HomeMy WebLinkAboutA028 - Resolution approving the Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2025ITEM #:30
DATE:02-10-26
DEPT:FIN
SUBJECT:APPROVAL OF ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2025
COUNCIL ACTION FORM
BACKGROUND:
The 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
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 do not 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, 2025, 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 the
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City as of June 30, 2025, 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.
There were no financial statement findings, although the report does note that there
was a related party transaction in excess of the statutory limits. Staff has put additional
measures in place and plans communicate purchasing policy provisions across all
departments.
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, 2025 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):
City of Ames 2025 Governance Letter 21406.pdf
2025 City of Ames ACFR.pdf
City of Ames Mananagement Rep Letter signed.pdf
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eidebailly.com
1545 Associates Dr., Ste. 101 • Dubuque, IA 52002-2299 • T 563.556.1790 • F 563.557.7842 • EOE
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January 28, 2026
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, 2025, and have issued our report thereon dated January 28, 2026. 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 24, 2025, 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 system
of 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 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, 2026. 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 with Each Major Federal Program and
Report on Internal Control Over Compliance Required by the Uniform Guidance dated January 28,
2026.
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.
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. As described in Note 1, the City changed accounting policies to adopt the provisions of
GASB Statement No. 101, Compensated Absences. Accordingly, the accounting change has been
retrospectively applied to the financial statements beginning July 1, 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.
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Accounting Estimates and Related Disclosures
Accounting estimates and related disclosures 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.
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.
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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. As described in Note 4.24 to the financial
statements, due to the adoption of GASB Statement No. 101, Compensated Absences, the city restated
net position as of July 1, 2024. We have included an emphasis of matter in our report regarding these
restatements.
Representations Requested from Management
We have requested certain written representations from management which are included in the
management representation letter dated January 28, 2026.
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.
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.
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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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ANNUAL COMPREHENSIVE
FINANCIAL REPORT
City of Ames, Iowa
for the fiscal year ended June 30, 2025
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Public art is more than decoration; it is a visible measure of a community’s vitality, values, and forward momentum. From striking metal sculptures to intricate fiber works and vibrant acrylic paintings, the artistic expressions that make up Ames’ public art collection invite residents and visitors to pause, reflect, and engage. Art transforms everyday spaces into places of curiosity, conversation, and connection.
Ames is a community filled with creative, fun, whimsical, and thoughtful pieces of public art that captivate the imagination and spark dialogue. Each installation tells a story about the place it occupies, the people who encounter it, and the ideas it represents. Whether playful or profound, public art breaks down barriers, making creativity accessible beyond the walls of galleries and performance spaces. It encourages viewers of all ages and backgrounds to see their environment in new ways and to feel a sense of shared ownership in their community.
A robust collection of public art serves as a signal that a community prioritizes innovation and cultural investment. This is especially fitting for Ames, home to Iowa State University and a hub of research, discovery, and forward-thinking ideas. The same spirit that drives scientific exploration and technological progress also fuels artistic expression. Together, they create a dynamic environment where creativity and problem-solving complement each other.
Public art enhances quality of life and strengthens community identity. It enriches streetscapes, invites tourism, and boosts civic pride. Most importantly, it reflects a community that believes progress is not defined only by numbers and data, but by imagination, expression, and shared experiences that shape a truly vibrant place to live.
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
City of Ames, Iowa
for the fiscal year ended June 30, 2025
AMES PUBLIC ART: Creativity around the Corner
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CITY OF AMES, IOWA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
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, 2025
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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 ............................................................................................29
Statement of Activities .................................................................................................31
Fund Financial Statements:
Balance Sheet – Governmental Funds .........................................................................32
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position ......................................................................................33
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds ..............................................................................................34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities .................35
Statement of Net Position – Proprietary Funds............................................................36
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Funds ...................................................................................................38
Statement of Cash Flows – Proprietary Funds .............................................................39
Statement of Fiduciary Net Position ............................................................................41
Statement of Changes in Fiduciary Net Position .........................................................42
Notes to the Financial Statements ......................................................................................43
Required Supplementary Information:
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) – Iowa
Public Employees' Retirement System ......................................................................103
Schedule of City Contributions – Iowa Public Employees' Retirement System .............104
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) –
Municipal Fire and Police Retirement System of Iowa .............................................105
Schedule of City Contributions – Municipal Fire and Police Retirement System
of Iowa .......................................................................................................................106
Schedule of Changes in Total OPEB Liability and Related Ratios .................................107
Budgetary Comparison Schedule – Governmental and Proprietary Funds .....................109
Budgetary Comparison Schedule – Budget to GAAP Reconciliation .............................110
Notes to the Required Supplementary Information .........................................................111
Combining Fund Financial Statements and Schedules:
Combining Balance Sheet – Non-Major Governmental Funds .......................................117
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Non-Major Governmental Funds ............................................................118
Combining Balance Sheet – Non-Major Special Revenue Funds ...................................119
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CITY OF AMES, IOWA
TABLE OF CONTENTS (continued)
JUNE 30, 2025
ii
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Non-Major Special Revenue Funds.........................................................121
Combining Statement of Net Position – Non-Major Enterprise Funds ...........................124
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Non-Major Enterprise Funds .....................................................................................126
Combining Statement of Cash Flows – Non-Major Enterprise Funds ............................127
Combining Statement of Net Position – Internal Service Funds .....................................130
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds ...............................................................................................131
Combining Statement of Cash Flows – Internal Service Funds ......................................132
STATISTICAL SECTION
Financial Trends:
Net Position by Component .............................................................................................138
Changes in Net Position ...................................................................................................139
Fund Balances of Governmental Funds ...........................................................................142
Changes in Fund Balances of Governmental Funds ........................................................143
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property ............................................144
Property Tax Rates – Direct and Overlapping Governments ..........................................145
Principal Property Taxpayers ...........................................................................................146
Property Tax Levies and Collections ...............................................................................147
Debt Capacity:
Ratios of Outstanding Debt by Type ...............................................................................148
Ratios of General Bonded Debt Outstanding ...................................................................149
Direct and Overlapping Governmental Activities Debt ...................................................150
Legal Debt Margin ...........................................................................................................151
Pledged-Revenue Coverage .............................................................................................152
Demographic and Economic Information:
Demographic and Economic Statistics ............................................................................154
Principal Employers .........................................................................................................155
Operating Information:
Full-Time Equivalent Employees by Function ................................................................156
Operating Indicators by Function ....................................................................................157
Capital Asset Statistics by Function ................................................................................158
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 ....................................162
Independent Auditor’s Report on Compliance for Each Major Federal Program and
Report on Internal Control Over Compliance Required by the Uniform Guidance ........164
Schedule of Expenditures of Federal Awards ........................................................................167
Notes to the Schedule of Expenditures of Federal Awards ...................................................170
Schedule of Findings and Questioned Costs ..........................................................................171
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INTRODUCTORY
SECTION
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January 31, 2026
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, 2025, 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, 2025. 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%, therefore it has risen a little to 3.2%
recently.
Per capita income in the Ames MSA has experienced 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 raise funds for these improvements, staff expect 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 planning the transition from the Resource Recovery System into the new model,
Resource Recovery and Recycling Campus (R3C), where refuse-derived fuel is no longer produced
for the Power Plant. This long-term shift in operations and rate structure is planned to be operational
in July 2027 with Carroll County as the City’s landfill partner. 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. A new city-wide curbside recycling program
will consolidate and transport to recyclers.
As part of the City’s capital planning process, the City Council has identified major initiatives: a new
animal control shelter, the relocation of fire station #2, development of Ontario Park, and construction
of a new indoor recreation facility. 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, 2024. This was the third
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
Program’s requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.
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The City received the GFOA’s Distinguished Budget Presentation Award for its annual budget
document for the fiscal year beginning July 1, 2025. 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 40th 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 the necessary data for this report. Credit is also due
to 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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CITIZENS AMES
CITIZENS
HOSPITAL BOARD
HOSPITAL BOARD
Mary Greeley
Medical Center
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Medical Center
Legal
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City Clerk
City Clerk
City Manager
City Manager
CyRide
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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, 2025
21
CITY OF AMES, IOWA
LIST OF ELECTED AND APPOINTED OFFICIALS
FOR THE YEAR ENDED JUNE 30, 2025
7
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/ Justin Clausen
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
22
8
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23
FINANCIAL
SECTION
24
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10
25
eidebailly.com
1545 Associates Dr., Ste. 101 • Dubuque, IA 52002-2299 • T 563.556.1790 • F 563.557.7842 • EOE
11
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, 2025, 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, 2025, 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 56 percent, 57 percent, and 70 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.
26
12
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. The financial statements of the Mary Greeley Medical Center
Foundation were not audited in accordance with Government Auditing Standards.
Adoption of New Accounting Standard
As discussed in Note 4.24 to the financial statements, the City has adopted the provisions of
Government Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, for the
year ended June 30, 2025. Accordingly, a restatement has been made to the City’s net position as of July
1, 2024, to restate beginning net position. Our opinions are not modified with respect to this matter.
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.
27
13
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.
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 GAAS, 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.
28
14
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
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,
2026, 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, 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 the 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, 2026
29
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
15
Management’s Discussion and Analysis
As management of the City of Ames (City), we offer the residents and other 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, 2025. 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 $1,235,469,229 (net position). Of this
amount, $630,377,180 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 $83,827,522, most of which was attributable to business-
type activities, including $54,078,620 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 $83,621,858, an increase of $790,324 in comparison with the prior year’s balance.
14.48% of this amount ($12,111,015) 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
$14,358,001, or 35.95% of total General Fund expenditures.
The City’s total long-term outstanding debt increased by $11,207,907 during the current fiscal year.
Within the City's business-type activities, revenues exceeded expenses by $69,343,465. 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 $14.800 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
details 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
30
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
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 29-31 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.
31
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
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 32-35 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, 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 36-40 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 41-42 of this report.
32
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
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 43-99 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 103-112 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 117-133 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 $1,235,469,229 at the close of the most recent fiscal year.
The following chart summarizes the government-wide assets, deferred outflows of resources,
liabilities, deferred inflows of resources, and net position of the City.
The largest portion of the City's net position (45.19%) reflects its net investment in capital assets
(e.g., land, buildings, machinery, and infrastructure) less any related outstanding debt that was used
to acquire those assets. The City uses these capital assets to provide a variety of services to its
citizens. Accordingly, these assets are not available for future spending. Although the City's net
investment in capital assets is reported net of related debt, it should be noted that the resources used
2025 2024, as restated 2025 2024, as restated 2025 2024, as restated
Current and other assets 151,022,707$ 145,221,037$ 691,228,611$ 649,677,364$ 842,251,318$ 794,898,401$
Net capital assets 246,686,028 226,814,563 532,284,662 504,185,827 778,970,690 731,000,390
Total assets 397,708,735 372,035,600 1,223,513,273 1,153,863,191 1,621,222,008 1,525,898,791
Deferred outflows of resources 8,715,001 9,165,546 22,876,612 30,052,629 31,591,613 39,218,175
Long-term liabilities outstanding 107,856,772 101,122,403 218,637,597 225,642,039 326,494,369 326,764,442
Other liabilities 10,879,554 8,796,762 35,982,355 35,645,885 46,861,909 44,442,647
Total liabilities 118,736,326 109,919,165 254,619,952 261,287,924 373,356,278 371,207,089
Deferred inflows of resources 39,456,936 37,535,564 4,531,178 4,732,606 43,988,114 42,268,170
Net position:
Net investment in capital
assets 189,320,394 175,545,873 373,859,626 348,355,842 563,180,020 523,901,715
Restricted 40,001,332 34,641,621 1,910,697 3,514,189 41,912,029 38,155,810
Unrestricted 18,908,748 23,558,923 611,468,432 566,025,259 630,377,180 589,584,182
Total net position 248,230,474$ 233,746,417$ 987,238,755$ 917,895,290$ 1,235,469,229$ 1,151,641,707$
Net Position
Governmental Activities Business-Type Activities Total
33
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
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 ($41,912,029 or 3.39%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of $630,377,180 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, 2025 and 2024:
Governmental Activities. During the current fiscal year, net position for governmental activities
increased $14,484,057 for an ending balance of $248,230,474. Taxes are the largest source of
governmental revenue with property taxes of $36,774,390 and local option sales taxes of
$11,838,478 in 2025.
Governmental activity expenses increased $9,125,426 from 2024, or (14.34%). The following chart
shows the expenses and related program revenues for the functions of governmental activities:
- 100 200 300 400 500 600 700 800
Net investment in
capital assets
Restricted Unrestricted
$
M
i
l
l
i
o
n
s
2025
2024, as restated
34
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
20
CITY OF AMES
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
2025 2024, restated 2025 2024, restated 2025 2024, restated
Revenues:
Program revenues
Charges for services 6,086,789$ 6,247,445$ 379,375,966$ 359,150,750$ 385,462,755$ 365,398,195$
Operating grants & contributions 14,310,170 12,231,556 6,961,797 5,870,307 21,271,967 18,101,863
Capital grants & contributions 4,118,793 6,132,438 6,934,152 3,470,229 11,052,945 9,602,667
General revenues
Property taxes 36,774,390 36,155,078 - - 36,774,390 36,155,078
Other taxes 14,866,447 14,795,568 - - 14,866,447 14,795,568
Unrestricted grants & contributions - 42,236 - - - 42,236
Investment earnings 6,016,972 5,775,114 56,494,690 36,730,482 62,511,662 42,505,596
Other 5,442,810 577,894 1,506,203 1,365,433 6,949,013 1,943,327
Total revenues 87,616,371 81,957,329 451,272,808 406,587,201 538,889,179 488,544,530
Expenses:
General government 3,625,698 3,678,591 - - 3,625,698 3,678,591
Public safety 22,400,129 21,310,211 - - 22,400,129 21,310,211
Public works 23,020,648 19,310,601 - - 23,020,648 19,310,601
Health & social services 1,936,265 1,812,403 - - 1,936,265 1,812,403
Culture & recreation 12,496,616 12,415,577 - - 12,496,616 12,415,577
Community & economic development 7,176,726 3,489,478 - - 7,176,726 3,489,478
Interest on long-term debt 2,096,841 1,610,636 - - 2,096,841 1,610,636
Mary Greeley Medical Center - - 264,318,209 247,769,583 264,318,209 247,769,583
Electric - - 67,482,511 63,181,563 67,482,511 63,181,563
Sewer - - 9,196,492 8,237,076 9,196,492 8,237,076
Water - - 14,954,847 10,705,954 14,954,847 10,705,954
Airport - - 731,600 799,305 731,600 799,305
Parking - - 778,488 840,459 778,488 840,459
Transit - - 17,383,248 17,182,937 17,383,248 17,182,937
Stormwater - - 1,753,416 1,606,163 1,753,416 1,606,163
Ames/ISU Ice Arena - - 672,445 762,662 672,445 762,662
Homewood Golf Course - - 361,743 330,949 361,743 330,949
Resource Recovery - - 4,675,735 5,172,617 4,675,735 5,172,617
Total expenses 72,752,923 63,627,497 382,308,734 356,589,268 455,061,657 420,216,765
Increase in net position before
transfers 14,863,448 18,329,832 68,964,074 49,997,933 83,827,522 68,327,765
Transfers (379,391) (2,278,212) 379,391 2,278,212 - -
Increase in net position 14,484,057 16,051,620 69,343,465 52,276,145 83,827,522 68,327,765
Net position, beginning (as
previously reported)233,746,417 218,732,050 917,895,290 866,064,178 1,151,641,707 1,084,796,228
Net position, restatement - (1,037,253) - (445,033) - (1,482,286)
Net position, beginning (as 233,746,417 217,694,797 917,895,290 865,619,145 1,151,641,707 1,083,313,942
restated)
Net position, ending 248,230,474$ 233,746,417$ 987,238,755$ 917,895,290$ 1,235,469,229$ 1,151,641,707$
Governmental Activities Business-Type Activities Total
35
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
21
The following chart shows revenues by source for governmental activities:
Business-Type Activities. The net position for business-type activities increased by $69,343,465,
from 2024. A large portion of this increase is attributable to the hospital’s restricted non-current
assets on investments increasing by $50,675,693. Also, plant and distribution system capital assets
increased by $18,711,021. Much of the increase, $15,373,501, or 82.10%, was in the sewer fund for
the nutrient reduction modifications.
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
36
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
22
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.
The City's governmental funds reported combined fund balances of $83,621,858 at June 30, 2025,
an increase of $790,324 from the prior year. 14.48% of this amount ($12,111,015) 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 ($394,919); 2) legally required to be maintained intact ($2,132,565); 3)
restricted for purposes ($61,267,000); 4) committed for purposes ($6,874,261); or 5) assigned for
purposes ($842,098). The 2024 and 2025 legislative sessions continued the sweeping property tax
reforms adopted in 2023, permanently reshaping Iowa’s municipal property tax framework. These
changes significantly limit revenue growth for cities through levy restrictions, expanded
exemptions, and the elimination of state backfill payments. The City’s tax rate did decrease 1.04%
from $10.20 to $10.09 due to the significant increase in assessed valuations on residential properties.
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 $13,515,903, while total fund balance decreased
by $2,507,164 to $14,538,675. The ending fund balance is 35.95% of the fiscal year expenditures,
exceeding the City's goal of 25% of expenditures. The largest revenue impact was increased interest
earnings and the unrealized gain on investments. The most significant operating expense reduction
was a result of vacant positions in Law Enforcement. The ongoing capital projects that have been
carried forward include Fire Station improvements and equipment, bike trail signage, the Park
Maintenance Facility, Auditorium HVAC system, and other initiatives.
The Capital Projects Fund had an increase of $6,376,920 in fund balance during the fiscal year,
which put the overall fund balance at $32,942,946. Some of the capital projects for the year included
Traffic Intelligent Transportation system, Parks Fitch Indoor Aquatic Center (including a
$4,000,000 donation), Police’s new Animal Control Shelter, as well as annual street maintenance
and improvement. This increase in fund balance is mostly attributable to an increase in capital
project funding from debt issuances of $6 million, a large donation made for our Fitch Indoor
Aquatic Center in the amount of $4 million, and an increase of $1.4 million fines from tax abatement
agreements. The increases were partially offset by increased spending on the above mentioned
capital projects.
The fund balance in the Debt Service Fund is $3,834,328 at the end of the fiscal year, a decrease of
$36,381 from the prior year. This fund balance remained constant due to no large variance in debt
payments from the prior fiscal year to the current fiscal year.
37
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
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, 2025, totaled $973,905,101, of which
61.42% ($598,134,778) is unrestricted. This is a $69,060,457, or 7.63%, increase in restated net
position from last fiscal year’s balance. The net position of the internal service funds is $42,251,723,
a $2,531,542 increase in restated net position. Unrestricted net position accounts for $29,232,536
(69.19%) of the total internal service fund net position balance.
Charges for services for the internal service funds increased 2.82% over the prior year. Cost of goods
and services increased 6.78% due to capital additions reducing cost of goods & services in fleet.
38
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
24
General Fund Budgetary Highlights
Original Budget Compared to Final Budget. There were three amendments to the City's 2025
budget. The first amendment was approved in September 2024, primarily to reflect carryovers of
capital project expenditures from the prior year. The second & third amendments were approved in
April & May of 2025 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
2024 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, 2025, amounts to $778,970,690 (net of accumulated depreciation and
amortization), an increase of $47,970,300 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.
Some of the major capital asset additions include:
$19.6 million in sanitary sewer improvements
$13 million in parks and recreation
$9.5 million in street network improvements
$3.5 million in water system improvements
$2.7 million in airport 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 60-61 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 $158,612,681 in outstanding
bonded debt, as shown in the following chart. Of this amount, $80,538,173 is debt backed by the
full faith and credit of the government and $78,074,508 is revenue bonds issued by proprietary
funds.
2025 2024 2025 2024 2025 2024
Land 18,363,012$ 17,284,601$ 17,787,783$ 16,116,650$ 36,150,795$ 33,401,251$
Other non-depreciable/non-
amortizable assets 760,826 640,326 - - 760,826 640,326
Depreciable/amortizable assets 193,800,780 193,512,103 468,995,431 454,404,226 662,796,211 647,916,329
Construction in progress 33,761,410 15,377,533 45,501,448 33,664,951 79,262,858 49,042,484
Total 246,686,028$ 226,814,563$ 532,284,662$ 504,185,827$ 778,970,690$ 731,000,390$
Governmental Activities Business-Type Activities Total
39
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
25
The City's total debt increased by $11,207,907 (4.94%) 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, 2023, related to the 2024-2025 fiscal year. The current
debt limitation for the City is $328,057,008. 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 84-92 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The following economic factors were considered in developing the fiscal year 2026 budget:
Animal Sheltering and Control activity will have an increase of 1.45 FTEs in anticipation of
a new, larger shelter in fiscal year 2025/2026.
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.
No increase in the resource recovery utility per capita property tax subsidy and no increase
in the per ton tipping fee to garbage haulers.
Electric Utility user rate increased 1.5%, which is estimated to have a net impact on the
median residential customer’s electric bill to be an additional $1.20 per month. This will
help fund the City Council’s plan to reduce carbon emissions by supporting wind power to
our energy portfolio.
A 2.08% increase in property tax rate from $10.09 to $10.30 per $1,000 of taxable
valuation. The increased rate was primarily due to the decrease in State revenue of $298,500
from the prior year.
A modest increase of 2.50% in the amount of the City's support for transit to continue
existing service levels.
Parks and Recreation will have the Fitch Family Indoor Aquatic Center opening, including
two new FTEs: an Aquatics Coordinator and Principal Clerk to staff this new facility.
Water utility user rates increase 3.5% to support operational needs and capital improvement
projects planned for the coming years.
Sanitary Sewer utility user rates increase 5.5% to pay for the operational and capital
improvement costs scheduled in the City’s construction-in-progress.
2025 2024 2025 2024 2025 2024
General obligation bonds, net 78,887,401$ 70,875,498$ 1,650,772$ 2,208,746$ 80,538,173$ 73,084,244$
Revenue bonds - - 78,074,508 86,801,547 78,074,508 86,801,547
Loans payable - - 79,287,231 66,806,214 79,287,231 66,806,214
Total 78,887,401$ 70,875,498$ 159,012,511$ 155,816,507$ 237,899,912$ 226,692,005$
Governmental Activities Business-Type Activities Total
40
CITY OF AMES, IOWA
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
FOR THE YEAR ENDED JUNE 30, 2025
26
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.
41
BASIC FINANCIAL
STATEMENTS
42
28
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43
CITY OF AMES, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
29
Governmental Business-Type Component
Activities Activities Total Unit
ASSETS
Current assets:
Cash and cash equivalents 20,593,917$ 33,020,603$ 53,614,520$ 264,846$
Investments 91,645,013 105,366,780 197,011,793 -
Taxes receivable 131,759 - 131,759 -
Special assessments receivable 191,112 - 191,112 -
Accrued interest receivable 371,593 658,257 1,029,850 -
Accounts receivable, net 655,737 43,760,877 44,416,614 -
Lease receivable 5,088 1,154,999 1,160,087 -
Pledges receivable, net - - - 71,376
Intergovernmental receivable 6,902,015 3,025,607 9,927,622 -
Loans receivable 311 - 311 -
Internal balances (9,241,891) 9,241,891 - -
Inventories 326,219 12,452,791 12,779,010 -
Assets held for resale 602,425 - 602,425 -
Prepaid items 325,761 4,316,780 4,642,541 -
Restricted current assets:
Cash and cash equivalents - 1,544,599 1,544,599 -
Investments - 353,471 353,471 -
Accrued interest receivable - 12,627 12,627 -
Total current assets 112,509,059 214,909,282 327,418,341 336,222
Non-current assets:
Investments - 23,618,793 23,618,793 19,178,261
Succeeding year taxes receivable 37,684,403 - 37,684,403 -
Long-term special assessments receivable 374,246 - 374,246 -
Other assets - 11,148,421 11,148,421 -
Lease receivable 454,999 1,577,331 2,032,330
Non-depreciable assets 52,885,248 63,289,231 116,174,479 -
Depreciable assets, net of accumulated
depreciation & amortization 193,800,780 468,995,431 662,796,211 -
Restricted non-current assets:
Long-term investments - 439,974,784 439,974,784 -
Total non-current assets 285,199,676 1,008,603,991 1,293,803,667 19,178,261
Total assets 397,708,735 1,223,513,273 1,621,222,008 19,514,483
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 3,310,853 3,310,853 -
Deferred outflows related to OPEB 1,293,477 1,898,649 3,192,126 -
Deferred outflows related to pensions 7,421,524 17,667,110 25,088,634 -
Total deferred outflows of resources 8,715,001$ 22,876,612$ 31,591,613$ -$
Primary Government
44
CITY OF AMES, IOWA
STATEMENT OF NET POSITION (continued)
JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
30
Governmental Business-Type Component
Activities Activities Total Unit
LIABILITIES
Current liabilities:
Accounts payable 5,933,976$ 19,333,572$ 25,267,548$ 578,940$
Accrued payroll 319,950 9,949,062 10,269,012 -
Accrued compensated absences 1,145,970 1,219,482 2,365,452 -
Accrued other post-employment benefits 416,705 469,653 886,358 -
Accrued interest payable 233,062 309,731 542,793 -
Retainage payable 1,395,770 2,498,196 3,893,966 -
Customer deposits 1,233,169 1,042,972 2,276,141 -
Intergovernmental payable 573,045 80,697 653,742 -
Claims payable 773,877 2,006,794 2,780,671 -
Loans payable - 4,610,175 4,610,175 -
Lease liabilities 51,893 491,281 543,174 -
Subscription based IT asset liabilities 33,143 732,212 765,355 -
Bonds payable, net 10,119,635 7,918,316 18,037,951 -
Unearned revenue - 291,678 291,678 -
Accrued landfill post-closure costs - 13,918 13,918 -
Total current liabilities 22,230,195 50,967,739 73,197,934 578,940
Non-current liabilities:
Accrued compensated absences 2,737,938 8,658,361 11,396,299 -
Accrued other post-employment benefits 2,242,352 6,216,839 8,459,191 -
Net pension liability 22,689,646 40,442,367 63,132,013 -
Loans payable - 74,677,056 74,677,056 -
Bonds payable, net 68,767,766 71,806,964 140,574,730 -
Lease liabilities - 175,153 175,153 -
Subscription based IT asset liabilities 68,429 1,614,007 1,682,436 -
Accrued landfill post-closure costs - 61,466 61,466 -
Total non-current liabilities 96,506,131 203,652,213 300,158,344 -
Total liabilities 118,736,326 254,619,952 373,356,278 578,940
DEFERRED INFLOWS OF RESOURCES
Succeeding year property taxes 37,684,403 - 37,684,403 -
Deferred charge on refunding 327,232 - 327,232 -
Deferred inflows related to leases 389,583 2,622,523 3,012,106 -
Deferred inflows related to OPEB 476,831 579,995 1,056,826 -
Deferred inflows related to pensions 578,887 1,328,660 1,907,547 -
Total deferred inflows of resources 39,456,936 4,531,178 43,988,114 -
NET POSITION
Net investment in capital assets 189,320,394 373,859,626 563,180,020 -
Restricted:
Expendable for:
Debt service 5,091,335 1,910,697 7,002,032 -
Capital projects 18,819,515 - 18,819,515 -
Public safety 784,921 - 784,921 -
Library services 486,894 - 486,894 -
Aquatic center 165,905 - 165,905 -
Community welfare 4,820 - 4,820 -
Housing services 590,394 - 590,394 -
Economic development 2,094,964 - 2,094,964 -
Community betterment 9,830,019 - 9,830,019 -
Mary Greeley Medical Center - - - 12,316,618
Non-expendable for:
Perpetual care 1,132,565 - 1,132,565 -
Aquatic center 1,000,000 - 1,000,000 -
Bliss Cancer Endowment Fund - - - 253,390
Unrestricted 18,908,748 611,468,432 630,377,180 6,365,535
Total net position 248,230,474$ 987,238,755$ 1,235,469,229$ 18,935,543$
Primary Government
45
CITY OF AMES, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
31
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 3,625,698$ 195,737$ 318,933$ -$ (3,111,028)$ -$ (3,111,028)$ -$
Public safety 22,400,129 3,922,328 78,628 - (18,399,173) - (18,399,173) -
Public works 23,020,648 44,651 9,659,944 3,918,793 (9,397,260) - (9,397,260) -
Health and social services 1,936,265 - 24,198 - (1,912,067) - (1,912,067) -
Culture and recreation 12,496,616 1,912,073 284,560 200,000 (10,099,983) - (10,099,983) -
Community and economic development 7,176,726 12,000 3,943,907 - (3,220,819) - (3,220,819) -
Interest 2,096,841 - - - (2,096,841) - (2,096,841) -
Total governmental activities 72,752,923 6,086,789 14,310,170 4,118,793 (48,237,171) (48,237,171) -
Business-type activities:
Mary Greeley Medical Center 264,318,209 268,678,523 - 236,810 - 4,597,124 4,597,124 -
Electric 67,482,511 68,319,772 691,745 - - 1,529,006 1,529,006 -
Sewer 9,196,492 12,227,805 49,636 3,185,119 - 6,266,068 6,266,068 -
Water 14,954,847 13,918,628 4,608 678,777 - (352,834) (352,834) -
Airport 731,600 206,946 66,723 2,464,853 - 2,006,922 2,006,922 -
Parking 778,488 842,008 209 - - 63,729 63,729 -
Transit 17,383,248 7,287,587 6,148,876 307,920 - (3,638,865) (3,638,865) -
Stormwater 1,753,416 1,997,093 - - - 243,677 243,677 -
Ice arena 672,445 663,072 - 40,000 - 30,627 30,627 -
Golf course 361,743 571,018 - 20,673 - 229,948 229,948 -
Resource recovery 4,675,735 4,663,514 - - - (12,221) (12,221) -
Total business-type activities 382,308,734 379,375,966 6,961,797 6,934,152 - 10,963,181 10,963,181 -
Total primary government 455,061,657$ 385,462,755$ 21,271,967$ 11,052,945$ (48,237,171) 10,963,181 (37,273,990) -
Component unit:
Mary Greeley Medical Center Foundation 3,292,818$ -$ 2,041,388$ -$ (1,251,430)
General revenues:
Property taxes 36,774,390 - 36,774,390 -
Sales taxes 11,838,478 - 11,838,478 -
Hotel/motel taxes 3,027,969 - 3,027,969 -
Investment income 6,016,972 56,494,690 62,511,662 2,339,944
Other income (expense)5,360,321 1,442,269 6,802,590 -
Gain (loss) on disposal of capital assets 82,489 63,934 146,423 -
Transfers (379,391) 379,391 - -
Total general revenues and transfers 62,721,228 58,380,284 121,101,512 2,339,944
Change in net position 14,484,057 69,343,465 83,827,522 1,088,514
Net Position-beginning of year, as previously presented 234,783,670 918,340,323 1,153,123,993 17,847,029
Restatement (see note 4.24 on page 99)(1,037,253) (445,033) (1,482,286) -
Net position, beginning of year, as restated 233,746,417 917,895,290 1,151,641,707 17,847,029
Net position, ending 248,230,474$ 987,238,755$ 1,235,469,229$ 18,935,543$
Primary Government
Program Revenues Net (Expense) Revenue and Changes in Net Position
46
CITY OF AMES, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
32
Total Total
Capital Debt Nonmajor Governmental
General Projects Service Funds Funds
ASSETS
Cash and cash equivalents 3,348,827$ 4,875,592$ 877,665$ 5,826,419$ 14,928,503$
Investments 8,883,428 31,161,718 2,874,372 26,582,822 69,502,340
Taxes receivable 88,929 - 42,830 - 131,759
Special assessments receivable - current - 191,112 - - 191,112
Accrued interest receivable 133,767 114,792 13,895 14,052 276,506
Accounts receivable, net 378,805 - - 1,344 380,149
Intergovernmental receivable 1,514,041 2,668,380 25,566 2,634,030 6,842,017
Loans receivable - current - - - 311 311
Lease receivable - current 5,088 - - - 5,088
Due from other funds 2,070,018 49,900 - 1,554,878 3,674,796
Inventories 23,792 - - 210,967 234,759
Property held for resale - - - 602,425 602,425
Prepaid items 156,882 - - 3,278 160,160
Succeeding year taxes receivable 25,503,450 - 12,180,953 - 37,684,403
Lease receivable - long term 454,999 - - - 454,999
Special assessments receivable - long term - 374,246 - - 374,246
Total assets 42,562,026$ 39,435,740$ 16,015,281$ 37,430,526$ 135,443,573$
LIABILITIES
Accounts payable 445,447$ 2,752,987$ -$ 1,729,329$ 4,927,763$
Accrued payroll 173,107 16,100 - 109,819 299,026
Retainage payable 250,136 915,728 - 229,906 1,395,770
Customer deposits 23,041 - - 1,210,128 1,233,169
Intergovernmental payable 509,530 - - 10,686 520,216
Due to other funds 668,490 542,901 - 1,626,139 2,837,530
Total liabilities 2,069,751 4,227,716 - 4,916,007 11,213,474
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue:
Property taxes 25,503,450 - 12,180,953 - 37,684,403
Special assessments - 565,358 - - 565,358
Charges for services 23,784 - - - 23,784
Leases 389,583 - - - 389,583
Licenses and permits 36,783 - - - 36,783
Grants - 1,699,720 - 208,610 1,908,330
Total deferred inflows of resources 25,953,600 2,265,078 12,180,953 208,610 40,608,241
FUND BALANCES
Non-spendable 180,674 - - 2,346,810 2,527,484
Restricted - 32,308,109 3,834,328 25,124,563 61,267,000
Committed - 2,039,725 - 4,834,536 6,874,261
Assigned 842,098 - - - 842,098
Unassigned 13,515,903 (1,404,888) - - 12,111,015
Total fund balances 14,538,675 32,942,946 3,834,328 32,305,909 83,621,858
Total liabilities, deferred inflows of
resources, and fund balances 42,562,026$ 39,435,740$ 16,015,281$ 37,430,526$ 135,443,573$
47
CITY OF AMES, IOWA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
33
Amounts reported for governmental activities in the statement of net position (pages 29-30) are
different because:
Fund balance - total governmental funds (page 32)83,621,858$
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.233,666,842
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 565,358
Other revenues 1,968,896
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 7,255,012
Deferred inflows of resources (578,044)
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 1,200,821
Deferred inflows of resources (442,436)
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.28,918,069
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 (72,678,514)
Interest payable on general obligation bonds (233,062)
Deferred charges on general obligation bonds refunded (327,232)
Unamortized premiums on the issuance of general obligation bonds (6,208,887)
Lease liabilites on lease assets (51,893)
Subscription liabilites on subscription assets (101,572)
Accrued compensated absences (3,649,900)
Total other post-employment benefits payable (2,457,530)
Net pension liability (22,237,312)
Net position of governmental activities 248,230,474$
48
CITY OF AMES, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENT FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
34
Total Total
Capital Debt Nonmajor Governmental
General Projects Service Funds Funds
REVENUES
Taxes 24,742,053$ -$ 11,684,387$ 15,214,397$ 51,640,837$
Special assessments - 303,875 - - 303,875
Licenses and permits 1,282,702 - - - 1,282,702
Intergovernmental 549,374 3,827,930 318,933 12,033,887 16,730,124
Charges for services 4,640,904 - - 23,305 4,664,209
Fines and forfeitures 26,878 1,424,779 - 24,161 1,475,818
Investment income 2,117,098 1,786,531 418,626 203,644 4,525,899
Interest revenue 23,118 - - - 23,118
Miscellaneous 202,278 4,003,300 - 1,161,671 5,367,249
Total revenues 33,584,405 11,346,415 12,421,946 28,661,065 86,013,831
EXPENDITURES
Current:
General government 3,423,550 196,022 - 19,058 3,638,630
Public safety 22,358,060 - - 206,819 22,564,879
Public works 1,081,708 - - 7,383,024 8,464,732
Health and social services 12,000 - - 1,924,218 1,936,218
Culture and recreation 9,879,949 - - 794,329 10,674,278
Community and economic development 1,062,642 1,038 - 6,135,751 7,199,431
Debt service:
Principal - - 9,818,693 - 9,818,693
Interest and fiscal charges - - 3,018,887 - 3,018,887
Capital outlay 2,120,948 26,560,437 - 7,579,913 36,261,298
Total expenditures 39,938,857 26,757,497 12,837,580 24,043,112 103,577,046
Excess (deficiency) of revenues
over (under) expenditures (6,354,452) (15,411,082) (415,634) 4,617,953 (17,563,215)
OTHER FINANCING SOURCES (USES)
Transfers in 9,806,215 3,100,000 379,253 373,200 13,658,668
Transfers out (5,958,927) (44,928) - (8,034,204) (14,038,059)
General obligation bonds issued - 17,495,000 - - 17,495,000
Premium on general obligation bonds - 1,237,930 - - 1,237,930
Total other financing sources (uses)3,847,288 21,788,002 379,253 (7,661,004) 18,353,539
Net change in fund balances (2,507,164) 6,376,920 (36,381) (3,043,051) 790,324
Fund Balances-beginning of year,
as previously presented 17,045,839 26,566,026 3,870,709 35,348,960 82,831,534
Adjustments - - - - -
Fund balances, beginning, as restated 17,045,839 26,566,026 3,870,709 35,348,960 82,831,534
Fund balances, ending 14,538,675$ 32,942,946$ 3,834,328$ 32,305,909$ 83,621,858$
49
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, 2025
The notes to the financial statements are an integral part of this statement.
35
Amounts reported for governmental activities in the statement of activities (page 31) are different
because:
Net changes in fund balances - total governmental funds (page 34)790,324$
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Special assessments (269,394)
Other revenues (87,921)
Contributed capital assets do not provide current financial resources.377,122
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 31,061,795
Depreciation/amortization expense (12,585,467)
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 (1,237,930)
Amortization of bond premiums 902,334
Amortization of deferred charges on refunding debt 46,747
Proceeds from issuance of bonds (17,495,000)
Principal payments 9,818,693
Interest payments (27,035)
The change in deferred outflows of resources and deferred inflows of resources is
not recorded in the governmental funds.(455,541)
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 (14,539)
Decrease in accrued other post-employment benefits 141,272
Decrease in net pension liability 1,270,064
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.2,248,533
Changes in net position of governmental activities 14,484,057$
50
CITY OF AMES, IOWA
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
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
ASSETS
Current assets:
Cash and cash equivalents 13,478,835$ 916,710$ 4,695,568$ 4,299,295$ 8,828,462$ 32,218,870$ 6,467,147$
Investments - 34,660,779 17,162,730 18,003,409 32,246,248 102,073,166 25,436,287
Accrued interest receivable - 348,596 78,821 76,957 139,492 643,866 109,478
Accounts receivable, net 31,892,788 7,978,934 1,300,922 1,719,201 855,408 43,747,253 289,212
Lease receivable 1,046,124 - - 41,022 67,853 1,154,999 -
Due from other funds - 138,516 191,463 195,913 170,536 696,428 1,117,978
Intergovernmental receivable - 401,752 398,473 8,980 2,216,402 3,025,607 59,998
Inventories 5,577,957 5,943,486 - 542,698 388,650 12,452,791 91,460
Prepaid items 4,167,527 98,809 3,285 14,840 32,319 4,316,780 165,601
Restricted current assets:
Cash and cash equivalents - 1,030,506 147,968 366,125 - 1,544,599 -
Investments 353,471 - - - - 353,471 -
Interest receivable 12,627 - - - - 12,627 -
Total current assets 56,529,329 51,518,088 23,979,230 25,268,440 44,945,370 202,240,457 33,737,161
Non-current assets:
Investments - 23,618,793 - - - 23,618,793 -
Other assets 11,148,421 - - - - 11,148,421 -
Lease receivable 251,069 - - 197,345 1,128,917 1,577,331 -
Capital assets:
Land 5,339,406 2,223,783 3,251,614 3,178,665 3,794,315 17,787,783 -
Land improvements 2,821,436 - - - 27,531,282 30,352,718 -
Plant and distribution systems - 240,117,946 121,071,297 138,536,386 - 499,725,629 -
Buildings 283,184,903 - - - 45,940,202 329,125,105 1,165,682
Equipment 127,214,808 - - - 48,268,653 175,483,461 27,210,136
Lease assets 2,652,474 - - - 52,316 2,704,790 -
Subscription based IT assets 4,137,229 388,835 - 27,968 16,975 4,571,007 -
Construction in progress 1,143,324 6,886,126 24,327,641 9,230,317 3,914,040 45,501,448 -
Less acc. depreciation/amortization (246,505,571) (152,822,845) (65,221,656) (36,073,886) (72,343,321) (572,967,279) (15,356,631)
Restricted non-current assets:
Investments 439,974,784 - - - - 439,974,784 -
Total non-current assets 631,362,283 120,412,638 83,428,896 115,096,795 58,303,379 1,008,603,991 13,019,187
Total assets 687,891,612 171,930,726 107,408,126 140,365,235 103,248,749 1,210,844,448 46,756,348
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 3,310,853 - - - - 3,310,853 -
Deferred outflows related to OPEB 731,769 448,182 101,493 132,598 479,172 1,893,214 98,091
Deferred outflows related to pensions 15,081,743 714,735 174,321 278,147 1,402,475 17,651,421 182,201
19,124,365 1,162,917 275,814 410,745 1,881,647 22,855,488 280,292
Business-Type Activities
51
CITY OF AMES, IOWA
STATEMENT OF FUND NET POSITION (continued)
PROPRIETARY FUNDS
JUNE 30, 2025
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
LIABILITIES
Current liabilities:
Accounts payable 7,914,013$ 5,258,581$ 3,888,639$ 1,326,202$ 917,095$ 19,304,530$ 1,035,255$
Accrued payroll 9,449,274 175,832 15,051 30,998 277,907 9,949,062 20,924
Accrued compensated absences 594,412 213,852 34,433 68,748 307,063 1,218,508 68,898
Accrued other post-employment benefits 366,871 37,656 7,551 11,187 45,818 469,083 7,687
Due to other funds - 799,521 560,120 547,287 611,046 2,517,974 133,698
Claims payable 226,547 - - - - 226,547 2,554,124
Retainage payable 661,498 330,123 877,267 454,945 174,363 2,498,196 -
Customer deposits - 1,042,972 - - - 1,042,972 -
Accrued interest 105,705 55,894 65,656 81,089 1,387 309,731 -
Loans payable - - 1,021,175 3,589,000 - 4,610,175 -
Intergovernmental payable - - 25 - 80,672 80,697 52,829
Accrued landfill post-closure costs - - - 13,918 13,918 -
Lease liabilities 484,022 - - - 7,259 491,281 -
Subscription based IT asset liabilities 618,784 105,921 - 4,590 2,917 732,212 -
Bonds payable, net 6,484,932 1,003,623 319,570 63,417 46,774 7,918,316 -
Unearned revenue - - 188,742 102,936 - 291,678 -
Total current liabilities 26,906,058 9,023,975 6,978,229 6,280,399 2,486,219 51,674,880 3,873,415
Non-current liabilities:
Accrued compensated absences 6,825,643 668,450 145,708 211,836 795,985 8,647,622 176,823
Accrued other post-employment benefits 4,035,578 870,985 212,094 263,287 826,641 6,208,585 202,664
Net pension liability 33,419,164 1,941,593 473,547 755,593 3,809,848 40,399,745 494,956
Loans payable - - 30,191,079 44,485,977 - 74,677,056 -
Accrued landfill post-closure costs - - - - 61,466 61,466 -
Lease liabilities 175,153 - - - - 175,153 -
Subscription based IT asset liabilities 1,604,424 1 - 9,582 - 1,614,007 -
Bonds payable, net 69,597,185 1,090,288 464,260 144,414 510,817 71,806,964 -
Total non-current liabilities 115,657,147 4,571,317 31,486,688 45,870,689 6,004,757 203,590,598 874,443
Total liabilities 142,563,205 13,595,292 38,464,917 52,151,088 8,490,976 255,265,478 4,747,858
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to leases 1,262,242 - - 210,371 1,149,910 2,622,523 -
Deferred inflows related to OPEB 169,740 160,148 36,777 48,753 162,835 578,253 36,137
Deferred inflows related to pensions 1,315,566 3,620 883 1,409 7,103 1,328,581 922
2,747,548 163,768 37,660 260,533 1,319,848 4,529,357 37,059
NET POSITION
Net investment in capital assets 104,026,335 94,263,889 50,555,545 68,581,525 56,432,332 373,859,626 13,019,187
Restricted for debt service 366,098 1,030,506 147,968 366,125 - 1,910,697 -
Unrestricted 457,312,791 64,040,188 18,477,850 19,416,709 38,887,240 598,134,778 29,232,536
Total net position 561,705,224$ 159,334,583$ 69,181,363$ 88,364,359$ 95,319,572$ 973,905,101 42,251,723$
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 13,333,654
Net position of business-type activities 987,238,755$
Business-Type Activities
52
CITY OF AMES, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
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
Operating revenues:
Charges for services 268,678,523$ 68,319,772$ 12,227,805$ 13,918,628$ 16,231,239$ 379,375,967$ 25,312,184$
Operating expenses:
Cost of goods and services 197,926,899 58,410,233 6,156,539 7,842,092 19,262,578 289,598,341 22,567,439
Administration 40,460,445 2,954,729 643,311 643,310 2,872,729 47,574,524 -
Depreciation 18,465,945 6,205,216 1,948,520 2,783,385 4,182,906 33,585,972 1,780,918
Total operating expenses 256,853,289 67,570,178 8,748,370 11,268,787 26,318,213 370,758,837 24,348,357
Operating income (loss)11,825,234 749,594 3,479,435 2,649,841 (10,086,974) 8,617,130 963,827
Non-operating revenues:
Intergovernmental - 651,287 48,303 - 6,159,948 6,859,538 -
Reimbursements - 40,458 1,333 4,608 54,185 100,584 -
Investment revenue 49,417,590 2,906,654 1,058,680 1,191,901 1,919,865 56,494,690 1,467,955
Interest revenue (expense)(3,464,920) (5,196) (497,423) (1,018,535) (5,702) (4,991,776) (4,316)
Gain (loss) on disposal of capital assets 63,906 28 - (2,724,565) (103,844) (2,764,475) 86,805
Miscellaneous (4,000,000) 228,999 296,210 769,486 136,528 (2,568,777) 17,271
Total non-operating revenues 42,016,576 3,822,230 907,103 (1,777,105) 8,160,980 53,129,784 1,567,715
Income (loss) before capital
contributions and transfers 53,841,810 4,571,824 4,386,538 872,736 (1,925,994) 61,746,914 2,531,542
Capital contributions 236,810 - 3,185,119 678,777 2,833,446 6,934,152 -
Transfers in - - - - 2,808,927 2,808,927 -
Transfers out - (2,420,784) - (761) (7,991) (2,429,536) -
Change in net position 54,078,620 2,151,040 7,571,657 1,550,752 3,708,388 69,060,457 2,531,542
Net position, beginning as previously presented 507,626,604 157,337,078 61,630,133 86,862,637 91,833,226 905,289,678 39,770,118
Restatements - (153,535) (20,427) (49,030) (222,042) (445,034) (49,937)
Net position-beginning of year, as restated 507,626,604 157,183,543 61,609,706 86,813,607 91,611,184 904,844,644 39,720,181
Net position, ending 561,705,224$ 159,334,583$ 69,181,363$ 88,364,359$ 95,319,572$ 973,905,101 42,251,723$
Adjustment for the net effect of the current year activity between the internal service
funds and the enterprise funds 283,008
Change in net position of business-type activities 69,343,465$
Business-Type Activities
53
CITY OF AMES, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
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
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 276,572,208$ 68,160,487$ 11,537,714$ 14,400,576$ 16,350,880$ 387,021,865$ 24,401,869$
Other receipts 2,580,514 269,457 297,543 774,094 - 3,921,608 -
Payments to suppliers (125,928,652) (44,516,136) (2,409,587) (2,411,685) (6,784,727) (182,050,787) (18,084,911)
Payments to employees (121,561,027) (12,158,719) (2,421,664) (3,605,705) (13,981,406) (153,728,521) (2,446,032)
Payments to other funds for services provided - (2,919,779) (2,941,377) (1,453,594) (2,151,160) (9,465,910) (1,036,254)
Net cash provided by (used for) operating activities 31,663,043 8,835,310 4,062,629 7,703,686 (6,566,413) 45,698,255 2,834,672
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating grants - 651,287 48,303 - 6,159,948 6,859,538 -
Reimbursements - - - - 54,185 54,185 -
Miscellaneous income - - - - 136,526 136,526 17,271
Transfers in - - - - 2,808,927 2,808,927 -
Transfers out - (2,420,784) - (761) (7,991) (2,429,536) -
Net cash provided by (used for) non-capital
financing activities - (1,769,497) 48,303 (761) 9,151,595 7,429,640 17,271
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (34,239,944) (6,348,751) (15,860,261) (2,876,898) (4,262,212) (63,588,066) (2,921,883)
Capital grants 4,000,000 - - - - 4,000,000 (4,316)
Proceeds from the sale of capital assets 286,662 28 - - - 286,690 114,775
Principal paid on capital debt (9,072,391) (910,500) (283,609) (54,425) (152,773) (10,473,698) -
Interest paid on capital debt (2,891,389) (74,778) (39,143) (11,893) (23,383) (3,040,586) -
Proceeds from loans - - 16,090,677 812,291 - 16,902,968 -
Principal paid on loans - - (1,019,022) (3,402,931) - (4,421,953) -
Interest paid on loans - - (455,180) (1,018,632) - (1,473,812) -
Interest paid on leases - (5,284) - (539) (641) (6,464) -
Capital contributions 236,810 - - 92,244 2,740,073 3,069,127 -
Net cash (used for) capital and related financing activities (41,680,252) (7,339,285) (1,566,538) (6,460,783) (1,698,936) (58,745,794) (2,811,424)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (305,923,439) (59,147,567) (18,665,465) (19,579,750) (35,069,665) (438,385,886) (27,663,441)
Proceeds from sale of investments 254,535,197 56,294,232 15,970,672 17,474,344 32,776,151 377,050,596 26,108,049
Other liabilities 15,443,028 16,412 - - - 15,459,440 -
Interest on investments 49,530,526 2,390,667 1,049,320 1,194,186 1,925,365 56,090,064 1,471,087
Net cash provided by (used for) investing activities 13,585,312 (446,256) (1,645,473) (911,220) (368,149) 10,214,214 (84,305)
Net increase (decrease) in cash and cash equivalents 3,568,103 (719,728) 898,921 330,922 518,097 4,596,315 (43,786)
Cash and cash equivalents, beginning 9,910,732 2,666,944 3,944,615 4,334,498 8,310,365 29,167,154 6,510,933
Cash and cash equivalents, ending 13,478,835 1,947,216 4,843,536 4,665,420 8,828,462 33,763,469 6,467,147
Business-Type Activities
54
CITY OF AMES, IOWA
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
40
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)11,825,234$ 749,594$ 3,479,435$ 2,649,841$ (10,086,974)$ 8,617,130$ 963,827$
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation expense 18,465,945 6,205,216 1,948,520 2,783,385 4,182,906 33,585,972 1,780,918
Change in accounts receivable 11,820,839 (344,535) (126,145) 225,438 (159,576) 11,416,021 (171,904)
Change in lease receivable 154,286 - - 39,254 61,930 255,470 -
Change in due from other funds - (5,756) (91,187) 356,046 (31,110) 227,993 (717,177)
Change in intergovernmental receivable - 189,424 (153,298) (2,251) 326,733 360,608 (21,234)
Change in inventories (430,589) (381,630) - 4,972 18,481 (788,766) 9,747
Change in prepaid items (50,106) (22,631) (660) (10,839) 79,625 (4,611) (15,545)
Change in deferred outflows of resources 5,938,571 114,045 62,346 17,212 734,532 6,866,706 130,486
Change in accounts payable (4,435,483) 1,528,511 (469,634) 925,068 (524,537) (2,976,075) 656,030
Change in accrued payroll (897,985) 16,567 4,487 2,472 49,442 (825,017) 2,820
Change in accrued compensated absences - 87,938 34,187 24,239 104,550 250,914 35,404
Change in due to other funds - 210,706 (442,362) (97,163) 286,101 (42,718) 78,017
Change in other long term liabilities (700,109) - - - - (700,109) 432,691
Change in customer deposits - 1,582 - - - 1,582 -
Change in estimated net settlements due to third-party payors (4,500) - - - - (4,500) -
Change in intergovernmental payable - (118,347) (10,172) (58,985) 56,269 (131,235) 20,400
Change in accrued landfill post-closure costs - - - - (10,129) (10,129) -
Change in unearned revenue - - (319,461) (136,539) - (456,000) -
Change in post-employment benefits (341,212) (50,684) (10,163) (15,058) (61,668) (478,785) (10,346)
Change in pension liability (9,652,001) 287,560 (160,673) 234,768 (1,625,208) (10,915,553) (336,335)
Change in non-operating revenue - 269,457 297,543 774,094 - 1,341,094
Change in deferred inflows of resources (29,847) 98,293 19,866 (12,268) 32,220 108,264 (3,127)
Total adjustments 19,837,809 8,085,716 583,194 5,053,845 3,520,561 37,081,126 1,870,845
Net cash provided by (used for) operating activities 31,663,043$ 8,835,310$ 4,062,629$ 7,703,686$ (6,566,413)$ 45,698,255$ 2,834,672$
Schedule of non-cash capital and related financing activities:
Financing arrangements of capital assets (2,322,454)$ -$ -$ -$ -$ (2,322,454)$ -$
Acquisition of capital assets through leases and SBITA 2,322,454 - - - - 2,322,454 -
Acquisition of capital assets through retainage payable (661,498) (330,123) (877,267) (454,945) (174,363) (2,498,196) -
Capital asset contributions - - 3,185,119 586,533 93,373 3,865,025 -
Business-Type Activities
55
CITY OF AMES, IOWA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
41
Custodial
Fund
ASSETS
Current assets:
Intergovernmental receivable 5,157$
Total current assets 5,157
LIABILITIES
Current liabilities:
Intergovernmental payable 5,157
Total current liabilities 5,157
NET POSITION
Restricted for:
Unrestricted -$
56
CITY OF AMES, IOWA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
The notes to the financial statements are an integral part of this statement.
42
Custodial
Fund
Additions
Contributions:
Private contributions 661,213$
Total additions 661,213
Deductions
Benefits 170,404
Payroll 490,597
Recruitment 172
Supplies 40
Total deductions 661,213
Net increase (decrease) in fiduciary net position -
Net position - beginning -
Net position - ending -$
57
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENT
JUNE 30, 2025
43
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
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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.
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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, 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.
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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
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City Manager, Budget Officer, department heads, 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).
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Inventories and prepaid items
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, Right to Use leases, and Subscription Assets
Capital assets are tangible and intangible assets, which include property, plant, equipment and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business-type activities column in the government-wide financial
statements. Capital assets, except for infrastructure assets, right to use leases, and subscription
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of one year. For right-to-use lease assets and subscription assets the
City defines as a present value of more than $50,000, and an estimated useful life in excess of one
year.
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 classes Estimated useful
lives (years)
General Infrastructure 15 – 50
Buildings 25 – 45
Improvements 20 – 40
Machinery and Equipment 03 – 50
Plant and Distribution System 25 - 50
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Right-to-use lease equipment and subscription assets are amortized over the life of the associated
contract.
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
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contributions) are recognized when they are 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.
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
For government-wide reporting as well as in proprietary funds, the difference between assets and
deferred outflows of resources less liabilities and deferred inflows of resources is called net
position. Net position is comprised of three components: net investment in capital assets, restricted,
and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated
depreciation/amortization and reduced by outstanding balances of bonds, notes, and other
debt that are attributable to the acquisition, construction, or improvement to those assets.
Deferred outflows of resources and deferred inflows of resources that are attributable to
the acquisition, construction, or improvement of those assets or related debt are included
in this component of net position.
Restricted net position consists of restricted assets reduced by certain liabilities and
deferred inflows of resources related to those assets. Assets are reported as restricted when
constraints are placed on asset use either by external parties or by law through
constitutional provision or enabling legislation.
Unrestricted net position is the net amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows or resources that do not meet the definition of the two
preceding categories.
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Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted
bond or grant proceeds) and unrestricted resources. 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 is
applied.
Fund balance
In governmental fund types, the difference between assets and deferred outflows of resources less
liabilities and deferred inflows of resources is called “fund balance.” The City’s governmental
funds report the following categories of fund balance, based on the nature of any limitations
requiring the use of resources for specific purposes.
Nonspendable fund balance represents amounts that are either not in a spendable form or
are legally or contractually required to remain intact.
Restricted fund balance includes amounts that can be spent only for the specific purposes
stipulated by external resource providers such as grantors or enabling federal, state, or local
legislation. Restrictions may be changed or lifted only with the consent of the resource
providers.
Committed fund balance represents amounts that can be used only the specific purposes
determined by the adoption of an ordinance committing fund balance for a specified
purpose by the City’s Council prior to the end of the fiscal year. Once adopted, the
limitation imposed by the ordinance remains in place until the resources have been spent
for the specified purpose or the Council adopts another ordinance to remove or revise the
limitation.
Assigned fund balance represents amounts that are intended to be used by the City for
specific purposes but do not meet the criteria to be classified as committed. The Council
has by resolution authorized the finance director to assign fund balance. The 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.
Unassigned fund balance represents the residual amount for the General Fund that is not
contained in the other classifications. The General Fund is the only fund that reports a
positive unassigned fund balance. Additionally, and deficit fund balance within the other
governmental fund types is reported as unassigned.
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
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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.
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, 2025 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.
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
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financial statements. A liability is recorded when each of the following have occurred: the leave is
attributable to services already rendered, the leave accumulates and carries forward from one
reporting period to the next, and the leave is more likely than not to be used for time off or
otherwise paid in cash or settled through noncash means. The compensated absences liability has
been computed based on pay in effect at June 30, 2025.
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 - 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 $233,666,842 are as follows:
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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
$28,918,069 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 $2,248,533
are as follows:
Land 18,363,012$
Public art collection 760,826
Construction in progress 33,761,410
Buildings 34,737,185
Less: accumulated depreciation (14,444,449)
Lease assets 169,167
Less: amortization (118,572)
Subscription-based IT assets 200,819
Less: amortization (99,247)
Equipment 11,500,155
Less: accumulated depreciation (7,634,117)
Infrastructure 341,978,425
Less: accumulated depreciation (185,507,772)
Net adjustment to increase fund balance - total governmental funds
to arrive at net position in governmental activities 233,666,842$
Net position of the internal service funds 42,251,723$
Less: Internal payable representing charges in excess of cost to
business-type activities - prior years (13,050,645)
Less: Internal payable representing charges in excess of cost to
business-type activities - current year (283,009)
28,918,069$
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NOTE 3 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
3.1 Violations of legal or contractual provisions
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, 2025, 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 2,531,542$
Less: gain from charges to business-type activities (283,009)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities 2,248,533$
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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, 2025,
compared to June 30, 2024.
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.
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
Warrants of improvement
certificates of a levee or
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 122,758,418$ 07/14/25-03/28/30
U.S. Treasury obligations 94,897,868 07/03/25-05/31/28
Commercial paper 2,974,302 8/25/25-09/22/25
Mutual funds 440,328,253 n/a
660,958,841$
71
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
57
The following provides information about the sensitivity of the fair values of the City’s
investments to market interest rate fluctuations:
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, 2025, 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 122,758,418$ 53,314,527$ 50,670,942$ 18,772,949$ -$
U.S. Treasury obligations 94,897,868 45,534,064 33,181,781 16,182,023 -
Commercial paper 2,974,302 2,974,302 - - -
Mutual funds 440,328,253 440,328,253 - - -
660,958,841$ 542,151,146$ 83,852,723$ 34,954,972$ -$
Remaining Maturity
Investment Type Fair Value Rating
U.S. Agency coupon securities 122,758,418$ AAA
U.S. Treasury obligations 94,897,868 not rated
Commercial paper 2,974,302 A1/P1
Mutual funds 440,328,253 not rated
660,958,841$
Percent of
Issuer Investment Type Amount Portfolio
Federal Home Loan Bank U.S. agency securities 54,622,493$ 8.26%
United States Treasury U.S. treasuries 94,897,868 14.36%
72
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
58
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, 2025, 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, 2025, the City had no
exposure to foreign currency rate risk, nor did the Medical Center as dollar denominated,
international mutual funds (20.8% 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 12,711,700$ 1.92%
Federal Home Loan Mortgage Co.U.S. agency securities 26,363,382 3.99%
Federal Home Loan Bank U.S. agency securities 54,622,493 8.26%
Federal Farm Credit U.S. agency securities 19,256,658 2.91%
Farmer Mac U.S. agency securities 8,389,350 1.27%
Tennessee Valley Authority U.S. agency securities 1,414,836 0.21%
United States Treasury U.S. treasuries 94,897,868 14.36%
73
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
59
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, 2025:
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, 2025 included
approximately $8,250,000 related to the Mary Greeley Medical Center. Property tax receivable is
shown at a gross amount since they are assessed to the property and collectible upon sale of the
property.
Investment Type Fair Value
Equity mutual funds 19,178,261$
19,178,261$
74
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NOTES TO THE FINANCIAL STATEMENTS (continued)
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60
4.5 Capital assets
Capital asset activity for the fiscal year ended June 30, 2025, 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, 2024 Increases Decreases June 30, 2025
Non-depreciable capital assets:
Land 17,284,601$ 1,078,411$ -$ 18,363,012$
Public art collection 640,326 120,500 - 760,826
Construction in progress 15,377,533 21,368,712 (2,984,835) 33,761,410
Total non-depreciable capital
assets 33,302,460 22,567,623 (2,984,835) 52,885,248
Depreciable/amortizable capital assets:
Buildings 35,803,199 82,618 - 35,885,817
Equipment 38,290,265 3,668,795 (3,399,653) 38,559,407
Infrastructure 331,069,050 11,077,308 - 342,146,358
Intangible assets
Lease assets 169,167 - - 169,167
Subscription-based IT assets 797,240 - (596,421) 200,819
406,128,921 14,828,721 (3,996,074) 416,961,568
Less accumulated depreciation/amortization:
Buildings 14,423,722 913,882 - 15,337,604
Equipment 22,735,267 2,502,947 (3,308,554) 21,929,660
Infrastructure 174,981,054 10,694,651 - 185,675,705
Intangible assets
Lease assets 64,953 53,619 - 118,572
Subscription-based IT assets 411,823 118,641 (431,217) 99,247
212,616,819 14,283,740 (3,739,771) 223,160,788
Total depreciable/amortizable capital assets 193,512,102 544,981 (256,303) 193,800,780
Total capital assets 226,814,562$ 23,112,604$ (3,241,138)$ 246,686,028$
General government 571,574$
Public safety 722,862
Public works 10,559,541
Culture and recreation 2,425,534
Community and economic development 4,229
Total depreciation/amortization expense - governmental activities 14,283,740$
75
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
61
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 $8,860,431. Other aggregate
amounts related to pension are separately displayed in the financial statements.
Iowa Public Employees Retirement System (IPERS)
Plan description. The City participates in IPERS, a cost sharing, multiple-employer, defined benefit
pension plan administered by the State of Iowa. IPERS provides retirement, disability, and death
Balance Balance
Business-type activities:June 30, 2024 Increases Decreases June 30, 2025
Non-depreciable capital assets:
Land 16,116,650$ 1,215,083$ 456,050$ 17,787,783$
Construction in progress 33,664,951 55,411,060 (43,574,563) 45,501,448
Total non-depreciable capital
assets 49,781,601 56,626,143 (43,118,513) 63,289,231
Depreciable/amortizable capital assets:
Plant and distribution systems 481,014,608 19,184,210 (473,190) 499,725,628
Buildings 315,115,945 14,039,677 (30,517) 329,125,105
Equipment 167,889,838 11,798,049 (4,204,426) 175,483,461
Improvements 28,938,531 1,665,541 (251,354) 30,352,718
Intangible assets
Lease assets 2,940,438 45,610 (281,258) 2,704,790
Subscription-based IT assets 3,221,342 2,307,169 (957,504) 4,571,007
999,120,702 49,040,256 (6,198,249) 1,041,962,709
Less accumulated depreciation/amortization:
Plant and distribution systems 243,474,381 10,820,485 (473,189) 253,821,677
Buildings 154,904,013 11,748,353 (30,516) 166,621,850
Equipment 130,802,209 8,702,343 (4,112,055) 135,392,497
Improvements 12,789,271 1,048,051 (148,510) 13,688,812
Intangible assets
Lease assets 1,589,936 667,855 (273,407) 1,984,384
Subscription-based IT assets 1,156,666 1,033,248 (731,855) 1,458,059
544,716,476 34,020,335 (5,769,532) 572,967,279
Total depreciable/amortizable capital assets 454,404,226 15,019,921 (428,717) 468,995,430
Total capital assets 504,185,827$ 71,646,064$ (43,547,230)$ 532,284,661$
76
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
62
benefits to eligible members and beneficiaries. State statutes authorize the State to establish and amend
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, 2025, regular members contributed 6.29% and the City
contributed 9.44% of covered wages. Rates for the fiscal year beginning July 1, 2025, 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, 2025. The City's total contributions to IPERS for the years
ended June 30, 2025, 2024, and 2023 were $12,000,767, $11,525,155, and $11,205,032, 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, 2025, the City reported a liability of $46,677,288, of
which $33,419,164 is Mary Greeley Medical Center’s proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2024, 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, 2024, the City's proportion was 1.2818%,
which is a decrease of 0.0395% from its proportion measured as of June 30, 2023.
For the year ended June 30, 2025, the City recognized pension expense of $6,684,465. At June 30,
2025, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
77
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
63
$12,000,767 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (asset) in the year ended June 30, 2026. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized
in pension expense (income) as follows:
There were no non-employer contributing entities at IPERS.
Actuarial assumptions. The total pension liability in the June 30, 2024 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation rate 2.60% per annum
Payroll increase assumption 3.25%
Projected salary increases 3.25%-16.25%, depending upon years of
service
Assumed investment return 7.00%, per annum, compounded annually, net of
investment expense, including inflation
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience 4,009,307$ 29,375$
Changes in assumptions - 69,419
Net difference between projected and actual
earnings on pension plan investments 596,514 -
Changes in proportion and differences between
City contributions and proportionate share of
contributions 3,355,706 1,241,492
City contributions subsequent to the measurement
date 12,000,767 -
19,962,294$ 1,340,286$
Year Ending
June 30,
2026 (5,470,232)$
2027 12,662,347
2028 1,048,384
2029 (1,575,106)
2030 (44,152)
6,621,241$
78
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
64
The actuarial assumptions used in the June 30, 2024, 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, 2025, 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
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 21.0%3.52%
International equity 13.0 5.18
Global smart beta equity 5.0 4.12
Core-plus fixed income 25.5 3.04
Public credit 3.0 4.53
Cash 1.0 1.69
Private equity 17.0 8.89
Private real assets 9.0 4.25
Private credit 5.5 6.62
100.0%
79
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
65
using the discount rate of 7.00%, 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
(6.00%) 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, 2025, the City reported a payable to the defined benefit
pension plan of $2,151,877 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 9.55%, 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, 2025, was 22.66%. The City's total
contributions to MFPRSI for the years ended June 30, 2025, 2024, and 2023 were $2,225,933
$2,148,157, and $2,197,536, respectively, and were equal to 100 percent of the required
contributions for each year.
If approved by the state legislature, state appropriation may further reduce the employer's
contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable
compensation. The State of Iowa, therefore, is considered a non-employer contributing entity in
accordance with the provisions of GASB Statement No. 67 - Financial Reporting for Pension
Plans.
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2025.
Current
Discount
1% Decrease Rate 1% Increase
(6.0%)(7.0%)(8.0%)
City's proportionate share of
the net pension liability 116,787,358$ 46,677,288$ (12,041,363)$
80
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
66
Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of
resources related to pensions. At June 30, 2025, the City reported a liability of $16,454,725 for its
proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2024, 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, 2024, the City's proportion was 2.4902%, which is a decrease
of 0.0458% from its proportion measured as of June 30, 2023.
For the year ended June 30, 2025, the City recognized pension expense of $2,175,966. At June 30,
2025, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
$2,225,933 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (asset) in the year ending June 30, 2026. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense (income) as follows:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience 1,735,141$ -$
Changes in assumptions 59,396 1
Net difference between projected and actual
earnings on pension plan investments 1,101,308 -
Changes in proportion and differences between
City contributions and proportionate share of
contributions 4,562 567,260
City contributions subsequent to the measurement
date 2,225,933 -
5,126,340$ 567,261$
Year Ending
June 30,
2026 ($608,976)
2027 2,283,129
2028 493,014
2029 148,039
2030 17,940
$2,333,146
81
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
67
Actuarial assumptions. The total pension liability in the June 30, 2024 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, 2024 valuation were based on the results of an
actuarial experience study for the 10-year period ending June 30, 2023. 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 4.8%
Broad U.S. equity 7.5
Global equity 7.6
Broad non-US equity 7.7
Managed futures 5.5
Core real estate 6.0
Opportunistic real estate 9.8
Global infrastructure 6.7
Private credit 9.4
Private equity 10.2
Asset Class
82
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
68
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, 2025, 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 28,628,887$ 16,454,725$ 6,377,866$
83
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
69
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 $312,264, and City contributions
were $458,565 for the fiscal year ended June 30, 2025.
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
$467,788. 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
84
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
70
Total OPEB Liability
The City's total OPEB liability of $9,345,549, without the hospital the City had $4,945,916 which
was measured as of June 30, 2025 and was determined by an actuarial valuation as June 30, 2024.
Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2025 actuarial
valuation was determined using the following actuarial assumptions and other inputs, applied to
all periods included in the measurement, unless otherwise specified:
Salary increases 3.25% per annum
Discount rate 5.20% per annum
Retirees share of benefit-related 100% of projected health insurance premiums
The following annual health care cost trends are applied on a select and ultimate basis. Select
trends are reduced 0.30% each year through 2033, and 0.10% thereafter until reaching the ultimate
trend rate.
Expense Type Select Ultimate
Pre-Medicare Medical and Rx Benefits 7.75% 4.00%
Medicare Benefits 6.75% 4.00%
Stop Loss Fees 7.75% 4.00%
Administrative Fees 4.00% 4.00%
The discount rate was based on the Bond Buyer 20-Year Bond GO index.
Mortality rates were based on the Pub-2010 mortality table with generational scale MP-2021.
The actuarial assumptions used in the June 30, 2025 valuation were based on the results of an
actuarial experience study for the period July 1, 2021 to June 30, 2022.
Changes in the Total OPEB Liability
Balance, beginning of year 5,232,291$
Changes for year:
Service cost 367,193
Interest 215,881
Changes in assumptions or other inputs (654,590)
Benefit payments (214,859)
Net changes (286,375)
Balance, end of year 4,945,916$
85
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
71
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 (4.20 percent) or one percentage
point higher (6.20 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, 2025, the City recognized OPEB expense of $809,000. At June
30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Discount
1% Decrease Rate 1% Increase
(4.2%)(5.2%)(6.2%)
Total OPEB liability 5,464,000$ 4,946,000$ 4,485,000$
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 4,314,000$ 4,946,000$ 5,708,000$
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between actual and expected experience 1,856,245$ 192,461$
Changes of assumptions or other inputs 604,110 694,624
2,460,355$ 887,085$
86
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
72
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, 2025, the hospital contributed approximately $835,000. Retirees receiving benefits
contributed approximately $387,000 through their required contributions. Inactive members
receiving benefits contributed through their required monthly contributions of:
Employees covered by benefit terms. At June 30, 2025, the following employees were covered by
the benefit terms:
Year ended June 30:
2026 226,351$
2027 226,351
2028 226,351
2029 226,350
2030 228,567
Thereafter 439,300
1,573,270$
Employee 739$
Employee + spouse 1,475
Employee + children 1,355
Family 2,247
87
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NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
73
Total OPEB Liability
The hospital's total OPEB liability of $4,402,449 was measured as of January 1, 2025 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 3.28% per annum (effective January 1, 2025)
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 4.28% (effective January 1, 2025)
Health care cost trend rates 7.50% for medical and prescription benefits for 2025,
decreasing 0.50% per year to an ultimate rate of 4.5% for
2031 and later years (effective January 1, 2025)
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, 2025 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 428
Active employees 1,269
1,697
88
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
74
Changes in the Total OPEB Liability
Effect of assumptions changes and inputs for the year ended June 30, 2025, reflect a change in the
inflation rate from 3.00% to 3.28% and a change in the discount rate from 4.00% to 4.28%.
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 (3.28%) or one
percentage point higher (5.28%) 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
(6.50% decreasing to 3.50%) or one percentage point higher (8.50% decreasing to 5.50%) than the
current healthcare cost trend rates:
Balance, beginning of year 4,178,041$
Service cost 224,224
Interest 164,657
Differences between expected and
actual experience 779,254
Changes in assumptions or other inputs (84,905)
Change in benefit terms (281,492)
Benefit payments (577,330)
Net changes 224,408
Balance, end of year 4,402,449$
Discount
1% Decrease Rate 1% Increase
(3.28%)(4.28%)(5.28%)
Total OPEB liability 4,718,778$ 4,402,449$ 4,120,399$
1% Decrease (6.5%
Decreasing to
3.5%)
Healthcare Cost Trend
Rates (7.5% Decreasing
to 4.5%)
1% Increase (8.5%
Decreasing to
5.5%)
Total OPEB liability 4,055,624$ 4,402,449$ 4,795,160$
89
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
75
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the fiscal year ended June 30, 2025, the hospital recognized OPEB expense of ($341,212). At
June 30, 2025, the hospital reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
The amount of $101,987 reported as deferred outflows of resources resulting from hospital
contributions subsequent to the measurement date will be recognized in the net OPEB liability in
the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 519,503$ 113,136$
Changes of assumptions or other inputs 110,279 56,604
Contributions made subsequent to measurement date 101,987 -
Total 731,769$ 169,740$
Year ended June 30:
2026 228,592$
2027 231,450
460,042$
90
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
76
4.8 Construction and other significant commitments
Construction commitments. As of June 30, 2025, the City's commitments with contractors were:
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.
Spent Remaining
Project to Date Commitment
Streets & bridges 2,969,102$ 8,535,903$
Shared use paths 523,410 41,757
Fire 74,396 337,653
Parks 10,821,390 10,839,495
Electric 4,924,174 13,157,203
Water 3,338,219 5,448,219
Sewer 20,657,279 41,249,301
Stormwater 279,120 2,236,875
Transit 529,880 9,153,504
Airport 2,509,025 2,325,751
Traffic signal 3,809,803 2,897,692
Facilities 354,642 1,704,931
City manager 6,563 146,492
Planning 372,509 77,618
Sustainability 41,040 61,560
Finance 120,662 168,539
Police - 23,440
Library 7,360 640
Engineering 38,637 390
Resource Recovery 47,171 94,035
Parking - 19,480
Risk 25,516 36,984
51,449,898$ 98,557,462$
91
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
77
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.
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, 2025, settled claims have not
exceeded the risk pool or reinsurance coverage since the pool's inception.
General fund 1,422,890$
Capital projects fund 17,721,575
Non-major governmental funds 3,657,515
Electric 13,014,239
Water 5,835,732
Sewer 40,288,260
Non-major business-type funds 14,140,566
96,080,777$
92
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
78
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, 2025 and 2024 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 $227,000
as an estimate for professional liability claims that were incurred but not reported as of June 30,
2025.
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 $1,574,000 at June 30, 2025.
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 $257,000 at June 30, 2025.
Changes in the balance of the hospital's accrued claims for professional liabilities, health care, and
workers’ compensation coverage for the years ended June 30, 2025 and 2024 were as follows:
2025 2024
Liability, July 1 1,509,712$ 1,282,758$
Claims incurred & claims adjustments 1,176,840 801,340
Claim payments (906,305) (574,386)
Liability, June 30 1,780,247$ 1,509,712$
2025 2024
Liability, July 1 611,721$ 418,892$
Claims incurred & claims adjustments 11,260,755 10,604,329
Claim payments (11,098,599) (10,411,500)
Liability, June 30 773,877$ 611,721$
93
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
79
4.10 Leases
As of June 30, 2025, 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, 2025 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
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.
2025 2024 2025 2024
Liability, July 1 249,914$ 199,803$ 2,000,667$ 1,511,683$
Claims incurred & claims adjustments (16,023) 51,436 12,677,088 13,341,637
Claim payments (7,344) (1,325) (13,104,139) (12,852,653)
Liability, June 30 226,547$ 249,914$ 1,573,616$ 2,000,667$
2025 2024
Liability, July 1 296,136$ 483,749$
Claims incurred & claims adjustments 293,830 288,874
Claim payments (333,067) (476,487)
Liability, June 30 256,899$ 296,136$
Professional Liability Health Insurance
Workers' Compensation
94
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
80
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, 2025, 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.
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, 2025, 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
95
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
81
combined value of the lease liability is $59,152. The combined value of the right to use asset is
$221,483 with accumulated amortization of $163,629. Principal and Interest requirements to maturity
are as follows:
Lease receivable
On June 30, 2025, 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 $1,895,224, the total combined value of the short-term lease receivable
is $113,963, and the combined value of the deferred inflow of resources is $1,749,864.
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, 2025, the
value of the lease receivable is $460,087. 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, 2025, was $389,583, and the City recognized lease revenue of
$20,331 during the fiscal year.
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2026 7,259$ 49$ 7,308$ 51,893$ 1,023$ 52,916$
7,259$ 49$ 7,308$ 51,893$ 1,023$ 52,916$
Leases Payable
Business-Type Activities Governmental Activities
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2026 108,875$ 29,296$ 138,171$ 5,088$ 22,893$ 27,981$
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 95,469 21,467 116,936 10,075 21,410 31,485
2031-2035 480,776 76,040 556,816 82,082 96,952 179,034
2036-2040 193,953 42,224 236,177 149,984 68,149 218,133
2041-2045 70,686 31,759 102,445 190,550 21,818 212,368
Thereafter 211,749 73,183 284,932 - - -
1,435,137$ 349,452$ 1,784,589$ 460,087$ 297,987$ 758,074$
Governmental ActivitiesBusiness-Type Activities
City Leases Receivable
96
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
82
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, 2025, the value
of the lease receivable is $35,497. 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, 2025 was $35,624, 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,
2025, the value of the lease receivable is $23,827. 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, 2025, was $23,348, 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, 2025, the value of the lease receivable is $32,161. 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, 2025, was $32,091, and the City recognized lease
revenue of $1,459 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, 2025, the
value of the lease receivable is $41,698. 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, 2025, was $40,861, 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, 2025,
the value of the lease receivable is $161,956. 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, 2025, was $145,886, and the City recognized lease revenue of
$3,104 during the fiscal year. The lessee has 9 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 714 Airport Rd.
An initial lease receivable was recorded in the amount of $61,910. As of June 30, 2025, the value
of the lease receivable is $55,598. 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, 2025, was $54,481, and the City recognized lease revenue of $2,476 during
the fiscal year. The lessee has 4 extension option(s), each for 60 months.
97
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
83
On July 1, 2022, the City entered into an 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,
2025, the value of the lease receivable is $826,325. 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, 2025, was $797,854, 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,
2025, the value of the lease receivable is $13,237. 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, 2025, was $12,972, 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,
2025, the value of the lease receivable is $204,689. 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, 2025, was $179,317, 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, 2025,
the value of the lease receivable is $33,350. 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, 2025, was $30,996, 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
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, 2025, the City, not including MGMC, had ten active subscriptions that have
payments that range from $1,500 to $80,255 and interest rates that range from 1.7100% to
2.9010%. As of June 30, 2025 the total combined value of the subscription liability is $224,583.
98
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
84
The combined value of the right-to-use asset is $634,597 with accumulated amortization of
$410,014.
The future principal and interest subscription-based information technology arrangement (SBITA)
payments as of June 30, 2025, are as follows:
The future principal and interest lease and SBITA payments, including MGMC as of June 30,
2025, are as follows:
4.12 Long-term obligations
General obligation bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities and equipment. General obligation bonds have been issued for both
governmental and business-type activities. General obligation bonds are direct obligations and
pledge the full faith and credit of the City. These bonds are generally issued with maturities ranging
from 10 to 20 years. Debt service on general obligation bonds is paid from the debt service fund.
General obligation bonds outstanding at June 30, 2025, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total Principal Interest Total
2026 113,428$ 3,014$ 116,442$ 33,143$ 2,151$ 35,294$
2027 4,723 277 5,000 33,853 1,442 35,295
2028 4,859 141 5,000 34,577 717 35,294
123,010$ 3,432$ 126,442$ 101,573$ 4,310$ 105,883$
City IT Subscription Asset
Business-Type Activities Governmental Activities
Fiscal Year
Ending June 30,Principal Interest Total
2026 1,308,529$ 115,621$ 1,424,150$
2027 798,660 69,857 868,517
2028 621,807 39,850 661,657
2029 437,122 16,774 453,896
3,166,118$ 242,102$ 3,408,220$
99
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
85
On September 25, 2024, the City issued $17,495,000 of general obligation, corporate purpose
bonds for acquiring and installing street/traffic system equipment, undertaking improvements to
the Ada Hayden Heritage Park, undertaking improvements to the municipal airport, and
undertaking a project in the Downtown Reinvestment District Urban Renewal Area consisting of
constructing, furnishing and equipping an indoor aquatic center an associated grounds and
facilities, which had interest rates of 4.000% to 5.000%. Maturity dates on the bonds range from
June 1, 2025 to June 1, 2044. Debt Service payments are scheduled to be paid semi-annually in
Outstanding
Sale Original Final June 30,
General Obligation Bonds Date Borrowing Maturity 2025
Corporate purpose 2014 9,395,000$ 2.000-2.500 %2026 665,000$
Corporate purpose/refunding 2015 15,670,000 3.000-5.000 2035 2,100,000
Corporate purpose 2016 9,020,605 2.000-5.000 2028 2,008,514
Corporate purpose/refunding 2017 10,975,000 2.000-5.000 2029 2,645,000
Corporate purpose 2018 7,490,000 3.000-5.000 2030 3,560,000
Corporate purpose/TIF 2019 290,000 1.500-5.000 2031 175,000
Corporate purpose 2019 10,230,000 1.500-5.000 2031 5,395,000
Corporate purpose 2020 9,500,000 1.000-5.000 2032 5,935,000
Corporate purpose/refunding 2020 7,929,118 1.000-5.000 2032 1,760,000
Corporate purpose 2021 9,850,000 1.375-5.000 2033 7,025,000
Corporate purpose/refunding 2021 9,372,505 1.375-5.000 2033 5,080,000
Corporate purpose 2022 12,440,000 4.000-5.000 2034 9,620,000
Corporate purpose 2023 12,110,000 5.000 2035 10,215,000
Corporate purpose 2024 17,495,000 4.000-5.000 2044 16,495,000
141,767,228$ 72,678,514$
Governmental Activities
Interest
Rates to
Maturity
Outstanding
Sale Original Final June 30,
General Obligation Bonds Date Borrowing Maturity 2025
Corporate purpose/refunding 2015 1,860,000$ 3.000-5.000 2027 375,000$
Corporate purpose 2015 915,000 3.000-5.000 2027 540,000
Corporate purpose/refunding 2016 2,629,395 2.000-5.000 2028 461,486
Corporate purpose 2019 255,000 1.500-5.000 2031 150,000
Corporate purpose/refunding 2021 417,495 5.000 2025 -
6,076,890$ 1,526,486$
Business-Type Activities
Interest
Rates to
Maturity
100
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
86
amounts that range from $1,163,800 to $1,544,138. Bonds due after June 1, 2032 may be subject
to call prior to maturity at the option of the City.
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, 2025 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 2016 revenue bonds with original
borrowings of $64,790,000. Net revenue is defined in the supplemental master trust indenture of
trust dated June 15, 2016, as operating revenue, less operating expenses plus depreciation. The
purpose of the 2016 bonds is to refund the 2011 bonds, and to finance the expansion and renovation
of the medical facility. The bonds are payable solely from net revenues and payable through 2036.
Total principal and interest remaining to be paid on hospital bonds as of June 30, 2025 is
$88,119,052. Principal and interest paid during the fiscal year was $9,983,346 and net revenue for
the same period, as defined above, was $30,291,179.
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, 2025, is $1,934,275. Principal and
interest paid during the fiscal year ended June 30, 2025, was $966,213 and net revenue for the
same period, as defined above, was $6,954,810.
Landfill post-closure costs
The City stopped accepting solid waste at its landfill effective June 30, 1992 and has since been
closed. One hundred percent of the capacity of the landfill has been used.
Federal and state laws and regulations establish landfill closure and post-closure care requirements.
The state specifies financial assurance requirements in the Code of Iowa enumerating various
Outstanding
Sale Original Final June 30,
Revenue Bonds Date Borrowing Maturity 2025
Electric 2015 9,500,000$ 2.125-5.000 2027 1,855,000$
Hospital refunding 2016 64,790,000 3.000-5.000 2036 50,325,000
Hospital expansion/remodel 2019 35,000,000 1.990 2034 22,665,000
109,290,000$ 74,845,000$
Interest
Rates to
Maturity
101
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
87
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 $75,384 at June 30, 2025, with
a current portion of $13,918.
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, 2025 is $38,780,000.
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 $200,566 during
the fiscal year, and the amount of principal outstanding as of June 30, 2025 is $2,434,000.
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 $611,726 during
the fiscal year, and the amount of principal outstanding as of June 30, 2025 is $6,860,977. The
City has $4,550,023 in capital loan notes still available as of June 30, 2025.
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
secured by a pledge of the net revenues falling due in the same year. In the fiscal year ended June
30, 2025, net revenues were $5,433,226 and principal and interest due of $4,421,563.
102
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
88
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, 2025 is $1,029,000.
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, 2025 is $3,802,000.
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, 2025 is
$370,000.
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, 2025 is
$516,000.
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, 2025 is $7,000,000.
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
103
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
89
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 $2,263,598 during the fiscal year, and the amount of principal outstanding as of June 30,
2025 is $3,324,175.
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. No amounts were borrowed during
the fiscal year. The amount of principal outstanding as of June 30, 2025 is $1,344,000.
The City has an eleventh revenue capital loan note agreement with the IFA in an amount not to
exceed $65,185,000. The funds are to be used for the Water Pollution Control facility. 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. The City borrowed $13,827,079 during the
fiscal year, and the amount of principal outstanding as of June 30, 2025 is $13,827,079. The City
has $51,357,921 in capital loan notes still available as of June 30, 2025.
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, 2025, the sewer fund had net revenues of $5,427,955 and the amount of principal and interest
due was $1,474,202.
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, 2023, related to the 2024-2025 fiscal
year. At June 30, 2025, the outstanding debt of $74,205,000 is below the limit of $328,057,008,
leaving a debt margin of over $253 million.
Changes in long-term liabilities. Changes in the City’s long-term liabilities for the fiscal year
ended June 30, 2025, are as follows:
104
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
90
Historically, liabilities for compensated absences and other post-employment benefits are
generally liquidated by the General Fund, Local Option Sales Tax Fund, Road Use Tax Fund,
Public Housing Fund, Internal Service Funds, and the Community Development Block Grant.
Historically, lease liabilities and subscription-based information technology agreements (SBITAs)
are liquidated from its respective fund which is included within the financial statements.
Balance Balance
June 30, 2024, June 30, 2025,Due Within
restated Additions Deletions restated One Year
Governmental activities:
Bonds payable:
General obligation bonds 65,002,207$ 17,495,000$ (9,818,693)$ 72,678,514$ 9,253,849$
Premium 5,873,291 1,237,930 (902,334) 6,208,887 865,786
Total bonds payable 70,875,498 18,732,930 (10,721,027) 78,887,401 10,119,635
Compensated absences*3,836,146 47,762 - 3,883,908 1,145,970
Lease liability 104,214 - (52,321) 51,893 51,893
Subscription liability 385,417 - (283,845) 101,572 33,143
Governmental activities long-
term debt 75,201,275$ 18,780,692$ (11,057,193)$ 82,924,774$ 11,350,641$
* The roll-forward schedule only reports the net change in the compensated absences liability.
Balance Balance
June 30, 2024,June 30, 2025,Due Within
restated Additions Deletions restated One Year
Business-type activities:
Bonds payable:
Revenue bonds 82,955,000$ -$ (8,110,000)$ 74,845,000$ 6,895,000$
Premium 3,846,547 - (617,039) 3,229,508 576,616
Total revenue bonds 86,801,547 - (8,727,039) 78,074,508 7,471,616
General obligation bonds 2,032,793 - (506,307) 1,526,486 406,151
Premium 175,953 - (51,667) 124,286 40,549
Total general obligation bonds 2,208,746 - (557,974) 1,650,772 446,700
Total bonds payable 89,010,293 - (9,285,013) 79,725,280 7,918,316
Compensated absences *9,710,511 167,332 - 9,877,843 1,219,482
Lease liability 1,240,766 45,611 (619,943) 666,434 491,281
Subscription liability 1,654,560 2,276,843 (1,585,184) 2,346,219 732,212
Capital loan notes payable 66,806,214 16,902,968 (4,421,951) 79,287,231 4,610,175
Business-type activities long-
term debt 168,422,344$ 19,392,754$ (15,912,091)$ 171,903,007$ 14,971,466$
* The roll-forward schedule only reports the net change in the compensated absences liability.
105
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
91
The debt service requirements for the City's bonds are as follows:
Governmental activities:
Business-type activities:
Year Ending
June 30, Principal Interest
2026 9,253,849$ 2,824,634$
2027 8,851,187 2,429,572
2028 8,123,478 2,053,381
2029 7,700,000 1,794,937
2030 7,305,000 1,488,187
2031-2035 22,610,000 4,142,688
2036-2040 4,605,000 1,408,900
2041-2044 4,230,000 431,400
Total 72,678,514$ 16,573,699$
General Obligation Bonds
Year Ending
June 30, Principal Interest Principal Interest
2026 406,151$ 64,397$ 6,895,000$ 2,587,990$
2027 418,813 53,585 7,145,000 2,336,097
2028 231,522 42,426 6,445,000 2,068,984
2029 75,000 13,794 6,655,000 1,859,826
2030 80,000 11,794 6,875,000 1,643,173
2031-2035 315,000 28,761 35,310,000 4,491,457
2036-2040 - - 5,520,000 220,800
Total 1,526,486$ 214,757$ 74,845,000$ 15,208,327$
General Obligation Bonds Revenue Bonds
Year Ending
June 30, Principal Interest
2026 4,610,175$ 1,715,942$
2027 4,795,000 1,622,867
2028 6,657,000 1,525,372
2029 7,344,000 1,378,504
2030 7,824,000 1,213,753
2031-2035 32,398,081 3,557,807
2036-2040 13,634,975 848,547
2041-2044 2,024,000 78,600
Total 79,287,231$ 11,941,392$
Capital Loan Notes
106
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
92
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 25.00% of operating expenditures.
The details for the City’s fund balances are on the following page:
Year Ending
June 30, Principal Interest Principal Interest
2026 11,911,326$ 4,368,329$ 21,165,175$ 7,192,963$
2027 12,358,813 4,012,549 21,210,000 6,442,121
2028 13,333,522 3,636,782 21,457,000 5,690,163
2029 14,074,000 3,252,124 21,774,000 5,047,061
2030 14,779,000 2,868,720 22,084,000 4,356,907
2031-2035 68,023,081 8,078,025 90,633,081 12,220,713
2036-2040 19,154,975 1,069,347 23,759,975 2,478,247
2041-2044 2,024,000 78,600 6,254,000 510,000
Total 155,658,717$ 27,364,476$ 228,337,231$ 43,938,175$
Type Activities
Total Business -Total Primary
Government Debt
107
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
93
Capital Debt Special Permanent
General Projects Service Revenues Funds Total
Nonspendable:
Inventory 23,792$ -$ -$ 210,967$ -$ 234,759$
Prepaid items 156,882 - - 3,278 - 160,160
Perpetual care principal - - - - 1,132,565 1,132,565
Aquatic center endowment - - - - 1,000,000 1,000,000
Total nonspendable fund balance 180,674 - - 214,245 2,132,565 2,527,484
Restricted:
Debt service - - 3,834,328 1,257,007 - 5,091,335
Aquatic center - - - - 165,905 165,905
Street construction - - - 9,909,639 - 9,909,639
Environment and economic betterment - 8,325,982 - 11,676,001 - 20,001,983
General obligation bond projects - 23,398,233 - - - 23,398,233
Housing assistance - - - 590,394 - 590,394
Public safety - - - 784,921 - 784,921
Library - - - 486,894 - 486,894
Parks and recreation - 583,894 - - - 583,894
Project Share - - - 4,820 - 4,820
Developers' projects - - - 248,982 - 248,982
Total restricted fund balance - 32,308,109 3,834,328 24,958,658 165,905 61,267,000
Committed:
Parks and recreation - 2,039,725 - 524,396 - 2,564,121
Housing assistance - - - 383,348 - 383,348
Green energy projects - - - 18,113 - 18,113
Environment and economic betterment - - - 3,908,647 - 3,908,647
Public Art Donations - - - 32 - 32
Total committed fund balance - 2,039,725 - 4,834,536 - 6,874,261
Assigned:
Administration 84,463 - - - - 84,463
City Hall maintenance 230,977 - - - - 230,977
City Manager 12,668 - - - - 12,668
Cemetery 25,599 - - - - 25,599
Fire 110,875 - - - - 110,875
Planning 1,139 - - - - 1,139
Police 11,853 - - - - 11,853
Parks and Recreation 1,752 - - - - 1,752
Parks and Recreation maintenance 10,699 - - - - 10,699
Parks and Recreation CIP 280,973 - - - - 280,973
Public Relations 11,102 - - - - 11,102
Sustainability 59,998 - - - - 59,998
Total assigned fund balance 842,098 - - - - 842,098
Unassigned 13,515,903 (1,404,888) - - - 12,111,015
Total fund balance 14,538,675$ 32,942,946$ 3,834,328$ 30,007,439$ 2,298,470$ 83,621,858$
108
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
94
4.14 Inter-fund receivables and payables
The composition of inter-fund balances as of June 30, 2025, is as follows:
The outstanding balances between funds result mainly from the time lag between the dates that
interfund goods and services are provided, or reimbursable expenditures occur.
Receivable Fund General Fund
Capital
Projects Electric Sewer Water
Major Funds:
General Fund -$ 8,437$ 382,831$ 116,723$ 137,073$
Capital Projects - - - - -
Electric 74,603 - - 31,109 32,788
Sewer 101 - 48,071 - 141,480
Water - 405 48,571 146,937 -
Non-Major Funds:
Special Revenue 362,189 457,875 12,033 160,382 185,013
Enterprise 11,281 71,759 82,454 - -
Internal Service 220,316 4,425 225,561 104,969 50,933
Total 668,490$ 542,901$ 799,521$ 560,120$ 547,287$
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 51,553$ 1,080,539$ 166,143$ 126,719$ 2,070,018$
Capital Projects - 49,900 - - 49,900
Electric - 16 - - 138,516
Sewer - - 1,811 - 191,463
Water - - - - 195,913
Non-Major Funds:
Special Revenue - 89,599 287,787 - 1,554,878
Enterprise - 3,823 - 1,219 170,536
Internal Service - 350,709 155,305 5,760 1,117,978
Total 51,553$ 1,574,586$ 611,046$ 133,698$ 5,489,202$
Payable Fund
109
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
95
4.15 Inter-fund transfers
The composition of inter-fund transfers for the year ended June 30, 2025, 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 $3,380,391.
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 $165,905 at June 30,
2025, 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
$2,487,805. Certain agreements include provisions for the payment of interest.
During the fiscal year ended June 30, 2025, the City rebated $347,950 of incremental property tax
to developers, which was all for principal. The total cumulative principal amount rebated on the
Transfers In General Fund
Capital
Projects Electric Water
Non-Major
Special Revenue
Non-Major
Enterprise Total
Major Funds:
General Fund -$ 6,478$ 2,420,784$ -$ 7,378,953$ -$ 9,806,215$
Capital Projects 3,000,000 - - 100,000 - 3,100,000
Debt Service - 38,450 - 761 332,051 7,991 379,253
Non-Major Funds:
Special Revenue 200,000 - - - 173,200 - 373,200
Enterprise 2,758,927 - - - 50,000 - 2,808,927
Total 5,958,927$ 44,928$ 2,420,784$ 761$ 8,034,204$ 7,991$ 16,467,595$
Transfers Out
110
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
96
agreements is $1,802,254. The outstanding balance on the agreements at June 30, 2025 was
$685,551.
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%. Assessed tax abated during FY2025 was $43,056,400 under this
designation.
For the fiscal year ended June 30, 2025, the City abated $347,950 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, 2025.
4.19 Implementation of GASB Statement No. 101 and No. 102
As of July 1, 2024, the City adapted GASB Statement No. 101, “Compensated Absences.” The
objective of the Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
111
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
97
achieved by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. The impact to the City resulted in the reporting
of sick leave annual payments in the short term compensated absences.
As of July 1, 2024 the City adapted GASB Statement No. 102, “Certain Risk Disclosures.” 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.
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. 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.
Statement No. 104, “Disclosure of Certain Capital Assets.” The requirements of this
Statement will take effect for financial statements starting with the fiscal year that ends
June 30, 2026.
Statement No. 105, “Subsequent Events.” The requirements of this Statement will take
effect for financial statements starting with the fiscal year that ends June 30, 2027.
4.21 Contingencies
The City's Legal Department reported to management that, as of June 30, 2025, 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,
112
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
98
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.
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.
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 October 14, 2025, the City issued $12,530,000 of general obligation, corporate purpose bonds
for paying the cost of constructing street and incidental public infrastructure improvements;
acquiring and installing street lighting, signage, and signalization improvements; undertaking trail
and related improvements to Ada Hayden Heritage Park; undertaking improvements to the municipal
airport and undertaking alerting system improvements at municipal fire station facilities. The interest
rates on the bonds are 4.000% - 5.000% with final maturity on June 1, 2037.
4.24 Adjustments and restatements of beginning balances
During the current year, the City of Ames implements GASB Statement No. 101, Compensated
Absences. In addition to the value of unused vacation time owed to employees upon separation of
employment, the City of Ames now recognized an estimated amount of sick leave earned as of year-
end that will be used by employees as time-off in future years as part of the liability for compensated
absences. This was calculated using a five-year average of paid out sick leave. The effects of the
113
CITY OF AMES, IOWA
NOTES TO THE FINANCIAL STATEMENTS (continued)
JUNE 30, 2025
99
change in accounting principle are summarized below in the “Restatement – GASB 101
implementation” column in the table below.
Net position/fund Net position/fund
balance 6/30/2024 Restatement - balance 6/30/2024
as previously GASB 101 as
reported implementation restated / adjusted
Government-wide
Governmental activities 234,783,670$ (1,037,253)$ 233,746,417$
Business-type activities 918,340,323 (445,033) 917,895,290
Total government-wide 1,153,123,993$ (1,482,286)$ 1,151,641,707$
Governmental funds
Major funds:
General fund 17,045,839$ -$ 17,045,839$
Capital projects 26,566,026 - 26,566,026
Debt service 3,870,709 - 3,870,709
Nonmajor funds 35,348,960 - 35,348,960
Total governmental funds 82,831,534$ -$ 82,831,534$
Proprietary funds
Enterprise funds
Major funds:
Mary Greeley Medical Center 507,626,604$ -$ 507,626,604$
Electric fund 157,337,078 (153,535) 157,183,543
Sewer fund 61,630,133 (20,427) 61,609,706
Water fund 86,862,637 (49,030) 86,813,607
Non-major enterprise fund 91,833,226 (222,041) 91,611,184
Total enterprise funds 905,289,678$ (445,033)$ 904,844,644$
Internal service funds 39,770,118$ (49,937)$ 39,720,181$
114
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REQUIRED SUPPLEMENTARY
INFORMATION
116
102
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117
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
103
*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.
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
City's proportion of the net pension liability (asset)1.2818000%1.3213807%1.3057620%-0.0380697%1.1986846%1.1690479%1.1516658%1.1292958%1.1552370%1.1616104%
City's proportionate share of the net pension liability 46,677,288$ 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$
City's covered payroll*122,217,356$ 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$
City's proportionate share of the net pension liability as a
percentage of its covered payroll 38.19%50.09%45.62%0.14%87.03%74.67%82.87%87.87%86.31%70.62%
Plan fiduciary net position as a percentage of the total pension
liability 92.30%90.13%91.40%100.81%82.90%85.45%83.62%82.21%81.82%85.19%
118
CITY OF AMES, IOWA
SCHEDULE OF CITY CONTRIBUTIONS
IOWA PUBLIC EMPLOYEE’S RETIREMENT SYSTEM
LAST TEN FISCAL YEARS
104
See Notes to Required Supplementary Information.
Contributions
in Relation to Contributions
Fiscal Statutorily the Statutorily City's as a Percentage
Year Required Required Covered of Covered
Ended Contribution Contribution Payroll Payroll
2025 12,000,767$ 12,000,767$ 127,309,984$ 9.43%
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%
IPERS - Combined
119
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
105
*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
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
City's proportion of the net pension liability 2.490188%2.536032%2.565791%2.675493%2.677595%2.663532%2.719769%2.651310%2.649945%2.696727%
City's proportionate share of the net pension liability 16,454,725$ 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$
City's covered payroll*9,331,460$ 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$
City's proportionate share of the net pension liability as a
percentage of its covered payroll 176.34%173.27%166.27%69.51%253.18%216.64%205.86%207.14%230.76%180.88%
Plan fiduciary net position as a percentage of the total pension
liability 83.37%83.53%84.62%93.62%76.47%79.94%81.07%80.60%78.20%83.04%
120
CITY OF AMES, IOWA
SCHEDULE OF CITY CONTRIBUTIONS
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST TEN FISCAL YEARS
106
See Notes to Required Supplementary Information
Contributions
in Relation to Contributions
Fiscal Statutorily the Statutorily City's as a Percentage
Year Required Required Covered of Covered
Ended Contribution Contribution Payroll Payroll
2025 2,225,933$ 2,225,933$ 9,691,283$ 22.97%
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%
MFPRSI
121
CITY OF AMES, IOWA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST EIGHT FISCAL YEARS*
107
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:2025 2024 2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 367,193$ 195,071$ 199,160$ 181,568$ 177,816$ 140,814$ 128,949$ 124,144$
Interest 215,881 109,999 105,760 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 (654,590) 232,831 (30,021) (99,678) 11,592 746,954 70,173 (51,203)
Benefit payments (214,859) (283,759) (205,641) (197,042) (197,291) (150,412) (133,691) (97,725)
Net change in total OPEB liability (286,375) 2,271,801 69,258 340,663 49,148 437,536 142,203 50,537
Total OPEB liability, beginning 5,232,291 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 4,945,916$ 5,232,291$ 2,960,490$ 2,891,232$ 2,550,569$ 2,501,421$ 2,063,885$ 1,921,682$
Covered-employee payroll 53,094,291$ 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 9.32%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%2025 5.20%
2021 2.16%
122
CITY OF AMES, IOWA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST EIGHT FISCAL YEARS*
108
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:2025 2024 2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 224,224$ 192,131$ 236,111$ 227,329$ 201,432$ 171,392$ 183,570$ 230,410$
Interest 164,657 176,573 103,468 98,212 147,571 188,216 171,689 155,873
Differences between expected and
actual experience 779,254 (339,409) (59,957) (339,352) (432,129) (480,311) (518,903) 907,372
Changes in assumptions or other inputs (84,905) 330,835 (629,822) 61,467 349,124 211,750 (208,768) (448,839)
Change in benefit terms (281,492) - - - - - - -
Benefit payments (577,330) (171,767) (44,963) (135,587) (235,143) (113,258) 57,836 (10,501)
Net change in total OPEB liability 224,408 188,363 (395,163) (87,931) 30,855 (22,211) (314,576) 834,315
Total OPEB liability, beginning 4,178,041 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 4,402,449$ 4,178,041$ 3,989,678$ 4,384,841$ 4,472,772$ 4,441,917$ 4,464,128$ 4,778,704$
Covered-employee payroll 91,601,695$ 87,881,713$ 76,610,358$ 73,471,503$ 62,532,773$ 62,732,418$ 61,873,578$ 65,765,292$
Total OPEB liability as a percentage
of covered-employee payroll 4.81%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%2025 4.28%
2021 2.12%
123
CITY OF AMES, IOWA
BUDGETARY COMPARISON SCHEDULE
GOVERNMENTAL AND PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
109
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 35,694,803$ -$ 35,694,803$ 35,963,162$ 35,963,162$ (268,359)$
Delinquent property taxes (102,322) - (102,322) - - (102,322)
TIF revenues 347,950 - 347,950 418,000 375,000 (27,050)
Other taxes 15,141,916 - 15,141,916 14,981,591 15,285,591 (143,675)
Licenses and permits 1,243,773 24,300 1,268,073 1,612,051 1,562,801 (294,728)
Use of money and property 4,713,746 8,854,857 13,568,603 27,306,660 27,529,892 (13,961,289)
Intergovernmental 19,451,938 16,265,294 35,717,232 34,360,617 59,852,598 (24,135,366)
Charges for services 2,353,619 371,326,605 373,680,224 354,398,828 350,247,414 23,432,810
Special assessments 303,875 - 303,875 227,104 227,104 76,771
Miscellaneous 6,872,717 1,112,875 7,985,592 2,831,061 12,845,116 (4,859,524)
Other financing sources, including Transfers in 36,274,137 19,691,121 55,965,258 44,899,000 87,286,725 (31,321,467)
Transfers in - - - 17,577,843 - -
Total revenues and other financing sources 122,296,152 417,275,052 539,571,204 534,575,917 591,175,403 (51,604,199)
Expenditures and other financing uses:
General government 3,442,608 - 3,442,608 4,002,688 4,404,001 961,393
Public safety 22,563,879 - 22,563,879 23,466,013 23,331,095 767,216
Public works 8,464,732 - 8,464,732 8,682,215 8,989,816 525,084
Health and social services 1,936,218 - 1,936,218 1,972,516 1,983,628 47,410
Culture and recreation 10,674,278 - 10,674,278 11,120,724 11,300,541 626,263
Community and economic development 6,992,682 - 6,992,682 5,343,010 9,356,964 2,364,282
Debt service 13,421,870 - 13,421,870 13,427,853 13,424,288 2,418
Capital outlay 36,458,299 - 36,458,299 33,382,258 73,262,739 36,804,440
Total governmental expenditures 103,954,566 - 103,954,566 101,397,277 146,053,072 42,098,506
Business-type expenditures - 400,076,249 400,076,249 385,600,723 445,166,525 45,090,276
Total expenditures and other financing uses 103,954,566 400,076,249 504,030,815 486,998,000 591,219,597 87,188,782
Other financing uses 17,336,307 3,013,827 20,350,134 17,577,843 21,861,019 1,510,885
Total expenditures, other financing uses,
and transfers out 121,290,873 403,090,076 524,380,949 504,575,843 613,080,616 88,699,667
Excess revenues and other financing sources
over (under) expenditures, other financing uses,
and transfers out 1,005,279 14,184,976 15,190,255 30,000,074 (21,905,213) 37,095,468
Fund balances, beginning 81,701,973 1,309,750,718 1,391,452,691 935,213,530 997,007,631 394,445,060
Fund balances, ending 82,707,252$ 1,323,935,694$ 1,406,642,946$ 965,213,604$ 975,102,418$ 431,540,528$
124
CITY OF AMES, IOWA
BUDGETARY COMPARISON SCHEDULE
BUDGET TO GAAP RECONCILIATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
110
See Notes to Required Supplementary Information
Modified
Budget Accrual Budget Accrual
Basis Adjustments Basis Basis Adjustments Basis
Revenues and other financing sources 122,296,152$ (18,366,726)$ 103,929,426$ 417,275,052$ 32,626,185$ 449,901,237$
Expenditures and other financing uses 121,290,873 (18,151,771) 103,139,102 403,090,076 (22,249,296) 380,840,780
Excess revenues and other financing sources
over expenditures and other financing uses 1,005,279 (214,955) 790,324 14,184,976 54,875,481 69,060,457
Fund balances, beginning 81,701,973 1,129,561 82,831,534 1,309,750,718 (404,906,074) 904,844,644
Fund balances, ending 82,707,252$ 914,606$ 83,621,858$ 1,323,935,694$ (350,030,593)$ 973,905,101$
Governmental Funds Proprietary Funds
125
CITY OF AMES, IOWA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
111
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.
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.
126
CITY OF AMES, IOWA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (continued)
JUNE 30, 2025
112
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed post-retirement mortality 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.
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
$108,504,773. These amendments are reflected in the final budget amount.
127
SUPPLEMENTARY
INFORMATION
128
114
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129
CITY OF AMES, IOWA
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
115
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.
130
CITY OF AMES, IOWA
NON-MAJOR GOVERNMENTAL FUNDS (continued)
SPECIAL REVENUE FUNDS
116
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.
131
CITY OF AMES, IOWA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
117
Non-Major Furman Total
Special Aquatic Non-Major
Revenue Perpetual Center Governmental
Funds Care Endowment Funds
ASSETS
Cash and cash equivalents 5,561,671$ 36,529$ 228,219$ 5,826,419$
Investments 24,501,782 1,147,392 933,648 26,582,822
Accrued interest receivable 10,014 - 4,038 14,052
Accounts receivable, net 1,147 197 - 1,344
Intergovernmental receivable 2,634,030 - - 2,634,030
Loans receivable 311 - - 311
Due from other funds 1,554,878 - - 1,554,878
Inventories 210,967 - - 210,967
Property held for resale 602,425 - - 602,425
Prepaid items 3,278 - - 3,278
Total assets 35,080,503$ 1,184,118$ 1,165,905$ 37,430,526$
LIABILITIES
Accounts payable 1,729,329$ -$ -$ 1,729,329$
Accrued payroll 109,819 - - 109,819
Retainage payable 229,906 - - 229,906
Customer deposits 1,210,128 - - 1,210,128
Intergovernmental payable 10,686 - - 10,686
Due to other funds 1,574,586 51,553 - 1,626,139
Total liabilities 4,864,454 51,553 - 4,916,007
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants 208,610 - - 208,610
Total deferred inflows of resources 208,610 - - 208,610
FUND BALANCES
Nonspendable 214,245 1,132,565 1,000,000 2,346,810
Restricted 24,958,658 - 165,905 25,124,563
Committed 4,834,536 - - 4,834,536
Total fund balances 30,007,439 1,132,565 1,165,905 32,305,909
Total liabilities, deferred inflows of resources,
and fund balances 35,080,503$ 1,184,118$ 1,165,905$ 37,430,526$
Permanent Funds
132
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
118
Non-Major Furman Total
Special Aquatic Non-Major
Revenue Perpetual Center Governmental
Funds Care Endowment Funds
REVENUES
Taxes 15,214,397$ -$ -$ 15,214,397$
Intergovernmental 12,033,887 - - 12,033,887
Charges for services - 23,305 - 23,305
Fines and forfeitures 24,161 - - 24,161
Investment income 144,973 - 58,671 203,644
Miscellaneous 1,161,671 - - 1,161,671
Total revenues 28,579,089 23,305 58,671 28,661,065
EXPENDITURES
Current:
General government 19,058 - - 19,058
Public safety 206,819 - - 206,819
Public works 7,383,024 - - 7,383,024
Health and social services 1,924,218 - - 1,924,218
Culture and recreation 777,633 - 16,696 794,329
Community and economic development 6,135,751 - - 6,135,751
Capital outlay 7,579,913 - - 7,579,913
Total expenditures 24,026,416 - 16,696 24,043,112
Excess of revenues over expenditures 4,552,673 23,305 41,975 4,617,953
OTHER FINANCING SOURCES (USES)
Transfers in 373,200 - - 373,200
Transfers out (8,034,204) - - (8,034,204)
Total other financing sources (uses)(7,661,004) - - (7,661,004)
Net change in fund balance (3,108,331) 23,305 41,975 (3,043,051)
Fund balances, beginning 33,115,770 1,109,260 1,123,930 35,348,960
Fund balances, ending 30,007,439$ 1,132,565$ 1,165,905$ 32,305,909$
Permanent Funds
133
CITY OF AMES, IOWA
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2025
119
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 1,844,154$ 306,522$ 1,627,512$ -$ 27,628$ 871$ 118,890$ 69,410$ -$
Investments 8,214,005 1,365,270 7,249,060 - 123,053 3,883 512,768 309,158 -
Accrued interest receivable - - - - - - 1,074 - -
Accounts receivable, net - - 319 - - - 179 - -
Intergovernmental receivable 1,167,504 - 725,678 - 13,471 - - 5,787 511,590
Loans receivable - - - - - - - - 311
Due from other funds 50,953 326,572 1,174,350 - 338 - - 2,395 270
Inventories - - 210,967 - - - - - -
Property held for resale - - - - - - - - 602,425
Prepaid items - - 3,125 - - - - - -
Total assets 11,276,616$ 1,998,364$ 10,991,011$ -$ 164,490$ 4,754$ 632,911$ 386,750$ 1,114,596$
LIABILITIES
Accounts payable 629,807$ 102,482$ 261,827$ -$ -$ -$ 6,810$ -$ 257,636$
Accrued payroll 233 - 104,792 - - - - 669 1,584
Retainage payable 21,695 - 42,355 - - - - - 18,825
Intergovernmental payable - - 1,526 - - - 1,800 - -
Due to other funds 794,862 49,900 456,780 - 14 - - 2,733 246,157
Total liabilities 1,446,597 152,382 867,280 - 14 - 8,610 3,402 524,202
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants - - - - 8,610 - - - -
Total deferred inflows of resources - - - - 8,610 - - - -
FUND BALANCES
Nonspendable - - 214,092 - - - - - -
Restricted 9,830,019 1,845,982 9,909,639 - 155,866 4,754 624,301 - 590,394
Committed - - - - - - - 383,348 -
Total fund balances 9,830,019 1,845,982 10,123,731 - 155,866 4,754 624,301 383,348 590,394
Total liabilities, deferred inflows
of resources, and fund balances
11,276,616$ 1,998,364$ 10,991,011$ -$ 164,490$ 4,754$ 632,911$ 386,750$ 1,114,596$
134
CITY OF AMES, IOWA
COMBINING BALANCE SHEET (continued)
NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2025
120
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 -$ 121,724$ 702,588$ 101,127$ 4,085$ 5$ 280,897$ 100,322$ 255,936$ 5,561,671$
Investments - 474,823 3,129,383 414,182 18,199 27 1,244,273 446,843 996,855 24,501,782
Accrued interest receivable - 2,684 - 1,850 - - 190 - 4,216 10,014
Accounts receivable, net - - - - 649 - - - - 1,147
Intergovernmental receivable - 210,000 - - - - - - - 2,634,030
Loans receivable - - - - - - - - - 311
Due from other funds - - - - - - - - - 1,554,878
Inventories - - - - - - - - - 210,967
Property held for resale - - - - - - - - - 602,425
Prepaid items - - - 153 - - - - - 3,278
Total assets -$ 809,231$ 3,831,971$ 517,312$ 22,933$ 32$ 1,525,360$ 547,165$ 1,257,007$ 35,080,503
LIABILITIES
Accounts payable -$ 59,215$ 325,126$ 20,176$ -$ -$ 66,250$ -$ -$ 1,729,329$
Accrued payroll - - 20 2,521 - - - - - 109,819
Retainage payable - 5,465 141,566 - - - - - - 229,906
Customer deposits - - - - - - 1,210,128 - - 1,210,128
Intergovernmental payable - - - 7,360 - - - - - 10,686
Due to other funds - 20,155 3,777 208 - - - - - 1,574,586
Total liabilities - 84,835 470,489 30,265 - - 1,276,378 - - 4,864,454
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue:
Grants - 200,000 - - - - - - - 208,610
Total deferred inflows of resources - 200,000 - - - - - - - 208,610
FUND BALANCES
Nonspendable - - - 153 - - - - - 214,245
Restricted - - - 486,894 4,820 - 248,982 - 1,257,007 24,958,658
Committed - 524,396 3,361,482 - 18,113 32 - 547,165 - 4,834,536
Total fund balances - 524,396 3,361,482 487,047 22,933 32 248,982 547,165 1,257,007 30,007,439
Total liabilities, deferred inflows
of resources, and fund balances -$ 809,231$ 3,831,971$ 517,312$ 22,933$ 32$ 1,525,360$ 547,165$ 1,257,007$ 35,080,503$
135
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, 2025
121
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 11,838,478$ 3,027,969$ -$ -$ -$ -$ -$ -$ -$
Intergovernmental - - 9,407,574 - 41,675 - - 1,948,389 542,708
Fines and forfeitures - - - - 24,161 - - - -
Investment income - - - - - - 9,591 - 12
Miscellaneous - - 30 - - 2,318 592,652 - 46,517
Total revenues 11,838,478 3,027,969 9,407,604 - 65,836 2,318 602,243 1,948,389 589,237
EXPENDITURES
Current:
General government 6,758 12,300 - - - - - - -
Public safety - - - - 79,803 6,059 120,957 - -
Public works - - 7,383,024 - - - - - -
Health and social services 1,904,943 - - - - - - - -
Culture and recreation 341,038 - - - - - - - -
Community and economic
development 307,035 2,569,413 28,032 - - - - 1,981,908 873,381
Capital outlay 3,072,026 89,875 1,500,174 10,026 - - - - -
Total expenditures 5,631,800 2,671,588 8,911,230 10,026 79,803 6,059 120,957 1,981,908 873,381
Excess (deficiency) of revenues
over (under) expenditures 6,206,678 356,381 496,374 (10,026) (13,967) (3,741) 481,286 (33,519) (284,144)
OTHER FINANCING SOURCES
(USES)
Transfers in 173,200 - - - - - - - -
Transfers out (7,243,087) (443,000) - - - - - - -
Total other financing sources
(uses)(7,069,887) (443,000) - - - - - - -
Net change in fund balances (863,209) (86,619) 496,374 (10,026) (13,967) (3,741) 481,286 (33,519) (284,144)
Fund balances, beginning 10,693,228 1,932,601 9,627,357 10,026 169,833 8,495 143,015 416,867 874,538
Fund balances, ending 9,830,019$ 1,845,982$ 10,123,731$ -$ 155,866$ 4,754$ 624,301$ 383,348$ 590,394$
136
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, 2025
122
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 -$ -$ -$ -$ -$ -$ -$ -$ 347,950$ 15,214,397$
Intergovernmental - 48,804 - 16,706 - - - 28,031 - 12,033,887
Fines and forfeitures - - - - - - - - - 24,161
Investment income 173 33,538 - 26,837 - - 2,723 - 72,099 144,973
Miscellaneous - 200,659 - 295,297 24,198 - - - - 1,161,671
Total revenues 173 283,001 - 338,840 24,198 - 2,723 28,031 420,049 28,579,089
EXPENDITURES
Current:
General government - - - - - - - - - 19,058
Public safety - - - - - - - - - 206,819
Public works - - - - - - - - - 7,383,024
Health and social services - - - - 19,275 - - - - 1,924,218
Culture and recreation - 77,742 - 354,903 - 3,950 - - - 777,633
Community and economic
development - - - - - - - 28,032 347,950 6,135,751
Capital outlay - 110,246 2,789,825 7,741 - - - - - 7,579,913
Total expenditures - 187,988 2,789,825 362,644 19,275 3,950 - 28,032 347,950 24,026,416
Excess (deficiency) of revenues
over (under) expenditures 173 95,013 (2,789,825) (23,804) 4,923 (3,950) 2,723 (1) 72,099 4,552,673
OTHER FINANCING SOURCES
(USES)
Transfers in - 200,000 - - - - - - - 373,200
Transfers out (16,067) - - - - - - - (332,050) (8,034,204)
Total other financing sources
(uses)(16,067) 200,000 - - - - - - (332,050) (7,661,004)
Net change in fund balances (15,894) 295,013 (2,789,825) (23,804) 4,923 (3,950) 2,723 (1) (259,951) (3,108,331)
Fund balances, beginning 15,894 229,383 6,151,307 510,851 18,010 3,982 246,259 547,166 1,516,958 33,115,770
Fund balances, ending -$ 524,396$ 3,361,482$ 487,047$ 22,933$ 32$ 248,982$ 547,165$ 1,257,007$ 30,007,439$
137
CITY OF AMES, IOWA
NON-MAJOR ENTERPRISE FUNDS
123
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.
138
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2025
124
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 831,121$ 310,044$ 5,185,539$ 1,919,400$ 87,413$ 212,298$ 282,647$ 8,828,462$
Investments 2,507,976 1,113,081 19,356,169 7,044,589 293,311 777,884 1,153,238 32,246,248
Accrued interest receivable 7,893 4,877 86,645 30,709 1,410 3,364 4,594 139,492
Accounts receivable, net 29,870 8,666 209,353 222,021 48,753 95 336,650 855,408
Lease receivable - current 67,853 - - - - - - 67,853
Due from other funds - - 5,968 84,634 73 4,534 75,327 170,536
Intergovernmental receivable 532,498 1,530 1,234,950 - 41,662 - 405,762 2,216,402
Inventories - 27,123 361,527 - - - - 388,650
Prepaid items 5,120 1,413 25,786 - - - - 32,319
Total current assets 3,982,331 1,466,734 26,465,937 9,301,353 472,622 998,175 2,258,218 44,945,370
Noncurrent assets:
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 2,277,551 11,639,612 274,898 127,581 172,379 27,531,282
Buildings 4,978,610 - 27,685,613 - 1,870,329 21,053 11,384,597 45,940,202
Equipment 16,920 - 39,788,607 36,858 348,212 26,373 8,051,683 48,268,653
Lease assets - - - - - 52,316 - 52,316
Subscription based IT assets - - 16,975 - - - - 16,975
Construction in progress 3,506,524 - 194,944 - - - 212,572 3,914,040
Less accumulated depreciation/amortization (10,875,907) (598,408) (40,594,769) (1,105,186) (1,887,915) (193,046) (17,088,090) (72,343,321)
Lease receivable - long term 1,128,917 - - - - - - 1,128,917
Total noncurrent assets 12,554,905 935,677 29,410,421 11,304,667 605,524 227,527 3,264,658 58,303,379
Total assets 16,537,236 2,402,411 55,876,358 20,606,020 1,078,146 1,225,702 5,522,876 103,248,749
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 1,229 23,340 350,948 18,542 7,355 6,174 71,584 479,172
Deferred outflows related to pensions 4,678 57,185 1,122,666 39,235 26,442 17,084 135,185 1,402,475
Total deferred outflows of resources 5,907 80,525 1,473,614 57,777 33,797 23,258 206,769 1,881,647
139
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION (continued)
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2025
125
Total
Storm Ames / ISU Homewood Non-Major
Water Ice Golf Resource Enterprise
Airport Parking Transit Utility Arena Course Recovery Funds
LIABILITIES
Current liabilities:
Accounts payable 124,457$ 4,097$ 237,866$ 299,258$ 35,063$ 15,390$ 200,964$ 917,095$
Accrued payroll - 8,063 247,125 8,795 1,869 4,888 7,167 277,907
Accrued compensated absences 5,679 22,571 264,842 5,916 2,173 1,476 4,406 307,063
Accrued other post-employment benefits 149 1,847 36,348 1,374 989 622 4,489 45,818
Due to other funds 2,449 29,852 76,348 260,152 5,363 13,482 223,400 611,046
Retainage payable 144,401 - 9,842 20,120 - - - 174,363
Accrued interest 1,387 - - - - - - 1,387
Lease liabilities - - - - - 7,259 - 7,259
Subscription based IT asset liability - - 2,917 - - - - 2,917
Intergovernmental payable 1,150 554 12,190 - - - 66,778 80,672
Accrued landfill post-closure costs - - - - - - 13,918 13,918
Bonds payable, net 46,774 - - - - - - 46,774
Total current liabilities 326,446 66,984 887,478 595,615 45,457 43,117 521,122 2,486,219
Noncurrent liabilities:
Accrued compensated absences 8,417 53,817 624,751 31,588 11,378 7,249 58,785 795,985
Accrued other post-employment benefits 1,507 46,023 577,042 34,855 12,773 10,525 143,916 826,641
Net pension liability 12,706 155,343 3,049,744 106,583 71,831 46,407 367,234 3,809,848
Accrued landfill post-closure costs - - - - - - 61,466 61,466
Bonds payable, net 510,817 - - - - - - 510,817
Total noncurrent liabilities 533,447 255,183 4,251,537 173,026 95,982 64,181 631,401 6,004,757
Total liabilities 859,893 322,167 5,139,015 768,641 141,439 107,298 1,152,523 8,490,976
DEFERRED INFLOWS OF RESOURCES
Deferred inflow related to leases 1,149,910 - - - - - - 1,149,910
Deferred inflows related to OPEB 374 8,192 120,408 5,923 3,259 2,153 22,526 162,835
Deferred inflows related to pensions 24 289 5,687 198 134 87 684 7,103
1,150,308 8,481 126,095 6,121 3,393 2,240 23,210 1,319,848
NET POSITION
Net investment in capital assets 10,723,996 935,677 29,397,662 11,284,547 605,524 220,268 3,264,658 56,432,332
Unrestricted 3,808,946 1,216,611 22,687,200 8,604,488 361,587 919,154 1,289,254 38,887,240
Total net position 14,532,942$ 2,152,288$ 52,084,862$ 19,889,035$ 967,111$ 1,139,422$ 4,553,912$ 95,319,572$
140
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
126
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 206,946$ 842,008$ 7,287,587$ 1,997,093$ 663,072$ 571,018$ 4,663,515$ 16,231,239$
Operating expenses:
Cost of goods and services 194,347 791,999 11,693,941 1,446,853 570,076 348,295 4,217,067 19,262,578
Administration - - 2,706,536 - - - 166,193 2,872,729
Depreciation 523,811 2,645 2,927,074 234,162 106,178 19,322 369,714 4,182,906
Total operating expenses 718,158 794,644 17,327,551 1,681,015 676,254 367,617 4,752,974 26,318,213
Operating income (loss)(511,212) 47,364 (10,039,964) 316,078 (13,182) 203,401 (89,459) (10,086,974)
Non-operating revenues (expenses):
Intergovernmental 66,723 - 6,093,225 - - - - 6,159,948
Reimbursements (1,675) 209 55,651 - - - - 54,185
Investment income 131,176 71,321 1,177,880 425,377 19,672 43,939 50,500 1,919,865
Interest revenue (expense)(16,107) - (160) - - (481) 11,046 (5,702)
Loss on disposal of capital assets - - (11,116) (92,728) - - - (103,844)
Miscellaneous - 555 35,915 98,000 224 - 1,834 136,528
Total non-operating revenues 180,117 72,085 7,351,395 430,649 19,896 43,458 63,380 8,160,980
Income (loss) before capital
contributions and transfers (331,095) 119,449 (2,688,569) 746,727 6,714 246,859 (26,079) (1,925,994)
Capital contributions 2,464,853 - 307,920 - 40,000 20,673 - 2,833,446
Transfers in - 10,000 2,166,443 - 40,000 - 592,484 2,808,927
Transfers out (7,990) - - - - - (1) (7,991)
Change in net position 2,125,768 129,449 (214,206) 746,727 86,714 267,532 566,404 3,708,388
Net position, beginning of year,
as previously presented 12,411,400 2,039,187 52,494,146 19,146,901 881,538 872,546 3,987,508 91,833,226
Restatements (4,226) (16,348) (195,078) (4,593) (1,141) (656) - (222,042)
Net position, beginning, as restated 12,407,174 2,022,839 52,299,068 19,142,308 880,397 871,890 3,987,508 91,611,184
Net position, end of year 14,532,942$ 2,152,288$ 52,084,862$ 19,889,035$ 967,111$ 1,139,422$ 4,553,912$ 95,319,572$
141
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
127
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 421,614$ 847,570$ 7,246,372$ 1,942,358$ 628,988$ 567,854$ 4,696,124$ 16,350,880$
Payments to suppliers (72,916) (116,749) (3,589,926) (593,577) (233,700) (100,258) (2,077,601) (6,784,727)
Payments to employees (47,615) (576,306) (10,966,728) (434,323) (294,995) (189,267) (1,472,172) (13,981,406)
Payments to other funds for services provided (47,124) (194,487) (781,270) (192,918) (45,566) (42,569) (847,226) (2,151,160)
Net cash provided by (used for) operating activities 253,959 (39,972) (8,091,552) 721,540 54,727 235,760 299,125 (6,566,413)
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating grants 66,723 - 6,093,225 - - - - 6,159,948
Reimbursements (1,675) 209 55,651 - - - - 54,185
Miscellaneous income - 555 35,913 98,000 224 - 1,834 136,526
Transfers in - 10,000 2,166,443 - 40,000 - 592,484 2,808,927
Transfers out (7,990) - - - - - (1) (7,991)
Net cash provided by (used for) non-capital financing
activities 57,058 10,764 8,351,232 98,000 40,224 - 594,317 9,151,595
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,402,091) - (1,151,957) (274,051) (141,424) (15,169) (277,520) (4,262,212)
Principal paid on capital debt (45,000) - - - - - (107,773) (152,773)
Interest paid on capital debt (17,994) - - - - - (5,389) (23,383)
Interest paid on leases - - (160) - - (481) - (641)
Capital contributions 2,392,153 - 307,920 - 40,000 - - 2,740,073
Net cash capital and related
financing activities (72,932) - (844,197) (274,051) (101,424) (15,650) (390,682) (1,698,936)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (2,727,570) (1,210,540) (21,050,956) (7,661,400) (318,992) (845,994) (1,254,213) (35,069,665)
Proceeds from sale of investments 2,439,244 1,181,957 20,509,134 6,898,180 313,679 638,693 795,264 32,776,151
Interest on investments 135,411 71,672 1,181,176 424,605 19,874 43,235 49,392 1,925,365
Net cash provided by investing activities (152,915) 43,089 639,354 (338,615) 14,561 (164,066) (409,557) (368,149)
Net increase (decrease) in cash and cash equivalents 85,170 13,881 54,837 206,874 8,088 56,044 93,203 518,097
Cash and cash equivalents, beginning 745,951 296,163 5,130,702 1,712,526 79,325 156,254 189,444 8,310,365
Cash and cash equivalents, ending 831,121$ 310,044$ 5,185,539$ 1,919,400$ 87,413$ 212,298$ 282,647$ 8,828,462$
142
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS (continued)
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
128
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)(511,212)$ 47,364$ (10,039,964)$ 316,078$ (13,182)$ 203,401$ (89,459)$ (10,086,974)$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation expense 523,811 2,645 2,927,074 234,162 106,178 19,322 369,714 4,182,906
Change in accounts receivable 6,809 672 (130,179) 1,190 5,377 (95) (43,350) (159,576)
Change in leases receivable 61,930 - - - - - - 61,930
Change in due from other funds 6,856 6,420 (5,058) (56,100) 2,201 (3,069) 17,640 (31,110)
Change in intergovernmental receivable 217,409 (1,530) 94,022 175 (41,662) - 58,319 326,733
Change in inventories - (8,144) 21,142 - 3,375 2,108 - 18,481
Change in prepaid items (252) (1,413) 81,290 - - - - 79,625
Change in deferred outflows of resources (4,143) 26,164 583,381 (8,339) 10,108 8,507 118,854 734,532
Change in accounts payable 7,009 6 (656,923) 33,700 20,767 4,005 66,899 (524,537)
Change in accrued payroll (78) (1,012) 45,149 2,695 (699) 222 3,165 49,442
Change in accrued compensated absences 2,699 7,999 91,273 (25) 4,812 1,408 (3,616) 104,550
Change in due to other funds 997 5,234 (2,243) 190,268 2,187 10,255 79,403 286,101
Changes in intergovernmental payable (73) 131 1,924 (1,579) (1,207) (3,329) 60,402 56,269
Changes accrued landfill post-closure costs - - - - - - (10,129) (10,129)
Changes post-employment benefits (200) (2,486) (48,922) (1,849) (1,331) (837) (6,043) (61,668)
Changes in pension liability 20,624 (126,955) (1,150,587) 16,565 (42,422) (7,788) (334,645) (1,625,208)
Changes in deferred inflows of resources (78,227) 4,933 97,069 (5,401) 225 1,650 11,971 32,220
Total adjustments 765,171 (87,336) 1,948,412 405,462 67,909 32,359 388,584 3,520,561
Net cash provided by (used for) operating activities 253,959$ (39,972)$ (8,091,552)$ 721,540$ 54,727$ 235,760$ 299,125$ (6,566,413)$
Schedule of non-cash capital and related financing activities:
Acquisition of capital assets through retainage payable (144,401)$ -$ (9,842)$ (20,120)$ -$ -$ -$ (174,363)$
Capital asset contributions 72,700 - - - - 20,673 - 93,373
143
CITY OF AMES, IOWA
INTERNAL SERVICE FUNDS
129
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.
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.
144
CITY OF AMES, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
130
Total
Internal
Fleet Information Risk Health Service
Services Technology Management Insurance Funds
ASSETS
Current assets:
Cash and cash equivalents 3,109,828$ 836,907$ 801,733$ 1,718,679$ 6,467,147$
Investments 11,832,400 3,434,511 3,293,614 6,875,762 25,436,287
Accrued interest receivable 51,806 14,728 14,391 28,553 109,478
Accounts receivable, net 39,980 3,000 13,624 232,608 289,212
Due from other funds 1,084,564 28,499 - 4,915 1,117,978
Intergovernmental receivable 3,000 56,998 - - 59,998
Inventories 91,460 - - - 91,460
Prepaid items 3,203 162,398 - - 165,601
Total current assets 16,216,241 4,537,041 4,123,362 8,860,517 33,737,161
Noncurrent assets:
Capital assets:
Buildings 1,148,632 17,050 - - 1,165,682
Equipment 24,274,477 2,935,659 - - 27,210,136
Less accumulated depreciation/amortization (13,199,362) (2,157,269) - - (15,356,631)
Total noncurrent assets 12,223,747 795,440 - - 13,019,187
Total assets 28,439,988 5,332,481 4,123,362 8,860,517 46,756,348
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to OPEB 43,432 42,452 5,435 6,772 98,091
Deferred outflows related to pensions 98,581 49,290 15,689 18,641 182,201
Total deferred outflows of resources 142,013 91,742 21,124 25,413 280,292
LIABILITIES
Current liabilities:
Accounts payable 751,120$ 119,920$ 29,042$ 135,173$ 1,035,255$
Accrued payroll 20,069 855 - - 20,924
Accrued compensated absences 21,358 45,941 974 625 68,898
Accrued other post-employment benefits 3,156 3,332 570 629 7,687
Due to other funds 92,136 12,359 736 28,467 133,698
Claims payable - - 1,780,247 773,877 2,554,124
Intergovernmental payable 48,875 210 - 3,744 52,829
Total current liabilities 936,714 182,617 1,811,569 942,515 3,873,415
Noncurrent liabilities:
Accrued compensated absences 68,616 90,453 10,739 7,015 176,823
Accrued other post-employment benefits 94,798 87,446 8,254 12,166 202,664
Net pension liability 267,797 133,898 42,622 50,639 494,956
Total noncurrent liabilities 431,211 311,797 61,615 69,820 874,443
Total liabilities 1,367,925 494,414 1,873,184 1,012,335 4,747,858
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 16,393 15,609 1,742 2,393 36,137
Deferred inflows related to pensions 499 250 79 94 922
Total deferred inflows of resources 16,892 15,859 1,821 2,487 37,059
NET POSITION
Net investment in capital assets 12,223,747 795,440 - - 13,019,187
Unrestricted 14,973,437 4,118,510 2,269,481 7,871,108 29,232,536
Total net position 27,197,184$ 4,913,950$ 2,269,481$ 7,871,108$ 42,251,723$
145
CITY OF AMES, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
131
Total
Internal
Fleet Information Risk Health Service
Services Technology Management Insurance Funds
Operating revenues:
Charges for services 5,166,100$ 3,467,405$ 3,340,313$ 13,338,366$ 25,312,184$
Operating expenses:
Cost of goods and services 2,535,478 2,915,705 3,607,932 13,508,324 22,567,439
Depreciation 1,550,327 230,591 - - 1,780,918
Total operating expenses 4,085,805 3,146,296 3,607,932 13,508,324 24,348,357
Operating income (loss)1,080,295 321,109 (267,619) (169,958) 963,827
Non-operating revenues (expenses):
Investment income 730,388 175,153 150,189 412,225 1,467,955
Interest (expense)- (4,316) - - (4,316)
Gain on disposal of capital assets 86,805 - - - 86,805
Miscellaneous 128 3,669 - 13,474 17,271
Total non-operating revenues 817,321 174,506 150,189 425,699 1,567,715
Income before transfers 1,897,616 495,615 (117,430) 255,741 2,531,542
Change in net position 1,897,616 495,615 (117,430) 255,741 2,531,542
Net position, beginning of year,
as presented 25,312,924 4,454,916 2,386,911 7,615,367 39,770,118
Restatements (13,356) (36,581) - - (49,937)
Net position, beginning, as restated 25,299,568 4,418,335 2,386,911 7,615,367 39,720,181
Net position, ending of year 27,197,184$ 4,913,950$ 2,269,481$ 7,871,108$ 42,251,723$
146
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
132
Total
Internal
Fleet Information Risk Health Service
Services Technology Management Insurance Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,467,382$ 3,430,895$ 3,340,413$ 13,163,179$ 24,401,869$
Payments to suppliers (505,748) (1,227,235) (3,171,376) (13,180,552) (18,084,911)
Payments to employees (1,051,491) (1,036,633) (164,493) (193,415) (2,446,032)
Payments/receipts to other funds for services provided (377,602) (656,113) (10,110) 7,571 (1,036,254)
Net cash provided by (used for) operating activities 2,532,541 510,914 (5,566) (203,217) 2,834,672
CASH FLOW FROM NON-CAPITAL FINANCING
ACTIVITIES
Miscellaneous income 128 3,669 - 13,474 17,271
Net cash provided by non-capital
financing activities 128 3,669 - 13,474 17,271
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,825,876) (96,007) - - (2,921,883)
Interest paid on leases/subscriptions - (4,316) - - (4,316)
Proceeds from the sale of capital assets 114,775 - - - 114,775
Net cash used for capital and related financing
activities (2,711,101) (100,323) - - (2,811,424)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (12,868,422) (3,735,231) (3,581,997) (7,477,791) (27,663,441)
Proceeds from sale of investments 12,342,456 3,194,517 3,392,316 7,178,760 26,108,049
Interest on investments 731,558 174,563 150,720 414,246 1,471,087
Net cash provided by (used for) investing activities 205,592 (366,151) (38,961) 115,215 (84,305)
Net increase (decrease) in cash and cash equivalents 27,160 48,109 (44,527) (74,528) (43,786)
Cash and cash equivalents, beginning 3,082,668 788,798 846,260 1,793,207 6,510,933
Cash and cash equivalents, ending 3,109,828$ 836,907$ 801,733$ 1,718,679$ 6,467,147$
147
CITY OF AMES, IOWA
COMBINING STATEMENT OF CASH FLOWS (continued)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
133
Total
Internal
Fleet Information Risk Health Service
Services Technology Management Insurance Funds
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)1,080,295$ 321,109$ (267,619)$ (169,958)$ 963,827$
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Depreciation expense 1,550,327 230,591 - - 1,780,918
Change in accounts receivable 1,350 (3,000) 100 (170,354) (171,904)
Change in due from other funds (701,174) (11,170) - (4,833) (717,177)
Change in intergovernmental receivable 1,106 (22,340) - - (21,234)
Change in inventories 9,747 - - - 9,747
Change in prepaid items 2,409 (17,954) - - (15,545)
Change in deferred outflows of resources 39,627 83,392 4,541 2,926 130,486
Change in accounts payable 568,997 111,761 8,125 (32,853) 656,030
Change in accrued payroll 3,683 (269) - (594) 2,820
Change in accrued compensated absences 23,975 7,169 2,182 2,078 35,404
Change in due to other funds 61,727 (280) (1,447) 18,017 78,017
Change in claims payable - - 270,535 162,156 432,691
Change in intergovernmental payable 16,446 210 - 3,744 20,400
Change in post-employment benefits (4,247) (4,485) (767) (847) (10,346)
Change in pension liability (130,160) (192,447) (2,850) (10,878) (336,335)
Change in deferred inflows of resources 8,433 8,627 (18,366) (1,821) (3,127)
Total adjustments 1,452,246 189,805 262,053 (33,259) 1,870,845
Net cash provided by (used for) operating activities 2,532,541$ 510,914$ (5,566)$ (203,217)$ 2,834,672$
148
134
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149
STATISTICAL
SECTION
150
136
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151
CITY OF AMES, IOWA
STATISTICAL SECTION
137
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 138
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 144
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
Debt Capacity 148
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 154
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 156
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.
152
CITY OF AMES, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
138
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets 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$ 189,320,394$
Restricted 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 40,001,332
Unrestricted 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 18,908,748
Total governmental activities 149,457,166 159,258,992 164,557,014 170,338,134 175,300,723 192,125,054 203,373,931 218,732,050 234,783,670 248,230,474
Business-type activities
Net investment in capital assets 317,734,901 320,823,796 308,134,898 311,786,131 320,199,338 331,818,082 347,429,640 344,255,162 348,355,842 373,859,626
Restricted 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 1,910,697
Unrestricted 258,217,652 304,183,289 353,749,237 382,923,270 364,718,214 468,798,691 464,823,787 519,114,482 566,470,292 611,468,432
Total business-type activities 578,214,753 627,432,609 664,342,304 697,264,325 714,923,962 821,966,262 823,246,523 866,064,178 918,340,323 987,238,755
Primary government
Net investment in capital assets 447,204,644 458,456,448 449,838,307 456,516,970 468,491,637 495,811,140 504,110,435 508,613,343 523,901,715 563,180,020
Restricted 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 41,912,029
Unrestricted 259,088,752 304,966,683 354,888,388 386,270,155 367,748,064 470,412,778 471,704,352 540,137,500 591,066,468 630,377,180
Total primary government 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$ 1,235,469,229$
153
CITY OF AMES, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
139
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:
General government 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$ 3,625,698$
Public safety 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 22,400,129
Public works 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 23,020,648
Health and social services 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 1,936,265
Culture and recreation 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 12,496,616
Community and economic development 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 7,176,726
Interest 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 2,096,841
Total governmental activities 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 72,752,923
Business-type activities:
Mary Greeley Medical Center 176,918,607 182,728,675 185,267,383 186,917,186 194,116,951 208,743,252 220,771,985 232,168,581 247,769,583 264,318,209
Electric 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 67,482,511
Sewer 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 9,196,492
Water 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 14,954,847
Airport - - - - - - 971,080 682,709 799,305 731,600
Parking 900,939 887,679 891,229 975,126 999,414 842,179 757,891 825,546 840,459 778,488
Transit 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 17,383,248
Stormwater 557,890 1,231,885 420,171 270,883 796,588 662,387 840,274 1,397,657 1,606,163 1,753,416
Ice arena 605,291 602,774 651,714 650,947 665,247 557,566 540,335 596,755 762,662 672,445
Golf course 243,309 258,459 227,798 254,380 215,211 253,985 266,379 281,547 330,949 361,743
Resource recovery 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 4,675,735
Total business-type activities 265,281,365 277,853,337 286,681,808 288,542,090 291,116,020 306,014,177 321,309,974 344,086,734 356,589,268 382,308,734
Total expenses 312,627,432 328,248,694 341,669,468 345,683,732 350,398,517 364,067,985 377,157,542 410,534,552 420,216,765 455,061,657
Program revenues
Governmental activities:
Charges for services:
General government 172,126 203,609 158,792 123,407 116,999 65,793 106,659 163,714 261,278 195,737
Public safety 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 3,922,328
Public works 277,437 268,565 2,737,534 310,035 314,576 310,887 119,170 62,722 31,634 44,651
Culture and recreation 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 1,912,073
Other activities 24,615 25,660 21,132 15,082 17,650 17,728 22,680 18,425 4,504 12,000
Operating grants and contributions 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 14,310,172
Capital grants and contributions 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 4,118,793
Total governmental activities 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$ 24,515,754$
154
CITY OF AMES, IOWA
CHANGES IN NET POSITION (continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
140
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Business-type activities:
Charges for services
Mary Greeley Medical Center 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$ 268,678,523$
Electric 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 68,319,772
Sewer 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 12,227,805
Water 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 13,918,628
Airport - - - - - - 244,473 196,590 327,291 206,946
Parking 925,177 899,705 829,993 1,011,601 797,454 677,293 952,298 787,312 862,948 842,008
Transit 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 7,287,587
Stormwater 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 1,997,093
Ice arena 544,300 481,831 504,884 475,197 444,262 382,917 529,289 548,860 524,805 663,072
Golf course 268,440 191,186 184,601 179,367 150,549 232,826 348,492 450,887 529,749 571,018
Resource recovery 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 4,663,514
Operating grants and contributions 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 6,961,797
Capital grants and contributions 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 6,934,152
Total business-type activities 275,633,023 296,621,372 302,937,867 301,186,747 301,580,840 328,739,228 349,395,695 359,500,586 368,491,286 393,271,915
Total program revenues 296,736,280 318,368,790 323,239,228 319,646,868 319,937,454 357,060,082 379,339,117 385,601,137 393,102,725 417,787,667
Net (expense) / revenue
Governmental activities (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) (48,237,171)
Business-type activities 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 10,963,181
Total net (expense) / revenue 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)$ (37,273,990)$
155
CITY OF AMES, IOWA
CHANGES IN NET POSITION (continued)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
141
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General revenues
Governmental activities:
Taxes
Property taxes 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$ 36,774,390$
Sales taxes 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 11,838,478
Hotel / motel taxes 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 3,027,969
Unrestricted grants and contributions 20,527 20,565 22,146 23,589 54,366 21,126 16,152 5,203 42,236 -
Investment income 699,289 211,126 689,377 2,190,478 2,177,884 436,298 (1,582,910) 2,068,855 5,775,114 6,016,972
Other income 450,340 251,997 1,214,979 759,997 602,881 595,001 58,780 4,347,957 483,821 5,360,321
Gain on disposal of assets 140,825 118,389 6,039 - - (105,678) 16,239 43,087 94,073 82,489
Transfers (13,399) (465,996) (1,604,405) (222,839) (376,965) (1,036,017) (965,845) (409,629) (2,278,212) (379,391)
Total governmental activities 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 62,721,228
Business-type activities:
Investment income 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 56,494,690
Other income 40,083 417,879 427,961 337,470 647,271 3,786,658 3,744,892 4,364,976 1,340,362 1,442,269
Gain(loss) on disposal of assets - 48,479 12,078 8,354 - (285,055) - (110,078) 25,071 63,934
Transfers 13,399 465,996 1,604,405 222,839 376,965 1,036,017 965,845 409,629 2,278,212 379,391
Total business-type activities 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 58,380,284
Total primary government 39,570,716 66,925,282 60,418,746 64,740,005 55,047,904 130,874,534 10,347,563 83,109,189 95,441,805 121,101,512
Change in net position
Governmental activities 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 14,484,057
Business-type activities 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 69,343,465
Total change in net position 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$ 83,827,522$
156
CITY OF AMES, IOWA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
142
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable 141,713$ 172,236$ 237,381$ 240,990$ 240,978$ 198,600$ 164,992$ 215,405 200,228$ 180,674$
Assigned 725,077 809,033 580,004 402,312 283,809 548,738 1,835,107 1,822,619 1,238,509 842,098
Unassigned 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 13,515,903
Total general fund 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$ 14,538,675$
All other governmental funds
Nonspendable 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 2,346,810
Restricted 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 61,267,000
Committed 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 6,874,261
Assigned 71,393 - - - - - - - - -
Unassigned (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) (1,404,888)
Total all other governmental
funds 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$ 69,083,183$
157
CITY OF AMES, IOWA
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
143
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
REVENUES
Taxes 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$ 51,640,837$
Special assessments 222,895 298,227 564,860 321,318 303,643 244,640 250,101 239,370 241,098 303,875
Licenses and permits 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 1,282,702
Intergovernmental 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 16,730,124
Charges for services 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 4,664,209
Fines and forfeitures 93,652 67,584 65,504 43,614 28,276 29,083 30,690 34,741 40,879 1,475,818
Investment income 529,364 169,673 530,341 1,598,321 1,579,072 309,365 (1,165,866) 1,632,854 4,369,025 4,525,899
Interest revenue - - - - - - 23,510 23,424 23,294 23,118
Miscellaneous 852,639 930,506 1,856,014 1,231,347 1,064,583 595,063 348,975 4,347,961 478,627 5,367,249
Total revenues 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 86,013,831
EXPENDITURES
Current:
General government 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 3,638,630
Public safety 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 22,564,879
Public works 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 8,464,732
Health and social services 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 1,936,218
Culture and recreation 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 10,674,278
Community and economic development 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 7,199,431
Debt service:
Principal 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 9,818,693
Interest and fiscal charges 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 3,018,887
Capital outlay 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 36,261,298
Total expenditures 77,111,467 64,608,875 64,036,631 65,774,882 66,336,837 90,087,631 85,341,879 90,646,833 87,018,922 103,577,046
Excess (deficiency) of revenues
over (under) expenditures (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) (17,563,215)
OTHER FINANCING SOURCES (USES)
Transfers in 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 13,658,668
Transfers out (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) (14,038,059)
General obligation bonds issued 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 17,495,000
Premium on general obligation bonds 901,045 475,349 602,484 610,152 1,025,738 1,249,757 1,283,972 827,311 681,309 1,237,930
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)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 18,353,539
Net change in fund balances (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$ 790,324$
Debt service as a percentage of
non-capital expenditures 28.2%24.2%20.1%19.6%19.8%31.4%30.9%17.2%18.5%17.7%
158
CITY OF AMES, IOWA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
144
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
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 10.2010 5,541,171,438 61.48%
2025 2,461,222,098 1,035,801,105 160,211,162 20,715,299 - - 3,918,520 3,656,669,644 10.0945 6,561,140,157 55.73%
Source: Story County Auditor
1 Fiscal year 2017 is the first fiscal year to have these classifications.
159
CITY OF AMES, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
145
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
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 5.52509 0.62811 0.67923 3.19314 10.02557 14.34142 6.50310 0.65249 31.52258
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 0.60552 - 3.25407 10.20097 13.93640 5.90384 0.74410 30.78531
2025 6.21704 0.59608 - 3.28134 10.09446 14.00913 5.78289 0.75916 30.64564
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 $8.10 per thousand dollars of assessed valuation.
3 City Council sets the rate.
4 School district board of education sets the rate.
5 Story County board of supervisors, the county and city's assessors board, county agricultural extension board, and county hospital
board set the rate.
6 Area community college sets the rate.
Source: Story County Auditor
Overlapping Rates 1City Direct Rates
160
CITY OF AMES, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
146
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Iowa State University Research Park 67,313,728$ 1 1.84%35,173,530$ 1 1.44%
Barilla America Inc. 49,658,684 2 1.36%32,579,100 2 1.33%
Clinic Building Company, Inc.36,184,200 3 0.99%19,397,610 4 0.79%
Campus Investors IS LLC 28,714,688 4 0.79%31,609,753 3 1.29%
Bricktowne Ames LC 25,138,427 5 0.69%
Spirit Realty LP 23,691,218 6 0.65%
FPA6 University West LLC 21,332,151 7 0.58%
Dayton Park LLC 21,321,844 8 0.58%16,479,445 7 0.67%
Wal-Mart Stores, Inc.19,038,994 9 0.52%17,100,000 6 0.70%
Midwest Centers LP 18,637,684 10 0.51%
US Bank, NA Trustee 19,019,520 5 0.78%
GPT Ames Owner LLC 15,549,300 8 0.64%
West Towne Condos, LLC 14,398,364 9 0.59%
University West Property Owner LLC 14,194,195 10 0.58%
311,031,618$ 8.51%215,500,817$ 8.81%
Source: Story County Auditor
2025 2016
161
CITY OF AMES, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
147
Fiscal
Year Tax Levied
Ended for the Amount Percentage Amount Percentage
June 30,Fiscal Year Collected of Levy Collected of Levy
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%
2025 36,057,203 35,208,981 97.65%35,208,981 97.65%
Sources: Story County Auditor and City Finance Department
Fiscal Year of the Levy
Collected within the
Total Collections to Date
162
CITY OF AMES, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
148
General General Total Percentage
Fiscal Obligation Lease Subscription Obligation Revenue Lease Subscription Loans Outstanding of Personal Per
Year Bonds 1 Liability Liability Bonds 1 Bonds 1 Liability Liability Payable Debt Income 2 Population3 Capita
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 16,266 584,031 2,903,734 94,335,613 1,203,747 946,672 60,876,173 229,548,455 10.75 66,427 3,456
2024 70,875,498 104,214 385,417 2,208,746 86,801,547 1,240,766 1,654,560 66,806,214 230,076,962 11.15 66,427 3,464
2025 78,887,401 51,893 101,572 1,650,772 78,074,508 666,434 2,346,219 79,287,231 241,066,030 10.89 66,427 3,629
1 Presented net of original issuance discounts and premiums and deferred charges
2 Personal income is presented on page 154
3 United States Census Bureau
Business-Type Activities
Governmental
Activities
163
CITY OF AMES, IOWA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
149
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 144 for property value data
4 See page 154 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
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
2025 80,538,173 3,834,328 76,703,845 1.17%1,155
164
CITY OF AMES, IOWA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITES DEBT
AS OF JUNE 30, 2025
150
Amount
Estimated Applicable to
Debt Percentage Primary
Governmental Unit Outstanding Applicable Government
Debt repaid with property taxes:
Ames Community School District 63,905,000$ 98.31%62,825,006$
Gilbert Community School District 34,760,000 50.59%17,585,084
Des Moines Area Community College 1 16,000,000 5.31%849,600
Nevada Community School District 6,293,000 0.22%13,845
United Community School District 890,000 2.98%26,522
Story County 2,397,817 57.92%1,388,816
Other debt:
Ames Community School District revenue bonds 1,349,800 98.31%1,326,988
Gilbert Community School District revenue bonds 3,930,000 50.59%1,988,187
Des Moines Area Community College revenue bonds - 5.31%-
Nevada Community School District revenue bonds 5,923,000 0.22%13,031
United Community School District revenue bonds 1,685,000 2.98%50,213
Story County - 57.92%-
Subtotal, overlapping debt 86,067,292
City direct debt 79,040,866
Total direct and overlapping debt 165,108,158$
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.
165
CITY OF AMES, IOWA
LEGAL DEBT MARGIN
JUNE 30, 2025
151
Legal debt margin for the fiscal year ended June 30, 2025:
Assessed value 6,561,140,157$
Debt limit (5% of actual value)328,057,008$
Debt applicable to limit:
General obligation bonds 74,205,000
Legal debt margin 253,852,008$
Percentage of net debt margin available 77.38%
Percentage of net debt margin exhausted 22.62%
Percentage of
Net Debt
Outstanding Margin
Year Debt Limit Debt Available
2025 328,057,008$ 74,205,000$ 77.38%
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%
Note: State of Iowa statutory debt limit is 5% of total actual
assessed valuation.
166
CITY OF AMES, IOWA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
152
Less:Net
Fiscal Gross Operating Available
Year Revenues 3 Expenses Revenue Principal Interest Coverage
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
2025 268,678,523 238,387,344 30,291,179 7,215,000 2,768,346 3.03
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal Interest Coverage
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
2025 68,319,772 61,364,962 6,954,810 895,000 71,213 7.20
Electric Revenue Bond
Hospital Revenue Bond
Debt Service 1
Debt Service
167
CITY OF AMES, IOWA
PLEDGED-REVENUE COVERAGE (continued)
LAST TEN FISCAL YEARS
153
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal4 Interest Coverage
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
2025 12,227,805 6,799,850 5,427,955 1,019,022 455,180 3.68
Less:Net
Fiscal Gross Operating Available
Year Revenues Expenses Revenue Principal Interest Coverage
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
2025 13,918,628 8,485,402 5,433,226 3,402,931 1,018,632 1.23
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
168
CITY OF AMES, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
154
Per
Capita
Calendar Personal Personal School Unemployment
Year Population1 Income 1 Income Enrollment2 Rate 3
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
2025 66,427 33,314 2,212,949,078 4,534 3.2
1 United States Census Bureau
2 Ames School District
3 Iowa Workforce Development
169
CITY OF AMES, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
155
2025 2016
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Iowa State University 16,116 1 23.52% 16,647 1 29.11%
Mary Greeley Medical Center 1,589 2 2.32%1,309 3 2.29%
Danfoss Corp.1,180 3 1.72% 921 6 1.61%
City of Ames 1,015 4 1.48%1,358 2 2.37%
Iowa Department of Transportation 975 5 1.42%962 4 1.68%
USDA 750 6 1.09%
McFarland Clinic, P.C.675 4 0.98%927 5 1.62%
Ames Community School District 650 8 0.95%635 8 1.11%
Workiva 550 9 0.80% 450 9 0.79%
Ames Laboratories 415 10 0.61%
Hy-Vee Food Stores 775 7 1.36%
Wal-Mart 441 10 0.77%
Total 34.89%42.71%
Sources: United States Department of Labor, City of Ames, and company inquiries.
170
CITY OF AMES, IOWA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
156
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General government:
Management services 23.25 24.25 24.25 24.50 24.50 24.50 25.50 25.50 26.50 29.00
Finance 40.75 40.75 40.75 41.00 41.00 41.00 41.00 41.00 41.00 39.00
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 6.00 6.00 5.00 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 9.00
Transit 84.05 84.05 84.05 84.50 85.50 85.50 85.50 87.75 88.30 89.25
Fire/inspections 65.00 68.00 70.00 71.00 72.00 73.00 74.00 74.00 74.00 75.00
Police/animal control/parking 77.65 79.65 80.65 82.15 83.15 84.60 85.05 85.05 85.05 84.05
Library 35.50 35.75 35.75 36.50 37.00 37.00 37.00 37.50 38.50 38.50
Parks and recreation 19.50 25.00 25.00 25.00 25.00 26.75 27.75 27.75 28.75 29.00
Water and pollution control 40.05 40.30 40.30 40.00 40.00 38.00 38.00 39.00 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 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Engineering 15.75 15.75 14.75 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 22.00 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 12.00 13.00 13.00 13.00 13.00 13.00
Other 13.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Hospital 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 1,217.00
Total 1,636.00 1,642.00 1,660.00 1,667.90 1,703.40 1,732.60 1,761.05 1,818.80 1,808.35 1,818.55
1 Administrative services was formed with employees from the planning and housing, fire/inspections, and public works administration divisions.
Source: City Finance Department
Position control register
171
CITY OF AMES, IOWA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
157
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General government:
Number of licenses/permits processed 559 714 635 752 561 598 546 547 498 486
Police:
Physical arrests 1,362 1,215 1,596 1,480 1,380 778 1,063 1,075 1,043 1,037
Parking violations 50,280 47,272 38,798 32,711 27,278 25,152 27,511 24,173 28,677 25,363
Traffic violations 2,451 2,614 2,834 2,328 2,092 1,667 1,803 2,219 2,813 2,862
Fire:
Number of fires 126 89 116 80 82 117 93 109 93 96
Number of ambulance assists 2,442 2,663 2,646 2,857 2,473 2,064 3,399 3,533 3,552 3,700
Inspections 1,435 1,074 831 501 582 322 535 486 608 849
Library:
Total circulation 1,304,434 1,280,305 1,222,360 1,220,180 961,602 854,397 1,043,230 994,326 998,192 984,666
Library visits 506,034 523,673 508,918 485,929 336,272 268,927 279,123 317,020 332,355 333,949
Parks and recreation:
Total number of participant visits 293,757 255,227 280,766 281,420 187,725 157,593 200,606 157,896 168,519 178,147
Total number of activities 187 194 196 200 175 325 806 171 190 192
Resource recovery:
Tons of refuse processed 41,646 45,598 37,124 33,173 33,511 40,040 40,040 44,634 44,360 41,987
Tipping fee per ton 52.75 52.75 55.00 55.00 58.75 58.75 62.50 62.50 62.50 75.00
Other public works:
Blocks of streets crack sealed 66 73 65 81 88 20 87 149 103 189
Blocks of streets slurry sealed 36 33 30 - - 56 37 26 - 35
Blocks of seal coat reconstruction 16 - 10 6 - 4 4 3 2 -
Hospital:
Total admissions 7,867 8,368 8,510 8,267 8,230 8,082 8,355 8,446 8,473 8,947
Average percent of occupancy 49.3%49.7%50.2%50.6%52.1%53.7%54.5%55.0%57.4%59.1%
Electric:
Kilowatt hours produced at plant 243,388,530 244,149,566 222,873,411 167,189,716 176,914,000 245,972,108 304,668,733 303,304,598 327,599,976 304,197,522
Meters in service 26,232 26,475 27,324 27,348 27,613 27,701 27,735 27,848 27,902 27,985
Transit:
Passengers 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 4,997,210
Total miles driven 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 1,711,905
Water:
Billion gallons per year pumped 2.110 2.131 2.245 2.117 2.260 2.359 2.312 2.443 2.407 2.330
Utility locates performed 8,121 7,383 7,113 6,932 7,935 14,152 8,834 8,019 8,716 7,717
Water main breaks 19 18 42 46 19 29 25 24 28 41
Wastewater:
Billion gallons per year treated 2.690 2.427 2.141 2.706 2.291 1.849 2.108 2.100 2.103 2.085
Sources: City departments and Mary Greeley Medical Center
172
CITY OF AMES, IOWA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
158
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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 36 36 38 38 38 38 40 40 40
Total number of park acres 1,227 1,223 1,224 1,230 1,230 1,230 1,215 1,266 1,266 1,268
Total number of athletic fields 18 18 21 21 21 21 21 21 21 21
Other public works:
Miles of streets 291 300 305 305 249 252 252 252 210 215
Number of traffic signals 67 68 69 70 71 76 78 78 78 78
Number of signs 9,509 9,854 10,087 10,658 10,876 11,052 11,069 11,206 11,348 11,345
Hospital:
Beds in operation 199 199 199 199 199 199 199 199 199 199
Transit:
Buses owned 105 104 105 104 89 90 90 92 89 90
New buses purchased 9 5 3 1 - 3 6 9 2 -
Water:
Miles of water mains 254 247 249 250 250 252 253 255 257 257
Fire hydrants 2,847 2,906 2,948 2,977 2,995 3,029 3,054 3,087 3,140 3,150
Wells 28 25 24 25 25 25 25 22 22 22
Wastewater:
Sanitary sewer miles 204 210 211 212 212 213 215 215 218 218
Stormwater miles 271 276 277 278 279 284 284 284 294 294
Note: No capital asset indicators are available for general government, library, resource recovery, or electric functions.
Sources: City departments and Mary Greeley Medical Center
173
COMPLIANCE
SECTION
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Information to Comply with Government Auditing Standards
and Uniform Guidance
June 30, 2025
City of Ames, Iowa
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1545 Associates Dr., Ste. 101 • Dubuque, IA 52002-2299 • T 563.556.1790 • F 563.557.7842 • EOE
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, 2025, 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, 2026. Our report includes reference to other auditors who 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.
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177
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 a certain immaterial instance of
noncompliance or other matters which is 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, 2025 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, 2026
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1545 Associates Dr., Ste. 101 • Dubuque, IA 52002-2299 • T 563.556.1790 • F 563.557.7842 • EOE
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, 2025. 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, 2025.
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.
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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, 2025. 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.
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180
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, 2026
166
181
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Agriculture
Pass-through program from
National Arbor Day Foundation
Inflation Reduction Act Urban & Community
Forestry Program 10.727 24-CA-11132544-015 21,325$
U.S. Department of Housing and Urban Development
Direct program
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218 667,678
Direct program
Home Investment Partnership Program 14.239 1,948,389
Total U.S. Department of Housing and Urban Development 2,616,067
U.S. Department of Justice
Direct program
Bulletproof Vest Partnership Program 16.607 11,204
Edward Byrne Memorial Justice Assistance Grant Program 16.738 6,973
Total U.S. Department of Justice 18,177
U.S. Department of Transportation
Direct program
Airport Improvement Program 20.106 72,552
Airport Improvement Program 20.106 279,300
Airport Improvement Program 20.106 1,663,003
2,014,855
Pass-through program from
Iowa Department of Transportation
Highway Planning and Construction 20.205 25MPO-AAMPO 33,420
Highway Planning and Construction 20.205 STP-A-0155(710)--86-85 1,286,532
Highway Planning and Construction 20.205 STP-A-0155(713)--86-85 123,245
Highway Planning and Construction 20.205 STP-A-0155(713)--86-85 596,206
Highway Planning and Construction 20.205 STP-U-0155(712)--70-85 192,797
Highway Planning and Construction 20.205 STP-U-0155(711)--27-85 791,597
3,023,797
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
167
182
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Transportation (continued)
Pass-through program from
Iowa Department of Transportation
Metropolitan Transportation Planning and State
and Non-Metropolitan Planning and Research 20.505 25MPO-AAMPO 536,648$
Federal Transit Cluster
Direct program
953,59620.507Federal Transit - Formula Grants
128,27620.507Federal Transit - Formula Grants
3,619,58320.507Federal Transit - Formula Grants
4,701,455
Direct program
Buses and Bus Facilities Formula, Competitive and
9,70220.526Low or No Emissions Programs
Buses and Bus Facilities Formula, Competitive and
12,00020.526Low or No Emissions Programs
21,702
Total Federal Transit Cluster 4,723,157
Transit Services Programs Cluster
Pass-through program from
Iowa Department of Transportation
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2022-008-00-FFY21-SFY22 35,707
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006868 23,524
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-01; 00005246 72,255
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2025-012-01; 00008537 45,959
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2025-012-01; 00008536 106,575
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006867 129,939
Enhanced Mobility of Seniors and Individuals
with Disabilities 20.513 IA-2023-006-03-01; 00006868 61,907
Total Transit Services Programs Cluster 475,866
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
168
183
See Notes to Schedule of Expenditures of Federal Awards
City of Ames, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
Federal
Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
U.S. Department of Transportation (continued)
Highway Safety Cluster
Pass-through program from
Iowa Department of Public Safety
State and Community Highway Safety 20.600 PAP 402-PT-2024
Task 05-40-01 2,331$
State and Community Highway Safety 20.600 PAP 402-AL-2024
Task 02-40-01 2,544
State and Community Highway Safety 20.600 PAP 402-PT-2025 19,572
State and Community Highway Safety 20.600 PAP 402-AL-2025 5,907
Total Highway Safety Cluster 30,354
Pass-through program from
Iowa Department of Public Safety
Safe Streets and Roads for All 20.939 693JJ32440807 94,864
Total U.S. Department of Transportation 10,899,541
National Endowment for the Humanities (NEH)
Pass-through program from
Iowa Department of Cultural Affairs
Promotion of the Arts Partnership Agreements 45.025 202510-13666 5,380
U.S. Department of the Environmental Protection Agency
Pass-through program from
Iowa Finance Authority
Clean Water State Revolving Funds 66.458 C1330R, C1377R 2,263,598
Iowa Finance Authority
Drinking Water State Revolving Funds 66.468 D0664R, D0616R 611,726
Total U.S. Department of the Environmental Protection Agency 2,875,324
U.S. Department of Homeland Security
Pass-through program from
Iowa Department of Homeland Security
Disaster Grants - Public Assistance
(Presidentially Declared Disasters)97.036 4784DR-IA, P00000001 547,563
Hazard Mitigation Grant 97.039 4483DR-IA, P00000215 81,518
Total U.S. Department of Homeland Security 629,081
Total Federal Financial Assistance 17,064,895$
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
169 184
City of Ames, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
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, 2025.
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, 2025.
Note 3 - Indirect Cost Rate
The City has not elected to use the de minimis cost rate.
170
185
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
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
Home Investment Partnership Program 14.239
Airport Improvement Program 20.106
Federal Transit Cluster
Federal Transit Formula Grants 20.507
Buses and Bus Facilities Formula, Competitive
and Low or No Emissions Programs 20.526
Dollar threshold used to distinguish
between Type A and Type B programs $750,000
Auditee qualified as low-risk auditee No
171 186
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
Part II: Financial Statement Findings
There were no findings to report.
Part III: Federal Award Findings and Questioned Costs
There were no findings and questioned costs to report.
Part IV: Other Findings Related to Required Statutory Reporting
2025-IA-A Certified Budget: Disbursements during year ended June 30, 2025 did not exceed the amounts
budgeted.
2025-IA-B Questionable Expenditures: We noted no expenditures that we believe may fail to meet the
requirements of public purpose as defined in an Attorney General’s opinion dated April 25, 1979.
2025-IA-C Travel Expense: No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
2025-IA-D Business Transactions: Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection Transaction Description Amount
Levi Faas, CyRide Employee, Mother is
owner of One Hour Heating & Air
Conditioning Services 1,443$
Brian Lewis, Resource Recovery Plant
Lawn Care, partially bidEmployee, is owner of Lawnpro 61,161$
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.
Recommendation – The City should bid contracts in accordance with Chapter 362.5(3)(d) of the
Code of Iowa.
Response – The City will bid contracts in the future, if applicable.
Conclusion – Response accepted.
172 187
City of Ames, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
Part IV: Other Findings Related to Required Statutory Reporting (continued)
Restricted Donor Activity:2025-IA-E No transactions were noted between the City, City officials, City
employees and restricted donors in compliance with Chapter 68B of the Code of Iowa.
2025-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.
2025-IA-G Council Minutes: No transactions were found that we believe should have been approved in the
Council minutes but were not.
2025-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.
2025-IA-I Revenue Bonds: No instances of noncompliance with the provisions of the City’s revenue bond
resolutions were noted.
2025-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.
2025-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, 2024.
173 188
January 28, 2026
Eide Bailly LLP
1545 Associates Drive, Suite 101
Dubuque, Iowa 52002
This representation letter is provided in connection with your audit of the financial statements of the
City of Ames, which comprise the statement of financial position as of June 30, 2025, and the related
statements of operations and cash flows for the year then ended, and the related notes to the financial
statements, for the purpose of expressing an opinion on whether the financial statements of the various
opinion units are presented fairly, in all material respects, in accordance with accounting principles
generally accepted for governments in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items
are considered material, regardless of size, if they involve an omission or misstatement of accounting
information that, in the light of surrounding circumstances, 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
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered
necessary for the purpose of appropriately informing ourselves as of January 28, 2026:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the engagement letter dated June
24, 2025, for the preparation and fair presentation of the financial statements of the various opinion
units referred to above in accordance with U.S. GAAP.
2. The financial statements referred to above have been fairly presented in accordance with
accounting principles generally accepted in the United States of America (U.S. GAAP) and include all
properly classified funds, required supplementary information, and notes to the basic financial
statements.
3. We acknowledge our responsibility for the design, implementation, and maintenance of the system
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.
4. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
5. The methods, data, and significant assumptions used by us in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement, or disclosure that is
reasonable in the context of the applicable financial reporting framework.
6. All related party relationships and transactions have been appropriately accounted for and disclosed
in accordance with the requirements of U.S. GAAP.
7. All events subsequent to the date of the financial statements and for which U.S. GAAP requires
adjustment or disclosure have been adjusted or disclosed.
Finance 515.239.5350 main 515 Clark Ave., P.O. Box 811
515.239.5355 fax Ames, IA 50010
www.CityOfAmes.org
189
8. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with accounting principles generally accepted in the United States of
America (U.S. GAAP).
9. All component units, as well as joint ventures with an equity interest, are included and other joint
ventures and related organizations are properly disclosed.
10. All funds and activities are properly classified.
11. All funds that meet the quantitative criteria in Government Accounting Standards Board (GASB)
Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for
State and Local Governments, and GASB Statement No. 37, Basic Financial Statements—and
Management’s Discussion and Analysis—for State and Local Governments: Omnibus, for
presentation as major are identified and presented as such and all other funds that are presented as
major are considered important to financial statement users.
12. All net position components and fund balance classifications have been properly reported.
13. All revenues within the statement of activities have been properly classified as program revenues,
general revenues, contributions to term or permanent endowments, or contributions to permanent
fund principal.
14. All expenses have been properly classified in or allocated to functions and programs in the
statement of activities, and allocations, if any, have been made on a reasonable basis.
15. All interfund and intra-entity transactions and balances have been properly classified and reported.
16. If any, special items and extraordinary items have been properly classified and reported.
17. Deposit and investment risks have been properly and fully disclosed.
18. Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable,
depreciated.
19. All required supplementary information is measured and presented within the prescribed
guidelines.
20. There are no nonexchange and exchange financial guarantees, either written or oral, under which it
is more likely than not that a liability exists that are required to be disclosed.
21. We acknowledge our responsibility for compliance with the laws, regulations, and provisions of
contracts and grant agreements.
22. We have reviewed, approved, and taken responsibility for the financial statements and related
notes.
23. We have a process to track the status of audit findings and recommendations.
24. We have identified and communicated to you all previous audits, attestation engagements, and
other studies related to the audit objectives and whether related recommendations have been
implemented.
25. With regard to items reported at fair value:
a. The underlying assumptions are reasonable and they appropriately reflect management’s intent
and ability to carry out its stated courses of action.
b. The measurement methods and related assumptions used in determining fair value are
appropriate in the circumstances and have been consistently applied.
c. The disclosures related to fair values are complete, adequate, and in conformity with U.S. GAAP.
d. There are no subsequent events that require adjustments to the fair value measurements and
disclosures included in the financial statements.
190
26. With regard to pensions and OPEB:
a. We believe that the actuarial assumptions and methods used to measure pension and OPEB
liabilities and costs for financial accounting purposes are appropriate in the circumstances.
b. Increases in benefits, elimination of benefits and all similar amendments have been disclosed in
accordance with U.S. GAAP and are included in the most recent actuarial valuation, or disclosed
as a subsequent event.
27. We have conducted a comprehensive risk assessment and disclosed all material concentrations and
constraints in accordance with GASB Statement No. 102, Certain Risk Disclosures. These disclosures
provide sufficient detail to enable users of financial statements to understand the nature of the
circumstances disclosed and the government’s vulnerability to the risk of a substantial impact
associated with the concentration or constraint, if applicable.
28. We have evaluated the concentrations and constraints, including those that occur subsequent to the
statement of net position date but before the financial statements are issued and have been
properly disclosed in the financial statements as subsequent events.
29. With respect to any nonattest services, including the completion of the Data Collection Form, we
have performed the following:
a. Made all management decisions and performed all management functions;
b. Assigned a competent individual to oversee the services;
c. Evaluated the adequacy of the services performed;
d. Evaluated and accepted responsibility for the result of the service performed; and
e. Established and maintained controls, including a process to monitor the system of internal
control.
Information Provided
30. We have provided you with:
a. Access to all information, of which we are aware that is relevant to the preparation and fair
presentation of the financial statements of the various opinion units referred to above, such as
records, documentation, meeting minutes, and other matters;
b. Additional information that you have requested from us for the purpose of the audit; and
c. Unrestricted access to persons within the entity and others from whom you determined it
necessary to obtain audit evidence.
d. A written acknowledgement of all the documents that we expect to issue that will be included in
the ACFR and the planned timing and method of issuance of that annual report;
e. A final version of the ACFR (including all the documents that, together, comprise the annual
report) in a timely manner prior to the date of the auditor’s report.
31. The financial statements and any other information included in the annual report are consistent
with one another, and the other information does not contain any material misstatements.
32. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
33. We have disclosed to you the results of our assessment of the risk that the financial statements may
be materially misstated as a result of fraud.
34. Management has performed an analysis of the entity’s ability to continue as a going concern. The
going concern assessment identified no conditions or events present. There is no substantial doubt
is the entity’s ability to continue.
35. We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
a. Management;
b. Employees who have significant roles in internal control; or
191
c. Others where the fraud could have a material effect on the financial statements.
36. We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud
and noncompliance with provisions of laws and regulations that have a material effect on the
financial statements or other financial data significant to the audit objectives, and any other
instances that warrant the attention of those charged with governance, whether communicated by
employees, former employees, vendors (contractors), regulators, or others.
37. We have no knowledge of any instances that have occurred or are likely to have occurred, of
noncompliance with provisions of contracts and grant agreements that has a material effect on the
determination of financial statement amounts or other financial data significant to the audit
objectives.
38. We have no knowledge of any instances that have occurred or are likely to have occurred of abuse
that could be quantitatively or qualitatively material to the financial statements or other financial
data significant to the audit objectives.
39. If applicable, we have taken timely and appropriate steps to remedy fraud, noncompliance with
provisions of laws, regulations, contracts, and grant agreements, abuse or waste that you have
reported to us.
40. We have a process to track the status of audit findings and recommendations.
41. We have identified for you all previous audits, attestation engagements, and other studies related to
the audit objectives and whether related recommendations have been implemented.
42. We have provided views on your reported audit findings, conclusions, and recommendations, as
well as our planned corrective actions, for the report.
43. We are not aware of any pending or threatened litigation, claims, and assessments whose effects
should be considered when preparing the financial statements and we have not consulted legal
counsel concerning litigation, claims, or assessments.
44. We have disclosed to you the identity of all the entity’s related parties and the nature of all the
related party relationships and transactions of which we are aware.
45. There have been no communications from regulatory agencies concerning noncompliance with or
deficiencies in accounting, internal control, or financial reporting practices.
46. This City of Ames has no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities.
47. We have disclosed to you all guarantees, whether written or oral, under which the City of Ames is
contingently liable.
48. We have disclosed to you all nonexchange financial guarantees, under which we are obligated and
have declared liabilities and disclosed properly in accordance with GASB Statement No. 70,
Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees
where it is more likely than not that the entity will make a payment on any guarantee.
49. For nonexchange financial guarantees where we have declared liabilities, the amount of the liability
recognized is the discounted present value of the best estimate of the future outflows expected to
be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated
future outflows has been established, we have recognized the minimum amount within the range.
50. We have disclosed to you all significant estimates and material concentrations known to
management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-
62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30,
1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet
date that could change materially within the next year. Concentrations refer to volumes of business,
revenues, available sources of supply, or markets or geographic areas for which events could occur
that would significantly disrupt normal finances within the next year.
192
51. We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant
agreements that could have a direct and material effect on financial statement amounts, including
legal and contractual provisions for reporting specific activities in separate funds.
52. There are no:
a. Violations or possible violations of laws or regulations, or provisions of contracts or grant
agreements whose effects should be considered for disclosure in the financial statements or as
a basis for recording a loss contingency, including applicable budget laws and regulations.
b. Unasserted claims or assessments that our lawyer has advised are probable of assertion and
must be disclosed in accordance with GASB-62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30, 1989, FASB and AICPA Pronouncements.
c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by
GASB-62.
53. The City of Ames has satisfactory title to all owned assets, and there are no liens or encumbrances
on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to
you.
54. We have complied with all aspects of grant agreements and other contractual agreements that
would have a material effect on the financial statements in the event of noncompliance.
55. With respect to the supplementary information accompanying the financial statements:
a. We acknowledge our responsibility for the presentation of the combining nonmajor fund
financial statements and the schedule of expenditures of federal awards in accordance with
accounting principles generally accepted in the United States of America and the Uniform
Guidance.
b. We believe the combining nonmajor fund financial statements and the schedule of expenditures
of federal awards, including its form and content, is fairly presented in accordance with
accounting principles generally accepted int eh United States of America and the Uniform
Guidance.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. There are no significant assumptions or interpretations underlying the measurement or
presentation of the supplementary information.
e. When the combining nonmajor fund financial statement and the schedule of expenditures of
federal awards is not presented with the audited financial statements, management will make
the audited financial statements readily available to the intended users of the supplementary
information no later than the date of issuance by the entity of the supplementary information
and the auditor’s report thereon.
56. With respect to the management’s discussion and analysis and the other required supplementary
information listed in the table of contents accompanying the financial statements
a. We acknowledge our responsibility for the presentation of the required supplementary
information in accordance with accounting principles generally accepted in the United States of
America.
b. We believe the required supplementary information, including its form and content, is
measured and fairly presented in accordance with accounting principles generally accepted in
the United States of America.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. There are no significant assumptions or interpretations underlying the measurement or
presentation of the required supplementary information.
193
Single Audit
57. With respect to federal awards, we represent the following to you:
a. We are responsible for understanding and complying with, and have complied with, the
requirements of Title 2 U.S. Code of Federal Re gulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
b. We are responsible for the preparation and presentation of the schedule of expenditures of
federal awards in accordance with the Uniform Guidance.
c. We believe the schedule of expenditures of federal awards, including its form and content, is
fairly presented in accordance with the Uniform Guidance.
d. The methods of measurement or presentation have not changed from those used in the prior
period.
e. There are no significant assumptions or interpretations underlying the measurement or
presentation of the schedule of expenditures of federal awards.
f. We are responsible for including the auditor’s report on the schedule of expenditures of federal
awards in any document that contains the schedule and that indicates that the auditor has
reported on such information.
g. We have identified and disclosed all of our government programs and related activities subject
to the Uniform Guidance compliance audit.
h. We have notified you of federal awards and funding increments that were received before
December 26, 2014 (if any) and differentiated those awards from awards and funding
increments received on or after December 26, 2014, and subject to the audit requirements of
the Uniform Guidance.
i. When the schedule of expenditures of federal awards is not presented with the audited financial
statements, we will make the audited financial statements readily available to the intended
users of the schedule of expenditures of federal awards no later than the date of issuance by the
entity of the schedule of expenditures of federal awards and the auditor’s report thereon.
j. We have, in accordance with the Uniform Guidance, identified in the schedule of expenditures
of federal awards, expenditures made during the audit period for all awards provided by federal
agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees,
property (including donated surplus property), cooperative agreements, interest subsidies, food
commodities, direct appropriations, and other assistance.
k. We have provided to you our interpretations of any compliance requirements that are subject
to varying interpretations.
l. We have made available to you all federal awards (including amendments, if any) and any other
correspondence relevant to federal programs and related activities that have taken place with
federal agencies or pass-through entities.
m. We have received no requests from a federal agency to audit one or more specific programs as a
major program.
n. If any, we have identified and disclosed to you all amounts questioned and any known
noncompliance with the direct and material compliance requirements of federal awards,
including the results of other audits or program reviews, or stated that there was no such
noncompliance. We also know of no instances of noncompliance with direct and material
compliance requirements occurring subsequent to period covered by the auditor’s report.
o. If any, we have disclosed to you any communications from federal awarding agencies and pass-
through entities concerning possible noncompliance with the direct and material compliance
requirements, including communications received from the end of the period covered by the
compliance audit to the date of the auditor’s report.
194
p. We have made available to you all documentation related to compliance with the direct and
material compliance requirements, including information related to federal program financial
reports and claims for advances and reimbursements.
q. Federal program financial reports and claims for advances and reimbursements are supported
by the books and records from which the basic financial statements have been prepared (and
are prepared on a basis consistent with the schedule of expenditures of federal awards).
r. The copies of federal program financial reports provided to you are true copies of the reports
submitted, or electronically transmitted, to the respective federal agency or pass-through entity,
as applicable.
s. We have properly classified amounts claimed or used for matching in accordance with related
guidelines in the Uniform Guidance, as applicable.
t. We have charged costs to federal awards in accordance with applicable cost principles.
u. We are responsible for and have accurately prepared the summary schedule of prior audit
findings to include all findings required to be included by the Uniform Guidance, and we have
provided you with all information on the status of the follow-up on prior audit findings by
federal awarding agencies and pass-through entities, including all management decisions.
v. If any, we have disclosed to you the findings received and related corrective actions taken for
previous audits, attestation engagements, and internal or external monitoring that directly
relate to the objectives of the compliance audit, including findings received and corrective
actions taken from the end of the period covered by the compliance audit to the date of the
auditor’s report.
w. The reporting package does not contain personally identifiable information.
x. We have disclosed all contracts or other agreements with service organizations and disclosed to
you all communications from these service organizations relating to noncompliance at the
organizations.
y. We have disclosed to you the nature of any subsequent events that provide additional evidence
with respect to conditions that existed at the end of the reporting period that affect
noncompliance during the reporting period.
In addition:
z. We are responsible for understanding and complying with the requirements of federal statutes,
regulations, and the terms and conditions of federal awards related to each of our federal
programs and have identified and disclosed to you the federal statutes, regulations, and the
terms and conditions of federal awards that are considered to have a direct and material effect
on each major federal program; and we have complied with these direct and material
compliance requirements.
aa. We are responsible for establishing and maintaining, and have established and maintained,
effective internal control over compliance for federal programs that provide reasonable
assurance that we are managing our federal awards in compliance with federal statutes,
regulations, and the terms and conditions of the federal award that could have a material effect
on our federal programs. Also, no changes have been made in the internal control over
compliance or other factors that might significantly affect internal control, including any
corrective action taken by management with regard to significant deficiencies and material
weaknesses in internal control over compliance, have occurred subsequent to the period
covered by the auditor’s report.
bb. We are responsible for and have accurately completed the appropriate sections of the Data
Collection Form and we are responsible for taking corrective action on audit findings of the
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compliance audit and have developed a corrective action plan that meets the requirements of
the Uniform Guidance.
Corey Goodenow, Finance Director
Kara Nady, Accounting and Reporting Manager
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