,317,760 5 0.54% 0.46% 15,314,300 6 0.45% 19840,220 4 0.42% 0.35% 10,180,090 10 0.31% 98,650,632 1 14,268,906 7 Rank 3 2 10,237,740 9 10,272,770 8 7.13% $ 254,317,908 Percentage of Total Assessed Value 0.92% 1.20% 0.58% 0.55% 0.71% 0.36% 3.54% 0.51% 0.37% 0.37% 8.75% City of Waterloo, Iowa Property Tax Levies and Collections Last Ten Fiscal Years Percent of Percent of Assessment Fiscal Year Current Current Tax Delinquent Total Total Tax Date Ended Total Tax Collections Tax Tax Collections January 1, June 30, Tax Levy Collections To Tax Levy Collections Collections To Tax Levy 2004 2006 $ 32,344,654 $ 32,344,856 100.00% $ 10,483 $ 32,355,339 100.03% 2005 2007 33,117,028 33,098,938 99.95% 20,019 33,118,957 100.01% 2006 2008 33,302,685 33,292,118 99.97% 22,716 33,314,834 100.04% 2007 2009 35,238,473 35,092,505 99.59% 40,319 35,132,824 99.70% 2008 2010 36,645,462 36,619,212 99.93% 16,989 36,636,201 99.97% 2009 2011 37,312,210 37,186,887 99.66% 34,746 37,221,633 99.76% 2010 2012 38,703,447 38,469,916 99.40% 20,895 38,490,811 99.45% 2011 2013 40,620,062 40,275,404 99.15% 18,966 40,294,370 99.20% 2012 2014 39,993,210 39,763,526 99.43% (72,698) * 39,690,828 99.24% 2013 2015 39,200,603 38,901,557 99.24% (362,370) * 38,539,187 98.31% Source: Black Hawk County Auditor's office. Current year tax collections can exceed the total tax levy in certain instances, such as when property valuation adjustments are made after the tax levy certifications are completed. Information regarding changes to levies and the years that delinquent payments are attributable is not available to the City. *A number of property valuation appeals for the valuation at the January 1, 2011 assessment date were settled during the fiscal year ended June 30, 2014, which resulted in refunds owed for prior taxes paid on those properties. Black Hawk County netted those refunds from delinquent taxes paid to the City, resulting in negative delinquent tax collections. 122 I I I I t I I I I i I I I I t I t I I City of Waterloo, Iowa Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business -Type Activities General General Obligation General Total Percentage Fiscal Obligation Capital Loan Capital Other Obligation Revenue Capital Other Primary of Personal Per Year Bonds Notes Leases Debt Bonds Bonds Leases Debt Government Income* Capita* 2006 $ 62,260,000 $ 250,000 $ 3,097,325 $ 14,337,655 $ 16,195,000 -- $ 96,139,980 4.67% 1,398 2007 63,940,000 220,000 -- 2,708,707 14,859,518 13,850,000 -- -- 95,578,225 4.51% 1,390 2008 65,709,931 300,000 -- 1,931,086 14,809,064 12,355,000 - 95,105,081 4.09% 1,383 2009 66,068,610 3,392,268 15,132,212 10,870,000 95,463,090 3.98% 1,389 2010 66,058,804 -- 2,145,466 17,774,173 9,285,000 95,263,443 3.85% 1,386 2011 65,772,821 -- 2,806,900 20,062,809 7,655,000 96,297,530 3.85% 1,408 2012 68,651,784 2,111,193 20,870,997 4,727,951 96,538,068 3.82% 1,411 2013 65,966,220 -- -- 2,524,312 24,400,407 3,119,608 96,010,547 3.58% 1,404 2014 69,226,920 2,281,997 22,253,712 1,914,460 -- - 95,677,089 3.38% 1,399 2015 67,833,111 -- 2,061,307 24,609,346 719,286 - 95,223,050 3.33% 1,392 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. * Personal income and population data can be found in the Schedule of Demographic and Economic Statistics. These ratios are calculated using personal income and population for the prior calendar year. 123 City of Waterloo, Iowa Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Percentage of General Total Assessed Fiscal Obligation Assessed Value Value Per Year Bonds of Property of Property Capita* 2006 $ 76,847,655 $ 2,805,711,189 2.74% $ 1,118 2007 79,019,518 3,075,559,088 2.57% 1,149 2008 80,818,995 3,133,666,442 2.58% 1,176 2009 81,200,822 3,447,851,253 2.36% 1,181 2010 83,832,977 3,542,643,298 2.37% 1,219 2011 85,835,630 3,566,368,445 2.41% 1,255 2012 89,522,781 3,747,030,046 2.38% 1,302 2013 90,366,627 3,738,165,467 2.42% 1,321 2014 91,480,632 3,762,106,346 2.43% 1,337 2015 92,442,457 3,623,346,971 2.55% 1,351 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. * Population data can be found in the Schedule of Demographic and Economic Statistics. 124 — City of Waterloo, Iowa Direct and Overlapping Governmental Activities Debt As of June 30, 2015 Governmental Unit Estimated Estimated Percentage Share of Debt Appplicable Overlapping Outstanding to City* Debt City of Waterloo direct debt $ 69,763,872 100.00% $ 69,763,872 Overlapping: Black Hawk County $ 34,985,000 44.55% 15,585,818 Hudson Community Schools - 0.00% Hawkeye Community College 26.07% Subtotal, overlapping debt $ 34,985,000 $ 15,585,818 Total direct and overlapping debt $ 104,748,872 $ 85,349,690 Source: Black Hawk County Auditor 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 the City of Waterloo. 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, and therefore responsible for repaying the debt, of each overlapping government. *The percentage of overlapping debt applicable is estimated using net taxable property values. Applicable percentages were estimated by determining the portion of the County's net value that is within the government's boundaries and dividing it by thet County's total value. City of Waterloo, Iowa Legal Debt Margin Information Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Debt Limit $ 140,285,559 $ 153,777,954 $ 156,683,322 $ 172,392,563 $ 178,318,422 $ 178,318,423 $ 187,351,502 $ 186,908,273 $ 188,105,317 $ 181,167,349 Total net debt applicable to limit 80,363,486 82,040,954 83,044,566 84,743,377 85,224,685 86,859,685 Legal debt margin $ 59,922,073 $ 71,737,000 $ 73,638,756 $ 87,649,186 $ 93,093,737 $ 91,458,738 $ 95,513,435 $ 94,503,961 $ 94,410,912 $ 86,663,584 91,838,068 92,404,312 93,694,405 94,503,764 Total net debt applicable to the limit as a percentage of debt limit 57.29% 53.35% 53.00% 49.16% 47.79% 48.71% 49.02% 49.44% 49.44% 52.16% Estimated actual valuation (assessed) as of January 1, 2012 Debt limit (5% of total estimated actual valuation) Debt applicable to debt limit: General obligation bonds General obligation capital loan notes Other debt Total net debt applicable to limit Legal debt margin Note: Under the State of Iowa Constitution, the city's outstanding general obligation debt should not exceed 5% of total assessed property value. I I 1 I 1 1 I I I 1 126 Legal Debt Margin Calculation for Fiscal Year 2015 $ 3,623,346,971 181,167,349 92,442,457 2,061,307 94,503,764 $ 86,663,584 1 1 1 1 I I I I I Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Gross Revenue $ 10,564,246 9,761,167 10,121,735 10,030,590 11,195,472 13,468,610 13,217,083 12,312,670 12,863,347 12,716,670 City of Waterloo, Iowa Sewer Revenue Bond Coverage Last Ten Fiscal Years Less: Applicable Net Revenue Debt Operating Available for Service Expenses Debt Service Requirements $ 4,860,721 4,580,852 5,051,048 5,070,016 5,266,284 7,041,089 6,481, 324 6,800,371 8,067,043 10,071,157 $ 5,703,525 5,180,315 5,070,687 4,960,574 5,929,188 6,427,521 6,664,913 5,437,416 4,796,304 2,645,514 Coverage $ 3,060,298 1.8637 3,1)20,198 1.7152 2,099,173 2.4156 2,038,173 2.4338 2,079,198 2.8517 2,059,323 3.1212 1,655,847 4.0251 1,659,883 3.2758 1,259,403 3.8084 1,233,703 2.1444 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Gross revenue includes both operating and non-operating revenue. Operating expenses do not include interest, depreciation or amortization of bond issue costs. 127 City of Waterloo, Iowa Demographic and Economic Statistics Last Ten Calendar Years Per Capita Personal Personal Median Unemployment School Year Population' Income Income2 Age' Rate3 Enrollment4 2003 68,747 $ 1,911,235,347 $ 27,801 35.9 5.8% 10,465 2004 68,747 2,057,735,204 29,932 35.9 6.1% 10,472 2005 68,747 2,117,888,829 30,807 35.9 5.3% 10,391 2007 68,747 2,326,329,733 33,839 35.9 4.3% 10,039 2008 68,747 2,396,932,902 34,866 35.9 4.7% 10,069 2009 68,747 2,475,029,494 36,002 35.9 6.8% 10,150 2010 68,406 2,501,812,638 36,573 35.9 7.3% 10,020 2011 68,406 2,524,386,618 36,903 35.9 7.1% 10,103 2012 68,406 2,681,173,170 39,195 35.9 6.5% 10,239 2013 68,406 2,827,835,634 41,339 35.7 5.6% 10,483 2014 68,406 2,857,250,214 41,769 35.5 6.5% 10,611 N/A = Not available. Sources: 1 2000 and 2010 U.S. Census 2 U.S. Department of Commerce, Bureau of Economic Analysis 3 Iowa Workforce Development 4 Waterloo Community Schools 128 City of Waterloo, Iowa Principal Area Employers Current Year and Nine Years Ago 2015 2005 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Deere & Company 5,600 1 16.47% 5,400 1 Wheaton Franciscan Health Care * 18.12% 3,060 2 9.00% 3,005 2 8.42% Tyson Fresh Meats (formerly IBP, Inc.) 2,500 3 7.35% 2,500 3 7.00% University of Northern Iowa 1,740 4 5.12% 2,170 4 Unity Point Health(Allen Memorial Hospital) 1,615 5 6.08% 4.75% 1,605 6 4.50% Waterloo Community Schools 1,610 6 4.74% 1,800 5 5.04% Hy -Vee 1,545 7 4.54% 980 9 2.75% Wal-Mart 1,045 8 3.07% Target Distribution 860 9 2.53% CBE Companies 800 10 2.35% Bertch Cabinet Manufacturing 1,500 7 Omega Cabinets 4.36% GMAC 1,200 8 3.36% Total 20,375 59.93% Source: Official Bond Statements from Speer Financial, Inc. * Formerly known as Covenant Medical Center 129 920 10 2.58% 20,160 53.11% City of Waterloo, Iowa Full -Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Public Safety Police 130.0 130.0 128.0 131.0 135.0 139.0 138.0 131.0 130.0 130.0 Fire 121.0 115.0 118.0 113.0 116.5 114.5 112.5 109.5 108.5 106.5 Building Inspection 15.0 15.0 16.0 15.0 15.5 10.5 12.5 12.5 12.5 14.5 Public Works City Engineer 19.0 19.0 19.0 20.0 19.0 18.0 20.0 20.0 20.0 20.0 Traffic 12.5 13.5 12.0 13.0 12.0 12.0 12.0 15.0 16.0 16.0 Central Garage 9.5 9.5 10.0 10.0 8.0 9.0 9.0 9.0 10.0 10.0 Street 36.0 36.0 34.0 40.0 39.0 37.0 38.0 36.0 34.0 37.0 Airport 5.5 5.5 5.5 5.5 5.5 5.5 6.0 5.0 6.0 6.0 Health & Social Services Human Rights 3.0 3.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Culture & Recreation Cultural & Arts Library Leisure Services Community & Economic Development Community Planning & Development General Government Mayor's Office Administrative Services/MIS City Clerk & Finance City Attorney Human Resources Facilities Maintenance 9.5 10.0 12.0 13.5 13.5 14.0 14.5 13.0 11.0 13.0 25.0 25.5 24.0 24.5 25.0 24.5 24.5 25.0 25.0 24.5 38.0 37.0 39.0 41.0 40.0 40.0 39.0 36.0 41.0 43.0 26.0 25.0 24.0 24.0 24.0 24.0 24.0 22.0 23.0 23.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 14.0 14.0 12.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 3.0 3.0 3.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Waste Management Services Sewer 30.1 30.1 30.1 30.1 29.0 32.0 35.0 33.9 37.0 43.0 Sanitation 12.9 13.9 13.9 13.9 13.0 15.0 14.0 17.1 17.0 13.0 Total 516.5 511.5 511.0 520.0 521.5 521.5 525.5 511.5 517.5 524.0 Source: City Human Resources Department records. 130 I I l ► r 1 I I I I 1 I I I I City of Waterloo, Iowa Operating Indicators by Function/Program Last Ten Fiscal Years (Page 1 of 2) Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Public Safety Police * Traffic accidents 2,129 1,788 1,942 2,141 1,941 1,712 1,630 1,598 Cases 14,857 13,928 14,468 13, 740 13, 411 12, 079 11, 591 11, 344 11, 298 11,111 1,839 1,726 Citations 12,601 11,651 9,816 Calls for service 68,365 70,037 73,690 6,989 7,271 82,044 81,110 80,872 75,6448 266,989 5,060 Total arrests 6,157 Fire 5,771 6,176 5,506 5,590 5,243 5,244 4,984 77,161 64,7 4, 931 4, 7228 8 Fire responses 5,631 5,759 6,223 5,208 4,885 4,238 4,307 4,622 Ambulance responses 6,744 7,030 7,503 7,234 6,928 5,328 6,062 6 997 5,011 5,129 Building Inspection 6,729 6,830 Construction permits issued 8,448 9,124 8,961 8,143 8,657 9,386 8,012 8,682 9,969 10,327 Construction value of permits $ 110,122,334 $ 181,082,614 $ 119,894,709 $ 74,920,243 $ 82,650,598 $ 103,199,063 $ 124,803,841 $ 91,192,766 $ 101,677,108 $ 100,224,478 Public Works Engineering Street reconstruction (miles) 3.39 1.94 1.57 2.55 2.45 1.98 2.90 3.08 Street resurfacing (miles) 31.30 17.60 13.57 18.63 12.42 14.15 12.64 14.05 3.15 1.59 Street Department 12.21 18.63 Tons of salt used for streets 5,556.52 4,505.35 6,185.86 5,506.97 6,043.06 5,012.05 4,816.00 5,700.00 5,162.00 4,217.00 Man hours for road maintenance 75,580 72,800 66,560 71,448 71,448 72,800 68,640 67,345 Airport 66,650 67,320 Commercial Enplanements 38,750 33,507 27,026 25,979 25,467 22,255 23,206 22,173 19,897 21,573 26,170 Aircraft take -offs and landings 30,538 30,644 Based aircraft 101 98 101 25,921 22,738 20,772 21,521 20,589 100 19,109 19,550 100 101 101 104 104 74 Health & Social Services Human Rights Civil Rights complaints New cases opened 75 74 109 62 74 Cases closed 29 58 78 95 106 64 66 Active cases at year-end 198 214 262 63 182 88 76 103 59 43 100 126 109 113 103 154 177 143 Culture & Recreation Leisure Services SportsPlex Members N/A N/A N/A Young Arena facility usage N/A N/A N/A N/A N/A 2594 4,450 Event Visitors 114,492 133,540 142,278 121,324 118,286 118,089 127,508 118,639 119,903 100,064 Recreational Visitors 136,520 139,824 138,285 Sports - youth programs 4,119 4,517 4,677 138,541 143,370 153,018 5,720 164,315 174,780 186,384 189,121 Sports - adult programs 1,158 1,277 1,261 5,034 5,117 5,6911,461 1,665 1,621 1,620 5,451 5,571 5,623 Pool attendance 39,512 41,580 40,789 40,561 41,743 42,883 44,741 39,611 1,598 1,617 Golf rounds 102,131 95,851 86,268 93,932 95,898 87,173 97,032 81,218 37,603 33,866 Annual flowers grown for parks 23,520 21,76875,737 74,891 Public Library 21,765 22,880 28,008 24,984 22,488 23,304 Total Circulation 433,072 427,921 413,525 426,593 441,746 419,333 424,435 405,341 422,204 470,786 Total Library Visits 266,356 261,261 259,144 241,539 274,903 290,161 207,597 263,261 Waterloo Center for the Arts 271,603 278,431 In House Visitors 98,897 99,097 104,499 1,479 125,351 118,541 113,411 119,404 125,958 118,970 128,140 Events, meetings, and programs 1,387 1,268 1,839 1,683 1,625 1,578 1,563 1,074 1,103 131 Function/Program City of Waterloo, Iowa Operating Indicators by Function/Program Last Ten Fiscal Years (Page 2 of 2) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Community & Economic Development Planning and Zoning 69 50 54 77 65 72 91 100 Planning commission agenda items 93 84 20 65 24 30 410 CUBA apimprovements is valu d ** 46 51 35 46 29 CURp,improvementsvalue $ 6,856,057 $ 13,391,834 $ 7,346,601 $ 5,972,779 $ 12,309,630 $ 2,063,995 $ 9,307,076 $ 2,776,669 $ 11,368,958 $ 7,856,51869 CLURA applications received*** $ $ $ $ - $ $ 1,249,100 $ 4,385,349 $ 14,418,6175 $ 15,057,1319 CLURA improvments value $ - Community Development 41 50 57 12 22 10 3 4 Down payment assistance 58 36 Home buyer education 188 168 193 183 147 35 28 46 36 10 32 46 31 42 2 - Owner -occupied homes rehabilitated45 44 39 49 37 33 Emergency repairs (including roofs) 58 36 34 38 11 20 49 21 Demolitions (residential &commercial) 7 8 19 20 27 Housing Actual vouchers 957 961 1,032 1,007 1,003 994 996 1,005 951 937 37 Public housing units 50 50 49 50 48 50 50 50 50 Family self sufficiency participants 74 65 75 59 49 53 54 47 36 Sewer Sewer system customers 25,728 25,637 25,843 25,769 25,565 25,450 25,707 25,393 26,102 25,584 Source: Various city departments * Statistics for Police Department are for the calendar year ending within the fiscal year shown. ** Consolidated Urban Revitalization Area. *** City Limits Urban Revitalization Area Started FY12 # Door counter was broken for several months, so not all visitors could be counted. N/A - not available 1 I I 1 I I I I I I I 1 I I I I I I I Function/Program Public Safety City of Waterloo, Iowa Capital Asset Statistics by Function/Program Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Police Stations 1 1 Fire* 1 1 1 1 1 1 1 1 Stations 7 7 7 7 7 7 7 7 Trucks and special vehicles 30 30 30 32 7 7 Public Works 32 32 34 31 ** 29 29 Miles of streets - paved 352 354 354 356 357 364 364 364 Miles of streets - unpaved 74 74 74 73 73 372 364 Street liglights 72 72 72 72 72 N/A 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,807 1,807 Traffic Signals N/A 198 198 198 197 200 200 200 197 198 Airport runway lengths Runway 12/30 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 Runway 18/36 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 Runway 6/24 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 5,403 Culture & Recreation City parks 48 48 48 48 48 48 48 48 48 48 Golf courses 3 3 3 3 3 3 3 3 Swimming pools 2 2 2 2 3 2 2 2 2 2 2 2 Softball diamonds 23 23 23 23 23 2323 23 Baseball diamonds 8 8 8 8 23 23 Baseball stadium 1 1 1 1 1 16 16 16 1 1 1 1 1 1 1 Softball complexes 1 2 2 2 2 1 Tennis courts 27 27 27 27 27 27 2 2 2 2 Ice arena 1 1 1 1 1 1 1 2 272 27 1 11 1 1 1 Soccer complex 1 1 1 1 1 1 1 Exposition plaza 0 1 1 1 Skatepark 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Dog park 0 0 0 1 Amphitheater 0 0 0 0 0 01 1 1 1 1 Splash Park 0 0 1 1 1 1 0 0 0 0 0 0 1 1 1 1 Indoor sports & fitness faciity N/A N/A N/A N/A N/A N/A N/A N/A Center for the Arts collection size 1,615 2,494 2,794 3,153 3,362 3,766 4,178 4,352 4,682 5,102 Library collection size 210,020 190,092 192,678 200,246 168,295 172,580 163,247 161,462 164,486 138,540 Sewer Miles of sanitary sewer 353 356 356 356 356 356 356 356 357 358 Source: Various city departments * Effective July 1, 2007, fire station at the Airport being maintained by Airport maintenance personnel **Added boats N/A - not available 133 This Page Intentionally Left Blank City of Waterloo, Iowa -- Schedule of Expenditures of Federal Awards Year Ended June 30, 2015 Pass -Through Federal Entity Identifying CFDA Federal -- Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures Department of Commerce Direct: Economic Adjustment Assistance: Disaster Recovery N/A 11.307 $ 2,292,137 Department of Housing and Urban Development Direct: Community Development Block Grants/Entitlement Grants N/A 14.218 1,549, 582 HOME Investments Partnerships Program N/A 14.239 Title 1, VA -HUD Independent Agencies Appropriations Act for FY 549,582 2008, PL 110-161 N/A 14.251 HUD Appropriations Act for FY 2009, PL 111-8 97,083 N/A 14.251 21,795 Subtotal 118,878 Fair Housing Assistance Program -State and Local N/A 14.401 61,165 Public and Indian Housing N/A 14.850 242,244 Section 8 Housing Choice Vouchers N/A 14.871 4,568,579 Lead Based Paint Hazard Control in Privately Owned Housing N/A 14.900 Total direct 292,517 6,995,923 Indirect: Pass Through Iowa Department of Economic Development: Community Development Block Grants/State's Program 08-DRH-011 14.228 269,273 08-DRH-211 14.228 86,126 11 -NSP -018 14.228 31 Disaster Recovery Infrastructure 08 -DRI -078 14.228 1,270,384 08 -DRI -277 14.228 3,787,607 Total indirect 5,413,421 Total Department of Housing and Urban Development 12,409,344 Department of Justice Direct Bulletproof Vest Partnership Program N/A 16.607 8,835 Edward Byrne Memorial Justice Assistance Grant Program N/A 16.738 Total direct 126,326 135,161 Indirect: Pass Through National Association of VOCA Division, Crime Victim Assistance/Discretionary Grant 15-039 16.582 Pass Through Crime Victims Assistance Division, 4,434 Federal Violence Against Women Act Contract VW -12-76B 16.588 Pass Through Governor's Office of Drug Control Policy, 35,113 Edward Byrne Memorial Justice Assistance Grant Program 11 -JAG -58456 16.738 192,500 Total indirect 232,047 Total Department of Justice (Continued) 134 367,208 City of Waterloo, Iowa Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2015 Federal Grantor/Pass-Through Grantor/Program Title Pass -Through Federal Entity Identifying CFDA Federal Number Number Expenditures Department of Transportation Direct: Federal Aviation Administration: Airport Improvement Program N/A 20.106 864,450 N/A 20.106 94,779 N/A 20.106 5,184 N/A 20.106 4,800 Total direct Indirect: Federal Highway Administration Pass Through Iowa Department of Transportation: Highway Planning and Construction Subtotal National Highway Traffic Safety Administration Pass Through Iowa Department of Public Safety Governor's Traffic Impaired Driving Countermeasures Grant Subtotal Total indirect Total Department of Transportation U.S. Equal Employment Opportunity Commission N/A 20.106 505 969,718 N HSX-63-6(69)--3H-07 STP -U-8155(710)--70-07 STP -U-8155(711)--70-07 STP -U-8155(714)--70-07 STP -U-8155(719)--70-07 STP -E -8155(723)--8V-07 STP -U -8155(729)--8U-07 STP -U-8155(731)--70-07 TAP -U-8155(741)--81--07 20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205 20.205 42,311 7,292 59,328 32,871 2,719 9,215 16,479 3,382,515 29,653 3,582,383 PAP-14-405d-M6OT, Task 56 20.616 13,075 PAP-15-405d-M6OT, Task 57 20.616 23,864 36,939 3,619,322 4,589,040 Direct, Employment Discrimination Title VII of the Civil Rights Act of 1964 N/A 30.001 33,169 (Continued) 135 City of Waterloo, Iowa -- Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2015 Federal Grantor/Pass-Through Grantor/Program Title National Foundation on the Arts and the Humanities Indirect, National Endowment for the Humanities Pass Through Iowa Arts Council Promotion of the Humanities Federal/State Partnership Environmental Protection Agency Direct, _ Brownfield Assessment & Cleanup Cooperative Agreements Department of Homeland Security Indirect: Pass Through Iowa Homeland Security and Emergency Management Division: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Subtotal 278,892 Pass -Through Federal Entity Identifying CFDA Federal Number Number Expenditures OSP 1420 FY07, FY08, FY09 N/A 013-82425-00 DR 1763 013-82425-00 DR 4187 45.129 14,106 66.818 62,916 97.036 97.036 57,505 221,387 Law Enforcement Terrorism Prevention Program 2012 -SS -00028-02 97.067 247 Total Department of Homeland Security 279,139 Total Expenditures of Federal Awards $ 20,047,059 See Notes to Schedule of Expenditures of Federal Awards. (Concluded) 136 City of Waterloo, Iowa Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2015 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Waterloo, Iowa (the City). The schedule of expenditures of federal awards does not include the federal grant activity of the City's discretely presented component units. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies are included in this schedule. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of State, Local Governments and Nonprofit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Program expenditures include only amounts subject to reimbursements from the grantor agency or program income; thus, they are net of local matching. Note 2. Significant Accounting Policies Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for proprietary funds, whereas expenditures/expenses are recognized in the accounting period in which the cost is incurred. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Note 3. Subrecipients Of the federal expenditures presented in the schedule, the City provided federal awards to subrecipients as follows: Program Title Federal Amount CFDA Provided to Number Subrecipients Community Development Block Grants/Entitlement Grants Community Development Block Grant HOME Investment Partnerships Program Lead Based Paint Hazard Controls in Privately -Owned Housing Edward Byrne Memorial Justice Assistance Grant 14.218 $ 14.228 14.239 14.900 16.738 96,931 25,189 190,672 30,105 142,128 Note 4. Program 14.850 The City's blended component unit, Waterloo Housing Authority, has a long-term debt payable to the Federal Financing Bank (FFB). Each November 1, the City receives a debt subsidy of $86,364 as a principal and interest payment on the loan. The City records the subsidy as revenue and an expenditure for debt service. On June 30, 2015, the principal balance on the loan was $81,016. Since there are continuing compliance obligations regarding the loan, the principal balance is considered federal financial assistance. Federal expenditures for the program consisted of the following: Operating subsidy and other $ 26,775 Debt subsidy 86,364 Subtotal cash assistance 113,139 Loan balance 81,016 Total $ 194,155 137 City of Waterloo, Iowa Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2015 Note 5. Total Expenditures by Program The total expenditures for the Edward Byrne Memorial Justice Assistance Grant Program, CFDA No. 16.738 is $318,826. 138 City of Waterloo, Iowa Summary Schedule of Prior Audit Findings Year Ended June 30, 2015 Finding Corrective Action Plan Status or Other Explanation Other Findings Related to Required Statutory Reporting 14 -IV -F The City is required to publish the minutes from a Council meeting within 15 days of the meeting. The City did not publish certain minutes within this time frame. 14 -IV -H The Grants, Special Revenue Fund, Community Development Block Grant, Special Revenue Fund, Federal Aviation and Capital Improvements, Capital Projects Fund had deficit fund balances as of June 30, 2014. 14 -IV -J The City did not amend the airport ordinance to repeal the positive cash balance requirement. Through June 30, 2014, the accumulative cash deficit totaled $689,064. 139 Corrected Not corrected See corrective action plan at 15 -IV -H. Not corrected See corrective action plan at 15 -IV -J. Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report To the Honorable Mayor and Members of City Council City of Waterloo, Iowa Waterloo, Iowa ■- RSM RSM US LLP We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, 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 Waterloo, Iowa, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 18, 2015. The City's June 30, 2014 financial statements have been restated due to the implementation of GASB Statement Nos. 68 and 71 to recognize a net pension liability and deferred outflow of resources of the governmental activities, business -type activities, the major enterprise fund and the aggregate remaining fund information. Our report includes a reference to other auditors who audited the financial statements of the Waterloo Water Works as of and for the year ended December 31, 2014 and 1:he Waterloo Convention & Visitors Bureau, Inc. as of and for the year ended June 30, 2015, both discretely presented component units, as described in our report on the City's financial statements. This report does not include the results of the other auditor's testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. The financial statements of Waterloo Convention & Visitors Bureau, Inc. were not audited in accordance with Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 140 RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted immaterial instances of noncompliance or other matters that are described in Part IV of the accompanying schedule of findings and questioned costs. Comments involving statutory or other legal matters about the City's operations for the year ended June 30, 2015 are based exclusively on the knowledge obtained from procedures during our audit of the basic financial statements of the City. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretation of those statues. The City's Response to Findings The City's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the City's responses and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Davenport, Iowa December 18, 2015 RSCA Report on Compliance For the Major Federal Program and Report on Internal Control Over Compliance RSM US LLP Independent Auditor's Report To the Honorable Mayor and Members of the City Council City of Waterloo, Iowa Waterloo, Iowa Report on Compliance for the Major Federal Program We have audited the City of Waterloo, Iowa's (the City) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended June 30, 2015. The City's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. The City's basic financial statements include the operations of the Waterloo Water Works and the Waterloo Convention & Visitors Bureau, Inc. discretely presented component units which did not have a single audit performed for their fiscal years ended December 31, 2014 and June 30, 2015, respectively. Our audit, described below, does not include the operations of the Waterloo Water Works or the Waterloo Convention and Visitors Bureau, Inc. because these discretely presented component units were audited by other auditors. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the City of Waterloo, Iowa's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the City's compliance. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 142 RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. Opinion on the Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal programs for the year ended June 30, 2015. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Davenport, Iowa December 18, 2015 143 City of Waterloo, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2015 I. Summary of the Independent Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Significant deficiencies identified? Noncompliance material to financial statements noted? Federal Awards ❑ Yes ❑ No ❑ Yes 0 None Reported ❑ Yes 0 No Internal control over major programs: Material weakness(es) identified? ❑ Yes No Significant deficiencies identified? ❑ Yes ❑ None Reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Identification of major programs: CFDA Number Name of Federal Program or Cluster 14.228 Community Development Block Grants Dollar threshold used to distinguish between type A and type B programs: $601,411 Auditee qualified as low-risk auditee? (Continued) 144 ❑ Yes ❑ No 0 Yes No City of Waterloo, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2015 II. Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance With Generally Accepted Government Auditing Standards A. Internal Control None reported. B. Compliance findings None reported. III. Findings and Questioned Costs for Federal Awards A. Internal Control None reported. B. Compliance Findings None reported. IV. Findings Related to Statutory Reporting 15 -IV -A Certified Budget Expenditure/expenses during the year ended June 30, 2015, did not exceed the budgeted amounts. 15 -IV -B Questionable Disbursements No questionable disbursements were noted. 15 -IV -C Travel Expenses No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 15 -IV -D Business Transactions No material business transactions between the City and City officials or employees were noted. 15 -IV -E Bond Coverage Surety bond coverage of City officials and employees is in accordance with statutory provisions. 15 -IV -F Council Minutes and Resolutions No instances of noncompliance with the council minutes and resolutions. 15 -IV -G Deposits and Investments No instances of noncompliance with the deposit and investment provisions of Chapter 12B and 12C of the Code of Iowa and the City's investment policy were noted. (Continued) 145 City of Waterloo, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2015 15 -IV -H Deficit Balances Finding: The following funds had deficit balances as of June 30, 2015: Grants, Special Revenue Community Development Block Grant, Special Revenue Federal Aviation Agency Projects, Special Revenue Capital Improvements, Capital Projects $ 3,198,162 6,673 27,266 2,264,126 Recommendations: The City should investigate alternatives to eliminate these deficits in order to return the funds to sound financial positions. Response and Corrective Action Plan: The Grants, Special Revenue Fund reported a deficit fund balance due to timing delays in receiving grant reimbursements. Most grants that the City receives require the City request and receive reimbursement from the granting agencies only after the City has expended the funds. This creates a temporary deficit in the funds. Because the City's books are maintained on an accrual basis, expenses are recorded for invoices that may not be paid until after year-end. The City can not request reimbursements until after the invoices are paid, creating temporary timing deficits. The City continues to investigate alternatives for shortening the turnaround time between spending grant funds and receiving reimbursements where possible. 15 -IV -I Revenue Bonds No instances of noncompliance noted regarding the provisions of the revenue bond indentures. Information required by sewer revenue bond resolutions is reported in the statistical section. 15 -IV -J Airport Ordinance Finding: The City adopted ordinance number 4400 on December 13, 1999 which established an Airport Board of Directors and requires the Board to "Maintain a positive cash balance at all times in airport operations." Airport operations are accounted for in the General Fund (Fund 010), Airport Commission Department (Department number 29), Airport Administration Activity (Activity number 7700). Through June 30, 2015, the accumulative cash deficit totaled $580,771. Recommendations: To ensure the City is in compliance with its own ordinances, we recommend that the City either provide airport operations with additional cash resources to enable it to achieve and maintain a positive cash balance or amend the ordinance to repeal the positive cash balance requirement. Response and Corrective Action Plan: It is the City's intent at this time to continue to require the positive cash balance, although City management realizes that the Airport may not be able to maintain that balance due to current economic conditions. 146 City of Waterloo, Iowa Corrective Action Plan Year Ended June 30, 2015 Anticipated Date Number Comment Plan CuCorrective Action of Completion Other Findings Related to Required Statutory Reporting 15 -IV -H The Grants, Special Revenue Fund, Community Development Block Grant, Special Revenue Fund, Federal Aviation Agency Projects, Special Revenue Fund and Capital Improvements, Capital Projects Fund had deficit fund balances as of June 30, 2015. 15 -IV -J The City did not amend the airport ordinance to repeal the positive cash balance requirement. Through June 30, 2015, the accumulative cash deficit totaled $580,771. See corrective action plan at 15 -IV -H. See corrective action plan at 15 -IV -J. 147 Contact Person June 2015 Chief Financial Officer June 2015 Chief Financial Officer CITY OF WATERLOO, IOWA CITY HALL To: City Council Members Re: Notice of Severance Department Waste Mana Job Title/Classification 715 MULBERRY STREET 50703 ement Services Superintendent This is to report that the employment of with the City of Waterloo has been severed by reason Today's Date: Effective Date: Employment Date: 12/29/2015 12/2 8/2015 6/1/1988 Larry Smith ❑ Retired Disability Related ❑ No ❑ Yes Resigned CJ Termination ❑ Other In accordance with City Policy, it is requested to allow payment which consists of the following: Comments: Approved by Vacation -Accrued Vacation -Current Total Hours (x) Hourly Rate Total Payout Frozen Sick Leave (Personal Hours Comp Time Pay Unscheduled Leave (x) 60% 8,969.40 $ 1,540.20 271.80 $ 1,087.20 Other Pay Total Payment Human Resources Routing: Original to Human Resources by Department Human Resources will forward original to City Clerk Clerk's Office will forward copy of approved form to Council Agenda Date: ❑ Accruals $ 11,86,9.60 Date Date1(1116 (Copy in Personnel File) Department and Human Resources Updated 6/28/11 ❑Status ❑-9 I I CITY OF WATERLOO, IOWA To: City Council Members Re: Notice of Severance CITY HALL 715 MULBERRY STREET 50703 Department POLICE Today's Date: 1/7/2016 Effective Date: 12/31/2015 Employment Date: 7/14/1986 Job Title/Classification Ptoperty Evidence Technician This is to report that the employment of Debra Rosol with the City of Waterloo has been severed by reason of: O Retired Disability Related El No 0 Yes ❑ Resigned O Termination ❑ Other In accordance with City Policy, it is requested to allow payment which consists of the following: Benefits Vacation -Accrued (Vacation -Current (Usable Sick Leave 'Frozen Sick Leave 'Personal Hours . (Sick Time Pay 'Unscheduled Leave (Other Pay Comments: Other Pay is Comp time Total Hours 0.00 200.00 9.00 0.00 32.00 0.00 0.00 4.00 I(x) Hourly Rate' $21.06 $21.06 $21.06 $21.06 $21.06 $21.06 $21.06 $21.06 (x) 25% (x) _% Total Payout $ 4,212.00 $ 47.39 $ $ 673.92 $ 84.24 Total Paymentll $ 5,017.55 Approved by l'1 i �r v L V) `-r Vt4 V' Human Resources', Routing: Original to Human Resources by Department Human Resources will forward original to City Clerk (Copy in Personnel File) Clerk's Office will forwardapproved form to Department Council Agenda Date: ‘ill i/lI I 0 AS/400 Status/Accruals 0 1-9 Date Date 111114 THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, REGULAR SESSION TO BE HELD AT THE HAROLD E. GETTY COUNCIL CHAMBERS Monday, January 11, 2016 5:30 PM CITY OF WATERLOO GOALS 1. Support economic development efforts that attract, retain and create quality jobs resulting in a diverse economic base and increased population. 2. Continue to support implementation of the Downtown Master Plan. 3. Facilitate and promote the development of housing options to meet the needs of current and future Waterloo citizens. 4. Develop a customer -centered service delivery approach. 5. Seek additional opportunities to share services and resources with other government entities. 6. Collaborate with statewide elected officials to reduce the burden on local property taxes. 7. Address the changing public workforce needs in Waterloo. 8. Enhance and protect a diverse, family-oriented community where neighborhoods are safe and well maintained. 9. Enhance the quality of place opportunities for the citizens of our community. General Rules for Public Participation 1. At the chair/presider's discretion, you may address an item on the current agenda by stepping to the podium, and after recognition by the chair/presider, state your name, address and group affiliation (if appropriate) and speak clearly into the microphone. 2. You may speak one (1) time per item for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office you may speak one (1) time per item for a maximum of three (3) minutes. 3. If there is a hearing scheduled as part of an agenda item, the chair/presider will allow everyone who wishes to address the council, using the same participation guidelines found in these "general rules". 4. Although not required by city code of ordinances, oral presentations may be allowed at the chair/presider's (usually the Mayor or Mayor Pro Tem) discretion. The "oral presentations" section of the agenda is your opportunity to address items not on the agenda. You may speak one (1) time for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office a speaker may speak to one (1) issue per meeting for a maximum of three (3) minutes. Official action cannot be taken by the Council at that time, but may be placed on a future agenda or referred to the appropriate department. 5. Keep comments germane and refrain from personal, impertinent or slanderous remarks. 6. Questions concerning these rules or any agenda item may be directed to the Clerk's Office at 291-4323. 7. Citizens are encouraged to register with the Clerk's Office by 4:00 p.m. on Monday of the day of the City Council meeting to appear before the City Council (may also register by phone). Registered speakers will be given first priority. Page 1 of 217 Roll Call. Prayer or Moment of Silence Pledge of Allegiance Daniel Trelka, Director of Safety Services Agenda, as proposed or amended. Minutes of January 4, 2016, Regular Session, as proposed. Proclamation Observing January 18, 2016, as Dr. Martin Luther King Jr.'s Birthday Recognition of Endya Johnson as the January 2016 Team Member of the Month 1. Consent Agenda: (The following items will be acted upon by voice vote on a single motion without separate discussion, unless someone from the council or public requests that a specific item be considered separately.) A Resolution to approve the following: 1. Bills Payment, Finance Committee Invoice Summary Report, a copy of which is on file in the office of the City Clerk. 2. Request to certify the following assessments to properties for work performed by the Water Works, together with recommendation of approval of Board of Water Works Trustees. Address and amount to certify: 808 Hanna Boulevard, $1,661.08 1512 West 2nd Street, $772.80 353 Fairfield Street, $4,400.00 Submitted By: Dennis Clark, General Manager 3. Resolution approving the request of Anthony Charley for tax exemptions on the construction a new single family home valued at $222,768 for property located at 1306 Hummingbird Circle, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 4. Resolution approving the request of Cody Alberts for tax exemptions on the construction a new single family home valued at $216,223 for property located at 1407 Hummingbird Circle, and located in the City Limits Urban Revitalization Area (CLURA). Page 2 of 217 Submitted By: Noel Anderson, Community Planning & Development Director 5. Resolution approving the request of Tonetta Pint -Burke for tax exemptions on the construction a new single family home valued at $335,783 for property located at 1507 Falcon Ridge, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 6. Resolution approving the request of Cedar Valley 4 Rent LLC for tax exemptions on the construction a new single family home valued at $259,900 for property located at 1876 Red Tail Drive, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 7. Resolution approving the request of Cedar Valley 4 Rent LLC for tax exemptions on the construction a new single family home valued at $264,900 for property located at 1896 Red Tail, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 8. Resolution approving the request of Cedar Valley 4 Rent LLC for tax exemptions on the construction a new single family home valued at $259,900 for property located at 1886 Red Tail Drive, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 9. Resolution approving the request of Jeremy & Rene Tietz for tax exemptions on the construction a new single family home valued at $265,500 for property located at 5915 Summerland Drive, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 10. Resolution approving the request of Rooff Development for tax exemptions on the construction a new single family home valued at $140,000 for property located at 1003 Vermont Street, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 11. Resolution approving the request of William Wente for tax exemptions on the construction a new single family home valued at $380,000 for property located at 562 MaCallan Lane, and located in the City Limits Urban Revitalization Area (CLURA). Submitted By: Noel Anderson, Community Planning & Development Director 12. Resolution setting date of public hearing as January 25, 2016 to approve a parking lease agreement with Lederman Bros. Property Management Company, LLC, to lease 8 City owned parking spaces located adjacent to 403-405 Jefferson Street and for the City to lease 8 parking spaces owned by Lederman Bros. Property Management Company, LLC located adjacent to 403-405 Jefferson Street. Submitted By: Aric Schroeder, City Planner 13. Request of Iowa DOT District 2 for a variance to the noise ordinance during the 2016 construction season (4/1/16 - 11/1/16) from Sunday evening to Friday evening in conjunction with the Iowa DOT Project NHSN-218-7(231) and NHSN- 25-07 to be performed on U.S. 218 from Mitchell Avenue to north of 18th Page 3 of 217 Street/Williston Avenue. Submitted By: Joe Leibold, Captain of Police Services B. Motion to approve the following: 1. TRAVEL REQUESTS a. Abraham Funchess, Jr. Executive Director; Rebecca Johnson, Human Rights Specialist; Shelly Burch, Administrative Secretary Class/Meeting: 2016 NCRC Annual Conference Destination: Washington, D.C. Dates: March 15-19, Amount not to exceed: $8,245.00 2016 b. Pat Treloar, Chief of Fire Services; Marty Freshwater, Battalion Chief Class/Meeting: Travel to inspect and pick up new fire truck. Destination: Appleton, Wisconsin Dates: January 13-14, Amount not to exceed: $350.00 2016 2. LIQUOR LICENSES a. LJ's Neighborhood Grill & Bar, 3550 Kimball Avenue Class: C Liquor w/Outdoor Service Renewal Application Includes Sunday Expiration Date: 11/5/2016 3. APPOINTMENTS a. Mary Potter Board/Commission: Water Works Board of Trustees Expiration Date: 12/31/22 Re -Appointment 4. Fireworks Display at Isle of Capri Casino, 777 Isle of Capri Blvd. (in the field west of the casino) on February 8, 2016 beginning at 9:00 p.m. for the Chinese New Year. Submitted By: Suzy Schares, City Clerk PUBLIC HEARINGS 2. Demolition of ten (10) structures including garages: 430 Bayard Street, 223 Sumner Street, 219 Sumner Street, 1808 E. 4th Street, 225 Newell Street, 219 Newell Street, 433 Rath Street and 2014 Lafayette Street. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING --No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of specifications, bid document, form of contract, etc. Resolution authorizing to proceed. Motion to receive and file and instruct City Clerk to read bids and refer to Community Development for review. Submitted By: Rudy Jones, Community Development Director Page 4 of 217 3. Removal of asbestos from four (4) structures: 219 Newel Street, 223 Sumner Street, 433 Rath Street and 2014 Lafayette Street. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING --No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of specifications, bid document, form of contract, etc. Resolution authorizing to proceed. Motion to receive and file and instruct City Clerk to read bids and refer to Community Development for review. Submitted By: Rudy Jones, Community Development Director 4. Request by Noe Sibrian to rezone 0.32 acres from "C-2" Commercial District to "C -2,C -Z" Conditional Zoning District for the purposes of establishing an auto repair business, located at 2006 Dubuque Road. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No comments on file. Motion to close hearing and receive and file oral and written comments and recommendation of approval of the Planning, Programming and Zoning Commission. Motion to receive, file and consider and pass for the first time an Ordinance amending Ordinance No. 5079, as amended, City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a Rezone of certain property. Motion to suspend the rules. Motion to consider and pass for the second and third times and adopt an Ordinance. Submitted By: Noel Anderson, Community Planning & Development Director 5. Request by Benjamin and Lindsey Evans for a Site Plan Amendment to the "R- 3, R -P" Planned Multiple Residence District for the purpose of changing the designated us of Lot C-1 through C-3 and C-5 through C-6 of Southland Park Third Addition from commercial to residential to allow for the construction of single family homes and/or duplexes, located east of 2950 Southland Drive. Motion to Receive and file proof of publication of notice of public hearing. HOLD HEARING- No comments on file. Motion to close hearing and receive and file oral and written comments and recommendation of approval of Planning, Programming and Zoning Commission. Motion to receive, file, consider and pass for the first time an Ordinance amending Ordinance No. 5079, as amended, City of Waterloo Zoning Ordinance, by amending the Official Zoning Map referred to in Section 10-4-4, approving a Site Plan Amendment on Certain Property. Motion to suspend the rules. Motion to consider and pass for the second and third time and adopt ordinance. Submitted By: Noel Anderson, Community Planning & Development Director 6. Riverfront Stadium Video Display System Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING --No comments on file. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of specifications, bid document, form of contract, etc. Resolution authorizing to proceed. Page 5 of 217 Motion to receive and file and instruct City Clerk to read bids and refer to Leisure Services for review. Submitted By:Travis Nichols, Facilities/Project Manager, Leisure Services 7. Purchase of two (2) 2016 Single Axle Snow Control Trucks. Motion to receive and file proof of publication and notice of public hearing for the purchase of two (2) 2016 Single Axle Snow Control Trucks. HOLD HEARING - No comments on File. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of specifications, bid document, form of contract etc. Resolution authorizing to proceed. Motion to receive and file and instruct City Clerk to read bids and refer to Public Works Director for review. Resolution awarding contract to Truck Country of Cedar Rapids in the amount of $261,904.00 for the purchase of two (2) 2016 Single A)de Snow Control Trucks. Submitted By: Mark Rice, Public Works Director 8. Purchase of Replacement Salt Spreaders for the Street Department. Motion to receive and file proof of publication and notice of public hearing for the purchase of Replacement Salt Spreaders for the Street Department. HOLD HEARING - No comments on File. Motion to close hearing and receive and file oral and written comments. Resolution confirming approval of specifications, bid document, form of contract etc. Resolution authorizing to proceed. Motion to receive and file and instruct City Clerk to read bids and refer to Public Works Director for review. Submitted By: Mark Rice, Public Works Director 9. Development Agreement with Iowa Heartland Habitat for Humanity for the construction of 14 single-family homes on the former Irving Elementary School site at the corner of Hawthorne Avenue and West 6th Street and authorize the sale and conveyance of said City -owned property in the amount of $1.00. Motion to receive and file proof of publication of notice of public hearing. HOLD HEARING - No Comments on File. Motion to close hearing and receive and file oral and written comments. Resolution approving a Development Agreement with Iowa Heartland Habitat for Humanity to authorize the sale and conveyance of a portion of City owned property for $1.00 commonly known as the former Irving School building site, at the corner of Hawthorne Avenue and West 6th Street, for the construction of 14 single-family homes. Submitted By: Aric Schroeder, City Planner RESOLUTIONS 10. Resolution approving the application for a Convention and Visitors Bureau Mini Grant in the amount of $5,000 for additional funding for a new video scoreboard at Riverfront Baseball Stadium. Submitted By: Paul Huting, Leisure Services Director 11. Resolution approving Supplemental Agreement No. 1 to the Professional Services Agreement with Recreation Engineering & Planning, of Boulder, Colorado, in the Page 6 of 217 amount of $245,865.00, paid for with WDC Gaming Funds, for preliminary engineering and design in conjunction with the construction of a whitewater course on the Cedar River in downtown Waterloo. Submitted By: Jamie Knutson, PE, Associate Engineer 12. Resolution adopting Executive Session Conduct Policy for City of Waterloo City Council. Submitted By: Pat Morrissey, Ward 3 Council Member 13. Resolution approving Amendment to Development Agreement between Bread to Beer, LLC and City of Waterloo for the redevelopment of 301-325 Commercial Street (former Wonder Bread Bakery), adopted September 8, 2015, to remove asbestos from the roof for an estimated total cost of $3,000. Submitted By: Noel Anderson, Community Planning & Development Director 14. Resolution approving Professional Services Agreement with Robinson Engineering Co., of Independence, Iowa, in an amount not to exceed $21,770.00 for engineering design and construction related services for the Environmentally Beneficial Alley Permeable Paver Project. Submitted By: Phil Schuppert, Storm Water Specialist 15. Resolution approving Third Amended and Restated Development Agreement with Cedar Valley TechWorks, Inc. and FDP WTC, LLC, authorizing Mayor to accept additional non -substantive changes to the document upon the advice of counsel and staff and authorizing Mayor and City Clerk to execute said document. Submitted By: Michelle Weidner, Chief Financial Officer 16. Resolution approving Preconstruction Agreement with Iowa Department of Transportation for primary road improvements in conjunction with 2016 Highway 218 Asphalt Resurfacing Project (from Mitchell Avenue to 18t h St./Williston Avenue); and authorize Mayor and City Clerk to execute said document. Submitted By: Jeff Bales, Associate Engineer 17. Resolution approving application for R.I.S.E. funding for Immediate Opportunity in conjunction with the Titan Trail extension project, estimated at $598,582, and approve the Memorandum of Understanding with INRCOG for the writing, preparation, and submittal of said grant; and authorize the Mayor and City Clerk to execute any necessary documents. Submitted By: Noel Anderson, Community Planning & Development Director 18. Resolution approving the grant application to the Kresge Foundation for Neighborhood Revitalization in the amount of $75,000 for revitalization in the downtown area. Submitted By: Rudy D. Jones, Community Development Director ORDINANCES 19. An Ordinance amending the 2008 Traffic Code by amending Section 543 Thru Streets by adding Subsection 134(a) Pinnacle Place - West Fourth Street to Turnberry Drive. Page 7 of 217 Motion to receive, file, consider and pass for the first time an ordinance amending the 2008 Traffic Code by amending Subsection 134(a) Pinnacle Place as a thru street from West Fourth Street to Turnberry Drive. motion to suspend the rules. motion to consider and pass for the second and third times and adopt ordinance. Submitted By:Sandie Greco, Traffic Operations Superintendent ORAL PRESENTATIONS ADJOURNMENT Motion to adjourn. Suzy Schares, CMC City Clerk/Human Resource Director MEETINGS 4:30 p.m. Council Work Session, Harold E. Getty Council Chambers 5:00 p.m. Boards & Commissions Committee, Harold E. Getty Council Chambers 5:05 p.m. Human Resource Committee, Harold E. Getty Council Chambers 5:10 p.m. Finance Committee, Harold E. Getty Council Chambers PUBLIC INFORMATION 1. Waterloo Water Works Board of Trustees meeting minutes on December 23, 2015 are on file in the City Clerk's office. 2. Communication from Waste Management Services on the notice of termination of Larry Smith, Superintendent, effective December 28, 2015 with recommendation of approval of payout of $11,868.60 for unused benefits. 3. Communication from the Waterloo Police Department on the notice of retirement of Debra Rosol, Property Evidence Technician, effective December 31, 2015 with recommendation of approval of payout of $5,017.55 for unused benefits. Page 8 of 217 'Subtotal - as of Monday, Januaury 11, 2016 Workers Compensation Issued by TPA Housing Authority Housing Assistance EFT's Housing Authority Housing Assistance EFT's Payroll City of Waterloo Finance Committee Open Invoice Report For January 11 2016 Approval Finance Committee Accounts Payable Open Invoice Report Total As of Friday, January o8, 2016 EFT Transactions: Add Wellmark Weekly Claims Add Wellmark Monthly Claims 614,980.41 274,849.59 47,561.70 937,391.70 2,725.49 6,063.68 1,652,857.37 'Bill Payment Total - Monday, January 11, 2016 2,599,038.24 I Payment to Council members or related entities: Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-004 RESOLUTION MAKING ASSESSMENT FOR WORK PERFORMED BY THE WATER WORKS. WHEREAS, the Board of Water Works Trustees of the City of Waterloo, Iowa, did, as provided by law, notify by written notice the property owner of the premises described below to have the repairs completed and further damage prevented, and WHEREAS, the property owner failed to comply with the order of the Board of Water Works Trustees, as by law provided, and WHEREAS, the Board of Water Works Trustees proceeded to have the work done on the premises described below, in the City of Waterloo, Iowa, to comply with Ordinance No. 1118 of the City of Waterloo, Iowa, and WHEREAS, the Board of Water Works Trustees filed with the City Clerk on the 30th day of December, 2015, a report filing claim for the repairs and preventing further damage at the below described premises and same met all the requirements of the City ordinance and have been fully completed. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the said report of the Board of Water Works Trustees be, and the same is hereby, approved; that the work was done under and by virtue hereby, accepted, and that the cost of said work is hereby determined to be as follows, which amount can be assessed over a ten-year period against the property: Joshua R. Amundson and Sarah J. Harbaugh, Owner 808 Hanna Boulevard, Waterloo, Iowa Legal Description: Lot No. Thirty-two (32) in "Hansen -Noble Addition" in Black Hawk County, Iowa (now in the City of Waterloo, Iowa). Unpaid Assessment: $1,661.08 Pamela J. Timmerman and Leigh Ann Lyons, Owner 1512 W. 2nd Street, Waterloo, Iowa Legal Description: Lot 9 in Block 5 in Summit Addition to Waterloo, Iowa, Black Hawk County. Unpaid Assessment: $772.80 Troy D. Graybill and Debbie G. Graybill, Owner 353 Fairfield Street, Waterloo, Iowa Legal Description: Lot No. Twenty (20) in Block No. Two (2) in "Brinker, Resolution No. 2016-004 Page 2 Thomas and McClellan Addition" in Black Hawk County, Iowa, (now in the City of Waterloo, Iowa). Unpaid Assessment: $4,400.00 BE IT FURTHER RESOLVED that there be, and are hereby assessed and levied a special tax and assessment against the property improved in the City of Waterloo, Iowa, said assessment shall bear interest from the date of levy of the assessment, viz: January 11, 2016, at the rate of nine (9) percent per annum until paid on all the unpaid amount of this assessment certified to the County Treasurer of Black Hawk County, Iowa, and BE IT FURTHER RESOLVED that the City Clerk be, and she is hereby instructed to notify the above described property owners of said property, accordingly and also instructed to certify said assessment to the County Treasurer of Black Hawk County, Iowa, to be entered upon the tax list to be collected as other taxes, as provided by law, and when collected to be credited to the Water Works Fund of said City, and assessment to be made over a ten- year period. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: (7)hares, City Cerk Quentin Hart, Mayor CMC Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-005 RESOLUTION APPROVING APPLICATION WITH ANTHONY CHARLEY FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $222,768.00 FOR PROPERTY LOCATED AT 1306 HUMMINGBIRD CIRCLE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Anthony Charley has submitted an application dated December 21, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $222,768.00 for property located at 1306 Hummingbird Circle, more fully described as follows: and, Crossroads Estates Replat No 1 Lot 92, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Quentin Hart, Mayor Suzy Sc ares, CMC City Cl rk CITY LIMITS URBAN REVITALIZATION APPLICATIONe FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE dietW9 FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN 1 20/5 REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL 0.0F THE CITY OF WATERLOO. Vit The City Limits Urban Revitalization Area (CLURA)allows roe ed property rty tax exemptions for newly constructed two familatatU dwellings (single family homes or duplex/twin homes) that meet the following criteria: ' ` 00 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 18 working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City C. uncil. NAME: l� t t N 1.c C:lncc;� L ex SIGNATURE: ADDRESS: 1561iciv TELEPHONE: .a \ `'I - `-t 2 oi - at of S , DATE: G . 2 - A. What is the Address of the property being improved? 1 g 8 to 441)m . l� j i1-.4 C✓ What is the Legal Description of the property? (May be available at County Recorder's Office on 2"d floor of the Courthouse) vos“--Oetits ovate,s gCpl Pio . I L_,yfi'12 B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) 14\5 k t -.t, .l vwt.v C ►S'tw c. uv‘ C. City of aterloo Building and Inspections Department Information: Permit Numbe i5; OCZ t( -19--C Date permit was issued: l� D. What was the cost of the new construction? Total permit(s) valuation: E. Estimated or actual date of completion of this new construction? 12 ' 1 • , CITYF WATERLOO APPROVED DATED: t Ji t / (le RESOLUTION NO: d,L) 1 bo DENIED BLACK HAWK COUNTY ASSESSOR APPROVED DATED: DENIED Tami McFarland Black Hawk County Assessor Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-006 RESOLUTION APPROVING APPLICATION WITH CODY L. ALBERTS FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $216,223.00 FOR PROPERTY LOCATED AT 1407 HUMMINGBIRD CIRCLE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Cody L. Alberts has submitted an application dated December 30, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $216,223.00 for property located at 1407 Hummingbird Circle, more fully described as follows: and, Crossroads Estates Replat No 1 Lot 3, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: 1111 Quentin Hart, Mayor Suzy cares, CMC City lerk CITY LIMITS URBAN REVITALIZATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TVU►O``C 4.. ,•a«' FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN e.€a f J REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF TH nCITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) allows property tax exemptions for newly constructed one or nv` ¢a dwellings (single family homes or duplex/twin homes) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 18 working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. NAME: Cook L A I b e c t5 SIGNATURE: ADDRESS: /901 !4 (A• m tv, i- t b i t"d C; (. W1te2od 5o7cZ TELEPHONE: 31 R cl4' g4. 36 A. What is the Address of the property being improved? z 41-i4e DATE: ion " 3 f' -/o7 1-/vm-nn is 1-d ('.i v What is the Legal Description of the property? (May be available at County Recorder's Office on 2nd floor of the Courthouse) ______CaswAis teutel Ntpa- B. What was the nature of the improvementj(ss))?�� (must �ybe single faa�y miily homes or duplex/twin homes to qualify) C. City of Waterloo Building and Inspections Department Information: Permit Number: ` .Ct S 600041i221 Date permit was issued: S( 2-0/ t S D. What was the cost of the new construction? �0 ( LP , �. Total permit(s) valuation: I O ?-7 S E. Estimated or actual date of completion of this new construction? /61- 3 -/ S CITY OF WATERLOO V APPROVED DENIED DATED: Yt t/I RESOLUTION NO: 110 — ©Ole BLACK HAWK COUNTY ASSESSOR APPROVED DATED: DENIED Tami McFarland Black Hawk County Assessor Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. 0 Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-007 RESOLUTION APPROVING APPLICATION WITH TONETTA PINT-BURKE FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $335,783.00 FOR PROPERTY LOCATED AT 1507 FALCON RIDGE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Tonetta Pint -Burke has submitted an application dated December 29, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $335,783.00 for property located at 1507 Falcon Ridge, more fully described as follows: and, Audubon Heights 4th Addition, Lot 7, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: C j Suzy Shares, CMC City Clerk Quentin Hart, Mayor CITY LIMITS URBAN REVITALIZATION APPLICATION 144 FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO C"• ; 4 FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF T CITY OF WATERLOO. 1,124,W The City Limits Urban Revitalization Area (CLURA) allows property tax exemptions for newly constructed one or fI ipoie dwellings (single family homes or duplex/twin homes) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 1e working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. I Please fill out the following information for your application to be submitted to the City Council. ��.e5 NANAME:I��---t �- C�.�P-. S-IGNATURE: ADDRESS: 1 SO RCc.'C( 2(dit` TELEPHONE: 3 l %f 0 a'471-2..) DATE: A. What is the Address of the property being improved? '1501 FAAL t What is the Legal Description of the property? (May be available at County Recorder's Office on 2"d floor of the Courthouse) B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) C. City of Waterloo Building and Inspections Department Information: Permit Number: 0 15 - r` 1351 Date permit was issued: 8 ' 10'1,S Total permit(s) valuation: 1 S e� g�353 Y D. What was the cost of the new construction? E. Estimated or actual date of completion of this new construction? I l CITYOF WATERLOO APPROVED DENIED DATED: Vit ►/t RESOLUTION NO: ,/-c I (o — J 1 BLACK HAWK COUNTY ASSESSOR APPROVED DATED: DENIED Tami McFarland Black Hawk County Assessor Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-008 RESOLUTION APPROVING APPLICATION WITH CEDAR VALLEY 4 RENT LLC FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $259,900.00 FOR PROPERTY LOCATED AT 1876 RED TAIL DRIVE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Cedar Valley 4 Rent LLC has submitted an application dated December 18, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $259,900.00 for property located at 1876 Red Tail Drive, more fully described as follows: and, Audubon Park Sixth Addition Lot 2, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this llth day of January, 2016. ATTEST: nusAptb 40J -- Quentin Hart, Mayor uzy Sc ares, CMC City Clerk f\1Y K et. /Z/J�) 1S -- CITY LIMITS URBAN REVITALIZATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) allows property tax exemptions for newly constructed one or two family dwellings (single family homes or duplex/twin homes) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City rior to the IS' working day of Februar following are completed to comply with the timeline of the State Code of Iowa, Section 404.4uumbered paragraph 2. However, as single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. Projects started prior to the adoption date of July 18, 2011 do not qualify. NAME: ADDRESS: C. TELEPHONE: ' 1' 9 4' i 'R73) `3) A. What is the Address of the property being improved? J k' 2k,-1 'T -I NV What is the Legal Description of the property? (May be available at County Recorder's Office on 2"d floor of the Courthouse) SIGNATURE: i t.;t) DATE: B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) 1 c-' C. City of Waterloo Building and Inspections Department Information: Permit Number: Date permit was issued: 2. I Total permit(s) valuation: D. What was the cost of the new construction? E. Estimated or actual date of completion of this new construction? O 000 DENIED APPROVED DATED: DENIED RESOLUTION NO: 1 — 8 T.J. Koenigsfeld Black Hawk County Assessor Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-009 RESOLUTION APPROVING APPLICATION WITH CEDAR VALLEY 4 RENT LLC FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $264,900.00 FOR PROPERTY LOCATED AT 1896 RED TAIL DRIVE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Cedar Valley 4 Rent LLC has submitted an application dated December 18, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $264,900.00 for property located at 1896 Red Tail Drive, more fully described as follows: Audubon Park Sixth Addition Lot 4, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; and, WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTE-ST: CJ Quentin Hart, Mayor Suzy Sc. arms, CMC City Cl-rk CITY LIMITS URBAN REVITALIZATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) allows property tax exemptions for newly constructed one or two family dwellings (single family homes or duplex/twin homes) that meet the following criteria: I . Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department) 2. This application must be filed with Cityprior t� St working day of Ferry following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. Projects started prior to the adoption date ofJuly 18, 2011 do not qualify. NAME: ADDRESS: tic,, SIGNATURE: ala 1''�tZL.- TELEPHONE: ,0r '� 1 DATE: A. What is the Address of the property being improved?, ll What is the Legal Description of the property? (May be available at County Recorder's Office on 2id floor of the Courthouse) ii B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) ALL r` 1�? C. City of Waterloo Building and Inspections Department Informatin: Permit Number: Date permit was issued: i 2 I 4/y� Total permit(s) valuation: SDP b O D D. What was the cost of the new construction? D E. Estimated or actual date of completion of this new construction? CITY OF WATERLOO APPROVED DENIED DATED: BLACK HAWK COUNTY ASSESSOR APPROVED DENIED Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. DATED: RESOLUTION NO: 11� T.J. Koenigsfeld Black Hawk County Assessor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-010 RESOLUTION APPROVING APPLICATION WITH CEDAR VALLEY 4 RENT LLC FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $259,900.00 FOR PROPERTY LOCATED AT 1886 RED TAIL DRIVE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Cedar Valley 4 Rent LLC has submitted an application dated December 18, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $259,900.00 for property located at 1886 Red Tail Drive, more fully described as follows: Audubon Park Sixth Addition Lot 3, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; and, WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ti-)Qe5k44 Quentin Hart, Mayor ATTEST: Suzy Scoares, CMC City Clerk Ann iatcls— CITY LIMITS URBAN REVITALIZATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) allows property tax exemptions for newly constructed one or two family dwellings (single family homes or duplex/twin homes) that meet the following criteria: I . Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the I51 working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. Projects started prior to the adoption date of July 18, 2011 do not qualify. NAME: CCM Vatt 12.Q.1 ADDRESS: TELEPHONE: i�_,�M 7c"� eL. c'e SIGNATURE: A. What is the Address of the property being improved? DATE: Ct' Of, Cf What isthe Legal Description of the property? (May be available at County Recorder's Office on 2"d floor of the Courthouse) 1,11l(1U.ri'...O t i',} �_�;r iii :? r "6 �t `i`. i (.6 B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) MA) [E.a l C. City of Waterloo Building and Inspections Department Information: Permit Number: 1 Date permit was issued: (1121 i4 D. What was the cost of the new construction? RS') , tr't Do hblIV Total permit(s) valuation: A/(97,2-8 E. Estimated or actual date of completion of this new construction? CITY,F WATERLOO APPROVED DENIED DATED: `die RESOLUTION NO: -o I l- o I o BLACK HAWK COUNTY ASSESSOR APPROVED DATED: DENIED T.J. Koenigsfeld Black Hawk County Assessor Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-011 RESOLUTION APPROVING APPLICATION WITH JEREMY & RENE TIETZ FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $265,500.00 FOR PROPERTY LOCATED AT 5915 SUMMERLAND DRIVE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Jeremy & Rene Tietz have submitted an application dated December 29, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $265,500.00 for property located at 5915 Summerland Drive, more fully described as follows: Summerland Park, First Addition, Lot 86, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; and, WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. Quentin Hart, Mayor ATTEST: Suzy S ares, CMC City Clerk Date Received: IC Received by: Staff to make a copy for applicant CITY LIMITS URBAN REVITALIZATION APPLICATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) is a 3 -year 100% property tax exemption on the actual value added for new construction one or two family dwellings (single family homes or duplex/twin homes only) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 15` working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Coun ' rojects started prior to the adoption date of July 18, 2011 do not qualify. NAME: j1 �l� - SIGNATURE: ADDRESS: 5I ,,,►�^ ) sate Y 11)00 TELEPHONE: 3) r — / DATE: A. What is the Address of the property being improved? sslc S LfiriLvi b(. La )Q, 01 What is the Legal Description of the property? (Maybe available at County Recorder's Office on 2°d floor of the Courthouse) 5Qmer i -c\ o t\& Ro (V.. c>50va,o6 8 iP B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) 1\lituo C. City of Waterloo Building and Inspections Department Information: t Permit Number: \ NI ft (o C f Date permit was issued: %. Total permit(s) valuation: C Qn D. What was the cost of the new construction? D1,05, , 5 t) E. Estimated or actual date of completion of this new construction? ° t5 `5 Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. CITY 9F WATERLOO OFFICE USE ONLY APPROVED DATED: VI t DENIED RESOLUTION NO: atc Ile BLACK HAWK COUNTY ASSESSOR OFFICE USE ONLY APPROVED DATED: DENIED T.J. Koenigsfeld Black Hawk County Assessor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-012 RESOLUTION APPROVING APPLICATION WITH ROOFF DEVELOPMENT FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $140,000.00 FOR PROPERTY LOCATED AT 1003 VERMONT STREET, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, Rooff Development has submitted an application dated December 21, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $140,000.00 for property located at 1003 Vermont Street, more fully described as follows: Hawthorne Estates, First Addition, Lot 1, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; and, WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Quentin ITart,' Mayor uzy S ares, CMC City Cl rk For Office Use Only Date Received: [) ,(- Received by: 1 /V ) Staff to make a copy 4& applicant CITY LIMITS URBAN REVITALIZATION APPLICATION APPLICATION FOR PROPERTY TAX EXEMPTION FOR CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) is a 3 -year 100% property tax exemption on the actual value added for new construction one or two family dwellings (single family homes or duplex/twin homes only) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 1st working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. Projects started prior to the adoption date of July 18, 2011 do not qualify. NAME: ADDRESS: Due\o pmeni 1501 Covywyleicia TELEPHONE: ' )`� - _ 1 LLo7S A. What is the Address of the property being improved? SIGNATUR DATE: IOn3 \1exmtn411&)oA-ec loo =A 50700 What is the Legal Description of the property? (May be available at County Recorder's Office on 2' floor of the Courthouse) 61t i'- L -o f B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) Cons-k"ru * on cyr he6) home C. City of Waterloo Building and Inspections Department Information: ff Permit Number: 'I(j •(�dt a q3G Date permit was issued: �7 / l0/15 Total permit(s) valuation: 114©000 D. What was the cost of the new construction? ( 1-10 E. Estimated or actual date of completion of this new construction? i / g I J Cg Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. CITY OF WATERLOO OFFICE USE ONLY APPROVED DENIED DATED: `/l i %Ito RESOLUTION NO: `2.& ` C.' BLACK HAWK COUNTY ASSESSOR OFFICE USE ONLY APPROVED DATED: DENIED T.J. Koenigsfeld Black Hawk County Assessor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-013 RESOLUTION APPROVING APPLICATION WITH WILLIAM WENTE FOR TAX EXEMPTIONS ON THE CONSTRUCTION OF A NEW SINGLE FAMILY HOME VALUED AT $380,000.00 FOR PROPERTY LOCATED AT 562 MACALLAN LANE, AND LOCATED IN THE CITY LIMITS URBAN REVITALIZATION AREA (CLURA), IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, William Wente has submitted an application dated December 28, 2015 to the City Council of the City of Waterloo, Iowa, requesting to receive tax exemptions for the construction of a new single family home valued at $380,000.00 for property located at 562 MaCallan Lane, more fully described as follows: Pine Meadow Addition, Lot 5, Waterloo, Black Hawk County, Iowa. Subject to easements, restrictions, covenants, ordinances and limited access provisions of records; and, WHEREAS, said property is located within the designated City Limits Urban Revitalization Area (CLURA) in Waterloo, Iowa, as previously established by the City Council of the City of Waterloo, Iowa, and WHEREAS, the new construction project respecting said property is in conformance with the City Limits Urban Revitalization Area (CLURA) Plan as officially adopted by the City Council for the City of Waterloo, Iowa, and WHEREAS, the new construction on said property was made during the time in which such improvements are eligible for the tax exemption as set forth in the City Limits Urban Revitalization Area (CLURA) Plan as adopted by the City Council of the City of Waterloo, Iowa, and as set forth in the Urban Revitalization Act as adopted by the Legislature of the State of Iowa and signed by the Governor of the State of Iowa, and WHEREAS, said applicant is requesting the following three- year exemption schedule: For the first year For the second year For the third year 100% 100% 100% NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that said application is hereby approved and the City Clerk is hereby authorized and directed to forward said application and a copy of this resolution to the Assessor. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Suzy Shares, CMC City Clerk Quentin Hart, Mayor For Office Use Only Date Received: y - a" Received by: Staff to make a copy for applicant CITY LIMITS URBAN REVITALIZATION APPLICATION APPLICATION FOR PROPERTY TAX EXEMPTION FOk CONSTRUCTION OF NEW ONE OR TWO FAMILY DWELLINGS UNDER THE PROVISIONS OF THE CITY LIMITS URBAN REVITALIZATION AREA PLAN ADOPTED BY THE CITY COUNCIL OF THE CITY OF WATERLOO. The City Limits Urban Revitalization Area (CLURA) is a 3 -year 100% property tax exemption on the actual value added for new construction one or two family dwellings (single family homes or duplex/twin homes only) that meet the following criteria: 1. Be located within the CLURA boundaries (a map of which can be obtained from the City of Waterloo Community Planning & Development Department.) 2. This application must be filed with City prior to the 1 s` working day of February following the year when the improvements are completed to comply with the timeline of the State Code of Iowa, Section 404.4 unnumbered paragraph 2. However, a single application may be filed upon completion of an entire project requiring more than one year to construct or complete, providing prior approval has been granted by the City Council or County Board of Supervisors. Please fill out the following information for your application to be submitted to the City Council. Projects started prior to the adoption date of July 18, 2011 do not qualify. NAME: r a ikt, 12 ale tie - ADDRESS: coca I (du Lake.. TELEPHONE:1 7— R Y® YS' 'J DATE: 42—g '- SIGNATURE: 01./(1% 2 A. What is the Address of the property being improved? ...3-6j Macer / 6 a Lia l,P eo 4-1,7,0/ What is the Legal Description of the property? (May be available at County Recorder's Office on 2nd floor of the Courthouse) t ktv Me'a CPO W 469CP(j -1r9 Pt. C.d B. What was the nature of the improvement(s)? (must be single family homes or duplex/twin homes to qualify) 6 ;11 C. City of Waterloo Building and Inspections Department Information: Permit NumbertVlJ 1/ 514 Date permit was issued: D. What was the cost of the new construction? Total permit(s) valuatio 5 %9 L' E. Estimated or actual date of completion of this new construction? / — (—'e -7)O l Note: City Council approval does not guarantee tax exemptions. The application must be reviewed and approved by the Black Hawk County Assessor's Office for criteria eligibility. CITY OF WATERLOO OFFICE USE ONLY APPROVED DATED: ‘% DENIED /t lP RESOLUTION NO: 2e I b — l 3 BLACK HAWK COUNTY ASSESSOR OFFICE USE ONLY APPROVED DATED: DENIED T.J. Koenigsfeld Black Hawk County Assessor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-014 RESOLUTION FIXING THE TIME AND PLACE OF HEARING TO BE GIVEN ON A PARKING AGREEMENT WITH LEDERMAN BROS. PROPERTY MANAGEMENT COMPANY, LLC TO LEASE 8 CITY -OWNED PARKING SPACES LOCATED ADJACENT TO 403-405 JEFFERSON STREET, AND FOR THE CITY TO LEASE 8 PARKING SPACES OWNED BY LEDERMAN BROS. PROPERTY MANAGEMENT COMPANY, LLC LOCATED ADJACENT TO 403-405 JEFFERSON STREET, AS JANUARY 25, 2016, AT 5:30 P.M. IN HAROLD E. GETTY COUNCIL CHAMBERS, CITY HALL, WATERLOO, IOWA, AND INSTRUCTING CITY CLERK TO PUBLISH NOTICE OF HEARING. WHEREAS, the Council of the City of Waterloo, Iowa, shall meet in the Harold E. Getty Council Chambers, City Hall, in the City of Waterloo, Iowa, at 5:30 p.m. on the 25th day of January, 2016, for the purpose of considering and acting upon a Parking Agreement with Lederman Bros. Property Management Company, LLC, to lease 8 City -owned parking spaces located adjacent to 403-405 Jefferson Street, and for the City to lease 8 parking spaces owned by Lederman Bros. Property Management Company, LLC, located adjacent to 403-405 Jefferson Street. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the City Clerk is hereby directed to publish Notice of the time and place of said hearing in the Waterloo Courier. PASSED AND ADOPTED this 11th day of January, 2016. Quentin Hart, Mayor ATTEST: Suzy Sc ares, CMC City Cl rk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291- 4323. RESOLUTION NO. 2016-015 RESOLUTION GRANTING REQUEST OF IOWA DOT DISTRICT 2 FOR VARIANCE TO ORDINANCE NO. 3094, NOISE ORDINANCE. WHEREAS, Iowa DOT District 2 is requesting a variance to the Noise Ordinance during the 2016 construction season (4/1/16 - 11/1/16) from Sunday evening to Friday evening in conjunction with the Iowa DOT Project NHSN-218-7(231) and NHSN-25-07 to be performed on U.S. 218 from Mitchell Avenue to north of 18th Street/Williston Avenue, and WHEREAS, said event will exceed the limits of Ordinance No. 3094, Noise Ordinance, and WHEREAS, said Iowa DOT District 2 has made formal application for a variance to the Noise Ordinance during the 2016 construction season (4/1/16 - 11/1/16)from Sunday evening to Friday evening, together with recommendation and approval of the Director of Safety Services. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the request of Iowa DOT District 2 for a variance to the Noise Ordinance during the 2016 construction season (4/1/16 - 11/1/16) from Sunday evening to Friday evening, in conjunction with the Iowa DOT Project NHSN-218-7(231) and NHSN-25-07 to be performed on U.S. 218 from Mitchell Avenue to north of 18th Street/Williston Avenue, be and the same hereby granted. PASSED AND ADOPTED this 11th day of January, 2016. ATTEST: Suzy Sc City C1 hares, CMC erk rkJc entin Hart, ar Sent over 010516 TRAVEL REQUEST CITY OF WATERLOO NAME(S) AND POSITION(S): Pat Treloar, Chief of Fire Services Marty Freshwater, Battalion Chief NAME OF CLASS / MEETING: N/A DEPARTURE DATE: January 13, 2016 PURPOSE OF TRAVEL: Inspect and pick up new fire truck. WILL TRAVEL REQUIRE ADDITIONAL PERSONNEL: METHOD OF TRAVEL: x CITY VEHICLE AIRFARE ESTIMATE OF COST: LODGING MEALS REGISTRATION $350.00 MILEAGE/FUEL TOTAL FOR ALL: $ $350.00 FINANCE DEPT. STAFF ONLY LINE ITEM USED /fjy /, i-/Jv /3 4'10 FY;L BUDGETED 7400 EXPENDED YTD THIS REQUEST LEFT AFTER THIS REQUEST DATE: January 5, 2016 DESTINATION: Appleton, Wisconsin DEPARTURE POINT IF NOT WATERLOO: DATE(S) OF MEETING: January 13-14, 2016 x COST $ YES NO DEPARTING FROM: TAXI PARKING AIRFARE MISC/TOLLS PRIIVATE VEHICLE BUDGET LINE ITEM: 010-12-1400-1346 GRANT REIMBURSABLE YES NO YES NO TOTAL: $ 0 PER PERSON REQUIRED CERTIFICATION I BELIEVE THIS TRIP SERVES A PUBLIC PURPOSE AND IS NECESSARY AND : EFIC 9 THE CITYOFWO DEPARTMENT HEAD DATE l -S --c I ,6 I APPROVE THIS TRAVEL REQUEST DATE TRAVEL REQUEST CITY OF WATERLOO FINANCE DEPT. LINE ITEM USED FY= BUDGETED EXPENDED YTD THIS REQUEST LEFT AFTER THIS REQUEST DATE Ori.inal - Clerk/Finance STAFF ONLY f1/3 CO- )6v:.?7251O /3''1 75 - Co• - De•artment NAME(S) AND POSITION(S): Abraham Funchess, Jr., Executive Director; Rebecca Johnson, Human Rights Specialist; Shelly Burch, Administrative Secretary NAME OF CLASS / MEETING: 2016 NCRC Annual Conference DATE: January 5, 2016 DESTINATION: Washington, D.C. DEPARTURE POINT IF NOT WATERLOO: Waterloo DEPARTURE DATE: Tuesday, March 15, 2016 RETURN DATE: Saturday, March 19, 2016 DATE(S) OF MEETING: Wednesday, March 16, 2016 - Saturday, March 19, 2016 PURPOSE OF TRAVEL: To attend the 2016 NCRC Annual Conference WILL TRAVEL REQUIRE ADDITIONAL PERSONNEL: YES NO COST $ METHOD OF TRAVEL: CITY VEHICLE X AIRFARE DEPARTING FROM: Waterloo, Iowa PRIVATE VEHICLE ESTIMATE OF COST: $3600.00 LODGING $120.00 TAXI $825.00 MEALS $100.00 PARKING $1500.00 REGISTRATION $2100.00 AIRFARE MILEAGE/FUEL MISC/TOLLS TOTAL FOR ALL: $ 8245.00 BUDGET LINE ITEM: 010-27-2510-1346 YES NO X YES NO GRANT REIMBURSABLE REQUIRED CERTIFICATION TOTAL: $ .2748.33 PER PERSON I BELIEVE THIS TRIP SERVES A PUBLIC PURPOSE AND IS NECESS 'Y AND BENEFICIAL TO THE CITY OF WATE',r.0 DEPARTMENT HEAD I APPROVE THIS TRAVEL REQUEST MAYOR I/SI20I L DATE DATE K:\Shared Goodies\Forms\Travel Request Form January 2010 SHELLY BURCH From: Diana Gebel <diana@shortstravel.com> Sent: Tuesday, January 05, 2016 2:48 PM To: SHELLY BURCH Subject: Flight options for Washington DC Hi Shelly, *** This is a courtesy email only. No reservation has been made. Rates and availability are subject to change until tickets are purchased. Approval is required in order to secure a reservation.*** Booking Fee: $35.00 in addition to the airfares below. ( per ticket issued) PRICING OPTION 1 TOTAL AMOUNT $515.70 per person, nonrefundable $200.00 change fee once issued plus any fare difference. American Airlines (AA) 3349 S :15MAR Waterloo, IA (ALO) - Chicago, IL (ORD) 600A 735A TU OPERATED BY ENVOY AIR AS AMERICAN EAGLE American Airlines (AA) 1267 S :15MAR Chicago, IL (ORD) - Washington, DC (DCA) 825A 1112A TU American Airlines (AA) 4273 M 19MAR Washington, DC (DCA) - Chicago, IL (ORD) 452P 624P SA OPERATED BY REPUBLIC AIRLINES AS AMERICAN EAGL American Airlines (AA) 3199 M 19MAR Chicago, IL (ORD) - Waterloo, IA (ALO) 810P 920P SA OPERATED BY ENVOY AIR AS AMERICAN EAGLE PRICING OPTION 2 TOTAL AMOUNT $570.70 per person, nonrefundable $200.00 change fee once issued plus any fare difference. American Airlines (AA) 3349 N 15MAR Waterloo, IA (ALO) - Chicago, IL (ORD) 600A 735A TU OPERATED BY ENVOY AIR AS AMERICAN EAGLE American Airlines (AA) 1267 N 15MAR Chicago, IL (ORD) - Washington, DC (DCA) 825A 1112A TU American Airlines (AA) 153 K 20MAR Washington, DC (DCA) - Chicago, IL (ORD) 735A 859A SU American Airlines (AA) 3214 K 20MAR Chicago, IL (ORD) - Waterloo, IA (ALO) 950A 1054A SU OPERATED BY ENVOY AIR AS AMERICAN EAGLE Diana Gebel, CTC Corporate Travel Consultant Direct: 319-433-0849 Email: diana@shortstravel.com §• + SHC31"4 'E Impresseu wun our ser..,... „at us know! Write a quick review or connect with us to find out the latest on Short's Travel! Dissatisfied? Let my manager know. Email Angel Heefner: aheefner(a)shortstravel.com 1 2016 NCRC Annual Conference Creating a just Economy March 16-19, 2016 Capital Hilton Hotel • Washington, DC NCRC YEARS OPENING DOORS TO ECONOMIC OPPORTUNITY REGISTER TODAY! WWW.NCRC.ORG/CONFERENCE/ #JUSTECONOMY 2016 NCRC ANNUAL CONFERENCE MARCH 16-19, 2016 CAPITAL HILTON HOTEL, WASHINGTON, DC Conference programming begins at 8:00 AM on Wednesday, March 16 and concludes at 12:00 PM on Saturday, March 19. NCRC's annual conference is one of the largest national gatherings of community non -profits, policymakers, government officials, small businesses, media, and academia — all focused on how we can together create a more just economic framework to improve the lives of American families by strengthening access to credit and capital. Why Attend the 2016 NCRC Conference? Our Conference is... A source of • networking to maximize impact in our communities. Build relationships, mobilize and advocate together to spur community investment. 4 A training II ground to learn and share best practices and hear about innovative Come learn about the latest ideas from leading experts and practitioners. 2 A platform to trkz organize and take, concerted action. We work to bring good ideas to fruition. 5 An opportunity 0 to meet members of Congress face-to-face and advocate for change. NCRC's hill Day allows members to visit your state's legislators and present your community's priorities. Past speakers at our conference have included Cabinet -level Secretaries and heads of other govuninent agencies, civil rights leaders, and U,S. Senators and Representatives. workshops and plenaries on access to capital and credit; housing, community organizing, workforce and community development, and business development. The foremostexperts and practitioners will be on hand to share new developments, best practices, and innovative ideas that you won't want to miss: Take a look at a few of this year's workshop subjects. SUBJECT AREA WORKFORCE AND COMMUNITY DEVELOPMENT: Securing financing for community development • Creating an inclusive job market that opens opportunity to all members of the community • Stabilizing neighborhoods through housing and business revitalization How to Compete in the Non -Performing Loan Arena NCRC's GROWTH Project and Partnership Opportunities The Changing Marketplace of CDFI Funding Organizing Around Workforce Development SUBJECT AREA ACCESS TO CREDIT, CAPITAL AND BANKING SERVICES: Ensuring fair financial services are available to everyone • Preventing predatory lending • Supporting Age -Friendly Banking • Making CRA work for your community Making Financial Services Accessible for All Building a Local Age -Friendly Banking Campaign Addressing Health Disparities in Sustainable and Equitable Ways Building Resources to Address Health Disparities Developing a Better System for Identifying Needs in CRA Exams * All content subject to change SUBJECT AREA HOUSING: Providing housing counseling and foreclosure prevention • Promoting fair lending and fair housing initiatives • Forging pathways to sustainable homeownership for low- and moderate -income families Housing Counseling in a Post -Crisis Economy Fair Lending: The Year in Review and the Year Ahead Addressing the Racial Wealth Gap Local Strategies for Addressing the Housing Crisis Supporting Aging in Community SUBJECT AREA BUSINESS DEVELOPMENT: Developing innovative business models and tools for supporting small, women- and minority-owned businesses • Fostering business development and local job growth through alternative financial options and sustainability practices Fostering a Small Business Climate and Improving Access to Capital Strengthening Worker -Owned Co -Ops Perks and Pitfalls of Non -Bank Small Business Lenders Leveling the Playing Field for Women- and Minority -Owned Businesses Funding Models for Nonprofits SUBJECT AREA ORGANIZING: Holding banks to their CRA obligations • Empowering advocate!, on a local level • Promoting reinvestment in both urban and rural areas • Building today's youth into tomorrow's leaders Increasing Reinvestment in Low -Income Neighborhoods Building Resilient Communities to Address Violence and Increase Opportunity Debt Collection and the Stripping of Minority Wealth Promoting Integration and Neighborhood Revitalization Through CRA Media Strategies for Advocates SUBJECT AREA POLICY ADVOCACY: Influencing the future of GSE reform • Gaining tools for legislative advocacy • Shaping local, state and national polices affecting economic justice Race, Economics and the Environment The State of Small Business Lending The Future of Loan Servicing Preserving Access to Homeownership: Threats to the Secondary Market Affirmatively Furthering Fair Housing Rule: A Federal Mandate for Municipal Integration PREPARING HOUSING COUNSELORS FOR THE HUD CERTIFICATION EXAM (Multi -day training. Separate registration is required; please see registration page.) This course is designed to provide housing counseling practitioners with test -taking tools and strategies in preparation for sitting for the U.S. Department of Housing and Urban Development (HUD) competency certification examination(s). This course does not replace content mastery, which can be obtained through the NCRC Dodd -Frank e -learning Training Series, but is designed to teach practitioners methods that will increase the probability of passing the HUD examination itself. The Dodd -Frank Wall Street Reform and Consumer Protection Act requires counselors at HUD -approved housing counseling organizations to be certified by HUD as competent to provide comprehensive counseling services. As a result, HUD will administer a standardized examination testing counselors'competencies in six major areas of housing counseling. The competency areas are: • Financial Management • Home Maintenance and Financial Management for New Homeowners • Consumer Rights and Responsibilities of Homeownership and Tenancy • Fair Housing • Housing Affordability • Avoiding Delinquency/Default and Eviction This program is provided with support from the U.S. Department of Housing and Urban Development Office of Housing Counseling. Highlights and Special Events 30+ CUTTING-EDGE WORKSHOPS Participate in a wide range of interactive sessions and plenaries on a variety of topics including organizing, advocacy, housing, access to fair financial services, workforce development, fair lending, and business development, among others. KEYNOTE SPEAKERS Hear from an exciting slate of prominent government officials and community leaders addressing issues that our communities care about the most. CHAIRMAN'S RECEPTION Enjoy light snacks and music as you network with colleagues and build coalitions for economic justice. Wednesday, March 16 HILL DAY CONGRESSIONAL VISITS AND LUNCHEON Meet with your elected officials to advocate on behalf of your communities. At the luncheon, share results from your visits and hear from members of Congress about plans to put ideas into action. Thursday, March 17 NCRC 25TH ANNIVERSARY AWARDS DINNER Celebrate NCRC's Silver Anniversary as we present our National Achievement Awards to those who are leaders in expanding fair access to financial services. Thursday, March 17 Stay Connected With NCRC on Social Media! Join NCRC's social media community for the latest news and engage in discussions with your colleagues leading up to and during the annual conference. Like us on Facebook D Follow us on Twitter @NCRC Use the hashtag #JustEconomy to keep in touch with conference updates and share your own experiences. Join our professional network on Linkedln Participants From the 2015 Conference Had the Following to Say: 44 The conference set the groundwork for my understanding of the work and expanded my sense of possibility around community reinvestment. The relationships l developed are enduring and have been a great source of know-how and provided me with a wealth of information." Attending NCRC's annual conference is a 'must do if you can' for anyone that's serious about community reinvestment!' he information learned and shared and thepeople you meet there can prove to be invaluable as we work to make a wait until the next one overwhelmed by the amount of support and insight I was able to get from people passionate about the same issues.. .." Rafael A Look at Our 2015 Attendees Business Development Organizations and CDFIs Government/ Policymakers Fair Housing and Civil Rights Organizations Advocacy and Community Organizing Groups 773 REGISTRANTS Financial Services Professionals Affordable Housing Organizations and Housing Counselors Other (academics, students and interns, foundations, etc.) Conference Registration Information REGISTRATION TYPE MEMBER NON-MEMBER STUDENT Regular (Until March 11) $199.00 $489.00 $49.00 Onsite $249.00 $539.00 $99.00 Learn more and register online for the 2016 NCRC Annual Conference at: http://www.ncrc.org/conference/ SPECIAL OFFER: Register for the conference and become an NCRC member to save on registration cost and dues! • Not already a member of NCRC? If you become a new member and register for the conference today, you will receive a 50% discount on your first year's membership dues! Additionally, you will be eligible to register for the conference at the lower member registration rate of $199. • If you wish to take advantage of this offer and join NCRC, please use the special offer code "2016NEWMEMBER" to process your conference registration. An NCRC Regional Organizer will contact you soon to help process your membership application. • If you have any questions about this offer or the benefits of NCRC membership, please email membership@ncrc.org or call 202-464-2724. HUD Certification Exam Training Registration Information For a nominal registration fee, housing counselors may participate in this six -module training and non -competing events at NCRC's annual conference. For more information, please contact Nsonye Anarado at nanarado@ncrc.org. Hotel Information The 2016 NCRC Annual Conference will be held at the Capital Hilton hotel in Washington, DC. Group Code: NCRC Special guest room group rates of $259/night single or double occupancy are still available at the Capital Hilton for Tuesday, March 15 through Saturday, March 19 for NCRC conference attendees, but this discounted block of rooms is filling up fast! Make your reservation by calling 800 -HILTONS (1-800-445- 8667) and referencing the Group Code: "NCRC" before this discounted block is full. Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-016 RESOLUTION CONFIRMING APPROVAL OF SPECIFICATIONS, BID DOCUMENT, FORM OF CONTRACT, ETC. IN CONJUNCTION WITH THE DEMOLITION OF TEN (10) STRUCTURES INCLUDING GARAGES: 430 BAYARD STREET, 223 SUMNER STREET, 219 SUMNER STREET, 1808 E. 4TH STREET, 225 NEWELL STREET, 219 NEWELL STREET, 433 RATH STREET AND 2014 LAFAYETTE STREET. WHEREAS, the City Council of the City of Waterloo, Iowa, heretofore instructed the Community Development Director of said city to prepare proposed specifications, bid document, form of contract, etc., in conjunction with the demolition of ten (10) structures including garages: 430 Bayard Street, 223 Sumner Street, 219 Sumner Street, 1808 E. 4th Street, 225 Newell Street, 219 Newell Street, 433 Rath Street and 2014 Lafayette Street, in the City of Waterloo, Iowa, and WHEREAS, said Community Development Director did file said preliminary plans, specifications, form of contract, etc., in conjunction with the demolition of ten (10) structures including garages, and WHEREAS, a public hearing, upon notice was held on January 11, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that said proposed specifications, bid document, form of contract, etc., in conjunction with the demolition of ten (10) structures including garages, in the City of Waterloo, Iowa, is hereby approved. PASSED AND ADOPTED this llth day of January 2016. ATTEST: JA_COL-i->C) y Shares, CMC City C erk Quentin Hart, Mayor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-017 RESOLUTION AUTHORIZING TO PROCEED WITH THE DEMOLITION OF TEN (10) STRUCTURES INCLUDING GARAGES: 430 BAYARD STREET, 223 SUMNER STREET, 219 SUMNER STREET, 1808 E. 4TH STREET, 225 NEWELL STREET, 219 NEWELL STREET, 433 RATH STREET AND 2014 LAFAYETTE STREET. WHEREAS, by Resolution No. 2016-016, specifications, bid document, form of contract, etc., in conjunction with the Demolition of ten (10) structures including garages: 430 Bayard Street, 223 Sumner Street, 219 Sumner Street, 1808 E. 4th Street, 225 Newell Street, 219 Newell Street, 433 Rath Street and 2014 Lafayette Street, have been approved and adopted by this Council after the public hearing on January 11, 2016 as prescribed by statute. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that it is deemed advisable and necessary and it is so ordered on motion by this Council that the said project proceed in accordance with said specifications. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: Caw a t -✓J Suzy Schares, CMC City Clerk Quentin Hart, Mayor Bid Tab January 7, 2016 Demolition of ten (10) structures including garages: 430 Bayard Street 223 Sumner Street 219 Sumner Street 1808 E. 4th Street 225 Newel Street 219 Newel Street 433 Rath Street 2014 Lafayette Street Estimate: $68,000. Bid Security Required Bidder Bid Security Bid Amount Lehman Trucking & Excavating, Inc. Waterloo, IA 5% $62,935.00 Bid Tab January 7, 2016 Demolition of ten (10) structures including garages: 430 Bayard Street 223 Sumner Street 219 Sumner Street 1808 E. 4th Street 225 Newel Street 219 Newel Street 433 Rath Street 2014 Lafayette Street Estimate: $ Bid Security Required Bidder Bid Security Bid Amount Lehman Trucking & Excavating, Inc. Waterloo, IA 5% / ai' h 1 Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-018 RESOLUTION CONFIRMING APPROVAL OF SPECIFICATIONS, BID DOCUMENT, FORM OF CONTRACT, ETC. IN CONJUNCTION WITH THE REMOVAL OF ASBESTOS FROM FOUR (4) STRUCTURES: 219 NEWELL STREET, 223 SUMNER STREET, 433 RATH STREET AND 2014 LAFAYETTE STREET. WHEREAS, the City Council of the City of Waterloo, Iowa, heretofore instructed the Community Development Director of said city to prepare proposed specifications, bid document, form of contract, etc., in conjunction with the removal of asbestos from four (4) structures: 219 Newell Street, 223 Sumner Street, 433 Rath Street and 2014 Lafayette Street, in the City of Waterloo, Iowa, and WHEREAS, said Community Development Director did file said preliminary specifications, bid document, form of contract, etc., in conjunction with the removal of asbestos from four (4) structures, and WHEREAS, a public hearing, upon notice was held on January 11, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that said proposed specifications, bid document, form of contract, etc., in conjunction with the removal of asbestos from four (4) structures, in the City of Waterloo, Iowa, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. Quentin Hart, Mayor ATTEST: Su y S hares, CMC City C erk Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-019 RESOLUTION AUTHORIZING TO PROCEED WITH THE REMOVAL OF ASBESTOS FROM FOUR (4) STRUCTURES: 219 NEWELL STREET, 223 SUMNER STREET, 433 RATH STREET AND 2014 LAFAYETTE STREET. WHEREAS, by Resolution No. 2016-018, specifications, bid documents, form of contract, etc., in conjunction with the removal of asbestos from four (4) structures: 219 Newell Street, 223 Sumner Street, 433 Rath Street and 2014 Lafayette Street, have been approved and adopted by this Council after the public hearing on January 11, 2016 as prescribed by statute. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that it is deemed advisable and necessary and it is so ordered on motion by this Council that the said project proceed in accordance with said specifications. PASSED AND ADOPTED this 11th day of January 2016. Quentin Hart, Mayor ATTEST: Suzy c ares, CMC City lerk Bid Tab January 7, 2016 Removal of Asbestos from four (4) structures: 219 Newel Street 223 Sumner Street 433 Rath Street 2014 Lafyaette Street Estimate: $15,000. Bid Security Required Bidder Bid Security Bid Amount Advanced Environmental Waterloo, IA 5% $14,600.00 Bid Tab January 7, 2016 Removal of Asbestos from four (4) structures: 219 Newel Street 223 Sumner Street 433 Rath Street 2014 Lafyaette Street Estimate: $ Bid Security Required Bidder Bid Security Bid Amount Advanced Environmental Waterloo, IA 5% 1 LA , (0 00' Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-020 RESOLUTION CONFIRMING APPROVAL OF SPECIFICATIONS, BID DOCUMENT, FORM OF CONTRACT, ETC. IN CONJUNCTION WITH THE RIVERFRONT STADIUM VIDEO DISPLAY SYSTEM. WHEREAS, the City Council of the City of Waterloo, Iowa, heretofore instructed the Leisure Services Director of said city to prepare proposed specifications, bid document, form of contract, etc., in conjunction with the Riverfront Stadium Video Display System, and WHEREAS, said Community Development Director did file said preliminary specifications, bid document, form of contract, etc., in conjunction with the Riverfront Stadium Video Display System, and WHEREAS, a public hearing, upon notice was held on January 11, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that said proposed specifications, bid document, form of contract, etc., in conjunction with the Riverfront Stadium Video Display System, is hereby approved. PASSED AND ADOPTED this 11th day of January 2016. ATTEST: A. Suzy Shares, CMC City Cl-rk Quentin Hart, Mayor Prepared by Nancy Higby, Administrative Secretary, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, 319-291-4323. RESOLUTION NO. 2016-021 RESOLUTION AUTHORIZING TO PROCEED WITH THE RIVERFRONT STADIUM VIDEO DISPLAY SYSTEM. WHEREAS, by Resolution No. 2016-020, specifications, bid documents, form of contract, etc., in conjunction with the Riverfront Stadium Video Display System, have been approved and adopted by this Council after the public hearing on January 11, 2016 as prescribed by statute. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that it is deemed advisable and necessary and it is so ordered on motion by this Council that the said project proceed in accordance with said specifications. PASSED AND ADOPTED this 11th day of January 2016. biv-Li-- Quentin Hart, Mayor ATTEST: uzy Sc ares, CMC City Cl rk Bid Tab January 7, 2016 Riverfront Stadium Video Display system Estimate: $ 300 Up 0 Bid Security Not Required Bidder Bid Security Bid Amount Daktronics Brookings, SD 5% Base: $269,970.00 Opt A: $ 22,490.00 Opt B: $ 1,850.00 Opt C: $ 5,685.00 Iowa Direct Equipment & Appraisal Cedar Falls, IA 5% Base: $264,900.00 Opt A: $ 6,200.00 Opt B: --0-- Opt C: $ 5,700.00 Nagle Signs, Inc.° Waterloo, IA 5 /0 Base: $299,895.00 Opt A: $ 9,600.00 Opt B: $ 4,100.00 Opt C: $ 14,000.00 Bid Tab January 7, 2016 Riverfront Stadium Video Display system Estimate: $ Bid Security Not Required Bidder Bid Security Bid Amount Daktronics Brookings, SD ° "A' 5 �0 Oft -.a. °) t`' 9 19 7 °_ 1 4 9 O Iowa Direct Equipment & Appraisal Cedar Cedar Falls, IA 5% ado 011-( 900 Dv #2.°° -- G f#2.°° -- 7o0 °=' Nagle Signs, Inc. Waterloo, IA 5% —/ a1G1 ,11s o ' J' o CI a too j9 IDb0"