WS - D - Tiffin FS - FY 2023

City of Tiffin Notes to Basic Financial Statements NOTE 3 – LONG-TERM DEBT (CONTINUED) B. Revenue Notes – Direct Borrowing (Continued) The City has pledged future sewer customer receipts, net of specified operating disbursements, to repay $7,056,824 of sewer revenue bonds. Annual principal and interest payments on the bonds are expected to require less than 91% of net receipts. For the current year, principal and interest paid and total customer net receipts were $531,039 and $591,931, respectively. The resolutions providing for the issuance of the water and sewer revenue bonds include the following provisions:  The bonds will only be redeemed from the future earnings of the enterprise activity and the bond holders hold a lien on the future earnings of the funds.  Sufficient monthly transfers shall be made to separate water and sewer revenue bond sinking accounts within the Enterprise Funds for the purpose of making the note principal and interest payments when due.  User rates shall be established at a level which produces and maintains net revenues at a level not less than 110% of the amount of principal and interest on the bonds falling due in the same year.  The City shall cause the books and accounts of the sewer and water utilities to be audited annually.  All users of the system, including the City, shall pay for usage. The City does not pay for use of the systems as required by the water and sewer revenue bond resolutions. NOTE 4 – PENSION PLAN A. Plan Description IPERS membership is mandatory for employees of the City, except for those covered by another retirement system. Employees of the City are provided with pensions through a cost-sharing multiple- employer defined benefit pension plan administered by Iowa Public Employees' Retirement System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org. IPERS benefits are established under Iowa Code, Chapter 97B and the administrative rules thereunder. Chapter 97B and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. 21