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HomeMy WebLinkAbout2023-04-18 ResolutionPrepared By:Marri VanDyke, Civil Engineer Reviewed By:Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact:$52,300 available in the Iowa River Powerhouse Dam Project account #W3328 Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Amendment #1 Item Number: 6.a. April 18, 2023 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest Amendment No. 1 to the May 10, 2021 agreement by and between the City of Iowa City and Origin Design to provide engineering consultant services for the Iowa River Powerhouse Dam Repair Project. Executive Summary: The City of Iowa City previously hired Origin Design (formerly IIW, P.C.) to provide underwater inspection, preliminary design, final design, and construction services for the Iowa River Powerhouse Dam Repair Project. During completion of the underwater inspection of the dam, several deficiencies were identified that were not previously documented. The City desires to broaden the scope of Consultant services with this amendment to address these deficiencies. The fee for Amendment No. 1 is $52,300, which will increase the total consultant service fees for this project to $107,050. Background / Analysis: Origin Design’s original scope of work was based on an inspection report by GOE International, dated September 24, 2019. The required repairs identified in this report were limited to a localized area of undermining at one of the pedestrian bridge piers. The subsequent underwater inspection identified eleven specific deficiencies throughout the structure, including areas of undermining near two different piers, seven separate areas of scaled and spalling concrete, a hole near the crest of the dam with negative pressure, and a hole near the downstream end of the apron with negative pressure. Origin Design and City Engineering staff determined that a subconsultant with additional expertise in dam engineering should be hired to assist in design efforts associated with these unforeseen structural conditions. Prepared by:Marri VanDyke, Public Works,410 E.Washington St.,Iowa City, IA 52240;(319)356-5044 Resolution No. 23-115 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest Amendment No. 1 to the May 10, 2021 agreement by and between the City of Iowa City and Origin Design to provide engineering consultant services for the Iowa River Powerhouse Dam Repair Project. Whereas, the City of Iowa City, hereinafter "City", entered into an Agreement with Origin Design, formerly IIW, P.C. of Dubuque, Iowa, hereinafter "Consultant", on or about May 10, 2021, to prepare construction plans and contract documents for the Iowa River Powerhouse Dam Repair Project; and Whereas, the City Manager approved the original Consultant Agreement per the City's Purchasing Policy; and Whereas, during the completion of the underwater inspection of the dam, several deficiencies were identified that were not previously documented; and Whereas, the City desires to broaden the scope of services performed by the Consultant to address these additional deficiencies; and Whereas, the City and Consultant have negotiated Amendment #1 to the Agreement to provide said additional consulting services; and Whereas, if Amendment #1 is executed, the total compensation for services will exceed the City Manager's approval authority; and Whereas, it is in the public interest to enter into said Amendment #1 to the Agreement with Consultant; and Whereas, funds for this project are available in the Iowa River Powerhouse Dam Project account #W3328; Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. Amendment No. 1 to the Agreement, attached hereto, is in the public interest and is approved as to form and content. 2. The Mayor and City Clerk are hereby authorized and directed to execute the attached Amendment#1. 3. The City Manager is authorized to execute future amendments to this contract as they may become necessary. Passed and approved this 18th day of April , 2023 Resolution No. 23-115 Page 2 Ma Approved by Attest: ' 2 ity lerk City Attor y's Office (Liz Craig —04/10/2023) It was moved by Taylor and seconded by Dunn the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: x Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Amendment No. 1 to the May 10, 2021 Consultant Agreement CITY OF IOWA CITY Iowa River Powerhouse Dam Repair Project WHEREAS, a Consultant Agreement was entered into between the City of Iowa City (City), and Origin Design, formerly IIW, P.C. of Dubuque, Iowa (Consultant) dated May 10, 2021, to provide underwater inspection, preliminary design, final design, prepare a project manual for bidding, bidding assistance, and construction services for the Iowa River Powerhouse Dam Repair Project (Project); and WHEREAS, several deficiencies were identified during the completion of the Underwater Inspection of the above referenced facility that were not previously documented, and the repair thereof were not included in the original project scope. The additional deficiencies include an area of undermining located near Pier 1, (7) areas of scaled and/or spalling concrete, a hole near the crest of the dam with negative pressure (suction), and a hole near the downstream end of the apron with negative pressure (suction); and WHEREAS, the City desires to broaden the scope of services to be performed by the Consultant to address these additional deficiencies and WHEREAS, during Design, it was determined that due to the complicated nature of repairs it would be necessary for the Consultant to partner with a Sub-Consultant having expertise in Dam engineering to prepare drawings and technical specifications to be incorporated into the contract documents; and WHEREAS, it is anticipated that Construction Support will be needed during the repair to the hole in the dam crest; and NOW THEREFORE, it is mutually agreed to amend the Consultant Agreement as follows: I. SCOPE OF SERVICES CONSULTANT agrees to perform the following additional services for the City, and to do so in a timely and satisfactory manner. The following sections of the original Scope of Services, are hereby amended to include the following language. B. Repair Design and Permitting Add 13. Develop repair drawings and technical specifications for the deficiencies identified during the Underwater Inspection of the facility. The areas to be included specifically include: (1) area of undermining located near Pier 1 (Station 1+49), (1) area of undermining located near Pier 2 (Station 3+00), and (7) areas of scaled and/or spalling concrete (Station Varies). The hole near the crest of the dam with negative pressure (suction) shall be completed as part of added Item 14. The repair of the hole identified near the downstream end of the apron with negative pressure (Station 1+64) shall be explicitly excluded from this contract. Add 14. Subcontract with a Sub-Consultant to complete the design for the repair of the hole near the crest of the dam (STA 3+10). It is anticipated that the subconsultant will complete the following tasks: Amendment 01—Iowa River Powerhouse Dam Repair Project a. Project Management tasks and meetings specific to the specialized repair, including three (3) additional meetings. b. Review of existing background materials to help in the determination of the cause of negative pressure (suction). c. Development of repair drawings and technical specifications for the. above referenced area. It is anticipated the repair will include low-pressure grouting and patching of the hole at the dam crest. The scope will also include patching or placing formed concrete at the flow path exit if determined to be necessary during construction. Drawings and technical specifications will be-incorporated into the overall set of contract documents at Design Development (60%), Final Design (90%) and Construction (100%). C. Services during Construction Add 5. Subcontract with a Sub-Consultant to complete an assessment of the hole near the end of the apron (STA 1+64). Item assumes Consultant shall provide 20 hours of support and the Sub-Consultant will complete the following tasks: a. Provide onsite support during the repairs to the crest of the dam and low-pressure grouting operations. Up to 60 hours on-site time, including travel and up to 20 hours of office support is included. II. TIME OF COMPLETION Task Start Finish Repair Design and Permitting 04/01/2023 07/01/2023 Services during construction 07/01/2023 10/30/2023 III. COMPENSATION FOR SERVICES In consideration for performance of the above-described additional Scope of Services, the Consultant's hourly not-to-exceed fee is increased by $52,300.00 as detailed below, calculated on a time and materials basis at the rates and fees as shown in the attachment, making the total compensation for services, as amended, now $107,050.00. Item A. Underwater Inspection. Item remains unchanged. Item B. Repair Design and Permitting. Estimated Not-to-Exceed Fee of$48,800. Estimated fee includes the original estimated fee of $16,500, an estimated $18,000 in Sub-Consultant costs plus a 10% markup of$1,800, and an additional $12,500 in Consultant design efforts. Item A. Services During Construction. Estimated Not-to-Exceed Fee of $24,000. Estimated fee includes the original estimated fee of $4,000, an estimated $15,000 in Sub- Consultant costs, and an additional $5,000 in Consultant efforts. IV. All other provisions of the May 10, 2021 Consultant Agreement, not specifically amended herein shall remain in full force and effect. Amendment 01 —Iowa River Powerhouse Dam Repair Project FOR THE CITY FOR THE CONSULTANT By: l r By: Vice President Title: Mayor Title: Date: 04-18-2023 Date: 04-06-2023 Attest: 1.; 11L,_ --4. I Al}-F' J Appro d by: City Attorney's Office 9/0/� Date Amendment 01 —Iowa River Powerhouse Dam Repair Project Prepared By:Ben Clark, Sr. Engineer Reviewed By:Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact:$194,000 available in the Wastewater Digester Gas Improvements account #V3184 Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Agreement Item Number: 6.b. April 18, 2023 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest an Agreement by and between the City of Iowa City and Strand Associates, Inc., of Madison, Wisconsin to provide engineering consultant services for the Renewable Natural Gas Project. Executive Summary: This agenda item authorizes an agreement to provide consultant services for the Renewable Natural Gas Project at the Wastewater Treatment Facility. The agreement includes evaluations to further develop the project scope and opinion of capital cost, opinion of operations and maintenance costs, and opinion of revenue from the potential future production of Renewable Natural Gas (RNG) at the Facility. Once these details are developed and a future project scope is developed, a contract for additional services is expected to include final design, bidding, and construction phase services. Background / Analysis: The City of Iowa City recently commissioned a facility plan for the Digester Complex that, among other things, evaluated energy recovery alternatives for the biogas produced during the anaerobic digestion of organic matter during the waste treatment process. Staff would like to further pursue an identified alternative that will allow the plant to produce pipeline quality gas for sale on the renewable fuel markets. Potential funding opportunities related to the Inflation Reduction Act have been identified and are anticipated to be pursued as a part of the project. Digester gas will be treated to a quality acceptable to the local natural gas utility and injected in a nearby natural gas pipeline. Digester gas that is used as natural gas has considerable value in today’s renewable fuel markets through the trading of renewable identification numbers (RINs) by way of the Renewable Fuel Standard (RFS) program. The project will include gas conditioning equipment for moisture removal, gas compression, hydrogen sulfide removal, siloxane removal, and carbon dioxide removal that are required to meet local gas utility quality requirements. The conditioned gas will then be sent to a regulating station, which includes a remote pressure control system, odorizer tank, and gas quality monitoring equipment to regulate the injection of digester gas to the nearest high-load transmission pipeline. The gas will be conveyed through more than 2 miles of 4-inch gas pipeline to deliver the conditioned gas into the high load transmission pipeline. Prepared by:Ben Clark,Engineering Division,410 E.Washington St., Iowa City,IA 52240,(319)356-5436 Resolution No. 23-116 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest an Agreement by and between the City of Iowa City and Strand Associates, Inc., of Madison, Wisconsin to provide engineering consultant services for the Renewable Natural Gas Project. Whereas, the City desires the services of a qualified firm to provide engineering services for the Renewable Natural Gas Project, herein after referred to as the Project, located at the City's Wastewater Treatment Facility, 4366 Napoleon Street SE, Iowa City, IA 52240, and; Whereas, the Consultant prepared a facility plan for the Digester Complex that, among other things, evaluated energy recovery alternatives for the biogas produced during the anerobic digestion of organic matter during the waste treatment process; and Whereas, the City desires to proceed with an alternative that will produce Renewable Natural Gas (RNG)to a quality acceptable for distribution to the local natural gas utility; and Whereas, the Project includes evaluations to further develop the project scope and opinion of capital cost, opinion of operations and maintenance costs, and opinion of revenue from the production of RNG, and; Whereas, future scope of services is expected to include design, bidding, and construction phase services, and; Whereas, the City issued a Request for Proposals for engineering services for the Digester Complex Rehabilitation Project which included future waste to energy projects, and; Whereas, submittals were received from consulting firms and evaluated by a selection committee, and; Whereas, Consultant was selected based on qualifications and project specific criteria such as project approach, regulatory process experience, key personnel, schedule, and compensation, and; Whereas, funds are available in the Wastewater Digester Gas Improvements fund #V3184. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The Consultant Agreement attached hereto is in the public interest, and is approved as to form and content. 2. The Mayor and City Clerk are hereby authorized and directed to execute the attached Consultant Agreement. 3. The City Manager is authorized to execute amendments to the Consultant Agreement as they may become necessary. Passed and approved this 18th day of April , 2023 Resolution No. 23-116 Page 2 Ma /. Approved by Attest: City lerk iJ City Attorne s Office—04/13/2023 It was moved by Taylor and seconded by Dunn the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: x Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Consultant Agreement This Agreement, made and entered into this 18th day of April 2023, by and between the City of Iowa City, Iowa, a municipal corporation, hereinafter referred to as the City and Strand Associates, Inc.®, of Madison, Wisconsin, hereinafter referred to as the Consultant. Whereas, the City issued a Request for Proposals (RFP)for engineering services for its Digester Complex Rehabilitation Project, which included the study of potential waste to energy projects at the City's Waste Water Treatment Facility Digester Complex; and Whereas, submittals were received from consulting firms and evaluated by a selection committee; and Whereas, Consultant was selected based on qualifications and project-specific criteria such as project approach, regulatory process experience, key personnel, schedule, and compensation; and Whereas, the City and Consultant entered into a Consultant Agreement for the creation of a Facilities Plan for the Waste Water Treatment Facility Digester Complex (hereinafter "Facility Plan") that, among other things, evaluated energy recovery alternatives for the biogas produced during the anerobic digestion of organic matter during the waste treatment process; and Whereas, the City now desires to contract with Consultant to provide engineering services necessary to develop a concept plan for an energy recovery alternative that will produce renewable natural gas(RNG)to a quality acceptable for distribution to the local natural gas utility, herein after referred to as the"Renewable Natural Gas Project"or"Project;"and Whereas, the Project includes evaluations to further develop the project scope and opinion of capital cost, opinion of operations and maintenance costs, and opinion of revenue from the production of RNG; and Whereas, funds are available in the Wastewater Digester Gas Improvements fund#V3184. Now therefore, it is agreed by and between the parties hereto that the City does now contract with the Consultant to provide services as set forth herein. I. Scope of Services Consultant agrees to perform the following conceptual design services for the City, and to do so in a timely and satisfactory manner. A. Project Kickoff Meeting 1. Conduct a kickoff meeting at City's Wastewater Treatment Facility(WWTF). 2. Review biogas portions of the Facilities Plan, related calculations, previously developed concepts and previous communications with MidAmerican Energy Company(MEC). 3. Summarize potential digester gas upgrading technologies applicable to City. 4. Develop meeting agenda and minutes. B. Review gas sampling results for three new samples conducted by the City. Consultant shall review and summarize the test results, with suggestions for future testing if results are significantly variable. C. High-Strength Waste (HSW) 1. Evaluate HSW availability in the Iowa City area to evaluate potential HSW types and quantities available. Page 1 of 6 2. Review significant industrial users and other known regional entities with City staff to develop a short list of potential HSW generators. 3. Review with City the need for sampling of potential waste streams at City-selected industrial user sites.City shall provide information regarding the projected availability of local fats, oils, and grease sources based on local commercial processors' current practices. Sampling and analytical services shall be provided by City. 4. Review with the City the data and waste characteristics that are important to codigestion, including quantities of wastes available, waste characteristics, potential for contamination of regulated materials, current disposal methods, and feasibility of diverting wastes to the WWTF. 5. Determine the need for high-level pilot testing and develop a pilot testing strategy for implementation by City. 6. Document typical methods for monitoring waste characteristics to mitigate risks to digestion processes. 7. Evaluate the potential gas production from available HSW codigestion. 8. Evaluate the receiving, storage, and pumping systems needed to accept HSW. D. Evaluate alternative RNG cleaning systems, including off-gas treatment. 1. Establish preliminary design flow rates for the gas upgrading equipment sizing to accommodate flow growth and fluctuations based on growth projections developed by Consultant and City during Facilities planning. 2. Evaluate life cycle costs for three alternative cleaning systems. 3. Evaluate off-gas treatment technology and the related greenhouse gas emissions of the evaluated cleaning systems. E. Evaluate RNG pipeline routing to determine the most efficient connection to the existing MidAmerican Energy gas transmission line. 1. Consultant shall use the preliminary alignment identified in the Facilities Plan. 2. Review existing easements, waterways, railroads, and other obstacles visible on public information sources to the planned route for use in updating the pipeline opinion of probable cost. 3. Based on the preliminary review of the alignment, evaluate the costs for easements, land acquisition, and RNG pipeline construction. F. Review the project with MEC and evaluate pipeline ownership, metering setup, monitoring standards, and related interconnection challenges. G. Develop conceptual design summary for the project including a brief four- to five-page technical memorandum with PowerPoint slides (attachments) to document the findings. The conceptual design summary and attachments shall include the following: 1. Opinions of capital costs, operations and maintenance cost, revenue based on current market conditions, and payback for the RNG project and separately for the RNG plus HSW codigestion project. The anticipated Investment Tax Credit opportunities related to the Inflation Reduction Act shall be summarized. 2. Process flow diagram, preliminary process and instrumentation diagram, and equipment lists as the basis. Page 2 of 6 H. Conduct two review meetings with the City in person to review the project results and deliverables. Conduct site visits to operating RNG and HSW facilities in Dubuque and Des Moines, including two one-day trips. II. Time of Completion The Consultant shall complete the Scope of Services within 20 weeks of the City's authorization to proceed, including receipt of this fully executed Agreement, which is anticipated the week of April 17, 2023. Ill. Compensation for Services Consultant shall be compensated for performing the above-described Scope of Services on an hourly rate basis not to exceed one hundred ninety-four thousand dollars ($194,000) in accordance with the Hourly Billing Rate Schedule below. No compensation shall be paid for mileage or meals for the in-person meetings or trips described in the Scope of Services. Hourly Billing Rates* Senior Project Manager $280 to$320 Senior Project Engineer $220 to$280 Project Engineers $150 to$250 Junior Project Engineers $110 to $170 Technicians $100 to$150 Administrative $ 90 to $115 * Updated annually on July 1 not to exceed 15% markup from previous year. IV. General Terms A. The Consultant shall not commit any of the following employment practices and agrees to prohibit the following practices in any subcontracts. 1. To discharge or refuse to hire any individual because of their race, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. 2. To discriminate against any individual in terms, conditions, or privileges of employment because of their race, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. B. Should the City terminate this Agreement, the Consultant shall be paid for all services performed up to the time of termination. However, such sums shall not be greater than the "not-to-exceed" amount listed in Section III. The City may terminate this Agreement upon seven (7) calendar days'written notice to the Consultant. C. This Agreement shall be binding upon the successors and assigns of the parties hereto, provided that no assignment shall be without the written consent of all Parties to said Agreement. D. It is understood and agreed that the retention of the Consultant by the City for the purpose of the Project shall be as an independent contractor and shall be exclusive, but the Consultant shall have the right to employ such assistance as may be required for the performance of the Project. E. It is agreed by the City that all records and files pertaining to information needed by the Consultant for the project shall be available by said City upon reasonable request to the Consultant. The City agrees to furnish all reasonable assistance in the use of these records and files. Page 3 of 6 F. It is further agreed that no Party to this Agreement shall perform contrary to any state, federal, or local law or any of the ordinances of the City of Iowa City, Iowa. G. At the request of the City,the Consultant shall attend meetings of the City Council relative to the services as set forth in this Agreement. Any requests made by the City shall be given with reasonable notice to the Consultant to assure attendance. Meetings in addition to those provided for in the scope of services shall be considered additional services. H. The Consultant agrees to furnish, upon termination of this Agreement and upon demand by the City, copies of all basic notes and sketches, charts, computations, and any other data prepared or obtained by the Consultant pursuant to this Agreement without cost, and without restrictions or limitation as to the use relative to specific projects covered under this Agreement. In such event, the Consultant shall not be liable for the City's use of such documents on other projects. The Consultant agrees to furnish all reports, specifications, and drawings with the seal of a licensed professional as required by Iowa law. J. The City agrees to tender the Consultant all fees in a timely manner, excepting, however, that failure of the Consultant to satisfactorily perform in accordance with this Agreement shall constitute grounds for the City to withhold payment of the amount sufficient to properly complete the Project in accordance with this Agreement. K. Should any section of this Agreement be found invalid, it is agreed that the remaining portion shall be deemed severable from the invalid portion and continue in full force and effect. L. Original contract drawings shall become the property of the City. The Consultant shall be allowed to keep reproducible copies for the Consultant's own filing use. M. Fees paid for securing approval of authorities having jurisdiction over the Project will be paid by the City. N. Upon signing this Agreement, Consultant acknowledges that Section 362.5 of the Iowa Code prohibits a City officer or employee from having an interest in a contract with the City, and certifies that no employee or officer of the City, which includes members of the City Council and City boards and commissions, has an interest, either direct or indirect, in this Agreement, that does not fall within the exceptions to said statutory provision enumerated in Section 362.5. O. Indemnification 1. To the full extent permitted by law, Consultant agrees to defend, indemnify, and hold harmless the City against any and all claims, demands, suits, loss, expenses, including attorney's fees, and for any damages which may be asserted, claimed or recovered against or from the City by reason of personal injury, including bodily injury or death,and property damages, including loss of use thereof,caused by Consultant's negligent acts, errors or omissions in performing the work and/or services provided by Consultant to the City pursuant to the provisions of this Agreement. 2. Consultant assumes full responsibility for any and all damage or injuries which may result to any person or property by reason of Consultant's negligent acts, errors or omissions in connection with the work and/or services provided by Consultant to the City pursuant to this Agreement, and agrees to pay the City for all damages caused to the City's premises resulting from the negligent acts, errors or omissions of Consultant. 3. The Consultant's obligation to indemnify the City shall not include the obligation to indemnify, hold harmless, or defend the City against lability, claims, damages, losses, or expenses, including attorney fees, to the extent caused by or resulting rom the negligent act, error, or omission of the City. Page 4 of 6 4. For purposes of this paragraph, the term "Consultant" means and includes the Consultant, its officers, agents, employees, sub-consultants, and others for whom Consultant is legally liable, and the term"City"means and includes the City of Iowa City, Iowa its Mayor, City Council members, employees, and volunteers. P. Insurance 1. The Consultant agrees at all times material to this Agreement to have and maintain professional liability insurance covering the Consultant's liability for the Consultant's negligent acts, errors and omissions in the sum of $1,000,000 Per Claim, $1,000,000 Annual Aggregate, or a $1,000,000 Combined Single Limit. To the fullest extent permitted by applicable state law,a Waiver of Subrogation Clause (endorsement) shall be added. 2. Consultant agrees to provide the City a certificate of insurance evidencing that all coverages, limits and endorsements required herein are maintained and in full force and effect, and certificates of Insurance shall provide a minimum thirty (30) day endeavor to notify, when available by Consultant's insurer. If the Consultant receives a non-renewal or cancellation notice from an insurance carrier affording coverage required herein, or receives notice that coverage no longer complies with the insurance requirements herein, Consultant agrees to notify the City within five (5) business days with a copy of the non-renewal or cancellation notice. Q. Standard of Care 1. The Consultant shall perform services for, and furnish deliverables to, the City pertaining to the Project as set forth in this Agreement. The Consultant shall possess a degree of learning, care and skill ordinarily possessed by reputable professionals, practicing in this area under similar circumstances. The Consultant shall use reasonable diligence and professional judgment in the exercise of skill and application of learning. 2. Consultant represents that the Services and all its components shall be free of defects caused by negligence; shall be performed in a manner consistent with the standard of care of other professional service providers in a similar Industry and application; shall conform to the requirements of this Agreement; and shall be sufficient and suitable for the purposes expressed in this Agreement. 3. All provisions of this Agreement shall be reconciled in accordance with the generally accepted standards of the Engineering Profession. 4. Consultant's obligations under this Section shall exist without regard to, and shall not be construed to be waived by,the availability or unavailability of any insurance, either of City or Consultant. R. There are no other considerations or monies contingent upon or resulting from the execution of this Agreement, it is the entire Agreement, and no other monies or considerations have been solicited. S. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Iowa. Any legal proceeding instituted with respect to this Agreement shall be brought in a court of competent jurisdiction in Johnson County, Iowa.The parties hereto hereby submit to personal jurisdiction therein and irrevocably waive any objection as to venue therein, including any argument that such proceeding has been brought in an inconvenient forum. Page 5 of 6 FOR THE CITY FOR THE CONSULTANT CITY OF IOWA CITY STRAND ASSOCIATES, INC.® By: ( By: Joseph M. Bunker Title: Mayor Title: Corporate Secretary Date: April 18, 2023 Date: April 13, 2023 ATTEST: )-/-4e_...(.,.. ,k) ,, TEST: Maria del Rosario O'Hearn )/ Approved by: ,17..c.........„ City Attorney's Office Date: 9�--77:2.- Page 6 of 6 Prepared By:Kumi Morris – Facilities Manager Reviewed By:Geoff Fruin – City Manager Fiscal Impact:Funds available in the Facility Reserve Fund, org # 10310713. The estimated cost is $105,000. Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution OPN Agreement Item Number: 6.c. April 18, 2023 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest an Agreement by and between the City of Iowa City and OPN Architects, Inc., to provide architectural and engineering consultant services for the City Hall Master Plan and Feasibility Study Project. Executive Summary: This agenda item authorizes an agreement to provide consultant services for the City Hall Master Plan and Feasibility Study Project. This project is noted in the City's Strategic Plan and will help ensure the eventual creation of a plan to accommodate physical space needs of City operations for decades to come. Background / Analysis: The City of Iowa City, City Hall is located in the original 1957 municipal building location at the corner of Gilbert Street and Washington Street in downtown Iowa City. The initial structure housed the first Fire Station in Iowa City. The building was subsequently expanded to add the Police Station and City Hall complex through many additions and renovations including in 1959,1964, 1989,1992 and 1999— all within the confines of the primary property site. In the 2012 executive summary report of the Iowa City Municipal Facilities Study, which included a comprehensive overview and assessment of Iowa City’s 23 major facilities, identified and prioritized city structures that should be addressed for deferred maintenance, performance and general space shortage that impeded functionality. The essential services of the Police Department and downtown Fire Station #1 in the City Hall complex were listed in the highest priority for space shortage. Currently, each of these operations have maxed out physical space and include substandard work environments for staff. The report recommended performing a detailed analysis of the City Hall complex, to examine the departmental adjacency needs, to review interior locations to accommodate proximities and accessibility to the public. Examples included considering the co-location of Finance Department divisions, and also to bring together the various located divisions within the Neighborhood, Planning and Development Department throughout City Hall. Further, the report recommended the future review to increase office spaces for “landlocked” departments with staff growth, and to include a comprehensive survey of department work and public spaces that were operating within an out-of-date functional footprint for the current population of the City of Iowa City, a case in point was to enlarge the 1960s designed area for the City Council chamber to accommodate appropriate additional public seating capacity. The Consultant’s scope of work for the City Hall Master Plan and Feasibility Study Project is to create a cohesive vision for the future departments and the City Hall Complex. The work will review existing departments and divisions space allocation and needs. The recommendations may include relocations of City departments within and outside of the current complex site footprint. Specifically, the study will analyze the possibility of relocating the Police Department to a standalone facility and allowing Fire and City Hall the ability to grow into the vacated space downtown. That analysis will include a high-level evaluation of the Public Works campus site at the intersection of Highways 1 and 6. The study will also work to resolve existing space and building deficiencies, improve operational efficiencies and cross-departmental collaboration. The intent of the project is to promote high performance governance with innovative public engagement, safe and healthy workspaces. The master plan would help the City develop a blueprint for responsible growth, engaging in best environmental and energy building and planning practices with an understanding of the City’s fiscal constraints. The project will prioritize and phase best first investments and overall lifecycle costs for the City Hall complex. Prepared by:Kumi Morris, Government Buildings,410 E.Washington St., Iowa City,IA 52240,(319)356-5082 Resolution No. 23-117 Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to attest an Agreement by and between the City of Iowa City and OPN Architects, Inc., to provide architectural and engineering consultant services for the City Hall Master Plan and Feasibility Study Project Whereas, the City desires to resolve existing space and building deficiencies, improve operational efficiencies and cross-departmental collaboration, promote high performance governance with innovative public engagement, safe and healthy workspaces; and Whereas, the City desires to engage in the best environmental and energy conservation building practices, develop a plan for responsible growth and bring City Hall, Police Department and Fire Department Administration offices up to current ADA standards; and Whereas, the City determined that a comprehensive space needs study and master plan for City Hall was necessary to create a cohesive vision for the future of the departments and the facility; and Whereas, the City of Iowa City desires to obtain the services of a qualified consulting firm to provide preliminary design services for the City Hall Master Plan and Feasibility Study Project; and Whereas, the City issued a Request for Qualifications, On-Call Professional Design and Engineering Services (2023-2025), to private consulting firms interested in providing design and engineering services related to public improvement projects in the City of Iowa City; and Whereas, submittals were received from consulting firms and evaluated by a selection committee; and Whereas, Consultant was selected based on qualifications, key personnel, project approach, and fees and rates; and Whereas, it is in the public interest to enter into said Consultant Agreement with OPN Architects, Inc.; and Whereas, funds for this project are available in the Facility Reserve Fund account# 10310713. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The Consultant Agreement attached hereto is in the public interest, and is approved as to form and content. 2. The Mayor and City Clerk are hereby authorized and directed to execute the attached Consultant Agreement. 3. The City Manager is authorized to execute amendments to the Consultant Agreement as they may become necessary. Resolution No. 23-117 Page 2 Passed and approved this 18th day of April , 20 23 M1 o Approved by Attest: L12� ''' —4; I it .(, Clerk City" City Attorn 's Office—04/13/2023 It was moved by Taylor and seconded by Dunn the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Consultant Agreement This Agreement, made and entered into this 18th day of April 2023 by and between the City of Iowa City, a municipal corporation, hereinafter referred to as the City and OPN Architects, Inc., of Iowa City, hereinafter referred to as the Consultant. Whereas, the City desires to obtain the services of a qualified consulting firm to provide preliminary design services for the City Hall Master Plan and Feasibility Study Project; and Whereas, the City issued a Request for Qualifications, On-Call Professional Design and Engineering Services (2020-2022), May 1, 2020, to private consulting firms interested in providing design and engineering services related to public improvement projects in the City of Iowa City; and Whereas, submittals were received from consulting firms and evaluated by a selection committee; and Whereas, Consultant was selected based on qualifications, key personnel, project approach, and fees and rates; and Now Therefore, it is agreed by and between the parties hereto that the City does now contract with the Consultant to provide services as set forth herein. I. Scope of Services Consultant agrees to perform the following services for the City, and to do so in a timely and satisfactory manner. Summary: Scope of work includes three components: 1. A space analysis and concept design for the Iowa City- City Hall Building. The space analysis includes an assessment of current space needs, as well as projected space needs into the future. The concept design will include exploring options for remodeling and modifying the existing building to accommodate future needs. Space type investigations will also explore potential for moving off-site entities into City Hall, see astricted organizations under City Departments and Stakeholders. a. Scope will review projected space needs within the building existing footprint. b. Scope will also review potential projected space needs by expanding on existing site footprint. 2. Future Location for Police Department a. Confirmation of program and parameters required for future site(s) including gross square feet (GSF) needs of Police operations for building and site space needs. b. Feasibility review of the old Public Works campus on Riverside Drive as a future location for the Police Department. 2 3. A potential new building in partnership with the County and/or other entities to accommodate space for the Housing Authority Division of Neighborhood and Development Services. Primary Location(s): 1. Iowa City- City Hall -410 E Washington St, Iowa City, IA 52240 2. North site of Public Work operations on 1200 South Riverside Dr., Iowa City, IA 52246 3. Potential site(s)with Johnson County Existing building's physical characteristics: Multi-story split-level structure - approximately 66,320 GSF Space types: Anticipated to include, but is not limited to, Open Office, Private Offices, Meeting/Collaboration Spaces, Public Conference Space/Council Chambers, Secure Entry(s), Lobby, Garages, Fire Station 1 housing/bay and administration, Wellness and Breakrooms, Public Restrooms, Storage, Maintenance, ITS Equipment and Miscellaneous Support Spaces as required. City Departments & Stakeholders Meetings limited to the Departments and Divisions organizations. Bulleted Divisions, Subdivisions and groups will be represented by Departments and Divisions organizations listed numerically below. 1. City Manager's Office • Climate and Outreach • Economic Development • Equity and Human Rights Office • Human Resources 2. Communication Office [Under City Manager's Office] • Communications office staff • Cable Television* [off-site office location in Tower Place, 10 S. Linn Street] • City Hall Information desk 3. City Attorney's Office and City Clerk's Office • City Council 4. Finance Department • Finance Administration • Revenue Division • Accounting • Purchasing • Information Technology Service 5. Police Department • Administration • Investigations • Patrol 3 • Community Service Officers (CSO)/Watch Command/Station Masters • Records • Animal Services 6. Fire Department • Administration Office • Fire Station 1 7. Neighborhood and Development Services (NDS) • Development Services i. Building Inspection Services ii. Urban Planning • Neighborhood Services i. Community Development ii. Housing Authority iii. Housing Inspection Services 8. City Engineering Division of Public Works Department 9. City Hall Facilities/Maintenance under Government Buildings* 10. Transportation/Parking Office* *Organizational entities,not currently located in City Hall Budget: We understand the construction budget for the project has not been estimated by the Owner and OPN shall provide a concept estimate to assist in establishing the construction budget. Project Team OPN Architects, Inc. includes the following consultant team within our Scope of Work: Architect OPN Architects, Inc. Justin Bishop, AIA- Principal Landon Burg, AIA— Project Manager Mechanical, Electrical, Plumbing and Technology (MEPT) Engineers Design Engineers Dwight Schumm PE - Principal Scope of Services Basic Services outlined below cover the minimum activities required to complete the Study. Additional Services provide optional offerings that are value-added opportunities for your consideration. 1. Basic Services: Visioning/Programming; and 2. Basic Services: Concept Design; and 3. Additional Services: Benchmarking 1) Basic Services: Visioning/Programming 4 a) Research i) Conduct a Visioning Session with client's selected core team to gain an understanding of the client's social, cultural, and economic drivers for the project. ii) Conduct small-group departmental interviews with client's selected staff to gain an understanding of space types, needs and functions. Assume 1 meeting per group. Up to 10 groups total, including: • Police Department will require site visits to additional facilities. • NDS requires separate sub-meeting for Housing Authority Office. b) Identify Goals and Objectives i) Develop organization goals for the project. ii) Establish guiding principles and core values. iii) Develop facility goals for the project. iv) Determine sustainability goals. v) Determine future expansion goals. c) Gather and Analyze Information i) Determine all business functions within the organization. ii) Determine any specialized functions to be included within or adjacent to the organization. iii) Determine departmental and division adjacency requirements. iv) Determine space criteria, square footage requirements, height requirements, specialized equipment, etc. d) Programmatic Strategies i) Develop functional relationship diagrams as required to convey programmatic adjacencies. ii) Develop flow diagrams as necessary to communicate how people and departments move throughout the facility. iii) Determine whether any departments or services need to be centralized or decentralized. iv) Strategies may include, but are not limited to: (a) Improving public customer service or access to specific department entities, such as utility bill payment w/out use of elevator for patrons or HR office for job applications (b) Egress and safety, such as confined spaces with only one entrance/exit from Human Resources or City Clerk (c) Single elevator improvements (d) Prioritizing staff office space to areas with natural light/windows (e) Shifting conference space, storage, ITS and HVAC systems, circulatory corridors, storm shelter, restrooms, elevators, stairwells to internal locations (f) Improving staff co-mingling spaces- communication and engagement opportunities with breakroom/fitness room, etc. v) Space considerations may include, but are not limited to, evaluating: (a) Current City Council space size for public meetings and American Disabilities Act (ADA) improvements from Council to the City Manager's conference room. (b) IT Equipment vulnerability in lower level to potential flooding. (c) Long term location for back-up generator considering flood plain exposure. 5 (d) ADA accessibility of lower-level restrooms. (e) Nursing/Lactation space for staff. (f) Future Police site to include, but not limited to: Accreditation classification space and site amenities 1. Administration Office space a. Offices including but not limited to: Police Chief Office Administration, Field Operations, Support Services, Training/accreditation, Planning/research, Evidence, Victim Service Coordinator, Communications Outreach assistants, System Analyst. 2. Public Station Master- public engagement 3. Records office and storage 4. Report writing room(s) 5. Public engagement/lobby and transactional area 6. Watch Command Office/Patrol 7. Investigation team offices 8. Interview Rooms 9. Secured processing area 10. Locker Rooms 11. Secured Uniform Storage 12. Secured Riot gear and Equipment Storge 13. Public and staff restrooms 14. Meeting rooms 15. Conference/Education room 16. Secured Evidence Operation Spaces a. Transfer of evidence area b. Laboratory space c. Short-term Evidence Storage d. Long-term Evidence Storage 17. Training facilities 18. Breakroom 19. ITS Data Room 20. Mechanical Room 21. Storage 22. Mail Center 23. Radio Charging Station 24. Miscellaneous Support Spaces 25. Shared functions and synergies with other entities 26. Protected areas for police equipment and vehicles. e) Develop Final Deliverables: i) Owner will have an opportunity to review the report at 75% of completion. The intent is to allow the Owner to be able to review document and to correct course before the final deliverables are completed. (a) The Owner will have fifteen (15) working days to review the report. ii) Program Summary Booklet Including: (a) Executive Summary. (b) Visioning Summary. 6 (c) City Hall Campus-410 East Washington Street 1. Area Summary, Space List Spreadsheet. 2. Graphic Space Diagrams. 3. Departmental Adjacency Information a. Department Divisional Adjacency Information. 4. Departmental Interview Summary. (d) Police Building site/campus; and 1. Area Summary, Space List Spreadsheet. 2. Graphic Space Diagrams a. Department Divisional Adjacency Information. 3. Departmental Interview Summary (e) Housing Authority; and 1. Area Summary, Space List Spreadsheet. 2. Graphic Space Diagrams- internal necessary adjacencies for staff groups in the division. 3. Departmental Interview Summary. 2) Basic Services: Concept Design a) Architectural Scope i) Review Existing conditions, materials, and finishes to determine scope of renovation. ii) Review building code and ADA issues within the boundaries of the proposed renovation areas. iii) Review Storm shelter code requirements and design solutions. iv) Provide design plan options that reflect programming and input provided by Owner a. City Hall Campus site i. Up to 3 primary design solutions may be developed —with one final preferred solution to be used for renderings and cost estimating. b. Police campus i. Up to 3 primary design solutions may be developed —with one final preferred solution to be used for renderings and cost estimating. v) Attend/facilitate monthly virtual progress meetings. vi) Provide site visit(s)for Architectural field investigation as needed. vii) Attend up to ten (10)departmental interviews—to be scheduled in groups across the time frame of one week, if possible. viii)Attend up to five (5) in-person Owner(steering committee) meetings at City Hall ix) Attend one (1) presentation of the project to a combined meeting of user groups to be determined by the City. x) Attend up to two (2) presentations to leadership or outside stakeholders. b) Mechanical Electrical Plumbing (MEP) Scope i) Review HeatingNentilation/Air Conditioning (HVAC) Systems: a. Review the existing HVAC system and past reports/studies to determine sizes and capacities. Including a prior energy efficiency, carbon reduction, and electrification study. 7 b. Review up to three (3) HVAC system options for feasibility and make comments on the positive and negative aspects of each option. ii) Review Plumbing Systems: a. Review the existing plumbing infrastructure to determine capacity to accommodate potential restroom revisions. b. Review existing plumbing fixture counts and ADA compliance. c. Define design scope required to facilitate recommended changes to restrooms. iii) Review Fire Protection Systems: a. Review existing site fire protection systems to determine requirements for adding or modifying fire protection and confirm modifications required for the new layout. iv) Review Electrical Power& Lighting Systems: a. Review existing electrical distribution and systems and confirm modifications required for the new layout, including emergency power needs and future generator capacity. b. Perform load calculations on preliminary revised HVAC system to determine distribution capacity requirements. v) Provide site visit(s)for MEP field investigation as needed. vi) Attend up to two (2) in-person Owner MEP meetings at City Hall. vii) Attend up to three (3) virtual Owner MEP meetings. c) Cost Estimator Scope i) Provide input and guidance on budget decisions throughout the study. ii) Develop a Construction Cost Estimate for one preferred design solution. a. Including sustainable first building costs. b. Cost may be broken down per floor, or in a manner agreed upon with the Owner prior to completing the estimate. Multiple estimates due to modified scope, changes in phasing, or value engineering are subject to adjustments in schedule and associated fees. iii) Provide a conceptual project schedule for design and construction phases. iv) Review logistics of the project and develop a schedule that may account for project phasing or partial occupancy. d) Concept Design Deliverables i) Drawings a. Preliminary Code Review. b. Phasing Diagrams. c. Existing Floor plans—with extent of demolition noted. d. Proposed Floor Plans. e. Exterior Elevations —for new structures and/or potential facade. modifications of existing building. f. Supplemental views and/or details impactful for pricing. ii) Renderings a. Up to 8 still images rendered of key spaces—views may be predetermined with the Owner. Images will depict the quality of space and design intent of materials, including placeholder/generic furniture systems • and basic entourage helpful for illustrating scale of the space. Exact material selections and photo-realistic renderings are excluded. iii) Narrative a. Written narrative of building construction assemblies and MEP systems - suitable for cost estimating and confirmation of project scope with Owner. iv) Schedule a. Overall project design and construction schedule including phasing and logistics as necessary. v) Cost Estimate a. Construction Cost Estimate plus Owner inputs as available for a total project Budget. b. Construction Cost estimate format and subdivision of scope will be reviewed with Owner prior to completing the estimate—scope may be aligned to departments, funding, or other breakdowns as requested by the Owner prior to starting estimate. c. Owner will have an opportunity to review the estimated costs at 75% of report completion. The intent is to allow the Owner to be able to review study scope costs and to right the course before the final deliverables are presented. 3) Additional Services: Benchmarkinq Services a) Gather and Analyze Information i) Attend benchmarking tours and assist the Owner in organizing trips. ii) Compile Data gathered from companies visited and collect Owner feedback. b) Benchmarking Deliverables: i) Executive summary. ii) Benchmarking summary. iii) Core values analysis. iv) Synthesized data and metrics gathered from tours. v) Identify key factors for success and integration. c) Benchmarking services can vary widely and are dependent upon quantity of sites visited, duration of trip(s), and distances traveled. As an assumption on this project—OPN includes up to two 8-hour days of time for on-site visits in addition to the services required for preparation, documentation, and deliverables. Should additional days or trips be requested beyond the baseline assumption, fees may be negotiated for amendment to the lump sum or provided on an hourly basis. II. Time of Completion The Consultant shall complete the following phases of the Project in accordance with the schedule shown. OPN will meet a mutually agreed upon schedule for the delivery of documents. Timely receipt of information and feedback from the Owner is critical. Exact dates and interim milestones will be determined with the Owner upon project kickoff. 9 Commence Masterplan: April 2023 Masterplan Completion: October 2023 III. Compensation for Services Compensation shall be based on the rates and fees shown on the attachment. The total cost of services shall not exceed a lump sum fixed fee of Ninety-Nine Thousand Eight Hundred Dollars and No Cents ($99,800.00) plus additional services or reimbursable expenses if necessary. This fee is summarized below. Design Fee Summary Basic Services: Vision/Programming & Concept Design $99,800.00 Additional Services: Benchmarking $5,000.00 This fee will cover services and activities required to accomplish the scope of work within a time frame of eight (8) months. Should the project timeframe extend beyond this, because of conditions not under the control of OPN, fees may be adjusted to align with the effort extended. The project will be invoiced monthly as a percentage of work completed and commensurate with the work plan schedule. Any services if required beyond those described within the Agreement will be reviewed with the client to understand impact to scope of work or related fees. Reimbursable Expenses Reimbursable expenses are in addition to the above fee and will be invoiced at 1.1 times actual cost. Reimbursable expenses include authorized out-of-town travel, courier services, express mail, plan review fees, reproduction of project documents, photography, out-of-house digital processing, physical models, meals, and mileage at the government standard rate. Basic Services: Reimbursable Expenses Estimate = $1,500 Additional Services: Reimbursable Expenses = TBD with Benchmarking Exclusions—Available Upon Request Full Design Services- Schematic Design (SD) through Construction Administration (CA) 3D Lidar Scanning Detailed field take-off and measurement of existing conditions Structural Engineering Civil Engineering Landscape Architecture Furniture, Fixtures and Equipment (FFE) Design/Selection and Procurement Services Existing Space Utilization & Occupancy Studies 10 IV. General Terms A. The Consultant shall not commit any of the following employment practices and agrees to prohibit the following practices in any subcontracts. 1. To discharge or refuse to hire any individual because of their race, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. 2. To discriminate against any individual in terms, conditions, or privileges of employment because of their race, color, religion, sex, national origin, disability, age, marital status, gender identity, or sexual orientation. B. Should the City terminate this Agreement, the Consultant shall be paid for all work and services performed up to the time of termination. However, such sums shall not be greater than the "not-to-exceed" amount listed in Section III. The City may terminate this Agreement upon seven (7) calendar days' written notice to the Consultant. C. This Agreement shall be binding upon the successors and assigns of the parties hereto, provided that no assignment shall be without the written consent of all Parties to said Agreement. D. It is understood and agreed that the retention of the Consultant by the City for the purpose of the Project shall be as an independent contractor and shall be exclusive, but the Consultant shall have the right to employ such assistance as may be required for the performance of the Project. E. It is agreed by the City that all records and files pertaining to information needed by the Consultant for the project shall be available by said City upon reasonable request to the Consultant. The City agrees to furnish all reasonable assistance in the use of these records and files. F. It is further agreed that no Party to this Agreement shall perform contrary to any state, federal, or local law or any of the ordinances of the City of Iowa City, Iowa. G. At the request of the City, the Consultant shall attend meetings of the City Council relative to the work set forth in this Agreement. Any requests made by the City shall be given with reasonable notice to the Consultant to assure attendance. H. The Consultant agrees to furnish, upon termination of this Agreement and upon demand by the City, copies of all basic notes and sketches, charts, computations, and any other data prepared or obtained by the Consultant pursuant to this Agreement without cost, and without restrictions or limitation as to the use relative to specific projects covered under this Agreement. In such event, the Consultant shall not be liable for the City's use of such documents on other projects. The Consultant agrees to furnish all reports, specifications, and drawings with the seal of a licensed professional as required by Iowa law. 11 J. The City agrees to tender the Consultant all fees in a timely manner, excepting, however, that failure of the Consultant to satisfactorily perform in accordance with this Agreement shall constitute grounds for the City to withhold payment of the amount sufficient to properly complete the Project in accordance with this Agreement. K. Should any section of this Agreement be found invalid, it is agreed that the remaining portion shall be deemed severable from the invalid portion and continue in full force and effect. L. Original contract drawings shall become the property of the City. The Consultant shall be allowed to keep reproducible copies for the Consultant's own filing use. M. Fees paid for securing approval of authorities having jurisdiction over the Project will be paid by the City. N. Upon signing this Agreement, Consultant acknowledges that Section 362.5 of the Iowa Code prohibits a City officer or employee from having an interest in a contract with the City, and certifies that no employee or officer of the City, which includes members of the City Council and City boards and commissions, has an interest, either direct or indirect, in this Agreement, that does not fall within the exceptions to said statutory provision enumerated in Section 362.5. O. Indemnification 1. To the full extent permitted by law, Consultant agrees to defend, indemnify, and hold harmless the City against any and all claims, demands, suits, loss, expenses, including attorney's fees, and for any damages which may be asserted, claimed or recovered against or from the City by reason of personal injury, including bodily injury or death, and property damages, including loss of use thereof, caused by Consultant's negligent acts, errors or omissions in performing the work and/or services provided by Consultant to the City pursuant to the provisions of this Agreement. 2. Consultant assumes full responsibility for any and all damage or injuries which may result to any person or property by reason of'Consultant's negligent acts, errors or omissions in connection with the work and/or services provided by Consultant to the City pursuant to this Agreement, and agrees to pay the City for all damages caused to the City's premises resulting from the negligent acts, errors or omissions of Consultant. 3. The Consultant's obligation to indemnify the City shall not include the obligation to indemnify, hold harmless, or defend the City against lability, claims, damages, losses, or expenses, including attorney fees, to the extent caused by or resulting from the negligent act, error, or omission of the City. 4. For purposes of this paragraph, the term "Consultant" means and includes the Consultant, its officers, agents, employees, sub-consultants, and others for whom Consultant is legally liable, and the term "City" means and includes the 12 City of Iowa City, Iowa its Mayor, City Council members, employees, and volunteers. P. Insurance 1. The Consultant agrees at all times material to this Agreement to have and maintain professional liability insurance covering the Consultant's liability for the Consultant's negligent acts, errors and omissions in the sum of$1,000,000 Per Claim, $1,000,000 Annual Aggregate, or a $1,000,000 Combined Single Limit. To the fullest extent permitted by applicable state law, a Waiver of Subrogation Clause (endorsement) shall be added. 2. Consultant agrees to provide the City a certificate of insurance evidencing that all coverages, limits and endorsements required herein are maintained and in full force and effect, and certificates of Insurance shall provide a minimum thirty (30) day endeavor to notify, when available by Consultant's insurer. If the Consultant receives a non-renewal or cancellation notice from an insurance carrier affording coverage required herein, or receives notice that coverage no longer complies with the insurance requirements herein, Consultant agrees to notify the City within five (5) business days with a copy of the non-renewal or cancellation notice. Q. Standard of Care 1. The Consultant shall perform services for, and furnish deliverables to, the City pertaining to the Project as set forth in this Agreement. The Consultant shall possess a degree of learning, care and skill ordinarily possessed by reputable professionals, practicing in this area under similar circumstances. The Consultant shall use reasonable diligence and professional judgment in the exercise of skill and application of learning. 2. Consultant represents that the Services and all its components shall be free of defects caused by negligence; shall be performed in a manner consistent with the standard of care of other professional service providers in a similar Industry and application; shall conform to the requirements of this Agreement; and shall be sufficient and suitable for the purposes expressed in this Agreement. 3. All provisions of this Agreement shall be reconciled in accordance with the generally accepted standards of the Engineering Profession. 4. Consultant's obligations under this Section shall exist without regard to, and shall not be construed to be waived by, the availability or unavailability of any insurance, either of City or Consultant. R. There are no other considerations or monies contingent upon or resulting from the execution of this Agreement, it is the entire Agreement, and no other monies or considerations have been solicited. S. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Iowa. Any legal proceeding instituted with respect to this Agreement shall be 13 brought in a court of competent jurisdiction in Johnson County, Iowa. The parties hereto hereby submit to personal jurisdiction therein and irrevocably waive any objection as to venue therein, including any argument that such proceeding has been brought in an inconvenient forum. For the City For the Consul a? v '17 By: R� �°'� B : % Y Y _ed� Title: Mayor Title: Princi al - OPN Architects Date: 04/18/2023 � Date: 4/12/2023 Attest: Appro by: City Attorney's Office Date Prepared By:Ben Clark, Sr. Engineer Reviewed By:Juli Seydell Johnson, Parks & Recreation Director Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact:$366,373.18 available in the Recreation Center Improvements account #R4351 Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Item Number: 6.d. April 18, 2023 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Mercer Park Aquatic Center & Scanlon Gym Exterior Accessibility and Lighting Improvements Project. Executive Summary: This agenda item awards the construction contract for the Mercer Park Aquatic Center & Scanlon Gym Exterior Accessibility and Lighting Improvements Project. Two (2) bids were submitted prior to the April 12, 2023 deadline: Company Base Bid Bid Alternate #1 Bid Alternate #2 All American Concrete, Inc.$366,373.18 $14,074.40 $14,074.40 McComas-Lacina LC $394,502.40 $13,554.90 $30,704.70 Engineer's Estimate $305,000.00 $12,000.00 $39,000.00 Staff recommends awarding the contract to All American Concrete, Inc. of West Liberty, Iowa in the amount of $366,373.18, which includes the base bid only. Background / Analysis: The original pavement and exterior lighting at the entrance of Mercer Park Aquatic Center and Scanlon Gym were installed in 1988 and are near the end of their useful lifecycles. Additionally, there are deficiencies within the parking and drop-off areas and accessible routes that need to be brought into compliance with the Americans with Disabilities Act (ADA). This project will include signage and the replacement of a limited amount of existing driveway, parking, sidewalk and entrance pavement to bring the parking and accessible routes into compliance with the ADA. The ballasts for the original 1999 metal-halide exterior lighting fixtures are no longer available and will also be replaced with energy efficient LED lighting. Alternate 1 includes the sidewalk to the south of the site neighboring the parking lot and Alternate 2 includes all the sidewalk around the north and west portion to site. Project Timeline: Construction Start – May 2023 Final Completion – September 2023 Prepared by:Ben Clark,Engineering Division,410 E.Washington St.,Iowa City,IA 52240(319)356-5436 Resolution No. 23-118 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Mercer Park Aquatic Center & Scanlon Gym Exterior Accessibility and Lighting Improvements Project. Whereas, All American Concrete, Inc. of West Liberty, Iowa has submitted the lowest responsive, responsible bid of$366,373.18 for construction of the above-named project; and Whereas, funds for this project are available in the Recreation Center Improvements account #R4351. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The contract for the construction of the above-named project is hereby awarded to All American Concrete, Inc., subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 3. The City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above-named project. Passed and approved this 18th day of April , 20 23 yr Approved Attest : A) ' :L �'; City Clerk 2 City Attorn 's Office—04/13/2023 It was moved by Taylor and seconded by Dunn the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Prepared By:Rachel Kilburg, Asst. City Manager Sue Dulek, Asst. City Attorney Reviewed By:Geoff Fruin, City Manager Eric Goers, City Attorney Fiscal Impact:N/A Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution - SW Cafe Policy 2023 SW Cafe Policy - 2023 Item Number: 6.e. April 18, 2023 Resolution adopting a policy for use of public right-of-way and City Plaza for sidewalk cafes and rescinding Resolution No. 22-302. Executive Summary: The City Code provides the basic framework for regulating sidewalk cafes, and the details are set forth in a policy adopted by Council resolution. This agenda item adopts the attached Sidewalk Cafe Policy, which adds the following requirement to the Operation of Sidewalk Cafes: "10. The sidewalk café owner must contract with a commercial waste hauler for the collection of its solid waste, recyclables, and if used in its operation grease/cooking oil. The café owner must provide a copy of the contract to the City promptly upon request. The café owner ’s account with the waste hauler must remain in good standing with no past due balance. This requirement is effective June 1, 2023." Background / Analysis: Outdoor cafe and dining options contribute to a vibrant, pedestrian-oriented environment and are a highly desired service component for many business owners. This sidewalk cafe policy amendment enhances the cleanliness and safety of the downtown environment by ensuring appropriate management of commercial waste and providing an enforcement mechanism for the City. Prepared by Susan Dulek, First Ass't. City Attorney, 410 E.Washington St., Iowa City, IA(319)356-5030 Resolution No. 23-119 Resolution adopting a policy for use of public right-of-way and City Plaza for 'sidewalk cafes and rescinding Resolution No. 22-302. Whereas, sidewalk cafes are a use of public right-of-way and City Plaza, aka, the ped mall; and Whereas, in Resolution No. 22-302, City Council adopted a policy for sidewalk cafes; and Whereas, sidewalk cafés should be required to contract with a commercial waste hauler for the removal of solid waste and recyclables; and Whereas, the City should adopt the revised policy which is attached to this resolution. Now, therefore, be it resolved by the City Council of Iowa City, Iowa, that: . 1. The attached "Sidewalk Café Policy" is adopted. 2. Resolution No. 22-302 is rescinded. Passed and approved this 18th day of April 2023. ipr to '1 , Approved by: Attest: ,/ 0 i L Clerk City Attorney' Office (Sue Dulek-04/06/2023) Resolution No. 23-119 Page 7 It was moved by Taylor and seconded by Dunn The Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent X Alter X Bergus X Dunn X Harmsen X Taylor X Teague X Thomas SIDEWALK CAFE POLICY (adopted Res. No. 23-119) In addition to the policy set forth below, sidewalk cafes are governed by Section 10-3-3 of the City Code, which is set forth below at the end of the policy. Location 1. Sidewalk cafes may be located in the public right of way only in the CB-2, CB-5 and CB-10 zones (the downtown and the commercial areas directly north and south of the downtown) and in Riverfront Crossings. Sidewalk cafes may be located in other zones if the café owner does not hold an alcohol permit. 2. In City Plaza (a/k/a, the ped mall), cafes may be located in either zone 1 or zone 2 if in conjunction with zone 1. Zone 1 is the area within ten feet (10') of the buildings. Zone 3 is the emergency/service lane through the middle of City Plaza. Zone 2 is the remaining area. For the specific definitions of the zones in City Plaza, see Section 10-5-1 of the City Code. Easement Agreement 1. The agreement shall be between the City and the café owner with the approval of the owner of the retail space where the restaurant is located, if different than the café owner. 2. The agreement shall provide that no property right is conferred and that it may be terminated if the City determines that the right of way is needed. 3. The agreement shall include provisions for insurance, indemnification, fencing, maintenance, including vegetation and the subsurface if applicable, and any other reasonable provision as determined by the City Manager, or designee. 4. Except for Minor Cafes, the agreement shall include a stamped professional drawn schematic diagram that shows that the café, and platform if applicable, comply with this policy and the City Code. Except for cafes on City Plaza, the design shall include all existing streetscape amenities and utility features (such as valves and manholes) within eight feet (8') of the proposed café. 5. Except for cafes located on the street, the agreement shall be issued from February 1 through January 31. The initial agreement may be less than the one year, but shall expire on January 31. 6. The agreement shall be recorded at the café owner's expense. Operation of Sidewalk Cafes 1. Advertising shall not be permitted in the sidewalk cafe area except for the name of the establishment on chairs, tables, umbrellas or other amenities, as approved by the City. 2. No blockage of building entrances or exits is permitted in a sidewalk cafe area. 3. Additional restroom capacity may be required to comply with local building and housing codes. 4. Occupancy limits are determined as set forth in the City building code. 5. No additional parking is required for the operation of a sidewalk cafe. 6. Sidewalk cafes are subject to annual inspections and may be inspected at any other time at the City's discretion. 1 7. The sidewalk café owner is responsible for trash removal and shall maintain the area and surrounding six feet (6') in a clean and litter free manner during all hours of operation. 8. All sidewalk cafes must meet the accessibility standards of City, State, and federal law. 9. All outdoor heating units must be approved by the Fire Department. 10. The sidewalk café owner must contract with a commercial waste hauler for the collection of its solid waste, recyclables, and if used in its operation grease/cooking oil. The café owner must provide a copy of the contract to the City promptly upon request. The café owner's account with the waste hauler must remain in good standing with no past due balance. This requirement is effective June 1, 2023. Usable Sidewalk Cafe Area 1. In the CB-10 zone with the exception of City Plaza, a sidewalk cafe area may not extend onto the sidewalk in a manner that will not allow a minimum of eight feet (8') of unobstructed walkway on the side of the cafe that is parallel to the building. The eight-foot(8')unobstructed walkway does not apply to cafes located on the street. Cafes located on Washington Street, between Clinton Street and Linn Street, must be detached from the building face and there must be a minimum of eight feet(8') of unobstructed walkway between the building face and the side of the café. 2. In City Plaza, there must be a minimum of six feet (6') of unobstructed walkway between the side of the café and an elevated planter if the café abuts the building. If the café does not abut the building, the café may abut a planter if there is a minimum of six feet (6') of unobstructed walkway between the café and the building face and six feet (6') of walkway along any other side of the café opposite of the planter. 3. In all zones but the CB-10 zone and Riverfront Crossings District, the minimum of eight feet (8') of unobstructed sidewalk is not required if the existing sidewalk is less than eight feet(8') in width. If the sidewalk is less than eight feet (8') in width, a sidewalk cafe may not extend into or encompass in any manner the existing sidewalk and may not impede pedestrian traffic. 4. A sidewalk cafe area may not be located in the street corner area defined by building line extended to the street and no closer than ten feet (10') from an alley. However, a cafe may be located between two feet (2') and ten feet (10') from an alley if the fencing located within ten feet (10') is a type that is less than twenty percent (20%) solid. 5. A sidewalk café may not extend beyond the building line extended, except for those in a planter. 6. A sidewalk café serving alcohol shall be contiguous with a side of the building wherein the establishment is located. The contiguous requirement may be satisfied by a five foot (5') wide pathway connecting the building to the café. The pathway area shall be under the control of the establishment and is subject to the annual fee. 7. A café on the sidewalk that does not abut the building must be located a minimum of two feet (2') from the curb as measured by the City, except for unique circumstances (such as being adjacent to a street café) as determined solely by the City Manager or designee. Minor Cafes 1. A Minor Café is a café: a. Without an alcohol permit; and 2 b. With no more than two (2) bistro tables and no more than two (2) chairs per table. 2. A Minor Café may be located throughout the City. 3. The City Manager, or designee, will determine if the easement area is located flush with the building face or adjacent to the curb. 4. Fencing is not required nor is any other form of delineation. 5. The annual fee shall be a flat fee of$25. Public Amenities and Utilities 1. Except as provided herein, a sidewalk cafe shall not utilize or encompass any public amenities, including, but not limited to, benches, seats, tables, trash receptacles, public art, bike racks, water spigots, kiosks, posting pillars, and pergolas. The City Manager or designee may approve the utilization, encompassing, or relocation of a public amenity on the condition that the cafe owner pay all associated costs. 2. A sidewalk cafe may encompass trees, tree rings, light poles, water valves, manholes, and stormwater intakes but shall not interfere with their care, maintenance or operation. Access shall be available to the City for their care and maintenance. 3. Amenities, including trees, tree rings and light poles, shall be considered obstructions for purposes of the requirements of the eight foot (8') unobstructed walkway. 4. The amenities used in the sidewalk cafe area shall be maintained in good condition. 5. Upon payment of the electricity fee, the café owner may use the City's electrical outlet but only for lights. Fencing (For Cafes Not on the Street) 1. Except during the term of the initial easement agreement and from December 1 to February 28 thereafter and except as provided herein for cafes located on City Plaza and on Washington St., the area for a sidewalk cafe shall be delineated by anchored fencing. During the initial easement agreement and from December 1 to February 28, said area may be delineated by ropes or some other suitable method which shall be detectable by pedestrians who are visually impaired. Temporary fencing must be removed each evening. 2. Fencing shall be constructed of a durable material, such as steel, aluminum, or wrought iron. Wood fencing shall not be allowed. The City shall approve the design. 3. If stored outdoors, tables, chairs, and other items shall be secured within the approved fencing at the end of each day's operation so that they are unusable and shall not block or obstruct emergency exits. If ropes or some other suitable method is used, tables, chairs and other items shall be removed at the end of the day's operation, and the sidewalk cafe area shall be restored to its normal condition as a pedestrian way. 4. The café owner shall be responsible for any damages to the public right of way caused by the placement of any anchored fencing. 5. Planters with flowers and/or other vegetation are allowed as an alternative to temporary and fencing to delineate the sidewalk cafe. The design of the planters shall be approved by the City Manager, or designee, subject to the following limitations: 3 a. The planters shall, at the cafe owner's option, be either fastened to each other or removed from the sidewalk or City Plaza at the end of the day's operation along with the tables, chairs, and other items. b. The planters shall not be less than twenty-seven inches (27") or more than thirty-six inches (36") in height excluding plantings. c. The planters shall be either metal or have a metal frame. 6. Anchored fencing on a concrete platform or within a planter may remain year around. 7. Notwithstanding any other provision herein, anchored fencing is prohibited in City Plaza and on Washington Street, from Clinton Street to Linn Street. All fencing in those locations must be approved by the City Manager, or designee. All 4 (four) sides of the approved fence must be connected to one another to prevent movement of the fencing and said connection must be approved by the City Engineer or designee. 8. Fencing is not required for Minor Cafes. Platforms (For Cafes Not on the Street) 1. Sidewalk cafes may be located on a platform on top of a public sidewalk if the City Manager or designee determines there is excessive slope in the sidewalk and approves the design and if suitable access is provided for persons with disabilities. 2. With the approval of the City Manager or designee, a sidewalk café located within an elevated planter may extend beyond the parameters of the planter if the extension of the café is not greater than the sidewalk café area within the planter. All other requirements stated in this policy, such as clear walkways, must be met, however, the excessive slope requirement stated in Platforms (For Cafes Not on the Street) - Paragraph 1 would be waived. This platform may remain year around. 3. Sidewalk cafes may be located on a concrete platform in the right of way that is not a public sidewalk if the City Manager or designee approves the concrete design and if suitable access is provided for persons with disabilities. Fencing shall not be more than three feet (3') in height, measured from the plane on which the chair sits to the top of the railing, excluding finials. Planters 1. Sidewalk cafes currently in planters are allowed to continue to encompass or utilize the elevated planters. Similarly, if the restaurant operating the current sidewalk café closes and a new restaurant wishes to operate a sidewalk café in the same manner and in the same planter, the successor restaurant may continue to encompass or utilize the planter. However, no additional planters may be encompassed or utilized by a sidewalk café. The remaining policy on planters applies to existing sidewalk cafes and their successor restaurants, if any. 2. A sidewalk cafe may encompass or utilize an elevated planter if the proposed cafe meets the following criteria, as determined solely by the City: a. It does not interfere with pedestrian movement. b. It does not adversely affect drainage. c. It does not adversely affect public or city utilities. d. It does not adversely affect trees, shrubs or other plantings. 4 e. It enhances the appearance of the surrounding area, and if in City Plaza, it enhances the use of City Plaza. f. It does not interfere with the functionality of any other existing sidewalk cafe. g. It is not otherwise contrary to public interest. 3. If utilizing two planters, the area between the planters shall be included in the sidewalk cafe area but need not be delineated as such unless tables and chairs are present. 4. With the consent of the adjacent property owner and first floor tenants, if any, the café may extend beyond the building line extended if the distance between the planter and the building line extended is less than ten feet (10'). The café may extend beyond additional building lines extended with the consent of those property owners and first floor tenants, if any. 5. The cafe owner shall pay all costs associated with the cafe including, but not limited to, the cost to move water mains and water service lines, to remove and plant vegetation, to move electrical outlets, and to cut and restore the limestone. 6. The City may require the café owner to add plantings within the café area at the café owner's cost. 7. If a ramp is required in order to provide ADA accessibility to a café located within a planter, and it is determined by the City Manager or designee that ADA accessibility cannot be obtained by incorporating the ramp within the planter area, an accessibility ramp may be placed outside of the planter area in a manner approved by the City Manager or designee. Cafes on the Street 1. An establishment cannot operate a café in the street if there is sufficient room on the sidewalk for a café with an area of at least one-hundred twenty square feet (120 sq. ft.). 2. There shall be a minimum four feet (4') buffer on either end of the café for safety reasons. These buffers shall be established and maintained by the City and may be used for moped parking and/or bicycle parking. The buffer is subject to the annual fee. As used in this policy, the term sidewalk café area does not include the 4-foot buffer. 3. The sidewalk café area may not include the portion of the parking space beyond the building line extended. The 4-foot buffer may be located beyond the building line extended. 4. Cafes, including the 4-foot buffer, in each block face cannot utilize more than thirty percent (30%) of the total parking spaces in that block face. 5. Cafes cannot be located in loading zones. 6. Cafes cannot be set up before April 1 and shall be removed no later than the Tuesday following the last University of Iowa home football game. Cafes may have to be removed temporarily at the café owner's sole expense to accommodate an event on the street permitted by the City (e.g., criterium). 7. The portion of the café located on the street shall be on a platform. The design features of the platform shall be submitted with the application and the design shall be stamped by a professional engineer or architect. The platform shall not impede drainage in the street gutter. 8. The area for a sidewalk cafe shall be delineated by anchored fencing. Fencing shall be constructed of a durable material, such as steel, aluminum, or wrought iron. Wood fencing shall not be allowed. The City shall approve the design. 5 9. If stored outdoors, tables, chairs, and other items shall be secured within the anchored fencing at the end of each day's operation so that they are unusable. 10. The fee shall be a combination of the following four (4) fees: a) the annual square footage "right of way" fee for the portion of the café located on the sidewalk and the area satisfying the contiguous requirement; b) the annual square footage "platform" fee for portion of the café located on the street and any portion that is be located on the sidewalk; c) the daily fee for each parking space regardless of the amount of the parking space that the café utilizes; and d) bollard fee. 11. There is no guarantee that the City will continue to authorize cafes in the street. The café agreement will include a paragraph in substantial compliance with the following: Café owner further acknowledges and agrees that no property right is conferred by this agreement for the use of portions of the public right-of-way, that the City is not empowered to grant permanent or perpetual use of its right-of-way for private purposes, that the City may order said locations and/or uses within the right-of-way to cease and desist if, for any reason, the City determines that said right-of-way is needed for a public use and should be cleared of any and all obstructions, and that the café owner shall not be entitled to any compensation should the City elect to do so. The "30% limitation" limits the number of establishments that will be allowed to operate a café on the street, and cafes on the street will entail a substantial financial investment. To address these opposing concerns, a priority system and a lottery will be used. The City will provide information on the lottery and the priority system on its website. Lottery. The logistics and deadlines for the lottery are as follows: • February 1. In order to be eligible for the lottery, an application with a preliminary (does not have to be drawn by a professional) schematic diagram must be submitted by this date. Applications received after February 1st will be considered on a first come, first serve basis and will be denied if there is no available space. • February 15. If there are competing applications, staff will notify the applicants by this date whether they have been selected to enter into easement agreements. Competing applications mean when there are applications for more than 30% of the parking spaces within a block face. The City will conduct a lottery to select applicants. • March 15. The applicant must sign an easement agreement by this date, which is dependent upon staff approval of its schematic diagram (drawn by a professional) and payment of all fees (except the parking space fee that will not be known until the platform is installed). If an applicant does not meet the March 15 deadline, staff will notify the next applicant that it is eligible for a café on the street. • April 15. The next applicant must sign an easement agreement by this date. Note: If one of these dates falls on a weekend, the applicable deadline will be the following Monday. Priority. If a café owner enters into an easement agreement with the City, said café owner will have priority over subsequent applicants for a café within the same block face for the following two calendar years, assuming that the City continues to authorize cafes in the street (see Paragraph 12 above). The priority is to the individual business owner of said cafe and cannot be assigned or sold to another café owner. • Fees 1. Annual fee for sidewalk cafes located directly on the public right-of-way: $5.00 per square foot. 2. Annual fee for Minor Café: $25.00. 3. Annual fee for sidewalk cafes located on a structure/platform (including concrete platform) placed on the public right-of-way: $10.00 per square foot. 4. Annual fee for the area of the sidewalk cafe utilizing an elevated planter on the public right- of-way: $10.00 per square foot. The annual fee for the portion of a "planter" sidewalk cafe that is not located on the elevated planter: $5.00 per square foot. 5. Annual fee for a sidewalk café located on the street: $5.00 per square foot for the area located on the sidewalk plus $10.00 square foot for the area located on the platform on the street plus daily fee for each parking space as set forth in the City Code (presently, $20.00 per day) for every day the platform is on the street plus bollard fee. 6. Deposit for sidewalk cafes which place a structure/platform on the public right-of-way that remain on the right-of-way year-round, regardless of whether anchored fencing is used: $500.00. This deposit shall be refunded if the structure/platform is removed, and the right-of way is restored to its prior condition by the sidewalk café owner to the satisfaction of the City. 7. Deposit for sidewalk cafes which utilize an elevated planter or placement of a concrete platform in the public right-of-way that remain on the right-of-way year-round: $1,000.00. This deposit shall be refunded if the platform or concrete is removed, and the right-of-way is restored to its prior condition by the sidewalk café owner to the satisfaction of the City. 8. If the initial easement agreement is for less than one season, the fees listed in Paragraphs 1-4 above shall be prorated on a quarterly basis. 9. Electricity fee for using electrical outlet for lights for cafes in planters: $45 per year. 10. Bollard Fee: Actual cost of the bollards based on a five (5) year life cycle plus one (1) hour labor at the MWII pay grade to install, maintain, and remove the 4-foot buffer. If the platform is removed temporarily during the year, the labor fee is assessed again when the platform is reinstalled. A minimum of two (2) bollards will be required, and the City shall determine if additional bollards are needed. 11. Recording fee for the easement agreement: Actual fee charged by County Recorder. City Manager 1. The City Manager is authorized to approve any other provision or require any other restriction regarding the use of the public right of way by a sidewalk café that is not inconsistent with this policy or the City Code. 7 Section 10-3-3 of the City Code A. Except as provided herein, sidewalk cafes are permitted in the public right of way only in the (CB-2, CB-5 and CB-10 zones) and in the Riverfront Crossings District. Sidewalk cafes are permitted in other zones if the restaurant does not hold an alcohol license. In said other zones, the City Manager, or designee, may limit the hours of operation to fewer than those allowed herein and impose limitations on the operation of the sidewalk cafe which are more restrictive than the policy adopted by Council resolution. B. No person shall operate a sidewalk café without executing an easement agreement. C. Each sidewalk café applicant shall file an application for an easement agreement with the Public Works Department, on forms provided by the City. D. The City Manager, or designee, shall-either grant or deny the application within thirty (30) days of the application being filed. If the application is granted, the City Manager, or designee, is authorized to enter into a public right of way easement agreement. If the application is denied, the applicant may appeal to the City Council by filing a written appeal with the City Council, and the appeals process shall be the same as provided for mobile vendors in this chapter. The City retains the right to limit the number of sidewalk cafes. E. After execution of an easement agreement, the City Manager, or designee, shall retain the right to terminate the easement agreement but only after written notice of violation has been given and the time to cure the violation has expired. Grounds for termination of the easement agreement shall include, but not be limited to, repeated violations of the state and liquor control laws, violations of the easement agreement, and creating a safety hazard, health hazard and/or public nuisance under state or local law. Additionally, the City Manager, or designee, retains the right to terminate the easement agreement and direct removal of sidewalk cafe operations if there is a substantial and reasonable need for use of the public right of way for a valid public purpose. The cafe owner has the right to appeal a decision to terminate the agreement to the City Council. The appeals process shall be the same as provided for mobile vendors in this chapter. F. The easement agreement, at a minimum, shall require the café operator to provide a certificate of insurance satisfactory to the City, and shall agree to hold the City harmless against any and all liability arising from or relating to the operation of the sidewalk cafe or the location of the cafe on the public right of way including, but not limited to, all claims arising from occurrences or accidents within the sidewalk cafe area, including the walkway through a café. G. Sidewalk cafes shall operate only between the hours of seven o'clock (7:00) A.M. and twelve o'clock (12:00) midnight. H. Food and beverages must be available for service to patrons in a sidewalk cafe during all hours of operation. Sidewalk cafes shall not operate when the restaurant kitchen is closed. I. A sidewalk cafe serving alcoholic beverages shall have an employee monitoring the area at all times during the hours alcohol is consumed and shall dispense any alcoholic beverage under state and local law J. Amplified sound equipment shall not be permitted. K. The operation of any sidewalk cafe shall be in conformity with all applicable federal, state, and local laws and regulations. M. All fees for the operation of a sidewalk café shall be set by resolution. 8 N. The City Manager is authorized to establish administrative rules not inconsistent with any ordinance or policy adopted by the City Council. A copy of the policy and rules shall be on file with the City Clerk and available of the City website. 9 Prepared By:Dan Striegel, Equipment Superintendent Reviewed By:Jen Jordan, Resource Management Superintendent Ron Knoche, Director of Public Works Geoff Fruin, City Manager Fiscal Impact:$314,705.20.00; funds are available in accounts 81710520 and 74740140 Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Item Number: 6.f. April 18, 2023 Resolution authorizing the procurement of one (1) recycling collection truck. Executive Summary: At the April 18, 2023 City Council meeting, consideration will be given to a resolution authorizing the procurement of one (1) new recycling collection truck for Solid Waste operations. The truck will include a Labrie 24 cubic yard body package with dual cart tippers mounted on a Freightliner M2106 chassis. Sourcewell Cooperative contract 091219-LEG will be utilized for the procurement of the turn- key recycling truck from Kilburg Equipment in Sabula, IA. The price of the complete truck with contract discount is $314,705.20 as per Labrie/Sourcewell quote 1280 / 2 dated April 4, 2023. Funding for this purchase is available in accounts 81710520 and 74740140. Background / Analysis: The Solid Waste Division has five trucks dedicated to recycling collection and one of these trucks is scheduled for replacement in early fiscal year 2025. The current truck, #555, was designed for recycling collection when the smaller recycling bins were used and is no longer functionally efficient since the recycling operation has transitioned to a cart collection process. The new truck will be the same style and design as the other four recycling collection trucks in the fleet. Solid Waste has budgeted for the cost difference to upgrade to the dual cart tipper style truck. At the present time, if a chassis is ordered in May 2023, the projected build date would be the 2nd or 3rd quarter of 2024. With the additional lead time required for the body installation, the new truck would not be received until late 2024 (fiscal year 2025). e Prepared by: Dan Striegel, Equipment Superintendent, 1200 S. Riverside Drive, Iowa City, IA 52246(319)356-5197 Resolution No. 23-120 Resolution authorizing the procurement of one (1) new recycling collection truck. Whereas, one recycling collection truck in Solid Waste Operations is scheduled for replacement in fiscal year 2025; and Whereas, Sourcewell cooperative contract 091219-LEG will be utilized for the procurement of the recycling collection truck; and Whereas, the total purchase price of the truck is $314,705.20; and Whereas,the amount exceeds the City Manager's spending authority of$150,000.00,thus requiring City Council approval; and Whereas, funds for this purchase are available in accounts 81710520 and 74740140; and Whereas, approval of this procurement is in the public interest. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The proposed procurement as described above is approved. 2. The City Manager is authorized to take the steps necessary to effectuate the purchase and approve any change orders that may develop during the manufacturing process. Passed and approved this 18th day of Apr;1 , 2023. rai - you411, Approved by Attest: 1.-4L_L-e ) _ City Clerk I City Attorney' ffice (Liz Craig -04/13/2023) Resolution No. 23-120 Page 2 It was moved by Taylor and seconded by Dunn The Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent X Alter X Bergus X Dunn X Harmsen X Taylor X Teague X Thomas Attachments:Staff Report - Riverfront West Final Plat.pdf FINAL PLAT 3-27-23_v4.pdf Final Plat - Resolution.doc Item Number: 6.g. April 18, 2023 Resolution Approving Final Plat of Riverfront West First Addition Subdivision Iowa City, Iowa. (SUB22-0014) STAFF REPORT To: City Council Prepared by: Anne Russett, Senior Planner Item: SUB22-0014 Date: April 18, 2023 Riverfront West First Addition Final Plat GENERAL INFORMATION: Applicant/Owners: Scannell Properties #636, LLC 8801 River Crossing Blvd #300 Indianapolis, IN 46240 513 Riverside, LLC 13 Woodcrest Ln NE Iowa City IA 52240 Contact Person: Nick Hatz Shive-Hattery Architecture-Engineering 222 Third Ave SE Unit 300 Cedar Rapids, IA 52401 nhatz@shive-hattery.com Shawn Hitchcock Scannell Properties 317-218-1670 shawnh@scannellproperties.com Requested Action: Approval of final plat Purpose: Creation of one lot and one outlot Location: Southwest corner of S. Riverside Drive & Myrtle Avenue Location Map: Size: Approximately 4.5 acres Existing Land Use and Zoning: Residential; Riverfront Crossings – West Riverfront (RFC-WR) 2 Surrounding Land Use and Zoning: North: Institutional (Open Space & Parking) Institutional Public (P-2) East: Residential & Commercial, Riverfront Crossings, West Riverfront (RFC-WR) & Community Commercial (CC-2) South: Iowa Interstate Railroad & Residential; Riverfront Crossings, West Riverfront (RFC-WR), Riverfront Crossings, Orchard (RFC-O), and Low Density Single-Family Residential with Planned Development Overlay (OPD/RS-5) West: Residential; Medium Density Single-Family Residential (RS-8) Comprehensive Plan: Residential 2-8 Dwelling Units Per Acre, Residential 8-16 Dwelling Units Per Acre, & Mixed Use District Plan: Southwest District Plan: Single-Family/Duplex Residential, Medium to High Density Multi-Family, & Mixed Use; Downtown & Riverfront Crossings Master Plan, West Riverfront. Neighborhood Open Space District: SW3 File Date: 10/07/2022 60 Day Limitation Period: Applicant waived the 60-day limitation period BACKGROUND INFORMATION: Scannell Properties is looking to redevelop an approximately 4.51-acre site at the southwest corner of S. Riverside Drive and Myrtle Avenue. The final plat application submitted for Riverfront West First Addition shows the 4.51-acre site with one 3.91-acre lot and a 0.60 acre outlot for the purpose of vehicular access. On May 15, 2018, the City Council approved a rezoning (REZ17-00005) for the corner lot (currently addressed as 513 S. Riverside Drive) to Riverfront Crossings – West Riverfront (RFC- WR). The rezoning included the following conditions: 1. Prior to issuance of any permit for any improvements to the subject property or coincident with the City’s street improvement project, whichever occurs first, land shall be dedicated to the City along Riverside Drive to improve conditions along the street necessary for the increase in pedestrians and bicyclists anticipated with the rezoning according to the goals and objectives of the Riverfront Crossings Master Plan. The ROW dedication shall result in a minimum 20’ wide pedestrian area between the new front property line and the street curb along the Riverside Drive frontage, including at the corner of Riverside Drive and Myrtle Ave; 2. Prior to issuance of any permit for any improvement to the subject property or coincident with the City’s street improvement project, whichever occurs first, the two driveways closest to the intersection of Riverside Drive and Myrtle Avenue shall be closed and the area subsequently restored and improved for pedestrian use. In addition, prior to issuance of any permit for any improvements to the subject property or coincident with the City’s street improvement project, whichever occurs first, the southern most driveway on the Riverside Drive frontage shall be evaluated according to the City’s access management 3 standards as set forth in Article 14-5C of the City Code of Iowa City, with the City reserving the right to close or move driveway access point or reduce to a single directional drive (such as right-in/right-out only), in compliance with said standards; 3. Owner shall satisfy the affordable housing obligations imposed pursuant to Iowa City Code of Ordinance 14-2G-8 through the provision of on-site owner-occupied units, on-site rental dwelling units, and/or the payment of a fee in lieu of the remaining dwelling units not provided on-site or as otherwise agreed to between Owner and the City in an affordable housing agreement entered into prior to issuance of a building permit for development of any portion of the above-described property. More recently, on December 1, 2020, the City Council approved an amendment to the Downtown and Riverfront Crossings Master Plan (CPA20-0002) to expand the Riverfront West District by incorporating several additional parcels along Myrtle Ave and S. Riverside Drive. On December 15, 2020, the City Council approved a rezoning (REZ20-0003) for approximately 4 acres of the property to RFC-WR. The rezoning included the following conditions: 1. Prior to issuance of a certificate of occupancy for any development on the subject property, Owner shall install a 6’ wide sidewalk along the length of the property abutting S. Riverside Drive. 2. Any development shall include a pedestrian link between Myrtle Avenue and S. Riverside Drive through the project site, subject to review and approval of the Form-Based Code Committee. 3. In the event that the owner pursues any height bonus for the buildings proposed next to the single-family zone to the west, the development shall be designed in a manner that gives careful attention to the interface and transition between the development and the single- family zone to the west. Any such application shall include mitigating transitional design elements, including but not limited to increased separation or increased stepbacks. 4. The subject area shall be limited to one vehicular access point onto S. Riverside Drive that shall feature a right-in/right-out design. 5. Prior to the issuance of any building permits, the subject area shall be replatted in a manner that conforms with the layout of the proposed development, which plat shall include the dedication of right-of-way within the current S. Riverside Court to create a consistent right- of-way line along S. Riverside Drive. Also, on December 15, 2020, the City Council approved a zoning code text amendment (REZ20- 0004), which amended the West Riverfront subdistrict regulating plan map and increased the maximum bonus height from 5 to 7 stories along the north side of the Iowa Interstate Railroad. Additionally, the City Council recently approved a vacation of right-of-way (VAC22-0002) for approximately 529 square feet along S. Riverside Drive. The vacation was requested by the owner to increase the redevelopment area for the proposed project. Staff is also currently reviewing the Form-Based Code plans, site plan, and building permit applications. ANALYSIS: The final plat of Riverfront West First Addition is in general compliance with the subdivision regulations. Legal papers and construction drawings are currently being reviewed by staff. It is anticipated that these documents will be approved prior to the April 18, 2023 City Council meeting. Neighborhood Open Space: According to section 14-5K of the City code, dedication of public open space or fee in lieu of land dedication is addressed at the time of final platting for residential subdivisions. The City’s Neighborhood Open Space Ordinance requires the dedication of 0.05 acres of property or the payment of a fee in lieu. For this application a fee in-lieu would be 4 appropriate. This payment of a fee in lieu is addressed in the legal papers. SUMMARY: As conditions of the rezoning, the owner is required to dedicate public right-of-way along S. Riverside Drive, which is incorporated into the plat. All other conditions will be addressed as part of Form-Based Code review, site plan review, and building permits. NEXT STEPS: Upon review and approval of the final plat by the City Council, the applicant can continue to work with staff on obtaining the required administrative approvals. STAFF RECOMMENDATION: Staff recommends approval of SUB22-0014, an application submitted for a Final Plat for Riverfront West First Addition, a 4.51-acre subdivision containing one residential lot and one outlot. ATTACHMENTS: 1. Location Map Approved by: _________________________________________________________ Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services Green w o o d Dr Michael StOrchard StMyrtle Ave W Prentiss St MyrtleAve S Riverside DrOakParkCtGiblin DrRiverside Ct Orchard Ct S Riverside CtOlive StCC2 CC2 P2 P2 RFC-O RFC-WR RFC-WR RS5 RS5 RS8 RS8 An application located south of Myrtle Ave and west of Riverside Dr. for a Final Plat to consolidate multiple lots into one lot to facilitate redevelopment of the site for New 6-level multi-family housing containing approx. 291 units (648 beds) and structured parking. µSUB22-0014 S Riverside Final Plat Prepared By: Emani Brinkman Date Prepared: March 2023 0 0.04 0.070.02 Miles �` II I I II II I I I II III I I III I II II II Ifl II II Doc ID: 032078750034 Type: GEN Kind: SUBDIVISION Recorded: 05/08/2023 at 11:46:12 AM Fee Amt: $172.00 Page 1 of 34��1 P Johnson County Iowa Kim Painter County Recorder COSMAWO BK6476PG855-888 4 CITY OF IOWA CITY 410 East Washington StFcct Iowa City, lona 52240-1826 (3 19) 356-5000 STATE OF IOWA ) (3 1 9) 3 S6-5009 FAX SS eww.icgov.oFg JOHNSON COUNTY ) m I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 23-121, which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 1 Sth day of April 2023, all as the same appears of record in my office. Also attached are the final legal documents for Riverfront West First Addition Subdivision, Iowa City, Iowa. + 1 l Dated at Iowa City, Iowa, thisday of 1�1 , 2023. Kellie K. Fruehling City Clerk \res subdivision Prepared by: Anne Russett, Senior Planner, 410 E. Washington St., Iowa City, IA 52240 (SUB22-0014) Resolution No. 23-121 Resolution Approving Final Plat of Riverfront West First Addition Subdivision Iowa City, Iowa. (SUB22-0014) Whereas, the owners, Scannell Properties #636, LLC and 513 Riverside, LLC, filed with the City Clerk the final plat of Riverfront West First Addition Subdivision, Iowa City, Iowa, Johnson County, Iowa; and Whereas, said subdivision is located on the following -described real estate in Iowa City, Johnson County, Iowa, to wit: Part of Lot 1 and Part of Lot 2 of a survey in Lot 3, Section 16, T79N, R6W of the 5th P.M., Johnson County, Iowa, described as follows: Beginning at the Northeast Corner of Lot 2, Myrtle Ridge Subdivision Iowa City, Iowa; Thence S 89°06'50" E along the South Right of Way of Myrtle Avenue to the West Right of Way of Riverside Drive a distance of 428.93 feet; Thence S 07°11 '38" E along said West Right of Way a distance of 100.95 feet; Thence S 08°31'18" E along said West Right of Way a distance of 160.08 feet; Thence N 89055'42" E along said West Right of Way a distance of 11.81 feet; Thence Southerly along said West Right of Way a distance of 25.09 feet along the arc of a 3,784.00 foot radius curve concaved Westerly (Chord bears S 06011 '29" E a distance of 25.09 feet); Thence S 89°55'14" W along said West Right of Way a distance of 12.04 feet; Thence Southerly along said West Right of Way to the North Right of Way of the Iowa Interstate Railroad a distance of 77.37 feet along the arc of a 3,772.00 foot radius curve concaved Westerly (Chord bears S 04014'20" E a distance of 77.37 feet); Thence Southwesterly along said North Right of Way a distance of 194.25 feet along the arc of a 9,363.36 foot radius curve concaved Northwesterly (Chord bears S 73050'03" W a distance of 194.24 feet); Thence S 75036'39" W along said North Right of Way a distance of 79.67 feet; Thence Southwesterly along said North Right of Way a distance of 220.21 feet along the arc of a 2000.00 foot radius curve concaved Northwesterly (Chord bears S 80013'07" W a distance of 220.10 feet); Thence N 00055'24" E along the West line of Lot 1 and Lot 2 of a survey in Lot 3, Section 16, T79N, R6W of the 5th P.M., Johnson County, Iowa to said Northeast Corner of Lot 2 and the Point of Beginning a distance of 478.59 feet. Said parcel contains 4.51 acres subject to easements and restrictions of record. Whereas, the Neighborhood and Development Services Department and the Public Works Department examined the proposed final plat and subdivision, and recommended approval; and Whereas, a dedication has been made to the public, and the subdivision has been made with the free consent and in accordance with the desires of the owners and proprietors; and Whereas, said final plat and subdivision are found to conform with Chapter 354, Code of Iowa (2022) and all other state and local requirements. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: The said final plat and subdivision located on the above-described real estate be and the same are hereby approved. Resolution No. _23_—_ 121 Page 2 2- The City accepts the dedication of the streets and easements as provided by law and specifically sets aside portions of the dedicated land, namely streets, as not being open for public access at the time of recording for public safety reasons. The City shall accept the public improvements and open them for public access upon satisfaction of the terms and conditions stated in the Subdivider's Agreement. 3. The Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed, upon approval by the City Attorney, to execute all legal documents relating to said subdivision, and to certify a copy of this resolution, which shall be affixed to the final plat after passage and approval by law. The City Clerk shall record the legal documents and the plat at the office of the County Recorder of Johnson County, Iowa at the expense of the owner/subdivider. Passed and approved this - 18th _ day of April _ , 2023. May Approved by Attest: t_. }Cr—_ Ci Clerk City Attor y's Office vj (Sara Hektoen — 04/12/2023) It was moved by Taylor adopted, and upon roll call there were: Ayes: X pcd/templates/Final_Plat_ _Resolution (7).doc.doc and seconded by Dunn Nays: the Resolution be Absent: Alter Bergus Dunn Harmsen Taylor _ Teague Thomas Staff Recommendation:Approval Attachments:Staff Report w Attachments PZ 4.5.23 minutes.docx Planning and Zoning Commission Correspondence City Council correspondence 4/18 - Ann Zerkel.pdf Item Number: 7.a. April 18, 2023 Motion setting a public hearing for May 2, 2023 on an ordinance rezoning approximately 10.26 acres from Low Density Multi-Family Residential with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 for the purpose of amending the approved Planned Development Overlay Plan and Sensitive Areas Development Plan (REZ23-0003). STAFF REPORT To: Planning and Zoning Commission Item: REZ23-0003 Prepared by: Emani Brinkman, Planning Intern and Parker Walsh, Associate Planner Date: April 5, 2023 GENERAL INFORMATION: Applicant/Owner: Christian Retirement Services, Inc. 1 Oaknoll CT Iowa City, IA 52246 Contact Person: Brian Boelk Axiom Consultants, LLC bboelk@axiom-con.com Steve Roe Oaknoll sroe@oaknoll.com Requested Action: Rezoning Purpose: Rezoning of approximately 10.26 acres of property from Low Density Multi-Family with a Planned Development Overlay (OPD/RM-12) to Low Density Multi-Family with a Planned Development Overlay (OPD/RM-12) Location: 2640 N Scott Blvd Location Map: Size: 10.26 acres Existing Land Use and Zoning: Low Density Multi-Family with a Planned Development Overlay (OPD/RM-12) Surrounding Land Use and Zoning: North: Low Density Single-Family Residential Zone (RS-5); Low Density Single-Family Residential Zone with a Planned Development Overlay (OPD/RS-5); Office Research Park (ORP) South: Low Density Single-Family 2 Residential Zone with a Planned Development Overlay (OPD/RS-5); Interim development single-family residential (ID-RS) East: Office Research Park (ORP) West: Interim development research park (ID-RP) Comprehensive Plan: Office Research Development Center & Public/Private Open Space District Plan: Northeast District Plan – office park with residential as a potential alternative use. Neighborhood Open Space District: C8 Public Meeting Notification: Properties with 500’ of the subject property received notification of the Planning and Zoning Commission public meeting. A rezoning sign was posted on the property. File Date: February 28,2023 45 Day Limitation Period: April 14, 2023 BACKGROUND INFORMATION: The applicant, Christian Retirement Services Inc., has requested a rezoning of 10.26 acres from Low Density Multi-Family with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 for the purpose of amending the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. Per 14-8D-7E or the City Code, substantial changes to an approved OPD or SADP may not be approved administratively and must be submitted as an amendment to be reviewed by the Planning and Zoning Commission and City Council. The proposed development adds an additional multi-family building that contains 16 one bedroom units to what was previously approved, as well as impacts additional sensitive areas. The property currently contains three multi-family buildings and 60 senior living units known as Oaknoll East Campus. The property was rezoned in March 2017, Lot 1 of Larson Subdivision to the north to Low Density Single Family Residential (RS-5) and the subject property, Lot 2, to Low Density Multi Family Residential (RM-12). During the review of the preliminary plat it was determined that the development would impact sensitive areas triggering a Planned Development Overlay (OPD) rezoning. Specifically, the construction of the storm water management facility would impact protected slope buffers. In May 2017 a rezoning was approved to OPD/RS-5 and OPD/RM-12 to allow the impacts to protected slope buffers to accommodate storm water management. The preliminary plat, final plat, and preliminary OPD and SADP were also approved in 2017 for 60 units. The applicant held a Good Neighbor Meeting on March 23, 2023. A summary of the meeting is included in Attachment 4. ANALYSIS: Current Zoning: The subject property is currently zoned Low-Density Multi-Family Residential Zone with a Planned 3 Development Overlay (OPD/RM-12). The purpose of OPD/RM-12 is to provide for the development of high density, single-family housing and low density, multi-family housing. This zone is intended to provide a variety of housing options in neighborhoods throughout the city. Careful attention to site and building design is important to ensure that the various housing types in any one location are compatible with one another. Due to impacts to the sensitive areas, a Planned Development Overlay is required. The OPD process allows for a mixture of uses, provided that additional criteria in section 14-3A-4 and 14-3A-5 of the City Code are met. Proposed Zoning: Through the rezoning the designation will remain the same and is intended to amend the previously approved OPD and SADP due to a proposed substantial change. As previously mentioned, the substantial change is the proposal of a new 16 one bedroom unit multi-family building bringing the total number of dwelling units from 60 to 76. The proposal also further impacts sensitive features. General Planned Development Approval Criteria: Applications for Planned Development rezonings are reviewed for compliance with the following standards according to Article 14-3A of the Iowa City Zoning Code. 1. The density and design of the Planned Development will be compatible with and/or complementary to adjacent development in terms of land use, building mass and scale, relative amount of open space, traffic circulation and general layout. Density – The applicant is requesting a rezoning to OPD/RM-12, which allows a density of 15 dwelling units per acre of net land (total land minus street rights-of-way). The proposed development would provide 16 additional units to the existing 60 units, for a total of 76 senior living dwelling units. The maximum units that could be provided on the property is 153, meaning an acceptable 7.4 dwelling units per acre is proposed. Land Uses Proposed – The applicant is proposing 16 one bedroom multi-family residential units, which are intended to be occupied by seniors. To the north of the property is land recently acquired by the Iowa City Community School District (formally owned by ACT). The land to the south is currently undeveloped and recently dedicated to the City for the expansion of Hickory Hill Park. Further south off of N 1st Avenue a new senior living facility is currently under construction. Staff determined that the proposed development would be compatible with the existing land uses in the surrounding area. Mass, Scale, and General Layout – The proposed development is located on the western property line off the existing drive. Parking for the proposed development will be provided off the existing drive. Much of the existing parking is within the multi-family buildings, except for a parking area on the northern end of the property. Although the maximum height requirement in an RM-12 zone is 35’, and the existing buildings do not exceed that, the scale of the proposed development will appear shorter in height due to there being an approximate 13’ difference in elevation from the development site and the existing buildings. Additionally, the new building will be setback a minimum of 40’ from Scott Blvd. The proposed development shows all multi-family dimension requirements of the RM-12 zone being met, as well as remains consistent in mass, scale, and general layout with existing development. Open Space – The current development contains an interior courtyard with amenities such as a dog park, walkways, and outdoor deck space, providing 63,600 square feet of open space and satisfying the minimum 1,300 square foot requirement. 4 Traffic Circulation – No traffic circulation or access changes are proposed for the new development. The property will remain to be accessed from Scott Blvd. via a private interior drive. The proposed development would include additional parking spaces along the existing drive for building access. 2. The development will not overburden existing streets or utilties. The proposed development will be serviced by existing City water, storm sewer, and sanitary sewer already provided to this site for existing development. Due to the private, low volume nature of the subject property, development is not anticipated to overburden Scott Blvd., internal private circulation, or utilties. 3. The development will not adversely affect views, light and air, property values and privacy of neighboring properties any more than would conventional development. Most of the land around the proposed development remains undeveloped. The closet neighbor is the Iowa City Community School District who recently purchased the building to the north. Due to the lack of development within the surrounding area, natural buffer of woodlands, and proposed development generally at a lower elevation than existing development, staff finds that the proposed development will not impact neighboring properties any more than a conventional development. 4. The combination of land uses and building types and any variation from the underlying zoning requirements or from City street standards will be in the public interest, in harmony with the purpose of this Title, and with other building regulations of the City. The proposed development would remain consistent with the existing senior living development on the subject property and the future senior living development south of Scott Blvd. The applicant is not requesting any variations from zoning standards to be reviewed as part of the OPD rezoning. Rezoning Review Criteria: Staff uses the following two criteria in the review of rezonings: 1. Consistency with the comprehensive plan; 2. Compatibility with the existing neighborhood character. Compliance with Comprehensive Plan: The Northeast District Plan map shows the area north of Scott Boulevard, including this property, as being appropriate for Office Research Park development and Public/Private Open Space. This designation was put in place in 1999 to acknowledge ACT’s headquarters in the area, and to encourage development compatible with the ACT office campus. The text of the Plan notes that the amount of land designated for office development may be unrealistic and that alternative uses including residential should be considered for this area. The text of the Plan also encourages a diversity of housing. Townhouse and small apartment buildings are proposed at the edges of neighborhoods, where slightly higher density housing can take advantage of being located near major arterial streets, such as First Avenue and Scott Boulevard. The Plan notes that where density increases, the design of both the streetscape and structures should receive careful review to ensure compatibility in terms of appearance and scale. The Comprehensive Plan guidelines should be used to address issues, such as orientation of structures and parking to the street, building mass and articulation, the location of garages and driveways and the use of landscape buffers (Northeast District Plan – page 17). 5 Staff finds the proposed development in this location conforms to the policies of the Comprehensive Plan, including the Northeast District Plan. The development will further integrate housing diversity, remain of a similar appearance to existing development on the subject property, while also appearing smaller in scale due to site topography. The proposed development will also remain separated from neighboring residential and property owners through woodlands that act as a natural buffer from the denser multi-family use. Compatibility with Existing Neighborhood Character: Staff has determined that the proposal is compatible with the neighborhood in terms of land use. The area to the north contains the Iowa City Community School District and to the east is ACT Campus. The ravine and woodland provides a significant buffer between the proposed residential buildings and ACT. The property to the south was recently dedicated to the City for the expansion of Hickory Hill Park. Further south a senior living facility is currently under construction. The properties to the west and east both contain wooded ravines with protected slopes. The proposed building will be of similar character to the existing buildings on the subject property. Environmentally Sensitive Areas: The subject property contains regulated slopes and woodlands. Although additional impacts to sensitive areas are proposed, they will not be impacted beyond a Level 1 Sensitive Areas Review, which requires administrative approval. Table 1 below outlines the sensitive areas and total combined impacts of the 2017 project and the current proposal. Table 1: Summary of Regulated Sensitive Features Sensitive Area Total Site Impacts Area (SF) Impacts (2017 & Current Project) Percent Impacted Protected Slopes: 34,190 8,250 24.1 Critical 84,525 7,330 8.7 Steep 43,524 12,007 27.6 Woodlands 225,601 133,733 59.2 As part of the 2017 development a protected slope buffer reduction of 8,250 square feet was requested to accommodate the installation of stormwater management infrastructure. No additional impacts to protected slope buffers is anticipated as part of the proposed development. The proposed development will further impact woodlands and critical slopes. In total, the development will impact 8.7% of critical slope, which is below the allowable 35% threshold that would otherwise require Level II Sensitive Areas review by the Planning and Zoning Commission and City Council. Lastly, the woodlands impacted is below the 80% allowable impact threshold in an RM-12 zone at 59.2%. Approximately 100,695 square feet of trees will be impacted due to existing and proposed development, including an additional 33,038 square feet of woodland buffers. Since trees within this buffer area may be prone to damage during construction, they may not be included when calculating the required retention area. Neighborhood Open Space: According to section 14-5K of the City code, dedication of public open space or fee in lieu of land dedication is addressed at the time of final platting for residential subdivisions, commercial subdivisions containing residential uses, and planned developments. The neighborhood open space requirement was satisfied through the payment of a fee in lieu of dedicating 18,731 square feet of open space during the subdivision approval. Proposed development will not require any further land dedication. Storm Water Management: Additional storm water management is being incorporated due to the additional impervious area and the detention will be located to the southwest of the proposed building. Public Works has reviewed and approved the Preliminary OPD and SADP. 6 NEXT STEPS: Upon recommendation from the Planning and Zoning Commission, a public hearing will be scheduled for consideration by the City Council. STAFF RECOMMENDATION: Staff recommends approval of REZ23-0003, an application for a rezoning of approximately 10.26 acres of land from Low Density Multi-Family Zone with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 in order to amend the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. ATTACHMENTS: 1. Location Map 2. Rezoning Exhibit 3. Preliminary OPD & SADP 4. Good Neighbor Meeting Summary 5. Applicant Statement Approved by: _________________________________________________ Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services ACTPlN Dubuque Rd ACT D r Hickory H e igh ts L n N 1stAve N Scott Blvd An application submitted by Christian Retirement Services Inc. for approval of a rezoning of approximately 10.26 acres of property located at 2640 N Scott Blvd. from Low Density Multi-Family Residential (OPD/RM-12) to (OPD/RM-12). The applicant is proposing to construct an additional building to the existing Oaknoll East Campus, adding 16 resident units. µREZ23-0003 Oaknoll East Prepared By: Emani Brinkman Date Prepared: March 2023 0 0.06 0.110.03 Miles Attachment 1 0 75 150 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 22, 2023 - 1:48pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Plats\220189 - Rezoning Exhibit.dwg PROJECT NO.:DESIGN PROFESSIONAL:1 OF 1 OPNREZONING EXHIBITOAKNOLL EASTIOWA CITY, IOWA, 52245EXHIBIT22-0189 STREITZ ZONING INFORMATION: CURRENT ZONING: LOW DENSITY MULTI-FAMILY RESIDENTIAL (OPD/RM-12) PROPOSED ZONING: PLANNED DEVELOPMENT OVERLAY (OPD/RM-12) REZONING EXHIBIT OAKNOLL EAST IOWA CITY, IOWA PROJECT LOCATION MAP: (NOT TO SCALE) PROJECT LOCATION LEGAL DESCRIPTION: APPLICANT INFORMATION: PREPARED BY: AXIOM CONSULTANTS, LLC C/O BRIAN BOELK 60 E. COURT STREET, UNIT 3 IOWA CITY, IOWA 52240 319-519-6220 BBOELK@AXIOM-CON.COM AMENDED AUDITOR'S PARCEL 1002403060. AS RECORDED IN PLAT BOOK 52 PAGE 144. DESCRIBED AREA CONTAINS 10.26 ACRES AND IS SUBJECT TO EASEMENTS AND OTHER RESTRICTIONS OF RECORD. APPLICANT/OWNER: CHRISTIAN RETIREMENT SERVICES, INC C/O STEVE ROE 1 OAKNOLL COURT IOWA CITY, IA 52246-5250 319-466-3006 ACT INC ZONING : I D - R P ACT IN C ZONING : I D - R P ACT INC ZONING : I D - R P ACT IN C ZONING : O R P ACT INC ZONING : I D - R S ACT INC ZONING : R D P ACT INCZONING: RS5NELSON D E V E L O P M E N T 1 , L L C ZONING : R S 5 ACT INC ZONING : I D - R S ACT INC ZONING : I D - R P ACT IN C ZONING : R R 1 CRAWL E Y , K E VI N ZONING : R R 1 CI T Y O F I O W A C I T Y Z O N I N G : P 1 GUERR E R O , V L A D I M I R ZONING : R R 1 G R E E N S T A T E C R E D I T U N I O N Z O N I N G : C O 1 ACT INC ZONING : I D - R P ACT IN C ZONING : I D - R P SUSAN N & G A R Y H A M D O R F ZONING : I D - R S CITY OF I O W A C I T Y ZONING : P 1 MAR Y & A N D R E W H A R T W I G ZONI N G : R S 5 HANI C K J O I N T REV O C A B L E T R U S T ZONI N G : R S 5 MARK REN S H A W ZONING: R S 5 K. & M. ME S S I N G H A M ZONING: R S 5 KRISTEN & R A M I BOUTROS ZONING: R S 5 ROSEMAR Y & M I C H A E L MORRIS ZONING: R S 5 ELIZABETH T R A C Y & ROBERT B E C K ZONING: R S 5 LISA & B E R N A R D DUT C H I K ZONI N G : R S 5 MAR K R E N S H A W ZONI N G : R S 5 N A T H A N V A N D E RWE I D E Z O N I N G : R S 5 LINDA BOWTONZONING : RS5 N SCOTT BLV D HICKORY HEIGHTS LNN 1ST AVEN DUBUQUE RD N DO D GE ST Attachment 2 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Sheets\220189 - Cover Sheet.dwg PROJECT NO.:DESIGN PROFESSIONAL:C0.00 OPN ARCHITECTSCOVER SHEETOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189 STREITZ SCOPE OF WORK: NEW RESIDENTIAL BUILDING WITH ASSOCIATED PAVING AND UTILITIES. CONTACT PERSON: JEFF STREITZ AXIOM CONSULTANTS, LLC 60 E COURT STREET, UNIT 3 IOWA CITY, IOWA 52240-3833 PHONE: 319-519-6220 JSTREITZ@AXIOM-CON.COM PRELIMINARY PLANNED DEVELOPMENT OVERLAY AND SENSITIVE AREAS DEVELOPMENT PLAN CITY OF IOWA CITY, IOWA UTILITY CONTACTS PROJECT INFORMATIONAPPLICANT INFORMATION OWNER/DEVELOPER: CHRISTIAN RETIREMENT SERVICES, INC C/O STEVE ROE 1 OAKNOLL COURT IOWA CITY, IA 52246-5250 319-466-3006 DEVELOPER'S ATTORNEY: SEAN WANDRO MEARDON, SUEPPEL, & DOWNER MIDAMERICAN - GAS NAME: CARSON HEMPHILL PHONE: 319-341-4461 EMAIL: crhemphill@midamerican.com ACT, INC. NAME: BRAD SPILLMAN PHONE: 319-330-8402 EMAIL: brad.spillman@act.org LUMEN NAME: SADIE HULL PHONE: 918-547-0147 EMAIL: sadie.hull@lumen.com CITY OF IOWA CITY WATER NAME: IOWA CITY WATER PHONE: 319-356-5160 EMAIL: water@iowa-city.org CITY OF IOWA CITY WASTEWATER NAME: Jesse Eister PHONE: 319-631-1144 EMAIL: jeister@iowa-city.org IMON COMMUNICATIONS, LLC NAME: JEFF KLOCKO PHONE: 515-830-0445 EMAIL: jeff.klocko@aureon.com MIDAMERICAN - ELECTRIC NAME: LINDSAY HOUSTON PHONE: 319-341-4419 EMAIL: lindsay.houston@midamerican.com MEDIACOM IOWA CITY NAME: CARL NORTON PHONE: 319-594-6201 EMAIL: cnorton@mediacomcc.com METRONET NAME: KORIE NELLIS PHONE: 319-594-6201 EMAIL: korie.nellis@metronetinc.com UNIVERSITY OF IOWA NAME: CHRIS HATLAND PHONE: EMAIL: chris.hatland@uiowa.edu CENTURYLINK NAME: TECH ON DUTY PHONE: 877-366-8344 EMAIL: Nationalrelo@Centurylink.com WINDSTREAM COMMUNICATIONS NAME: LOCATE DESK PHONE: 800-289-1901 EMAIL: LOCATE.DESK@WINDSTREAM.COM LIBERTY COMMUNICATIONS NAME: JON KENNEY EXT. 237 PHONE: 319-627-2145 EMAIL: liberty@corp.lcom.net LEGAL DESCRIPTION OVERALL SITE, UTILITY, GRADING & EROSION CONTROL PLANC2.00 COVER SHEETC0.00 RESERVED FOR APPROVAL STAMP BY:_________________________________ DATE: ____________ CITY'S ENGINEER'S RECOMMENDATION BY: _______________________________ DATE: ____________ CITY APPROVAL OAKNOLL EAST IN THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA (RALSTON CREEK WATERSHED) DIMENSIONAL STANDARDS SETBACKS: FRONT 40' SIDE 10' REAR 20' HEIGHT: 35' DEVELOPMENT SUBJECT TO THE MULTI-FAMILY SITE DEVELOPMENT STANDARDS (14-2B-6). COMPLIANCE WITH STANDARDS WILL BE REVIEWED AS PART OF THE MAJOR SITE PLAN APPLICATION. NOTE: THE PROPOSED IMPROVEMENTS INCLUDED IN THESE DRAWINGS HAVE BEEN DESIGNED IN ACCORDANCE WITH CITY OF XX REQUIREMENTS AND THE IOWA STATEWIDE URBAN DESIGN AND SPECIFICATIONS (SUDAS), LATEST ADDITION, UNLESS NOTED OTHERWISE ON THE PLANS. THE FOLLOWING DESIGN EXCEPTIONS ARE REQUIRED: NONE SITE INFORMATION SHEET INDEX AMENDED AUDITOR'S PARCEL 1002403060. AS RECORDED IN PLAT BOOK 52 PAGE 144. DESCRIBED AREA CONTAINS 10.26 ACRES AND IS SUBJECT TO EASEMENTS AND OTHER RESTRICTIONS OF RECORD. PROJECT LOCATION EXISTING TOPOGRAPHICAL SURVEY & DEMOLITION PLANC1.00 PAVEMENT PLANC4.00 PRELIMINARY SENSITIVE AREAS DEVELOPMENT PLANC1.10 12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSEXISTING ZONING PLANNED DEVELOPMENT OVERLAY (OPD) BASE ZONE; RM-12 PROPOSED ZONING PLANNED DEVELOPMENT OVERLAY (OPD) BASE ZONE; RM-12 EXISTING BUILDING 1 (2640 N SCOTT BLVD): ELDER APARTMENT INDEPENDENT LIVING DWELLING UNITS: 19 (3 ONE BEDROOM; 16 TWO BEDROOM) TOTAL SQ FT: 50,320 RESIDENTIAL SQ FT: 37,009 (INCLUDES CIRCULATION) PARKING FLOOR SQ FT: 13,311 PARKING SPACES: 34 (INCLUDES 2 ADA) EXISTING BUILDING 2 (2650 N SCOTT BLVD): ELDER APARTMENT INDEPENDENT LIVING DWELLING UNITS: 19 (3 ONE BEDROOM; 16 TWO BEDROOM) TOTAL SQ FT: 50,320 RESIDENTIAL SQ FT: 37,009 (INCLUDES CIRCULATION) PARKING FLOOR SQ FT: 13,311 PARKING SPACES: 34 (INCLUDES 2 ADA) EXISTING BUILDING 3 (2660 N SCOTT BLVD): ELDER APARTMENT INDEPENDENT LIVING DWELLING UNITS: 22 (22 TWO BEDROOM) TOTAL SQ FEET: 67,072 RESIDENTIAL SQ FT: 49,229 (INCLUDES CIRCULATION) PARKING FLOOR SQ FT: 17,843 PARKING SPACES: 41 (INCLUDES 2 ADA) PROPOSED BUILDING 4 (ADDRESS TO BE DETERMINED) ELDER APARTMENT INDEPENDENT LIVING DWELLING UNITS: 16 (16 ONE BEDROOM) PROPOSED PARKING SPACES: 15 (INCLUDES 2 ADA) TOTAL DWELLING UNITS TOTAL BEDS EXISTING 60 EXISTING 114 PROPOSED 16 PROPOSED 16 TOTAL 76 130 PARKING REQUIREMENTS ELDER APARTMENTS INDEPENDENT LIVING: ONE SPACE PER UNIT TOTAL REQUIRED SPACES 76 TOTAL PROVIDED SPACES 124 5% BICYCLE PARKING 7 SPACES (LOCATION TBD) LANDSCAPE PLANL1.00 DENSITY TOTAL LAND AREA 447,052 SF PRIVATE AND CITY STREET ROW - NET LAND AREA 447,052 SF = 10.26 ACRE MAXIMUM DENSITY = 15 UNITS / ACRE 153 UNITS TOTAL DWELLING UNITS 76 UNITS OPEN SPACE EXISTING BEDROOMS 114 PROPOSED BEDROOMS 16 TOTAL NUMBER BEDROOMS 130 MIN OPEN SPACE = 10 SF / BEDROOM = 1,300 SF EXISTING OPEN SPACE 63,600 SF PROPOSED TOTAL OPEN SPACE 63,600 SF LOT COVERAGE EXISTING BUILDING AREA 48,215 SF TOTAL SITE AREA 447,052 SF EXISTING LOT COVERAGE 11.7% PROPOSED NEW BUILDING 9,610 SF EXISTING BUILDING 48,215 SF TOTAL BUILDING AREA 57,825 SF TOTAL SITE AREA 447,052 SF TOTAL LOT COVERAGE 12.9% Attachment 3 0 10 20 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Sheets\220189 - Demo Plan.dwg PROJECT NO.:DESIGN PROFESSIONAL:C1.00 OPN ARCHITECTSTOPOGRAPHICAL SURVEY& DEMOLITION PLANOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189STREITZSCOT T B L V D 40' F R O N T S E T B A C K10' SIDE SETBACKDEMOLITION NOTES: PAVING REMOVAL AREA. FULL DEPTH SAWCUTS ALONG ALL AREAS WHERE ADJACENT PAVEMENT REMAINS. REMOVE PORTION OF UTILITY LINE SHOWN AND ASSOCIATED APPURTANCES. COORDINATE WITH PRIVATE UTILITY COMPANIES AS REQUIRED. EXISTING UTILITY/LIGHT POLE TO REMAIN. REMOVE UTILITY/LIGHT POLE. REMOVE TREE/SHRUB. TREES TO BE RELOCATED IF POSSIBLE REMOVE SIGN. A B C D E F E E E E E E E E F C D A A A A B B B 12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSE E LEGEND: UTILITIES COMMUNICATIONS OVERHEAD LINE ELECTRIC FIBER OPTIC GAS SANITARY SEWER STORM WATER: DOMESTIC SUBDRAIN EXISTING PROPOSED COMM. HANDHOLE COMM. PEDESTAL GUY WIRE ANCHOR UTILITY POLE UTILITY POLE WITH LIGHT ELECTRIC TRANSFORMER LIGHT POLE FIBER OPTIC HANDHOLE GAS VALVE STORM MANHOLE STORM INTAKE HYDRANT SANITARY MANHOLE SANITARY CLEANOUT WATER VALVE CURB STOP SITE FENCE: BARB WIRE FENCE: CHAIN LINK FENCE: CONSTRUCTION FENCE: WIRE FENCE: WOOD CONTOUR - INTERMEDIATE CONTOUR - INDEX WELL TREE: DECIDUOUS TREE: CONIFEROUS SIGN SHRUBBERY STREAM CENTERLINE FENCE: VINYL FO E C C CO W SEE LANDSCAPE PLAN 100 CO OH E FO G SS ST SD W EXISTING PROPOSED 100 SEE LANDSCAPE PLAN SEE LANDSCAPE PLAN EXISTING BUILDING 3 EXISTING BUILDING 1 A 0 20 40 PRELIMINARY SENSITIVE AREAS DEVELOPMENT PLAN OAKNOLL EAST IOWA CITY, IOWA PROJECT LOCATION MAP: (NOT TO SCALE) PROJECT LOCATION LEGEND: PROTECTED SLOPE (> 40%) CRITICAL SLOPE (25-40%) IMPACTED CRITICAL SLOPE (25-40%) WOODLAND PRESERVATION IMPACTED WOODLAND STEEP SLOPE (18-25%) SENSITIVE AREAS AREA BUFFER IMPACTED STEEP SLOPE (18-25%)N SCOTT BLV D SENSITIVE AREA CURRENT PROJECT 2017 PROJECT COMBINED 1.PROTECTED SLOPES AREA (SF)PERCENT AREA (SF)PERCENT AREA (SF)PERCENT PROTECTED SLOPES TOTAL 28,012 100%34,190 100%34,190 100% IMPACTED PROTECTED SLOPES 0 0%0 0% 0 0% IMPACTED PROTECTED SLOPES BUFFER 0 8,250 24.1%8,250 24.1% 2.CRITICAL SLOPES AREA (SF)PERCENT AREA (SF)PERCENT AREA (SF)PERCENT CRITICAL SLOPES TOTAL 68,757 100%84,525 100%84,525 100% IMPACTED CRITICAL SLOPES 5,205 7.6%2,125 2.5%7,330 8.7% 3.STEEP SLOPES AREA (SF)PERCENT AREA (SF)PERCENT AREA PERCENT STEEP SLOPES TOTAL 30,402 100%43,524 100%43,524 100% IMPACTED STEEP SLOPES 4,410 14.5%7,597 17.5%12,007 27.6 3.WOODLAND AREA (SF)PERCENT AREA (SF)PERCENT AREA (SF)PERCENT WOODLAND TOTAL 191,490 100%225,601 100%225,601 100% WOODLAND BUFFER N/A 33,038 33,038 IMPACTED WOODLAND 15,700 8.2%84,995 37.7%100,695 44.6% SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Plats\220189 - SADP.dwg PROJECT NO.:DESIGN PROFESSIONAL:C1.10 OPN ARCHITECTSPRELIMINARY SENSITIVE AREASDEVELOPMENT PLANOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189STREITZ12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSPROPOSED PROJECT LIMITS PROPOSED CONSTRUCTION LIMITS 2017 CONSTRUCTION LIMITS 2017 CONSTRUCTION AND ACCESS LIMITS PROPOSED CONSTRUCTION 2017 CONSTRUCTION AND ACCESS LIMITS SENSITIVE AREAS TABULATION: EXISTING BUILDING 3 EXISTING BUILDING 2 EXISTING BUILDING 1 50' WOODLAND BUFFER 50' WOODLAND BUFFER NOTES: 1.CURRENT PROJECT TABULATIONS ARE BASED ON 2022 SURVEY AND GIS DATA. 2.COMBINED PROJECT TABULATIONS ARE BASED ON 2017 TOTALS PLUS THE PROPOSED DISTURBANCE TO SENSITIVE AREAS. 3.WOODLAND BUFFERS WERE NOT CALCULATED AS PART OF THE 2017 SENSITIVE AREAS CALCULATIONS. THEY ARE PRESENTED HERE TO RECTIFY THE ACTUAL IMPACT TO WOODLANDS OF THE OVERALL SITE. 4.THE PROPOSED CONSTRUCTION LIMITS ARE NOT WITHIN 50' OF EXISTING WOODLANDS OTHER THAN NEAR THE SW CORNER OF THE SITE. 5.NO WOODLAND BUFFER IS SHOWN AT THE SW CORNER OF THE SITE BECAUSE WOODLAND BUFFERS DO NOT EXTEND ACROSS PROPERTY LINES. 1 2 3,4,5 WWWS FMS FMS FMS FMS FMS FMS FMS FMS FM S FM S FM S FM S FM S FM ST ST STSTSTFDCSD SD SD SD 780777778779781770775780771772773774776777778779781R-103.0 R-102.0PR-103.0 R-101.0PR-102.0R-100.0PR-101.07 6 5 7 6 4 766 767 7 6 8 7 6 9 7 6 5 770 775 76 6 7 6 7 7 6 8 7 6 9 771 772 773 774 776 777 STORM SEWER STRUCTURES STRUCTURE ID 100.0 101.0 102.0 103.0 TYPE EX INTAKE SW-401 SW-401 SW-401 RIM / FG 777.42 768.89 769.13 769.88 INFLOW PIPE IE 15" IE: 766.63 NE 15" IE: 766.95 N 15" IE: 767.19 W OUTFLOW PIPE IE 15" IE: 766.53 SE 15" IE: 766.85 SW 15" IE: 767.09 S 15" IE: 767.45 E STORM SEWER PIPE TABLE PIPE ID 101.0 102.0 103.0 STRUCTURE US 101.0 102.0 103.0 STRUCTURE DS 100.0 101.0 102.0 INVERT US 766.85 767.09 767.45 INVERT DS 766.63 766.95 767.19 LENGTH (FEET) 56 35 64 SLOPE 0.40% 0.40% 0.40% SIZE (IN) 15 15 15 MATERIAL PVC PVC PVC 0 15 30 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Sheets\220189 - Site Plan.dwg PROJECT NO.:DESIGN PROFESSIONAL:C2.00 OPN ARCHITECTSOVERALL SITE, UTILITY, GRADING& EROSION CONTROL PLANOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189STREITZA SITE & UTILITY KEYNOTES TOTAL NUMBER OF PROPOSED PARKING STALLS. PROPOSED PCC STANDARD PAVEMENT. SEE DETAIL 1/C4.00. PROPOSED PCC SIDEWALK. SEE 2/C4.00. PROPOSED ADA STALL. SEE C4.00. FIRE HYDRANT AND VALVE. PROPOSED STORM WATER DETENTION. PROPOSED 100 LF 6" PVC FIRE SERVICE WITH 2" TYPE K COPPER DOMESTIC SERVICE PER IC FIGURE 5010.106. LIVE TAP 6" OFF OF EXISTING MAIN WITH TAPPING SLEEVE AND VALVE. 2" TO BE CONNECTED WITH TAPPING SADDLE AND CORP. STOPBOX TO BE REQUIRED ON 2" VALVE. SIZE AND QUANTITY OF METERING TO BE PROVIDED WITH CONSTRUCTION DOCUMENTS. CONNECT DETENTION BASIN SUBDRAIN TO EXISTING STORM INTAKE ON SCOTT BLVD. OFF SITE EASEMENT TO BE ACQUIRED SANITARY SERVICE FDC LOCATION MAIN ENTRANCE. A MINOR MODIFICATION HAS BEEN REQUESTED REGARDING THE ORIENTATION OF THE MAIN ENTRANCE TO THE PROPOSED BUILDING. THE MAIN ENTRANCE IS SHOWN ORIENTED TO THE PRIVATE DRIVE. # B C D E F G G 12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSSTORMWATER POLLUTION PREVENTION: SITE AREA: THE SITE IS APPROXIMATELY 10.26 ACRES OF WHICH 0.83 ACRES WILL BE DISTURBED BY CONSTRUCTION ACTIVITIES. RECEIVING WATERS: THE DEVELOPMENT SITE WILL DRAIN A TRIBUTARY OF RALSTON CREEK. SWPPP PLAN KEYNOTES INSTALL STABILIZED CONSTRUCTION ENTRANCE, SEE SUDAS DETAIL 9040.120. PROVIDE SANITATION FACILITY (PORTABLE RESTROOM.) PROVIDE CONCRETE WASHOUT. PROVIDE ENCLOSURE FOR STORAGE OF DOCUMENTS (PERMITS, SWPPP, INSPECTION FORMS, ETC.) PROVIDE INLET PROTECTION PRIOR TO GRADING ACTIVITIES. MAINTAIN THROUGHOUT CONSTRUCTION. REMOVE UPON FINAL STABALIZATION. INSTALL PERIMETER MEASURES PRIOR TO STARTING CONSTRUCTION, SEE SUDAS DETAIL 9040.119. NOTES 1.CONTRACTOR TO PROVIDE STOCKPILE TEMPORARY EXCAVATION SPOILS ON SITE AND PROVIDE PERIMETER MEASURES ON DOWN-SLOPE SIDE OF PILE TO CONTAIN RUNOFF AND PREVENT SEDIMENT TRANSPORTATION. 2.FINAL RESTORATION OF ALL NON-PAVED DISTURBED AREAS TO BE SEEDED AND MULCHED WITH TYPE 1 LAWN MIXTURE UNLESS SHOWN OTHERWISE. 3.CONTRACTOR TO PROVIDE APPROPRIATE TRAFFIC CONTROL WHEN NECESSARY. TRAFFIC CONTROL MEASURES SHALL BE IN CONFORMANCE WITH THE MANUAL ON UNIFORM TRAFFIC CONTROL DEVICES (MUTCD). Q R P O N M SILT FENCE - INSTALL PRIOR TO CONSTRUCTION STABILIZED CONSTRUCTION ENTRANCE LEGEND QR D B A A 15 E 10.26' 49.28' F C C SCOT T B L V D10' SIDE SETBACKB B M Q Q P O N R R R R PR BUILDING FFE = 780.00 LL FFE = 768.00 SCOT T B L V D 40' F R O N T S E T B A C K 18' 9' 24' 8' 8' EXISTING BUILDING 3 EXISTING BUILDING 2 EXISTING BUILDING 1 50.36' 10' 5' H H H I I J J WWWWWS FM S FM S FM S FM S FM S FM S FM S FM S FM S FM S FMS FMS FMS FMS FMS FMS FMS FMS FMS FMSTSTSTS T S T S T STFDCSDSDSDSD 780.92 TC 780.92 TC780.42 GT 780.16 TC780.16 GT 780.42 GT 780.51 TC780.01 GT 779.58 TC779.57 GT 779.87 TC779.86 GT 779.70 TC 779.20 GT 0 10 20 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Sheets\220189 - Pavement Plan.dwg PROJECT NO.:DESIGN PROFESSIONAL:C4.00 OPN ARCHITECTSPAVEMENT PLANDEVELOPMENT PLANOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189STREITZPR BUILDING FFE = 780.00 LL FFE = 768.00 A PAVING PLAN KEYNOTES SIDEWALK AT ADA STALLS TO SLOPE DOWN TO GUTTER ELEVATION AT 12:1 SLOPE (MAX) GENERAL NOTES 1.JOINTING PLAN TO BE SUBMITTED BY PAVING CONTRACTOR FOR ENGINEER REVIEW PRIOR TO PLACEMENT. 2.SEE SUDAS SECTION 7010 FOR ADDITIONAL CONCRETE PAVING REQUIREMENTS. TW =TOP OF WALK TC =TOP OF CURB TP =TOP OF PAVEMENT GT =GUTTER 3.ASSUME STANDARD 6" CURB UNLESS NOTED OTHERWISE. 7" 6" 12" PORTLAND CEMENT CONCRETE MODIFIED SUBBASE PER IDOT 4123 PROPERLY PREPARED SUBGRADE (SEE GRADING NOTES) HEAVY DUTY PAVEMENT SECTION NOT TO SCALE 1 STANDARD PAVEMENT SIDEWALK SECTION NOT TO SCALE 2 SEE PLAN FOR GRADES 4" PER PLAN 4" PORTLAND CEMENT CONCRETE MODIFIED SUBBASE PER IDOT 4123 PROPERLY PREPARED SUBGRADE (SEE GRADING NOTES) PER PLAN SEALED "E" JOINT CLASS A SIDEWALK - DETAIL 1 NOT TO SCALE 3 7 1 2" 4 1 2" R 3" R 3" SLOPE AS PER PLANS 1.50% 1'1'-6" 4" A 12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSEXISTING BUILDING 3 77.28' 35.84' 163.7' 32' 32' 58.8' 155.12' 18.76' 18' 13.12' 8.54' FDC05-TO 05-TO05-TO 05-TO 05-TO 03-VD 03-VD 03-VD 03-VD 03-SR 02-TO 04-VD 05-TO 04-VD 05-TO 04-VD 05-TO 04-VD 05-TO 04-VD 02-TO 11-KF 09-KF 02-CA 03-CA 03-CA 05-CA 01-SR 01-SR 01-SR 01-SR 0 15 30 SHEET NUMBER:SHEET NAME:DRAWING LOGENGINEER:REVDATEDESCRIPTION OF CHANGESPROJECT NAME:CLIENT NAME:WWW.AXIOM-CON.COM | (319) 519-6220 Mar 30, 2023 - 5:04pm S:\PROJECTS\2022\220189 - OPN - Oaknoll East\05 Design\Civil-Survey\Sheets\220189 - Landscape Plan.dwg PROJECT NO.:DESIGN PROFESSIONAL:L1.00 OPN ARCHITECTSLANDSCAPE PLANOAKNOLL EAST2660 NORTH SCOTT BOULEVARDIOWA CITY, IOWA, 52240NOT FOR CONSTRUCTION22-0189 STREITZ12302-22-202302-27-202303-22-202303-30-2023CITY SUBMITTALCITY RESUBMITTALRESPONSE TO CITY COMMENTSRESPONSE TO CITY COMMENTSSCOT T B L V D PR BUILDING FFE = 780.00 LL FFE = 768.00 SCOT T B L V D LANDSCAPE LEGEND: PROPOSED PROPOSED DECIDUOUS UNDERSTORY DECIDUOUS SHRUB EVERGREEN SHRUB ORNAMENTAL GRASS EXISTING TREE EXISTING IMPACTED TREE EXISTING IMPACTED WOODS EXISTING BUILDING 3 EXISTING BUILDING 2 EXISTING BUILDING 1 NOTES: PARKING SPACES TO BE SCREENED TO AT LEAST S2-STANDARD (14-5F-6B) INDICATED EXISTING IMPACTED TREES TO BE REPLACED AND/OR RELOCATED TREE REQUIREMENTS TREES MUST BE PLANTED ON SITE AT A MINIMUM RATIO OF AT LEAST ONE TREE FOR EVERY FIVE HUNDRED FIFTY (550) SQUARE FEET OF TOTAL BUILDING COVERAGE OF THE LOT. THE CALCULATION BELOW IS BASED ON THE PROPOSED BUILDING AREA. PROPOSED BUILDING COVERAGE (NEW CONSTRUCTION) 9,610 SF REQUIRED NEW TREES = 9610 / 500 20 TREES PROPOSED NEW TREES 21 TREES Summary Report for Good Neighbor Meeting Project Name: ___________________________Project Location: _________________________ Meeting Date and Time: ________________________________________________________ Meeting Location: _____________________________________________________________ Names of Applicant Representatives attending: ______________________________________ ______________________________________ Names of City Staff Representatives attending: _______________________________________ Number of Neighbors Attending: ________ Sign-In Attached? Yes ______ No ______ General Comments received regarding project (attach additional sheets if necessary)- _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Concerns expressed regarding project (attach additional sheets if necessary) - _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Will there be any changes made to the proposal based on this input? If so, describe: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Staff Representative Comments ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Oaknoll East 2640 N Scott Boulevard March 23, 2023 @ 6:00 p.m. Oaknoll East Axiom Consultants - Brian Boelk, Jeff Streitz Oaknoll - Steve Roe, Steve Cuppy Parker Walsh 1 X The neighbor attending currently lives in Oaknoll East. He had questions related to his view from his existing unit once this is built. He also noted interest in the new building due to units type and services provided as he and his wife continue to age. As a whole, he thought this looked like a nice project and asked how quickly it would be completed. No real concerns expressed. No changes needed. Attachment 4 CIVIL  STRUCTURAL  MECHANICAL  ELECTRICAL  SURVEY  SPECIALTY 60 East Court Street #3, Iowa City, IA 52240 | 319.519.6220 www.axiom-con.com 1901 16th Ave. SW #3, Cedar Rapids, IA 52404 | 319.519.6220 February 23, 2023 APPLICANT’S STATEMENT FOR REZONING The proposed development area consists of a Parcel #1002403060, located near the northwest corner of N Scott Boulevard and N 1st Avenue in Iowa City. Refer to the Rezoning Exhibit included with the Rezoning Application for additional information and detail. The current zoning classification is OPD/RM-12 and the Applicant is seeking to rezone property to that same OPD/RM-12. The applicant is proposing to construct an additional building to the existing Oaknoll East Campus, adding 16 resident units due to desire, need, and requests. This building will also include a lounge area, kitchen, and pedestrian tunnel connection to the existing building directly east. The existing Oaknoll East Campus was previously approved for 60 units, in which this request would increase by those 16 resident units. The overall infrastructure and traffic flow is to remain the same, as this proposed building will be located at the southwest corner of the campus and access directly off the existing drive aisle. Based on field survey and topographic data, it is projected that this development will have some minor additional impact to critical and steep slopes as defined by the City of Iowa City Sensitive Areas Ordinance, but no protected slopes are identified or intended to be disturbed. Careful consideration has been made regarding the placement of this proposed building addition with multiple locations evaluated. We feel that this location has the least number of impacts to sensitive areas while also provides the most efficient and least disruptive in terms of construction. There is city water, storm sewer, and sanitary sewer already provided to this site. Existing easements are in place within the parcel as previously platted and identified. Additional storm water management has been anticipated to be incorporated into the development for this additional impervious area, and to be located to the southwest of the proposed building based on City of Iowa Design Standards. Further evaluation will take place of the existing stormwater management facilities and calculations to deem if this is necessary. Discussion has taken place with City staff and pre-application process has been completed. A Good Neighbor Meeting is in the scheduling process and intended to be completed prior to the Planning and Zoning Committee meeting. The total area of amended rezoning is considered to be the total site of 10.26 acres. Sincerely, Brian A. Boelk, PE PRINCIPAL/OWNER Attachment 5 MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION APRIL 5, 2023 – 6:00 PM – FORMAL MEETING EMMA J. HARVAT HALL, CITY HALL MEMBERS PRESENT:Susan Craig, Maggie Elliott, Mike Hensch, Maria Padron, Mark Signs, Billie Townsend, Chad Wade MEMBERS ABSENT: STAFF PRESENT:Sara Hektoen, Kirk Lehmann, Anne Russett, Parker Walsh OTHERS PRESENT:Mike Welch, Jon Marner, Brian Boelk, Jack Topp, Steve Roe RECOMMENDATIONS TO COUNCIL: By a vote of 7-0 the Commission recommends approval of SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. By a vote of 7-0 the Commission recommends approval of SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial subdivision, an 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. By a vote of 6-0 (Elliott recused) the Commission recommends approval of REZ23- 0003, an application for a rezoning of approximately 10.26 acres of land from Low Density Multi-Family Zone with a Planned Development Overlay OPD/RM-12) to OPD/RM-12 in order to amend the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. By a vote of 6-1 (Padron dissenting) the Commission recommends approval of the bylaw amendments as presented in the agenda packet. CALL TO ORDER: Hensch called the meeting to order at 6:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. CASE NO. SUB22-0019: Location: Eastof CampCardinal Road and north ofGathering Place Lane An application for a preliminary plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing three lots and one outlet to accommodate 35 single-family units, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living building, and neighborhood commercial uses. Planning and Zoning Commission April 5, 2023 Page 2 of 17 Lehmann began the staff report with an ariel map noting it's one of the large undeveloped areas east of 218 that's remaining on the west side of the river. He reminded the Commission that this area came before them as a rezoning recently and this is now the preliminary plat aspect of that. Per the preliminary plat, there are single family homes in the north and east, some multifamily uses and a church to the south, and then some undeveloped land to the west that was recently subdivided into the Cardinal Heights subdivision. In terms of zoning, Lehmann noted there was an error in the zoning map in the agenda packet as there's been some recent rezonings that weren't reflected in that map so he shared an updated rezoning exhibit with the Commission. Lehmann stated the north and south areas are zoned RS-5/OPD, which is low density singlefamily residential with a planned development overlay. The south also has some low density multifamily residential, in addition to the single family residential. To the east is some rural residential (RR1) and to the west it's predominantly low density multi residential (RM-12) and a lot of the areas have a planned development overlay (OPD) because there's significant sensitive features within the area. Lehmann stated the purpose of this preliminary plat is to allow a senior housing project which would have a mix of housing types, as well as a mix of uses, including some commercial uses. The rezoning came before this Commission and was approved on February 7, where it was rezoned to medium density single family residential with the planned development overlay. As part of that rezoning it had two conditions, one is that the owner must contribute to 50% of the upgrading of Camp Cardinal Road between Gathering Place Lane and the extension of Deer Creek Road, and that does include the cost of the traffic circle that would be part of that. The second condition is that there is on street parking and that they would have to maintain that as well. With the rezoning, because of the sensitive features, there was a preliminary planned development overlay plan and a sensitive areas development plan that were approved as part of that rezoning. Lehmann did also note that the applicant does own most of the subject property, but there is a small portion that is still owned by St. Andrew Presbyterian Church so staff does anticipate a future boundary line adjustment that would allow the acquisition of that piece of property. A boundary line adjustment is an administrative process, but then that would be incorporated into the final plat and it platted through that methodology. In terms of the actual layout of the preliminary plat, it is 31.65 acres and would have three lots and one outlot for that senior living use. It has a range of different housing types including some single-family units, duplex units, some larger multifamily units and townhome style multifamily units, and then an assisted living facility. In addition there are some small scale neighborhood commercial uses and Lehmann pointed on the plat the three lots where those would all be located and explained it's not platting off individual lots, the land would be commonly owned, as a condo or under a single ownership. The outlot and the portion expected to be added into this project with the boundary line adjustment is the small roundabout terminus at Gathering Place Lane to the east. In addition, as far as road networks, there are extensions of Deer Creek Road and Camp Cardinal Road that are incorporated as part of this as well as the improvement of Camp Cardinal Road discussed in the rezoning condition. There are also two cul-de-sacs and one loop street included in the plat. Planning and Zoning Commission April 5, 2023 Page 3 of 17 With regards to consistency with the Comprehensive Plan, Lehmann explained there is no district plan for this area, which is the Northwest Planning District, but the Comprehensive Plan shows it as eight dwelling units an acre residential and it is approximately 3.7 dwelling units per acre as proposed. The proposal also meets a number of different goals in the Comprehensive Plan that are enumerated in the staff report and includes things like a diversity of housing types, adding connections to existing neighborhoods to the extent possible, including street connectivity, it is an infill lot so it's a contiguous neighborhood and tries to be a pedestrian oriented development with sidewalks and some neighborhood commercial destinations. The plan also preserves sensitive features through its sensitive areas development plan. In terms of the design of the subdivision, it very closely follows what was in the OPD plan that was approved previously with more intense uses to the south and west, and less intensity to the north and east, which is similar to the surrounding uses. In terms of access, the primary access would be from Camp Cardinal Boulevard via Camp Cardinal Road, and it would be a single point of access at the beginning but they’re expecting secondary access as Deer Creek Road is extended over to Camp Cardinal Boulevard again in the future. That secondary access would occur as part of the Cardinal Heights subdivision that was recently approved. Lehmann next discussed that the plat includes some on-street diagonal parking, which is a bit unusual because the City isn't really geared to handle that kind of maintenance. A condition of the rezoning was that the developers would need to maintain those diagonal on-street spaces. Also with the Gathering Place Lane extension, it does terminate at the St. Andrew property with a temporary turnaround but it does allow for future connectivity should the east portion of the St Andrew property to the south develop. Lehmann next reviewed the sensitive areas development plan that was approved at the time of the rezoning. It was required due to wetlands, woodlands, a stream corridor and regulated slopes and it was a level two sensitive areas review which is why it came before this Commission. Lehmann showed an image of the woodlands, stream corridors, wetland buffers and regulated slopes and he pointed out the construction limits and noted the preliminary plat does include elements of the sensitive areas development plan, including those construction limits, in addition to the conservation easement. Regarding neighborhood open space, the City requires a dedication of open space or fee in lieu of land dedication at the time of preliminary platting for residential subdivisions and it's based on the needs generated by the proposed residential developments. Western Home has requested a fee in lieu of public open space in this case and that amount is equivalent to 1.08 acres of dedication, which based on a recent appraisal is approximately $140,000, so that is the anticipated fee that would be dealt with at the time of final platting. With regards to stormwater management, Lehmann explained there are two new stormwater basins that are proposed, one is in the southwest corner of the plat near the intersection of Camp Cardinal Road and Gathering Place Lane. The other is in the arc of Gathering Place Lane to the south and both would connect into existing basins on the St Andrew's site. Public Works has reviewed and approved those preliminary stormwater plans but those would be finalized at the time of final platting with other construction documentation. With regards to the water distribution system, the property can be serviced by water but because there is a relatively large cul-de-sac until there's future connectivity along Gathering Place Lane the City is requiring that be looped in Planning and Zoning Commission April 5, 2023 Page 4 of 17 order to provide redundancy from water supply and some other benefits like ensuring water pressure and things of that nature. The plat does show a private water easement that runs along the south edge of this property and also runs partially in St. Andrew’s property, but Public Works has reviewed those and believe that those look like adequate locations. Staff understands that there has been an agreement reached with St. Andrew’s to allow that to occur, but that will again be finalized at final platting. Finally, there are some anticipated infrastructure fees as well including water main extension fees and sanitary sewer tap on fees. Finally, Lehmann wanted to mention staff received some correspondence, specifically from a Mr Bentley, who wanted to make sure that developers know the area is important to native wildlife and vegetation and also encourages scaling back where possible to conserve habitat or increased building density to minimize disruption to land during construction. Staff recommends approval of SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. Next steps would be upon recommendation from the Planning and Zoning Commission, this item will be considered by Council at an April meeting and following that would be final plat approval by Council. Staff will review the final sensitive areas development plan, site plan review, and the building permit review. {Commissioner Wade joined the meeting during the staff report} Padron asked would the development be responsible for maintaining the stormwater management system. Lehmann confirmed they would also be required to maintain that stormwater basin. Hensch opened the public hearing. Mike Welch (Welch design and development) is here on behalf of Western Home Independent Living Services. He noted regarding preserving areas and habitat when they did the concept plan and rezoning they noted the area at the south side of Gathering Place Lane between the back of the single family homes and the stormwater detention basin is pretty steep with a 30-35 foot change in elevation. They are working with a local ecological consultant and looking at doing native plantings and some things to protect those slopes and also avoid having just a big area of lawn that needs to be maintained. In addition to preserving and protecting those wetlands as far as if restoration and managing that that fails, there's usually multiple owners but this is an opportunity to address that differently since there is just one owner. Hensch asked if the property has been acquired in the southeast corner. Welsh stated there's a purchase agreement in place and they are just waiting on the boundary adjustment. Hensch asked if currently there are any zoning ordinances regarding wildlife habitat or restoration in a wildlife reserve. Russett replied the sensitive areas ordinance acts as a proxy for Planning and Zoning Commission April 5, 2023 Page 5 of 17 that type of thing. Hensch closed the public hearing. Elliott moves to approve SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. Townsend seconded the motion. Townsend asked about the final plat for Cardinal Heights subdivision and when that was approved and if it would be done soon or can this development still need to move forward with developing that infrastructure and moving forward with developing their project. Russett is unsure what the timeline is for the Cardinal Heights subdivision. A vote was taken and the motion passed 7-0. CASE NO. SUB23-0002: Location: Southwest corner of Slothower Road and Melrose Avenue/lWV Road SW An application for a preliminary plat for Melrose Commercial Park, a 62.22-acre commercial subdivision containing eight lots. Russett began the staff report with an aerial of the project site that’s located at the southwest corner of Melrose Avenue and Slothower Road. To the east is the Johnson County Poor Farm and to the south and to the north is mostly in unincorporated Johnson County. The zoning map shows the subject property is zoned intensive commercial, and the lane to the east is zoned public. In terms of background, in 2021 there was a Comprehensive Plan Amendment that came before the Commission as well as an annexation and rezoning to intensive commercial that was approved by City Council. Russett did note there were several conditions associated with that rezoning, one was the creation of a vegetative buffer easement at the southern end of the property, dedication of right-of-way along Slothower Road, and the owner would need to contribute to the upgrading of Slothower Road and actually build a portion of it as well. Another condition was that the Slothower Road and IWV Road be screened and landscaped to the S3 screening standard. There were also requirements on the location of loading areas and outdoor storage and those would need to be behind buildings. After that annexation and rezoning the owner did go through the subdivision process and it was platted to include two commercial lots. Since that time the City has received another application as the owner would like to add some additional lots and public streets to the site as well. This is why this Commission is looking at this again because it's a resubdivision. Planning and Zoning Commission April 5, 2023 Page 6 of 17 Russett showed a map of the preliminary plat, it is 62 acres with eight commercial lots. There's a north/south street called Platinum Lane and an east/west street called Gold Avenue that connects with Slothower Road. Slothower Road will need to be improved to that access point on Gold Avenue. Russett stated some of the conditions from the rezoning have already been met with the previous subdivision. The vegetative buffer easement area and the dedication of the Slothower Road right-of-way were met with the previous subdivision plat. She also noted Platinum Lane does end in a cul-de-sac due to the sensitive features to the south, the wetlands and stream corridor as well as the vegetative buffer easement. In terms of consistency with the Comprehensive Plan, an amendment to the Comprehensive Plan was adopted for this development showing this area as appropriate for intensive commercial uses as well as that open space vegetative buffer easement. Therefore, the subdivision is consistent with the Comprehensive Plan. Regarding the environmentally sensitive areas Russett stated a sensitive areas development plan has been approved, and the preliminary plat shows a conservation easement in those areas to protect those sensitive features. In terms of stormwater, the stormwater management is provided by two separate basins on the west and southeast of the property. Public Works has approved these preliminary stormwater management plans. The role of the Commission tonight is to determine if the plan is consistent with the City’s subdivision regulations and Comprehensive Plan. Staff recommends approval of SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial Park subdivision, a 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. Next steps, upon recommendation from the Planning and Zoning Commission, the preliminary plat will be considered for approval by the City Council. Craig asked Russett to speak about what is allowable in intensive commercial zones. Russett replied it is one of the more permissive commercial zones and allows things like general office uses, medical offices, retail sales, and also allows some more intense uses like general manufacturing and outdoor storage. She did note some of those uses do require provisional approval with specific standards that need to be met and some of those uses require a special exception which needs to go to the Board of Adjustment. Craig noted remembering some neighbors had concerns within the subdivision because they were pretty certain they knew what was going to go in there and this makes it sounds like that's not what would be going in here because they are doing the second division. Hensch asked if most of those intensive uses require Board of Adjustment approval. Russett is not sure, it would depend on the specific use. Wade noted the original plat approval was before his time on the Commission but wasn't there a good neighbor meeting held and as part of that the buffer area was introduced. Russett stated the buffer area actually came from comments from the public at a Commission hearing, the Planning and Zoning Commission April 5, 2023 Page 7 of 17 project actually changed through the input at the public hearing process. Hensch opened the public hearing. Jon Marner (MMS Consultants) is representing the developer and wanted to address a couple of the comments from the Commission members and to highlight a few items. First of all, as mentioned this is a redevelopment of a subdivision which was previously approved. As Melrose Avenue has been completed there has been some generic interest in the area, and the interest is for smaller lots as opposed to the to larger lots that were that were proposed and approved on that previous final plat. So now there are three smaller lots out on Melrose Avenue and some larger lots on the south side between Gold Avenue and the vegetative buffer. Regarding the vegetative buffer on the previous plat, when the previous Commission meetings were held that was one of the items that was highlighted as a concern, also expressed was one of the zoning items to provide some additional screening on the southern property line. That vegetative buffer was put in place to ensure that there was ample distance and separation from any potential future development and the residential properties to the south. They added the vegetative buffer to make sure that would remain and then there's additional landscaping that will also be provided. The detention basins are provided in that area as well so that's going to restrict any potential future development in that area. Hensch asked about the paved surface that will be on Slothower Road south of Melrose, to Gold Avenue, what's that distance to that from Melrose. Marner believes it's 350 feet from centerline to centerline. Hensch asked if they will be acquiring the right-of-way south of that and to the end of area on Slothower Road or will that come back in the future. Marner stated that was part of the previous final plat and was approved, the additional right-of-way on along Slothower Road on this property was platted at that time, this would acknowledge the 17 additional feet that was required on this property being considered for future construction of Slothower Road. Hensch closed the public hearing. Craig moved to approve SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial Park subdivision, an 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. Wade seconded the motion. Craig stated as in the previous one this is just another step in something that they spent a lot of time on for and it will be interesting to see what happens. A vote was taken and the motion passed 7-0. CASE NO. REZ23-0003: Location: N. Scott Blvd west of N. 1st Avenue An application for a rezoning of approximately 10.26 acres of land from Low Density Multi Family Zone with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 in order to amend the Planning and Zoning Commission April 5, 2023 Page 8 of 17 approved Planned Development Overlay Plan and Sensitive Areas Development Plan. Elliott recused herself from the discussion due to a potential conflict as she is on the Oaknoll Foundation Board. Walsh began the staff report showing a map of the area and the zoning map. The area is zoned as OPD/RM-12 and will remain as OPD/RM-12. The property was rezoned in May 2017 to OPD/RS-5 for lot one of the Larson Subdivision and OPD/RM-12 for lot two, which is the subject property of this application. The preliminary plat, final plat, preliminary OPD and SADP were also approved in 2017 for 60 units. Oaknoll East campus currently contains three multifamily buildings and 60 senior living units. The current zoning, OPD/RM-12, is generally used to provide high-density single-family housing and low-density multifamily housing. The proposed zoning will remain the same and is intended to amend a previously approved OPD and SADP due to the proposed multifamily development and further impacts on sensitive areas. Looking at the preliminary OPD and SADP Walsh pointed out the existing structures. There are three multifamily buildings providing 60 senior living units, as well as garage parking and surface parking to the north. The proposal is on the west side of the property and is 16 one-bedroom units and an additional 15 parking spaces just off the existing drive with an underground tunnel connection from the proposal to one of the existing buildings. Walsh next reviewed the planned development approval criteria. First, maximum density in RM- 12 zone is 15 dwelling units an acre, which would provide up to 153 units and what is being shown in total would be 76 senior living units, which comes out to be 7.4 dwelling units an acre. The land uses proposed include 16 one-bedroom assisted living units similar to the existing units already on the subject property. The open space requirement was satisfied during the previous rezoning in the form of a courtyard that offers amenities such as a dog park, walkways and outdoor deck space. No traffic circulation is expected to change as access will remain fully off on North Scott Boulevard and there'll be no changes to the existing drive other than the addition of 15 parking spaces. The proposed development will be on the western property line with parking proposed just west of the existing drive and all will be set back 40 feet from the arterial street. Walsh showed images of the proposed development noting it will be constructed at a lower elevation than the existing development. The property will be serviced by a city water, storm sewer and sanitary sewer. Traffic is not anticipated to overburden Scott Boulevard, the existing internal private circulation or city utilities. The surrounding area as shown is mostly undeveloped with ravines and woodlands acting as a natural buffer form this to the property to the north. For all these reasons staff determined that the development would not adversely affect the existing views, property values or privacy. Walsh stated the proposed development is consistent with the existing living senior living development as well as the future senior living development that is proposed south of Scott Boulevard and the applicant is not requesting any variations from the zoning code standards. Walsh showed images of the existing buildings on the property and the location where the new building will be. He stated it'll generally comply with the same building types and characteristics shown on the current buildings. Regarding compliance with the Comprehensive Plan and North District plan, both identify the property as Office Research Park development and Public/Private Open Space. This designation was put in place in 1999 to acknowledge ACT headquarters but the District Plan does further Planning and Zoning Commission April 5, 2023 Page 9 of 17 acknowledge alternative uses such as residential should be considered. Both Plans encourage housing diversity and higher density off arterial streets. Looking at compatibility with the neighborhood character, to the north is the Iowa City Community School District as well as ACT campus. There are also approximately 38 acres that have been dedicated to the City for an extension of Hickory Hill Park and further south there is the site of the new senior living facility that has begun construction. Therefore, the proposed development will be similar in character to the existing buildings as well as the future senior living development south of Scott Boulevard. Regarding the sensitive areas staff looked at this as total impacts and that includes the 2017 project as well as the proposed project. In total 8.7% of critical slopes are proposed to be impacted, which is well below the 35% threshold which would otherwise require a level two sensitive areas review. At the time of the 2017 project, a protected slope buffer was impacted by 8,250 square feet, that was requested to accommodate the installation of stormwater management infrastructure. Woodlands will be impacted at 59% and that does include the woodland buffers which are not anticipated to be impacted but can't be counted as preserved. At 59% that still is below the 80% threshold that would require a level two review. Walsh next discussed neighborhood open space. According to section 14-5k of the City code, public open space would be required via dedication or fee in lieu, and this was satisfied through the payment of a fee in lieu with the previous development. Staff did receive seven pieces of correspondence, two of which express concerns with traffic and sensitive areas, while the other five were in favor of the general Oaknoll lifestyle as well as the assisted living units that future residents or even existing residents could move into. Staff recommends approval of REZ23-0003, an application for a rezoning of approximately 10.26 acres of land from Low Density Multi-Family Zone with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 in order to amend the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. Next steps, following the Commission's recommendation is City Council’s consideration which is anticipated to start in April, and site plan, a final OPD and SADP, as well as building permits will be approved by staff review. Wade asked staff to explain what the transition of zoning exactly their requesting with this application. Walsh explained the zoning will remain the same but since there was a previously approved OPD and SADP, the land is tied to what was approved then. So this proposal of another multifamily building, as well as further impacts to sensitive areas, is considered a substantial change, which is requiring a rezoning. Craig noted on the plan, it might just be her perception, but the building looks very close to the lot line, does the building meet the setback standards on the property line. Walsh confirmed that the setback is 10 feet and the building will be more than 10 feet setback from the property line. Craig also noted it will be set so far down from the building that's it’s connected to and will be a lot closer to the street than any of the other residences. Walsh explained that was required Planning and Zoning Commission April 5, 2023 Page 10 of 17 because in the northwestern portion there are existing protected slopes so the building couldn't get too far north without impacting protected slopes. Wade stated from the images it appears from the valley, essentially two and a half stories are exposed above ground level. Walsh noted from the image it looks like about two stories but the applicant may have more specific details. Wade asked generically what the difference between sensitive slopes and protected slopes are. Walsh explained protected slopes are a slope of 40% or greater incline and critical slopes are up to 25%-39% incline. Hensch opened the public hearing. Brian Boelk (Axiom Consultants) noted they did look at multiple different options of layouts where this building may fall and it actually started in that northwest corner and they just could not make it work in terms of those protected slopes and sensitive areas. Therefore, the southwest corner really worked out much better in terms of any impacts to sensitive areas as well as impacts to residents and constructability. This access versus going through the other buildings is a lot more accessible at that southwest corner as well. This building is adding a much needed 16 units. Signs asked what's the elevation base going to look like on the west and south into that building, it appears they will have at least one full level below the grade. It also slopes from the north to the south so he is trying to figure out how that impacts what portion will show because it seems as if there was going to be a lot of foundation showing on the south end. Boelk stated the architect might speak to that but on the question earlier about elevations from that west side and from the valley it would be two and a half stories in elevations and as part of that is an exposed lower level, it is two levels of units in terms of above ground grade but there will be some partial exposure. Jack Topp (OPN Architects) stated there are two wings of the building, the north wing and the south wing, each would be two stories only, partially all at grade. The first level, the lowest level, and the middle knuckle piece where it turns will be three levels and that's the only portion that would be two and a half stories above grade, otherwise it's much lower. The architecture is trying to blend in with existing architecture with a type of wood housing siding on it and a flat roof type of structure is what's anticipated. Steve Roe (Executive Director, Oaknoll) stated this would be the completion of this campus. As they explored alternatives to try to fit in another 16 units, they looked at the area at the north end of the property to the north end of the courtyard between the two structures that exist currently. There's a dog park and he doesn’t want to move the dog park so that really isn't a viable option. It's been mentioned already but the northwest corner has sensitive areas that really aren't an option so the southwest corner was the only part that they could conceivably build this structure. On the east side of the property there's a pretty significant wooded ravine and any future building would not be possible due to sensitive areas and slopes there. Similarly, on the west side Oaknoll’s property edge is just outside the western edge of that proposed new building but will need to be vacant due to the topography there, so he doesn’t think that any property owner to the west would be able to build anything either. Planning and Zoning Commission April 5, 2023 Page 11 of 17 Townsend asked if there was any underground parking in the new building. Roe replied the only parking or the additional parking for these new buildings will be street level parking just off of the primary drive that already exists. Townsend wanted to note that she was in their building and the parking for more mature patrons was awful close and she would hate to have to park in there. Wade asked if this is an independent or assisted living facility. Roe replied the structures that exist currently are all independent living apartments and that has worked but it would be nice to be able to offer assisted living services to the residents so that's why this building is being proposed and it would assisted living. Hensch asked with the proposed tunnel will the single roadway and access be disturbed, it isn’t clear how they will build a tunnel without closing the road and it's kind of problematic since it’s the only roadway in and out. Boelk stated the design team has been in talks and working with the general contractor on what that might look like, they’ve actually talked about keeping access through there and essentially building half at a time, whether it be even at a temporary, offsetting road to get through there, but it's certainly been a topic of discussion. They believe they will keep the roadway open and are looking at phasing and sticking that tunnel through there accordingly to do so. Wade noted presumably if they’re going to close the roadway, is that a public roadway. Boelk replied no and the fire department will need to review the plans. Hensch closed the public hearing. Signs moved to approve REZ23- 0003, an application for a rezoning of approximately 10.26 acres of land from Low Density Multi-Family Zone with a Planned Development Overlay OPD/RM-12) to OPD/RM-12 in order to amend the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. Townsend seconded the motion. Signs was out there at the site and doesn’t know how that building is going to squeeze in there, it seems that the slopes start within 15-20 feet of existing buildings and they pretty significant so he is surprised that there aren’t any protected slopes in that area. He thinks it's going to be interesting to see what it looks like from Scott Boulevard because the topography slopes in two directions in that corner. He appreciates the challenges of the rest of the site but his concern is it seems like a big building and a very small space. Hensch asked if in that particular area for the footprint and building all are just critical slopes or less. Parker confirmed they are critical or steep slopes. Townsend noted the roundabout has made traffic a lot easier going through there so she is happy that was put in before they started this additional building. Craig has the same concerns she expressed earlier about the location of the building with respect to the lot line, she is going to support it but reluctantly for those reasons and wishes to say this whole development isn’t that old and it's regrettable that more thought wasn’t given to the possibility of doing this in the future and a better solution established at that point in time. Planning and Zoning Commission April 5, 2023 Page 12 of 17 A vote was taken and the motion passed 6-0 (Elliott recused). BY-LAW AMENDMENT REGARDING PUBLIC PARTICIPATION: Continued from 2/15/23 Russett noted that in February the Commission discussed and provided some feedback on an initial draft of the bylaws. What staff heard during that meeting is the Commissioners wanted to allow testimony up to five minutes instead of three minutes, only giving people one opportunity to speak per agenda item and allowing official organizations to consolidate their speaking time up to eight minutes. Additionally, there was a couple of things the Commission asked staff to remove, one was the section related to attendance at Council meetings and then the annual reports. Staff also wanted to make sure that it was clear that all meetings should be in locations that are accessible, and then incorporating some language on virtual participation. Russett and Hektoen have worked on making some changes to address the feedback. They believe they've addressed all of the feedback they heard from the last meeting and a draft of the changes were in the agenda packet. Elliott stated she appreciated the Chair thinking ahead and making these changes. Craig noted in Article Nine, the article about public participation, it says in Section One “persons other than commissioners shall be permitted to address the Commission only on specific agenda items”. So does that agenda item include the first thing on every agenda which is public comment of anything not on the agenda. She reads that as they have an agenda inviting people to give comments to the commission, and then in the bylaws they say specific agenda items. Padron asked then are they removing the first item in the agenda at every meeting and not allow comments about anything that is not on the agenda. Hektoen replied that is not the intention, during that agenda item anyone from the public can get up and talk about anything. But after that agenda item, any discussion on other agenda items must be germane to that particular agenda item. Craig also asked about the work sessions, she has been on the Commission for years and never been to a work session. Hensch stated they haven’t had one in quite a while, they were set up just for the Commission to discuss an item but there's no public comment or participation, they can be present but cannot participate. Craig stated then where it talks about a special meeting maybe adding including work sessions. Hensch stated he believes the work sessions were used more when staff needed to educate the Commission on particular items. Hektoen said they can add in information about work sessions as another item under meetings. Russett noted the work session is mentioned in the public participation section, Section Five talks about special meetings. Hektoen stated that can be interpreted as a work session or it could be some other meeting called outside of the regular scheduled meeting. Townsend added under Article Five Section Two it states a special meeting is called by the chairperson. Hektoen stated it also says it may be called by the chairperson and shall be called by the chairperson or vice chairperson at the request of three or more members. Planning and Zoning Commission April 5, 2023 Page 13 of 17 Craig noted under Article Seven, Hearings, Comprehensive Plan, do they need to list the District Plans as well, it's not just the Comprehensive Plan they look at several different plans. Russett explained those are all components of the Comprehensive Plan so they do not need to list them. Hektoen stated the code itself describes that structure. Craig had another question under Article Nine, Section Five, Rules and Conduct, and everyone having the right to speak without being chilled from doing so. Hensch said he felt they are trying to say when they have a roomful of people that are vocally supportive or opposed to something and there's one or two people that are in opposition, those people may feel intimidated from speaking and not being able to exercise their rights because everybody else is talking. Hektoen stated its language from the Council rules and the term “chilling effect” is used frequently. Padron wanted to say that these kinds of rules sometimes serve to oppress the people that have already been oppressed and the way that usually works is these rules are only enforced when the oppressed show up and they don't enforce them when the privileged people show up. She referenced to what happened in Tennessee a few days ago and the students were complaining and yelling to have the representatives listen to them to change the law or the rules and they ended up removing the three representatives that supported the kids. Padron stated the solution sometimes is not to include more rules but to help the people and have a more fair city for everyone, and ensure that everyone has fair access and location and to housing, and everyone understands that they are welcome to come here and speak. Sometimes they are on a commission for three or five years and then leave the commission with more rules for the next people. When she was the chair of the Housing Development Commission she remembers thinking she hopes the next chair understands all the rules, she had been doing it for a long time so she had a clear understanding of some of the things that they had been accomplishing for a few years. Padron noted she is just very sensitive about oppressing people, they may come from a country that has a very difficult history with rules and people and she just wants everyone to feel welcome. She said this is just one day a month and they can take the time to listen to everyone, she has never felt in danger here, she loves this city, and when people come in here it is because they have a reason, they don't just come in here. She wanted to state she is going to vote in opposition of this but does understand that everyone on the Commission has really good intentions and she does appreciate all the work. Hensch thanked Padron for her comments, and he stated what drives for these rules is having seen multiple, multiple times in the last several years where a dominant group overtakes a meeting and doesn't allow anybody to voice in opposition to their viewpoint. His support of this is to make sure that everybody gets input and that nobody gets chilled because he’s seen that multiple times. He believes everybody wants to do good, that's why they're here, they’re not getting paid one penny to be here, and they want people to be heard. But, with rights come responsible behavior so he does have problems that come up here if people name call and then make accusations, that's not okay and it detracts from the point they're trying to make. So, what they're doing, as part of this, is helping people be more effective with their messaging, so that the Commission can hear what the real point is, rather than a personal attack. He has been doing this for eight years and has never seen a single example where they haven’t bent over backwards to allow people to have their say, they’ve been here until 11 o'clock at night to listen to people, frankly, say the same thing over and over again. Again, Hensch acknowledged what Padron was saying and respects where she is coming from, he just sees the other side of the coin and people using public intimidation to chill other people’s voices. Planning and Zoning Commission April 5, 2023 Page 14 of 17 Townsend noted a few times since she’s been on the Commission there has been that problem, it wasn't those that were oppressed, it was those that didn't want those people in their neighborhoods. She remembers a time when the Chair, very nicely, had to put them in their place that this was not the way it was. Again, this goes back to Forest View when they had many people coming in, hoping for that project that never happened. Hensch was glad Townsend brought up that example as that experience really hit them hard in seeing all the people use all kinds of terms to address the real issue of they just didn’t want “those people” to be in their neighborhood. Hensch acknowledged that one of the things he really appreciates about Commissioner Signs is he is very good at pointing out if they cared about their sight lines then they should have also purchased that property. Hensch also stated frankly, anybody can use any rule to oppress other people and it’s the job of all the Commissioners to make sure equal application to everybody and the rules are the same for everybody, no exceptions. Finally, Hensch wanted to acknowledge the part about enforcement and that there's nothing in there about having people arrested, they purposely did not want that, this is about maintaining order in the meeting so business can be conducted, and everybody will get an equal opportunity. Townsend moved to approve the bylaw amendments a presented in the agenda packet. Wade seconded the motion. Wade just wanted to say he likes the expectations that they’re applying everything fair and equally. Signs noted he respects Commissioner Padron’s perspective and thinks it is valid but doesn’t feel like what's here is overly aggressive and does trust the Commission and staff to do the best they can keep it equitable and fair. Hensch reiterated the advantage of rules is that they prevent discrimination, because if they don't have rules then one person gets six minutes, but another only gets two minutes. Craig agrees but acknowledges that Commissioner Padron’s point about discrimination often happens in the way the rules are applied, that someone who's up there can intimidate by who they are but she acknowledged Chairperson Hensch does not let them, she can just see how it could happen. Chairperson Hensch does a very good job and she personally appreciates that it is according to the bylaws, they could rightfully put a limit and say public input is only for an hour, but they have never done that, they let everyone talk, the way it is applied is as important as the rule and there are a lot of rules out there that don't get applied equally but she thinks this group does a good job of it, and it's a good thing. A vote was taken and the motion passed 6-1 (Padron dissenting). CONSIDERATION OF MEETING MINUTES: MARCH 1, 2023: Elliott moved to approve the meeting minutes from March 1, 2023. Townsend seconded the Planning and Zoning Commission April 5, 2023 Page 15 of 17 motion, a vote was taken and the motion passed 7-0. PLANNING AND ZONING INFORMATION: Russett stated City Council met last night and discussed the rezoning out on Mormon Trek, the land to the west of the Dane property, and the mayor took the temperature of the Council and it seemed like they were going to vote different than the Commission so they would like to have a consult, possibility on April 18. Russett wanted to see if the Commission would like to have a consult with Council and she will get them the time when she has that information. Craig asked what the concern was. Russett replied there was no discussion. Elliott stated they watched a little of the meeting and a lot more people that spoke than were at the Commission meeting. Hektoen stated the trust rallied a lot of supporters who came out to speak. Wade noted this second instance recently where there might have been a new viewpoint from the City Council versus staff and Commission on the project. He wondered if there is something that can be done for alignment or to smooth out that process because like in this case, they had a meeting on it then it sets up another meeting and while this one might not be as time sensitive, it does extend the time the developer is able to progress and time is financial. Russett doesn’t think anything really can be done. Council is the decider and they have the ultimate say, and other than eliminating the consult there isn’t another way to shorten the process. Hensch stated from his perspective they’re all appointed to represent their personal viewpoints when they're looking at the application, the Comprehensive Plan and the zoning code and their job is to make sure that it all compliant and the City Council can have all kinds of different political views that this Commission should not ever have and sometimes they will have differing opinions. On this particular one, they've been through this before and while he is respectful of their viewpoint, he just disagrees but is fine with the consultation and the more interaction with Council they can have the better. Russett will let the Commission know the date and time. Signs apologized to the Commission for missing the last two meetings. Having said that he has entered his resignation to the chair. and discovered in reading the packet today he didn't quite meet the guidelines of that requirement, but the chair has agreed to accept his resignation. Signs stated he has just found himself becoming very cynical of the process, and in particular developers, and as he left the last several meetings feeling kind of icky and not feeling good about the process and about his reaction to the process. As he stated in his letter to the chair and staff, he missed two meetings and realized in the last week or so that he didn't miss being here and was quite a change for him because he had been very passionate about this Commission. So it is just probably time for him to go. Planning and Zoning Commission April 5, 2023 Page 16 of 17 Townsend noted Signs may think he’s being cynical but what he is really doing is giving them all information from all the knowledge he has, he has been here a long time, he is in real estate so knows the ins and outs of what is going on in this area and he will be missed on this Commission. Hensch seconds those sentiments and thinks Commissioner Signs perspective is very appreciated and it's made an impact on the Commission. He encourages him to continue in public service in some other form. Signs appreciates all the kind words and would encourage there to be someone with a real estate background on this Commission, maybe it is a requirement, but if not he would encourage the Council to consider that when they look at applications. Hench wanted to mention in the last issue of Planning Magazine there was a really nice, but short, little article about habitat restoration and rewilding and then Mr. Joshua Bentley’s letter today is why he asked that question if they have ordinances regarding habitat. He wanted to bring it up because while they are in an urban area is that something they want to discuss. Elliott noted it is a lot harder to measure habitat and to measure slopes. If they want to talk about something that's going to delay a process and add considerable expense that will do it. Hensch agreed but noted when they have areas that are preserved from development it seems like they should have some criteria of how that land should be restored. Craig noted it sort of hinges with something she brought up a couple of times about when a housing development is built and there's woodlands involved and it just goes to the community association to maintain that and take care of it. Padron would also like to talk about that at some point because there is an area around where she lives and it is practically abandoned and should there be some type of penalty or charge to the HOA to take care of those spaces. Hensch agrees, he has noticed in the paper they'll periodically have a HOA statement about costs associated against the property owner for snow removal or for weeds but their not taking care of their area and the City should have the ability if an HOA is not maintaining their area to go in there and clean it up and charge the HOA. Townsend asked about the infill lot on South Gilbert and Kimbell Road and if the Commission would be seeing anything about what is going there. Russett said that would likely just be a building permit process. ADJOURNMENT: Townsend moved to adjourn, Padron seconded, a vote was taken and the motion passed 7-0. PLANNING & ZONING COMMISSION ATTENDANCE RECORD 2022-2023 7/6 8/3 9/7 10/19 11/2 11/16 12/7 12/21 1/4 1/18 2/15 3/1 4/5 CRAIG, SUSAN X X X X X X O/E X X X X X X ELLIOTT, MAGGIE X X X X X X X X X X X X X HENSCH, MIKE X X X X X X X X X X X X X NOLTE, MARK O/E O/E O/E -- -- ----- ---- ---- ---- ---- ---- ---- ---- -- PADRON, MARIA X X X X X O/E X X X X X X X SIGNS, MARK X X X X O/E O/E X X X X O/E O/E X TOWNSEND, BILLIE X X X X X X X O/E X O/E X X X WADE, CHAD --- --- --- ---X O/E X X X O/E X X X KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member From:Cole, Catherine A To:Parker Walsh Cc:Feiss, Michael; Steve Cuppy Subject:REZ23-0003 Date:Tuesday, April 4, 2023 8:27:52 AM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Parker We live at 326 Oaknoll East. Our apartment is on level two of building three. We received your letter of March 29th and would like to make the following comments for consideration in advance of the April 5th meeting. Specifically, we are concerned about the impact of increased traffic on N. Scott Blvd. The plan from Christian Retirement Services, Inc. calls for 16 additional parking spaces on the Oaknoll East property. Some ways to deal with safety concerns could include: (1) reducing the speed limit between the roundabout and North Dodge to 25 MPH (like it is on First Avenue between the roundabout and Rochester) and (2) adding a protected turn lane from N. Scott into Oaknoll East. Thank you Cathy Cole and Mike Feiss From:Mary Page To:Parker Walsh Subject:REZ23-003 rezoning application Date:Tuesday, April 4, 2023 5:28:18 PM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** I am a resident of Oaknoll East and am writing regarding the meeting to be held tomorrow, April 5. I am very much in favor of this application being approved and the process moving forward expeditiously. Residents here at Oaknoll East are currently and will continue to be good neighbors to the east side of Iowa City as we age in place here on Scott Boulevard. This is a beautiful location and the proposed addition to our campus will add to the aesthetic and overall lifestyle here. Thank you for your consideration of this rezoning request and these comments. Mary Page From:Scott McLeod To:Parker Walsh Subject:Rezoning Request submitted by Christian Retirement Services, Inc Date:Wednesday, April 5, 2023 10:23:17 AM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Mr. Walsh: We received your letter dated March 29, 2023 concerning this request for rezoning which will be considered by the Planning & Rezoning Commission this evening. We reside at Oaknoll East, 2640 N. Scott Blvd. Iowa City, IA. and support this rezoning request. Thank you. Scott and Michele McLeod From:William Matthes To:Parker Walsh Subject:REZ23-0003 Date:Monday, April 3, 2023 3:56:13 PM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Dear Mr. Walsh: I am not in favor of this application for an additional building on the property. This is a fragile area environmentally with the deep ravine. Given the problems of the current building ie. poor construction, water issues and wind issues I would be concerned that the same would occur in this project. I would be concerned about the aesthetics of the new building with the current buildings. The main oaknoll campus is an example of a grouping of buildings that are not appealing nor practical. How would access to Building 3 be impacted? Would there still be parking and easy access to the entry? Oaknoll needs to reconsider its impact on the environment in this area. I understand the need for additional units but I don't approve of its placement in a rather unstable environment. Sincerely, alicia brown-matthes Oaknoll resident From:Mary McInroy To:Parker Walsh Subject:In favor of Oaknoll East rezoning. Date:Wednesday, April 5, 2023 10:49:04 AM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. **Hello. I am a resident at Oaknoll East (OE) and am writing in favor of the proposed rezoning application to build an assisted living (AL) structure on our grounds here at Oaknoll East. The plan looks amazing to me, as it creates 16 AL units on our land parcel without drastically altering our view of trees and greenery. It will be wonderful to remain here at OE when I transition out of independent living, as here is where all my friends are, not across the river. Again, I am writing in favor of the proposal to build an AL facility at Oaknoll East, as outlined in the plans submitted. Sincerely, Mary McInroy 2640 N Scott Blvd Apt 2-32 ph 319-621-2920 From:Lucille Heitman To:Parker Walsh Subject:Oaknoll Retirement Community Rezoning Request Date:Tuesday, April 4, 2023 8:25:04 PM ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Dear Mr. Walsh, I am an Oaknoll East resident writing in support of Oaknoll's rezoning request to build a fourth building on our campus. This building would allow Oaknoll to provide assisted living services to those living on our campus who will require these services in the future as well as other Oaknoll residents. The proposed plan, as explained to us by Steve Roe, Executive Director, would not adversely impact our immediate neighbors. Since Oaknoll has been a respected organization in the Iowa City community for 57 years, I urge the Planning and Zoning Commission to approve this request. Thank you. -- Lucille Heitman Iowa City, IA Prepared By:Darian L. Nagle-Gamm; Transportation Services Director Reviewed By:Redmond Jones II; Deputy City Manager Fiscal Impact:Permits application for State and Federal transit operating and capital funds which may require matching funds. Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution to Set Public Hearing Item Number: 7.b. April 18, 2023 Resolution setting a public hearing for the May 16, 2023 City Council meeting regarding the FY2024 Iowa Department of Transportation Consolidated Transit Funding Application for Iowa City Transit. Executive Summary: The consolidated transit funding application is an annual application filed with Iowa Department of Transportation (DOT) listing capital and operating expenses for which the City seeks funding from the Iowa DOT and the Federal Transit Administration (FTA). The projects contained in the application have been programmed by Iowa City Transit for FTA Section 5307, 5310 and/or 5339 funds in FY2024. The projects will be included in the FY2024 Iowa DOT consolidated transit funding application that the Metropolitan Planning Organization of Johnson County (MPOJC) is completing and in the FY2024-2027 MPOJC Transportation Improvement Program (TIP). Iowa City Transit may not seek funding for all of the projects; however, each project needs to be listed in order to be eligible for funding. The total amount of funds being requested in the funding application is approximately $20.01 million dollars. Background / Analysis: Due to our application for and potential receipt of federal grant funds, we are required to hold a public hearing so that the public has an opportunity to comment on the funding request. This is an annual process and we must provide notice prior to the public hearing. The specific allocations for the funds being applied for are detailed below: State Transit Assistance Program: approximately $692,290 -- These are formula funds for operations awarded to the Metropolitan Planning Organization (MPO) and then distributed between Iowa City Transit, Coralville Transit and the University of Iowa -- Cambus. Federal operating assistance for transit (5307): approximately $1,900,000 -- These are funds awarded from FTA to provide operational assistance to the transit agency. From federal funds for transit in non-urbanized areas and/or for transit serving primarily elderly persons and persons with disabilities (5310): $177,523 -- These funds are awarded to Iowa City and committed to para-transit services that are contracted through a 28E Agreement with Johnson County. State-wide federal capital assistance for transit (5339): $20,034,476 -- These funds include all of the capital projects that Iowa City Transit wishes to see funded. This sum includes replacement and relocation of the transit facility, electric bus replacements and bus shelters. A local match of 15%-20% is commonly required for the award of these funds. Prepared by: Hannah Neel,Assoc.Transp. Planner,410 E.Washington St., Iowa City, IA 52240 319-356-5235 RESOLUTION NO. 23-122 Resolution setting a public hearing for the May 16, 2023 City Council Meeting regarding the FY2024 Iowa Department of Transportation Consolidated Transit Funding Application for Iowa City Transit. WHEREAS, the City of Iowa City, Iowa has undertaken to provide its residents with a public transportation system; and WHEREAS, the Iowa Department of Transportation offers financial assistance to local governmental units for their public transportation systems: and WHEREAS, this is an annual process that Iowa City undertakes, outlining federal funds requested for operating and capital expenses; and WHEREAS, the City of Iowa City wishes to apply for financial assistance as noted below and to enter into related contract(s)with the Iowa Department of Transportation. From the State Transit Assistance Program: 4.05491754% (approximately $692,290) of Formula Funds From federal operating assistance for transit: $1,900,000; From federal funds for transit in non-urbanized areas and/or for transit serving primarily elderly persons and person with disabilities: $177,523; From state-wide federal capital assistance for transit: $20,034,476; WHEREAS, a public hearing is a requirement for the application and receipt of federal funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: 1. A public hearing is hereby set for 6:00 p.m. on May 16, 2023, to be held in the Emma J. Harvat Hall, City Hall, 410 East Washington St., Iowa City, Iowa, or if said meeting is canceled at the next meeting of the City Council thereafter as posted by the City Clerk, and that the City Clerk is hereby directed to cause notice of said public hearing to be published as provided by law. Resolution No. 23-122 Page 2 Passed and approved this 18th day of April , 2023. M Y R • Approved by ATTEST: U 'Lb CITY CLERK City Attorne s Office (Jennifer Schwickerath—04/13/2023) It was moved by Taylor and seconded by Dunn the Resolution be adopted, and upon roll call there were: AYES : NAYS : ABSENT : x Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Attachments:SUB22-0019 Staff Report Packet 04-05-2023 (Zoning Map Corrected).pdf P&Z Commission Comment - Ventling 04-03-2023.pdf PZ 4.5.23 minutes SUB22-0019.pdf SUB22-0019 Resolution Item Number: 9.c. April 18, 2023 Resolution approving the preliminary plat of the Western Home GPD of Iowa City, a Resubdivision of Outlot A of St. Andrew Presbyterian Church – Part One, Iowa City, Iowa. STAFF REPORT To: Planning and Zoning Commission Item: SUB22-0019 Western Home GPD of Iowa City Prepared by: Kirk Lehmann, Associate Planner Date: April 5, 2023 GENERAL INFORMATION: Applicant: Pat O’Leary Western Home Independent Living Services, Inc. 5703 Caraway Lane Cedar Falls, IA 52246 Contact Person: Steve Long Salida Partners 319-621-3462 steve@salidaparnters.com Owner Western Home Independent Living Services, Inc. 5703 Caraway Lane Cedar Falls, IA 52246 St. Andrew Presbyterian Church 140 Gathering Place Ln Iowa City, IA 52246 Requested Action: Approval of preliminary plat Purpose: Construction of a senior living community with 35 single-family homes, 8 duplex units, 38 multi- family units, 20 townhome-style units, 1 assisted living building with approximately 32 beds, and neighborhood commercial uses Location: East of Camp Cardinal Road and north of Gathering Place Lane Location Map: 2 Size: 31.65 Acres Existing Land Use and Zoning: Undeveloped/Vacant Open Space, Medium Density Single Family Residential with a Planned Development Overlay (OPD/RS-8) Surrounding Land Use and Zoning: North: Residential; Low Density Single-Family Residential with a Planned Development Overlay (OPD/RS-5) South: Residential & Institutional; Low Density Single-Family Residential with a Planned Development Overlay (OPD/RS-5) and Low Density Multi-Family (RM-12) East: Residential; Rural Residential with a Planned Development Overlay (OPD/RR-1) West: Undeveloped/Vacant Open Space; Low Density Multi-Family with a Planned Development Overlay (OPD/RM-12) Comprehensive Plan: Residential, 2-8 Dwelling Units Per Acre District Plan: None Neighborhood Open Space District: NW1 Public Meeting Notification: Property owners and some occupants within 500’ of the subject property received notification of the Planning and Zoning Commission public meeting. A notice of subdivision sign was posted on the site at Gathering Place Lane. File Date: February 9, 2023 45 Day Limitation Period Waived BACKGROUND INFORMATION: The applicant, Western Home Independent Living Services, is requesting approval of a preliminary plat of Western Home GPD of Iowa City (Attachment 3), 31.65 acres located east of Camp Cardinal Road and north of Gathering Place Lane. The preliminary plat contains 3 lots and 1 outlot to allow construction of a senior living community with an anticipated 35 single-family, 8 duplex, 38 multi- family, and 20 townhome-style multi-family units, along with an assisted living facility expected to have 32 beds. It may also include small neighborhood commercial uses. The preliminary plat also shows extensions of Deer Creek Road and Camp Cardinal Road, improvements to Camp Cardinal Road, and the creation of Camille Court, Clara Court, and Timothy Court. Most of the property is already owned by the applicant, though staff anticipates they will apply for a boundary line adjustment to allow acquisition of a small portion still owned by St. Andrew Presbyterian Church to accommodate construction of a temporary turnaround. Boundary line adjustments are administratively reviewed and approved. The subject property was rezoned to Medium Density Single-Family Residential with a Planned Development Overlay (OPD/RS-8) on February 7, 2023 (REZ22-0012), subject to the following conditions: 3 a. Prior to issuance of a building permit, Owner shall contribute 50% of the cost of upgrading Camp Cardinal Road to City standards from Gathering Place Lane to the future extension of Deer Creek Road in accordance with 15-3-2 of the Iowa City Code. This contribution shall include 50% of the cost of construction of the traffic circle at the intersection of Deer Creek Road and Camp Cardinal Road. b. In the event Owner desires to construct on-street angled parking, contemporaneous with City approval of construction drawings showing the same, Owner shall execute an agreement in a form approved by the City Attorney obligating the Owner to maintain such spaces. The preliminary Planned Development Overlay Plan and Sensitive Areas Development Plan (SADP) were approved as part of the rezoning. The site contains slopes, woodlands, a stream corridor, and wetlands. The preliminary plat includes elements of the preliminary SADP including the construction area limits to preserve said features and the location of conservation easements. Nearby property owners and occupants were notified of the proposed preliminary plat. The applicant conducted a Good Neighbor meeting at St. Andrews Presbyterian Church on August 25, 2022 as part of the rezoning. ANALYSIS: Compliance with Comprehensive Plan: The Northwest Planning District does not have a district plan, so the proposed development is reviewed solely based on the IC2030 Comprehensive Plan. The Future Land Use Map of IC2030 identifies the subject property as appropriate for residential development at a density of 2-8 dwelling units per acre. The applicant proposes a density of 3.7 dwelling units per net acre which is consistent with the vision in the plan, even when including the additional density provided by the assisted living facility. IC2030 encourages a diversity of housing options in all neighborhoods and compact, efficient development that is contiguous and connected to existing neighborhoods. The proposed development implements these goals by focusing on an undeveloped infill parcel in Iowa City. In addition, it provides a full range of housing types, including single-family homes, duplexes, townhomes, multi-family units, and assisted group living. The Comprehensive Plan also encourages pedestrian-oriented development and attractive and functional streetscapes that make it safe, convenient, and comfortable to walk. The proposed plan includes sidewalks along all proposed streets and connects into the broader pedestrian network along Deer Creek Road and Camp Cardinal Boulevard. Furthermore, the centrally located clubhouse and commercial uses provide destinations within walking distance of homes. With regards to street connectivity, the proposed development extends streets to create a coherent network for the southern portion of the site, though connectivity on the northern portion of the site is limited due to sensitive areas and existing neighborhood constraints. Specifically, connecting to other existing neighborhoods is not possible due to the layout of neighborhoods to the east and north, and the location of sensitive features on the property justify the use of cul- de-sacs though the plan generally discourages their use. Meanwhile, the proposed stub to the east maintains the possibility for a future connection should the eastern portion of the St. Andrew’s property develop. The proposed layout of the development also helps preserve the property’s natural areas which aligns with goals related to protection of sensitive features. Subdivision Design: The proposed subdivision contains 3 lots and 1 outlot to allow the construction of a senior living community with an anticipated 35 single-family, 8 duplex, 38 multi- 4 family, and 20 townhome-style multi-family units, along with some neighborhood commercial uses and an assisted living building with approximately 32 beds. In general, more intensive uses are located to the south and west, while less intensive uses are located to the north and east which provides a good transition with surrounding properties. The layout of the proposed development was approved during the Planned Development Overlay rezoning. The preliminary plat proposes improving Camp Cardinal Road to City standards and extending Deer Creek Road to Gathering Place Lane. This block would contain the assisted living facility with approximately 32 beds and 20 townhome-style multi-family units with a shared alley and parking. From the intersection of Deer Creek Road and Gathering Place Lane, the plat proposes to further extend Gathering Place Lane through the subject property in an arc to the east, terminating at a temporary turnaround on the north side of the St. Andrew Presbyterian Church property. The multifamily buildings (which include 38 multi-family units, a clubhouse, and neighborhood commercial uses) are towards the west of the extension of Gathering Place Lane. The plat also proposes the creation of two cul-de-sacs (Camille Court and Clara Court) and a loop street (Timothy Court) north of the extension with 8 duplex units at corner locations and the remainder of the street frontage consisting of single-family units. Initially, the proposed development will only have access to Camp Cardinal Boulevard from Camp Cardinal Road. This access point is built to collector standards from Camp Cardinal Boulevard to Gathering Place Lane, at which point Gathering Place Lane is built to collector standards to the proposed Deer Creek Road extension. As a condition of the rezoning, the owner must contribute 50 percent of the cost of upgrading Camp Cardinal Road from Gathering Place Lane to the future extension Deer Creek Road to City local street standards prior to issuance of a building permit, including the cost of building the traffic circle at the intersection of Deer Creek Road and Camp Cardinal Road which will serve as a traffic calming device. Secondary access to the southern portion of the site is anticipated following the extension of Deer Creek Road from Camp Cardinal Boulevard to the west as part of the Cardinal Heights subdivision. However, the northern portion of the site will only have a single point of access for the foreseeable future due to sensitive areas and existing neighborhood layouts. Additional development would need to occur on the eastern portion of the St. Andrew’s property to provide secondary access for the full property. To facilitate future connectivity, the plat includes a temporary turnaround with a stub at the terminus of Gathering Place Lane. Finally, the plat includes diagonal on-street parking in front of the multi-family and mixed use buildings. Because the Public Works Department does not have a practice of maintaining such parking spaces, the rezoning includes a condition that the owner must agree to maintain them in a form approved by the City Attorney as part of the approval of construction drawings which are reviewed during the final plat process. Environmentally Sensitive Areas: A preliminary Sensitive Areas Development Plan (SADP) was approved at the time of the rezoning and was required due to the presence of regulated wetlands, a stream corridor, slopes, and woodlands. The preliminary SADP included a Level II Sensitive Areas Review due to the proposed reduction of wetland buffers. The preliminary plat contains elements of the approved preliminary SADP, including construction area limits and conservation easements which helps protect the sensitive features on the property. Neighborhood Open Space: According to section 14-5K of the City code, dedication of public open space or fee in lieu of land dedication is addressed at the time of final platting for residential subdivisions. Based on the 31.2 acres of RS-8 zoning, the developer would be required to dedicate approximately 1.08 acres to the City or pay a fee in-lieu of land dedication. The portion to be purchased through a boundary line adjustment on the St. Andrew property will be an outlot without residential uses. The applicant has requested to pay a fee in-lieu of a public open space 5 dedication, which is estimated at approximately $140,467 based on a recent appraisal. Stormwater Management: The plat includes two new stormwater basins located northeast of the intersection of Camp Cardinal Road and Gathering Place Lane, and south of the extension of Gathering Place Lane. These will discharge into two existing basins on the St. Andrew’s site. Areas not captured by the stormwater basins will discharge offsite as they currently do in the undeveloped condition. Public Works has reviewed and approved the preliminary storm sewer design. Water Distribution System: The property can be serviced by water, but the private water service line must be looped from the termination of Gathering Place Lane extension to provide redundancy for Lots 1 and 2 and to reduce issues associated with water stagnation and increase firefighting capacity. The applicant has opted to include a portion of this private water easement on the subject property with portions of it running through the St. Andrew property. The applicant has reached an agreement with St. Andrew regarding required easements. Public Works has reviewed and approved the proposed route for the water service loop. In addition, there may be a need to extend the water service past the northernmost home on Camille Court, to be determined during the review of construction drawings as part of the final plat process. Infrastructure Fees: Required fees include a water main extension fee of $503.57 per acre for 31.2 acres and a sanitary sewer tap-on fees of $570.98 per acre for 15.0 acres and $2,017.44 per acre for 16.2 acres. The northern and the southern portions of the property are in different subareas and therefore have different tap-on fees. Infrastructure fees have already been paid for the portion to be purchased through a boundary line adjustment on the St. Andrew property. NEXT STEPS: Upon recommendation from the Planning and Zoning Commission, the preliminary plat will be considered by the City Council. If approved, a final plat with construction drawings will be required, including the maintenance agreement for angled, on-street parking required as a condition of the rezoning. That would be followed by site plan and building permit applications. Prior to issuance of a building permit, the applicant must also pay 50% of the cost of upgrading Camp Cardinal Road to City standards, which is the other condition of rezoning. STAFF RECOMMENDATION: Staff recommends approval of SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. ATTACHMENTS: 1.Location Map 2.Zoning Map 3.Preliminary Plat Approved by: _________________________________________________ Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services Deer Creek Rd Kennedy PkwyPrest o n L n Hi g h w a y 2 1 8 M e l r o s e A v e to 2 1 8 N b B u t t e r n u t C tMeadow larkDr2 1 8 S b t oMel r o s e A v e C a m p C a r d in a lRdCamp Ca r d i n a l R dBurr Oak Ct S h a g bark Ct Gathering Plac e L n Ry a n C tB u t t e r n u t L n C a m p C ardinalBlvd An application submitted by Western Home Independent Living Services, Inc. for a preliminary plat of approximately 31.65 acres of property located east of Camp Cardinal Road and north of Gathering Place Lane. µSUB22-0019 Western Home GPD of Iowa City Preliminary Plat Prepared By: Emani Brinkman Date Prepared: February 2023 0 0.07 0.130.03 Miles RM-12 RM-12 CC-2 RS8 RS5 RR1 RS5 RR1 RR1 ID-RS RM-12 OPD OPD OPD OPD OPD OPD OPD OPD OPD WWWWWWW W W W WWWWWW W W W WWWWWWWWWWWWWWWW W W W W W W W W W LOT 3 4.23 Ac 184,105 SF LOT 1 7.18 Ac 312,920 SF LOT 2 15.57 Ac 678,308 SF ROW 4.51 Ac SSSS SSSS SS SSSSSSSSSS SS SSSSSSSS SS SS SS SS SS SS SSSSSS SS SS SS SS SS SS SSSSSSSSSSSSSSSSSSSSSSW W W W W W W S S S S S S S S S S SSSSSSSSSSSSSS SS SS ST S T S T S T STSTSTSTSTSTSTSTSTSTS T S T ST ST ST ST ST ST ST STSTST STST ST STSTST S T STSTSTSTSTSTST ST ST ST ST ST ST STSTSTW W W W W W W W W W W W W W W W W W W W W W WWWWWWWWWST STSTSTW ST ST ST STSTSTSTSTST ST ST ST ST S T S T WWWWWWWWWWWWWWW ST STSTSTSTSTST OUTLOT Z 0.16 Ac STSTSTSTSTST ST ST ST ST STSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSST ST ST L1 L5L4L3L2 LINE TABLE LINE ID L1 L2 L3 L4 L5 LENGTH 154.78 140.00 140.00 140.00 140.00 BEARING S88°43'02"W S88°43'02"W S01°16'58"E N88°43'02"E N01°16'58"W 1 OF 2ISSUED DATE:REVISION: PRELIMINARY PLAT & PRELIMINARY SENSITIVE AREAS DEVELOPMENT PLAN MIN.MIN.MIN.REQUIRED SETBACKS ZONING FRONTAGE WIDTH AREA F S R OPD / RS-8 40'45'5,000 SF 15 5 20 OPD / RS-8 - MULTI-FAMILY 20 10 20 SETBACK NOTES: GARAGES MUST BE SETBACK AT LEAST 25' FROM PROPERTY LINE REGARDLESS OF FRONT BUILDING SETBACK PARCEL INTENDED USE ROW RIGHT-OF-WAY DEDICATED TO THE CITY FOR ROADWAY IMPROVEMENTS AREAS WITHIN THE TRAFFIC CIRCLE TO BE MAINTAINED BY THE HOA REFER TO PAGE 2 FOR GRADING PLAN AND STREET SECTIONS. PRELIMINARY PLAT LEGAL DESCRIPTION APPROVED BY THE CITY OF IOWA CITY, IOWA CITY CLERK DATE CITY APPROVAL AUDITOR'S PARCEL 95063 AS RECORDED IN BOOK 35, PAGE 220 OF THE JOHNSON COUNTY RECORDER'S OFFICE, IN THE SOUTHWEST ¼ OF THE NORTHWEST FRACTIONAL ¼ AND THE NORTHWEST ¼ OF THE SOUTHWEST FRACTIONAL ¼ OF SECTION 7, TOWNSHIP 79 NORTH, RANGE 6 WEST OF THE 5TH P.M., CITY OF IOWA CITY, JOHNSON COUNTY, IOWA. AND OUTLOT A OF ST. ANDREW PRESBYTERIAN CHURCH - PART ONE, AS RECORDED IN BOOK 60, PAGE 138 OF THE JOHNSON COUNTY RECORDER'S OFFICE, IN THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA. AND A PORTION OF LOT 1 OF ST. ANDREW PRESBYTERIAN CHURCH - PART ONE, AS RECORDED IN BOOK 60, PAGE 138 OF THE JOHNSON COUNTY RECORDER'S OFFICE, IN THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA MORE PARTICULARLY DESCRIBED AS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 1; THENCE S88°43'02"W, 154.78 FEET ALONG THE NORTH LINE OF SAID LOT 1 TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID NORTH LINE S88°43'02"W, 140.00 FEET; THENCE S01°16'58"E, 140.00 FEET; THENCE N88°43'02'E, 140.00 FEET; THENCE N01°16'58"W, 140.00 FEET TO THE POINT OF BEGINNING. EXCEPT AUDITOR'S PARCEL 99051 AS RECORDING BOOK 41, PAGE 114, OF THE JOHNSON COUNTY RECORDER'S OFFICE, IN THE SOUTHWEST ¼ OF THE NORTHWEST FRACTIONAL ¼ AND THE NORTHWEST ¼ OF THE SOUTHWEST FRACTIONAL ¼ OF SECTION 7, TOWNSHIP 79 NORTH, RANGE 6 WEST OF THE 5TH P.M., CITY OF IOWA CITY, JOHNSON COUNTY, IOWA. DESCRIBED AREA CONTAINS 31.65 ACRES AND IS SUBJECT TO EASEMENTS AND OTHER RESTRICTIONS OF RECORD. APPLICANT INFORMATION WESTERN HOME GPD OF IOWA CITY IOWA CITY, IOWA ZONING AND INTENDED LOT USES SHEET NUMBER:PROJECT NO: ISSUED DATE: PROJECT MANAGER: REVISION: PROJECT NAME: CLIENT: SHEET NAME: ENGINEER: REVISION LOG: REV DESCRIPTION DATE©--CITY SUBMITTAL #1 02-08-23 1025 WELCH B 03-30-2023 WESTERN HOME GPD OF IOWA CITY WESTERN HOME INDEPENDENT LIVING SERVICES, INC. A CITY SUBMITTAL #2 03-06-23 B CITY SUBMITTAL #3 03-30-23BUTTERNUT LANEPLAT BOUNDARY CONSTRUCTION AREA LIMITS CONSERVATION EASEMENT STREAM CORRIDOR LEGEND: PROPERTY OWNER WESTERN HOME INDEPENDENT LIVING SERVICE, INC 5703 CARAWAY LANE CEDAR FALLS, IA 50613 ST ANDREW PRESBYTERIAN CHURCH 140 GATHERING PLACE LANE IOWA CITY, IA 52246 DEVELOPER SALIDA PARTNERS STEVE LONG 308 E BURLINGTON #403 IOWA CITY, IA 52240 (319) 621-3462 WESTERN HOME SERVICES, INC 5703 CARAWAY LANE CEDAR FALLS, IA 50613 CIVIL ENGINEER WELCH DESIGN AND DEVELOPMENT MICHAEL J. WELCH, PE PO BOX 679 NORTH LIBERTY, IA 52317 (319) 214-7501 GATHERING PLACE LNDEER CREEK RD CAMP CARDINAL ROADCAMI L LE COURTCLARA COURTTIMOTHY C OURT GA TH E R ING P L A C E L AN E SOUTH STORM WATER BASIN PROPOSED CENTRAL STORM WATER BASIN60' 78' 50' 50' 1 0 0 '60'PRIVATE 20' WATER MAIN EASEMENTPRIVATE 20' WATER MAIN EASEMENT BUFFER 30' CARDI N A L C R E E K 50' =1" WHEN PRINTED ON 22"x34" SHEET 0 50 100 200150 100' A RESUBDIVISION OF OUTLOT A OF ST. ANDREW PRESBYTERIAN CHURCH - PART ONE LOCATION MAP PROJECT AREA ST ANDREWS CARDINAL VILLAS CAMP CARDINAL BLVD KENNEDY PARKWAY BUTTERNU T L A N E SHAG BARK CT CAMP CARDINAL BLVDPRES T O N L A N E RYAN CT GATHERING PLACECAMP CARDINAL RDCAMPCARDINAL ROADMEADOWLARKROBIN RD U S 2 1 8 S B U S 2 1 8 N B 20' 15' 25' STORM SEWER EASEMENT STORM SEWER EASEMENT 20' STORM SEWER EASEMENT 20' 60' DEER CREEK ROAD EXTENSION BY CARDINAL HEIGHTS DEVELOPER CAMP CARDINAL ROAD EXTENSION AND TRAFFIC CIRCLE TO BE COMPLETED VIA CITY PROJECT STORM WATER MANAGEMENT EASEMENT SANITARY SEWER EASEMENT EXISTING PIPELINE EASEMENT BK341 PG248 EXISTING PIPELINE EASEMENT BK341 PG248 CARDINA L C R E E K MAIL BOX CLUSTER R15' R 1 5 ' R 3 9 ' R15' R39' TEMPORARY GRADING EASEMENT 140'140'TEMPORARY GRADING EASEMENT 140' x 140' (19,600 SF) TO BE ACQUIRED FROM ST ANDREWS R60' R39' STORM SEWER EASEMENT 20' DRAINAGE EASEMENT NE CORNER LOT 1 ST ANDREW PRESBYTERIAN CHURCH - PART ONE WWWWWWW W W W WWWWWW W W W WWWWWWWWWWWWWWWW W W W W W W W W W LOT 3 4.23 Ac 184,105 SF LOT 1 7.18 Ac 312,920 SF LOT 2 15.57 Ac 678,308 SF ROW 4.51 Ac SSSS SSSS SS SSSSSSSSSS SS SSSSSSSS SS SS SS SS SS SS SSSSSS SS SS SS SS SS SS SSSSSSSSSSSSSSSSSSSSSSW W W W W W W S S S S S S S S S S SSSSSSSSSSSSSS SS SS ST S T S T S T STSTSTSTSTSTSTSTSTSTS T S T ST ST ST ST ST ST ST STSTST STST ST STSTST S T STSTSTSTSTSTST ST ST ST ST ST ST STSTSTW W W W W W W W W W W W W W W W W W W W W W W . 0.45 Ac 19,600 SFWWWWWWWWSTSTSTSTW ST ST ST STSTSTSTSTST ST ST ST ST S T S T WWWWWWWWWWWWWWW ST STSTSTSTSTST OUTLOT Z 0.16 Ac STSTSTSTSTST ST ST ST ST STSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSST ST ST 760 760740 750750 760 740750760770 750760730 740 740 76077075076077 0760 770760770740750760770 =1" WHEN PRINTED ON 22"x34" SHEET 0 50 100 200150 100' 2 OF 2ISSUED DATE:REVISION: PRELIMINARY GRADING PLAN AND CONSTRUCTION DETAILS 5' WIDE UNLESS NOTED OTHERWISE PCC SIDEWALK 2 4"6"60' ROW, 26' B-B TYPICAL STREET SECTION1C 60' RIGHT-OF-WAY 6'10'14' 1 3 POINT JOINT 28' BACK-TO-BACK16' 5'1' 7" PCC 6" GRANULAR SUBBASE 6" STANDARD CURB CONSTRUCTION AREA LIMITS EROSION CONTROL PERIMETER MEASURE* EROSION CONTROL INLET PROTECTION* * PROVIDE SILT FENCE ALONG CONSTRUCTION AREA LIMITS WHERE RUNOFF WILL FLOW TOWARD WETLAND AND WETLAND BUFFER AREAS AND WHERE RUNOFF COULD LEAVE THE SITE. INLET PROTECTION TO BE INSTALLED AFTER STORM SEWERS INLETS ARE CONSTRUCTED. DETAILED DESIGN OF THESE MEASURES ALONG WITH SLOPE STABILITY MEASURES, SOIL STOCK PILE LOCATIONS, TEMPORARY SEDIMENT BASINS, MATERIAL STORAGE AREAS, AND OTHER CONSTRUCTION-RELATED ITEMS TO ACCOMPANY CONSTRUCTION DRAWINGS AND FINAL SADP LEGEND: GRADING PLAN POROUS BACKFILL 6" SUBDRAIN 30" MIN. 2.00%2.00% TEMPORARY CONSTRUCTION ACCESS, MATERIAL STORAGE, JOB TRAILER, AND OTHER NECESSARY CONTRACTOR FACILITIES TO BE LOCATED IN THIS AREA. FINAL CONFIGURATION TO BE DETERMINED DURING DEVELOPMENT OF CONSTRUCTION DOCUMENTS. 100' ROW, 22' B-B LOOP STREET SECTION1D 50' TO CENTER OF MEDIAN (100' RIGHT-OF-WAY) 6'5'11' 22' BACK-TO-BACK17' (34' MEDIAN WIDTH) 5'1' 7" PCC 6" GRANULAR SUBBASE 6" STD. CURB PCC SIDEWALK POROUS BACKFILL 6" SUBDRAIN 30" MIN. 2.00%2.00%MID-LINEPROPERLY PREPARED SUBGRADE PCC 78' RIGHT-OF-WAY 6'20'13' 1 3 POINT JOINT 26' BACK-TO-BACK26' 5'1' 7" PCC 6" GRANULAR SUBBASE 6" STANDARD CURB POROUS BACKFILL 6" SUBDRAIN 30" MIN. 2.00%2.00% 78' ROW, 26' B-B TYPICAL STREET SECTION1A 1.50% 4.00% 1.50%4.00% 50' ROW, 22' B-B LOW VOLUME STREET SECTION1E 50' RIGHT-OF-WAY 6'8'11' 22' BACK-TO-BACK14' 5'1' 6" GRANULAR SUBBASE 6" STD. CURB POROUS BACKFILL 6" SUBDRAIN 30" MIN. 2.00%2.00% PCC SIDEWALK PCC SIDEWALKPCC SIDEWALK PCC SIDEWALK PCC SIDEWALK PCC SIDEWALK PRIVATE 20' WATER MAIN EASEMENT GATHERING PLACE LNDEER CREEK RD CAMP CARDINAL ROADCAMI L LE COURTCLARA COURTTIMOTHY C OURT GA TH E R ING P L A C E L AN E PROPOSED CENTRAL STORM WATER BASIN SHEET NUMBER:PROJECT NO: ISSUED DATE: PROJECT MANAGER: REVISION: PROJECT NAME: CLIENT: SHEET NAME: ENGINEER: REVISION LOG: REV DESCRIPTION DATE©--CITY SUBMITTAL #1 02-08-23 1025 WELCH B 03-22-2023 WESTERN HOME GPD OF IOWA CITY WESTERN HOME INDEPENDENT LIVING SERVICES, INC. A CITY SUBMITTAL #2 03-06-23 B CITY SUBMITTAL #3 03-22-23 7" PCC1.50%PRIVATE 20' WATER MAIN EASEMENT SOUTH STORM WATER BASIN CAMP CARDINAL ROAD STORM SEWER WILL DISHCARGE INTO THIS BASIN 60' ROW, 26' B-B TYPICAL STREET SECTION1B 60' RIGHT-OF-WAY 6'11'13' 1 3 POINT JOINT 26' BACK-TO-BACK17' 5'1' 7" PCC 6" GRANULAR SUBBASE 6" STANDARD CURB POROUS BACKFILL 6" SUBDRAIN 30" MIN. 2.00%2.00% 1.50%4.00% PCC SIDEWALKPCC SIDEWALK PRIVATE 20' WATER MAIN EASEMENT A.1 A.1 A.1 A.1 A.1 A.1 STORM SEWER INTAKES WILL BE DESIGNED TO CAPTURE THE RUNOFF EXPECTED DURING A 100-YEAR DESIGN STORM AND CONVEY THE RUNOFF TO ONE OF THE STORM WATER BASINS. WATER MAIN AND STORM SEWER TO BE DESIGNED SUCH THAT WATER MAIN PASSES OVER THE STORM SEWER. KEY NOTES A.1 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% A.2 A.2 1 Kirk Lehmann From:Ventling, Joshua <joshua-ventling@uiowa.edu> Sent:Thursday, March 30, 2023 7:46 PM To:Kirk Lehmann Subject:RE: SUB22-0019 ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Hello Kirk, My name is Josh Ventling and I live at 80 Gathering Place Lane and I recently received the notification for application for the land just north of my apartment building and adjacent to St. Andrews Presbyterian Church. I won't be able to make it to the public comment period, so I thought I would reach out to you via email so that you may include my comment at the meeting. Although I am happy to see that there is going to be a mix of units and varying densities of property in the application (rather than it being a strictly single-family home subdivision with large lots), I want to make sure that the developers know how crucial this area of land is and are carefully considering how to best use the space. The area is very important to native wildlife and vegetation. There are many deer, turkeys, coyotes, red tailed hawks, owls and more that use the area to live and hunt in the neighboring prairie and forests. I am urging you to try and find any way you can in your design to scale back when possible to conserve the habitat. If you can't, then if feasible, please consider increasing the densities of the buildings you are offering and minimize to amount of disruption to the land during the construction phase. Thank you. Josh Ventling MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION APRIL 5, 2023 – 6:00 PM – FORMAL MEETING EMMA J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Susan Craig, Maggie Elliott, Mike Hensch, Maria Padron, Mark Signs, Billie Townsend, Chad Wade MEMBERS ABSENT: STAFF PRESENT: Sara Hektoen, Kirk Lehmann, Anne Russett, Parker Walsh OTHERS PRESENT: Mike Welch, Jon Marner, Brian Boelk, Jack Topp, Steve Roe RECOMMENDATIONS TO COUNCIL: By a vote of 7-0 the Commission recommends approval of SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. By a vote of 7-0 the Commission recommends approval of SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial subdivision, an 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. By a vote of 6-0 (Elliott recused) the Commission recommends approval of REZ23- 0003, an application for a rezoning of approximately 10.26 acres of land from Low Density Multi-Family Zone with a Planned Development Overlay OPD/RM-12) to OPD/RM-12 in order to amend the approved Planned Development Overlay Plan and Sensitive Areas Development Plan. By a vote of 6-1 (Padron dissenting) the Commission recommends approval of the bylaw amendments as presented in the agenda packet. CALL TO ORDER: Hensch called the meeting to order at 6:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. CASE NO. SUB22-0019: Location: East of Camp Cardinal Road and north of Gathering Place Lane An application for a preliminary plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing three lots and one outlet to accommodate 35 single-family units, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living building, and neighborhood commercial uses. Planning and Zoning Commission April 5, 2023 Page 2 of 17 Lehmann began the staff report with an ariel map noting it's one of the large undeveloped areas east of 218 that's remaining on the west side of the river. He reminded the Commission that this area came before them as a rezoning recently and this is now the preliminary plat aspect of that. Per the preliminary plat, there are single family homes in the north and east, some multifamily uses and a church to the south, and then some undeveloped land to the west that was recently subdivided into the Cardinal Heights subdivision. In terms of zoning, Lehmann noted there was an error in the zoning map in the agenda packet as there's been some recent rezonings that weren't reflected in that map so he shared an updated rezoning exhibit with the Commission. Lehmann stated the north and south areas are zoned RS-5/OPD, which is low density singlefamily residential with a planned development overlay. The south also has some low density multifamily residential, in addition to the single family residential. To the east is some rural residential (RR1) and to the west it's predominantly low density multi residential (RM-12) and a lot of the areas have a planned development overlay (OPD) because there's significant sensitive features within the area. Lehmann stated the purpose of this preliminary plat is to allow a senior housing project which would have a mix of housing types, as well as a mix of uses, including some commercial uses. The rezoning came before this Commission and was approved on February 7, where it was rezoned to medium density single family residential with the planned development overlay. As part of that rezoning it had two conditions, one is that the owner must contribute to 50% of the upgrading of Camp Cardinal Road between Gathering Place Lane and the extension of Deer Creek Road, and that does include the cost of the traffic circle that would be part of that. The second condition is that there is on street parking and that they would have to maintain that as well. With the rezoning, because of the sensitive features, there was a preliminary planned development overlay plan and a sensitive areas development plan that were approved as part of that rezoning. Lehmann did also note that the applicant does own most of the subject property, but there is a small portion that is still owned by St. Andrew Presbyterian Church so staff does anticipate a future boundary line adjustment that would allow the acquisition of that piece of property. A boundary line adjustment is an administrative process, but then that would be incorporated into the final plat and it platted through that methodology. In terms of the actual layout of the preliminary plat, it is 31.65 acres and would have three lots and one outlot for that senior living use. It has a range of different housing types including some single-family units, duplex units, some larger multifamily units and townhome style multifamily units, and then an assisted living facility. In addition there are some small scale neighborhood commercial uses and Lehmann pointed on the plat the three lots where those would all be located and explained it's not platting off individual lots, the land would be commonly owned, as a condo or under a single ownership. The outlot and the portion expected to be added into this project with the boundary line adjustment is the small roundabout terminus at Gathering Place Lane to the east. In addition, as far as road networks, there are extensions of Deer Creek Road and Camp Cardinal Road that are incorporated as part of this as well as the improvement of Camp Cardinal Road discussed in the rezoning condition. There are also two cul-de-sacs and one loop street included in the plat. Planning and Zoning Commission April 5, 2023 Page 3 of 17 With regards to consistency with the Comprehensive Plan, Lehmann explained there is no district plan for this area, which is the Northwest Planning District, but the Comprehensive Plan shows it as eight dwelling units an acre residential and it is approximately 3.7 dwelling units per acre as proposed. The proposal also meets a number of different goals in the Comprehensive Plan that are enumerated in the staff report and includes things like a diversity of housing types, adding connections to existing neighborhoods to the extent possible, including street connectivity, it is an infill lot so it's a contiguous neighborhood and tries to be a pedestrian oriented development with sidewalks and some neighborhood commercial destinations. The plan also preserves sensitive features through its sensitive areas development plan. In terms of the design of the subdivision, it very closely follows what was in the OPD plan that was approved previously with more intense uses to the south and west, and less intensity to the north and east, which is similar to the surrounding uses. In terms of access, the primary access would be from Camp Cardinal Boulevard via Camp Cardinal Road, and it would be a single point of access at the beginning but they’re expecting secondary access as Deer Creek Road is extended over to Camp Cardinal Boulevard again in the future. That secondary access would occur as part of the Cardinal Heights subdivision that was recently approved. Lehmann next discussed that the plat includes some on-street diagonal parking, which is a bit unusual because the City isn't really geared to handle that kind of maintenance. A condition of the rezoning was that the developers would need to maintain those diagonal on-street spaces. Also with the Gathering Place Lane extension, it does terminate at the St. Andrew property with a temporary turnaround but it does allow for future connectivity should the east portion of the St Andrew property to the south develop. Lehmann next reviewed the sensitive areas development plan that was approved at the time of the rezoning. It was required due to wetlands, woodlands, a stream corridor and regulated slopes and it was a level two sensitive areas review which is why it came before this Commission. Lehmann showed an image of the woodlands, stream corridors, wetland buffers and regulated slopes and he pointed out the construction limits and noted the preliminary plat does include elements of the sensitive areas development plan, including those construction limits, in addition to the conservation easement. Regarding neighborhood open space, the City requires a dedication of open space or fee in lieu of land dedication at the time of preliminary platting for residential subdivisions and it's based on the needs generated by the proposed residential developments. Western Home has requested a fee in lieu of public open space in this case and that amount is equivalent to 1.08 acres of dedication, which based on a recent appraisal is approximately $140,000, so that is the anticipated fee that would be dealt with at the time of final platting. With regards to stormwater management, Lehmann explained there are two new stormwater basins that are proposed, one is in the southwest corner of the plat near the intersection of Camp Cardinal Road and Gathering Place Lane. The other is in the arc of Gathering Place Lane to the south and both would connect into existing basins on the St Andrew's site. Public Works has reviewed and approved those preliminary stormwater plans but those would be finalized at the time of final platting with other construction documentation. With regards to the water distribution system, the property can be serviced by water but because there is a relatively large cul-de-sac until there's future connectivity along Gathering Place Lane the City is requiring that be looped in Planning and Zoning Commission April 5, 2023 Page 4 of 17 order to provide redundancy from water supply and some other benefits like ensuring water pressure and things of that nature. The plat does show a private water easement that runs along the south edge of this property and also runs partially in St. Andrew’s property, but Public Works has reviewed those and believe that those look like adequate locations. Staff understands that there has been an agreement reached with St. Andrew’s to allow that to occur, but that will again be finalized at final platting. Finally, there are some anticipated infrastructure fees as well including water main extension fees and sanitary sewer tap on fees. Finally, Lehmann wanted to mention staff received some correspondence, specifically from a Mr Bentley, who wanted to make sure that developers know the area is important to native wildlife and vegetation and also encourages scaling back where possible to conserve habitat or increased building density to minimize disruption to land during construction. Staff recommends approval of SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. Next steps would be upon recommendation from the Planning and Zoning Commission, this item will be considered by Council at an April meeting and following that would be final plat approval by Council. Staff will review the final sensitive areas development plan, site plan review, and the building permit review. {Commissioner Wade joined the meeting during the staff report} Padron asked would the development be responsible for maintaining the stormwater management system. Lehmann confirmed they would also be required to maintain that stormwater basin. Hensch opened the public hearing. Mike Welch (Welch design and development) is here on behalf of Western Home Independent Living Services. He noted regarding preserving areas and habitat when they did the concept plan and rezoning they noted the area at the south side of Gathering Place Lane between the back of the single family homes and the stormwater detention basin is pretty steep with a 30-35 foot change in elevation. They are working with a local ecological consultant and looking at doing native plantings and some things to protect those slopes and also avoid having just a big area of lawn that needs to be maintained. In addition to preserving and protecting those wetlands as far as if restoration and managing that that fails, there's usually multiple owners but this is an opportunity to address that differently since there is just one owner. Hensch asked if the property has been acquired in the southeast corner. Welsh stated there's a purchase agreement in place and they are just waiting on the boundary adjustment. Hensch asked if currently there are any zoning ordinances regarding wildlife habitat or restoration in a wildlife reserve. Russett replied the sensitive areas ordinance acts as a proxy for Planning and Zoning Commission April 5, 2023 Page 5 of 17 that type of thing. Hensch closed the public hearing. Elliott moves to approve SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. Townsend seconded the motion. Townsend asked about the final plat for Cardinal Heights subdivision and when that was approved and if it would be done soon or can this development still need to move forward with developing that infrastructure and moving forward with developing their project. Russett is unsure what the timeline is for the Cardinal Heights subdivision. A vote was taken and the motion passed 7-0. CASE NO. SUB23-0002: Location: Southwest corner of Slothower Road and Melrose Avenue/lWV Road SW An application for a preliminary plat for Melrose Commercial Park, a 62.22-acre commercial subdivision containing eight lots. Russett began the staff report with an aerial of the project site that’s located at the southwest corner of Melrose Avenue and Slothower Road. To the east is the Johnson County Poor Farm and to the south and to the north is mostly in unincorporated Johnson County. The zoning map shows the subject property is zoned intensive commercial, and the lane to the east is zoned public. In terms of background, in 2021 there was a Comprehensive Plan Amendment that came before the Commission as well as an annexation and rezoning to intensive commercial that was approved by City Council. Russett did note there were several conditions associated with that rezoning, one was the creation of a vegetative buffer easement at the southern end of the property, dedication of right-of-way along Slothower Road, and the owner would need to contribute to the upgrading of Slothower Road and actually build a portion of it as well. Another condition was that the Slothower Road and IWV Road be screened and landscaped to the S3 screening standard. There were also requirements on the location of loading areas and outdoor storage and those would need to be behind buildings. After that annexation and rezoning the owner did go through the subdivision process and it was platted to include two commercial lots. Since that time the City has received another application as the owner would like to add some additional lots and public streets to the site as well. This is why this Commission is looking at this again because it's a revised subdivision of what was previously approved. Russett showed a map of the preliminary plat, it is 62 acres with eight commercial lots. There's a Prepared by: Kirk Lehmann, Associate Planner, 410 E. Washington St, Iowa City, IA 52240; (SUB22-0019) Resolution No. 23-123 Resolution approving the preliminary plat of the Western Home GPD of Iowa City, a Resubdivision of Outlot A of St. Andrew Presbyterian Church — Part One, Iowa City, Iowa. Whereas, the owners, Western Home Independent Living Services, Inc. submitted an application for approval of the preliminary plat of Western Home GPD of Iowa City, a Resubdivision of Outlot A of St. Andrew Presbyterian Church - Part One, Iowa City, Iowa; and Whereas, the Department of Neighborhood and Development Services and the Public Works Department examined the preliminary plat and recommended approval; and Whereas, the Planning and Zoning Commission examined the preliminary plat and, after due deliberation, recommended acceptance and approval of the plat on April 5, 2023 by a vote of 7-0; and Whereas, the preliminary plat conforms with all of the requirements of the City Ordinances of the City of Iowa City, Iowa. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: The preliminary plat of Western home GPD of Iowa City, a Resubdivision of Outlot A of St. Andrew Presbyterian Church - Part One, Iowa City, Iowa, is hereby approved. 2. The Mayor and City Clerk of the City of Iowa City, Iowa are hereby authorized and directed to certify this resolution, which shall be affixed to the plat after passage and approval by law. Passed and approved thisl8tday of April, 2023- r X_J Approved By Attest: �� 41 ' f'L Cit Clerk City Atto y's Office (Sara Hektoen - 04/12/2023) It was moved by Alter adopted, and upon roll call there were: Ayes: and seconded by Taylor Nays: Absent: X Alter x Bergus Dunn X Harmsen X Taylor X Teague X Thomas the Resolution be Attachments:SUB23-0002 Staff Report w attachments.pdf PZ 4.5.23 minutes.pdf Preliminary Plat - Resolution.docx Item Number: 9.d. April 18, 2023 Resolution Approving Preliminary Plat of Melrose Commercial Park Subdivision Iowa City, Iowa (SUB23-0002). STAFF REPORT To: Planning and Zoning Commission Item: SUB23-0002 IWV Preliminary Plat Prepared by: Emani Brinkman, Planning Intern and Anne Russett, Senior Planner Date: April 5, 2023 GENERAL INFORMATION: Owner/Applicant: IWV Holdings, LLC. 319-248-6316 madam@spmblaw.com Contact Person: MMS Consultants 319-351-8282 Requested Action: Approval of preliminary plat Purpose: Melrose Commercial Park Subdivision, a resubdivision of the IWV Commercial Park Subdivision Location: Southwest corner of Slothower Road and Melrose Avenue/IWV Road SW Location Map: Size: 62.22 Acres Existing Land Use and Zoning: Undeveloped, CI-1 Intensive Commercial Surrounding Land Use and Zoning: North: (Farmland) County Residential R and Rural Residential RR-1 South: (Farmland, Rural Residential) County Agricultural A and Rural Residential RR-1 East: (Johnson County Poor Farm) Neighborhood Public P-1 2 West: (Farmland) County Agricultural A Comprehensive Plan: Intensive Commercial and Public/Private Open Space District Plan: Southwest District Plan - Intensive Commercial and Vegetative Noise/Sight Buffer Neighborhood Open Space District: SW5 Public Meeting Notification: Property owners and residents located with 500’ of the project site received notification of the Planning and Zoning Commission public meeting. Subdivision signs were also posted on the site. File Date: March 2, 2023 45 Day Limitation Period: April 17, 2023 BACKGROUND INFORMATION: The applicant, IWV Holdings LLC., is requesting approval of the preliminary plat of IWV Commercial Park, an 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. The subject property was annexed into the City limits in 2021 (ANN21-003 and REZ21-0006). The application for annexation also included a comprehensive plan amendment to Intensive Commercial and Public/Private Open Space. A rezoning also accompanied the annexation to Intensive Commercial (CI-1). The subject property was rezoned with the following conditions: a. Prior to issuance of any building permit, Owner shall plat the property herein rezoned to follow the zoning boundaries. i. Said plat shall show a buffer easement area generally 350’ wide consistent with the comprehensive plan map. This easement area shall be governed by an easement agreement, in a form acceptable to the City Attorney. This easement area shall be planted according to a landscape plan approved by the City Forester at such times as required by the subdivider’s agreement. Landscaping within the buffer easement area shall meet the S3 standards and include a mixture of deciduous and evergreen trees that will be at least 30’ tall upon maturity. ii. Said plat shall include the dedication of right-of-way along the Slothower Road frontage in a size and location approved by the City Engineer to allow Slothower Road to be improved to City urban design standards. b. Pursuant to Iowa City Code Title 15, Owner shall, contemporaneous with the final plat approval, execute a subdivider’s agreement addressing, among other things, the following conditions: i. Owner shall contribute 25% of the cost of upgrading Slothower Road, south of any future access, to collector street standards, adjacent to the subject property. ii. Owner shall install landscaping to the S3 standard along the Slothower 3 Road and IWV Road frontages; iii. Improve Slothower Road to the southern end of any future access off Slothower Road. c. For all lots fronting IWV Road and Slothower Road, loading areas and outdoor storage shall not be located between the front facade of the principal structure and the public right-of-way line. The City Council approved a final plat in 2021 for the subject property, which divided the site into two lots (SUB21-0012). Since approval of the final plat, the owner has chosen to resubdivide the property in order to incorporate public streets and additional lots. The applicant held a Good Neighbor Meeting for the previous annexation/comprehensive plan amendment/rezoning applications. ANALYSIS: Compliance with Comprehensive Plan: The Comprehensive Plan was amended with the previous series of applications to allow Intensive Commercial and Public/Private Open Space uses within the subject property. Similarly, the Southwest District Plan was amended to allow Intensive Commercial Use with a Vegetative Noise and Sight Buffer along the south side of the subject properties. The subject preliminary plat application incorporates the 350’-wide vegetative buffer into the plat. Subdivision Design: The proposed subdivision contains eight lots which are intended for future intensive commercial use. The lots range in size from 2.05 acres to 19.86 acres. The preliminary plat also includes two new public streets. Platinum Lane is a north/south street that connects with Melrose Ave/IWV Road SW. Platinum Lane ends in a cul-de-sac and terminates at the 350’ vegetative buffer easement. The cul-de-sac length is less than the 900’ maximum suggested in the subdivision code. Additionally, it is justified due to the presence of the conservation and vegetative buffer easement and intent to separate the intensive commercial development from future development to the south. The preliminary plat also includes Gold Avenue, which runs east/west and provides access off Slothower Rd. Sidewalks are also shown along these new public streets. Environmentally Sensitive Areas: The subject properties contain several sensitive areas that were illustrated during the previous rezoning application. Since the proposed sensitive areas development plan meets the base requirements of the sensitive area’s ordinance a Level II review (i.e. review by the Planning and Zoning Commission and City Council) is not required. The southern ¼ of the subject properties contains a blue line stream and a 50’ stream corridor buffer. The area also contains .37 acres of wooded wetlands and .95 acres of emergent wetlands. The southern wetland is bordered by a 100’ wetland buffer. Due to the location of sensitive areas within the southern portion of these properties, future development in this southern ¼ will not be allowed, thereby creating a natural buffer from development to the south. As a condition of the rezoning, the applicant has created a vegetative buffer easement area that is 350’ wide along the southern boundary of the subject properties. The purpose is to provide a buffer from the future intensive commercial land uses through additional landscaping. The buffer area will prohibit installation of structures, parking lots, drives aisles, or loading areas. Construction and maintenance that is necessary for storm water management will be allowed. Neighborhood Open Space: Since the proposed subdivision is not envisioned to contain residential uses within a commercial subdivision, per section 15-3-5-B of the City Code, there is no neighborhood open space requirement for this subdivision. 4 Storm Water Management: Storm water management is provided via two separate basins that are located in the southern ¼ of the subject properties. Public Works has reviewed the applicant’s preliminary storm water management plan. Sanitary Sewer Service: Sanitary sewer service will be extended to the west along Melrose Aven/IWV Road SW from the current endpoint east of the Slothower Road and Melrose Avenue/IWV Road SW intersection. Infrastructure Fees: As conditions of the rezoning, the applicant will be required to improve Slothower Road from the intersection with Melrose Avenue/IWV Road SW to the Gold Ave access point into the subdivision. The applicant will also be required to provide 25% of the cost for improvement to the remainder of the Slothower Road frontage south of the Gold Ave access point. The City is currently improving IWV Road SW to city arterial street standards. NEXT STEPS: Upon recommendation from the Planning and Zoning Commission, the preliminary plat will be considered for approval by the City Council. There were several conditions as part of the rezoning. The condition regarding the additional right-of-way along Slothower Rd has already been addressed through the approval of the final plat. The preliminary plat shows the existing vegetative buffer easement area. Additional conditions will be reviewed during site and building plan review. STAFF RECOMMENDATION: The preliminary plat does show the 350’ vegetative buffer and the additional public right-of-way along Slothower Rd. Staff recommends approval of SUB21-0012, an application submitted by IWV Holdings, LLC. for a preliminary plat of the IWV Commercial Park subdivision, a 2-lot, 62.36- acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. ATTACHMENTS: 1. Location Map 2. Preliminary Plat Approved by: _________________________________________________ Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services Slothower Rd Melrose Ave Slothower Rd SW IWV Rd SWHurt Rd SWAn application submitted by MMS Consultants INC. on behalf of IWV Holdings, LLC for a preliminary plat of 62.22 acres located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. µSUB23-0003 IWV Preliminary Plat Prepared By: Emani Brinkman Date Prepared: March 2023 0 0.09 0.180.04 Miles MELROSE AVENUESLOTHOWER ROAD HURT ROAD SWALBERT ANDFAY'S FIRSTADDITIONKAUBLE'SSUBDIVISIONNW 14 - N E 14S E C T IO N 1 3 - T 7 9 N - R 7WSW 14 - NE14SECTION 13-T79N-R7WSE 14 - NW14SECTION 13-T79N-R7WNW 14 - NW 14SECTION 13-T79N-R7WSE 14 - NE 14SECTION 14-T79N-R7WSW 14 - NW 14SECTION 13-T79N-R7WSE 14 - SE 14SECTION 11-T79N-R7WSW 14 - SW 14SECTION 12-T79N-R7WSE 14 - SW 14SEC. 12-T79N-R7WSW 14 - SE 14SECTION 12-T79N-R7WNE 14 NE 14SECTION 14-T79N-R7WNE 14 NW 14SECTION 13-T79N-R7WNE 1 4 NW 14SECTION 13-T79N-R7WLOT 1IWV COMMERCIAL PARKLOT 2IWV COMMERCIAL PARK(319) 351-8282LAND PLANNERSLAND SURVEYORSCIVIL ENGINEERSLANDSCAPE ARCHITECTSIOWA CITY, IOWA 52240MMS CONSULTANTS, INC.ENVIRONMENTAL SPECIALISTSwww.mmsconsultants.net1917 S. GILBERT ST.PER CITY COMMENT - LSS3/27/2023MELROSE COMMERICAL PARKIOWA CITYJOHNSON COUNTYIOWA2/20/2023CATLSSCAT11264-0011PROJACPER CITY COMMENT - LSS3/30/2023PRELIMINARY PLAT AND SENSITIVE AREASDEVELOPMENT PLAN 11" = 100'PREPARED BY:MMS CONSULTANTS INC.1917 S. GILBERT STREETIOWA CITY, IOWA 52240OWNER/APPLICANT:NOT TO SCALELOCATION MAPPROJECTLOCATIONGRAPHIC SCALE IN FEET1"=100'010255075100IWV HOLDINGS, LLC2916 HIGHWAY 1 NEIOWA CITY IOWA, 52240OWNER'S ATTORNEY:MATTHEW J. ADAM1150 5TH STREET, SUITE 170CORALVILLE, IOWA 52241Date:City Clerk City of Iowa Cityby thePLAT/PLAN APPROVEDPROJECTLOCATIONDESCRIPTION - PRELIMINARY PLATIWV COMMERCIAL PARK, IOWA CITY, JOHNSON COUNTY, IOWA, IN ACCORDANCE WITH THE PLAT THEREOF RECORDED INPLAT BOOK 66, AT PAGE 26 OF THE RECORDS OF THE JOHNSON COUNTY RECORDER'S OFFICE, CONTAINING 62.22 ACRESAND SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD.NOTE: ONLY CONSTRUCTION RELATEDTO THE DETENTION BASINS OR ASNECESSARY TO COMPLY WITH THEAPPROVED CONDITIONAL ZONINGAGREEMENT WILL BE ALLOWED WITHINTHE VEGETATIVE BUFFER BOUNDARY.MELROSE COMMERICAL PARKPRELIMINARY PLAT AND SENSITIVE AREAS DEVELOPMENT PLANIOWA CITY, IOWAA RESUBDIVISION OF IWV COMMERCIAL PARKG:\11264\11264-001\11264-001P.dwg Planning and Zoning Commission April 5, 2023 Page 5 of 17 that type of thing. Hensch closed the public hearing. Elliott moves to approve SUB22-0019, an application submitted by Western Home Independent Living Services, Inc. for a Preliminary Plat for Western Home GPD of Iowa City, a 31.65-acre subdivision containing 3 lots and 1 outlot intended for a senior living community with 35 single-family homes, 8 duplex units, 38 multi-family units, 20 townhome-style units, 1 assisted living facility with approximately 32 beds, and neighborhood commercial uses located East of Camp Cardinal Road and north of Gathering Place Lane. Townsend seconded the motion. Townsend asked about the final plat for Cardinal Heights subdivision and when that was approved and if it would be done soon or can this development still need to move forward with developing that infrastructure and moving forward with developing their project. Russett is unsure what the timeline is for the Cardinal Heights subdivision. A vote was taken and the motion passed 7-0. CASE NO. SUB23-0002: Location: Southwest corner of Slothower Road and Melrose Avenue/lWV Road SW An application for a preliminary plat for Melrose Commercial Park, a 62.22-acre commercial subdivision containing eight lots. Russett began the staff report with an aerial of the project site that’s located at the southwest corner of Melrose Avenue and Slothower Road. To the east is the Johnson County Poor Farm and to the south and to the north is mostly in unincorporated Johnson County. The zoning map shows the subject property is zoned intensive commercial, and the lane to the east is zoned public. In terms of background, in 2021 there was a Comprehensive Plan Amendment that came before the Commission as well as an annexation and rezoning to intensive commercial that was approved by City Council. Russett did note there were several conditions associated with that rezoning, one was the creation of a vegetative buffer easement at the southern end of the property, dedication of right-of-way along Slothower Road, and the owner would need to contribute to the upgrading of Slothower Road and actually build a portion of it as well. Another condition was that the Slothower Road and IWV Road be screened and landscaped to the S3 screening standard. There were also requirements on the location of loading areas and outdoor storage and those would need to be behind buildings. After that annexation and rezoning the owner did go through the subdivision process and it was platted to include two commercial lots. Since that time the City has received another application as the owner would like to add some additional lots and public streets to the site as well. This is why this Commission is looking at this again because it's a resubdivision. Planning and Zoning Commission April 5, 2023 Page 6 of 17 Russett showed a map of the preliminary plat, it is 62 acres with eight commercial lots. There's a north/south street called Platinum Lane and an east/west street called Gold Avenue that connects with Slothower Road. Slothower Road will need to be improved to that access point on Gold Avenue. Russett stated some of the conditions from the rezoning have already been met with the previous subdivision. The vegetative buffer easement area and the dedication of the Slothower Road right-of-way were met with the previous subdivision plat. She also noted Platinum Lane does end in a cul-de-sac due to the sensitive features to the south, the wetlands and stream corridor as well as the vegetative buffer easement. In terms of consistency with the Comprehensive Plan, an amendment to the Comprehensive Plan was adopted for this development showing this area as appropriate for intensive commercial uses as well as that open space vegetative buffer easement. Therefore, the subdivision is consistent with the Comprehensive Plan. Regarding the environmentally sensitive areas Russett stated a sensitive areas development plan has been approved, and the preliminary plat shows a conservation easement in those areas to protect those sensitive features. In terms of stormwater, the stormwater management is provided by two separate basins on the west and southeast of the property. Public Works has approved these preliminary stormwater management plans. The role of the Commission tonight is to determine if the plan is consistent with the City’s subdivision regulations and Comprehensive Plan. Staff recommends approval of SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial Park subdivision, a 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. Next steps, upon recommendation from the Planning and Zoning Commission, the preliminary plat will be considered for approval by the City Council. Craig asked Russett to speak about what is allowable in intensive commercial zones. Russett replied it is one of the more permissive commercial zones and allows things like general office uses, medical offices, retail sales, and also allows some more intense uses like general manufacturing and outdoor storage. She did note some of those uses do require provisional approval with specific standards that need to be met and some of those uses require a special exception which needs to go to the Board of Adjustment. Craig noted remembering some neighbors had concerns within the subdivision because they were pretty certain they knew what was going to go in there and this makes it sounds like that's not what would be going in here because they are doing the second division. Hensch asked if most of those intensive uses require Board of Adjustment approval. Russett is not sure, it would depend on the specific use. Wade noted the original plat approval was before his time on the Commission but wasn't there a good neighbor meeting held and as part of that the buffer area was introduced. Russett stated the buffer area actually came from comments from the public at a Commission hearing, the Planning and Zoning Commission April 5, 2023 Page 7 of 17 project actually changed through the input at the public hearing process. Hensch opened the public hearing. Jon Marner (MMS Consultants) is representing the developer and wanted to address a couple of the comments from the Commission members and to highlight a few items. First of all, as mentioned this is a redevelopment of a subdivision which was previously approved. As Melrose Avenue has been completed there has been some generic interest in the area, and the interest is for smaller lots as opposed to the to larger lots that were that were proposed and approved on that previous final plat. So now there are three smaller lots out on Melrose Avenue and some larger lots on the south side between Gold Avenue and the vegetative buffer. Regarding the vegetative buffer on the previous plat, when the previous Commission meetings were held that was one of the items that was highlighted as a concern, also expressed was one of the zoning items to provide some additional screening on the southern property line. That vegetative buffer was put in place to ensure that there was ample distance and separation from any potential future development and the residential properties to the south. They added the vegetative buffer to make sure that would remain and then there's additional landscaping that will also be provided. The detention basins are provided in that area as well so that's going to restrict any potential future development in that area. Hensch asked about the paved surface that will be on Slothower Road south of Melrose, to Gold Avenue, what's that distance to that from Melrose. Marner believes it's 350 feet from centerline to centerline. Hensch asked if they will be acquiring the right-of-way south of that and to the end of area on Slothower Road or will that come back in the future. Marner stated that was part of the previous final plat and was approved, the additional right-of-way on along Slothower Road on this property was platted at that time, this would acknowledge the 17 additional feet that was required on this property being considered for future construction of Slothower Road. Hensch closed the public hearing. Craig moved to approve SUB23-0002, an application submitted by IWV Holdings, LLC. for a preliminary plat of the Melrose Commercial Park subdivision, an 8-lot, 62.22-acre commercial subdivision located at the southwest corner of Slothower Road and Melrose Avenue/IWV Road SW. Wade seconded the motion. Craig stated as in the previous one this is just another step in something that they spent a lot of time on for and it will be interesting to see what happens. A vote was taken and the motion passed 7-0. CASE NO. REZ23-0003: Location: N. Scott Blvd west of N. 1st Avenue An application for a rezoning of approximately 10.26 acres of land from Low Density Multi Family Zone with a Planned Development Overlay (OPD/RM-12) to OPD/RM-12 in order to amend the Li Prepared by:Anne Russett,Senior Planner,410 E.Washington St, Iowa City, IA 52240;(SUB23-0002) Resolution No. 23-124 Resolution approving the Preliminary Plat of Melrose Commercial Park Subdivision, Iowa City, Iowa. Whereas, the owners, IWV Holdings, LLC submitted an application for approval of the preliminary plat of Melrose Commercial Park Subdivision, a resubdivision of IWV Commercial Park, Iowa City, Iowa; and Whereas, the Department of Neighborhood and Development Services and the Public Works Department examined the preliminary plat and recommended approval; and Whereas, the Planning and Zoning Commission ,examined the preliminary plat and, after due deliberation, recommended acceptance and approval of the plat; and Whereas, the preliminary plat conforms with all of the requirements of the City Ordinances of the City of Iowa City, Iowa. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The preliminary plat of Melrose Commercial Park Subdivision, a resubdivision of IWV Commercial Park, Iowa City, Iowa, is hereby approved. 2. The Mayor and City Clerk of the City of Iowa City, Iowa are hereby authorized and directed to certify this resolution,which shall be affixed to the plat after passage and approval by law. Passed and approved this 18th day of April 2023. M o Approv By. Attest: - 1 iZe_a Ci Clerk City Attor y's Office (Sara Hektoen—04/12/2023) It was moved by Dunn and seconded by Bergus the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: x Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas s\pcdlpreliminary_plat__resolution(8).docx Prepared By:Sara Hektoen, Assistant City Attorney Reviewed By:Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact:None. Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Res Auth Conveyance electric ease midAm.doc Easement Agreement Item Number: 10.b. April 18, 2023 Resolution approving the conveyance of an underground utility easement to MidAmerican Energy Company across Auditor’s Parcel 2001020. Executive Summary: The City constructed the Peninsula Well Field Power Redundancy Project to connect an underground utility service to the existing Peninsula well field switchgear as a fixed secondary source of power, in addition to the existing utility service routed overhead across the Iowa River. T he City now desires MidAm to install and maintain an electric service line within this infrastructure for the City’s benefit, which requires granting MidAm easement rights. Because the City is the only benefitted party and this work is being done at the City's request, the proposed compensation is $0. F -a' Doc ID: 032079430006 Type: GEN Kind: RESOLUTION Recorded: 05/09/2023 at 10:36:53 AN Fee Amt: $32.00 Paqe 1 of 6 Johnson County Iowa Kim Painter County Recorder BK6477PG223-228 STATE OF IOWA ) ) SS JOHNSON COUNTY ) I k 1 'ot City p I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 23-125 which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 18th day of April 2023, all as the same appears of record in my office. Dated at Iowa City, Iowa, this �� day of May 2023. r Kellie K. Fruehling City Clerk fires 410 EAST WASHINGTON STREET ■ IOWA CITY, IOWA 52240-1826 • (319) 356-5000 • FAX (319) 356-5009 Prepared by: Sara Greenwood Hektoen, Asst City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319)356- 5030 Resolution No. 23-125 Resolution approving the conveyance of an underground utility easement to MidAmerican Energy Company across Auditor's Parcel 2001020. Whereas, the City constructed the Peninsula Well Field Power Redundancy Project to connect an underground utility service to the existing Peninsula well field switchgear as a fixed secondary source of power, in addition to the existing utility service routed overhead across the Iowa River; and Whereas, the City now desires MidAm to install and maintain an electric service line within this infrastructure for the City's benefit, which requires granting MidAm easement rights; and Whereas, the City is the only benefitted party and this work is being done at the City's request; and Whereas, on April 4, 2023, the City Council adopted a resolution declaring its intent to consider this, authorizing the publication of public notice of the proposed conveyance, and setting the date and time for public hearing; and Whereas, following public hearing on the proposed conveyance, the City Council finds that the conveyance of the subject property is in the public interest. Now, therefore, be it resolved by the City Council of Iowa City, Iowa, that: 1. The City Council does hereby authorize the Mayor and City Clerk, upon approval of the City Attorney, to execute all documents necessary to convey a conveyance of an underground utility easement to MidAmerican Energy Company over and across a portion of Auditor's Parcel 2001020 in the form of the attached easement agreement at no cost. 2. The City Attorney is hereby authorized to carry out any actions necessary to consummate the conveyance as required by law. Passed and approved this 18th day of April 20 23 r (LA,��l M R Approve 4 ATTEST: i CITY CLERK -� City Attorney' Office — 04/13/2023 Resolution No. 23-125 Page 2 It was moved by Berg -us and seconded by Alter The Resolution be adopted, and upon roll call there were: Ayes: Nays x x x x x x Absent Alter Bergus Dunn Harmsen Taylor Teague Thomas Prepared by: UNDERGROUND UTILITY EASEMENT This Underground Utility Easement is made and entered into by City of Iowa City, a municipal corporation, ("Owner") and MidAmerican Energy Company, an Iowa corporation ("Grantee"), which expression shall include its successors in interest and assigns. It is hereby agreed as follows: Owner hereby grants to Grantee a perpetual non-exclusive easement upon, over, under, along the areas described on the attached Exhibit A as "electrical utility easement", herein the "easement area". Grantee shall have the right to install, lay, construct, reconstruct, renew, operate, maintain and remove conduits, cables, pipes, electric lines below the surface of the ground located in the easement area, and other equipment or appurtenances agreed to by Owner above the surface of the ground as may be necessary for the purpose of serving the Subdivision and other property with electricity, gas, and communication service; the right to trim, cut down and remove such trees, brush, saplings and bushes as may interfere with the proper construction, maintenance, operation or removal of said facilities, equipment and appurtenances; and the right of ingress and egress for all of the purposes aforesaid. Grantee shall promptly backfill any trench made by them, and repair or pay for any damages caused by them within the easement area. Grantee shall indemnify Grantor against unreasonable loss or damage which may occur in the negligent exercise of the easement rights by the Grantee. Owner, its successors in interest and assigns, reserve the right to use the easement area for purposes which will not interfere with Grantee' full enjoyment of the rights hereby granted; provided that Owner shall not erect or construct any reservoir, retaining wall, or other obstruction on said areas, or diminish or substantially add to the ground cover over the easement area; provided, however, that Owner may construct driveways over the easement area. No permanent or temporary buildings, dwellings, structures or trees or fences shall be placed on the areas so designated for utility easement without the advance written authorization from Grantee. Said authorization shall not be unreasonably withheld. The same may be used for gardens, shrubs, minor landscaping and other purposes that do not then or later interfere with the aforesaid uses or the rights herein granted. Grantee's rights, however, include the right to remove and/or clear away any such gardens, shrubs, minor landscaping, bushes and plantings within the easement area without compensation to Owners or its success in interest. IN WITNESS WHEREOF, this Easement is made as of the date last set forth below. Dated this I day of 22023. MIDAMERICAN ENE Y COMPANY By: STATE F WA ) )ss. COUNTY OF POLK ) On this day of /A 2023, before me, a notary public in and for said county, personally appeared ::rq$. as- i MidAmerican Energy Company. TYLER B GARTEN BERG Commission Number 810901 My Commission Expires NOT ` June 5, My o IN AND FOR IOWA expires: ru :5�: zU ZI- CITY OF IOWA CITY ATTEST: L Bruc ue, Mayor Kellie K. Frueh ing, City Cie STATE OF IOWA ) )ss. COUNTY OF JOHNSON } On this !'+5 day of 2023, before me, a notary public in and for said county, personally appeared Bruce Teague and Kellie K. Fruehling, respectively as Mayor and City Clerk of the City of Iowa City, Iowa. 4: TAMARA NEUMANN NOTARY PUBLIC IN AND FOR IOWA * A Cortxr�elon Number 838058 . MY COMMISSION EXPIRES J 'aw► MARCH 14, 2025 My commission expires: le! E ° N o s� (1J __gam S�wt�axm��� ogHi OK0��3 ���C{oVIJ22�oy, �jv c�ae L I�ia7oap� �wwi p BT5 25 cfB 1 1 1 1 F 1! 1 I 11 1 1 1 1 1 Y LL+d F U N 04 g 11 ¢m^� o� m�,-, ¢ v� Orn o Z W <160 � o ¢ I7 s W nKo W l� T i wit `� aajs i 3N N ° � � •a � D � W W co 6�OOU � p s61 6 � aiR E ° N o s� (1J __gam S�wt�axm��� ogHi OK0��3 ���C{oVIJ22�oy, �jv c�ae L I�ia7oap� �wwi p BT5 25 cfB 1 1 1 1 F 1! 1 I 11 1 1 1 1 1 Y LL+d F �� �•yr'' K .�� � r'ipcl � :•x��� g m g � x ¢m^� o� �r•r. � Z W <160 I7 s W nKo W l� T i wit `� aajs i 3N N ° � � •a � � r¢r � S a E ° N o s� (1J __gam S�wt�axm��� ogHi OK0��3 ���C{oVIJ22�oy, �jv c�ae L I�ia7oap� �wwi p BT5 25 cfB 1 1 1 1 F 1! 1 I 11 1 1 1 1 1 Y qM" !' F f Vi LLJ LU Q !$ i ^ s} 'S n �� �•yr'' K .�� � r'ipcl � :•x��� g m g � x ¢m^� o� �r•r. � Z W <160 I7 s W nKo W l� T i wit qM" !' F f Vi LLJ LU Q !$ i ^ s} 'S n �� �•yr'' K .�� � r'ipcl � :•x��� g m g � fir, r •' ns ' h,;s; s3���Hgp -' �r•r. � l� T i wit qM" !' F f Vi LLJ LU Q !$ i ^ s} 'S n �� �•yr'' K .�� � r'ipcl � :•x��� g m g � fir, r •' ns ' h,;s; s3���Hgp -' �r•r. � qM" !' F f Vi LLJ LU Q !$ i ^ s} 'S n Prepared By:Marri Van Dyke, Civil Engineer Reviewed By:Juli Johnson Seydell, Parks & Recreation Director Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact:$442,000 available in the Hickory Hill Park account #R4365 Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Item Number: 10.c. April 18, 2023 Resolution approving project manual and estimate of cost for the construction of the Hickory Hill Park Shelter and Restrooms Project, establishing amount of bid security to accompany each bid, directing City Clerk to post notice to bidders, and fixing time and place for receipt of bids. Executive Summary: This project includes replacement of the shelter and restroom located at the Conklin Lane entrance of Hickory Hill Park. Background / Analysis: This work was originally bid as an alternate with the 2023 Park Renovations Project. After reviewing the bid results, the base bid for the project was accepted, while the alternate was rejected. A new separate project was then created to re-bid the Hickory Hill Park improvements in an effort to realize cost savings for the City. Currently, the Conklin Lane entrance has a combined shelter and restroom that needs to be replaced due to its age and condition. The new structures will be separate from each other, with the shelter staying in the same location and the restrooms moving closer to the parking lot. These improvements align with what is called for in the 2016 Hickory Hill Park Master Plan. The park is also prioritized in the 2017 Park Master Plan. City staff has worked closely with Friends of Hickory Hill during project design. Project Timeline: Bid Letting – May 9, 2023 Award Date – May 16, 2023 Construction – June to December 2023 Prepared by:Marri Vandyke,Engineering Division,410 E.Washington St.,Iowa City,IA 52240,(319)356-5044 Resolution No. 23-126 Resolution approving project manual and estimate of cost for the construction of the Hickory Hill Park Shelter and Restrooms Project, establishing amount of bid security to accompany each bid, directing City Clerk to post notice to bidders, and fixing time and place for receipt of bids. Whereas, notice of public hearing on the project manual and estimate of cost for the above- named project was published as required by law, and the hearing thereon held; and Whereas, the City Engineer or designee intends to post notice of the project on the website owned and maintained by the City of Iowa City; and Whereas, funds for this project are available in the Hickory Hill Park account#R4365. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The project manual and estimate of cost for the above-named project are hereby approved. 2. The amount of bid security to accompany each bid for the construction of the above- named project shall be in the amount of 10% (ten percent) of bid payable to Treasurer, City of Iowa City, Iowa. 3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3, not less than 13 days and not more than 45 days before the date of the bid letting, which may be satisfied by timely posting notice on the Construction Update Network, operated by the Master Builder of Iowa, and the Iowa League of Cities website. 4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 9th day of May, 2023. At that time, the bids will be opened by the City Engineer or his designee, and thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, at 6:00 p.m. on the 16th day of May, 2023, or at a special meeting called for that purpose. Passed and approved this 1sth day of April , 2023. Ma ff , Approved by Attest: 1)11 .Ll��� , �`; �t;� G > City Clerk , City Attor y's Office (Liz Craig —04/06/2023) Resolution No. 23-126 Page 2 It was moved by Bergus and seconded by Alter the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: X Alter x Bergus x Dunn X Harmsen X Taylor x Teague x Thomas Prepared By:Nicole Davies, Finance Director Reviewed By:Geoff Fruin, City Manager Fiscal Impact:Approved as part of the FY2023 Revised Budget and 2023-2027 Capital Improvement Program Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Preliminary Official Statement Resolution Item Number: 10.d. April 18, 2023 Resolution Directing the Advertisement for Sale of $9,655,000* (Dollar Amount Subject To Change) General Obligation Bonds, Series 2023, And Approving Electronic Bidding Procedures And Distribution of Preliminary Official Statement Executive Summary: This is a resolution to advertise for the sale, to approve the electronic bidding procedures, and to approve the distribution of the preliminary official statement for the 2023 General Obligation Bonds. This resolution establishes the sale time and date and bidding procedures for the 2023 General Obligation Bonds. It also accepts and approves the Preliminary Official Statement or sale document for the bonds. Background / Analysis: The City issues bonds every spring to fund the current year ’s capital improvement projects listed in the Five-Year Capital Improvement Program. The City intends to take bids for $9,655,000 in general obligation bonds on May 2 and then close on the bond sale on June 1. The FY2023 Revised Budget and FY2024 Adopted Budget have been approved with the necessary property tax levies needed for repayment of the 2023 General Obligation Bonds. The City’s long-term planning has incorporated the 2023 proposed bond issue and repayment schedule. City Council approval of the resolution directing the advertisement for sale, approving electronic bidding procedures, and distribution of the preliminary official statement is the next required action to facilitate the sale and issuance of the 2023 General Obligation Bonds. New Issue Investment Rating: Date of Sale: Tuesday, May 2, 2023 (Alternate Bid Methods) Moody’s Investors Service … Between 10:30 and 11:00 A.M., C.D.T. (Closed SpeerAuction) (Rating Requested) Before 11:00 A.M., C.D.T. (Sealed Bids) Official Statement Assuming compliance with certain covenants, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, under present law and assuming continued compliance with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds is excludable from gross income for federal income tax purposes. Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (as defined in Section 59(k) of the Code) for the purpose of computing the alternative minimum tax imposed on corporations for tax years beginning after December 31, 2022. Interest on the Bonds is not exempt from present Iowa income taxes. The Bonds will be designated as “qualified tax-exempt obligations”. See “TAX MATTERS” herein for a more detailed discussion. $9,655,000* CITY OF IOWA CITY Johnson County, Iowa General Obligation Bonds, Series 2023 Dated Date of Delivery Book-Entry Bank Qualified Due Serially June 1, 2024 - 2033 The $9,655,000* General Obligation Bonds, Series 2023 (the “Bonds”) are being issued by the City of Iowa City, Johnson County, Iowa (the “City” or the “Issuer”). Interest is payable semiannually on June 1 and December 1 of each year, commencing December 1, 2023. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will be issued using a book- entry system. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. The Bonds will mature on June 1 in the following years and amounts. AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS Principal Due Interest Price or CUSIP Principal Due Interest Price or CUSIP Amount* June 1 Rate Yield Number(1) Amount* June 1 Rate Yield Number(1) $1,360,000 ......... 2024 ______% ______% ___________ $920,000........... 2029 ______% ______% ___________ 920,000 ......... 2025 ______% ______% ___________ 920,000........... 2030 ______% ______% ___________ 920,000 ......... 2026 ______% ______% ___________ 925,000........... 2031 ______% ______% ___________ 920,000 ......... 2027 ______% ______% ___________ 925,000........... 2032 ______% ______% ___________ 920,000 ......... 2028 ______% ______% ___________ 925,000........... 2033 ______% ______% ___________ Any consecutive maturities may be aggregated into term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above. OPTIONAL REDEMPTION Bonds due June 1, 2024 - 2030, inclusive, are not subject to optional redemption. Bonds due June 1, 2031 - 2033, inclusive, are callable in whole or in part on any date on or after June 1, 2030, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the City and within any maturity by lot. See “OPTIONAL REDEMPTION” herein. PURPOSE, LEGALITY AND SECURITY The proceeds of the Bonds are expected to be used to: (i) finance the cost of various essential and general corporate purpose capital improvements, and (ii) pay the costs of issuing the Bonds. See “THE PROJECT” herein. In the opinion of Bond Counsel, Ahlers & Cooney, P.C., Des Moines, Iowa, the Bonds will constitute valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable, real property within the corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to the enforcement of creditors’ rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion. The City intends to designate the Bonds as “qualified tax-exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue Code of 1986. This Official Statement is dated April 19, 2023, and has been prepared under the authority of the City. An electronic copy of this Official Statement is available from the www.speerfinancial.com web site under “Official Statement Sales Calendar”. Additional copies may be obtained from Nicole Davies, Finance Director, City of Iowa City, 410 E. Washington Street, Iowa City, Iowa, 52240, or from the Registered Municipal Advisors to the City. Speer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS • ESTABLISHED 1954 230 WEST MONROE STREET, SUITE 2630 • CHICAGO, ILLINOIS 60606 Telephone: (312) 346-3700 • Facsimile: (312) 346-8833 531 COMMERCIAL STREET, SUITE 608 • WATERLOO, IOWA 50701 Telephone: (319) 291-2077 • Facsimile: (319) 291-8628 *Subject to principal adjustment in accordance with the Official Terms of Offering. (1) CUSIP numbers appearing in this Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw Hill Financial Inc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on the cover of this Official Statement. For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the City from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof (or the date of any such supplement or correction) by the City. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. Alternatively, such final terms of the Bonds and other information may be included in a separate document entitled “Final Official Statement” rather than through supplementing the Official Statement by an addendum or addenda. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF. References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful. (i) TABLE OF CONTENTS Page BOND ISSUE SUMMARY.................................................................................................................................................... 1 SECURITY AND SOURCE OF PAYMENT ........................................................................................................................ 2 CERTAIN BONDHOLDERS’ RISKS ................................................................................................................................... 3 Potential Impact of The Coronavirus .................................................................................................................................. 3 Secondary Market ............................................................................................................................................................... 3 Ratings Loss ........................................................................................................................................................................ 4 Redemption Prior to Maturity ............................................................................................................................................. 4 Forward-Looking Statements .............................................................................................................................................. 4 Tax Matters, Bank Qualification and Loss of Tax Exemption ........................................................................................... 4 DTC-Beneficial Owners ..................................................................................................................................................... 5 Pension and OPEB Benefits ................................................................................................................................................ 5 Continuing Disclosure ........................................................................................................................................................ 6 Cybersecurity ...................................................................................................................................................................... 6 Suitability of Investment ..................................................................................................................................................... 7 Bankruptcy and Insolvency ................................................................................................................................................. 7 Matters Relating to Enforceability of Agreements ............................................................................................................. 7 Legislation ........................................................................................................................................................................... 8 Tax Levy Procedures .......................................................................................................................................................... 8 Loss of Tax Base ................................................................................................................................................................. 8 Federal Funds Orders and State Funds Legislation............................................................................................................. 9 Other Factors ....................................................................................................................................................................... 9 THE CITY .............................................................................................................................................................................. 9 City Organization and Services........................................................................................................................................... 9 Community Life .................................................................................................................................................................. 9 Education .......................................................................................................................................................................... 10 Transportation ................................................................................................................................................................... 10 SOCIOECONOMIC INFORMATION ................................................................................................................................ 10 Population ......................................................................................................................................................................... 10 Employment ...................................................................................................................................................................... 10 Housing ............................................................................................................................................................................. 12 Income............................................................................................................................................................................... 12 Retail Sales ........................................................................................................................................................................ 13 THE PROJECT ..................................................................................................................................................................... 13 DEFAULT RECORD ........................................................................................................................................................... 14 SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT ............................................... 14 DEBT INFORMATION ....................................................................................................................................................... 14 Debt Limitation ................................................................................................................................................................. 14 Direct Debt ........................................................................................................................................................................ 14 Other Obligations .............................................................................................................................................................. 16 PROPERTY ASSESSMENT AND TAX INFORMATION ................................................................................................ 16 Property Tax Assessment .................................................................................................................................................. 16 Percentages for Taxable Valuation After Rollbacks(1) .................................................................................................... 17 Building Permits ............................................................................................................................................................... 17 Property Tax Collection .................................................................................................................................................... 17 Levy Limits ....................................................................................................................................................................... 19 Tax Rates .......................................................................................................................................................................... 20 Tax Levy Procedures ........................................................................................................................................................ 20 Utility Property Tax Replacement .................................................................................................................................... 20 Tax Increment Financing .................................................................................................................................................. 21 Legislation ......................................................................................................................................................................... 21 (ii) FINANCIAL INFORMATION ............................................................................................................................................ 23 Financial Reports .............................................................................................................................................................. 23 No Consent or Updated Information Requested of the Auditor........................................................................................ 23 Summary Financial Information ....................................................................................................................................... 23 REGISTRATION, TRANSFER AND EXCHANGE........................................................................................................... 27 TAX MATTERS ................................................................................................................................................................... 27 Tax Exemption .................................................................................................................................................................. 27 Qualified Tax Exemption Obligations .............................................................................................................................. 28 Discount and Premium Bonds........................................................................................................................................... 28 Other Tax Advice .............................................................................................................................................................. 28 Audits ................................................................................................................................................................................ 28 Reporting and Withholding ............................................................................................................................................... 29 Tax Legislation ................................................................................................................................................................. 29 Enforcement ...................................................................................................................................................................... 29 The Opinion ...................................................................................................................................................................... 29 Bond Counsel Review ....................................................................................................................................................... 30 CONTINUING DISCLOSURE ............................................................................................................................................ 30 OPTIONAL REDEMPTION ................................................................................................................................................ 30 LITIGATION ........................................................................................................................................................................ 31 LEGAL MATTERS .............................................................................................................................................................. 31 OFFICIAL STATEMENT AUTHORIZATION .................................................................................................................. 31 INVESTMENT RATING ..................................................................................................................................................... 32 UNDERWRITING ............................................................................................................................................................... 32 MUNICIPAL ADVISOR ...................................................................................................................................................... 32 MISCELLANEOUS ............................................................................................................................................................. 33 APPENDIX A - FISCAL YEAR 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE APPENDIX C - DRAFT FORM OF BOND COUNSEL OPINION APPENDIX D - DRAFT FORM OF CONTINUING DISCLOSURE CERTIFICATE OFFICIAL BID FORM OFFICIAL TERMS OF OFFERING Exhibit A – Example Issue Price Certificate City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 1 BOND ISSUE SUMMARY This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Terms of Offering and the Official Bid Form, which are provided for the convenience of potential investors and should be reviewed in their entirety by potential investors. Issuer: City of Iowa City, Johnson County, Iowa. Issue: $9,655,000* General Obligation Bonds, Series 2023. Dated Date: Date of delivery (expected to be on or about June 1, 2023). Interest Due: Each June 1 and December 1, commencing December 1, 2023. Principal Due: Serially each June 1, commencing June 1, 2024 through 2033, as detailed on the cover page of this Official Statement. Optional Redemption: Bonds maturing on or after June 1, 2031, are callable at the option of the City on any date on or after June 1, 2030, at a price of par plus accrued interest. See “OPTIONAL REDEMPTION” herein. Authorization: The Bonds are being issued pursuant to authority established in Code of Iowa, 2023 as amended, Chapter 384 (the “Act”), and all laws amendatory thereof and supplementary thereto, and in conformity with a resolution (the “Resolution” or the “Bond Resolution”) of the City duly passed and approved. Security: The Bonds are valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable real property within the corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to the enforcement of creditors’ rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion. Investment Rating: An investment rating for the Bonds has been requested from Moody’s Investors Service, New York, New York. See “INVESTMENT RATING” herein. Purpose: The proceeds of the Bonds will be used to: (i) finance the cost of various essential and general corporate purpose capital improvements, and (ii) to pay the costs of issuing the Bonds. See “THE PROJECT” herein. Tax Matters: Ahlers & Cooney, P.C., Des Moines, Iowa, will provide an opinion as to the tax exemption of the Bonds as discussed under “TAX MATTERS” in this Official Statement. Interest on the Bonds is not exempt from present State of Iowa income taxes. See APPENDIX C for a draft form of legal opinion for the Bonds. Bank Qualified: The City intends to designate the Bonds as “qualified tax-exempt obligations”. Bond Registrar/Paying Agent: U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the “Registrar”). Delivery: The Bonds are expected to be delivered on or about June 1, 2023. Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein. Denomination: $5,000 or integral multiples thereof. Municipal Advisor: Speer Financial, Inc., Waterloo, Iowa and Chicago, Illinois. *Subject to change. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 2 CITY OF IOWA CITY Johnson County, Iowa Bruce Teague Mayor Council Members Megan Alter Laura Bergus Andrew Dunn Shawn Harmsen Pauline Taylor John Thomas ______________________________________ Officials Geoff Fruin Kellie Fruehling City Manager City Clerk Nicole Davies Eric Goers, Esq. Finance Director City Attorney ______________________________________ SECURITY AND SOURCE OF PAYMENT Pursuant to the Resolution and the Act, the Bonds and the interest thereon are general obligations of the City, and all taxable property within the corporate boundaries of the City is subject to the levy of taxes to pay the principal of and interest on the Bonds without constitutional or statutory limitation as to rate or amount. For a description of certain constitutional limits on the issuance of general obligation debt by the City, see “Debt Limitation” herein. Section 76.2 of the Act provides that when an Iowa political subdivision issues general obligation bonds, the governing authority of such political subdivision shall, by resolution adopted before issuing the bonds, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the bonds. A certified copy of this resolution shall be filed with the County Auditor in which the City is located, giving rise to a duty of the County Auditor to annually enter this levy for collection from the taxable property within the boundaries of the city, until funds are realized to pay the bonds in full. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due, the Resolution provides for the levy of a tax sufficient for that purpose on all the taxable property in the City in each of the years while the Bonds are outstanding. The City shall file a certified copy of the Resolution with the County Auditor, pursuant to which the County Auditor is instructed to enter for collection and assess the tax authorized. When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds and for no other purpose whatsoever. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 3 Nothing in the Resolution authorizing the Bonds prohibits or limits the ability of the City to use legally available moneys other than the proceeds of the general ad valorem property taxes levied as described in the preceding paragraph to pay all or any portion of the principal of or interest on the Bonds. If and to the extent such other legally available moneys are used to pay the principal of or interest on the Bonds, the City may, but shall not be required to, (a) reduce the amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes levied, as described in the preceding paragraph, to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds. CERTAIN BONDHOLDERS’ RISKS An investment in the Bonds is subject to certain risks. No person should purchase the Bonds unless such person understands the risks described below and is willing to bear those risks. There may be other risks not listed below which may adversely affect the value of the Bonds. In order to identify risk factors and make an informed investment decision, potential investors should be thoroughly familiar with this entire Official Statement (including the Appendices hereto) in order to make a judgement as to whether the Bonds are an appropriate investment. Potential Impact of The Coronavirus Beginning in early 2020, a strain of coronavirus commonly known as COVID-19 began to spread globally, negatively affecting global, state, and local economies and possibly sparking a recession. The State of Iowa may suffer material adverse consequences from the continued spread of COVID-19, which could affect the amount of State revenues appropriated to municipalities, including the City. The spread of the virus could reduce sales tax and other revenue collections, property valuations and other revenue sources dependent on local business activity. The City did not experience material reductions in revenue or material increases in expenses in fiscal years 2020, 2021 and 2022 due to COVID-19 and currently expects that material COVID-19-related financial impacts, if any, are expected to be covered by federal funding or mitigated by expenditure cuts. In fiscal year 2021, the City received over $6.9 million in CARES Act funds, which was partially used to offset revenue losses. The City has received $18.33 million in American Rescue Act funds. The City has established priorities for these funds and has awarded approximately $6,400,000 to different agencies for social services and tourism. The City has also used $676,000 for revenue replacement in its utility funds. The City cannot predict whether continued spread of the disease will materially impact its financial condition, in fiscal year 2023 or beyond. The spread of the virus could negatively affect the City’s financial condition, including, among others, lower property values, a delay in property tax collections, and other unpredicted unforeseen consequences, which may affect the City’s ability to pay principal of and interest on the Bonds. The Bonds are general obligations of the City. See “SECURITY AND SOURCE OF PAYMENT” herein. This information is based on current information available to the City that may be incomplete and unknown. This information was derived using certain assumptions and methodologies and includes unaudited financial information and projections. Some of this information is forward-looking and subject to change. Secondary Market There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history of economic prospects connected with a particular issue, secondary marketing practices in connection with a particular bond or note issue are suspended or terminated. Additionally, prices of bond or note issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price of the Bonds. EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT. THE SECONDARY MARKET FOR THE BONDS, IF ANY, COULD BE LIMITED. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 4 Ratings Loss Moody’s Investors Service, Inc. (“Moody’s”) has assigned a rating of “___” to the Bonds. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that the rating will continue for any given period of time, or that such rating will not be revised, suspended or withdrawn, if, in the judgment of Moody’s, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds. Various factors, including additional regulation of rating agencies could materially alter the methodology, rating levels, and types of ratings available, for example, and these changes, if ever, could materially affect the market value of the Bonds. Redemption Prior to Maturity In considering whether to make an investment in the Bonds, it should be noted the Bonds are subject to optional redemption, as outlined herein, without Bondholder discretion or consent. See “OPTIONAL REDEMPTION” herein. Forward-Looking Statements This Official Statement contains statements relating to future results that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When used in this Official Statement, the words “estimate,” “forecast,” “intend,” “expect” and similar expressions identify forward-looking statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual results to differ, possibly materially, from those contemplated in such forward-looking statements. Inevitably, some assumptions used to develop forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore, investors should be aware that there are likely to be differences between forward-looking statements and the actual results. These differences could be material and could impact the availability of funds of the City to pay debt service when due on the Bonds. Tax Matters, Bank Qualification and Loss of Tax Exemption As discussed under the heading “TAX MATTERS” herein, the interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Bonds, as a result of acts or omissions of the City in violation of its covenants in the Resolution. Should such an event of taxability occur, the Bonds would not be subject to a special prepayment and would remain outstanding until maturity or until prepaid under the prepayment provisions contained in the Bonds, and there is no provision for an adjustment of the interest rate on the Bonds. The City intends to designate the Bonds as “qualified tax-exempt obligations” under the exception provided in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). The City has further covenanted to comply with certain other requirements, which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code. Actions, or inactions, by the City in violation of its covenants could affect the designation, which could also affect the pricing and marketability of the Bonds. It is possible that legislation will be proposed or introduced that could result in changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult with their own tax advisors regarding any pending or proposed federal income tax legislation. The likelihood of any pending or future legislation being enacted or whether the currently proposed terms of any pending legislation will be altered or removed during the legislative process cannot be reliably predicted. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 5 It is also possible that actions of the City after the closing of the Bonds will alter the tax status of the Bonds, and, in the extreme, remove the tax exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory prepayment, and the interest rate on the Bonds does not increase or otherwise reset. A determination of taxability on the Bonds, after closing of the Bonds, could materially adversely affect the value and marketability of the Bonds. DTC-Beneficial Owners Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of principal of and interest on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC will credit such distributions to the accounts of the Participants which will thereafter credit them to the accounts of the Beneficial Owner either directly or indirectly through Indirect Participants. Neither the City nor the Paying Agent will have any responsibility or obligation to assure that any such notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial Owner. In addition, since transactions in the Bonds can be effected only through DTC Participants, Indirect Participants and certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate. Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the Participants. See APPENDIX B – Describing Book-Entry Only Issuance. Pension and OPEB Benefits The City participates in two public pension systems, Iowa Public Employee’s Retirement System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). In fiscal year 2022, pursuant to the IPERS’ required rate, the City’s Regular employees (members) contributed 6.29% of covered payroll and the City contributed 9.44% of covered payroll, for a total rate of 15.73%. The City’s contributions to IPERS for the year ended June 30, 2022 were $3,186,195. The City’s share of the contributions, payable from the applicable funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount. The City has always made its full required contributions to IPERS. At June 30, 2022, the City reported a liability of $554,067 for its proportionate share of the IPERS net pension liability. The net pension liability was measured as of June 30, 2021 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension liability was 7%. 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 IPERS participating employers. While the City’s contributions to IPERS are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See “APPENDIX A – ANNUAL COMPREHENSIVE FINANCIAL REPORT” for additional information on pension and liabilities of the City. In fiscal year 2022, pursuant to the MFPRSI’s required rate, the City’s employees (members) contributed 9.40% of earnable compensation and the City contributed 26.18% of earnable compensation, for a total rate of 35.58%. The City’s contribution to MFPRSI for year ended June 30, 2022 was $2,987,850. The City’s share of the contributions, payable from the applicable funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount. The City has always made its full required contributions to MFPRSI. At June 30, 2022, the City reported a liability of $7,925,715 for its proportionate share of the MFPRSI net pension liability. The net pension liability was measured as of June 30, 2021 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension liability was 7.5%. 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. While the City’s contributions to MFPRSI are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See “APPENDIX A – ANNUAL COMPREHENSIVE FINANCIAL REPORT” hereto for additional information on pension and liabilities of the City. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 6 The City operates a single-employer self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The following table shows the City’s total OPEB liability: Total OPEB Liability Beginning of Year ................................................. $ 9,697,868 Changes for the year Service Cost .......................................................................... 822,682 Interest .................................................................................. 225,747 Difference Between Expected and Actual Experience ........... (253,676) Changes in Assumptions ....................................................... (1,941,764) Benefit Payments .................................................................. (427,242) Net Changes ......................................................................................... (1,574,253) Total OPEB Liability End of Year ........................................................... $ 8,123,615 See APPENDIX A – Notes (7) and (8) herein for further discussion of the City’s employee retirement benefit obligations. Bond Counsel, Disclosure Counsel, the Municipal Advisor, and the City undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from IPERS or MFPRSI discussed above or included on the IPERS or MFPRSI websites, including, but not limited to, updates of such information on the State Auditor’s website or links to other Internet sites accessed through the IPERS or MFPRSI websites. Continuing Disclosure A failure by the City to comply with continuing disclosure obligations (see “CONTINUING DISCLOSURE” herein) will not constitute an event of default on the Bonds. Any such failure must be disclosed in accordance with Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and may adversely affect the transferability and liquidity of the Bonds and their market price. The City will covenant in a Continuing Disclosure Certificate for the benefit of the Owners and Beneficial Owners of the Bonds to provide annually certain financial information and operating data relating to the City (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City no later than two hundred ten (210) days after the close of each fiscal year, commencing with the fiscal year ending June 30, 2023, with the Municipal Securities Rulemaking Board, at its internet repository named “Electronic Municipal Market Access” (“EMMA”). The notices of events, if any, are also to be filed with EMMA. See “APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE.” The specific nature of the information to be contained in the Annual Report or the notices of events, and the manner in which such materials are to be filed, are summarized in “APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriter in complying with SEC Rule 15c2-12(b)(5) (the “Rule”). Cybersecurity The City, like many other public and private entities, relies on a large and complex technology environment to conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to, hacking, viruses, malware and other attacks on computer or other sensitive digital systems and networks. There can be no assurances that any security and operational control measures implemented by the City will be completely successful to guard against and prevent cyber threats and attacks. Failure to properly maintain functionality, control, security, and integrity of the City’s information systems could impact business operations and/or digital networks and systems and the costs of remedying any such damage could be significant. Along with significant liability claims or regulatory penalties, any security breach could have a material adverse impact on the City’s operations and financial condition. The City cannot predict whether its cyber liability policy will be sufficient in the event of a cyberattack. However, the Bonds are secured by an unlimited ad valorem property tax as described herein. See “SECURITY AND SOURCE OF PAYMENT” herein. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 7 Suitability of Investment The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk of investing in the Bonds. Each prospective investor should carefully examine this Official Statement and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment for such investor. Bankruptcy and Insolvency The rights and remedies provided in the Resolution may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors’ rights, to the exercise of judicial discretion in appropriate cases and to limitations in legal remedies against exercise of judicial discretion in appropriate cases and to limitations on legal remedies against municipal corporations in the State of Iowa. The various opinions of counsel to be delivered with respect to the Bonds and the Resolution, including the opinion of Bond Counsel, will be similarly qualified. If the City were to file a petition under Chapter Nine of the Federal Bankruptcy Code, the owners of the Bonds could be prohibited from taking any steps to enforce their rights under the Resolution. In the event the City fails to comply with its covenants under the Resolution or fails to make payments on the Bonds, there can be no assurance of the availability of remedies adequate to protect the interests of the holders of the Bonds. Under sections 76.16 and 76.16A of the Code of Iowa, as amended, a city, county, or other political subdivision may become a debtor under Chapter Nine of the Federal Bankruptcy Code, if it is rendered insolvent, as defined in 11 U.S.C. §101(32)(c), as a result of a debt involuntarily incurred. As used therein, “debt” means an obligation to pay money, other than pursuant to a valid and binding collective bargaining agreement or previously authorized bond issue, as to which the governing body of the city, county, or other political subdivision has made a specific finding set forth in a duly adopted resolution of each of the following: (1) that all or a portion of such obligation will not be paid from available insurance proceeds and must be paid from an increase in general tax levy; (2) that such increase in the general tax levy will result in a severe, adverse impact on the ability of the city, county, or political subdivision to exercise the powers granted to it under applicable law, including without limitation providing necessary services and promoting economic development; (3) that as a result of such obligation, the city, county, or other political subdivision is unable to pay its debts as they become due; and (4) that the debt is not an obligation to pay money to a city, county, entity organized pursuant to Chapter 28E of the Code of Iowa, or other political subdivision. Matters Relating to Enforceability of Agreements There is no bond trustee or similar person to monitor or enforce the provisions of the Bond Resolution. The owners of the Bonds should, therefore, be prepared to enforce such provisions themselves if the need to do so arises. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the Bond Resolution) may have to be enforced from year to year. Holders of the Bonds shall have and possess all the rights of action and remedies afforded by the common law, the Constitution and statutes of the State of Iowa and of the United States of America for the enforcement of payment of the Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit, action or mandamus to enforce and compel performance of the duties required by Iowa law and the Resolution. The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in the Resolution. The remedies available to the owners of the Bonds upon an event of default under the Resolution, in certain respects, may require judicial action, which is often subject to discretion and delay. Under existing law, including specifically the Federal Bankruptcy Code, certain of the remedies specified in the Resolution may not be readily available or may be limited. A court may decide not to order the specific performance of the covenants contained in these documents. The legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by general principles of equity and public policy and by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 8 No representation is made, and no assurance is given, that the enforcement of any remedies with respect to such assets will result in sufficient funds to pay all amounts due under the Resolution, including principal of and interest on the Bonds. Legislation From time to time, there are proposals pending in Congress and in the Iowa General Assembly that could, if enacted, alter or amend one or more of the matters described herein in certain respects or would adversely affect the market value of the Bonds, or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds. Further such proposals may impact the marketability or market value of the Bonds simply by being proposed. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted and there can be no assurance that such proposals will not apply to the Bonds. In addition regulatory actions are from time to time announced or proposed, and litigation threatened or commenced, which if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be impacted thereby. Changes in Property Taxation: From time to time the Iowa General Assembly has altered the method of property taxation and could do so again. Such alterations could adversely affect the City’s financial condition. Historically, changes to property tax calculations and impositions are imposed on a prospective basis. However, there is no assurance future changes to property taxation by the Iowa General Assembly will not be applied retroactively. It is impossible to predict the outcome of future property taxation changes by the Iowa General Assembly or resulting impacts on the City’s financial condition. However, the Bonds are secured by an unlimited ad valorem property tax as described more fully in the “SECURITY AND SOURCE OF PAYMENT” herein. Tax Levy Procedures The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied against all of the taxable real property within the corporate limits of the City. See “PROPERTY ASSESSMENT AND TAX INFORMATION” herein for more details. As part of the budgetary process each fiscal year, the City will have an obligation to request a debt service levy to be applied against all of the taxable real property within the corporate limits of the City. A failure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bondholders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the Bond Resolution) may have to be enforced from year to year. Loss of Tax Base Economic and other factors beyond the City’s control, such as economic recession, deflation of property values, or financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property caused by, among other eventualities, earthquake, flood, fire or other natural disaster, could cause a reduction in the assessed value within the corporate boundaries of the City. In addition, the State of Iowa has been susceptible to tornados, flooding and other extreme weather wherein winds and flooding have from time to time caused significant damage, which if such events were to occur, may have an adverse impact on the City’s financial position. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 9 Federal Funds Orders and State Funds Legislation Various federal executive orders, and Iowa Code Chapter 27A (collectively “ICE Enforcement Initiatives”), impose requirements intended to ensure compliance with the federal immigration detainment processes. The ICE Enforcement Initiatives impose various penalties for non-compliance, including the loss of state and/or federal funding under certain circumstances. The loss of state and/or federal funds in any significant amount could negatively impact the City’s overall financial position and may affect its rating and could slow down completion of certain of the Projects. However, the Bonds are secured by an unlimited ad valorem property tax and are not secured by state or federal funds. See “SECURITY AND SOURCE OF PAYMENT” herein. Other Factors An investment in the Bonds involves an element of risk. The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an informed investment decision, potential investors should become thoroughly familiar with this entire Official Statement and the Appendices hereto. THE CITY The City is located in East Central Iowa and was incorporated in 1853 under the laws of the State of Iowa (the “State”) and operates under the Council/Manager form of government. The 2020 Census reported population at 74,828. The City is the largest City in Johnson County (the “County”) and serves as the County seat. City Organization and Services The City is governed by a seven member Council and each member serves a four-year term. Elections are held every two years, allowing for continuation in office of at least three members in each biennial election. The Council members are elected at large, but three members are nominated from specific districts and the remaining four members are nominated at large. The Mayor is elected by the Council from its own members for a two-year term. The City Manager, City Attorney and City Clerk are appointed by the City Council. The City Manager is the chief administrative officer for the City. Currently the City employs approximately 578 full-time, 65 permanent part-time and 290 temporary employees, including a police force of 79 sworn personnel and a fire department of 65 fire fighters. The City considers its employee relations to be good. The City currently maintains labor agreements with the American Federation of State, County, and Municipal Employees (“AFSCME”) which contract expires June 30, 2026; with Police (“PLRO”) which contract expires June 30, 2025; and Fire fighters (“IAFF”) which contract expires June 30, 2024. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations), and a housing authority. Community Life The City was the first North American City to be awarded the City of Literature in North America by UNESCO in 2008, which has a goal of fostering cultural diversity. The City hosts a variety of cultural events, such as the Iowa Writers' Workshop, whose graduates include John Irving, Flannery O’Connor, T.C. Boyle; the International Writing Program; the Non-Fiction Writing Program; the Iowa Playwrights’ Workshop; and the Iowa Summer Writing Festival. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 10 Education Public education to the City is provided by the Iowa City Community School District (the “District”), with certified enrollment of 14,440 for Fiscal Year 2022-23. There are approximately 2,400 full and part-time employees of the District. The District owns and operates 19 pre-school sites, 21 elementary schools, three junior high schools, three comprehensive high schools, one alternative high school and a Transition Services Center (a program for special education students ages 18-21). Education is also provided through the Clear Creek – Amana Community School District, with certified enrollment of 2,938 for Fiscal Year 2022-23. Four year college programs and vocational training are available throughout the area including the University of Iowa and Kirkwood Community College. Transportation The City is approximately 115 miles east of the City of Des Moines, 20 miles southeast of the City of Cedar Rapids and 55 miles northwest of the City of Davenport. The Eastern Iowa Airport is located 20 miles from downtown Iowa City and is served by a number of national and regional air carriers. A general aviation airport, Iowa City Municipal Airport is located on the south side of the City. The Iowa Interstate Railway, and Cedar Rapids and Iowa City Railway provide the City’s rail service. Bus transportation is provided by Iowa City Transit, Coralville Transit, and the University of Iowa. There is also a system of paved bicycle paths in the City along the Iowa River and some main roads in the City have paved bicycle shoulders. SOCIOECONOMIC INFORMATION The following demographic information is for the City. Additional comparisons are made with the County and the State. Population The following table reflects population trends for the City, the County and the State. Population Comparison(1) The Percent The Percent The Percent Year City Change County Change State Change 1970 ..................... 46,850 n/a 72,127 n/a 2,824,376 n/a 1980 ..................... 50,508 7.81% 81,717 13.30% 2,913,808 3.17% 1990 ..................... 59,735 18.27% 96,119 17.62% 2,776,755 (4.70%) 2000 ..................... 62,220 4.16% 111,006 15.49% 2,926,324 5.39% 2010 ..................... 67,862 9.07% 130,882 17.91% 3,046,355 4.10% 2020 ..................... 74,828 10.26% 152,854 16.79% 3,190,369 4.73% Note: (1) Source: U.S. Bureau of the Census. Employment Following are lists of large employers located in the City. Major City Employers(1) Approximate Name Product/Service Employment University of Iowa ...................................................................... Education/Health Services ................................................................ 24,935 Iowa City Community School District ......................................... Education ......................................................................................... 2,000 Veterans Administration Medical Center .................................... Health Services ................................................................................ 2,000 Hy-Vee ...................................................................................... Grocery ............................................................................................. 1,350 Proctor and Gamble .................................................................. Health and Beauty Products ............................................................. 1,300 ACT, Inc. ................................................................................... Education Programs ......................................................................... 985 City of Iowa City ........................................................................ Government ...................................................................................... 863 NCS Pearson ............................................................................ Educational Testing Services ............................................................ 800 Goodwill of the Heartland .......................................................... Nonprofit ........................................................................................... 638 Note: (1) Source: the City. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 11 The following tables show employment by industry and by occupation for the City, the County and the State as reported by the U.S. Census Bureau 2017 - 2021 American Community Survey 5-year estimated values. Employment By Industry(1) The City The County The State Classification Number Percent Number Percent Number Percent Agriculture, forestry, fishing and hunting, and mining ............................. 314 0.8% 1,153 1.4% 59,850 3.7% Construction .......................................................................................... 1,173 2.8% 3,308 3.9% 108,302 6.7% Manufacturing........................................................................................ 2,497 6.0% 7,095 8.4% 240,629 14.8% Wholesale trade .................................................................................... 395 1.0% 1,351 1.6% 44,676 2.8% Retail trade ............................................................................................ 5,076 12.2% 9,243 11.0% 189,043 11.7% Transportation and warehousing, and utilities ........................................ 1,450 3.5% 2,814 3.4% 81,066 5.0% Information ............................................................................................ 618 1.5% 1,182 1.4% 23,698 1.5% Finance and insurance, and real estate and rental and leasing .............. 1,522 3.7% 4,460 5.3% 124,930 7.7% Professional, scientific, and management, and administrative and waste management services ............................................................... 2,924 7.0% 6,437 7.7% 121,124 7.5% Educational services, and health care and social assistance ................. 18,326 44.1% 34,086 40.6% 392,076 24.2% Arts, entertainment, and recreation, and accommodation and food services ....................................................................................... 5,296 12.7% 7,918 9.4% 115,503 7.1% Other services, except public administration .......................................... 1,224 2.9% 2,917 3.5% 68,951 4.3% Public administration ............................................................................. 760 1.8% 2,023 2.4% 50,948 3.1% Total .................................................................................................... 41,575 100.0% 83,987 100.0% 1,620,796 100.0% Note: (1) Source: U. S. Bureau of the Census, American Community Survey 5-Year Estimates from 2017 - 2021. Employment By Occupation(1) The City The County The State Classification Number Percent Number Percent Number Percent Management, business, science, and arts occupations ......................... 20,512 49.3% 42,182 50.2% 609,180 37.6% Service occupations .............................................................................. 8,257 19.9% 13,951 16.6% 253,347 15.6% Sales and office occupations ................................................................. 7,078 17.0% 15,078 18.0% 326,164 20.1% Natural resources, construction, and maintenance occupations ............. 1,492 3.6% 4,257 5.1% 155,994 9.6% Production, transportation, and material moving occupations ................ 4,236 10.2% 8,519 10.1% 276,111 17.1% Total .................................................................................................... 41,575 100.0% 83,987 100.0% 1,620,796 100.0% Note: (1) Source: U. S. Bureau of the Census, American Community Survey 5-Year Estimates from 2017 - 2021. The following shows the annual average unemployment rates for the City, the County, the State and the United States. Annual Average Unemployment Rates(1)(2) Calendar The The The United Year City County State States 2014 ........................ 3.0% 3.1% 4.2% 6.2% 2015 ........................ 2.5% 2.6% 3.7% 5.3% 2016 ........................ 2.4% 2.6% 3.6% 4.9% 2017 ........................ 2.4% 2.4% 3.1% 4.4% 2018 ........................ 1.9% 1.9% 2.6% 3.9% 2019 ........................ 1.9% 1.9% 2.7% 3.7% 2020(3) .................... 5.1% 4.7% 5.2% 8.1% 2021(3) .................... 3.8% 3.7% 3.8% 5.4% 2022 ........................ 2.4% 2.3% 2.7% 3.6% 2023(4) .................... 2.1% 2.3% 3.3% 3.9% Notes: (1) Source: Iowa Workforce Development. (2) Not seasonally adjusted. (3) The increase in unemployment rates may be attributable to the COVID-19 pandemic. See “BONDHOLDERS RISKS – Potential Impact of the Coronavirus” herein. (4) Preliminary rates for the month of February 2023. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 12 Housing The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied homes was $230,700. This compares to $248,100 for the County and $160,700 for the State. The following table represents the five year average market value of specified owner-occupied units for the City, the County and the State at the time of the 2017 - 2021 American Community Survey. Home Values(1) The City The County The State Value Number Percent Number Percent Number Percent Less than $50,000 ............................... 777 5.5% 1,977 5.5% 73,899 8.1% $50,000 to $99,999 .............................. 281 2.0% 954 2.7% 163,749 17.9% $100,000 to $149,999 .......................... 1,271 9.0% 2,823 7.8% 178,001 19.5% $150,000 to $199,999 .......................... 3,035 21.5% 6,148 17.1% 158,080 17.3% $200,000 to $299,999 .......................... 4,796 33.9% 10,866 30.2% 184,443 20.2% $300,000 to $499,999 .......................... 3,025 21.4% 9,653 26.8% 118,803 13.0% $500,000 to $999,999 .......................... 885 6.3% 3,238 9.0% 30,661 3.4% $1,000,000 or more ............................. 59 0.4% 313 0.9% 5,333 0.6% Total .................................................. 14,129 100.0% 35,972 100.0% 912,969 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2017 - 2021. Mortgage Status(1) The City The County The State Mortgage Status Number Percent Number Percent Number Percent Housing units with a mortgage ............. 9,048 64.0% 24,071 66.9% 551,824 60.4% Housing units without a mortgage ........ 5,081 36.0% 11,901 33.1% 361,145 39.6% Total .................................................. 14,129 100.0% 35,972 100.0% 912,969 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2017 - 2021. Income The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of $95,422. This compares to $105,652 for the County and $83,979 for the State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2017 - 2021 American Community Survey. Family Income(1) The City The County The State Income Number Percent Number Percent Number Percent Less than $10,000 ............................... 585 4.6% 1,016 3.1% 20,680 2.6% $10,000 to $14,999 .............................. 183 1.4% 384 1.2% 12,781 1.6% $15,000 to $24,999 .............................. 513 4.0% 1,129 3.4% 35,959 4.5% $25,000 to $34,999 .............................. 649 5.1% 1,246 3.8% 48,267 6.0% $35,000 to $49,999 .............................. 933 7.3% 2,693 8.2% 83,603 10.5% $50,000 to $74,999 .............................. 2,055 16.2% 4,460 13.6% 149,593 18.7% $75,000 to $99,999 .............................. 1,791 14.1% 4,315 13.2% 134,689 16.8% $100,000 to $149,999 .......................... 2,713 21.4% 8,345 25.4% 177,047 22.1% $150,000 to $199,999 .......................... 1,723 13.6% 4,459 13.6% 72,140 9.0% $200,000 or more ................................ 1,559 12.3% 4,758 14.5% 65,143 8.1% Total .................................................. 12,704 100.0% 32,805 100.0% 799,902 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2017 to 2021. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 13 The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of $51,925. This compares to $67,414 for the County and $65,429 for the State. The following table represents the distribution of household incomes for the City, the County and the State at the time of the 2017 - 2021 American Community Survey. Household Income(1) The City The County The State Income Number Percent Number Percent Number Percent Less than $10,000 ................................... 3,533 11.6% 4,688 7.7% 59,741 4.7% $10,000 to $14,999 .................................. 1,491 4.9% 2,110 3.5% 48,339 3.8% $15,000 to $24,999 .................................. 3,207 10.6% 4,720 7.8% 104,101 8.2% $25,000 to $34,999 .................................. 2,582 8.5% 4,949 8.2% 110,075 8.6% $35,000 to $49,999 .................................. 3,785 12.5% 6,864 11.3% 160,679 12.6% $50,000 to $74,999 .................................. 4,901 16.1% 9,568 15.8% 240,122 18.8% $75,000 to $99,999 .................................. 3,142 10.3% 6,686 11.0% 181,264 14.2% $100,000 to $149,999 .............................. 3,845 12.7% 10,625 17.5% 216,340 17.0% $150,000 to $199,999 .............................. 2,058 6.8% 5,024 8.3% 81,830 6.4% $200,000 or more .................................... 1,836 6.0% 5,339 8.8% 73,023 5.8% Total ...................................................... 30,380 100.0% 60,573 100.0% 1,275,893 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2017 - 2021. Retail Sales The Department of Revenue of the State of Iowa provides retail sales figures based on sales tax reports for years ending June 30. The Department of Revenue figures provide recent data to confirm trends in retail sales activity in the City. The following amounts exclude the City’s Local Option Tax. Retail Taxable Sales(1) Fiscal Year Taxable Annual Percent Ending June 30 Sales Change + (-) 2012 ............................. $767,122,555 n/a 2013 ............................. 793,201,342 3.40% 2014 ............................. 811,039,164 2.25% 2015 ............................. 838,853,686 3.43% 2016 ............................. 853,258,347 1.72% 2017 ............................. 874,928,988 2.54% 2018 ............................. 854,538,416 (2.33%) 2019 ............................. 866,389,134 1.39% 2020 ............................. 832,475,900 (3.91%) 2021 ............................. 858,860,019 3.17% Growth from 2012 to 2021 ......................................... 11.96% Note: (1) Source: the Iowa Department of Revenue. THE PROJECT Bond proceeds will be used to: (i) finance the cost of various essential and general corporate purpose capital improvements (the “Project”), and (ii) pay the costs of issuing the Bonds. More specifically, the Project includes the financing of the costs of the opening, widening, extending, grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public grounds; the construction, reconstruction, and repairing of any street and streetscape improvements, including landscaping and the replacement or planting of trees in public areas, related utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate for such purposes; equipping the fire department; the acquisition, construction, reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts, underpasses, grade crossing separations, and approaches thereto; and the rehabilitation and improvement of parks already owned, including facilities, equipment and improvements commonly found in city parks; the acquisition, reconstruction, redevelopment and equipping of the Terrell Mill Skate Park; the acquisition, reconstruction, improvement and equipping of the Mercer Park Ball Diamond; and the acquisition, installation, improving and equipping of city facilities and buildings, including the animal shelter, fire stations, and Riverside Festival Stage. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 14 DEFAULT RECORD The City has no record of default and has met its debt repayment obligations promptly. SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT The City has not issued tax anticipation warrants or revenue anticipation notes during the last five years to meet its short-term current year cash flow requirements. The City does not expect to issue any additional general obligation debt in calendar year 2023. DEBT INFORMATION Debt Limitation The amount of general obligation debt a political subdivision of the State of Iowa can incur is controlled by the constitutional debt limit, which is an amount equal to 5% of the actual value of taxable property within the corporate limits, taken from the last County Tax list. According to and based upon the January 1, 2021 property valuations, for taxes payable in September 2022 and March 2023, the City’s debt limit, based upon said valuation, amounts to the following: 2021 100% Actual Valuation of Property ............................... $7,248,396,257 Constitutional Debt Limit ....................................................... $ 362,419,813 Outstanding Bonds/Notes Applicable to Debt Limit: Total G.O. Debt Subject to Debt Limit.................................... $ 53,465,000* TIF Revenue Debt ................................................................. 10,880,000 Other Loans .......................................................................... 210,784 Other Legal Indebtedness (TIF Rebates) .............................. 33,698,585 Total Applicable Debt ............................................................ $ 98,254,369* Remaining Debt Capacity ...................................................... $ 264,165,444* Direct Debt Summary of General Obligation and Tax Increment Debt(1)(2) (Principal Only) General Obligation: Series 2014 ......................................................... $ 1,030,000 Series 2015 ......................................................... 1,730,000 Series 2016A ....................................................... 3,030,000 Series 2017A ....................................................... 4,165,000 Series 2018A ....................................................... 4,690,000 Series 2019 ......................................................... 5,625,000 Series 2020 ......................................................... 5,545,000 Series 2021 ......................................................... 9,055,000 Series 2022 ......................................................... 8,940,000 The Bonds(3) ...................................................... 9,655,000 Total General Obligation(3).............................. $53,465,000 Tax Increment Financing Revenue: Series 2016E ....................................................... $10,880,000 Total Tax Increment ......................................... $10,880,000 Notes: (1) Source: the City. (2) After the June 1, 2023 principal payments on the outstanding debt. (3) Subject to change. *Subject to change. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 15 GENERAL OBLIGATION DEBT(1)(2) (Principal Only) Fiscal Year Ending Series Series Series Series Series Series Series Series Series June 30 2014A 2015 2016A 2017A 2018A 2019 2020 2021 2022 2024 ........................................... $1,030,000 $ 850,000 $ 985,000 $1,000,000 $ 895,000 $ 985,000 $ 805,000 $ 1,135,000 $ 995,000 2025 ........................................... 0 880,000 1,010,000 1,025,000 915,000 875,000 790,000 1,135,000 995,000 2026 ........................................... 0 0 1,035,000 1,055,000 940,000 905,000 790,000 1,135,000 995,000 2027 ........................................... 0 0 0 1,085,000 960,000 940,000 790,000 1,135,000 995,000 2028 ........................................... 0 0 0 0 980,000 960,000 790,000 1,135,000 995,000 2029 ........................................... 0 0 0 0 0 960,000 790,000 1,135,000 995,000 2030 ........................................... 0 0 0 0 0 0 790,000 1,135,000 995,000 2031 ........................................... 0 0 0 0 0 0 0 1,110,000 995,000 2032 ........................................... 0 0 0 0 0 0 0 0 980,000 Total ......................................... $1,030,000 $1,730,000 $3,030,000 $4,165,000 $4,690,000 $5,625,000 $5,545,000 $9,055,000 $8,940,000 Fiscal Year Outstanding Total Ending General Obligation The General Obligation Cumulative Retirement(3) Principal & June 30 Debt Bonds(3) Debt(3) Amount Percent Interest(3) 2024 ........................................... $ 8,680,000 $1,360,000 $10,040,000 $10,040,000 18.78% $11,903,790 2025 ........................................... 7,625,000 920,000 8,545,000 18,585,000 34.76% 10,065,040 2026 ........................................... 6,855,000 920,000 7,775,000 26,360,000 49.30% 8,997,228 2027 ........................................... 5,905,000 920,000 6,825,000 33,185,000 62.07% 7,761,852 2028 ........................................... 4,860,000 920,000 5,780,000 38,965,000 72.88% 6,473,828 2029 ........................................... 3,880,000 920,000 4,800,000 43,765,000 81.86% 5,297,227 2030 ........................................... 2,920,000 920,000 3,840,000 47,605,000 89.04% 4,197,978 2031 ........................................... 2,105,000 925,000 3,030,000 50,635,000 94.71% 3,255,627 2032 ........................................... 980,000 925,000 1,905,000 52,540,000 98.27% 2,029,840 2033 ........................................... 0 925,000 925,000 53,465,000 100.00% 971,250 Total ......................................... $43,810,000 $9,655,000 $53,465,000 $60,935,660 Notes: (1) Source: the City. (2) After the June 1, 2023 principal payments on the outstanding debt. (3) Subject to change. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 16 STATEMENT OF BONDED INDEBTEDNESS(1)(2) City Actual Value, January 1, 2021 ............................................................................................................................................................. $7,248,396,257 City Taxable Value, January 1, 2021 .......................................................................................................................................................... $4,375,956,427 Per Capita Applicable Ratio to City Ratio to City (2020 Pop. Total Percent Amount Actual Value Taxable Value 74,828 ) Direct Bonded Debt(3) ................................... $ 53,465,000 100.00% $ 53,465,000 0.74% 1.22% $ 714.51 TIF Revenue Debt ......................................... 10,880,000 100.00% 10,880,000 0.15% 0.25% 145.40 Overlapping Debt: Iowa City Community School District ............. $166,785,450 58.67% $ 97,852,760 1.35% 2.24% 1,307.70 Clear Creek-Amana Community School Dist. 93,040,000 0.03% 27,912 0.00% 0.00% 0.37 Kirkwood Community College(4) ................... 47,395,233 14.38% 6,815,434 0.09% 0.16% 91.08 Johnson County ............................................ 9,602,400 42.40% 4,071,418 0.06% 0.09% 54.41 Total Applicable Overlapping Bonded Debt ............................................... $108,767,524 1.50% 2.49% $1,453.57 Total Direct and Overlapping Bonded Debt(3) ........................................... $173,112,524 2.39% 3.96% $2,313.47 Per Capita Actual Value .................................................................................................................................................................................... $96,867.43 Per Capita Taxable Value .................................................................................................................................................................................. $58,480.20 Notes: (1) Source: the City, Audited Financial Statements and Treasurer of the State of Iowa - Outstanding Obligations Report, debt as of June 30, 2022 for the School Districts, Community College and County. (2) As of the date of issuance for the Direct Bonded Debt and June 30, 2022 for Overlapping Debt. (3) Subject to change. (4) Excludes $43,925,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits from withholding taxes. Other Obligations Revenue Debt Payable from Net Revenues of the Municipal Water System: Series 2016D .................................................................. $1,045,000 Series 2017C .................................................................. 2,580,000 Total(1)(2) ..................................................................... $3,625,000 Notes: (1) Source: the City. (2) After the June 1, 2023 principal payments. PROPERTY ASSESSMENT AND TAX INFORMATION Property Tax Assessment In compliance with Section 441.21 of the Code of Iowa, as amended, the State Director of Revenue annually directs all county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The final values, called Actual Valuation, are then adjusted by the County Auditor. Assessed or Taxable Valuation subject to tax levy is then determined by the application of State determined rollback percentages, principally to residential property and commercial property. Beginning in 1978, the State required a reduction in Actual Valuation to reduce the impact of inflation on its residents. The resulting value is defined as the Assessed or Taxable Valuation. Such rollback percentages may be changed in future years. Certain historical rollback percentages for residential, multi-residential, agricultural and commercial valuations are as follows: City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 17 Percentages for Taxable Valuation After Rollbacks(1) Multi- Ag Land Commercial Fiscal Year Residential Residential(2) & Buildings & Industrial 2014/15 ................ 54.4002% N/A 43.3997% 95.0000% 2015/16 ................ 55.7335% N/A 44.7021% 90.0000% 2016/17 ................ 55.6259% 86.2500% 46.1068% 90.0000% 2017/18 ................ 56.9391% 82.5000% 47.4996% 90.0000% 2018/19 ................ 55.6209% 78.7500% 54.4480% 90.0000% 2019/20 ................ 56.9180% 75.0000% 56.1324% 90.0000% 2020/21 ................ 55.0743% 71.2500% 81.4832% 90.0000% 2021/22 ................ 56.4094% 67.5000% 84.0305% 90.0000% 2022/23 ................ 54.1302% 63.7500% 89.0412% 90.0000% 2023/24 ................ 54.6501% N/A 91.6430% 90.0000% Notes: (1) Source: the Iowa Department of Revenue. (2) New category beginning with fiscal year 2017, to be phased into residential category with valuations beginning January 1, 2022. Property is assessed on a calendar year basis. The assessments finalized as of January 1 of each year are applied to the following tax year. For example, the assessments finalized on January 1, 2021, are used to calculate tax liability for the tax year starting July 1, 2022 through June 30, 2023. Building Permits New construction building permits valuation have averaged $100,062,072 annually over the last 4 years in the City, excluding the value of land. City Building Permits(1) (Excludes the Value of Land) Calendar Year: 2019 2020 2021 2022 2023(2) New Construction No. of New Permits .................................... 120 120 159 122 4 Valuation: .................................................. $134,485,833 $51,863,761 $ 96,466,791 $117,431,904 $32,604,717 Remodeling Repair and Additions: No. of New Permits: ................................... 484 430 421 421 52 Valuation: .................................................. $ 97,036,048 $35,438,412 $ 39,023,795 $ 35,704,172 $11,827,797 Total Permits ............................................. 604 550 580 543 56 Total Valuations ......................................... $231,521,881 $87,302,173 $135,490,596 $152,723,322 $44,432,514 Notes: (1) Source: the City. (2) As of February 28, 2022. Property Tax Collection Each county is required by State law to collect all tax levies within its jurisdiction and remit, before the fifteenth of each month, the amount collected through the last day of the preceding month to underlying units of government, including the City. Property tax payments are made at the office of each county treasurer in full or one-half by September 30 and March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where the first half of any property tax has not been paid by October 1, such installment becomes delinquent. If the second installment is not paid, it becomes delinquent on April 1. Delinquent taxes and special assessments are subject to a penalty at the rate of one and one-half percent per month, to a maximum of eighteen percent per annum. If taxes are not paid when due, the property may be offered at the regular tax sale on the third Tuesday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property, and funds so received are applied to the payment of taxes. A property owner may redeem from the regular tax sale, but failing redemption within two years, the tax sale purchaser is entitled to a deed which in general conveys the title free and clear of all liens except future installments of taxes. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 18 Property Valuations and Trend of Valuations Actual (100%) Valuations for the City(1)(2) Preliminary Fiscal Year: 2019/20 2020/21 2021/22 2022/23 2023/24 Property Class Levy Year: 2018 2019 2020 2021 2022 Residential ........................................................ $4,431,104,380 $4,995,816,750 $5,140,954,110 $5,365,850,652 $6,006,505,164 Agricultural ........................................................ 2,539,080 1,748,000 1,727,980 1,574,220 1,650,370 Commercial ....................................................... 1,000,704,323 1,104,820,749 1,115,028,021 1,107,017,980 1,116,138,451 Industrial ........................................................... 79,346,989 80,669,700 80,001,410 79,499,810 79,655,130 Multi-residential(3) ............................................. 502,252,347 548,053,873 549,444,612 554,767,665 0 Railroads ........................................................... 3,601,348 4,488,469 4,072,190 4,380,355 4,628,817 Utilities without Gas and Electric(4) ................... 7,386,408 6,152,547 4,339,508 2,779,716 269,478 Gas and Electric Utility(4) .................................. 109,124,421 118,583,613 126,171,274 134,787,151 161,652,144 Less: Military Exemption ................................... (2,489,088) (2,435,380) (2,392,784) (2,261,292) (2,170,544) Total ................................................................ $6,133,570,208 $6,857,898,321 $7,019,346,321 $7,248,396,257 $7,368,329,010 Percent Change +(-) ........................................ 3.82%(5) 11.81% 2.35% 3.26% 1.65% Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations. (3) Included in Residential Property Class starting with January 1, 2022 valuations. (4) See “PROPERTY ASSESSMENT AND TAX INFORMATION - Utility Property Tax Replacement” herein. (5) Based on 2017 Actual Valuation of $5,907,660,998. Property Valuations and Trend of Valuations Taxable (“Rollback”) Valuations for the City(1)(2) For the January 1, 2022 levy year, the City’s Taxable Valuation was comprised of approximately 75% residential, 22% commercial, 2% industrial, 1% utilities and less than 1% agriculture, railroad and military exemption. Preliminary Fiscal Year: 2019/20 2020/21 2021/22 2022/23 2023/24 Property Class Levy Year: 2018 2019 2020 2021 2022 Residential ........................................................ $2,522,095,595 $2,751,410,912 $2,899,981,623 $2,904,545,542 $3,282,561,510 Agricultural ........................................................ 1,425,151 1,424,328 1,452,029 1,401,705 1,512,444 Commercial ....................................................... 900,633,903 994,338,692 1,003,525,240 996,316,203 959,563,607 Industrial ........................................................... 71,412,290 72,602,730 72,001,269 71,549,829 70,894,250 Multi-residential(3) ............................................. 376,689,677 390,488,458 370,875,229 353,664,442 0 Railroads ........................................................... 3,241,213 4,039,622 3,664,971 3,942,320 4,150,574 Utilities without Gas and Electric(4) ................... 7,386,408 6,152,547 4,276,538 2,779,716 269,478 Gas and Electric Utility(4) .................................. 42,719,065 40,156,239 40,595,608 44,017,962 43,501,718 Less: Military Exemption ................................... (2,489,088) (2,435,380) (2,392,784) (2,261,292) (2,170,544) Total ................................................................ $3,923,114,214 $4,258,178,148 $4,393,979,723 $4,375,956,427 $4,360,283,037 Percent Change +(-) ........................................ 4.74%(5) 8.54% 3.19% (0.41%) (0.36%) Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations. (3) Included in Residential Property Class starting with January 1, 2022 valuations. (4) See “PROPERTY ASSESSMENT AND TAX INFORMATION - Utility Property Tax Replacement” herein. (5) Based on 2017 Taxable Valuation of $3,745,477,705. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 19 Levies and Tax Collections(1) (Amounts Expressed in Thousands) The following shows the trend in the City’s tax extensions and collections. Levy Fiscal Amount Amount Percent Year Year Levied Collected(2) Collected 2012 ................. 2013-14 ................ $50,307 $49,836 99.06% 2013 ................. 2014-15 ................ 51,609 51,295 97.16% 2014 ................. 2015-16 ................ 52,034 52,074 100.08% 2015 ................. 2016-17 ................ 55,330 55,331 100.00% 2016 ................. 2017-18 ................ 56,458 56,347 99.80% 2017 ................. 2018-19 ................ 59,174 59,254 100.14% 2018 ................. 2019-20 ................ 60,297 58,972 97.80% 2019 ................. 2020-21 ................ 65,849 66,714 101.31% 2020 ................. 2021-22 ................ 66,912 67,104 100.28% 2021 ................. 2022-23 ................ 66,474 - - In Collections - - Notes: (1) Source: the State of Iowa Department of Management and the City. Does not include Levies or Collections for Utility Replacement. Does not include levies and collections for the City’s tax increment finance district. (2) Includes delinquent taxes. Larger Taxpayers(1) Levy Year 2021 Taxpayer Name Business/Service Taxable Valuation(2) Rise at Riverfront Crossings, LLC .......................................... Apartments .......................................................... $ 55,376,000 BBCS-Hawkeye Housing LLC ............................................... Real Estate Management/Apartments .................. 50,709,000 Tailwind Iowa City, LLC ......................................................... Real Estate Development .................................... 43,517,000 1201 Gilbert, LLC .................................................................. Residential Property ............................................. 37,097,000 Webber-Iowa LLC .................................................................. Real Estate .......................................................... 29,003,000 Vesper Iowa LLC ................................................................... Real Estate .......................................................... 28,918,000 American College Testing, Inc (aka ACT, Inc.) ...................... Commercial Property ........................................... 28,021,000 MidAmerican Energy ............................................................. Utility .................................................................... 27,749,000 MidwestOne Bank ................................................................. Commercial Property ........................................... 26,708,000 AugustaPlace LLC ................................................................. Real Estate .......................................................... 25,249,000 Total ................................................................................................................................................................. $352,347,000 Ten Larger Taxpayers as Percent of City’s 2021 Taxable Valuation ($4,375,956,427) ...................................... 8.05% Notes: (1) Source: the City. (2) Every effort has been made to seek out and report the larger taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. Levy Limits Normal municipal operations and maintenance costs are generally funded through the corporate property tax levy. Iowa State Code does not allow the municipal general fund to be taxed above $8.10 per thousand dollars of taxable value in any one year. In addition to the General Fund, there are several other tax funds that the City can create and use for specific purposes. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 20 Tax Rates Levy Years 2017 - 2021(1)(2) (Per $1,000 Actual Valuation) Fiscal Year: 2018/19 2019/20 2020/21 2021/22 2022/23 Levy Year: 2017 2018 2019 2020 2021 City: General Fund ..................................................... $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 Emergency Levy ................................................. 0.00000 0.00000 0.24000 0.24000 0.20000 Debt Service Fund .............................................. 3.22846 2.97846 2.57846 2.47846 2.47846 Employee Benefits ............................................. 3.34415 3.24415 3.34415 3.34415 3.34415 Capital Improvement .......................................... 0.00000 0.00000 0.00000 0.00000 0.00000 Other .................................................................. 1.51044 1.51044 1.51044 1.51044 1.51044 Total City .......................................................... $16.18305 $15.83305 $15.77305 $15.67305 $15.63305 Johnson County ................................................. $ 6.53594 $ 6.49278 $ 6.34581 $ 6.16774 $ 6.04075 Iowa City School District ..................................... 14.85629 14.79097 14.83935 14.85066 14.93382 Kirkwood Community College ............................. 1.20354 1.21331 1.25730 1.31195 1.34462 Other .................................................................. 0.30557 0.27066 0.33110 0.32744 0.30673 Total Tax Rate(3) ............................................. $39.08439 $38.60077 $38.54661 $38.33084 $38.25897 Notes: (1) Source: Iowa Department of Management. (2) Does not include the tax rate for agriculture. (3) Taxpayers in the Iowa City Community School District area. Tax Levy Procedures The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied against all of the taxable real property within the corporate limits of the City. As part of the budgetary process each fiscal year, the City will have an obligation to request a debt service levy to be applied against all of the taxable real property within the corporate limits of the City. A failure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bond holders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolution for the Bonds) may have to be enforced from year to year. Notwithstanding the foregoing, Iowa Code section 76.2 provides when an Iowa political subdivision issues general obligation bonds, “the governing authority of these political subdivisions before issuing bonds shall, by resolution, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county auditor or auditors of the counties in which the political subdivision is located; and the filing shall make it a duty of the auditor(s) to enter annually this levy for collection from the taxable property within the boundaries of the political subdivision until funds are realized to pay the bonds in full.” Utility Property Tax Replacement Property owned by entities involved primarily in the production, delivery, service and sale of electricity and natural gas (“Utilities”) pay a replacement tax based upon the delivery of energy by Utilities in lieu of property taxes. All replacement taxes are allocated among local taxing bodies by the State Department of Revenue and the Department of Management. This allocation is made in accordance with a general allocation formula developed by the Department of Management on the basis of general property tax equivalents. Utility properties paying the replacement tax are exempt from the levy of property tax by political subdivisions. In addition to the replacement tax, Utility property will continue to be valued by a special method as provided in the statute and taxed at the rate of three cents per one thousand dollars for the general fund of the State. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 21 By statute, the replacement tax collected by the State and allocated among local taxing bodies (including the City) shall be treated as property tax when received and shall be disposed of by the county treasurer as taxes on real estate. It is possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in future years if Utility property were determined to be other than “taxable property” for purposes of computing the City’s debt limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that future legislation will not (i) operate to reduce the amount of debt the City can issue or (ii) adversely affect the City’s ability to levy taxes in the future for the payment of the principal of and interest on its outstanding debt obligations, including the Bonds. Approximately 1% of the City’s levy year 2022 taxable valuation currently is utility property. Tax Increment Financing The Code of Iowa currently authorizes the use of two types of tax increment financing by local taxing districts in the State of Iowa. The first type allows local governments to establish TIF districts for the purposes of financing designated urban renewal projects which contribute to the urban redevelopment and economic development of the immediate area. The taxable valuation used for this type of TIF district in the City for levy year 2022 is $134,159,857. The second type of tax increment financing was authorized by state legislative action in the mid-1980’s. The area community colleges can establish TIF districts by contract with specific local businesses and industries to provide jobs training programming for new employees of existing expanding businesses or employees of new businesses. The revenues from these job training TIF districts then retires the debt incurred from the issuance of jobs training certificates which finance the cost of jobs training programming over a maximum of ten years. Upon payment of all jobs training certificates, the district dissolves and the incremental value from the new or expanded business reverts to the general tax base. There is no current valuation for this second type of TIF district. Legislation From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending federal or state tax legislation. During the 2019 legislative session, the Iowa General Assembly enacted Senate File 634 (the “2019 Act”). The 2019 Act modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the City’s budget. The 2019 Act also includes a provision that will require the affirmative vote of 2/3 of the City Council when the maximum property tax dollars under these levies exceed an amount determined under a prescribed formula. The 2019 Act does not change the process for hearing and approval of the Debt Service Levy pledged for repayment of the Bonds. During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “2013 Act”). Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property to 3%, (ii) assigned a “rollback” (the percentage of a property’s value that is subject to tax) to commercial, industrial and railroad property of 90%, (iii) created a new property tax classification for multi-residential properties (apartments, nursing homes, assisted living facilities and certain other rental property) and assigned a declining rollback percentage to such properties for each year until the residential rollback percentage is reached in the 2022 assessment year, after which the rollback percentage for such properties will be equal to the residential rollback percentage each assessment year, and (iv) exempted a specified portion of the assessed value of telecommunication properties. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 22 During the 2021 Iowa Legislative session, House File 418 (“2021 Act”) was signed into law on March 8, 2021, applicable to valuations beginning January 1, 2022. The 2021 Act removes the multi-residential property classification by reclassifying certain properties as subdivision of “residential” property. The multi-residential classification was created as part of the January 1, 2015 valuations and became unnecessary due to the equalization of the residential and multi-residential classifications as of January 1, 2022. The 2013 Act included a standing appropriation to replace some of the tax revenues lost by local governments, including tax increment district, resulting from the new rollback for commercial and industrial property. During the 2021 legislative session, Senate File 619 (“SF 619”) was signed into law on June 17, 2021, which phases out the standing appropriation payments over time to the City starting in Fiscal Year 2022-23 through Fiscal year 2025-2026. The appropriation does not replace losses to local governments resulting from the 2013Act’s provisions that reduce the annual revaluation growth limit for residential and agricultural properties to 3%, the gradual transition for multi-residential properties from the residential rollback percentage, or the reduction in the percentage of telecommunications property that is subject to taxation. HF2552, signed into law on May 2, 2022, alters the existing Business Property Tax Credit (BPTC) by changing the credit to an exemption and altering how local governments are reimbursed by the State for the property tax reductions associated with the exemption. A standing General Fund appropriation of up to $125 million is anticipated to be used to reimburse local governments for the tax reductions association with the exemption replacing the BPTC. Through FY 2029, reimbursement claims by local governments are expected to be less than $125 million. The standing appropriation is projected to be insufficient to cover the cost of the program starting with FY 2030, resulting in prorated reimbursement claims to local governments. Local government revenues may be negatively affected if the State does not increase or maintain the appropriation. Notwithstanding any modifications to property tax revenues that may result from the 2013 Act, the 2019 Act, the 2021 Act or SF 619 or HF2552, the Bonds are secured by an unlimited ad valorem property tax as described more fully in the “SECURITY AND SOURCE OF PAYMENT” herein. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 23 FINANCIAL INFORMATION Financial Reports The City’s financial statements are audited annually by certified public accountants. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governments. See APPENDIX A for more detail. No Consent or Updated Information Requested of the Auditor The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “FINANCIAL INFORMATION” section are from the audited financial statements of the City, including the audited financial statements for the fiscal year ended June 30, 2022 (the “2022 ACFR”). The 2022 ACFR has been audited by Bohnsack & Frommelt LLP, Certified Public Accountants, Moline, Illinois, (the “Auditor”), and received by the City Council. The City has not requested the Auditor to update information contained in the Excerpted Financial Information and the 2022 ACFR; nor has the City requested that the Auditor consent to the use of the Excerpted Financial Information and the 2022 ACFR in this Final Official Statement. The inclusion of the Excerpted Financial Information and the 2022 ACFR in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the City since the date of the 2022 ACFR. Questions or inquiries relating to financial information of the City since the date of the 2022 ACFR should be directed to the City. Summary Financial Information The following tables are summaries and do not purport to be the complete ACFRs, copies of which are available upon request. See APPENDIX A for the City’s 2022 ACFR. The City’s expects its General Fund balance for the fiscal year ending June 30, 2023 to decrease by approximately $5,100,000. A portion of the decrease is attributable to planned spenddown for facility improvements. The City has approved a budget for fiscal year 2024 with an anticipated decrease to the General Fund balance of approximately $3,100,000. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 24 STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES(1) (Amounts Expressed in Thousands) Audited as of June 30 2018 2019 2020 2021 2022 Assets: Equity in Pooled Cash and Investments .................................... $109,860 $111,645 $113,883 $130,934 $147,916 Receivables: Property Tax ............................................................................ 59,538 60,529 66,479 67,644 66,659 Accounts and Unbilled Usage .................................................. 817 941 707 1,002 904 Interest .................................................................................... 920 967 547 76 60 Notes ....................................................................................... 5,304 5,209 5,300 5,141 4,793 Internal Balances ....................................................................... (16,069) (20,055) (22,551) (24,229) (25,980) Lease Receivable ...................................................................... 0 0 0 0 98 Due from Other Governments.................................................... 4,067 7,584 7,125 5,651 7,486 Prepaids and Other Assets ........................................................ 810 907 13 0 0 Inventories ................................................................................. 602 650 793 786 935 Assets Held for Resale .............................................................. 562 689 480 400 1,820 Restricted Assets: Equity in Pooled Cash and Investments................................... 26,108 18,553 19,743 25,056 30,330 Capital Assets: Land and Construction in Progress .......................................... 73,176 51,291 41,160 38,054 42,344 Other Capital Assets (Net of Accumulated Depreciation) ......... 174,835 210,302 232,717 240,561 234,488 Total Assets........................................................................... $440,530 $449,212 $466,396 $491,076 $511,853 Deferred Outflows of Resources: Pension Related Deferred Outflows ........................................... $ 11,477 $ 11,255 $ 10,119 $ 12,833 $ 6,941 OPEB Related Deferred Outflows .............................................. 637 1,467 1,302 1,628 1,381 Total Deferred Outflows of Resources ................................... $ 12,114 $ 12,722 $ 11,421 $ 14,461 $ 8,322 Liabilities: Accounts Payable ...................................................................... $ 5,168 $ 3,399 $ 3,494 $ 2,913 $ 3,619 Contracts Payable ..................................................................... 3,663 5,864 3,725 2,840 4,131 Accrued Liabilities ..................................................................... 4,193 5,231 5,558 5,958 5,803 Interest Payable ........................................................................ 134 151 158 163 172 Deposits .................................................................................... 952 1,008 1,222 1,124 1,136 Advances from Grantors ............................................................ 124 98 3 9,470 16,830 Due to Other Governments ........................................................ 29 31 38 45 34 Notes Payable ........................................................................... 475 602 0 0 0 Noncurrent Liabilities: Due Within One Year: Employee Vested Benefits ...................................................... 1,253 1,308 1,525 1,546 1,461 Bonds Payable ....................................................................... 9,612 11,534 11,119 11,536 11,463 Due in More Than One Year: Employee Vested Benefits ...................................................... 987 1,012 1,206 1,204 1,127 Net Pension Liability ............................................................... 38,867 38,890 39,796 47,299 8,291 Other Post Employment Benefits Liability ............................... 5,472 6,401 6,253 7,030 5,796 Notes Payable ........................................................................ 211 211 211 211 211 Bonds Payable ....................................................................... 58,307 56,771 58,653 57,931 57,180 Total Liabilities ....................................................................... $129,447 $132,511 $132,961 $149,270 $117,254 Deferred Inflows of Resources: Pension Related Deferred Inflows............................................ $ 1,565 $ 1,940 $ 3,045 $ 1,253 $ 27,830 OPEB Related Deferred Inflows .............................................. 246 216 560 492 1,828 Lease Related Deferred Inflows ............................................... 0 0 0 0 98 Succeeding Year Property Taxes ............................................ 59,173 60,296 65,850 66,912 66,475 Total Deferred Inflows of Resources ...................................... $ 60,984 $ 62,452 $ 69,455 $ 68,657 $ 96,231 Net Position: Net Investment in Capital Assets ............................................... $203,077 $208,028 $220,004 $228,418 $230,285 Restricted for or by: Employee Benefits................................................................... 3,119 4,249 3,875 3,973 4,446 Capital Projects: Expendable(2) ........................................................................ 21,463 17,020 11,464 12,266 13,180 Nonexpendable(2) .................................................................. 0 0 278 218 243 Debt Service ............................................................................ 8,423 9,514 9,590 7,388 7,190 Police ...................................................................................... 283 214 294 271 285 Other Purposes Expendable ............................................................................ 4,469 4,359 4,552 6,300 8,473 Nonexpendable ...................................................................... 0 0 69 69 69 Grant Agreement ..................................................................... 3,733 3,463 3,456 3,179 3,014 Unrestricted ............................................................................... 17,646 20,124 21,819 25,528 39,505 Total Net Position .................................................................. $262,213 $266,971 $275,401 $287,610 $306,690 Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2018 through 2022. (2) For fiscal years 2018 – 2019 amount is classified as expendable. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 25 STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES(1) (Amounts Expressed in Thousands) Audited for the Year Ended June 30 2018 2019 2020 2021 2022 Function/Programs: Governmental Activities: Public Safety ........................................................................... $ (20,466) $ (20,862) $ (22,728) $ (25,853) $ (18,337) Public Works ........................................................................... (3,084) (2,516) (4,737) (2,958) (3,039) Culture and Recreation ............................................................ (15,189) (14,834) (15,451) (15,442) (15,902) Community and Economic Development ................................. (10,166) (14,116) (7,760) (4,792) (4,275) General Government ............................................................... (5,338) (5,807) (6,137) (8,757) (5,677) Interest on Long-Term Debt ..................................................... (1,414) (1,444) (1,452) (1,561) (1,553) Total Governmental Activities ................................................ $ (55,657) $ (59,579) $ (58,265) $ (59,363) $ (48,783) General Revenues: Property Taxes, Levied for General Purposes ......................... $ 59,046 $ 61,739 $ 62,846 $ 69,482 $ 70,678 Hotel/Motel Tax ....................................................................... 1,046 1,302 1,135 938 1,708 Gas and Electric Tax ............................................................... 684 668 677 644 684 Utility Franchise Tax ................................................................ 976 965 884 994 1,149 Grants and Contributions Not Restricted to Specific Purposes . 1,547 1,552 1,513 1,587 1,555 Earnings (loss) on Investments ................................................ 2,368 3,257 2,585 841 (544) Gain on Disposal of Capital Assets .......................................... 140 186 111 213 257 Miscellaneous.......................................................................... 3,656 3,329 3,331 3,030 3,524 Transfers ................................................................................... 1,814 (8,661) (6,387) (6,157) (11,148) Total General Revenues and Transfers ................................. $ 71,277 $ 64,337 $ 66,695 $ 71,572 $ 67,863 Changes in Net Position ............................................................ $ 15,620 $ 4,758 $ 8,430 $ 12,209 $ 19,080 Net Position Beginning of Year .................................................. 246,593 262,213 266,971 275,401 287,610 Net Position End of Year ........................................................... $262,213 $266,971 $275,401 $287,610 $306,690 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2018 through 2022. BALANCE SHEET GENERAL FUND(1) (Amounts Expressed in Thousands) Audited as of June 30 2018 2019 2020 2021 2022 Assets: Equity in Pooled Cash and Investments .................................... $36,321 $38,979 $42,371 $51,870 $ 57,398 Receivables: Property Taxes ........................................................................ 34,973 36,301 40,081 40,959 40,442 Accounts and Unbilled Usage .................................................. 496 491 355 508 508 Interest .................................................................................... 276 360 163 24 14 Notes ....................................................................................... 1,276 1,329 1,252 1,073 976 Due from Other Funds ............................................................... 0 0 299 174 0 Lease Receivable ...................................................................... 0 0 0 0 39 Advances to Other Funds .......................................................... 0 56 0 0 0 Due from Other Governments.................................................... 1,941 2,131 3,661 2,080 2,764 Prepaid Item .............................................................................. 726 818 13 0 0 Assets Held for Resale .............................................................. 562 689 480 400 1,820 Restricted Assets: Equity in Pooled Cash and Investments................................... 1,904 2,028 2,209 2,134 2,928 Total Assets........................................................................... $78,475 $83,182 $90,884 $99,222 $106,889 Liabilities, Deferred Inflows of Resources and Fund Balance: Liabilities: Accounts Payable .................................................................... $ 1,492 $ 1,497 $ 1,356 $ 1,672 $ 2,217 Accrued Liabilities.................................................................... 1,391 1,466 1,673 1,957 2,187 Due to Other Governments ...................................................... 29 31 38 38 34 Interest Payable ...................................................................... 5 17 0 0 0 Notes Payable ......................................................................... 475 602 0 0 0 Liabilities Payable from Restricted Assets: Deposits ................................................................................. 947 1,004 1,217 1,115 1,126 Advances from Grantors ......................................................... 113 94 0 19 19 Total Liabilities ....................................................................... $ 4,452 $ 4,711 $ 4,284 $ 4,801 $ 5,583 (continued on following page) City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 26 BALANCE SHEET GENERAL FUND(1) (Amounts Expressed in Thousands) (continued from previous page) Audited as of June 30 2018 2019 2020 2021 2022 Deferred Inflows of Resources: Unavailable Revenues: Succeeding Year Property Taxes ........................................... $34,764 $36,176 $39,720 $40,568 $ 40,340 Lease related deferred inflows ................................................ 0 0 0 0 39 Grants .................................................................................... 9 34 1,791 4 328 Other ...................................................................................... 1,600 1,643 1,716 1,628 1,769 Total Deferred Inflows of Resources ...................................... $36,373 $37,853 $43,227 $42,200 $ 42,476 Fund Balance: Nonspendable ......................................................................... $ 793 $ 887 $ 549 $ 469 $ 1,889 Restricted ................................................................................ 1,942 1,808 1,747 1,455 2,015 Committed ............................................................................... 4,962 0 0 0 0 Assigned ................................................................................. 1,437 3,565 5,708 9,883 14,852 Unassigned ............................................................................. 28,516 34,358 35,369 40,414 40,074 Total Fund Balance ............................................................... $37,650 $40,618 $43,373 $52,221 $ 58,830 Total Liabilities, Deferred Inflows of Resources and Fund Balance ................................................................ $78,475 $83,182 $90,884 $99,222 $106,889 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2018 through 2022. STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND(1) (Amounts Expressed in Thousands) Audited Fiscal Year Ended June 30 2018 2019 2020 2021 2022 Revenues: Taxes ........................................................................................ $ 35,363 $37,426 $38,087 $42,635 $43,691 Licenses and Permits ................................................................ 2,734 2,981 2,352 2,541 2,786 Intergovernmental ..................................................................... 3,786 4,099 4,009 5,924 4,046 Charges for Service ................................................................... 1,465 1,595 1,113 808 1,711 Fines and Forfeits ...................................................................... 695 776 609 375 434 Use of Money and Property ....................................................... 1,164 1,599 1,102 456 33 Miscellaneous............................................................................ 1,878 1,950 2,031 1,688 1,694 Total Revenues ..................................................................... $ 47,085 $50,426 $49,303 $54,427 $54,395 Expenditures: Current: Public Safety ........................................................................... $ 22,762 $23,858 $24,611 $24,764 $25,783 Public Works ........................................................................... 1,871 1,922 2,219 2,076 2,527 Cultural and Recreation ........................................................... 13,099 13,096 13,146 12,407 14,722 Community and Economic Development ................................. 2,785 3,561 3,678 3,487 3,325 General Government ............................................................... 5,550 6,144 6,336 6,676 7,310 Capital Outlay ............................................................................ 2,124 1,718 2,088 1,828 1,291 Total Expenditures ................................................................. $ 48,191 $50,299 $52,078 $51,238 $54,958 Excess (Deficiency) of Revenues Over (Under) Expenditures ... $ (1,106) $ 127 $ (2,775) $ 3,189 (563) Other Financing Sources (Uses): Issuance of Debt ....................................................................... $ 17 $ 0 $ 0 $ 0 $ 0 Sale of Capital Assets ............................................................... 140 758 111 233 255 Transfers In ............................................................................... 10,138 11,548 12,578 12,567 14,167 Transfers Out ............................................................................ (13,635) (9,465) (7,159) (7,141) (7,250) Total Other Financing Sources and (Uses) ............................ $ (3,340) $ 2,841 $ 5,530 $ 5,659 $ 7,172 Net Change in Fund Balance ..................................................... $ (4,446) $ 2,968 $ 2,755 $ 8,848 $ 6,609 Fund Balance, Beginning........................................................... 42,096 37,650 40,618 43,373 52,221 Fund Balance, Ending ............................................................... $ 37,650 $40,618 $43,373 $52,221 $58,830 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2018 through 2022. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 27 REGISTRATION, TRANSFER AND EXCHANGE See also APPENDIX B - BOOK-ENTRY SYSTEM for information on registration, transfer and exchange of book-entry bonds. The Bonds will be initially issued as book-entry bonds. The City shall cause books for the registration and for the transfer of the Bonds to be kept at the principal office maintained for the purpose by U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the “Bond Registrar”). The City will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the City* for use in the transfer and exchange of Bonds. Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Bond Resolution. Upon surrender for transfer or exchange of any Bond at the principal office maintained for the purpose by the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner’s attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and interest rate of authorized denominations, for a like aggregate principal amount. The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid. The Bond Registrar shall not be required to transfer or exchange any Bond following the close of business on the fifteenth day of the month next preceding an interest payment date on such bond (known as the record date), nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen days next preceding mailing of a notice of redemption of any Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner’s legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a bond surrendered for redemption. TAX MATTERS Tax Exemption Federal tax law contains a number of requirements and restrictions that apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of Bond proceeds and facilities financed with Bond proceeds, and certain other matters. The City has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Subject to the City’s compliance with the above-referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes. Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (as defined in Section 59(k) of the Code) for the purpose of computing the alternative minimum tax imposed on corporations for tax years beginning after December 31, 2022. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 28 Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations Bond Counsel will not express any opinion as to such collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors as to collateral federal income tax consequences. The interest on the Bonds is not exempt from present Iowa income taxes. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. Qualified Tax Exemption Obligations The Bonds will be designated as “qualified tax-exempt obligations” under the exception provided in Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). Discount and Premium Bonds The initial public offering price of certain Bonds may be less than the amount payable on such Bonds at maturity (“Discount Bonds”). Purchasers of Discount Bonds should consult with their own tax advisors with respect to the determination of accrued original issue discount on Discount Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Discount Bonds. It is possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on Discount Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment. The initial public offering price of certain Bonds may be greater than the amount of such Bonds at maturity (“Premium Bonds”). Purchasers of the Premium Bonds should consult with their own tax advisors with respect to the determination of amortizable premium on Premium Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium Bonds. Other Tax Advice In addition to the income tax consequences described above, potential investors should consider the additional tax consequences of the acquisition, ownership, and disposition of the Bonds. For instance, state income tax law may differ substantially from state to state, and the foregoing is not intended to describe any aspect of the income tax laws of any state. Therefore, potential investors should consult their own tax advisors with respect to federal tax issues and with respect to the various state tax consequences of an investment in Bonds. Audits The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. To the best of the City’s knowledge, no obligations of the City are currently under examination by the Service. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the Bondh olders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 29 Reporting and Withholding Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. Tax Legislation Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may be considered by the Iowa General Assembly. Court proceedings may also be filed, the outcome of which could modify the tax treatment. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest or other income on the Bonds or the market value or marketability of the Bonds. These adverse effects could result, for example, from changes to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Bonds from gross income for federal or state income tax purposes for all or certain taxpayers. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the bonds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation. Enforcement There is no trustee or similar person to monitor or enforce the terms of the Bond Resolution. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the Bond Resolution) may have to be enforced from year to year. The owners of the Bonds cannot foreclose on property within the boundaries of the City or sell such property in order to pay the debt service on the Bonds. In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth in Bond Counsel’s opinion. The opinion will state, in part, that the obligations of the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, to the exercise of judicial discretion in appropriate cases and to the exercise by the State and its governmental bodies of the police power inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to it by the Constitution of the United States of America. The Opinion The FORM OF LEGAL OPINION, in substantially the form set out in APPENDIX C to this Preliminary Official Statement, will be delivered at closing. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 30 Bond Counsel’s opinion is not a guarantee of a result, or of the transaction on which the opinion is rendered, or of the future performance of parties to the transaction, but represents its legal judgment based upon its review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of the City described in this section. No ruling has been sought from the Service with respect to the matters addressed in the opinion of Bond Counsel and Bond Counsel’s opinion is not binding on the Service, nor does the rendering of the opinion guarantee the outcome of any legal dispute that may arise out of the transaction. Bond Counsel assumes no obligation to update its opinion after the issue date to reflect any further action, fact or circumstance, or change in law or interpretation, or otherwise. Bond Counsel Review Bond Counsel has approved the language included in this “TAX MATTERS” Section but has not otherwise participated in the preparation of this Preliminary Official Statement and will not pass upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor attempted to examine or verify, any of the financial or statistical statements or data contained in this Preliminary Official Statement, and will express no opinion with respect thereto. ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX ADVISORS WITH RESPECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP OF THE BONDS (INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE). CONTINUING DISCLOSURE For the purpose of complying with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Rule”), the City will covenant and agree, for the benefit of the registered holders or beneficial owners from time to time of the outstanding Bonds to provide reports of specified information and notice of the occurrence of certain events, as hereinafter described (the “Disclosure Covenants”). The information to be provided on an annual basis, and the events as to which notice is to be given, is set forth in “APPENDIX D – Form of Continuing Disclosure Certificate”. This covenant is being made by the City to assist the Underwriter(s) in complying with the Rule. Breach of the Disclosure Covenants will not constitute a default or an “Event of Default” under the Bonds or Resolution, respectively. A broker or dealer is to consider a known breach of the Disclosure Covenants, however, before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the Disclosure Covenants may adversely affect the transferability and liquidity of the Bonds and their market price. Pursuant to the Rule, in the last five years, the City, to the best of its knowledge, failed to timely file a material event notice for a financial obligation entered into on August 1, 2019. The City has taken steps to ensure future filing of this information in compliance with the applicable undertakings. Bond Counsel expresses no opinion as to whether the Disclosure Covenants comply with the requirements of Section (b)(5) of the Rule. OPTIONAL REDEMPTION Bonds due June 1, 2024 - 2030 inclusive, are not subject to optional redemption. Bonds due June 1, 2031 - 2033, inclusive, are callable in whole or in part on any date on or after June 1, 2030, at a price of par and accrued interest. If selection by lot within a maturity is required, the Registrar shall designate the Bonds to be redeemed by random selection of the names of the registered owners of the entire annual maturity until the total amount of Bonds to be called has been reached. If less than all of the maturity is called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot the amount of each Participant’s interest in such maturity to be redeemed and each Participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 31 Thirty days’ written notice of redemption shall be given to the registered owner of the Bond. Failure to give written notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. Written notice will be deemed completed upon transmission to the owner of record. LITIGATION There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof. There is no litigation now pending, or to the knowledge of the City, threatened against the City that is expected to materially impact the financial condition of the City. LEGAL MATTERS The Bonds are subject to approval as to certain legal matters by Ahlers & Cooney, P.C., Des Moines, Iowa, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement except for guidance concerning the sections regarding “TAX MATTERS”, and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify any of the financial or statistical statements, or data contained in this Official Statement, and will express no opinion with respect thereto. A legal opinion in substantially the form set forth in APPENDIX C to this Official Statement will be delivered at closing. Ahlers & Cooney, P.C. is also serving as Disclosure Counsel for the City in connection with the issuance of the Bonds. The legal opinion to be delivered concurrently with the delivery of the Bonds expresses the professional judgment of the attorneys rendering the opinion as to legal issues expressly addressed therein. By rendering a legal opinion, the opinion giver does not become an insurer or guarantor of the result indicated by that expression of professional judgment, or of the transaction on which the opinion is rendered, or of the future performance of parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth in the Bond Counsel’s opinion. The opinion will state, in part, that the obligation of the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted to the extent constitutionally applicable, and to the exercise of judicial discretion in appropriate cases. OFFICIAL STATEMENT AUTHORIZATION This Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City, and all expressions of opinion, whether or not so stated, are intended only as such. This Official Statement is not to be construed as a contract or agreement amongst the City, the Underwriter, or the holders of any of the Bonds. Any statements made in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended merely as opinions and not as representations of fact. The information and expressions of opinions contained herein are subject to change without notice and neither the delivery of this Official Statement or the sale of the Bonds made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. The information contained in this Official Statement is not guaranteed. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 32 INVESTMENT RATING The City has supplied certain information and material concerning the Bonds and the City to the rating service shown on the cover page, including certain information and materials which may not have been included in this Official Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency: Moody’s Investors Service, 7 World Trade Center at 250 Greenwich Street, New York, New York 10007, telephone 212- 553-1658. UNDERWRITING The Bonds were offered for sale by the City at a public, competitive sale on May 2, 2023. The best bid submitted at the sale was submitted by ________ (the “Underwriter”). The City awarded the contract for sale of the Bonds to the Underwriter at a price of $___________ (reflecting the par amount of $_______, plus a reoffering premium of $_______, and less an Underwriter’s discount of $_______). The Underwriter has represented to the City that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the Final Official Statement. MUNICIPAL ADVISOR The City has engaged Speer Financial, Inc. as municipal advisor (the “Municipal Advisor”) in connection with the issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the rules of the MSRB. The Municipal Advisor will not participate in the underwriting of the Bonds. The financial information included in the Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. The Municipal Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Municipal Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement, nor is the Municipal Advisor obligated by the City’s continuing disclosure undertaking. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 33 MISCELLANEOUS Brief descriptions or summaries of the City, the Bonds, the Resolution and other documents, agreements and statutes are included in this Official Statement. The summaries or references herein to the Bonds, the Resolution and other documents, agreements and statutes referred to herein, and the description of the Bonds included herein, do not purport to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by reference to such documents, and the description herein of the Bonds is qualified in its entirety by reference to the form thereof and the information with respect thereto included in the aforesaid documents. Copies of such documents may be obtained from the City. Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or Owners of any of the Bonds. The attached APPENDICES A, B, C, and D are integral parts of this Official Statement and must be read together with all of the foregoing statements. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds nor any error in the printing of such numbers shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for any Bonds. The City has reviewed the information contained herein which relates to it and has approved all such information for use within this Official Statement. The execution and delivery of this Official Statement has been duly authorized by the City. /s/ NICOLE DAVIES Finance Director CITY OF IOWA CITY Johnson County, Iowa The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 APPENDIX A CITY OF IOWA CITY JOHNSON COUNTY, IOWA FISCAL YEAR 2022 COMPREHENSIVE ANNUAL FINANCIAL REPORT Annual Comprehensive Financial Report City of Iowa City, Iowa For the fiscal year ended June 30, 2022 Prepared by: Finance Department City of Iowa City, Iowa Introductory Section Tab City of Iowa City, Iowa Table of Contents June 30, 2022 Page Introductory Section Table of contents ................................................................................................................................ 1 Letter of transmittal ............................................................................................................................ 3 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 City organizational chart .................................................................................................................... 13 City officials....................................................................................................................................... 14 Financial Section Independent Auditor’s Report ............................................................................................................ 15 Management’s Discussion and Analysis ............................................................................................ 19 Basic Financial Statements Government-wide financial statements Statement of net position ............................................................................................................. 30 Statement of activities .................................................................................................................. 33 Fund financial statements Balance sheet – governmental funds ............................................................................................ 34 Reconciliation of the balance sheet of the governmental funds to the statement of net position 35 Statement of revenues, expenditures, and changes in fund balances – governmental funds ....... 36 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities ..................................................................... 37 Statement of net position – proprietary funds .............................................................................. 38 Statement of revenues, expenses, and changes in fund net position – proprietary funds ............ 39 Statement of cash flows – proprietary funds ................................................................................ 40 Statement of fiduciary net position – custodial fund ................................................................... 41 Statement of changes in fiduciary net position – custodial fund ................................................. 42 Notes to financial statements .......................................................................................................... 43 Required Supplementary Information Budgetary comparison schedule – budget and actual – all governmental funds and enterprise funds – budgetary basis………………………………………………………………………… 80 Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 82 Note to required supplementary information – budgetary reporting…………………………….. 83 Schedule of the City’s proportionate share of MFPRSI net pension liability…………………… 84 Schedule of City’s MFPRSI contributions………………………………………………………. 86 Notes to required supplementary information – MFPRSI pension liability……………………... 88 Schedule of the City’s proportionate share of IPERS net pension liability…………………… .. 90 Schedule of City’s IPERS contributions……………………………………………………….... 92 Notes to required supplementary information – IPERS pension liability……………………….. 94 Required supplementary information – schedule of changes in the City’s total OPEB liability, related ratios and notes…………………….……………………………………..…….……… 95 Combining Fund Statements Combining balance sheet – nonmajor governmental funds ............................................................ 98 Combining statement of revenues, expenditures, and changes in fund balances – nonmajor governmental funds ...................................................................................................................... 99 Combining statement of net position – nonmajor enterprise funds ................................................ 102 Combining statement of revenues, expenses, and changes in fund net position – nonmajor enterprise funds ............................................................................................................................ 103 Combining statement of cash flows – nonmajor enterprise funds .................................................. 104 Combining statement of net position – internal service funds ........................................................ 106 1 City of Iowa City, Iowa Table of Contents June 30, 2022 Page Combining Fund Statements (continued) Combining statement of revenues, expenses, and changes in fund net position – internal service fund ............................................................................................................................ 107 Combining statement of cash flows – internal service funds .................................................... 108 Statistical Section (Unaudited) Net position by component ........................................................................................................... 111 Changes in net position ................................................................................................................ 112 Fund balances – governmental funds ........................................................................................... 114 Changes in fund balances – governmental funds ......................................................................... 115 General government tax revenues by source ................................................................................ 116 Assessed and taxable value of property ........................................................................................ 117 Property tax rates – direct and overlapping governments ............................................................ 118 Levies and collections .................................................................................................................. 119 Principal taxpayers ....................................................................................................................... 120 Larger water system customers .................................................................................................... 122 Sales history and water system charges ........................................................................................ 123 Larger sewer system customers .................................................................................................... 124 Sales history and sewer system charges ....................................................................................... 125 Ratios of outstanding debt by type ............................................................................................... 126 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ....... 127 Computation of direct and overlapping debt ................................................................................ 128 Legal debt margin information ..................................................................................................... 129 Schedule of revenue bond coverage ............................................................................................. 130 Schedule of TIF revenue bond coverage ...................................................................................... 131 Demographic and economic statistics .......................................................................................... 132 Principal employers ...................................................................................................................... 133 Full-time equivalent city government employees by function ..................................................... 134 Operating indicators by function .................................................................................................. 135 Capital assets by function ............................................................................................................. 136 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 ....................................................................................................................... 137 Independent auditor’s report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance ....................................................... 139 Schedule of expenditures of federal awards ................................................................................. 142 Notes to the schedule of expenditures of federal awards ............................................................. 145 Summary Schedule of Prior Audit Findings ................................................................................ 146 Schedule of findings and questioned costs ................................................................................... 147 Corrective action plan .................................................................................................................. 149 2 December 8, 2022 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Annual Comprehensive Financial Report (Annual Report) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2022 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City’s Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner designed to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatement. Bohnsack & Frommelt, LLP, a firm of independent public accountants has issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2022. Their opinion is included in the Financial Section of this report. The City is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Information to comply with the Uniform Guidance and “Government Auditing Standards” is included in the Compliance Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. 3 The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City’s operating departments and supervises the administration of the City’s personnel system. The City Manager supervises 562 full-time and 62 part-time permanent municipal employees and 313 temporary employees, including a police force of 79 sworn personnel and a fire department of 64 firefighters. The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office administers the City government's documentation, City licenses and permits, and provides information from the Municipal Code and City Ordinances to the public and other City departments. The City Clerk’s Office is also responsible for distributing and maintaining accurate records of all City Council proceedings. The Clerk supervises 3 full-time employees. The City Attorney is also appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal Counsel to the City Council, City Manager, the various City departments and staff, and most City commissions, committees and boards. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City operates a municipal off-street and on-street parking system in the downtown area. The City also operates a transit system. The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 31st. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts a three-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City’s financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Appropriations that are not spent lapse at the end of the year. 4 Information Useful in Assessing the Government’s Economic Condition The City's economic strength is based on the educational sector, medical services, and diversified manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the City’s largest employers with over 31,000 employees. The University of Iowa had an enrollment in fall 2022 of 31,656 students, which is a increase of 450 students from 31,206 students in the fall of 2021. The academic and research missions of the University, along with the health care services provided at its hospitals and clinics, have an extremely positive economic impact on the area. The City also has a significant number of national and international businesses, including Fortune 500 companies: ACT Inc., NCS Pearson, and Procter & Gamble. In February 2018, Procter & Gamble announced that in approximately two years they would be shifting their beauty care products production from Iowa City to their West Virginia plant. The announced plan was to eventually reduce the workforce from approximately 600 down to 100 employees. This would also impact nearby businesses that produce bottles and labels for this production plant in Iowa City. In May 2020, Procter & Gamble announced that they were going to maintain more employees in Iowa City by maintaining its oral rinse production here and by shifting newer product lines here. In addition, Procter & Gamble has added and is expanding an electric toothbrush plant in Iowa City which is expected to employ several hundred employees; it currently has added approximately 100 employees. The estimated investment in this new facility has been nearly $100 million. Overall, the continued economic development efforts with the Iowa City and Coralville Chambers of Commerce, private interests, the University of Iowa, other surrounding communities, and the Iowa City Area Development Group, have produced positive results with the retention and expansion of businesses. In addition, Iowa’s Creative Corridor is a seven-county alliance surrounding Iowa City and has been identified as one of the major growth areas for new business development in the State of Iowa. This Corridor gives employers workforce access to a region uniquely Iowan, founded with a manufacturing heritage, but actively seeking new frontiers and opportunities in information technology, biotechnology and bioprocessing, renewable energy, insurance and financial services, advanced manufacturing, and educational services. Continued developments within Iowa City and the region have a favorable impact upon the City's economy and growth. According to the 2020 census, the population of Iowa City is 74,828. This is an increase of 6,966 or 10.3% as compared to the 2010 census of 67,862. As a whole, the City's economy continues to grow, established firms continue to prosper and expand, and there are opportunities for growth for new businesses; however, the COVID-19 pandemic has had a substantial short-term impact on the City’s economy. On March 13, 2020, the President of the United States declared a national emergency in response to the COVID-19 pandemic, and the State of Iowa declared a public health disaster emergency on March 17, 2020. Much of the City of Iowa City, the State of Iowa, and the United States shut down at that time. Due to the impact of the pandemic, the historically low unemployment rate for the City took a dramatic jump up and was at 6.9% for June 2020. This still compared favorably against the State of Iowa at 7.1% and the National rate of 11.1%. Comparably, in June 2019, Iowa City’s unemployment rate was 2.2%, the State of Iowa’s was 2.8%, and the National rate was 3.7%. Iowa City’s economy has continued to improve and as of June 2022, Iowa City’s unemployment rate had fallen to 2.3% while the State of Iowa was at 2.6%, and the National rate was 3.6%. 5 The rate of new housing construction also decreased substantially due to the COVID-19 pandemic in 2020 and the City has seen an increase in 2021 based on the number of building permits issued. New housing building permits consisted of 136 new single-family houses and duplexes in 2021 as compared to 101 in 2020; multi-family dwelling units added during fiscal year 2021 was 155, compared to 49 in 2020; and mixed commercial/residential developments added 40 dwelling units in 2021 versus 0 residential units in 2020. Altogether new housing additions totaled 331 units valued at $82,570,307 in 2021 versus a total of 150 units valued at $42,363,387 in 2020. The City did see an increase in 2021 but the amounts were still less than pre COVID-19 totals of 556 units valued at $124,362,697 in 2019. Also reflecting the impact of the COVID-19 pandemic, the City had a decrease in commercial construction permits between 2019 and 2020. The value of permits for commercial and utility construction decreased from $8,841,863 in 2020 to $8,316,484 in 2021. The value of remodeling permits for residential and commercial properties increased slightly from $34,150,596 in 2020 to $37,374,362 in 2021. Total permits issued in 2020 for all purposes was 550 permits for $87,302,173 which was less than the 2021 total permit issuance of 580 permits for $135,490,596. The COVID-19 pandemic has had a significant short-term economic impact on the City of Iowa City; however, the City’s unemployment rate has dropped steadily since its peak in April 2020 as the City’s economy has started to open back up. The stability of the University of Iowa coupled with historically steady employment by the City’s multi-sector base of manufacturing and service industries helps to insulate the City from significant negative impacts of economic recessions. The City’s property valuations continue to rise which is indicative of the City's relative economic stability. The City is well positioned to recover from the negative economic effects of the COVID- 19 pandemic. Major Initiatives The City of Iowa City, with the assistance of Kirkwood Community College, completed the City’s Strategic Plan. The strategic planning process involved multiple steps, including gathering input from the general public, front-line City staff, department directors, and the City Council. The Strategic Plan establishes the following organizational priorities, programs, policies, and initiatives: 1. Promote a Strong and Resilient Local Economy • Through collaboration with local partners, increase opportunities for marginalized and low-income populations to obtain access to skills training, good jobs and affordable childcare • Encourage healthy, diverse, and sustainable economic activity throughout Iowa City, including taking steps to invigorate neighborhood commercial districts and create new small neighborhood commercial nodes • Effectively support growth and promotion of small locally-owned businesses, women and minority-owned businesses, and the local foods economy 2. Enhance Community Mobility for All Residents • Continue implementation of the City’s Bicycle Master Plan and pursue Gold Bicycle Friendly Community status from the League of American Bicyclists • Complete the Iowa City Area Transit Study, pursue recommended changes, and evaluate implementation outcomes, to ensure community needs are met by system changes • Ensure ease and safety of travel for residents and visitors through expansion of accessibility measures, improved connectivity, and use of adopted complete streets design standards 6 3. Foster Healthy Neighborhoods throughout the City • Identify new efforts to expand and adapt the City’s affordable housing and neighborhood improvement strategies to meet long-term needs throughout the community • Consider and adopt the South District form-based code and ensure it can be adapted to other parts of Iowa City • Continue implementation of the Parks Master Plan and complete an accompanying Recreational Facilities Master Plan • Monitor and report biannually on building and rental permit trends in the former rental cap neighborhoods • Support neighborhood activities and improvements that create vibrant, creative spaces and inspire a sense of place and community 4. Invest in Public Infrastructure, Facilities and Fiscal Reserves • Carefully prepare for significant financial challenges projected during the final years of State property tax reform mandates through fiscal year 2024 • Strive to continue to reduce the City’s overall property tax rate • Evaluate Local Option Sales Tax and other alternative revenues that may be needed to achieve Iowa City’s strategic objectives and reduce reliance on debt and property taxes • Develop a long-term plan to improve the pavement condition of City streets • Initiate physical and financial planning efforts to modernize and expand critical public facilities • Consider establishing a cost of development framework that can help guide decisions on how best to accommodate future growth 5. Strengthen Community Engagement and Intergovernmental Relations • Initiate a redesign of the City’s website • Pursue creative engagement techniques with a focus on reaching diverse populations and neighborhoods • Work collaboratively with other local governments and strengthen ties with our state and federal elected delegation 6. Demonstrate Leadership in Climate Action • Adopt and begin implementation of the Accelerating Iowa City’s Climate Actions Report • Track and effectively communicate progress toward reaching the Intergovernmental Panel on Climate Change’s (IPCC) carbon emission reduction targets adopted locally by the City Council in 2019 7. Advance Social Justice, Racial Equity, and Human Rights • Ensure City progress towards increasing diversity of staff in a manner that is reflective of community demographics • Complete the phased effort to raise the minimum wage for temporary employees to $15.00 per hour by July 1, 2021 • Continue emphasis on human rights-based training for city employees, boards and commissions, and the community • Establish priorities and ensure resources for increased access and translation of critical city messages • Continue partnerships with community organizations through the City’s Social Justice and Racial Equity grant program • Develop a coordinated effort across City departments to expand social and recreational programming for special populations 7 The City Council has also promoted private investment and re-development of other targeted areas throughout the community. The areas that are currently being focused on include the Riverfront Crossings area, the Downtown District, the Riverside Drive commercial area, and the Foster Road Urban Renewal Area. The Riverfront Crossing area is an initiative to revitalize the area south of Iowa City’s downtown district. This area was hard hit by flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. The district features a riverfront park with walking and biking trails, a variety of housing options near shopping, restaurants, a state-of-the-art recital hall and recreational facilities and is a short walk to downtown Iowa City and the University of Iowa campus. This area has seen significant development over the past few years. The Riverfront Crossings area is anchored by a 76.8 acre park that was formerly comprised of public facilities including the City’s north wastewater treatment plant. An $8.5 million hazard mitigation grant from the State of Iowa assisted the City in removing the public facilities in this area and then converting the area into a riverfront park and wetland. Construction of phases 1 through 3 of the park began in 2017 and were completed during the fall of 2019; phase 4 of the park started in 2019 and was completed in the fall of 2020. On the north side of the Riverfront Crossing area, the University of Iowa recently constructed the Voxman School of Music. On the opposite side of the street, the redevelopment of an empty lot was completed in the spring of 2019 which includes a 7-story, mixed-use building with 40 apartment units, retail space on the street level, and office space on the second floor. An adjacent building houses a 7-story Element Hotel by Marriott. The estimated cost of these developments is approximately $40 million. On the back side of the School of Music, a new development has been approved for two new 15 story towers with up to 820 total units and 1,575 beds. This area is approximately one city block in size, will provide right-of-way to re-connect Capitol Street, and has an estimated investment of $200 million. In the Downtown District, the City completed a streetscape plan for the Central Business District which included lighting, landscaping, parking, utility improvements, artwork, and pedestrian amenities. Reconstruction and enhancements for the Washington Street corridor were completed in 2017 and reconstruction of Black Hawk mini-park and the downtown pedestrian mall were completed last year. Other future downtown streetscape projects are scheduled in the five-year capital improvement program. The downtown has also seen significant private development over the past few years. Private development in the downtown area includes a new project started in 2021 which includes the historical renovation of several commercial buildings along the pedestrian mall and the construction of an 11-story, 120,000 square foot multi-residential with 102 residential units. The total project is estimated to cost $54.4 million. Other buildings in the downtown that have undergone major re-development recently include the Wilson Building and public space which has been developed into a 15-story mixed-use development known as the Chauncey; this building has 8 floors of residential units, a 35-unit hotel, two floors of commercial space, a movie theatre and a bowling alley. The project was estimated to cost $49 million. Also completed was the redevelopment of the City Hall parking lot and neighboring church into 126 residential units, parking, and commercial space. The project was estimated to cost $33.4 million. Both of these projects are mostly complete with the exception of some of the commercial spaces which are still being remodeled. Also new in 2020, was the addition of a 13,000+ square foot Target in a large downtown store front that had been vacant for years. This store represents a trend away from big box stores on the edges of town and a focus on University related downtown foot traffic. 8 The Riverside Drive commercial area is an area that stretches from the University of Iowa campus to the intersection of Highways 1 and 6 and is across the river from the Riverfront Crossings development area. The development of a 4-story, $16.1 million multi-family/student housing development in the Riverside Drive area was completed in late 2016, and adjacent to this development several new retail spaces including a gas station/marketplace and additional multi- residential housing units were also constructed or renovated. The City is developing a streetscape plan for this area which will include lighting, trails, landscaping, and other amenities and improvements. Construction of the streetscape and intersection improvements began in 2018 and were completed in 2020. Additional streetscape and trail improvements are planned for this area in the future. Development of the Foster Road Urban Renewal Area is underway which will convert a 53.29 acre wooded area north of the Downtown area and near Interstate 80 into a new residential/multi- residential development with a total estimated cost of approximately $33 million. A 53-unit, 55+ senior living facility was recently constructed, and an additional 52 townhomes are planned adjacent to the facility. The project also extended the Foster Road arterial from Dubuque Street to Prairie Du Chien Road, and the area will provide Low-Middle Income (LMI) funding through a tax increment district that can be used by the City anywhere to assist with the development of affordable housing. Long-term Financial Planning It is management’s intent to support the major City Council initiatives through budget appropriations, departmental operations, and employee development so that the organization as a whole is moving in the same direction. A significant influence in the preparation of the three-year financial plan (FY2022 – FY2024) was the passage of property tax reform (SF295) by the state legislature in 2013. The property tax reform bill had multiple components including a property tax rollback for commercial and industrial property, which reduced the taxable value of these property types. The bill established a State funded “backfill” to reimburse the City for lost property tax revenues due to the commercial and industrial rollback. The State “backfill” payments began in fiscal year 2015 but were capped at the fiscal year 2017 levels for years thereafter. Beginning in fiscal year 2023, the State began phasing out the “backfill” and it will be fully phased out in five years. The cumulative reduction in commercial and industrial property tax revenues due to this rollback are estimated to be $17,762,000 between fiscal year 2015 to fiscal year 2024, and the maximum reimbursement from the State during that time period would be $14,639,000 for a net loss in revenues of $3,123,000. For fiscal years 2015 through 2022, the City received actual State “backfill” payments for the commercial and industrial rollback totaling $12,463,744. This bill also limited the annual taxable valuation growth of residential and agricultural property to 3 percent, instead of the previous limit of 4 percent. The impact of this provision is that the taxable percentage of residential property is expected grow at a slower pace. Without this change, the estimated taxable percentage of residential property was estimated to be 60.85% in fiscal year 2024. With this provision in place, the estimated taxable percentage in fiscal year 2024 is estimated to be 55.11%, a reduction of 5.74%. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $22,638,000 from fiscal year 2015 to fiscal year 2024. The City will not receive any money from the State due to lost revenue from this provision. 9 SF295 also established a multi-residential property classification that includes mobile home parks, assisted living facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties to eventually tax them similarly to residential property, rather than commercial, by fiscal year 2024. The estimated cumulative loss from fiscal year 2015 to fiscal year 2024 is $17,178,027, which will not be reimbursed by the State of Iowa. Fiscal year 2017 was the first year for this new class of property, and the estimated lost revenue from this provision in from fiscal year 2017 to fiscal year 2022 was $11,077,464. Due to the passage of SF295, the City estimates its net revenue losses to be $26,848,000 for fiscal years 2015 through 2022. The cumulative net revenue loss from fiscal years 2015 through 2024 is estimated to be $41,126,902. It is possible that this could affect the City’s ability to finance services at current levels without finding other revenue sources or more efficient ways to deliver services. The City’s long-term financial planning strategy is to promote targeted economic development, diversify its revenue structure, control spending and create efficiencies, and to build adequate reserves and contingencies into its financial structure. In addition, the City is annually reviewing and adjusting its user fees, service charges, and fine structures to try to maintain all of its major enterprise funds with a positive net income after depreciation but before capital contributions, transfers, and extraordinary items. The City also continues to strive to reduce the City’s property tax levy rate to be competitive for economic development purposes. In fiscal year 2013, the City’s property tax levy rate was $17.269 per $1,000 of assessed value. The property tax levy rate has been reduced for nine consecutive years to $15.633 in fiscal year 2023. This has been a reduction of $1.636 per $1,000 of assessed value or 9.47% over that time period. In looking at expenses for the FY2022 – FY2024 Financial Plan and FY2023 operating budget, the City will generally experience increased expenditures; however, at a modest pace, with General Fund expenditures and total operating expenditures growing at approximately 3% or less from FY2022 to FY2023. Bargaining unit cost-of-living wage increases are approximately 2% to 4% each year. In prior years, the budgeted full-time equivalents (FTE) has generally remained flat - from 607.66 in FY2015 to 608.18 in FY2020, but in FY2021, the permanent FTE count increases to 624.08 primarily due to the conversion of temporary workers to permanent part-time or permanent full-time positions. In FY2022 & FY2023, three additional positions were added each year bringing the City’s total FTE to 630.90. In addition, public safety pension contribution rates increased slightly in FY2022 from 25.31% to 26.18%. The City has averaged a 4.95% increase in its health insurance premium rates over the previous eight years; however, is expecting an upward trend for health insurance rates in FY2022 and FY2023. Employee contributions, deductibles, and out-of-pocket maximums for health insurance are all expected to increase in FY2023, and employee contributions for health insurance are expected to increase in FY2023, which should help mitigate the impact to the City’s overall premium increase. In FY2024 we are expecting to see larger increases as all expenditures are seeing increases due to inflation. In balancing the budget for the three-year period, the City attempts to mitigate the growth of costs while continuing to provide high quality services by identifying ways to provide services more efficiently, reviewing and updating existing revenue sources to meet strategic goals, strategically funding new programming and economic development to ensure strong property value growth, providing for necessary improvements to existing infrastructure, and upholding fiscal integrity by maintaining adequate cash reserves. 10 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 (the Certificate) to the City of Iowa City, Iowa for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. The Annual Comprehensive Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last thirty-seven consecutive years. I believe our current report continues to conform to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA’s Award for Distinguished Budget Presentation for its annual appropriated budget beginning July 1, 2022. In order to qualify for the Distinguished Budget Presentation Award, the City’s budget document was judged to be proficient or outstanding in several categories including policy documentation, financial planning, and organization. This is the eleventh consecutive year the City has received this award. Responsibility and Acknowledgments The Department of Finance prepared the Annual Comprehensive Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2022. The City Council, as required by law, is responsible for the complete and accurate preparation of the City’s Annual Comprehensive Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the Assistant Finance Director, Jacklyn Fleagle, Accounting Coordinator, Mark Messer, and Senior Accountants, TaraLynne Werthmann and Angie Ogden. Also, I thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, Nicole Davies Finance Director 11 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City Iowa For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO 12 City of Iowa City Organization Chart CITY COUNCIL CITY ATTORNEY City Attorney • City Attorney CITY MANAGER City Manager • City Manager • Communications Office • Human Resources • Human Rights • Economic Development • Climate Action & Outreach AIRPORT COMMISSION Airport • Airport Operations LIBRARY BOARD Library • Library Operations • Library Development Office CITY CLERK City Clerk • City Clerk Fire • Administration• Emergency Operations• Fire Prevention• Training Public Works • Administration• Engineering• Streets• Wastewater• Water• Equipment • Resource Management Transportation Services • Administration• Parking• Public Transportation Police • Administration• Support Services• Field Operations Finance • Administration• Accounting• Purchasing• Revenue• Risk Management• Information Technology Services Neighborhood & Development Services • Administration• Development Services• Neighborhood Services• Metropolitan Planning Organizationof Johnson County Parks & Recreation • Administration• Recreation• Park Maintenance• Cemetery• Government Buildings Senior Center • Senior Center Operations ELECTED APPOINTED Departments & Divisions COMMUNITY 13 City of Iowa City, Iowa Listing of City Officials June 30, 2022 Elected Officials Term Expires Mayor Bruce Teague January 2, 2026 Council Member and Mayor Pro Tem Megan Alter January 2, 2026 Council Member Pauline Taylor January 2, 2024 Council Member John Thomas January 2, 2024 Council Member Shawn Harmsen January 2, 2026 Council Member Laura Bergus January 2, 2024 Council Member Janice Weiner January 2, 2024 Appointed Officials Date of Hire City Manager Geoff Fruin November 28, 2011 City Clerk Kellie Fruehling July 10, 2000 City Attorney Eric Goers September 7, 2005 Department Directors Deputy City Manager Redmond Jones II September 20, 2021 Assistant City Manager Rachel Kilburg June 8, 2020 Director of Neighborhood Development Services Tracy Hightshoe August 27, 2001 Library Director Elsworth Carman January 2, 2019 Director of Public Works Ron Knoche April 28, 1999 Director of Transportation Services Darian Nagle Gamm May 21, 2008 Senior Center Coordinator LaTasha DeLoach July 31, 2018 Fire Chief Scott Lyon April 4, 2022 Parks and Recreation Director Juli Seydell Johnson January 4, 2016 Director of Finance Nicole Davies August 4, 2014 Chief of Police Dustin Liston January 11, 2021 14 Financial Section Tabs Management’s Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 – 11 of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Iowa City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year ending June 30, 2022 by $738,063,000 (net position). Of this amount, $131,875,000 (unrestricted net position) may be used to meet the government’s ongoing obligations to its citizens and creditors. • The City’s total net position increased by $35,582,000 during the fiscal year. Governmental activities increased by $19,080,000 and business-type activities increased by $16,502,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $116,002,000, an increase of $11,659,000 in comparison with the prior year. Of this total amount, approximately $39,657,000 or 34.2% is unassigned and available for spending at the City’s discretion. • At the end of the current fiscal year, the City’s unassigned fund balance for the General Fund was $40,074,000 or 72.9% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets and deferred outflows of resources, liabilities and deferred inflows 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 in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the 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 Public Safety, Public Works (roads and traffic controls), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business-type activities of the City include Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water. The government-wide financial statements may be found on pages 30 – 33 of this report. 19 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 of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements and is typically the basis that is used in developing the next annual budget. 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. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has six major governmental funds: General Fund, Other Shared Revenue and Grants Fund, Employee Benefits Fund, Other Construction Fund, Bridge, Street and Traffic Control Construction Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non- major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 34 – 37 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 Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. Transit, Wastewater Treatment, Water, Sanitation, Stormwater and Housing Authority are considered to be major funds and are reported individually throughout the report. The other two non-major enterprise funds are grouped together for reporting purposes and listed under a single heading “Other Enterprise Funds”. Detailed information for each of the non-major funds is provided in the combining statements on pages 102 – 104. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38 – 40 of this report. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City’s own programs and therefore are not reflected in the government-wide financial statements. The City has one fiduciary fund: Project Green, which is maintained as a custodial fund. 20 The basic fiduciary funds financial statements can be found on pages 41 - 42. Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 – 78 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non- major governmental funds and internal service funds are presented immediately following the notes. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $738,063,000 at the close of the fiscal year ended June 30, 2022. By far, the largest portion of the City’s net position reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Position June 30, 2022 (amounts expressed in thousands) Governmental Business-type activities activities Total 2022 2021 2022 2021 2022 2021 Current and other assets 235,021$ 212,461$ 135,788$ 126,921$ 370,809$ 339,382$ Capital assets 276,832 278,615 333,503 328,262 610,335 606,877 Total assets 511,853 491,076 469,291 455,183 981,144 946,259 Deferred outflows of resources 8,322 14,461 1,907 2,684 10,229 17,145 Long-term liabilities outstanding 85,529 126,757 23,225 36,360 108,754 163,117 Current and other liabilities 31,725 22,513 6,272 6,025 37,997 28,538 Total liabilities 117,254 149,270 29,497 42,385 146,751 191,655 Deferred inflows of resources 96,231 68,657 10,328 611 106,559 69,268 Net position: Net investment in capital assets 230,285 228,418 325,787 315,915 556,072 544,333 Restricted 36,900 33,664 13,216 14,859 50,116 48,523 Unrestricted 39,505 25,528 92,370 84,097 131,875 109,625 Total net position 306,690$ 287,610$ 431,373$ 414,871$ 738,063$ 702,481$ 21 A portion of the City’s net position, $49,415,000 or 6.7%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, $132,576,000 or 18.0%, may be used to meet the government’s ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30, 2022, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The following is a more detailed review of FY22’s operation. Governmental Activities: Governmental activities increased the City’s net position by $19,080,000. The increase in net position of governmental activities is primarily from a decrease in pension expense due to a decrease in the net pension liability. The total revenues for governmental activities for FY22 were $108,572,000. Governmental activities are primarily funded through taxes, $74,219,000 or 68.4%, and grants and contributions, $20,362,000 or 18.8%. Taxes increased from the prior year by $2,161,000, mostly due to increased property taxes which was due to an increase in the taxable value of all property. Grants and contributions increased from prior year by $3,451,000 due mainly to additional funding from the American Rescue Plan Act. Expenses for governmental activities totaled $78,344,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY22, Public Safety accounted for the highest portion of governmental expenses, $23,609,000 or 30.1%, and decreased over the prior year due to a decrease in pension expense due to a decrease in the net pension liability. Public Works expenses of $17,746,000 or 22.7% made up another large portion of the governmental expenses and had a slight increase in expenses from the prior year. Culture and Recreation expenses of $16,923,000 or 21.6% made up the third highest portion of governmental expenses and had a slight increase in expenses from the prior year. Business-type Activities: Business-type activities increased the City’s total net position by $16,502,000. The increase in net position was primarily from the Transit and Water funds. Water generated operating income of $1,053,000 and received contributions of infrastructure of $3,771,000 from capital projects funds. Revenues for business-type activities totaled $66,534,000. The primary revenue source for business-type activities is charges for services, $42,694,000 or 64.2%. In addition for FY22, the City’s business type-activities had a significant portion, $22,774,000 or 34.2%, of their revenues from grants and contributions used to help fund operation and capital projects for business-type activities. The total expenses for business-type activities in FY22 were $61,180,000. Wastewater Treatment represented the highest portion of business-type activities, $12,105,000 or 19.8%, with Housing Authority, $11,832,000 or 19.3%, Sanitation, $10,113,000 or 16.5% Water, $9,477,000 or 15.5%, and Transit, $8,573,000 or 14.0%, making up the remainder of the majority of business-type activities expenses. 22 The graphs on the following pages represent a breakdown of revenue by source and expenses by program area for governmental and business-type activities. City of Iowa City's Changes in Net Position (amounts expressed in thousands) Governmental Business-type activities activities Total 2022 2021 2022 2021 2022 2021 Revenues: Program Revenues: Charges for services 10,754$ 8,500$ 42,694$ 41,549$ 53,448$ 50,049$ Operating grants and contributions 14,491 12,479 17,063 13,102 31,554 25,581 Capital grants and contributions 4,316 2,845 5,711 3,988 10,027 6,833 General Revenues: Property taxes 70,678 69,482 - - 70,678 69,482 Other taxes 3,541 2,576 - - 3,541 2,576 Grants and contributions not restricted to specific purposes 1,555 1,587 - - 1,555 1,587 Earnings (loss) on investments (544) 841 (190) 426 (734) 1,267 Gain on disposal of capital assets 257 213 23 22 280 235 Other 3,524 3,030 1,233 428 4,757 3,458 Total revenues 108,572 101,553 66,534 59,515 175,106 161,068 Expenses: Public safety 23,609 30,411 - - 23,609 30,411 Public works 17,746 16,363 - - 17,746 16,363 Culture and recreation 16,923 15,774 - - 16,923 15,774 Community and economic development 11,074 8,549 - - 11,074 8,549 General government 7,439 10,529 - - 7,439 10,529 Interest on long-term debt 1,553 1,561 - - 1,553 1,561 Wastewater treatment - - 12,105 12,520 12,105 12,520 Water - - 9,477 10,177 9,477 10,177 Sanitation - - 10,113 10,045 10,113 10,045 Housing authority - - 11,832 10,141 11,832 10,141 Parking - - 5,381 4,613 5,381 4,613 Airport - - 1,509 1,835 1,509 1,835 Stormwater - - 2,190 2,105 2,190 2,105 Transit - - 8,573 8,107 8,573 8,107 Total expenses 78,344 83,187 61,180 59,543 139,524 142,730 Change in net position before transfers 30,228 18,366 5,354 (28) 35,582 18,338 Transfers (11,148) (6,157) 11,148 6,157 - - Change in net position 19,080 12,209 16,502 6,129 35,582 18,338 Net position beginning of year 287,610 275,401 414,871 408,742 702,481 684,143 Net position end of year 306,690$ 287,610$ 431,373$ 414,871$ 738,063$ 702,481$ 23 24 25 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The financial reporting focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. As of the fiscal year ended June 30, 2022, the City’s governmental funds reported combined ending fund balances of $116,002,000, an increase of $11,659,000 in comparison with the prior year. Of this total amount, $39,657,000 constitutes unassigned fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City. The remainder of the fund balance is not available for new spending because of constraints imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted fund balance of $59,361,000 or 51.2% contains external restraints on its use. The assigned fund balances of $14,852,000 or 12.8% have been identified by the City to be used for specific purposes. The nonspendable fund balance is $2,132,000 or 1.8%, which the City is contractually required to maintain intact or cannot be spent because it is in a nonspendable format, such as inventories. The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2022, the unassigned fund balance of the General Fund was $40,074,000 while General Fund’s total fund balance was $58,830,000. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 72.9% of total General Fund expenditures of $54,958,000, while total fund balance represents 107.0% of that same amount. During the current fiscal year, the fund balance of the City’s General Fund increased by $6,609,000. This is due to transfers in from other funds. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $19,094,000, an increase of $803,000. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The change in the fund balance is due to bond sales. The fund balance in the Other Construction Fund was $9,757,000, an increase of $1,579,000. This fund accounts for the construction or replacement of other governmental general capital assets, such as administrative buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. This increase is mainly due to bond sales. The ending fund balance of the Debt Service Fund was $7,362,000, a decrease of $189,000, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). The ending fund balance of the Employee Benefits Fund was $4,131,000, an increase of $500,000. The ending fund balance of the Other Shared Revenue and Grants Fund was $12,396,000, an increase of $3,084,000 due to $2,821,000 developer fee for affordable housing. 26 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 ending net position of the enterprise funds was $408,393,000, an increase in net position of $14,738,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects and transfers of business-type capital assets from governmental capital project funds. Of the enterprise funds’ net position, $325,787,000 is net investment in capital assets. Unrestricted net position totaled $69,390,000, an increase of $6,509,000 compared to the previous year. The Internal Service funds showed net position totaling $55,012,000 as of June 30, 2022, an increase of $3,648,000 primarily due to operating income in the Equipment Maintenance and Loss Reserve Funds to build up reserves for future expenses and capital outlay. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues by $26,525,000 or 15.8% to a total of $194,798,000 and the expenditure budget by $81,362,000 or 47.0% to a total of $254,618,000. These increases were due primarily to capital projects in governmental and business- type funds because of timing of completion of projects. 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, 2022 amounts to $610,335,000, net of accumulated depreciation. This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other infrastructure represents the value of resources utilized to provide services to its citizens. The City’s investment in capital assets for the fiscal year ended June 30, 2022 decreased by $1,784,000 for governmental activities compared to the prior year and increased by $5,242,000 for business-type activities from the prior year. The following table reflects the $610,335,000 investment in capital assets, net of accumulated depreciation. City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Land 32,876$ 32,821$ 30,317$ 30,317$ 63,193$ 63,138$ Buildings 35,382 37,030 58,688 61,615 94,070 98,645 Improvements other than buildings 3,353 3,480 3,333 3,756 6,686 7,236 Machinery and equipment 33,933 34,675 17,435 14,784 51,368 49,459 Infrastructure 161,819 165,377 213,651 214,714 375,470 380,091 Construction in progress 9,469 5,233 10,079 3,075 19,548 8,308 Total 276,832$ 278,616$ 333,503$ 328,261$ 610,335$ 606,877$ 27 Major capital asset events during the current fiscal year included the following: • Three large construction projects were completed during FY 22. The first is the Melrose Court Sanitary Sewer Replacement. This project includes replacement of the sanitary sewer, street pavement and sidewalk along Melrose Court from Melrose Avenue to Brookland Park Drive. This project had construction in progress balance at the beginning of the year of $830,000 and current year expenditures of $948,000. The total cost of the project that was capitalized was $1,778,000. The project was funded by cash on hand from the Wastewater Fund. Another project is the dehumidification of the Mercer Recreation Center. This project consisted of HVAC and dehumidification upgrades to the Mercer Aquatic Center and Scanlon Gymnasium. It had a construction in progress balance at the beginning of the year of $127,000 and current year expenditures of $991,000. The total cost of the project that was capitalized was $1,118,000 and it was primarily funded through bond sales. The third project, Lower Muscatine Area Storm Sewer Improvements, installed new storm sewer and intake along several streets near their intersection with Lower Muscatine Road and Sycamore Street. This project was capitalized at $1,048,000 with current year expenses of $11,000 and a beginning construction in progress balance of $1,037,000. Additional information on the City’s capital assets can be found in Note 5 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $73,240,000. Of this amount, $53,935,000 comprises debt backed by the full faith and credit of the City. $1,718,000 or 3.2% of the general obligation bonds is debt that will be paid with Tax Increment Financing revenues. $19,305,000 represents revenue bonds secured solely by specific revenue sources. The City issued $10,255,000 of General Obligation bonds during FY22. This increase in debt was offset by the retirement of debt for a net decrease of City’s total bonded debt by $5,315,000. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody’s Investors Services, Inc. as of June 30, 2022 were as follows: General obligation bonds Aaa Wastewater treatment revenue bonds Aa2 Water revenue bonds Aa2 The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403 (tax increment). The current debt limitation for the City is $350,967,000. With outstanding debt applicable to this limit of $99,751,000 we are utilizing 28.4% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 General obligation bonds 53,935$ 53,935$ -$ -$ 53,935$ 53,935$ Revenue bonds 11,840 12,805 7,465 11,815 19,305 24,620 Total 65,775$ 66,740$ 7,465$ 11,815$ 73,240$ 78,555$ 28 Economic Factors and Next Year’s Budget and Rates The City expects continued constraints by the State’s property tax formula. The State passed property tax reform, which will negatively affect the City’s general operating funds. Without the potential for new revenue sources, like those mentioned above, the City’s opportunities for new initiatives are limited. The Council has established a budget where expenditures exceed revenues by $897 thousand in the General Fund for FY23 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FY23 is provided below: Requests for Information This report is designed to provide a general overview of the City of Iowa City’s finances for all of 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 City of Iowa City, Finance Department, 410 East Washington Street, Iowa City, IA, 52240. General Levy $ 8.100 Debt Service Levy 2.479 Employee Benefits Levy 3.344 Transit Levy 0.950 Liability Insurance Levy 0.290 Library Levy 0.270 Emergency Levy 0.200 Total City Levy $ 15.633 29 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 147,916$ 66,713$ 214,629$ Receivables: Property tax 66,659 - 66,659 Accounts and unbilled usage 904 3,650 4,554 Interest 60 46 106 Notes 4,793 326 5,119 Internal balances (25,980) 25,980 - Lease receivable 98 2,430 2,528 Due from other governments 7,486 7,885 15,371 Inventories 935 789 1,724 Assets held for resale 1,820 - 1,820 Restricted assets: Equity in pooled cash and investments 30,330 27,969 58,299 Capital assets: Land and construction in progress 42,344 40,396 82,740 Other capital assets (net of accumulated depreciation)234,488 293,107 527,595 Total assets 511,853 469,291 981,144 Deferred Outflows of Resources Pension related deferred outflows 6,941 1,352 8,293 OPEB related deferred outflows 1,381 555 1,936 Total deferred outflows of resources 8,322 1,907 10,229 Liabilities Accounts payable 3,619 1,320 4,939 Contracts payable 4,131 1,503 5,634 Accrued liabilities 5,803 792 6,595 Interest payable 172 113 285 Deposits 1,136 2,395 3,531 Advances from grantors 16,830 - 16,830 Due to other governments 34 35 69 Unearned revenue - 114 114 Noncurrent liabilities: Due within one year: Employee vested benefits 1,461 491 1,952 Bonds payable 11,463 3,944 15,407 Due in more than one year: Employee vested benefits 1,127 345 1,472 Net pension liability 8,291 188 8,479 Other post employment benefits liability 5,796 2,328 8,124 Notes payable 211 - 211 Bonds payable 57,180 3,702 60,882 Landfill closure/post-closure liability - 12,227 12,227 Total liabilities 117,254$ 29,497$ 146,751$ (continued) (amounts expressed in thousands) City of Iowa City, Iowa Statement of Net Position June 30, 2022 30 Governmental Business-type Activities Activities Total Deferred Inflows of Resources Pension related deferred inflows 27,830$ 7,093$ 34,923$ OPEB related deferred inflows 1,828 735 2,563 Lease related deferred inflows 98 2,430 2,528 Deferred amount on refunding - 70 70 Succeeding year property taxes 66,475 - 66,475 Total deferred inflows of resources 96,231 10,328 106,559 Net Position Net investment in capital assets 230,285 325,787 556,072 Restricted for or by: Employee benefits 4,446 - 4,446 Capital projects: Expendable 13,180 - 13,180 Nonexpendable 243 - 243 Debt service 7,190 - 7,190 Police 285 - 285 Other purposes Expendable 8,473 - 8,473 Nonexpendable 69 - 69 Bond ordinance - 8,209 8,209 State statute - 3,309 3,309 Future improvements - 404 404 Grant agreement 3,014 1,294 4,308 Unrestricted 39,505 92,370 131,875 Total net position 306,690$ 431,373$ 738,063$ The notes to the financial statements are an integral part of this statement. June 30, 2022 (amounts expressed in thousands) City of Iowa City, Iowa Statement of Net Position (continued) 31 3232 Operating Capital Charges Grants and Grants and Governmental Business-type Functions/Programs:Expenses for Services Contributions Contributions Activities Activities Total Governmental activities: Public safety 23,609$ 4,625$ 647$ -$ (18,337)$ -$ (18,337)$ Public works 17,746 149 10,243 4,315 (3,039) - (3,039) Culture and recreation 16,923 627 393 1 (15,902) - (15,902) Community and economic development 11,074 3,625 3,174 - (4,275) - (4,275) General government 7,439 1,728 34 - (5,677) - (5,677) Interest on long-term debt 1,553 - - - (1,553) - (1,553) Total governmental activities 78,344 10,754 14,491 4,316 (48,783) - (48,783) Business-type activities: Wastewater treatment 12,105 12,121 77 964 - 1,057 1,057 Water 9,477 10,127 42 481 - 1,173 1,173 Sanitation 10,113 11,289 105 - - 1,281 1,281 Housing authority 11,832 282 11,481 - - (69) (69) Parking 5,381 5,054 3 - - (324) (324) Airport 1,509 372 259 154 - (724) (724) Stormwater 2,190 1,704 - 696 - 210 210 Transit 8,573 1,745 5,096 3,416 - 1,684 1,684 Total business-type activities 61,180 42,694 17,063 5,711 - 4,288 4,288 Total 139,524$ 53,448$ 31,554$ 10,027$ (48,783) 4,288 (44,495) General revenues: Property taxes, levied for general purposes 70,678 - 70,678 Hotel/motel tax 1,708 - 1,708 Gas and electric tax 684 - 684 Utility franchise tax 1,149 - 1,149 Grants and contributions not restricted to specific purposes 1,555 - 1,555 Earnings (loss) on investments (544) (190) (734) Gain on disposal of capital assets 257 23 280 Miscellaneous 3,524 1,233 4,757 Transfers (11,148) 11,148 - Total general revenues and transfers 67,863 12,214 80,077 Changes in net position 19,080 16,502 35,582 Net position beginning of year 287,610 414,871 702,481 Net position end of year 306,690$ 431,373$ 738,063$ The notes to the financial statements are an integral part of this statement. Program Revenues Net (Expense) Revenue and Changes in Net Position City of Iowa City, Iowa Statement of Activities For the Year Ended June 30, 2022 (amounts expressed in thousands) 33 Bridge, Other Street, and Shared Traffic Other Revenue and Employee Other Control Debt Governmental General Grants Benefits Construction Construction Service Funds Total Assets Equity in pooled cash and investments 57,398$ 22,670$ 4,152$ 4,879$ 7,367$ 7,075$ 1,487$ 105,028$ Receivables: Property tax 40,442 842 14,071 - - 10,760 544 66,659 Accounts and unbilled usage 508 5 - - 150 3 12 678 Interest 14 6 - 3 6 2 1 32 Notes 976 507 - - - 204 3,106 4,793 Due from other funds - - - - - - - - Lease receivable 39 - - - - - - 39 Advances to other funds - - - - - 51 - 51 Due from other governments 2,764 1,380 339 105 2,794 - 78 7,460 Inventories - 243 - - - - - 243 Assets held for resale 1,820 - - - - - - 1,820 Restricted assets: Equity in pooled cash and investments 2,928 5,306 - 9,115 12,981 - - 30,330 Total assets 106,889$ 30,959$ 18,562$ 14,102$ 23,298$ 18,095$ 5,228$ 217,133$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 2,217$ 609$ 54$ 55$ 14$ -$ 103$ 3,052$ Contracts payable - - - 965 3,166 - - 4,131 Accrued liabilities 2,187 141 3 - 3 - 30 2,364 Advances from other funds - 51 - 3,000 - - - 3,051 Due to other governments 34 - - - - - - 34 Liabilities payable from restricted assets: Deposits 1,126 10 - - - - - 1,136 Advances from grantors 19 16,474 - 220 - - 117 16,830 Total liabilities 5,583 17,285 57 4,240 3,183 - 250 30,598 Deferred Inflows of Resources Unavailable revenues: Succeeding year property taxes 40,340 839 14,036 - - 10,733 527 66,475 Lease related deferred inflows 39 - - - - - - 39 Grants 328 439 - 12 1,021 - 19 1,819 Other 1,769 - 338 93 - - - 2,200 Total deferred inflows of resources 42,476 1,278 14,374 105 1,021 10,733 546 70,533 Fund Balances Nonspendable 1,889 243 - - - - - 2,132 Restricted 2,015 12,153 4,131 9,757 19,094 7,362 4,849 59,361 Assigned 14,852 - - - - - - 14,852 Unassigned 40,074 - - - - - (417) 39,657 Total fund balances 58,830 12,396 4,131 9,757 19,094 7,362 4,432 116,002 Total liabilities, deferred inflows of resources and fund balances 106,889$ 30,959$ 18,562$ 14,102$ 23,298$ 18,095$ 5,228$ 217,133$ The notes to the financial statements are an integral part of this statement. Special Revenue Capital Projects City of Iowa City, Iowa Balance Sheet Governmental Funds June 30, 2022 (amounts expressed in thousands) 34 Total governmental fund balances 116,002$ Amounts reported for governmental activities in the statement of net position are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.55,012 Other long-term assets are not available to pay for current period expenditures and therefore are unavailable in the funds: Grants and other receivables - Earned but unavailable.4,019 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 260,204 Pension and OPEB related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period and therefore are not reported in the funds. Deferred outflows of resources 8,021$ Deferred inflows of resources (28,363) (20,342) Net pension liabilities are not due and payable in the current period and therefore are not reported in the funds.(8,259) Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds.(2,480) Accrued post employment benefit liabilities are not due and payable in the current period and therefore are not reported in the funds.(5,460) Bonds payable are not due and payable in the current period and therefore are not reported in the funds.(68,643) Notes payable are not due and payable in the current period and therefore are not reported in the funds.(211) Accrued interest on bonds (172) Internal balance due to integration of internal service funds (22,980) Total net position of governmental activities 306,690$ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) City of Iowa City, Iowa Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Position June 30, 2022 35 Bridge, Other Street, and Shared Traffic Other Revenue and Employee Other Control Debt Governmental General Grants Benefits Construction Construction Service Funds Total Revenues Taxes 43,691$ 1,020$ 14,208$ -$ -$ 10,855$ 4,446$ 74,220$ Licenses and permits 2,786 - - - - - - 2,786 Intergovernmental 4,046 12,574 313 632 3,831 236 1,124 22,756 Charges for services 1,711 3,114 371 95 - 23 - 5,314 Fines and forfeits 434 - - - - - - 434 Use of money and property 33 286 - 41 59 55 32 506 Miscellaneous 1,694 95 - 52 636 - 114 2,591 Total revenues 54,395 17,089 14,892 820 4,526 11,169 5,716 108,607 Expenditures Current: Public safety 25,783 - 975 63 - - - 26,821 Public works 2,527 6,327 - 182 1,847 - - 10,883 Culture and recreation 14,722 - - 368 - - - 15,090 Community and economic development 3,325 2,493 - 138 - - 5,120 11,076 General government 7,310 230 327 13 - 27 - 7,907 Debt service: Principal - - - - - 11,220 - 11,220 Interest - - - - - 1,956 - 1,956 Capital outlay 1,291 630 - 3,487 6,665 - - 12,073 Total expenditures 54,958 9,680 1,302 4,251 8,512 13,203 5,120 97,026 Excess (deficiency) of revenues over (under) expenditures (563) 7,409 13,590 (3,431) (3,986) (2,034) 596 11,581 Other Financing Sources (Uses) Issuance of debt - - - 2,767 7,472 16 - 10,255 Sale of capital assets 255 1 - - - - - 256 Premiums on issuance of bonds - - - 149 403 1 - 553 Transfers in 14,167 1,629 - 2,688 3,282 1,828 635 24,229 Transfers out (7,250) (5,955) (13,090) (594) (6,368) - (1,958) (35,215) Total other financing sources and (uses)7,172 (4,325) (13,090) 5,010 4,789 1,845 (1,323) 78 Net change in fund balances 6,609 3,084 500 1,579 803 (189) (727) 11,659 Fund Balances, Beginning 52,221 9,312 3,631 8,178 18,291 7,551 5,159 104,343 Fund Balances, Ending 58,830$ 12,396$ 4,131$ 9,757$ 19,094$ 7,362$ 4,432$ 116,002$ The notes to the financial statements are an integral part of this statement. Special Revenue Capital Projects City of Iowa City, Iowa Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) 36 Net change in fund balances - total governmental funds 11,659$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets 6,827$ Transfers of capital assets (to)\from enterprise funds - net (157) Transfers of capital assets (to)\from internal service funds - net (262) Capital assets contributed 729 Depreciation expense (8,559) (1,422) Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Debt issued (10,255) Premium on bonds issued (553) Repayments of debt 11,220 Amortization of premium 412 824 Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues in the governmental funds.29 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: Change in accrued compensated absences 141 Pension expense 6,269 Change in accrued post employment benefit liability (294) Change in accrued interest on debt (9) In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital asset sold.(1) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.1,884 Change in net position of governmental activities 19,080$ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2022 City of Iowa City, Iowa Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 37 GovernmentalActivities - Other Internal Wastewater Housing Enterprise ServiceTransitTreatmentWaterSanitationStormwaterAuthorityFundsTotalFunds Assets Current assets: Equity in pooled cash and investments 4,546$ 23,939$ 10,895$ 14,021$ 3,612$ 5,139$ 4,561$ 66,713$ 42,888$ Receivables (net of allowance for uncollectibles): Accounts and unbilled usage - 1,407 1,099 878 162 27 77 3,650 226 Interest 1 4 6 16 1 17 1 46 28 Notes - - - - - 326 - 326 - Lease 122 - - 16 - - 45 183 19 Due from other governments 7,454 63 27 111 - - 230 7,885 26 Inventories 405 - 384 - - - - 789 692 Total current assets 12,528 25,413 12,411 15,042 3,775 5,509 4,914 79,592 43,879 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 5 4,651 4,738 15,571 - 2,532 472 27,969 - Advances to other funds - - - 4,762 - - - 4,762 - Lease receivable 1,425 - - 266 - - 556 2,247 40 Capital assets: Land 2,630 759 6,296 2,264 2,264 620 15,484 30,317 685 Buildings 15,399 36,858 24,019 5,402 - 7,427 47,694 136,799 1,481 Improvements other than buildings - 7,802 2,721 460 - 34 773 11,790 50 Machinery and equipment 16,693 13,038 11,492 271 27 71 2,153 43,745 25,666 Infrastructure 955 163,910 73,917 19,344 72,703 - 17,451 348,280 3,634 Accumulated depreciation (16,345) (98,542) (47,618) (20,232) (20,377) (5,262) (39,131) (247,507) (15,438) Construction in progress 135 1,472 5,099 697 2,293 - 383 10,079 550 Total noncurrent assets 20,897 129,948 80,664 28,805 56,910 5,422 45,835 368,481 16,668 Total assets 33,425 155,361 93,075 43,847 60,685 10,931 50,749 448,073 60,547 Deferred Outflows of Resources Pension related deferred outflows 383 202 242 280 22 90 133 1,352 220 OPEB related deferred outflows 160 77 109 109 6 31 63 555 81 Total deferred outflows of resources 543 279 351 389 28 121 196 1,907 301 Liabilities Current liabilities: Accounts payable 534 240 148 249 19 46 84 1,320 567 Contracts payable 20 583 174 338 35 - 353 1,503 - Accrued liabilities 256 110 127 154 11 54 80 792 3,439 Employee vested benefits 141 67 78 108 8 26 63 491 61 Due to other funds - - - - - - - - - Due to other governments - 1 - 5 - 29 - 35 - Unearned revenue - - 6 - - 108 - 114 - Interest payable - 52 61 - - - - 113 - Bonded debt payable (net of unamortized premium and discounts)- 2,154 1,790 - - - - 3,944 - Total current liabilities 951 3,207 2,384 854 73 263 580 8,312 4,067 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 8 - 1,128 10 - 1,237 12 2,395 - Advances from other funds - - - - - - 1,762 1,762 - Employee vested benefits 97 49 47 81 5 19 47 345 47 Bonded debt payable (net of unamortized premium and discounts)- - 3,702 - - - - 3,702 - Net pension liability 53 29 35 38 3 12 18 188 32 Other post employment benefits liability 672 324 456 456 24 132 264 2,328 336 Landfill closure/postclosure liability - - - 12,227 - - - 12,227 - Total noncurrent liabilities 830 402 5,368 12,812 32 1,400 2,103 22,947 415 Total liabilities 1,781 3,609 7,752 13,666 105 1,663 2,683 31,259 4,482 Deferred Inflows of Resources Lease related deferred inflows 1,547 - - 282 - - 601 2,430 59 Pension related deferred inflows 1,973 1,097 1,318 1,446 115 461 683 7,093 1,188 OPEB related deferred inflows 212 102 144 144 8 42 83 735 107 Deferred amount on refunding - 25 45 - - - - 70 - Total deferred inflow of resources 3,732 1,224 1,507 1,872 123 503 1,367 10,328 1,354 Net Position Net investment in capital assets 19,467 123,118 70,389 8,206 56,910 2,890 44,807 325,787 16,628 Restricted by bond ordinance - 4,598 3,611 - - - - 8,209 - Restricted by state statute - - - 3,309 - - - 3,309 - Restricted for future improvements - - - - - - 404 404 - Restricted by grant agreement - - - - - 1,294 - 1,294 - Unrestricted 8,988 23,091 10,167 17,183 3,575 4,702 1,684 69,390 38,384 Total net position 28,455$ 150,807$ 84,167$ 28,698$ 60,485$ 8,886$ 46,895$ 408,393$ 55,012$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.22,980 Net position of business-type activities 431,373$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds City of Iowa City, Iowa Statement of Net Position Proprietary Funds June 30, 2022 (amounts expressed in thousands) 38 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Transit Treatment Water Sanitation Stormwater Authority Funds Total Funds Operating Revenues: Charges for services 1,627$ 12,121$ 10,127$ 11,274$ 1,704$ 282$ 5,338$ 42,473$ 23,802$ Miscellaneous 68 78 556 146 15 310 61 1,234 - Total operating revenues 1,695 12,199 10,683 11,420 1,719 592 5,399 43,707 23,802 Operating Expenses: Personal services 4,154 3,228 3,417 3,713 366 982 2,012 17,872 2,333 Commodities 1,253 1,044 1,307 256 183 192 743 4,978 2,777 Services and charges 2,243 3,253 2,282 6,247 227 10,460 2,004 26,716 11,863 7,650 7,525 7,006 10,216 776 11,634 4,759 49,566 16,973 Depreciation 1,073 4,777 2,624 802 1,425 257 2,256 13,214 2,498 Total operating expenses 8,723 12,302 9,630 11,018 2,201 11,891 7,015 62,780 19,471 Operating income (loss)(7,028) (103) 1,053 402 (482) (11,299) (1,616) (19,073) 4,331 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets (26) (41) 23 - - - - (44) 85 Operating grants 5,096 77 42 105 - 11,481 262 17,063 12 Lease revenue 118 - - 15 - - 88 221 15 Interest income 76 197 - (516) 8 15 30 (190) (1,049) Interest expense - - (100) - - - - (100) - Total nonoperating revenues (expenses)5,264 233 (35) (396) 8 11,496 380 16,950 (937) Income (loss) before capital contributions and transfers (1,764) 130 1,018 6 (474) 197 (1,236) (2,123) 3,394 Capital contributions 3,416 964 620 - 713 - 154 5,867 262 Transfers in 4,123 610 4,024 124 2,659 - 100 11,640 904 Transfers out - - (49) (545) - (52) - (646) (912) Change in net position 5,775 1,704 5,613 (415) 2,898 145 (982) 14,738 3,648 Net Position, Beginning 22,680 149,103 78,554 29,113 57,587 8,741 47,877 51,364 Net Position, Ending 28,455$ 150,807$ 84,167$ 28,698$ 60,485$ 8,886$ 46,895$ 55,012$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,764 Change in net position of business-type activities 16,502$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds City of Iowa City, Iowa Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) 39 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Transit Treatment Water Sanitation Stormwater Authority Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users 1,774$ 12,377$ 10,890$ 11,338$ 1,742$ 439$ 5,673$ 44,233$ -$ Receipts from users - - - - - - - - 23,799 Payments to suppliers (3,308) (4,297) (3,783) (5,515) (414) (10,706) (2,538) (30,561) (15,245) Payments to employees (4,634) (3,416) (3,726) (3,983) (364) (1,085) (2,059) (19,267) (2,562) Net cash flows from (used for) operating activities (6,168) 4,664 3,381 1,840 964 (11,352) 1,076 (5,595) 5,992 Cash Flows From Noncapital Financing Activities Grants received 2,925 16 35 30 - 11,527 446 14,979 3 Transfers from other funds 4,123 281 253 116 39 - 100 4,912 904 Transfers to other funds - - (41) (545) - (52) - (638) (912) Repayment/(payment) of notes receivable - - - - - 10 - 10 - Advances to other funds - - - (1,000) - - 725 (275) - Repayment of advances from other funds - - - 462 - - (174) 288 - Net cash flows from (used for) noncapital financing activities 7,048 297 247 (937) 39 11,485 1,097 19,276 (5) Cash Flows From Capital and Related Financing Activities Capital grants received 399 422 - - - - 156 977 - Lease revenues received 118 - - 15 - - 88 221 15 Acquisition and construction of property and equipment (4,559) (2,753) (998) (393) (326) - (727) (9,756) (1,893) Proceeds from sale of property - - 23 - - - - 23 102 Principal paid on bonded debt - (2,659) (1,690) - - - - (4,349) - Interest paid on bonded debt - (265) (154) - - - - (419) - Net cash flows from (used for) capital and related financing activities (4,042) (5,255) (2,819) (378) (326) - (483) (13,303) (1,776) Cash Flows From Investing Activities Interest on investments 79 207 2 (514) 8 16 30 (172) (1,045) Net increase (decrease) in cash and cash equivalents (3,083) (87) 811 11 685 149 1,720 206 3,166 Cash and Cash Equivalents, Beginning 7,634 28,677 14,822 29,581 2,927 7,522 3,313 94,476 39,722 Cash and Cash Equivalents, Ending 4,551$ 28,590$ 15,633$ 29,592$ 3,612$ 7,671$ 5,033$ 94,682$ 42,888$ Reconciliation of operating income (loss) to net cash flows from (used for) operating activities: Operating income (loss)(7,028)$ (103)$ 1,053$ 402$ (482)$ (11,299)$ (1,616)$ (19,073)$ 4,331$ Adjustments to reconcile operating income (loss) to net cash flows from (used for) operating activities: Depreciation expense 1,073 4,777 2,624 802 1,425 257 2,256 13,214 2,498 Changes in: Receivables: Accounts and unbilled usage 76 178 195 (82) 23 - 271 661 (50) Due from other governments (1) - (11) - - - - (12) 47 Inventories (10) - (48) - - - - (58) (124) Accounts payable 252 (1) (130) 8 (4) (53) 209 281 (69) Contracts payable (54) - - - - - - (54) - Accrued liabilities 8 17 1 13 (1) 9 14 61 (398) Employee vested benefits 1 (6) (20) (3) (1) (28) 5 (52) (21) Due to other governments - 1 (16) (1) - (1) - (17) (7) Unearned revenue - - 6 - - (244) - (238) - Deposits 4 - 17 - - 91 3 115 - Net pension liability (2,616) (1,383) (1,754) (1,821) (117) (582) (854) (9,127) (1,531) Deferred outflows of resources 229 121 156 157 8 48 58 777 128 Deferred inflows of resources 2,036 1,102 1,355 1,487 117 472 718 7,287 1,216 Other post employment benefits liability (138) (39) (47) (103) (4) (22) 12 (341) (28) Landfill closure/postclosure liability - - - 981 - - - 981 - Total adjustments 860 4,767 2,328 1,438 1,446 (53) 2,692 13,478 1,661 Net cash flows from (used for) operating activities (6,168)$ 4,664$ 3,381$ 1,840$ 964$ (11,352)$ 1,076$ (5,595)$ 5,992$ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 871$ 4,391$ -$ 3,333$ -$ -$ 8,595$ 262$ Capital grants not yet received 3,017$ -$ -$ -$ -$ -$ 163$ 3,180$ -$ Operating grants not yet received 4,379$ 54$ 14$ 75$ -$ -$ 67$ 4,589$ -$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds City of Iowa City, Iowa Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) 40 Project Green Assets Equity in pooled cash and investments 60$ Total assets 60 Liabilities Accounts payable 4 Total liabilities 4 Net Position Restricted for an organization 56$ The notes to the financial statements are an integral part of this statement. June 30, 2022 (amounts expressed in thousands) City of Iowa City, Iowa Statement of Fiduciary Net Position Custodial Fund 41 Project Green Additions: Contributions 24$ Total additions 24 Deductions: Commodities 2 Services and charges 29 Total deductions 31 Change in net position (7) Net Position, Beginning 63 Net Position, Ending 56$ The notes to the financial statements are an integral part of this statement. City of Iowa City, Iowa Statement of Changes in Fiduciary Net Position Custodial Fund For the Year Ended June 30, 2022 (amounts expressed in thousands) 42 City of Iowa City, Iowa Notes to Financial Statements June 30, 2022 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations) and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to or impose specific financial burdens on the City. There were no component units required to be included. Government-Wide and Fund 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 non-fiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 43 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its “measurement focus.” The government-wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Custodial funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Other Shared Revenue and Grants Fund is used to account for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Other Construction Fund accounts for the construction or replacement of other City general capital assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The Bridge, Street, and Traffic Control Construction Fund accounts for the construction or replacement of infrastructure capital assets, such as streets, bridges, dams, sidewalks, and lighting systems. 44 The Debt Service Fund accounts for the accumulation of resources for the payment of general long- term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Transit Fund is used to account for the operation and maintenance of the public transportation system. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Stormwater Fund is used to account for the operation and maintenance of the stormwater utility system. The Housing Authority Fund is used to account for the operations and activities of the City’s low and moderate income housing assistance and public housing programs. The City has two nonmajor enterprise funds, the Airport Fund is used to account for the operation and maintenance of the airport facility and the Parking Fund is used to account for the operation and maintenance of the “on” and “off” street public parking facilities. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology Fund. The City also reports a custodial fund account for monies held for Project Green, a local 501(c)(3) not-for- profit agency to which the City provides accounting and investing services. 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 City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds 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. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 45 Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of other postemployment benefit obligation, net pension liability, landfill closure and post-closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and non-restricted investments with a maturity of three months or less when purchased are considered cash equivalents. Receivables and Revenue Recognition Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 31 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 receivable has been recorded, it will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the Other Shared Revenue and Grants Fund, Transit Fund, Water Fund, and the Equipment Maintenance Fund. Inventories of materials and supplies are determined by actual count and priced on the FIFO method in the Other Shared Revenue and Grants Fund and the average cost method for the Transit, Water and Equipment Maintenance Fund. 46 Leases The City is a lessor for several noncancellable leases of City property. The City recognizes lease receivables and deferred inflows of resources at the commencement of the lease term in the governmental activities, the business type activities, governmental, business type, and internal service fund financial statements. As lessor, the assets underlying the lease are not derecognized. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, 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. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term and lease receipts. The City uses its most recent borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease 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. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City follows the policy of not requiring capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for buildings and improvements, and $5,000 for equipment assets. Such assets are recorded at original purchase cost or at acquisition value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 – 100 years Buildings and structures 20 – 50 years Improvements other than buildings 10 – 50 years Vehicles 2 – 20 years Other equipment 3 – 30 years Deferred Outflows of Resources Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension and OPEB expense and contributions from the employer after the measurement date but before the end of the employer’s reporting period. Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government-wide statements, they are amortized over the life of the bonds. 47 Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee’s then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions For purposes of measuring the net pension liability, 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 and the Municipal Fire and Police Retirement System (Systems’) and additions to/deductions from the Systems’ fiduciary net position have been determined on the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 8). Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues are measurable, they are not available. Available means collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources in the governmental fund financial statements represent the amount of assets that have been recognized, but the related revenue has not been recognized since the assets are not collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. The lease related deferred inflows is the unamortized portion of the lease receivable. Deferred inflows of resources consist of property tax receivable, lease related deferred inflows, grants receivable and other receivables. Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax receivable that will not be recognized as revenue until the year for which they are levied, the difference in the carrying value of refunded debt and it’s acquisition price, lease related deferred inflows, and the unamortized portion of pension and OPEB related items. Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and custodial funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 31 of each year to become effective July 1 and constitutes the City’s appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government 48 Debt service Capital projects Business-type/enterprise b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out The legal level of control (the level at which expenditures may not legally exceed appropriations) is the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City’s budget for revenue focuses on aggregated totals by revenue source. The City formally adopts budgets for several funds that are not required by state law to be included in the annual function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between functions. A budget amendment must be prepared and adopted in the same manner as the original budget. The City’s budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $35,891,317 in revenues and other financing sources and by $92,239,183 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules – Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund’s purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. Classification of Fund Balances Fund balances for the governmental funds are reported in classifications based on the nature of any limitations requiring the use of resources for specific purposes (see Note 9). 2. Cash and Pooled Investments The City’s deposits in banks at June 30, 2022 were entirely covered or collateralized by federal depository insurance, national credit union administration, letters of credit held by the City or by the State Sinking 49 Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper or other short-term corporate debt; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open–end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; and warrants or improvement certificates of a drainage district. The City uses the fair value hierarchy established by generally accepted accounting principles 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. The recurring fair value measurement for the Federal Home Loan Mortgage Corporation securities of $5,920,690, the Federal Farm Credit Bank Note securities of $3,247,520, the Federal National Mortgage Association securities of $3,511,840 and the Federal Home Loan Bank securities of $20,484,180 were determined using the last reported sales price at current exchange rates (Level 1 inputs). The fair value measurement for the Credit Agricole CIB NY Corporation commercial paper of $4,988,750 and the Natixis NY Branch commercial paper of $4,988,792 was determined using the last reported sales price at current exchange rates (Level 1 inputs). The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $155,178, which approximates fair value. The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to Governmental Accounting Standards Board Statement No. 79. The Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Interest rate risk - The City’s investment policy limits the investment of operating funds to investments that mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds may be invested in instruments with maturities longer than 397 days. At June 30, 2022 the City of Iowa City had the following investments: Fair Investment Value Maturities Federal Home Loan Mortgage Corporation Notes 5,920,690$ July 2023 to February 2025 Federal Farm Credit Bank Notes 3,247,520 December 2024 to September 2040 Federal National Mortgage Association 3,511,840 December 2027 to June 2029 Federal Home Loan Bank 20,484,180 November 2023 to January 2027 Credit Agricole CIB NY 4,988,750 October 2022 Natixis NY Branch 4,988,792 September 2022 43,141,772$ 50 Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody’s Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with other funds. These funds are the Employee Benefits, Other Shared Revenue and Grants, and Sanitation funds. 3. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2022, consisted of the following: Interfund balances at June 30, 2022, include advances to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $34,555 of the $50,930 advance to the Other Shared Revenue and Grants Fund is not expected to be repaid within the next year. $2,811,048 of the $3,000,266 advance to the Other Construction Fund is not expected to be repaid within the next year. $1,389,014 of the $1,762,064 advance to the Nonmajor Enterprise Funds is not expected to be repaid within the next year. Debt Service Sanitation Total Advances to: Other Shared Revenue and Grants 50,930$ -$ 50,930$ Other Construction - 3,000,266 3,000,266 Nonmajor Enterprise - 1,762,064 1,762,064 Total 50,930$ 4,762,330$ 4,813,260$ Advances from 51 Interfund transfers for the year ended June 30, 2022, consisted of the following: Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. In the fund financial statements, total transfers in and transfers out of $36,773,287 are less than total transfers of $37,191,815 because of the treatment of transfers of capital assets from the governmental activities capital assets. Capital Projects Bridge, Street Other Capital Projects and Traffic Shared Revenue Employee Other Control General and Grants Benefits Construction Construction Transfer to: General -$ 1,611,767$ 12,461,141$ -$ -$ Other Shared Revenue and Grants 1,000,000 - 628,877 - - Debt Service 24,620 - - - - Capital Projects Other Construction 1,235,872 515,172 - - - Capital Projects Bridge, Street and Traffic Control Construction 375,218 2,832,000 - - - Nonmajor Governmental 313,564 321,042 - - - Transit 4,122,880 - - - - Wastewater Treatment 2,397 278,479 - - 329,098 Water 2,079 251,363 - - 3,770,863 Sanitation 7,022 108,252 - - - Stormwater 1,324 37,082 - 592,365 2,027,943 Nonmajor Enterprise 100,000 - - - - Internal Service 65,064 - - 1,870 239,740 Total Transfer to 7,250,040$ 5,955,157$ 13,090,018$ 594,235$ 6,367,644$ Transfer from 52 During the year, construction in progress related to construction for the Idyllwild Drainage project with values of $78,878 and $17,445 were transferred from governmental activities capital asset to Water and Stormwater, respectively. Construction in progress related to the Melrose Avenue Improvements with a value of $60,199 and $262,006 were transferred from governmental activities capital asset to Water and ITS, respectively. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Water, Stormwater, and ITS did report capital contributions for the capital resources received. Nonmajor Housing Internal Total Governmental Water Sanitation Authority Service Transfer from 42,540$ -$ -$ 51,836$ -$ 14,167,284$ - - - - - 1,628,877 1,803,257 - - - - 1,827,877 112,368 - - - 825,000 2,688,412 - - - - 75,000 3,282,218 - - - - - 634,606 - - - - - 4,122,880 - - - - - 609,974 - - - - - 4,024,305 - 8,263 - - - 123,537 - - - - - 2,658,714 - - - - - 100,000 - 41,173 544,461 - 12,296 904,604 1,958,165$ 49,436$ 544,461$ 51,836$ 912,296$ 36,773,288 Transfers from governmental activities capital assets to enterprise funds 156,521 Transfers from governmental activities capital assets to an internal service fun 262,006 37,191,815$ Transfer from 53 4. Lease Receivable During the year ended June 30, 2022, the City recognized the following related to its non-regulated leases in which the maximum possible lease term is noncancelable by both the lessee and the lessor and is more than 12 months. The leases are not considered principal ongoing operations of the City. Governmental Activities: On October 6, 2015, the City entered into an agreement to lease building space in the Library building. The initial term of the lease was for a four-year term with an extension of an additional four-year term. The City believes it is more likely than not that the term will be for eight years. The monthly rent is $2,000. The City recognized $22,425 in lease revenue and $1,575 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $38,942. The City has a deferred inflow of resources associated with this lease of $38,942 that will be recognized as revenue over the lease term. On November 10, 2015, the City entered into an agreement to lease space for fiber. The initial term of the lease was for a ten-year term with no option of extension. The City believes it is more likely than not that the term will be for ten years. The annual rent is $17,459. The City recognized $15,182 in lease revenue and $2,277 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $58,724. The City has a deferred inflow of resources associated with this lease of $58,724 that will be recognized as revenue over the lease term. Business-type Activities: On August 16, 2012, the City entered into an agreement to lease building space in the Court Street Transportation Center. The initial term of the lease was for a three-year term with an extension of up to five additional three-year terms. The City believes it is more likely than not that the term will be for eighteen years. The monthly rent is $1,450. The City recognized $13,346 in lease revenue and $4,054 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $124,368. The City has a deferred inflow of resources associated with this lease of $124,368 that will be recognized as revenue over the lease term. On July 1, 2015, the City entered into an agreement to lease building space in the Court Street Transportation Center. The initial term of the lease was for a ten-year term with an extension of an additional five-year term. The City believes it is more likely than not that the term will be for fifteen years. The monthly rent is $9,077.43. The City recognized $83,763 in lease revenue and $25,161 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $771,500. The City has a deferred inflow of resources associated with this lease of $771,500 that will be recognized as revenue over the lease term. On February 11, 2021, the City entered into an agreement to lease building space in the Court Street Transportation Center. The initial term of the lease was for a three-year term with an extension of up to four additional five-year terms. The City believes it is more likely than not that the term will be for fifteen years. The monthly rent is $3,445. The City recognized $20,932 in lease revenue and $20,408 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $651,197. The City has a deferred inflow of resources associated with this lease of $651,197 that will be recognized as revenue over the lease term. 54 On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling Center. The initial term of the lease was for a ten-year term with an extension of up to three additional five-year terms. The City believes it is more likely than not that the term will be for twenty-five years. The monthly rent is $1,677.58. The City recognized $12,642 in lease revenue and $7,489 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $236,260. The City has a deferred inflow of resources associated with this lease of $236,260 that will be recognized as revenue over the lease term. On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling Center. The initial term of the lease was for a ten-year term with an extension of up to three additional five-year terms. The City believes it is more likely than not that the term will be for twenty-five years. The monthly rent is $322.50. The City recognized $2,430 in lease revenue and $1,440 in interest revenue during the current fiscal year related to this lease. As of June 30, 2022, the City’s receivable for lease payments was $45,419. The City has a deferred inflow of resources associated with this lease of $45,419 that will be recognized as revenue over the lease term. The City has four leases for land use at and around the Airport that were entered into agreement between February 12, 1991 and November 1, 2018. The initial terms of the leases range between five and eighty years with two of the agreements having options to extend between five and ten years. The City believes it is more likely than not that the terms will be between ten and eighty years. The annual rent for all four of these leases is $17,455. The City recognized $10,295 in lease revenue and $7,160. As of June 30, 2022, the City’s receivable for lease payments was $224,870. The City has a deferred inflow of resources associated with these leases of $224,870 that will be recognized as revenue over the lease terms. The City has seven leases for hangar use at the Airport that were entered into agreement between April 12, 2012 and October 1, 2021. The initial terms of these leases range between one and thirty years with two of the leases having the option to renew up to another ten years. The City believes it is more likely than not that the terms will be between one and thirty years. The monthly rent for these leases total $9,395. The City recognized $77,740 in lease revenue and $12,215. As of June 30, 2022, the City’s receivable for lease payments was $375,970. The City has a deferred inflow of resources associated with these leases of $375,970 that will be recognized as revenue over the lease terms. 55 5. Capital Assets Capital asset activity for the year ended June 30, 2022, was as follows: Beginning July 1, 2021 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2022 Governmental activities: Capital assets, not being depreciated: Land 32,821,105$ 54,445$ -$ 32,875,550$ Construction in progress 5,232,848 5,264,477 1,028,780 9,468,544 Total capital assets, not being depreciated 38,053,953 5,318,922 1,028,780 42,344,094 Capital assets, being depreciated: Buildings 68,133,975 78,265 11,967 68,200,272 Improvements other than buildings 8,026,716 157,259 - 8,183,976 Machinery and equipment 62,688,003 3,755,200 3,558,724 62,884,478 Infrastructure 223,952,969 1,010,136 7,500 224,955,606 Total capital assets being depreciated 362,801,663 5,000,860 3,578,191 364,224,332 Less accumulated depreciation for: Buildings 31,104,207 1,725,983 11,967 32,818,224 Improvements other than buildings 4,546,769 283,952 - 4,830,720 Machinery and equipment 28,013,106 4,477,570 3,539,616 28,951,058 Infrastructure 58,575,827 4,568,314 7,500 63,136,642 Total accumulated depreciation 122,239,909 11,055,819 3,559,083 129,736,644 Total capital assets, being depreciated, net 240,561,754 (6,054,959) 19,108 234,487,688 Governmental activities capital assets, net 278,615,707$ (736,037)$ 1,047,888$ 276,831,782$ Business-type activities: Capital assets, not being depreciated: Land 30,317,185$ -$ -$ 30,317,185$ Construction in progress 3,074,700 9,187,386 2,182,451 10,079,635 Total capital assets, not being depreciated 33,391,885 9,187,386 2,182,451 40,396,820 Capital assets, being depreciated: Buildings 136,209,406 589,127 - 136,798,532 Improvements other than buildings 11,789,635 20,659 20,659 11,789,633 Machinery and equipment 39,431,103 4,483,937 169,852 43,745,186 Infrastructure 341,927,685 6,446,091 92,830 348,280,947 Total capital assets being depreciated 529,357,829 11,539,814 283,341 540,614,298 Less accumulated depreciation for: Buildings 74,594,034 3,516,843 - 78,110,878 Improvements other than buildings 8,034,863 421,568 - 8,456,430 Machinery and equipment 24,646,955 1,807,399 143,807 26,310,547 Infrastructure 127,213,149 7,468,471 51,985 134,629,634 Total accumulated depreciation 234,489,001 13,214,281 195,792 247,507,489 Total capital assets, being depreciated, net 294,868,828 (1,674,467) 87,549 293,106,809 Business-type activities capital assets, net 328,260,713$ 7,512,919$ 2,270,000$ 333,503,629$ 56 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2022, was as follows: Depreciation expense was charged to functions as follows: Governmental activities: Public safety 1,692,743$ Public works 5,585,639 Culture and recreation 3,290,300 Community and economic development 59,454 General government 427,683 Total depreciation expense - governmental activities 11,055,819$ Business-type activities: Transit 1,072,150$ Wastewater treatment 4,776,921 Water 2,624,366 Sanitation 802,246 Stormwater 1,425,039 Housing authority 256,410 Nonmajor enterprise 2,257,147 Total depreciation expense - business-type activities 13,214,279$ Due Within July 1, 2021 Issues Retirements June 30, 2022 One Year Governmental activities: General obligation bonds 53,935,000$ 10,255,000$ 10,255,000$ 53,935,000$ 10,125,000$ Plus: Unamortized Premium 2,750,493 552,661 414,206 2,888,948 399,007 Total general obligation bonds 56,685,493 10,807,661 10,669,206 56,823,948 10,524,007 Revenue bonds 12,805,000 - 965,000 11,840,000 960,000 Less: Unamortized Discounts 23,364 - 2,124 21,240 21,240 Total revenue bonds 12,781,636 - 962,876 11,818,760 938,760 69,467,129$ 10,807,661$ 11,632,082$ 68,642,708$ 11,462,767$ Business-type activities: Revenue bonds 11,815,000$ -$ 4,350,000$ 7,465,000$ 3,840,000$ Plus: Unamortized Premium 427,006 - 246,802 180,204 112,726 Total revenue bonds 12,242,006$ -$ 4,596,802$ 7,645,204$ 3,952,726$ 57 General Obligation Bonds Various issues of general obligation bonds totaling $53,935,000 are outstanding as of June 30, 2022. The bonds have interest rates ranging from 1.00% to 5.00% and mature in varying annual amounts ranging from $790,000 to $1,135,000 per issue, with the final maturities due in the year ending June 30, 2032. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Annual debt service requirements to maturity for general obligation bonds are as follows: Revenue Bonds As of June 30, 2022, the following unmatured revenue bond issues are outstanding: Wastewater Taxable Urban Treatment Water Renewal Original issue amount $ 4,550,000 $ 14,510,000 $ 12,805,000 Interest rates 2.0% to 5.0% 1.5% to 5.0% 3.0% Annual maturities $ 2,085,000 $ 490,000 to $ 725,000 to $ 1,225,000 $ 960,000 Amount outstanding $ 2,085,000 $ 5,380,000 $ 11,840,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 Principal Interest 2023 10,125,000$ 1,716,440$ 2024 8,680,000 1,381,040 2025 7,625,000 1,105,290 2026 6,855,000 853,478 2027 5,905,000 614,102 2028-2032 14,745,000 958,000 Total 53,935,000$ 6,628,350$ Governmental Activities Fiscal Year Ending June 30 Principal Interest Principal Interest 2023 960,000$ 355,200$ 3,840,000$ 149,270$ 2024 955,000 326,400 1,745,000 55,825 2025 950,000 297,750 1,325,000 26,081 2026 950,000 269,250 555,000 6,244 2027 825,000 240,750 - - 2028-2032 3,790,000 857,850 - - 2033-2037 3,410,000 259,500 - - Total 11,840,000$ 2,606,700$ 7,465,000$ 237,420$ Governmental Activities Business-type Activities 58 The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Taxable Urban Renewal Revenue bonds – maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue and Water Revenue bonds – 10% of the original principal amounts of all related bond issues. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. In fiscal year ended June 30, 2022, the Wastewater Treatment Fund had net revenue of $4,948,000 and the amount of principal and interest due was $2,813,000. In fiscal year ended June 30, 2022, the Water Fund had net revenues of $3,719,000 and the amount of principal and interest due was $1,836,000. 59 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2022, are comprised of the following issues: (1) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (2) This bond issue refunded the May 2009 Wastewater Revenue Bonds. (3) This bond issue refunded the October 2002 Water Revenue Bonds. (4) This bond issue refunded the October 2008 Water Revenue Bonds. (5) This bond issued refunded the May 2009 Water Revenue Bonds. Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2022 General Obligation Bonds: Multi-Purpose July 2013 7,230,000 1.0 - 2.0 6/23 870,000 Refunded Multi-Purpose (1) June 2014 11,980,000 2.0 - 3.0 6/24 2,030,000 Multi-Purpose June 2015 7,785,000 2.0 - 2.25 6/25 2,560,000 Multi-Purpose June 2016 8,795,000 2.0 - 3.0 6/26 3,995,000 Multi-Purpose June 2017 9,765,000 2.0 - 2.5 6/27 5,145,000 Multi-Purpose June 2018 8,895,000 1.8 - 2.65 6/28 5,565,000 Multi-Purpose June 2019 12,535,000 2.0 - 2.25 6/29 6,580,000 Multi-Purpose June 2020 12,145,000 2.0 - 5.0 6/30 6,745,000 Multi-Purpose June 2021 11,325,000 2.0 - 5.0 6/31 10,190,000 Multi-Purpose June 2022 10,255,000 3.3 - 5.0 6/32 10,255,000 Total General Obligation Bonds 53,935,000$ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2022 Revenue Bonds: Refunded Wastewater Treatment Bonds (2)June 2017 4,550,000 2.0 - 5.0 7/22 2,085,000 Refunded Water Bonds (3)June 2012 4,950,000 1.5 - 2.1 7/22 540,000 Refunded Water Bonds (4)June 2016 3,650,000 1.5 - 5.0 7/24 1,535,000 Refunded Water Bonds (5)June 2017 5,910,000 2.0 - 2.25 7/25 3,305,000 Taxable Urban Renewal Sept. 2016 12,805,000 3.0 6/36 11,840,000 Total Revenue Bonds 19,305,000$ 73,240,000$ 60 Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2022, there were three series of Industrial Development Revenue Bonds outstanding, with an aggregate principal amount payable of $17,042,263. Debt Legal Compliance Legal Debt Margin: As of June 30, 2022, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows (amounts expressed in thousands): Assessed valuation: Real property $ 6,893,175 Utilities 126,171 Total valuation $ 7,019,346 Debt limit, 5% of total assessed valuation $ 350,967 Debt applicable to debt limit: General obligation bonds 53,935 Urban renewal revenue bonds 11,840 Notes payable (Note 8) 211 Other legal indebtedness (TIF rebates)(Note 11) 33,765 Total net debt applicable to limit 99,751 Legal debt margin $ 251,216 7. Pension and Retirement Systems The City contributes to two employee retirement systems, the Municipal Fire and Police Retirement System of Iowa (MFPRSI) and the Iowa Public Employees Retirement System (IPERS). MFPRSI is governed by a nine-member Board of Trustees. Though separate and apart from state government, the Board is authorized by the state legislature, which also establishes by statute the pension and disability benefits and the System’s funding mechanism. IPERS is administered by the State of Iowa. All full-time employees must participate in either MFPRSI or IPERS. As of June 30, 2022, the City had the following balances related to its pension accounts: For the governmental activities, net pension liability is generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund. IPERS MFPRSI Total Net Pension Liability 554,067$ 7,925,715$ 8,479,782$ Deferred Inflows 20,817,246 14,106,076 34,923,322 Deferred Outflows 4,013,637 4,280,898 8,294,535 Pension Expense (2,024,516) 24,487 (2,000,029) 61 Municipal Fire and Police Retirement System of Iowa (MFPRSI) Plan Description MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement benefits are granted to members with 22 years of service, while partial benefits are available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member’s highest 3 years of compensation. The average of these 3 years becomes the member’s average final compensation. The base benefit is 66 percent of the member’s average final compensation. Additional benefits are available to members who perform more than 22 years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits are available to the beneficiary of a retired member according to the provisions of the benefit option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member’s retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member’s retirement benefit at the member’s earliest date eligible and 100% if the member delays enrollment for 24 months. At the member’s actual date of retirement, the member’s DROP account will be distributed to the member in the form of a lump sum or rollover to an eligible plan. Disability and Death Benefits Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 percent of the member’s average final compensation or the member’s service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50 percent of the member’s average final compensation, for those with 5 or more years of service, or the member’s service retirement benefit calculation amount, and 25 percent of average final compensation for those with less than 5 years of service. Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40 percent of the average final compensation of the member plus an additional amount for each child, or a lump-sum distribution to the designated beneficiary equal to 50 percent of the previous year’s earnable compensation of the member or equal to the amount of the member’s total contributions plus interest. 62 Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. The surviving spouse or dependents of an active member who dies due to a traumatic personal injury incurred in the line of duty receives a $100,000 lump-sum payment. Contributions Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa, the contribution rate was 9.40% of earnable compensation for the year ended June 30, 2022. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the entry age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by 1 percent of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer’s contribution rate cannot be less than 17.00% of earnable compensation. The contribution rate was 26.18% for the year ended June 30, 2022. The City’s contributions to MFPRSI for the year ended June 30, 2022, was $2,987,850. 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 to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 – Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2022. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2022, the City reported a liability of $7,925,715 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, 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, 2021, the City’s proportion was 3.529220% which was a decrease of 0.091859% from its proportions measured as of June 30, 2020. 63 For the year ended June 30, 2022, the City recognized pension expense of $24,487. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $2,987,850 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions The total pension liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Total City contributions subsequent to the measurement date 2,987,850 4,280,898$ 14,106,076$ - Change of assumptions Deferred Outflows of Resources 919,364$ 298,501 Differences between expected and actual experience Deferred Inflows of Resources 89,196$ - - 75,183 13,242,902 773,978 Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions Year Ended June 30, 2023 June 30, 2024 J une 30, 2025 June 30, 2026 June 30, 2027 (4,205,336) (3,751) Total (12,813,028)$ (3,245,683) (2,590,891)$ (2,767,367) Rate of inflation 3.00 percent per annum Salary increases 3.75 to 15.11 percent, including inflation Investment rate of return 7.50 percent, net of pension plan investment expense , including inflation 64 The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from July 1, 2007 to June 30, 2017. Postretirement mortality rates were based on the RP-2014 Blue Collar Combined Healthy Annuitant Table with males set-forward zero years, females set-forward two years and disabled individuals set-forward three years (male only rates), with generational projection of future mortality improvement with 50 percent of Scale BB beginning in 2017. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The best estimates of geometric real rates of return for each major asset class are summarized in the following table: Discount Rate The discount rate used to measure the total pension liability was 7.5%. 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 the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.5%, as well as what the city’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower (6.5%) or 1% higher (8.5%) than the current rate. Asset Class Core Plus Fixed Income 4.0 % Emerging Markets 7.9 Large Cap 7.49 Small Cap 8.1 Global infrastructure 7.5 International Large Cap 7.2 Private Credit 6.4 Private Equity 10.8 Private Non-Core Real Estate 11.5 Private Core Real Estate 7.2 Long-Term Expected Real Rate of Return 1% Decrease (6.5%) Discount Rate (7.5%) 1% Increase (8.5%) City's proportionate share of the net pension liability:23,453,853$ 7,925,715$ (4,961,742)$ 65 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 MFPRSI’s website at www.mfprsi.org. Payables to the Pension Plan At June 30, 2022, there were no amounts due to MFPRSI. Iowa Public Employees Retirement System (IPERS) 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 IPERS. IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive 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. Pension Benefits A regular member may retire at normal retirement age and receive monthly benefits without an early- retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member’s years of service plus the member’s age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on the member’s first month of entitlement to benefits.) Members cannot begin receiving retirement benefits before age 55. The formula used to calculate a Regular member’s monthly IPERS benefit includes: • A multiplier (based on years of service). • The member’s highest five-year average salary. (For members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five- year average salary.) If a member retires before normal retirement age, the member’s monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25 percent for each month that the member receives benefits before the member’s earliest normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50 percent for each month that the member receives benefits before age 65. Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member’s lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before retirement, the member’s beneficiary will receive a lifetime annuity or a lump-sum payment equal to the present actuarial value of the member’s accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. 66 Contributions Contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS’ Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to 1 percentage point. IPERS Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the “entry age normal” actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial liability payment based on a 30-year amortization period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board. In fiscal year 2022, pursuant to the required rate, Regular members contributed 6.29% of pay and the City contributed 9.44% for a total rate of 15.73%. The City’s total contributions to IPERS for the year ended June 30, 2022 were $3,186,195. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2022, the City reported a liability of $554,067 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, 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 IPERS participating employers. At June 30, 2021, the City’s proportion was 0.395223% which was a decrease of 0.002324% from its proportions measured as of June 30, 2020. For the year ended June 30, 2022, the City recognized pension expense of -$2,024,516. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Total 20,817,246$ Change of assumptions 362,407 - Net difference between projected and actual earnings on pension plan investments - 20,074,776 Changes in proportion and differences between City contributions and proportionate share of contributions 43,467 City contributions subsequent to the measurement date 3,186,195 4,013,637$ 319,191 - Deferred Inflows of Resources Deferred Outflows of Resources Differences between expected and actual experience 421,568$ 423,279$ 67 $3,186,195 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions The total pension liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: The actuarial assumptions used in the June 30, 2021, valuation were based on the results of economic assumption study dated March 24, 2017 and a demographic assumption study dated June 28, 2018. Mortality rates were based on the RP-2014 Employee and Healthy Annuitant Tables with MP-2017 generational adjustments. Year Ended June 30, 2023 June 30, 2024 J une 30, 2025 June 30, 2026 June 30, 2027 25,119 Total (4,618,839) (5,492,497) (4,931,969)$ (4,971,618) (19,989,804)$ Rate of inflation 2.60% per annum (effective June 30, 2017) Salary increases 3.25 to 16.25%, average, including inflation. Rates vary by (effective June 30, 2017)membership group. 7.00% compounded annually, net of pension plan investment (effective June 30, 2017)expense, including inflation 3.25% per annum based on 2.60% inflation and 0.65% (effective June 30, 2017)real wage inflation Wage growth Investment rate of return 68 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Discount Rate The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed employee contributions will be made at the contractually required rate and that the contributions from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments to current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of 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 7.0%, as well as what the city’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower (6.0%) or 1% higher (8.0%) 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 IPERS’ website at www.ipers.org. Payables to the Pension Plan At June 30, 2022, there were no amounts due to IPERS. Asset Class Core Plus Fixed Income 26.0 %0.29 % D omestic Equity 22.0 4.43 International Equity 17.5 6.01 Private Equity 13.0 9.51 Private Real Assets 7.5 4.63 Global Smart Beta Equity 6.0 5.1 Public Credit 4.0 2.08 Private Credit 3.0 2.87 Cash 1.0 (0.25) Total 100.0 % Long-Term Expected Real Rate of ReturnTarget Allocation 1% Decrease (6.0%) Discount Rate (7.0%) 1% Increase (8.0%) City's proportionate share of the net pension liability:19,610,271$ 554,067$ (15,416,242)$ 69 8. Other Long-term Liabilities A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $210,784 due on August 1, 2025. For the governmental activities, employee vested benefits are generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund. In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post-closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post-closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of the landfill used during the year. Changes in Long-Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2022, was as follows: Due Within July 1, 2021 Issues Retirements June 30, 2022 One Year Governmental activities: $ 210,784 -$ -$ 210,784$ -$ Changes in Long-Term Liabilities - Employee Vested Benefits Employee Vested Benefits activity for the year ended June 30, 2022, was as follows: Due Within July 1, 2021 Issues Retirements June 30, 2022 One Year Governmental activities: $ 2,750,329 1,382,626$ 1,545,831$ 2,587,124$ 1,460,085$ Business-type activities: $ 887,155 465,725$ 518,278$ 834,602$ 489,507$ Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2022, was as follows: Due Within July 1, 2021 Issues Retirements June 30, 2022 One Year Business-type activities: $ 11,246,190 $ 980,798 -$ $ 12,226,988 -$ 70 The estimated liability for landfill closure and post-closure care costs as of June 30, 2022, is $12,226,988, which is based on 56.8% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $9,299,400 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2039. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2022, was determined by a licensed professional engineer and approximated at $21,526,388. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2022. These amounts are based on an estimated post-closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post-closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2022, the Sanitation Fund had $14,993,095 in related equity in pooled cash and investments, at fair value designated for satisfaction of closure and post-closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post-closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Changes in Long-Term Liabilities – Other Postemployment Benefits (OPEB) Plan Description: The City operates a single-employer self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post-employment benefit options: Health insurance and dental insurance – The option of continuing with the City’s health insurance plan at the individual’s expense. These benefits cease upon Medicare eligibility. Life insurance – The option of converting the employee’s City-paid policy to an individual policy at the individual’s expense with the City’s life insurance carrier. Long-term disability – For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee’s City-paid group policy to a personal policy at the individual’s expense with the City’s long-term disability insurance carrier. The above options, while at the individual’s own expense, are included within the City’s overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Retired participants must be age 55 or older at retirement. At June 30, 2022, the following employees were covered by the benefit terms: Total OPEB Liability: The City’s total OPEB liability of $8,123,615 was measured as of June 30, 2022 and was determined by an actuarial valuation as of that date. Inactive employees or beneficiaries currently receiving benefit payments 60 Active employees 557 Total 617 71 Actuarial Assumptions: The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions and the entry age normal actuarial cost method, applied to all periods included in the measurement. Discount Rate: The discount rate used to measure the total OPEB liability was 4.09% which reflects the index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher as of the measurement date. Mortality rates for general participants are from the SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using Scale MP-2021. Mortality rates for public safety participants are from the SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully generational using Scale MP- 2021. Mortality rates for surviving spouses are from the SOA Pub-2010 Continuing Survivor Headcount Weighted Mortality Table fully generational using Scale MP-2021. Annual retirement probabilities are based on varying rates by age and turnover probabilities mirror those used by IPERS and MFPRSI. The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study with dates corresponding to those listed above. Changes of assumptions reflect a change in the discount rate from 2.19% in fiscal year 2021 to 4.09% in fiscal year 2022. Rate of inflation 2.60% per annum (effective June 30, 2022) Rates of salary increases 3.25% per annum based on 2.60% inflation and 0.65% (effective June 30, 2022)real wage inflation Discount rate 4.09%, compounded annually, including inflation (effective June 30, 2022) Healthcare cost trend rate 7.50% initial rate decreasing by .5% annually to an ultimate (effective June 30, 2022)rate of 4.50% Total OPEB Liability Total OPEB liability beginning of year 9,697,868$ Changes for the year: Service Cost 822,682 Interest 225,747 Difference between expected and actual experience (253,676) Changes in assumptions (1,941,764) Benefit payments (427,242) Net changes (1,574,253) Total OPEB liability end of year 8,123,615$ 72 Sensitivity of the City’s 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 1% lower (3.09%) or 1% higher (5.09%) than the current discount rate. Sensitivity of the City’s Total OPEB Liability to Changes in the Healthcare Cost Trend 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 healthcare cost trend rate that is 1% lower (6.50%) or 1% higher (8.50%) than the current healthcare cost trend rate. OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB: For the year ended June 30, 2022, the City recognized OPEB expense of $1,047,954. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following resources: The amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: For the governmental activities, OPEB liability is generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund 1% Decrease (3.09%) Discount Rate (4.09%) 1% Increase (5.09%) Total OPEB liability 8,710,490$ 8,123,615$ 7,568,034$ 1% Decrease (6.5%) Healthcare Cost Trend Rate (7.5%) 1% Increase (8.50%) Total OPEB liability 7,254,503$ 8,123,615$ 9,145,288$ Total Differences between expected and actual experience 1,063,755$ (754,601)$ Change of assumptions 870,506 (1,805,413) 1,934,261$ (2,560,014)$ Deferred Outflows of Resources Deferred Inflows of Resources Year Ended June 30, 2023 June 30, 2024 J une 30, 2025 June 30, 2026 June 30, 2027 Thereafter Total (475)$ (475) (475) (475) (623,383) (470) (625,753)$ 73 9. Fund Equity Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. • The Nonspendable classification contains amounts not in spendable form or legally or contractually required to be maintained intact. • Restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. • Committed amounts can only be used for specific purposes imposed by formal action of the government’s highest level of decision-making authority. The highest level of decision-making authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance commitment. • Amounts intended to be used for specific purposes are Assigned. Assignments should not cause deficits in the Unassigned fund balance. The Finance Director has been delegated authority by the City Council through a resolution to assign amounts to be used for specific purposes. • Unassigned fund balance is the residual classification for the General Fund. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. The City would use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. Components of Fund Balance Bridge, Other Street and Shared Traffic Other Revenue and Employee Other Control Debt Governmental Round to nearest $General Grants Benefits Construction Construction Service Funds Total Nonspendable: Perpetual Care Principal 69,000$ -$ -$ -$ -$ -$ -$ 69,000$ Inventory - 243,488 - - - - - 243,488 Property Held for Resale 1,819,605 - - - - - - 1,819,605 Total Nonspendable 1,888,605 243,488 - - - - - 2,132,093 Restricted for: Public Safety 435,267 - - - - - - 435,267 Debt Service - - - - - 7,362,448 - 7,362,448 GO Bond Projects - - - 9,756,915 19,093,519 - - 28,850,434 State Funding - 5,087,054 - - - - - 5,087,054 Grant Agreement - - - - - - 3,087,173 3,087,173 Affordable Housing - 5,281,899 - - - - - 5,281,899 Economic Development - - - - - - 1,227,940 1,227,940 Notes Receivable 976,129 - - - - - - 976,129 Public Safety Employee Benefits - - 4,130,695 - - - - 4,130,695 Other Restricted 603,631 1,783,753 - - - - 534,206 2,921,590 Total Restricted 2,015,027 12,152,706 4,130,695 9,756,915 19,093,519 7,362,448 4,849,319 59,360,629 Assigned to: Library Programs 1,283,827 - - - - - - 1,283,827 Replacement and Acquisition Reserves 13,567,665 - - - - - - 13,567,665 Other Assigned 820 - - - - - - 820 Total Assigned 14,852,312 - - - - - - 14,852,312 Unassigned:40,073,824 - - - - - (416,785) 39,657,039 Total Fund Balances 58,829,768$ 12,396,194$ 4,130,695$ 9,756,915$ 19,093,519$ 7,362,448$ 4,432,534$ 116,002,073$ 74 10. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2022 the City purchased property, liability, and workers’ compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a zero self- insured retention on workers’ compensation losses for all employees except Fire Department employees. Workers compensation losses for Fire Department employees are fully self-funded. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance includes a claims liability at June 30, 2022 based on the requirements of GASB Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund’s claims liability amount for property, liability, and workers’ compensation for the years ended June 30, 2022 and 2021 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2020 - 2021 $ 2,561,000 $ 2,562,000 $ 1,850,000 $ 3,273,000 2021 - 2022 3,273,000 (455,000) 76,000 2,741,000 Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims in excess of $125,000 per employee with an aggregate stop-loss of $13,861,923. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund’s claims liability amount for health care coverage for the years ended June 30, 2022 and 2021 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2020 - 2021 $ 1,069,000 $ 9,900,000 $ 10,511,000 $ 458,000 2021 - 2022 458,000 9,438,000 9,313,000 583,000 75 11. Commitments and Contingencies Contractual Commitments Developer Commitments In order to encourage development within designated TIF districts, the City Council has approved developer grants to 8 different projects. The grants are to be paid only after certain conditions have been met by each project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage of future property taxes generated by the property. Currently, it is estimated that outstanding commitments totaling $33,764,981 exist, of which $2,021,648 is expected to be paid in the next fiscal year. These items are expensed in the period in which they are paid. There were payments made in the current fiscal year in the amount of $2,428,574. No liability is recognized due to the fact that the agreements are conditional and the payments are to be funded by future property taxes receivable on the project. 12. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City’s experience that such actions are The total outstanding contractual commitments as of June 30, 2022 are as follows: Project Amount Bridge, street and traffic Paving and Bridge Construction, control construction Engineering Design and Consulting 11,811,589$ Other construction Public Works & Culture and Recreation Construction 5,229,638 Parking Parking Facility Restoration Repair 641,727 Wastewater Sewer Construction & Influent Rake Replacement 2,466,541 Water Water Construction & Peninsula Well Field Power Redundancy Project 373,281 Tran sit Transit Bus Sign Replacements/Transit Amenities 249,470 Airport Runway Obstruction Mitigation & Runway Relocation 541,561 Landfill Lanfill Facility Replacement and Landfill Gas Infrastructure 173,778 Stormwater Stormwater System Improvements & Storm Sewer 330,923 Replacements 21,818,508$ Fund 76 settled for amounts substantially less than claimed amounts. The City’s management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 13. Tax Abatements Governmental Accounting Standards Board 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. City Tax Abatements 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, to pay the developers an economic development grant or to pay the developers a predetermined dollar amount. No other commitments were made by the City as part of these agreements. For the year ended June 30, 2022, $969,017 of property tax was diverted from the City under the urban renewal and economic development projects. Tax Abatements of Other Entities Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2022 under agreements entered into by any entities. 14. New Governmental Accounting Standards Board (GASB) Standards Governmental Accounting Standards Board Statement No. 87, Leases, was implemented as of the beginning o the year ended June 30, 2022. The requirements of this statement apply to financial statements of all state and local governments and establishes standards of accounting and financial reporting for leases by lessees and lessors. Beginning net position/fund balance was not affected by the implementation of Statement No. 87 by the City, however, the City recognized $2,528,000 in lease receivable and $2,528,000 in deferred inflows of resources as of June 30, 2022 and recognized lease revenue and interest revenue as disclosed in Note 4. The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by the City. The statements, which might impact the City’s financial statements, are as follows: Statement No. 91, Conduit Debt Obligations, will be effective for fiscal year ending June 30, 2023. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, will be effective for fiscal year ending June 30, 2023. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). 77 Statement No. 96, Subscription-Based Information Technology Arrangements, will be effective for fiscal year ending June 30, 2023. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). Statement No. 99, Omnibus 2022, will be effective for fiscal year ending June 30, 2023. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62, will be effective for fiscal year ending June 30, 2024. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Statement No. 101, Compensated Absences, will be effective for fiscal year ending June 30, 2025. The objective of this 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 achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The City’s management has not yet determined the effect these statements will have on the City’s financial statements. 78 3279 Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property taxes 66,604$ -$ 66,604$ Delinquent property taxes - - - Tax increment financing taxes 4,016 - 4,016 Other city taxes 3,599 - 3,599 Special assessments - - - Licenses and permits 2,787 12 2,799 Intergovernmental 34,212 21,301 55,513 Charges for services 6,269 41,886 48,155 Use of money and property 1,079 1,190 2,269 Miscellaneous 3,552 1,046 4,598 Total revenues 122,118 65,435 187,553 Expenditures/Expenses: Public safety 27,028 - 27,028 Public works 11,016 - 11,016 Health and social services 650 - 650 Culture and recreation 15,681 - 15,681 Community and economic development 12,416 - 12,416 General government 10,251 - 10,251 Debt service 13,186 - 13,186 Capital outlay 19,678 - 19,678 Business-type - 65,223 65,223 Total expenditures/expenses 109,906 65,223 175,129 Excess (deficiency) of revenues over (under) expenditures/expenses 12,212 212 12,424 Other financing sources and uses, net 6,134 5,069 11,203 Net change in fund balances 18,346 5,281 23,627 Balances, beginning of year 111,322 95,442 206,764 Balances, end of year 129,668$ 100,723$ 230,391$ See Note to Required Supplementary Information. City of Iowa City, Iowa Budgetary Comparison Schedule Budget and Actual - All Governmental Funds and Enterprise Funds Required Supplementary Information For the Year Ended June 30, 2022 (dollar amounts expressed in thousands) Budgetary Basis 80 Final to Actual Variance - Positive Original Final (Negative) 66,912$ 66,912$ (308)$ - - - 4,126 3,983 33 2,707 2,707 892 - - - 1,994 1,994 805 36,567 62,859 (7,346) 49,897 49,897 (1,742) 2,749 2,749 (480) 3,321 3,697 901 168,273 194,798 (7,245) 28,635 28,942 1,914 11,425 11,635 619 661 660 10 16,521 16,781 1,100 9,689 33,306 20,890 11,851 13,245 2,994 13,085 13,191 5 18,165 54,305 34,627 63,224 82,553 17,330 173,256 254,618 79,489 (4,983) (59,820) 72,244 12,671 11,160 43 7,688 (48,660) 72,287$ 141,659 206,764 149,347$ 158,104$ Budgeted Amounts 81 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 122,118$ (13,511)$ 108,607$ Expenditures 109,906 (12,880) 97,026 Net 12,212 (631) 11,581 Other financing sources and uses, net 6,134 (6,056) 78 Beginning Fund Balances 111,322 (6,979) 104,343 Ending Fund Balances 129,668$ (13,666)$ 116,002$ Accrual Accrual Budget Basis Adjustments Basis Revenues 65,435$ 1,749$ 67,184$ Expenditures 65,223 (1,782) 63,441 Net 212 3,531 3,743 Other financing sources and uses, net 5,069 5,926 10,995 Beginning Fund Balances 95,442 298,213 393,655 Ending Fund Balances 100,723$ 307,670$ 408,393$ See Note to Required Supplementary Information. City of Iowa City, Iowa Governmental Fund Types Enterprise Fund Types Budgetary Comparison Schedule Budget to GAAP Reconciliation Required Supplementary Information For the Year Ended June 30, 2022 (dollar amounts expressed in thousands) 82 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2022 In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and custodial funds. The budget basis of accounting is a modified accrual basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $26,525,000 and expenditures by $81,362,000. The budget amendments were primarily due to changes in the breadth and timing of capital improvement projects, which the City budgets in full during the initial year of the projects and amends future year budgets for carryover. 83 2022 2021 2020 2019 City's proportion of the net pension liability 3.529220%3.621079%3.684880%3.706970% City's proportionate share of the net pension liability 7,926$ 28,882$ 24,170$ 22,071$ City's covered payroll 11,468 11,503 11,155 10,743 City's proportionate share of the net pension liability as a percentage of its covered payroll 69.11%251.08%216.67%205.45% Plan fiduciary net position as a percentage of the total pension liability 93.62%76.47%79.94%81.07% * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. See Notes to Required Supplementary Information - Pension Liability. City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability Municipal Fire and Police Retirement System of Iowa For the Last Eight Years* (amounts expressed in thousands) 84 2018 2017 2016 2015 3.648635%3.697128%3.704972%3.778137% 21,398$ 23,117$ 17,406$ 13,696$ 10,347 10,019 9,716 9,648 206.80%230.73%179.15%141.96% 80.60%78.20%83.04%86.27% 85 2022 2021 2020 2019 Statutorily required contributions 2,988$ 2,903$ 2,808$ 2,902$ Contributions in relation to the statutorily required contribution (2,988) (2,903) (2,808) (2,902) Contribution deficiency (excess)-$ -$ -$ -$ City's covered payroll 11,413$ 11,468$ 11,503$ 11,155$ Contributions as a percentage of covered payroll 26.18%25.31%24.41%26.02% See Notes to Required Supplementary Information - Pension Liability. City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Municipal Fire and Police Retirement System of Iowa For the Last Ten Years (amounts expressed in thousands) 86 2018 2017 2016 2015 2014 2013 2,759$ 2,682$ 2,782$ 2,955$ 2,906$ 2,383$ (2,759) (2,682) (2,782) (2,955) (2,906) (2,383) -$ -$ -$ -$ -$ -$ 10,743$ 10,347$ 10,019$ 9,716$ 9,648$ 9,122$ 25.68%25.92%27.77%30.41%30.12%26.12% 87 Changes of benefit terms: There were no significant changes of benefit terms. Changes of assumptions: The 2018 valuation changed postretirement mortality rates on the RP-2014 Blue Collar Healthy Annuitant Table with males set-forward zero years, females set-forward two years and disabled individuals set-forward three years (male only rates), with generational projection of future mortality improvements with 50% of Scale BB beginning in 2017. The 2017 valuation added five years projection of future mortality improvement with Scale BB. The 2016 valuation changed postretirement 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. The 2015 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This resulted in weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Morality Table. The 2014 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This resulted in weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994 Group Annuity Morality Table. City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Municipal Fire and Police Retirement System of Iowa Year ended June 30, 2022 88 8989 2022 2021 2020 2019 City's proportion of the net pension liability 0.3952230%0.3975467%0.4053890%0.4016869% City's proportionate share of the net pension liability 554$ 27,732$ 23,475$ 25,420$ City's covered payroll 32,047 31,345 30,852 30,190 City's proportionate share of the net pension liability as a percentage of its covered payroll 1.73%88.47%76.09%84.20% Plan fiduciary net position as a percentage of the total pension liability 100.81%82.90%85.45%83.62% * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. See Notes to Required Supplementary Information - Pension Liability. City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability Iowa Public Employees' Retirement System For the Last Eight Years* (amounts expressed in thousands) 90 2018 2017 2016 2015 0.3968158%0.3962696%0.4159256%0.4378904% 26,433$ 24,938$ 20,549$ 17,366$ 29,619 28,448 28,495 28,654 89.24%87.66%72.11%60.61% 82.21%81.82%85.19%87.61% 91 2022 2021 2020 2019 Statutorily required contributions 3,186$ 3,025$ 2,959$ 2,912$ Contributions in relation to the statutorily required contribution (3,186) (3,025) (2,959) (2,912) Contribution deficiency (excess)-$ -$ -$ -$ City's covered payroll 33,752$ 32,047$ 31,345$ 30,852$ Contributions as a percentage of covered payroll 9.44%9.44%9.44%9.44% See Notes to Required Supplementary Information - Pension Liability. (amounts expressed in thousands) City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Iowa Public Employees' Retirement System For the Last Ten Years 92 2018 2017 2016 2015 2014 2013 2,696$ 2,645$ 2,540$ 2,545$ 2,559$ 2,442$ (2,696) (2,645) (2,540) (2,545) (2,559) (2,442) -$ -$ -$ -$ -$ -$ 30,190$ 29,619$ 28,448$ 28,495$ 28,654$ 28,170$ 8.93%8.93%8.93%8.93%8.93%8.67% 93 Changes of benefit terms: There are no significant changes in benefit terms. Changes of assumptions: The 2018 valuation implemented the following refinements as a result of an experience 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 a 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 as a result of an experience study dated March 24, 2017: • Decreased the inflation assumption from 3.00% to 2.60%. • Decreased the assumed rate of interest on member accounts from 3.75% to 3.5% per year. • Decreased the discount rate from 7.50% to 7.00%. • Decreased the wage growth assumption from 4.00% to 3.25%. • Decreased the payroll growth assumption from 4.00% to 3.25%. The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: • Decreased the inflation assumption from 3.25% to 3.00% • Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per year. • Adjusted male mortality rates for retirees in the Regular membership group. • Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 year period. City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2022 94 2022 2021 2020 2019 2018 Service Cost 823$ 734$ 633$ 553$ 502$ Interest 226 240 323 297 245 Difference between expected and actual experience (254) 459 (483) 1,161 (377) Changes in assumptions (1,942) 305 (83) 225 982 Benefit payments (427) (667) (641) (948) (174) Net change in total OPEB liability (1,574) 1,071 (251) 1,288 1,178 Total OPEB liability beginning of year 9,698 8,627 8,878 7,590 6,412 Total OPEB liability end of year 8,124$ 9,698$ 8,627$ 8,878$ 7,590$ City's covered-employee payroll 44,134$ 43,515$ 42,848$ 42,007$ 40,933$ Total OPEB liability as a percentage of covered-employee payroll 18.41%22.29%20.13%21.13%18.54% Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. Note: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GAS Statement No. 75. Changes of benefit terms: There were no significant changes of benefit terms. Changes of assumptions: Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period. Year ended June 30, 2022 4.09% Year ended June 30, 2021 2.19% Year ended June 30, 2020 2.66% Year ended June 30, 2019 3.51% Year ended June 30, 2018 3.87% Mortality tables have been updated from using improvement Scale MP-2019 to Scale MP-2021. Health care trend rates have been updated to an initial trend rate of 7.5% decreasing by 0.5% annually to an ultimate rate of 4.5%. Health care coverage election rate assumption for active employees with current coverage was changed from 85% to 75% to reflect recent experience and future expectations. This change resulted in a significant reduction in liabilities. City of Iowa City, Iowa Required Supplementary Information - Schedule of Changes in the City's Total OPEB Liability, Related Ratios and Notes For the Last Five Years (amounts expressed in thousands) 95 9696 Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Economic Development Fund – accounts for revenue and expenditures of economic development activities. Community Development Block Grant Fund – accounts for revenue from the U.S. Department of Housing and Urban Development’s Community Development Block Grant programs. Metropolitan Planning Organization of Johnson County Fund – accounts for the financial activities of the metropolitan/rural cooperative planning organization. 97 Metropolitan Community Planning Development Organization Economic Block of Johnson Development Grant County Total Assets Equity in pooled cash and investments 865$ 121$ 501$ 1,487$ Receivables: Property tax 544 - - 544 Accounts and unbilled usage - - 12 12 Interest - - 1 1 Notes - 3,106 - 3,106 Due from other governments - 19 59 78 Total assets 1,409$ 3,246$ 573$ 5,228$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 71$ 16$ 16$ 103$ Accrued liabilities - 7 23 30 Liabilities payable from restricted assets: Advances from grantors - 117 - 117 Total liabilities 71 140 39 250 Deferred Inflows of Resources Unavailable revenues: Succeeding year property taxes 527 - - 527 Grants - 19 - 19 Total deferred inflows of resources 527 19 - 546 Fund Balances Restricted 1,228 3,087 534 4,849 Unassigned (417) - - (417) Total fund balances 811 3,087 534 4,432 Total liabilities, deferred inflows of resources and fund balances 1,409$ 3,246$ 573$ 5,228$ Special Revenue City of Iowa City, Iowa Combining Balance Sheet Nonmajor Governmental Funds June 30, 2022 (amounts expressed in thousands) 98 Metropolitan Community Planning Development Organization Economic Block of Johnson Development Grant County Total Revenues Property taxes 4,446$ -$ -$ 4,446$ Intergovernmental 83 579 462 1,124 Use of money and property - 30 2 32 Miscellaneous - 113 1 114 Total revenues 4,529 722 465 5,716 Expenditures Current: Community and economic development 3,520 840 760 5,120 Total expenditures 3,520 840 760 5,120 Excess (deficiency) of revenues over (under) expenditures 1,009 (118) (295) 596 Other Financing Sources (Uses) Transfers in 244 - 391 635 Transfers out (1,864) (94) - (1,958) Total other financing sources and (uses)(1,620) (94) 391 (1,323) Net change in fund balances (611) (212) 96 (727) Fund Balances, Beginning 1,422 3,299 438 5,159 Fund Balances, Ending 811$ 3,087$ 534$ 4,432$ Special Revenue City of Iowa City, Iowa Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2022 (amounts expressed in thousands) 99 100100 Nonmajor Enterprise Funds Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing services to the general public on a continuing basis are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category are as follows: Airport Fund – accounts for the operation and maintenance of the airport facility. Parking Fund – accounts for the operation and maintenance of the “on” and “off” street public parking facilities. 101 Airport Parking Total Assets Current assets: Equity in pooled cash and investments 171$ 4,390$ 4,561$ Receivables: Accounts and unbilled usage 31 46 77 Interest - 1 1 Lease 45 - 45 Due from other governments 227 3 230 Total current assets 474 4,440 4,914 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 156 316 472 Lease receivable 556 - 556 Capital assets: Land 11,995 3,489 15,484 Buildings 5,458 42,236 47,694 Improvements other than buildings 445 328 773 Machinery and equipment 531 1,622 2,153 Infrastructure 17,451 - 17,451 Accumulated depreciation (13,451) (25,680) (39,131) Construction in progress 383 - 383 Total noncurrent assets 23,524 22,311 45,835 Total assets 23,998 26,751 50,749 Deferred Outflows of Resources Pension related deferred outflows 8 125 133 OPEB related deferred outflows 3 60 63 Total deferred outflows of resources 11 185 196 Liabilities Current liabilities: Accounts payable 25 59 84 Contracts payable 97 256 353 Accrued liabilities 4 76 80 Employee vested benefits 4 59 63 Due to other funds - - - Total current liabilities 130 450 580 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 8 4 12 Advances from other funds - 1,762 1,762 Employee vested benefits 3 44 47 Net pension liability 1 17 18 Other post employment benefits obligation 12 252 264 Total noncurrent liabilities 24 2,079 2,103 Total liabilities 154 2,529 2,683 Deferred Inflows of Resources Lease related deferred inflows 601 - 601 Pension related deferred inflows 43 640 683 OPEB related deferred inflows 4 79 83 Total deferred inflows of resources 648 719 1,367 Net Position Net investment in capital assets 22,812 21,995 44,807 Restricted for future improvements 100 304 404 Unrestricted 295 1,389 1,684 Total net position 23,207$ 23,688$ 46,895$ City of Iowa City, Iowa Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2022 (amounts expressed in thousands) 102 Airport Parking Total Operating Revenues: Charges for services 284$ 5,054$ 5,338$ Miscellaneous 1 60 61 Total operating revenues 285 5,114 5,399 Operating Expenses: Personal services 80 1,932 2,012 Commodities 112 631 743 Services and charges 345 1,659 2,004 537 4,222 4,759 Depreciation 994 1,262 2,256 Total operating expenses 1,531 5,484 7,015 Operating loss (1,246) (370) (1,616) Nonoperating Revenues: Operating grants 259 3 262 Lease revenue 88 - 88 Interest income 18 12 30 Total nonoperating revenues 365 15 380 Loss before capital contributions and transfers (881) (355) (1,236) Capital contributions 154 - 154 Transfers in 100 - 100 Transfers out - - - Change in net position (627) (355) (982) Net Position, Beginning 23,834 24,043 47,877 Net Position, Ending 23,207$ 23,688$ 46,895$ Nonmajor Enterprise Funds and Changes in Fund Net Position Combining Statement of Revenues, Expenses City of Iowa City, Iowa (amounts expressed in thousands) For the Year Ended June 30, 2022 103 Airport Parking Total Cash Flows From Operating Activities Receipts from customers and users 279$ 5,394$ 5,673$ Payments to suppliers (465) (2,073) (2,538) Payments to employees (87) (1,972) (2,059) Net cash flows used for operating activities (273) 1,349 1,076 Cash Flows From Noncapital Financing Activities Operating grants received 444 2 446 Transfers from other funds 100 - 100 Transfers to other funds - - - Advances from other funds - 725 725 Repayment of advances from other funds (174) - (174) Net cash flows from (used for) noncapital financing activities 370 727 1,097 Cash Flows From Capital and Related Financing Activities Capital grants received 156 - 156 Lease revenues received 88 - 88 Acquisition and construction of property and equipment (139) (588) (727) Net cash flows used for capital and related financing activities 105 (588) (483) Cash Flows From Investing Activities Interest on investments 18 12 30 Net increase (decrease) in cash and cash equivalents 220 1,500 1,720 Cash and Cash Equivalents, Beginning 107 3,206 3,313 Cash and Cash Equivalents, Ending 327$ 4,706$ 5,033$ Reconciliation of operating loss to net cash flows from (used for) operating activities: Operating loss (1,246)$ (370)$ (1,616)$ Adjustments to reconcile operating loss to net cash flows used for operating activities: Depreciation expense 994 1,262 2,256 Changes in: Receivables: Accounts and unbilled usage (6) 277 271 Due from other governments - - - Accounts payable (8) 217 209 Accrued liabilities - 14 14 Net pension liability (55) (799) (854) Deferred outflows of resources 4 54 58 Deferred inflows of resources 44 674 718 Other post employment benefits asset/obligation (2) 14 12 Total adjustments 973 1,719 2,692 Net cash flows used for operating activities (273)$ 1,349$ 1,076$ Noncash Investing, Capital, and Financing Activities: Capital grants not yet received 163$ -$ 163$ Operating grants not yet received 64$ 3$ 67$ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2022 (amounts expressed in thousands) 104 Internal Service Funds Internal Service Funds account for goods and services provided by one department to other City departments on a cost-reimbursement basis. The funds in this category are: Equipment Maintenance Fund – accounts for the provision of maintenance for City vehicles, equipment and vehicle rental from a central vehicle pool, and two-way radios provided to other City departments. Central Services Fund – accounts for the support services of photocopying, mail and overnight shipping provided to other City departments. Loss Reserve Fund – accounts for the property, liability, Workers’ Compensation and health insurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund – accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including the operation and replacement of equipment. 105 Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments 19,778$ 826$ 18,241$ 4,043$ 42,888$ Receivables: Accounts and unbilled usage 45 - 179 2 226 Interest 11 - 17 - 28 Lease - - - 19 19 Due from other governments 24 - - 2 26 Inventories 692 - - - 692 Total current assets 20,550 826 18,437 4,066 43,879 Noncurrent assets: Lease Receivable - - - 40 40 Capital assets: Land 685 - - - 685 Buildings 1,298 - - 183 1,481 Improvements other than buildings 50 - - - 50 Machinery and equipment 23,910 130 19 1,607 25,666 Infrastructure - - - 3,634 3,634 Accumulated depreciation (13,482) (61) (19) (1,876) (15,438) Construction in progress 68 - - 482 550 Total noncurrent assets 12,529 69 - 4,070 16,668 Total assets 33,079 895 18,437 8,136 60,547 Deferred Outflows of Resources Pension related deferred outflows 97 3 20 100 220 OPEB related deferred outflows 46 3 3 29 81 Total deferred outflows of resources 143 6 23 129 301 Liabilities Current liabilities: Accounts payable 219 10 314 24 567 Accrued liabilities 49 2 3,334 54 3,439 Employee vested benefits 36 - 4 21 61 Due to other governments - - - - - Total current liabilities 304 12 3,652 99 4,067 Noncurrent liabilities: Employee vested benefits 27 - 3 17 47 Net pension liability 14 - 3 15 32 Other post employment benefits liability 192 12 12 120 336 Total noncurrent liabilities 233 12 18 152 415 Total liabilities 537 24 3,670 251 4,482 Deferred Inflows of Resources Lease related deferred inflows - - - 59 59 Pension related deferred inflows 522 15 105 546 1,188 OPEB related deferred inflows 61 4 4 38 107 583 19 109 643 1,354 Net Position Net investment in capital assets 12,529 69 - 4,030 16,628 Unrestricted 19,573 789 14,681 3,341 38,384 Total net position 32,102$ 858$ 14,681$ 7,371$ 55,012$ (amounts expressed in thousands) City of Iowa City, Iowa Combining Statement of Net Position Internal Service Funds June 30, 2022 106 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 7,419$ 234$ 13,042$ 3,107$ 23,802$ Total operating revenues 7,419 234 13,042 3,107 23,802 Operating Expenses: Personal services 1,048 33 213 1,039 2,333 Commodities 2,105 8 6 658 2,777 Services and charges 535 123 10,566 639 11,863 3,688 164 10,785 2,336 16,973 Depreciation 2,167 22 - 309 2,498 Total operating expenses 5,855 186 10,785 2,645 19,471 Operating income 1,564 48 2,257 462 4,331 Nonoperating Revenues: Gain (loss) on disposal of capital assets 80 - - 5 85 Lease Revenue - - - 15 15 Operating grants 10 - - 2 12 Interest income (444) 3 (623) 15 (1,049) Total nonoperating revenues (354) 3 (623) 37 (937) Income before transfers 1,210 51 1,634 499 3,394 Capital contributions - - - 262 262 Transfers in 662 - - 242 904 Transfers out (825) - (12) (75) (912) Change in net position 1,047 51 1,622 928 3,648 Net Position, Beginning 31,055 807 13,059 6,443 51,364 Net Position, Ending 32,102$ 858$ 14,681$ 7,371$ 55,012$ (amounts expressed in thousands) City of Iowa City, Iowa Combining Statement of Revenues, Expenses Internal Service Funds For the Year Ended June 30, 2022 and Changes in Fund Net Position 107 Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from users 7,432$ 234$ 13,028$ 3,105$ 23,799$ Payments to suppliers (2,712) (131) (10,952) (1,450) (15,245) Payments to employees (1,127) (39) (235) (1,161) (2,562) Net cash flows from operating activities 3,593 64 1,841 494 5,992 Cash Flows From Noncapital Financing Activities Operating grants received 3 - - - 3 Transfers from other funds 662 - - 242 904 Transfers to other funds (825) - (12) (75) (912) Net cash flows from (used for) noncapital financing activities (160) - (12) 167 (5) Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (1,416) (50) - (427) (1,893) Lease revenues received - - - 15 15 Proceeds from sale of property 97 - - 5 102 Net cash flows used for capital and related financing activities (1,319) (50) - (407) (1,776) Cash Flows From Investing Activities Interest on investments (443) 3 (622) 17 (1,045) Net increase in cash and cash equivalents 1,671 17 1,207 271 3,166 Cash and Cash Equivalents, Beginning 18,107 809 17,034 3,772 39,722 Cash and Cash Equivalents, Ending 19,778$ 826$ 18,241$ 4,043$ 42,888$ Reconciliation of operating income to net cash flows from operating activities: Operating income 1,564$ 48$ 2,257$ 462$ 4,331$ Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 2,167 22 - 309 2,498 Changes in: Receivables: Accounts and unbilled usage (34) - (14) (2) (50) Due from other governments 47 - - - 47 Inventories (124) - - - (124) Accounts payable 59 - 25 (153) (69) Accrued liabilities 4 1 (406) 3 (398) Employee vested benefits (7) - 1 (15) (21) Due to other governments (7) - - - (7) Net pension liability (672) (24) (133) (702) (1,531) Deferred outflows of resources 54 2 10 62 128 Deferred inflows of resources 546 17 103 550 1,216 Other post employment benefits liability (4) (2) (2) (20) (28) Total adjustments 2,029 16 (416) 32 1,661 Net cash flows from operating activities 3,593$ 64$ 1,841$ 494$ 5,992$ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ -$ -$ 262$ 262$ (amounts expressed in thousands) City of Iowa City, Iowa Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2022 108 Statistical Section Tabs Statistical Section This part of the City of Iowa City’s annual comprehensive financial report represents 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 111 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 116 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 126 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information 132 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 134 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year. 109 110110 20131 2014 2015 20162 2017 2018 2019 2020 2021 2022 Governmental activities Net investment in capital assets 133,989$ 138,482$ 153,729$ 163,362$ 183,651$ 203,077$ 208,028$ 220,004$ 228,418$ 230,285$ Restricted 22,867 39,958 36,447 42,154 47,676 41,490 38,819 33,578 33,664 36,900 Unrestricted 50,744 39,758 15,520 18,402 16,264 17,646 20,124 21,819 25,528 39,505 Total governmental activities net position 207,600$ 218,198$ 205,696$ 223,918$ 247,591$ 262,213$ 266,971$ 275,401$ 287,610$ 306,690$ Business-type activities Net investment in capital assets 253,617$ 264,727$ 279,272$ 279,679$ 285,912$ 294,109$ 304,111$ 314,523$ 315,915$ 325,787$ Restricted 19,033 19,438 22,389 22,269 21,238 22,219 18,055 17,558 14,859 13,216 Unrestricted 74,370 71,542 57,367 69,472 76,664 73,126 77,224 76,661 84,097 92,370 Total business-type activities net position 347,020$ 355,707$ 359,028$ 371,420$ 383,814$ 389,454$ 399,390$ 408,742$ 414,871$ 431,373$ Primary government Net investment in capital assets 387,606$ 403,209$ 433,001$ 443,041$ 469,563$ 497,186$ 512,139$ 534,527$ 544,333$ 556,072$ Restricted 41,900 59,396 58,836 64,423 68,914 63,709 56,874 51,136 48,523 50,116 Unrestricted 125,114 111,300 72,887 87,874 92,928 90,772 97,348 98,480 109,625 131,875 Total primary government net position 554,620$ 573,905$ 564,724$ 595,338$ 631,405$ 651,667$ 666,361$ 684,143$ 702,481$ 738,063$ 1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013. 2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. City of Iowa City, Iowa Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) 111 20131 2014 2015 20162 2017 2018 2019 2020 2021 2022Expenses Governmental activities: Public safety 20,989$ 22,721$ 21,193$ 22,029$ 24,002$ 25,191$ 26,265$ 29,252$ 30,411$ 23,609$ Public works 10,240 8,258 11,037 10,839 12,032 12,813 16,324 16,071 16,363 17,746 Culture and recreation 14,481 16,586 14,049 14,422 15,525 16,363 16,009 16,233 15,774 16,923 Community and economic development 10,596 10,059 7,093 6,786 8,253 12,019 16,022 9,383 8,549 11,074 General government 7,513 7,687 7,752 6,240 6,124 6,858 7,524 7,693 10,529 7,439 Debt service 2,237 1,797 1,517 1,287 1,481 1,414 1,444 1,452 1,561 1,553 Total governmental activities expenses 66,056 67,108 62,641 61,603 67,417 74,658 83,588 80,084 83,187 78,344 Business-type activities: Wastewater 10,464 21,139 12,131 11,866 11,233 11,392 11,413 10,807 12,520 12,105 Water 9,074 8,723 8,403 8,149 8,921 9,472 9,543 9,302 10,177 9,477 Sanitation 7,279 8,402 8,114 8,735 9,123 9,408 10,858 10,145 10,045 10,113 Housing authority 7,658 7,703 7,873 8,378 8,798 9,535 10,170 10,021 10,141 11,832 Parking 4,579 4,093 4,678 4,460 4,620 5,590 5,461 5,014 4,613 5,381 Airport 1,086 1,209 1,612 1,597 1,402 1,680 1,466 2,511 1,835 1,509 Stormwater 1,318 1,314 2,091 1,989 2,432 1,844 1,832 2,198 2,105 2,190 Cable television 692 781 704 - - - - - - - Transit 6,998 7,795 7,379 7,486 7,263 8,071 8,833 9,041 8,107 8,573 Total business-type activities expenses 49,148 61,159 52,985 52,660 53,792 56,992 59,576 59,039 59,543 61,180 Total primary government expenses 115,204$ 128,267$ 115,626$ 114,263$ 121,209$ 131,650$ 143,164$ 139,123$ 142,730$ 139,524$ Program Revenues Governmental activities: Charges for services Public safety 4,098$ 3,626$ 3,926$ 4,813$ 5,286$ 4,438$ 4,870$ 4,430$ 4,277$ 4,625$ Public works 52 61 388 628 724 62 290 243 482 149 Culture and recreation 775 808 801 823 842 836 854 508 322 627 Community and economic development - 45 50 1,044 36 441 548 59 1,837 3,625 General government 2,763 3,030 2,975 1,252 1,524 1,520 1,717 1,551 1,582 1,728 Operating grants and contributions 4,731 3,231 8,701 9,941 10,828 10,245 13,758 13,113 12,479 14,491 Capital grants and contributions 6,876 5,580 11,556 3,999 9,952 1,459 1,972 1,915 2,845 4,316 Total governmental activities program revenues 19,295 16,381 28,397 22,500 29,192 19,001 24,009 21,819 23,824 29,561 Business-type activities: Charges for services: Wastewater 12,832 12,559 12,189 12,266 12,277 12,626 12,831 12,357 12,155 12,121 Water 8,583 8,443 8,527 9,134 9,275 9,473 9,640 10,048 9,934 10,127 Sanitation 8,181 8,467 9,015 9,215 9,927 10,014 10,017 10,193 11,944 11,289 Housing authority 205 213 237 300 321 323 295 280 296 282 Parking 5,043 5,294 5,502 5,438 5,453 5,648 5,982 4,354 3,758 5,054 Airport 314 328 349 333 345 348 361 371 376 372 Stormwater 974 1,093 1,147 1,168 1,544 1,560 1,568 1,730 1,701 1,704 Cable Television 816 773 750 - - - - - - - Transit1 2,117 2,185 2,289 2,099 2,089 2,216 2,171 1,802 1,385 1,745 Capital grants and contributions: Wastewater 30,181 7,105 1,370 3,415 2,226 1,913 1,827 2,550 1,580 964 Capital grants and contributions: Water 494 539 581 254 869 483 488 965 834 481 Capital grants and contributions: Sanitation - - - - - 22 13 - - - Capital grants and contributions: Airport 2,452 5,214 137 260 58 49 38 134 267 154 Capital grants and contributions: Stormwater 226 711 792 370 1,251 892 902 876 1,230 696 Capital grants and contributions: Parking - - - - - - - - - - Capital grants and contributions: Transit 898 243 - 308 395 3,827 - - 77 3,416 Operating grants and contributions: Housing authority 6,968 6,721 7,628 8,318 8,532 9,065 9,443 9,875 9,691 11,481 Operating grants and contributions: Water 442 6 2 - - - - 2 45 42 Operating grants and contributions: Airport 11 56 232 128 69 72 14 896 332 259 Operating grants and contributions: Sanitation 23 27 25 3 - 3 104 20 18 105 Operating grants and contributions: Wastewater - 62 21 - - - - 8 - 77 Operating grants and contributions: Stormwater 13 13 279 95 - 2 - - - - Operating grants and contributions: Parking - - - - - - - 3 - 3 Operating grants and contributions: Transit 1,767 2,118 2,082 2,095 2,235 2,088 2,152 3,107 3,016 5,096 Total business-type activities program revenues 82,540 62,170 53,154 55,199 56,866 60,624 57,846 59,571 58,639 65,468 Total primary government revenues 101,835$ 78,551$ 81,551$ 77,699$ 86,058$ 79,625$ 81,855$ 81,390$ 82,463$ 95,029$ Net (Expense) / Revenues Governmental activities (46,761)$ (50,727)$ (34,244)$ (39,103)$ (38,225)$ (55,657)$ (59,579)$ (58,265)$ (59,363)$ (48,783)$ Business-type activities 33,392 1,011 169 2,539 3,074 3,632 (1,730) 532 (904) 4,288 Total primary government net expense (13,369)$ (49,716)$ (34,075)$ (36,564)$ (35,151)$ (52,025)$ (61,309)$ (57,733)$ (60,267)$ (44,495)$ General Revenues and Other Changes in Net Position Governmental activities: General revenues: Property taxes 51,017$ 50,551$ 52,205$ 53,114$ 57,649$ 59,046$ 61,739$ 62,846$ 69,482$ 70,678$ Road use tax3 6,589 6,745 - - - - - - - - Local Sales Option tax 8,858 466 - - - - - - - - Other taxes 2,609 2,778 2,810 2,717 2,802 2,706 2,935 2,696 2,576 3,541 Grants and contributions not restricted to specific purposes - - 1,048 2,080 1,583 1,547 1,552 1,513 1,587 1,555 Earnings (loss) on investments 841 973 1,188 1,045 1,397 2,368 3,257 2,585 841 (544) Miscellaneous 4,390 4,353 5,518 4,464 3,369 3,656 3,329 3,331 3,030 3,524 Gain on sale of assets 1,312 1,651 135 218 2,151 140 186 111 213 257 Transfers (10,485) (6,192) (10,057) (6,395) (7,053) 1,814 (8,661) (6,387) (6,157) (11,148) Reassignments - - - 82 - - - - - - Total governmental activities 65,131 61,325 52,847 57,325 61,898 71,277 64,337 66,695 71,572 67,863 (continued) City of Iowa City, Iowa Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) 112 20131 2014 2015 20162 2017 2018 2019 2020 2021 2022Business-type activities: General revenues: Earnings (loss) on investments 671 494 707 715 938 1,496 2,166 1,794 426 (190) Gain on sale of assets 293 725 856 2,463 69 2,438 1 74 22 23 Miscellaneous 918 265 374 362 1,260 456 838 565 428 1,233 Transfers 10,485 6,192 10,057 6,395 7,053 (1,814) 8,661 6,387 6,157 11,148 Reassignments - - - (82) - - - - - - Special items - - (574) - - - - - - - Extraordinary items - - - - - - - - - - Total business-type activities 12,367 7,676 11,420 9,853 9,320 2,576 11,666 8,820 7,033 12,214 Total primary government 77,498$ 69,001$ 64,267$ 67,178$ 71,218$ 73,853$ 76,003$ 75,515$ 78,605$ 80,077$ Change in Net Position Governmental activities 18,370$ 10,598$ 18,603$ 18,222$ 23,673$ 15,620$ 4,758$ 8,430$ 12,209$ 19,080$ Business-type activities 45,759 8,687 11,589 12,392 12,394 6,208 9,936 9,352 6,129 16,502 Total primary government 64,129$ 19,285$ 30,192$ 30,614$ 36,067$ 21,828$ 14,694$ 17,782$ 18,338$ 35,582$ 1 The City of Iowa City reclassified the Mass Transportation Fund from the General Fund to an Enterprise Fund effective the fiscal year ending June 30, 2013. 2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. 3 The City of Iowa City reclassified Road Use Tax from General Revenues to Operating Grants effective for the fiscal year ending June 30, 2015. City of Iowa City, Iowa Changes in Net Position (continued) Last Ten Fiscal Years(Accrual basis of accounting) (amounts expressed in thousands) 113 20131 2014 2015 20162 2017 2018 2019 2020 2021 2022 General Fund Nonspendable 69$ 69$ 69$ 69$ 788$ 793$ 887$ 549$ 469$ 1,889$ Restricted 25,689 26,533 25,291 18,975 9,974 1,942 1,808 1,747 1,455 2,015 Committed - - - 4,699 5,199 4,962 - - - - Assigned 1,744 3,400 - 1,143 1,342 1,437 3,565 5,708 9,883 14,852 Reserved - - 4,483 - - - - - - - Unassigned 17,113 17,907 19,286 23,366 24,793 28,516 34,358 35,369 40,414 40,074 Total general fund 44,615$ 47,909$ 49,129$ 48,252$ 42,096$ 37,650$ 40,618$ 43,373$ 52,221$ 58,830$ All other Governmental Funds Nonspendable -$ -$ -$ -$ 344$ 165$ 224$ 278$ 218$ 243$ Restricted 28,108 31,285 27,897 38,266 63,941 64,033 50,966 48,728 51,931 57,346 Unassigned (5,844) (9) - - - (38) (59) (611) (27) (417) Total all other governmental funds 22,264$ 31,276$ 27,897$ 38,266$ 64,285$ 64,160$ 51,131$ 48,395$ 52,122$ 57,172$ 1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013. 2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. City of Iowa City, Iowa Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) 114 20131 2014 2015 20162 2017 2018 2019 2020 2021 2022 Revenues: Property taxes and assessments 62,483$ 53,797$ 55,014$ 55,831$ 60,452$ 61,753$ 64,672$ 65,542$ 72,058$ 74,220$ Licenses and permits 1,784 1,660 1,806 3,056 3,521 2,734 2,981 2,352 2,541 2,786 Intergovernmental 19,941 17,636 21,086 20,230 24,140 14,944 16,828 18,603 20,127 22,756 Charges for services 1,800 1,819 2,204 3,357 2,355 2,295 2,690 1,715 3,446 5,314 Fines and forfeits - - - 760 750 695 776 609 375 434 Use of money and property 782 909 1,080 946 1,235 1,937 2,564 1,872 773 506 Miscellaneous 6,325 6,040 7,045 2,913 2,101 2,875 2,261 2,440 2,112 2,591 Total governmental activities revenues 93,115$ 81,861$ 88,235$ 87,093$ 94,554$ 87,233$ 92,772$ 93,133$ 101,432$ 108,607$ Expenditures Current Public safety 20,648$ 21,370$ 21,996$ 21,701$ 22,513$ 23,360$ 24,295$ 25,637$ 26,167$ 26,821$ Public works 8,503 8,432 12,071 9,466 9,186 10,052 10,894 10,586 11,447 10,883 Culture and recreation 13,000 13,087 11,821 12,257 13,341 14,208 13,709 13,653 12,979 15,090 Community and economic development 8,219 8,196 5,711 5,346 7,695 11,074 15,723 8,627 8,305 11,076 General government 7,286 7,184 7,608 6,007 5,882 6,017 6,579 6,789 9,788 7,907 Debt service Principal 16,465 13,560 12,564 13,230 13,305 11,895 12,080 11,385 12,745 11,220 Interest 2,339 1,903 1,669 1,475 1,597 1,570 1,589 1,648 1,905 1,956 Capital projects 17,861 14,528 14,762 14,848 18,405 28,225 22,632 21,211 12,173 12,073 Total expenditures 94,321$ 88,260$ 88,202$ 84,330$ 91,924$ 106,401$ 107,501$ 99,536$ 95,509$ 97,026$ Excess (deficiency) of revenues over (under) expenditures (1,206)$ (6,399)$ 33$ 2,763$ 2,630$ (19,168)$ (14,729)$ (6,403)$ 5,923$ 11,581$ Other financing sources (uses): Issuance of long-term debt 2,655$ 19,730$ 7,785$ 9,405$ 22,570$ 11,995$ 12,535$ 12,145$ 11,325$ 10,255$ Issuance of refunding debt - - - - - - - - - - Sale of capital assets 1,369 1,684 165 252 2,292 140 758 111 233 256 Insurance Recoveries - - - - - - - - - - Premium (discount) on issuance of bonds (42) 385 199 441 120 236 81 927 1,464 553 Payment of refunded bonds - - - - - - - - - - Transfers in 25,198 13,040 13,089 25,133 34,675 34,666 25,663 21,236 21,223 24,229 Transfers out (35,493) (16,134) (23,430) (28,502) (47,033) (32,440) (34,369) (27,997) (27,593) (35,215) Total other financing sources (uses)(6,313)$ 18,705$ (2,192)$ 6,729$ 12,624$ 14,597$ 4,668$ 6,422$ 6,652$ 78$ Net change in fund balances (7,519)$ 12,306$ (2,159)$ 9,492$ 15,254$ (4,571)$ (10,061)$ 19$ 12,575$ 11,659$ Debt service as a percentage of noncapital expenditures 24.0%20.7%19.8%21.2%19.9%17.1%15.6%15.9%17.1%14.6% Debt services as a percentage of expenditures and transfers 14.5%14.8%12.7%13.0%10.7%9.7%9.6%10.2%11.9%10.0% 1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013. 2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015. City of Iowa City, Iowa Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) 115 Fiscal Local Option Utility Year Property Tax Road Use Tax Hotel/Motel Tax Sales Tax1 Franchise Fee Total 2013 51,836 6,589 872 8,858 918 69,073 2014 51,331 6,745 967 466 1,031 60,540 2015 53,056 7,231 1,057 - 902 62,246 2016 53,878 8,320 1,079 - 874 64,151 2017 58,375 8,672 1,137 - 939 69,123 2018 59,730 8,427 1,046 - 976 70,179 2019 62,407 8,820 1,302 - 965 73,494 2020 63,523 9,163 1,135 - 884 74,705 2021 70,126 10,077 938 - 994 82,135 2022 71,362 9,900 1,708 - 1,149 84,119 1 1% Local Option Sales Tax went into effect 7/1/09 and was effective through 6/30/13. City of Iowa City, Iowa General Government Tax Revenues by Source Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) 116 Assessed Valuation Tax Collection Year: FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 Residential 5,067,120,030$ 4,958,648,218$ 4,399,451,083$ 4,255,597,838$ 4,001,761,478$ 3,882,757,454$ 3,603,743,609$ 3,488,112,611$ 3,367,051,717$ 3,284,249,136$ Agricultural (taxed at Ag rate)1,727,980 1,748,000 2,539,080 2,625,810 3,425,692 3,720,671 3,553,520 3,680,920 2,655,640 2,516,440 Multi-Residential 539,398,739 539,636,381 489,176,499 471,420,082 411,460,472 410,426,868 - - - - Commercial 1,056,414,063 1,060,943,044 932,699,374 915,964,068 821,949,555 805,734,128 1,129,397,979 1,144,437,631 1,113,600,025 1,149,535,927 Industrial 79,998,654 80,663,794 76,905,588 71,553,904 72,635,554 73,206,895 74,399,739 80,153,614 72,834,630 73,400,730 Railroads 4,072,190 4,488,469 3,601,348 3,549,414 3,984,932 4,096,577 4,015,580 3,827,506 3,205,451 2,619,932 Utilities w'out Gas & Electric 4,339,508 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940 11,051,685 Gross valuation 6,753,071,164 6,652,280,453 5,911,759,380 5,727,810,409 5,321,952,577 5,187,317,659 4,823,350,216 4,729,811,810 4,570,164,403 4,523,373,850 Less: Military exemption 2,392,784 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502 3,096,542 Net valuation 6,750,678,380 6,649,845,073 5,909,270,292 5,725,230,573 5,319,317,181 5,184,589,665 4,820,522,214 4,726,872,688 4,567,104,901 4,520,277,308 Incremental value 142,496,667 89,469,635 115,175,495 85,379,709 80,577,275 72,666,677 42,307,287 21,131,574 14,113,908 11,712,327 Gas and Electric Utilities 126,171,274 118,583,613 109,124,421 97,050,716 94,582,279 92,987,351 87,728,294 78,642,915 87,100,183 83,538,109 Total Assessed valuation 7,019,346,321$ 6,857,898,321$ 6,133,570,208$ 5,907,660,998$ 5,494,476,735$ 5,350,243,693$ 4,950,557,795$ 4,826,647,177$ 4,668,318,992$ 4,615,527,744$ Percent change 2.354%11.809%3.824%7.520%2.696%8.074%2.567%3.392%1.144%2.110% Taxable Valuation Tax Collection Year: FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 Assessment Limitation: Residential rollback 56.4094%55.0743%56.9180%55.6209%56.9391%55.6259%55.7335%54.4002%52.8166%50.7518% Agricultural rollback 84.0305%81.4832%56.1324%54.4480%47.4996%46.1068%44.7021%43.3997%59.9334%57.5411% Multi-Residential rollback 67.50%71.25%75.00%78.75%82.50%86.25%NA NA NA NA Commercial and Railroad rollback 90.0%90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA NA Industrial rollback 90.0%90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA NA Residential 2,837,384,852$ 2,719,569,602$ 2,490,442,298$ 2,356,529,643$ 2,274,451,551$ 2,155,033,296$ 2,008,493,138$ 1,894,079,854$ 1,776,096,066$ 1,666,036,081$ Agricultural (taxed at Ag rate)1,452,029 1,424,328 1,425,151 1,429,547 1,618,090 1,706,955 1,588,496 1,597,501 1,591,636 1,447,988 Multi-Residential 360,829,356 382,070,966 363,613,829 368,969,925 337,946,106 353,335,857 - - - - Commercial 944,990,382 950,525,463 832,628,954 819,505,276 734,200,396 720,036,878 1,016,458,199 1,086,556,293 1,113,600,025 1,149,535,927 Industrial 71,998,513 72,596,824 68,970,889 64,152,540 64,688,055 65,301,535 66,959,765 76,128,877 72,834,630 73,400,730 Railroads 3,664,971 4,039,622 3,241,213 3,194,473 3,586,439 3,686,919 3,614,022 3,636,130 3,205,451 2,619,932 Utilities w'out Gas & Electric 4,276,538 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940 11,051,685 Gross valuation 4,224,596,641 4,136,379,352 3,767,708,742 3,620,880,697 3,423,225,531 3,306,476,506 3,105,353,409 3,071,598,183 2,978,144,748 2,904,092,343 Less: Military exemption 2,392,784 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502 3,096,542 Net valuation 4,222,203,857 4,133,943,972 3,765,219,654 3,618,300,861 3,420,590,135 3,303,748,512 3,102,525,407 3,068,659,061 2,975,085,246 2,900,995,801 Incremental value 131,180,258 84,077,937 115,175,495 85,379,369 80,559,947 72,650,838 33,331,128 21,131,574 14,113,908 11,712,327 Gas and Electric Utilities 40,595,608 40,156,239 42,719,065 41,797,475 41,702,196 44,986,783 46,785,426 47,004,994 46,813,214 47,404,050 Total Taxable Valuation 4,393,979,723$ 4,258,178,148$ 3,923,114,214$ 3,745,477,705$ 3,542,852,278$ 3,421,386,133$ 3,182,641,961$ 3,136,795,629$ 3,036,012,368$ 2,960,112,178$ Percent change 3.189%8.541%4.743%5.719%3.550%7.501%1.462%3.320%2.564%3.931% Total Direct Tax Rate City of Iowa City 15.673$ 15.773$ 15.833$ 16.183$ 16.333$ 16.583$ 16.651$ 16.705$ 16.805$ 17.269$ Sources: Iowa Department of Management, IC Budget Notes: Property is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real property subject to taxation shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value. City of Iowa City, Iowa Assessed and Taxable Value of Property Last Ten Fiscal Years 117 (per $1,000 assessed valuation) Fiscal Year:2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Levy Year:2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 City: General Fund 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ Emergency Levy 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.24000 0.24000 Debt Service Fund 4.44287 4.02965 4.12963 3.92833 3.82846 3.57846 3.22846 2.97846 2.57846 2.47846 Employee Benefits 3.19286 3.16331 2.96331 3.11277 3.14415 3.14415 3.34415 3.24415 3.34415 3.34415 Capital Improvement 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Other 1.53291 1.51226 1.51226 1.50986 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044 Total City 17.26864$ 16.80522$ 16.70520$ 16.65096$ 16.58305$ 16.33305$ 16.18305$ 15.83305$ 15.77305$ 15.67305$ Johnson County 6.74909$ 6.73712$ 6.74168$ 6.90337$ 6.77140$ 6.85143$ 6.53594$ 6.49278$ 6.34581$ 6.16774$ Iowa City Community School District 14.07327 13.68792 13.69999 13.86773 13.98935 13.95855 14.85629 14.79097 14.83935 14.85066 Kirkwood 1.07888 1.06473 1.05754 1.06125 1.08048 1.13174 1.20354 1.21331 1.25730 1.31195 Other 0.32919 0.37333 0.32315 0.32784 0.32450 0.33036 0.30557 0.27066 0.33110 0.32744 Total Tax Rate 39.49907$ 38.66832$ 38.52756$ 38.81115$ 38.74878$ 38.60513$ 39.08439$ 38.60077$ 38.54661$ 38.33084$ Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor. Note: Does not include the tax rate for agriculture. Taxpayers in the Iowa City Community School District Area City of Iowa City, Iowa Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years 118 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections1 Collections 2013 50,407 50,139 99.5 3 50,142 99.5 2014 50,307 49,835 99.1 1 49,836 99.1 2015 51,609 51,292 99.4 3 51,295 99.4 2016 52,034 52,074 100.1 0 52,074 100.1 2017 55,330 55,331 100.0 0 55,331 100.0 2018 56,458 56,346 99.8 1 56,347 99.8 2019 59,174 59,252 100.1 2 59,254 100.1 2020 60,297 58,971 97.8 1 58,972 97.8 2021 65,849 65,656 99.7 1058 66,714 101.3 2022 66,912 67,075 100.2 29 67,104 100.3 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. 1 Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. Percent of Levy Collected Total as a Percent of Levy City of Iowa City, Iowa Levies and Collections Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) 119 % of Total % of Total Taxable Taxable Taxable Taxable Ten largest taxpayers1 Type of Business Valuation Rank Valuation Valuation Rank Valuation Rise at Riverfront Crossing Owner LLC Real Estate Developer -$ -N/A %55,376$ 1 1.26 % BBCS Hawkeye Housing LLC Real Estate Mangment - -N/A 50,709 2 1.15 Tailwind Iowa City LLC Real Estate Mangment - -N/A 43,517 3 0.99 1201 Gilbert LLC Real Estate Mangment --N/A 37,097 4 0.84 Webber - Iowa LLC Domestic Limited Liability Company - -N/A 29,003 5 0.66 Vesper Iowa City LLC Real Estate Developer --N/A 28,918 6 0.66 ACT Inc (Am College Testing Prgrm)Educational Testing Service 47,441 1 1.56 28,021 7 0.64 Mid-American Energy Company Public Gas and Electric Utility 44,033 2 1.45 27,749 8 0.63 Midwestone Bank Finanacial --N/A 26,708 9 0.61 Augusta Place LLC RealEstate Developer --N/A 25,249 10 0.57 Ann Gerdin Trust (formerly Russell Gerdin)Warehousing 22,006 3 0.72 - -N/A Dealer Properties IC LLC (Billion Auto)Car Dealerships 17,339 4 0.57 - -N/A Alpha Inc. Industrial 16,090 5 0.53 - -N/A Proctor & Gamble LLC Manufacturing Company 15,441 6 0.51 - -N/A National Computer Systems (Pearson)Information Services 14,410 7 0.47 - -N/A United Natural Foods Wholesale Distribution Company 12,903 8 0.42 - -N/A Southgate Development Company Real Estate Developer 12,734 9 0.42 - -N/A Wal-Mart Real Estate Retail 12,640 10 0.42 - -N/A Total 215,037$ 7.07 %352,347$ 8.01 % Sources: 1City of Iowa City Assessor's Office City of Iowa City, Iowa Principal Taxpayers Current Year and Nine Years Ago (amounts expressed in thousands) 20222013 120 121121 Customer Name Charges Rank Percentage Charges Rank Percentage Proctor & Gamble 599,964$ 1 7.32 %600,025$ 1 5.88 % Veterans Administration Medical Center 108,129 2 1.32 117,827 2 1.15 Tailwind Iowa City LLC formerly Dolphin Lake/Lakeside Manor 85,186 3 1.04 73,167 3 0.72 Campus Apartments 62,253 5 0.76 67,150 4 0.66 Mercy Hospital 69,880 4 0.85 67,070 5 0.66 Dominium JIT Srv formerly Mark IV Apts 57,582 6 0.70 54,968 6 0.54 Seville Apts 31,504 10 0.38 41,973 7 0.41 Oaknoll Retirement Residence --N/A 39,941 8 0.39 University of Iowa, Mayflower Apt.41,806 8 0.51 38,609 9 0.38 Rise at Riverfront Crossing - -N/A 39,482 10 0.39 ACT Inc 53,064 7 0.65 --N/A RBD Iowa City LLC (Sheraton Hotel)34,120 9 0.42 --N/A 1,143,488$ 13.95 %1,140,213$ 11.18 % Total Water System Charges 8,194,467$ 10,209,841$ Sources: City of Iowa City Revenue Division City of Iowa City, Iowa Larger Water System Customers Current Year and Nine Years Ago 20222013 122 Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2013 254,616,773 8,194,467 2014 239,790,719 7,778,364 20151 240,423,612 8,161,522 2016 255,524,943 8,758,683 2017 267,511,531 9,156,005 2018 293,046,636 9,953,510 2019 289,055,329 10,139,587 2020 285,102,926 10,705,168 2021 237,035,139 9,459,987 2022 237,722,261 10,209,841 Sources: City of Iowa City Revenue Department Notes: 1Beginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage. City of Iowa City Sales History and Water System Charges Last Ten Fiscal Years 123 Customer Name Charges Rank Percentage Charges Rank Percentage University of Iowa 2,193,252$ 1 17.02 %1,811,614$ 1 14.60 % Proctor & Gamble 991,579 2 7.70 901,974 2 7.27 Veterans Administration Medical Center 145,484 5 1.13 138,234 3 1.11 Iowa City Landfill 156,749 3 1.22 100,805 4 0.81 Mercy Hospital 118,458 6 0.92 92,480 5 0.75 Tailwind Iowa City LLC formerly Dolphin Lake 147,379 4 1.14 76,874 6 0.62 Campus Apartments 84,639 7 0.66 71,316 7 0.57 Dominium JIT Srv formerly Mark IV Apts 81,566 8 0.63 58,076 8 0.47 University of Iowa/Mayflower Apartments 73,516 9 0.57 52,480 9 0.42 Rise at Riverfront Crossing - -N/A 51,926 10 0.42 RBD Iowa City LLC (Sheraton Hotel)59,569 10 0.46 --N/A 4,052,191$ 31.45 %3,355,778$ 27.04 % Total Sewer System Charges 12,883,641$ 12,407,521$ Sources: City of Iowa City Revenue Department City of Iowa City, Iowa Larger Sewer System Charges Current Year and Nine Years Ago 2013 2022 124 Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2013 285,472,392 12,883,641 2014 269,494,125 12,382,031 20151 266,830,947 12,278,153 2016 270,547,701 12,022,203 2017 277,712,785 12,404,360 2018 283,246,320 12,524,540 2019 288,537,266 12,822,250 2020 279,106,456 12,503,764 2021 265,605,446 11,819,500 2022 265,503,359 12,407,521 Sources: City of Iowa City Revenue Department Notes: 1Beginning in March 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage. City of Iowa City, Iowa Sales History and Sewer System Charges Last Ten Fiscal Years 125 General Capital General Total Percentage Fiscal Obligation Revenue Loan Obligation Revenue Primary of Personal Per Year Bonds1 Bonds1 Note Bonds1 Bonds1 Lease Government Income2 Capita2 2013 57,688,803 2,614,644 210,784 1,182,315 62,764,738 - 124,461,284 1.70 1,775 2014 64,132,510 2,616,768 210,784 886,157 57,568,517 - 125,414,736 1.62 1,752 2015 59,421,203 2,618,892 210,784 590,000 45,566,903 - 108,407,782 1.40 1,475 2016 55,998,392 2,491,016 210,784 295,000 39,951,661 - 98,946,853 1.23 1,327 2017 52,571,254 15,168,140 210,784 - 34,420,914 14,482,714 116,853,806 1.34 1,544 2018 52,883,524 15,035,264 210,784 - 29,095,062 11,958,305 109,182,939 1.18 1,442 2019 53,402,638 14,902,388 210,784 - 21,155,710 9,413,024 99,084,544 1.02 1,319 2020 55,007,945 14,764,512 210,784 - 16,786,358 - 86,769,599 0.86 1,160 2021 56,685,493 12,781,636 210,784 - 12,242,006 - 81,919,919 0.77 1,098 2022 56,823,948 11,818,760 210,784 - 7,645,204 - 76,498,696 0.69 1,019 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 1 Bonds reported net of related premiums and discounts. 2 Population and personal income information can be found on page 132. Governmental Activities Business-Type Activities City of Iowa City, Iowa Ratios of Outstanding Debt by Type Last Ten Fiscal Years 126 Gross General Less: Debt Net General Net Bonded Debt Net Bonded Fiscal Obligation Service Obligation per $1,000 of Debt Year Bonded Debt 1 Fund Balance Bonded Debt Assessed Value Per Capita2 2013 58,871 6,527 52,344 11.34 : 1000 746 2014 65,019 6,718 58,301 12.46 : 1000 814 2015 60,011 3,921 56,090 10.97 : 1000 764 2016 56,293 6,463 49,830 10.04 : 1000 671 2017 52,571 7,221 45,350 8.38 : 1000 599 2018 52,884 8,423 44,461 8.09 : 1000 587 2019 53,403 9,514 43,889 7.43 : 1000 584 2020 55,008 9,590 45,418 7.40 : 1000 607 2021 56,685 7,388 49,297 7.19 : 1000 661 2022 56,824 7,190 49,634 7.07 : 1000 661 Notes: 1 General Obligation bonds, net of related premiums and discounts. 2 Population data can be found on page 132. City of Iowa City Iowa Ratios of General Obligation Bonded Debt1 to Assessed Value and Net Bonded Debt per Capita Last Ten Fiscal Years (amounts expressed in thousands, except per capita) 127 City of Iowa City, Iowa Computation of Direct and Overlapping Debt June 30, 2022 (amounts expressed in thousands, except per capita) Total General Percent Amount Long-Term Applicable Applicable Name of Direct Debt to the City of to the City of Governmental Unit Outstanding Iowa City Iowa City City of Iowa City2 68,853$ 100.00 %68,853$ Iowa City Community School District1 164,020 58.67 96,231 Johnson County1 9,602 43.39 4,166 Clear Creek- Amana Community School District1 78,610 0.03 24 Kirkwood Comm. College1 137,385 14.84 20,388 Total Overlapping Debt 389,617 120,809 Total Direct & Overlapping Debt 458,470$ 189,662$ 1 Long term debt outstanding includes only GO debt. 2Net direct debt includes premiums & discounts Source: Johnson County Auditor's Office. each overlapping government. However,this does not imply that every taxpayer is a resident,and therefore responsible for repaying the debt,of Note:Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City.This process recognizes that,when considering the City's ability to issue and repay long-term debt,the entire burden borne by the residents and businesses should be taken into account. 128 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Assessed Valuation 4,615,527$ 4,668,319$ 4,826,648$ 4,950,559$ 5,350,228$ 5,494,459$ 5,907,661$ 6,133,570$ 6,857,898$ 7,019,346$ Debt Limit 230,776 233,416 241,332 247,528 267,511 274,723 295,383 306,679 342,895 350,967 G.O. Bonds 58,550 64,420 59,340 55,350 51,645 51,880 52,470 53,370 53,935 53,935 TIF Rev. Bonds 2,655 2,655 2,655 2,525 15,200 15,065 14,930 14,790 12,805 11,840 Letters of credit 538 1,943 2,005 582 663 475 603 - - - Notes payable 211 211 211 211 211 211 211 211 211 211 TIF rebates 307 170 18,206 13,506 17,356 25,012 27,954 25,877 36,944 33,765 Total net debt applicable to limit 62,261 69,399 82,417 72,174 85,075 92,643 96,168 94,248 103,895 99,751 Legal debt margin 168,515$ 164,017$ 158,915$ 175,354$ 182,436$ 182,080$ 199,215$ 212,431$ 239,000$ 251,216$ Total net debt applicable to the limit as a percentage of debt limit 26.98%29.73%34.15%29.16%31.80%33.72%32.56%30.73%30.30%28.42% 1As reported in the Annual Financial Report to the State Note: Under Iowa code, the city's outstanding general obligation debt should not exceed 5 percent of total assessed property value. City of Iowa City, Iowa Legal Debt Margin Information1 Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year 129 Fiscal Year Net Revenue Annual Debt Service2 Ended Available for Ratio of June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage Parking Revenue3 2013 5,122 3,549 1,573 515 324 839 1.87 2014 5,365 2,969 2,396 530 308 838 2.86 20157 5,620 3,828 1,792 540 254 794 2.26 2016 - - - - - - - 2017 5,531 3,683 1,848 1,015 86 1,101 1.68 2018 5,812 3,790 2,022 524 576 1,100 1.84 2019 6,205 3,724 2,481 545 476 1,021 2.43 20209 4,577 3,476 1,101 567 375 942 1.17 20219 - - - - - - - 20229 - - - - - - - Wastewater Treatment Revenue4 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52 2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29 2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31 2017 13,383 6,357 7,026 3,625 985 4,610 1.52 2018 13,181 6,622 6,559 3,580 756 4,336 1.51 20198 13,548 6,840 6,708 3,465 539 4,004 1.68 2020 12,917 6,366 6,551 2,510 367 2,877 2.28 2021 12,449 7,874 4,575 2,620 257 2,877 1.59 2022 12,473 7,525 4,948 2,660 153 2,813 1.76 Water Revenue5 20136 9,342 6,348 2,994 845 758 1,603 1.87 20146 8,613 5,818 2,795 1,335 650 1,985 1.41 2015 8,715 5,632 3,083 1,380 610 1,990 1.55 2016 9,323 5,387 3,936 1,715 579 2,294 1.72 2017 9,529 6,332 3,197 1,760 524 2,284 1.40 2018 9,838 6,949 2,889 1,455 394 1,849 1.56 2019 10,078 6,888 3,190 1,510 280 1,790 1.78 2020 10,399 6,752 3,647 1,565 238 1,803 2.02 2021 10,048 7,471 2,577 1,630 193 1,823 1.41 2022 10,748 7,006 3,742 1,690 146 1,836 2.04 Notes: 1 Excludes depreciation and interest. 2 Includes principal and interest of revenue bonds only. 3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. 4 Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 6 Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service. 7 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service. 8 Debt Service excludes the amount called early of $2,670,000. 9 Parking Capital Lease called early is excluded from the principal and interest of Annual Debt Service. City of Iowa City, Iowa Schedule of Revenue Bond Coverage Last Ten Fiscal Years (amounts expressed in thousands) 130 Fiscal Taxable Year Valuation Available 2012D TIF 2016E TIF Available Ended Available for TIF Tax Increment Revenue Revenue Debt June 30 Certification (1)Tax Rate (2)Revenues (3)Bonds Bonds Total Coverage 2013 109,518 31.86 3,489 - - - - 2014 110,797 30.37 3,365 75 - 75 44.66 2015 141,518 29.79 4,215 75 - 75 55.95 2016 156,898 30.49 4,784 205 - 205 23.30 2017 195,411 30.41 5,943 204 273 477 12.45 2018 226,439 30.34 6,870 207 384 591 11.61 2019 297,479 29.66 8,822 205 384 589 14.97 2020 341,736 29.93 10,228 207 384 591 17.31 2021 539,721 30.03 16,208 205 384 589 27.52 2022 546,008 30.03 16,397 - 1,349 1,349 12.15 (3) The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at the higher SSMID rate. City of Iowa City, Iowa Schedule of TIF Revenue Bond Coverage Last Ten Fiscal Years (amounts expressed in thousands) (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. (2) The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of $.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting in fiscal year 2012-13, a portion of the taxable valuation certified will be at the higher rate due to its location in the SSMID. 131 Per Capita Calendar Personal Personal Average School Retail Year Population6 Income1 Income1 Increase Enrollment2 Sales4 2013 71,454 7,327,594 45,325 1.95 14,057 3.8 793,201,342 2014 72,831 7,762,343 47,345 4.46 14,162 3.5 649,794,164 2015 73,497 8,035,139 48,343 2.11 14,495 2.9 838,853,686 2016 74,587 8,296,973 49,461 2.31 15,186 3.2 853,258,347 2017 75,690 8,713,868 51,198 3.51 15,299 3.0 874,928,988 2018 75,696 9,238,484 54,803 7.04 15,334 2.2 854,538,416 2019 75,130 9,681,989 55,518 1.30 15,619 2.4 865,628,890 2020 74,828 10,063,781 57,345 3.29 15,363 8.4 832,475,900 2021 74,596 10,690,422 60,316 5.18 15,636 4.0 856,925,682 20225,7 75,107 11,125,085 62,768 4.07 15,828 2.5 891,767,541 Sources and Notes:1 Personal Income and Per Capita Personal Income based on metropolitan Iowa City / Coralville and based on figures from Bureau of Economic Analysis. Personal Income expressed in thousands.2 Iowa City Community School District and local private schools 3 Iowa Workforce Development Center 4 Iowa Retail Sales & Use Report, Iowa Department of Revenue and Finance. Fiscal year ending June 30. 5 Personal Income for 2022 and Per Capita Personal Income for 2022 is not available. Amounts projected based on average increase over previous 5 years. 6 US Census Bureau Population number is not avaible for 2022. Amounts projected based on an average over previous 9 years. 7 Quarter reports were not yet available so amount projected based on average increase over previous 5 years. Demographic and Economic Statistics City of Iowa City, Iowa Last Ten Calendar Years Unemployment Rate3 132 Employers Employees Rank Percentage Employees Rank Percentage University of Iowa 30,804 1 33.2 %24,935 1 25.8 % Iowa City Community School District 1,700 2 1.8 2,000 2 2.1 Veterans Administration Medical Center 1,562 3 1.7 2,000 3 2.1 Hy Vee 1,166 8 1.3 1,350 4 1.4 Procter and Gamble - -N/A 1,300 5 1.3 Mercy Hospital 1,187 6 1.3 1,300 6 1.3 ACT Inc. (formerly American College Testing Program)1,181 7 1.3 985 7 1.0 City of Iowa City 1,283 4 1.4 863 8 0.9 NCS Pearson 1,200 5 1.3 800 9 0.8 Goodwill of the Heartland - -N/A 638 10 0.7 System Unlimited 890 9 1.0 - -N/A Internaltion Automotive Components formerly Lear Corp 785 10 0.8 - -N/A 41,758 45.1 %36,171 37.4 % Total Employees 92,700 96,600 Sources: Iowa City Area Development Group Various Employers and documents City of Iowa City, Iowa Principal Employers Current Year and Nine Years Ago 2013 2022 133 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Public Safety Police 103 105 105 105 105 105 107 107 109.26 110.76 Fire 65 65 64 64 64 64 64 64 64 64 Inspection Services 15.55 13.55 13.55 12.85 13.5 13.5 15.6 15.6 17.6 17.6 Public Works Public Works Admin 2 2 2 2 2 2 2 2 2 2 Engineering5 12.1 12.1 12.1 12 16 16 16 16 18 18 Flood Recovery 0.4 0.38 - - - - - - - - Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 2 2 2 2 Recreation 15.42 15.42 15.42 14.42 15.42 14.75 14 14.5 14.5 14.5 Parks 13 13 13 13 16 16 16 16 16 16 Forestry 3 3 3 3 3 3 5 5 7 7 Cemetery 3 3 3 3 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 - - - - - - Library 43.63 45.13 45.13 44.77 46.17 46.17 46.17 46.05 45.92 45.92 Senior Center 6.5 6.5 6.5 6.5 7 7 7 7 7.76 7.76 Community and Economic Development 8.4 8.95 8.95 10.8 12.63 13.13 13.13 13.13 12.13 12.13 Economic Development 1 1 1 2 1 1 1 1 1 1 General Government City Council 7 7 7 7 7 7 7 7 7 7 City Clerk 4 4 4 4 4 4 4 4 4 4 City Attorney 5.6 5.6 5.6 5.5 5.5 5.5 5.5 5.5 5.5 5.5 City Manager2 5 6 6 10.5 10.5 9 9 9 13.89 14.89 Personnel 4 3 3 3 3 3 3 3 3 3 Human Rights 2 2 2 2 2 2 2 2 2 2 Finance 23.47 23.97 22.47 23.07 23.13 22.13 22.28 22.28 22.28 22.28 Government Buildings 4.83 4.83 4.83 5.33 4.33 5 4 5 4 4 Special Revenue Employee Benefits 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 Community Development 3.33 2.98 2.98 2.83 - - - - - - UniverCity Program 0.2 - - - - - - - - - Traffic Engineering 4.15 4.15 4.15 3.9 4.5 3 3 3 3 3 Streets 25.5 25.5 25.5 25.25 25.5 29 29 29 29 29 MPOJC (formerly JCCOG)5.6 5.6 5.6 4.7 4.7 4.7 5.2 5.2 5.2 5.2 Other Shared Revenues 1.6 1.62 - - - - - - - - Library Development 1 - - - - - - - - - Capital Projects Administration5 6 6 5 4 - - - - - - Internal Service Funds Information Technology 10.86 9.86 9.86 9.86 9.8 10.8 9.8 9.8 9.8 9.8 Equipment 10.75 10.75 10.75 10.75 10.75 10.75 10.75 10.75 11.75 12 Central Services 0.76 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Risk Management 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Business-Type Activities Parking 29.25 26.25 26.25 23.13 21.63 21.63 21.38 19.63 21.38 21.38 Mass Transit3 51.75 51.25 51.25 51.13 53.63 54.63 53.38 53.38 54.13 54.13 Wastewater Treatment 25.4 24.4 24.65 24.65 25.4 26 26 26 26 26 Water 32.75 31.75 32 32 31.75 31.75 31.75 31.75 31.25 31.25 Sanitation 37.85 35.85 35.85 33.35 31.5 31.5 32.76 34.76 35.26 35.51 Airport 1 1 1 1 1 1 1 1 1 1 Cable Television4 6.63 6.63 5.63 - - - - - - - Stormwater 2.1 2.1 2.6 2.6 2.1 1.5 1.5 2.5 2 2 Housing Authority 13.18 12.19 10.19 10.19 9.6 9.6 9.5 9.5 10.62 10.62 Total 623.91 615.16 607.66 598.93 599.89 601.89 605.55 608.18 624.08 627.08 Source: City's Financial Plan 1 Beginning in FY13, Animal Services is reported under Police 2 Beginning in FY13, Communications Division has been moved from Finance to City Manager 3 Beginning in FY13, Transit was moved from the General Fund to an Enterprise Fund 4 Beginning in FY16, Cable was moved from an Enterprise Fund to the General Fund 5 Beginning in FY17, Capital Project Administration was moved to Engineering Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 City of Iowa City, Iowa 134 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Public Safety Police1 Physical arrests 4,468 6,192 5,595 5,465 4,482 4,488 5,212 2,891 2,525 2,699 Traffic Violations 2,499 3,718 3,356 2,989 2,246 3,103 3,422 1,052 1,627 2,246 Fire1 Number of calls answered 4,713 5,828 6,016 6,974 6,749 7,122 7,532 6,979 8,106 7,510 Inspections conducted 1,431 2,032 1,903 2,459 874 1,031 1,300 181 1,194 965 Parking Parking Violations 88,909 60,680 65,196 57,549 62,930 50,346 61,330 48,042 45,727 69,502 Wastewater Treatment Daily average treatment in million gallons 9.84 10.02 9.76 10.48 8.32 7.77 10.97 8.58 7.93 7.38 Maximum daily capacity of plant in million gallons 41.1 41.1 43.3 43.3 43.3 43.3 43.3 43.3 43.3 43.3 Number of sewer system customers 24,059 24,389 24,533 25,085 25,485 26,069 26,270 26,576 26,892 27,021 Water Daily average consumption in million gallons 5.54 5.64 5.33 5.32 5.50 5.84 5.69 5.33 5.57 5.52 Maximum daily capacity of plant in million gallons 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 Customers by Classification Residential 24,442 24,790 23,089 23,638 24,025 24,595 24,818 25,133 25,452 25,588 Commercial 1,491 1,491 1,409 1,415 1,425 1,436 1,431 1,448 1,448 1,442 Industrial 15 15 14 14 14 15 15 15 15 15 Other 204 202 135 131 134 136 139 138 137 137 Total Customers 26,152 26,498 24,647 25,198 25,598 26,182 26,403 26,734 27,052 27,182 Sanitation Number of Customers 15,177 15,331 14,811 15,620 15,917 15,960 16,112 16,180 16,330 16,481 Tonnage 8,956 9,160 9,210 9,476 9,623 9,694 8,989 9,682 10,339 10,247 Landfill Tonnage 111,445 115,624 123,692 126,875 137,025 140,658 127,587 128,210 151,823 135,557 Sources: Various city divisions. Notes: 1 Numbers are based on a calendar year and 2022 year-to-date figures are compiled through 11/16/22 for FIRE and 11/15/22 for Police. Last Ten Fiscal Years Operating Indicators by Function City of Iowa City, Iowa 135 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 18 20 20 20 24 23 23 23 23 23 Fire Stations 4 4 4 4 4 4 4 4 4 4 Fire apparatus 11 11 11 10 10 10 10 10 10 10 Public Works Streets Miles 276 279 281 283 286 288 292 293 295 298 Street lights 3,412 3,412 3,412 3,412 3,412 3,307 3,166 3,202 3,246 3,227 Culture and Recreation Library 1 1 1 1 1 1 1 1 1 1 Cemetery 1 1 1 1 1 1 1 1 1 1 Acreage 40 40 40 40 40 40 40 40 40 40 Parks 42 43 46 46 49 50 51 56 56 58 Acreage 1,506 1,897 1,897 1,902 1,932 1,942 1,947 1,950 1,980 1,987 Recreation Recreation centers 2 2 2 2 2 2 2 2 2 2 Swimming pools 3 3 3 3 3 3 3 3 3 3 Ball diamonds 27 27 27 27 27 27 27 27 27 27 Tennis courts 12 12 12 12 9 9 9 9 9 9 Soccer fields 20 20 20 20 20 20 20 20 20 20 Pickle Ball Courts - - - - 8 8 8 8 8 8 Futscal Courts - - - - 2 2 2 2 2 2 Full Basketball Courts - - - - 3 3 3 6 6 6 Gaga Pits - - - - - 2 2 2 2 2 Boccce Court 1 1 Parking Facilities 5 5 5 5 6 6 6 6 6 6 Spaces 3,086 3,086 3,086 3,086 3,686 3,686 3,686 3,686 3,686 3,686 Wastewater Treatment Miles of sanitary sewer 295 298 300 301 304 306 307 308 310 312 Miles of storm sewer 128 131 133 136 139 140 142 144 146 147 Number of treatment plants 2 1 1 1 1 1 1 1 1 1 Number of service connectors 23,851 24,175 24,533 25,085 25,485 26,069 26,270 26,576 26,892 27,021 Water Miles of water mains 268 271 273 275 277 279 281 283 286 288 Number of city owned fire hydrants 3,330 3,385 3,415 3,447 3,503 3,529 3,564 3,611 3,647 3,687 Sanitation Landfills 1 1 1 1 1 1 1 1 1 1 Acreage 411 411 418 418 418 418 418 418 418 418 Sources: Various city divisions. City of Iowa City, Iowa Capital Assets by Function Last Ten Fiscal Years 136 Compliance Section Tab 150 City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 B-1 APPENDIX B DESCRIBING BOOK-ENTRY-ONLY ISSUANCE 1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. 2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a S&P Global Ratings rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 B-2 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to any Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book- entry credit of tendered Securities to any Tender/Remarketing Agent’s DTC account. 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 C-1 APPENDIX C DRAFT FORM OF BOND COUNSEL OPINION City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 C-2 City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-1 APPENDIX D DRAFT CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Iowa City, State of Iowa (the "Issuer"), in connection with the issuance of $__________________General Obligation Bonds, Series 2023 (the "Bonds") dated _____________, 2023. The Bonds are being issued pursuant to a Resolution of the Issuer approved on _______________, 2023 (the "Resolution"). The Issuer covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate; Interpretation. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Certificate shall be governed by, construed and interpreted in accordance with the Rule, and, to the extent not in conflict with the Rule, the laws of the State. Nothing herein shall be interpreted to require more than required by the Rule. Section 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Financial Information" shall mean financial information or operating data of the type included in the final Official Statement, provided at least annually by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Business Day" shall mean a day other than a Saturday or a Sunday or a day on which banks in Iowa are authorized or required by law to close. "Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation. "Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with S.E.C. Rule 15c2-12. "Holders" shall mean the registered holders of the Bonds, as recorded in the registration books of the Registrar. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005. "National Repository" shall mean the MSRB's Electronic Municipal Market Access website, a/k/a "EMMA" (emma.msrb.org). "Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated ______________, 2023. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission (S.E.C.) under the Securities Exchange Act of 1934, and any guidance and procedures thereunder published by the S.E.C., as the same may be amended from time to time. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-2 "State" shall mean the State of Iowa. Section 3. Provision of Annual Financial Information. a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two hundred ten (210) days after the end of the Issuer's fiscal year (presently June 30th), commencing with information for the 2022/2023 fiscal year, provide to the National Repository an Annual Financial Information filing consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Financial Information filing must be submitted in such format as is required by the MSRB (currently in "searchable PDF" format). The Annual Financial Information filing may be submitted as a single document or as separate documents comprising a package. The Annual Financial Information filing may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Financial Information filing and later than the date required above for the filing of the Annual Financial Information if they are not available by that date. If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). b) If the Issuer is unable to provide to the National Repository the Annual Financial Information by the date required in subsection (a), the Issuer shall send a notice to the Municipal Securities Rulemaking Board, if any, in substantially the form attached as Exhibit A. c) The Dissemination Agent shall: i. each year file Annual Financial Information with the National Repository; and ii. (if the Dissemination Agent is other than the Issuer), file a report with the Issuer certifying that the Annual Financial Information has been filed pursuant to this Disclosure Certificate, stating the date it was filed. Section 4. Content of Annual Financial Information. The Issuer's Annual Financial Information filing shall contain or incorporate by reference the following: a) The last available audited financial statements of the Issuer for the prior fiscal year, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under State law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with generally accepted accounting principles, noting the discrepancies therefrom and the effect thereof. If the Issuer's audited financial statements for the preceding years are not available by the time Annual Financial Information is required to be filed pursuant to Section 3(a), the Annual Financial Information filing shall contain unaudited financial statements of the type included in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Financial Information when they become available. b) A table, schedule or other information prepared as of the end of the preceding fiscal year, of the type contained in the final Official Statement under the captions: • Debt Limit. • Direct Debt. • General Obligation Debt. • Statement of Bonded Indebtedness. • Other Obligations. • Percentages for Taxable Valuation After Rollbacks. • Building Permits. • Property Valuations and Trend of Valuations-Actual (100%) Valuations for the City. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-3 • Property Valuations and Trend of Valuations-Taxable (“Rollback”) Valuations for the City. • Levies and Tax Collections. • Larger Taxpayers. • Tax Rates. • Statement of Net Position-Governmental Activities. • Statement of Activities-Governmental Activities. • Balance Sheet-General Fund. • Statement of Revenues, Expenditures and Changes in Fund Balance-General Fund. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been filed with the National Repository. The Issuer shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not later than 10 Business Days after the day of the occurrence of the event: i. Principal and interest payment delinquencies; ii. Non-payment related defaults, if material; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit enhancements relating to the Bonds reflecting financial difficulties; v. Substitution of credit or liquidity providers, or their failure to perform; vi. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax-exempt status of the Series Bonds, or material events affecting the tax-exempt status of the Bonds; vii. Modifications to rights of Holders of the Bonds, if material; viii. Bond calls (excluding sinking fund mandatory redemptions), if material, and tender offers; ix. Defeasances of the Bonds; x. Release, substitution, or sale of property securing repayment of the Bonds, if material; xi. Rating changes on the Bonds; xii. Bankruptcy, insolvency, receivership or similar event of the Issuer; xiii. The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; xiv. Appointment of a successor or additional trustee or the change of name of a trustee, if material; City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-4 xv. Incurrence of a Financial Obligation of the Issuer, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect security holders, if material; and xvi. Default, event of acceleration, termination event, modification of terms or other similar events under the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties. b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed Event, the Issuer shall determine if the occurrence is subject to notice only if material, and if so shall as soon as possible determine if such event would be material under applicable federal securities laws. c) If the Issuer determines that knowledge of the occurrence of a Listed Event is not subject to materiality, or determines such occurrence is subject to materiality and would be material under applicable federal securities laws, the Issuer shall promptly, but not later than 10 Business Days after the occurrence of the event, file a notice of such occurrence with the Municipal Securities Rulemaking Board through the filing with the National Repository. Section 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds of that Series or upon the Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of legislative action or final judicial action or administrative actions or proceedings, the failure of the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended. Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be the Issuer. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Resolution for amendments to the Resolution with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment in the next Annual Financial Information filing, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Financial Information filing for the year in which the change is made will present a comparison or other discussion in narrative form (and also, if feasible, in City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-5 quantitative form) describing or illustrating the material differences between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Financial Information filing or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Financial Information filing or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Financial Information filing or notice of occurrence of a Listed Event. Section 10. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any person for any default hereunder and are hereby waived to the extent permitted by law. A default under this Disclosure Certificate shall not be deemed an event of default under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 13. Rescission Rights. The Issuer hereby reserves the right to rescind this Disclosure Certificate without the consent of the Holders in the event the Rule is repealed by the S.E.C. or is ruled invalid by a federal court and the time to appeal from such decision has expired. In the event of a partial repeal or invalidation of the Rule, the Issuer hereby reserves the right to rescind those provisions of this Disclosure Certificate that were required by those parts of the Rule that are so repealed or invalidated. Date: __________ day of _______________, 2023. City of Iowa City, State of Iowa By: Mayor Attest: By: City Clerk City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 D-6 Exhibit A Notice To National Repository of Failure To File Annual Financial Information Name of Issuer: City of Iowa City, Iowa. Name of Bond Issue: $_______________ General Obligation Bonds, Series 2023 Dated Date of Issue: __________________, 2023 Notice Is Hereby Given that the Issuer has not provided Annual Financial Information with respect to the above- named Bonds as required by Section 3 of the Continuing Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer anticipates that the Annual Financial Information will be filed by ____________________. Dated: __________ day of _______________, 20___. City of Iowa City, State of Iowa By: Its: 02182240-1\10714-143 OFFICIAL BID FORM City of Iowa City May 2, 2023 410 E. Washington Street Speer Financial, Inc. Iowa City, IA 52240 Facsimile: (319) 291-8628 City Council: For the $9,655,000* General Obligation Bonds, Series 2023 (the “Bonds”), of the City of Iowa City, Johnson County, Iowa (the “City”), as described in the annexed Official Terms of Offering, which is expressly made a part of this bid, we will pay you $_________________ (no less than $9,577,760). The Bonds are to bear interest at the following respective rates (each a multiple of 1/8 or 1/100 of 1%) for the Bonds of each designated maturity. AMOUNTS* AND MATURITIES – JUNE 1 $1,360,000 ......... 2024 % $920,000 ............ 2027 % $925,000 ............ 2031 % 920,000 ......... 2025 % 920,000 ............ 2028 % 925,000 ............ 2032 % 920,000 ......... 2026 % 920,000 ............ 2029 % 925,000 ............ 2033 % 920,000 ............ 2030 % Any consecutive maturities may be aggregated into term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above. Maturities: ____________ Term Maturity _______ Maturities:___________ Term Maturity _______ Maturities: ____________ Term Maturity _______ Maturities:___________ Term Maturity _______ *Subject to principal adjustment in accordance with the Official Terms of Offering. In submitting this bid, we represent that (i) this bid constitutes a firm offer to purchase the Bonds, and (ii) we have an established industry reputation for underwriting new issuances of municipal bonds and notes. The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Ahlers & Cooney, P.C., Des Moines, Iowa. The City will pay for the legal opinion. The Purchaser agrees to pay the fee charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds. As evidence of our good faith, if we are the winning bidder, we will wire transfer the amount of TWO PERCENT OF PAR (the “Deposit”) WITHIN TWO HOURS after the bid opening time to the City’s good faith bank and under the terms provided in the Official Terms of Offering for the Bonds. Alternatively, we have wire transferred or enclosed herewith a check payable to the City in the amount of the Deposit under the terms provided in the Official Terms of Offering for the Bonds. Attached hereto is a list of members of our account on whose behalf this bid is made. Form of Deposit (Check One) Account Manager Information Bidders Option Insurance Prior to Bid Opening: Underwriter/Bank Certified/Cashier’s Check [ ] Wire Transfer [ ] Address Within TWO Hours of Bid Opening: Authorized Rep Wire Transfer [ ] City State/Zip Amount: $193,100 Direct Phone ( ) FAX Number ( ) E-Mail Address The foregoing bid was accepted and the Bonds sold by resolution of the City on May 2, 2023, and receipt is hereby acknowledged of the good faith Deposit which is being held in accordance with the terms of the annexed Official Terms of Offering. ATTEST: CITY OF IOWA CITY JOHNSON COUNTY, IOWA _____________________________________ _______________________________________ City Clerk Mayor ---------------NOT PART OF THE BID--------------- (Calculation of true interest cost) Gross Interest $ Less Premium/Plus Discount $ True Interest Cost $ True Interest Rate % TOTAL BOND YEARS 51,175.00 AVERAGE LIFE 5.300 Years We have purchased insurance from: Name of Insurer (Please fill in) __________________________ Premium: _________________ Maturities: (Check One) [__] _________________Years [__] All City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 OFFICIAL TERMS OF OFFERING $9,655,000* CITY OF IOWA CITY Johnson County, Iowa General Obligation Bonds, Series 2023 The City of Iowa City, Johnson County, Iowa, (the “City”), will receive electronic bids on the SpeerAuction (“SpeerAuction”) website address “www.SpeerAuction.com” for its $9,655,000* General Obligation Bonds, Series 2023 (the “Bonds”), on an all or none basis between 10:30 A.M. and 11:00 A.M., C.D.T, Tuesday, May 2, 2023. To bid electronically, bidders must have: (1) completed the registration form on the SpeerAuction website, and (2) requested and received admission to the City’s sale (as described below). The City will also receive sealed bids for the Bonds, on an all or none basis, at the office of the Finance Director, City Hall, 410 E. Washington, Iowa City, Iowa, before 11:00 A.M., C.D.T., Tuesday, May 2, 2023. The City will also receive facsimile bids at (319) 291-8628 or (319) 341-4008 for the Bonds, on an all or none basis, before 11:00 A.M., C.D.T., Tuesday, May 2, 2023. Upon receipt, facsimile bids will be sealed and treated as sealed bids, and along with all other sealed bids will be publicly opened and, together with any electronic bids, read. Award will be made or all bids rejected at a meeting of the City on that date. The City reserves the right to reject all bids, to reject any bid proposal not conforming to this Official Terms of Offering, and to waive any irregularity or informality with respect to any bid. Additionally, the City reserves the right to modify or amend this Official Terms of Offering; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of the SpeerAuction webpage and through Thomson Municipal News. The Bonds will constitute valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable, real property within the corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to the enforcement of creditors’ rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion. *ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER DETERMINATION OF BEST BID. The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to increase or reduction by the City or its designee after the determination of the Winning Bidder. The City may increase or decrease each maturity in increments of $5,000, but the total amount to be issued will not exceed $9,655,000. Interest rates specified by the Winning Bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City. The dollar amount of the purchase price proposed by the Winning Bidder will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as possible, the Winning Bidder’s net compensation, calculated as a percentage of bond principal. The Winning Bidder may not withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the Winning Bidder. Establishment of Issue Price (10% Test May Apply if Competitive Sale Requirements are Not Satisfied) (a) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the Public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A to this Official Terms of Offering, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Ahlers & Cooney, P.C. (“Bond Counsel”). All actions to be taken by the City under this Official Terms of Offering to establish the issue price of the Bonds may be taken on behalf of the City by the City’s municipal advisor and any notice or report to be provided to the City may be provided to Speer Financial, Inc., Chicago, Illinois (“Speer”). City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 (b) The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because: (i) the City shall disseminate this Official Terms of Offering to potential Underwriters in a manner that is reasonably designed to reach potential Underwriters; (ii) all bidders shall have an equal opportunity to bid; (iii) the City may receive bids from at least three Underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (iv) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the lowest true interest cost, as set forth in this Official Terms of Offering. Any bid submitted pursuant to this Official Terms of Offering shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. (c) In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The City will not require bidders to comply with the “hold-the-offering-price rule” and therefore does not intend to use the initial offering price to the Public as of the Sale Date of any maturity of the Bonds as the issue price of that maturity, though the winning bidder may elect to apply the “hold the offering price rule” (as described below). Bids will not be subject to cancellation in the event that the competitive sale requirements are not satisfied. Unless a bidder intends to apply the “hold-the-offering-price rule” as described below, bidders should prepare their bids on the assumption that all of the maturities of the Bonds will be subject to the 10% test (as described below) in order to establish the issue price of the Bonds. If the competitive sale requirements are not satisfied, the 10% test shall apply to determine the issue price of each maturity of the Bonds unless the winning bidder shall request that the “hold-the-offering-price rule” (as described below) shall apply. The winning bidder must notify Speer of its intention to apply the “hold-the-offering-price rule” at or prior to the time the Bonds are awarded. (i) If the winning bidder does not request that the “hold-the-offering-price rule” apply to determine the issue price of the Bonds, the following two paragraphs shall apply: The City shall treat the first price at which 10% of a maturity of the Bonds (the “10% test”) is sold to the Public as the issue price of that maturity, applied on a maturity-by-maturity basis. The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. Until the 10% test has been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds of that maturity have been sold to the Public. That reporting obligation shall continue, whether or not the closing date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the Public. In addition, if the 10% test has not been satisfied with respect to any maturity of the Bonds prior to closing, then the purchaser shall provide the City with a representation as to the price of prices, as of the date of closing, at which the purchaser reasonably expects to sell the remaining Bonds of such maturity. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 (ii) If the winning bidder does request that the “hold-the-offering-price rule” apply to determine the issue price of the Bonds, the following three paragraphs shall apply: The City may determine to treat (i) pursuant to the 10% test, the first price at which 10% of a maturity of the Bonds is sold to the Public as the issue price of that maturity and/or (ii) the initial offering price to the Public as of the Sale Date of any maturity of the Bonds as the issue price of that maturity (the “hold-the-offering- price rule”), in each case applied on a maturity-by-maturity basis. The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The City shall promptly advise the winning bidder, at or before the time of award of the Bonds, which maturities of the Bonds shall be subject to the 10% test or shall be subject to the hold-the- offering-price rule or both. Bids will not be subject to cancellation in the event that the City determines to apply the hold-the-offering-price rule to any maturity of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the Underwriters have offered or will offer the Bonds to the Public on or before the date of award at the offering price or prices (the “initial offering price”), and (ii) agree, on behalf of the Underwriters participating in the purchase of the Bonds, that the Underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is higher than the initial offering price to the Public during the period starting on the Sale Date and ending on the earlier of the following: (1) the close of the fifth business day after the Sale Date; or (2) the date on which the Underwriters have sold at least 10% of that maturity of the Bonds to the Public at a price that is no higher than the initial offering price to the Public. The City acknowledges that, in making the representation set forth above, the winning bidder will rely on (i) the agreement of each Underwriter to comply with the hold-the-offering-price rule, as set forth in an agreement among Underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the Public, the agreement of each dealer who is a member of the selling group to comply with the hold-the-offering- price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an Underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the Public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold-the-offering-price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each Underwriter shall be solely liable for its failure to comply with its agreement regarding the hold-the-offering-price rule and that no Underwriter shall be liable for the failure of any other Underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-the- offering-price applicable to the Bonds. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 (d) By submitting a bid, each bidder confirms that: (i) any agreement among Underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each Underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to (a) report the prices at which it sells to the Public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the Public and (b) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder and as set forth in the related pricing wires which shall be at least until the 10% test has been satisfied as to the Bonds of that maturity or until the close of the fifth business day following the date of the award, and (ii) any agreement among Underwriters relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each Underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the Public to require each broker-dealer that is a party to such retail distribution agreement to (a) report the prices at which it sells to the Public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such Underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the Public and (b) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder or such Underwriter and as set forth in the related pricing wires, which shall be at least until the 10% test has been satisfied as to the Bonds of that maturity or until the close of the fifth business day following the date of the award. (e) Sales of any Bonds to any person that is a Related Party to an Underwriter shall not constitute sales to the Public for purposes of this Official Terms of Offering. Further, for purposes of this Official Terms of Offering: (i) “Public” means any person other than an Underwriter or a Related Party, (ii) “Underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public including, specifically, the purchaser, and (b) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public), (iii) a purchaser of any of the Bonds is a “Related Party” to an Underwriter if the Underwriter and the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (iv) “Sale Date” means the date that the Bonds are awarded by the City to the winning bidder. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 Establishment of Issue Price (Hold-the-Offering Price Rule May Apply if Competitive Sale Requirements are Not Satisfied) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A to this Official Terms of Offering, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Official Terms of Offering to establish the issue price of the Bonds may be taken on behalf of the City by the City’s municipal advisor identified herein and any notice or report to be provided to the City may be provided to the City s municipal advisor. The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because: (1) the City shall disseminate this Official Terms of Offering to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest true interest cost), as set forth in this Official Terms of Offering. Any bid submitted pursuant to this Official Terms of Offering shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The City may determine to treat (i) the first price at which 10% of a maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity and/or (ii) the initial offering price to the public as of the sale date of any maturity of the Bonds as the issue price of that maturity (the “hold-the-offering-price rule”), in each case applied on a maturity-by- maturity basis (and if different interest rates apply within a maturity, to each separate CUSIP number within that maturity). The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The City shall promptly advise the winning bidder, at or before the time of award of the Bonds, which maturities (and if different interest rates apply within a maturity, which separate CUSIP number within that maturity) of the Bonds shall be subject to the 10% test or shall be subject to the hold-the-offering-price rule. Bids will not be subject to cancellation in the event that the City determines to apply the hold-the-offering-price rule to any maturity of the Bonds. Bidders should prepare their bids on the assumption that some or all of the maturities of the Bonds will be subject to the hold-the-offering-price rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: (1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The winning bidder shall promptly advise the City when the underwriters have sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds of that maturity have been sold to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold. The City acknowledges that, in making the representation set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the hold-the-offering-price rule, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the hold- the-offering-price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold-the-offering- price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the hold-the-offering-price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-the-offering-price rule as applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder and as set forth in the related pricing wires, and (ii) any agreement among underwriters relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder or such underwriter and as set forth in the related pricing wires. Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for purposes of this Official Terms of Offering. Further, for purposes of this Official Terms of Offering: (1) “public” means any person other than an underwriter or a related party; (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public); (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (4) “sale date” means the date that the Bonds are awarded by the City to the winning bidder. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 Bond Details The Bonds will be in fully registered form in the denominations of $5,000 and integral multiples thereof in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments on the Bonds will be paid. Individual purchases will be in book-entry form only. Interest on each Bond shall be paid by check or draft of the Bond Registrar to the person in whose name such Bond is registered at the close of business on the fifteenth day of the month next preceding an interest payment date on such bond. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office maintained for the purpose by the Bond Registrar in St. Paul, Minnesota. Semiannual interest is due June 1 and December 1 of each year, commencing December 1, 2022 and is payable by U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the “Bond Registrar”). The Bonds are dated the date of delivery (expected to be on or about June 1, 2023). AMOUNTS* AND MATURITIES – JUNE 1 $1,360,000 ..................... 2024 $920,000 ........................2027 $925,000 ....................... 2031 920,000 ..................... 2025 920,000 ........................2028 925,000 ....................... 2032 920,000 ..................... 2026 920,000 ........................2029 925,000 ....................... 2033 920,000 ........................2030 Any consecutive maturities may be aggregated into term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above. The Bonds due June 1, 2024 - 2030, inclusive, are non-callable. The Bonds due June 1, 2031 - 2033, inclusive, are callable in whole or in part and on any date on or after June 1, 2030, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in any order of maturity as determined by the City and within any maturity by lot. Method of Bidding Electronically Notwithstanding the fact that the City permits receiving bids electronically using SpeerAuction, all bidders must have a signed, but uncompleted, Official Bid Form delivered to Speer Financial, Inc., Suite 608, 531 Commercial Street, Waterloo, Iowa, (319) 291-8628 facsimile, prior to the close of bidding to which a printout of the electronic bid will be attached and delivered to the City. If bidding electronically, all-or-none bids must be submitted via the internet address www.SpeerAuction.com. The use of SpeerAuction shall be at the bidder’s risk and expense and the City shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-arriving bids. To bid via the SpeerAuction webpage, bidders must first visit the SpeerAuction webpage where, if they have not previously registered with either SpeerAuction, Grant Street Group (the “Auction Administrator”) or any other website administered by the Auction Administrator, they may register and then request admission to bid on the Bonds. Bidders will be notified prior to the scheduled bidding time of their eligibility to bid. Only registered broker-dealers and dealer banks with DTC clearing arrangements will be eligible to bid electronically. The “Rules” of the SpeerAuction bidding process may be viewed on the SpeerAuction webpage and are incorporated herein by reference. Bidders must comply with the Rules of SpeerAuction in addition to the requirements of the City’s Official Terms of Offering. In the event the Rules of SpeerAuction and this Official Terms of Offering conflict, this Official Terms of Offering shall be controlling. All electronic bids must be submitted on the SpeerAuction webpage. Electronic bidders may change and submit bids as many times as they choose during the sale period but may not delete a submitted bid. The last bid submitted by an electronic bidder before the deadline for receipt of bids will be compared to all other final bids to determine the winning bidder. During the bidding, no bidder will see any other bidder’s bid nor the status of their bid relative to other bids (e.g., whether their bid is a leading bid). The electronic bidder bears all risk of transmission failure. Any questions regarding bidding on the SpeerAuction website should be directed to Grant Street Group at (412) 391-5555 x 370. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 Each bidder shall be solely responsible for making necessary arrangements to access SpeerAuction for purposes of submitting its internet bid in a timely manner and in compliance with the requirements of the Terms of Offering. The City is permitting bidders to use the services of the SpeerAuction solely as a communication mechanism to conduct the internet bidding and the SpeerAuction is not an agent of the City. Provisions of the Terms of Offering and Official Bid Form shall control in the event of conflict with information provided by the Internet Bid System. Electronic Facsimile Bidding: Bids may be submitted via facsimile at (319) 291-8628 or (319) 341-4008. Electronic facsimile bids will be sealed and treated as sealed bids. Neither the City nor its agents will assume liability for the inability of the bidder to reach the above named fax numbers prior to the time of sale specified above. Transmissions received after the deadline will be rejected. Bidders electing to submit bids via facsimile transmission bear full and complete responsibility for the transmission of such bid. Neither the City nor its agents will assume responsibility for the inability of the bidder to reach the above specified fax number prior to the time of sale. Time of receipt shall be the time recorded by the person receiving the facsimile and shall be conclusive. Bidding Parameters and Award of the Bonds All interest rates must be in multiples of one-eighth or one one-hundredth of one percent (1/8 or 1/100 of 1%), and not more than one rate for a single maturity shall be specified. The differential between the highest rate bid and the lowest rate bid shall not exceed three percent (3%). All bids must be for all of the Bonds and must be for not less than $9,577,760. Award of the Bonds: The Bonds will be awarded on the basis of true interest cost, determined in the following manner. True interest cost shall be computed by determining the annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the Bonds from the payment dates thereof to the dated date and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be deemed to become due in the principal amounts and at the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage or if all such bids are not submitted electronically, the winning bid shall be determined by lot. The Bonds will be awarded to the bidder complying with the terms of this Official Terms of Offering whose bid produces the lowest true interest cost rate to the City as determined by the City’s Registered Municipal Advisor, which determination shall be conclusive and binding on all bidders; provided, that the City reserves the right to reject all bids or any non-conforming bid and reserves the right to waive any informality in any bid. Electronic bidders should verify the accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page immediately after the bidding. The premium or discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are changed, maintaining, as close as possible, the same dollar amount of profit per $1,000 bond as bid. The true interest cost of each electronic bid will be computed by SpeerAuction and reported on the Observation Page of the SpeerAuction webpage immediately following the date and time for receipt of bids. These true interest costs are subject to verification by the City’s Municipal Advisor, will be posted for information purposes only and will not signify an actual award of any bid or an official declaration of the winning bid. The City or its Municipal Advisor will notify the bidder to whom the Bonds will be awarded, if and when such award is made. The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to MSRB Rules G-8, G-11 and G-36. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the winning bidder who is a member of the Securities Industry and Financial Markets Association (“SIFMA”) will be required to pay SIFMA’s standard charge per Bond. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 Good Faith Deposit and Other Matters The winning bidder is required to a wire transfer from a solvent bank or trust company to the City’s good faith bank the amount of TWO PERCENT OF PAR (the “Deposit”) WITHIN TWO HOURS after the bid opening time as evidence of the good faith of the bidder. Alternatively, a bidder may submit its Deposit upon or prior to the submission of its bid in the form of a certified or cashier’s check on, or a wire transfer from, a solvent bank or trust company for TWO PERCENT OF PAR payable to the Treasurer of the City. The City reserves the right to award the Bonds to a winning bidder whose wire transfer is initiated but not received within such two hour time period provided that such winning bidder’s federal wire reference number has been received. In the event the Deposit is not received as provided above, the City may award the Bonds to the bidder submitting the next best bid provided such bidder agrees to such award. If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions: Amalgamated Bank of Chicago Corporate Trust 30 North LaSalle Street 38th Floor Chicago, IL 60602 ABA # 071003405 Credit To: 3281 Speer Bidding Escrow RE: City of Iowa City, Johnson County, Iowa bid for $9,655,000* General Obligation Bonds, Series 2023 If the wire shall arrive in such account prior to the date and time of the sale of the Bonds. Contemporaneously with such wire transfer, the prospective purchaser shall send an email to biddingescrow@aboc.com with the following information: (1) indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if such prospective purchaser is not awarded the Bonds. The City and any prospective purchaser who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. (“Speer”) shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted, Speer shall, at its expense, promptly return the Deposit amount to the unsuccessful prospective purchaser; (ii) if the bid is accepted, the Deposit shall be forwarded to the City, (iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the prospective purchaser; (iv) Speer shall not be an insurer of the Deposit amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v) income earned on the Deposit, if any, shall be retained by Speer. The City covenants and agrees to enter into a written agreement, certificate or contract, constituting an undertaking (the “Undertaking”) to provide ongoing disclosure about the City for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter. The Underwriter’s obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking on or before the date of delivery of the Bonds. The Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be prepared and executed, which is expected to be on or about June 1, 2023. Should delivery be delayed beyond sixty (60) days from the date of sale for any reason beyond the control of the City except failure of performance by the purchaser, the City may cancel the award or the purchaser may withdraw the good faith deposit and thereafter the purchaser’s interest in and liability for the Bonds will cease. City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting syndicate, the City agrees that, no more than seven (7) business days after the date of such award, it shall provide, without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded, up to 50 copies of the Final Official Statement to permit each “Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the City it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. By submission of its bid, the senior managing underwriter of the successful purchaser agrees to supply all necessary pricing information and any Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional copies of the Final Official Statement may be obtained by Participating Underwriters from the printer at cost. The City will, at its expense, deliver the Bonds to the purchaser in New York, New York (or arrange for “FAST” delivery) through the facilities of DTC and will pay for the bond attorney’s opinion. At the time of closing, the City will also furnish to the purchaser the following documents, each dated as of the date of delivery of the Bonds: (1) the legal opinion of Ahlers & Cooney, P.C., Des Moines, Iowa, that the Bonds are lawful and enforceable obligations of the City in accordance with their terms; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the extent set forth in the Official Statement for the Bonds; and (3) a no litigation certificate by the City. The City intends to designate the Bonds as “qualified tax-exempt obligations” pursuant to the small issuer exception provided by Section 265(b) (3) of the Internal Revenue Code of 1986, as amended. Purchaser consents to the receipt of electronic transcripts and acknowledges the City’s intended use of electronically executed documents. Iowa Code Chapter 554D establishes electronic signatures have the full weight and legal authority as manual signatures. The City has authorized the printing and distribution of an Official Statement containing pertinent information relative to the City and the Bonds. Copies of such Official Statement or additional information may be obtained from Nicole Davies, Finance Director, City of Iowa City, 410 E. Washington Street, Iowa City, Iowa, 52240 or an electronic copy of this Official Statement is available from the www.speerfinancial.com website under “Official Statement Sales/Competitive Calendar” or from the Registered Municipal Advisor to the City, Speer Financial, Inc., 531 Commercial Street, Suite 608, Waterloo, Iowa 50701 (telephone (319) 291-2077), and 230 West Monroe Street, Suite 2630, Chicago, Illinois 60606 (telephone (312) 346-3700). /s/ NICOLE DAVIES Finance Director CITY OF IOWA CITY Johnson County, Iowa City of Iowa City, Johnson County, Iowa $9,655,000* General Obligation Bonds, Series 2023 EXHIBIT A EXAMPLE ISSUE PRICE CERTIFICATE USE FOR COMPETITIVE SALES – 3 BIDS RECEIVED EXHIBIT A $___________ General Obligation Bonds, Series 2023 of Iowa City, Iowa Issue Price Certificate The undersigned, on behalf of [NAME OF UNDERWRITER] (“Purchaser”), hereby certifies as set forth below with respect to the sale of the above-captioned obligations (the “Bonds”). 1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by Purchaser are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the Bonds used by Purchaser in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by Purchaser to purchase the Bonds. (b) Purchaser was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by Purchaser constituted a firm offer to purchase the Bonds. 2. Defined Terms. (a) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is May 2, 2023. (d) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Purchaser’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C. in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [UNDERWRITER] By:______________________________________ Name:___________________________________ Dated: [ISSUE DATE] SCHEDULE A EXPECTED OFFERING PRICES (Attached) SCHEDULE B COPY OF UNDERWRITER’S BID (Attached) USE FOR GENERAL RULE 10%- PUBLIC SALE EXHIBIT A $___________ General Obligation Bonds, Series 2023 of Iowa City, Iowa ISSUE PRICE CERTIFICATE The undersigned, on behalf of [NAME OF UNDERWRITER] (“Purchaser”), on behalf of itself, hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”). 1. Sale of the Bonds. As of the date of this certificate, for each Maturity of the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A. 2. Defined Terms. (a) Issuer means the Iowa City, Iowa, a municipal corporation in the State of Iowa. (b) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Purchaser’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., as Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [Signature Page Follows] [UNDERWRITER] By:_____________________________________ Name:___________________________________ Dated: [ISSUE DATE] SCHEDULE A SALE PRICES (Attached) [USE IF SOME MATURITIES SUBJECT TO HOLD THE PRICE, OTHERS 10% RULE] EXHIBIT A $___________ General Obligation Bonds, Series 2023 of Iowa City, Iowa ISSUE PRICE CERTIFICATE The undersigned, on behalf of [NAME OF UNDERWRITER] (“Purchaser”), on behalf of itself, hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”). 1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A. 2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) Purchaser offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. (b) As set forth in the Notice of Sale and bid award, Purchaser has agreed in writing that, (i) for each Maturity of the Hold-the-Offering-Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 3. Defined Terms. (a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.” (b) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (May 9, 2023), or (ii) the date on which Purchaser has sold at least 10% of such Hold-the-Offering- Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold-the- Offering-Price Maturity. (d) Issuer means the Iowa City, Iowa, a municipal corporation in the State of Iowa. (e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. (f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is May 2, 2023. (h) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Purchaser’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [UNDERWRITER] By:____________________________________ Name:__________________________________ Dated: [ISSUE DATE] SCHEDULE A SALE PRICES OF THE GENERAL RULE MATURITIES AND INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES (Attached) SCHEDULE B PRICING WIRE OR EQUIVALENT COMMUNICATION 02182249-1\10714-143 1 April 18, 2023 The City Council of the City of Iowa City, State of Iowa, met in _______________ session, in Council Chambers, at Emma Harvat Hall, 410 E. Washington St., Iowa City, Iowa, at __________ _____.M., on the above date. There were present Mayor _______________, in the chair, and the following named Council Members: __________________________________________________ Absent:___________________________________________ Vacant:___________________________________________ * * * * * * * 1D. c� Items to Include on Agenda For April 18, 2023 City of Iowa City, Iowa $9,655,000* (Dollar Amount Subject to Change) General Obligation Bonds, Series 2023 Resolution directing the advertisement for sale and approving electronic bidding procedures and Distribution of Preliminary Official Statement. Notice Must Be Given Pursuant to Iowa Code Chapter 21 and the Local Rules of the City. April 18, 2023 The City Council of the City of Iowa City, State of Iowa, met in regular session, in Council Chambers, at Emma Harvat Hall, 410 E. Washington St., Iowa City, Iowa, at 6 p .M., on the above date. There were present Mayor TPag ,P , in the chair, and the following named Council Members: Alter. Bergus. Dunn.. Harmsen, Taylor. Teague Thomas Absent: None Vacant: None * * * * * * * 2 Council Member Dunn introduced the following Resolution entitled "Resolution Directing the Advertisement for Sale of$9,655,000* (Dollar Amount Subject to Change) General Obligation Bonds, Series 2023, and Approving Electronic Bidding Procedures and Distribution of Preliminary Official Statement" and moved its adoption. Council Member e i r P r. seconded the Resolution to adopt. The roll was called and the vote was, AYES: Alter Bergus Dunn Harmsen Taylor Teague Thomas NAYS: None Resolution 23-127 Whereupon, the Mayor declared the resolution duly adopted as follows: Resolution Directing the Advertisement for Sale of$9,655,000* (Dollar Amount Subject to Change) General Obligation Bonds, Series 2023, and Approving Electronic Bidding Procedures and Distribution of Preliminary Official Statement Whereas, the Issuer is in need of funds to pay costs of the opening, widening, extending, grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public grounds; the construction, reconstruction, and repairing of any street and streetscape improvements, including landscaping and the replacement or planting of trees in public areas, related utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate for such purposes; equipping the fire department; the acquisition, construction, reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts, underpasses, grade crossing separations, and approaches thereto; and the rehabilitation and improvement of parks already owned, including facilities, equipment and improvements commonly found in city parks, essential corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $7,610,000 be authorized for said purpose(s); and Whereas, pursuant to notice published as required by Section 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and Whereas, the City is in need of funds to pay costs of the acquisition, reconstruction, redevelopment and equipping of the Terrell Mill Skate Park, general corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $700,000 be authorized for said purpose(s); and Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and 3 Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and Whereas, the City is in need of funds to pay costs of the acquisition, reconstruction, improvement and equipping of the Mercer Park Ball Diamond, general corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $700,000 be authorized for said purpose(s); and Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and Whereas, the City is in need of funds to pay costs of the acquisition, installation, improving and equipping of city facilities and buildings, including the animal shelter, fire stations, and Riverside Festival Stage, general corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed$700;000 be authorized for said purpose(s); and Whereas, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and Whereas, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and determined that the various general obligation bonds authorized as hereinabove described shall be combined for the purpose of issuance in a single issue of$9,655,000* (Dollar Amount Subject to Change) General Obligation Bonds as hereinafter set forth; and Whereas, in conjunction with its Municipal Advisor, Speer Financial, and Disclosure Counsel, the City has caused a Preliminary Official Statement to be prepared outlining the details of the proposed sale of the Bonds; and Whereas, the Council has received information from its Municipal Advisor evaluating and recommending the procedure hereinafter described for electronic, facsimile and internet bidding to maintain the integrity and security of the competitive bidding process and to facilitate the delivery of bids by interested parties; and 4 Whereas, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet communication. Now, Therefore, Be It Resolved By The City Council Of The City Of Iowa City, State Of Iowa: Section 1. That the receipt of electronic bids by facsimile machine and through the SpeerAuction Competitive Bidding System described in the Notice of Sale and Official Statement are hereby found and determined to provide reasonable security and to maintain the integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering at public sale. Section 2. That General Obligation Bonds, Series 2023, of City of Iowa City, State of Iowa, in the amount of$9,655,000* (Dollar Amount Subject to Change), to be issued as referred to in the preamble of this Resolution, to be dated June 1, 2023, be offered for sale pursuant to the published advertisement. Section 3. That the preliminary Official Statement in the form presented to this meeting be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to such revisions, corrections or modifications as the Mayor and City Clerk, upon the advice of bond counsel, disclosure counsel, and the City's Municipal Advisor, shall determine to be,appropriate, and is authorized to be distributed in connection with the offering of the Bonds for sale. Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the Iowa City Press-Citizen, a legal newspaper,printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the 2nd day of May, 2023, at 6:00 P .M., will hold a meeting to receive and act upon bids for said Bonds, which bids were previously received and opened by City Officials at 11:00 A.M. on said date. The notice shall be in substantially the following form: 5 (To be published on April 21, 2023) Notice of Bond Sale Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Iowa City, State of Iowa, hereafter described, must be received at the office of the Finance Director, City Hall, 410 E. Washington, Iowa City, Iowa 52440 (the "Issuer") before 11:00 A.M., on the 2nd day of May, 2023. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the Terms of Offering. The Bonds: The Bonds to be offered are the following: General Obligation Bonds, Series 2023, in the amount of $9,655,000*, to be dated June 1, 2023 (the "Bonds"). Bids to be received before 11:00 A.M., C.D.T. *Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: • Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440. • Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440. The bids must be submitted through the SpeerAuction competitive bidding system. • Electronic Facsimile Bidding: Electronic facsimile bids will be received by the City's Municipal Advisor, Speer Financial, Waterloo, Iowa(facsimile number: (319) 291-8628 or(319) 341-4008). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held in the Council Chambers, at Emma Harvat Hall, 410 E. Washington St., Iowa City, Iowa at a meeting of the City Council on the above date at .M. Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, City Hall, 410 E. Washington, Iowa City, Iowa 6 52440 or the Issuer's Municipal Advisor, Speer Financial, 531 Commercial Street, Waterloo, Iowa, 50703, Telephone: 319-291-2077. Terms of Offering: All bids shall be in conformity with and the sale shall be in accordance with the Terms of Offering as set forth in the Official Statement. Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds. Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Iowa City, State of Iowa. City Clerk, City of Iowa City, State of Iowa (End of Notice) 7 Passed and Approved this 18`h day of April, 2023. M or Attest: a 4)), GLe itb,Ze-6 City Clerk 8 • Certificate State of Iowa ) ) SS County of Johnson ) I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the Council hereto affixed this 18th day of April , 2023. ) ^) City lerk, City of ow City, State of Iowa (Seal) Certificate State of Iowa ) ) SS County of Johnson ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Iowa City, in the County of Johnson, State of Iowa, and that as such Clerk and by full authority from the Council of the City, I have caused a Notice of Bond Sale ($9,655,000* (Dollar Amount Subject to Change) General Obligation Bonds, , Series 2023) of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Iowa City Press-Citizen, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that the Notice was published in all of the issues thereof published and circulated on the following date: )1'—i I 2 , 2023. WITNESS my official signature this L{"+ - day of , 2023. City Clerk, City of Iowa 'ty, State of Iow (Seal) 02185143-1\10714-143 5;,z 10. PRESS-CITIZEN MI EDIA PART OF THE USA TODAY NETWORK CITY CLERK CITY OF IOWA CITY ICPD 410 E WASHINGTON ST This is not an invoice IOWA CITY IA 522401825 #of Affidavits: 1 AFH 1I AVIT 8 F PU tlICATION • State of Wisconsin County of Brown,ss.: The undersigned, being first duly sworn on oath, states that the Iowa City Press Citizen, a corporation duly • organized and existing under the laws of the State of Iowa,with its principal place of business in Iowa City, Iowa, the publisher of Iowa City Press Citizen newspaper of general circulation printed and published in the City of Iowa City,Johnson County, Iowa, and that an advertisement, a printed copy of which is attached as Exhibit"A" and made part of this affidavit, was printed and published in the Iowa City Press Citizen on the issues dated: Ad No. Start Date: Editions Dated: Cost: 0005666865 4/21/23 04/21/2023 $86.01 Copy of Advertisement Exhibit"A" Subscnbedid sworn to before me by said affiant this 26th day of April, 2023 /*a 4, ail"it, Notary Public 9- � Commission expires KATHLEEN ALLEN Notary Public State of Wisconsin Notice of Bond Sale Time and Place of Sealed Bids; Bids for"The sale iif-tfonas 6T-the City of Iowa City. State of Iowa, hereafter described, must be received at the office of the Finance Director, City Hall,410 E. Washington, Iowa City. Iowa 52440 (the "Issuer'') before 11:00 A.M., on the 2nd day of May: 2023. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the Terms of Offering. The Bonds: The Bonds to be offered are the following: General Obligation Bonds, Series 2023, in the amount of S9,655,000', to be dated June 1 2023 (tile Bonds"). Bids l0 be received before 11:00 A.M.,C.D.T. "Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding:Onen bids will not-Ee received. Bids will be received in any of the following methods: • Sealed Bidding: Sealed bids may__be sbbMifted and Will be received at the office of the EFinance Director at City Hall, 410 . Washington, Iowa City, Iowa 52440. • Electronic Internet Bidding: Elecfr`onlc Fria—brd-s— it-be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440. The bids must be submitted through the SaeerAuction competitive bidding system. •Electronic Facsimile Bidding: E e T oniic facstmfe-bfds Wttf be received by the City's Municipal Advisor, Speer Financial, Waterloo, Iowa (facsimile number: (3191 291.8628 or (319) 341-4008). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for recdipfof bids hos passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internal bids will be accessed and announced. Sale and Award; The sale and award'of the Bands will be held in the Council Chambers, at Emma Harvat Hall, 410 E. Washington St., Iowa City, Iowa at a meeting of the City Council on the above dote at 7:00 P.M. Official- Statement: The Issuer hasissued an Officfol Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and on Official Bid Form, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, City Hall, 410 E. Washington, Iowa City, Iowa 52440 or the Issuer's Municipal Advisor Speer Financial, 531 Commercial Street, Waterloo, Iowa, 50703, Telephone:319.291-2077. Terms of 0ffering: All bids shall be in conformity'with and the sole shall be in occordance with the Terms of Offering as set forth in the Official Statement. Legal Opinion: The Bonds will be sold subieci to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion os to the legality of the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds. g iehts Reserved: The right is reserved-ro reiect_any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Iowa City.State of Iowa. ofs\Kollie FreehliStateng, City Clerk, City Iowa City, of Iowa Prepared By:Denise Brotherton, Police Captain Reviewed By:Geoff Fruin, City Manager Sue Dulek, Ass't. City Attorney Fiscal Impact:The anticipated expense of $69,939.26 will be expenses to the Police Department operational budget. Staff Recommendation:Approval Commission Recommendations:N/A Attachments:Resolution Contract Attachment to Contract-Traffic Study Proposal.pdf Item Number: 10.e. April 18, 2023 Resolution approving a contract with the University of Iowa to analyze racial disparities in traffic stops. Executive Summary: Since the adoption of Resolution No. 01-41, the Iowa City Police Department has sought to collect data on traffic stops, refine employee training programs, update policies and operational standards, and conduct outreach programs aimed to eliminate racial profiling, heighten awareness of implicit bias, and build trust and respect between law enforcement and all communities and persons in Iowa City. The City Manager and Police Chief have negotiated a contract with the University of Iowa to conduct a comprehensive analysis of racial disparity in police traffic stops, which they recommend Council approve. Background / Analysis: Since 2006, as part of the Iowa City Police Department’s ongoing efforts to ensure fair and equitable policing, the Department has collected demographic data on traffic stops. From 2006-2020, the data was analyzed by Dr. Christopher Barnum, Associate Professor of Sociology and Criminology at St. Ambrose University. The Department continues to seek the most effective research backed methods to analyze demographic data on traffic stops with a goal of identifying any racial disparities, ensuring that racial profiling is not occurring within the Iowa City Police Department, and committing to the standard that all community members are treated equally and fairly. The University of Iowa Public Policy Center has proposed a research informed traffic study that implements several strategies that will bolster the current understanding of racial disparities in Iowa City traffic stops. The goal of the study is to present a holistic, comprehensive evaluation intended to complement past analyses of Iowa City traffic stop disparities. This traffic study will support the Department’s continued commitment to eliminating racial profiling, heightening awareness of implicit bias, and building trust and respect between law enforcement and all communities and persons in Iowa City. Working with the University of Iowa Public Policy Center additionally supports the ICPD’s desire to work with community partners and invest in local collaborations. Prepared by: Denise Brotherton, Captain-Police Dept., 410 E.Washington St., Iowa City, IA 52240; 319-356-5276 Resolution No. 23-128 Resolution approving a contract with the University of Iowa to analyze racial disparities in traffic stops. Whereas, the mission statement of the Iowa City Police Department is "To work in partnership with the community, enhance trust, protect with courage and compassion, and empower victims of crime through excellence in service"; and Whereas, effective law enforcement practice is dependent on the ability of police officers to establish mutual trust and respect of all persons in the community; and Whereas, law enforcement decisions, including traffic and pedestrian stops, made on the basis of one's race or other protected characteristics violate fundamental civil rights under the Iowa City Code, the Iowa Code, and the Iowa and U.S. Constitutions, as well as the mission statement; and Whereas, City of Iowa City Resolution No. 01-41 adopted the "City of Iowa City Law Enforcement Non-Discrimination Policy" which states that "The Iowa City Police Department will continually conduct an examination of traffic enforcement strategies, and if appropriate, refine mission and value statements, training programs, field supervision, and the evaluation and documentation of citizen complaints and related responses to citizens, to ensure that racially profiled traffic and pedestrian stops are not being employed by individuals within the Police Department and that citizens are treated equally and fairly pursuant to the Iowa and United States Constitutions."; and Whereas, Resolution No. 17-183 reaffirmed City Council's commitment to the 2001 Law Enforcement Non-Discrimination Policy and "urged the City Manager and Police Chief to continually seek ways to ensure that such discriminatory action do not take place in our community...."; and Whereas, since the adoption of Resolution No. 01-41, the Iowa City Police Department has sought to collect data on traffic stops, refine employee training programs, update policies and operational standards, and conduct outreach programs aimed to eliminate racial profiling, heighten awareness of implicit bias, and build trust and respect between law enforcement and all communities and persons in Iowa City; and Whereas, the City Manager and Police Chief have negotiated the attached contract with the University of Iowa to conduct an analysis of racial disparity in police traffic stops; and Whereas, the attached contract should be approved. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The attached contract is approved. 2. The City Manager authorized to sign the attached contract and amendments thereto. 3. The word "citizen" in Resolution No. 01-41 is clarified to mean all members of the public regardless of citizenship status and all persons regardless of citizenship status are to be treated equally and fairly. Resolution No. 23-128 Page 2 Passed and approved this 18th day of April , 2023. I �_ Ma Approved by / ((— Attest: l' Lc) �t CII Attorney' Cit Clerk CityAttorne ' Office — 04/11/2023 • Resolution No. 23-128 Page 3 It was moved by Dunn and seconded by Taylor The Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent X Alter X Bergus X Dunn X Harmsen X Taylor X Teague X Thomas DocuSign Envelope ID:A1A6F8CF-CBD1-4F63-A367-D4B87F62B2CD CONTRACT THIS AGREEMENT effective April 1, 2023, is by and between The City of Iowa City (hereafter referred to as "City") and The University of Iowa, a State of Iowa Institution of higher learning, on behalf of itself and its employee, Ethan Rogers, c/o Division of Sponsored Programs, 2 Gilmore Hall, Iowa City, Iowa USA(hereinafter referred to as "University"). Each City and University may be referred to as"Party"or collectively as "Parties." WITNESSETH: WHEREAS, the research program contemplated by this Agreement is of mutual interest and benefit to University and to City, will further the instructional and research objectives of University in a manner consistent with its status as a non-profit, tax-exempt, educational institution, and may derive benefits for both City and University through improvements, and/or discoveries; NOW,THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree to the following: ARTICLE 1 -Definitions As used herein, the following terms shall have the following meanings: 1.1 "Project" shall mean the description of the project as described in The University of Iowa's Public Policy Center's Iowa City Police Traffic Study Proposal, attached hereto, under the direction of Dr. Ethan Rogers as Principal Investigator. 1.2 "Contract Period" is April 1, 2023, through March 31, 2024. 1.3 "University Intellectual Property" shall mean individually and collectively all inventions, improvements and/or discoveries which are conceived and/or made(i) by one or more employees of University, or(ii)jointly by one or more employees of University and by one or more employees of City, in performance of the Project. ARTICLE 2-Research Work 2.1 University shall commence performance of the Project promptly after the effective date of this Agreement, and shall use all reasonable efforts, care, and diligence to perform such Project in accordance with the terms and conditions of this Agreement. Anything in this Agreement to the contrary notwithstanding, City and University may at any time amend the Project by mutual written agreement signed by the authorized representatives of each Party. -1- DocuSign Envelope ID:AlA6F8CF-CBD1-4F63-A367-D4B87F62B2CD 2.2 In the event that the Principal Investigator, Ethan Rogers, becomes unable or unwilling to continue the Project, and a mutually acceptable substitute is not available,University and/or City shall have the option to terminate said Project pursuant to Article 10.1. 2.3 The University does not comply with Good Laboratory Practices (GLPs) as defined by the U.S. Food and Drug Administration in 21 C.F.R. 58. ARTICLE 3-Reports and Conferences 3.1 A preliminary report will be submitted to the Iowa City Chief of Police by January 31, 2024. A final report will be submitted to the Iowa City Chief of Police by February 29, 2024. By March 31, 2024, University will present findings to the Iowa City Chief of Police and those he/she designates to be present for said presentation. 3.2 During the term of this Agreement, representatives of University will meet with representatives of City at times and places mutually agreed upon to discuss the progress and results, as well as ongoing plans, or changes therein, of the Project to be performed hereunder. ARTICLE 4 - Costs,Billings, and Other Support 4.1 It is agreed to and understood by the parties hereto that, subject to Article 2, total invoices to City hereunder shall not exceed the sum of Sixty-seven thousand, nine hundred and thirty-nine Dollars and 26 cents ($67,939.26). Payment shall be made by City according to the following schedule: $16,201.96 on June 30, 2023 $47,202.68 within ten(10) days of receipt of the preliminary report $4,534.62 within ten(10) days of receipt of the final report 4.2 Invoices shall be submitted to the City representative listed in Article 18 for submission of invoices. Payments to University shall include City's name, Principal Investigator name, project title, and contract number(if any) and shall be submitted to the University representative listed in Article 18 for payment remittance. 4.3 University shall retain title to any equipment purchased with funds provided by City under this Agreement. 4.4 Anything herein to the contrary notwithstanding, in the event of early termination of this Agreement by City pursuant to Article 10.1 hereof, City shall pay all costs accrued by University as of the date of termination, including non-cancelable obligations, if any, incurred prior to the effective date of termination. -2- DocuSign Envelope ID:AlA6F8CF-CBD1-4F63-A367-D4B87F62B2CD ARTICLE 5 - Publicity 5.1 City shall not use the name of University,nor of any member of University's Project staff, in any publicity, advertising, or news release or in any way imply endorsement of the University without the prior written approval of an authorized representative of University. University shall not use the name of City, nor any employee of City, in any publicity without the prior written approval of City. University may disclose, without City's approval, the terms of this Agreement that are a matter of public record under the Iowa Open Records Law, Iowa Code Chapter 22. ARTICLE 6- Publications 6.1 City recognizes that under University policy, the results of University research may be publishable and agrees that researchers engaged in the Project shall be permitted to present research results at symposia, national or regional professional meetings, and to publish in journals, theses or dissertations, or otherwise of their own choosing, methods and results of the Project, provided, however, that City shall have been furnished copies of any proposed publication or presentation at least one (1) month in advance of the submission of such proposed publication or presentation to a journal, editor, or other third party. City shall have thirty(30) days, after receipt of said copies, to object to such proposed presentation or proposed publication because there is confidential information of City that needs protection. In the event that City makes such objection, said researcher(s) shall refrain from making such publication or presentation for a maximum of sixty(60) days from date of receipt of such objection in order for University and City to determine if said information should continue to be protected under law, regulation or due to court order. City does not possess a right to delay publication if the publication or presentation contains only findings and conclusions of basic science or research results. ARTICLE 7- Confidential Information 7.1 It is the responsibility of City to mark or otherwise identify in writing prior to submission any information considered confidential that it deems necessary to share with University("Confidential Information"). Oral disclosures of Confidential Information shall be identified as confidential at the time of disclosure and confirmed in writing within ten(10)business days of the disclosure. University shall have the right to accept or reject City's confidential Information. If such information is accepted it will be withheld by University from publication, and in all other respects shall be maintained by University as confidential to City for a period of five (5) years after termination of this Agreement unless City obtains a subsequent order stating that the information shall remain confidential pursuant to law, court order or regulation. University -3- DocuSign Envelope ID:AlA6F8CF-CBD1-4F63-A367-D4B87F62B2CD shall have no such obligation with respect to any portion of such Confidential Information which: a) is or later becomes generally available to the public by use, publication or the like, through no fault of University; b) is obtained on a non-confidential basis from a third party who disclosed the same to University; c) University already possesses, as evidenced by its written records, predating receipt thereof from City; d) is required to be disclosed by law, regulation or court order; or e) is independently developed by University without reference to City's records or information. ARTICLE 8-Intellectual Property 8.1 All rights, title and interest to University Intellectual Property under the Project, except as provided in Article 8.2, shall belong to University and shall be subject to the terms and conditions of this Agreement. 8.2 Rights to inventions, improvements, and/or discoveries, whether patentable or copyrightable or not,relating to the Project made solely by employees of City shall belong to City. Such inventions, improvements, and/or discoveries shall not be subject to the terms and conditions of this Agreement. 8.3 Rights to inventions, improvements, and/or discoveries conceived and/or made during the Contract Period, whether patentable or copyrightable or not, relating to the Project, which are made jointly by employees of University and employees of City, shall be the joint property of University and City and shall be subject to the terms and conditions of this Agreement. ARTICLE 9- Grant of Rights 9.1 University grants City the first option to elect a non-exclusive,non-transferable license to University Intellectual Property developed under this Agreement, and a right to sub-license any and all University Intellectual Property developed under this Agreement on terms and conditions to be mutually agreed upon. If City elects to exercise this option, City shall notify University in writing of its decision within one (1) year from the date of termination of this Agreement. 9.2 No grant described in this Article shall be construed to limit University's right to utilize University Intellectual Property for research, instruction or academic publication purposes. -4- DocuSign Envelope ID:AlA6F8CF-CBD1-4F63-A367-D4B87F62B2CD ARTICLE 10-Term and Termination 10.1 This Agreement shall become effective upon the date first hereinabove written and shall continue in effect for the full duration of the Contract Period unless sooner terminated in accordance with the provisions of this Article. The parties hereto may, however, extend the term of this Agreement for additional periods as desired under mutually agreeable terms and conditions which the parties reduce to writing and sign. Either party may terminate this Agreement upon sixty(60) days prior written notice to the other. 10.2 In the event that either party hereto shall commit any material breach or default in any of the terms or conditions of this Agreement, and also shall fail to remedy such default or breach within thirty(30) days after receipt of written notice thereof from the other party hereto, the party giving notice may, at its option and in addition to any other remedies which it may have at law or in equity, terminate this Agreement by sending notice of termination in writing to the other party to such effect, and such termination shall be effective as of the date of the receipt of such notice. 10.3 Termination of this Agreement by either party for any reason shall not affect the rights and obligations of the parties accrued prior to the effective date of termination of this Agreement. ARTICLE 11 - Independent Contractor 11.1 In the performance of all services hereunder University shall be deemed to be and shall be an independent contractor and, as such, University shall not be entitled to any benefits applicable to employees of City, and City employees shall not be entitled to any benefits applicable to employees of University. 11.2 Neither party is authorized or empowered to act as agent for the other for any purpose and shall not on behalf of the other enter into any contract, warranty, or representation as to any matter. Neither shall be bound to the acts or conduct of the other. ARTICLE 12—Insurance 12.1 Each party shall be liable for any and all claims for wrongful death, personal injury or property damage attributable to the negligent acts or omissions of that party and the officers, employees, and agents thereof 12.2 Both parties shall be responsible and agrees to pay for any and all claims for wrongful death,personal injury or property damage directly resulting from the negligence of said party, its officers, employees and agents, and arising from activities under this Agreement to the full extent permitted by Chapter 669 or Chapter 670, Code of Iowa, as applicable to said party, which are the exclusive -5- DocuSign Envelope ID:AlA6F8CF-CBD1-4F63-A367-D4B87F62B2CD remedies for processing tort claims against the State of Iowa and the City of Iowa City, respectively. ARTICLE 13 - Governing Law 13.1 This Agreement shall be governed and construed in accordance with the substantive laws of the State of Iowa, excluding its conflict of laws provisions. ARTICLE 14-Assignment 14.1 This Agreement shall not be assigned by either party without the prior written consent of the parties hereto. ARTICLE 15-Agreement Modification 15.1 Any agreement to change the terms of this Agreement in any way shall be valid only if the change is made in writing and approved by mutual agreement of authorized representatives of the parties hereto. ARTICLE 16-Warranties 16.1 NO WARRANTIES, EITHER EXPRESSED OR IMPLIED,ARE MADE PART OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. ARTICLE 18- Notices 18.1 Notices, invoices, and communications, hereunder shall be given by registered or certified mail, or express delivery service, postage or delivery charge prepaid, and addressed to the party to receive such notice, invoice, or communication at the address given below, or such other address as may hereafter be designated by notice in writing. Notice shall be deemed made on the date of receipt. If to City: Name: Dustin Liston Phone: 319/356-5271 Fax: 319/356-5449 E-mail:DListon@iowa-city.org -6- DocuSign Envelope ID:Al A6F8CF-CBD1-4F63-A367-D4B87F62B2CD For Submission of Invoices: Name: Jenn Dahm Phone: 319/356-5270 Fax: 319/356-5449 E-mail: JDahm@iowa-city.org If to University: The University of Iowa Division of Sponsored Programs Attention: Theresa Seeberger 2 Gilmore Hall Iowa City, Iowa 52242 Phone: 319-335-2123 E-mail: Theresa-seeberger@uiowa.edu; dsp-contracts@uiowa.edu For Payment Remittance: The University of Iowa Grant Accounting Office 2410 UCC 201 S. Clinton Street Iowa City, Iowa 52242-4034 Phone: 319-335-3801 Email: gao-payment-remit@uiowa.edu IN WITNESS WHEREOF, the parties, duly authorized,have executed this Agreement in duplicate as of the day and year first written above. City of Iowa City THE UNIVERSITY OF IOWA p DocuSigned by: (Pt,ln,11 tt at,Y' `—G380E8^58D384AA By: Na e: Geoff Fruin By: Wendy Beaver Title: City Manager Title: Executive Director of Sponsored Programs Date: y//9/?) Date: 3/23/2023 -7- IOWA Public Policy Center City lp ■ ■ Study Proposal In the current proposal, we recommend implementing several strategies that may bolster the current understanding of racial disparities in Iowa City traffic stops. The proposal outlines three steps that we believe are essential: (1) conduct a data audit of Iowa City's traffic stop data, (2) provide a detailed descriptive report of traffic stops in Iowa City, (3) analyze racial disparities during multiple decision points of a traffic stop using multiple analytical strategies. Public Policy Center TABLE OF CONTENTS Data Audit 3 Traffic Stop Description 4 Racial Disparity Analyses 5 Strategy 1. External Benchmark Tests 6 Strategy 2. Veil-of-Darkness Tests 8 Strategy 3. Predicted Disposition Analyses 8 Strategy 4. Hit-Rate Analyses 9 Summary 10 Timeline and Deliverables 10 References 11 The University of Iowa prohibits discrimination in employment,educational programs,and activities on the basis of race,creed,color,religion,national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 2 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa.202 Jessup Hall,Iowa City,IA 52242-1316,319-335-0705,914'u)Qluiowe.rtdu. IO' Public Policy Center IOWA CITY POLICE TRAFFIC STUDY PROPOSAL Traffic stop data collection and analysis is an important policing policy tool. Racial disparities in traffic stops across the country have been well-documented and are going through a period of renewed discussion. The costs of racial disparities in traffic stops—and in the criminal justice system more broadly—are high. Persistent disparities indicate a disproportionate exposure to the potential harms of criminal justice contact. Further, disparities have prompted local accusations of racial discrimination by police, further damaging levels of trust among communities of color. Many state and local governments have responded by initiating the robust collection of traffic stop data and evaluations of possible racial and ethnic bias.Indeed,traffic stop analyses have been or are being conducted in many nearby cities in Iowa, including Coralville, North Liberty, Cedar Rapids, Davenport, and Iowa City. The continued statistical evaluation of traffic stop data in Iowa City is important for a transparent dialogue between law enforcement and the public. The goal of the current project proposal is to present a holistic, comprehensive evaluation intended to complement past analyses of Iowa City traffic stop disparities. Our approach will be guided by five principles that are important to the research process:a 1. Emphasize that statistical evaluation is limited to finding racial and ethnic disparities that may indicate racial and ethnic discrimination but cannot be considered comprehensive evidence. 2. Acknowledge that statistical evaluation is only as strong as the data that are analyzed. 3. Recognize that understanding racial and ethnic disparities in traffic stops requires a description of traffic patterns,policing strategies,and traffic stops. 4. Apply a holistic approach for assessing racial and ethnic disparities by examining multiple decision points and by using a variety of statistical approaches that are based on existing literature. 5. Summarize the assumptions and limitations of statistical evaluations for assessing racial and ethnic disparities so that readers can use their judgment in drawing conclusions. Following these principles, below, our proposal summarizes how we would approach an assessment of Iowa City traffic stop disparities. Data Audit Statistical evaluation is only as strong as the data analyzed (principle #2). Stakeholders often assume that researchers are analyzing perfect or near-perfect data regarding traffic stops, driver characteristics, and officer decision-making. The majority of traffic stop studies, however, provide insufficient detail regarding data quality. In 100 traffic stop studies, researchers reported evaluating whether the data were accurate and complete in just 19 studies.2 The few studies that have evaluated data quality offer substantial evidence of unrecorded and error-ridden traffic stop records. While the threshold for high quality data is typically a five percent error rate,3 the percentage of stop records with either missing or incorrect data often exceeds 10 to 20 percent.4.5 In a recent audit of San Diego traffic stop data,Chanin and Welsh'-reported that 19%of the 259,569 traffic stops in 2014 and 2015 were missing at a Our guiding principles were adapted from the work conducted by the Connecticut Racial Profiling Prohibition Project.' The University of Iowa prohibits discrimination.n employment,educational programs.and activities on the basis of race,creed,color,reigion.national origin,age.sex,pregnancy.disability, genetic information.status as a U.S.veteran.service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 3 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall.Iowa City,IA 52242-1316,319-335-0705,9kctd .gau. Public Policy Center least one required data point,and estimated that officers conducted more than 60,000 stops without submitting stop records. Therefore,as a first step of our proposal,we will conduct a thorough audit of the completeness and accuracy of the ICPD's traffic stop data. Evidence of incomplete, missing, or erroneous records will highlight a need to reassess current data collection requirements and examine strategies for improving data quality. Patrol Officer Involvement A lack of involvement of patrol officers in traffic stop assessments can lead to frustration among officers with the research process and can have adverse consequences for officer morale, as well as the quality of traffic stop data.2 Moreover,patrol officers have expertise in traffic stop enforcement that can guide research questions and bolster the quality of traffic stop assessments. This project will therefore incorporate the involvement and perspectives of patrol officers in the Iowa City Police Department. Project team members will communicate regularly with patrol officers, including command staff, throughout the project. This will include intermittently attending watch meetings. Additionally,with the support of Chief Liston and command staff, we will schedule a meeting with patrol officers to discuss the project at the beginning of the contract period. The project team will discuss with patrol officers each component of the study and elicit officer feedback and perspectives. Specifically, patrol officers will have an opportunity to discuss the traffic stop data collection process(e.g.,quality,challenges, recommendations),the commonly misunderstood components of traffic enforcement(e.g.,how time is spent,why stops occur),and the perceptions of racial disparity analyses,including the limitations of specific methods. Traffic Stop Description One of the most considerable barriers to the interpretation of local traffic stop studies is a lack of understanding of traffic enforcement, particularly by researchers, local stakeholders and the broader community (principle #3). Describing the patterns in traffic stops in Iowa City can help stakeholders and local community members better understand when, where, why, and how stops occur. Description can also assist researchers when conducting analyses of disparate policing. We will therefore provide a descriptive summary of traffic stops in Iowa City that includes the following information: 1. Temporal characteristics:volume of traffic stops by year,month,day of week,and time of day 2. Geographic characteristics:volume of traffic stops by contact zone and other geographic features 3. Driver characteristics:volume of traffic stops by driver age,gender, race and ethnicity, and residency 4. Stop characteristics: volume of traffic stops by reason for contact, stop outcome, search characteristics (e.g., type of search, property seized), and arrest characteristics (e.g., discretionary vs. non-discretionary arrest) We will also provide descriptive comparisons that offer additional detail regarding how the above information intersects. For instance,we will examine how driver characteristics vary by contact zone. In this section,we will use data visualization techniques to ensure a comprehensive understanding of traffic enforcement in Iowa City. The University of Iowa prohibits discrimination n employment,educational programs,and activities on the basis of race.creed,color,religion.national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 4 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Halt,lows City,IA 52242-1316,319-335-0705,glinAgk1. Public Policy Center Thematic Highlights Throughout our report,we will give special consideration to two themes that have been identified as areas of particular interest of the Iowa City Police Department.These thematic highlights will be featured in both the traffic stop description and the racial disparity analyses. Thematic Highlight#1: The COVID-19 Pandemic This report will give special consideration to the COVID-19 pandemic considering the pandemic's dramatic impact on social behavior,including driving patterns and traffic stop enforcement. In the traffic stop description section,we will provide a detailed overview of traffic stops during the COVID-19 pandemic compared to other time periods.This will go beyond examining the number of traffic stops and will instead focus on how the characteristics of traffic stops changed. In our analyses of racial disparity in traffic stops,we will also incorporate supplemental analyses that consider how our findings are impacted by the COVID-19 pandemic. Thematic Highlight#2: Governor's Traffic Safety Bureau This report will give special consideration to traffic stops made as part of the Governor's Traffic Safety Bureau (GTSB).The GTSB provides grant-funded overtime for traffic enforcement and these efforts are typically focused on areas receiving frequent traffic-related complaints and collisions.The descriptive component of our report will review how the characteristics of GTSB traffic stops differ from non-GTSB traffic stops. In our racial disparity analyses,we will also examine whether racial disparity is more or less pronounced among GTSB traffic stops compared to non-GTSB traffic stops. Racial Disparity Analyses We propose applying multiple statistical tests to identify racial disparities in traffic stops (principle #4). We use multiple statistical tests for two reasons.b First,the nature of traffic stops necessitate the use of multiple tests. From the beginning of a traffic stop to its end,there are multiple opportunities for racially disparate treatment to emerge. The race and ethnicity of a driver could be a factor in the decision to stop, cite, search, or arrest. We propose investigating each of the various decision points found in a single stop for racial disparity.Second the application of multiple tests addresses the possibility that any single analysis could produce false positives (i.e.,a conclusion that there is racial disparity when there is not disparity) and false negatives (i.e., a conclusion that there is not racial disparity when there is disparity). Our proposed tests are estimates. The accuracy of the estimates from each test rely on various assumptions and are influenced by some degree of error. Further,there is considerable disagreement across both stakeholders and researchers regarding the most appropriate method for assessing racial disparities. Using a single analytical method could therefore further divide or fracture relationships between law enforcement and other stakeholders. A lack of trust in the research process can have consequences for future research efforts. For instance, a recent study revealed that officer distrust in traffic stop analyses contributed to substantial inaccuracies and underrerporting in traffic stop data collection.' b Our approach is influenced by the work conducted by the Connecticut Racial Profiling Prohibition Projects and the Oregon STOP Program.6 The University of Iowa prohibits discrimination in employment,educational programs,and activities on the basis of race,creed,color,religion.national origin,age.sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 5 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa.202 Jessup Hall,Iowa City,IA 52242-t316,319-335-0705.glt•-.f Ytlt,ldli. Public Policy Center By conducting multiple tests across multiple decision points, we are proposing a comprehensive strategy that can serve as a warning system. Colloquially referred to as the "preponderance of evidence" approach,' evidence of disparities across a number of decision points and methodological strategies would warrant further conversation into the potential reasons for disparity. We conduct four unique analytical strategies to assess racial disparities during traffic stops. These approaches provide methods for identifying possible racial bias or discrimination in traffic stops,but they cannot provide sufficient evidence that racial profiling exists(principle#1). Strategy 1 . External Benchmark Tests A first step towards understanding racial patterns in traffic stops is to examine racial disparities in the frequency of traffic stops.This approach requires two pieces of information:1)the racial composition of drivers stopped by police, and 2) the racial composition of drivers at risk for being stopped by police (i.e., a risk set or "benchmark"). If Black drivers experience a greater rate of contact with the police relative to the benchmark, this is taken as evidence of disparity. Examples of the benchmark test are numerous and most studies using a benchmark test report evidence of overrepresentation of Black drivers in traffic stops.7-10 There are, however, significant challenges when implementing benchmark tests. There is rigorous debate about the best benchmarks or risk sets to use in benchmark tests." In other words, it is unclear what data should be used to estimate the racial composition of drivers at risk for being stopped by police. In the current proposed project, we recommend the use of multiple benchmarks.Through this process of triangulation,we can offer a range of disparity estimates that can serve as a useful estimation tool when combined with our other analyses. Benchmarks we intend to use: • Census population estimates: The most commonly used benchmark is the residential population based on census estimates. Due to their ease of access and low cost of application,census population estimates offer a convenient method for assessing disparities. Census estimates can also be disaggregated into smaller units in a city (e.g., census block groups). Most importantly, census estimates provide a transparent, standardized, replicable approach that allows for external scrutiny and trend analyses. Census population estimates, however, face several limitations that must be considered.10 Census population estimates are based on the local residential population,which may not reflect the demographic composition of the driving population — i.e., the population at risk of being stopped.12 The driving population may be unrelated to the residential population due to (1) commuting patterns — i.e., the driving population includes non-residents driving within the city, and (2) ownership and use patterns — i.e., the driving population does not include residents who do not own or drive a vehicle. It is unclear, however,the extent to which census population benchmarks would bias analyses of racial disparity. For instance,it is unknown the extent to which the racial composition of the non-residential driving population would differ from the residential driving population. Some traffic study experts argue that census comparisons bias analyses against finding racial disparities because White residents tend to have greater access to vehicles and drive more frequently than Black residents.13 Census estimates suggest that 95.0% of White Iowans own one or more vehicles compared to 84.3%of Black Iowans. Other studies suggest,however,that census comparisons may bias analyses toward finding racial disparities,particularly in predominantly White communities that experience a large amount of non-residential traffic.9 • Adjusted census population estimates: Given the well-documented limitations of census population benchmarks, we will also use adjusted census population estimates as benchmarks. We will make adjustments to account for the fact that not all residents are part of the driving population. The simplest adjustment is to use only the residential population that is at driving ages (e.g., 16 or older). We will also weight the census population estimates by vehicle ownership. Combined,this strategy will adjust the census The University of Iowa prohibits discrimination in employment.educational programs,and activities on the basis of race,creed,color.religion national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 6 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information an nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa.202 Jessup Hall,Iowa City.IA 52242-1316,319-335-0705,q(iI1 V pWL J. IO'I1IA Public Policy Center population to approximate the residential population that is of driving age and owns a vehicle. Further,we will use spatial weighting techniques that estimate the racial composition for the driving population using data on residents as well as nearby nonresidents.9'14 In the case of Iowa City(8.6%Black),an estimate of the racial composition of the driving population will take into account data on the racial composition of nearby areas,including Coralville(15.7%Black)and North Liberty(5.1%Black).Similarly,when estimating the racial composition of the driving population within specific areas of Iowa City,estimates would take into account the variation across areas of Iowa City.As an alternative adjusted census population benchmark comparison, we will limit our analyses to only stops involving residents of the community and compare those stops to community demographics. • Vehicle collision data:As one final benchmark,we will use vehicle collision records.12 Much like census data, the benefits of vehicle collision data are that it is often readily available, inexpensive, and reliable. Additionally,unlike census data,vehicle collision data may better account for the population that is actually on the road and capture the racial composition of drivers specifically in areas that are also likely to receive more police supervision. Yet, some researchers have criticized traffic crash-based benchmarks as still unrepresentative of the driving population at risk for being stopped because they do not represent drivers who violate traffic laws.15 Thus, some researchers propose examining separately the racial composition of both not-at-fault drivers and at-fault drivers.t0 While not-at-fault drivers may represent the driving population, at-fault drivers may better approximate a riskier set of drivers.We will employ this strategy to the extent the data allow. Note,however,that this method relies on an assumption of"unbiased assignment of fault by the police when they investigate crashes..15(032)16 Benchmarks we will not use: • Field observation: Field observation benchmarks require the systematic observation of drivers at randomly selected locations and times within a city.Traditionally,observers attempt to classify the race and ethnicity of drivers,along with other demographic characteristics. The purported advantages of the field observation method is that it better estimates the actual driving population, which may be especially useful for highly transient contexts. There are, however, several practical and methodological disadvantages to field observation benchmarks. The cost,time,and expertise required to reliably and consistently estimate a field observation benchmark is substantial.10,12 Because of these barriers, researchers often must select only a limited number of non-random locations and times to observe the driving population. Often times, researchers will select high volume intersections and times in order to ensure the collection of an adequate sample size.Thus,field observation benchmarks are unlikely to be generalizable to the driving population of the jurisdiction as a whole. These barriers also make field observation benchmarks difficult to implement consistently over time. Researchers must often rely on observations from previous years when examining change in racial disparities in traffic stops which requires a strong assumption that driver characteristics do not change year-to-year. Finally, field observation benchmarks are limited by the potential unreliability of observer classifications.1012 Research suggests there may be considerable difficulties in identifying race and ethnicity of drivers from street observations. For instance, one observational study reported high levels of difficulty and observer disagreement when distinguishing between white, Asian, and Hispanic drivers.17 Observations are made even more difficult by darkness,speed of motor vehicle,volume of motor vehicles, and motor vehicle conditions(e.g.,tinted windows). In a traffic study of Davenport, IA,researchers reported greater inconsistency in observations during nighttime hours than daytime hours.18 • Crime-based benchmarks: Some researchers and analysts have promoted the use of crime-based benchmarks, perhaps due to the belief that doing so accounts for racial differences in rates of criminal behavior and thereby creates a more suitable comparison.19 Examples have included the use of criminal arrest data and descriptions of criminal suspects from citizen reports. Crime-based benchmarks, however, rely on an assumption that police only stop "criminals" and do not stop "innocent" individuals.19 The consequence of such an assumption is that analyses are "biased toward understating the degree of The University of Iowa prohibits discrimination in employment,educational programs,and activities on the basis of race,creed,color,religion,national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity.associational preferences,or any other classification that deprives the person 7 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall,Iowa City,IA 52242-1316,319-335-07135,abbigealgalLadm. Public Policy Center discrimination against the higher-crime group."1g(01).2°This bias is further exacerbated when relying on arrest data if there are racial biases in arrest patterns. Stratification Analyses Racial disparity in traffic stops is not necessary nor sufficient for determining whether discrimination is present. Disparity is descriptive — it is cause neutral. In fact, researchers tend to agree that benchmark tests are inadequate tests for discrimination.19 One test,however,that may offer better understanding of the mechanisms for disparity is a stratification analysis. Specifically, after examining city-wide disparities in traffic stops, we will conduct analyses to examine disparities in specific census block groups. There is the possibility that a city-wide disparity could disappear when disaggregated, referred to as Simpson's Paradox.19(p9�) In this scenario, the results would suggest that disparities do not necessarily reflect individual officer behaviors or decision making, but rather may reflect patterns of place-based policing. We will conduct analyses to explore this possibility. Strategy 2. Veil-of-Darkness Tests Our second analytical tool will be the veil-of-darkness method.5 Sometimes referred to as an "internal benchmark test,"the veil-of-darkness method relies on the assumption that it is harder for police to perceive the race of drivers at night when it is dark than during the day when it is light. Based on this assumption,if police are profiling motorists, then disparities should be greater in daylight than in darkness. The veil-of-darkness method examines a restricted sample of stops occurring during the periods around sunrise and sunset. After restricting the sample of stops to these fixed windows of time and controlling for time of day,day of week,and seasonal variation,remaining disparities may indicate potential disparate treatment. This analytical method is considered one of the more rigorous approaches to assess disparities in the frequency of traffic stops79 and has been regularly applied in peer-reviewed research.21-23 Like other approaches, however, there are important limitations. First, some research suggests that the assumption that the visibility of driver race is reduced at nighttime may be overstated. Ambient lighting (e.g., street lights) in some areas, for instance, may counter any obscurity created by nighttime.24 Second, research suggests that Black drivers, but not White drivers,may change their driving behavior during daylight.15,25 This finding challenges an important assumption of the veil-of-darkness method that driving behavior does not vary between daytime and nighttime, and may bias findings toward a conclusion of no disparity. When completing the veil-of- darkness method, we will take these limitations into consideration and conduct sensitivity analyses to explore the robustness of our findings. Strategy 3. Predicted Disposition Analyses Another step towards understanding racial patterns in traffic stops is to examine racial disparities in the outcomes of traffic stops (e.g., citations, searches, arrests). Outcome analyses overcome many of the previous obstacles because the benchmark is already determined. The population of stopped drivers serves as the benchmark. In this way,the racial proportions of stop outcomes can be compared to the racial proportions of stops. Analyses of other agencies consistently reveal racial and ethnic disparities in traffic stop outcomes, including written warnings, citations,frisks, seizures, and arrest.26-29 To explore whether there are racial disparities in stop outcomes (e.g.,citations,searches,or arrests),we will use the Predicted Disposition Analysis which uses matching or propensity score techniques. This test matches stop data between two groups(e.g.,Black and non-Black drivers)based on all available characteristics.The only characteristics The University of Iowa prohibits discrimination in employment,educational programs,and activities on the basis of race creed,color,religion,national origin,age,sex,pregnancy.disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences.or any other class cation that deprives the person 8 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies.contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall,Iowa City,IA 52242-1316,319-335-0705,q}ocyayl letik4dtl. Public Policy Center that are allowed to vary between the two groups are the driver race/ethnicity and the stop outcomes. We will match the stop data on driver gender,driver age,driver residency, stop time of the day,stop day of the week,season of the year, whether the stop was made in the daylight, and the reason for the stop. This means that our analysis will compare the stop outcomes for Black and non-Black drivers who have identical characteristics on the measures listed. After matching and further controlling for these factors with regression analyses, if Black drivers are cited, searched,or arrested more often than similarly situated white individuals,then there is evidence of a disparity.Again, these disparate findings would offer evidence that discrimination may exist, but would not provide evidence that discrimination does exist (principle #1). An important consideration during this project, particularly in this analytical strategy, is the role of discretion during officer decision What are examples of non-discretionary making. Implicit in our analyses of stop outcomes is the assumption arrests during traffic stops in Iowa City? that officers are exercising discretion or judgement regarding The Iowa City Police Department lists the appropriate actions during a traffic stop.8 Nearly all officer decisions following options for non-discretionary involve a degree of discretion.30 For example,even if a departmental arrests in traffic stop reports: policy mandates an arrest under specific conditions, officers make1. DUS— Drive while license under the decision whether to follow that mandate. Additionally, officers suspension/cancelled have the discretion to take earlier actions that may lead to the 2. DWB — Drive while barred identification of the conditions necessary for arrest. However, on 3. DUR — Driving while license revoked average, some officer actions are more discretionary than others. 4. OWI — Operating while intoxicated For instance, consent searches or searches for officer safety are 5. Warrant more discretionary than searches that are conducted incident to 6. VNCO—Violation of no contact order 7arrest, inventory searches of seized vehicles, or searches when an Prior Information 3,32 8. Other officer observes contraband in plain view. Similarly,some arrests are more discretionary than others, such as non-discretionary arrests for operating while intoxicated. Because non- discretionary searches and arrests are more difficult to determine whether the actions are due to bias or a matter of procedure, we will conduct analyses that exclude non-discretionary stop outcomes. Focusing only on discretionary stop outcomes is a common practice in published research on traffic stop outcomes."-33 Strategy 4. Hit-Rate Analyses A considerable challenge is disentangling the reasons for disparity(principle#1). One method for testing for bias in stop outcomes is the"outcome test"or hit-rate test.34 A common example is a test that compares racial groups in the rate at which contraband is discovered (a hit) if a search is made.3536 According to this method, if hit rates are lower for one racial group (e.g.,Black drivers),then this suggests that the threshold for searching that racial group is lower. A lower threshold for searching would indicate possible discrimination. We will conduct hit-rate tests as possible.A limitation of hit-rate tests,however,is the infra-marginality problem.19 Hit-rates are not just a function of a search threshold, but they are also a function of a signal distribution. In other words,officers may have different thresholds to search a car,but drivers also might differ in their own signals that suggest a search is warranted (e.g., furtive movements, smell of marijuana). Often times,the implication of the infra-marginality problem is that hit-rate tests underestimate discrimination against Black drivers.37 When summarizing our hit-rate analyses,we will note this limitation and discuss its implications for our results. The University of Iowa prohibits discrimination-n employment.educational programs.and activities on the basis of race,creed,color.religion.national origin,age,sex,pregnancy,disability. genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 9 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall,Iowa City,IA 52242-1316,319-335-0705. Public Policy Center , . , .,.. . Summary In summary, the current proposal recommends an analysis of Iowa City's traffic stop data that incorporates three components: (1) data audit, (2) traffic stop description, and (3) racial disparity analyses. Our analyses of racial disparity will incorporate a multi-method approach that explores racial disparities in traffic stops at multiple decision points using multiple strategies based on verified empirical work. In our report, we will detail the assumptions and limitations of each method so that readers will have enough information to understand the findings and draw their own conclusions. Traffic stop assessments are an ongoing project. Not only will each year bring changes to traffic stop frequency and practices, but our report will also reveal opportunities for data,analytical,and procedural improvement. As such,we will include in our final report specific recommendations for the strengthening of data integrity and for additional analytical approaches. We will also provide a recommendation on how often traffic stop assessments should be conducted in order to efficiently inform policing efforts in Iowa City. Timeline and Deliverables We will follow the below timeline to complete the project(see Table 1).After receiving the data on April 1st,2023,we will begin a data audit and prepare the data for description and analyses. In the first three months of the project,we will focus on the data audit and the description of the traffic stop data. We will also meet with patrol officers during this time. In the second and third quarters of the project, we will turn to the racial disparity analyses. In the final quarter of the project, we will focus on report development and dissemination to stakeholders and the public. In January of 2024,we will provide a preliminary report to Chief Liston for review.After review,we will incorporate edits and submit a final report to Chief Liston in February of 2024. In March of 2024, we will present the findings of the report to patrol officers, local stakeholders and the public community as requested. Table 1. Timeline for Project Tasks Apr-Jun July-Sept Oct-Dec Jan-Mar Data access X Data audit X Data cleaning X Traffic stop description X X Racial disparity analyses X X External benchmark tests X Veil-of-darkness tests X Predicted disposition analyses X Hit rate analyses X Report development X X X X Dissemination X The University of Iowa prohibits discrimination in employment,educational programs,and activities on the basis of race,creed,color,religion,national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military.,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 1 0 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall.Iowa City,IA 52242-1316,319-335-0705,sditulavicin fit. Public Policy Center References 1. Ross MB, Kalinowski JJ, Barone K. Testing for disparities in traffic stops: Best practices from the Connecticut model. Criminology&Public Policy. 2020;19(4):1289-1303. doi:10.1111/1745-9133.12528 2. Chanin J, Welsh M. Examining the Validity of Traffic Stop Data: A Mixed-Methods Analysis of Police Officer Compliance. Police Quarterly. 2021;24(1):3-30. doi:10.1177/1098611120933644 3. Wallace D, Moule, Jr. R, Chamberlain A, Katz C, Webb V. Preliminary Yearly Report for the Maricopa County Sheriff's Office, Years 2014-2015.Arizona State University Center for Violence Prevention and Community Safety; 2016. 4. Riley KJ,Turner S, MacDonald J,et al. Police-Community Relations in Cincinnati. RAND Corporation;2005. 5. Grogger J, Ridgeway G. Testing for Racial Profiling in Traffic Stops From Behind a Veil of Darkness. Journal of the American Statistical Association. 2006;101(475):878-887. doi:10.1198/016214506000000168 6. Sanchagrin K. Statistical Transparency of Policing Report. Oregon Criminal Justice Commission;2022. 7. Alpert GP, Dunham RG, Smith MR. Investigating Racial Profiling by the Miami-Dade Police Department: A Multimethod Approach. Criminology&Public Policy. 2007;6(1):25-55. doi:10.1111/j.1745-9133.2007.00420.x 8. Pierson E,Simoiu C,Overgoor J,et al.A large-scale analysis of racial disparities in police stops across the United States. Nature Human Behaviour. 2020;4(7):736-745. doi:10.1038/s41562-020-0858-1 9. Rojek J, Rosenfeld R, Decker S. The Influence Of Driver's Race on Traffic Stops in Missouri. Police Quarterly. 2004;7(1):1 26-147. doi:10.1177/1098611103260695 10. Withrow BL, Williams H. Proposing a Benchmark Based on Vehicle Collision Data in Racial Profiling Research. Criminal Justice Review. 2015;40(4):449-469. doi:10.1177/0734016815591819 11. Smith MR,Rojek JJ,Petrocelli M,Withrow B. Measuring Disparities in Police Activities:A State of the Art Review. Policing:Int'l J Police Strat&Mgmt. 2017;40(2):166-183. 12. Alpert GP,Smith MR,Dunham RG.Toward a Better Benchmark:Assessing the Utility of Not-at-Fault Traffic Crash Data in Racial Profiling Research.Justice Research and Policy. 2004;6(1):43-69. doi:10.3818/JRP.6.1.2004.43 13. Baumgartner FR. Benchmarking Traffic Stop Data: Examining Patterns in North Carolina and the City of Raleigh.; 2022. 14. Novak KJ. Disparity and Racial Profiling in Traffic Enforcement. Police Quarterly. 2004;7(1):65-96. doi:10.1 1 77/1 09861 1 1 02250359 15. Smith MR,Tillyer R, Lloyd C, Petrocelli M. Benchmarking Disparities in Police Stops: A Comparative Application of 2nd and 3rd Generation Techniques. Justice Quarterly. 2021;38(3):513-536. doi:10.1080/07418825.2019.1660395 16. West J. Racial Bias in Police Investigations. Published online October 2018. The University of Iowa prohibits discrimination in employment.educational programs,and activities on the basis of race,creed,color,religion,national origin,age,sex.pregnancy,disability, genetic information.status as a U.S.veteran,service in the U.S.military.sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 1 1 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall,Iowa City,IA 52242.1316,319-335-0705,Qi t-Ades tamsdu. Public Policy Center 17. McCabe JE, Kaminski RJ, Boehme HM. Racial profiling and CT motor vehicle stops: an observational study in three towns. Police Practice and Research. 2021;22(6):1567-1584. doi:10.1 080/1 561 4263.2020.1749620 18. Barnum C,Miller J, Miller G. An Evaluation of an Observational Benchmark Used in Assessing Disproportionality in Police Traffic Stops: A Research Note. Policing: A Journal of Policy and Practice. 2015;9(4):405-417. doi:10.1093/police/pav002 19. Neil R,Winship C. Methodological Challenges and Opportunities in Testing for Racial Discrimination in Policing. Annual Review of Criminology. 2019;2(1):73-98. doi:10.1146/annurev-criminol-01 1 51 8-024731 20. Starr SB. Explaining Race Gaps in Policing: Normative and Empirical Challenges. Published online 2015. Accessed December 20,2022. http://www.ssrn.com/abstract=2550032 21. Worden RE, McLean SJ, Wheeler AP. Testing for Racial Profiling With the Veil-of-Darkness Method. Police Quarterly. 2012;15(1):92-111. doi:10.1177/1098611111433027 22. Stacey M,Bonner HS.Veil of Darkness and Investigating Disproportionate Impact in Policing:When Researchers Disagree. Po/ice Quarterly. 2021;24(1):55-73. doi:10.1177/1098611120932905 23. Taniguchi TA, Hendrix JA, Levin-Rector A, Aagaard BP, Strom KJ, Zimmer SA. Extending the Veil of Darkness Approach: An Examination of Racial Disproportionality in Traffic Stops in Durham, NC. Police Quarterly. 2017;20(4):420-448. doi:10.1177/1098611117721665 24. Horrace WC, Rohlin SM. How Dark Is Dark? Bright Lights,Big City,Racial Profiling. The Review of Economics and Statistics. 2016;98(2):226-232. doll 0.1162/REST_a_00543 25. Kalinowski J, Ross SL, Ross MB. Endogenous Driving Behavior in Veil of Darkness Tests for Racial Profiling. Published online 2017:81. 26. Engel RS, Calnon JM. Comparing Benchmark Methodologies for Police-Citizen Contacts: Traffic Stop Data Collection for the Pennsylvania State Police. Police Quarterly. 2004;7(1):97-125. doi:10.1177/1098611103257686 27. Rojek J, Rosenfeld R, Decker S. Policing Race: The Racial Stratification of Searches in Police Traffic Stops: The Racial Stratification of Searches. Criminology. 2012;50(4):993-1024. doi:10.1111/j.1745-9125.2012.00285.x 28. Carroll L,Gonzalez ML.Out of Place:Racial Stereotypes and the Ecology of Frisks and Searches Following Traffic Stops. Journal of Research in Crime and Delinquency. 2014;51(5):559-584.doi:10.1177/0022427814523788 29. Tillyer R, Klahm CF. Discretionary Searches,the Impact of Passengers,and the Implications for Police-Minority Encounters. Criminal Justice Review. 2015;40(3):378-396. doi:10.1 1 77/073401 681 5581 049 30. Rosenfeld R,Johnson TL,Wright R. Are College-Educated Police Officers Different?A Study of Stops, Searches, and Arrests. Criminal Justice Policy Review. 2020;31(2):206-236. doi:10.1177/0887403418817808 31. Briggs SJ, Crew BK. The Impact of Population Selection on Examinations of Discretionary Searches in Traffic Stops. Journal of Ethnicity in Criminal Justice. 2013;11(3):133-149. doi:10.1080/15377938.2013.739455 32. Schafer JA, Carter DL, Katz-Bannister AJ,Wells WM. Decision Making in Traffic Stop Encounters:A Multivariate Analysis of Police Behavior. Police Quarterly. 2006;9(2):184-209. doi:10.1177/1098611104264990 The University of Iowa prohibits discrimination n employment,educational programs,and activities on the basis of race,creed,color,religion,national origin,age,sex.pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military,sexual orientation,gender identity,associational preferences,or any other classification that deprives the person 12 of consideration as an individual,The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa.202 Jessup Hall,Iowa City.IA 52242-131b,319-335-0705. Public Policy Center 33. Ridgeway G. Assessing the Effect of Race Bias in Post-traffic Stop Outcomes Using Propensity Scores.J Quant Criminol. 2006;22(10-29. doi:10.1007/s10940-005-9000-9 34. Becker GS. The Economics of Discrimination. University of Chicago Press; 1957. 35. Ayres I. Outcome Tests of Racial Disparities in Police Practices. Justice Research and Policy. 2002;4(1-2):131- 142. doi:10.3818/JRP.4.1.2002.131 36. Knowles J, Persico N,Todd P. Racial Bias in Motor Vehicle Searches: Theory and Evidence. Journal of Political Economy. 2001;109(1):203-229. doi:10.1086/318603 37. National Academies of Sciences, Engineering, and Medicine. Proactive Policing: Effects on Crime and Communities. National Academies Press; 2018. The University of Iowa prohibits discrimination n employment.educational programs.and activities on the basis of race.creed,color.religion,national origin,age,sex,pregnancy,disability, genetic information,status as a U.S.veteran,service in the U.S.military sexual orientation,gender identity,associational preferences.or any other classification that deprives the person 13 of consideration as an individual.The university also affirms its commitment to providing equal opportunities and equal access to university facilities.For additional information on nondiscrimination policies,contact Office of Institutional Equity,the University of Iowa,202 Jessup Hall.Iowa City,IA 52242-1316,319-335-0705,ghr-y .gm,dy_