HomeMy WebLinkAboutA015 - Resolution approving the Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2024ITEM #:17
DATE:02-11-25
DEPT:FIN
SUBJECT:RESOLUTION TO APPROVE THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT FOR FISCAL YEAR ENDED JUNE 30, 2024
COUNCIL ACTION FORM
BACKGROUND:
The City of Ames (City) is required by the Code of Iowa to publish a complete set of audited financial
statements presented in conformity with generally accepted accounting principles. These financial
statements, referred to herein as the Annual Comprehensive Financial Report, serve many purposes
including the following:
Provide information needed for both financial decision-making and the assessment of financial
stewardship
Lend insight into the financial health of the City
Preserve public and investor trust through financial transparency
Demonstrate compliance with public decisions concerning the raising and spending of public
money
Demonstrate the extent to which operating objectives are met efficiently and effectively, using all
resources available for that purpose, and whether it can continue to do so
Demonstrate compliance with finance-related legal and contractual provisions
The Annual Comprehensive Financial Report is made up of many sections and contains information that
may seem confusing even to those who are familiar with private sector accounting reports.
The main difference between private sector accounting and governmental accounting is the use of fund
accounting. Fund accounting is a tool used by governments to organize and present data about financial
resources to show the fact that certain resources have been segregated for specific activities or
objectives in accordance with special regulations, restrictions, or limitations. The constraints on how
financial resources can be used are either imposed externally (grantors and creditors) or internally
through the budget adopted by the City Council.
Governmental accounting regulations require that the statements contained in the annual comprehensive
financial report use methods of accounting that don't completely match the method of recording
transactions in the accounting software, which is primarily on a budgetary basis for tracking and control
against the Council approved budget.
An extensive amount of time is required to close out the accounting records and make the numerous
adjusting entries that are required to convert to the accounting basis required for the Annual
Comprehensive Financial Report. Because of this, the City produces this financial report only on an
annual basis.
Eide Bailly LLP, Certified Public Accountants, has audited the City's financial statements as of and for
the year ended June 30, 2024, and expressed its opinion on these statements based on the audit. In the
auditor's opinion, the financial statements present fairly, i n all material respects, the respective financial
position of the governmental activities, the business-type activities, the fiduciary fund, the aggregate
discretely presented component unit, each major fund, and the aggregate remaining fund information of
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the City as of June 30, 2024, 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 with the exception described below.
AUDIT OPINION AND REPORT
The auditor’s report on the financial statements is an unmodified or “clean” opinion. There were
no significant deficiencies or material audit adjustments.
Also included with the report is the Management Letter that discloses any findings, difficulties in
performing the audit, misstatements, disagreements with management, and other issues that came
up during the audit. The letter confirms that there were no other issues to report related to the
June 30, 2024 audit.
ALTERNATIVES:
1. Accept the Annual Comprehensive Financial Report as presented.
2. Request further information.
CITY MANAGER'S RECOMMENDED ACTION:
The City is required by state law to have an annual audit of its financial statements. The City
Council needs to accept the audited financial statements so they can be submitted to the state and
other users of the Annual Comprehensive Financial Report.
Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1,
thereby accepting the Comprehensive Annual Financial Report as presented.
ATTACHMENT(S):
2024 ACFR Report.pdf
City of Ames 2024 Governance Letter 21406.pdf
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ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
CITY OF AMES, IOWA
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
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We’re celebrating, and we want everyone to know it!
It’s been a whirlwind few years, packed with anniversaries and achievements that remind us about the amazing community that is Ames! Whether it’s the timeless tunes of the Ames Municipal Band hitting the century mark or the shade-filled memories of Brookside Park’s upcoming 100th in 2025, there’s plenty to cheer about.
Did you know that Inis Grove and Emma McCarthy Lee Parks turned 75 this year? These gems continue to be the go-to nature space for everything from sunny summer picnics to action-packed pickleball showdowns. Meanwhile, our Water Pollution Control Facility celebrated its 35th birthday, proving that even wastewater can have a glow-up. And Old Town Park, always a charmer, marked its 40th year. Plus, the Ames Human Relations Commission hit the big 5-0. That’s a half a century of fostering connection and understanding!
Looking ahead to 2025, the spotlight will shine on Ames City Hall’s 35 years in its current home (formerly Ames High School). It’s a big anniversary for the Arnold O. Chantland Resource Recovery System, which hits the half-century mark. The facility continues to shift its focus from energy production to waste reduction. It’s all reduce, reuse, recycle! Also, let’s not forget River Valley Park and Nutty Woods, each celebrating six decades of outdoor adventure.
Some milestones sneak up on you, like this year’s 20th anniversary of Ada Hayden Heritage Park (dedicated Aug. 28, 2004). Can you believe we’ve had 15 years of splash-tacular fun at Furman Aquatic Center (opened on May 29, 2010)? Also, we’re celebrating a decade since the Ames Public Library’s shiny new addition (ribbon-cutting on Sept. 14, 2014). This is on top of the entire Library celebrating 120 years. Time flies when you’re having fun, right?
Even our drop-off recycling center—just a baby at one year old—deserves a shoutout. What started as a grassroots effort and a limited pilot project now diverts paper, plastic, metal, cardboard, clothing, and food waste from the landfill. Talk about a birthday with impact!
This is the time to toast some of Ames’ most incredible milestones. These anniversaries are more than numbers; they’re a testament to Ames’ spirit and resilience. By celebrating our past, we strengthen our present and dream big for the future. So, here’s to us! We are a community worth celebrating over and over again.
ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
CITY OF AMES, IOWA
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
4
CITY OF AMES, IOWA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
Prepared by:
Department of Finance
Accounting Division
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Mission
Statement
We are caring people, providing quality
Programs with exceptional service to a
community of progress
We Value…
Continuous improvement in our organization and our services.
Innovation in problem solving.
Employee participation in decision making.
Personal and professional development.
Each other as we work together to serve the community.
We Are…
Proud to provide superior services to our community.
Professional and objective as we address public concerns and needs.
Fair, flexible, and helpful in our actions.
Efficient and fiscally responsible.
Proactive in reviewing and evaluating the type and focus of our services.
Caring People, Quality Programs, Exceptional Service
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CITY OF AMES, IOWA
TABLE OF CONTENTS
JUNE 30, 2024
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INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................1
GFOA Certificate of Achievement for Excellence in Financial Reporting ...............................5
Organizational Chart ..................................................................................................................6
List of Elected and Appointed Officials ....................................................................................7
FINANCIAL SECTION
Independent Auditor's Report ..................................................................................................11
Management's Discussion and Analysis ..................................................................................15
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................28
Statement of Activities .................................................................................................30
Fund Financial Statements:
Balance Sheet – Governmental Funds .........................................................................31
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position ......................................................................................32
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds ..............................................................................................33
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .................34
Statement of Net Position – Proprietary Funds............................................................35
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Funds ...................................................................................................37
Statement of Cash Flows – Proprietary Funds .............................................................38
Statement of Fiduciary Net Position ............................................................................40
Statement of Changes in Fiduciary Net Position .........................................................41
Notes to the Financial Statements ......................................................................................42
Required Supplementary Information:
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) – Iowa
Public Employees' Retirement System ........................................................................98
Schedule of City Contributions – Iowa Public Employees' Retirement System ...............99
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) –
Municipal Fire and Police Retirement System of Iowa .............................................100
Schedule of City Contributions – Municipal Fire and Police Retirement System
of Iowa .......................................................................................................................101
Schedule of Changes in Total OPEB Liability and Related Ratios .................................102
Budgetary Comparison Schedule – Governmental and Proprietary Funds .....................104
Budgetary Comparison Schedule – Budget to GAAP Reconciliation .............................105
Notes to the Required Supplementary Information .........................................................106
Combining Fund Financial Statements and Schedules:
Combining Balance Sheet – Non-Major Governmental Funds .......................................112
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Non-Major Governmental Funds ............................................................113
Combining Balance Sheet – Non-Major Special Revenue Funds ...................................114
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CITY OF AMES, IOWA
TABLE OF CONTENTS (continued)
JUNE 30, 2024
ii
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Non-Major Special Revenue Funds.........................................................116
Combining Statement of Net Position – Non-Major Enterprise Funds ...........................119
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Non-Major Enterprise Funds .....................................................................................121
Combining Statement of Cash Flows – Non-Major Enterprise Funds ............................122
Combining Statement of Net Position – Internal Service Funds .....................................125
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds ...............................................................................................126
Combining Statement of Cash Flows – Internal Service Funds ......................................127
STATISTICAL SECTION
Financial Trends:
Net Position by Component .............................................................................................131
Changes in Net Position ...................................................................................................132
Fund Balances of Governmental Funds ...........................................................................135
Changes in Fund Balances of Governmental Funds ........................................................136
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property ............................................137
Property Tax Rates – Direct and Overlapping Governments ..........................................138
Principal Property Taxpayers ...........................................................................................139
Property Tax Levies and Collections ...............................................................................140
Debt Capacity:
Ratios of Outstanding Debt by Type ...............................................................................141
Ratios of General Bonded Debt Outstanding ...................................................................142
Direct and Overlapping Governmental Activities Debt ...................................................143
Legal Debt Margin ...........................................................................................................144
Pledged-Revenue Coverage .............................................................................................145
Demographic and Economic Information:
Demographic and Economic Statistics ............................................................................147
Principal Employers .........................................................................................................148
Operating Information:
Full-Time Equivalent Employees by Function ................................................................149
Operating Indicators by Function ....................................................................................150
Capital Asset Statistics by Function ................................................................................151
COMPLIANCE SECTION
Independent Auditor's 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 ....................................155
Independent Auditor’s Report on Compliance for Each Major Federal Program and
Report on Internal Control Over Compliance Required by the Uniform Guidance ........157
Schedule of Expenditures of Federal Awards ........................................................................160
Notes to the Schedule of Expenditures of Federal Awards ...................................................164
Schedule of Findings and Questioned Costs ..........................................................................165
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INTRODUCTORY SECTION
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January 29, 2025
To the Honorable Mayor, City Council Members, and Citizens of Ames, Iowa:
The City of Ames, Iowa (City) is required by the Code of Iowa to publish a complete set of
audited financial statements presented in conformity with generally accepted accounting
principles. Pursuant to these requirements, the Annual Comprehensive Financial Report of the
City for the fiscal year ended June 30, 2024, is hereby submitted.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
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.
Eide Bailly LLP, a firm of licensed certified public accountants, has issued an unmodified
(“clean”) opinion on the City’s financial statements for the year ended June 30, 2024. The
independent auditor’s report is presented as the first component of the financial section in this
report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. The MD&A complements this letter of transmittal and reads in conjunction with it.
Profile of the City of Ames
The City was incorporated in 1864 under the laws of the State of Iowa, later amended in July
1975 under the Home Rule City Act. The City is located in central Iowa, 30 miles north of Des
Moines. Ames is the ninth largest city in Iowa and serves a population of 66,427, according to
the 2020 census. The City is empowered to levy a property tax on real property located within
its boundaries. It also is empowered by state statute to extend its corporate limits by annexation,
which occurs periodically when deemed appropriate by the governing council.
The City operates under a mayor-council form of government with an appointed manager.
Policy-making and legislative authority are vested in the governing council consisting of the
mayor and six other council members. The council members serve four-year staggered terms
with three council members elected every two years. The mayor is elected for a four-year term.
Four of the council members are elected by district. The mayor and the two remaining council
members are elected at large.
The City provides a full range of services, including police and fire protection; snow removal;
construction and maintenance of highways, streets, and other infrastructure; recreational and
cultural activities; library services; community development; electric, water, and sewer systems;
parking lot facilities; resource recovery; a municipal airport; transit services; and a municipal
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hospital. The City is also financially accountable for a legally separate hospital foundation
reported separately within the City’s financial statements. Additional information on the hospital
foundation can be found in the notes to the financial statements (see Note 1.2 Reporting entity).
The annual budget serves as the foundation for the City's financial planning and control and is
prepared by function. The City Manager is responsible for developing a budget proposal for
presentation to the City Council in January and February of each year. In most years, the City
Council is then required to hold public hearings on the proposed budget and adopt a final budget
no later than April 30 for the fiscal year beginning the following July 1. Any amendments to the
budget must be prepared and adopted in the same manner as the original budget.
Local economy
The Ames Area Metropolitan Statistical Area (MSA) has seen steady growth over the years, with
its unemployment rate reflecting the overall economic stability of the region. Historically, the
area has maintained lower unemployment rates compared to state and national averages. This is
largely due to its diverse economy, including a strong presence of Iowa State University, which
provides employment in education, research, and development. In recent years, the
unemployment rate in Ames has generally been below 3%, even during economic downturns,
demonstrating resilience and an adaptive labor market.
Per capita income in the Ames MSA has experienced significant growth, driven by an increase
in both educational attainment and the number of high-paying jobs, particularly in research,
technology, and higher education sectors. Historically, Ames has had a higher per capita income
than the state of Iowa as a whole, due to the influence of Iowa State University, which attracts
skilled professionals and researchers. In recent years, this trend has continued, with per capita
income outpacing both state and national averages. As of the latest data, per capita income in
Ames has grown steadily, with a noticeable increase in tech-related fields and professional
services.
Gross Domestic Product (GDP) for the Ames MSA has also shown a positive trajectory. The
region’s GDP growth reflects the economic diversification in the area, which includes
agriculture, education, and research-based industries. Over the past few decades, the Ames
economy has evolved from primarily agricultural to a more knowledge-based economy,
bolstered by university-driven innovation. The region has seen GDP growth rates that align with
broader state trends, with significant annual growth reported in sectors like research and
technology. Historically, Ames' GDP growth has been driven by its educational and
technological industries, with a marked increase in innovation-driven sectors like life sciences,
engineering, and data analytics.
When comparing these economic indicators to historical trends, Ames has proven to be a stable
and growing region. The lower unemployment rates, consistent rise in per capita income, and
GDP growth show that the Ames MSA has successfully diversified its economy over time. The
presence of Iowa State University continues to play a central role in driving economic growth
and maintaining high levels of educational attainment, which supports a high-income, skilled
workforce. This positions Ames as one of the stronger and more resilient MSAs in Iowa, with
continued potential for growth in tech, education, and research-driven industries.
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Long-term financial planning and major initiatives
In 2013 the Iowa Department of Natural Resources released the Iowa Nutrient Reduction Strategy.
This strategy required the largest municipal wastewater facilities in Iowa to install process changes
for nutrient removal. The City successfully contracted for the improvements and entered into a loan
agreement with the Iowa Clean Water Revolving Loan Program in an amount not-to-exceed
approximately $65 million. To accomplish funds for these improvements, staff expects to increase
rates on an annual basis over at least the next five years. The financial condition of the utility is
expected to be continually evaluated to ensure financial viability.
The City has been evaluating the conversion of the Resource Recovery System into a new model where
refuse-derived fuel is no longer produced for the Power Plant. Staff has consulted with several different
potential landfill partners and has developed preliminary financial modeling for the construction and
operation of a solid waste and recycling transfer station. This facility would receive solid waste and
recyclables separately, remove additional recyclable metals from the solid waste stream, and then
transport compacted loads of solid waste to a landfill. Recyclable materials would be consolidated and
transported to recyclers. The goal is to have a new facility operational by July 2027.
As part of the City’s capital planning process the City Council has identified five major initiatives: a
new animal control shelter, the relocation of fire station #2, development of Ontario Park, construction
of a new indoor recreation facility and the construction of a fire station #4. While staff has estimated
the costs for these capital priorities, the City Council is still evaluating the phasing and funding
strategies associated with each of these projects.
Relevant financial policies
The City Council has adopted a comprehensive set of budget and fiscal policies, including financial
management, general revenue management, user fee cost recovery goals, enterprise fund fees and
rates, grant funding, revenue distribution, investments, fund balance designations and reserves, capital
improvement management, and capital improvement financing and debt management.
The minimum fund balance requirement for the General Fund is 25% of operating expenditures less
pass-through amounts. The City met this requirement and adhered to all other financial policies
established by the City Council.
Awards and acknowledgements
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 Ames for its Annual
Comprehensive Financial Report for the fiscal year ended June 30, 2023. This was the second
consecutive year that the government has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
annual comprehensive financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
annual comprehensive financial report continues to meet the Certificate of Achievement
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Program’s requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.
The City received the GFOA’s Distinguished Budget Presentation Award for its annual budget
document for the fiscal year beginning July 1, 2024. To qualify for this award, the City's budget
document must be judged proficient as a policy document, an operations guide, a financial plan,
and a communication device. This was the 39th consecutive year the City has received this
award.
The preparation of this report would not have been possible without the skill, effort, and
dedication of the entire staff in the Finance Department. We wish to thank all the City
departments for their assistance in providing data necessary for this report. Credit is also due the
Mayor and members of the City Council for their interest and support of our efforts in conducting
the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
Steven L. Schainker
City Manager
Corey Goodenow
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Ames
Iowa
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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CITIZENS AMES
CITIZENS
HOSPITAL BOARD
HOSPITAL BOARD
Mary Greeley
Medical Center
Mary Greeley
Medical Center
Legal
Legal
City Clerk
City Clerk
City Manager
City Manager
CyRide
CyRide
Assistant
City Manager
Assistant
City Manager
Public Relations
Officer
Public Relations
Officer
Assistant
City Manager
Assistant
City Manager
Fleet Services
Fleet Services
Finance
Finance
Administration
Distribution
Engineering
Tech Services
Production
Energy Markets
Administration
Maintenance
Program
Replacement
Program
Facilities
Administration
Accounting
Customer
Services
Meter Reader
Information
Services
Print Shop
Purchasing
Electric
Electric
Fire
Fire
Police
Police
Public Works
Public Works
Water and
Pollution
Control
Water and
Pollution
Control
Fire
Station #1
Fire
Station #2
Fire
Station #3
Administration
Inspections
Prevention
Sanitation
Support
Services
Patrol
Criminal
Investigation
Support
Services
Animal
Control &
Shelter
Administration
Water Plant
Water Pollution
Control Plant
Water Meter
Laboratory
Services
Planning
& Housing
Planning
& Housing
Housing
Planning
LIBRARY BOARD OF
TRUSTEES
LIBRARY BOARD OF
TRUSTEES
Library
Library
MAYOR &
CITY COUNCIL
MAYOR &
CITY COUNCIL
TRANSIT BOARD
TRANSIT BOARD
CONFERENCE
BOARD
CONFERENCE
BOARD
City Assessor
City Assessor
Health
Promotion
Risk
Management
Parks &
Recreation
Parks &
Recreation
Administration
Ames/ISU
Ice Arena
Aquatics
Cemetery
Community
Center
Homewood
Golf Course
Parks
Maintenance
Forestry
Human Resources
Human Resources
Administration
Airport
Engineering
Parking Meter
Repair
Resource
Recovery
Streets
Traffic
Utility
Maintenance
CITY OF AMES, IOWA
ORGANIZATIONAL CHART
JUNE 30, 2024
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CITY OF AMES, IOWA
LIST OF ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED JUNE 30, 2024
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Elected Officials:
Mayor John Haila
Council Member – Ward 1 Bronwyn Beatty-Hansen
Council Member – Ward 2 Tim Gartin
Council Member – Ward 3 Gloria J. Betcher
Council Member – Ward 4 Rachel Junck
Council Member – At Large Anita Rollins
Council Member – At Large Amber Corrieri
Council-Appointed Officials:
City Manager Steven Schainker
City Attorney Mark Lambert
City Manager-Appointed / Council-Approved Official:
City Clerk Renee Hall
City Manager-Appointed Officials:
Assistant City Manager Pa Goldbeck
Assistant City Manager Brian Phillips
City Treasurer Roger Wisecup II
Director of Electric Utility Don Kom
Director of Finance Corey Goodenow
Director of Fleet Services Corey Mellies
Director of Human Resources Bethany Jorgenson
Director of Parks and Recreation Keith Abraham
Director of Planning and Housing Kelly Diekmann
Director of Public Works John Joiner
Director of Water and Pollution Control John Dunn
Fire Chief Rich Higgins
Police Chief Geoff Huff
Other Officials:
Director of Transportation Barbara Neal
Library Director Sheila Schofer
Hospital Administration:
President / Chief Executive Officer Brian Dieter
Vice President / Chief Financial Officer Gary Botine
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FINANCIALSECTION
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Independent Auditor’s Report
To the Honorable Mayor and
Members of the City Council
City of Ames, Iowa
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Ames, Iowa (City) as of and for the year ended June 30, 2024, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
In our opinion, based on our audit and the report of other auditors, the accompanying financial
statements referred to above present fairly, in all material respects, the respective financial position of
the governmental activities, the business-type activities, the discretely presented component unit, each
major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, 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.
We did not audit the financial statements of the Mary Greeley Medical Center (presented as an
enterprise fund), which is both a major fund and 57 percent, 55 percent, and 65 percent, respectively, of
the assets, net position, and revenues of the business-type activities. We did not audit the financial
statements of the discretely presented component unit, which represents 100 percent of the assets, net
position, and revenues of the discretely presented component unit. Those statements were audited by
other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the
amounts included for Mary Greeley Medical Center and the component unit, is based solely on the
report of the other auditors.
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Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is
expressed.
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Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) –
Iowa Public Employees’ Retirement System, Schedule of City Contributions - Iowa Public Employees’
Retirement System, Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset) –
Municipal Fire and Police Retirement System of Iowa, Schedule of City Contributions - Municipal Fire and
Police Retirement System of Iowa, Schedule of Changes in Total OPEB Liability and Related Ratios,
Budgetary Comparison Schedule – Governmental and Proprietary Funds, Budgetary Comparison
Schedule – Budget to GAAP Reconciliation and Notes to the Required Supplementary Information as
listed in the table of contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, 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 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.
Supplementary 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 combining nonmajor fund financial
statements and the schedule of expenditures of federal awards required by Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) 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. The 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 GAAS. In our opinion, the combining nonmajor fund
23
financial statements and the schedule of expenditures of federal awards are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial
Report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 28,
2025 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other
matters. The purpose of that report is solely 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 the
effectiveness of City’s 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.
Dubuque, Iowa
January 28, 2025
24
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
15
Management’s Discussion and Analysis
As management of the City of Ames (City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June
30, 2024. 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 on
pages 1-4 of this report.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows
of resources at the close of the most recent fiscal year by $1,153,123,993 (net position). Of this
amount, $591,066,468 represents unrestricted net position, which may be used to meet the City's
ongoing obligations to citizens and creditors.
The City’s total net position increased by $68,327,765, most of which was attributable to business-
type activities, including $36,140,482 for the Mary Greeley Medical Center.
As of the close of the current fiscal year, the City’s governmental funds reported combined fund
balances of $82,831,534, an increase of $3,999,757 in comparison with the prior year’s balance.
18.42% of this amount ($15,259,758) is available for spending at the government’s discretion
(unassigned fund balance).
At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned,
and unassigned components of fund balance) for the General Fund was
$16,845,611, or 45.17% of total General Fund expenditures.
The City’s total long-term outstanding debt decreased by $105,734 during the current fiscal year.
Within the City's business-type activities, revenues exceeded expenses by $52,276,145. The City
policy is to set rates that fund operational expenses of business-type activities and most capital
improvements. The majority of the increase in net position represents Mary Greeley’s net patient
service revenue increase of $24.288 million.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City’s basic
financial statements. The City's basic financial statements consist of three components: 1)
government-wide financial statements; 2) fund financial statements; and 3) the notes to financial
statements. This report also includes other supplementary information intended to furnish additional
detail to support 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's finances, in a manner similar to private-sector
business
25
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
16
The statement of net position presents financial information on all City assets and liabilities, and
deferred inflows/outflows of resources, with the difference 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 is improving or deteriorating.
The statement of activities presents information showing how the City’s net 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 for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City 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 include general government,
public safety, public works, health and social services, culture and recreation, and community and
economic development. The business-type activities of the City include the hospital, electric, sewer,
water, transit, storm sewer, parking, resource recovery, an ice arena, and a golf course.
The government-wide financial statements include not only the City itself (known as the primary
government), but also a legally separate medical center foundation for which the City is financially
accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
The government-wide financial statements can be found on pages 28-30 of 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, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All funds of the City can be divided into two categories:
governmental funds and proprietary 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 assessing a government’s
near-term financing 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 City’s near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
26
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
17
The City maintains 24 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, capital projects fund, and debt service fund, all
of which are major funds. Data from the other 21 governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements in the combining fund statements and schedules
section of this report.
The City adopts an annual appropriated budget for its general, capital projects, debt service, special
revenue, and enterprise funds according to the Code of Iowa. A budgetary comparison schedule has
been provided as required supplementary information to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 31-34 of this report.
Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City uses enterprise funds to account for its hospital, electric, sewer, water,
airport, parking, transit, storm sewer, ice arena, golf course, and resource recovery. Internal service
funds are an accounting device used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for fleet services, information
technology, risk management, printing, messenger, and health insurance. Because these services
benefit both the governmental and business-type functions, they have been apportioned accordingly
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 hospital, electric, sewer, and water, all of which are major funds of the City.
Data from the other seven enterprise funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major enterprise funds is provided in the form of
combining statements in the combining fund statements and schedules section of this report.
Conversely, internal service funds are combined into a single, aggregated presentation in the
proprietary fund financial statements. Individual fund data for the internal service funds is provided
in the form of combining statements in the combining fund statements and schedules section of this
report.
The basic proprietary fund financial statements can be found on pages 35-39 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside of the government. Fiduciary funds are not reported in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The City maintains one type of fiduciary fund, a custodial fund reporting resources held by the
City in a custodial capacity for the City Assessor.
The basic custodial fund financial statements can be found on page 40-41 of this report.
27
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
18
Notes to the Financial Statements. The notes provide additional information that is necessary to
acquire a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found on pages 42-95 of this report.
Other Information. In addition to the basic financial statements and accompanying notes, this
report also presents required supplementary information concerning the City's net pension liability
(asset), obligation to provide other post-employment benefits to its employees, and budgetary
comparisons. Required supplementary information can be found on pages 98-107 of this report.
The combining statements referred to earlier in connection with non-major governmental funds,
non-major enterprise funds, and internal service funds are presented immediately following the
required supplementary information. Combining fund statements and schedules can be found on
pages 112-128 of this report.
Government-Wide Overall Financial Analysis
As noted earlier, net position, may serve as a useful indicator of a government’s financial position
over time. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $1,153,123,993 at the close of the most recent fiscal year.
The following chart summarizes the government-wide assets, deferred outflows of resources,
liabilities, deferred inflows of resources, and net position of the City.
The largest portion of the City's net position (45.43%) reflects its net investment in capital assets
(e.g., land, buildings, machinery, and infrastructure) less any related outstanding debt that was used
to acquire those assets. The City uses these capital assets to provide a variety of services to its
citizens. Accordingly, these assets are not available for future spending. Although the City's net
investment in capital assets is reported net of related debt, it should be noted that the resources used
2024 2023 2024 2023 2024 2023
Current and other assets 145,221,037$ 139,853,431$ 649,677,364$ 606,775,103$ 794,898,401$ 746,628,534$
Net capital assets 226,814,563 214,483,440 504,185,827 499,992,533 731,000,390 714,475,973
Total assets 372,035,600 354,336,871 1,153,863,191 1,106,767,636 1,525,898,791 1,461,104,507
Deferred outflows of resources 9,165,546 5,686,420 30,052,629 21,811,776 39,218,175 27,498,196
Long-term liabilities outstanding 101,122,403 95,146,434 225,642,039 216,908,819 326,764,442 312,055,253
Other liabilities 7,451,198 8,863,871 35,200,852 34,307,622 42,652,050 43,171,493
Total liabilities 108,573,601 104,010,305 260,842,891 251,216,441 369,416,492 355,226,746
Deferred inflows of resources 37,535,564 37,280,936 4,732,606 11,298,793 42,268,170 48,579,729
Net position:
Net investment in capital
assets 175,545,873 164,358,181 348,355,842 344,255,162 523,901,715 508,613,343
Restricted 34,641,621 33,350,851 3,514,189 2,694,534 38,155,810 36,045,385
Unrestricted 24,596,176 21,023,018 566,470,292 519,114,482 591,066,468 540,137,500
Total net position 234,783,670$ 218,732,050$ 918,340,323$ 866,064,178$ 1,153,123,993$ 1,084,796,228$
Net Position
Governmental Activities Business-Type Activities Total
28
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
19
to repay this debt must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of the City's net position ($38,155,810 or 3.31%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of $591,066,468 is
unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City can report positive balances in all reported categories
of net position, both for the government as a whole, as well as for its separate governmental and
business-type activities. The following shows the components of net position for the years ended
June 30, 2024 and 2023:
Governmental Activities. During the current fiscal year, net position for governmental activities
increased $16,051,620 for an ending balance of $234,783,670. Taxes are the largest source of
governmental revenue with property taxes of $36,155,078 and local option sales taxes of
$12,033,283 in 2024.
Governmental activity expenses decreased $2,820,321 from 2023, or (4.24%). The following chart
shows the expenses and related program revenues for the functions of governmental activities:
29
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
20
CITY OF AMES
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
2024 2023 2024 2023 2024 2023
Revenues:
Program revenues
Charges for services 6,247,445$ 5,918,928$ 359,150,750$ 338,256,726$ 365,398,195$ 344,175,654$
Operating grants & contributions 12,231,556 13,483,090 5,870,307 7,233,367 18,101,863 20,716,457
Capital grants & contributions 6,132,438 6,698,533 3,470,229 14,010,493 9,602,667 20,709,026
General revenues
Property taxes 36,155,078 35,258,374 - - 36,155,078 35,258,374
Other taxes 14,795,568 14,391,539 - - 14,795,568 14,391,539
Unrestricted grants & contributions 42,236 5,203 - - 42,236 5,203
Investment earnings 5,775,114 2,068,855 36,730,482 22,739,276 42,505,596 24,808,131
Other 577,894 4,391,044 1,365,433 4,254,898 1,943,327 8,645,942
Total revenues 81,957,329 82,215,566 406,587,201 386,494,760 488,544,530 468,710,326
Expenses:
General government 3,678,591 4,195,286 - - 3,678,591 4,195,286
Public safety 21,310,211 19,606,339 - - 21,310,211 19,606,339
Public works 19,310,601 23,486,400 - - 19,310,601 23,486,400
Health & social services 1,812,403 1,688,515 - - 1,812,403 1,688,515
Culture & recreation 12,415,577 11,819,080 - - 12,415,577 11,819,080
Community & economic development 3,489,478 4,364,534 - - 3,489,478 4,364,534
Interest on long-term debt 1,610,636 1,287,664 - - 1,610,636 1,287,664
Mary Greeley Medical Center - - 247,769,583 232,168,581 247,769,583 232,168,581
Electric - - 63,181,563 66,344,987 63,181,563 66,344,987
Sewer - - 8,237,076 8,938,924 8,237,076 8,938,924
Water - - 10,705,954 12,296,648 10,705,954 12,296,648
Airport - - 799,305 682,709 799,305 682,709
Parking - - 840,459 825,546 840,459 825,546
Transit - - 17,182,937 15,344,049 17,182,937 15,344,049
Stormwater - - 1,606,163 1,397,657 1,606,163 1,397,657
Ames/ISU Ice Arena - - 762,662 596,755 762,662 596,755
Homewood Golf Course - - 330,949 281,547 330,949 281,547
Resource Recovery - - 5,172,617 5,209,331 5,172,617 5,209,331
Total expenses 63,627,497 66,447,818 356,589,268 344,086,734 420,216,765 410,534,552
Increase in net position before
transfers 18,329,832 15,767,748 49,997,933 42,408,026 68,327,765 58,175,774
Transfers (2,278,212) (409,629) 2,278,212 409,629 - -
Increase in net position 16,051,620 15,358,119 52,276,145 42,817,655 68,327,765 58,175,774
Net position, beginning 218,732,050 203,373,931 866,064,178 823,246,523 1,084,796,228 1,026,620,454
Net position, ending 234,783,670$ 218,732,050$ 918,340,323$ 866,064,178$ 1,153,123,993$ 1,084,796,228$
Governmental Activities Business-Type Activities Total
30
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
21
The following chart shows revenues by source for governmental activities:
Business-Type Activities. The net position for business-type activities increased by $52,276,145,
from 2023. A large portion of this increase is attributable to the hospital’s depreciable capital assets
increasing $15,869,354 and fair market investment adjustments being positive for fiscal year 2024.
The following chart shows the expenses and related program revenues for the functions of business-
type activities:
Financial Analysis of Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’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’s financing requirements. Unassigned fund balance may serve as a useful measure
of a government’s net resources available for discretionary use as they represent the portion of fund
balance that has not yet been limited to use for a particular purpose by either an external party, the
City itself, or a group or individual that has been delegated authority to assign resources for use for
purposes by the City Council.
31
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
22
The City's governmental funds reported combined fund balances of $82,831,534 at June 30, 2024,
an increase of $3,999,757 from the prior year. 18.42% of this amount ($15,259,758) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of
the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is 1)
not in spendable form ($439,554); 2) legally required to be maintained intact ($2,109,260); 3)
restricted for purposes ($54,463,867); 4) committed for purposes ($9,320,586); or 5) assigned for
purposes ($1,238,509).
The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $15,607,102, while total fund balance increased
by $706,024 to $17,045,839. The ending fund balance is 45.70% of the fiscal year expenditures,
exceeding the City's goal of 20% of expenditures.
The Capital Projects Fund had an increase of $2,427,455 in fund balance during the fiscal year,
which put the overall fund balance at $26,566,026. Some of the capital projects for the year included
CyRide fleet vehicles, water system/plant improvements, sanitary sewer improvements, as well as
annual street maintenance and improvement.
The fund balance in the Debt Service Fund is $3,870,709 at the end of the fiscal year, an increase
of $1,517,969 from the prior year.
32
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
23
Proprietary Funds. The City's proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The combined net position of the enterprise funds at June 30, 2024, totaled $905,289,678, of which
61.13% ($553,419,647) is unrestricted. This is a $51,795,357, or 6.07%, increase in net position
from last fiscal year’s balance. The net position of the internal service funds is $39,770,118, a
$4,788,096 increase in net position. Unrestricted net position accounts for $27,690,309 (69.63%) of
the total internal service fund net position balance.
Charges for services for the internal service funds increased 7.39% over the prior year.
General Fund Budgetary Highlights
Original Budget Compared to Final Budget. There were three amendments to the City's 2024
budget. The first amendment was approved in September 2023, primarily to reflect carryovers of
capital project expenditures from the prior year. The second & third amendments were approved in
April & May of 2024 to reflect year-end expenditures and revenues more accurately.
The main source of variation in the General Fund budget is the carryover of funds from fiscal year
2023 for capital projects that were not completed.
Capital Assets and Debt Administration
Capital Assets. The City's investment in capital assets for its governmental and business-type
activities as of June 30, 2024, amounts to $731,000,390 (net of accumulated depreciation and
amortization), an increase of $16,524,417 from prior year capital assets. The investment in capital
assets includes land, buildings, infrastructure, plant and distribution systems, machinery, equipment,
subscription-based information technology arrangements, and lease assets.
33
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
24
Some of the major capital asset additions include:
$10.1 million in sanitary sewer improvements
$6.4 million in parks and recreations
$10.4 million in water line systems
$2.5 million in traffic system improvements
$11.8 million in street network improvements
Additional information on the City's capital assets can be found in Note 4 - Detailed notes on all
activities and funds, Capital assets on pages 58-59 of this report. The following shows capital assets,
net of accumulated depreciation.
Long-term Debt. At the end of the current fiscal year, the City had $159,885,791 in outstanding
bonded debt, as shown in the following chart. Of this amount, $73,084,244 is debt backed by the
full faith and credit of the government and $86,801,547 is revenue bonds issued by proprietary
funds.
The City's total debt decreased by $105,734 (-0.05%) during the current fiscal year. Revenue bonds
also decreased due to no new issuances resulting in the full principal and interest payments lowering
the balance.
State statutes limit the amount of general obligation debt an Iowa city may issue to five percent (5%)
of the actual assessed valuation at January 1, 2022, related to the 2023-2024 fiscal year. The current
debt limitation for the City is $277,058,572. A portion of the outstanding general obligation debt is
abated by revenue sources other than the property tax levy. Additional information on the City's
long-term debt can be found in Note 4 - Detailed notes on all activities and funds, Long-term
obligations on pages 81-88 of this report.
2024 2023 2024 2023 2024 2023
Land 17,284,601$ 16,137,769$ 16,116,650$ 17,030,519$ 33,401,251$ 33,168,288$
Other non-depreciable/non-
amortizable assets 640,326 632,826 - - 640,326 632,826
Depreciable/amortizable assets 193,512,103 166,390,733 454,404,226 445,744,435 647,916,329 612,135,168
Construction in progress 15,377,533 31,322,112 33,664,951 37,217,579 49,042,484 68,539,691
Total 226,814,563$ 214,483,440$ 504,185,827$ 499,992,533$ 731,000,390$ 714,475,973$
Governmental Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
General obligation bonds, net 70,875,498$ 68,682,219$ 2,208,746$ 2,903,734$ 73,084,244$ 71,585,953$
Revenue bonds - - 86,801,547 94,335,613 86,801,547 94,335,613
Loans payable - - 66,806,214 60,876,173 66,806,214 60,876,173
Total 70,875,498$ 68,682,219$ 155,816,507$ 158,115,520$ 226,692,005$ 226,797,739$
Governmental Activities Business-Type Activities Total
34
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2024
25
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The following economic factors were considered in developing the fiscal year 2024 budget:
The City of Ames MSA employment remains strong and other economic indicators such as
retail sales and new construction generally indicate a strong local economy. Largely
supported by several large institutions.
A 7% increase in sewer rates generally to support improvements to the City’s Water
Pollution Control Facility, required by the Iowa Nutrient Reduction Strategy.
No change in storm water utility fees to cover the cost of maintaining the existing storm
water system and cover the necessary cost for capital improvement plans.
A 20% increase in tipping fees for the Resource Recovery Utility in an effort to maintain the
utility's financial condition in the face of decreased sales of refuse-derived fuel (RDF) to the
City’s Electric Utility.
In 2025, the City undertook a rate analysis to determine the appropriate rate structure for the
City’s Electric Utility. While the rate structure changed, the rate change is not expected to
result in any increased metered revenue for the utility.
A decrease in property tax rate from $10.20 to $10.09 per $1,000 of taxable valuation. The
decreased rate was primarily due to the significant valuation increases to existing residential
properties.
A modest increase of $61,702 in the amount of the City's support for transit to continue
existing service levels and minimize the impact on ISU student fee support.
The City added three additional positions: a new communications specialist in the city
manager’s office, a maintenance mechanic position at Cy-ride, and an additional firefighter.
The City also reduced two positions: a half-time principal clerk in the City Manager’s Office
and a half-time Principal Clerk in Fleet Services.
An 8.0% increase in health insurance costs due to increases in claim activity and cost for
prescription drugs and stop-loss coverage. The City entered into an agreement with a new
Pharmacy Benefit Manager in an attempt to reduce the City’s total prescription drug costs.
Estimated 16.5% growth in local option sales tax, primarily resulting from the increased
growth of internet sales and general consumer sentiment.
Requests for Information. This financial report is designed to provide a general overview of the
City's finances for all those with an interest in the government’s finances. Questions concerning any
of the information provided in this report or requests for additional financial information should be
addressed to the Director of Finance, 515 Clark Avenue, Ames, Iowa, 50010.
35
26
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36
BASIC FINANCIAL STATEMENTS
37
CITY OF AMES, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
28
Governmental Business-Type Component
Activities Activities Total Unit
ASSETS
Current assets:
Cash and cash equivalents 21,165,108$ 27,824,747$ 48,989,855$ 320,339$
Investments 86,917,224 104,870,625 191,787,849 -
Taxes receivable 86,395 - 86,395 -
Special assessments receivable 227,052 - 227,052 -
Accrued interest receivable 370,242 616,668 986,910 -
Accounts receivable, net 416,977 55,176,998 55,593,975 -
Lease receivable 4,043 1,178,943 1,182,986 -
Pledges receivable, net - - - 153,572
Intergovernmental receivable 6,528,141 3,386,215 9,914,356 -
Loans receivable 922 - 922 -
Internal balances (9,025,280) 9,025,280 - -
Inventories 327,837 11,664,025 11,991,862 -
Assets held for resale 808,136 - 808,136 -
Prepaid items 362,980 4,312,169 4,675,149 -
Restricted current assets:
Cash and cash equivalents - 2,188,667 2,188,667 -
Investments - 1,291,963 1,291,963 -
Accrued interest receivable - 25,641 25,641 -
Total current assets 108,189,777 221,561,941 329,751,718 473,911
Non-current assets:
Investments - 13,502,777 13,502,777 17,833,163
Succeeding year taxes receivable 35,963,162 - 35,963,162 -
Long-term loans receivable 311 - 311 -
Long-term special assessments receivable 607,700 - 607,700 -
Other assets - 23,496,780 23,496,780 -
Net pension asset - 7,918 7,918
Lease receivable 460,087 1,808,857 2,268,944
Non-depreciable assets 33,302,460 49,781,601 83,084,061 -
Depreciable assets, net of accumulated
depreciation & amortization 193,512,103 454,404,226 647,916,329 -
Restricted non-current assets:
Long-term investments - 389,299,091 389,299,091 -
Total non-current assets 263,845,823 932,301,250 1,196,147,073 17,833,163
Total assets 372,035,600 1,153,863,191 1,525,898,791 18,307,074
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 3,894,786 3,894,786 -
Deferred outflows related to OPEB 1,471,798 1,783,019 3,254,817 -
Deferred outflows related to pensions 7,693,748 24,374,824 32,068,572 -
Total deferred outflows of resources 9,165,546 30,052,629 39,218,175 -
Primary Government
38
CITY OF AMES, IOWA
STATEMENT OF NET POSITION (continued)
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
29
Governmental Business-Type Component
Activities Activities Total Unit
LIABILITIES
Current liabilities:
Accounts payable 4,393,053$ 18,399,077$ 22,792,130$ 460,045$
Accrued payroll 289,745 9,869,151 10,158,896 -
Accrued compensated absences 137,621 691,645 829,266 -
Accrued other post-employment benefits 9,549 389,898 399,447 -
Accrued interest payable 206,027 278,121 484,148 -
Retainage payable 1,461,087 1,008,074 2,469,161 -
Customer deposits 690,188 1,041,390 1,731,578 -
Intergovernmental payable 98,139 211,932 310,071 -
Claims payable 611,721 2,436,368 3,048,089 -
Loans payable - 4,451,022 4,451,022 -
Accrued other - 819,163 819,163 -
Lease liabilities 52,321 611,747 664,068 -
Subscription based IT asset liabilities 204,159 825,860 1,030,019 -
Bonds payable, net 9,673,817 8,306,771 17,980,588 -
Unearned revenue - 747,678 747,678 -
Accrued landfill post-closure costs - 15,788 15,788 -
Total current liabilities 17,827,427 50,103,685 67,931,112 460,045
Non-current liabilities:
Accrued compensated absences 2,661,272 8,573,833 11,235,105 -
Accrued other post-employment benefits 2,800,359 6,210,526 9,010,885 -
Net pension liability 24,158,022 51,368,689 75,526,711 -
Loans payable - 62,355,192 62,355,192 -
Bonds payable, net 61,201,681 80,703,522 141,905,203 -
Lease liablities 51,893 629,019 680,912 -
Subscription based IT asset liabilities 181,258 828,700 1,009,958 -
Accrued landfill post-closure costs - 69,725 69,725 -
Total non-current liabilities 91,054,485 210,739,206 301,793,691 -
Total liabilities 108,881,912 260,842,891 369,724,803 460,045
DEFERRED INFLOWS OF RESOURCES
Succeeding year property taxes 35,963,162 - 35,963,162 -
Deferred charge on refunding 373,980 4,868 378,848 -
Deferred inflows related to leases 409,914 2,831,217 3,241,131 -
Deferred inflows related to OPEB 195,055 608,049 803,104 -
Deferred inflows related to pensions 593,453 1,288,472 1,881,925 -
Total deferred inflows of resources 37,535,564 4,732,606 42,268,170 -
NET POSITION
Net investment in capital assets 175,545,873 348,355,842 523,901,715 -
Restricted:
Expendable for:
Debt service 5,387,667 3,506,271 8,893,938 -
Capital projects 12,422,347 - 12,422,347 -
Public safety 321,343 - 321,343 -
Employee benefits 15,894 7,918 23,812 -
Library services 509,894 - 509,894 -
Aquatic center 123,930 - 123,930 -
Community welfare 4,820 - 4,820 -
Housing services 874,378 - 874,378 -
Economic development 2,178,860 - 2,178,860 -
Community betterment 10,693,228 - 10,693,228 -
Mary Greeley Medical Center - - - 10,990,679
Non-expendable for:
Perpetual care 1,109,260 - 1,109,260 -
Aquatic center 1,000,000 - 1,000,000 -
Bliss Cancer Endowment Fund - - - 253,390
Unrestricted 24,596,176 566,470,292 591,066,468 6,602,960
Total net position 234,783,670$ 918,340,323$ 1,153,123,993$ 17,847,029$
Primary Government
39
CITY OF AMES, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
30
Operating Capital
Charges for Grants and Grants and Governmental Business-type Component
Functions / Programs:Expenses Services Contributions Contributions Activities Activities Total Unit
Primary government:
Governmental activities:
General government 3,678,591$ 261,278$ 49,347$ -$ (3,367,966)$ -$ (3,367,966)$ -$
Public safety 21,310,211 4,020,491 217,187 - (17,072,533) - (17,072,533) -
Public works 19,310,601 31,634 9,334,999 5,432,438 (4,511,530) - (4,511,530) -
Health and social services 1,812,403 - 23,109 - (1,789,294) - (1,789,294) -
Culture and recreation 12,415,577 1,929,538 717,792 700,000 (9,068,247) - (9,068,247) -
Community and economic development 3,489,478 4,504 1,889,122 - (1,595,852) - (1,595,852) -
Interest 1,610,636 - - - (1,610,636) - (1,610,636) -
Total governmental activities 63,627,497 6,247,445 12,231,556 6,132,438 (39,016,058) (39,016,058) -
Business-type activities:
Mary Greeley Medical Center 247,769,583 254,224,892 - 103,213 - 6,558,522 6,558,522 -
Electric 63,181,563 64,739,189 204,330 - - 1,761,956 1,761,956 -
Sewer 8,237,076 10,113,400 46,999 691,653 - 2,614,976 2,614,976 -
Water 10,705,954 13,540,505 4,720 775,169 - 3,614,440 3,614,440 -
Airport 799,305 327,291 44,647 698,918 - 271,551 271,551 -
Parking 840,459 862,948 200 - - 22,689 22,689 -
Transit 17,182,937 7,943,781 5,489,411 1,161,276 - (2,588,469) (2,588,469) -
Stormwater 1,606,163 1,990,013 80,000 - - 463,850 463,850 -
Ice arena 762,662 524,805 - 40,000 - (197,857) (197,857) -
Golf course 330,949 529,749 - - - 198,800 198,800 -
Resource recovery 5,172,617 4,354,177 - - - (818,440) (818,440) -
Total business-type activities 356,589,268 359,150,750 5,870,307 3,470,229 - 11,902,018 11,902,018 -
Total primary government 420,216,765$ 365,398,195$ 18,101,863$ 9,602,667$ (39,016,058) 11,902,018 (27,114,040) -
Component unit:
Mary Greeley Medical Center Foundation 2,842,105$ -$ 2,715,044$ -$ (127,061)
General revenues:
Property taxes 36,155,078 - 36,155,078 -
Sales taxes 12,033,283 - 12,033,283 -
Hotel/motel taxes 2,762,285 - 2,762,285 -
Unrestricted grants and contributions 42,236 - 42,236 -
Investment income 5,775,114 36,730,482 42,505,596 1,499,743
Other income 483,821 1,340,362 1,824,183 -
Gain (loss) on disposal of capital assets 94,073 25,071 119,144 -
Transfers (2,278,212) 2,278,212 - -
Total general revenues and transfers 55,067,678 40,374,127 95,441,805 1,499,743
Change in net position 16,051,620 52,276,145 68,327,765 1,372,682
Net position, beginning 218,732,050 866,064,178 1,084,796,228 16,474,347
Net position, ending 234,783,670$ 918,340,323$ 1,153,123,993$ 17,847,029$
Primary Government
Program Revenues Net (Expense) Revenue and Changes in Net Position
40
CITY OF AMES, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
31
Total Total
Capital Debt Nonmajor Governmental
General Projects Service Funds Funds
ASSETS
Cash and cash equivalents 3,520,395$ 4,178,820$ 823,318$ 6,977,902$ 15,500,435$
Investments 12,393,187 24,201,083 3,019,458 26,526,534 66,140,262
Taxes receivable 58,835 - 27,560 - 86,395
Special assessments receivable - current - 227,052 - - 227,052
Accrued interest receivable 157,850 69,867 30,044 14,793 272,554
Accounts receivable, net 310,730 - - 2,663 313,393
Intergovernmental receivable 815,018 3,506,500 - 2,167,859 6,489,377
Loans receivable - current - - - 922 922
Lease receivable - current 4,043 - - - 4,043
Due from other funds 1,762,990 750 1,905 1,949,414 3,715,059
Inventories 23,601 - - 203,029 226,630
Property held for resale - - - 808,136 808,136
Prepaid items 176,627 24,000 - 12,297 212,924
Succeeding year taxes receivable 24,240,520 - 11,722,642 - 35,963,162
Lease receivable - long term 460,087 - - - 460,087
Loans receivable - long term - - - 311 311
Special assessments receivable - long term - 607,700 - - 607,700
Total assets 43,923,883$ 32,815,772$ 15,624,927$ 38,663,860$ 131,028,442$
LIABILITIES
Accounts payable 882,556$ 2,477,390$ -$ 674,799$ 4,034,745$
Accrued payroll 153,830 27,290 - 90,521 271,641
Retainage payable 185,206 725,338 - 550,543 1,461,087
Customer deposits 22,899 - - 667,289 690,188
Intergovernmental payable 46,909 - 8,843 9,958 65,710
Due to other funds 885,283 395,420 22,733 1,120,472 2,423,908
Total liabilities 2,176,683 3,625,438 31,576 3,113,582 8,947,279
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue:
Property taxes 24,240,520 - 11,722,642 - 35,963,162
Special assessments - 834,752 - - 834,752
Charges for services 21,228 - - - 21,228
Leases 409,914 - - - 409,914
Licenses and permits 29,699 - - - 29,699
Grants - 1,789,556 - 201,318 1,990,874
Total deferred inflows of resources 24,701,361 2,624,308 11,722,642 201,318 39,249,629
FUND BALANCES
Non-spendable 200,228 24,000 - 2,324,586 2,548,814
Restricted - 24,940,705 3,870,709 25,652,453 54,463,867
Committed - 1,948,665 - 7,371,921 9,320,586
Assigned 1,238,509 - - - 1,238,509
Unassigned 15,607,102 (347,344) - - 15,259,758
Total fund balances 17,045,839 26,566,026 3,870,709 35,348,960 82,831,534
Total liabilities, deferred inflows of
resources, and fund balances 43,923,883$ 32,815,772$ 15,624,927$ 38,663,860$ 131,028,442$
41
CITY OF AMES, IOWA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
32
Amounts reported for governmental activities in the statement of net position (pages 28-29) are different because:
Fund balance - total governmental funds (page 31)82,831,534$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.214,734,752
Revenues not collected within 60 days of the end of the fiscal year are
not available to pay for current period expenditures and, therefore, are
unavailable.
Special assessments 834,752
Other revenues 2,041,803
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.
Deferred outflows of resources 7,412,614
Deferred inflows of resources (589,956)
OPEB-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.
Deferred outflows of resources 1,367,819
Deferred inflows of resources (178,553)
Internal service funds are used by management to charge the costs of
fleet management, information services, risk management, and health
insurance to individual funds. The assets and liabilities of internal
service funds are split between the governmental and business-type
activities in the statement of net position.26,719,473
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 payable (65,002,207)
Interest payable on general obligation bonds (206,027)
Deferred charges on general obligation bonds refunded (373,980)
Unamortized premiums on the issuance of general obligation bonds (5,873,291)
Lease liabilites on lease assets (104,214)
Subscription liabilites on subscription assets (211,800)
Accrued compensated absences (2,648,044)
Total other post-employment benefits payable (2,598,802)
Net pension liability (23,372,203)
Net position of governmental activities 234,783,670$
42
CITY OF AMES, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENT FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
33
Total Total
Capital Debt Nonmajor Governmental
General Projects Service Funds Funds
REVENUES
Taxes 24,328,397$ -$ 11,448,641$ 15,173,609$ 50,950,647$
Special assessments - 241,098 - - 241,098
Licenses and permits 1,503,843 - - - 1,503,843
Intergovernmental 477,918 3,073,727 49,347 12,034,966 15,635,958
Charges for services 4,583,772 - - 24,451 4,608,223
Fines and forfeitures 40,879 - - - 40,879
Investment income 2,285,665 1,531,889 361,800 189,671 4,369,025
Interest revenue 23,294 - - - 23,294
Miscellaneous 191,182 126,600 - 160,845 478,627
Total revenues 33,434,950 4,973,314 11,859,788 27,583,542 77,851,594
EXPENDITURES
Current:
General government 3,133,852 139,420 - 531,308 3,804,580
Public safety 21,247,451 - - 276,110 21,523,561
Public works 1,177,531 - - 6,922,670 8,100,201
Health and social services - - - 1,812,435 1,812,435
Culture and recreation 9,594,764 - - 758,862 10,353,626
Community and economic development 1,041,611 - - 2,478,888 3,520,499
Debt service:
Principal - - 9,611,518 - 9,611,518
Interest and fiscal charges - - 2,628,323 - 2,628,323
Capital outlay 1,101,324 18,223,955 - 6,338,900 25,664,179
Total expenditures 37,296,533 18,363,375 12,239,841 19,119,173 87,018,922
Excess (deficiency) of revenues
over (under) expenditures (3,861,583) (13,390,061) (380,053) 8,464,369 (9,167,328)
OTHER FINANCING SOURCES (USES)
Transfers in 10,224,793 3,917,340 1,898,022 477,559 16,517,714
Transfers out (5,799,139) (891,133) - (9,593,619) (16,283,891)
General obligation bonds issued - 12,110,000 - - 12,110,000
Premium on general obligation bonds - 681,309 - - 681,309
Lease financing 141,953 - - - 141,953
Total other financing sources (uses)4,567,607 15,817,516 1,898,022 (9,116,060) 13,167,085
Net change in fund balances 706,024 2,427,455 1,517,969 (651,691) 3,999,757
Fund balances, beginning 16,339,815 24,138,571 2,352,740 36,000,651 78,831,777
Fund balances, ending 17,045,839$ 26,566,026$ 3,870,709$ 35,348,960$ 82,831,534$
43
CITY OF AMES, IOWA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
34
Amounts reported for governmental activities in the statement of activities (page 30) are different because:
Net changes in fund balances - total governmental funds (page 33)3,999,757$
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Special assessments (221,626)
Other revenues 33,996
Contributed capital assets do not provide current financial resources.2,813,034
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital outlay 20,846,888
Capital contributions (1,871,287)
Disposals (37,875)
Depreciation/amortization expense (12,107,989)
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first
issued, whereas these amounts are amortized in the statement of activities.
This amount is the net effect of these differences in the treatment of long-term debt
and related items.
Current year premium on issuance of bonds (681,309)
Amortization of bond premiums 986,512
Amortization of deferred charges on refunding debt 46,747
Proceeds from issuance of bonds (12,110,000)
Principal payments 9,611,518
Interest payments (15,572)
The change in deferred outflows of resources and deferred inflows of resources is
not recorded in the governmental funds.4,161,263
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.
Increase in accrued compensated absences (164,916)
Increase in accrued other post-employment benefits (1,089,980)
Increase in net pension liability (2,454,849)
The internal service funds are used by management to charge the costs of fleet
management, information services, risk management, and health insurance to
individual funds. The net revenue of certain activities of internal service funds
is reported with both governmental and business-type activities.4,307,308
Changes in net position of governmental activities 16,051,620$
44
CITY OF AMES, IOWA
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
35
Governmental
Activities
Mary Greeley Other Internal
Medical Enterprise Service
Center Electric Sewer Water Funds Totals Funds
ASSETS
Current assets:
Cash and cash equivalents 9,910,732$ 1,636,426$ 3,799,778$ 3,321,186$ 8,310,365$ 26,978,487$ 6,510,933$
Investments - 41,448,025 14,467,936 15,898,000 29,952,731 101,766,692 23,880,895
Accrued interest receivable - 308,051 69,461 79,242 144,992 601,746 112,610
Accounts receivable, net 43,713,627 7,634,399 1,174,777 1,944,639 695,832 55,163,274 117,308
Lease receivable 1,074,068 - - 39,582 65,293 1,178,943 -
Due from other funds - 132,760 100,276 551,959 139,426 924,421 400,801
Intergovernmental receivable - 591,176 245,175 6,729 2,543,135 3,386,215 38,764
Inventories 5,147,368 5,561,856 - 547,670 407,131 11,664,025 101,207
Prepaid items 4,117,421 76,178 2,625 4,001 111,944 4,312,169 150,056
Restricted current assets:
Cash and cash equivalents - 1,030,518 144,837 1,013,312 - 2,188,667 -
Investments 1,291,963 - - - - 1,291,963 -
Interest receivable 25,641 - - - - 25,641 -
Total current assets 65,280,820 58,419,389 20,004,865 23,406,320 42,370,849 209,482,243 31,312,574
Non-current assets:
Investments - 13,502,777 - - - 13,502,777 -
Other assets 23,496,780 - - - - 23,496,780 -
Net pension asset - - - - 7,918 7,918 -
Lease receivable 377,411 - - 238,039 1,193,407 1,808,857 -
Capital assets:
Land 4,883,356 2,223,783 2,036,531 3,178,665 3,794,315 16,116,650 -
Land improvements 2,096,940 - - - 26,841,591 28,938,531 192,433
Plant and distribution systems - 238,052,192 105,697,796 137,264,620 - 481,014,608 -
Buildings 270,202,993 - - - 44,912,952 315,115,945 1,148,632
Equipment 119,365,190 - - - 48,524,648 167,889,838 24,839,707
Lease assets 2,888,122 - - - 52,316 2,940,438 -
Subscription based IT assets 2,757,238 419,161 - 27,968 16,975 3,221,342 501,230
Construction in progress 1,645,483 2,699,564 17,414,561 9,996,808 1,908,535 33,664,951 -
Less acc. depreciation/amortization (231,929,172) (146,797,456) (63,273,135) (33,614,191) (69,102,522) (544,716,476) (14,602,193)
Restricted non-current assets:
Investments 389,299,091 - - - - 389,299,091 -
Total non-current assets 585,083,432 110,100,021 61,875,753 117,091,909 58,150,135 932,301,250 12,079,809
Total assets 650,364,252 168,519,410 81,880,618 140,498,229 100,520,984 1,141,783,493 43,392,383
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 3,894,786 - - - - 3,894,786 -
Deferred outflows related to OPEB 452,607 508,096 113,506 150,398 552,071 1,776,678 110,320
Deferred outflows related to pensions 21,020,313 768,866 224,654 277,559 2,064,108 24,355,500 300,458
25,367,706 1,276,962 338,160 427,957 2,616,179 30,026,964 410,778
Business-Type Activities
45
CITY OF AMES, IOWA
STATEMENT OF FUND NET POSITION (continued)
PROPRIETARY FUNDS
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
36
Governmental
Activities
Mary Greeley Other Internal
Medical Enterprise Service
Center Electric Sewer Water Funds Totals Funds
LIABILITIES
Current liabilities:
Accounts payable 12,353,995$ 3,730,070$ 558,818$ 401,134$ 1,334,143$ 18,378,160$ 379,225$
Accrued payroll 9,442,331 159,265 10,564 28,526 228,465 9,869,151 18,104
Accrued compensated absences 594,087 36,774 7,077 11,249 41,680 690,867 8,906
Accrued other post-employment benefits 251,685 50,617 10,505 14,591 61,734 389,132 10,315
Due to other funds - 588,815 1,002,482 644,450 324,945 2,560,692 55,681
Claims payable 926,656 - - - - 926,656 2,121,433
Retainage payable 157,187 164,882 220,439 360,386 105,180 1,008,074 -
Customer deposits - 1,041,390 - - - 1,041,390 -
Accrued interest 116,106 41,232 33,338 85,497 1,948 278,121 -
Loans payable - - 1,019,022 3,432,000 - 4,451,022 -
Intergovernmental payable - 118,347 10,197 58,985 24,403 211,932 32,429
Accrued landfill post-closure costs - - - 15,788 15,788 -
Accrued other 819,163 - - - - 819,163 -
Lease liabilities 597,612 - - - 14,135 611,747 -
Subscription based IT asset liabilities 703,504 112,175 - 4,461 5,720 825,860 163,604
Bonds payable, net 6,782,113 983,623 312,827 62,543 165,665 8,306,771 -
Unearned revenue - - 508,203 239,475 - 747,678 -
Total current liabilities 32,744,439 7,027,190 3,693,472 5,343,297 2,323,806 51,132,204 2,789,697
Non-current liabilities:
Accrued compensated absences 6,911,733 604,055 118,450 196,066 734,776 8,565,080 151,474
Accrued other post-employment benefits 3,926,356 908,708 219,303 274,941 872,393 6,201,701 210,382
Net pension liability 43,071,165 1,654,033 634,220 520,825 5,442,974 51,323,217 831,291
Loans payable - - 15,121,576 47,233,616 - 62,355,192 -
Accrued landfill post-closure costs - - - - 69,725 69,725 -
Lease liabilities 621,760 - - - 7,259 629,019 -
Subscription based IT asset liabilities 705,689 105,922 - 14,172 2,917 828,700 10,013
Bonds payable, net 77,060,359 2,093,911 783,830 207,831 557,591 80,703,522 -
Total non-current liabilities 132,297,062 5,366,629 16,877,379 48,447,451 7,687,635 210,676,156 1,203,160
Total liabilities 165,041,501 12,393,819 20,570,851 53,790,748 10,011,441 261,808,360 3,992,857
DEFERRED INFLOWS OF RESOURCES
Deferred charge on refunding - - - - 4,868 4,868 -
Deferred inflows related to leases 1,350,797 - - 252,174 1,228,246 2,831,217 -
Deferred inflows related to OPEB 456,198 65,475 17,794 20,627 47,645 607,739 16,812
Deferred inflows related to pensions 1,256,858 - - - 11,737 1,268,595 23,374
3,063,853 65,475 17,794 272,801 1,292,496 4,712,419 40,186
NET POSITION
Net investment in capital assets 89,176,716 93,136,731 44,418,059 65,538,861 56,085,475 348,355,842 12,079,809
Restricted for debt service 1,317,604 1,030,518 144,837 1,013,312 - 3,506,271 -
Restricted - - - - 7,918 7,918 -
Unrestricted 417,132,284 63,169,829 17,067,237 20,310,464 35,739,833 553,419,647 27,690,309
Total net position 507,626,604$ 157,337,078$ 61,630,133$ 86,862,637$ 91,833,226$ 905,289,678 39,770,118$
Adjustment to report the cumulative internal balance for the net effect of the activity between the internal
service funds and the enterprise funds over time 13,050,645
Net position of business-type activities 918,340,323$
Business-Type Activities
46
CITY OF AMES, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
37
Governmental
Activities
Mary Greeley Other Internal
Medical Enterprise Service
Center Electric Sewer Water Funds Totals Funds
Operating revenues:
Charges for services 254,224,892$ 64,739,189$ 10,113,400$ 13,540,505$ 16,532,764$ 359,150,750$ 24,617,598$
Operating expenses:
Cost of goods and services 191,061,625 54,527,627 5,220,635 6,204,023 19,679,920 276,693,830 21,133,891
Administration 35,308,065 2,757,156 837,091 837,091 2,773,509 42,512,912 -
Depreciation 17,551,395 6,113,280 1,845,236 2,720,886 4,350,944 32,581,741 2,020,840
Total operating expenses 243,921,085 63,398,063 7,902,962 9,762,000 26,804,373 351,788,483 23,154,731
Operating income (loss)10,303,807 1,341,126 2,210,438 3,778,505 (10,271,609) 7,362,267 1,462,867
Non-operating revenues:
Intergovernmental - - 46,999 - 5,466,918 5,513,917 -
Reimbursements - 204,330 (7,891) 4,720 147,340 348,499 -
Investment revenue 29,581,960 3,270,005 1,007,474 1,066,233 1,804,810 36,730,482 1,382,793
Interest expense (3,708,835) (33,106) (368,667) (1,005,054) (6,094) (5,121,756) (8,872)
Gain (loss) on disposal of capital assets (139,663) 1,825 - - 23,246 (114,592) 70,997
Miscellaneous - 243,543 97,754 939,227 47,575 1,328,099 9,024
Total non-operating revenues 25,733,462 3,686,597 775,669 1,005,126 7,483,795 38,684,649 1,453,942
Income (loss) before capital
contributions and transfers 36,037,269 5,027,723 2,986,107 4,783,631 (2,787,814) 46,046,916 2,916,809
Capital contributions 103,213 - 2,989,531 989,326 1,900,194 5,982,264 1,871,287
Transfers in - - - - 2,735,352 2,735,352 46,199
Transfers out - (2,292,262) - - (676,913) (2,969,175) (46,199)
Change in net position 36,140,482 2,735,461 5,975,638 5,772,957 1,170,819 51,795,357 4,788,096
Net position, beginning 471,486,122 154,601,617 55,654,495 81,089,680 90,662,407 34,982,022
Net position, ending 507,626,604$ 157,337,078$ 61,630,133$ 86,862,637$ 91,833,226$ 39,770,118$
Adjustment for the net effect of the current year activity between the internal service
funds and the enterprise funds 480,788
Change in net position of business-type activities 52,276,145$
Business-Type Activities
47
CITY OF AMES, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
38
Governmental
Activities
Mary Greeley Other Internal
Medical Enterprise Service
Center Electric Sewer Water Funds Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 241,280,060$ 65,055,778$ 9,206,131$ 15,120,908$ 18,445,821$ 349,108,698$ 24,932,010$
Other receipts 2,251,091 447,873 89,863 932,562 - 3,721,389 -
Payments to suppliers (109,340,440) (43,939,038) (1,028,428) (2,919,148) (7,999,478) (165,226,532) (17,640,874)
Payments to employees (117,280,159) (11,637,418) (2,417,184) (3,595,026) (13,421,924) (148,351,711) (2,327,829)
Payments to other funds for services provided - (3,544,954) (1,995,564) (1,197,281) (2,159,662) (8,897,461) (1,151,913)
Net cash provided by (used for) operating activities 16,910,552 6,382,241 3,854,818 8,342,015 (5,135,243) 30,354,383 3,811,394
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating grants - - (93,417) - 5,466,918 5,373,501 -
Reimbursements - - - - 147,340 147,340
Interest revenue - - - 11,385 - 11,385 -
Miscellaneous income 47,573 47,573 9,024
Transfers in - - - - 2,735,352 2,735,352 46,199
Transfers out - (2,292,262) - - (676,913) (2,969,175) (46,199)
Net cash provided by (used for) non-capital
financing activities - (2,292,262) (93,417) 11,385 7,720,270 5,345,976 9,024
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (7,456,418) (5,816,892) (7,275,049) (9,993,363) (2,436,903) (32,978,625) (2,922,893)
Capital grants - - 140,416 - - 140,416 (8,872)
Proceeds from the sale of capital assets 483,623 1,825 - - 23,246 508,694 76,540
Principal paid on capital debt (7,273,582) (887,400) (333,913) (111,001) (181,168) (8,787,064) -
Interest paid on capital debt (3,091,236) (93,991) (49,976) (16,622) (30,354) (3,282,179) -
Proceeds from loans - - 2,810,243 7,478,733 - 10,288,976 -
Principal paid on loans - - (934,852) (3,329,000) - (4,263,852) -
Interest paid on loans - - (344,417) (988,916) - (1,333,333) -
Interest paid on leases - (5,674) (122) (665) (899) (7,360) -
Capital contributions 103,213 - 140,416 - 1,383,717 1,627,346 -
Net cash (used for) capital and related financing activities (17,234,400) (6,802,132) (5,847,254) (6,960,834) (1,242,361) (38,086,981) (2,855,225)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (271,637,554) (40,017,515) (16,569,588) (18,207,386) (34,303,743) (380,735,786) (27,349,900)
Proceeds from sale of investments 274,756,576 42,099,942 17,935,464 16,730,103 32,422,348 383,944,433 26,076,606
Other liabilities (10,016,925) 26,019 - - - (9,990,906) -
Interest on investments 8,573,847 2,240,250 995,215 1,042,483 1,752,330 14,604,125 1,350,469
Net cash provided by (used for) investing activities 1,675,944 4,348,696 2,361,091 (434,800) (129,065) 7,821,866 77,175
Net increase (decrease) in cash and cash equivalents 1,352,096 1,636,543 275,238 957,766 1,213,601 5,435,244 1,042,368
Cash and cash equivalents, beginning 8,558,636 1,030,401 3,669,377 3,376,732 7,096,764 23,731,910 5,468,565
Cash and cash equivalents, ending 9,910,732 2,666,944 3,944,615 4,334,498 8,310,365 29,167,154 6,510,933
Business-Type Activities
48
CITY OF AMES, IOWA
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
39
Governmental
Activities
Mary Greeley Other Internal
Medical Enterprise Service
Center Electric Sewer Water Funds Totals Funds
Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:
Operating income (loss)10,303,807$ 1,341,126$ 2,210,438$ 3,778,505$ (10,271,609)$ 7,362,267$ 1,462,867$
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation expense 17,551,395 6,113,280 1,845,236 2,720,886 4,350,944 32,581,741 2,020,840
(Increase) decrease in accounts receivable (11,788,909) 475,715 (53,381) 190,174 (168,923) (11,345,324) 200,487
(Increase) decrease in lease receivable 407,942 - - 277,122 74,981 760,045 -
(Increase) decrease in due from other funds - 959 355,964 (349,982) 126,234 133,175 93,524
(Increase) decrease in intergovernmental receivable - (171,224) 122,088 1,223,614 2,003,412 3,177,890 20,401
(Increase) in inventories (84,419) 111,692 - (32,408) (7,637) (12,772) 29,612
(Increase) decrease in prepaid items (404,569) 77,106 (2,625) 21,055 (90,954) (399,987) (150,056)
(Increase) decrease in deferred outflows of resources (6,333,610) (688,092) (142,444) (257,265) (1,204,473) (8,625,884) (155,232)
Increase in accounts payable 4,473,883 (1,440,091) (17,021) (608,855) (746,460) 1,661,456 (132,647)
Increase (decrease) in accrued payroll 322,856 7,344 2,217 (10,158) (9,359) 312,900 336
Increase (decrease) in accrued compensated absences - 46,318 (10,348) (26,271) 120,542 130,241 (2,679)
Increase (decrease) in due to other funds - (424,036) 482,128 185,436 (10,760) 232,768 (76,938)
Increase (decrease) in other long term liabilities 149,455 - - - - 149,455 419,783
Increase (decrease) in retainage payable - (35,307) 205,520 140,059 85,061 395,333 -
Increase in customer deposits - 12,964 - - - 12,964 -
Change in estimated net settlements due to third-party payors 9,950 - - - - 9,950 -
Increase (decrease) in intergovernmental payable - (8,671) 577 (3,714) (91,882) (103,690) (39,167)
Change in accrued landfill post-closure costs - - - - 1,929 1,929 -
Increase in unearned revenue - - (1,331,940) 239,475 (10,639) (1,103,104) -
Increase in post-employment benefits (225,704) 405,243 84,102 116,816 494,253 874,710 81,404
Increase in pension liability 7,640,226 398,108 96,567 137,111 776,088 9,048,100 114,187
Change in non-operating revenue - 447,873 89,863 932,562 - 1,470,298
Change in deferred inflows of resources (5,111,750) (288,066) (82,123) (332,147) (555,991) (6,370,077) (75,328)
Total adjustments 6,606,746 5,041,115 1,644,380 4,563,510 5,136,366 22,992,117 2,348,527
Net cash provided by (used for) operating activities 16,910,552$ 6,382,241$ 3,854,818$ 8,342,015$ (5,135,243)$ 30,354,383$ 3,811,394$
Schedule of non-cash capital and related financing activities:
Capital asset contributions -$ -$ 2,849,115$ 989,326$ 516,477$ 4,354,918$ 23,466$
Business-Type Activities
49
CITY OF AMES, IOWA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
40
Custodial
Fund
ASSETS
Current assets:
Intergovernmental receivable 1,900$
Total current assets 1,900
LIABILITIES
Current liabilities:
Intergovernmental payable 1,900
Total current liabilities 1,900
NET POSITION
Restricted for:
Pensions -
Postemployment benefits other than pensions -
Individuals and organizations -
Restricted for debt service -
Unrestricted -
Total net position -
-$
50
CITY OF AMES, IOWA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
The notes to the financial statements are an integral part of this statement.
41
Custodial
Fund
Additions
Contributions:
Private contributions 726,734
Total contributions 726,734
Total additions 726,734
Deductions
Benefits 193,352
Payroll 530,660
Recruitment 2,722
Total deductions 726,734
Net increase (decrease) in fiduciary net position -
Net position - beginning -
Net position - ending -$
51
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENT
JUNE 30, 2024
42
NOTE 1 - Summary of significant accounting policies
1.1 Description of government-wide financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the primary government and its component
unit. Governmental activities, which normally are supported by taxes, intergovernmental revenues,
and other non-exchange transactions, are reported separately from business-type activities, which
rely to a significant extent on fees and charges to external customers for support. Likewise, the
primary government is reported separately from certain legally separate component units for which
the primary government is financially accountable. The one fiduciary fund is excluded from the
government-wide financial statements.
1.2 Reporting entity
The City of Ames, Iowa (City) was incorporated in 1864 under the laws of the State of Iowa, later
amended in July 1975 under the Home Rule City Act. The City is a municipal corporation
governed by an elected mayor and six-member governing council. The accompanying financial
statements present the government and its component units, for which the City is considered
financially accountable. Blended component units are, in substance, part of the primary
government's operations, even though they are legally separate entities. Thus, blended component
units are appropriately presented as funds of the primary government. Each discretely presented
component unit is reported in a separate column in the government-wide financial statements to
emphasize that it is legally separate from the government.
Blended component unit. The City is the sole owner of a non-profit, municipal hospital, Mary
Greeley Medical Center (hospital). A separately elected board of trustees governs the hospital's
daily operations. The powers of the trustees are established by City ordinance, which limits both
the separate legal standing and fiscal independence of the hospital. The hospital is reported as a
blended component unit (an enterprise fund) under Governmental Accounting Standards Board
(GASB) Statement No. 80, Blending Requirements for Certain Component Units. Financial
statements for the hospital are available at Mary Greeley Medical Center, 1111 Duff Avenue,
Ames, Iowa, 50010.
Discretely presented component unit. The Mary Greeley Medical Center Foundation (foundation)
is a legally separate component unit of the hospital. A majority of resources, and income thereon,
which the foundation holds and invests, are restricted to the activities of the hospital by the donors.
The foundation’s financial statements are available at Mary Greeley Medical Center, 1111 Duff
Avenue, Ames, Iowa, 50010.
1.3 Basis of presentation - government-wide financial statements
While separate government-wide and fund financial statements are presented, they are interrelated.
The governmental activities column incorporates data from governmental funds and certain
internal service funds, while business-type activities incorporate data from the government's
52
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
43
enterprise funds and the remaining portion of the internal service funds. Separate financial
statements are provided for governmental funds and proprietary funds.
As discussed earlier, the City has one discretely presented component unit. While it is not
considered a major component unit, it is nevertheless shown in a separate column in the
government-wide financial statements.
Generally, the effect of inter-fund activity has been eliminated from government-wide financial
statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are
reasonably equivalent in value to the inter-fund services provided and other charges between the
business-type functions and various other functions of the City. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
1.4 Basis of presentation - fund financial statements
The fund financial statements provide information about the government's funds. Separate
statements for each fund category – governmental and proprietary are presented. The emphasis of
fund financial statements is on major governmental and enterprise funds, each displayed in a
separate column. All remaining governmental and enterprise funds are aggregated and reported as
non-major funds. Major individual governmental and enterprise funds are reported as separate
columns in the fund financial statements.
The City reports the following major governmental funds:
The General Fund, the City's primary operating fund, accounts for all financial resources
of the general government, except those accounted for in another fund.
The Capital Projects Fund accounts for the acquisition and construction of the City's
capital facilities, other than those financed by proprietary funds.
The Debt Service Fund is used to account for the accumulation of resources that are
restricted, committed, or assigned for the payment of principal and interest on long-term
obligations of governmental funds.
The City reports the following major enterprise funds:
The Mary Greeley Medical Center Fund accounts for the operation of a municipally
owned, full-service medical care hospital.
The Electric Fund accounts for the operation of a municipally owned electric plant, which
generates and distributes electrical power to residents of the City and some contiguous
areas.
The Sewer Fund accounts for the activities related to the operation of a sanitary distribution
system and the sewer treatment plant.
53
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
44
The Water Fund accounts for the operation of the City-owned water plant, which provides
water services to residents of the City and some contiguous areas.
The City reports the following fiduciary fund:
The City Assessor accounts for the funds used to hold assets that will benefit the City
Assessor. These resources are not owned by the City and cannot be used to support any of
its programs. The City holds these assets until it is determined how and where these
resources should be appropriated/redistributed. These funds are not included in the
government-wide statements because the assets are not owned by the City and there is no
ongoing financial interest or responsibility.
Additionally, the City reports the following fund types:
Internal service funds account for the fleet services, information services, printing &
messenger, risk management, and health insurance for City employees. These services are
provided to other departments and agencies of the City on a cost-reimbursement basis.
During the course of operations, the government has activity between funds for various purposes.
Any residual balances outstanding at year-end are reported as due from/to other funds. While these
balances are reported in the fund financial statements, certain eliminations are made in the
preparation of the government-wide financial statements. Balances between the funds included in
governmental activities (i.e., the governmental and some internal service funds) are eliminated so
that only the net amount is included as internal balances in the governmental activity’s column.
Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds
and some internal service funds) are eliminated so that only the net amount is included as internal
balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In
the fund financial statements, these amounts are reported at gross amounts as transfers in/out.
While reported in the fund financial statements, certain eliminations are made in the preparation
of the government-wide financial statements. Transfers between the funds included in
governmental activities are eliminated so that only the net amount is included as a transfer in the
governmental activity’s column. Similarly, balances between the funds included in business-type
activities are eliminated so that only the net amount is included as a transfer in the business-type
activities column.
1.5 Measurement focus and basis of accounting
The accounting and financial reporting treatment is determined by the applicable measurement
focus and basis of accounting. Measurement focus indicates the type of resources being measured
such as current financial resources or economic resources. The basis of accounting indicates the
timing of transactions or events for recognition in the financial statements.
54
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
45
The government-wide and proprietary financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements, and the fiduciary fund statements. Revenues are 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 revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met.
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the City considers revenues available if they are collected within 60 days
of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences, and claims and judgments, are recorded only when payment is
due. General capital asset acquisitions are reported as expenditures in governmental funds.
Issuance of long-term debt and acquisitions under capital leases are reported as other financing
sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period. Only the portion of special assessments receivable within the current
fiscal period is considered revenue of the current fiscal period. Entitlements are recorded as
revenues when all eligibility requirements are met, including any time requirements, and the
amount is received during the period or within the availability period for this revenue source
(within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the
qualifying expenditures have been incurred, all other eligibility requirements have been met, and
the amount is received during the period or within the availability period for this revenue source
(within 60 days of year-end). All other revenue items are considered measurable and available
only when cash is received by the government.
1.6 Budgetary information
Budgetary basis of accounting
State law mandates that annual budgets for funds other than internal service funds be certified to
the County Auditor no later than April 30 preceding the fiscal year beginning July 1. The review
and adoption of an annual budget is handled in accordance with state laws, as there is no City
ordinance governing the budget process. Preliminary review of all operating budget requests is
conducted by the City Manager at a City government function level. A five-year capital
improvements plan is prepared annually, and the first-year portion of the plan is considered as the
capital improvements projects budget for the annual budget. The City Manager's budget,
considered as a plan of financial operation along with proposed sources of revenues, is presented
to the City Council at least six weeks prior to certification. The Council holds hearings with the
55
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
46
City Manager, Budget Officer, department heads, and boards and commissions, as well as the
public prior to adopting the budget.
Amendments to the budget are considered three times per year, only if revenue sources are
available (i.e., unanticipated revenues or budget surpluses). There can be no additional levy of
property taxes. The actual amendment process, as prescribed by state law, is identical to the
procedures followed for the original budget, including certification. The budgeted amounts
presented in the required supplementary information reflect the original and the revised budget.
Budgets are monitored throughout the fiscal year by function, especially by major classifications
such as personnel, capital, contractual, and commodities expenditures. Special revenue funds are
budgeted at the aggregate fund level. Monthly reports are prepared by function, and major
deviations by classification within a function must be approved by the City Manager. The legal
level of control (the level on which expenditures may not legally exceed appropriations) is the
function level for all budgeted funds in total. The budgetary comparison and related disclosures
are reported as required supplementary information.
The City prepares its budget on a basis consistent with accounting principles generally accepted
in the United States of America, except that the enterprise funds do not budget depreciation
expense and do budget for debt service expenditures and capital outlay. Internal service funds are
not budgeted.
Appropriations in all budgeted funds lapse at the end of the fiscal year, even if they have related
encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for
goods or services (i.e., purchase orders, contracts, and commitments).
Encumbrance accounting is utilized to the extent necessary to ensure effective budgetary control
and accountability and to facilitate effective cash planning and control. While all appropriations
and encumbrances lapse at year-end, valid outstanding encumbrances roll forward and become
part of the subsequent year's budget.
1.7 Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
Cash and cash equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and
short-term investments with original maturities of three months or less from the date of acquisition.
Investments
Investments of the City are reported at fair value (generally based on quoted market prices).
Inventories and prepaid items
56
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
47
Inventories are maintained on a perpetual basis. Materials, supplies, medical supplies, and drugs
are priced at an average cost. The cost of such inventories is recorded as expenditures/expenses
when consumed rather than when purchased. Real estate held for resale is priced at cost.
Certain payments to vendors reflect costs applicable to future accounting periods and show as
prepaid items in both the government-wide and fund financial statements. The cost of prepaid
items is recorded as expenditures/expenses when consumed rather than when purchased.
Capital assets
Capital assets, lease assets, and subscription assets, which include property, plant, equipment, right
to use lease assets, right to use subscription-based information technology assets, and
infrastructure assets (e.g., roads, traffic signals, bridges, and similar items), are reported in the
applicable governmental or business-type activities columns in the government-wide financial
statements. The City defines capital assets as assets with an initial, individual cost of more than
$5,000 and an estimated useful life in excess of one year. Right to use lease assets and subscription-
based assets are recognized at the lease commencement date and represent the City’s right to use
an underlying asset for the lease term. Right-to-use lease assets and subscriptions are measured at
the initial value of the lease liability plus any payments made to the lessor before commencement
of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right-
to-use lease assets are amortized over the shorter of the lease term or useful life of the underlying
asset using the same method amortizing the debt. The amortization period varies from 3 to 5 years.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities), the City chose to include all such items regardless of their acquisition
date or amount. The City was able to estimate the historical cost for the initial reporting of these
assets through back trending (i.e., estimating the current replacement cost of the infrastructure to
be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year
or estimated acquisition year). As the City constructs or acquires additional capital assets each
period, including infrastructure assets, they are capitalized and reported at historical cost. The
reported value excludes normal maintenance and repairs, which are essentially amounts spent in
relation to capital assets that do not increase the capacity or efficiency of the item or increase its
estimated useful life. Donated capital assets are recorded at acquisition value, which is the price
that would have been paid to acquire a capital asset with equivalent service potential.
Land, public art, and construction in progress are not depreciated. The other property, plant,
equipment, and infrastructure of the City are depreciated using the straight-line method over the
following estimated useful lives:
Capital Asset Class Life in Years
Buildings 25-45
Improvements 20-40
Machinery and Equipment 3-50
General Infrastructure 15-50
Plant and Distribution System 25-50
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Lease receivables
Lease receivables are recorded by the City of Ames as the present value of future lease payments
expected to be received from the lessee during the lease term, reduced by any provision for
estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the
lease as cash is received in the applicable reporting period. The present value of future lease
payments to be received are discounted based on the interest rate the City charges the lessee.
Deferred outflows/inflows of resources
In addition to assets, the statement of financial 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 assets that applies to future periods and is not
recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred
outflows of resources for unrecognized items not yet charged to pension and OPEB expense and
pension contributions from the employer after the measurement date but before the end of the
employer's reporting period. The City also reports deferred charges on refunding in this category,
which 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.
In addition to liabilities, the statement of financial position 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 assets that applies to future periods and is recognized
as an inflow of resources (revenue) until that time. The governmental funds report unavailable
revenues from property taxes, special assessments, charges for services, grants, licenses and
permits, and lease payments. The government-wide statement of net position reports unavailable
revenues from property taxes, changes resulting from assumptions made in the actuarial valuations
for pensions and OPEB. These amounts are recognized as an inflow of resources in the period that
the amounts become available. The City’s government-wide statements and proprietary funds
financial statements also include a deferred amount on refunding which results from the difference
in the carrying value of refunded debt and its reacquisition price. In addition, deferred inflows
related to leases where the City is the lessor is reported. The deferred inflows of resources related
to leases are recognized as an inflow of resources (revenue) over the term of the lease.
Pensions
For purposes of measuring the net pension liability (asset), deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Iowa Public Employees' Retirement System (IPERS) and Municipal
Fire and Police Retirement System of Iowa (MFPRSI) and additions to/deductions from
IPERS's/MFPRSI's fiduciary net position have been determined on the same basis as they are
reported by IPERS/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. The net pension liability (asset) attributable to the
governmental activities will be paid primarily by the General Fund.
58
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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49
Total other post-employment benefits (OPEB) liability
For purposes of measuring total OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information has been determined based
on the City's actuarial reports. For this purpose, benefit payments are recognized when due and
payable in accordance with the benefit terms. The total OPEB liability attributable to the
governmental activities will be paid primarily by the General Fund.
Long-term obligations
In the government wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources, while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
Net position flow assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted
bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as
restricted and unrestricted net position in the government-wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources are applied. It
is the City's policy to consider restricted net position to have been depleted before unrestricted net
position.
Fund balance flow assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the
governmental fund financial statements, a flow assumption must be made about the order in which
the resources are applied. It is the City's policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when the
components of unrestricted fund balance can be used for the same purpose, committed fund
balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied
last.
Fund balance policies
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. The City itself can establish
59
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50
limitations on the use of resources through either a commitment (committed fund balance) or an
assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the City's highest level of decision-making authority.
The City Council is the highest level of decision-making authority for the City that can, by
adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted,
the limitation imposed by the ordinance remains in place until a similar action is taken (the
adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the City for specific
purposes but do not meet the criteria to be classified as committed. The City Council has authorized
the Finance Director to assign fund balance through the approval of the annual budget. The City
Council may also assign fund balance as it does when appropriating fund balance to cover a gap
between estimated revenue and appropriations in the subsequent year's appropriated budget.
Unlike commitments, assignments generally only exist temporarily. In other words, an additional
action does not normally have to be taken for the removal of an assignment. Conversely, as
discussed above, an additional action is essential to either remove or revise a commitment.
1.8 Revenues and expenditures/expenses
Program revenues
Amounts reported as program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment; and 2) grants and contributions (including special assessments) that are restricted to
meeting the operational or capital requirements of a particular function or segment. All taxes,
including those dedicated for specific purposes, and other internally dedicated resources are
reported as general revenues rather than program revenues.
Property taxes
Property tax and tax increment financing receivables are recognized in these funds on the levy or
lien date, which is the date the tax asking is certified by the City to the County Board of
Supervisors. Delinquent property tax and tax increment financing receivables represent taxes
collected by the County but not remitted to the City at June 30, 2024 and unpaid taxes. The
succeeding year property tax and tax increment financing receivables 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 in April 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 tax and tax increment financing receivables have been recorded, the
related revenue is reported as a deferred inflow of resources in both the government-wide and fund
financial statements and will not be recognized as revenue until the year for which they are levied.
60
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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51
Net patient service revenue
Net patient service revenue of the hospital is reported at the estimated net realizable amounts from
patients, third-party payers, and others for services rendered. Retroactive adjustments under
reimbursement agreements with third-party payers are accrued on an estimated basis in the period
the related services are rendered and adjusted in future periods as final settlements are determined.
Net patient service revenue is reported net of provision for bad debts, which the hospital also refers
to as uncompensated care.
Compensated absences
The City's policy permits employees to accumulate earned but unused vacation and compensatory
time benefits, which are eligible for payment upon separation from government service. The
liability for such leave is reported as incurred in the government-wide and proprietary fund
financial statements. A liability for those amounts is recorded in the governmental funds only if
the liability has matured because of employee resignations or retirements. The liability for
compensated absences includes salary-related benefits, where applicable.
Sick leave. Accumulated sick leave in excess of 720 hours may be paid out at 25% of the
accumulated hours upon retirement only.
Proprietary funds operating and non-operating revenues and expenses
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues 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 revenues of the enterprise and internal service funds are charges to customers
for sales and services. Operating expenses for enterprise and internal service funds include the cost
of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
NOTE 2 – Reconciliation of government-wide and fund financial statements
2.1 Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net position
The governmental fund balance sheet includes a reconciliation between fund balance - total
governmental funds and net position of governmental activities as reported in the government-
wide statement of net position. One element of that reconciliation explains that "Capital assets
used in governmental activities are not financial resources and, therefore, are not reported in the
funds." The details of this $214,734,752 are as follows:
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52
Another element of that reconciliation explains, "Internal service funds are used by management
to charge the costs of fleet management, information services, risk management, and health
insurance to individual funds. The assets and liabilities of internal service funds are split between
the governmental and business-type activities in the statement of net position." The details of this
$26,719,473 are as follows:
2.2 Explanation of certain differences between the governmental fund statement of
revenues, expenditures, and changes in fund balances and the government-wide statement
of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances - total governmental funds and
changes in net position of governmental activities as reported in the government-wide statement
of activities. One element of that reconciliation states that, "The internal service funds are used
by management to charge the costs of fleet management, information services, risk management,
and health insurance to individual funds. The net revenue of certain activities of internal service
funds is reported with both governmental and business-type activities." The details of this
$4,307,308 are as follows:
Land 17,284,601$
Public art collection 640,326
Construction in progress 15,377,533
Buildings 34,654,567
Less: accumulated depreciation (13,571,733)
Lease assets 169,167
Less: amortization (64,953)
Subscription-based IT assets 296,010
Less: amortization (84,210)
Equipment 13,450,558
Less: accumulated depreciation (9,505,110)
Infrastructure 330,876,617
Less: accumulated depreciation (174,788,621)
Net adjustment to increase fund balance - total governmental funds
to arrive at net position in governmental activities 214,734,752$
Net position of the internal service funds 39,770,118$
Less: Internal payable representing charges in excess of cost to
business-type activities - prior years (12,569,857)
Less: Internal payable representing charges in excess of cost to
business-type activities - current year (480,788)
26,719,473$
62
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
53
NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
3.1 Violations of legal or contractual provisions
Except for disbursements exceeding the amounts budgeted on the debt service function, there were
no budgetary violations that occurred in the fiscal year ended June 30, 2025.
NOTE 4 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS
4.1 Cash deposits with financial institutions
Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank
failure, the City's deposits may not be returned to it. The City does not have a deposit policy for
custodial credit risk. As of June 30, 2024, the City's deposits were entirely covered by federal
depository insurance or collateralized in accordance with Chapter 12c of the Code of Iowa. This
chapter provides for additional assessments against the depositories to ensure there will be no loss
of public funds. The amount of pledged collateral is based on an approved method for non-interest-
bearing deposits and the actual current balance for interest-bearing deposits. Depositories using
this method report the adequacy of their pooled collateral covering uninsured deposits to the State
Treasurer, who does not confirm the information with the City. Because of the inability to measure
the exact amounts of collateral pledged for the City under this method, the potential exists for
under collateralization, and this risk may increase in periods of high cash flows. However, the
State Treasurer enforces strict standards of financial stability for each depository that collateralizes
public deposits.
4.2 Investments
The following table identifies the investment types that are authorized for the City by its
investment policy. The hospital is guided in the selection of security investments by Chapters 12b
and 12c of the Code of Iowa and policy, as approved by the board of trustees. The City's investment
policy classifies certificates of deposit (CDs) as investments and all CDs purchased by the City
are non-negotiable. However, under generally accepted accounting principles (GAAP), non-
negotiable CDs are cash deposits instead of investments. The table also identifies certain
provisions of the investment policy that address interest rate risk, credit risk, and concentration of
credit risk.
Change in net position of the internal service funds 4,788,096$
Less: gain from charges to business-type activities (480,788)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities 4,307,308$
63
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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54
The City categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs. All the City's investments are valued using level 1 inputs, except
for U.S. Agencies and U.S. Treasuries, which are valued by the custodians of the securities using
pricing models based on credit quality, time to maturity, stated interest rates, and market-rate
assumptions (level 2 inputs). There have been no changes in valuation methodologies at June 30,
2024, compared to June 30, 2023.
Interest rate risk. One of the ways that the City manages exposure to interest rate risk is by
purchasing a combination of short- and long-term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing, or coming close to maturity, evenly over
time as necessary to provide the cash flow and liquidity needed for operations. Investments are
purchased with the intent to hold until maturity.
The following provides information about the sensitivity of the fair values of the City’s
investments to market interest rate fluctuations:
Maximum Maximum
Maturity for Maturity for
Operating Non-Operating Maximum Maximum
Funds Funds Percentage Investment
Authorized Investment Type (Days)(Years)of Portfolio in One Issuer
U.S. Agency securities 397 7 n/a n/a
Certificates of deposit 397 7 n/a n/a
Prime banker's acceptances 270 270 days 10%5%
Commercial paper 270 270 days 10%5%
Repurchase agreements 397 7 n/a n/a
Joint investment trusts 397 7 n/a n/a
drainage district 397 7 n/a n/a
U.S. Treasury obligations 17 years n/a n/a n/a
Corporate debt securities n/a 30 n/a 5%
Investment Type Fair Value Maturity
U.S. Agency coupon securities 120,939,527$ 07/15/24-08/05/30
U.S. Treasury obligations 67,885,468 08/15/24-05/15/34
Commercial paper 16,830,601 07/01/24-10/28/24
Municipal bonds -
Mutual funds 389,492,884 n/a
Corporate debt 733,200 05/15/25-02/20/34
595,881,680$
64
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
55
Credit risk. The City will minimize credit risk by using the following measures:
1. Limiting investments to those authorized by the investment policy,
2. Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with
whom the City will do business,
3. Diversifying the investment portfolio by agency and issuer so that potential losses on
individual securities can be minimized, and
4. Holding a minimum of 5% of the total portfolio in highly marketable, short-term
treasuries, checking accounts with interest, government pooled accounts, or a
combination of all three.
The following shows the actual ratings as of June 30, 2024, for each investment type:
Concentration of credit risk. The City's investment policy provides limitations on the amount that
can be invested in any one issuer, which is approved by City Council. Investments in any one
issuer that represent 5% or more of total City investments are as follows:
12 Months 13 - 24 25-60 More Than
Investment Type Fair Value or Less Months Months 60 Months
U.S. Agency coupon securities 120,939,527$ 64,194,961$ 41,235,491$ 15,468,745$ 40,330$
U.S. Treasury obligations 67,885,468 32,350,082 22,365,102 13,155,363 14,921
Commercial paper 16,830,601 16,830,601 - - -
Mutual funds 389,492,884 389,492,884 - - -
Corporate debt 733,200 24,507 87,269 233,670 387,754
595,881,680$ 502,893,035$ 63,687,862$ 28,857,778$ 443,005$
Remaining Maturity
Investment Type Fair Value Rating
U.S. Agency coupon securities 120,939,527$ AAA
U.S. Treasury obligations 67,885,468 not rated
Commercial paper 16,830,601 A1/P1
Mutual funds 389,492,884 not rated
Corporate debt 733,200 AA1-BAA
595,881,680$
Percent of
Issuer Investment Type Amount Portfolio
Federal Home Loan Bank U.S. agency securities 66,291,070$ 11.12%
United States Treasury U.S. treasuries 67,885,468 11.39%
65
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
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Custodial credit risk - investments. For an investment, this 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 following outlines the requirements in
the City's investment policy to limit the exposure to custodial credit risk for deposits or
investments:
1. All trades, where applicable, will be executed by delivery vs. payment (DVP) to ensure
that securities are deposited in an eligible financial institution prior to the release of
funds. Securities will be held by a third-party custodian as evidenced by safekeeping
receipts,
2. City investment officials shall be bonded to protect loss of public funds against possible
embezzlement and/or malfeasance, and
3. The Investment Officer is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft, or
misuse. The internal controls shall address the following points:
a. Control of collusion,
b. Separation of transaction authority from accounting and record keeping,
c. Custodial safekeeping,
d. Delivery versus payment,
e. Clear delegation of authority, and
f. Confirmation of transactions for investments and wire transfers.
As of June 30, 2024, the City’s investments in the following were held by the same third-party
custodian that was used by the City to buy the securities and evidenced by safekeeping receipts:
Foreign currency risk. Foreign currency risk is the risk that changes in exchange rates will
adversely affect the fair value of an investment or deposit. As of June 30, 2024, the City had no
exposure to foreign currency rate risk, nor did the Medical Center as dollar denominated,
international mutual funds (15.1% of the total investment portfolio) are not subject to such risk
pursuant to guidance in GASB 40.
Percent of
Issuer Investment Type Amount Portfolio
Federal National Mortgage Association U.S. agency securities 14,316,788$ 2.40%
Federal Home Loan Mortgage Co.U.S. agency securities 15,277,711 2.56%
Federal Home Loan Bank U.S. agency securities 66,291,070 11.12%
Federal Farm Credit U.S. agency securities 25,103,958 4.21%
United States Treasury U.S. treasuries 67,885,468 11.39%
66
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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57
The City has a written investment policy, approved by the City Council, which addresses the
different areas of risk. The policy is available for review in the offices of the City Clerk and the
City Treasurer, and on the City's website.
4.3 Foundation investments
The foundation follows Financial Accounting Standards Board (FASB) standards. As such,
adoption of Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit
and Investment Risk Disclosures, was not required by the foundation and, accordingly, no such
disclosures are presented here.
All of the foundation's investments are valued using level 1 inputs. The following is a detail of the
foundation's investments at June 30, 2024:
4.4 Receivables
All utility and hospital accounts receivable are shown net of an allowance for uncollectible
accounts. Significant allowances for uncollectible accounts as of June 30, 2024 included
approximately $9,400,000 related to the Mary Greeley Medical Center. Property tax receivable is
shown at a gross amount since they are assessed to the property and collectible upon sale of the
property.
Investment Type Fair Value
Equity mutual funds 13,583,345$
Bond mutual funds 4,249,818
17,833,163$
67
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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58
4.5 Capital assets
Capital asset activity for the fiscal year ended June 30, 2024, is as follows:
Depreciation/Amortization expense was charged to functions of the governmental activities of the
primary government as follows:
Balance Balance
Governmental activities:June 30, 2023 Increases Decreases June 30, 2024
Non-depreciable capital assets:
Land 16,137,769$ 1,146,832$ -$ 17,284,601$
Public art collection 632,826 7,500 - 640,326
Construction in progress 31,322,112 9,338,371 (25,282,950) 15,377,533
Total non-depreciable capital
assets 48,092,707 10,492,703 (25,282,950) 33,302,460
Depreciable/amortizable capital assets:
Buildings 35,801,697 7,502 (6,000) 35,803,199
Lease assets 27,214 141,953 - 169,167
Subscription-based IT assets 797,240 - - 797,240
Equipment 36,181,628 4,013,413 (1,904,776) 38,290,265
Infrastructure 294,227,663 37,166,532 (325,145) 331,069,050
367,035,442 41,329,400 (2,235,921) 406,128,921
Less accumulated depreciation/amortization:
Buildings 13,498,778 928,544 (3,600) 14,423,722
Lease assets 10,948 54,005 - 64,953
Subscription-based IT assets 213,209 198,614 - 411,823
Equipment 21,694,877 2,798,038 (1,757,648) 22,735,267
Infrastructure 165,226,897 10,069,702 (315,545) 174,981,054
200,644,709 14,048,903 (2,076,793) 212,616,819
Total depreciable/amortizable capital assets 166,390,733 27,280,497 (159,128) 193,512,102
Total capital assets 214,483,440$ 37,773,200$ (25,442,078)$ 226,814,562$
General government 609,113$
Public safety 777,535
Public works 10,032,332
Culture and recreation 2,623,341
Community and economic development 6,582
Total depreciation/amortization expense - governmental activities 14,048,903$
68
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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59
4.6 Pension obligations
The City participates in two public pension systems, Iowa Public Employees Retirement System
(IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). The following sections
outline the pension-related disclosures for each plan. The aggregate amount of recognized expense for
the period associated with the net pension liability for both plans is $8,708,720. Other aggregate
amounts related to pension are separately displayed in the financial statements.
The City’s total pension liability is a liability as of June 30, 2024. However, when allocated to
individual funds, the city has reported both net pension liabilities and net pension assets.
Iowa Public Employees Retirement System (IPERS)
Plan description. The City participates in IPERS, a cost sharing, multiple-employer, defined benefit
pension plan administered by the State of Iowa. IPERS provides retirement, disability, and death
benefits to eligible members and beneficiaries. State statutes authorize the State to establish and amend
Balance Balance
Business-type activities:June 30, 2023 Increases Decreases June 30, 2024
Non-depreciable capital assets:
Land 17,030,519$ 1,036,989$ (1,950,858)$ 16,116,650$
Construction in progress 37,217,579 27,532,199 (31,084,827) 33,664,951
Total non-depreciable capital
assets 54,248,098 28,569,188 (33,035,685) 49,781,601
Depreciable/amortizable capital assets:
Plant and distribution systems 470,465,425 10,616,389 (67,206) 481,014,608
Buildings 299,570,404 17,094,132 (1,548,591) 315,115,945
Lease assets 2,424,925 708,664 (193,151) 2,940,438
Subscription-based IT assets 1,887,013 1,342,221 (7,892) 3,221,342
Equipment 169,709,825 5,362,915 (7,182,902) 167,889,838
Improvements 21,869,547 7,068,984 - 28,938,531
965,927,139 42,193,305 (8,999,742) 999,120,702
Less accumulated depreciation/amortization:
Plant and distribution systems 232,980,888 10,560,700 (67,207) 243,474,381
Buildings 145,018,382 11,419,040 (1,533,409) 154,904,013
Lease assets 1,139,792 628,449 (178,305) 1,589,936
Subscription-based IT assets 470,529 694,029 (7,892) 1,156,666
Equipment 128,689,312 8,821,964 (6,709,067) 130,802,209
Improvements 11,883,801 905,470 - 12,789,271
520,182,704 33,029,652 (8,495,880) 544,716,476
Total depreciable/amortizable capital assets 445,744,435 9,163,653 (503,862) 454,404,226
Total capital assets 499,992,533$ 37,732,841$ (33,539,547)$ 504,185,827$
69
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
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all plan provisions. The State issues a publicly available financial report, which includes financial
statements and required supplementary information. This may be obtained either at www.ipers.org or
by written request to IPERS, P.O. Box 9117, Des Moines, IA, 50306-9117.
Funding policy. Iowa state law requires participating employers and members to contribute to IPERS.
The Iowa Legislature and the Governor determine the positions of employment in each membership
class and the benefits provided. Most members (95%) are regular members. The other 5% are special
service members who work in public safety jobs.
IPERS sets the regular member contribution rates using an annual actuarial valuation, which is a
snapshot of IPERS's finances; however, the combined employer and member rate may not change by
more than 1.0 percentage point each year. Rates for special service members are actuarially determined
each year.
During the fiscal year ended June 30, 2024, regular members contributed 6.29% and the City
contributed 9.44% of covered wages. Rates for the fiscal year beginning July 1, 2024, are the same.
Emergency responder members contributed 6.21%, and the hospital contributed 9.31% of covered
wages for the fiscal year ended June 30, 2024. Rates for the fiscal year beginning July 1, 2024, are the
same. The City's total contributions to IPERS for the years ended June 30, 2024, 2023, and 2022 were
$11,525,155, $11,205,032, and $10,223,542, respectively, and were equal to 100% of the required
contributions for each year.
Pension liabilities, pension expense (income), and deferred outflows of resources and deferred inflows
of resources related to pensions. At June 30, 2024, the City reported a liability of $59,638,185, of
which $43,071,165 is Mary Greeley Medical Center’s proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2023, 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 employers
participating in IPERS, actuarially determined. At June 30, 2023, the City's proportion was 1.3213%,
which is an increase of 0.0155% from its proportion measured as of June 30, 2022.
For the year ended June 30, 2024, the City recognized pension expense of $6,604,214. At June 30,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
70
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
61
$11,525,155 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (asset) in the year ended June 30, 2025. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized
in pension expense (income) as follows:
There were no non-employer contributing entities at IPERS.
Actuarial assumptions. The total pension liability in the June 30, 2023 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation rate 2.60% per annum
Payroll increase assumption 3.25%
Projected salary increases 3.25%-16.25%, depending upon years of
service
Assumed investment return 7.00%, per annum, compounded annually, net of
investment expense, including inflation
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience 5,370,165$ 246,535$
Changes in assumptions - 91,293
Net difference between projected and actual
earnings on pension plan investments 5,657,883 -
Changes in proportion and differences between
City contributions and proportionate share of
contributions 5,042,941 1,006,665
City contributions subsequent to the measurement
date 11,525,155 -
27,596,144$ 1,344,493$
Year Ending
June 30,
2025 (197,263)$
2026 (3,504,841)
2027 14,869,060
2028 3,104,949
2029 454,591
14,726,496$
71
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
62
The actuarial assumptions used in the June 30, 2023, valuations are based on the results of the
quadrennial experience study from 2022. This study included information on mortality, retirement,
disability, and termination rates for the period of July 1, 2017 through June 30, 2021.
Mortality rates were based on PubG-2010 mortality tables with future mortality improvements
modeled using scale MP-2021.
Several factors are considered in evaluating the actuarial assumed investment return, including
long-term historical data, estimates inherent in current market data, along with estimates of
variability and correlations for each asset class, and an analysis in which best-estimate ranges of
expected future real rates of return (expected returns, net of investment expense and inflation) were
developed by the investment consultant. These ranges were combined to develop the actuarial
assumed investment return by weighting the expected future real rates of return by the target asset
allocation percentage and then adding expected inflation. The actuarial assumed investment return
reflects the anticipated returns on current and future plan assets and provides a discount rate to
determine the present value of future benefit payments. The target allocation and best estimates of
arithmetic real rates of return for each major asset class as of June 30, 2024, are summarized in the
following table:
Discount rate. The discount rate used to calculate the total pension liability is 7.00%. The
projection of cash flows used to determine the discount rate assumed that contributions from
employees and employers will be made at the contractually required rates, which are set by the
Contribution Rate Funding Policy and derived from the actuarial valuation. Based on those
assumptions, the pension plan's fiduciary net position is projected to be available to make all
projected future benefit payments of current plan members. Therefore, the actuarial assumed
investment return 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 7.00%, as well as what the City's proportionate share of the net pension
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 21.0%4.56%
International equity 16.5 6.22
Global smart beta equity 5.0 5.22
Core-plus fixed income 23.0 2.69
Public credit 3.0 4.38
Cash 1.0 1.59
Private equity 17.0 10.44
Private real assets 9.0 3.88
Private credit 4.5 4.60
100.0%
72
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
63
liability would be if it were calculated using a discount rate that is one percentage point lower
(6.00%) or one percentage point higher (8.00%) than the current rate:
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 is available on the
IPERS website at www.ipers.org.
Payables to the pension plan. At June 30, 2024, the City reported a payable to the defined benefit
pension plan of $2,078,240 for legally required employer contributions and employee
contributions that were withheld from employee wages but not yet remitted to IPERS.
Municipal Fire and Police Retirement System of Iowa (MFPRSI)
Plan description. The City also participates in the MFPRSI, which provides retirement, disability,
and death benefits for firefighters and police officers. MFPRSI was created under Chapter 411 of
the Code of Iowa, effective January 1, 1992, to replace the fire and police retirement systems in
87 local systems in 49 of Iowa’s largest cities. It is a cost-sharing, multiple-employer defined
benefit pension plan. A board of nine voting and four non-voting members is the policy-making
body for the system. MFPRSI issues publicly available financial reports, which include financial
statements and required supplementary information for the plan. The reports may be obtained by
contacting MFPRSI at 7155 Lake Drive, Suite 201, West Des Moines, IA, 50266.
Funding policy. The contribution rate structure is established by Chapter 411 of the Code of Iowa.
The member contribution rate, currently at 9.40%, is set by state statute. The rate for the City is
established each year by the board of trustees following the completion of an annual actuarial
valuation. The City's rate for the fiscal year ended June 30, 2024, was 22.98%. The City's total
contributions to MFPRSI for the years ended June 30, 2024, 2023, and 2022 were $2,148,157,
$2,197,536, and $2,268,424, respectively, and were equal to 100 percent of the required
contributions for each year.
If approved by the state legislature, state appropriation may further reduce the employer's
contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable
compensation. The State of Iowa, therefore, is considered a non-employer contributing entity in
accordance with the provisions of GASB Statement No. 67 - Financial Reporting for Pension
Plans.
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2024.
Current
Discount
1% Decrease Rate 1% Increase
(6.0%)(7.0%)(8.0%)
City's proportionate share of
the net pension liability 128,392,181$ 59,638,185$ 2,020,677$
73
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
64
Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of
resources related to pensions. At June 30, 2024, the City reported a liability of $15,880,608 for its
proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2023, 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 relative to the contributions of all MFPRSI
participating employers. At June 30, 2023, the City's proportion was 2.5360%, which is a decrease
of 0.0298% from its proportion measured as of June 30, 2022.
For the year ended June 30, 2024, the City recognized pension expense of $2,104,506. At June 30,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
$2,148,157 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (asset) in the year ending June 30, 2025. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense (income) as follows:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience 1,213,301$ -$
Changes in assumptions 80,002 1
Net difference between projected and actual
earnings on pension plan investments 1,011,195 -
Changes in proportion and differences between
City contributions and proportionate share of
contributions 19,773 537,431
City contributions subsequent to the measurement
date 2,148,157 -
4,472,428$ 537,432$
Year Ending
June 30,
2025 ($30,942)
2026 (754,181)
2027 2,191,216
2028 366,618
2029 14,128
$1,786,839
74
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
65
Actuarial assumptions. The total pension liability in the June 30, 2023 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 3.00% per annum
Rate of salary increases 3.75 to 15.11%, including inflation
Investment rate of return
7.50%, net of investment expense,
including inflation
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an
actuarial experience study for the 10-year period ending June 30, 2022. There were no significant
changes of benefit terms.
Mortality rates were based on RP 2014 Blue Collar Healthy Annuitant table with males set forward
zero years, females set forward two years, and disabled persons set forward three years (male only
rates), with generational projection of future mortality improvement with 50% of Scale BB
beginning in 2017.
The investment policy and decisions are governed by the board of trustees. 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. Best
estimates of geometric real rates of return for each major asset class included in the pension plan's
target asset allocations are summarized in the following table:
Long-Term Expected
Real Rate of Return
Broad fixed income 4.9%
Broad U.S. equity 7.1
Global equity 7.2
Broad non-US equity 7.4
Managed futures 5.2
Core real estate 6.8
Opportunistic real estate 11.1
Global infrastructure 6.9
Private credit 10.1
Private equity 12.1
Asset Class
75
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
66
Discount rate. The discount rate used to measure the total pension liability was 7.50%. The
projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that City contributions will be made
at rates equal to the difference between actuarially determined contribution rates and the member
rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be
available to make all 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.
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%, 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 one percentage point lower
(6.50%) or one percentage point higher (8.50%) that the current rate:
Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net
position is available in the separately issued MFPRSI financial report, which is available on the
MFPRSI website at www.mfprsi.org.
Payables to the pension plan. At June 30, 2024, the City did not have a payable to the defined
benefit pension plan.
Ames Municipal Utility Retirement Plan
Plan description. The Ames Municipal Retirement Plan (utility plan) was created by resolution of
the City Council and is administered by the City. It is a single-employer, defined contribution plan
for employees who regularly receive more than 10% of their compensation from a utility fund of
the City. The City Council has authorization to amend plan provisions and contribution rates. An
eleven-member board monitors, reviews, and evaluates on a continuing basis, the performance of
the utility plan. The board submits a written report of its findings and recommendations at least
once each fiscal year. These reports may be obtained at the City's offices.
Summary of significant accounting policies - basis of accounting and valuation of investments.
The utility plan uses the accrual basis of accounting. Plan member contributions are recognized in
the period in which the contributions are due. The City's contributions are recognized when due
and a formal commitment to provide the contributions has been made. Benefits and refunds are
recognized when due and payable in accordance with terms of the plan. All plan investments are
Current
Discount
1% Decrease Rate 1% Increase
(6.5%)(7.5%)(8.5%)
City's proportionate share of
the net pension liability 27,812,171$ 15,880,608$ 6,003,615$
76
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
67
reported at fair value. Securities traded on a national exchange are valued at the last reported sales
price. Securities without an established market value are reported at estimated fair value.
Funding policy. Participants contribute 5.40%, and the City contributes 7.93% of eligible
compensation. Participants may also make voluntary, unmatched contributions up to 25% of the
participant's annual compensation. Participant contributions were $311,901, and City contributions
were $458,032 for the fiscal year ended June 30, 2024.
4.7 Other post-employment benefit (OPEB) obligations
The City participates in two OPEB plans, the City's OPEB plan and the hospital's OPEB plan. The
following sections outline the OPEB-related disclosures for each plan. The aggregate amount of
recognized OPEB expense for the period associated with the total OPEB liability for both plans is
$376,296. Other aggregate amounts related to OPEB are separately displayed in the financial
statements.
City's OPEB Plan
General Information about the OPEB Plan
Plan description. The City provides health and dental care benefits for retired employees and their
beneficiaries through a single-employer, defined benefit plan. The City has the authority to
establish and amend benefit provisions of the plan. No assets are accumulated in a trust that meets
the criteria in paragraph 4 of Statement 75. The plan does not issue a stand-alone financial report.
Participants must be at least 55 years old, have been employed by the City for the preceding four
years, and be enrolled in a sponsored insurance plan at the time of retirement. Benefits terminate
upon attaining Medicare eligibility. Retirees under age 65 pay the same premium for the medical,
prescription drug, and dental benefits as active employees, which results in an implicit rate subsidy
and an OPEB liability.
The contribution requirements of the City are established and may be amended by the City. Plan
members are currently not required to contribute. The City funds on a pay-as-you-go basis.
Employees covered by benefit terms. At June 30, 2024, the following employees were covered by
the City's benefit terms:
Inactive employees or beneficiaries currently receiving
benefit payments 20
Active employees 601
621
77
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
68
Total OPEB Liability
The City's total OPEB liability of $5,232,291 was measured as of June 30, 2024 and was
determined by an actuarial valuation as June 30, 2023.
Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2024 actuarial
valuation was determined using the following actuarial assumptions and other inputs, applied to
all periods included in the measurement, unless otherwise specified:
Salary increases 3.25% per annum
Discount rate 3.93% per annum
Retirees share of benefit-related 100% of projected health insurance premiums
The following annual health care cost trends are applied on a select and ultimate basis. Select
trends are reduced 0.30% each year through 2033, and 0.10% thereafter until reaching the ultimate
trend rate.
Expense Type Select Ultimate
Pre-Medicare Medical and Rx Benefits 7.75% 4.00%
Medicare Benefits 6.75% 4.00%
Stop Loss Fees 7.75% 4.00%
Administrative Fees 4.00% 4.00%
The discount rate was based on the Bond Buyer 20-Year Bond GO index.
Mortality rates were based on the Pub-2010 mortality table with generational scale MP-2021.
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an
actuarial experience study for the period July 1, 2021 to June 30, 2022.
Changes in the Total OPEB Liability
Balance, beginning of year 2,960,490$
Changes for year:
Service cost 195,071
Interest 109,999
Differences between expected and
actual experience 2,017,659
Changes in assumptions or other inputs 232,831
Benefit payments (283,759)
Net changes 2,271,801
Balance, end of year 5,232,291$
78
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
69
Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the
total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower (2.93 percent) or one percentage
point higher (4.93 percent) than the current discount rate:
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following
presents the total OPEB liability to the City, as well as what the City's total OPEB liability would
be if it were calculated using healthcare cost trend rates that are one percentage point lower or one
percentage point higher than the current healthcare cost trend rates:
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $602,000. At June
30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Discount
1% Decrease Rate 1% Increase
(2.93%)(3.93%)(4.93%)
Total OPEB liability 5,781,000$ 5,233,000$ 4,745,000$
Healthcare Cost
1% Decrease (6.75%Trend Rates (7.75%1% Increase (8.75%
Decreasing to 3.0%)Decreasing to 4.0%)Decreasing to 5.0%)
Total OPEB liability 4,564,000$ 5,233,000$ 6,039,000$
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between actual and expected experience 2,105,843$ 222,777$
Changes of assumptions or other inputs 696,366 124,127
2,802,209$ 346,904$
79
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
70
Hospital's OPEB plan
General Information about the OPEB Plan
Plan description. The hospital sponsors a single-employer health care plan that provides self-
insured medical and prescription drugs to all active and retired employees and their eligible
dependents. The hospital also provides a flat $2,500 life insurance benefit to retired employees.
Employees must be a minimum of 55 years old, have been employed at the hospital for the
preceding four years, and currently have hospital health insurance at the time of retirement.
Benefits terminate upon attaining Medicare eligibility. Eligible retirees receive health care
coverage through one medical plan. This is the same plan that is available for active employees.
Contributions are required for both retiree and dependent coverage. The retiree contributions are
based on the historical full cost of active members. Retiree expenses are then offset by monthly
contributions.
Funding policy. The hospital, with assistance from the third-party administrator, establishes and
amends contribution requirements for both active and retiree members on an annual basis. The
current funding policy of the hospital is to pay health claims as they occur. This arrangement does
not qualify as OPEB plan assets under GASB for current GASB reporting.
The required contribution is based on projected pay-as-you-go financing. For the fiscal year ended
June 30, 2024, the hospital contributed approximately $715,000. Retirees receiving benefits
contributed approximately $381,000 through their required contributions. Inactive members
receiving benefits contributed through their required monthly contributions of:
Employees covered by benefit terms. At June 30, 2024, the following employees were covered by
the benefit terms:
Year ended June 30:
2025 297,312$
2026 297,312
2027 297,312
2028 297,312
2029 297,312
Thereafter 968,745
2,455,305$
Employee 724$
Employee + spouse 1,446
Employee + children 1,328
Family 2,202
80
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
71
Total OPEB Liability
The hospital's total OPEB liability of $4,178,041 was measured as of January 1, 2024 and was
determined by an actuarial valuation as of that date.
Actuarial assumptions and other inputs. The total OPEB liability in the actuarial valuation was
determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 3.00% per annum (effective January 1, 2024)
Salary increases 4.80% for less than 1 year of service, 3.80% for 5 years of
service, 3.00% for 10 years of service, 2.50% for 15 years
of service, and 2.00% for over 20 years of service
Discount rate 4.00% (effective January 1, 2024)
Health care cost trend rates 8.00% for medical and prescription benefits for 2024,
decreasing 0.50% per year to an ultimate rate of 4.5% for
2031 and later years (effective January 1, 2024)
The discount rate was based on the 20-year Bond Buyer GO index.
Mortality rates were based on the Pub-2010 Headcount-weighted Total Dataset Mortality Table
fully generational using Scale MP-2021 for general employees and Pub-2010 Headcount-weighted
Contingent Survivor Mortality Table fully generational using Scale MO-2021 for surviving
spouses. It is assumed that 45% of active employees with current coverage are assumed to continue
coverage at retirement and no active employees without coverage are assumed to elect coverage
at retirement.
The actuarial assumptions used in the January 1, 2024 valuations were based on the results of an
actuarial experience study for the period June 2012 through June 2018.
Inactive employees or beneficiaries currently receiving
benefit payments 419
Active employees 1,307
1,726
81
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
72
Changes in the Total OPEB Liability
Effect of assumptions changes and inputs for the year ended June 30, 2024, reflect a change in the
inflation rate from 2.00% to 3.00% and a change in the discount rate from 4.31% to 4.00%.
Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the
total OPEB liability of the hospital, as well as what the hospital's total OPEB liability would be if
it were calculated using a discount rate that is one percentage point lower (3.00%) or one
percentage point higher (5.00%) than the current discount rate:
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following
presents the total OPEB liability to the hospital, as well as what the hospital's total OPEB liability
would be if it were calculated using healthcare cost trend rates that are one percentage point lower
(7.00% decreasing to 3.50%) or one percentage point higher (9.00% decreasing to 5.50%) than the
current healthcare cost trend rates:
Balance, beginning of year 3,989,678$
Service cost 192,131
Interest 176,573
Differences between expected and
actual experience (339,409)
Changes in assumptions or other inputs 330,835
Benefit payments (171,767)
Net changes 188,363
Balance, end of year 4,178,041$
Discount
1% Decrease Rate 1% Increase
(3.00%)(4.00%)(5.00%)
Total OPEB liability 4,583,930$ 4,178,041$ 3,967,229$
Healthcare
Cost Trend
1% Decrease Rates 1% Increase
(7.0%(8.0%(9.0%
Decreasing Decreasing Decreasing
to 3.5%)to 4.5%)to 5.5%)
Total OPEB liability 3,936,732$ 4,178,041$ 4,620,069$
82
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
73
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the fiscal year ended June 30, 2024, the hospital recognized OPEB expense of ($225,704). At
June 30, 2024, the hospital reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
The amount of $232,050 reported as deferred outflows of resources resulting from hospital
contributions subsequent to the measurement date will be recognized in the net OPEB liability in
the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
4.8 Construction and other significant commitments
Construction commitments. As of June 30, 2024, the City's commitments with contractors were:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience -$ 197,230$
Changes of assumptions or other inputs 220,557 258,968
Contributions made subsequent to measurement date 232,050 -
Total 452,607$ 456,198$
Year ended June 30:
2025 (232,784)$
2026 (2,857)
Thereafter -
(235,641)$
Spent Remaining
Project to Date Commitment
Streets & bridges 7,999,947$ 8,535,035$
Parks 1,696,900 15,447,303
Electric 2,316,439 4,087,390
Water 6,900,161 5,554,557
Sewer 6,183,618 1,855,933
Stormwater 352,751 303,491
Transit 1,003,729 217,760
Airport 657,503 594,202
Traffic signal 1,473,941 1,030,269
Facilities 109,498 5,755
28,694,487$ 37,631,695$
83
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
74
All of the remaining commitment amounts above were encumbered at year-end. As discussed
earlier in Note 1 Budgetary Information - budgetary basis of accounting, the encumbrances and
related appropriations lapse at the end of the year but are re-appropriated and become part of the
subsequent year's budget because performance under the executory contract is expected in the next
year.
Encumbrances. Budgetary basis of accounting, encumbrance accounting is utilized to the extent
necessary to ensure effective budgetary control and accountability and to facilitate effective cash
planning and control.
At year-end, the amount of encumbrances expected to be honored upon performance by the vendor
in the next year was as follows:
4.9 Risk management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City uses the risk
management internal service fund to account for and finance risks for workers' compensation,
general liability, and property damage. The risk management fund provides workers' compensation
coverage for all City employees and funds the deductible for general liability insurance.
Commercial insurance is purchased for all other risks of loss.
Risk management fund. All funds of the City participate in the workers' compensation insurance
program and make payments to the risk management fund based on a charge against employee
payroll. The charge is calculated based on past claims experience of City departments. The risk
management fund pays all workers' compensation claims, claim reserves, the deductible for
general liability insurance, and administrative costs from its revenues, and holds excess revenues
for reserve against future claims.
The City is a member of the Iowa Communities Assurance Pool (ICAP), as allowed by the Code
of Iowa. ICAP is a local government, risk-sharing pool whose members include various
governmental entities throughout the state of Iowa. It was formed for the purpose of managing and
funding third-party liability claims against its members. It provides coverage and protection in the
following categories: general liability, automobile liability, automobile physical damage, public
officials' liability, police professional liability, property, inland marine, and boiler/machinery.
There have been no reductions in insurance coverage from prior years.
General fund 2,302,952$
Capital projects fund 32,378,897
Non-major governmental funds 3,535,259
Electric 7,296,667
Water 6,516,764
Sewer 1,887,424
Non-major business-type funds 7,819,312
61,737,275$
84
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
75
ICAP's intergovernmental contract with its members provides that in the event a casualty claim or
series of claims exceeds the amount of risk-sharing protection provided by the member's risk-
sharing certificate, or in the event that a series of casualty claims exhausts total members' equity
plus any reinsurance and any excess risk-sharing recoveries, then payment of such claims shall be
the obligation of the respective individual member. As of June 30, 2024, settled claims have not
exceeded the risk pool or reinsurance coverage since the pool's inception.
The City also carries commercial insurance purchased from other insurers for property (buildings
and content) and boiler and machinery coverage. The City assumes liability for any deductibles
and claims in excess of coverage limitations. Settled claims resulting from these risks have not
exceeded commercial insurance coverage in any of the past three fiscal years.
Changes in balance of claims liabilities during the years ended June 30, 2024 and 2023 were:
Health insurance fund. The City maintains a separate internal service fund to account for health
benefits. The City carries excess health insurance of $125,000 and aggregate stop loss coverage
for total annual claims over 120% through Wellmark, Inc. (DBA Wellmark Blue Cross and Blue
Shield of Iowa). The estimated liability for probable losses as recorded in the health benefits fund
was:
The hospital carries professional liability insurance on a claims-made policy. Should the claims-
made policy not be renewed or replaced with equivalent insurance, claims based on occurrences
during its term, but reported subsequently, would be uninsured. The hospital has accrued $250,000
as an estimate for professional liability claims that were incurred but not reported as of June 30,
2024.
The hospital is self-insured for health care coverage of employees and covered dependents and
carries stop-loss insurance coverage, which assumes liability for claims in excess of $175,000 per
individual claim and 120% aggregate of expected paid claims. Accrued costs related to health care
coverage amounted to $2,001,000 at June 30, 2024.
2024 2023
Liability, July 1 1,282,758$ 1,448,395$
Claims incurred & claims adjustments 801,340 760,530
Claim payments (574,386) (926,167)
Liability, June 30 1,509,712$ 1,282,758$
2024 2023
Liability, July 1 418,892$ 568,855$
Claims incurred & claims adjustments 10,604,329 9,777,380
Claim payments (10,411,500) (9,927,343)
Liability, June 30 611,721$ 418,892$
85
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
76
The hospital is self-insured for workers' compensation coverage of employees, and carries stop-
loss insurance coverage, which assumes liability for claims in excess of $500,000 per occurrence.
Accrued costs related to workers' compensation coverage were $296,000 at June 30, 2024.
Changes in the balance of the hospital's accrued claims for professional liabilities, health care, and
workers’ compensation coverage for the years ended June 30, 2024 and 2023 were as follows:
4.10 Leases
As of June 30, 2024, the financial statements include the adoption of GASB Statement No. 87,
Leases. The primary objective of this statement is to enhance the relevance and consistency of
information about governments’ leasing activities. This statement establishes a single model for
lease accounting based on the principle that leases are financings of the right-to-use an underlying
asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible
right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred
inflow of resources.
Lessee
As of June 30, 2024 the City was a lessee for several equipment leases. The City recognizes lease
liabilities and intangible right-to-use lease assets (lease assets) in the fund financials for proprietary
funds and government-wide financial statements for governmental funds. At the commencement
of a lease, the City initially measures the lease liability at the present value of payments expected
to be made during the lease term.
Thereafter, the lease liability is reduced by the principal portion of lease payments made. The lease
asset is initially measured as the initial amount of the lease liability, adjusted for lease payments
2024 2023 2024 2023
Liability, July 1 199,803$ 185,253$ 1,511,683$ 1,329,885$
Claims incurred & claims adjustments 51,436 24,899 13,341,637 13,113,303
Claim payments (1,325) (10,349) (12,852,653) (12,931,505)
Liability, June 30 249,914$ 199,803$ 2,000,667$ 1,511,683$
2024 2023
Liability, July 1 483,749$ 266,292$
Claims incurred & claims adjustments 288,874 637,038
Claim payments (476,487) (419,581)
Liability, June 30 296,136$ 483,749$
Professional Liability Health Insurance
Workers' Compensation
86
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
77
made at or before the lease commencement date, plus certain initial direct costs. Thereafter, the lease
asset is amortized on a straight-line basis over its useful life.
Key estimates and judgements related to leases include how the City determines (a) the discount rate
it uses to discount the expected lease payments to present value, (b) lease term, and (c) lease
payments.
a. If known, City uses the interest rate charged by the lessor as the discount rate. When the
interest rate charged by the lessor is not provided, the City uses its estimated incremental
borrowing rate as the discount rate for the leases.
b. The lease term includes the noncancelable period of the lease.
c. Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to significantly
affect the amount of the lease liability. Lease assets are reported with other capital assets and lease
liabilities are reported with long-term debt on the statement of net position.
Lessor
As of June 30, 2024, the City was a lessor for several leases. The present value of the leases are
aggregated on a fund basis. All funds record lease receivable on the fund level Statement of Net
Position and are rolled into the government-wide Statement of Net Position.
At the beginning of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. After, the lease receivable is reduced by the
principal portion of lease payments received. The deferred inflow of resources is initially measured
as the initial amount of the lease receivable, adjusted for lease payments received at or before the
lease commencement date. Thereafter, the deferred inflow of resources is recognized as revenue
over the life of the lease term.
Key estimates and judgements include how the City determines (a) the discount rate it uses to
discount the expected lease receipts to present value, (b) lease term, and (c) lease receipts.
a. If specified, the City uses the interest rate identified in the contract as the discount rate.
If no interest rate is specified, the City uses its estimated incremental borrowing rate as
the discount rate for leases.
b. The lease term includes the noncancellable period of the lease
c. Lease receipts included in the measurement of the lease receivable are composed of
fixed payments from the lessee.
87
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
78
The City monitors changes in circumstances that would require a lease remeasurement and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
Lease payable
As of June 30, 2024, the City, not including MGMC had three active leases. The leases have payments
that range from $6,192 to $48,258 and interest rates that range from 2.00% to 3.26%. The total
combined value of the lease liability is $125,608. The combined value of the right to use asset is
$223,319 with accumulated amortization of $62,830. Principal and Interest requirements to maturity
are as follows:
Lease receivable
On June 30, 2024, the City, not including MGMC, had 10 active leases. The leases have receipts that
range from $720 to $69,200 and interest rates that range from 1.39% to 5.00%. The total combined
value of the lease receivable is $2,000,451, the total combined value of the short-term lease receivable
is $108,918, and the combined value of the deferred inflow of resources is $1,890,334.
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2025 14,135$ 481$ 14,616$ 52,321$ 2,145$ 54,466$
2026 7,259 49 7,308 51,893 1,023 52,916
21,394$ 530$ 21,924$ 104,214$ 3,168$ 107,382$
Leases Payable
Business-Type Activities Governmental Activities
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2025 104,874$ 31,013$ 135,887$ 4,044$ 23,118$ 27,162$
2026 108,386 29,296 137,682 5,086 22,893 27,979
2027 96,042 26,965 123,007 6,205 22,613 28,818
2028 87,869 25,149 113,018 7,409 22,276 29,685
2029 89,718 23,369 113,087 8,694 21,876 30,570
2030-2034 499,084 86,326 585,410 70,185 100,725 170,910
2035-2039 258,649 45,941 304,590 136,220 75,277 211,497
2040-2044 67,825 33,673 101,498 213,288 32,218 245,506
Thereafter 223,874 78,731 302,605 12,999 108 13,107
1,536,321$ 380,463$ 1,916,784$ 464,130$ 321,104$ 785,234$
Governmental ActivitiesBusiness-Type Activities
City Leases Receivable
88
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
79
General fund
On July 1, 2021, the City entered into a 279-month lease as Lessor for the use of Verizon Tower
Site. An initial lease receivable was recorded in the amount of $472,700. As of June 30, 2024, the
value of the lease receivable is $464,130. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 5.0000%. The value of the deferred
inflow of resources as of June 30, 2024, was $409,914, and the City recognized lease revenue of
$20,331 during the fiscal year.
Airport fund
On July 1, 2021, the City entered into a 312-month lease as Lessor for the use of Hap's Air Service.
An initial lease receivable was recorded in the amount of $42,101. As of June 30, 2024, the value
of the lease receivable is $35,809. The lessee is required to make annual payments according to
the rent schedule. The lease has an interest rate of 5.0000%. The value of the deferred inflow of
resources as of June 30, 2024 was $37,243, and the City recognized lease revenue of $1,619 during
the fiscal year.
On July 1, 2022, the City entered into a 300-month lease as Lessor for the use of 2516 Airport Dr.
(Brian Aukes). An initial lease receivable was recorded in the amount of $26,532. As of June 30,
2024, the value of the lease receivable is $24,574. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 2.3657%. The value of the deferred
inflow of resources as of June 30, 2024, was $24,409, and the City recognized lease revenue of
$1,061 during the fiscal year. The lessee has 4 extension option(s), each for 60 months.
On July 1, 2022, the City entered into a 300-month lease as Lessor for the use of 2514 Airport Dr.
(Viking Aviation). An initial lease receivable was recorded in the amount of $35,752. As of June
30, 2024, the value of the lease receivable is $33,794. The lessee is required to make annual
payments according to the rent schedule. The lease has an interest rate of 2.3657%. The value of
the deferred inflow of resources as of June 30, 2024, was $33,550, and the City recognized lease
revenue of $1,141 during the fiscal year. The lessee has 4 extension option(s), each for 60 months.
On July 1, 2022, the City entered into a 300-month lease as Lessor for the use of Ames Hanger
Club. An initial lease receivable was recorded in the amount of $46,433. As of June 30, 2024, the
value of the lease receivable is $43,006. The lessee is required to make annual payments according
to the rent schedule. The lease has an interest rate of 2.3657%. The value of the deferred inflow of
resources as of June 30, 2024, was $42,718, and the City recognized lease revenue of $1,857 during
the fiscal year. The lessee has 4 extension option(s), each for 60 months.
On July 1, 2022, the City entered into a 600-month lease as Lessor for the use of 2475 Airport
Drive. An initial lease receivable was recorded in the amount of $155,198. As of June 30, 2024,
the value of the lease receivable is $158,593. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 2.3657%. The value of the deferred
inflow of resources as of June 30, 2024, was $148,990, and the City recognized lease revenue of
$3,104 during the fiscal year. The lessee has 9 extension option(s), each for 60 months.
89
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
80
On July 1, 2022, the City entered into a 300-month lease as Lessor for the use of 714 Airport Rd.
An initial lease receivable was recorded in the amount of $61,910. As of June 30, 2024, the value
of the lease receivable is $57,341. The lessee is required to make annual payments according to
the rent schedule. The lease has an interest rate of 2.3657%. The value of the deferred inflow of
resources as of June 30, 2024, was $56,957, and the City recognized lease revenue of $2,476 during
the fiscal year. The lessee has 4 extension option(s), each for 60 months.
On July 1, 2022, the City entered into a 180-month lease as Lessor for the use of Central Iowa Air
Services. An initial lease receivable was recorded in the amount of $997,318. As of June 30, 2024,
the value of the lease receivable is $891,930. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 1.3940%. The value of the deferred
inflow of resources as of June 30, 2024, was $870,818, and the City recognized lease revenue of
$66,488 during the fiscal year. the City has 1 extension option for 180 months.
On July 1, 2022, the City entered into a 300-month lease as Lessor for the use of 2512 Airport Dr.
(Plane Crazy). An initial lease receivable was recorded in the amount of $14,740. As of June 30,
2024, the value of the lease receivable is $13,653. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 2.3657%. The value of the deferred
inflow of resources as of June 30, 2024, was $13,561, and the City recognized lease revenue of
$590 during the fiscal year. The lessee has 4 extension option(s), each for 60 months.
Water fund
On July 1, 2021, the City entered into a 156-month lease as Lessor for the use of Tower -
MAC(Sprint). An initial lease receivable was recorded in the amount of $259,013. As of June 30,
2024, the value of the lease receivable is $221,655. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 4.0000%. The value of the deferred
inflow of resources as of June 30, 2024, was $199,299, and the City recognized lease revenue of
$19,824 during the fiscal year.
On July 1, 2021, the City entered into a 65-month lease as Lessor for the use of Tower Lease -
Western. An initial lease receivable was recorded in the amount of $118,513. As of June 30, 2024,
the value of the lease receivable is $55,966. The lessee is required to make annual payments
according to the rent schedule. The lease has an interest rate of 3.3200%. The value of the deferred
inflow of resources as of June 30, 2024, was $52,875, and the City recognized lease revenue of
$21,879 during the fiscal year.
4.11 Subscription-based information technology arrangements (SBITA)
For the year ended June 30, 2024, the financial statements include the adoption of GASB Statement
No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this
statement is to enhance the relevance and consistency of information about governments'
subscription activities. This statement establishes a single model for subscription accounting based
on the principle that subscriptions are financings of the right to use an underlying asset. Under this
90
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
81
Statement, an organization is required to recognize a subscription liability and an intangible right-
to-use subscription asset. For additional information, refer to the disclosures below.
Subscription Payable
As of June 30, 2024, the City, not including MGMC, had twelve active subscriptions that have
payments that range from $1,500 to $166,822 and interest rates that range from 1.7100% to
3.1440%. As of June 30, 2024 the total combined value of the subscription liability is $630,784.
The combined value of the right-to-use asset is $1,233,076 with accumulated amortization of
$509,879.
The future principal and interest subscription-based information technology arrangement (SBITA)
payments as of June 30, 2024, are as follows:
The future principal and interest lease and SBITA payments, including MGMC as of June 30,
2024, are as follows:
4.12 Long-term obligations
General obligation bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities and equipment. General obligation bonds have been issued for both
governmental and business-type activities. General obligation bonds are direct obligations and
pledge the full faith and credit of the City. These bonds are generally issued with maturities ranging
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2025 122,356$ 5,983$ 128,339$ 204,159$ 9,733$ 213,892$
2026 113,428 3,014 116,442 41,769 4,469 46,238
2027 4,723 277 5,000 43,155 3,499 46,654
2028 4,859 141 5,000 44,150 2,504 46,654
2029 - - - 9,850 1,511 11,361
2030-2034 - - - 42,335 3,107 45,442
245,366$ 9,415$ 254,781$ 385,418$ 24,823$ 410,241$
City IT Subscription Asset
Business-Type Activities Governmental Activities
Fiscal Year
Ending June 30,Principal Interest Total
2025 1,694,087$ 101,606$ 1,795,693$
2026 989,314 56,923 1,046,237
2027 378,814 23,646 402,460
2028 230,078 10,299 240,377
2029 50,329 2,123 52,452
2030-2034 42,335 3,107 45,442
3,384,957$ 197,704$ 3,582,661$
91
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
82
from 10 to 20 years. Debt service on general obligation bonds is paid from the debt service fund.
General obligation bonds outstanding at June 30, 2024, are as follows:
On November 9, 2023, the City issued $12,110,000 of general obligation, corporate purpose bonds
for improvements to streets, sewers, water systems, and sidewalks, as well as undertaking a project
in the Downtown Reinvestment District and acquiring street department equipment, which had an
interest rate of 5.000%. Maturity dates on the bonds range from June 1, 2024 to June 1, 2035. Debt
Service payments are scheduled to be paid semi-annually in amounts that range from $1,314,000
to $1,469,753. Bonds due after June 1, 2031 may be subject to call prior to maturity at the option
of the City.
Outstanding
Sale Original Final June 30,
General Obligation Bonds Date Borrowing Maturity 2024
Corporate purpose 2014 9,395,000$ 2.000-2.500 %2026 1,315,000$
Corporate purpose/refunding 2015 15,670,000 3.000-5.000 2035 3,100,000
Corporate purpose 2016 9,020,605 2.000-5.000 2028 2,634,980
Corporate purpose/refunding 2017 10,975,000 2.000-5.000 2029 3,255,000
Corporate purpose 2018 7,490,000 3.000-5.000 2030 4,190,000
Corporate purpose/TIF 2019 290,000 1.500-5.000 2031 200,000
Corporate purpose 2019 10,230,000 1.500-5.000 2031 6,250,000
Corporate purpose 2020 9,500,000 1.000-5.000 2032 6,720,000
Corporate purpose/refunding 2020 7,929,118 1.000-5.000 2032 1,975,000
Corporate purpose 2021 9,850,000 1.375-5.000 2033 7,740,000
Corporate purpose/refunding 2021 9,372,505 1.375-5.000 2033 6,192,227
Corporate purpose 2022 12,440,000 4.000-5.000 2034 10,450,000
Corporate purpose 2023 12,110,000 5.000 2035 10,980,000
124,272,228$ 65,002,207$
Governmental Activities
Interest
Rates to
Maturity
Outstanding
Sale Original Final June 30,
General Obligation Bonds Date Borrowing Maturity 2024
Corporate purpose/refunding 2015 1,860,000$ 3.000-5.000 2027 555,000$
Corporate purpose 2015 915,000 3.000-5.000 2027 585,000
Corporate purpose/refunding 2016 2,629,395 2.000-5.000 2028 610,020
Corporate purpose 2019 255,000 1.500-5.000 2031 175,000
Corporate purpose/refunding 2021 417,495 5.000 2025 107,773
6,076,890$ 2,032,793$
Business-Type Activities
Interest
Rates to
Maturity
92
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
83
Revenue bonds
The City also issues revenue bonds, where the City pledges income derived from certain assets or
programs to pay the debt service. Revenue bonds outstanding as of June 30, 2024 are as follows:
On November 1, 2019, the hospital issued $35,000,000 in revenue bonds to provide additional
financing for the expansion and remodeling of certain portions of the medical center facilities. The
2019 series bonds are payable through June 15, 2034 and carry interest due at 1.99% (plus an
adjustment to the medical centers credit rating on June 30, 2024).
The hospital has pledged future net revenue to repay the 2012 and 2016 revenue bonds with
original borrowings of $26,000,000 and $64,790,000, respectively. Net revenue is defined in the
supplemental master trust indenture of trust dated November 20, 2012, and in the supplemental
trust indenture dated June 15, 2016, as operating revenue, less operating expenses plus
depreciation. The purpose of the 2012 and 2016 bonds is to refund the 2003 and 2011 bonds,
respectively, and to finance the expansion and renovation of the medical facility. The bonds are
payable solely from net revenues and payable through 2027 and 2036, respectively.
Total principal and interest remaining to be paid on hospital bonds as of June 30, 2024 is
$98,151,136. Principal and interest paid during the fiscal year was $9,016,000 and net revenue for
the same period, as defined above, was $27,855,000.
The City has pledged future net revenue to repay the 2015 electric revenue bonds. Net revenue is
defined as operating revenue less operating expenses, excluding depreciation. The total principal
and interest remaining to be paid on the bonds as of June 30, 2024, is $2,900,488. Principal and
interest paid during the fiscal year ended June 30, 2024, was $964,806 and net revenue for the
same period, as defined above, was $7,454,406.
Landfill post-closure costs
The City stopped accepting solid waste at its landfill effective June 30, 1992 and has since been
closed. One hundred percent of the capacity of the landfill has been used.
Federal and state laws and regulations establish landfill closure and post-closure care requirements.
The state specifies financial assurance requirements in the Code of Iowa enumerating various
Outstanding
Sale Original Final June 30,
Revenue Bonds Date Borrowing Maturity 2024
Hospital improvement
and refunding 2012 19,945,000$ 2.070 %2027 1,450,000$
Electric 2015 9,500,000 2.125-5.000 2027 2,750,000
Hospital refunding 2016 64,790,000 3.000-5.000 2036 53,810,000
Hospital expansion/remodel 2019 35,000,000 1.990 2034 24,945,000
129,235,000$ 82,955,000$
Interest
Rates to
Maturity
93
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
84
allowable financial assurance mechanisms to meet the costs of closure and post-closure care. The
City satisfies this requirement with the rating on its most recent bond issues.
The liability for post-closure care costs is based on the landfill capacity used to date with no
remaining life. The estimated liability for post-closure care costs is $85,513 at June 30, 2024, with
a current portion of $15,788.
The City's written landfill post-closure plan includes estimates of costs of all equipment and
services required to monitor and maintain the closed landfill. There is a potential for changes in
estimates because of inflation or deflation, changes in technology, or changes in applicable laws
or regulations. Unanticipated future inflation costs and costs that might arise from changes in post-
closure requirements may require adjustment of the liability in future years.
Revenue capital loan notes
The City has a revenue capital loan note agreement with the Iowa Finance Authority (IFA) in an
amount not to exceed $76,325,000. Proceeds from the loan were used for paying the cost of
planning, designing, and constructing improvements and extensions to the water utility. The loan
bears interest at 1.75% per annum plus a servicing fee of 0.25% per annum. A loan initiation fee
of $100,000 was withheld from the proceeds and added to the amount owed by the City.
Repayment of the loan came from the water fund. The City received its final disbursement for the
loan during fiscal year 2021, with total proceeds, including the loan initiation fee, totaling
$68,081,339. No amounts were borrowed during the fiscal year. The amount of principal
outstanding as of June 30, 2024 is $41,662,000.
The City has a second revenue capital loan note agreement with the IFA in an amount not to exceed
$3,500,000. The funds are to be used for demolition of the old water plant at the end of its useful
life. The loan bears interest at 1.75% per annum plus a servicing fee of 0.25% per annum. A loan
initiation fee of $17,500 was withheld from the proceeds and added to the amount owed by the
City. Repayment of the loan will come from the water fund. The City borrowed $540,286 during
the fiscal year, and the amount of principal outstanding as of June 30, 2024 is $2,354,365. The
City has $854,635 in capital loan notes still available as of June 30, 2024.
The City has a third revenue capital loan note agreement with the IFA in an amount not to exceed
$12,161,000. The funds are to be used for the North River Valley Well Field and Pipeline project.
The loan bears interest at 1.75% per annum plus a servicing fee of 0.25% per annum. A loan
initiation fee of $60,805 was withheld from the proceeds and added to the amount owed by the
City. Repayment of the loan will come from the water fund. The City borrowed $6,938,446 during
the fiscal year, and the amount of principal outstanding as of June 30, 2024 is $6,649,251. The
City has $5,161,749 in capital loan notes still available as of June 30, 2024.
The capital loan note agreements above require the water utility to produce revenues to meet the
operation and maintenance expenses of the facility and to maintain net revenues at a level not less
than 110% of the amount of principal and interest on the revenue bond and any other obligations
94
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
85
secured by a pledge of the net revenues falling due in the same year. In the fiscal year ended June
30, 2024, net revenues were $6,499,391 and principal and interest due of $4,317,916.
The City has a fourth revenue capital loan note agreement with the IFA in an amount not to exceed
$3,121,000. The funds were used to pay for a new ultraviolet light disinfection system for the
Water Pollution Control Plant, which is required under the terms of the discharge permit for the
facility. The loan bears interest at 1.75% per annum plus a servicing fee of 0.25% per annum. A
loan initiation fee of $15,605 was withheld from the proceeds and added to the amount owed by
the City. Repayment of the loan will come from the sewer fund. The City received its final
disbursement for the loan during fiscal year 2015, with total proceeds, including the loan initiation
fee, totaling $2,474,250. No amounts were borrowed during the fiscal year. The amount of
principal outstanding as of June 30, 2024 is $1,147,000.
The City has a fifth capital loan note agreement with the IFA in an amount not to exceed
$5,700,000. The funds were used for planning, designing, and construction improvements and
extensions to the sanitary sewer system. The loan bears interest at 0.86% per annum plus a
servicing fee of 0.25% per annum. A loan initiation fee of $30,375 was withheld from the proceeds
and added to the amount owed by the City. Repayment of the loan will come from the sewer fund.
The City received its final disbursement for the loan during fiscal year 2021, with total proceeds,
including the loan initiation fee, totaling $5,581,055. No Amounts were borrowed during the fiscal
year. The amount of principal outstanding as of June 30, 2024 is $4,072,000.
The City has a sixth revenue capital loan note agreement with the IFA in an amount not to exceed
$797,000. The funds were used for improvements to two wastewater lift stations that were nearing
the end of their useful lives. The loan bears interest at 1.75% per annum plus a servicing fee of
0.25% per annum. A loan initiation fee of $3,985 was withheld from the proceeds and added to
the amount owed by the City. Repayment of the loan will come from the sewer fund. No amounts
were borrowed during the fiscal year. The amount of principal outstanding as of June 30, 2024 is
$400,000.
The City has a seventh revenue capital loan note agreement with the IFA in an amount not to
exceed $1,001,000. The funds were used for a new mechanically cleaned bar screening system at
the Water Pollution Control Plant. The loan bears interest at 1.75% per annum plus a servicing fee
of 0.25% per annum. A loan initiation fee of $5,005 was withheld from the proceeds and added to
the amount owed by the City. Repayment of the loan will come from the sewer fund. No amounts
were borrowed during the fiscal year. The amount of principal outstanding as of June 30, 2024 is
$551,000.
The City has an eighth revenue capital loan note agreement with the IFA in an amount not to
exceed $8,357,000. The funds were used sanitary sewer collection system improvements. The loan
bears interest at 2.75% per annum plus a servicing fee of 0.25% per annum. A loan initiation fee
of $41,785 was withheld from the proceeds and added to the amount owed by the City. Repayment
of the loan will come from the sewer fund. No amounts were borrowed during the fiscal year. The
amount of principal outstanding as of June 30, 2024 is $7,320,000.
95
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
86
The City has a ninth revenue capital loan note agreement with the IFA in an amount not to exceed
$4,071,000. The funds are to be used for sanitary sewer rehabilitation near Ames High School and
Veenker Golf Course. The loan bears interest at 1.75% per annum plus a servicing fee of 0.25%
per annum. A loan initiation fee of $20,355 was withheld from the proceeds and added to the
amount owed by the City. Repayment of the loan will come from the sewer fund. The City
borrowed $1,401,221 during the fiscal year, and the amount of principal outstanding as of June 30,
2024 is $1,242,576. The City has $2,649,424 in capital loan notes still available as of June 30,
2024.
The City has a tenth revenue capital loan note agreement with the IFA in an amount not to exceed
$2,150,000. The funds are to be used for sanitary sewer rehabilitation near South Skunk River.
The loan bears interest at 1.75% per annum plus a servicing fee of 0.25% per annum. A loan
initiation fee of $10,750 was withheld from the proceeds and added to the amount owed by the
City. Repayment of the loan will come from the sewer fund. The City borrowed $1,409,022 during
the fiscal year, and the amount of principal outstanding as of June 30, 2024 is $1,408,022.
The capital loan note agreements above require the sewer utility to produce revenues to meet the
operation and maintenance expenses of the facility and to maintain net revenues at a level not less
than 110% of the amount of principal and interest on the revenue bond and any other obligations
secured by a pledge of the net revenues falling due in the same year. In the fiscal year ended June
30, 2024, the sewer fund had net revenues of $4,055,674, and the amount of principal and interest
due was $1,269,269.
Legal debt margin. State statutes limit the amount of general obligation debt an Iowa city may
issue to 5% of the actual assessed valuation at January 1, 2022, related to the 2023-2024 fiscal
year. At June 30, 2024, the outstanding debt of $67,035,000 is below the limit of $277,058,572,
leaving a debt margin of over $210 million.
Changes in long-term liabilities. Changes in the City’s long-term liabilities for the fiscal year
ended June 30, 2024, are as follows:
Historically, liabilities for compensated absences and other post-employment benefits are
generally liquidated by the General Fund, Local Option Sales Tax Fund, Road Use Tax Fund,
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
Governmental activities:
Bonds payable:
General obligation bonds 62,503,725$ 12,110,000$ (9,611,518)$ 65,002,207$ 8,818,692$
Premium 6,178,494 681,309 (986,512) 5,873,291 855,125
Total bonds payable 68,682,219 12,791,309 (10,598,030) 70,875,498 9,673,817
Compensated absences 2,636,338 3,569,789 (3,407,234) 2,798,893 137,621
Lease liabliity 16,266 141,953 (54,005) 104,214 52,321
Subscription liability 584,031 - (198,614) 385,417 204,159
Governmental activities long-
term debt 71,918,854$ 16,503,051$ (14,257,883)$ 74,164,022$ 10,067,918$
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
87
Public Housing Fund, Internal Service Funds, and the Community Development Block Grant.
Historically, lease liabilities and subscription-based information technology agreements (SBITAs)
are liquidated from its respective fund which it is included within the financial statements.
The debt service requirements for the City's bonds are as follows:
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year
Business-type activities:
Bonds payable:
Revenue bonds 89,840,000$ -$ (6,885,000)$ 82,955,000$ 7,130,000$
Premium 4,495,613 - (649,066) 3,846,547 618,796
Total revenue bonds 94,335,613 - (7,534,066) 86,801,547 7,748,796
General obligation bonds 2,671,275 - (638,482) 2,032,793 506,307
Premium 232,459 - (56,506) 175,953 51,668
Total general obligation bonds 2,903,734 - (694,988) 2,208,746 557,975
Total bonds payable 97,239,347 - (8,229,054) 89,010,293 8,306,771
Compensated absences 8,939,482 11,566,260 (11,240,264) 9,265,478 691,645
Lease liability 1,203,747 708,581 (671,562) 1,240,766 611,747
Subscription liability 946,672 1,342,301 (634,413) 1,654,560 825,860
Loans payable 95,082 - (95,082) - -
Capital loan notes payable 60,781,091 10,288,975 (4,263,852) 66,806,214 4,451,023
Business-type activities long-
term debt 169,205,421$ 23,906,117$ (25,134,227)$ 167,977,311$ 14,887,046$
Year Ending
June 30, Principal Interest
2025 8,818,692$ 2,472,330$
2026 8,643,850 2,078,334
2027 8,211,187 1,713,772
2028 7,453,478 1,369,581
2029 6,995,000 1,144,638
2030-2034 23,620,000 2,471,075
2035-2039 1,260,000 63,000
Total 65,002,207$ 11,312,730$
General Obligation Bonds
97
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
88
Year Ending
June 30, Principal Interest Principal Interest
2025 506,307$ 80,402$ 7,130,000$ 2,857,764$
2026 406,151 64,397 7,380,000 2,608,276
2027 418,813 53,585 7,640,000 2,346,344
2028 231,522 42,426 6,445,000 2,068,984
2029 75,000 13,794 6,655,000 1,859,826
2030-2034 335,000 38,606 36,880,000 5,701,629
2035-2039 60,000 1,950 10,825,000 653,800
Total 2,032,793$ 295,160$ 82,955,000$ 18,096,623$
General Obligation Bonds Revenue Bonds
Year Ending
June 30, Principal Interest Principal Interest
2025 4,451,023$ 1,372,824$ -$ -$
2026 4,655,000 1,273,827 - -
2027 4,741,000 1,181,513 - -
2028 4,829,000 1,087,461 - -
2029 4,918,000 991,620 - -
2030-2034 25,089,575 3,466,665 - -
2035-2039 16,305,616 999,712 - -
2040-2042 1,817,000 106,610 - -
Total 66,806,214$ 10,480,232$ -$ -$
Capital Loan Notes Loans
Year Ending
June 30, Principal Interest Principal Interest
2025 12,087,330$ 4,310,990$ 20,906,022$ 6,783,320$
2026 12,441,151 3,946,500 21,085,001 6,024,834
2027 12,799,813 3,581,442 21,011,000 5,295,214
2028 11,505,522 3,198,871 18,959,000 4,568,452
2029 11,648,000 2,865,240 18,643,000 4,009,878
2030-2034 62,304,575 9,206,900 85,924,575 11,677,975
2035-2039 27,190,616 1,655,462 28,450,616 1,718,462
2040-2042 1,817,000 106,610 1,817,000 106,610
Total 151,794,007$ 28,872,015$ 216,796,214$ 40,184,745$
Type Activities
Total Business -Total Primary
Government Debt
98
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
89
4.13 Fund balance
Minimum fund balance policy. The City establishes and maintains fund balance levels based on
evaluation of each individual fund. The minimum fund balance is set at a level that is considered
necessary to maintain the City's credit worthiness and to adequately provide for:
1. Economic uncertainties, local disasters, and other financial hardships or downturns in the
local or national economy,
2. Contingencies for unseen operating or capital needs, and
3. Cash flow requirements.
In addition to the designations noted above, fund balance levels will be sufficient to meet funding
requirements for projects approved in prior years that are carried forward into the new year; debt
service reserve requirements; reserves for encumbrances; and other reserves or designations
required by contractual obligations, state law, or generally accepted accounting principles.
The minimum fund balance level for the General Fund is 20.00% of operating expenditures.
99
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
90
The details for the City’s fund balances are as follows:
Capital Debt Special Permanent
General Projects Service Revenues Funds Total
Nonspendable:
Inventory 23,601$ -$ -$ 203,029$ -$ 226,630$
Prepaid items 176,627 24,000 - 12,297 - 212,924
Perpetual care principal - - - - 1,109,260 1,109,260
Aquatic center endowment - - - - 1,000,000 1,000,000
Total nonspendable fund balance 200,228 24,000 - 215,326 2,109,260 2,548,814
Restricted:
Debt service - - 3,870,709 1,516,958 - 5,387,667
Aquatic center - - - - 123,930 123,930
Street construction - - - 9,413,148 - 9,413,148
Environment and economic betterment - 2,457,821 - 12,625,829 - 15,083,650
General obligation bond projects - 21,931,506 - - - 21,931,506
Housing assistance - - - 874,378 - 874,378
Public safety - - - 321,343 - 321,343
Public safety pension - - - 15,894 - 15,894
Library - - - 509,894 - 509,894
Parks and recreation - 551,378 - - - 551,378
Project Share - - - 4,820 - 4,820
Developers' projects - - - 246,259 - 246,259
Total restricted fund balance - 24,940,705 3,870,709 25,528,523 123,930 54,463,867
Committed:
Bike trails - - - 10,026 - 10,026
Parks and recreation - 1,948,665 - 229,383 - 2,178,048
Housing assistance - - - 416,867 - 416,867
Green energy projects - - - 13,190 - 13,190
Environment and economic betterment - - - 6,698,473 - 6,698,473
Public Art Donations 3,982 3,982
Total committed fund balance - 1,948,665 - 7,371,921 - 9,320,586
Assigned:
Administration 130,430 - - - - 130,430
City Hall maintenance 19,835 - - - - 19,835
Police operations 21,165 - - - - 21,165
Cemetary 25,599 - - - - 25,599
Library maintenance 20,280 - - - - 20,280
Parks and recreation 917,590 - - - - 917,590
Parks and recreation maintenance 16,405 - - - - 16,405
Public relations 3,214 - - - - 3,214
PW/Airport 6,876 - - - - 6,876
Fire 77,115 - - - - 77,115
Total assigned fund balance 1,238,509 - - - - 1,238,509
Unassigned 15,607,102 (347,344) - - - 15,259,758
Total fund balance 17,045,839$ 26,566,026$ 3,870,709$ 33,115,770$ 2,233,190$ 82,831,534$
100
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
91
4.14 Inter-fund receivables and payables
The composition of inter-fund balances as of June 30, 2024, is as follows:
The outstanding balances between funds result mainly from the time lag between the dates that
inter-fund goods and services are provided, or reimbursable expenditures occur.
Receivable Fund General Fund
Capital
Projects Debt Service Electric Sewer Water
Major Funds:
General Fund -$ 6,842$ -$ 361,915$ 32,392$ 204,413$
Debt Service - - - - 732 1,173
Electric 74,014 - - - 28,575 30,155
Sewer 104 - - 39,135 - 61,037
Water - 2,986 - 47,986 500,987 -
Non-Major Funds:
Special Revenue 689,376 374,061 - 8,129 408,526 316,969
Enterprise 4,143 9,132 22,733 83,303 1,826 83
Internal Service 117,646 2,399 - 48,347 29,444 30,620
Total 885,283$ 395,420$ 22,733$ 588,815$ 1,002,482$ 644,450$
Payable Fund
Receivable Fund
Non-Major
Permanent
Funds
Non-Major
Special
Revenue
Funds
Non-Major
Enterprise
Funds
Internal Service
Funds Total
Major Funds:
General Fund 31,321$ 913,055$ 167,720$ 45,332$ 1,762,990$
Capital Projects - 750 - - 750
Debt Service - - - - 1,905
Electric - 16 - - 132,760
Sewer - - - - 100,276
Water - - - - 551,959
Non-Major Funds:
Special Revenue - 38,318 104,983 9,052 1,949,414
Enterprise - 10,876 6,420 910 139,426
Internal Service - 126,136 45,822 387 400,801
Total 31,321$ 1,089,151$ 324,945$ 55,681$ 5,040,281$
Payable Fund
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
92
4.15 Inter-fund transfers
The composition of inter-fund transfers for the year ended June 30, 2024, is as follows:
Inter-fund transfers are authorized in the City budget and usually involve transfers from the fund
receiving the revenue to the fund through which the authorized expenditure is to be made. For
example, the road use tax funds are received into the special revenue fund and are transferred to
the capital projects fund where the funds will be spent.
The City also authorized the expenditure of funds from the Federal Relief funds of $2,512,035.
This resulted in a capital contribution from governmental to business-type activities.
4.16 Donor-restricted endowment
Earnings from the investment of the Furman Aquatic Center endowment of $123,930 at June 30,
2024, are shown as restricted net position. These funds can be used at the aquatic center to
minimize the City’s ongoing operational costs, to fund future repairs and enhancements, and to
replace equipment. Chapter 540A of the Code of Iowa permits the City to appropriate an amount
of net appreciation as the City determines, in good faith, while considering the duration and
preservation of the endowment fund, the purposes of the City and the fund, general economic
conditions, the possible effect of inflation or deflation, the expected total return from income and
the appreciation of investments, other resources of the City, and the investment policy of the City.
4.17 Urban renewal development agreements
The City has entered into various development agreements for urban renewal projects. The
agreements require the City to rebate portions of the incremental property tax paid by the developer
in exchange for infrastructure, improvements, rehabilitation, and development of commercial
projects by the developer. The total to be paid by the City under the agreements is not to exceed
$7,520,599. Certain agreements include provisions for the payment of interest.
During the fiscal year ended June 30, 2024, the City rebated $376,836 of incremental property tax
to developers, which was all for principal. The total cumulative principal amount rebated on the
Transfers In General Fund
Capital
Projects Electric
Non-Major
Special Revenue
Non-Major
Enterprise Internal Service Total
Major Funds:
General Fund -$ 5,074$ 2,292,262$ 7,927,457$ -$ -$ 10,224,793$
Capital Projects 2,817,340 - - 1,100,000 - - 3,917,340
Debt Service - 886,059 - 335,050 676,913 - 1,898,022
Non-Major Funds:
Special Revenue 291,936 - - 185,623 - - 477,559
Enterprise 2,689,863 - - 45,489 - - 2,735,352
Internal Service - - - - - 46,199 46,199
Total 5,799,139$ 891,133$ 2,292,262$ 9,593,619$ 676,913$ 46,199$ 19,299,265$
Transfers Out
102
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
93
agreements is $3,518,834. The outstanding balance on the agreements at June 30, 2024 was
$4,001,765.
The agreements are not general obligations of the City and due to their nature, are not recorded as
a liability in the City's financial statements. However, the agreements are subject to the
constitutional debt limitation of the City.
Certain agreements include an annual appropriation clause and, accordingly, only the amount
payable in the succeeding year on the agreements is subject to the constitutional debt limitation.
The entire outstanding principal balance of agreements, not including an annual appropriation
clause, is subject to the constitutional debt limitation.
4.18 Tax abatements
GASB Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an
agreement between one or more governments and an individual or entity in which (a) one or more
governments promise to forgo tax revenues to which they are otherwise entitled and (b) the
individual or entity promises to take a specific action after the agreement has been entered into
that contributes to economic development or otherwise benefits the governments or the citizens of
those governments.
The City provides tax abatements for urban renewal and economic development projects with tax
increment financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types
of projects, the City enters into agreements with developers, which require the City, after
developers meet the terms of the agreements, to rebate a portion of the property tax paid by the
developers, pay the developers an economic development grant, or pay the developers a pre-
determined dollar amount. No other commitments were made by the City as part of these
agreements.
On April 23, 2024, the City Council approved a Citywide Urban Revitalization Area designation,
as provided for in Chapter 404 of the Code of Iowa. For qualified owner-occupied properties that
are new construction dwellings qualify for a five-year partial tax abatement schedule up to
$500,000. The five-year schedule will be Year 1 – 100%, Year 2 – 80%, Year 3 60%, Year 4 –
40%, and Year 5 – 20%. No tax was abated during FY2024 for this new designation.
For the fiscal year ended June 30, 2024, the City abated $376,836 of property tax under urban
renewal and economic development projects. The City's property tax revenue was not reduced by
any amount under agreements entered into by any other entities for the year ended June 30, 2024.
4.19 Implementation of GASB Statement No. 100
As of July 1, 2023, the City adapted GASB Statement No. 100, “Accounting Changes and Error
Corrections – an amendment of GASB Statement No. 62”. This statement had no impact on the
City’s current financial statements as the City did not implement any accounting changes or correct
any errors to previously issued financial statements.
103
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
94
4.20 Prospective Accounting Pronouncements
GASB has issued statements not yet implemented by the City. The statements which might impact
the City are as follows:
Statement No. 101, “Compensated Absences.” The requirements of this Statement will
take effect for financial statements starting with the fiscal year that ends June 30, 2025.
Statement No. 102, “Certain Risk Disclosures.” The requirements of this Statement will
take effect for financial statements starting with the fiscal year that ends June 30, 2025.
Statement No. 103 “Financial Reporting Model Improvements.” The requirement of this
Statement will take effect for financial statements starting with the fiscal year that ends
June 30, 2026.
4.21 Contingencies
The City's Legal Department reported to management that, as of June 30, 2024, claims and lawsuits
were on file against the City. The Legal Department estimates that the portion of these potential
claims and lawsuits not covered by insurance would not materially affect the financial position of
the City. The City has authority to levy additional taxes outside the regular limit to cover cases
resulting in an uninsured judgment.
The City participates in various federal grant programs, the principal of which are subject to
program compliance audits pursuant to the Single Audit Act, as amended. Accordingly, the City's
compliance with applicable grant requirements will be established at a future date. The amount of
expenditures that may be disallowed by the granting agencies cannot be determined at this time,
although the City anticipates such amounts, if any, will be immaterial.
Hospital contingencies
Laws and regulations. The health care industry is subject to numerous laws and regulations of
federal, state, and local governments. Compliance with such laws and regulations can be subject
to future government review and interpretation, as well as regulatory actions unknown and
unasserted at this time. These laws and regulations include, but are not limited to, accreditation,
licensure, government health care program participation requirements, reimbursement for patient
services, and Medicare and Medicaid fraud and abuse. Recently, government activity has increased
with respect to investigations and allegations concerning possible violations of fraud and abuse
statutes and regulations by health care providers. Violations of these laws and regulations could
result in exclusion from government health care program participation, together with the
imposition of significant fines and penalties, as well as significant repayment for past
reimbursement for patient services received. While the hospital is subject to similar regulatory
reviews, management believes that the outcome of any such regulatory review will not have a
material adverse effect on the hospital's financial position.
104
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2024
95
Current economic conditions. The current labor market conditions have challenged employers to
make adjustments to health insurance plans, and thus services provided to self-pay and other payors
may significantly impact net patient service revenue, which could have an adverse impact on the
Medical Center’s future operating revenue, which could have an adverse impact on the Medical
Center’s future operating results. Further, the effect of economic conditions may have an adverse
effect on cash flows related to the Medicaid program.
Given the volatility of current economic conditions, the values of assets and liabilities recorded in
the financial statements could change rapidly, resulting in material future adjustments in investment
values and the allowances for accounts and contributions receivable. This could negatively affect
the hospital's ability to meet debt covenants or maintain sufficient liquidity.
Health Ventures is in the process of constructing a surgery center, and the Medical Center has
committed to pay for 50% of the construction costs of the surgery center in the form of equity
contributions to Health Ventures. The Medical Center’s portion of the estimated costs of the surgery
center project is approximately $15,000,000, of which the Medical Center has contributed
approximately $10,500,000 as of June 30, 2024 with the remaining to be paid through December
2024.
The Medical Center has committed a transfer of approximately $4,000,000 to the City of Ames for
funding the City’s aquatic center through fiscal year 2026.
4.22 Related party transactions
In May 2019, the Medical Center entered a direct borrowing financing arrangement for the
acquisition of computer hardware. This note, which is due to Health Ventures, a related party, carries
no interest and requires monthly payments of $9,508 and matures in fiscal year 2024. The note is
secured by the computer hardware.
4.23 Subsequent Events
On September 25, 2024, the City issued $17,495,000 of general obligation, corporate purpose bonds
for paying the cost of constructing improvements to streets, Ada Hayden Heritage Park, and the
municipal airport, equipping an indoor aquatic center, and acquiring street/traffic system equipment.
The interest rates on the bonds are 4.000% - 5.000% with final maturity on June 1, 2044.
On November 15, 2024, the City entered into a revenue capital loan note agreement with the IFA in
an amount not to exceed $65,185,000. The funds will be used for water and pollution control facility
improvements. The loan bears interest at 2.43% per annum plus a servicing fee of 0.25% per annum.
A loan initiation fee of $100,000 was withheld from the proceeds and added to the amount owed by
the City. Repayment of the loan will come from the sewer fund.
Mary Greeley has evaluated subsequent events through October 28, 2024, the date the financial
statements were issued. No subsequent events were considered to have a significant impact on Mary
Greeley’s financial statements.
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REQUIRED SUPPLEMENTARY INFORMATION
107
CITY OF AMES, IOWA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
LAST TEN FISCAL YEARS
98
*Prior year amounts of covered payroll were changed to comply with GASB Statement No. 82, Pension Issues-an amendment of GASB
Statements No. 67, No. 68, and No. 73.
**The plan has 3 groups, regular, sheriff, and protective. In total, the Plan reported a net pension asset at June 30, 2021. The City only
participates in the regular and protective groups. The City’s portion of the regular group’s net pension liability at June 30, 2021,
exceeded the City’s share of the protective group’s net pension asset, resulting in the City reporting a net pension liability at June 30,
2022.
In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding
year.
See Notes to Required Supplementary Information.
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability(asset)1.3213807%1.3057620%-0.0380697%1.1986846%1.1690479%1.1516658%1.1292958%1.1552370%1.1616104%1.2008652%
City's proportionate share of the net pension liability 59,638,185$ 49,488,498$ 131,427$ 84,204,424$ 67,695,565$ 72,880,234$ 75,225,392$ 72,702,712$ 57,389,174$ 47,625,187$
City's covered payroll*119,069,972$ 108,490,284$ 96,853,385$ 96,755,907$ 90,665,386$ 87,947,886$ 85,610,198$ 84,237,577$ 81,269,880$ 80,486,286$
City's proportionate share of the net pension liability as a
percentage of its covered payroll 50.09%45.62%0.14%87.03%74.67%82.87%87.87%86.31%70.62%59.17%
Plan fiduciary net position as a percentage of the total pension
liability 90.13%91.40%100.81%82.90%85.45%83.62%82.21%81.82%85.19%87.61%
108
CITY OF AMES, IOWA
SCHEDULE OF CITY CONTRIBUTIONS
IOWA PUBLIC EMPLOYEE’S RETIREMENT SYSETM
LAST TEN FISCAL YEARS
99
See Notes to Required Supplementary Information.
Contributions
in Relation to Contributions
Fiscal Statutorily the Statutorily Contribution City's as a Percentage
Year Required Required Deficiency Covered of Covered
Ended Contribution Contribution (Excess)Payroll Payroll
2024 11,525,155$ 11,525,155$ - 122,217,356$ 9.43%
2023 11,205,032 11,205,032 - 119,069,972 9.41%
2022 10,223,542 10,223,542 - 108,490,284 9.42%
2021 9,131,127 9,131,127 - 96,853,385 9.43%
2020 9,139,672 9,139,672 - 96,755,907 9.45%
2019 8,567,465 8,567,465 - 90,665,386 9.45%
2018 7,862,807 7,862,807 - 87,947,886 8.94%
2017 7,654,501 7,654,501 - 85,610,198 8.94%
2016 7,543,219 7,543,219 - 84,237,577 8.95%
2015 7,272,880 7,272,880 - 81,269,880 8.95%
IPERS - Combined
109
CITY OF AMES, IOWA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST TEN FISCAL YEARS
100
*Prior year amounts of covered payroll were changed to comply with GASB Statement No. 82, Pension Issues-an amendment of GASB
Statements No. 67, No. 68, and No. 73.
In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding
year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table.
See Notes to Required Supplementary Information
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability 2.536032%2.565791%2.675493%2.677595%2.663532%2.719769%2.651310%2.649945%2.696727%2.684406%
City's proportionate share of the net pension liability 15,880,608$ 14,408,725$ 6,008,465$ 21,356,506$ 17,470,814$ 16,193,599$ 15,549,272$ 16,569,071$ 12,669,610$ 9,730,925$
City's covered payroll*9,165,237$ 8,665,848$ 8,643,628$ 8,435,313$ 8,064,312$ 7,866,170$ 7,506,515$ 7,180,220$ 7,004,314$ 6,855,169$
City's proportionate share of the net pension liability as a
percentage of its covered payroll 173.27%166.27%69.51%253.18%216.64%205.86%207.14%230.76%180.88%141.95%
Plan fiduciary net position as a percentage of the total pension
liability 83.53%84.62%93.62%76.47%79.94%81.07%80.60%78.20%83.04%86.27%
110
CITY OF AMES, IOWA
SCHEDULE OF CITY CONTRIBUTIONS
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST TEN FISCAL YEARS
101
See Notes to Required Supplementary Information
Contributions
in Relation to Contributions
Fiscal Statutorily the Statutorily Contribution City's as a Percentage
Year Required Required Deficiency Covered of Covered
Ended Contribution Contribution (Excess)Payroll Payroll
2024 2,148,157$ 2,148,157$ - 9,331,460$ 23.02%
2023 2,197,536 2,197,536 - 9,165,237 23.98%
2022 2,268,424 2,268,424 - 8,665,848 26.18%
2021 2,200,185 2,200,185 - 8,643,628 25.45%
2020 2,076,217 2,076,217 - 8,435,313 24.61%
2019 2,097,820 2,097,820 - 8,064,312 26.01%
2018 2,030,080 2,030,080 - 7,866,170 25.81%
2017 1,946,357 1,946,357 - 7,506,515 25.93%
2016 1,994,209 1,994,209 - 7,180,220 27.77%
2015 2,150,611 2,150,611 - 7,004,314 30.70%
MFPRSI
111
CITY OF AMES, IOWA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST SEVEN FISCAL YEARS*
102
Notes to schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB No. 75.
Changes of assumptions: Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The
following are the discount rates used each period:
* GASB No. 75 requires ten years of information to be presented in this table. However, until a full ten-year trend is compiled, the City
will present information for those years for which information is available.
See Notes to Required Supplementary Information
City:2024 2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 195,071$ 199,160$ 181,568$ 177,816$ 140,814$ 128,949$ 124,144$
Interest 109,999 105,760 56,886 57,031 74,532 76,772 75,321
Differences between expected and actual experience 2,017,659 - 398,929 - (374,352) - -
Changes in assumptions or other inputs 232,831 (30,021) (99,678) 11,592 746,954 70,173 (51,203)
Benefit payments (283,759) (205,641) (197,042) (197,291) (150,412) (133,691) (97,725)
Net change in total OPEB liability 2,271,801 69,258 340,663 49,148 437,536 142,203 50,537
Total OPEB liability, beginning 2,960,490 2,891,232 2,550,569 2,501,421 2,063,885 1,921,682 1,871,145
Total OPEB liability, ending 5,232,291$ 2,960,490$ 2,891,232$ 2,550,569$ 2,501,421$ 2,063,885$ 1,921,682$
Covered-employee payroll 43,815,520$ 42,863,000$ 41,514,170$ 40,817,000$ 39,532,365$ 37,519,077$ 38,084,243$
Total OPEB liability as a percentage
of covered-employee payroll 11.94%6.91%6.96%6.25%6.33%5.50%5.05%
2017 3.58%2022 3.54%
2018 3.87%2023 3.65%
2019 3.50%2024 3.93%
2020 2.21%
2021 2.16%
112
CITY OF AMES, IOWA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST SEVEN FISCAL YEARS*
103
Notes to schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB No. 75.
Changes of assumptions: Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The
following are the discount rates used each period:
* GASB No. 75 requires ten years of information to be presented in this table. However, until a full ten-year trend is compiled, the City
will present information for those years for which information is available.
See Notes to Required Supplementary Information
Hospital:2024 2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 192,131$ 236,111$ 227,329$ 201,432$ 171,392$ 183,570$ 230,410$
Interest 176,573 103,468 98,212 147,571 188,216 171,689 155,873
Differences between expected and
actual experience (339,409) (59,957) (339,352) (432,129) (480,311) (518,903) 907,372
Changes in assumptions or other inputs 330,835 (629,822) 61,467 349,124 211,750 (208,768) (448,839)
Benefit payments (171,767) (44,963) (135,587) (235,143) (113,258) 57,836 (10,501)
Net change in total OPEB liability 188,363 (395,163) (87,931) 30,855 (22,211) (314,576) 834,315
Total OPEB liability, beginning 3,989,678 4,384,841 4,472,772 4,441,917 4,464,128 4,778,704 3,944,389
Total OPEB liability, ending 4,178,041$ 3,989,678$ 4,384,841$ 4,472,772$ 4,441,917$ 4,464,128$ 4,778,704$
Covered-employee payroll 87,881,713$ 76,610,358$ 73,471,503$ 62,532,773$ 62,732,418$ 61,873,578$ 61,873,578$
Total OPEB liability as a percentage
of covered-employee payroll 4.75%5.21%5.97%7.15%7.08%7.21%7.72%
2017 3.81%2022 2.25%
2018 3.44%2023 4.31%
2019 4.11%2024 4.00%
2020 3.26%
2021 2.12%
113
CITY OF AMES, IOWA
BUDGETARY COMPARISON SCHEDULE
GOVERNMENTAL AND PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
104
See Notes to Required Supplementary Information
Governmental Proprietary Variance -
Funds Funds Total Original Final Actual to
Actual Actual Actual Budget Budget Final
Revenues and other financing sources:
Taxes levied on property 34,567,232$ -$ 34,567,232$ 34,748,203$ 34,748,203$ (180,971)$
Delinquent property taxes (55,430) - (55,430) - - (55,430)
TIF revenues 378,041 - 378,041 386,876 433,876 (55,835)
Other taxes 15,045,185 - 15,045,185 12,801,747 14,475,658 569,527
Licenses and permits 1,480,274 20,700 1,500,974 1,636,190 1,543,975 (43,001)
Use of money and property 4,554,892 38,524,687 43,079,579 13,252,288 19,229,618 23,849,961
Intergovernmental 18,089,631 14,831,380 32,921,011 43,702,621 57,132,943 (24,211,932)
Charges for services 2,376,384 351,171,606 353,547,990 333,854,261 341,390,941 12,157,049
Special assessments 241,098 - 241,098 227,104 231,168 9,930
Miscellaneous 1,202,400 1,351,110 2,553,510 4,594,166 4,635,272 (2,081,762)
Other financing sources 12,791,309 10,322,793 23,114,102 18,903,897 44,047,670 (20,933,568)
Transfers in 19,991,998 2,735,352 22,727,350 18,049,564 23,523,095 (795,745)
Total revenues and other financing sources 110,663,014 418,957,628 529,620,642 482,156,917 541,392,419 (11,771,777)
Expenditures and other financing uses:
General government 3,590,953 - 3,590,953 3,842,069 4,366,215 775,262
Public safety 21,584,723 - 21,584,723 22,512,142 22,410,090 825,367
Public works 8,039,037 - 8,039,037 8,387,469 8,689,041 650,004
Health and social services 1,812,437 - 1,812,437 1,878,514 1,870,954 58,517
Culture and recreation 10,209,175 - 10,209,175 10,478,969 11,007,041 797,866
Community and economic development 3,577,570 - 3,577,570 4,505,175 8,984,765 5,407,195
Debt service 13,111,307 - 13,111,307 12,979,018 12,979,459 (131,848)
Capital outlay 25,666,664 - 25,666,664 30,462,733 73,325,634 47,658,970
Total governmental expenditures 87,591,866 - 87,591,866 95,046,089 143,633,199 56,041,333
Business-type expenditures - 355,224,229 355,224,229 362,826,390 420,370,021 65,145,792
Total expenditures and other financing uses 87,591,866 355,224,229 442,816,095 457,872,479 564,003,220 121,187,125
Other financing uses 19,018,556 3,708,794 22,727,350 18,049,564 23,523,095 795,745
Total expenditures, other financing uses,
and transfers out 106,610,422 358,933,023 465,543,445 475,922,043 587,526,315 121,982,870
Excess revenues and other financing sources
over (under) expenditures, other financing uses,
and transfers out 4,052,592 60,024,605 64,077,197 6,234,874 (46,133,896) 110,211,093
Fund balances, beginning 77,680,717 1,249,726,113 1,327,406,830 910,668,885 980,267,183 347,139,647
Fund balances, ending 81,733,309$ 1,309,750,718$ 1,391,484,027$ 916,903,759$ 934,133,287$ 457,350,740$
114
CITY OF AMES, IOWA
BUDGETARY COMPARISON SCHEDULE
BUDGET TO GAAP RECONCILIATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
105
See Notes to Required Supplementary Information
Modified
Budget Accrual Budget Accrual
Basis Adjustments Basis Basis Adjustments Basis
Revenues and other financing sources 110,663,014$ (16,336,726)$ 94,326,288$ 418,957,628$ (7,145,019)$ 411,812,609$
Expenditures and other financing uses 106,610,422 (16,283,891) 90,326,531 358,933,023 1,084,229 360,017,252
Excess revenues and other financing sources
over expenditures and other financing uses 4,052,592 (52,835) 3,999,757 60,024,605 (8,229,248) 51,795,357
Fund balances, beginning 77,680,717 1,151,060 78,831,777 1,249,726,113 (396,231,792) 853,494,321
Fund balances, ending 81,733,309$ 1,098,225$ 82,831,534$ 1,309,750,718$ (404,461,040)$ 905,289,678$
Governmental Funds Proprietary Funds
115
CITY OF AMES, IOWA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
106
1.0 Pension Liability
IPERS:
Changes in benefits and terms. There were no significant changes in benefit terms.
Changes in assumptions.
The 2022 valuation incorporated the following refinements after a quadrennial experience study:
Changed mortality assumptions to the PubG-2010 mortality tables with mortality
improvements modeled using Scale MP-2021.
Adjusted retirement rates for Regular members.
Lowered disability rates for Regular members.
Adjusted termination rates for all membership groups.
The 2018 valuation implemented the following refinements as a result of a demographic
assumption study dated June 28, 2018:
Changed mortality assumptions to the RP-2014 mortality tables with mortality
improvements modeled using Scale MP-2017.
Adjusted retirement rates.
Lowered disability rates.
Adjusted the probability of vested Regular member electing to receive a deferred
benefit.
Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements because of a quadrennial experience
study:
Decreased the inflation assumption from 3.00% to 2.60%
Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per year
Decreased the long-term rate of return assumption from 7.50% to 7.00% per year.
Decreased the wage growth and payroll growth assumption from 4.00% to 3.25% per year.
Decreased the salary increase assumption by 0.75%.
MFPRSI:
Changes in benefit terms. There were no significant changes of benefit terms.
Changes in assumptions. The actuarial assumptions used in the July 1, 2023 valuation were based
on the results of an actuarial experience study for the 10-year period ending June 30, 2022. There
were no significant changes of benefit terms.
The 2018 valuation mortality rates were based on RP 2014 Blue Collar Healthy Annuitant table
with males set forward zero years, females set forward two years, and disabled set forward three
years (male only rates), with generational projection of future mortality improvement with 50% of
Scale BB beginning in 2017.
116
CITY OF AMES, IOWA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (continued)
JUNE 30, 2024
107
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed post-retirement morality rates to the RP-2000 Blue Collar Combined
Healthy Mortality Table with males set back two years, females set forward one year, and disabled
individuals set forward one year (male only rates), with no projection of future mortality
improvement.
The 2015 valuation phased in the 1994 Group Annuity Mortality Table for post-retirement
mortality. This resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and
11/12 of the 1994 Group Annuity Mortality Table.
2.0 Budgetary Information
The budgetary comparison is presented as required supplementary information in accordance with
Governmental Accounting Standards Board (GASB) Statement 41 for governments with
significant budgetary perspective differences resulting from not being able to present budgetary
comparisons for the General Fund and each major special revenue fund.
In accordance with the Code of Iowa, the City Council annually adopts a budget on the modified
accrual basis of accounting and follows the public notice and hearing requirements. The annual
budget may be amended during the year utilizing similar statutorily prescribed procedures.
Encumbrances are not recognized on the budget basis and appropriations lapse at the end of the
fiscal year.
Formal and legal budgetary control is based upon nine major classes of expenditures, referred to
as functions, not by fund or fund type. The nine functions are general government, public safety,
public works, health and social services, culture and recreation, community and economic
development, debt service, capital projects, and business-type activities. Expenditures of functions
required to be budgeted include expenditures for the General Fund, special revenue funds, the Debt
Service Fund, the Capital Projects Fund, and the enterprise funds. Although the budget document
presents function expenditures by fund, the legal level of control is at the aggregated function level,
not by fund.
Three budget amendments during the fiscal year increased budgeted expenditures by
$111,604,272. These amendments are reflected in the final budget amounts.
117
108
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118
SUPPLEMENTARYINFORMATION
119
CITY OF AMES, IOWA
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
110
Special revenue funds are used to account for specific revenue sources that are restricted,
committed, or assigned to expenditures for particular purposes.
Local Option Tax Fund - to account for the funds generated by the voter-approved 1% local
option sales tax. Sixty percent is used for property tax relief and forty percent is for community
betterment.
Hotel/Motel Tax Fund - to account for funds generated through the imposition of a hotel/motel
tax. Proceeds are used for community betterment and economic development.
Road Use Tax Fund - to account for the City's share of state gasoline taxes received on a per
capita basis. Funds must be used for a purpose related to the construction or maintenance of
public streets.
Bike Licenses Fund - to account for funds generated by the sale of bike licenses to be used for
bike trails and maps.
Police Forfeiture and Grants Funds - to account for funds generated from the forfeiture of
property because of criminal activities and for government grants received for law enforcement
costs.
Housing Assistance Fund - to account for grant-funded housing assistance programs.
TIF Fund - to account for tax-increment financing revenues on abated debt.
Police and Fire 411 Fund - to account for the funds remaining from the transition to Municipal
Fire and Police Retirement System of Iowa (MFPRSI). Funds may only be used to offset City
contributions to MFPRSI.
Parks and Recreation Programs Fund - to account for revenues used for specific park and
recreation programs and improvements.
Library Donations, Project Share, Public Art Donations, Police and Fire Donations, and Animal
Shelter Donations Funds- to account for donations to be used for specific purposes and
activities.
Community Development Block Grant (CDBG) Fund - to account for funds received from the
U.S. Department of Housing and Urban Development to be used according to the CDBG
program.
120
CITY OF AMES, IOWA
NON-MAJOR GOVERNMENTAL FUNDS (continued)
SPECIAL REVENUE FUNDS
111
Developers' Projects Fund - to account for funds received from developers to be used for City
infrastructure.
Economic Development and Loans Fund - to account for funds from block grants and funds to
be loaned to businesses to increase development in the City.
Federal Relief Funds – to account for funds received from emergency related grants to cover
expenses associated with natural disasters.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes that support the City's programs.
Perpetual Care Fund - to account for principal amounts received for perpetual care. The
investment earnings are recorded in the General Fund and are used to maintain the cemetery.
Furman Aquatic Center Endowment Fund - to account for a donation to cover future operating
expenditures, fund future repairs and enhancements, and to replace equipment at the aquatic
center.
121
CITY OF AMES, IOWA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
112
Non-Major Furman Total
Special Aquatic Non-Major
Revenue Perpetual Center Governmental
Funds Care Endowment Funds
ASSETS
Cash and cash equivalents 6,693,983$ 44,017$ 239,902$ 6,977,902$
Investments 24,551,888 1,094,873 879,773 26,526,534
Accrued interest receivable 10,538 - 4,255 14,793
Accounts receivable, net 972 1,691 - 2,663
Intergovernmental receivable 2,167,859 - - 2,167,859
Loans receivable 922 - - 922
Due from other funds 1,949,414 - - 1,949,414
Inventories 203,029 - - 203,029
Property held for resale 808,136 - - 808,136
Prepaid items 12,297 - - 12,297
Long-term loans receivable 311 - - 311
Total assets 36,399,349$ 1,140,581$ 1,123,930$ 38,663,860$
LIABILITIES
Accounts payable 674,799$ -$ -$ 674,799$
Accrued payroll 90,521 - - 90,521
Retainage payable 550,543 - - 550,543
Customer deposits 667,289 - - 667,289
Intergovernmental payable 9,958 - - 9,958
Due to other funds 1,089,151 31,321 - 1,120,472
Total liabilities 3,082,261 31,321 - 3,113,582
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants 201,318 - - 201,318
Total deferred inflows of resources 201,318 - - 201,318
FUND BALANCES
Nonspendable 215,326 1,109,260 1,000,000 2,324,586
Restricted 25,528,523 - 123,930 25,652,453
Committed 7,371,921 - - 7,371,921
Total fund balances 33,115,770 1,109,260 1,123,930 35,348,960
Total liabilities, deferred inflows of resources,
and fund balances 36,399,349$ 1,140,581$ 1,123,930$ 38,663,860$
Permanent Funds
122
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
113
Non-Major Furman Total
Special Aquatic Non-Major
Revenue Perpetual Center Governmental
Funds Care Endowment Funds
REVENUES
Taxes 15,173,609$ -$ -$ 15,173,609$
Intergovernmental 12,034,966 - - 12,034,966
Charges for services - 24,451 - 24,451
Investment income 132,620 - 57,051 189,671
Miscellaneous 160,845 - - 160,845
Total revenues 27,502,040 24,451 57,051 27,583,542
EXPENDITURES
Current:
General government 531,308 - - 531,308
Public safety 276,110 - - 276,110
Public works 6,922,670 - - 6,922,670
Health and social services 1,812,435 - - 1,812,435
Culture and recreation 729,973 - 28,889 758,862
Community and economic development 2,478,888 - - 2,478,888
Capital outlay 6,338,900 - - 6,338,900
Total expenditures 19,090,284 - 28,889 19,119,173
Excess of revenues over expenditures 8,411,756 24,451 28,162 8,464,369
OTHER FINANCING SOURCES (USES)
Transfers in 477,559 - - 477,559
Transfers out (9,593,619) - - (9,593,619)
Total other financing sources (uses)(9,116,060) - - (9,116,060)
Net change in fund balance (704,304) 24,451 28,162 (651,691)
Fund balances, beginning 33,820,074 1,084,809 1,095,768 36,000,651
Fund balances, ending 33,115,770$ 1,109,260$ 1,123,930$ 35,348,960$
Permanent Funds
123
CITY OF AMES, IOWA
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
114
Local Hotel/Police Police Animal
Option Motel Road Bike Forfeiture & Fire Shelter Housing
Tax Tax Use Tax Licenses & Grants Donations Donations Assistance CDBG
ASSETS
Cash and cash equivalents 2,235,677$ 314,913$ 1,756,092$ 2,210$ 36,322$ 2,272$ 45,249$ 87,567$ -$
Investments 8,199,945 1,154,693 6,440,699 7,816 132,875 8,418 166,245 321,216 -
Accrued interest receivable - - - - - - 800 - -
Intergovernmental receivable 1,082,347 - 755,834 - 3,661 - - 9,419 111,598
Loans receivable - - - - - - - - 922
Due from other funds 38,483 626,522 1,129,880 - 16 168 - 1,284 -
Inventories - - 203,029 - - - - - -
Property held for resale - - - - - - - - 808,136
Prepaid items - - 11,180 - - - - - 160
Long-term loans receivable - - - - - - - - 311
Total assets 11,556,452$ 2,096,128$ 10,296,714$ 10,026$ 172,874$ 10,858$ 212,294$ 419,486$ 921,127$
LIABILITIES
Accounts payable 205,421$ 73,934$ 328,390$ -$ 2,066$ 1,045$ 3,045$ -$ 959$
Accrued payroll 4,272 - 82,128 - 975 - - 339 -
Retainage payable - - 27,228 - - - - - -
Intergovernmental payable - - 2,163 - - - 1,738 - 17
Due to other funds 653,531 89,593 229,448 - - - 64,496 2,280 45,613
Total liabilities 863,224 163,527 669,357 - 3,041 1,045 69,279 2,619 46,589
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants - - - - - 1,318 - - -
Total deferred inflows of resources - - - - - 1,318 - - -
FUND BALANCES
Nonspendable - - 214,209 - - - - - 160
Restricted 10,693,228 1,932,601 9,413,148 - 169,833 8,495 143,015 - 874,378
Committed - - - 10,026 - - - 416,867 -
Total fund balances 10,693,228 1,932,601 9,627,357 10,026 169,833 8,495 143,015 416,867 874,538
Total liabilities, deferred inflows
of resources, and fund balances
11,556,452$ 2,096,128$ 10,296,714$ 10,026$ 172,874$ 10,858$ 212,294$ 419,486$ 921,127$
124
CITY OF AMES, IOWA
COMBINING BALANCE SHEET (continued)
NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
115
Total
Non-Major
Parks &Federal Economic Special
Police Recreation Relief Library Project Public Art Developers'Development Revenue
& Fire Programs Funds Donations Share Donations Projects & Loans TIF Funds
ASSETS
Cash and cash equivalents 3,329$ 48,945$ 1,399,658$ 114,395$ 6,515$ 825$ 198,989$ 117,275$ 323,750$ 6,693,983$
Investments 12,476 179,773 5,133,890 433,198 10,823 3,157 729,462 429,891 1,187,311 24,551,888
Accrued interest receivable 89 1,595 - 1,960 - - 197 - 5,897 10,538
Accounts receivable, net - 300 - - 672 - - - - 972
Intergovernmental receivable - 205,000 - - - - - - - 2,167,859
Loans receivable - - - - - - - - - 922
Due from other funds - - 153,061 - - - - - - 1,949,414
Inventories - - - - - - - - - 203,029
Property held for resale - - - - - - - - - 808,136
Prepaid items - - - 957 - - - - - 12,297
Long-term loans receivable - - - - - - - - - 311
Total assets 15,894$ 435,613$ 6,686,609$ 550,510$ 18,010$ 3,982$ 928,648$ 547,166$ 1,516,958$ 36,399,349
LIABILITIES
Accounts payable -$ 6,230$ 6,152$ 32,457$ -$ -$ 15,100$ -$ -$ 674,799$
Accrued payroll - - 1,645 1,162 - - - - - 90,521
Retainage payable - - 523,315 - - - - - - 550,543
Customer deposits - - - - - - 667,289 - - 667,289
Intergovernmental payable - - - 6,040 - - - - - 9,958
Due to other funds - - 4,190 - - - - - - 1,089,151
Total liabilities - 6,230 535,302 39,659 - - 682,389 - - 3,082,261
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants - 200,000 - - - - - - - 201,318
Total deferred inflows of resources - 200,000 - - - - - - - 201,318
FUND BALANCES
Nonspendable - - - 957 - - - - - 215,326
Restricted 15,894 - - 509,894 4,820 - 246,259 - 1,516,958 25,528,523
Committed - 229,383 6,151,307 - 13,190 3,982 - 547,166 - 7,371,921
Total fund balances 15,894 229,383 6,151,307 510,851 18,010 3,982 246,259 547,166 1,516,958 33,115,770
Total liabilities, deferred inflows
of resources, and fund balances 15,894$ 435,613$ 6,686,609$ 550,510$ 18,010$ 3,982$ 928,648$ 547,166$ 1,516,958$ 36,399,349$
125
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
116
Local Hotel/Police Police Animal
Option Motel Road Bike Forfeiture & Fire Shelter Housing
Tax Tax Use Tax Licenses & Grants Donations Donations Assistance CDBG
REVENUES
Taxes 12,033,283$ 2,762,285$ -$ -$ -$ -$ -$ -$ -$
Intergovernmental - - 9,396,097 - 110,490 4,538 94,756 318,430 282,241
Investment income - - - - - - 10,554 - 38
Miscellaneous - - 19,134 - - 32,523 - - 93,034
Total revenues 12,033,283 2,762,285 9,415,231 - 110,490 37,061 105,310 318,430 375,313
EXPENDITURES
Current:
General government 291,830 157,662 - - - - - 81,816 -
Public safety - - - - 110,345 - 165,765 - -
Public works - - 6,861,506 - - 61,164 - - -
Health and social services 1,790,480 - - - - - - - -
Culture and recreation 318,263 2,500 - - - - - - -
Community and economic
development - 1,703,716 28,031 - - - - - 342,274
Capital outlay 1,516,529 - 2,064,179 - - - - - -
Total expenditures 3,917,102 1,863,878 8,953,716 - 110,345 61,164 165,765 81,816 342,274
Excess (deficiency) of revenues
over (under) expenditures 8,116,181 898,407 461,515 - 145 (24,103) (60,455) 236,614 33,039
OTHER FINANCING SOURCES
(USES)
Transfers in 158,003 - - - - - - - -
Transfers out (7,359,970) (400,496) - - - - - - -
Total other financing sources
(uses)(7,201,967) (400,496) - - - - - - -
Net change in fund balances 914,214 497,911 461,515 - 145 (24,103) (60,455) 236,614 33,039
Fund balances, beginning 9,779,014 1,434,690 9,165,842 10,026 169,688 32,598 203,470 180,253 841,499
Fund balances, ending 10,693,228$ 1,932,601$ 9,627,357$ 10,026$ 169,833$ 8,495$ 143,015$ 416,867$ 874,538$
126
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued)
NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
117
Total
Non-Major
Parks &Federal Economic Special
Police Recreation Relief Library Project Public Art Developers'Development Revenue
& Fire Programs Funds Donations Share Donations Projects & Loans TIF Funds
REVENUES
Taxes -$ -$ -$ -$ -$ -$ -$ -$ 378,041$ 15,173,609$
Intergovernmental - 68,039 1,260,420 448,815 23,109 - - 28,031 - 12,034,966
Investment income 3,442 7,730 - 22,911 - - 2,605 - 85,340 132,620
Miscellaneous - - - 26 - - 16,128 - - 160,845
Total revenues 3,442 75,769 1,260,420 471,752 23,109 - 18,733 28,031 463,381 27,502,040
EXPENDITURES
Current:
General government - - - - - - - - - 531,308
Public safety - - - - - - - - - 276,110
Public works - - - - - - - - - 6,922,670
Health and social services - - - - 21,955 - - - - 1,812,435
Culture and recreation - 36,643 - 372,567 - - - - - 729,973
Community and economic
development - - - - - - - 28,031 376,836 2,478,888
Capital outlay - 203,166 2,555,026 - - - - - - 6,338,900
Total expenditures - 239,809 2,555,026 372,567 21,955 - - 28,031 376,836 19,090,284
Excess (deficiency) of revenues
over (under) expenditures 3,442 (164,040) (1,294,606) 99,185 1,154 - 18,733 - 86,545 8,411,756
OTHER FINANCING SOURCES
(USES)
Transfers in - 277,620 41,936 - - - - - - 477,559
Transfers out (55,000) (27,620) (1,415,483) - - - - - (335,050) (9,593,619)
Total other financing sources
(uses)(55,000) 250,000 (1,373,547) - - - - - (335,050) (9,116,060)
Net change in fund balances (51,558) 85,960 (2,668,153) 99,185 1,154 - 18,733 - (248,505) (704,304)
Fund balances, beginning 67,452 143,423 8,819,460 411,666 16,856 3,982 227,526 547,166 1,765,463 33,820,074
Fund balances, ending 15,894$ 229,383$ 6,151,307$ 510,851$ 18,010$ 3,982$ 246,259$ 547,166$ 1,516,958$ 33,115,770$
127
CITY OF AMES, IOWA
NON-MAJOR ENTERPRISE FUNDS
118
Enterprise funds are used to report activities for which a fee is charged to external users for goods or
services.
Airport Fund – to account for the operations of the Ames Municipal Airport.
Parking Lot Fund - to account for the operation of parking meters on streets and in designated
parking lots.
Transit Fund - to account for operations of transit services.
Storm Water Utility Fund - to account for the fees paid by residents for the maintenance of the
City's storm sewer system.
Ames/Iowa State University (ISU) Ice Arena Fund - to account for the operations of a
recreational ice facility, which is jointly operated by the City and ISU.
Homewood Golf Course Fund - to account for the operations of a nine-hole golf course.
Resource Recovery Fund - to account for the operation of the City-owned resource recovery
plant.
128
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2024
119
Total
Storm Ames / ISU Homewood Non-Major
Water Ice Golf Resource Enterprise
Airport Parking Transit Utility Arena Course Recovery Funds
ASSETS
Current assets:
Cash and cash equivalents 745,951$ 296,163$ 5,130,702$ 1,712,526$ 79,325$ 156,254$ 189,444$ 8,310,365$
Investments 2,219,650 1,084,498 18,814,345 6,281,369 287,997 570,583 694,289 29,952,731
Accrued interest receivable 12,128 5,228 89,941 29,937 1,612 2,660 3,486 144,992
Accounts receivable, net 36,679 9,338 79,174 223,211 54,130 - 293,300 695,832
Lease receivable - current 65,293 - - - - - - 65,293
Due from other funds 6,856 6,420 910 28,534 2,274 1,465 92,967 139,426
Intergovernmental receivable 749,907 - 1,328,972 175 - - 464,081 2,543,135
Inventories - 18,979 382,669 - 3,375 2,108 - 407,131
Prepaid items 4,868 - 107,076 - - - - 111,944
Total current assets 3,841,332 1,420,626 25,933,789 8,275,752 428,713 733,070 1,737,567 42,370,849
Noncurrent assets:
Net pension asset 7,918 - - - - - - 7,918
Capital assets:
Land 1,384,118 910,547 41,500 733,383 - 193,250 531,517 3,794,315
Land improvements 12,415,723 623,538 1,892,550 11,461,922 147,898 127,581 172,379 26,841,591
Buildings 4,978,610 - 26,658,363 - 1,870,329 21,053 11,384,597 44,912,952
Equipment 16,920 - 40,173,320 16,868 325,105 5,700 7,986,735 48,524,648
Lease assets - - - - - 52,316 - 52,316
Subscription based IT assets - - 16,975 - - - - 16,975
Construction in progress 814,448 - 1,075,861 5,726 12,500 - - 1,908,535
Less accumulated depreciation/amortization (10,352,097) (595,763) (38,604,015) (871,960) (1,785,553) (174,758) (16,718,376) (69,102,522)
Lease receivable - long term 1,193,407 - - - - - - 1,193,407
Total noncurrent assets 10,459,047 938,322 31,254,554 11,345,939 570,279 225,142 3,356,852 58,150,135
Total assets 14,300,379 2,358,948 57,188,343 19,621,691 998,992 958,212 5,094,419 100,520,984
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 1,466 26,279 408,779 20,728 8,929 7,163 78,727 552,071
Deferred outflows related to pensions 298 80,410 1,648,216 28,710 34,976 24,602 246,896 2,064,108
Total deferred outflows of resources 1,764 106,689 2,056,995 49,438 43,905 31,765 325,623 2,616,179
129
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION (continued)
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2024
120
LIABILITIES
Current liabilities:
Accounts payable 9,959$ 4,091$ 894,789$ 265,558$ 14,296$ 11,385$ 134,065$ 1,334,143$
Accrued payroll 78 9,075 201,976 6,100 2,568 4,666 4,002 228,465
Accrued compensated absences 259 2,900 31,066 2,159 419 492 4,385 41,680
Accrued other post-employment benefits 196 2,582 47,439 2,117 990 800 7,610 61,734
Due to other funds 1,452 24,618 78,591 69,884 3,176 3,227 143,997 324,945
Retainage payable 34,605 - 62,022 8,553 - - - 105,180
Accrued interest 1,499 - - - - - 449 1,948
Lease liabilities - - - - - 14,135 - 14,135
Subscription based IT asset liability - - 5,720 - - - - 5,720
Intergovernmental payable 1,223 423 10,266 1,579 1,207 3,329 6,376 24,403
Accrued landfill post-closure costs - - - - - - 15,788 15,788
Bonds payable, net 46,774 - - - - - 118,891 165,665
Total current liabilities 96,045 43,689 1,331,869 355,950 22,656 38,034 435,563 2,323,806
Noncurrent liabilities:
Accrued compensated absences 6,912 49,141 572,176 30,777 7,179 6,169 62,422 734,776
Accrued other post-employment benefits 1,660 47,774 614,873 35,961 14,103 11,184 146,838 872,393
Net pension liability - 282,298 4,200,331 90,018 114,253 54,195 701,879 5,442,974
Accrued landfill post-closure costs - - - - - - 69,725 69,725
Lease liabilities - - - - - 7,259 - 7,259
Subscription based IT asset liability - - 2,917 - - - - 2,917
Bonds payable, net 557,591 - - - - - - 557,591
Total noncurrent liabilities 566,163 379,213 5,390,297 156,756 135,535 78,807 980,864 7,687,635
Total liabilities 662,208 422,902 6,722,166 512,706 158,191 116,841 1,416,427 10,011,441
DEFERRED INFLOWS OF RESOURCES
Deferred charge on refunding - - - - - - 4,868 4,868
Deferred inflow related to leases 1,228,246 - - - - - - 1,228,246
Deferred inflows related to OPEB - 3,548 29,026 2,469 773 590 11,239 47,645
Deferred inflows related to pensions 289 - - 9,053 2,395 - - 11,737
1,228,535 3,548 29,026 11,522 3,168 590 16,107 1,292,496
NET POSITION
Net investment in capital assets 8,618,752 938,322 31,183,895 11,337,386 570,279 203,748 3,233,093 56,085,475
Restricted 7,918 - - - - - - 7,918
Unrestricted 3,784,730 1,100,865 21,310,251 7,809,515 311,259 668,798 754,415 35,739,833
Total net position 12,411,400$ 2,039,187$ 52,494,146$ 19,146,901$ 881,538$ 872,546$ 3,987,508$ 91,833,226$
130
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
121
Total
Storm Ames / ISU Homewood Non-Major
Water Ice Golf Resource Enterprise
Airport Parking Transit Utility Arena Course Recovery Funds
Operating revenues:
Charges for services 327,291$ 862,948$ 7,943,781$ 1,990,013$ 524,805$ 529,749$ 4,354,177$ 16,532,764$
Operating expenses:
Cost of goods and services 254,190 856,673 11,498,155 1,445,586 672,349 318,365 4,634,602 19,679,920
Administration - - 2,631,094 - - - 142,415 2,773,509
Depreciation 531,233 2,645 3,095,891 170,352 95,945 16,323 438,555 4,350,944
Total operating expenses 785,423 859,318 17,225,140 1,615,938 768,294 334,688 5,215,572 26,804,373
Operating income (loss)(458,132) 3,630 (9,281,359) 374,075 (243,489) 195,061 (861,395) (10,271,609)
Non-operating revenues (expenses):
Intergovernmental 37,247 - 5,429,671 - - - - 5,466,918
Reimbursements 7,400 200 59,740 80,000 - - - 147,340
Investment income 174,904 69,877 1,064,228 407,848 20,063 31,038 36,852 1,804,810
Interest revenue (expense)(17,458) - (310) - - (589) 12,263 (6,094)
Gain on disposal of capital assets - - 23,246 - - - - 23,246
Miscellaneous - 1,022 38,702 - 4,419 1,150 2,282 47,575
Total non-operating revenues 202,093 71,099 6,615,277 487,848 24,482 31,599 51,397 7,483,795
Income (loss) before capital
contributions and transfers (256,039) 74,729 (2,666,082) 861,923 (219,007) 226,660 (809,998) (2,787,814)
Capital contributions 698,918 - 1,161,276 - 40,000 - - 1,900,194
Transfers in - 5,863 2,097,005 - 40,000 - 592,484 2,735,352
Transfers out - - - (676,913) - - - (676,913)
Change in net position 442,879 80,592 592,199 185,010 (139,007) 226,660 (217,514) 1,170,819
Net position, beginning 11,968,521 1,958,595 51,901,947 18,961,891 1,020,545 645,886 4,205,022 90,662,407
Net position, ending 12,411,400$ 2,039,187$ 52,494,146$ 19,146,901$ 881,538$ 872,546$ 3,987,508$ 91,833,226$
131
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
122
Total
Storm Ames / ISU Homewood Non-Major
Water Ice Golf Resource Enterprise
Airport Parking Transit Utility Arena Course Recovery Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 290,724$ 861,262$ 9,942,801$ 1,993,524$ 494,671$ 533,690$ 4,329,149$ 18,445,821$
Payments to suppliers (153,849) (124,703) (4,378,670) (607,737) (425,486) (103,831) (2,205,202) (7,999,478)
Payments to employees (44,652) (563,389) (10,179,337) (478,984) (205,576) (175,288) (1,774,698) (13,421,924)
Receipts to other funds for services provided (46,226) (194,625) (719,813) (199,464) (49,195) (43,926) (906,413) (2,159,662)
Net cash provided by (used for) operating activities 45,997 (21,455) (5,335,019) 707,339 (185,586) 210,645 (557,164) (5,135,243)
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating grants 37,247 - 5,429,671 - - - - 5,466,918
Reimbursements 7,400 200 59,740 80,000 - - - 147,340
Miscellaneous income - 1,022 38,700 - 4,419 1,149 2,283 47,573
Transfers in - 5,863 2,097,005 - 40,000 - 592,484 2,735,352
Transfers out - - - (676,913) - - - (676,913)
Net cash provided by (used for) non-capital financing
activities 44,647 7,085 7,625,116 (596,913) 44,419 1,149 594,767 7,720,270
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (813,986) - (1,425,042) (87,490) (89,168) (13,203) (8,014) (2,436,903)
Proceeds from the sale of capital assets - - 23,246 - - - - 23,246
Principal paid on capital debt (45,000) - - - - - (136,168) (181,168)
Interest paid on capital debt (19,119) - - - - - (11,235) (30,354)
Interest paid on leases - - (310) - - (589) - (899)
Capital contributions 182,441 - 1,161,276 - 40,000 - - 1,383,717
Net cash (used for) capital and related
financing activities (695,664) - (240,830) (87,490) (49,168) (13,792) (155,417) (1,242,361)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (2,542,080) (1,242,035) (21,547,367) (7,193,819) (329,832) (653,467) (795,143) (34,303,743)
Proceeds from sale of investments 2,945,588 1,218,224 19,458,371 6,976,439 467,548 481,212 874,966 32,422,348
Interest on investments 172,034 68,452 1,028,937 397,086 19,969 29,759 36,093 1,752,330
Net cash provided by (used for) investing activities 575,542 44,641 (1,060,059) 179,706 157,685 (142,496) 115,916 (129,065)
Net increase (decrease) in cash and cash equivalents (29,478) 30,271 989,208 202,642 (32,650) 55,506 (1,898) 1,213,601
Cash and cash equivalents, beginning 775,429 265,892 4,141,494 1,509,884 111,975 100,748 191,342 7,096,764
Cash and cash equivalents, ending 745,951$ 296,163$ 5,130,702$ 1,712,526$ 79,325$ 156,254$ 189,444$ 8,310,365$
132
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS (continued)
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
123
Total
Storm Ames / ISU Homewood Non-Major
Water Ice Golf Resource Enterprise
Airport Parking Transit Utility Arena Course Recovery Funds
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)(458,132)$ 3,630$ (9,281,359)$ 374,075$ (243,489)$ 195,061$ (861,395)$ (10,271,609)$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation expense 531,233 2,645 3,095,891 170,352 95,945 16,323 438,555 4,350,944
Change in accounts receivable (17,157) 156 (28,606) (11,088) (27,891) 3,972 (88,309) (168,923)
Change in leases receivable 74,981 - - - - - - 74,981
Change in due from other funds (6,856) 3,708 51,632 8,678 (2,243) (31) 71,346 126,234
Change in intergovernmental receivable 26,741 2,821 1,975,994 5,921 - - (8,065) 2,003,412
Change in inventories - 9,262 (15,127) - (1,971) 199 - (7,637)
Change in prepaid items (4,218) - (87,832) 806 - - 290 (90,954)
Change in deferred outflows of resources (1,616) (37,118) (978,769) (23,849) (10,549) (19,155) (133,417) (1,204,473)
Change in accounts payable (20,944) (675) (954,524) 205,592 2,363 (1,223) 22,951 (746,460)
Change in accrued payroll (186) (1,391) (9,315) (391) 154 (288) 2,058 (9,359)
Change in accrued compensated absences 711 (16,879) 145,951 (9,782) (2,146) 243 2,444 120,542
Change in due to other funds (591) (270) 14,569 (22,906) 152 325 (2,039) (10,760)
Changes in retainage payable 34,605 - 52,828 (2,372) - - - 85,061
Changes in intergovernmental payable 1,223 (171) (2,703) 184 (1,866) 806 (89,355) (91,882)
Changes accrued landfill post-closure costs - - - - - - 1,929 1,929
Changes in unearned revenue (2,268) (8,371) - - - - - (10,639)
Changes post-employment benefits 1,568 20,673 379,799 16,948 7,929 6,406 60,930 494,253
Changes in pension liability 2,354 32,737 599,524 24,463 9,895 9,783 97,332 776,088
Changes in deferred inflows of resources (115,451) (32,212) (292,972) (29,292) (11,869) (1,776) (72,419) (555,991)
Total adjustments 504,129 (25,085) 3,946,340 333,264 57,903 15,584 304,231 5,136,366
Net cash provided by (used for) operating activities 45,997$ (21,455)$ (5,335,019)$ 707,339$ (185,586)$ 210,645$ (557,164)$ (5,135,243)$
Schedule of non-cash capital and related financing activities:
Capital asset contributions 516,477$ -$ -$ -$ -$ -$ -$ 516,477$
133
CITY OF AMES, IOWA
INTERNAL SERVICE FUNDS
124
Internal service funds are used to account for services provided to other departments or agencies
of the government, or to other governments on a cost-reimbursement basis.
Fleet Services Fund - to account for capital equipment other than those accounted for in other
funds. A central garage is used, and appropriate charges are made to other City departments for
maintenance and replacement.
Information Technology Fund - to account for all information technology services provided to
City departments.
Printing Services – This fund is used to account for the revenues and expenses of the City’s
printing and messenger services.
Risk Management Fund - to account for the self-insured workers' compensation insurance and
all other insurance premiums and claims payments, other than for health insurance.
Health Insurance Fund - to account for self-insured health insurance claims payments and stop-
loss premiums.
134
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2024
125
Total
Internal
Fleet Information Printing Risk Health Service
Services Technology Services Management Insurance Funds
ASSETS
Current assets:
Cash and cash equivalents 3,082,668$ 788,798$ -$ 846,260$ 1,793,207$ 6,510,933$
Investments 11,306,434 2,893,797 - 3,103,933 6,576,731 23,880,895
Accrued interest receivable 52,976 14,138 - 14,922 30,574 112,610
Accounts receivable, net 41,330 - - 13,724 62,254 117,308
Due from other funds 383,390 17,329 - - 82 400,801
Intergovernmental receivable 4,106 34,658 - - - 38,764
Inventories 101,207 - - - - 101,207
Prepaid items 5,612 144,444 - - - 150,056
Total current assets 14,977,723 3,893,164 - 3,978,839 8,462,848 31,312,574
Noncurrent assets:
Capital assets:
Land improvements - 192,433 - - - 192,433
Buildings 1,148,632 - - - - 1,148,632
Equipment 22,000,054 2,839,653 - - - 24,839,707
Subscription based IT assets - 501,230 - - - 501,230
Less accumulated depreciation/amortization (12,172,518) (2,429,675) - - - (14,602,193)
Total noncurrent assets 10,976,168 1,103,641 - - - 12,079,809
Total assets 25,953,891 4,996,805 - 3,978,839 8,462,848 43,392,383
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 48,453 47,753 - 6,341 7,773 110,320
Deferred outflows related to pensions 133,187 127,381 - 19,324 20,566 300,458
Total deferred outflows of resources 181,640 175,134 - 25,665 28,339 410,778
LIABILITIES
Current liabilities:
Accounts payable 182,123$ 8,159$ -$ 20,917$ 168,026$ 379,225$
Accrued payroll 16,386 1,124 - - 594 18,104
Accrued compensated absences 3,014 4,661 - 778 453 8,906
Accrued other post-employment benefits 4,248 4,478 - 766 823 10,315
Subscription based IT asset liability - 163,604 - - - 163,604
Due to other funds 30,409 12,639 - 2,183 10,450 55,681
Claims payable - - - 1,509,712 611,721 2,121,433
Intergovernmental payable 32,429 - - - - 32,429
Total current liabilities 268,609 194,665 - 1,534,356 792,067 2,789,697
Noncurrent liabilities:
Accrued compensated absences 49,629 87,983 - 8,753 5,109 151,474
Accrued other post-employment benefits 97,953 90,785 - 8,825 12,819 210,382
Subscription based IT asset liability - 10,013 - - - 10,013
Net pension liability 397,957 326,345 - 45,472 61,517 831,291
Total noncurrent liabilities 545,539 515,126 - 63,050 79,445 1,203,160
Total liabilities 814,148 709,791 - 1,597,406 871,512 3,992,857
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 8,459 7,232 - 310 811 16,812
Deferred inflows related to pensions - - - 19,877 3,497 23,374
Total deferred inflows of resources 8,459 7,232 - 20,187 4,308 40,186
NET POSITION
Net investment in capital assets 10,976,168 1,103,641 - - - 12,079,809
Unrestricted 14,336,756 3,351,275 - 2,386,911 7,615,367 27,690,309
Total net position 25,312,924$ 4,454,916$ -$ 2,386,911$ 7,615,367$ 39,770,118$
135
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
126
Total
Internal
Fleet Information Printing Risk Health Service
Services Technology Services Management Insurance Funds
Operating revenues:
Charges for services 4,829,699$ 3,413,760$ -$ 3,522,231$ 12,851,908$ 24,617,598$
Operating expenses:
Cost of goods and services 2,871,010 1,999,526 - 3,515,690 12,747,665 21,133,891
Depreciation 1,627,510 393,330 - - - 2,020,840
Total operating expenses 4,498,520 2,392,856 - 3,515,690 12,747,665 23,154,731
Operating income 331,179 1,020,904 - 6,541 104,243 1,462,867
Non-operating revenues (expenses):
Investment income 721,342 142,262 - 120,959 398,230 1,382,793
Interest (expense)- (8,872) - - - (8,872)
Gain (loss) on disposal of capital assets 94,073 (23,076) - - - 70,997
Miscellaneous 373 3,186 3,465 2,000 - 9,024
Total non-operating revenues 815,788 113,500 3,465 122,959 398,230 1,453,942
Income before transfers 1,146,967 1,134,404 3,465 129,500 502,473 2,916,809
Capital contributions 1,871,287 - - - - 1,871,287
Transfers in - 46,199 - - - 46,199
Transfers out (46,199) - - - - (46,199)
Change in net position 2,972,055 1,180,603 3,465 129,500 502,473 4,788,096
Net position, beginning 22,340,869 3,274,313 (3,465) 2,257,411 7,112,894 34,982,022
Net position, ending 25,312,924$ 4,454,916$ -$ 2,386,911$ 7,615,367$ 39,770,118$
136
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
127
Total
Internal
Fleet Information Printing Risk Health Service
Services Technology Services Management Insurance Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,829,081$ 3,458,798$ 65,274$ 3,523,691$ 13,055,166$ 24,932,010$
Payments to suppliers (1,542,638) (575,030) 23,952 (3,129,593) (12,417,565) (17,640,874)
Payments to employees (1,004,660) (983,941) (3,465) (157,150) (178,613) (2,327,829)
Payments/receipts to other funds for services provided (385,774) (659,723) (89,226) (7,010) (10,180) (1,151,913)
Net cash provided by (used for) operating activities 1,896,009 1,240,104 (3,465) 229,938 448,808 3,811,394
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Miscellaneous income 373 3,186 3,465 2,000 - 9,024
Transfers in - 46,199 - - - 46,199
Transfers out (46,199) - - - - (46,199)
Net cash provided by (used for) non-capital
financing activities (45,826) 49,385 3,465 2,000 - 9,024
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,017,372) (905,521) - - - (2,922,893)
Interest paid on leases/subscriptions - (8,872) - - - (8,872)
Proceeds from the sale of capital assets 76,540 - - - - 76,540
Net cash used for capital and related financing
activities (1,940,832) (914,393) - - - (2,855,225)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (12,948,837) (3,314,159) - (3,554,819) (7,532,085) (27,349,900)
Proceeds from sale of investments 12,717,442 2,977,544 - 3,336,689 7,044,931 26,076,606
Interest on investments 706,796 137,482 - 116,170 390,021 1,350,469
Net cash provided by (used for) investing activities 475,401 (199,133) - (101,960) (97,133) 77,175
Net increase in cash and cash equivalents 384,752 175,963 - 129,978 351,675 1,042,368
Cash and cash equivalents, beginning 2,697,916 612,835 - 716,282 1,441,532 5,468,565
Cash and cash equivalents, ending 3,082,668$ 788,798$ -$ 846,260$ 1,793,207$ 6,510,933$
137
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS (continued)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
128
Total
Internal
Fleet Information Printing Risk Health Service
Services Technology Services Management Insurance Funds
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income 331,179$ 1,020,904$ -$ 6,541$ 104,243$ 1,462,867$
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities:
Depreciation expense 1,627,510 393,330 - - - 2,020,840
Change in accounts receivable (2,812) 59 - (100) 203,340 200,487
Change in due from other funds (20,773) 48,232 64,587 1,560 (82) 93,524
Change in intergovernmental receivable 22,967 (3,253) 687 - - 20,401
Change in inventories (8,849) 12,853 25,608 - - 29,612
Change in prepaid items (5,612) (144,444) - - - (150,056)
Change in deferred outflows of resources (65,139) (72,612) 582 (8,549) (9,514) (155,232)
Change in accounts payable 7,393 (91,172) (1,656) (1,808) (45,404) (132,647)
Change in accrued payroll (1,382) 1,124 - - 594 336
Change in accrued compensated absences (880) 12,086 (14,765) (318) 1,198 (2,679)
Change in due to other funds 9,928 1,118 (89,226) 1,231 11 (76,938)
Change in claims payable - - - 226,954 192,829 419,783
Change in intergovernmental payable (35,954) (210) - - (3,003) (39,167)
Change in post-employment benefits 34,009 35,849 (1,176) 6,134 6,588 81,404
Change in pension liability 54,591 26,948 13,874 8,643 10,131 114,187
Increase in deferred inflows of resources (50,167) (708) (1,980) (10,350) (12,123) (75,328)
Total adjustments 1,564,830 219,200 (3,465) 223,397 344,565 2,348,527
Net cash provided (used for) by operating activities 1,896,009$ 1,240,104$ (3,465)$ 229,938$ 448,808$ 3,811,394$
Schedule of non-cash capital and related financing activities:
Capital asset contributions 1,871,287$ -$ -$ -$ -$ 1,871,287$
Capital asset trade ins 23,466 - - - - 23,466
138
STATISTICAL SECTION
139
CITY OF AMES, IOWA
STATISTICAL SECTION
130
This part of the City's Annual Comprehensive 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 government's overall financial health.
Contents Page
Financial Trends 131
These schedules contain trend information to help the reader understand
how the City's financial performance and well-being have changed over
time.
Revenue Capacity 137
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
Debt Capacity 141
These schedules present information to help the reader assess the affordability
of the City's current level of outstanding debt and the City's ability to issue
additional debt in the future.
Demographic and Economic Information 147
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place.
Operating Information 150
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.
140
CITY OF AMES, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
131
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets 120,231,602$ 129,469,743$ 137,632,652$ 141,703,409$ 144,730,839$ 148,292,299$ 163,993,058$ 156,680,795$ 164,358,181$ 175,545,873$
Restricted 19,525,973 19,116,323 20,842,946 21,714,454 22,260,410 23,978,574 26,517,909 39,812,571 33,350,851 34,641,621
Unrestricted (2,573,072) 871,100 783,394 1,139,151 3,346,885 3,029,850 1,614,087 6,880,565 21,023,018 24,596,176
Total governmental activities 137,184,503 149,457,166 159,258,992 164,557,014 170,338,134 175,300,723 192,125,054 203,373,931 218,732,050 234,783,670
Business-type activities
Net investment in capital assets 303,949,791 317,734,901 320,823,796 308,134,898 311,786,131 320,199,338 331,818,082 347,429,640 344,255,162 348,355,842
Restricted 1,027,652 2,262,200 2,425,524 2,458,169 2,554,924 30,006,410 21,349,489 10,993,096 2,694,534 3,514,189
Unrestricted 261,830,409 258,217,652 304,183,289 353,749,237 382,923,270 364,718,214 468,798,691 464,823,787 519,114,482 566,470,292
Total business-type activities 566,807,852 578,214,753 627,432,609 664,342,304 697,264,325 714,923,962 821,966,262 823,246,523 866,064,178 918,340,323
Primary government
Net investment in capital assets 424,181,393 447,204,644 458,456,448 449,838,307 456,516,970 468,491,637 495,811,140 504,110,435 508,613,343 523,901,715
Restricted 20,553,625 21,378,523 23,268,470 24,172,623 24,815,334 53,984,984 47,867,398 50,805,667 36,045,385 38,155,810
Unrestricted 259,257,337 259,088,752 304,966,683 354,888,388 386,270,155 367,748,064 470,412,778 471,704,352 540,137,500 591,066,468
Total primary government 703,992,355$ 727,671,919$ 786,691,601$ 828,899,318$ 867,602,459$ 890,224,685$ 1,014,091,316$ 1,026,620,454$ 1,084,796,228$ 1,153,123,993$
141
CITY OF AMES, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
132
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental activities:
General government 4,165,152$ 2,686,082$ 3,136,291$ 4,044,800$ 3,141,379$ 3,304,608$ 3,722,100$ 3,343,575$ 4,195,286 3,678,591$
Public safety 12,730,107 15,524,747 17,292,304 18,202,532 18,951,047 20,956,310 21,464,000 16,610,543 19,606,339 21,310,211
Public works 12,482,265 13,650,452 13,698,162 15,667,469 16,929,643 17,259,469 11,484,497 17,447,329 23,486,400 19,310,601
Health and social services 1,161,242 1,180,361 1,342,880 1,293,038 1,499,781 1,463,008 1,387,924 1,634,556 1,688,515 1,812,403
Culture and recreation 9,857,775 9,770,521 9,872,288 10,989,672 11,059,949 11,257,074 12,452,132 11,306,025 11,819,080 12,415,577
Community and economic development 2,972,753 2,898,115 3,461,393 3,257,359 4,025,768 3,463,620 6,381,948 4,030,738 4,364,534 3,489,478
Interest 1,577,883 1,635,789 1,592,039 1,532,790 1,534,075 1,578,408 1,161,207 1,474,802 1,287,664 1,610,636
Total governmental activities 44,947,177 47,346,067 50,395,357 54,987,660 57,141,642 59,282,497 58,053,808 55,847,568 66,447,818 63,627,497
Business-type activities:
Mary Greeley Medical Center 168,891,942 176,918,607 182,728,675 185,267,383 186,917,186 194,116,951 208,743,252 220,771,985 232,168,581 247,769,583
Electric 53,024,205 54,906,155 58,618,483 60,617,830 62,322,757 58,345,295 59,123,227 62,489,331 66,344,987 63,181,563
Sewer 7,435,226 7,229,003 7,574,949 8,558,520 8,826,479 7,020,822 6,933,018 6,788,649 8,938,924 8,237,076
Water 6,866,001 7,383,824 8,122,396 11,766,957 9,841,869 10,620,259 10,563,721 9,720,409 12,296,648 10,705,954
Airport - - - - - - - 971,080 682,709 799,305
Parking 888,452 900,939 887,679 891,229 975,126 999,414 842,179 757,891 825,546 840,459
Transit 11,859,395 12,216,003 13,208,178 13,794,474 14,004,166 13,842,640 13,624,865 13,663,553 15,344,049 17,182,937
Stormwater 644,411 557,890 1,231,885 420,171 270,883 796,588 662,387 840,274 1,397,657 1,606,163
Ice arena 584,702 605,291 602,774 651,714 650,947 665,247 557,566 540,335 596,755 762,662
Golf course 253,997 243,309 258,459 227,798 254,380 215,211 253,985 266,379 281,547 330,949
Resource recovery 4,577,441 4,320,344 4,619,859 4,485,732 4,478,297 4,493,593 4,709,977 4,500,088 5,209,331 5,172,617
Total business-type activities 255,025,772 265,281,365 277,853,337 286,681,808 288,542,090 291,116,020 306,014,177 321,309,974 344,086,734 356,589,268
Total expenses 299,972,949 312,627,432 328,248,694 341,669,468 345,683,732 350,398,517 364,067,985 377,157,542 410,534,552 420,216,765
Program Revenues
Governmental activities:
Charges for services:
General government 134,239 172,126 203,609 158,792 123,407 116,999 65,793 106,659 163,714 261,278
Public safety 3,652,787 3,345,400 3,768,480 3,421,439 3,476,553 3,865,956 3,306,460 3,406,960 3,835,808 4,020,491
Public works 715,898 277,437 268,565 2,737,534 310,035 314,576 310,887 119,170 62,722 31,634
Culture and recreation 2,029,655 1,939,498 2,135,274 2,131,253 2,158,429 1,414,160 1,497,606 1,879,755 1,838,259 1,929,538
Other activities 23,015 24,615 25,660 21,132 15,082 17,650 17,728 22,680 18,425 4,504
Operating grants and contributions 7,173,301 8,521,814 8,681,507 8,546,037 8,950,597 9,090,602 12,952,426 22,525,675 13,483,090 12,231,556
Capital grants and contributions 1,632,753 6,822,367 6,664,323 3,285,174 3,426,018 3,536,671 10,169,954 1,882,523 6,698,533 6,132,438
Total governmental activities 15,361,648 21,103,257 21,747,418 20,301,361 18,460,121 18,356,614 28,320,854 29,943,422 26,100,551 24,611,439
142
CITY OF AMES, IOWA
CHANGES IN NET POSITION (continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
133
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Business-type activities:
Charges for services
Mary Greeley Medical Center 184,201,460 181,534,863 189,944,553 194,988,247 192,530,036 194,363,177 210,825,315 221,854,322 228,820,061 254,224,892
Electric 56,636,062 58,511,422 64,339,637 68,660,541 68,342,980 64,882,140 64,127,039 67,655,268 69,947,197 64,739,189
Sewer 8,267,051 8,370,811 8,856,136 9,175,876 9,172,812 7,754,405 8,775,009 9,027,049 10,008,845 10,113,400
Water 9,584,813 9,987,307 10,502,276 10,620,863 10,414,170 11,448,309 12,824,209 11,959,469 13,679,655 13,540,505
Airport - - - - - - - 244,473 196,590 327,291
Parking 891,983 925,177 899,705 829,993 1,011,601 797,454 677,293 952,298 787,312 862,948
Transit 5,814,552 6,337,415 6,576,578 6,746,369 6,803,540 6,735,543 6,552,915 7,062,349 7,559,823 7,943,781
Stormwater 1,215,233 1,241,840 1,700,529 1,817,030 1,842,228 1,852,740 1,484,479 1,890,675 1,966,491 1,990,013
Ice arena 532,001 544,300 481,831 504,884 475,197 444,262 382,917 529,289 548,860 524,805
Golf course 248,853 268,440 191,186 184,601 179,367 150,549 232,826 348,492 450,887 529,749
Resource recovery 3,687,927 3,031,997 3,314,210 2,719,456 2,879,813 3,019,801 3,645,649 4,299,454 4,291,005 4,354,177
Operating grants and contributions 3,161,366 3,405,067 5,062,412 4,961,244 4,437,834 8,118,261 15,629,698 15,205,764 7,233,367 5,870,307
Capital grants and contributions 3,304,381 1,474,384 4,752,319 1,728,763 3,097,169 2,014,199 3,581,879 8,366,793 14,010,493 3,470,229
Total business-type activities 277,545,682 275,633,023 296,621,372 302,937,867 301,186,747 301,580,840 328,739,228 349,395,695 359,500,586 368,491,286
Total program revenues 292,907,330 296,736,280 318,368,790 323,239,228 319,646,868 319,937,454 357,060,082 379,339,117 385,601,137 393,102,725
Net (expense) / revenue
Governmental activities (29,585,529) (26,242,810) (28,647,939) (34,686,299) (38,681,521) (40,925,883) (29,732,954) (25,904,146) (40,347,267) (39,016,058)
Business-type activities 20,607,251 31,340,007 25,084,530 16,256,059 12,644,657 10,464,820 22,725,051 28,085,721 15,413,852 11,902,018
Total net (expense) / revenue (8,978,278) 5,097,197 (3,563,409) (18,430,240) (26,036,864) (30,461,063) (7,007,903) 2,181,575 (24,933,415) (27,114,040)
143
CITY OF AMES, IOWA
CHANGES IN NET POSITION (continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
134
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General revenues
Governmental activities:
Taxes
Property taxes 25,988,892 27,114,273 28,166,804 29,680,915 31,204,329 32,973,640 34,742,024 35,243,169 35,258,374 36,155,078
Sales taxes 7,996,943 7,831,295 7,711,124 7,681,519 7,991,619 8,470,509 10,351,681 11,231,768 11,513,149 12,033,283
Hotel / motel taxes 2,113,310 2,272,323 2,435,756 2,412,667 2,515,468 1,986,157 1,552,850 2,415,735 2,878,390 2,762,285
Unrestricted grants and contributions 19,108 20,527 20,565 22,146 23,589 54,366 21,126 16,152 5,203 42,236
Investment income 455,916 699,289 211,126 689,377 2,190,478 2,177,884 436,298 (1,582,910) 2,068,855 5,775,114
Other income 133,787 450,340 251,997 1,214,979 759,997 602,881 595,001 58,780 4,347,957 483,821
Gain on disposal of assets 63,228 140,825 118,389 6,039 - - (105,678) 16,239 43,087 94,073
Transfers 117,020 (13,399) (465,996) (1,604,405) (222,839) (376,965) (1,036,017) (965,845) (409,629) (2,278,212)
Total governmental activities 36,888,204 38,515,473 38,449,765 40,103,237 44,462,641 45,888,472 46,557,285 46,433,088 55,705,386 55,067,678
Business-type activities:
Investment income 8,201,914 1,001,761 27,543,163 18,271,065 19,708,701 8,135,196 79,779,629 (40,796,262) 22,739,276 36,730,482
Other income 64,714 40,083 417,879 427,961 337,470 647,271 3,786,658 3,744,892 4,364,976 1,340,362
Gain(loss) on disposal of assets 25,700 - 48,479 12,078 8,354 - (285,055) - (110,078) 25,071
Transfers (117,020) 13,399 465,996 1,604,405 222,839 376,965 1,036,017 965,845 409,629 2,278,212
Total business-type activities 8,175,308 1,055,243 28,475,517 20,315,509 20,277,364 9,159,432 84,317,249 (36,085,525) 27,403,803 40,374,127
Total primary government 45,063,512 39,570,716 66,925,282 60,418,746 64,740,005 55,047,904 130,874,534 10,347,563 83,109,189 95,441,805
Change in net position
Governmental activities 7,302,675 12,272,663 9,801,826 5,416,938 5,781,120 4,962,589 16,824,331 20,528,942 15,358,119 16,051,620
Business-type activities 28,782,559 32,395,250 53,560,047 36,571,568 32,922,021 19,624,252 107,042,300 (7,999,804) 42,817,655 52,276,145
Total change in net position 36,085,234$ 44,667,913$ 63,361,873$ 41,988,506$ 38,703,141$ 24,586,841$ 123,866,631$ 12,529,138$ 58,175,774$ 68,327,765$
144
CITY OF AMES, IOWA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
135
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General fund
Nonspendable 90,538$ 141,713$ 172,236$ 237,381$ 240,990$ 240,978$ 198,600$ 164,992$ 215,405 200,228$
Assigned 296,803 725,077 809,033 580,004 402,312 283,809 548,738 1,835,107 1,822,619 1,238,509
Unassigned 10,332,050 11,137,621 11,270,733 10,824,689 12,119,527 13,768,589 14,843,131 12,329,478 14,301,791 15,607,102
Total general fund 10,719,391$ 12,004,411$ 12,252,002$ 11,642,074$ 12,762,829$ 14,293,376$ 15,590,469$ 14,329,577$ 16,339,815 17,045,839$
All other governmental funds
Nonspendable 2,007,044 2,023,387 2,059,985 2,038,896 2,081,395 2,118,765 2,113,189 3,075,380 3,043,874 2,348,586
Restricted 31,882,923 30,000,397 31,507,537 32,769,654 35,581,189 43,100,229 45,804,577 57,406,305 50,409,425 54,463,867
Committed 1,397,635 2,013,730 1,978,585 1,988,318 2,064,956 2,213,310 2,276,719 2,388,405 11,077,465 9,320,586
Assigned - 71,393 - - - - - - - -
Unassigned (1,811,003) (2,479,002) (2,741,760) (1,309,206) (2,483,786) (3,841,578) (6,760,549) (3,188,655) (2,038,802) (347,344)
Total all other governmental
funds 33,476,599$ 31,629,905$ 32,804,347$ 35,487,662$ 37,243,754$ 43,590,726$ 43,433,936$ 59,681,435$ 62,491,962$ 65,785,695$
145
CITY OF AMES, IOWA
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
136
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
REVENUES
Taxes 36,080,369$ 37,207,916$ 38,313,146$ 39,760,873$ 41,716,868$ 43,506,488$ 46,764,902$ 48,890,673$ 49,649,913$ 50,950,647$
Special assessments 362,306 222,895 298,227 564,860 321,318 303,643 244,640 250,101 239,370 241,098
Licenses and permits 2,017,035 1,687,317 2,059,688 1,635,289 1,554,088 1,856,585 1,146,818 1,204,048 1,473,446 1,503,843
Intergovernmental 8,277,965 14,500,743 10,983,498 11,815,543 10,242,731 11,293,897 19,562,865 25,733,276 20,591,860 15,635,958
Charges for services 3,517,164 3,596,467 3,798,813 3,914,432 4,066,129 3,413,036 4,063,867 4,287,041 4,320,337 4,608,223
Fines and forfeitures 138,720 93,652 67,584 65,504 43,614 28,276 29,083 30,690 34,741 40,879
Investment income 404,297 529,364 169,673 530,341 1,598,321 1,579,072 309,365 (1,165,866) 1,632,854 4,369,025
Interest revenue - - - - - - - 23,510 23,424 23,294
Miscellaneous 825,429 852,639 930,506 1,856,014 1,231,347 1,064,583 595,063 348,975 4,347,961 478,627
Total revenues 51,623,285 58,690,993 56,621,135 60,142,856 60,774,416 63,045,580 72,716,603 79,602,448 82,313,906 77,851,594
EXPENDITURES
Current:
General government 3,308,736 2,655,547 3,520,312 3,806,110 2,965,150 3,031,260 3,405,595 3,527,579 4,062,536 3,804,580
Public safety 16,237,949 16,664,555 17,097,771 17,703,682 18,624,774 19,127,916 19,513,236 19,660,747 20,709,711 21,523,561
Public works 5,488,851 5,871,433 5,868,576 6,202,540 7,073,307 6,732,091 7,028,090 7,596,306 8,109,249 8,100,201
Health and social services 1,161,242 1,180,361 1,342,880 1,293,038 1,499,781 1,463,008 1,388,067 1,634,714 1,688,522 1,812,435
Culture and recreation 7,613,063 8,263,043 8,648,567 9,072,955 9,168,122 9,253,898 10,271,228 9,421,839 9,680,746 10,353,626
Community and economic development 2,875,879 2,909,942 3,464,575 3,249,583 4,028,589 3,448,039 6,376,268 4,098,763 4,397,770 3,520,499
Debt service:
Principal 7,364,829 13,142,882 10,481,762 8,657,150 8,862,109 8,973,882 17,879,527 19,221,616 9,217,861 9,611,518
Interest and fiscal charges 1,765,082 1,995,674 2,064,652 2,067,672 2,120,728 2,158,844 2,263,676 2,316,384 2,376,328 2,628,323
Capital outlay 14,294,598 24,428,030 12,119,780 11,983,901 11,432,322 12,147,899 21,961,944 17,863,931 30,404,110 25,664,179
Total expenditures 60,110,229 77,111,467 64,608,875 64,036,631 65,774,882 66,336,837 90,087,631 85,341,879 90,646,833 87,018,922
Excess (deficiency) of revenues
over (under) expenditures (8,486,944) (18,420,474) (7,987,740) (3,893,775) (5,000,466) (3,291,257) (17,371,028) (5,739,431) (8,332,927) (9,167,328)
OTHER FINANCING SOURCES (USES)
Transfers in 9,917,519 13,410,870 10,665,237 10,451,681 10,702,128 10,890,297 13,690,066 14,941,345 13,307,335 16,517,714
Transfers out (9,879,039) (13,474,329) (10,940,973) (12,060,457) (10,924,967) (11,267,262) (14,726,083) (16,002,190) (13,716,964) (16,283,891)
General obligation bonds issued 9,395,000 11,435,000 6,890,605 6,985,000 7,490,000 10,520,000 9,500,000 9,850,000 12,440,000 12,110,000
Premium on general obligation bonds 238,187 901,045 475,349 602,484 610,152 1,025,738 1,249,757 1,283,972 827,311 681,309
Lease financing - - - - - - - - - 141,953
Subscription financing - - - - - - - - 296,010 -
Refunding bonds issued - 5,150,000 2,130,000 3,990,000 - - 7,929,118 9,372,505 - -
Premium on refunding bonds - 436,214 189,555 326,513 - - 861,282 1,280,406 - -
Payment to refunded bond escrow - - - (4,328,059) - - - - - -
Total other financing sources (uses)9,671,667 17,858,800 9,409,773 5,967,162 7,877,313 11,168,773 18,504,140 20,726,038 13,153,692 13,167,085
Net change in fund balances 1,184,723$ (561,674)$ 1,422,033$ 2,073,387$ 2,876,847$ 7,877,516$ 1,133,112$ 14,986,607$ 4,820,765$ 3,999,757$
Debt service as a percentage of
non-capital expenditures 20.0%28.2%24.2%20.1%19.6%19.8%31.4%30.9%17.2%18.5%
146
CITY OF AMES, IOWA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
137
Taxable
Value as a
Fiscal Estimated Percentage of
Year Less:Total Total Actual Estimated
Ended Residential Commercial Industrial Multi-Other Military Tax Taxable Direct Assessed Actual Assessed
June 30,Property Property Property Utilities Residential1 Property1 Exemption Value Tax Rate Value Value
2015 1,420,669,916 791,068,230 125,969,430 18,255,332 - - 2,606,690 2,353,356,218 10.8554 3,604,369,966 65.29%
2016 1,552,353,357 757,802,880 120,629,790 16,686,705 - - 2,514,090 2,444,958,642 10.6294 3,789,598,226 64.52%
2017 1,647,904,615 696,992,705 136,333,800 16,846,075 106,897,191 441,500 2,350,188 2,603,065,698 10.3733 4,052,418,330 64.23%
2018 1,731,394,279 705,942,764 137,021,310 19,179,323 109,617,206 609,200 2,323,334 2,701,440,748 10.3759 4,180,898,134 64.61%
2019 1,909,559,823 794,219,367 153,921,400 19,793,507 174,954,300 - 2,287,220 3,050,161,177 10.0686 4,632,139,435 65.85%
2020 2,019,762,039 823,143,900 157,933,848 22,030,395 215,828,400 - 2,179,804 3,236,518,778 10.0256 4,837,411,018 66.91%
2021 1,984,198,690 781,158,318 139,481,242 22,413,794 187,161,924 - 2,127,948 3,112,286,020 10.1468 5,022,730,334 61.96%
2022 2,076,567,110 819,752,150 140,542,410 20,977,701 201,918,142 - 2,031,644 3,257,725,869 9.8736 5,187,510,467 62.80%
2023 2,107,012,157 925,371,686 152,892,690 20,497,504 195,899,734 - 1,972,380 3,399,701,391 9.8294 5,512,039,832 61.68%
2024 2,308,953,296 924,053,036 156,213,595 19,403,742 - - 1,926,080 3,406,697,589 10.20097 5,541,171,438 61.48%
Source: Story County Auditor
1 Fiscal year 2017 is the first fiscal year to have these classifications.
147
CITY OF AMES, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
138
Total
Total Ames Consoli- Direct &
Fiscal Public Employee Debt Direct School dated Area Overlapping
Year General2 Transit Benefits Service Tax Rate 3 District4 County5 Vocational6 Rates
2015 5.83299 0.65719 0.78331 3.58189 10.85538 14.34759 6.39469 0.65724 32.25490
2016 5.77474 0.65200 0.71216 3.49047 10.62937 14.20276 6.72830 0.67574 32.23617
2017 5.60071 0.64261 0.71908 3.41087 10.37327 14.34101 6.21998 0.72334 31.65760
2018 5.65041 0.65194 0.72660 3.34694 10.37589 14.34129 6.24271 0.67458 31.63447
2019 5.50149 0.63361 0.71534 3.21813 10.06857 14.34179 6.29920 0.69468 31.40424
2020 6.05031 0.62811 0.67923 3.19314 10.55079 14.34142 6.50310 0.65249 32.04780
2021 5.66051 0.63633 0.69970 3.15027 10.14681 14.34107 6.36403 0.63533 31.48724
2022 5.54979 0.60847 0.71802 2.99735 9.87363 14.34470 6.29050 0.67789 31.18672
2023 5.51359 0.59831 0.64337 3.07409 9.82936 14.28616 5.89114 0.69448 30.70114
2024 6.34138 0.06055 - 3.25407 9.65600 13.93640 5.90384 0.74410 30.24034
1 Overlapping rates are those of local and county governments that may apply to property owners within the City of Ames. Not all
overlapping rates apply to all Ames property taxpayers.
2 State law limits the maximum tax rate for the general fund to $8.10 per thousand dollars of assessed valuation.
3 City Council sets the rate.
4 School district board of education sets the rate.
5 Story County board of supervisors, the county and city's assessors board, county agricultural extension board, and county hospital
board set the rate.
6 Area community college sets the rate.
Source: Story County Auditor
Overlapping Rates 1City Direct Rates
148
CITY OF AMES, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
139
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Iowa State University Research Park 67,803,701$ 1 1.99%35,173,530$ 1 1.49%
Barilla America Inc. 49,670,131 2 1.46%32,579,100 2 1.38%
Clinic Building Company, Inc.35,497,425 3 1.04%19,397,610 4 0.82%
Campus Investors IS LLC 34,570,683 4 1.02%31,609,753 3 1.34%
FPA6 University West LLC 25,179,953 5 0.74%
Spirit Realty LP 23,716,140 6 0.70%
Bricktowne Ames LC 21,973,417 7 0.65%
SZ Ames Apartments LLC 21,839,873 8 0.64%
GW Land Holdings LLC 20,447,255 9 0.60%16,479,445 7 0.70%
Dayton Park LLC 20,098,133 10 0.59%
US Bank, NA Trustee 1 19,019,520 5 0.81%
Wal-Mart Stores, Inc.17,100,000 6 0.73%
GPT Ames Owner LLC 15,549,300 8 0.66%
West Towne Condos, LLC 14,398,364 9 0.61%
University West Property Owner LLC 14,194,195 10 0.60%
320,796,711$ 9.43%215,500,817$ 9.14%
1 Formerly North Grand Mall Partners, LLC
Source: Story County Auditor
2024 2015
149
CITY OF AMES, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
140
Fiscal
Year Tax Levied Collections
Ended for the Amount Percentage in Subsequent Amount Percentage
June 30,Fiscal Year Collected of Levy Years Collected of Levy
2015 25,557,159$ 24,772,538$ 96.93%13$ 24,772,551$ 96.93%
2016 26,000,394 25,108,284 96.57%- 25,108,284 96.57%
2017 27,044,391 25,919,190 95.84%- 25,919,190 95.84%
2018 28,137,151 27,044,258 96.12%- 27,044,258 96.12%
2019 29,467,293 28,805,839 97.76%- 28,805,839 97.76%
2020 31,041,345 30,109,340 97.00%- 30,109,340 97.00%
2021 31,838,298 30,756,123 96.60%- 30,756,123 96.60%
2022 32,428,985 31,361,804 96.71%- 31,361,804 96.71%
2023 33,548,230 31,685,079 94.45%- 31,685,079 94.45%
2024 34,833,360 33,922,305 97.38%- 33,922,305 97.38%
Sources: Story County Auditor and City Finance Department
Fiscal Year of the Levy
Collected within the
Total Collections to Date
150
CITY OF AMES, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
141
General Leases, SBITAs and General Leases, SBITAs, and Total
Fiscal Obligation Other Financing Obligation Revenue Notes Other Financing Loans Outstanding Per
Year Bonds 1 Arrangements Bonds1 Bonds1 Payable Arrangments Payable Debt Population3 Capita
2015 61,891,291$ -$ 4,001,571$ 84,078,724$ 122,457$ -$ 14,519,773$ 164,613,816$ 11.77 %58,965 2,792$
2016 66,260,584 - 5,399,300 100,601,136 - - 35,976,370 208,237,390 14.66 58,965 3,532
2017 64,987,720 - 6,534,531 96,160,114 - - 66,093,486 233,775,851 14.35 58,965 3,965
2018 63,331,642 - 5,682,156 91,617,054 - - 66,796,145 227,426,997 12.60 58,965 3,857
2019 62,013,160 - 4,794,742 86,967,258 - - 68,697,475 222,472,635 15.12 58,965 3,773
2020 64,024,953 - 4,219,035 115,821,050 - - 65,182,044 249,247,082 14.17 66,258 3,762
2021 64,930,438 - 3,524,611 108,824,332 - - 57,503,000 234,782,381 12.86 66,427 3,534
2022 65,692,675 64,975 3,575,334 101,662,284 - 1,412,904 54,333,000 226,741,172 10.80 66,427 3,413
2023 68,682,219 600,297 2,903,734 94,335,613 - 2,150,419 60,876,173 229,548,455 10.75 66,427 3,456
2024 70,875,498 489,631 2,208,746 86,801,547 - 2,895,326 66,806,214 230,076,962 11.15 66,427 3,464
1 Presented net of original issuance discounts and premiums and deferred charges
2 Personal income is presented on page 147
3 United States Census Bureau
Income 2
Business-Type Activities
Governmental
Activities
Percentage
of Personal
151
CITY OF AMES, IOWA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
142
1 General bonded debt of both governmental and business-type activities, net of original
issuance discounts and premiums and deferred charges
2. Amount restricted for debt service payments
3 See page 137 for property value data
4 See page 147 for population data
Percentage of
Estimated
General Less: Amounts Actual Assessed
Fiscal Obligation Available in Debt Value of Per
Year Bonds 1 Service Fund2 Total Property3 Capita4
2015 65,892,862$ 594,468$ 65,298,394$ 1.81%1,107
2016 71,659,884 773,472 70,886,412 1.87%1,202
2017 71,522,251 1,173,608 70,348,643 1.74%1,193
2018 69,013,798 987,953 68,025,845 1.63%1,154
2019 66,807,902 928,447 65,879,455 1.42%1,117
2020 68,243,988 1,207,777 67,036,211 1.39%1,012
2021 68,455,049 1,210,217 67,244,832 1.34%1,012
2022 69,268,009 2,090,539 67,177,470 1.29%1,011
2023 71,585,953 2,352,740 69,233,213 1.26%1,042
2024 73,084,244 3,870,709 69,213,535 1.25%1,042
152
CITY OF AMES, IOWA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITES DEBT
AS OF JUNE 30, 2024
143
Amount
Estimated Applicable to
Debt Percentage Primary
Governmental Unit Outstanding Applicable Government
Debt repaid with property taxes:
Ames Community School District 75,375,000$ 98.41%74,176,538$
Gilbert Community School District 21,110,000 51.35%10,839,985
Des Moines Area Community College 1 23,550,000 5.50%1,295,250
Nevada Community School District 7,223,000 0.24%17,335
United Community School District 1,105,000 3.52%38,896
Story County 2,953,932 58.75%1,735,435
Other debt:
Ames Community School District revenue bonds 14,776,000 98.41%14,541,062
Gilbert Community School District revenue bonds 3,923,000 51.35%2,014,461
Des Moines Area Community College revenue bonds - 5.50%-
Nevada Community School District revenue bonds 6,995,000 0.24%16,788
United Community School District revenue bonds 1,840,000 3.52%64,768
Story County 315,757 58.75%185,507
Subtotal, overlapping debt 104,926,025
City direct debt 71,365,129
Total direct and overlapping debt 176,291,154$
1 New jobs training certificates payable primarily from credits and incremental property tax revenue
derived from jobs training program. The certificates are further secured by a back-up levy of general
taxes.
Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of
the city. This schedule estimates the portion of the outstanding debt of those overlapping governments
that is borne by the property taxpayers of the City. This process recognizes that, when considering the
City's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers
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.
Source: Debt outstanding provided by each governmental unit. Applicable percentages calculated based
on assessed value data from the Story County Auditor.
153
CITY OF AMES, IOWA
LEGAL DEBT MARGIN
JUNE 30, 2024
144
Legal debt margin for the fiscal year ended June 30, 2024:
Assessed value 5,541,171,438$
Debt limit (5% of actual value)277,058,572$
Debt applicable to limit:
General obligation bonds 67,035,000
Legal debt margin 210,023,572$
Percentage of net debt margin available 75.80%
Percentage of net debt margin exhausted 24.20%
Percentage of
Net Debt
Outstanding Margin
Year Debt Limit Debt Available
2024 277,058,572$ 67,035,000$ 75.80%
2023 275,601,992 65,175,000 76.35%
2022 259,375,523 62,570,000 75.88%
2021 251,136,517 63,235,000 74.82%
2020 241,870,551 64,305,000 73.41%
2019 231,606,972 63,290,000 72.67%
2018 209,044,907 65,480,000 68.68%
2017 202,620,917 68,230,000 66.33%
2016 189,479,911 68,825,000 63.68%
2015 180,218,498 64,110,000 64.43%
Note: State of Iowa statutory debt limit is 5% of total actual assessed
valuation.
154
CITY OF AMES, IOWA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
145
Less:Net
Fiscal Gross Operating Available
Year Revenues 3 Expenses Revenue Principal Interest Coverage
2015 184,201,460$ 147,149,250$ 37,052,210$ 2,825,000$ 3,803,608$ 5.59
2016 181,534,863 153,761,276 27,773,587 2,890,000 3,735,480 4.19
2017 189,926,814 162,011,472 27,915,342 3,070,000 3,172,934 4.47
2018 194,988,247 164,723,116 30,265,131 3,150,000 3,090,047 4.85
2019 192,530,036 169,574,256 22,955,780 3,235,000 3,004,771 3.68
2020 198,155,472 177,497,057 20,658,415 4,705,000 3,338,470 2.57
2021 210,825,315 183,857,117 26,968,198 5,525,000 3,494,356 2.99
2022 221,854,322 198,072,124 23,782,198 5,665,000 3,357,940 2.64
2023 228,820,061 211,078,882 17,741,179 5,800,000 3,217,196 1.97
2024 254,224,892 226,369,690 27,855,202 6,010,000 3,006,300 3.09
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal Interest Coverage
2015 -$ -$ -$ -$ -$ -
2016 58,511,422 51,059,004 7,452,418 800,000 161,946 7.75
2017 64,339,637 53,697,044 10,642,593 625,000 343,556 10.99
2018 68,660,541 56,603,627 12,056,914 655,000 312,306 12.46
2019 68,342,980 58,076,088 10,266,892 685,000 279,556 10.64
2020 64,882,140 53,445,511 11,436,629 720,000 245,306 11.85
2021 64,127,039 54,062,711 10,064,328 760,000 209,306 10.38
2022 67,655,268 57,070,684 10,584,584 795,000 171,306 10.95
2023 69,947,197 60,435,587 9,511,610 835,000 131,556 9.84
2024 64,739,189 57,284,783 7,454,406 875,000 89,806 7.73
Electric Revenue Bond
Hospital Revenue Bond
Debt Service 1
Debt Service
155
CITY OF AMES, IOWA
PLEDGED-REVENUE COVERAGE (continued)
LAST TEN FISCAL YEARS
146
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal4 Interest Coverage
2015 8,267,051$ 5,334,578$ 2,932,473$ 131,000$ 38,999$ 17.25
2016 8,370,811 4,751,416 3,619,395 134,000 44,520 20.27
2017 8,856,136 5,147,061 3,709,075 169,000 42,951 17.50
2018 9,175,876 5,934,923 3,240,953 172,000 51,001 14.53
2019 9,172,812 6,575,420 2,597,392 414,250 89,827 5.15
2020 7,754,405 5,207,127 2,547,278 415,332 119,105 4.77
2021 8,775,009 5,216,226 3,558,783 410,827 112,402 6.80
2022 9,027,049 5,026,514 4,000,535 434,000 106,493 7.40
2023 10,008,845 6,963,637 3,045,208 443,000 138,584 5.24
2024 10,113,400 6,057,726 4,055,674 934,852 344,417 3.17
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal Interest Coverage
2015 9,584,813$ 5,560,459$ 4,024,354$ -$ 64,982$ -
2016 9,987,307 5,771,458 4,215,849 - 454,561 -
2017 10,502,276 6,141,051 4,361,225 - 857,786 -
2018 10,824,699 6,211,833 4,612,866 2,870,000 1,294,591 1.11
2019 11,121,859 6,917,507 4,204,352 2,927,000 1,287,070 1.00
2020 12,004,634 7,004,160 5,000,474 2,986,000 1,243,815 1.18
2021 12,824,209 7,003,022 5,821,187 2,686,718 1,162,984 1.51
2022 11,959,469 6,271,197 5,688,272 2,736,000 1,000,260 1.52
2023 13,679,655 8,667,969 5,011,686 2,927,000 963,156 1.29
2024 13,540,505 7,041,114 6,499,391 3,329,000 988,916 1.51
1 Debt service payments do not include payments to refund revenue bonds.
2 2013 was the year of issuance. Accordingly no principal payments were scheduled. Further, there
was not any debt outstanding in the previous nine years that was secured by pledged revenues.
3 Prior year gross revenues were restated to accurately reflect operating revenue.
4 2021 contains loan forgiveness for meeting Iowa Finance Authority building standards.
Water Capital Loan Note
Debt Service
Sewer Capital Loan Note
Debt Service 2
156
CITY OF AMES, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
147
Per
Capita
Calendar Personal Personal School Unemployment
Year Population1 Income 1 Income Enrollment2 Rate 3
2015 58,965 23,713 1,398,237,045$ 4,171 2.7%
2016 58,965 24,082 1,419,995,130 4,181 2.4
2017 58,965 27,629 1,629,143,985 4,188 2.4
2018 58,965 30,615 1,805,213,475 4,300 2.0
2019 58,965 24,946 1,470,940,890 4,387 1.6
2020 66,258 26,548 1,759,017,384 4,477 1.9
2021 66,427 27,483 1,825,613,241 4,351 3.7
2022 66,427 31,600 2,099,093,200 4,484 2.2
2023 66,427 32,137 2,134,764,499 4,440 2.5
2024 66,427 31,050 2,062,558,350 4,547 3.0
1 United States Census Bureau
2 Ames School District
3 Iowa Workforce Development
157
CITY OF AMES, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
148
2024 2015
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Iowa State University 18,212 1 31.36% 15,695 1 27.30%
Mary Greeley Medical Center 1,545 2 2.66 1,287 2 2.24
McFarland Clinic, P.C.1,200 3 2.07 650 8 1.13
Danfoss Corp.1 1,052 4 1.81 920 4 1.60
Iowa Department of Transportation 975 5 1.68
City of Ames 972 6 1.67 910 5 1.58
USDA 750 7 1.29 679 7 1.18
Ames Community School District 572 8 0.98 1,226 3 2.13
Hach Chemical 580 9 1.00
Workiva 550 10 0.95 432 10 0.75
Hy-Vee Food Stores 790 6 1.37
Wal-Mart 435 9 0.76
Total 45.47%40.04%
1 Formerly Sauer-Danfoss
Sources: United States Department of Labor, City of Ames, and company inquiries.
158
CITY OF AMES, IOWA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
149
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General government:
Management services 23.25 23.25 24.25 24.25 24.50 24.50 24.50 25.50 25.50 26.50
Finance 40.75 40.75 40.75 40.75 41.00 41.00 41.00 41.00 41.00 41.00
Planning and housing 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Administrative services1 6.50 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Fleet services/facilities 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50
Transit 81.55 84.05 84.05 84.05 84.50 85.50 85.50 85.50 87.75 88.30
Fire/inspections 65.00 65.00 68.00 70.00 71.00 72.00 73.00 74.00 74.00 74.00
Police/animal control/parking 77.65 77.65 79.65 80.65 82.15 83.15 84.60 85.05 85.05 85.05
Library 35.25 35.50 35.75 35.75 36.50 37.00 37.00 37.00 37.50 38.50
Parks and recreation 19.50 19.50 25.00 25.00 25.00 25.00 26.75 27.75 27.75 38.75
Water and pollution control 40.05 40.05 40.30 40.30 40.00 40.00 38.00 38.00 39.00 39.00
Electric 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00
Public works:
Administration 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Engineering 14.00 15.75 15.75 14.75 14.75 14.75 14.75 14.75 14.75 14.75
Resource recovery 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00
Streets 19.00 19.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00
Utility maintenance 11.00 11.00 11.00 11.00 11.00 12.00 13.00 13.00 13.00 13.00
Other 13.00 13.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Hospital 1,050.00 1,071.00 1,067.00 1,082.00 1,086.00 1,117.00 1,143.00 1,168.00 1,222.00 1,208.00
Total 1,610.50 1,636.00 1,642.00 1,660.00 1,667.90 1,703.40 1,732.60 1,761.05 1,818.80 1,818.35
1 Administrative services was formed with employees from the planning and housing, fire/inspections, and public works admininstration divisions.
Source: City Finance Department
Position control register
159
CITY OF AMES, IOWA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
150
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General government:
Number of licenses/permits processed 617 559 714 635 752 561 598 546 547 498
Police:
Physical arrests 1,531 1,362 1,215 1,596 1,480 1,380 778 1,063 1,075 1,043
Parking violations 46,759 50,280 47,272 38,798 32,711 27,278 25,152 27,511 24,173 28,677
Traffic violations 2,981 2,451 2,614 2,834 2,328 2,092 1,667 1,803 2,219 2,813
Fire:
Number of fires 107 126 89 116 80 82 117 93 109 93
Number of ambulance assists 2,464 2,442 2,663 2,646 2,857 2,473 2,064 3,399 3,533 3,552
Inspections 1,205 1,435 1,074 831 501 582 322 535 486 608
Library:
Total circulation 1,255,953 1,304,434 1,280,305 1,222,360 1,220,180 961,602 854,397 1,043,230 994,326 998,192
Library visits 426,608 506,034 523,673 508,918 485,929 336,272 268,927 279,123 317,020 332,355
Parks and recreation:
Total number of participant visits 279,103 293,757 255,227 280,766 281,420 187,725 157,593 200,606 157,896 168,519
Total number of activities 175 187 194 196 200 175 325 806 171 190
Resource recovery:
Tons of refuse processed 50,035 41,646 45,598 37,124 33,173 33,511 40,040 40,040 44,634 44,360
Tipping fee per ton 52.75 52.75 52.75 55.00 55.00 58.75 58.75 62.50 62.50 62.50
Other public works:
Blocks of streets crack sealed 90 66 73 65 81 88 20 87 149 103
Blocks of streets slurry sealed 22 36 33 30 - 56 37 26 -
Blocks of seal coat reconstruction 4 16 - 10 6 - 4 4 3 2
Hospital:
Total admissions 8,298 7,867 8,368 8,510 8,267 8,230 8,082 8,355 8,446 8,473
Average percent of occupancy 50.5%49.3%49.7%50.2%50.6%52.1%53.7%54.5%55.0%57.4%
Electric:
Kilowatt hours produced at plant 278,471,640 243,388,530 244,149,566 222,873,411 167,189,716 176,914,000 245,972,108 304,668,733 303,304,598 327,599,976
Meters in service 26,023 26,232 26,475 27,324 27,348 27,613 27,701 27,735 27,848 27,902
Transit:
Passengers 6,711,665 6,785,479 6,658,027 6,572,065 6,121,023 4,577,482 1,862,274 3,669,894 4,142,196 4,715,514
Total miles driven 1,599,493 1,658,443 1,635,781 1,649,762 1,516,271 1,437,907 1,432,914 1,468,962 1,485,448 1,597,552
Water:
Billion gallons per year pumped 2.022 2.110 2.131 2.245 2.117 2.260 2.359 2.312 2.443 2.407
Utility locates performed 6,615 8,121 7,383 7,113 6,932 7,935 14,152 8,834 8,019 8,716
Water main breaks 19 19 18 42 46 19 29 25 24 28
Wastewater:
Billion gallons per year treated 2.389 2.690 2.427 2.141 2.706 2.291 1.849 2.108 2.100 2.103
Sources: City departments and Mary Greeley Medical Center
160
CITY OF AMES, IOWA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
151
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 11 11 11 11 11 11 11 11 11 11
Fire stations 3 3 3 3 3 3 3 3 3 3
Parks and recreation:
Total number of parks 37 37 36 36 38 38 38 38 40 40
Total number of park acres 1,227 1,227 1,223 1,224 1,230 1,230 1,230 1,215 1,266 1266
Total number of athletic fields 18 18 18 21 21 21 21 21 21 21
Other public works:
Miles of streets 291 291 300 305 305 249 252 252 252 210
Number of traffic signals 67 67 68 69 70 71 76 78 78 78
Number of signs 9,485 9,509 9,854 10,087 10,658 10,876 11,052 11,069 11,206 11,348
Hospital:
Beds in operation 199 199 199 199 199 199 199 199 199 199
Transit:
Buses owned 104 105 104 105 104 89 90 90 92 89
New buses purchased 6 9 5 3 1 - 3 6 9 2
Water:
Miles of water mains 247 254 247 249 250 250 252 253 255 257
Fire hydrants 2,771 2,847 2,906 2,948 2,977 2,995 3,029 3,054 3,087 3,140
Wells 28 28 25 24 25 25 25 25 22 22
Wastewater:
Sanitary sewer miles 204 204 210 211 212 212 213 215 215 218
Stormwater miles 263 271 276 277 278 279 284 284 284 294
Note: No capital asset indicators are available for general government, library, resource recovery, or electric functions.
Sources: City departments and Mary Greeley Medical Center
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162
COMPLIANCE SECTION
163
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Information to Comply with Government Auditing Standards
and Uniform Guidance
June 30, 2024
City of Ames, Iowa
164
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Independent Auditor’s 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
To the Honorable Mayor and
Members of the City Council
City of Ames, Iowa
We have audited, in accordance with 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 (Government Auditing Standards), the financial
statements of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of the City of Ames,
Iowa (City), as of and for the year ended June 30, 2024, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements and have issued our report
thereon dated January 28, 2025. Other auditors audited the financial statements of Mary Greeley
Medical Center (presented as an enterprise fund), as described in our report on the financial
statements. This report does not include the results of the other auditors’ testing of internal control
over financial reporting or compliance and other matters that are reported on separately by those
auditors.
Other auditors also audited the financial statements of the Mary Greeley Medical Center Foundation,
the discretely presented component unit. Those financial statements were not audited in accordance
with Government Auditing Standards, and accordingly, this report does not extend to those financial
statements.
Report on 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) as a basis for designing 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 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.
165
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 or significant deficiencies may exist that were not identified.
Report on 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 financial statements. 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 certain immaterial instances of
noncompliance or other matters which are described in Part IV of the accompanying schedule of
findings and questioned costs.
Comments involving statutory and other legal matters about the City’s operations for the year ended
June 30, 2024 are based exclusively on knowledge obtained from procedures performed during our
audit of the 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 interpretations of those
statutes.
City’s Response to Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the finding identified in our audit and described in the accompanying schedule of findings
and questioned costs. The City’s response was not subjected to the other auditing procedures applied in
the audit of the financial statements and, accordingly, we express no opinion on the response.
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.
Dubuque, Iowa
January 28, 2025
166
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Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance Required by the Uniform Guidance
To the Honorable Mayor and
Members of the City Council
City of Ames, Iowa
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Ames, Iowa’s, (City) compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major
federal programs are identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year
ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described
in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City’s compliance with
the compliance requirements referred to above.
167
Other Matter – Federal Expenditures Not Included in the Compliance Audit
The City‘s basic financial statements include the operations of the Mary Greeley Medical Center
(presented as an enterprise fund), which expended federal awards which are not included in the City‘s
schedule of expenditures of federal awards during the year ended June 30, 2024. Our compliance audit,
described in the “Opinion on Each Major Federal Program” does not include the operations of the Mary
Greeley Medical Center because the Medical Center engaged other auditors to perform an audit of
compliance.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the City’s compliance with the requirements of each major federal program
as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of the City’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
168
Report on 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 a 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
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
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 Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Dubuque, Iowa
January 28, 2025
169
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Commerce
Economic Development Cluster
Direct program
Investments for Public Works and Economic
Development Facilities 11.300 47,925$
U.S. Department of Housing and Urban Development
Direct program
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218 317,528
Pass-through program from
Iowa Economic Development Authority
Community Development Block Grants/State's Program
and Non-entitlement Grants in Hawaii 14.228 08-CVE-011 53,569
Direct program
Home Investment Partnership Program 14.239 9,419
Total U.S. Department of Housing and Urban Development 380,516
U.S. Department of Justice
Direct program
Edward Byrne Memorial Justice Assistance Grant Program 16.738 14,216
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2,480
Total U.S. Department of Justice 16,696
U.S. Department of Transportation
Direct program
Airport Improvement Program 20.106 662,590
Airport Improvement Program 20.106 69,998
732,588
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
170
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Transportation (continued)
Pass-through program from
Iowa Department of Transportation
Highway Planning and Construction 20.205 24MPO-AAMPO 152,629$
Highway Planning and Construction 20.205 TAP-U-0155(711)--27-85
894,403
Highway Planning and Construction 20.205 TAP-U-0155(709)--8I-85
22-TAP-110 416,522
Highway Planning and Construction 20.205 STP-U-0155(690)--70-85
STP-U-0155(697)--70-85 62,104
1,525,658
Metropolitan Transportation Planning and State
and Non-Metropolitan Planning and Research 20.505 24MPO-AAMPO 40,248
Federal Transit Cluster
Direct program
Federal Transit - Formula Grants 20.507 3,273,398
Federal Transit - Formula Grants 20.507 649,611
Pass-through program from
Iowa Department of Transportation
Federal Transit - Formula Grants 20.507 IA-2023-013-01-00 98
3,923,107
Direct program
Buses and Bus Facilities Formula, Competitive and
Low or No Emissions Programs 20.526 105,299
Total Federal Transit Cluster 4,028,406
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
171
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Transportation (continued)
Transit Services Programs Cluster
Pass-through program from
Iowa Department of Transportation
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 2022-008-00 135,372$
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 2020-001-01-FFY20-SFY21 249,917
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006868 46,080
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006867 94,061
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006868 37,306
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-01; 00005213 59,531
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-01; 00005246 48,966
Total Transit Services Programs Cluster 671,233
Highway Safety Cluster
Pass-through program from
Iowa Department of Public Safety
State and Community Highway Safety 20.600 PAP 23-402-M0PS
Task 00-02-00 1,500
State and Community Highway Safety 20.600 PAP 23-402-M0PT
Task 01-00-00 3,335
State and Community Highway Safety 20.600 PAP 402-PT-2024
Task 05-40-01 14,773
State and Community Highway Safety 20.600 PAP 402-AL-2024
Task 02-40-01 6,242
25,850
National Priority Safety Programs 20.616 PAP 23-405d-M6OT
Task 01-00-00 2,355
Total Highway Safety Cluster 28,205
Total U.S. Department of Transportation 7,026,338
U.S. Department of the Treasury
Direct Program
COVID-19 - Coronavirus State and Local Fiscal
Recovery Funds 21.027 1,260,420
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
172
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
National Endowment for the Humanities (NEH)
Pass-through program from
Iowa Department of Cultural Affairs
Promotion of the Arts Partnership Agreements 45.025 1903747-61-22, 00032319 2,750$
U.S. Department of the Environmental Protection Agency
Pass-through program from
Iowa Finance Authority
Capitalization Grants for Clean Water
State Revolving Funds 66.458 unknown 1,401,221
Iowa Finance Authority
Capitalization Grants for Drinking Water
State Revolving Funds 66.468 unknown 6,938,446
Total U.S. Department of the Environmental Protection Agency 8,339,667
Total Federal Financial Assistance 17,074,312$
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
173
City of Ames, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Ames, Iowa, (City) under programs of the federal government for the year ended June 30, 2024.
The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not
intended to and does not present the financial position, changes in net position or fund balance, or cash flows of
the City.
Note 2 - Summary of Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting – when they
become a demand on current available financial resources in the governmental fund types and on the full
accrual basis of accounting – when expenditures are incurred in the proprietary fund types. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The City received federal awards both
directly from federal agencies and indirectly through pass-through entities. Federal financial assistance provided
to a subrecipient is treated as an expenditure when it is paid to the subrecipient. There was no assistance
provided to subrecipients during the year ended June 30, 2024.
Note 3 - Indirect Cost Rate
The City has not elected to use the 10% de minimis cost rate.
174
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
Part I: Summary of the Independent Auditor’s Results:
Financial Statements
Type of auditor’s report issued Unmodified
Internal control over financial reporting
Material weakness identified No
Significant deficiencies identified not
considered to be material weaknesses None reported
Noncompliance material to financial statements noted No
Federal Awards
Internal control over major programs
Material weakness identified No
Significant deficiencies identified not
considered to be material weaknesses 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 Uniform Guidance 2 CFR 200.516 (a): No
Identification of major programs:
Federal Financial
Name of Federal Program or Cluster Assistance Listing
COVID-19 -Coronavirus State and Local Fiscal Recovery Funds 21.027
Capitalization Grants for Drinking Water State Revolving Funds 66.468
Dollar threshold used to distinguish
between Type A and Type B programs $750,000
Auditee qualified as low-risk auditee No
175
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
Part II: Financial Statement Findings
There were no findings to report.
Part III: Federal Award Findings and Questioned Costs
There were no findings and questioned costs to report.
Part IV: Other Findings Related to Required Statutory Reporting
2024-IA-A Certified Budget: Disbursements during year ended June 30, 2024 exceeded the amounts
budgeted in the debt service function. Chapter 384.20 of the Code of Iowa states, in part, “Public
monies may not be expended or encumbered except under an annual or continuing
appropriation.”
Recommendation – The budget should have been amended in accordance with Chapter 384.18 of
the Code of Iowa before disbursements were allowed to exceed the budget.
Response – The budget will be amended in the future, if applicable.
Conclusion – Response accepted.
2024-IA-B Questionable Expenditures: We noted no expenditures that we believe may fail to meet the
requirements of public purpose as defined in an Attorney General’s opinion dated April 25, 1979.
2024-IA-C Travel Expense: No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
2024-IA-D Business Transactions: Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection Transaction Description Amount
Gary Milam, Employee, Brother is
owner of Milam Concrete & Construction Services $ 450
According to Chapter 362.5 of the Code of Iowa, an officer or employee of a City shall not have an
interest, direct or indirect, in a contract with that City. The provision does not apply to
transactions that do not exceed a cumulative total purchase price of $6,000 in a fiscal year or to
contracts made by a city upon competitive bid.
176
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
Part IV: Other Findings Related to Required Statutory Reporting (continued)
2024-IA-E Restricted Donor Activity: No transactions were noted between the City, City officials, City
employees and restricted donors in compliance with Chapter 68B of the Code of Iowa.
2024-IA-F Bond Coverage: Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to insure the coverage
is adequate for current operations.
2024-IA-G Council Minutes: No transactions were found that we believe should have been approved in the
Council minutes but were not.
2024-IA-H Deposits and Investments: No instances of noncompliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City’s investment policy were
noted.
2024-IA-I Revenue Bonds: No instances of noncompliance with the provisions of the City’s revenue bond
resolutions were noted.
2024-IA-J Tax Increment Financing – the Special Revenue Tax Increment Financing Fund properly disbursed
payments for TIF loans and rebates. Also, the City properly completed the Tax Increment Debt
Certificate forms to request TIF property taxes.
2024-IA-K Annual Urban Renewal Report – The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1, 2023.
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January 28, 2025
To the Honorable Mayor and
Members of the City Council
City of Ames, Iowa
We have audited the financial statements of the City of Ames, Iowa (City) as of and for the year ended
June 30, 2024, and have issued our report thereon dated January 28, 2025. Professional standards
require that we advise you of the following matters relating to our audit. We did not audit the financial
statements of the Mary Greeley Medical Center (presented as an enterprise fund) or the financial
statements of the discretely presented component unit. Those financial statements were audited by
other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to
the amounts included for the Mary Greeley Medical Center and the discretely presented component
unit is based solely on the reports of the other auditors.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards and our Compliance Audit under the Uniform
Guidance
As communicated in our letter dated June 13, 2024, our responsibility, as described by professional
standards, is to form and express an opinion about whether the financial statements that have been
prepared by management with your oversight are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of America and to
express an opinion on whether the City complied with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on each of
the City’s major federal programs. Our audit of the financial statements and major program
compliance does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of
material misstatement. An audit of financial statements includes consideration of internal control
over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal
control of the City solely for the purpose of determining our audit procedures and not to provide any
assurance concerning such internal control.
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Our responsibility, as prescribed by professional standards as it relates to the audit of the City’s major
federal program compliance, is to express an opinion on the compliance for each of the City’s major
federal programs based on our audit of the types of compliance requirements referred to above. An
audit of major program compliance includes consideration of internal control over compliance with
the types of compliance requirements referred to above as a basis for designing audit procedures
that are appropriate in the circumstances and to test and report on internal control over compliance
in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, as a part of our major program
compliance audit, we considered internal control over compliance for these purposes and not to
provide any assurance on the effectiveness of the the City’s internal control over compliance.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
We have provided our comments regarding internal controls during our audit in our Independent
Auditor’s 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 dated January 28, 2025. We have also provided our comments regarding compliance with
the types of compliance requirements referred to above and internal controls over compliance during
our audit in our Independent Auditor’s Report on Compliance for Each Major Federal Program and
Report on Internal Control Over Compliance Required by the Uniform Guidance dated January 28,
2025.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated
to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the
engagement, if applicable, have complied with all relevant ethical requirements regarding
independence.
Significant Risks Identified
As stated in our auditor’s report, professional standards require us to design our audit to provide
reasonable assurance that the financial statements are free of material misstatement whether caused
by fraud or error. In designing our audit procedures, professional standards require us to evaluate the
financial statements and assess the risk that a material misstatement could occur. Areas that are
potentially more susceptible to misstatements, and thereby require special audit considerations, are
designated as “significant risks.” We have identified the following as significant risks.
Management Override of Controls – Professional standards require auditors to address the possibility of
management overriding controls. Accordingly, we considered as a significant risk that management of
the City may have the ability to override controls that the City has implemented.
Revenue Recognition – We considered revenue recognition as a significant risk due to potential
reporting complexities.
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Capital Assets – We consider capital assets to contain specific risks relating to the number of
transactions inherent within the operations of the City and certain timing of payments related to
retainage.
Significant Estimates – We considered significant estimates related to pension, other postemployment
benefits (OPEB), and self-funded workers’ compensation liabilities and related balances as significant
risks. The pension, OPEB, and self-funded workers’ compensation liabilities calculations are material,
complex, and sensitive estimates. They are also subject to complex financial reporting and disclosure
requirements.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
the significant accounting policies adopted by the City is included in Note 1 to the financial
statements. There have been no initial selection of accounting policies and no changes in significant
accounting policies or their application during 2024. No matters have come to our attention that
would require us, under professional standards, to inform you about (1) the methods used to account
for significant unusual transactions and (2) the effect of significant accounting policies in controversial
or emerging areas for which there is a lack of authoritative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management’s current judgments. Those judgments are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ markedly from
management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are the self-funded
workers’ compensation liabilities, other postemployment benefits liability, and net pension liability.
Management’s estimates of the self-funded workers’ compensation liabilities are based on third-party
administrator's calculations and estimates. We evaluated the key factors and assumptions used to
develop the self-funded workers’ compensation liabilities in determining that they are reasonable in
relation to the financial statements taken as a whole.
Management’s estimate of the total OPEB liability, OPEB related deferred outflow of resources and
deferred inflows of resources and OPEB expense are based on a calculation of actuarially determined
contributions for health insurance benefits. We evaluated the key factors and assumptions used to
develop the OPEB related balances in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management’s estimate of the net pension liability, pension related deferred outflows of resources and
deferred inflows of resources, and pension expense are based on plan level actuarial reports, allocated
to the City using annual employer contributions. We evaluated the key factors and assumptions used to
develop the pension related balances in determining that they are reasonable in relation to the financial
statements taken as a whole.
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Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
City’s financial statements relate to the net pension liability and total OPEB liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance
of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional standards
require us to also communicate the effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole. Uncorrected misstatements or matters underlying those uncorrected
misstatements could potentially cause future-period financial statements to be materially
misstated, even though the uncorrected misstatements are immaterial to the financial statements
currently under audit. There were no uncorrected or corrected missstatements identified as a
result of our audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the financial statements or the auditor’s report. No such
disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report
For purposes of this letter, professional standards require that we communicate any circumstances that
affect the form and content of our auditor’s report. We did not identify any circumstances that affect
the form and content of the auditor’s report.
Representations Requested from Management
We have requested certain written representations from management which are included in the
management representation letter dated January 28, 2025.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no consultations
with other accountants regarding auditing and accounting matters.
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Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating conditions affecting the entity, and operating
plans and strategies that may affect the risks of material misstatement. None of the matters discussed
resulted in a condition to our retention as the City’s auditors.
Other Information Included in the Annual Comprehensive Financial Report
Pursuant to professional standards, our responsibility as auditors for other information, whether
financial or nonfinancial, included in the City’s Annual Comprehensive Financial Report, does not extend
beyond the financial information identified in the audit report, and we are not required to perform any
procedures to corroborate such other information. However, in accordance with such standards, our
responsibility is to read the other information and consider whether a material inconsistency exists
between the other information and the basic financial statements, or the other information otherwise
appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information,
or its manner of presentation, is materially inconsistent with the information, or manner of its
presentation, appearing in the financial statements.
This report is intended solely for the information and use of the Mayor, City Council, and management
of the City and is not intended to be, and should not be, used by anyone other than these specified
parties.
Dubuque, Iowa
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