Bondurant

Schedule of Findings Year ended June 30, 2024INTERNAL CONTROL DEFICIENCIES:No matters were noted.INTERNAL OF NON-COMPLIANCE:No matters were noted.f" Annual Finance Report & External Audit 2025 I Bondurant Page 98 ### Page 99 Internal Control Over Financial Reporting and Compliance with Laws and RegulationsPart 11: Other Findings Related to Required Statutory Reporting:City of Bondurant Schedule of Findings Year ended June 30, 20242024-A Ce rtified Budget - Disbursements dL1ring the year ended June 30, 2024 did not exceed theamounts budgeted .2024-B .Questionable Disbursements - No disbursements that may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979 were noted.2024-C Trave l EXF;!ense - No disbursements of City of Bondurant (City) money for travel expenses of spouses of City officials or employees were noted.2024-D Business Transactions - Business transactions between the City and City officials or employeesare detailed as follows:Name, Title, and Business Connection Boyce Bailey, City Employee, Spouse of Michele Bailey, independent contractor Transaction/Descri ption Community Beautification Amount$ 500In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transactions with the above employee docsnot appear to represent a conflict of interest since total transactions with the individual were less them$6,000 during the fiscal year.2024-E Restricted Donor Activit y_ - No transactions were noted between the City, City officials, City employees and restricted donors in compliance with Chapter 68B of the Code of Iowa2024-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 ensure that tile coverag0 isadequate for current operations.2024-G Ci !Y. Counci l Minutes - No transactions were found that we believe should have been approved inthe Council minutes but were not.2024-H De j;!osits a nd Investments - No instances of non-compliance with the deposit and investmentprovisions of Chapter 12B and 12C of the Code of Iowa and the City's investment. policy 'Nere noted2024-1 Reven ue Bonds - No instances of non-compliance with the revenue note resolutions were noted.,~f, Annual Finance Report & External Audit 2025 I Bondurant Page 99 ### Page 100 Single Audit Compliance ReportSingle Audit and Federal Expenditures for the City of BondurantA Single Audit is a detailed review of a government's use of federal funds, ensuring compliance with federal regulations and grant requirements. This audit is required for entities that expend a certain threshold of federal funds in a given fiscal year.2025 Single Audit Threshold Change• As of 2025 and beyond, the threshold for requiring a Single Audit has increased to $1,000,000 in federal expenditures annually. • Governments and organizations that spend more than this amount in federal grants and aid must undergo an additional level of auditing to confirm proper use and compliance with federal regulations.Bondurant's Federal Expenditures for FY25vs -~!Nr4cii1Ht~s.t~,·~11.flll~~,.,,.°"1.,..,,o.c,,,.,_, «~$........ ,~l.... ,.,,-:y~t,.,.--~RU~mli•Wp;........... cc-->~,,1....o1-:..,i,1.,-v.o1:-..,,,;n.) • , ,.,•~J..,.:,.. ,j~,, .. , .., ..• The City of Bondurant expended a total of $110,231.58 in federal funds in fiscal year 2025. • Key federal expenditures included:o $110,231.58 from 'Building Resilient Infrastructure and Communities (Department of Homelc:ind Security) • Since the total expenditures remain well below the $1,000,000 threshold, the City is not required to conduct a Single Audit for FY25.~ Annual Finance Report & External Audit 2025 I Bondurant PagelOO ### Page 101 Statistical SectionStatistical Section Bondurant~o.,~I~ Annual Finance Report & External Audit 2025 I Bondurant Page 101 ### Page 102 Financial TrendsFinancial TrendsOver the past ten years, the City of Bondurant has experienced significant growth in revenues illld expe11diturns ,reflecting the City's expansion, economic development, and strategic investments in public infrnstructure ,rndservices. Revenue Trends Total revenues have increased substantially from $5,054,113 in 2016 to $47,474,226 in 2025, demonstrat1n9 the City'sstrong economic performance and growing tax base. Key factors contributing to this growth include: • Property Tax Growth: Property tax revenues have more than doubled, increc1sing from $1,982,5<',0 in 201(, to$5,707,668 in 2025, reflecting rising property valuations, continued development, c1nd striltcgic economic expansion. • Tax Increment Financing (TIF) Expansion: TIF revenues have increased significantly, reaching $3,2L,7,62l in 2rJ2'o,up from $480,316 in 2016, highlighting the City's strong use of economic development incentives to <1tt1actbusiness investment and infrastructure projects. • Intergovernmental Revenues: These revenues hc1ve fluctuated, peaking at $7,059,700 in 2020, driven by Stille ,111e!federal funding for major projects, but have stabilized at $1,998,660 in 2025. This reflects the liming on grc1ntreimbursements and state/federal funding availability. • Use of Money and Property: Investment income has surged from $78,395 in 2016 to $7,300,457 in 2025, rdlcc:tingimproved financial management of reserve funds and higher returns from investment funds • Licenses and Permits: Growth in construction and new businesses has supported increased revenue fro,.rilicenses and permits, reaching $305,465 in 2025, compared to $794,172 in 2016 Expenditure Trends Total disbursements have grown from $4,729,067 in 2016 to $34,515,461 in 2025, reflecting rising se1·vice dcn·1.incls,infrastructure expansion, and long-term capital projects. Notable trends include: • Public Safety Investment: Public safety expenditures have more than tripled from $853,312 in 2016 to $3 ,139/,97 in 2025, emphasizing the City's commitment to law enforcement, fire, and emergency services. These e-.p,Jndituresinclude increased personnel, equipment, and capital projects. • Public Works and Infrastructure Expansion: Expenditures on public works increased from 5680,1,39 1112016 tc$1,543,744 in 2025, supporting road improvements, stormwater management, and utility expansions.• Debt Service Commitments: Debt service expenditures previously peaked in 2024 at $3,740,471., cflccting nc,1;borrowings to fund major capital investments including water system improvements a1·1d street cxpa11sions, andhave remained a critical part of financial planning, totaling $4,148,782 in 2025. • Capital Project Investments: Spending on capital projects has fluctuated, rec1ching a high cf $22,737,135 1n 202t,,surpassing the previous record year of 2021 at $77,275,540, driven by major infrastructure inv0stmcnts rcflecti11gongoing but controlled capital improvements in infrastructure, parks, and facilities Overall Financial Health The City of Bondurant's financial trends reflect a thriving and rapidly growing community, driven by pro,Kfr.10 fisc;ilmanagement, a growing tax base, and strategic capital investments. While revenues have increased significantly, theCity has deliberately reinvested in public services, infrastructure, and economic development to suppor·t it'., exp,rnclingpopulation. Although expenditures have risen, they align with the City's long-term development goi.1ls ,rnd 11011.1ensure sustainable service delivery, infrastructure improvements, and continued economic expansion B:.1 n1,iint<1inin,_:,a strong financial position, leveraging diverse revenue sources, and strategically managing expenditures ,md debt, Bondurant is well-positioned to sustain economic resilience, long-term stability, and future g1owth.,~I~ Annual Finance Report & External Audit 2025 I Bondurant Page102 ### Page 103 Financial TrendsKey Financial MetricsTo assess the City of Bondurant's financial health and performance over time, key financic1I metrics such as totalrevenues, total expenditures, net position changes, and fund balances provide valuable insight into the City's fiscalstability and long-term sustainability. l. Total Revenues Bondurant has experienced consistent revenue growth over the past decade, reflecting a strong tax base, i11creaseddevelopment activity, and diversified revenue streams. • FY 2025 Total Revenues: $15,618,791 • 10-Year Growth: Revenues have increased by 291%, from $3,992,308 in 2016 to $15,618,791 in 2025. • Largest Revenue Sources:o Property Taxes: $5,707,668 (37% of total revenue)o Tax Increment Financing (TIF): $3,247,621 (21%) o Intergovernmental Revenues: $1,998,660 (13%) o Other City Tax: $1,548,314 (10%) 2. Total Expenditures The City's expenditures have risen to meet the demands of population growth, infrastructure expansion, and increasedservice needs. • FY 2025 Total Expenditures: $34,515,461 • 10-Year Growth: Expenditures have more than septupled, rising from $4,729,067 in 2016 to $34,515,461 in 2025.• Major Expenditure Categories:o Public Safety: $3,189,497 (9% of total expenditures)o Public Works: $1,543,144 (4%)o Debt Service: $4,148,782 (12%)o Capital Projects: $22,737,135 (66%) 3. Net Position Changes The City's financial position is influenced by fluctuations in revenues and expenditures. The net position reflects whether the City is growing its assets or facing financial constraints. • FY 2025 Net Position Change: ($18,896,671) Deficit • Key Factor: Large capit_al expenditures and debt service payments contributed to this decrease. While theseinvestments increased current-period outflows, they position the City for future growth and long-term stability To finance these capital projects, the City received a record $47,474,226 in other financing sources, primarily from bond proceeds. 4. Fund Balances and Financial Reserves Maintaining healthy fund balances ensures the City has the resources to cover unforeseen expenses, infrJstructureinvestments, and economic downturns. • General Fund Balance: Stable, reflecting prudent financial management • Debt Service Fund: Sufficient to meet all required obligations. • Capital Projects Fund: Actively utilized to support infrastructure growth."#~I,,... Annual Finance Report & External Audit 2025 I Bondurant Pagel03 ### Page 104 Financial Trends 5. Debt and Long-Term Liabilities Debt financing has been used strategically to fund major projects while maintaining fisc;:il responsibility • Total Debt Service Payments (FY 2025): $4,748,782 • TIF Revenues Supporting Debt Payments: $2,7S3,242 • Debt per Capita (Projected 2025 Population ~9,SS0): $435 per resident Financial Outlook Bondurant's strong revenue growth, strategic investments in infrastructure, and responsible fiscal policies pr 1JVidc ;:istable foundation for continued expansion. While expenditures, particularly in capital projects and debt s,:,r·✓ rcc, h,l'lcincreased, they align with the City's long-term growth strategy. The City remains committed to maint;:iining fi11,:incialsustainability through responsible budgeting, prudent debt management, and continued economic dcvelnprn0r1tefforts. By closely monitoring these key financial metrics, Bondurant ensures it is well-positioned to support its growingcommunity, enhance services, and invest in the future.~.μC:J0C~Revenue Composition Over Time75,000,000 70,000,000 5,000,000 0 2076 2078 2020 2022 2024YearLicenses & Permits• Intergovernmental RevenueTax Increment FinancingIlk Property Tax~ Annual Finance Report & External Audit 2025 I Bondurant Expenditure Composition Ovt?r Time40,000,000 30,000,000~...,C~ 20,000,000 E<i: 70,000,000 0 2076 201s 2020 20n 207,.,Capital Projects,+,. 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