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HomeMy WebLinkAbout2011-01-06 Info PacketCITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET January 6, 2011 JANUARY 10 SPECIAL WORK SESSION IP1 Council Meetings and Work Session Agenda IP2 Summary of Pending Work Session Items MISCELLANEOUS IP3 Letter from Mayor Hayek to Governor -Elect Terry Branstad: Support for proposed Amtrak passenger rail service IP4 Memorandum from the Assistant City Attorney: Prohibiting guns on City property IP5 Memorandum from the City Clerk: KXIC Radio Show IP6 Letter from Robert Givens, President, Hawkeye Area Chapter Board of Directors: Police Citizens Review Board recommendations IP7 Email from Joel & Elizabeth Lee to Mike Moran and Glen Meisner: Trail System IP8 Building Permit Information — December 2010 IP9 Memorandum from the Director of Public Works and the Director of Planning and Community Development: Update: Flood- related activities IP10 Memorandum from the Public Art Coordinator and the Director of Planning and Community Development: Update on Amended Public Art Program IP11 The Planner— December 20, 2010 IP12 Newsletter: The Long View December 2010 IP13 Press Release: Auditor's Report Released For The Year Ended June 30, 2010 IP14 Minutes: Joint Informal Meeting of the Johnson County Board of Supervisors and the Criminal Justice Coordinating Committee: October 6, 2010 IP15 Minutes: Joint Informal Meeting of Johnson County Board of Supervisors and Criminal Justice Coordinating Committee: November 3, 2010 IP16 Minutes: Joint Informal Meeting of Johnson County Board of Supervisors and Criminal Justice Coordinating Committee: December 1, 2010 DRAFT MINUTES January 6, 2011 Information Packet (continued) 2 IP17 Economic Development Committee: December 21, 2010 IP18 Airport Commission: December 16, 2010 IP19 Airport Commission: December 20, 2010 COUNCIL PACKETS ONLY AVAILABLE IN CITY CLERK'S OFFICE OR ON LINE (www.ic-gov.org) Comprehensive Annual Financial Report (CAFR) for Fiscal Year ended June 30, 2010 I = 1 LEJ .- 0Zxw1 IN City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas January 6, 2011 www.icgov.org ♦ MONDAY, JANUARY 10 Emma J. Harvat Hall 6:00p • Special Work Session • Council Appointments • Agenda Items No Dinner ■ ICAD Annual Update Presentation Provided ■ Information Packet Discussion [1219, 12116, 12123, 1106] • Council Time • Budget Priorities • Summary of Pending Work Session Issues [IP#2] • Upcoming Community Events /Council Invitations ■ Discussion of Meeting Schedules 7:00p Special Formal Council Meeting Continue Special Work Session if necessary ♦ THURSDAY, JANUARY 13 Emma J. Harvat Hall 6:30p Special Budget Work Session TENTATIVE MEETING SCHEDULE SUBJECT TO CHANGE ♦ MONDAY, JANUARY 17 Emma J. Harvat Hall Martin Luther King, Jr. Day — City Offices Closed ♦ TUESDAY, JANUARY 18 Emma J. Harvat Hall 7:00p Special Budget Work Session (Boards /Commissions /Events) ♦ MONDAY, JANUARY 24 Emma J. Harvat Hall TBD Special Work Session ♦ TUESDAY, JANUARY 25 Emma J. Harvat Hall 7:00p Special Formal Council Meeting ♦ THURSDAY, JANUARY 27 Emma J. Harvat Hall 6:30p Special Budget Work Session ♦ MONDAY, JANUARY 31 Emma J. Harvat Hall 6:30p City Conference Board Regular Work Session ♦ TUESDAY, FEBRUARY 1 Emma J. Harvat Hall 7:00p Regular Formal Council Meeting ♦ MONDAY, FEBRUARY 14 Emma J. Harvat Hall 6:30p Regular Work Session ♦ TUESDAY, FEBRUARY 15 Emma J. Harvat Hall 7.00p Regular Formal Council Meeting City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas January 6, 2011 www.icgov.org ♦ MONDAY, FEBRUARY 21 Emma J. Harvat Hall Presidents' Day — City Offices Closed ♦ WEDNESDAY, FEBRUARY 23 4:30p Special Work Session (Joint Meeting at Johnson County) ♦ MONDAY, FEBRUARY 28 Emma J. Harvat Hall 6:30p City Conference Board Regular Work Session ♦ TUESDAY, MARCH 1 Emma J. Harvat Hall 7:00p Regular Formal Council Meeting ♦ MONDAY, MARCH 21 Emma J. Harvat Hall 6:30p Special Work Session ♦ TUESDAY, MARCH 22 Emma J. Harvat Hall 7:00p Special Formal Council Meeting SUMMARY OF PENDING WORK SESSION ISSUES 1/6/11 Transit Service Enhancement Options (JANUARY 24) Sanctuary City (JANUARY 31) Location of Affordable Housing (JANUARY 31 and FEBRUARY 14) Wastewater Facilities Plan (FEBRUARY) Tenant - Landlord Relations Review Function of Boards /Commissions: Explore Possible Consolidations Flood Response & Mitigation Update (PERIODIC) Jan. 24 -25 Jan. 31 - Feb. 1 Feb. 14 - 15 Feb. 28 - Mar. 1 March 21 - 22 IP2 December 30, 2010 Governor -Elect Terry Branstad 603 E. 12th Street Des Moines, IA 50319 Re: Support for proposed Amtrak passenger rail service Dear Governor -Elect Branstad, IP3 ..III i �r y11� ®BM W CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356 -5000 (319) 356 -5009 FAX www.icgov.org The Iowa Department of Transportation, in conjunction with the Illinois Department of Transportation, has received $230 million from the Federal Railroad Administration (FRA) to initiate intercity passenger rail service from Chicago to Iowa City via the Quad Cities. We would like to express our support for this project as it will have a great impact on the Iowa City area as well as the State of Iowa. This project would allow Iowa to fulfill its vision for expanded passenger rail service as documented in the State's Rail Plan, the State Transportation Plan, and the Midwest Regional Rail Initiative. The proposed twice -daily service to Iowa City will be part of a larger passenger rail system that will support sustainability through energy- efficient train travel. The proposed route is projected to have an annual ridership of 246,800. This includes diverting 148,000 passengers from automobiles, 59,200 from air service, and 22,200 from bus service between Iowa City and Chicago each year. The proposed service will enhance the quality of life for a diverse population by providing a convenient, affordable, and sustainable travel option. The economic development opportunities of the proposed service will be invaluable to eastern Iowa, especially with extension of rail to Des Moines. The short-term effect on economic development includes the creation of construction jobs, and in the near future would create many business, hospitality, and tourism jobs. Iowa City is currently planning for the Riverfront Crossings Redevelopment District located near our downtown and the University of Iowa campus. We plan to use the historic Rock Island Depot, which is located in the Riverfront Crossings District, as the future Amtrak station. The station is ideally located to serve both the Iowa City area and the University of Iowa population. The student population coming from greater Chicago to the University of Iowa has grown significantly over the years and is currently our largest source of out -of -state students. The outstanding health care services provided by the University of Iowa's Hospitals and Clinics would also benefit from the proposed passenger rail route. Passenger rail service is popular with students in other university communities located on Amtrak rail lines, and we are confident that it will be popular in Iowa City as well. We understand that the cost to implement such a large project, as well as the annual operating cost, is perceived by some to be impractical. We believe that the State's investment in this project will reap far greater returns for the State of Iowa and enable us to grow our economy by playing a larger part in the Midwest regional economy. Iowa City is prepared to invest in the development of this project and we feel the relatively modest annual operating subsidy is money well spent for the State of Iowa. I want to congratulate you on your election to our State's highest office. We look forward to working with you on more fully investigating the positive economic impacts of the proposed Amtrak service to eastern Iowa. We respectfully encourage your support for the Chicago -to- Iowa City Passenger Rail project. This funding opportunity may be our one and only opportunity to invest in such a large -scale project that will have a positive impact on the State of Iowa. I appreciate the opportunity to voice our support. Sincerely, Matthew J. Hayek, Mayor City of Iowa City cc: City Council Tom Markus, City Manager Jeff Davidson, Director, Department of Planning and Community Development ItrsRad Funding -B ra nstad -2010. doc r CITY OF IOWA CITY IP4 MEMORANDUM Date: January 4, 2011 To: Susan Craig, Library Director From: Eric Goers, Asst. City Attorney Re: Prohibiting guns on City property Question Presented: Can the Iowa City Public Library prohibit firearms in the library despite the recent change to Iowa Code Section 724.7? Conclusion:: Yes. The state law does not prevent a city from regulating firearms on property owned by the city. Any weapons restrictions should be adopted by formal action of the Library Board, clear signage should appear on all entrances and the restrictions may be enforced by way of a criminal trespass charge. I am copying all Department Directors on this opinion as the same conclusion applies to all municipal property with the exception, of course, that the resolution adopting the restriction must be by the entity in control of the property (e.g. City Council or Airport Commission) On January 1, 2011, Iowa became a "shall issue" state, meaning that the sheriff of the county in which the applicant resides must issue, without limitation or qualification, a nonprofessional permit to carry firearms to anyone "not unqualified" under State Code. See Iowa Code Section 724.7 and 724.11. County sheriffs may no longer place limitations on what weapon or ammunition may be carried, or insist that the carrying be concealed. The law also indicates that the permit "shall be valid throughout the state except where the possession or carrying of a firearm is prohibited by state or federal law." Iowa Code Section 724.7. It is this last sentence that has sparked debate about what limitations property owners can impose on those wishing to enter onto their property. There are two primary interpretations of this last phrase. The first is that the permits are no longer limited to the county in which they were issued, but are valid throughout all 99 counties. The second is that the permits are good literally anywhere in the state of Iowa, regardless of the wishes of property owners, save only for regulation by the state or federal government. Under Iowa Code Section 724.4, a person commits an aggravated misdemeanor when they, within city limits, go armed with a pistol or revolver, or any loaded firearm at any time. There are exceptions, including 724.4(4)(i), for those in possession of a permit to carry. By the same token, "A person... shall not operate any motor vehicle upon a highway in this state unless the person has a driver's license...." Iowa Code Section 321.174. That driver's license is clearly `valid throughout the state', and "highway" includes all public roads. It is equally clear that if the City chose to close a road to motor vehicle traffic for maintenance purposes, for a street festival, or for dangerous conditions, the fact that someone possessed a driver's license, issued by the state, allowing them to drive on public highways, would not trump the closure and allow them to drive there. While the analogy is far from perfect, as the structures of the two regulatory schemes are not identical, the notion that falling within an exception to a state crime empowers one to "exercise" that exception outside of the original parameters of the state law, is flawed. January 5, 2011 Page 2 Simply put, falling under an exception to a single rule doesn't make moot all other rules. In this case, the Constitutionally protected rights of property owners to control their own property must prevail, even if the property is owned by the government. The Attorney General's Office has twice weighed in on this issue within the past several years. In 2003, they concluded that Iowa Code Section 724.28, which prohibits cities and counties from passing their own regulation of firearms registration, licensure, transportation, possession and transfer when such activities are otherwise lawful under the state law, would not bar the city from regulating firearms on their own property. The Attorney General stated: Finally, we have surveyed cases and opinions from other jurisdictions addressing preemption in the context of weapons regulation. The majority of courts addressing the narrow issue presented here - whether an express statutory preemption of firearms regulation by a municipality prohibits the municipality from regulating the possession of firearms on municipally -owned or controlled property - have recognized the inherent authority of a municipality to manage property which it owns or controls. Iowa Op. Atty. Gen. 403 -4 -1, page S The Iowa Attorney General's Office was asked to render an opinion on the most recent change to 724.7. Noting that there were many changes to Iowa Chapter 724, but none to 724.28, they concluded that nothing in the statutory amendments changed their earlier interpretation that cities and counties had the legal right to regulate firearms on their own property. See attached letter from Assistant Iowa Attorney General Michael Bennett to Patrick Jackson, Des Moines County Attorney, dated December 29, 2010. The Attorney General's Office suggested, as would I, that policies be officially adopted via resolution of City Council, or in your case, the Library Board. Special attention should be paid to exceptions you might consider, such as for police officers, members of the armed services, or those with private security firms, such as armored car drivers. Iowa Code Section 724.4(4) would be a good starting point for your discussions. I also share their view that violations of City prohibitions against carrying firearms on City property should be met with trespass charges. To ensure public notice and effective prosecution, there should be clear signage at all entrances to the buildings to which the prohibition applies. Should you have questions or concerns, please do not hesitate to call. Cc w/o encl.: Tom Markus, City Manager Dale Helling, Assistant City Manager Marian Karr, City Clerk Department Directors City Council Eleanor Dilkes, City Attorney 0 Eo.;` PgVar#ment of 3ustir>e THOMAS J. MILLER ATTORNEY GENERAL December 29, 2010 Patrick Jackson Des Moines County Attorney 215 Columbia Street Burlington, Iowa 52601 Dear Pat: ADDRESS REPLY TO: HOOVER BUILDING DES MOINES. IOWA 50319 TELEr"ONC 015 -2181 -5164 FACSIMILE; 515.281.4902 This letter is in response to your inquiry regarding the ability of city or county authorities to place restrictions on the use of firearms by persons with nonprofessional permits to carry weapons on city /county property after the enactment of Senate File 2379, which becomes effective January 1, 2011. Senate File 2379, 83`d G.A, 2nd Sess., § 19. This legislation made significant changes in the process of issuing nonprofessional permits to carry weapons under Iowa Code Chapter 724. Iowa Code §724.28 restricts the scope of local ordinances limiting firearm registration, licensure, transportation, possession and transfer when such activities are otherwise lawful under the state law. Iowa Code §724.28 is not changed by Senate File 2379. Section 5 of Senate File 2379 amends Iowa Code §724.7, "nonprofessional permits to carry weapons ", and provides these nonprofessional permits are valid throughout the state except where carrying a firearm is prohibited by state or federal law. In 2003, this office issued the attached formal opinion, Op. Atty. Gen. #03 -4 -1, interpreting the power of a city or county to restrict use of its property by persons with firearms in light of the limitations of Iowa Code §724.28. That opinion determined that Iowa Code §724.28 would not bar a city or a county from regulating firearms on the city or county's own property; however, Iowa Code §724.28 does not allow more generalized regulation of firearms within these jurisdictions. This office has reviewed Opinion #03- 4-1 in light of the changes to Iowa Code Chapter 724 contained in Senate File 2379, and concluded that the opinion remains an accurate interpretation of the law. While the city ordinance reviewed in Op. Atty. Gen. #03 -4 -1 provided a criminal penalty for possession of weapons in violation of the city ordinance, the best practice may be enforcement through the existing state criminal trespass statute, Iowa Code §716.7(2)(b). Entering public property with notice of a weapons prohibition or remaining thereon after being asked to vacate would be punishable under this statute. Local authorities seeking to bar such use by armed persons should clearly post weapon restrictions on entryways to affected public property to give adequate notice to users to allow compliance. Enforcement through the criminal trespass statute is consistent with the means cities and counties have generally used to deal with use of their facilities in violation of regulations or use that disrupts normal business thereon. Finally, the limited, local regulation of firearm possession on county or city property would be best implemented through a resolution or motion by a city council or county board of supervisors. These actions by cities and counties are defined by Iowa Code §331.101(13) and §362.2(21) as a statement of policy or order for action to be taken. Ordinances are laws of a general and permanent nature to be applied throughout the jurisdiction. See §331.101(10) and §362.2(16). Therefore, a motion or resolution would comport with the narrow regulation by a city or county necessary for the orderly use of only its own facilities. I hope your find this information helpful in resolving your question. Best regards, Michael Bennett Assistant Iowa Attorney General PATC Division Mstlaw. 2003 WL 22100958 (Iowa A.G.) 2003 WL 22100958 (Iowa A.G.) Office of the Attorney General State of Iowa Opinion No. 03 -4 -1 April 7, 2003 Page 1 of 6 Page 1 MUNICIPALITIES; WEAPONS; PREEMPTION: Authority of city to impose restrictions upon carrying weapons. Iowa Code §§ 364.1, 724.4 and 724.28 (2003). The Iowa courts would likely construe the preemption provision contained in Iowa Code section 724.28 narrowly and find that the statute does not interfere with the authority of a city to exercise its home rule power to place restrictions upon the possession of weapons which apply only to buildings owned or directly controlled by the city. (Odell to Wise, State Representative, 4 -6 -03) #03 -4 -1 The Honorable Philip Wise State Representative Dear Representative Wise: You have requested an opinion of the Attorney General regarding the validity of an ordinance approved by the West Burlington City Council restricting possession of firearms by non -law enforcement or military personnel within municipal buildings. Specifically, you posed the following questions: 1) Can the City of West Burlington enforce this weapons ban without contravening Iowa Code section 724.28? 2) Can the City of West Burlington enforce this ordinance against a person licensed to carry a weapon under Iowa Code section 724.4 and who possesses that weapon in compliance with Iowa Code section 724.4(4)? Iowa Code section 724.28 includes an express limitation upon the ability of a political subdivision to regulate firearms. However, for the reasons that follow, we do not believe that Iowa Code section 724.28 would be inter- preted as preempting a political subdivision from enacting and enforcing limitations upon the possession of weapons which are narrowly limited to buildings owned or directly controlled by the political subdivision. Before addressing the questions you posed, it may be helpful to review two concepts which determine the valid- ity of municipal legislation: (1) the city's home rule authority and (2) the state's power to preempt local action. These concepts and their interrelationship are set forth in the Municipal Home Rule Amendment of Iowa's con- stitution: Municipal corporations are granted home rule power and authority, not inconsistent with the laws of the General Assembly, to determine their local affairs and government, except that they shall not have power to levy any tax unless expressly authorized by the General Assembly. The rule or proposition of law that a municipal corporation possesses and can exercise only those powers granted in express words is not a part of the law of this state. Iowa Const. art III, § 38A. [FN I] © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https: / /web2.westlaw.coml print 1printstream.aspx ?vr= 2.0 &mt= Iowa &destination= atp &prft =... 1/4/2011 Page 2 of 6 2003 WL 22100958 (Iowa A.G.) Page 2 Iowa Code chapter 364 sets forth the powers and duties of cities. The statute essentially mirrors the municipal home rule amendment, providing that [a] city may, except as expressly limited by the Constitution, and if not inconsistent with the laws of the general assembly, exercise any power and perform any function it deems appropriate to protect and preserve the rights, privileges, and property of the city or of its residents, and to preserve and improve the peace, safety, health, welfare, comfort, and convenience of its residents.... *2 Iowa Code § 364.1 (2003); see also Iowa Code § 364.2(2) (2003) ( "A city may exercise its general powers subject only to limitations expressly imposed by a state or city law "). While the concept of home rule clearly envisions the possibility that both the state and a city may regulate in the same area, a city's power to govern its local affairs may be preempted by state law. The concept of "preemption" finds its source in the constitutional prohibition against the exercise of a home rule power that is "inconsistent with the laws of the general assembly." Iowa Const. art. III, section 38A. An exercise of a city power is incon- sistent with a state law only if it is "irreconcilable with the state law." Iowa Code section 364.2(3) (2003); see Goodell v. Humboldt Counly, 575 N.W.2d at 492. Preemption may be express or implied. Express preemption occurs when the general assembly has specifically prohibited local action in an area. Obviously, any ordinance that regulates in an area the legislature has specifically stated cannot be the sub- ject of local action is irreconcilable with state law. Implied preemption occurs in two ways. When an ordin- ance prohibits an act permitted by a statute, or permits an act prohibited by a statute, the ordinance is con- sidered inconsistent with state law and preempted. Implied preemption may also occur when the legislature has covered a subject by statutes in such a manner as to demonstrate a legislative intention that the field is preempted by state law. Goodell v. Humboldt County, 575 N.W.2d at 492 (quotations and citations omitted). The state statute at issue here is Iowa Code chapter 724, governing weapons. This chapter, comprehensive in scope, defines offenses related to the possession and carrying of weapons, details the procedures for obtaining a permit to carry or to acquire weapons for both professionals - persons employed in law enforcement or security related occupations - and nonprofessionals, and establishes "weapons free zones." A nonprofessional person ob- tains a permit to carry a weapon, including a firearm, by applying to the sheriff of the person's resident county. Iowa Code § 724.11 (2003). If issued, the permit identifies the holder and the reason for its issuance, and also details any limits on the authority granted by the permit. Id. A permit is issued for a definite period not to exceed twelve months. Id. Except as specifically provided by Iowa Code section 724.4, "a person who goes armed with a dangerous weapon concealed on or about the person, or who, within the limits of any city, goes armed with a pistol or re- volver, or any loaded firearm of any kind, whether concealed or not,... commits an aggravated misdemeanor." Iowa Code § 724.4(1) (2003). However, a person who has a valid permit to carry weapons and whose conduct is within any limits specific in the permit, is not subject to the general prohibition upon carrying a concealed or loaded firearm. Iowa Code § 724.4(4)(i) (2003). A nonprofessional person with valid permit to carry a weapon is restricted only by any limits specified in the permit and by the "weapons free zones" established by the legis- lature which include public and private schools, the area within one thousand feet of public or private school, and public parks. Iowa Code § 724AA (2003). *3 Iowa Code section 724.28 sets forth the following express limitation upon regulation of firearms by political subdivisions. A political subdivision of the state shall not enact an ordinance regulating the ownership, possession, legal © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https:Hweb2.westlaw.com/ print /printstream. aspx? vr= 2. 0& mt= Iowa&destination= atp &prft =... 1/4/2011 Page 3 of 6 2003 WL 22100958 (Iowa A.G.) Page 3 transfer, lawful transportation, registration, or licensing of firearms when the ownership, possession, trans- fer, or transportation is otherwise lawful under the laws of this state. An ordinance regulating firearms in vi- olation of this section existing on or after April 5, 1990, is void. Iowa Code § 724.28 (2001). [FN2] Although the language of this provision encompasses the local regulation of the ownership, possession, legal transfer, lawful transportation, registration, or licensing of firearms, the statute does not explicitly restrict all local regulation. Rather the limitation applies only to local regulation of the ownership, possession, legal trans- fer, lawful transportation, registration, or licensing of firearms which "is otherwise lawful under the laws of this state." In essence, the statute incorporates the pre- existing constitutional and statutory restriction upon local le- gislation which is inconsistent with state law. As stated in [Art. 111, section 38A of the Iowa Constitution], municipal home rule power cannot be "inconsistent with the laws of the general assembly. "... A local ordinance, however, is not inconsistent with a state law unless it is irreconcilable with the state law. A local law is irreconcilable with state law when the local law prohibits an act permitted by statute, or permits an act prohibited by a statute. Beerite Tire Disposal/Recycling, Inc. v. City of Rhodes, 646 N.W.2d 857, 859 (Iowa 2002) (citations omitted, emphasis original). Compare Chelsea Theater Corporation v. Lily of Burlington, 258 N.W.2d 372 (Iowa 1977) (statute providing that "no municipality, county or other governmental unit within this state shall make any law, ordinance or regulation relating to the availability of obscene materials" found to preempt all local regulation of obscene materials); with 2000 Op. Att'y Gen. _ ( #00 -I1 -5) (concluding that statute expressly providing that Iowa Code chapter regulating smoking "shall supercede any local law or regulation which is inconsistent with or conflicts with [the] chapter" did not preempt all local regulation, but merely reflected the same limitations on home rule authority embodied in the Home Rule Amendments). Your specific inquiries relate to an ordinance passed by the West Burlington City Council on September 23, 2002. The ordinance establishes "firearm /weapons free zones" in any municipal building, defined as every "structure, dwelling, garage or shelter owned, leased or otherwise occupied by the City of West Burlington, Iowa and used for any municipal or public purposes by the City." Ordinance No. _, § 3(1). In Section 2, the ordinance prohibits non - professional persons from carrying or possessing firearms or weapons in any municipal building, even if the persons are duly licensed to carry and comply with Iowa Code section 724.4(4), providing: *4 Municipal buildings owned, leased or occupied by the City of West Burlington, Iowa are declared to be firearm/weapon free zones. It shall be unlawful for any person, except a peace officer, member of the armed forces of the United States or the national guard, a person in the service of the United States, or correctional officer serving in an institution under authority of the Iowa [D]epartment of Corrections to carry, possess or display any weapon or firearm within any municipal building. In defining "weapon," the ordinance refers specifically to and incorporates the definitions in Iowa Code sections 724.1 and 724.4. Ordinance No. _, § 3(2). The term "firearm" includes "pistols, revolvers, derringers, hand- guns, pellet guns, rifles, shotguns... or other devices which can expel or may be readily converted to expel any form of projectile so as to strike an object or person." Ordinance No. _ § 3(3). Under the state statutory scheme, a nonprofessional person licensed to carry a firearm is authorized to carry and possess it within any limitations specified in the permit and in any place in the State other than the "weapons free zones" established by the legislature in Iowa Code section 724.4A. It could be argued that the statute allows a person with a valid permit to carry to possess a firearm in any privately or municipally owned building, provided that he or she produces the permit on demand by a peace officer. We doubt, however, that the legis- lature intended chapter 724 to limit the ability of a property owner to prohibit the possession of a weapon on © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https- .Hweb2.westlaw.coml print 1printstream.aspx ?vr= 2.0 &mt= Iowa &destination= atp &prft =... 1/4/2011 Page 4 of 6 2003 WL 22100958 (Iowa A.G.) Page 4 their property. Further, we believe it is highly unlikely that chapter 724 would be interpreted by the Iowa courts as granting concealed weapon permit holders an absolute and unqualified right to be in possession of a firearm at any time or place. We arrive at this conclusion for several reasons. First, [i]n considering whether a particular ordinance violates the home rule provisions of the Constitution, the Su- preme Court attempts to interpret state law to render it harmonious with the ordinance. Sioux City Police Officers' Assn v. City of Sioux City, 495 N.W.2d 687, 694 (Iowa 1993). The Court appears especially Rely to find harmony between the ordinance and the statutory scheme where the ordinance addresses the health and safety of citizens. See e.g. Kent v. Polk Corm Board of Supervisors, 391 N.W.2d 220, 223 (Iowa 1986). 2000 Op. Att'y Gen. _, _ ( #00 -11 -5 at p. 2). Without question, an ordinance prohibiting the possession of weapons in municipal buildings, which may include city hall, municipal offices frequented by the public, and city-owned auditoriums or events centers, is directly focused upon the health and safety of citizens. Second, there is no provision included within Iowa Code chapter 724 which explicitly limits, or even addresses, the ability of a property owner to manage property owned or directly controlled by the person. Certainly, the state law does not preclude a private business owner from prohibiting persons from bringing concealed weapons onto the owner's business premises. Nor do we believe that Iowa Code section 724.28 must be interpreted to lim- it the ability of a municipality to prohibit persons from bringing concealed weapons onto premises owned or dir- ectly controlled by the municipality. See Barrett v. Kunzi , 331 F. Supp. 266, 271 -274 (N.D. Tenn. 1971), cert. denied 409 U.S. 914, 93 S.Ct. 232, 34 L.Ed.2d 1175 (1972) (holding that the "United States as a property owner can control entrance to [federal courthouses] by conditioning the entrant's right of entry on his submitting his packages and briefcase to a visual inspection "); 1989 N.Y Op. Att'y. Gen. (Inf) 169 [# 89 -75] (concluding that preemption provision within state firearms statute did not preclude a village from enacting a local law prohibit- ing a person from entering city hall with a firearm). As the Attorney General for the State of New York reasoned: *5 Although section 400.00(6) of the Penal Law [providing that a firearm license issued under state statutes shall be effective throughout the state, except in the city of New York] prohibits [a] village from regulating the licensing of firearms, there is support for the position that these provisions do not preclude [a] village from acting in its proprietary capacity for the safety of its property and persons present thereupon. In its proprietary capacity, like any private individual, [a] village can prohibit persons from entering its property while possessing a firearm, even if he or she has an unrestricted license to carry the firearm. 1989 N.Y. Op. Att'y. Gen. (Inf.) 169 [ #89 -75 at p. 2]. Further, the apparent intention of the legislature in enacting Iowa Code chapter 724, and particularly section 724.28, was to ensure uniform state -wide regulation of weapons. The purpose in doing so was likely to ensure that an individual who was familiar with state weapons laws could freely travel with a weapon from one juris- diction to another in the state without inquiring as to whether local ordinances place additional limitations upon the ownership, possession, transfer, or transportation of the weapon. A locally enacted restriction upon the pos- session of weapons within publically -owned or controlled buildings does not itself directly interfere with this purpose. Finally, we have surveyed cases and opinions from other jurisdictions addressing preemption in the context of weapons regulation. The majority of courts addressing the narrow issue presented here - whether an express stat- utory preemption of firearms regulation by a municipality prohibits the municipality from regulating the posses- © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https:H web2 .westlaw.comlprintlprintstream. aspx? vr= 2. 0& mt= Iowa&destination= atp &prft =... 1/4/2011 Page 5 of 6 2003 WL 22100958 (Iowa A.G.) Page 5 sion of firearms on municipally -owned or controlled property - have recognized the inherent authority of a mu- nicipality to manage property which it owns or controls. In McMann v. City of Tucson, 202 Ariz. 468, 472, 47 P.3d 672, 676 (Ariz. App. Div. 2002), a gun show pro- moter challenged a Tucson city ordinance "requiring instant background checks for prospective gun purchasers during gun shows held at the Tucson Convention Center." The plaintiff argued that the ordinance was preempted by an Arizona statute which prohibited a political subdivision from enacting an ordinance "relating to the trans- portation, possession, carrying, sale or use of firearms." Id. 202 Ariz. at 470, 47 P.3d at 674. The court, noting that it was "not clear that the legislature intended the statute to apply to the City's control of its own property as opposed to the City's attempt to control third parties," rejected the plaintiffs preemption claim. Id. 202 Ariz. at 471, 47 P.3d at 675. Similarly, the Supreme Court of California rejected a claim that a state statute articulating legislative intent to "completely occupy the whole field of registration and licensing of... firearms," compelled a county to allow their property to be used for gun shows. Great Western Shows, Inc. v. Coun of Los Angeles, 27 CalAth 853, 44 P.3d 120, 118 Cal. Rptr. 2d 746 (2002). As the Court observed, "[e]ven assuming arguendo that a county is prevented from instituting a general ban on gun shows within its jurisdiction, it is nonetheless empowered to ban such shows on its own property." Id. 27 CalAth at 868, 44 P.2d at 129, 118 Cal. Rptr.2d at 757. See also 1989 MY Op. Att'y. Gen. 169 (supra); 25 Okl. Op. Atty. Gen. 245 (public library may ban patrons from bringing con- cealed weapons into libraries despite statute preempting "any order, ordinance, or regulation [of firearms] by any municipality or political subdivision); cf. Cherry L. Municipality of Metropolitan Seattle, 116 Wash.2d 794, 808 P.2d 746 (1991) (holding that city could restrict city employee with a concealed weapon permit to carry concealed weapon into the workplace despite statute which expressly pre - empted political subdivisions from all firearm regulation and indicated that municipalities could enact "only those laws and ordinances relating to fire- arms that are specifically authorized by state law and are consistent with [state law] "). But see Doe v. Portland Housing Authorily, 656 A.2d 1200 (Maine), cert. denied 51.6 U.S. 861, 116 S.Ct. 171, 133 L.Ed.2d 112 (1995) (housing authority, as political subdivision, was preempted from regulating firearm possession by tenants of property owned by the authority; the court did not address the issue of property ownership); HC Gun & Knife Shows, Inc. v. Citv of Houston, 201 F.3d 544 (5th Cir. 2000) (concluding that city ordinance which regulated gun shows conducted on city property was preempted by state law which explicitly prohibited municipal regula- tion of the "transfer, private ownership, keeping, transportation, licensing, or registration of firearms, ammuni- tion, or firearms," except in the context of specifically delineated areas. The Court rejected the city's claim that the regulation was a proper exercise of the city's ability to regulate the discharge of weapons within the city lim- its, but did not address the issue of property ownership). *6 We caution, however, that we believe the authority of a municipality to regulate weapons is narrowly limited to property owned or directly controlled by the municipality. Iowa Code section 724.28 directly preempts any local ordinance attempting to limit the right to possess or transport a weapon in other public areas pursuant to the terms of chapter 724. We believe the Iowa courts would conclude that a local ordinance imposing a jurisdic- tion -wide restriction upon the possession or transport of a weapon is preempted by section 724.28 and unen- forceable. See Doe v. Citv and Countv of San Francisco, 136 Cal.App.3d 509, 186 Cal.Rptr. 380 (Cal. Ct. App. 1982) (holding that state legislature's express statutory intent to "occupy the whole field of regulation of regis- tration or licensing of... firearms" preempted ordinance prohibiting any person from possession a handgun with- in the city and county); National Rifle Assn of America, Inc. v. City of South Miami, 812 So.2d 504 (Fla. Ct. App. 2002) (city ordinance regulating firearms by establishing certain safety standards preempted by state stat- ute); Montgomery County v. Atlantic Guns, Inc., 302 Md. 540, 489 A.2d 1114 (1985) (holding that statute gov- © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https: / /web2.westlaw. coml print 1printstream.aspx ?vr= 2.0 &mt =Iowa &destination= atp &prft =... 1/4/2011 Page 6 of 6 2003 WL 22100958 (Iowa A.G.) Page 6 erning wearing, carrying, and transporting of handguns regulates both loaded and unloaded handguns, and ex- pressly preempts all local laws regulating the same subject); City of Portland v. Lodi, 308 Or. 468, 782 P.2d 415 (1989) (local ordinance prohibiting the carrying of any concealed knife found to be preempted by state statute which prohibited the carrying of only certain concealed knives); Ortiz v. Commonwealth of Pennsylvania, 545 Pa. 279, 681 A.2d 152 (1996) (city-wide ban on the possession of certain assault weapons found to be preempted by statute which prohibited any manner of local regulation of the lawful ownership, possession, transfer or trans- portation of firearms and ammunition). Based upon these considerations, we conclude that Iowa courts would likely construe the preemption provision contained in Iowa Code section 724.28 narrowly and would recognize the authority of a city to exercise its home rule power to place restrictions upon the possession of weapons which apply only to buildings owned or directly controlled by the city. Therefore, we believe that the City of West Burlington could enforce its ordinance against a person who is authorized by Iowa Code section 724.4 to carry a firearm and may prohibit a nonprofessional person from possessing a firearm within a municipal building, even though the person has a valid permit to carry the firearm and carries it in compliance both with Iowa Code section 724.4(4)(i) and with any limitations spe- cified in the permit. Sincerely, Cristen C. Odell Assistant Attorney General [FN1]. Although this opinion addresses the power of municipalities to limit or prohibit the possession of weapons in certain municipally owned facilities, there are parallel provisions of the Iowa Constitution and Iowa Code that make the analysis virtually identical for counties. See Iowa Const., art. I11, § 39A and Iowa Code § 331.301. See also Goodell v. Humboldt County. 575 N.W.2d 486, 492 (Iowa 1998) ( "we cite to county home rule cases and city home rule cases interchangeably "). [FN2]. We note that this limitation is applicable only to ordinances enacted by political subdivisions of the state. The statute does not affect the authority of the judicial branch to order the installation of metal detectors or sim- ilar security devices and restrictions upon the possession of weapons in county courthouses, as the judiciary has inherent power to adopt any measure to ensure the "immediate, necessary, efficient, and basic functioning of the courts." Webster Countv Board of Supervisors v. Flattery, 268 N.W.2d 869, 873 (Iowa 1978). Nor does the stat- ute address the authority of the various branches of state government to prohibit the possession of weapons in state -owned or controlled buildings. 2003 WL 22100958 (Iowa A.G.) END OF DOCUMENT © 2011 Thomson Reuters. No Claim to Orig. US Gov. Works. https:H web2 .westlaw.comlprintlprintstream. aspx? vr= 2. 0& mt= Iowa&destination= atp &prft =... 1/4/2011 CI TY OF IOWA CITY IP5 MEMORANDUM Date: January 3, 2011 To: Mayor and City Council From: Marian K. Karr, City Clerk P-40� Re: KXIC Radio Show We are booked through January 5 but need to schedule for the next few weeks. Please take a look at your calendars and come prepared to help fill in the schedule Monday evening: January 12 January 19 January 26 February 2 February 9 February 16 February 23 March 2 March 9 U:radioshowasking.doc 00 0 9,,� ? 0 '1 ii Q N w 0 0 N Hawkeye Area Chapter Ameri.can:Civil Liberties Union of.Tgwa Police Citizens Review Board 410 East Washington Street Iowa City IA 52240 -1826 Members of the Iowa City Police Citizens Review Board, v'i -uo - i i IP6 December 20, 2010 On Tuesday, November 9, 2010, several members of our board of directors attended the annual Police Citizens Review Board Community Forum. The directors were pleased with the generally cordial atmosphere of the forum. However, on the basis of the observations of these board members and further discussions of our board, we would like to make two recommendations. 1) PCRB Annual Report We recommend that the PCRB prepare an annual report for distribution at the annual PCRB Community Forum, for posting on the PCRB website, and for publication in the local press. Already the PCRB website states,;Jhe PCRB maintains a central, registry of complaints against sworn police officers and prepares annual reports to the City Council on the disposition of these complaints." With minimal additional effort the PCRB should be able to prepare easily understood annual reports for the public. These reports should include, but not be limited to: • The number of PCRB meetings • The number of complaints received (with data from past years) • The disposition of the complaints — the numbers "sustained" and "not sustained" • The time required to resolve each complaint • Examples of typical complaints • The number of police policies and procedures reviewed • The number of recommendations for police policy and procedure changes • Examples of recommended police policy and procedure changes The PCRB currently maintains an archive of forum summaries that it sends to the city council and it posts these summaries on its website. With very little additional effort the annual reports could be made available on a similar webpage. 2) PCRB Publicity We recommend that the PCRB actively publicize the fact of its existence, the procedure for filing a PCRB complaint, and the efforts made to make the complaint procedure one that is not intimidating. The Hawkeye Area Chapter board strongly suspects that most residents of Iowa City are unaware of the existence of the PCRB. Particularly in light of the transient nature of our student population this is not surprising. However, if the effectiveness of the PCRB is to be maximized, the public must be familiar with the PCRB and its function. At minimal: cost the PCRB could make use of the following: • Public service announcements (PSAs) in city buses • PCRB brochures for distribution at locations such as the Iowa City Public Library • PSAs on local radio stations • Meetings with local clergy, middle and high school teachers, youth workers, and social service workers Furthermore, we feel that it is important for the PCRB to make the complaint filing procedure and follow -up to be as non - intimidating as possible, and to emphasize this in all of their publicity. We thank you for listening. Regards, N 0 o' C7 O rn Vv� � Robert ' ns, President N a. Hawkeye Area Chapter Board of Directors ° 3 robgiv @mchsi.com o v cc: Members of the Iowa City City Council Members of the Hawkeye Area Chapter Board of Directors R. Givens 1546 Buresh Avenue Iowa City, IA 52245 n Marian Karr From: Glen Meisner [g.meisner @mmsconsultants.net] Sent: Wednesday, January 05, 2011 9:26 AM To: 'Lee, Elizabeth (UI Health Care)'; Mike Moran Cc: Council; 'Neal Hunger'; 'Lucas C. Newton' Subject: RE: Trail System Joel and Elizabeth, Thank you for your important e-mail to Mike and me dated January 5, 2011. We had a'Kick -off meeting with the Iowa City Staff to review goals and timelines on December 29, 2010. MMS reported to the City that we would be completing the preliminary topographical survey in the field soon(we are now completed). Our goal is to look at several options and report back to the Iowa City Staff in three weeks. We will also hold neighborhood informational meetings to gather input from the neighborhood. The City does have a trail system plan and the next step is to look at the options to see which location allows the trail system to serve the entire area in the best possible way. We will contact your neighborhood to schedule the informational meeting in the near future. Respectfully submitted, Glen Meisner Glen D. Meisner, P.E. & L.S. Civil Engineer /Land Surveyor/Partner MMS Consultants, Inc. Office: (319)351 -8282 Cell: (319)631 -2705 e meisner(a)mmsconsultants.net www.mmsconsultants.net Your Vision + Our Innovation = Inspired Results This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. Ifyou are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. From: Lee, Elizabeth (Ul Health Care) [mailto:elizabeth- lee @uiowa.edu] Sent: Wednesday, January 05, 2011 8:47 AM To: mike -moran @iowa - city.org; g.meisner @mmsconsultants.net Cc: council @iowa - city.org; Neal Hunger Subject: Trail System Dear Mr. Moran & Mr. Meisner, We recently became aware that you are in the planning process of a trail that could potentially be placed at the perimeter of our property. We understand you have received an email from our neighbor, but we also wanted to write to relay some of our concerns. We purchased our home at 4258 Cumberland Lane in June of 2010. Like our neighbor, we were attracted to the aesthetic value of a quiet wooded lot and at the time were told that there were no plans to extend the trail through our back yard. So of course, one of our biggest concerns is the negative impact this trail would have on our property value. A trail would also significantly impact habitat; currently there is a fox den directly in the path of where this trail may be placed. We regularly see the fox come out of their den and trek up and down the woodland along the creek. We have also seen deer on occasion and we understand that wild turkey have been seen in this habitat. Placing the trail at the end of our yards would require significant thinning of the woods which will impact visual aesthetics and privacy. Since we moved in last June we have been making landscaping plans that would not take away from the woodland, but bolster it by planting additional trees and native plantings in our yard. Another significant concern with this proposed trail is for safety and security. We are afraid that the trail would be placed dangerously close to the creek, which has very steep creek side banks full of downed trees. We are also concerned about the foot and bike traffic that could occur at all hours of the 1/5/2011 Page 2 of 2 day in the shadows of our back yards. I believe our neighbor's email suggested that the trail be connected to the existing trail near the bridge on the north side of the creek coursing along the creek through the park. We have observed that Scott Park is very underutilized by walkers, joggers and cyclists. Very infrequently do we ever see walkers or joggers coming through the park and we choose not to walk in the park because the lack of trails in Scott Park. The Parks and Recreation web site shows paths going through most of the parks in the city. The trail being routed through the park would add to the parks utilization and servicing a densely populated area of the city. The arboretum could be a center piece of the parks system and could potentially even feature flowering and native plantings. If the trail were routed on the north side of the creek it would solve many of the problems that we have brought forward as concerns. There is enough space available on the north side of the creek that hundreds of yards of the creek side woodlands would be left intact and would not need to be clear cut. I imagine this would be a significant cost savings to the city and the parks and recreation department. I think this would also preserve habitat of the existing ecosystem and also preserve the privacy and property values to the home owners. The trail would not be positioned dangerously close to the creek and a significant buffer of trees would exist between the trail and the creek. The security concerns would also be better managed by having the trail more visible to the public and potentially law enforcement. We are supporters of a trail system; we enjoy daily walking and I commute to work by bike as often as I can. We feel that while in the planning phase of this trail that all the potential problems and options need to be considered. We appreciate you taking time to read through our letter and hope you take time to seriously consider our concerns. We would be happy to meet with you to discuss the trail plans and would welcome the opportunity to be a part of your planning process. We also plan to follow up our letter with a personal contact sometime next week. Sincerely, Joel & Elizabeth Lee 400 -0168 1/5/2011 E. PE BUILDING PERMIT INFORMATION December 2010 KEY FOR ABBREVIATIONS Type of Improvement: ADD - Addition ALT - Alteration REP - Repair FND - Foundation Only NEW -New OTH - Other type of construction Type of Use : RSF - Residential Single Family RDF - Residential Duplex RMF - Three or more residential RAC - Residential Accessory Building MIX - Mixed NON - Non - residential OTH - Other Page: 2 City of Iowa City Date: 1/3/2011 Extraction of Building Permit Data for To: From : From 12/1/2010 12/31/2010 Bureau Report Type Type Permit Number Name Address Impr Use Stories Units Valuation BLDIO -00741 SOUTHGATE DEVELOPMEN 2560 WESTWINDS DR ADD RAC 1 0 $12,000 SINGLE STALL ADDITION FOR DETACHED GARAGE FOR RMF Total ADD /RAC permits: 1 Total Valuation : $12,000 BLDIO -00750 RICK & JEAN DOBYNS 1950 CALVIN AVE ENLARGE KITCHEN, SCREEN PORCH ADDITION FOR SFD BLDIO -00766 MARK MAXWELL 307 3RD AVE ADDITION AND ALTERATION FOR SFD 0 BLDIO -00721 BARBARA E GARTNER 1211 ROCHESTER AVE DECK ADDITION FOR SFD RSF BLDIO -00749 LEO FERNANDEZ 2248 HICKORY CT SCREEN PORCH/DECK ADDITION FOR SFD ADD ADD RSF 0 0 $88,000 ADD RSF 0 0 $20,000 ADD RSF 0 0 $15,000 ADD RSF 0 0 $5,600 Total ADD/RSF permits: 4 Total Valuation : $128,600' BLD09 -00666 CITY OF IOWA CITY 2701 BRADFORD DR ALT NON 0 SOLARIUM REPLACEMENT FOR SWIMMING POOL ALT RMF 0 BLDIO -00685 GATEWAY ONE LC 41 HIGHWAY 1 WEST ALT NON 1 ALTERATION AND EXPANSION OF RETAIL STORE INTO ADJACENT STRIP MALL TENANT SPACE $2,000 BLDIO -00720 CHEBA HUT 314 E BURLINGTON ST ALT NON 3 TOASTED SUB SHOP RESTAURANT BLDIO -00732 ACT INC 2101 ACT CIR ALT NON 0 REMODEL FOR OFFICE BUILDING BLDIO -00742 BERGER/STREIGEL /FISHER 3030 NORTHGATE DR ALT NON 3 TENANT FINISH IN COMMERCIAL BUILDING BLD06 -00959 ALDI INC 1534 S GILBERT ST ALT NON 1 EXTEND DUMPSTER ENCLOSURE WALL 12' BLDIO -00756 VERNE STEVE 611 HOLLYWOOD BLVD ALT NON 1 NEW OVERHEAD DOOR OPENING ON SE CORNER OF BUILDING BLDIO -00760 NREP LLC 3030 NORTHGATE DR ALT NON 0 FINISH SHELL SPACE "3" IN COMMERCIAL BUILDING Total ALT/NON permits: 8 Total Valuation BLD09 -00659 STILPHEN- WILDES, JENNIF 933 DOVER ST 3 EGRESS WINDOWS FOR RDF Total ALT /RDF permits: 1 BLDIO -00755 RIVER CITY HOUSING COLI 802 E WASHINGTON ST RETAINING WALL NORTH SIDE OF PROPERTY BLD08 -00305 SIGMA CHI FRATERNITY 703 N DUBUQUE ST REMODEL ROOMS 209 & 306 OF FRATERNITY BLD09 -00135 JONES, JO L 3201 MUSCATINE AVE EGRESS WINDOWS FOR RMF UNITS ALT RDF 0 Total Valuation : 0 $251,700 0 $180,000 0 $70,000 0 $63,000 0 $55,000 0 $12,000 0 $2,732 0 $2,500 $636,932 0 $1,500 $1,500 ALT RMF 0 0 $35,000 ALT RMF 0 0 $12,000 ALT RMF 0 0 $2,000 Page : 3 City of Iowa City Date: 1/3/2011 Extraction of Building Permit Data for To: From : 12/1/2010 12/31/2010 Census Bureau Report Tyne _Type Permit Number Name Address Imnr Use Stories Units Valuation Total ALT/RMF permits: 3 Total Valuation : $49,000 BLDIO -00772 GEOFF & ERIKA LAUER 704 WHITING AVE ALT RSF 0 0 $43,200 INTERIOR REMODEL FOR SFD SUMP PUMP, MLO BLDIO -00729 MOREY, ROBERT 1016 RONALDS ST ALT RSF 0 0 $40,000 BATH AND KITCHEN REMODEL FOR SFD BLDIO -00737 JEFF MILLER CONSTRUCTI( 1477 LAKE SHORE DR NEW BLDIO -00771 NANCY LYNCH 612 PARK RD ALT RSF 0 0 $32,250 KITCHEN REMODEL FOR SFD BLDIO -00545 3 TRIANGLE PLACE LLC 3 TRIANGLE PL BLDIO -00758 JAY FORD & JODY MEYER 2035 BRISTOL DR ALT RSF 0 0 $18,960 BASEMENT BEDROOM AND BATH FOR SFD BLDIO -00707 CAPITAL BUILDERS 2042 BRISTOL DR NEW RSF 1 1 $180,000 SFD WITH ATTACHED 2 CAR GARAGE BLDIO -00764 CRIST, JANET K 1018 PHEASANT VALLEY ALT RSF 0 0 $18,260 KITCHEN REMODEL FOR SFD BLDIO -00761 HSIUMEI WEN 1319 EMILY CT ALT RSF 0 0 $17,800 BASEMENT BEDROOM, BATH, AND GAME ROOM FOR SFD BLDIO -00598 WILLIAM BRYANT 2750 IRVING AVE ALT RSF 0 0 $15,000 BASEMENT FINISH FOR SFD BLD10 -00463 ANDREW J KOLAR 1410 WETHERBY DR ALT RSF 0 0 $12,632 BASEMENT FINISH FOR SFD BLDIO -00757 GARY & CONNIE BARTA 35 REDBUD PL ALT RSF 0 0 $12,000 ADD KITCHENETTE AND RAISED BAR TO BASEMENT BLDIO -00744 JOHN YUTZY 435 S DODGE ST ALT RSF 2 0 $9,000 BATH REMODEL FOR SFD BLDIO -00776 SHU YING GUO & SHI JANG 3342 LOWER WEST BRAN( ALT RSF 0 0 $4,000 BASEMENT BATHROOM FOR SFD BLD09 -00443 BRIAN WILLINGHAM 4 GILMORE CT ALT RSF 0 0 $2,000 INTERIOR ALTERATION FOR SFD BLDIO -00746 KIRSTINA & RYAN GRATZ 510 WESTWINDS DR ALT RSF 0 0 $2,000 BASEMENT FINISH FOR RMF TOWNHOUSE UNIT BLDIO -00779 RAITT, CORY L 629 RONALDS ST ALT RSF 0 0 $1,000 Install two bedroom egress windows Total ALT /RSF permits: 14 Total Valuation : $228,102 BLDIO -00736 SOUTHGATE HOMES 1630 LAKE SHORE DR NEW RSF 2 1 $405,000 SFD WITH ATTACHED 3 CAR GARAGE SUMP PUMP, MLO BLDIO -00735 SOUTHGATE HOMES 821 CAMP CARDINAL RD NEW RSF 2 1 $324,000 SFD WITH ATTACHED 2 CAR GARAGE BLDIO -00737 JEFF MILLER CONSTRUCTI( 1477 LAKE SHORE DR NEW RSF 1 1 $245,000 SFD WITH ATTACHED 2 CAR GARAGE SUMP PUMP BLDIO -00545 3 TRIANGLE PLACE LLC 3 TRIANGLE PL NEW RSF 2 1 $191,610 NEW SFD WITH ATTACHED 2 CAR GARAGE BLDIO -00707 CAPITAL BUILDERS 2042 BRISTOL DR NEW RSF 1 1 $180,000 SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS Page: 4 City of Iowa City Date: 1/3/2011 Extraction of Building Permit Data for To: 12/1/2010 From : 12/31/2010 From Bureau Report Type Type Permit Number Name Address Impr Use Stories BLD10 -00708 CAPITAL BUILDERS 1938 BRISTOL DR NEW RSF 1 SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS Units Valuation 1 $180,000 Total NEW/RSF permits: 6 Total Valuation : $1,525,610' BLD10 -00705 JOHNSON COUNTY IOWA 913 S DUBUQUE ST WINDOW REPLACEMENT FOR ADMINISTRATION BUILDING BLD09 -00550 MARKETING SYSTEMS 1519 S GILBERT ST FLOOD REPAIR OF COMMERCIAL UNIT NON BLD10 -00694 DEY BUILDING L L C 8 S CLINTON ST 12 WINDOWS FOR COMMERCIAL BUILDING REP BLD06 -00378 HENRY LOUIS 506 E COLLEGE ST REROOF DUE TO STORM DAMAGE $15,000 REP NON 2 0 $274,000 REP NON 1 0 $50,000 REP NON 0 0 $15,000 REP NON 2 0 $5,317 Total REP/NON permits: 4 Total Valuation : $344,317' BLD10 -00765 BARKALOW INVESTMENT 837 MAGGARD ST REP RDF 0 0 $560 SIDING REPLACEMENT IN HISTORIC DISTRICT Total REP /RDF permits: 1 Total Valuation : $560 BLD10 -00752 JO BARNES 3395 WENTWORTH PL REP RMF 0 0 $2,500 VINYL GUARD RAILS FOR RMF UNIT BLD10 -00745 DES MOINES METRO AVIA 436 SAMOA DR REP RMF 2 0 $2,000 REMOVE AND REPLACE DECK FOR RMF TOWNHOUSE UNIT Total REP/RMF permits: 2 Total Valuation : $4,500 BLD09 -00013 MARK & NANCY MCCURD 812 NORMANDY DR FLOOD REPAIR FOR SFD 0 BLD10 -00748 PHONESAVANH SOURANN 1125 S 1ST AVE REPAIR GARAGE FOR SFD 0 BLD10 -00763 CITY OF IOWA CITY 512 N VAN BUREN ST REFRAME PORCH ROOFS FOR SFD RSF BLD10 -00777 DANIEL J DIEKEMA 611 RIVER ST REPAIR/REPLACE SIDING, DRYWALL, STUDS FOR SFD BLD10 -00728 MAUREEN A KELLEY 2 CRESTWOOD CIR EGRESS WINDOWS FOR SFD $4,000 BLD10 -00609 ELIZABETH AUBREY 35 N LOWELL ST EGRESS WINDOWS FOR SFD 0 BLD10 -00660 CHARLIE MCGUIRE 1055 BRIAR DR EGRESS WINDOWS FOR SFD 0 BLD10 -00727 JIM & STACEY SHERLOCK 2513 POTOMAC DR EGRESS WINDOWS FOR SFD RSF BLD10 -00753 DAVE & CELESTE VINCEN 1563 LANGENBERG AVE EGRESS WINDOWS FOR SFD REP REP RSF 0 0 $34,000 REP RSF 0 0 $4,526 REP RSF 2 0 $4,500 REP RSF 0 0 $4,000 REP RSF 0 0 $1,800 REP RSF 0 0 $1,600 REP RSF 0 0 $1,500 REP RSF 0 0 $1,500 REP RSF 0 0 $1,500 Page : 5 City of Iowa City Date : 1/3/2011 Extraction of Building Permit Data for To: From From : 12/1/2010 12/31/2010 Bureau Report Type _TYLe Permit Number Name Address Impr Use Stories Units Valuation BLD10 -00754 DENNIS DIETRICH 1555 LANGENBERG AVE REP RSF 0 0 $1,500 EGRESS WINDOWS FOR RSF BLD10 -00747 STEVE & DONNA DOLEZAL 3301 ROCHESTER AVE REP RSF 0 0 $1,200 EGRESS WINDOWS FOR SFD Total REP /RSF permits: 11 Total Valuation : $57,626 GRAND TOTALS: PERMITS: 55 VALUATION: $2,988,747 E '"I_,:•p4 CITY OF IOWA CITY _ ,. P9 MEMORANDUM 1 P�q k Date: January 5, 2011 To: City Council From: Rick Fosse, Director of Public Works Jeff Davidson, Director of Planning and Community Development Re: Update: Flood- related activities Engineering Division • The demolition of buyout properties continues. This includes preparing, contracting and inspecting the asbestos abatement and structure removals. Bid proposals are being requested for the demolition of an additional 7 structures. • Preparing the specifications for the Animal Shelter demolition. This work will be coordinated with FEMA. • University of Iowa conducted the Phase 1 Archaeological Survey at the proposed location for the Animal Shelter. Recommendation has been made for a Phase 1 Intensive to be completed. • The storm sewer repair project repairing storm sewer outlets affected by the flood at Prentiss Street and Sturgis Drive has been completed by Carter & Associates. Dubuque Street Elevation and Park Road Bridge Reconstruction Project • Coordinated with drainage for survey needs • City codes were requested • The first TAC meeting in Iowa City was held on December 13, 2010 • Filled out Iowa Department of "Transportation Concept Statement for local systems federal aid projects • Established design criteria for Interstates • Data coordination between HNTB, City of Iowa City, Johnson County, and JCCOG • Drafted first fact sheets for internal HNTB review • Development of the graphic identifier by HNTB and the City of Iowa City • Continued development of web site; updated URL to reflect "Iowa City Gateway" • Focus group planning document was drafted • Established design criteria for major arterials and minor roads • Submitted Concept Statement to Iowa DOT and received an EA Classification from them • Finalized Project Initiation /Early Coordination letters • Obtained hazardous materials reports • Established and approved QAQC Process • Coordination of first preliminary fact sheets between HNTB and City of Iowa City • Second fact sheets drafted for internal HNTB review • Graphic /style standards submitted to and reviewed by the City of Iowa City • Site analysis inventory and documentation commenced by HNTB January 5, 2011 Page 2 Wastewater Treatment Plant Consolidation Project • Several reports included in the planning phase of this project are in the process of being finalized. They include an Antidegradation Analysis, a 30 -year Sanitary Sewer Master Plan, a Rapid Creek Sewer Service Study, a Floodplain Analysis, and a Facilities Plan. • A working draft of the Antidegradation Analysis has been prepared by the consultant and is nearly complete. This report is part of the regulatory process and must be submitted to the Iowa Department of Natural Resources (IDNR). A 30 day public comment period is included in this process and will begin as soon as the analysis is complete and notice has been posted. This is expected to occur in mid - January. The analysis can be obtained and comments submitted through the Engineering Department. • A final draft of the 30 -year Sanitary Sewer Master Plan has been submitted for staff to review. The report includes a study of the existing sanitary sewer collection system, population projections and land use estimates for future development areas. This report outlines improvements that will be required to serve future growth for each sewer basin. • In addition to the Master Plan, a final draft of the Rapid Creek Sewer Service Study has been submitted for staff to review. This report discusses, in more detail, future growth and expansion of sanitary sewer service to the Rapid Creek Watershed (this area includes the Moss Green development). Three alternative sewer service plans were developed and a recommended alternative was identified. • A final draft of the Floodplain Analysis for the South Wastewater Treatment Plant site has been submitted for staff to review. The purpose of this floodplain study is to identify flood water surface elevations related to Snyder Creek and to recommend any necessary flood protection improvements to be included with the current expansion project. • The Facilities Plan is also part of the regulatory process and will be submitted to the IDNR once the Antidegradation Analysis has been approved. This report will include the approved recommendations submitted in the Antidegradation Analysis. This report is anticipated to be presented to Council in February, 2011. • The planning phase of this project will be nearly complete with the completion and approval of these reports. The project has not encountered any major roadblocks to date and remains on schedule. Rocky Shore Drive Pump Station and Floodgates Project Howard R. Green Company has been selected as the Engineering firm for this project. Contract negotiations are still underway. Iowa River Flood Modeling • The proposed flood improvements are being added to the existing model. Results of the modeling effort should be complete soon. Water Division River Crossings Public Works has negotiated a contract with the University of Iowa to complete an environmental /archeological study and review for the river crossing sites located at the old plant and Hwy 6. Work has commenced and a literature search should be completed by the end of the month. January 5, 2011 Page 3 Peninsula Source Protection Flood mitigation work continues. Medium voltage transformers are being set. Medium voltage tie in week at which time CW -4 will be started up. An project was given to the end or January. Water Works Prairie Park Source Protection lines and electrical switch gear and is scheduled to be completed next extension for the completion of this • HRG has begun design work for the mitigation projects at CW -1, CW -2, and the SPPS facilities. The design will be completed and sent out for bid by March 4, 2011. The expected completion of the projects is Sept. 7, 2011. PLANNING AND COMMUNITY DEVELOPMENT • Four properties were acquired in December with CDBG funds. A total of 67 residential properties and 16.5 acres of property from Parkview Church along Taft Speedway have been acquired with Federal and State funds. Of the 67 properties, 32 of the properties have been acquired through the Hazard Mitigation Grant Program (HMGP), 29 with Community Development Block Grant (CDBG) funds, and six with Community Disaster Grant (CDG) funds. A total of 52 properties have been demolished in the Parkview Terrace and Taft Speedway neighborhoods. All structures in the Showers Addition have been demolished and cleared. Iowa City was awarded and recently given final approval to use $1,362,472 in State Supplemental CDBG Disaster funds for Single Family New Construction Round 3. Iowa City will assist homebuyers, whose income is at or below 100% of area median income, with acquisition assistance to purchase newly constructed homes. A total of 31 new homes will be built in Round 3. Of the 31 new homes, 16 homes will be sold at $150,000 or less and 15 homes will be sold at $180,000 or less. These homes will be in addition to the 77 homes already constructed or under construction to replace the homes destroyed by the flood. A State Community Development Block Grant (CDBG) Disaster loan to a local housing developer is being paid back to the City. $2.6 million in CDBG funds has become available for a wide range of CDBG - eligible projects, including housing, public facilities, neighborhood or recreational facilities, economic development activities, and infrastructure improvements. On January 10, 2011 The City Council will hold a public hearing regarding amending the FY11 CDBG Action Plan to fund $1,398,000 for six public facility projects and one public service project. Later this spring, the City Council will hold a public hearing to allocate the remaining funds to housing projects. • Staff is working with the EPA Office of Brownfields and Land Revitalization on a design plan for a subarea of Riverfront Crossings. Staff is continuing to work on an HMGP application for a tornado safe room near the Public Works building in Napoleon Park. The park is heavily used during the summer. The safe room would protect park users against high winds and tornados. State Jumpstart grants for housing rehab /repair, down payment assistance and interim mortgage assistance have been closed out. Applications for Federal Jumpstart funds for repair, down payment assistance and interim mortgage assistance are still being accepted and funds are available. A total of $2.43 million in State Jumpstart funding was used to assist 88 flood- impacted residential households and $869,500 in Federal Jumpstart funding has been used to assist 18 households. The City is no longer accepting applications for the following disaster business assistance programs: Loan Interest Supplement Program, Residential Landlord Business Support Program, Commercial Rental Revenue Gap Program, Equipment Reimbursement Assistance Program, Flood Insurance Reimbursement Program, and Expanded Business Rental Assistance Program. Funding remains available for applications that were submitted before the December 31, 2010 deadline. r IP10 CITY OF IOWA C I T Y M E M 0 RA N Q U Date: January 6, 2011 To: City Council From: Marcia Bollinger, Public Art Coordinator Jeff Davidson, Director of Planning and Community Development Re: Update on amended Public Art Program During preparation of the FY11 Budget in January of 2010, the City Council made changes to the City's Public Art Program. Public Art was removed from the Capital Improvements Program budget and the $50,000 per year allocation through the CIP process was eliminated. An annual operating budget of $13,400 was established for both FY11 and FY12, plus $6,800 which was carried over from FY10. It was agreed that the Neighborhood Services Coordinator would continue to administer the Public Art Program with assistance from the Planning Director. After operating under this budget authority for the past 11 months, we would like to provide an update on what we have been able to accomplish with the revamped Public Art Program. Poetry in Public Poetry in Public has completed its eigntn year, ana continues to grow in popularity. In 2010 we received over 535 submissions from children and adults ranging in age from four to 90. This includes both amateur poets as well as poet laureates. Poems created by 34 adult poets and 50 school -aged children were selected for the 2010 program. This poetry is displayed on all City buses, at the Robert A. Lee Recreation Center, the Mercer -�- -__ Aquatic Center, and in the downtown kiosks. Poems are posted online on the Poetry in Public page of the City's website, the Daily Palette (http://dailypalette.uiowa.edu), which is hosted by the University of Iowa, the Press Citizen website, and other literary websites. We will expand our 2011 displays to include the Senior Center. Approximately $500 in printing costs were incurred, and paid for out of the Public Art budget. Poetry in Public Art Program This offspring of the Poetry in Public Program was developed in 2009 at the suggestion of one of the participating poets. Artists are encouraged to develop drawings, paintings and other two- dimensional media based on Poetry in Public poems. We received 82 submissions from 40 artists in 2010 and of those, 25 were selected by the poets. The poems and accompanying artwork were displayed in the Technigraphics window downtown during Arts Fest. Approximately $150 in printing and display costs were incurred, and paid for out of the Public Art budget. January 6, 2011 Page 2 Summer of the Arts Kidz Tent The third annual Kidz Tent was hosted by the Public Art Advisory Committee during Arts Fest in the summer of 2010. Kidz Tent provides the opportunity for children 12 years and under to purchase art at very reasonable prices of $5 and under. Participating Arts Fest artists donate items, and in 2010, over 40 artists contributed artwork to the event. We raised $492 which was donated to the Summer of the Arts Program. There were no hard costs related to this project. Poetry in Public Readings Last year, for the first time, poets whose works were selected for the 2010 Poetry in Public Program were offered the opportunity to read their poetry during Arts Fest. Thirty -one poets, consisting of 19 school -age children and 12 adults, enthusiastically read their poems at the event. There were no hard costs associated with this event. Iowa Sculpture Showcase Pad The sculpture entitled "Seed" by Iowa City artist Bounnak Thammavong was selected from several submissions for temporary display on the Iowa Sculpture Showcase pad on the Pedestrian Mall. A $500 honorarium is provided to the artist for the temporary display which will run from June 2010 through May 2011. Simple Flight Simple Flight is the sculpture created by Jason Messier of Iowa City that has been installed on the Peninsula Park Showcase pad since fall of 2009. The sculpture was tentatively scheduled to be removed, but due to public demand, we were able to purchase it and make it a permanent part of our public art inventory. The sculpture was purchased for $5,000, utilizing funds carried over from FY 2010. Kovalev Sculptures In 2010 the Public Art Program agreed to accept five carved wooden sculptures which were created by Valery Kovalev, a Russian artist who visited Iowa City in 1996. The sculptures were donated by three separate Iowa City families who commissioned the artwork during Kovalev's stay in Iowa City. The sculptures were moved from their original locations and reinstalled along the Willow Creek Trail in Willow Creek Park, where we held a dedication ceremony in November. Costs associated with this project include mounting lumber and hardware to relocate the sculptures, absorbed by the Parks Department, and approximately $600 for plaques was paid for out of the Public Art budget. January 6, 2011 Page 3 Expansion of the downtown Literary Walk into the Northside Marketplace A subcommittee of the Public Art Advisory Committee was formed to select authors and quotations to be included in the expansion of the Literary Walk into the Northside Marketplace. Six meetings over six weeks produced a draft list of prospective authors and their works, for which permission from publishers is currently being pursued. Washington Hills Neighborhood Art Project dedication ceremony will be scheduled paid out in FY10. Donation Meters The Washington Hills Neighborhood Association selected Jill Harper and her City High art students to design and install an "entranceway" art project in Pheasant Hill Park. Installation continues on the mosaic work, which includes a bench that welcomes visitors to the park, and 10 concrete plinths that line a pathway into the park. Work will be completed this spring, and a Total project costs were $16,600, most of which was in the summer of 2010 the City installed nine retired parking meters downtown to encourage people to donate spare change into the meters in lieu of giving directly to panhandlers asking for money in the downtown area. The funds collected through the parking meters, named "Donation Stations," are then distributed to human service organizations that provide support services for the homeless. Initial discussions have occurred with the Public Art Advisory Committee to utilize the donation meters as a canvas for public art, increasing their visibility, as well as providing an additional public art feature in the downtown area. Potential sponsorship by area businesses is being pursued. It is expected that a program will commence this winter /spring. Grant Wood Neighborhood Association Neighborhood Art Project The Grant Wood Neighborhood Association began discussions regarding a Neighborhood Art program. Neighborhood artist Jill Harper has committed to working with the group to fine -tune their ideas. It is expected that a final proposal will be submitted to the Public Art Advisory Committee this spring with a subsequent recommendation presented to the City Council soon thereafter. There is $10,000 budgeted annually for Neighborhood Art projects. Book Marks Although not an official Iowa City Public Art project, the Neighborhood Services Coordinator has been working on the BOOK MARKS go MARYS" Executive Committee to plan and implement the BOOK MARKS " "" project. She is also working with the Artist's Committee, overseeing communications with potential artists and collecting submissions to the program. January 6, 2011 Page 4 Public Art Inventory and Inspection A visual inspection was conducted this past fall of all existing Public Art assets and includes 18 projects comprised of approximately 141 individual objects of art. The purpose of this inventory was to determine the need for maintenance or repair. No significant issues were uncovered. Alternative Funding Source Evaluation The Public Art Advisory Committee spent some time in 2010 evaluating potential funding sources to supplement funds provided by the General Fund. Fund raising, sponsorships, and commissioning student artists for works that would provide art at a more affordable level, were discussed. A "Percent for Art" ordinance, similar to those recently adopted in both Linn County and Cedar Rapids, in which 2% of all capital project budgets is allocated for public art was also discussed. Continuing discussions may result in recommendations to the City Council for consideration. We believe we have been successful in implementing the City Council's wishes in terms of a pared -back Public Art Program during the economic recession. It is still our hope to expand the Public Art Program in the future as deemed appropriate by the City Council. Let us know if you have any comments or questions. cc: Tom Markus, City Manager Iowa City Public Art Advisory Committee neighbor /mem /publicart- updatet- 5- 1 1.doc LP �e Planner VOLUME 2, ISSUE 113 Week of December 20, 2010 Newsletter for the Iowa City Planning & Community Development Department Urban Planning I Historic Preservation I Housing Rehab I Community Development Economic Development I JCCOG Transportation Planning I Neighborhood Services I Public Art Historic Preservation Is L 7 Two UniverCity homes earn historic preservation awards Two of the homes that have been renovated through the UniverCity Neighborhood Partnership — 517 S. Governor Street and 1207 Muscatine Avenue — were recognized last month with historic preser- vation awards presented by the Iowa City Historic Preservation Com- mission, Friends of Historic Preservation, and the Johnson County His- toric Preservation Commission. Both awards were in the Residential Rehabilitation category. The homes, both former rental properties, were purchased by the Uni- verCity Neighborhood Partnership, a neighborhood reinvestment 1 revitalization program implemented by the City of Iowa City and the University of Iowa. The program purchases homes, most of which are rental properties, in neighborhoods surrounding campus, then reno- vates them and converts them back to single - family dwellings. The homes are then sold to income- qualifying applicants. The program pro- vides homeownership opportunities for individuals and families, helps balance the renter -to- homeowner ratio in the University and down- town area, and strengthens, preserves, and encourages reinvestment in older neighborhoods that surround the campus. For more information about the UniverCity program, log onto the City's website at www.icgov.org /UniverCity or visit our Facebook page at www.facebool(.com /UniverCitylA. INSIDE THIS ISSUE: Each year, historic preservation awards recog- nizo homeowners, business owners, and contractors who have under- taken preservation or restoration projects to retain the historical in- tegrity of their property. Nominations come from local historic preser- vationists as well as the general public. We're featuring some of this year's award- winners in this issue, but if you'd like to see all of the pro- jects, visit our website at www. icgov.org /historicpreservation. In the "Documents" section, select "Historic Preservation Award Winners - 2010." For more information, call Christina Kuecker at 319.356.5243 or e-mail her at Christina-Kuecker@iowa-city.org. 517 S. Governor Street 1207 Muscatine Avenue The Planner, weel< of 12.20. 10 — page 2 2010 Historic Preservation Awards I PAINT & EXTERIOR FINISHES 1217 Pickard Street Moft House Owners: Nancy Carl and Sally Moore Contractors: Pat Lohmann Jim Herd Wayne Neuzil, Classical Paint Sometimes, historic preservati completing another chapter in This year, Nancy Carl and Sall,, the exterior on their Moffit he series of projects that first got underway in 2001. This year's paint project introduced a new color to the siding, trim, and garage — with great results! 1217 Pickard Street Above left. In 2 00 1, the projects got started. Above: In 2010, after more painting, the house takes on a whole new demeanor. 2010 Historic Preservation Awards I RESIDENTIAL REHABILITATION 814 Ronalds Street Queen Anne, built in 1909. Owner: Barbara Eckstein Contractors: Lammers Construction Emmerson Andrishok Knebel Doors & Windows UP Concrete Construction Bokhoven Construction The Emil Miller family, owners of Miller Monuments, built this Queen Anne -style home in 1909, and it remained in the family until 2004. The home's second owner, Barbara Eckstein, has steadily been restor- ing the property since she bought it six years ago. Projects have included installing a new drainage system, stabilizing the foun- dation, restoring hardwood floors, installing new wiring, plumbing, heating, and insula- tion, restoring the ionic capitals and porch columns, replicating and installing all storm windows, and coating the home's original metal roof. This year's project: Repainting the exterior of the house in historically appropriate colors. 815 E.Washington Street Tudor - Revival style, built in 1926. Owner: Phi Beta Phi Sorority Contractor: Jim Niebuhr, Niebuhr Construction Built in 1926, the Phi Beta Phi sorority house featured an arched entrance to the rear parking lot — but over the years, the size and width of cars changed, making it necessary to widen the entrance without losing the integrity of the original design. Working with Niebuhr Construction, the arched entrance was enlarged and reinforced, the side retaining wall was moved and reconstructed, and the paved driveway was expanded using Purington Pavers. 814 Ronolds Street: after I .......... .... 815 E. Washington St. Above left. View of the sorority from Washington Street. Above right: The arched entrance, before (top); and after (bottom). The Planner, week of 12.20. 10 — page 3 2010 Historic Preservation Awards I RESIDENTIAL REHABILITATION 932 College Street Built in 1 926 Owner: Mark McCallum Contractor: Mike Holderness Adaptation of older structures is at the heart of any historic preservation program — and the College Hill House at 932 E. College is a prime example of the importance of this work. The build- ing was originally a sorority house that was converted to fraternity house, and later to a rooming house. It now fea- tures studio and one - bedroom apart- ments. To preserve the original ele- ments of the house, the new owner restored all the original windows, exposed brick walls, and designed spaces to work within the existing structure. Hardwood floors were installed and trimmed with traditional six -inch base. Energy efficiency was a focus — and now, energy consumption has been reduced by more than 30 %. 230 S. Dodge Street Queen Anne, built in 1892. Owner: Mark Holtkamp Sitting high on the corner of Burlington and Dodge Streets, 230 S. Dodge is an anchor to the College Green Historic District. Built in 1892, this Queen Anne has a prominent curved wrap- around porcl trade, scroll brackets, and turned posts. Its with scalloped siding and bargeboards with brackets. The house had been a rental and then sat v years until being purchased by new owner Upon learning that the house was to be co the board of Friends of Historic Preservati( from the Salvage Barn to encourage restoration of the property. 932 College Street Above: The exterior of the College Hill House. Upper. Light filters in windows of one of the unit's bathroom. Lower. A window seat and bay windows show off some of the building's unique features. The interior of the house was rebuilt with new heating, air conditioning, plumbing and electrical work, and great care was given to retaining the original millwork and hardwood floors. New energy- efficient windows were installed, and finally, the asbestos siding was removed and the original siding was restored, using material from the Salvage Barn. The house was then painted, using three colors to highlight the ornate trim and the beauty of this home. I„ 230 S. Dodge Street Top: Before renovation (left) and after (right). Left: This interior photo shows what great char- acter existed in the home — and how much work needed to be done to restore it. The Planner, week of 12.20. 10 — page 4 2010 Historic Preservation Awards I COMMERCIAL REHABILITATION Trinity Episcopal Church 320 E. College Street Gothic Revival style, built in 1871. Listed on National Register of Historic Places. Contractors: Neumann Monson Architects McComas - Lacina Construction On more than one occasion, Trinity Episcopal Church members have discussed the idea of moving their church out of downtown to a space that would better meet the physical plant needs of the congregation — and every time, they have opted to stay where they are, on the tree -lined corner of Gilbert and College Streets. Since it was built in 1871, the congregation has rearranged space and built additions to meet the church's needs. In 2009, work began on the latest projects, which included install- ing new mechanical systems; replacing the old limestone foundation; building a new sacristy and a finished undercroft that houses new classrooms, a large multi - purpose room, and other space; and repainting, among other work. A commitment was made to recycling and reusing material whenever possi- ble, and the church is now pursuing LEED (Leadership in Energy and Environmental Design) certification for the project. Trinity Episcopal Church University of Iowa Stuit Hall 335 E. Jefferson Street Italian Renaissance Revival - style, built in 1916. Contractors: Beverly Robalino Berkebile, Nelson, Immenschuh, McDowell Architects SG Construction In 1853, in an effort to prevent the University from moving to the new capitol in Des Moines, City founders donated land on the corner of Jefferson and Gilbert Streets, where the University built what was then known as the "Isolation Hospital." Later, it became the School of Music, and for the past 35 years, has provided studio space for musicians and fine arts students. In 2009, the University undertook a renovation / restoration project on the interior and exterior of Stuit Hall, which included replicating components of the old building, such as woodwork. Other elements of the project included replicat- ing and installing the distinctive multi -light windows throughout the building; removing the north entrance that was added in the 1980s and restoring the north side to its original appearance; and finally, moving the south entrance to its original position. Stuit Hall. Above: North side, after renovation. Right: An interior room, before renovation. The Planner, weel< of 12.20. 10 — page 5 2010 Historic Preservation Awards I COMMERCIAL REHABILITATION Bethel AME Church 41 1 S. Governor Street Built in 1868. Listed on National Register of Historic Places. Contractors: James L. Schoenfelder Apex Construction For over 142 years, the Bethel African Methodist Episcopal Church has provided a place to gather and worship for INNER7 Iowa City's African American community. The small white Bethel AML Church. frame church was built in 1868, with a basement added in Above left. The original church. Above: After the new addition. 1929. In recent years, faced with the need and desire to grow the congregation, members decided to expand, and built an addition onto the back of the original structure. The design of the new building mimics the roofline and simple lines of the original church. The congregation also selected materials such as a metal roof and lighting fixtures that could be used in the new building as well as in the restoration of the original church, to tie the two spaces together. 2010 Historic Preservation Awards I AGRICULTURAL REHABILITATION Henry Fellcner Barn 3130 Hwy I NE, rural Iowa City Owners: Harold and Amy Mulford Contractor: Roger Gwinnup The Fellcner Barn is historically significant because it may be one of the oldest in the county. It was built by Henry Fellcner, one of the first pioneers to settle in Johnson County. Fellcner helped develop Napoleon, the first county seat, and in 1839, built the first sawmill in the county. This business supplied most of the lumber used in building the new state capitol in Iowa City. The hewn - timber barn, which was built near the sawmill, measures 30 x 67 -feet — much larger than most barns built around that time. Restoration projects included replacing missing windows and repairing the foundation, which was bowed and crumbling. Existing foundation stones were used in the rebuild. 2010 Historic Preservation Awards I ADDITIONS & NEW CONSTRUCTION 402 S. Lucas Street Owner: Michael McLaughlin Contractors: Mike Untrauer, Untrauer's Drafting Service Mile Furman, Furman Construction The new duplex at 402 S. Lucas exemplifies how new construction can be designed to fit into the historic fabric of a neighborhood. Working with the Historic Preservation Commission, the designer, Mile Untrauer, was able to adjust his design to provide for a setback of the second entrance. This small change created the appearance of a single family dwelling for the two -story clapboard duplex. 402 S. Lucas Street: New construction in an older neighborhood. The Planner, week of 12.20. 10 — page 6 2010 Historic Preservation Awards I STEWARDSHIP 524 Park Road Tudor - Revival / English Cottage, built in 1935 Owners: Dr. and Mrs. Charles A. Skaugstad Contractors: Mark Lyons, Roof Rider Seth Bihun, Total Tree Care It seems to almost be magical, this house — positioned to overlook the Iowa River and City Park, surrounded by four acres of trees and plantings, and bordered in places with a rustic stone fence. It's one of those homes you appreciate because of the creative whimsy that was obviously at work while the home was being designed and built. The brick home, an eclectic mix of Tudor Revival and English Cottage styles, was built in 1 935 for the Patton family. The magic still remains in the house at 524 Park Road because of the ongoing commitment and care of its owners, Dr. and Mrs. Charles A. Skaugstad, who purchased this unique property in 1969 and hope to one day pass it on to one of their children or grandchildren. Through the years the Skaugstads have undertaken countless historic preservation projects, some of which have been nothing short of a labor of love. In 1974, the family worked side by side to remove asphalt from over 22,000 brick pavers that had been removed from Washington Street during the downtown renovations. After the pavers were cleaned, they were put to use as a brick driveway. The Skaugstads have also taken special care to maintain the slate and tile roofs on the house — a delicate type of repair, they said, that they have entrusted to Mark Lyons of Roof Rider. The four acres of timber and natural habitat that surround the home also have a special caretaker, Seth Bihun of Total Tree Care. For the ongoing efforts they've made to maintain and preserve this beautiful home and property, Dr. and Mrs. Charles A. Skaugstad were the recipients of this year's Stewardship Award. The Planner, weel< of 12.20. 10 — page 7 2010 Historic Preservation Awards I MARGARET NOWYSZ AWARD Alice Kurtz visits with other attendees at this year's Historic Preservation Awards ceremony. ■ LE Iffil Ill" no IPA 10�� 4d ...... -... . r �= i . 0-4.10 Alice Kurtz The Margaret Nowysz Award is named for the woman who helped spearhead the Iowa City Historic Preservation program in the 1970s and 1980s to protect and preserve Iowa City's historic homes and buildings. Alice Kurtz, a Weber Elementary School teacher, received the 2010 Margaret Nowysz Award for her efforts to incorporate local history and historic preservation into the classroom through a special teaching program she developed called "Symbols of Change." The program, she explained, focuses on "buildings and artifacts as the concrete evidence of cultural ideas and economic opportunities," adding that, "they are resources which explain the history of a commu- nity." The program integrates history, science, math, reading, and communication skills, and wraps up each year with a special art project in which the students build replicas of Iowa City buildings. Some of the materials used include a multi -media kit produced by the Iowa City Historic Preservation Commission and Friends of Historic Preservation that includes transparencies of downtown Iowa City, a walking tour of the north side, a sample oral history, puzzles, a bibliography of relevant books, and an architectural curriculum. Her program has opened up a new — and old — world to her students, and sparked real interest in our local history, and the importance of preserving it. Below. Some of the replicas of historic City buildings that Alice Kurtz's students created were on display at this year's Historic Preservation ceremony. To see photos of all 2010 Historic Preservation Award recipients, visit: www.icgov.org /historicpreservation. In the "Documents" section, select "Historic Preservation Award Winners - 2010." WHO SHOULD YOU CONTACT? PLANNING & COMMUNITY DEVELOPMENT DEPARTMENT General Phone: 319.356.5230 Fax: 319.356.5217 Department Web Page: http: / /www.icgov.org /PCD .................. ............................... ADMINISTRATION . .................. ............................... COMMUNITY . .................. ............................... JCCOG Jeff Davidson DEVELOPMENT John Yapp Director Steve Long Executive Director 319.356.5232 Coordinator 319.356.5252 jeff- davidson @iowa- city.org 3 1 9.356.5250 john -yapp @iowa - city.org Janet Dvorsky steve -long @iowa- city.org Transportation Planners: Administrative Secretary Community Brad Neumann 319.356.5230 Development Planners: 319.356.5235 janet- dvorsl<y @iowa- city.org Tracy Hightshoe brad- neumann @iowa - city.org Doreen Loring 319.356.5244 tracy- hightshoe @iowa- city.org Kent Ralston Clerk 3 1 9.356.5253 319.356.5230 Doug Ongie I<ent- ralston @iowa - city.org doreen- Ioring @iowa - city.org 319.356.5479 Kristopher Ackerson doug -ongie @iowa- city.org 319.356.5247 •••••••••••••••••• ••••••••••••••••••••••••••••••• David Purdy kristopher- ackerson@ 3 1 9.356.5489 iowa - city.org URBAN david -purdy @iowa- city.org Darian Nagle -Gamm PLANNING Housing Rehabilitation 319.356.5254 Specialists: darian - nagle -gamm@ Robert Miklo David Powers iowa - city.org Senior Planner 319.356.5233 319.356.5240 david- powers @iowa - city.org Human Services bob- mil<lo iowa -cit .or @ Y g Planning: Urban Planners• Jeff Vanatter Linda Severson Karen Howard • 319.356.5128 Coordinator jeff- vanatter @iowa- city.org 31 9.356.5242 319.356.525 I Iinda- Severson @iowa - city.org I<aren- howard @iowa - city.org Liz Osborne Christina Kuecker i Program Assistant . .................. ............................... Historic Preservation 319.356.5246 Iiz- osborne @iowa - city.org 319.356.5243 NEIGHBORHOOD christina- l<uecker@ SERVICES iowa - city.org .................. ............................... Marcia Bollinger Sarah Walz ECONOMIC Coordinator of Board of Adjustment DEVELOPMENT Neighborhood Services 319.356.5239 Wendy Ford & Iowa City Public Art Program Sarah -walz @iowa - city.org 319.356.5237 Coordinator marcia- bollinger @iowa - city.org 319.356.5248 wendy- ford @iowa - city.org N'oto from Club xt�d Hello neighbors, it's Ned. Finally, my favorite time of year! It is VERY good weather for a block dog, especially one in a double -thick fur tuxedo. I miss sniffing the big piles of leaves, but there are many tracks in the snow and I am hoping that one of these days I will get my Easter bunny after all (do not tell Ma). It must be Ma's favorite time of year, too, because she likes yelling, "Booty call for Ned, ha ha!" When it is very cold and the sidewalks are salty, Ma straps my paws into red and blue booties. She says they are a fashion statement. I say they are torture and humiliation. Ma reminds me that sometimes my paws hurt so much that I have to sit down and yowl right in the middle of the block, and who is humiliated then ? ? ? ?? So, being a Totally Good Boy, I let her put them on and she pays me with a treat. I think it should be FOUR treats, one per paw, don't you ? ? ? ?? It is also the time of year for a LOT of good things to eat. The rule is, if it hits the floor it is dog food, even if it is a dog who (accidentally!!q made it hit the floor, because whose fault is it if the coffee table is the exact same height as a wagging tail ? ?? Also, many things hit the kitchen floor when Ma is baking, so I make sure to stay very close and if my tuxedo ends up splotched with flour on the back I do not mind. I am always happy when Ma brings out my red jingle bell collar. That means we are having a party or going out to one, and either way it is good news for a STARVING dog. The best parties are the ones with many clinking glasses and bottles, bemuse eventually someone will start to sing or dance and soon the food will come raining down. When Ma starts singing and dancing with me personally, then I KNOW I am going to get lucky. 1 hope you do, too. Yappy Howlidays from your friend, Ned Leidiger, TGB 01RAL nnnoon IMTS The Longfellow Neighborhood Association will hold its Annual Meeting on Wednesday, January 19th at 7 pm in the Media Room of Longfellow Elementary School. Elec- tions of officers for the coming year will be held, as well as discussions of new business and projects. Be part of the neighborhood! Join Us at the New LNA Online Location- located at http: // groups .google.comlgroupILAfA- iowacity. Anyone can view the online content. Back issues of this newsletter and other documents also available. SS I oN Iluliod CMol "(10 Ch\Ol CllVd 3lDvISOd'S 1 G.I,s iNSNd iianaposvy pooytalg67aN .wolla0uo7 111n Du01 Jul IP12 TT T�[ 'LOnutLLOW Hr16tlD0R 7A SS0CIAT10n 11t! rTT1 R htt p :i /groups.google.com /groupiLNA- iowa -city lowo City, lawn December 2010 Snowbound and slumberitiZ, the Loggfeltoiv Nature Trail can still surprise with a bounty o(its own... UHTER ALONG THE HATURE TRRIL j Queen Anne's Lace. Uar s caroler IEj About knee to waist -high, n summer white lace }'flower clusters to inter radian g1 et .talks rese,rhle ribs of ant h lla: this is the an io >i and n ea r. t : the, ore a fcaora,lo al l black swa11 owrm1 buti,11 es_ ie horse Mint,dfmurd sndo,A In winter about knee to w lr I high, insummer1— duang� star -burst radiating clusters ollubutar, lavender flowers In winter. dried flower,laaereli make button -hke mounds an brunch - tips, ifli- < ,,,hid, tire flower c6tsler. smell like Earl Gres sea. /r ' � White Pine. Pines strobus A large, evergreen tree growing as fall as 210 feet. An nnporrant lumber product in the northeast. Produces long .v rt needle-like leaves to grot p Hive; its cones have thin „fle hle scales often tipped with whitish resin older neighborhood trees are a favorite roost rif Barred Owls_ Seutch Pine, Pines srlvesIt,, Everhaeen tree grows m 30 H; native to Europe where it is on imporruni lumher resource, sit# needle -like leaves are produced in pairs; cones are ooh 2 -3 inches long, usually remaining attached to the tree over winter. Suggested with notes by Jeff Schabilion Cup Plant .V/phium 1— tiitlotum li tialh, 3 to 6 f et tall, leaves appearing in pans with their _(used huses fanning a cup around the stem; .stems h longitudinal ridge., wh ;d makes the stem appear square to _,"Cho n, _flowers ure a courite of hg­ 5. /tat, papery its is are u f a,owe of the Goldfinch, lower S state bird Nature in winter, especially in Iowa, is a subtle time of year, one in which the green and ample abundance of summer is replaced by shades more subtle and forms quiet and restrained. ]lot even the bare bones of summer's growth can be sources of winter beauty, best appreciated against the white blanket of recent snowfalls. Even at this time of year, we can take time to notice and admire Nature's handiwork as it waits the coming of warmer times. Here then, q is a sampling of some of the plants we may see �. along the Prairie Walk. j Queen Anne's Lace. Uar s caroler IEj About knee to waist -high, n summer white lace }'flower clusters to inter radian g1 et .talks rese,rhle ribs of ant h lla: this is the an io >i and n ea r. t : the, ore a fcaora,lo al l black swa11 owrm1 buti,11 es_ ie horse Mint,dfmurd sndo,A In winter about knee to w lr I high, insummer1— duang� star -burst radiating clusters ollubutar, lavender flowers In winter. dried flower,laaereli make button -hke mounds an brunch - tips, ifli- < ,,,hid, tire flower c6tsler. smell like Earl Gres sea. /r ' � White Pine. Pines strobus A large, evergreen tree growing as fall as 210 feet. An nnporrant lumber product in the northeast. Produces long .v rt needle-like leaves to grot p Hive; its cones have thin „fle hle scales often tipped with whitish resin older neighborhood trees are a favorite roost rif Barred Owls_ Seutch Pine, Pines srlvesIt,, Everhaeen tree grows m 30 H; native to Europe where it is on imporruni lumher resource, sit# needle -like leaves are produced in pairs; cones are ooh 2 -3 inches long, usually remaining attached to the tree over winter. Suggested with notes by Jeff Schabilion Cup Plant .V/phium 1— tiitlotum li tialh, 3 to 6 f et tall, leaves appearing in pans with their _(used huses fanning a cup around the stem; .stems h longitudinal ridge., wh ;d makes the stem appear square to _,"Cho n, _flowers ure a courite of hg­ 5. /tat, papery its is are u f a,owe of the Goldfinch, lower S state bird Longfellow Neighborhood Association Annual Meeting Scheduled The Longfellow Neighborhood Association will hold its Annual Meeting on Wednesday, January 19th at 7 pm in the Media Room of Longfellow Elementary School. Elections of of- ficers for the coming year will be held, as well as discussions of new business and projects. As the New Year dawns, neighbors are encouraged to participate in the work of the neighborhood association, whose goal is to improve the neighbor- hood for everyone through important projects and activities. In addition to the production of The Long View newsletter you are reading, the neighborhood asso- ciation has sponsored Public Art fund applications leading to things like our neighborhood historic signs and pub- lic sculpture. PIN Grants applied for by the LNA board funded improvements to the Longfellow Nature Trail and bike trail, and paid for some of the food at the Clark Street Block Party. PIN funds have also been used to help low and moderate income households in the neighborhood to replace sidewalks squares that have been marked by the City, plant trees in numerous areas of the neighborhood, purchase and install the plaque on the Summit Street Bridge, and plant daffodils at various corners throughout the neighborhood. The LNA plans The Annual Garden Walk, Artist Studio Tours and other special events. These are the sort of things that led This Old House Magazine to declare the Longfellow Neighborhood one of the continent's 50 finest neighborhoods in 2010. There are many new projects in con- sideration, such as the development of a community garden, expanded nature trail ideas, more public art, and other neighborhood improvements we can seek funding through grants available from PIN and other sources. The LNA works for the whole neighborhood, but in order to do that well, it needs as much participation from as many parts of the neighborhood as possible. Get involved! Attend the Annual Meeting and see what you can do! What is a PIN grant? The Program for Improving Neighborhoods( "PIN ") grant are funds allocated by the City Council to organized neigh- borhood associations to help make improvements in their neighborhood. Neighborhood associations often learn through their meetings, neighborhood contacts, etc. that there are improvements that could be made in the neigh- borhood that are not necessarily the responsibility of the City or the neighbors, but would benefit the neighbor- hood regardless. The goal of the PIN grant is to provide the neighborhood associations the financial resources to affect their future as well as provide a focus for neighborhood to operate. The PIN grant is designed, allocations recommended and monitored by the Neighborhood Council; representatives of any interested neighborhood associations. PIN grant funding recommendations are made to the Iowa City City Council who officially allocates the funds. How much money is available? The Iowa City City Council has recently allocated $14,888 annually for the PIN program. All organized neighborhoods are invited to apply for the PIN funds. There are no limita- tions on the number of applications that can be submit- ted by one neighborhood association. There is a maximum grant amount of $5000. What kind of projects can be funded? The PIN grant funds can be used on many types of neighborhood projects. This can include a neighborhood - wide project or a specific improvement to a common area within the neighborhood. Here are some ideas: • tree planting, landscaping improvements • welcome signs, neighborhood names • educational information about historic nature of neigh- borhood, notable features of neighborhood • park improvements or acquisitions • creek cleanup /stabilization or trail development • neighborhood service projects; supplies to paint, repair or maintain the home of elderly or low income neighbors • expenses related to activities, workshops, tours, grand openings, dedications, etc. Are there any restrictions? Very few ... your neighborhood association must be or- ganized and the decision of what should be applied for through the PIN program must come from the entirety of the neighborhood. This can be accomplished through neighborhood meetings, neighborhood newsletter surveys, or door -to -door surveying. The PIN application will ask that the neighborhood document the support of the neigh- borhood for the particular grant request. Funds cannot be used for continuing operational or maintenance cost as the ongoing availability of these funds is uncertain. For a complete grant description and application, con- tact Marcia Bollinger, Neighborhood Services Coordinator at 319- 356 -5237 or Marcia - Bollinger @ iowa- city.org. IOWA CITY SNOW EMERGENCY ORDINANCE Don't Get Towed! When an Iowa City Snow Emergency is in effect, on- street parking will be restricted so that snowplows can get streets cleared. Vehicles parked on the street in violation of the ordinance can be ticketed $50 and also towed. For More information on snow emergencies and what you need to do, visit: www.icgov.org /snow To sign up for snow emergency alerts, or to find out when a snow emergency is in effect: • subscribe to email and /or text alerts at www.icgov.org/ subscribe /MediaReleases /SnowAlertNoti fications • follow us on Twitter.com /ICSSnowEmergency • call our snow line: 319-356-0100 • stay tuned to local radio, news and TV including City Channel 4 • Look for the Snow Emergency graphic on our home page at www.icgov.org When will a Snow Emergency be declared? • When weather and road conditions merit, the City Man- ager's office will declare a snow emergency in Iowa City. • There will be a minimum of 4 hours notice before en- forcement begins. • If declared after 8:00 p.m., it will go into effect at 8:00 a.m. the following day. • Time and day for both beginning and end of the snow emergency will be included in the initial declaration. The minimum duration will be 48 hours; however, the end- ing time and date can be amended if necessary because of weather conditions. • The transition time between the first and second day of a snow emergency is from 12 midnight until 8:00 a.m. TE LOI] ILLOW fl[J DORHOOD ASSOCIATIN DOARD: President: Ann Khan Vice President: Will Thomson Treasurer: Alison McGoff Secretary: Jeanette Carter Nature Trail Plantings Coordinator: Jeff Schabilion Newsletter Editor: Will Thomson The Long View is issued by the Longfellow Neighborhood Association. The Office of Neighborhood Services of the City of Iowa City prints and pays for postage and main- tains the address list, but is not responsible for the quality or content. Newsletters must meet city - approved Neighbor- hood Guidelines. Content is considered intellectual proper- ty and may only be borrowed for attributed non -profit use. Enforcement of the second day of a snow emergency does not begin until 8:00 a.m. And While We're About It.... Please remember that it is not permitted to remove snow from private property to City right of way. If driveways and parking lots are being cleared, snow must either be hauled away or stored on the private property. The snow cannot be pushed onto right of way, pushed across a street or stored on public property or right of way. If a commercial snow removal contractor is hired to remove snow from a property, please remind them that they cannot remove the snow from the private property onto City right of way. ANNOUNCEMENT There is currently an opening on the Board of Adjustment http: / /www.iowa- city.org /icgov /apps /boards /mem- bers.asp?id=10 for a term beginning January 2011 and ending December 2016. This is a perfect opportunity to get involved in decision making regarding land use issues/ development that requires variances and special excep- tions - typically in an existing neighborhood /area. The deadline for applications is Wednesday, January 5 at 5:00 PM. Application forms are available at: http: // www.icgov.org /default / ?id =1564. If you have specific questions about the Board of Adjust- ment, contact Sarah Walz at 356 -5239 or at Sarah- WalzC> iowa- city.org. filopp New gear to tb�z, Long f v_llow N�_,i8bborbood! City of Iowa City - News & Headlines 1 01-06-11 :1P1 3 Citizen Service Center I News I E- Subscriptions I Jobs I Calendar Search our Site search... go A -Z Index I Residents Government I Business I Visitors City, Iowa ICgov.orq Home Citizen Service Center News Other Sources Sales Tax Referendum E- Subscription Jobs Calendar Environmental Initiatives Stimulus Transparency Disclosure Census 2010 Online Services Departments /Divisions Non -City Links Photo Gallery Newcomers Guide Boards & Commissions Frequently Called Numbers Maps Construction Projects Volunteer Opportunities Document Downloads Large File Upload Contact Us Why the Redesign? How to Use Our Website Web Policies Employee Resources Snow Emergencies ICgov.org Home » News [ Print this pagel c Back to News Releases News Releases Originally posted on Wednesday, January 05, 2011 at 10:06:43 AM AUDITOR'S REPORT RELEASED FOR THE YEAR ENDED JUNE 30, 2010 Eide Bailly LLP, Certified Public Accountants, have released an audit report on the financial statements of the City of Iowa City for the fiscal year that ended June 30, 2010. The report shows that City revenues for FY10 totaled $153,855,000, while expenses for the year totaled $118,649,000. Sources of revenue included $49,467,000 in property taxes, $38,192,000 from operating and capital grants and contributions, $3,077,000 in interest and investment earnings, and $43,331,000 in charges for services. Expenses included $42,218,000 for business activities, $19,955,000 for public safety, and $16,913,000 for community and economic development. Comprehensive Annual Financial Report The City's Finance Department has also submitted its Comprehensive Annual Financial Report to the Government Finance Officers Association of the United States and Canada (GFOA) for consideration for an award of excellence. The Certificate of Achievement for Excellence in Financial Reporting, the highest form of recognition for state and local financial reporting, has been awarded to the City of Iowa City for the past 25 years. Copies of the Comprehensive Annual Financial Report and the auditor's report are available for review in the Iowa City Public Library at 123 S. Linn Street or in the City Clerk's office at City Hall, 410 E. Washington Street. The documents are also posted online at www.icqov.orq /cafr. For more information, contact Robin Marshall, City Controller, at 319.356.5085 or e-mail robin- marshallia7_iowa- citv.org. Originating Department: Finance Admininistration Contact Person: Robin Marshall, City Controller Contact Phone: (319) 356 -5085 Back to News Releases This page was last updated: 1/5/2011 10:06:43 AM A -Z Index I Residents I Government I Business I Visitors Citizen Service Center I News I E- Subscriptions I Jobs I Calendar Contact Information I Web Policies I City Employee Resources Copyright ©2006 -2011 City of Iowa City 410 E Washington St., Iowa City, IA 52240 Phone (319)356 -5000. http: / /www.icgov.org/ default / apps /GEN /news.asp ?newsID= 6845 &page =1 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 1 of 12 MINUTES OF THE JOINT INFORMAL MEETING OF THE JOHNSON COUNTY BOA IP14 OF SUPERVISORS AND THE CRIMINAL JUSTICE COORDINATING COMMITTE OCTOBER 6, 2010 TABLE OF CONTENTS Page Report from Alternatives and Treatments Subcommittee ............................ ............................... 1 Report from Public Information /Outreach Subcommittee ............................ ............................... 2 Report from Facilities Subcommittee ......................................................... ............................... 4 Negotiations with General Services Administration ......................... ............................... 4 Hiring Consultant to Create Preliminary Design ............................. ............................... 6 Novak Design Group Architect Jim Novak .................................... ............................... 6 Uses of Existing Courthouse and Jail ............................................. ............................... 6 SchedulingMeetings .................................................................... ............................... 6 Report from Funding /Grants Subcommittee ............................................... ............................... 6 Additional Comments from Criminal Justice Coordinating Committee Members .......................... 6 SetNext Meeting Date ............................................................................ ............................... 6 Chairperson Stutsman called the Johnson County Board of Supervisors to order in the Johnson County Health and Human Services Building at 4:31 p.m. Members present were: Pat Harney, Terrence Neuzil, Janelle Rettig, Sally Stutsman, and Rod Sullivan. Criminal Justice Coordinating Committee Members present were: MECCA Director Ron Berg, Iowa City City Council Member Connie Champion, County Attorney Janet Lyness, Bar Association Representative James McCarragher, County Sheriff Lonny Pulkrabek, District Court Judge Doug Russell, Citizen Representative Professor Emeritus John Stratton, Consultation of Religious Communities Representative Dorothy Whiston. Also present were: Mental Health/Disability Services Director Kris Artley, Facilities Manager David Kempf, County Auditor Tom Slockett, and Former University of Iowa Campus Planner Larry Wilson. Staff present were: Executive Assistant Andy Johnson and Auditor's Office Recording Secretary Nancy Tomkovicz. REPORT FROM ALTERNATIVES AND TREATMENTS SUBCOMMITTEE County Attorney Janet Lyness said the Alternatives and Treatments Subcommittee does not really have a new report, but they need the Criminal Justice Coordinating Committee (CJCC) to figure out if Juvenile Court Services needs to be in the new facility. Lyness suggested that to keep down costs, Juvenile Court Services can remain in its present new location in the Health and Human Services (HHS) building. There are a lot of reasons to keep it separate from the Courthouse, and she thinks this is an easy decision to make; Juvenile Court Services does not need to move into the new facility and pay more money for it. Lyness said the Alternatives and Treatments Subcommittee is still working on a specific report. They have been looking at whether there is adequate space, and Lyness would like to meet with Novak Design Group Architect Jim Novak to discuss this further. REPORT FROM PUBLIC INFORMATION /OUTREACH SUBCOMMITTEE Bar Association Representative James McCarragher said the Public Information/Outreach Subcommittee has developed the CJCC Planning and Objectives document, which was distributed to the CJCC, and which he thinks was adopted by the CJCC, and that is in the final stages for presentation. http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 2 of 12 The Subcommittee was going to address the Johnson County Jail and Court space needs in a brochure highlighting the ten frequently asked questions. However, after discussing this, they decided they wanted to do two things: make it more open- ended, and not limit themselves to ten questions and answers, and get back to using the slogan "Safety, Security, and Space." McCarragher referenced a document handed out to CJCC members titled with this slogan. These are just drafts for consideration and the Public Information/Outreach Subcommittee would welcome any comments. The actual wording of the document isn't being submitted for final approval at the present time because they would like input from the full CJCC. McCarragher said the Public Information/Outreach Subcommittee was instructed to put together information regarding why the justice center should be located downtown. He referenced another handout that outlines these reasons, and also outlines how this information could be presented to the public. The Public Information/Outreach Subcommittee also welcomes any comments from CJCC members. Once this is approved, the Subcommittee would propose that it be posted on the County website and distributed to the public. McCarragher said the last thing the Public Information/Outreach Subcommittee was instructed to do was to check with the Auditor's Office for potential election dates in both 2011 and 2012. He said that City of Iowa City (Iowa City) Chamber of Commerce Vice President and Director of Public Policy Rebecca Neades worked on that, and the 2011 dates given to McCarragher for when a special election could be held were March 1, May 3, or August 2. Another option would be the General Election, which is November 1, 2011. He said that Neades indicated that the Board of Supervisors would have to make that decision and actually call for the election, because it is a general County purpose bond issue. The possible election dates for 2012 would be March 6, May 1, or August 7. The 2012 General Election is on November 6. In addition to those dates, this bond could be brought up together with any City election or issue, with the caveat that it may create confusion by combining City and County issues. Rettig said she does not think it can be on the General Election ballot. They would be combining ballots of different issues into one. She asked County Auditor Tom Slockett if a bond referendum for a county -wide vote could be put on a City Council election on the first Tuesday of November. Slockett said yes. Sullivan said the General Election is not always the first Tuesday of November, isn't it always the first Tuesday after the first Monday of November. Slockett said correct. Sullivan said November 1 can never be an election day; the election would have to be held on November 8, right. Slockett said yes, because the General Election has to be the first Tuesday after the first Monday of November. Sullivan said that the 2011 General Election will be on November 8. Rettig said there is no problem with combining a county -wide initiative on a City Council ballot. Slockett said that is allowed by law. A school election would be a problem. Rettig said she thought that was the reason the special election couldn't be held in November. Slockett said it was because of the timing and the papers weren't filed sufficiently before the election so they could be synchronized with the filing date for the General Election. It was a timing problem, not the fact that it was a City and County election. Neuzil said the main thing right now is to have those dates in mind. They can easily eliminate dates in 2011 up to the General Election. He thinks it is fairly unrealistic that something would be ready to go, language and all, by August 2, 2011. The main thing they wanted to find out is if it was eligible for the General Election of 2011, which it is. It is probably more realistic to look at November 2011 or dates in 2012. Stutsman asked McCarragher who the Committee members should send feedback to regarding the http: / /www.johnson- county.com /auditor /min/2010_10_06_inf _ j.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 3 of 12 documents he distributed. McCarragher said feedback can be emailed to him and he will incorporate it into a working document. Hopefully by the time the CJCC next meets, he will have gotten enough feedback to submit the documents for final approval. The documents would then be placed on the County website. Neuzil said the Public Information/Outreach Subcommittee is scheduled to meet on October 25, 2010, so if they could have suggestions by then it would be helpful. Stutsman said it would also be helpful to receive the updated documents before the next CJCC Meeting and Rettig asked for an electronic copy. Iowa City City Council Member Connie Champion said she would like to add to the section on better access that a downtown location would provide better access for visitors to the Jail. She said the current document doesn't address that. McCarragher said this document addresses Courthouse safety, security, and space deficiencies. They will be adding one for the Jail. Harney said maybe it should be stated somewhere that with Iowa City being the County Seat, the Courthouse should be situated in Iowa City. McCarragher said that point was on one of the drafts. The language was thought to be too pointed, but if CJCC members think it is a good thing to add, he invited suggestions and said it can certainly be added. McCarragher said that the Public Information/Outreach Subcommittee will next be working on a couple of documents. One is Courthouse safety, security, and space deficiencies, and another is on Jail safety, security, and space deficiencies, and finally another document on efficiencies that could result from a joint justice center. They have already produced at least one working document on the Courthouse safety, security, and space deficiencies. Their goal is to tie everything to the slogan "Safety, Security, and Space." They think it would be a better way for the public to recognize the information and a better way for it to be organized and presented to any organization requesting information. County Sheriff Lonny Pulkrabek said he has some concerns about how the Courthouse issues are being presented. He worries that pointing out the Courthouse's inefficiencies and using the word "tragedy" might give someone ammunition. The Committee wants to choose their words carefully, so they don't expose the County's weaknesses. He thinks Lyness might have something to say about it. McCarragher said he sent a draft of this to Lyness and spoke with her about this. That is why this document is still a draft. Stutsman asked that the word "draft" be written on the document until it is final. McCarragher agreed that this document is in draft form and he invited individuals to write the word "draft" on their copies. REPORT FROM FACILITIES SUBCOMMITTEE Negotiations with General Services Administration Harney said the Facilities Subcommittee had a conference call on September 28, 2010, with U.S. General Services Administration (GSA) representatives. There were three or four individuals in on that conference call and they discussed the proposals. He said that Executive Assistant Andy Johnson sent out a synopsis of the conversation and asked Johnson go over that in more detail. The conversation wasn't what the Subcommittee had anticipated in terms of time lengths and getting the cooperation they needed. He said GSA representatives said the process might even take up to seven years because there are no provisions within GSAs guidelines to allow for the exchange of a facility. Johnson said there was a memo sent along with the agendas and he will pass out diagrams of the Johnson County /GSA Site Analysis. The main thing learned was that GSA representatives said this was not in their best interest. He said GSA has to come out ahead in any proposed deal and Johnson wasn't clear that this was statutory. He thinks it was to get through all of the layers of approval. In previous http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 4 of 12 conversations, GSA representatives had indicated they were interested in Option #3, which almost trades space for space, with the County building GSA a new parking lot and the County receiving the northern third of the block. Johnson said that when the Subcommittee had talked to GSA representatives, they had given the Subcommittee a heads up that they were actually looking at Option #4, which involves the County building a two level ramp on the southern third of the block. He said GSA would still want the same amount of land so they would have the ability to build a building in the future, although they don't anticipate that for a long time. GSA would have to have that option available, though they would be open to entering into a long term lease or arrangement with the County for surface parking on that piece of the property. Johnson said that even if the County agreed to Option #4, GSA representatives indicated that their approval process takes three to five years. The Subcommittee asked if there were other options. Johnson said Option #3 is not quite a land for land trade; the County would be getting a little bit more than GSA would be getting. The Subcommittee representatives asked if Option #3 would be a possibility if it was made exactly square foot for square foot. He said the GSA representatives said the Subcommittee could come back with their best proposal, understanding that GSA needs to come out ahead. He outlined everything GSA would want with that proposal. Johnson said something GSA representatives found to be an issue with Option #3 was that the parking becomes further away from their facilities. From GSA's appraiser's perspective, some of the property they would gain on the Capitol Street side is not appraised as highly as the property on Clinton Street. Those were several factors that went into GSA's consideration. Johnson said it is clear that any negotiations with GSA are going to take a long time. The recommendation of the Subcommittee is to move forward on seeing what the possibilities are with the property the County currently has, assuming and working toward the vacation of Harrison Street as part of that. Another recommendation is to set up a meeting with Federal legislative staff to see if there is anything that can be done to move the GSA process along more quickly and away from the position that they have to come out ahead. The Committee could also possibly prepare another proposal for GSA that would involve exact land for land trade. There could also be a meeting with the University of Iowa to see if there is any possibility for the County to gain space around the current Jail, or to trade space across from the Courthouse on Capitol Street. Rettig referenced proceeding with making the best possible offer to GSA. The cost of the new parking lot, including resurfacing, needs to be calculated into that. She said GSA is going to have to put money into the parking lots that they have, which are becoming rather blighted. She doesn't know how long Iowa City wants GSA to sit there with bad parking. GSA will need to put money into their parking lots in the next several years, so whatever the County would come up with, which may be their best offer, should have that cost calculated into it. Champion said that is a good point. Stutsman asked Facilities Manager David Kempf what he estimated the cost to the County would be to build that ramp. Kempf said, at $10,000 per space for a two -level ramp, the cost would be $2.5 million to $3 million, depending on exactly how many spaces GSA gets. Adding to that the cost of acquiring the houses on the western side makes the north third of the block pretty expensive. Stutsman said to answer Rettig's question, she was on the conference call and got the sense that GSA wouldn't consider that into the equation, as far as what they were going to pay for maintenance and what the County would be saving them. GSA was just interested in the land and making sure that they came http://www.johnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 5 of 12 out favorably in any negotiations. As GSA put it, they have no interest in this; the County is the one that has something to gain from this, not GSA. Rettig said the County wouldn't be in this mess if the University of Iowa would sell them some land. She wants it on record, in a written letter that the University says no. Then she wants GSA on record, in a written letter that says no. She thinks the County should put out their best offer, and if they are told no, they are told no. She doesn't want to dismiss it just because the County thinks GSA and the University might say no. She has been told that the University won't sell the County any land, but she has yet to see the letter that says that. Kempf said that Rettig brought up two very good things. During the Facilities Subcommittee Meeting, none of the members ever talked about not pursuing it with GSA in one form or another. The determination was that whatever the County does with GSA is going to take time. The Subcommittee also discussed the need to have a meeting with the University to present some proposals to them. Sullivan said the response from GSA was somewhat disappointing. A lot of people have said that it can be done without GSA. He thinks that is true, and that there is room to do something without GSA. He is concerned about where that puts the County in the future. They don't want to have this issue come up again in 10 years. That is what happened the last time the County built a jail. He gets concerned how this will look when they start talking about the need for a 400 -bed facility or something like that. It is something the CJCC needs to get a handle on and decide if there is an ability to expand without GSA. The County could continue to work with GSA from this point forward saying in the future, the County would like to have some more land. However, there would still be no guarantee. Lyness said earlier they were talking about the possibility of trying to talk to GSA about where the current Jail is. It seems like buildable space is a requirement from GSA, which is why they don't like the one -third option. Perhaps that could be negotiated for, because the County certainly has that space that they could either use for their own future expansion or see if GSA is interested in that spot. That might be a different approach to take, and GSA would clearly have a buildable area and may give the County a little bit more of the current lot. Harney referred to what Kempf said about the ramps. He has done research with the architects and learned that the first two levels of a ramp cost about $10,000 per space, and when the structure builds to three or four levels, the prices jump to around $15,000 per space. Kempf said yes, absolutely. Johnson referred to Lyness' proposal and said they would have to have some information from the City Assessor. GSA had clearly gotten information that the property to the west was not as valuable as the property to the east. He doesn't know if that would be true of the Jail property as well. Harney said the disheartening fact of that was that GSA representatives mentioned more than once that they want to come out ahead on the deal. It is not an equal exchange. Stutsman said the GSA is a different kind of group than the County is used to dealing with. Champion asked what the possibilities are for future expansion without that lot. She agrees with Neuzil that they don't want to build a jail that can't be expanded. Harney said he isn't an architect, but if they could get the City to close Harrison Street and utilize the back part of the Courthouse properly and work up to Clinton Street, there would be plenty of room for expansion beyond what they need now. He doesn't know how many years that will be sufficient. Neuzil said parking is another part of that equation. Sullivan said those are questions they will need to ask the professionals to answer. Champion asked how much parking the justice center will need. Sullivan said they are going to ask Iowa City for some sort of waiver for the parking requirements in the Code, because it will be almost impossible to meet those requirements. http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 6 of 12 Harney said that in talking with Iowa City Planning and Community Development Director Jeff Davidson it sounded like the County could approach Iowa City about utilizing parking ramp space and things like that that might help offset the parking spaces required for the justice center. Champion said that is basically what the Iowa City /Johnson County Senior Center is doing. Sullivan said that the County will obviously have to provide parking for squad cars and judges, but somebody who has business at the Courthouse may have to use the couple thousand parking spaces within a couple blocks of the Courthouse. Champion agreed. She asked if the County has to provide parking for its employees. Sullivan said they could potentially say that employees have to park at the HHS building parking ramp. It is a couple blocks away, but it is an option. Champion said her gut reaction is to forget the GSA lot; it sounds hopeless. They can't afford to give GSA the world. If there is another way for the Committee to do what they have to do, then they should get busy on drawing up other plans and moving forward. It might even take longer than seven years to work with GSA. Stutsman said the thing about it is that there is no guarantee that after three to five years that GSA will agree to this. Champion agreed. The Committee has talked about this for long enough. They should move forward on something that will work. Rettig thinks it works better if they already assume they will reutilize the current Jail building, not necessarily as a jail. That gives the County a lot of space there, including the space around it. Regardless, the County would need the rest of the houses in the neighborhood. Stutsman said right. Champion said the County could buy those. The thing about using the Jail is that it is important to people. They won't want to see it sold. She referenced the Iowa City Public Library. The building was reused, but a new library was built. It helped the bond referendum pass. It will be an asset when the Committee is trying to sell the idea of the justice center that they are not going to rebuild space they have, but reuse it. Stutsman said that is a good point. Neuzil said that ultimately, the Committee needs experts to identify if the County can build a facility for their present and future needs without GSA. They need to know if they have to use the existing Jail, or if they have to go five stories behind the Courthouse which will probably change the aesthetic. There are things that will have to be thought of differently considering the current story with GSA, such as the aesthetic and potential and what it means for the current Courthouse. Stutsman asked Harney if the Facilities Subcommittee needs anymore feedback from the Committee. Harney said he would like to have some direction. He asked if the Facilities Subcommittee should provide several more proposals to GSA or if they should tell GSA that they are no longer interested and move forward. Champion said she would send a proposal or a letter. Consultation of Religious Communities Representative Dorothy Whiston said she thinks they want to get GSA's response in writing. Kempf said that at the very least, he thinks they should offer GSA an equal land for land proposal. He thought that the additional land the County was receiving in Option #3 was offset by the improvements they would be making to GSA's parking conditions. He thinks that needs to be stressed more in the proposal. He thinks the County should continue to negotiate with GSA to see if they can somehow end up with some of that land for future needs. The County may not be able to plan and build on it today, but 20 years from now it might be a wonderful 80 -foot strip of land to have on the north side of Harrison Street. He suggests continuing the conversation with GSA. Rettig said it can't hurt to make GSA an offer and see where that leads. Champion said if GSA wants to build, they can build where the Post Office is now. Most of it is empty. Kempf said that GSA said they have no plans in the near future to build anything. Harney said http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 7 of 12 GSA wants to preserve the location in case they need it years down the road. Hiring Consultant to Create Preliminary Design Harney asked if the CJCC wants to move forward and put out a Request for Proposal (RFP) to hire a consultant to create a design of what the justice center would look like without the GSA property. It is hard to design something without knowing exactly where it is going to go. Champion said she would give up on GSA. She would send them a letter, but they can't wait another seven years to move forward with this. Kempf said the Subcommittee asked Novak to come up with a proposal that would give block space schematics and a vision of what the facility could potentially look like. He thinks Novak is here tonight to present a proposal. Kempf thinks the CJCC is very near the time to move forward with a Request for Quotation (RFQ) to hire an architect for the schematic design phase. That would provide everything needed to put the project out to bid. Now might be a time to listen to what Novak is proposing. Novak Design Group Architect Jim Novak Novak said the Novak Design Group (Novak Design) developed the program on the proposed justice center. Over the past three and a half weeks, at Novak Design's risk, they have been evaluating the program relative to the existing site without the GSA property. They have determined that the County could build the building on the Courthouse site without any GSA property. They are suggesting the CJCC consider a possible design on that site. Novak Design is confident that they can provide the appropriate building on that property without using GSA property. Novak thinks the CJCC wants to get this done as reasonably as possible, concerning cost, so Novak Design put together a cost estimate for fees. Novak referred to a handout stating costs for the schematic design. He said this is only about 20% of what schematic design would cost. The first thing Novak Design would do is evaluate and refine the existing program needs. He wants to talk to staff in different departments, who were involved with this before and during this process, concerning the location relationships of their spaces. For example he would talk with the Sheriff about the number of jail cells. Novak said the second thing Novak Design would do is evaluate the existing Courthouse for possible uses. They think they know what those uses are, that they are appropriate uses, and that they would be preserving the ceremonial courtroom in the Courthouse. The next thing they would do is evaluate different site options and within that would be included an evaluation of Option #3A, which is a square foot for square foot exchange with GSA. In addition to that, they would evaluate the University of Iowa property to the west of the Courthouse. Novak said they will create a color -coded floor plan of each floor of the new building and the existing Courthouse. He thinks this would help sell the bond issue, so people knew what and where everything would be. If any other options would need to be refined, Novak Design would charge hourly for the work. The final thing they would do is create exterior elevations of the new building and two rendered perspectives, with one view from the northeast and one view from the southwest. This would give the public a view of what the new justice center will look like, as well as the exploded view floor plan, which will give a perspective of what will go where. The total cost of those services is $74,000. Novak said in the original Durrant Group study, typical schematic design for a project this size is about $400,000. He thinks Novak Design will be able to give the County everything they need for the bond issue at a reduced cost. http://www.johnson-county.com/auditor/min/201 01 0_06—infj .htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 8 of 12 Rettig said she didn't see anything in this proposal that did an evaluation or color -coded exploded view of the existing Jail. Novak said they would be taking that into account. There are a lot of storage requirements in the Courthouse, and maybe something like the existing Jail would fit into that program. Perhaps the existing Jail could be used for that. Rettig said that is pretty high priced storage. She isn't willing to concede that the existing Jail couldn't be used for some sort of office space or something else. The current price of $50 million is a lot of money, so she would be looking for other available options and to reutilize space. Novak said they would certainly look at that. Sullivan asked if that would be an additional expense. Novak said no. Sullivan clarified that it would be included with the Courthouse review. Novak said absolutely. Rettig said they are not required to put out an RFP for something over $100,000 and asked Lyness if that is true, or if it is $50,000 for contracts. Lyness said she thinks this situation would not require one, but she would have to check into that. Kempf said he thinks there is a provision that for any architectural services, the County doesn't have to put that out to bid. Stutsman said if the CJCC works with Novak Design, they wouldn't have to do an RFQ at this point. Kempf said no, this would give the CJCC enough information to move forward with towards a bond referendum. This will not give the County plans that they can build off of. It will show blocks of space, but not specific locations for courtrooms for example. It will show the assigned square footage for the areas. If they want to go to a schematic design, then they need to move forward with an RFQ for the selection process. If the CJCC chooses to have Novak Design do this project, it is with Novak's understanding that when the County does the RFQ for the design purposes, Novak has to compete for that just like everybody else. Rettig asked if Novak Design's schematic design would be proprietary at that point, or if the County would own it. Novak said the County would own it. Sullivan said that typically they would expend some architectural money, and then there would be a bond issue. If the bond fails, the County would be on the hook for what was spent. If it passes, the money for architectural design would come out of the bond. He asked if the bond passed, would the County be able to recoup money for this schematic design. Lyness said she would have to check on that. Rettig said the County budgeted money to buy the houses near a proposed building site if they were available for a reasonable cost. She said they did not budget $75,000 for this schematic design. She asked where they would find that money. Pulkrabek said in the upcoming budget amendment, the Sheriffs Office is taking $690,000 out of their budget and putting it back into the County budget. He doesn't know what the Board has allocated that money for. Neuzil said it is going to the General Fund, but in part to fund an obligation to provide additional staff for public safety and for the Ambulance Department. Those dollars are back in the budget. He said Rettig brings up a good point and that is it is easy to say they can spend that money, but they need to consult with Claiborne and see where those dollars can come from. The same goes for other expenses for Jail Alternatives. Stutsman said it would be a part of a budget amendment and coming out of the year -end balance. Rettig said right now there is a proposed cost for this project and there may be disagreement amongst committee members about whether they could afford that amount of money. She understands that it will cost a half million dollars for an architectural design. Kempf said it will provide some better cost estimates. Rettig agreed and said it will also help them decide what can be removed if needed. She thinks they need to be there before they can get a reasonable understanding of where they are financially. Lyness asked Novak if cost estimates will be a part of the schematic design. Novak said yes. It is a marketing tool, creating a vision for the voters. He often says that it is hard to buy something without http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 9 of 12 knowing what it looks like. The schematic design creates the vision of what it will look like, what will go into the building, and why. Whiston said that brings up a concern she has. She thinks there will be a lot of significant things that voters will be interested in, such as treatment and education space, and attorney - client meeting rooms, which are not in the current design proposal. The CJCC needs to make sure that those things are in there this time. Kempf said he thinks that is why Novak included an evaluation and refinement of program needs in the schematic design; they are aware that things are missing and one of the purposes of doing this is to make sure that all of those spaces are accounted for. Sullivan said Novak Design's initial estimate for the entire project was $47 million, which was much better than the Durrant estimate of $77 million a year ago. This could still potentially be sticker shock for some voters. The Committee needs to decide how and where that number can be reduced, if they feel that they need to reduce it even further. They need to decide at what point they reach diminishing returns on what they are trying to accomplish. Uses of Existing Courthouse and Jail Neuzil said he has a couple of questions regarding the uses of the existing Courthouse and Jail. He also wonders if there is an opportunity throughout the process to see the work in progress and give Novak direction. Novak said it is going to be so important to work with all of the departments as they go through the process of coming up with the plan. Many missed spaces have been added already, but Novak Design will be working constantly with different departments on showing location relationships before they produce the final document. Neuzil said compared to the original numbers he has seen, the costs associated with upgrades to the existing Courthouse are quite high. It would be interesting to know a give and take on some of this. In other words, would it be more advantageous to build that fourth or fifth floor on the justice center and leave the Courthouse as -is in some respects. Novak said absolutely. He said Novak Design didn't know how the Courthouse would be used, so the cost per square foot that was allocated to the Courthouse and the program was high. That will get much lower now. Stutsman said she doesn't understand what they are talking about with an RFQ. Rettig said they would take the initial proposal, which they have in front of them today, from the Novak Design Group which cost $15,000. To refine it into the ballot proposal would cost $74,000. After it passed, the County would have to hire an architectural firm to draw up the plans, which would probably cost at least $400,000. Kempf said that is where the process of actually hiring an architect would come in. Stutsman said they are a long way from an RFQ. Rettig said it would have to pass, unless the County was required to issue one for the schematic design which Kempf says they are not. Lyness said the County could choose to do an RFQ. Sullivan said this should probably get on a Board agenda soon. Assuming the County gives the public a little time for feedback, they should think about doing the schematic design soon. Champion said she would think so, then the CJCC will have a document to show what they would like to build. Sullivan said the issue of whether it has to be bid is a quick question to get answered, and the issue of where the money would come from is a quick question to get answered. There is nothing prohibiting the Board from getting this on the agenda for the week of October 11, 2010. Neuzil said the big issue goes beyond that concerning how they will build all of this on the backside of the Courthouse. Novak said one of the parameters he has is that it cannot go one story above the level of the grade behind the Courthouse. It would be easy to build something ten stories tall back there, but they don't want to do that. Neuzil said not necessarily. Now that GSA is not available, the justice center might be five or six stories tall. Kempf said that is one of the things the CJCC has to identify; http://www.johnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD... Page 10 of 12 they need to identify future growth. The County doesn't want to build a 250 bed jail when the average population is 174 people already. They need to make sure there is expandability. Stutsman said the Board heard earlier that the tower at the Courthouse might need some repair work. Kempf said yes. It is anticipated repair work. There was a large contingency built into the contract which will account for a portion of the repair. He anticipated another portion of the repair, so there was money in the fall budget amendment that will cover the rest of the cost. Neuzil said that will help reduce the overall cost of the justice center. Kempf said what is happening now is something they still would have needed to do if they were a year further along in the process of the justice center. Lyness asked if there was anything else people thought needed to be added to the list. Stutsman said she wants to know what the hourly rate is. Novak said it varies from $60 to $145 an hour with an average of $90 to $100 an hour. Neuzil said that obviously this has to be in contract form and include a payment schedule and timeline. Whiston asked what the timeline is. Novak said he is thinking three to four months. Harney said he wants to go back to what Whiston brought up about designated space. He asked if Novak Design will make sure that the spaces in question will be included. This will not necessarily be designated space, but he asked, will additional square footage be identified for what will be needed? Novak said they will definitely update the program. He thinks most of it has already been updated, but he will make sure it continues to be updated. Lyness asked if that was included in item number one on the Schematic Design handout, "evaluate and refine the program of needs." Novak said yes. Rettig said she met with Mid - Eastern Council on Chemical Abuse (MECCA) Chief Executive Officer Ron Berg and his team at MECCA a couple weeks ago and they discussed jail diversion services in conjunction with the justice center. She had asked him about less expensive options. She asked if the County has to have certain people, and use the most expensive option. She asked if there are other options regarding the jail diversion that the County can't do because it doesn't have the space or resources available. Neuzil referred to item number two on the Schematic Design sheet which states that Novak Design will evaluate the existing Courthouse for possible uses. He would like the words "and Jail" to be added to that. He thinks there is some value to that. It could be where a lot of that programming work could be done, depending on the inmates' ability to move throughout. Novak said absolutely. Whiston said she worked with a person recently who couldn't get into MECCA because he didn't pay the bills he received from MECCA years ago. That person is back in the Jail and Whiston wonders if there is a need for treatment that is part of the corrections system itself, but isn't necessarily jail. There was a point at which this person could have gone to treatment instead of jail, but there was no option for in- patient treatment; it is something to consider. Pulkrabek said that was touched on a little bit in the Durrant Group study, particularly related to staffing. They had discussed that to have programming with a facility of this size, they would likely have to hire a social worker. That was figured into the $1 million increase in operating costs. He doesn't know if there is a social worker out there with such a diversified background that they can do all of that or not. Champion said that was a great idea. She thinks that is very sellable to the public. She thinks there are possibilities there, as the social worker works with the families, helps people get out of jail and into a halfway house or another placement. She thinks the social worker earns their money by saving the County money. Pulkrabek said he is pretty sure that a social worker in a jail of this capacity earns their keep. Champion agreed. It is a great idea. http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD... Page 11 of 12 Lyness said it sounds like it is expanding Jail Alternatives. One thing they need to be careful of is a treatment facility versus a jail; a person can't be kept in a locked treatment facility without a commitment. Whiston said this was a situation where someone was on parole and if they could have gotten into treatment, they wouldn't have had to go back to the Jail. She doesn't think that is unusual for people who have been in and out of jail for drug and alcohol related offenses. Pulkrabek said that really is at the core of why they started the MECCA Substance Abuse Evaluation Program. They were in a situation where the indigent people couldn't afford to have evaluations done or they couldn't go back to MECCA for certain reasons. There isn't the space for that program now, so it has to be in the long term plan. Whiston asked Lyness if Novak received the work they had completed in the Treatment Subcommittee. Lyness said she thinks so, but she will make sure of it; she talked to him at a more recent meeting also. Scheduling Meetings Johnson said that the Facilities Subcommittee had a couple recommendations about meetings. One was with the Federal legislators' staff and one was with the University of Iowa. Lyness said she thinks the recommendation from the Subcommittee was that all the Board members should be there. They will probably want to hear it from both the legislative representatives from U.S. Senator Charles Grassley and U.S. Senator Tom Harkin's offices, as well as with the University. Pulkrabek said they talked about giving the University of Iowa their ideas ahead of time, so they would be able to give answers during the meeting. Stutsman wondered if the University of Iowa will ask for a schematic design like GSA did. Sullivan suggested that Novak work first on item number five on the Schematic Design sheet, which is to evaluate University of Iowa property to the west of the Courthouse site. Kempf said his thought was to tell Novak verbally that they wanted that done. Rettig asked if number five includes evaluating the area around the current Jail. She wondered if it would be directly behind the Courthouse or around the Jail. Sullivan said it could have options. Kempf agreed. It would show how much space the County potentially wanted from the University of Iowa. Rettig asked if Kempf is asking to spend $500. Kempf said yes; he said it can come out of his budget. Stutsman asked if they wanted to schedule those meetings now. Johnson said no. Pulkrabek asked if Novak knows how long it would take to complete item number five. Then they could start scheduling for two months down the road. Novak said it could get done by next week. Kempf said they should get the results to the University of Iowa a week before the meeting. Pulkrabek clarified that they should be looking for dates in November 2010. Johnson said he would prefer to not schedule it now. Sullivan clarified that only the Board needs to meet. Stutsman said she thought the CJCC would attend. Sullivan said they could come if they wanted, because it will be a public meeting. Kempf said they just thought it was important for the whole Board to be there, and anybody else who wanted could attend. REPORT FROM FUNDING /GRANTS SUBCOMMITTEE Rettig said that nothing has really changed except there are two updates. The Funding /Grants Subcommittee is still working on the document that came out a couple months ago. Sheriffs Major Steve Dolezal is going to join this Subcommittee. When the Funding /Grants Subcommittee first put the numbers together, they guessed and underestimated on some. Pulkrabek told the Funding /Grants Subcommittee today that Jail housing and transportation costs, if they continue at their current pace, will exceed their $1.3 million budget and likely get to $1.5 million. The only thing that really changes on the estimate is that the total new costs would be somewhere around $3.7 million at this point in time. Until http://www.johnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD... Page 12 of 12 there are numbers about the bond issue there is nothing more the Funding /Grants Subcommittee can do in that area. ADDITIONAL COMMENTS FROM CRIMINAL JUSTICE COORDINATING COMMITTEE MEMBERS Neuzil said he suggests that all committee members continue to review the document they all supported and make sure the subcommittees are meeting their goals, so they can begin to approve some of these things. The Public Information/Outreach Subcommittee will hopefully have some things ready for a vote. They should start getting some of these things approved or the work will begin to pile up. SET NEXT MEETING DATE Stutsman said the next meeting is scheduled for November 3, 2010. Adjourned at 5:41 p.m. Attest: Tom Slockett, Auditor By Nancy Tomkovicz, Recording Secretary Sent to the Board of Supervisors on January 3, 2011 at 9:45 a.m. http://wwwjohnson-county.com/auditor/min/2010-10-06—infj.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page I of 11 MINUTES OF THE JOINT INFORMAL MEETING OF JOHNSON COUNTY BOARS IN 5 SUPERVISORS AND CRIMINAL JUSTICE COORDINATING COMMITTEE: NOVEMBER 3, 2010 TABLE OF CONTENTS Page Report from Facilities Subcommittee ......................................................... ............................... ► Report from Alternatives and Treatments Subcommittee .......................... ............................... 11 Report from Public Information/Outreach Subcommittee .......................... ............................... 11 Report from Funding /Grants Subcommittee .............................................. .......................:....... 12 Additional Comments from Criminal Justice Coordinating Committee Members ........................ 13 SetNext Meeting Date .......................................................................... ............................... 14 Chairperson Stutsman called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 4:30 p.m. Members present were: Pat Harney, Terrence Neuzil, Janelle Rettig, Sally Stutsman, and Rod Sullivan. Criminal Justice Coordinating Committee Members present were: County Attorney Janet Lyness, County Sheriff Lonny Pulkrabek, District Court Judge Doug Russell, Iowa City City Council Member Connie Champion, Bar Association Representative James McCarragher, Citizen Representative Professor Emeritus John Stratton, Citizen Representative Bob Elliott, Iowa City Public Library Adult Service Coordinator Kara Logsden, Consultation of Religious Communities Representative Dorothy Whiston, and Department of Corrections Supervisor Jerri Allen, and MECCA Director Ron Berg. Staff present were: Executive Assistant Andy Johnson and Auditor's Office Recording Secretary Nancy Tomkovicz. REPORT FROM FACILITIES SUBCOMMITTEE Harney said the Facilities Subcommittee has had conversations about proceeding with the location for the proposed justice center. He said they have discussed having Novak Design Group (Novak) design something for the County, but Neumann Monson Architects (Neumann Monson) also wanted to be a part of this. Harney said that Neumann Monson had some concerns if part of the work would be done by Novak, and then a Request for Proposal (RFP) would go to another architect; they would not necessarily feel comfortable proceeding with the other architect's design. Harney said he is not sure if that is a good or bad situation. Harney said he has had conversations with the University of Iowa (U of I), because it purchased the former Henry Sabin School property, and the U of I is looking into building a parking ramp there. Harney said he has spoken with U of I personnel about having the County buy into the parking ramp and purchase the more than 200 parking spaces desired by the General Services Administration (GSA). He said the County could continue to work on that possibility as they look into building more space on Harrison Street and around the Courthouse as an expansion area. Harney thinks the County can still do that. The U of I was very receptive to this idea, but the people Harney spoke to needed to speak to their superiors. Harney said to date he hasn't received a response as the individual he needs to speak to is out of town until next week. Harney said Novak Design Group Architect James Novak (J. Novak) sent an email to Facilities Manager David Kempf, and the email said, "David, please extend my gratitude to the justice center committee for allowing us to participate in their exciting project. We are forwarding a final draft of a proposed contract. I would like to present it personally, but I do not want to prohibit open discussion by http: / /www. j ohnson- county.com /auditor /min/2010_ 11 _03_inf_j .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 2 of 11 being there. We are only interested in what is best for Johnson County. Novak Design Group is committed to exceeding your expectations if selected to proceed with the next phase of the Johnson County justice center. Thank you." Harney said J. Novak also sent a contract to Kempf. Harney said Kempf asked County Attorney Janet Lyness to look at this contract. Kempf said he did not attach the contract to the email he sent to the Supervisors; he just received the contract this afternoon. He said he will certainly forward it to them. Kempf said after the last Criminal Justice Coordinating Committee (CJCC or Committee) Meeting, Kempf thought it was important to have a contract with Novak laying out the County's expectations. Kempf said the County hasn't had any type of contract up to this point. He said it is important to have a contract for both parties, due to the dollar amount and the things the County is looking for. Kempf said Lyness looked at it and made a couple of minor revisions to the contract. Kempf said regarding the Phase 1 Schematic Design, Article 1 describes the services to be provided. Kempf said J. Novak has the contract broken out monetarily. Kempf read the following: "evaluate and redefine program of needs, $3,000; evaluate existing Courthouse and Jail for possible reuse, $10,000; evaluate site options, $5,000; evaluate option 3A - dirt for dirt exchange with the GSA; evaluate University of Iowa property west of the Courthouse site, $500; create an exploded view color -coded plan for each floor of the new building and existing Courthouse, $25,000; create exterior elevations of the new building and two rendered exterior perspectives (a view from the northeast and from the southwest), $30,000; total cost, hourly, not to exceed $74,000." Kempf said the contract includes an hourly rate schedule not exceed $74,000, which is what the CJCC talked about at the last meeting. Kempf said the rest of the contract follows standard American Institute of Architects (AIA) document language. Lyness has looked at the contract; they wanted to make sure the contract specifies the hourly total cost that cannot be exceeded, and this is in the contract. He said he knows there have been some comments, questions, and discussions about the contract, and he asked what their next move should be. Rettig said the CJCC serves as an advisory committee to the Board of Supervisors, and taking action on a contract is a Board of Supervisors decision. Rettig said this topic is not on the agenda. Kempf said that is correct. Rettig said she thinks the Board should think about the communication they received from Neumann Monson. She said if someone else does the work and the County opens the project up for a competitive bid at another time, they would basically be recreating what was already done. A new architect would probably not use the schematics created by someone else. Rettig said she thinks this is important to talk about in the global perspective. Kempf said this discussion was started at the last meeting. He said they discussed whether the Board wants to move forward with Novak's proposal, which would provide a vision and something to take forward, or whether they want to look at creating a Request for Qualifications (RFQ) or RFP for the selection of the architectural firm that could potentially design the project through to fruition. Stutsman said if the Board does an RFQ, it will cost a lot more money. The Board will ultimately have a finished product if they do an RFQ, and she assumes they will use it as a blueprint for the building, but this visioning proposal will be a very preliminary rough draft. Kempf said he thinks the visioning proposal will be fairly thorough in that it will ensure all the County's needs are accounted for in the facility. The proposal will look at how the proposed justice center could work on the property identified by the County. Kempf said the property is currently the existing Courthouse site and the Jail site. The proposal will give the County an exploded view of the floor plans; it won't say exactly where the courtrooms are located within a certain floor, but it will identify those places within the floor. He said the proposal will also give a vision of what the proposed http: / /www.j ohnson- county. com /auditor /min/2010_ 11 _03_infj .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 3 of 11 justice center could potentially look like. Kempf said if the County selects an architectural firm to do a full schematic design for the front end of this project, it is possible that they could have to pay more money out of pocket than what J. Novak has proposed. He said this is a legitimate question. Stutsman asked if it is true that a firm won't bid on a project that another firm has done some work on already; does that cut out the competition. Kempf said he does not know. He said in strictly his opinion, if the County were to hire a firm down the road at 7.5% of the cost of a potentially $40 million project, it would seem odd for a firm to decline to bid on the project just because someone else has already done $74,000 worth of work on it. The $74,000 is a very small fraction of what the firm could potentially make. Former UI Campus Planner Larry Wilson said he agrees with Neumann Monson; if the County did an RFP for a firm to design the facility, then whatever firm was selected would not want to be held to a design already begun. He said any firm the County would actually want to respond to an RFP would probably not respond if the design was already begun. Wilson said he thinks the Board needs a decision making tool, and that should stop short of a design. A design requires more detail than what the County is asking Novak to do. He said the Board's course of action depends on what they want to present to the public as their future vision of the proposed justice center. Wilson said he doesn't think the contract the Board is proposing for Novak will actually get them to this point. Wilson said he sees Novak's role as creating more of a block study. This will show how elements of a building can be stacked, how tall a building might have to be for it to fit to site, and what options there are for fitting the site. It will assure that the building will fit the site, and this is a very important decision making element. Wilson said he doesn't see the rendering, based on those general elements, providing much use for the Board. He does not think the rendering is final enough for the Board to show the public what the building will look like; this final rendering will have to come later. Wilson said one way to make the rendering more final is to ask J. Novak to test the site, make sure the building fits in a way that it operates and functions well, and solves some parking issues. The building must do more than just fit on the land; it must fit in a nice way so that all pieces fit together and operate easily. Wilson said once a site is selected, the Board can get ready to show a picture to the public. The Board can then go out for an RFP, but they will not immediately ask for blueprints. They will ask a firm to design schematic pictures based on the block study and the space use agreed upon by the Board. Wilson said the firms may arrange the space differently, but they will all have the same general size in terms of the height of the building. A schematic design will be created, and once it is approved, the Board will move forward with detailed analysis. This process minimizes the front end cost for the project, and it gives the Board a picture that is more realistic. He said if the Board shows a potential schematic design to the public, and then the design changes, the public may begin to question what is going on if the design changes in the future. Rettig asked what the original Durrant Group ( Durrant) Study cost. Harney said it cost right around $70,000. Sullivan agreed. Rettig asked how much the County has already paid Novak. Kempf said they have paid Novak around $15,000. Rettig said the County has already paid out $85,000, and they are still no closer to having any consensus as to what type of project is wanted, how big it has to be, and whether voters would even be interested in voting for a project of any dollar amount. She finds it hard to justify funding another $70,000 to obtain a document that has no meaning, and she does not think the first $85,000 brought the County anything worthwhile. Rettig said the Durrant Group and Novak did a lot of work, but the Board still does not have any idea where the project is headed or what the public is willing to pay. Rettig said she doesn't want to spend another $70,000, $200,000, or even $0.05. The Board needs to understand whether the voters are http: / /www.j ohnson- county.com/auditor /min/2010_11 _03_inf_j .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 4 of 11 interested in a project that costs $30 million, $40 million, $50 million, or $70 million, and the Board needs to make a determination of where the proposed justice center is going to be and what it is going to look like before another consultant is hired. Stutsman asked if the Facilities Subcommittee has a recommendation. Harney said the Facilities Subcommittee hasn't met. He said at the last Facilities Subcommittee meeting, they discussed having Novak put together a proposal. The CJCC is not bound by this proposal. Harney asked Wilson to clarify what his recommendation was. Wilson said he would look at Novak's study and give the Board some cost options. He said the Supervisors have to decide what cost they think would pass through a voting process. For example, if the Supervisors think $76 million is too much, and they think $40 million is closer to what could pass, then J. Novak will help the Board refine what could be done for $40 million and what would be postponed for the future. Wilson said he still looks at the Novak study as a decision making tool. Iowa City City Council Member Connie Champion said, speaking as a citizen and not as a member of the CJCC, she doesn't think the Board can sell anything to the public without a design; the public wants to see what the building will look like. Emphasizing again that she is speaking as a citizen, she advised the Board to hire an architect to design what they need in three stages, and they can then decide which of these stages, if not all, should go on the ballot. Champion said she does not think the Board can sell any proposal to the public without providing something for them to look at. From the standpoint of the Shelter House campaign, people wanted to see what it was going to look like, what was going to be in it, and how it was going to function. When the Board knows what kind of land is going to be available, they will have to hire an architect to design the facility in stages, so it can be put up for votes over time or all at once. Champion said that is her personal opinion. Rettig said she would rather hire someone to lead the CJCC through an exercise to show where they think they are in this project and what size, scope, and dollar amount is reasonable. Champion said Rettig is right. Rettig said she doesn't want to spend $70,000 on a document that has no meaning when no one yet agrees on the direction of the project, and the County is no further along now than it was eight years ago. Champion said an architect cannot be hired until it is known what should be designed and how much space will be needed. All of these things need to be written down on paper before an architect is hired, so that has to be the next step. Champion agreed with Rettig that maybe a facilitator is necessary to direct the process towards these decisions. But an architect must design the facility before anything is presented to the public. Harney said J. Novak has already laid out the space in terms of square feet, although he has not said what exactly will go in each space in the building. The Durrant Study also did that, but that proposed facility was quite a bit larger than what the Board was satisfied with. Consultation of Religious Communities Representative Dorothy Whiston said she is not sure that previous studies have laid out the space. She said the most recent Novak study has no gym, library, or programming space of any sort. Whiston agrees with Rettig; the County does not have a clue as to what it needs and where it is in this process. Harney said J. Novak had said he figured out the space, but did not label the space in the diagram. His understanding is that the space is in Novak's drawing, but he does not know for sure. Whiston said she has looked at the study thoroughly, and it has space labeled for file cabinets and consultation rooms for nurses, but it doesn't have any space labeled for attorney /client rooms, court facilities, a gym, an exercise area, a library, classrooms, or any of these things. She said Novak hasn't been able to show her where this space is or how it is accounted for in the numbers. Kempf said having someone lead the Board through a decision making process, as Rettig suggested, http: / /www.johnson- county. com / auditor /min/2010_11_03_infj.doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 5 of 11 is something a good architectural firm can do. Kempf said he believes the County has come a long way from where it was just a couple of years ago. The CJCC has gotten a lot of good information, but it is not yet in the necessary format. Kempf said the Board may be at the point where they want to hire an architectural firm and complete the contract stage. The first phase of the contract could be going through this decision package, the second phase could be schematic designing, and the third phase of the contract is contingent upon the referendum. Regardless of which direction the Board is going to move in, Kempf said they need to determine if they are ready to commit the funds necessary to get the County to that level. Harney said there are firms who have already offered to do this work. Kempf agreed. Wilson said eventually an architectural firm will need to be hired. He said if the County goes through the decision making process he has been talking about, it will save money. He said the Board could stop where they currently are, send out an RFP, and begin the process, but he thinks this will cost a little more. J. Novak has spent a lot of time understanding the space needs. J. Novak needs to sit down with the CJCC and make sure all necessary elements and space needs are in the study. J. Novak could then give examples of what the County could get for $30 million, $40 million, and $50 million for example, and the Board can decide what to sell to the public. Wilson said he thinks if the Board asks J. Novak to prepare a rendering, not a design, then the Board can decide on the site and the cost. Wilson said he sees J. Novak as an advisor. Rettig said, if the Board was expecting to spend $15,000, she doesn't feel much need to advertise and have equal opportunity for everyone to compete to be the architect for a potentially major project. However, if the Board were to spend a lot more money, she would feel that need for equal opportunity. She said she thinks the law says if the County is going to spend $100,000 or more, an RFP is required. Kempf said he doesn't believe the Board would have to go out for professional architectural services. Sullivan agreed. Rettig said at a certain point, she thinks people should compete; this is free enterprise, and it is not a move against Novak. Rettig said none of this cost is yet budgeted from the Board's perspective. She said whatever is going to be done will be off budget until July 1, 2011. They are already going through the budgeting process for July 1, 2011, and no one has made a proposal to budget any fees or funds for this. Rettig said she thinks the groundwork has not yet been laid for this project, and she does not know if architects need to be hired to complete this initial work. Stutsman said she thinks there are too many unanswered questions to do an RFQ for an architect; she does not think anyone knows where they are going to build the proposed justice center, and she does not think they are ready to hire an architect to design something. She agreed with Wilson; this unfortunately is part of the decision making process, and it is going to cost some money. Rettig said Kempf laid out $74,000 worth of services, and there is no budget for that money. Stutsman said there is no budget to hire an architect either. Rettig agreed. She said they have already spent $85,000 and have not made any real progress. Whiston asked for confirmation that the $74,000 does not include facilitating a decision making process. Kempf said he doesn't know, but J. Novak has laid out how to evaluate and redefine the program needs, and that is the first step. This gives the CJCC some decision making power, and it allows them to determine how many beds and courtrooms are needed. It ensures that all spaces are accounted for, even if they are not accounted for currently, and it evaluates the existing Courthouse and Jail for possible reuse. Kempf said Novak will evaluate site options to determine how the building will best work on the property, and Novak will also create an exploded color view of floor plans to determine how the blocks of space would fit and coexist with the existing Courthouse. Kempf said Novak's proposal also includes the creation of the elevation and two potential exterior renderings from the perspective of northeast and southwest. Kempf asked Wilson if he thinks these http: / /www.j ohnson- county.com/auditor /min/2010_11 _03_inf_j .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 6 of 11 renderings are unnecessary in this process. Wilson said he thinks it is premature to create renderings at this point. He said Durrant didn't deal with the existing Courthouse; the CJCC has asked Novak to address this and to advise what can go in the existing Courthouse and what can come out of the new building, and how this affects the cost. Wilson said the site was a constraint; they will not be able to acquire the GSA parking lot. He said the Durrant Study compiled a lot of space analysis that has been used and updated by Novak, but some fine tuning is necessary for the elements that have been left out or are not clearly in the plan. He thinks it is premature to begin work on elevations. Harney said he thinks the CJCC and the Board need to make a decision on a location. Will it be on Harrison Street behind the Courthouse, or will they try to utilize the old Courthouse or Jail. No architect will be able to design anything without knowing where the facility will go and what the layout of the land will be. Rettig said the Board needs either a good citizen who wants to volunteer or who works for one of the governmental bodies, or a hired facilitator to lead them through the process of making a group decision on where the project is headed. Rettig said she doesn't see the point of hiring another consultant when there is no consensus. She said they do not have consensus on many elements such as the necessity of a gym, the location of the food, and the location of the facility itself. Rettig said she would rather pay someone $1,000 to guide the CJCC through the decision making process, so everyone will ultimately have some agreement as to where they are. She said spending another $74,000 is a waste, because there is no agreement as to where the building will be, what it will include, how big it needs to be, or whether the process can be phased. County Bar Association Representative James McCarragher said he thought the decision has already been made for the proposed justice center to be located in downtown Iowa City around the Courthouse. He asked why other sites are being considered instead of working with the site that was agreed upon. He said, if the CJCC is going to go back and review sites like the County Poor Farm, they will be going backwards in the process. He said the project will go downhill if they do this. McCarragher said he thought the consensus was that everyone wanted the facility downtown around the Courthouse, and they would configure the facility to whatever land was available. McCarragher said it is one thing for the CJCC to put together information to sell the public on why to build the facility downtown, but he would not understand if the CJCC had to start all over again and tell the Board why downtown. McCarragher said he thought the location had already been decided. Harney said he was referring to the fact that they seems to be waiting on the GSA property. Harney said his suggestion is to start the design using Harrison Street, the property behind the Courthouse, and maybe the four or five houses on Capitol Street. The County can keep working with the GSA for parking or future expansion area, but they need to have someone begin drawing plans. He said Neumann Monson or Novak can create these plans, but the County needs to be able to say what location the building will be designed for. Judge Douglas Russell said this Board previously voted that the proposed justice center would be comprised of a new jail and a new courthouse. The site decision was made that it would be downtown, adjacent to the present Courthouse. He said the CJCC didn't know how much land they would have available, and they still don't. However, the City of Iowa City is amenable to vacating Harrison Street, and the County owns property on Capitol Street, including the Jail, the private residences, and the Courthouse block. Russell said the CJCC knows what land is available to work with now. It would be a big delay if the building design is put on hold awaiting information about the GSA lot. http: / /www.j ohnson- county.com/auditor /min/2010_11 _03_infj .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 7 of 11 Russell said it doesn't appear to him that the Board or the CJCC have the expertise to do the things that need to be done next; they do not have a facilitator or designer. However, the previous studies have revealed a good concept of the space that is needed, and the CJCC members have input for the desired components. It appears to him that the County needs some paid professional assistance in design conceptualization and facilitating decision making. Russell said if the Board and CJCC don't take this step in hiring someone to help with this process, there is no alternative plan of action. His suggestion is to fine tune the contract with Novak or open it up for other firms, otherwise he does not see this process moving forward. Stutsman asked if Russell wants to make a motion on that. Russell said he is on call and can't make the motion because he needs to answer an incoming call. Stutsman asked if they are looking for a decision to recommend to the Board today. Kempf said what he was hoping to get out of the meeting was an open discussion about the next step in the process, and they have had this. The Board ultimately makes the decision about whether the County enters into an agreement with anybody. He said his hope was to have a decision on what they would present to the Board for a decision. Kempf said if the external renderings and perspectives section from Novak's proposal is removed, that would lower the price by $30,000. He asked if they should add a facilitator component to the proposal, for someone to come in and ensure all questions are being answered. Kempf said he would like the Board to take some discussion or action at an Informal Meeting or does the Board want Kempf to ask J. Novak to come up with a different proposal. Citizen Representative Bob Elliott said before the County can move to this next step, the CJCC and Board must have agreed on a specific site, or two site alternatives, and how much square footage is needed inside the facility, how many rooms are needed for attorneys to converse with clients, and whether a gym is needed. Elliott said he thought a large portion of this had been done with the $15,000 that was already spent. He said his understanding was that Novak wasn't going to designate specific spaces within the facility, but he would ensure that the facility had sufficient square footage to accommodate everyone's wants and needs. Wilson said a good process would be to have Novak refine the space, and if there were some items that couldn't be agreed on, the Board would help make the decision. This could include the decision of whether to have an auditorium in the facility. Novak could test the site, get some cost options, and hold a work session with the Board to work through making the decision of how much the Board wants to request from the public. Wilson said they would determine whether the proposed facility fits the site as it is. If the County does get more land than they expect, then it will be even better, but J. Novak and the Board would use the work session to resolve whether the facility will work on the current amount of land. J. Novak would act as a facilitator in the work session with the Board. Wilson said the CJCC may feel more comfortable with an outsider with no attachment, but he thinks J. Novak should be able to provide a work session to work through these last questions within the fee he has structured and provided to the Board. Champion said she thinks that is the right route to go at this point in time. She urged the Board to make some allowance in the County budget for architectural fees, in FY12. Stutsman said this is a good point. She asked if the Board could have this discussion at an Informal Meeting. Sullivan asked if Stutsman wanted to put it on the November 9, 2010 agenda. Stutsman said the Board has a fairly full agenda at that meeting. Rettig asked for clarification that the CJCC's recommendation is to remove $30,000 from the proposal for a total expenditure of $43,000. Stutsman said they discussed hiring a facilitator, and that was not included in that cost. Kempf said yes. Kempf said he thinks the CJCC needs to communicate with J. Novak about the revised requests, and this includes removing the exterior elevations component and adding some facilitating. He said he thinks a lot of this will be covered in the section: evaluating and refining the program needs. He said he http: / /www.johnson- county.com /auditor /min/2010_11_03_infj.doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 8 of 11 will have J. Novak draw out a new contract. Kempf asked if the Board wants to take the new contract straight to an Informal Meeting or if they want it to come back to the CJCC after Lyness looks at it. Stutsman said the Board can take the contract straight to the Informal Meeting; there has been good discussion and the Board can take those comments into consideration. Whiston said certain things, such as exercise space, are required by law in this type of facility, so that is not up for debate. Other suggested elements have a lot to do with the Committee's view of criminal justice. The County can have a jail that is nothing but cells, but she doesn't think that fits with the coming developments in the criminal justice system in terms of reentry and reduction of recidivism. The CJCC and the Board need to discuss what a workable jail really is. The Alternatives and Treatments Subcommittee has done some work on this, but the whole CJCC will need to have some conversation with the Board about what the County is willing to put forward for the proposed justice center. Harney said he wants to be clear about the process and that they will do what Wilson suggested, but the contract with Novak does not include anyone trying to lead them through a design process. Rettig said she doesn't want to spend another $43,000 and not have something that is ready to go. She said she would rather spend $1,000 to go through the process of discussing this, and then spend the $40,000 on another architect. Representatives from both Durrant and Novak talked with Lyness and County Sheriff Lonny Pulkrabek, and they put all the numbers into their studies, but the representatives never talked to the CJCC or the Board. Rettig said the County now has these flashy documents that have little to no meaning, and she doesn't want another one. Rettig said she would rather they had the discussion and understood what the CJCC was asking this architect to do. She is worried the County will end up with another $40,000 document that has no meaning. The CJCC and the Board can either keep hiring consultants or make collective decisions about where they are headed. Kempf asked how Rettig would feel if the CJCC made that discussion a component to what they are proposing. Stutsman said that would make sense. She said the CJCC and the Board need to talk to the people who are going to use the facility and who know its needs. Stutsman said she has no desire to talk to an architect. Rettig said she wants the facility to be downtown, and she wants to reuse both the Jail and the Courthouse. Rettig said other people want to sell those buildings and have the proposed justice center somewhere else, so she thinks the CJCC and the Board need to have this discussion. The original and the second design didn't include re -using the Courthouse. None of the designs call for the County to reuse the Jail. Rettig said she doesn't like disposable buildings; she doesn't want the Board to sell the Jail to the UI. She does not want to hire another architect when they do not have these discussions resolved. Kempf said this is one of the reasons why the second item in the proposal is to evaluate the existing Jail and Courthouse for possible reuse. He said he doesn't know the answers for how to reuse this space, but he thinks they need to look at and identify the use of space. He thinks the CJCC has always assumed that by building around the Courthouse, they would reuse and repurpose it. Harney said it needs to be determined if utilizing the old Jail will be cost - effective. Stutsman said that can't be done until they move on to the next step. Harney agreed. Kempf said he will meet with J. Novak and redefine the contract, and he will have something before the Board at the November 16, 2010 Informal Meeting. REPORT FROM ALTERNATIVES AND TREATMENTS SUBCOMMITTEE Lyness said the Mid - Eastern Council on Chemical Abuse (MECCA) had 46 requests for substance abuse evaluations in September and completed 44 of those requests. Five of those people needed further http: / /www.j ohnson- county.com /auditor /min/2010_11 _03_infj .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 9 of 11 assessment. Twenty evaluations and assessments were completed on weekends and five were referred by the Public Defender's Office. Lyness said in October, 21 assessments were requested and 21 completed. Four people needed further assessment, seven of the 21 requests were completed on weekends, and one was referred by the Public Defenders Office. Lyness said she thinks MECCA's substance abuse evaluations are going quite well. Lyness said the Alternatives and Treatments Subcommittee met a couple of times, and she thinks the Subcommittee will meet again on November 4, 2010. The Subcommittee does not have a written report, but they looked over what they had previously received from Novak and evaluated what seemed to be missing from their design. Novak's plans did not appear to include an exercise space, and this is a requirement. Lyness said the Subcommittee tried to come up with specific things they think must be included in the proposed justice center, including a library, deposition rooms, and meeting rooms. Lyness said the Subcommittee also looked into the question about whether juveniles would be in the new facility. The Subcommittee is currently putting together the numbers for how much the County is paying Linn County for detention facilities. They are also looking into how much the County is paying to have juveniles held in another county jail; these are juveniles who are required to have sight and sound segregation because they have been waived to adult court. Lyness said the Subcommittee is finalizing the numbers and has a good start on this report. She said the Subcommittee was trying to go through what Novak had presented to find the things that did not seem to be included Novak's latest design. REPORT FROM PUBLIC INFORMATION /OUTREACH SUBCOMMITTEE McCarragher said the Public Information/Outreach Subcommittee has begun to work on putting together the beginnings of a website. He said they are trying to consolidate some of the information into a general information page. The reason as to why the proposed justice center should be located in Iowa City would be included in this information page; this is something the Subcommittee is trying to convince the public about. There would be general discussion on why a jail and a courthouse should be located together, and the page would expand on that with specific documents. The Subcommittee has a final draft form for what was previously called frequently addressed questions, but they have now changed the name to "Reasons for the Courthouse." McCarragher said the Subcommittee is putting together the timeline; they have put together a first draft of deficiencies in the Courthouse and they are working on a similar document for the Jail. The Subcommittee has also begun drafting a document that talks about the efficiencies of combining the facilities to form one proposed justice center, and it shows how one justice center would meet the deficiencies that are present in both the Jail and the Courthouse. The Subcommittee also identified potential dates for elections. Stutsman asked who is going to be creating the website. McCarragher said probably people from County employment. He said the website just includes information for the public and will not advocate anything. It will be informational, show the efficiencies and what things could be accomplished with the proposed justice center. McCarragher said the Subcommittee will bring the information to the Board before they put it on the website. They thought this is an inexpensive and efficient way of getting information out to the public. The webpage would show all the reasons for a proposed justice center, and it would attempt to show the public the concerns, deficiencies, and efficiencies. Harney asked if it would be possible or advantageous to have an open house to show the public the issues within the Courthouse. McCarragher said he thinks that is a possibility for a future date. Instead of having open houses and things of that nature at this point, he thinks the County should get some http: / /www.j ohnson- county.com /auditor /min/2010_11_03_inf _ j .doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD... Page 10 of 11 information out to the public so they can begin digesting it. McCarragher said he was recently selected as a juror and observed firsthand some of the structural and space deficiencies in the Courthouse. Water was penetrating through the ceiling and ruining portions of the ceiling around the lights. McCarragher said he talked to other jurors who expressed concern about the fact that there is no security at the Courthouse. The front part of the building now is closed off because tuckpointing is being done, which has lead to a temporarily narrow hallway, which would be an escape for fire. McCarragher said the jury he was sitting on was moved from the downstairs jury room to the upstairs jury room, and if the upstairs jury room had been occupied, they would have had to accumulate in the hallway of the Courthouse. McCarragher said people utilizing the Courthouse and jurors from the public who are called in daily will be talking about these concerns. The CJCC has identified these same concerns as topics that need to be brought to the public's attention for their review, and the concerns are seen every day. McCarragher said the people who served on the jury when he was a juror were very aware of the fact that this was a beautiful Courthouse at one time, and it served a great need for the County at that time. McCarragher said he thinks if the CJCC can get this website opened, they could communicate these concerns to people so they could begin to see the need for something different. REPORT FROM FUNDING /GRANTS SUBCOMMITTEE Rettig said the Funding /Grants Subcommittee has an update. In the FYI budget, the Sheriff's Office has prisoner transport and housing budgeted at $1.3 million, and this amounts to approximately $108,000 per month when divided out over 12 months. However, the monthly average for the first three months of FYI has actually been approximately $125,000. Rettig said it is costing approximately $18,000 more each month to transport inmates. In the Sheriff Office's budget decision package, they are projecting a $500,000 increase from FYI I to FY12. Rettig said the Board has not yet looked at the FYI budget for the Sheriffs Office, so they don't have a lot of details, but this increase would prompt the necessity to redo the chart. She said there has been no reason to redo anything yet, because the Subcommittee had no new information. She said the County is not necessarily being charged a higher average day fee; the Sheriffs Office is just transporting more people. ADDITIONAL COMMENTS FROM CRIMINAL JUSTICE COORDINATING COMMITTEE MEMBERS Pulkrabek said he would like to see the Board of Supervisors reaffirm its support for keeping this project downtown at a future meeting agenda. This might be appropriate to do at the upcoming Informal Meeting where the Board will discuss the contract discussed earlier. He said the CJCC and the Board have discussed how the County will pay for the proposed justice center, but they have not come to any consensus on this. Pulkrabek asked if everyone is in agreement that the only way the County will be able to give this project to the public is through a bond referendum. He said he doesn't see any other way of pushing this project forward. He said they have talked about having some type of vote to the public in 2012, but they really have not to come to a conclusion about whether this will be a bond referendum. Pulkrabek asked if any Supervisors are looking at a different way of paying for this project. Stutsman said this topic is not on the agenda, so she does not know if the Supervisors can comment. Rettig said the Board did take a vote on this in this meeting; they voted that the sales tax option wasn't viable, and they have been unable to identify any other tools. The Funding /Grants Subcommittee did identify the option of a joint facility between Johnson County and Iowa City, or Coralville, or some other governmental body. Having a joint entity project with a City and a County would allow this http: / /www.johnson- county.com/ auditor /min/2010_11_03_infj.doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD... Page 11 of 11 project to fall under a different type of bond referendum that would require only a 50% approval. The Funding /Grants Subcommittee hasn't been able to identify any other ways to fund this project; they were assured by the Legislature that there was no possibility of any other options to fund this project. Rettig said the County is left with the option of two different bond referendums, so she thinks the Board and the CJCC should have a broader discussion about whether a joint facility is a possibility before they spend another $40,000. She said a joint facility would result in a different type of bond referendum. Pulkrabek agreed that the Board and CJCC need to have this discussion, and he asked if it could be done at the December Joint Meeting with the CJCC. Pulkrabek said everyone can weigh in on the topic and the Board and the CJCC will know which direction they are going. Stutsman said that sounds good. Neuzil said it seems like the five Supervisors need to occasionally go back to the list of needs and make sure they are still on -board with this project. He said everyone will not be able to get everything they want. Neuzil said he thinks it is a fairly safe thing to put this topic on the agenda to review where the five Supervisors are in terms of this project. He said it would be nice to still have all five Supervisors on -board with the project when they are ready to hire someone. Neuzil said if a discussion is necessary for this to happen, then it should be put it on the agenda. Sullivan said the Board's consensus needs to be comprehensive. They'll need to know what each person's nonnegotiable desires are. Rettig said the Board could vote for one or they could present the options to the voters. Stutsman said this is something that will be put on the agenda for the December 1, 2010, CJCC Meeting. Sullivan said they should discuss this topic very comprehensively at that time. SET NEXT MEETING DATE Executive Assistant Andy Johnson said the next meeting is scheduled for December 1, 2010. Stutsman clarified the meeting is scheduled for 4:30 p.m. on December 1, 2010, and it will probably be held in the Health and Human Services Building. Adjourned at 5:38 p.m. Attest: Tom Slockett, Auditor By Nancy Tomkovicz, Recording Secretary Sent to the Board of Supervisors on January 3, 2011 at 10:45 a.m. http: / /www.johnson- county.com /auditor /min/2010_11_03_inf _ j.doc.htm 1/5/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 1 of 9 � u'i uo -i i MINUTES OF THE JOINT INFORMAL MEETING OF JOHNSON COUNTY BOARDLP 16 SUPERVISORS AND CRIMINAL JUSTICE COORDINATING COMMITTEE. �.� DECEMBER 1, 2010 TABLE OF CONTENTS Page Process Including Possible Hiring of a Facilitator /Consultant to Reach Consensus on Key Issues for Moving Forward with Justice Center Planning Key Issues to be Addressed as Part of Justice Center Planning Issues May Include Funding, Location, Prioritization of Needs Reuse of Current County Facilities Parking and Other Issues Identified by Members of the Criminal Justice Coordinating Committee Report from Public Information/Outreach Subcommittee Report from Facilities Subcommittee Report from Funding /Grants Subcommittee Other Set Next Meeting Date Chairperson Stutsman called the Johnson County Board of Supervisors to order in the Johnson County Health and Human Services Building at 4:31 p.m. Members present were: Pat Harney, Terrence Neuzil, Janelle Rettig, Sally Stutsman, and Rod Sullivan. Criminal Justice Coordinating Committee Members present were: County Attorney Janet Lyness, County Sheriff Lonny Pulkrabek, Bar Association Representative James McCarragher, Citizen Representative Professor Emeritus John Stratton, Citizen Representative Bob Elliott, Iowa City Public Library Adult Service Coordinator Kara Logsden, Department of Corrections Supervisor Jerri Allen, and MECCA Director Ron Berg. Staff present: Executive Assistant Andy Johnson and Auditor's Office Recording Secretary Nancy Tomkovicz. PROCESS, INCLUDING POSSIBLE HIRING OF A FACILITATOR/CONSULTANT, TO REACH CONSENSUS ON KEY ISSUES FOR MOVING FORWARD WITH JUSTICE CENTER PLANNING Executive Assistant Andy Johnson said Facilities Manager David Kempf is an integral part of this discussion, but he will not be present at this meeting due to a family medical emergency. Johnson said in November 2010, Kempf presented information from Novak Design Group (Novak) regarding a proposal to lead the Board through a process and develop some preliminary designs for the proposed justice center. There was some conversation about that, and a plan was made to bring a contract to the Board within the next several weeks. In the meantime, former University of Iowa Campus Planner Larry Wilson put quite a bit of thought into that proposal in terms of specifics about the planning process and the Board's expectations. Johnson said the Board also received another proposal from Venture Architects in association with Neumann Monson Architects. However, Johnson said both Novak's new proposal and Wilson's suggestion addressed the importance of coming to a consensus on some key issues of the process before moving forward. This topic was put back onto the agenda for the current meeting. Johnson sent the Board a memo incorporating most of Wilson's work suggesting a process with which to more forward. The plan for today is to talk about that process, after which the Board will decide if they want a consultant or facilitator to lead the Board and the Criminal Justice Coordinating Committee (CJCC) through this process. Johnson said at the last joint CJCC/Board meeting, County Sheriff Lonny Pulkrabek brought up the http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _inf_j- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 2 of 9 hope that there would be a discussion to clarify the items where there was consensus and identify those items that still needed additional work. In many ways, this is the first step of Wilson's suggested process. He said he thinks all the members of the CJCC received the memo. The purpose of the first agenda item is to talk about moving forward with a process, what the CJCC wants out of the process, and how they wish to go forward on selecting someone to assist the Board and the CJCC through this process. Rettig said there are two different entities in this discussion; one is the CJCC, who may have collective ideas and opinions about the direction this process is headed, and the other entity is the Board of Supervisors. The opinions of these two bodies may not be the same, because although the five Supervisors are on the CJCC, they do not make up the majority of the CJCC. The CJCC must first go through whatever process is chosen, and then make a recommendation or report to the Board. Rettig said she would also need to be convinced to spend money on a facilitator. She said there are many people in this community who are very good at leading group work sessions and who may not already have ties to this issue. These individuals may be willing to spend a Saturday morning to help guide the CJCC through this process. Consultants are not always the best choice; they do not start with the level of knowledge or a relationship to the issue, which is sometimes good, and sometimes bad. She does not want to go back to square one. However, she said it would be premature to hire an engineering consultant until the Board and CJCC have more direction. Harney said if the Board and CJCC are not going to move forward with an engineering firm, then they need to have a different deadline for the goals they plan to reach. If they plan on having this on a ballot in the near future, they must have everything in order. If they do not have everything in order, there is no sense in moving forward, unless someone is guiding the process. Harney agreed that there is probably a person who could help facilitate this, and he thinks a certain person at the current meeting would be a good asset if he is willing to do this. There are probably others who could do this as well. Rettig asked if Harney was talking about the timeline of 2011. Harney said 2011 or even 2012. Rettig said they are already past that timeline, and she does not think that is possible at this point, unless the Board and CJCC really got their act together. Harney said he thinks a timeline two years out would work. Rettig said the CJCC and the Board are exactly where they need to be for a timeline in 2012, and at some point they need to get better direction. She does not want to pay more consultants to produce more documents that do not get them farther down the road. The County has already spent $85,000 on that so far, and she does not find the current information entirely helpful. Neuzil said the County has spent more than that. Rettig said she thought the County had spent $70,000 and then $15,000. Neuzil said the County spent more in years past. Rettig said she is thinking just about the recent years. Neuzil said he thinks the suggestions that have been laid out are very good. He thinks Rettig and Harney are both right. If the CJCC and the Board want to continue to meet the deadlines before July 2011, they will need to do this fairly soon. Neuzil said Rettig is right; the County should not be spending any money like this if two or three Board members will not vote for it. That seems a little ridiculous; he would rather get those things worked out in advance. Neuzil said as far as buy -in goes, the CJCC may not have the time to do this before the Board acts, because the CJCC has already voted to have the proposed justice center funded through bonding, not sales tax. He is not sure if all the Supervisors agree with that, but that is what the CJCC voted on. If there are Supervisors who do not agree with some of those decisions, such as the location or how the County is going to spend the money, they need to stop and have a discussion to make sure everyone is on the same page. He said he does not think this project will move forward unless everyone, the Sheriff, the County Attorney, the Board of Supervisors, at least seven of the County's elected officials, and http: / /www.j ohnson- county.com /auditor /min/2010_ 12_01 _inf_j - min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 3 of 9 preferably all ten elected officials, is on board with this gigantic County initiative. Citizen Representative Bob Elliott said there is a possibility that he shares most of the blame on what has been missing all along. He said he worked as the CJCC Coordinator for a period of time, and he did not perceive this type of situation as his responsibility. He said he may be more to blame than anyone else. The CJCC and the Board skip around a lot because they do not have someone leading them through the process. Elliott said though he disagreed with the CJCC vote on the location of the proposed justice center, that was the vote, and he thought they should move forward with it. Once the Board and CJCC decide on something, they should move ahead and plan in that direction. He thinks Wilson would be a good choice as facilitator. CJCC Member John Stratton said that he thought the CJCC had voted on the location for the facility twice, and they voted on the same location both times. He asked what a vote means and if it has any meaning beyond two or three months. He asked if the CJCC will revisit a decision if people change their minds; are they working with parliamentary procedure rules. Stratton said this is part of the problem of why the CJCC isn't making progress. The CJCC needs process. Rettig said one set of decisions involves the facility location and funding mechanisms. The joint funding mechanisms decision also has a wrinkle in it because they found out there is another way to fund this. If the proposed justice center was truly a joint multi jurisdiction facility, the bond requirements vote would be different. She said the Board has to approve the ballot language or be petitioned to put this on the ballot, and at least three Supervisors must agree to put it on the ballot. It would be much better for the Supervisors to be unanimous in their decision to put it on the ballot. Rettig said the other set of decisions could be discussed by everyone who has ever been involved in this process. These decisions include size, scope, alternatives, reusing facilities the County already has, and whether this is important. She thinks there needs to be a bigger buy -in for those decisions. She understands why the Board needs to make some of these decisions, but she feels the broader decisions need a broader base of support from everyone involved in the process, including the Johnson County Bar Association. Rettig said Wilson would be a perfect facilitator. Stutsman said she appreciates that Wilson is getting the Board and the CJCC focused again on where they have been, where they are going, and what they need to accomplish. Stutsman is in total agreement with what Wilson has proposed. She said she cannot believe someone was able to present it in a format that everyone can hopefully agree to and move forward with. Wilson said he does not think the County needs a design at this point in the process. The CJCC needs a list of necessary uses and spaces in order to set a cost, so the CJCC will have cost figures when they present this to the public. In order to do this, the Board and CJCC need to list all the spaces they will need in the proposed justice center. However, every closet and toilet does not need to be listed, but they should determine all the main elements and have the contingency to cover smaller items that might have been overlooked. Wilson said he tried to marry the process of using what they have without spending more money to go forward. They have the Durrant Group report, which is a good foundation, and they have the Novak Design Group follow -up report, which reviewed the Durrant Group report and found some issues that need to be resolved. He said he thought everyone had agreed on the amount of space needed for the proposed justice center, but then he started hearing several people say that the proposed plan has left out some needed spaces. However, Wilson thinks those spaces are covered in Novak's report, but not clearly identified to be sure they are there. Wilson said he suggested that Architect Jim Novak create a drawing that lists all these spaces and then ask key departments to review this plan and determine if http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _inf_j- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 4 of 9 anything of great importance is missing, and anything that would affect the cost. He said they would then have an agreed upon plan that includes everything needed to make this a working facility. Wilson said when an architect is hired, the architect will refine the plan. His suggestion will ensure that the CJCC gives the architect a site that works and is big enough, and that the cost covers the space that is needed. Wilson said the Board and the CJCC, either together or separately, can list all of the things they think they need for the bond issue. They can identify all the elements and the location, and then determine what they have consensus on. Wilson said they will hopefully at least agree upon the site. The Board and CJCC can then look at the rest of the list to determine what other information is necessary to move forward and who can provide that information. He said Novak has some of this information, and getting it from him would probably be most efficient. Wilson said he developed two lists of things to consider during a workshop; one list is a process of what the Board and CJCC would need for the bond issue, the other list is the site issues. For example, site development consensus is needed. He said he has been hearing people say the location will be the Courthouse, but things have changed since the original decision to put the proposed justice center at the Courthouse. The County does not have the land they thought they were going to get. Now, the question is whether the proposed justice center would actually fit on the land the County has. He suggested for the CJCC test this using block forms to make sure the land area is big enough. If it is not big enough, the facility cannot be built there. Alternatively, if the site is so small that the facility would have to be built upward, this would cost more. Wilson said they would hopefully determine that the facility could fit west of the Jail, like many people want, or south of the Jail, like some people favor. Harney clarified that Wilson means west or south of the Courthouse, not the Jail. Wilson agreed. He said at this time it is more important to determine if it will it fit in one of those locations. Later, an architect will propose the preferred location for the facility. The Board and CJCC can narrow down the size and amount of space in the facility to make sure they have it covered well enough to have an accurate cost. Wilson said he thinks everyone wants to reuse the Courthouse, but he asked what they want to use it for. He said the more elements that can be removed from the proposed facility and be put in an existing building will lessen the burden of what might be put in the bond issue. He said they could even make the Courthouse a separate project from a separate funding stream. They could also use the Courthouse for other County functions, but this does not help the bond issue cost. Wilson said the same decisions need to be made for the reuse of the Jail. Once the Board and CJCC know whether these buildings are usable to reduce the cost burden on building the proposed justice center, it will help them decide if they want to try to use the Jail. If the Board thinks reusing the Jail is an important environmental sustainability issue, they may have to pay a little more for this. Wilson asked how much on site parking is really necessary; is this an essential function, such as a vehicular sally port for the delivery of prisoners, and visitors should all have parking on site, but others can park in public ramps. That is a cost issue. If they only include the essential parking, they might be able to avoid a ramp. Wilson said there will be costs for purchasing City space, so those costs need to be estimated and included. Wilson summarized that the cost issue includes the location, amount of land, size and amount of space, reuse of the Courthouse, reuse of the Jail, and parking. Wilson said he thought a workshop with a facilitator could identify these issues, what is needed, and who could provide it. If they determine someone like Novak needs to provide this, they will probably have to pay for it. Rettig asked if the Board and CJCC need to hire someone to guide them in filling out a http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _inf_j- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 5 of 9 questionnaire, compiling it with some internal secretarial help, and having an initial workshop. She said she has heard four people say they would love to have Wilson do this. Wilson said he would be willing. Rettig said the Board's staff should help with compiling the data and putting it into some document. She said she does not want to hire a consultant; with Wilson's list, the Board and the CJCC know what needs to be done. There is a point where they will need professional planning assistance with the schematic design. Wilson said that is right. Wilson said right now there is a fear factor. People are looking at the condensed list of provided spaces, and if they do not see some items on the list they might assume their department is not covered. They actually might be covered, and there might not even be a problem. Wilson said he had suggested the CJCC to do a block diagram of the relationships of these facilities during the workshop, but, unless they need this for assurance, it could be postponed until the County gets into the real design stage. This can be postponed as long as the CJCC has a professional tell them they are sure the facility will fit on the site. One way to do this is to have a workshop, and they could even have Novak there as a resource to answer questions. If the CJCC were to decide they need to have the site tested, it would probably be most economical to ask Novak since he has done so much work already. Neuzil said they should set the date for the workshop. Stutsman asked if people are in agreement with moving forward with this process. Stratton said yes. Stutsman said okay. Rettig said until they get to the second work session or the schematic design phase, it seems like they could do this in -house on one or two Saturday mornings. The cost consists of some staff time, Wilson's volunteer time, and breakfast. She said this seems a lot more fiscally responsible. Stutsman said she does not want to take advantage of Wilson's time. Wilson said if the Board and the CJCC want him to facilitate, he is quite willing to do this with no cost. Wilson said some members of another design firm who are present at this meeting have put in a proposal and he is of the opinion that the CJCC should not bid for professional services. If two firms are interested in this project, they need to ask the firms what they will provide and not discuss the cost until a firm is selected. In that way, the CJCC is not bidding on price but is selecting based on what the firm can provide for the County. Neuzil said this could be part of the conversation in the work session, and Wilson agreed. Harney said Wilson had talked about utilizing the old Courthouse, and almost everyone wants to do this. Harney asked if costs would change very much based on what is put in the facility. Wilson said the costs could change. Harney said this could change space needs in the new facility. Wilson said when buildings are remodeled the new uses need to fit the space to keep remodeling costs down. He said the CJCC would look at the plans for the proposed facility and determine what would fit in the old Courthouse. If the CJCC starts forcing functions into the Courthouse that do not really fit, the cost will increase and it may not be a reasonable relationship. However, if they can find uses that actually fit the current spaces, this will keep costs down. Neuzil said he thinks this is a smart approach. He said if these are the steps the Board and the CJCC need to make, he would like to do this sometime in December 2010 or January 2011. He said he would like to keep on track with the extensive time table of things they want to get done before summer 2011. It seems to Neuzil like they should just move forward; they can do this on a Saturday morning or an evening. Rettig said she just suggested Saturday morning, but they could meet on an evening instead. However, people get tired when they have been at work all day. Sullivan asked who is attending the workshop. Wilson said that is one thing the Board needs to decide. Neuzil said it sounds like the CJCC members will attend. Stutsman said an afternoon meeting is http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _inf_j- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 6 of 9 also an option. Rettig said that wouldn't work if people cannot get off work. County Attorney Janet Lyness said District Court Judge Douglas Russell will probably have a difficult time getting away from work unless the workshop was scheduled far enough in advance. Wilson said he would sit down with Johnson and a couple of other people to work out an agenda before the workshop. Wilson said there are many variables, and one decision made by the CJCC could affect the next decision. He said they could just make a list of what the CJCC thinks they need to resolve at the workshop. Some of decisions may come later, including how the County is going to finance the proposed justice center. Neuzil said financing has technically been resolved; the Board voted for it. He said he and Harney were against the sales tax vote, and he is not sure if anyone else was. The CJCC collectively voted for it, however, and they are continuing to move forward. Neuzil said it would be nice to know if there is any item on this list that will prevent one of the Supervisors, the Sheriff, or the County Attorney from supporting the proposed justice center. He said this is the kind of information he would like to know by February 1, 2011. Wilson agreed. Board members agreed to schedule the workshop meeting for January 5, 2011, at 5:00 p.m. Judge Russell arrived at 5:04 p.m. Neuzil asked if there are any lists or information that might be of significance that the CJCC members could gather individually before the meeting. Stutsman said she thinks that is the facilitator's responsibility. Rettig said the CJCC needs a list of questions that need to be answered. Wilson said it would be good for each individual to make their own list. There will be some duplication, but there might be some things that are more important for one person than for another. Rettig said the CJCC members would make a list of things they think need to be answered and submit these lists to Johnson. Wilson said people could also bring these lists to the workshop, and they could write the ideas on a flip chart and work through the questions together. Rettig asked if it is correct that the CJCC members do not need to make lists before the workshop. Wilson said he thinks it would be useful for them to make lists before the workshop. Stutsman suggested that Wilson and Johnson create a memo similar to the one being used at the current meeting and circulate it to everyone, especially since not all of the CJCC members are present today. Johnson and Wilson agreed. Elliott asked Stutsman if she sees Wilson running this workshop. Stutsman said yes. Elliott said that is what he is envisioning also. Neuzil said the CJCC has a fairly extensive list from each of the subcommittees, and those subcommittees should continue to move forward while this process goes on. The CJCC has laid out 49 different initiatives and things to be answered, and Neuzil thinks they could build off of this. Pulkrabek left at 5:06 p.m. KEY ISSUES TO BE ADDRESSED AS PART OF JUSTICE CENTER PLANNING. ISSUES MAY INCLUDE FUNDING, LOCATION, PRIORITIZATION OF NEEDS, REUSE OF CURRENT COUNTY FACILITIES, PARKING AND OTHER ISSUES IDENTIFIED BY MEMBERS OF THE CRIMINAL JUSTICE COORDINATING COMMITTEE Stutsman asked if the Board has covered most of the issues under this agenda item. Wilson said he thinks they have. Sullivan said to some extent, only Supervisors can really answer that question. He said the CJCC can plan all they want, but if two of the five Supervisors say they will not vote for the project, it dies. Sullivan said it is impossible to presume what might be a trigger for any one of the http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _infj- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 7 of 9 Supervisors; they need to know their own triggers and give Wilson a list of the things they will not vote for. Wilson can then bring up those nonnegotiable issues at the workshop. Wilson said once everybody sees the nonnegotiable items, he hopes there can be some negotiation. Stutsman said yes; there can be some compromise. Rettig said there are two types of nonnegotiable items; the nonnegotiable item that won't make it to the ballot, and then there is the nonnegotiable item which is between the voter and their ballot. She said those two nonnegotiable items are not the same. Sullivan said that is right. Rettig said there are many things she would vote to put on the ballot because she thinks the public should have the right to vote on them, but Rettig would not necessarily individually privately vote for those things. She said people can have two sets of nonnegotiable items, and one of those is really their own business. Neuzil said he believes that, but it would be nice to have a document for the CJCC to present to the community that they are all willing to vote for in the voter's booth. Rettig said the last ballot initiative was unanimously put on the ballot, but she doubts it was unanimously voted for in the booth. Stutsman said she is not yet willing to state any nonnegotiable items until she hears more discussion and the process. Sullivan said the Supervisors could list things that are a big concern. The Supervisors must be able to express those concerns so that there are no surprises. Sullivan said right now there are still many surprises. Wilson said for example, today one person may say they cannot vote for any proposal unless it includes renovating the Jail. If later that person discovers that renovation costs are too high, they may change their mind about the renovation being a nonnegotiable item. Sullivan said it is very important to determine these things, because people have been spending time and money on the proposed justice center for years. The County needs to stop this process if they are not going to move forward with something, because it is a huge waste of resources and time. Sullivan said the CJCC has had multiple votes on things, but these votes are not technically binding until there is a contract and somebody is breaking ground for the facility. He said he shares Wilson's frustration on this, but the CJCC needs to have another vote. Stutsman said they need an affirmation that everyone has reached a consensus and is in agreement. Neuzil said the workshop is planned for January 5, 2011, at 5:00 p.m. Stutsman said the CJCC has set a date to start the process of working through some of these issues. Judge Russell said he will do his best to be there; he is assigned to Johnson County on that day. REPORT FROM PUBLIC INFORMATION /OUTREACH SUBCOMMITTEE Neuzil said a subcommittee of the Public Information/Outreach Subcommittee is working on a comprehensive document; he and County Recorder Kim Painter are developing that. They should have a fairly extensive document ready for review at the CJCC meeting scheduled for February 2011. Stutsman asked if the document would be ready on January 5, 2011. Neuzil said the Public Information/Outreach Subcommittee will still meet in January 2011, but the document will probably be ready for the CJCC in February 2011. REPORT FROM FACILITIES SUBCOMMITTEE Harney said the Facilities Subcommittee has not met. He said he had visited with one of the representatives from the University of Iowa (UI). The information the County had was that the land where Henry Sabin Elementary School presently sits may become a parking facility. He had asked the GSA and the UI representative if Johnson County could buy into that land for parking for the GSA's http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _infJj- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 8 of 9 needs. This would be in exchange for more of the property the GSA has. The UI representative was going to meet, but Harney has not since been able to reach him. Harney asked if the Board even wants to pursue that. He said he talked to the GSA, and they would consider this if the Board sends them a proposal in addition to what they already have. He asked if the Board wants to consider that. Lyness said it will not hurt for the County to try anything they can with the GSA. She said she does not think the County has gotten anywhere, and she does not think they will lose anything by making another suggestion. Rettig said the County has now had two congressional offices ask how they can help with the proposed justice center, because they are not sure it is a done deal. She said the Board should pursue that. However, she does not know how the Board will pursue something when they do not know what their plan is. Rettig said they will not have more direction until January 5, 2011. Sullivan said he is not interested in subsidizing the UI for anything. The UI has not been a partner in this process; they have been the biggest obstacle since the day the current Jail was built. He said he would have to think hard about the conditions of the County cooperating on something like this, because he has not seen much cooperation from the UI up to this point. Neuzil said if the Board was not pursuing this for the GSA, they could potentially pursue this for the Sheriffs Office and Courthouse employees. Sullivan said no matter what the Board does with parking, they will need to pursue talking to the City of Iowa City about an exception to their parking policies. Iowa City has standards that are required for any business or government building in certain districts. Harney said he was proposing the possibility for the County to buy the 200 spaces in exchange for more of the GSA parking lot. Sullivan said the proposal is to get more of the GSA parking lot. Harney said yes; the GSA would have a quarter of the lot for their future building facility, and the County would have more of that lot. Sullivan agreed with Lyness that it cannot hurt to ask about this. REPORT FROM FUNDING /GRANTS SUBCOMMITTEE Rettig said the subcommittee will not have any more reports until there is some direction on the size and scope of the facility. OTHER Stutsman said the Board needs to talk about CJCC Member John Robertson's position. She said she does not think he has been to one of the CJCC's meetings since he has been appointed as a representative of the Public Defender's Office. Lyness said she thinks Robertson has come to a meeting one or two times. She said she can talk to Robertson and Public Defender Peter Persaud to see if someone else might be a better representative. If no one from the Public Defender's Office can serve, the CJCC may want another attorney or someone from the Defense Bar to be a representative. Stutsman asked if Lyness will look into this. Lyness said yes. SET NEXT MEETING DATE The next meeting is scheduled for January 5, 2011, at 5:00 p.m. Adjourned at 5:17 p.m. Attest: Tom Slockett, Auditor By Nancy Tomkovicz, Recording Secretary http: / /www.j ohnson- county .com /auditor /min/2010_12_01 _infj- min.htm 1/4/2011 MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD 0... Page 9 of 9 Sent to the Board of Supervisors on January 4, 2011 at 3:45 p.m. http: / /wwwj ohnson- county.com/ auditor /min/2010_ 12_01 _infj - min.htm 1/4/2011 draft IN 7 MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE DECEMBER 21, 2010 LOBBY CONFERENCE ROOM, 8:00 A.M. Members Present: Regenia Bailey, Matt Hayek Members Absent: Susan Mims Staff Present: Wendy Ford, Jeff Davidson, Tracy Hightshoe, Tom Markus Others Present: Gigi Wood RECOMMENDATIONS TO COUNCIL: Hayek moved that a recommendation be sent for City Council's approval regarding the P -C location /parking agreement. Bailey seconded the motion. Motion carried 2 -0. Mims absent. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 8:02 A.M. CONSIDER APPROVAL OF THE MINUTES OF THE NOVEMBER 8, 2010, ECONOMIC DEVELOPMENT COMMITTEE MEETING: Ford noted that there is one small amendment. Davidson was in attendance at the November 8 meeting and the minutes should reflect this. Hayek moved to accept the November 8, 2010, meeting minutes as amended. Bailey seconded the motion. Motion carried 2 -0. Mims absent. CONFIRMATION OF THE CITY MANAGER'S LETTER REGARDING THE PC LOCATION DECISION: Davidson spoke to Members regarding this issue. He noted that in keeping with Council's policy directive to bring offices downtown, the City worked with the developer in being able to provide parking permits for this project. The parking would involve subsidizing, however, at around $7,200 per year for a two -year period which equate to approximately 25% of the cost of the parking permits for the two years The Press Citizen would be paying the balance of 75 %. He further explained the possible agreement, noting that the Press - Citizen will be bringing 40 to 50 well - paying jobs to this location. Hayek moved that a recommendation be sent for City Council's approval regarding the P -C location /parking agreement. Bailey seconded the motion. Motion carried 2 -0. Mims absent. Economic Development Committee Meeting December 21, 2010 DISCUSS ADMINISTRATIVE APPROVAL OF ECONOMIC DEVELOPMENT OPPORTUNITY FUND REQUESTS: Ford addressed Members gauge their desire to grant the City Manager authority to approve the use of Economic Development Opportunity funds. She noted that allowing this authority would enable the City to respond in timely fashion to requests that come in that meet certain criteria. Davidson noted that staff does not currently have a proposal drafted, but that they are asking for whether the Committee would like to consider the idea. Hayek stated that he is supportive of this idea. Bailey added that she would like to see some type of general guidelines on this. A brief discussion ensued, citing possible criteria including a dollar amount cap, a percentage of the fund cap, along with alignment of economic development goals as ideas for the parameters for the City Manager's authority. Members agreed they would like to see a proposal at the next Economic Development Committee meeting. CDBG ECONOMIC DEVELOPMENT FUND REPORT: Hightshoe addressed the Members regarding CDBG funds, giving a brief background on the program. Currently there is approximately $147,000 available for eligible businesses. On July 1 this amount will increase by $100,000, according to Hightshoe, when the annual entitlement deposit is made. Since 2002 there have been about 40 applications, with funding going to 17 of those. Noting that the fund doesn't necessarily target this population, she stated that ten of the 17, were either women- or minority - owned businesses. The discussion continued with Hightshoe sharing several success stories with Members. STAFF TIME: Davidson reminded Members that during the budget process it will be up to the Council to fund the economic development opportunities fund. Ford added that the actual line item in the budget is "Economic Development Assistance." Davidson also noted that the Corridor Business Journal is having their `Economic Trends' luncheon on January 12. COMMITTEE TIME: None. ADJOURNMENT: Hayek moved to adjourn the meeting at 8:30 A.M. Bailey seconded the motion. Motion carried 2 -0. Economic Development Committee Meeting December 21, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 Key: X = Present O = Absent O/E = Absent/Excused TERM 00 N NAME EXP. N o N rn N o N M cn w N co N Regeni 01/02/1 X X X X X X X X X X a Baile 1 Matt 01/02/1 X X X X X X X X X X Hayek 1 Susan 01/02/1 X X X X x x x O/ X O/ Mims 1 E E Key: X = Present O = Absent O/E = Absent/Excused Airport Commission December 16, 2010 Page 1 MINUTES DRAFT IOWA CITY AIRPORT COMMISSION DECEMBER 16, 2010 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Jose Assouline, Steve Crane, Minnetta Gardinier, Howard Horan Staff Present: Sue Dulek, Michael Tharp Others Present: Matt Wolford, Randy Miller, Jeff Edberg, Van Miller, John Yeomans, Harrel Timmons RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): CALL TO ORDER: Chairperson Horan called the meeting to order at 6:05 P.M. ITEMS FOR DISCUSSION /ACTION: r lP18 a. Aviation Commerce Park — i. Presentations — Jeff Edberg with Skogman Realty presented to the Members first. He has over 33 years in the realty business, but just recently started with Skogman in their commercial division. He briefly explained the networks he is affiliated with, as well as the commercial realtor designations he has earned. Randy Miller with Midwest America Commercial Realty spoke next. He noted that Peggy Slaughter, who works with him at Midwest America, was unable to make tonight's meeting. Miller then noted that with that being said, Midwest is requesting that their name be removed from consideration as they have recently taken on some large assignments, and they will not be able to commit the time they would like to for this listing. He did add, however, that they would like to remain ambassadors to the Commission on this project, and in fact may be bringing some buyers in the near future. Sue Dulek then noted that she heard from Lepic - Kroeger Realty and they also had to decline the Airport's invitation. Van Miller with Iowa Realty spoke to Members next. He noted that he has been involved with this particular project for about nine months, and that he will remain committed to the project should the Commission pick Iowa Realty again for the listing. Members then decided to set a special meeting so they can discuss this issue further. A special meeting was set for Monday, December 20, 2010, at 6:00 P.M. at the Airport. ii. Consider a resolution authorizing the chairperson to enter into a listing agreement — Gardinier moved to defer the resolution to the December 20, 2010, special meeting; seconded by Crane. Motion carried 4 -0. b. Airport Farm Management — John Yeomans, Farm Manager, addressed the Members next. He shared some information from Merschman Seeds on the research they Airport Commission December 16, 2010 Page 2 performed this past year. He noted that if they do not hear from the FAA or the DNR on what they can and cannot plant, they will need to consider mowing this next season to keep the weeds down. Tharp stated that he is still trying to get something in writing. The discussion continued, with Yeomans and Members talking about their options might be. Dulek suggested they send a letter to the FAA/DNR stating their plans with an understanding of moving forward unless there was an objection. After some further discussion, everyone agreed that wheat is the preferred crop. c. FAA/IDOT Projects — AECOM — Tharp noted that David Hughes was not able to attend this evening due to road conditions. L Runway 7/25 & 12/30 — Tharp noted that most everything is at the same status as last month. ii. Obstruction Mitigation — Tharp noted he did not have any other status updates for this project. iii. Hangar A Drainage — Tharp noted the contractor has made their necessary repairs and were finalizing pay quantities with David Hughes iv. FY2012 FAA Pre - Application — Tharp noted that he has the application sheets, and he briefly ran through the projects with Members. He responded to Members' questions, giving clarification as needed. The discussion turned to the equipment building and its possible location and size. Tharp will verify the size requirements and amend the application as needed. The discussion continued with Tharp responding to Members' questions regarding the application. Crane moved to submit the application as amended upon verification of size requirements for the building; seconded by Assouline. Motion carried 4 -0. (* Assouline left after this discussion.) V. 7 -25 Parallel Taxiway — Tharp noted they are going to discuss the design agreement and that to keep with the FAA timeline the project would be ready for bid in April. vi. Consider Resolution #A10 -19 Approving Task Order No. 6 — Gardinier moved to approve Resolution #A10 -19 approving Task Order No. 6; seconded by Crane. Motion carried 3 -0. ( Assouline absent.) d. 2011 Air Race Classic — Gardinier shared what has been happening with plans, noting that they have roughly sketched out where planes will be parked and that type of thing. e. Corporate Hangar "L" — Tharp stated that until they talk with City Council on January 5, there is nothing new to report here. Members briefly discussed who might be available that day to join Tharp at City Hall. Gardinier will try to attend. f. Airport "Operations ": Strategic Plan Implementation; Budget; Management — Tharp stated that there is now a security pad on the outside door. In addition to the CIP meeting with Council on January 5, Tharp also noted the Boards and Commissions meeting with Council is on January 18 at 7:00 P.M. L 2010 Annual Report — Tharp stated that he has received a couple of changes for the annual report. He will go ahead and finalize this and get several copies ready for the Council meeting in January. ii. Consider Resolution #A10 -20 Approving Contract Amendment With Jet Air, Inc., for Terminal Cleaning Services — Tharp stated that he and Matt Wolford worked together on both the cleaning and maintenance Airport Commission December 16, 2010 Page 3 service agreements to come up with what is ready for approval. Timmons stated that they appreciate the improvements and that they hear good comments all the time about it. Gardinier asked if the grout in the restrooms could be redone as it is looking somewhat worn out. This led to a discussion about possible upgrades in the restrooms in the future. Wolford stated that Jet Air is happy with the agreement. Gardinier moved to approve Resolution #A10 -20 approving the contract with Jet Air, Inc. for Terminal Cleaning Services; seconded by Crane. Motion carried 3 -0. (Assouline absent.) iii. Consider Resolution #A10 -21 Approving Contract Amendment With Jet Air, Inc., for Airport Maintenance Services — Horan asked if there were any comments about maintenance. Crane moved to approve Resolution #A10 -21 approving the contract with Jet Air, Inc. for Airport Maintenance Services; seconded by Gardinier. Motion carried 3 -0. (Assouline absent.) g. FBO / Iowa Flight Training / Whirlybird Reports — Wolford noted that in general the aviation industry is seeing an uptick. He commented on the fuel pump light, noting that they discovered it was a ballast issue. He and Tharp spoke briefly about the upgrades and modifications they hope to make to the old Hertz space. Timmons also noted that business has increased, especially in the charter business. He added that they have sold around thirty planes this year. Gardinier asked if anyone knows how Iowa Flight or Whirlybird are doing. Tharp noted that IFT is down to two active instructors as far as he knows, with a dozen or so students currently. h. Subcommittees' Reports — None. L Commission Members' Reports —None. j. Staff Report — Dulek reminded Members that the new City Manager is now on board. SET NEXT REGULAR MEETING: A special meeting will be held Monday, December 20, 2010, at 6:00 P.M. The next regular meeting will be Thursday, January 20, 2011, at 6:00 P.M. at the Airport Terminal building. ADJOURN: The meeting adjourned at 7:33 P.M. Horan made the motion to adjourn the meeting at 7:33 P.M.; seconded by Crane. Motion carried 3 -0 (Assouline absent.) Chairperson Date Airport Commission December 16, 2010 Page 4 Airport Commission ATTENDANCE RECORD 2010 Key: X = Present O = Absent O/E = Absent/Excused NM = Not a Member at this time TERM � N w � Cn rn --4 -4 -4 Co m O N NAME EXP. N j Co 00 j Cn N (D N O v Cn N v (D 0) � \ Co rn 03/01/13 X X X X X O/E X X X X X NM NM NM NM Greg Farris 03/01114 X X X X X X X X X X X X X X X Howard Horan Minnetta 03101/15 X X X X X X O/E X X X X X X X X Gardinier Jose 03/01/12 NM NM NM NM NM X X X X X X X X O/E X Assouline Steve 03/01/14 NM NM O/E X X X O/E X X X X O/E X X X Crane Janelle 03/01/12 X X X X O/E NM NM NM NM NM NM NM NM NM NM Rettig John 03/01/10 X X NM NM NM NM NM NM NM NM NM NM NM NM NM Staley Key: X = Present O = Absent O/E = Absent/Excused NM = Not a Member at this time Airport Commission December 20, 2010 Page 1 M IPI9 MINUTES DRAFT IOWA CITY AIRPORT COMMISSION DECEMBER 20, 2010 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Jose Assouline, Steve Crane, Minnetta Gardinier, Howard Horan Staff Present: Sue Dulek, Michael Tharp Others Present: RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): Recommend to approve listing agreement with Skogman Realty CALL TO ORDER: Chairperson Horan called the meeting to order at 6:05 P.M. ITEMS FOR DISCUSSION /ACTION: a. Consider a resolution authorizing the chairperson to enter into a listing agreement for Airport Commerce Park — Members discussed the presentations from the December 16th meeting. Members agreed to pursue a listing agreement with Skogman Realty. Members then discussed details they would like included in the agreement. Gardinier expressed a desire to have a written report submitted monthly and to have brokers appear at the Commission meetings. Members discussed how often to require brokers appear at Commission meetings. Horan discussed that his desire would be to see them at least every other month because it helps to maintain the relationship of the broker working for the Commission. Crane asked about setting the duration for the agreement. Tharp noted that the agreement and most of the extensions have been for 1 year at a time. Members agreed to maintain the 1 year length. Gardinier expressed a desire to have marketing and traffic information in the monthly reports. Members discussed the leasing and selling options for the land. Dulek asked for some clarifications on the communication requirements for the agreement. Members agreed that the agreement would include the requirements for the monthly written report and attending Commission meetings every other month. Crane moved resolution #A10 -22 authorizing the chairperson to enter into a listing agreement with Skogman Realty for Airport Commerce Park, seconded by Gardinier. Motion carried 4 -0. ADJOURN: The meeting adjourned at 6:26pm Chairperson Date Airport Commission December 20, 2010 Page 2 Airport Commission ATTENDANCE RECORD 2010 Key: X = Present O = Absent O/E = Absent/Excused NM = Not a Member at this time TERM N w � cn rn -4 -4 � co - C° O -' N N W (b C n CO O -4 CJ1 -1 (fl a) �' 00 M N ° NAME EXP. 03/01/13 X X X X X O/E X X X X X NM NM NM NM NM Greg Farris 03/01/14 X X X X X X X X X X X X X X X X Howard Horan Minnetta 03/01/15 X X X X X X O/E X X X X X X X X X Gardinier Jose 03101/12 NM NM NM NM NM X X X X X X X X O/E X X Assouline Steve 03/01/14 NM NM O/E X X X O/E X X X X O/E X X X X Crane Janelle 03/01/12 X X X X O/E NM NM NM NM NM NM NM NM NM NM NM Rettig John 03/01110 X X NM NM NM NM NM NM NM NM NM NM NM NM NM NM Staley Key: X = Present O = Absent O/E = Absent/Excused NM = Not a Member at this time EideBaill sM CPAs & BUSINESS ADVISORS To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa In planning and performing our audit of the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2010, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the following deficiency in the City's internal control to be a material weakness: Identification of Loan Receivable A properly designed system of internal control over financial reporting allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generally accepted accounting principles. During the course of our engagement, we proposed a material audit adjustment to the financial statements that would not have been identified as a result of the City's existing internal controls and, therefore, could have resulted in a material misstatement of the City's financial statements. The adjustment was related to a loan receivable within the Shared Revenue Fund. There were a miscommunication between the Accounting Division and the Planning and Community Development Department regarding a payment from the Shared Revenue Fund that was a loan, not a grant. The effect of this condition was that if the adjustment had not been recorded, the financial statements would have been materially misstated. We recommend that finance staff work together with the Planning and Community Development Department to develop a process to identify and track the needed information to record the proper receivable and deferred revenue balances at year end. www.a �ei—)_,;i! .com 3999 Pennsylvania Ave., Ste. 100 Dubuque, IA 52002 -2273 T 563.556.1790 f 563.557.7842 EOE To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 2 This communication is intended solely for the information and use of the Mayor, City Council, management, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. Sincerely, EIDE BAILLY LLP CPAs & Business Advisors SGT Dubuque, Iowa December 15, 2010 >. EideBailly- CPAs & BUSINESS ADVISORS To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, for the year ended June 30, 2010. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and OMB Circular A -133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 6, 2010. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Iowa City, Iowa, are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year ended June 30, 2010. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Management's estimate of depreciable lives is based on past history of life cycles of capital assets. We evaluated the key factors and assumptions used to develop depreciable lives in determining that they are reasonable in relation to the financial statements taken as a whole. Management's estimate of the incurred but not reported health, workers' compensation, liability, and long -term disability insurance liabilities are based on third -party administrator's calculations and estimates. We evaluated the key factors and assumptions used to develop the incurred but not reported liabilities in determining that they are reasonable in relation to the financial statements taken as a whole. Management's estimate of the allowance for doubtful accounts is based on accounts which are past due with no special arrangement for payment. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements taken as a whole. 3999 Pennsylvania Ave., Ste. 100 Dubuque, IA 52002 -2273 T 563.556.1790 F 563.5577842 EOE To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 2 Management's estimate of other postemployment benefits liability is based on a calculation of actuarially determined contributions for health insurance benefits. We evaluated the key factors and assumptions used to develop other postemployment benefits liability in determining that it is reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. During our audit, we proposed an entry in the Shared Revenues Fund for $1,217,822 to accrue and defer a loan receivable from Aniston Village. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 15, 2010. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 3 New Accounting Pronouncement We have included additional information regarding a new accounting pronouncement. This information is intended solely for the use of the Mayor, City Council, and management of the City of Iowa City, Iowa, and is not intended to be and should not be used by anyone other than these specified parties. As always, we will be happy to discuss these or any other topics at your convenience. We would like to take this opportunity to express our appreciation to you and your staff for the fine cooperation that we received during the course of the audit. We look forward to many years of continued service to the City of Iowa City, Iowa. Sincerely, EIDE BAILLY LLP CPAs & Business Advisors SGT Dubuque, Iowa December 15, 2010 CITY OF IOWA CITY YEAR ENDED JUNE 30, 2010 NEW ACCOUNTING PRONOUNCEMENT Governmental Accounting Standards Board (GASB) GASB has issued one statement not yet implemented by the City that will affect the City's financial statements, as follows: Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February 2009, will be effective for the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Iowa City broke ground on a fourth fire station in October 2009, with construction of the 13,300 square -foot station scheduled to be complete in July 2011. The additional satellite station will employee nine new firefighters and be equipped with a pumper truck and a ladder truck. The building will feature drive -thru apparatus bays, a first for Iowa City, which will improve safety response time for the vehicles. The design also includes a geothermal system, use of daylight - ing, water - efficient fixtures, and other features that are intended to achieve gold certification for the Leadership in Energy and Environmental Design (LEED), a green building certification system. Lt. Governor Patty Judge was a part of the ground breaking ceremony as this project has been made possible with a $2,269,000 grant from I -JOBS, Iowa's infrastructure investment initiative. Total project costs are estimated at $4,809,000. To fund the nine firefighters who will staff the new station 24 hours a day, seven days a week, the City will use a portion of the 1 percent utility franchise fee that became effective April 1, 2010. The station, located on the city's northeast side at the intersection of North Dodge Street and Scott Boulevard, will improve emergency response times to residents and businesses in the area. "The City Council's decision to construct, equip, and staff Fire Station 4 in the northeast Iowa City will have an extremely positive impact on the future of emergency service delivery in the community," said Fire Chief Andy Rocca. � r CITY OF IOWA CITY CULVER /JUDGE :C306S IOWA'S INFRASTRUCTURE INVESTMENT INITIATIVE COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2010 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA *'�� 79'�"'OM123';t, CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2010 Page INTRODUCTORY SECTION Tableof contents ................................................................................................. ............................... 1 Letterof transmittal ............................................................................................. ............................... 3 Cityorganizational chart ..................................................................................... ............................... 10 Cityofficials ........................................................................................................ ............................... 11 Certificate of Achievement for Excellence in Financial Reporting .................... ............................... 12 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT .......................................................... ............................... 13 MANAGEMENT'S DISCUSSION AND ANALYSIS ..................................... ............................... 15 BASIC FINANCIAL STATEMENTS Government -wide financial statements Statementof net assets .................................................................................. ............................... 26 Statementof activities ................................................................................... ............................... 28 Fund financial statements Balance sheet — governmental funds ............................................................. ............................... 30 Reconciliation of the balance sheet of the governmental funds to the statement of net assets .... 32 Statement of revenues, expenditures, and changes in fund balances — governmental funds ....... 33 Reconciliation of the statement of revenues, expenditures; and changes in fund balances of governmental funds to the statement of activities ...................................... ............................... 35 Statement of net assets — proprietary funds .................................................. ............................... 36 Statement of revenues, expenses, and changes in fund net assets — proprietary funds ................ 39 Statement of cash flows — proprietary funds ................................................. ............................... 40 Statement of fiduciary assets and liabilities .................................................. ............................... 42 Notes to financial statements ........................................................................... ............................... 43 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule — budget and actual — all governmental funds and enterprise ... funds— budgetary basis ...................................................... ............................... 78 Budgetary comparison schedule — budget to GAAP reconciliation .... ............................... 80 Note to required supplementary information — budgetary reporting .... ............................... 81 Schedule of Funding Progress for Health and Dental Plans ................. ............................... 82 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet — nonmajor governmental funds ............................. ............................... 84 Combining statement of revenues, expenditures, and changes in fund balances — nonmajor governmentalfunds ....................................................................................... ............................... 85 Combining statement of net assets — nonmajor enterprise funds ..................... ............................... 88 Combining statement of revenues, expenses, and changes in fund net assets — nonmajor enterprisefunds ............................................................................................. ............................... 89 Combining statement of cash flows — nonmajor enterprise funds ................... ............................... 90 Combining statement of net assets — internal service funds ............................ ............................... 92 Combining statement of revenues, expenses, and changes in fund net assets — internal service funds.............................................................................................................. ............................... 93 Combining statement of cash flows — internal service funds ........................... ............................... 94 Statement of changes in assets and liabilities — agency funds ......................... ............................... 96 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2010 Page STATISTICAL SECTION (UNAUDITED) Netassets by component ..................................................................................... ............................... 99 Changesin net assets ........................................................................................... ............................... 100 Fund balances — governmental funds .................................................................. ............................... 102 Changes in fund balances — governmental funds ................................................ ............................... 103 General government tax revenues by source ....................................................... ............................... 104 Assessed and taxable value of property ............................................................... ............................... 105 Property tax rates — direct and overlapping governments ................................... ............................... 106 Property tax budgets and collections ................................................................... ............................... 107 Principaltaxpayers .............................................................................................. ............................... 108 Principal water system customers ....................................................................... ............................... 110 Sales history and total water charges .................... ............................... ................ ............................... 111 Principal sewer system customers ....................................................................... ............................... 112 Sales history and total sewer charges .................................................................. ............................... 113 Ratios of outstanding debt by type ...................................................................... ............................... 114 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 115 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures...................................................................................................... ............................... 116 Computation of direct and overlapping debt ....................................................... ............................... 117 Legal debt margin information ............................................................................ ............................... 118 General obligation debt annual maturity schedule .............................................. ............................... 119 Schedule of revenue bond coverage .................................................................... ............................... 120 Revenue debt annual maturity schedule .............................................................. ............................... 121 Revenue debt annual maturity by funding source ............................................... ............................... 122 Demographic and economic statistics ................................................................. ............................... 124 Principalemployers ............................................................................................. ............................... 125 Full -time equivalent city government employees by function ............................ ............................... 126 Operatingindicators by function ......................................................................... ............................... 128 Capitalassets by function .................................................................................... ............................... 130 COMPLIANCE SECTION 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.. 133 Report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A- 133 ................................................................................................................................................... 135 Schedule of expenditures of federal awards ........................................................ ............................... 137 Notes to the schedule of expenditures of federal awards .................................... ............................... 142 Schedule of findings and questioned costs .......................................................... ............................... 143 December 15, 2010 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa � r '4 ®Igo CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2010 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. This report consists of management's representation concerning the finances of the City of Iowa City. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The CAFR reflects all funds of the City in accordance with standards set by the Governmental Accounting Standards Board (GASB). In 1999, GASB adopted Statement No. 34, Basic Financial Statements — Management's Discussion and Analysis — For State and Local Governments. The final effective date for the implementation of GASB No. 34 for the City of Iowa City was June 30, 2003. This report complies with those standards. This statement significantly changes governmental financial reporting in order to bring it closer to a private sector model. Chapter 11 of the Code of Iowa requires an annual audit to be performed. The independent public accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the requirements set forth in Chapter 11, the audit was also designed to meet the requirements of the Single Audit Act of 1996 and related Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments and Non - Profit Organizations. While, the financial statements are the responsibility of the City, the responsibility of the auditor is to express an opinion on the City's financial statements based on their audit. The goal of the independent audit is to provide reasonable assurance that the City's financial statements for the fiscal year ended, June 30, 2010 are free of material misstatement. The audit is conducted in accordance with generally accepted auditing standards and involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Iowa City's financial statements for the fiscal year ended, June 30, 2010, are fairly presented in conformity with GAAP. The independent auditors' report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to these federal programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management and the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget (OMB) Circular A -133, Audits of State, Local Governments and Non - Profit Organizations. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors' reports on the internal accounting and administrative controls and compliance with applicable laws and regulations are included in the compliance section of this report. GAAP require 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, but three members are nominated from specific districts, and the four other members are nominated at large. The Council elects the Mayor from its own members for a two - year term. 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. He supervises 557 full -time and 72 part-time permanent municipal employees and 406 temporary employees, including a police force of 76 sworn personnel and a fire department of 59 firefighters. 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, maintenance of grounds and buildings, 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. And since 1971, the City has operated 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 15. 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. Encumbrances outstanding at year -end for the governmental fund types are reflected as reservations of the fund balances. Appropriations that are not encumbered lapse at the end of the year. Information Useful in Assessing the Government's Economic Condition The City's economic strength is based upon education, medical services, and diversified manufacturing. The University of Iowa is the City's largest employer with over 35,000 employees and the University of Iowa Hospitals and Clinics is the largest university -owned teaching medical center in the United States. The City also has a significant number of private employers who have a history of providing stable and increasing employment in the community. The relative stability of the University of Iowa, coupled with the City's multi- sector base of industrial and commercial interests, has helped insulate the City from the significant negative economic impacts related to unemployment. The City continues to see sustained production in our major local industries, such as ACT and NCS Pearson. Continued economic development efforts involving the Iowa City and Coralville Chambers of Commerce, local private interests, the University of Iowa and other surrounding communities through participation as members of the Iowa City Area Development Group, have proved positive with the retention and expansion of businesses. In addition, the corridor between Iowa City and Cedar Rapids has been identified as one of the major growth areas for new business development in the State of Iowa. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. There have been budget challenges faced by the State of Iowa; however, the City's economy as a whole continues to grow. The major employers have been able to maintain their workforce size. The unemployment rate for Iowa City continues to remain low at 5.0% for the month of June 2010, as compared to 6.6% for the State of Iowa, and 9.5% for the national average. The City has consistently experienced modest increases in assessed property valuations. The rate of new housing construction stayed consistent in comparison to the prior year with 127 new single - family houses and 81 multi - family dwelling units added to the tax rolls for the year ended December 31, 2009. This, along with the low unemployment rate, continues to be indicative of the City's relative economic stability. The 2000 census population of Iowa City was 62,220. Based on the United States Census Bureau, the population was estimated to be 69,086 in 2010; this represents an 11.0% increase. In response to national economic recession, the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, was designed to preserve and create jobs and promote economic recovery, assist people impacted by the recession, provide investments needed to increase economic efficiency, and stabilize state and local government budgets. While Iowa City's housing market and unemployment have not felt the impact as greatly as other areas of the country, the City has been able to utilize stimulus funds to complete projects and strengthen the local economy. Iowa City applied for funds totaling $56,659,268 and has been approved for $6,970,540. These projects include upgrading LED light fixtures in the parking structures, reconstructing of airport runways, and purchasing three new buses. In addition, the State of Iowa's stimulus program, I -JOBS, is designed to create jobs, strengthen the economy, and build a safer, stronger, greener and smarter Iowa. The City has applied for $14,718,867 in I -JOBS funds and has been approved for $8,012,132, with an additional $6,504,708 approved if funds become available. These funds are being used for projects including building a fourth fire station, relocating the North Wastewater Treatment Plant, and the UniverCity Neighborhood Partnership, a joint project between the City and the University of Iowa to ensure the neighborhoods around the University of Iowa campus remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. There are many signs that the City remains healthy and vibrant with great promise for the future. The University of Iowa continues to add new buildings and facilities. The City continues to see sustained production in major local industries. Industrial and commercial interests within the community continue to thrive. Major Initiatives Iowa City continues to deal with the recovery efforts from the flood experienced in 2008. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster declaration, which brought the Federal Emergency Management Agency (FEMA) technical and financial assistance to Iowa City. These on -going efforts include relocation of the North Wastewater Treatment Plant, elevating Dubuque Street and rebuilding Park Road Bridge, constructing levees to prevent future flooding, as well as, rebuilding the City's Animal Shelter. In addition, the City received $23,293,000 in Hazard Mitigation Grants and Community Development Block Grants and is in the process of acquiring properties in the flood - impacted neighborhoods. The City is developing a general industrial park on the southeast side. This project involves annexing and rezoning 180 acres of land and building the street, water, and sewer infrastructure needed to support industrial businesses. This project is estimated to cost $11,740,000 and will be funded through Tax Increment Financing (TIF). This project is scheduled to be completed in phases, with the land being "shovel ready" for industries to build. The City of Iowa City is in the planning process of constructing a mixed -use parking facility adjacent to downtown Iowa City. The mixed -use parking facility will include three components: parking facility consisting of approximately 600 parking spaces, commercial space of approximately 25,000 — 35,000 square feet, and 25 - 75 workforce housing units. The City is hoping to work with a private partner to develop the commercial and housing spaces. As this is still in the planning phase, the cost of this project is unknown, but it is anticipated that the parking facility will be financed with bonds and the commercial and housing space will be funded by the private developer in conjunction with the City. The City anticipates establishing an urban renewal area for the purposes of allowing Tax Increment Financing of the commercial and residential space. The City has received grants totaling $3,950,000 to construct new single family homes in Iowa City to replace homes lost during the 2008 flood. These funds can be used to assist the homebuyer with the downpayment of up to 25% of the home cost. A total of 77 new homes have been approved in the first two rounds of the Single Family New Construction (SFNC) Program. The City is now soliciting proposals from the building community to construct approximately 31 additional homes in Iowa City by December 31, 2012. In addition, the City and the University of Iowa have joined together in a cooperative effort to acquire and rehabilitate 25 homes in the neighborhoods surrounding the University of Iowa Campus to ensure the neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The City has secured a $1,250,000 I -JOBS grant for the program. Upcoming projects for the City include Moss Green Urban Village, Towncrest Urban Renewal, and Riverfront Crossing Development. The City has established an urban renewal area for the development of Moss Green Urban Village, a 243 -acre, 18 -lot office research and mixed -use subdivision on the northeast edge of the city. The Towncrest Urban Renewal Plan was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. The costs for Towncrest Renewal are estimated at $1,400,000 and will be covered through TIE The Riverfront Crossing Development Plan is an initiative to revitalize the area south of Iowa City's downtown area. It will be a mixed -use zoning district that will allow for commercial and residential development with identified costs estimated at $800,000 and additional expenses anticipated. A TIF district is being considered for this project. This project will include purchasing and rehabilitating the train depot, which relates to the recent announcement of a $230,000,000 federal grant that will be used to develop passenger rail services from Chicago to Iowa City, pending matching State funds. Long -term Financial Planning In preparing the financial plan for the three years ending June 30, 2014, the process of budget balancing has been difficult. With the continued tax limitations imposed by the state (specifically the residential rollback factor) and other federal and state regulations and mandates, the municipal service needs for our growing community are becoming increasingly difficult to satisfy. In balancing the budget for the three -year period, the City attempted to maintain service levels, wherever practical. In addition, our planning has been directed at maintaining our current fiscal strength and avoiding any erosion of that fiscal position, including the City's Aaa bond rating. A continuing major objective in the three -year financial plan is to maintain or increase the City's cash reserve position. In addition, procedures were adopted to allocate unreserved fund balances between the contingency and undesignated fund balances. The contingency fund is available during the fiscal year for unanticipated and unbudgeted expenditures, while the undesignated fund balance is intended to be maintained as working capital. The City is committed to drawing from the undesignated fund balance only in emergency situations. This unreserved fund balance allocation along with specific budgeting techniques has allowed the City to increase or maintain fund balances over the past year. The City continues to pursue cooperative efforts with other local governments. Joint funding, purchasing, planning and other efforts allow the City to meet mandates for new and improved services in the future at the most reasonable cost. Joint cooperation currently encompasses regional transportation planning, human services, solid waste management planning, a hazardous materials response program, an enhanced 911 emergency communications system, community relations, joint operation of an animal control facility and an indoor swimming pool facility, and joint economic development efforts. While such cooperative efforts are not new in concept, the City expects to enter into more agreements with neighboring governmental subdivisions, as well as with the University of Iowa. 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 Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009. 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 Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual 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 twenty five consecutive years. I believe our current report continues to conform to the Certificate requirements and I am submitting it to GFOA to determine its eligibility for another certificate. Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2010. The City Council, as required by law, is responsible for the complete and accurate preparation of the City's Comprehensive Annual 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 City's Controller, Robin Marshall, Assistant Controller, Sara Sproule, Internal Auditor, Nickolas Schaul, Senior Accountant, Justin Armatis and Payroll Accountant, Chris Hurlbert. 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, Kevin O'Malley Director of Finance ��1 1�5 5 �5 '� i i A } Citizens of Iowa Citi 1 Mayor & City Council Airport Commission Boards & Commissions City Attorney City Clerk City Manager Library Board of Trustees I Airport Manager Assistant Finance City Director Manager fi nadm /cityorgcha rt9 -09. pdf (Library Director Fire Housing & Transportation Parks & Planning & Chief Inspection Services Community Services Recreation Development Director Director Director Director Admin. & Admin. Administration Administration Support Parking Building - CBD Maintenance Community Emergency Inspection Transit Operations Development Operations - Cemetery Economic Fire Housing Authority Para- Transit Forestry Development Prevention Housing JCCOG Programs Training & - g Government Equipment Inspection Buildings Neighborhood Parks Services Weather Alert Siren System Recreation Urban Planning Emergency Mgmt. Admin. Broadband Appointed Telecomm. Accounting Human Rights Purchasing Officials Document Human Services Resources Information Director/ Technology Manager Services Revenue Employed by Risk Management fi nadm /cityorgcha rt9 -09. pdf (Library Director Fire Housing & Transportation Parks & Planning & Chief Inspection Services Community Services Recreation Development Director Director Director Director Admin. & Admin. Administration Administration Support Parking Building - CBD Maintenance Community Emergency Inspection Transit Operations Development Operations - Cemetery Economic Fire Housing Authority Para- Transit Forestry Development Prevention Housing JCCOG Programs Training & - g Government Equipment Inspection Buildings Neighborhood Parks Services Weather Alert Siren System Recreation Urban Planning Emergency Mgmt. Commission I Police Public Works Senior Center Chief Director Coordinator Administration Administration Energy L Senior Center Animal Services Conservation Community Engineering Services Equipment Criminal Maintenance Investigations Landfill Emergency Solid Waste Collection Comm. Stormwater Management Patrol Streets Records & Traffic Engineering Investigations Wastewater Management - Water Appointed Elected By Officials Council & Mayor Director/ Manager Appointed Employed by by City Board or Manager Commission I Police Public Works Senior Center Chief Director Coordinator Administration Administration Energy L Senior Center Animal Services Conservation Community Engineering Services Equipment Criminal Maintenance Investigations Landfill Emergency Solid Waste Collection Comm. Stormwater Management Patrol Streets Records & Traffic Engineering Investigations Wastewater Management - Water Mayor Council Member and Mayor Pro tem Council Member Council Member Council Member Council Member Council Member Acting City Manager City Clerk City Attorney CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2010 ELECTED OFFICIALS Matt Hayek Ross Wilburn Regenia Bailey Connie Champion Terry Dickens Susan Mims Mike Wright APPOINTED OFFICIALS Dale E. Helling Marian K. Karr Eleanor Dilkes DEPARTMENT DIRECTORS Director of Housing and Inspection Services Library Director Director of Planning & Community Development Director of Public Works Director of Transportation Services Senior Center Coordinator Fire Chief Parks and Recreation Director Director of Finance Chief of Police Douglas W. Boothroy Susan Craig Jeff Davidson Rick Fosse Chris O'Brien Linda Kopping Andrew Rocca Mike Moran Kevin O'Malley Sam Hargadine is Term Expires January 2, 2012 January 2, 2012 January 2, 2012 January 2, 2014 January 2, 2014 January 2, 2014 January 2, 2012 Date of Hire August 16, 1975 May 21, 1979 March 18, 1996 September 22, 1975 July 28, 1975 January 26, 1981 February 22, 1984 December, 29, 1997 March 20, 1995 July 14, 1978 September 26, 1983 August 19, 1985 August 29, 2005 Certificate of Achievement for Excellence in Financial Deporting Presented to City of Iowa City Iowa For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. �C,% t•JI��,,C O%F t>?diED STATES p AND President Executive Director I VA EideBaill 5�, ,y CPAs & BUSINESS ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the City of Iowa City, Iowa. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2010, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2010, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 13 www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 Dubuque, IA 52002 -2273 T 563.556.1790 1 E 563.557.7842 I EOE The management's discussion and analysis and other required supplementary information listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the City of Iowa City, Iowa. The introductory section, combining nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements of the City of Iowa City, Iowa. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is also not a required part of the basic financial statements of the City of Iowa City, Iowa. The combining nonmajor fund financial statements and the Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we express no opinion on them. Dubuque, Iowa December 15, 2010 14 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, 2010. 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 — 8 of this report. Financial Highlights • The assets of the City of Iowa City exceeded its liabilities at the close of the fiscal year ending June 30, 2010 by $425,683,000 (net assets). Of this amount, $98,203,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to its citizens and creditors. • The City's total net assets increased by $35,206,000 during the fiscal year. Governmental activities increased by $24,504,000 and business -type activities increased by $10,702,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $50,731,000, an increase of $8,608,000 in comparison with the prior year. Of this total amount, approximately $32,470,000, or 64% was unreserved and is available for spending at the City's discretion. • At the end of the current fiscal year, the City's unreserved, undesignated fund balance for the General Fund was $26,101,000, or 57% of total General Fund expenditures. • The City's total debt decreased by $19,425,000, during the current fiscal year. The key factor to this decrease was the City did not issue any new bonded debt, except as a refunding of revenue bonds to take advantage of lower interest rates and the retirement of bonds. The City was able to utilize Federal and State stimulus grants and a new local option sales tax, rather than debt, to fund some capital improvement projects. 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 assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the most recent fiscal year. All changes in net assets 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, traffic controls, and transit), Culture and Recreation, Community and Economic Development, General Government, and Interest on long -term debt. The business -type activities of the City include Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water. li: The government -wide financial statements may be found on pages 26 — 29 of this report. Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All 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 five major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants 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 30 — 35 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, 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 provide the same type of information as the government -wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three 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 88 — 90. 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 36 — 41 of this report. i[ 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 two fiduciary funds: Project Green and Library Foundation, which are maintained as agency funds. The basic fiduciary funds financial statements can be found on page 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 - 76 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non -major governmental funds, non -major enterprise funds, and internal service funds are presented immediately following the notes. Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $425,683,000 at the close of the fiscal year ended June 30, 2010. By far, the largest portion of the City's net assets reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), less 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 Assets June 30, 2010 (amounts expressed in thousands) 17 Governmental Business -type activities activities Total 2010 2009 2010 2009 2010 2009 Current and other assets $ 142,590 $ 126,588 $ 100,458 $ 99,378 $ 243,048 $ 225,966 Capital assets 173,071 167,330 255,613 254,404 428,684 421,734 Total Assets 315,661 293,918 356,071 353,782 671,732 647,700 Long -term liabilities outstanding 75,466 83,928 95,080 103,551 170,546 187,479 Current and other liabilities 70,426 64,725 5,077 5,019 75,503 69,744 Total Liabilities 145,892 148,653 100,157 108,570 246,049 257,223 Net assets: Invested in capital assets, net of related debt 111,703 100,741 172,601 162,211 284,304 262,952 Restricted 25,588 26,586 17,588 19,159 43,176 45,745 Unrestricted 32,478 17,938 65,725 63,842 98,203 81,780 Total Net Assets $ 169,769 $ 145,265 $ 255,914 $ 245,212 $ 425,683 $ 390,477 17 A portion of the City's net assets (10.1% or $43,176,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (23.1% or $98,203,000) 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, 2010, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental Activities: Governmental activities increased the City's net assets by $24,504,000. The increase in net assets of governmental activities is primarily due to receiving grants to fund expenditures in capital assets for flood recovery and mediation and community development projects. The following is a more detailed review of FY10's operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) iR Governmental Business -type activities activities Total 2010 2009 2010 2009 2010 2009 Revenues: Program Revenues: Charges for services $ 7,388 $ 6,701 $ 35,943 $ 36,227 $ 43,331 $ 42,928 Operating grants and contributions 15,554 8,185 7,777 7,293 23,331 15,478 Capital grants and contributions 8,291 3,773 6,570 3,705 14,861 7,478 General Revenues: Property taxes 49,467 47,085 - - 49,467 47,085 Road use tax 5,525 5,254 5,525 5,254 Local option sales tax 8,141 - 8,141 - Other taxes 1,535 1;489 - - 1,535 1,489 Earnings on investments 1,766 3,057 1,311 2,577 3,077 5,634 Gain on disposal of capital assets - - 230 360 230 360 Other 3,893 4,894 464 317 4,357 5,211 Total revenues 101,560 80,438 52,295 50,479 153,855 130,917 Expenses: Public safety 19,955 20,730 - - 19,955 20,730 Public works 16,806 15,177 16,806 15,177 Culture and recreation 12,238 9,574 12,238 9,574 Community and economic development 16,913 8,726 16,913 8,726 General government 7,549 7,600 7,549 7,600 Interest on long -term debt 2,970 3,264 - - 2,970 3,264 Wastewater treatment - - 11,274 11,925 11,274 11,925 Water 8,309 9,185 8,309 9,185 Sanitation 7,705 7,296 7,705 7,296 Housing authority 7,838 7,238 7,838 7,238 Parking 4,536 4,489 4,536 4,489 Airport 724 693 724 693 Stormwater 1,187 1,223 1,187 1,223 Cable television - - 645 633 645 633 Total expenses 76,431 65,071 42,218 42,682 118,649 107,753 Change in net assets before transfers 25,129 15,367 10,077 7,797 35,206 23,164 Transfers (625) 205 625 (205) - - Change in net assets 24,504 15,572 10,702 7,592 35,206 23,164 Net assets beginning of year 145,265 129,693 245,212 237,620 390,477 367,313 Net assets end of year $ 169,769 $ 145,265 $ 255,914 $ 245,212 $ 425,683 $ 390,477 iR The total revenues for governmental activities for FY10 were $101,560,000. Governmental activities are primarily funded through taxes (63.7% or $64,668,000) and grants and contributions (23.5% or $23,845,000) Grants and contributions increased from prior year by $11,887,000 due to federal ARRA grants, state I -JOBS grants, and Community Development Block Grants used to fund capital and flood mediation projects. Expenses for governmental activities totaled $76,431,000. Governmental activities are tracked by function including public safety, public works, community and economic development, culture and recreation, and general government. In FY10, public safety accounted for the highest portion of governmental expenses (26.1% or $19,955,000). Community and economic development (22.1% or $16,913,000) and public works (22.0% or $16,806,000) made up another large portion of governmental expenses and each increased over the prior year due to flood recovery and mediation projects that were covered by various grants. Business -type Activities: Business -type activities increased the City's total assets by $10,702,000. The increases in net assets were primarily in the Wastewater, Airport, and Water funds. For all business -type activities, revenues exceeded expenses by $10,077,000. Revenues for business -type activities totaled $52,295,000. The primary revenue source for business -type activities is charges for services (68.7% or $35,943,000). In addition for FY10, the City's business type- activities had a significant portion of their revenues from grants and contributions (27.4% or $14,347,000). This is an increase of $3,349,000 to help fund capital and flood recovery projects for business -type activities. The total expenses for business -type activities in FY10 were $42,218,000. Wastewater treatment represented the highest portion of business -type activities (26.7% or $11,274,000), with Water (19.7% or $8,309,000), Housing Authority (18.6% or $7,838,000), and Sanitation (18.3 or $7,705,000) making up the remainder of the majority of business -type activities expenses. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business -type activities. I Governmental Activities FY2010 Revenue by Source Other Taxes Misc. Othe Charges for Other 15% th services 7% Property taxes 49% Grants and Contributions 23% Business -Type Activities FY2010 Revenue by Source Misc. Other Grants and 4% Contributions 27% Charges for services 69% 20 Q Business -Type Activities FY2010 Expenditures by Program Area (amounts expressed in thousands) 14,000 Wastewater Treatment 12,000 10,000 Housing Authority - Water S anitation 8,000 A 6,000 Parking 4,000 Stormwater 2,000 Airport Cable Tv 0 ti "1 0 Program Area I Govermnental Activities FY2010 Expenditures by Program Area (amounts expressed in thousands) 24,000 22,000 Public Safety Public. Community and 20,000 Works Econ Dev 18,000 16,000 14,000 Culture and Recreation 12,000 ^� A 10,000 General Govt 8,000 6,000 Interest Expense 4,000 2,000 0 Program Area Q Business -Type Activities FY2010 Expenditures by Program Area (amounts expressed in thousands) 14,000 Wastewater Treatment 12,000 10,000 Housing Authority - Water S anitation 8,000 A 6,000 Parking 4,000 Stormwater 2,000 Airport Cable Tv 0 ti "1 0 Program Area I Business -Type Activities FY2010 Expenditures by Program Area (amounts expressed in thousands) 14,000 Wastewater Treatment 12,000 10,000 Housing Authority - Water S anitation 8,000 A 6,000 Parking 4,000 Stormwater 2,000 Airport Cable Tv 0 ti "1 0 Program Area I 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, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the fiscal year ended June 30, 2010, the City's governmental funds reported combined ending fund balances of $50,731,000, an increase of $8,608,000 in comparison with the prior year. Of this total amount, $32,470,000 constitutes unreserved 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 (36.0 %) is reserved to indicate that it is not available for new spending because it has already been committed. This remainder has been committed 1) to fund various debt service payments ($13,952,000), 2) to fund employee retirement commitments ($2,124,000), and 3) restricted by grant agreements ($719,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2010, the unreserved fund balance of the General Fund was $26,101,000 while General Fund's total fund balance was $26,507,000. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 57.3% of total General Fund expenditures ($45,565,000), while total fund balance represents 58.2% of that same amount. The fund balance of the City's General Fund increased by $10,590,000 during the current fiscal year. This was due to collection of a local option sales tax that took effect in FY10 to be used to fund future capital improvement projects. This tax will be collected through FY13. In addition, the City's property tax collected in FY10 increased due to higher taxable property values. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,207,000) as compared to a deficit balance of ($1,883,000) in the prior period. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in FYI I to cover the capital expenditures. The Other Shared Revenue and Grants Fund had a deficit fund balance of ($673,000) as compared to a deficit balance of ($720,000) in the prior period. This fund accounts for transactions from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Economic Development. The Debt Service Fund had a fund balance of $13,952,000, an increase of $2,193,000 from the prior year, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). 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 assets of the enterprise funds were $248,009,000, a net asset increase of $9,907,000. This was primarily due to an increase in capital contributions of federal and state grants to fund capital improvement projects to help with flood recovery and mediation. Of the enterprise funds' net assets, $172,601,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $57,820,000, an increase of $1,088,000 compared to the previous year. WIA The Internal Service funds showed net assets totaling $22,446,000 as of June 30, 2010, an increase of $2,045,000 from the previous year. 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 three budget amendments during the fiscal year, which is higher than our common practice of two amendments. These amendments increased the expenditure budget by $152,671,000 to a total of $293,161,000. This represented a 108.7% increase. The major increase was due to capital projects in governmental and business -type funds due to timing of completion of projects, ongoing recovery from the flood of 2008, and stimulus grants received to help with economic development. 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, 2010 amounts to $428,684,000 (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, 2010 increased by $5,741,000 for governmental activities compared to the prior year and increased by $1,209,000 for business- type activities over the prior year. The following table reflects the $428,684,000 investment in capital assets (net of accumulated depreciation). City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Major capital asset events during the current fiscal year included the following: • Continuation of airport projects included runway design, grading, lighting, paving, and runway extension. Project costs during the year totaled $3,733,000 added with prior years' costs there was $6,286,000 remaining in construction in progress at fiscal year end. • Completion of the McCollister Boulevard extension project to connect Old Highway 218 at its intersection with Mormon Trek Boulevard to Gilbert Street capitalized for $7,439,000. $2,462,000 remains in construction in progress for a variety of additional street and bridge construction in new residential areas and replacement and expansion of existing infrastructure. 23 Governmental Business -type Activities Activities Total 2010 2009 2010 2009 2010 2009 Land $ 21,838 $ 17,483 $ 25,847 $ 25,783 $ 47,685 $ 43,266 Buildings 45,041 44,973 72,293 74,866 117,334 119,839 Improvements other than buildings 3,580 3,721 6,846 7,233 10,426 10,954 Machinery and equipment 15,908 12,389 8,773 9,265 24,681 21,654 Infrastructure 80,863 74,458 130,545 131,052 211,408 205,510 Construction in progress 5,841 14,306 11,309 6,205 17,150 20,511 Total $ 173,071 $ 167,330 $ 255,613 $ 254,404 $ 428,684 $ 421,734 Major capital asset events during the current fiscal year included the following: • Continuation of airport projects included runway design, grading, lighting, paving, and runway extension. Project costs during the year totaled $3,733,000 added with prior years' costs there was $6,286,000 remaining in construction in progress at fiscal year end. • Completion of the McCollister Boulevard extension project to connect Old Highway 218 at its intersection with Mormon Trek Boulevard to Gilbert Street capitalized for $7,439,000. $2,462,000 remains in construction in progress for a variety of additional street and bridge construction in new residential areas and replacement and expansion of existing infrastructure. 23 • On -going work on the Inverted Siphon Sewer Project to construct a horizontal directional drilled inverted siphon sewer, inlet and outlet structures, sanitary manholes, and sanitary sewer. Expenses of $1,174,000. were in construction in progress at the end of the fiscal year. • Continued construction on a new landfill cell. $1,387,000 in expenses for FY10 added to prior years' expenses for a total of $ 1,894,000 in construction in progress at fiscal year end. • Public Works salt storage building completed and capitalized for $963,000. • Ground breaking on a new fourth fire station. Expenses of $562,000 were in construction in progress at the end of the fiscal year. Total project costs are estimated at $4,089,000. 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 $153,385,000. Of this amount, $75,050,000 comprises debt backed by the full faith and credit of the City. However, 5.0% of this total, $3,750,000, is debt that serves enterprise funds and is abated by their charges for services and 8.4% of this total, $6,320,000, is debt that will be paid with Tax Increment Financing revenues. The remaining $78,335,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business -type Activities Activities Total 2010 2009 2010 2009 2010 2009 General obligation bonds $ 71,300 $ 80,654 $ 3,750 $ 4,341 $ 75,050 $ 84,995 Revenue bonds - - 78,335 87,815 78,335 87,815 Total $ 71,300 $ 80,654 $ 82,085 $ 92,156 $ 153,385 $ 172,810 During the current fiscal year the City's total bonded debt decreased by $19,425,000. The City did not issue any General Obligation bonds during FY10. The City did issue $9,110,000 of parking revenue bonds and $15,080,000 of wastewater revenue bonds for current refunding of $9,275,000 and $16,240,000 of parking and wastewater revenue bonds, respectively. The refundings were undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $3,447,000 in future debt service payments and an economic gain of $2,884,000. 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, 2010 were as follows: General obligation bonds Aaa Parking revenue bonds A Wastewater treatment revenue bonds A Water revenue bonds A The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of General Obligation Debt outstanding to 5% of the assessed value of all taxable property in Iowa City. The current debt limitation for the City is $218,974,000. With outstanding General Obligation Debt applicable to this limit of $75,050,000 we are utilizing 34.3% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. 24 Economic Factors and Next Year's Budget and Rates In May 2009, the voters of Iowa City approved a one cent local option sales tax. This tax will be collected for four years beginning July 1, 2009. In FY10, the City collected $8,141,000 in local option sales tax. The City Council has indicated that the priorities for use of this sales tax will be the elevation of Dubuque Street, including the reconstruction of Park Road Bridge, and the relocation of the North Wastewater Plant. Sales tax proceeds are used to provide local match for available state and federal funding and to reduce our reliance on property tax and increased user fees otherwise needed to fund such projects. During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee tax as a revenue alternative to property tax effective for FYI 1. The Iowa City Council passed a local franchise fee tax of 1% on natural gas and electricity to support additional public safety initiatives that became effective April 1, 2010. For the last three months of FY10, the City collected $47,000. The City expects continued constraints by the State's property tax formula. The rollback on residential properties negatively affects the City's general operating funds and 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 balance budget in the General Fund for FYI I that strives to maintain current service delivery levels. The tax levy rate per $1,000 of taxable valuation for FYI I is provided below: General Levy $ 8.100 Debt Service Levy 4.438 Employee Benefits Levy 3.581 Transit Levy 0.950 Liability Insurance Levy 0.417 Library Levy 0.270 Total City Levy $ 17.756 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 E. Washington Street, Iowa City, IA, 52240. n CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2010 (amounts expressed in thousands) Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Internal balances Due from other governments Prepaid insurance Inventories Assets held for resale Restricted assets: Equity in pooled cash and investments Capital assets: Land and construction in progress Other capital assets (net of accumulated depreciation) Total assets Liabilities Accounts payable Contracts payable Accrued liabilities Interest payable Deposits Due to other governments Notes payable Unearned revenue Noncurrent liabilities: Due within one year: Employee vested benefits Bonds payable Due in more than one year: Employee vested benefits Other Post Employment Benefits Obligation Notes Payable Bonds payable Landfill closure /post - closure liability Total liabilities N Governmental Business -type Activities Activities Total $ 53,778 $ 52,189 $ 105,967 48,809 - 48,809 691 3,104 3,795 147 538 685 15,842 997 16,839 (9,175) 9,175 - 11,852 1,148 13,000 13 - 13 557 418 975 663 - 663 19,413 32,889 52,302 27,679 37,156 64,835 145,392 218,457 363,849 315,661 356,071 671,732 4,144 562 4,706 786 1,167 1,953 4,123 439 4,562 230 1,864 2,094 894 647 1,541 2,014 118 2,132 498 - 498 57,737 280 58,017 1,134 288 1,422 9,647 4,025 13,672 966 235 1,201 1,363 383 1,746 211 - 211 62,145 78,989 141,134 - 11,160 11,160 145,892 100,157 246,049 (continued) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) June 30, 2010 (amounts expressed in thousands) Net Assets Invested in capital assets, net of related debt Restricted for or by: Employee benefits Capital projects Debt service Assets held for resale Streets Other purposes Bond ordinance State statute Future improvements Grant agreement Unrestricted Total net assets Governmental Business -type Activities Activities Total $ 111,703 $ 172,601 $ 284,304 2,124 - 2,124 8,043 - 8,043 13,952 - 13,952 663 - 663 87 - 87 - 13,399 13,399 - 906 906 719 3,283 4,002 32,478 65,725 98,203 $ 169,769 $ 255,914 $ 425,683 The notes to the financial statements are an integral part of this statement. 27 Functions/Programs: Governmental activities: Public safety Public works Culture and recreation Community and economic development General government Interest on long -term debt Total governmental activities Business -type activities: Wastewater Treatment Water Sanitation Housing Authority Parking Airport Stormwater Cable television Total business -type activities Total CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2010 (amounts expressed in thousands) Charges Expenses for Services Program Revenues Operating Capital Grants and Grants and $ 19,955 $ 2,980 $ 1,339 $ 120 16,806 1,061 1,484 5,574 12,238 773 306 14 16,913 - 12,425 2,583 7.,549 2,574 - - 2,970 - - - 76,431 7,388 15,554 8,291 11,274 12,637 - 2,115 8,309 7,957 6 572 7,705 8,096 6 6 7,838 180 7,765 25 4,536 5,377 - - 724 289 - 3,311 1,187 617 - 541 645 790 - - 42,218 35,943 7,777 6,570 General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric tax Local option sales tax Utility franchise tax Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues and transfers Changes in net assets Net assets beginning of year Net assets end of year The notes to the financial statements are an integral part of this statement. W Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Aotivitiac Aotivitiac Tnta1 $ (15,516) $ - $ (15,516) (8,687) - (8,687) (11,145) - (11,145) (1,905) - (1,905) (4,975) - (4,975) r? 97m - r? 97m - 3,478 3,478 - 226 226 - 403 403 - 132 132 - 841 841 - 2,876 2,876 - (29) (29) - 145 145 - 8,072 8,072 ray 1981 R 07? r47 17 1 49,467 - 49,467 5,525 - 5,525 699 - 699 789 - 789 8,141 - 8,141 47 - 47 1,766 1,311 3,077 - 230 230 3,893 464 4,357 (625) 625 - 69,702 2,630 72,332 24,504 10,702 35,206 145,265 245,212 390,477 $ 169,769 $ 255,914 $ 425,683 of CITY OF IOWA CITY, IOWA BALANCESHEET GOVERNMENTAL FUNDS June 30, 2010 (amounts expressed in thousands) Of Special Revenue Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Assets Equity in pooled cash and investments $ 18,539 $ 1,932 $ $ $ 12,813 $ 1,354 $ 34,638 Receivables: Property tax 26,699 9,825 12,278 7 48,809 Accounts and unbilled usage 514 - - 153 667 Interest 42 59 19 120 Notes 386 12,032 1,823 1,601 - 15,842 Advances to other funds 1,645 - 18 - 208 - 1,871 Due from other governments 4,045 154 14 4,048 - 3,519 11,780 Inventories 234 - - - - 234 Assets held for resale - 498 165 663 Restricted assets: Equity in pooled cash and investments 8,948 41 10,424 19,413 Total assets $ 61,052 $ 11,911 $ 12,064 $ 6,410 $ 26,959 $ 15,641 $ 134,037 (continued) Of CITY OF IOWA CITY, IOWA BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2010 (amounts expressed in thousands) The notes to the financial statements are an integral part of this statement. 0 Special Revenue Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable $ 1,136 $ 16 $ $ 191 $ $ 2,244 $ 3,587 Contracts payable - - - 786 786 Accrued liabilities 1,535 2 10 120 56 1,723 Advances from other funds 1,288 - 4 1,849 - 3,141 Due to other governments 15 - 37 1,962 2,014 Notes payable - - - 498 - 498 Deferred revenue 29,681 9,769 12,050 4,384 13,007 1,772 70,663 Liabilities payable from restricted assets: Deposits 890 - - 4 - - 894 Total liabilities 34,545 9,787 12,064 7,083 13,007 6,820 83,306 Fund balances: Reserved for: Inventories 234 - - - - 234 Assets held for resale - 498 165 663 Encumbrances 58 25 - 372 455 Debt service - - - 13,952 - 13,952 Employee retirement commitments - 2,124 - 2,124 Perpetual care 114 - - 114 Restricted by grant agreement - 719 719 Unreserved Undesignated: General fund 26,101 - - 26,101 Special revenue funds - (1,915) 241 (1,674) Capital projects funds - - 8,043 8,043 Total fund balances 26,507 2,124 (673) 13,952 8,821 50,731 Total liabilities and fund balances $ 61,052 $ 11,911 $ 12,064 $ 6,410 $ 26,959 $ 15,641 $ 134,037 The notes to the financial statements are an integral part of this statement. 0 CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2010 (amounts expressed in thousands) Total governmental fund balances $ 50,731 Amounts reported for governmental activities in the statement of net assets 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 assets. Prepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. Other long -term assets are not available to pay for current period expenditures and therefore are deferred in the funds: Notes receivable - Earned but unavailable Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. Bonds payable are not due and payable in the current period and therefore are not reported in the funds. Notes payable are not due and payable in the current period and therefore are not reported in the funds.. Accrued interest on bonds Internal balance due to integration of internal service funds Total net assets of governmental activities The notes to the financial statements are an integral part of this statement. WIA 22,446 13 12,926 167,120 (1,991) (1,338) (71,792) (211) (230) (7,905) $ 169,769 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Revenues Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total revenues Expenditures Current: Public safety Public works Culture and recreation Community and economic development General government Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other Financing Sources (Uses) For the Year Ended June 30, 2010 (amounts expressed in thousands) Special Revenue 9,988 $ Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total $ 33,897 $ 9,988 $ $ $ 11,344 $ 3,914 $ 59,143 1,211 - 273 - - 1,211 4,254 - 1,169 19,205 6,776 31,404 2,243 135 - 47 - 8 2,433 1,355 - - 68 139 37 1,599 4,130 1 189 272 - 192 4,784 47,090 10,124 1,358 19,592 11,483 10,927 100,574 17,570 206 - 1,332 19,108 6,885 - 4,882 1,544 13,311 10,993 - - 273 11,266 1,484 - 1,399 6,021 1,616 10,520 6,658 412 - - 121 7,191 9,354 9,354 - - - 3,064 - 3,064 1,975 - 2 7,700 - 8,013 17,690 45,565 618 1,401 18,603 12,418 12,899 91,504 1,525 9,506 (43) 989 (935) (1,972) 9,070 Sale of capital assets 104 118 - 222 Insurance Recoveries - - - - 20 20 Transfers in 9,753 - 619 3,128 3,242 16,742 Transfers out (792) (9,618) (75) (1,561) - (5,400) (17,446) Total other financing sources and (uses) 9,065 (9,618) 43 (942) 3,128 (2,138) (462) Net change in fund balances 10,590 (112) - 47 2,193 (4,110) 8,608 Fund Balances, Beginning 15,917 2,236 (720) 11,759 12,931 42,123 Fund Balances, Ending $ 26,507 $ 2,124 $ $ (673) $ 13,952 $ 8,821 $ 50,731 The notes to the financial statements are an integral part of this statement. 33 34 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2010 (amounts expressed in thousands) Net change in fund balances - total governmental funds $ 8,608 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 $ 10,552 Capital assets contributed 824 Depreciation expense (5,893) 5,483 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 assets, 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 assets. Repayments of debt 9,354 Amortization of premium 76 9,430 Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues and are deferred in the governmental funds. 925 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 (79) Change in accrued post employment benefit obligations (861) Change in accrued interest on debt 18 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 assets differs from the change in fund balance by the cost of the capital asset sold. (283) Prepaid items in the governmental funds have been recorded as expenditures when paid. However, the statement of activities will report these items as expenses in the period that the corresponding net asset is exhausted. 13 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. 1,250 Change in net assets of governmental activities $ 24,504 The notes to the financial statements are an integral part of this statement. mi CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2010 (amounts expressed in thousands) Governmental Business -type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parkine Treatment Water Sanitation Authority Funds Total Funds Assets Current assets Equity in pooled cash and investments $ 5,677 $ 12,615 $ 11,636 $ 16,083 $ 3,272 $ 2,906 $ 52,189 $ 19,140 Receivables: Accounts and unbilled usage 24 1,228 795 775 42 240 3,104 24 Interest 8 178 278 41 29 4 538 27 Notes - - - - 997 - 997 - Advances to other funds - - 4,316 - - 4,316 - Due from other governments 578 185 35 46 304 1,148 72 Inventories - 418 - - - 418 323 Total current assets 5,709 14,599 13,312 21,250 4,386 3,454 62,710 19,586 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 1,486 9,645 4,595 13,762 3,283 118 32,889 - Capital assets: Land 6,798 758 6,296 1,787 732 9,476 25,847 45 Buildings 24,908 59,611 23,875 908 5,601 4,779 119,682 831 Improvements other than buildings 166 7,371 2,351 144 9 357 10,398 50 Machinery and equipment 779 9,962 10,434 158 147 634 22,114 14,230 Infrastructure - 87,477 48,615 11,298 - 42,293 189,683 1,087 Accumulated depreciation (13,965) (62,850) (21,149) (9,611) (3,652) (12,193) (123,420) (10,292) Construction in progress 151 1,483 711 2,592 - 6,372 11,309 - Total noncurrent assets 20,323 113,457 75,728 21,038 6,120 51,836 288,502 5,951 Total assets 26,032 128,056 89,040 42,288 10,506 55,290 351,212 25,537 (continued) 0, CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) PROPRIETARY FUNDS June 30, 2010 (amounts expressed in thousands) Governmental Business -type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parkine Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities Accounts payable $ 20 $ 91 $ 163 $ 128 $ 22 $ 138 $ 562 $ 557 Contracts payable 35 306 227 308 - 291 1,167 - Accrued liabilities 151 171 242 256 81 61 962 2,509 Due to other governments - - 32 70 16 - 118 - Deferred revenue 280 - - - - 280 Interest payable 218 1,173 473 1,864 Bonded debt payable (net of unamortized discounts) 422 1,899 1,704 4,025 - Total current liabilities 1,126 3,640 2,841 762 119 490 8,978 3,066 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 2 - 394 14 228 9 647 - Advances from other funds 1,523 - - - 18 1,505 3,046 Bonded debt payable (net of unamortized discounts) 8,724 45,603 24,662 - - - 78,989 - Other Post Employment Benefits Obligation 65 65 101 97 17 38 383 25 Landfill closure/postclosure liability - - - 11,160 - - 11,160 - Total noncurrent liabilities 10,314 45,668 25,157 11,271 263 1,552 94,225 25 Total liabilities 11,440 49,308 27,998 12,033 382 2,042 103,203 3,091 Net Assets Invested in capital assets, net of related debt 9,692 56,310 44,768 7,276 2,837 51,718 172,601 5,951 Restricted by bond ordinance 1,267 8,472 3,660 - - - 13,399 - Restricted by state statute - - - 906 - 906 Restricted by grant agreement - - - - 3,283 - 3,283 - Unrestricted 3,633 13,966 12,614 22,073 4,004 1,530 57,820 16,495 Total net assets $ 14,592 $ 78,748 $ 61,042 $ 30,255 $10,124 $53,248 248,009 $ 22,446 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 7,905 Net assets of business -type activities $ 255,914 The notes to the financial statements are an integral part of this statement. 37 M CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Operating Expenses: Personal services 1,775 1,874 2,246 2,497 936 647 Governmental 2,076 Commodities Business -type Activities - Enterprise Funds 393 Activities - 265 2,583 2,133 Services and charges 1,126 Other 1,920 Internal 6,743 532 Wastewater 8,966 Housing Enterprise 5,050 Service 7,430 Parking Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: 630 143 1,139 9,175 1,242 Total operating expenses 4,054 Charges for services $ 5,377 $12,637 $ 7,957 $ 8,096 $ 180 $ 1,696 $ 35,943 $ 15,930 Miscellaneous 26 73 28 57 210 37 431 49 Total operating revenues 5,403 12,710 7,985 8,153 390 1,733 36,374 15,979 Operating Expenses: Personal services 1,775 1,874 2,246 2,497 936 647 9,975 2,076 Commodities 248 645 987 393 45 265 2,583 2,133 Services and charges 1,126 2,531 1,920 4,540 6,743 532 17,392 8,966 3,149 5,050 5,153 7,430 7,724 1,444 29,950 13,175 Depreciation 905 4,178 2,180 630 143 1,139 9,175 1,242 Total operating expenses 4,054 9,228 7,333 8,060 7,867 2,583 39,125 14,417 Operating income (loss) 1,349 3,482 652 93 (7,477) (850) (2,751) 1,562 Nonoperating Revenues (Expenses): Gain on disposal of capital assets (15) - 5 - 32 208 230 111 Insurance Recoveries - 33 - - - 33 Operating grants - - 6 6 7,765 - 7,777 - Interest income 106 464 312 320 84 25 1,311 166 Interest expense (538) (2,173) (1,092) - - - (3,803) - Total nonoperating revenues (expenses) (447) (1,709) (736) 326 7,881 233 5,548 277 Income (loss) before capital contributions and transfers 902 1,773 (84) 419 404 (617) 2,797 1,839 Capital contributions - 2,115 572 6 25 3,852 6,570 42 Transfers in - 167 756 - 75 356 1,354 170 Transfers out (110) (202) (343) - (18) (141) (814) (6) Change in net assets 792 3,853 901 425 486 3,450 9,907 2,045 Net Assets, Beginning 13,800 74,895 60,141 29,830 9,638 49,798 20,401 Net Assets, Ending $ 14,592 $78,748 $61,042 $30,255 $10,124 $53,248 $ 22,446 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 795 Change in net assets of business -type activities $ 10,702 The notes to the financial statements are an integral part of this statement. KR Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Grants received Transfers from other funds Transfers to other funds Repayment/(payment) of notes receivable Advances from other funds Advances to other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Capital grants received Acquisition and construction of property and equipment Proceeds from sale of property Proceeds from insurance recoveries Proceeds from issuance of refunding debt (principal plus premium & less discount) Principal paid on bonded debt hiterest paid on bonded debt Net cash flows from capital and related financing activities Cash Flows From Investing Activities hiterest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) :1 It, Governmental Business -type Activities - Enterprise Funds Activities - Other hiternal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds $ 5,694 $ 12,736 $ 7,972 $ 8,339 $ 348 $ 1,737 $ 36,826 $ 15,938 (1,390) (3,218) (2,941) (4,426) (6,790) (929) (19,694) (10,794) (1,749) (1,848) (2,195) (2,431) (934) (622) (9,779) (1,810) 2,555 7,670 2,836 1,482 (7,376) 186 7,353 3,334 - - - 1 7,771 5 7,777 - - 167 756 - 75 356 1,354 170 (110) (202) (343) - (18) (141) (814) (6) - - - 5 347 - 352 - (927) - - 206 (721) - - - 937 - - 937 - (1,037) (35) 413 943 8,175 426 8,885 164 - 879 41 - 25 3,626 4,571 - (211) (1,259) (1,338) (1,760) (196) (4,180) (8,944) (1,747) 1 5 449 223 678 117 - - 33 - - 33 - 9,216 15,915 - 25,131 (9,665) (23,325) (1,270) (34,260) (609) (2,307) (1,217) (4,133) (1,268) (10,097) (3,746) (1,760) 278 (331) (16,924) (1,630) 191 474 324 486 109 40 1,624 267 441 (1,988) (173) 1,151 1,186 321 938 2,135 6,722 24,248 16,404 28,694 5,369 2,703 84,140 17,005 $ 7,163 $ 22,260 $16,231 $ 29,845 $ 6,555 $ 3,024 $ 85,078 $ 19,140 (continued) :1 It, The notes to the financial statements are an integral part of this statement. :11 CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Governmental Business -type Activities - Enterprise Funds Activities - Other hiternal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $ 1,349 $ 3,482 $ 652 $ 93 $ (7,477) $ (850) $ (2,751) $ 1,562 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 905 4,178 2,180 630 143 1,139 9,175 1,242 Changes in: Receivables: Accounts and unbilled usage 11 27 10 182 (37) 4 197 (24) Due from other governments - (1) (2) 3 - - - (17) Inventories - - (17) - - - (17) 9 Accounts payable (16) (42) (15) (13) (5) (132) (223) 296 Accrued liabilities (7) 1 (1) 22 - - 15 229 Due to other governments - - (2) 6 3 7 - Deferred revenue 280 - - - 280 Deposits - - (21) 1 (5) - (25) - Other Post Employment Benefits Obligation 33 25 52 44 2 25 181 37 Landfill closure /postclosure liability - - - 514 - - 514 - Total adjustments 1,206 4,188 2,184 1,389 101 1,036 10,104 1,772 Net cash flows from operating activities $ 2,555 $ 7,670 $ 2,836 $ 1,482 $ (7,376) $ 186 $ 7,353 $ 3,334 Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others $ - $ 681 $ 369 $ - $ - $ 541 $ 1,591 $ 42 The notes to the financial statements are an integral part of this statement. :11 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2010 (amounts expressed in thousands) Assets Equity in pooled cash and investments Accounts receivable Interest receivable Total assets Liabilities Accounts payable Accrued liabilities Due to agency Total liabilities Agency Funds $ 235 5 1 $ 241 $ 19 11 211 $ 241 The notes to the financial statements are an integral part of this statement. ►y: CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2010 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, a mass transportation system, public safety, streets, parks, and cultural facilities. It also operates an airport, parking facilities, water treatment, wastewater treatment, stormwater collection, sanitation collection and disposal (including landfill operations), cable television, 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 Assets and the Statement of Activities) report information on all of the nonfiduciary 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 interfund 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 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 City maintains its records on a modified cash basis of accounting under which only cash receipts, cash disbursements and encumbrances, investments, and bonded debt are recorded. These modified cash basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with GAAP. 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, liabilities, net assets, 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. Agency 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. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. 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. 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. The Other Shared Revenue and Grants Fund accounts 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 Debt Service Fund accounts for the accumulation of resources for and the payment of general long -term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the "on" and "off' street public parking facilities. 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 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. 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 fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has two fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance. The funds in this category are Project Green, which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City, and the Library Foundation, which accounts for donations that are made to support the library development office. Proprietary funds distinguish operating revenues and expenses from nonoperating 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 510 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating 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. 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 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 nonrestricted 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 15 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, the related revenue is deferred in both the government -wide and fund financial statements and 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. :1 If, CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 General Fund, Water Fund, and the Equipment Maintenance Fund. Inventories included in the governmental funds are valued at cost using the first -in, first out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on the FIFO method. 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 capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair 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 5 — 30 years 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. 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 The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City's policy is to fund pension costs as they accrue. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 7). 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 agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 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 Debt service Capital outlay Business -type 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 the individual fund revenue rather than on aggregated fund totals. 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. These budgets are adopted and amended at the same time and in the same manner as the City's annual function budget. :1K CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 programs. 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 $187,914,000 in revenues and other financing sources and by $211,643,000 in expenditures and other financing uses. Appropriations as adopted or amended, and not encumbered, 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. 2. Compliance and Accountability At June 30, 2010 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,207,000. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2011 to cover the capital expenditures. At June 30, 2010 the Other Shared Revenue and Grants Fund reported a deficit balance of $673,000. The deficit is due to flood expenditures related to home buyouts and down payment assistance. The City will be receiving funds from the Iowa Department of Economic Development and the Iowa Finance Authority to cover these expenditures. _19 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 3. Cash and Pooled Investments The City's deposits in banks at June 30, 2010 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking 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; 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; certain joint investment trusts; and warrants or improvement certificates of a drainage district. Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency Investment Trust, which are valued at an amortized cost of $46,091,065 pursuant to Rule 2a -7 under the Investment Company Act of 1940. Interest rate risk. The City's investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund's portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. 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. The aforementioned 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). 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 sanitation funds. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2010, consisted of the following: Advances from Advances to: Community Development Block Grant Other Shared Revenue and Grants Parking Housing Authority Nonmajor enterprise Total General $ 3,626 $ 1,641,389 Community Development Debt Block Grant Service Sanitation $ - $ - $ 1,287,850 207,973 18,000 1,522,656 Total $ 1,287,850 $ 3,626 1,849,362 1,522,656 18,000 $ 1,645,015 $ 18,000 $ 207,973 $ 4,315,603 $ 6,186,591 Interfund balances at June 30, 2010, include advances due to /from other funds. Advances to /from other funds represent amounts for construction loans, land and negative cash balance funding. $1,462,780 of the $1,505,097 advances to the Nonmajor Enterprise Funds and $1,395,840 of the $1,522,656 advance to the Parking Fund are not expected to be repaid within the next year. $1,179,296 of the $1,287,850 advances to the General Fund and $197,297 of the $207,973 advance to the Other Shared Revenue and Grants Fund are not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to be repaid within the next year. The $3,626 advance to the Community Development Block Grant Fund and the $1,641,389 advance to the Other Shared Revenue and Grants Fund are expected to be repaid within the next year. 61 I CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Interfund transfers for the year ended June 30, 2010, consisted of the following: (continued) 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. 52 Transfer from Other Community Shared Employee Development Revenue and Nonmajor General Benefits Block Grant Grants Governmental Transfer to: General $ $ 9,229,898 $ $ 103,488 $ 281,893 Debt service 79,776 - 198,918 2,781,075 Other shared revenue and grants 22,898 388,457 - 207,812 Nonmajor governmental 359,883 - 30,000 1,202,076 1,160,646 Wastewater treatment 96,625 - - 62,770 Water 106,086 - 3,954 646,102 Housing Authority - 45,055 29,750 - Nonmajor enterprise 115,664 - - 240,380 Internal Service 11,350 - 23,247 18,343 Total Transfer to $ 792,282 $ 9,618,355 $ 75,055 $ 1,561,433 $ 5,399,021 (continued) 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. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Transfer from Wastewater Housing Nonmajor Internal Total Parking Treatment Water Authority Enterprise Service Transfer from $ $ 20,216 $ 34,604 $ 18,000 $ 64,781 $ $ 9,752,880 - - - 67,857 3,127,626 - - - 619,167 181,228 308,468 - 3,242;301 - - 7,500 166,895 - 756,142 74,805 356,044 109,532 6,884 169,356 $ 109,532 $ 201,444 $ 343,072 $ 18,000 $ 140,138 $ 6,884 $ 18,265,216 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 5. Capital Assets Capital asset activity for the year ended June 30, 2010, was as follows: Beginning Acquisitions Disposals and Balance July 1, 2009 and Transfers Transfers June 30, 2010 Governmental activities: Capital assets, not being depreciated Land $ 17,482,906 $ 4,395,031 $ 40,000 $ 21,837,937 Construction in progress 14,305,568 3,181,727 11,646,024 5,841,271 Total capital assets, not being depreciated 31,788,474 7,576,758 11,686,024 27,679,208 Capital assets, being depreciated: 65,665,504 7,134,560 1,989,915 70,810,149 Buildings 61,281,261 1,640,965 408,117 62,514,109 Improvements other than buildings 5,345,298 127,102 100,817 5,371,583 Machinery and equipment 37,238,345 6,667,476 1,698,333 42,207,488 Infrastructure 97,342,237 8,766,289 - 106,108,526 Total capital assets being depreciated 201,207,141 17,201,832 2,207,267 216,201,706 Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net 16,307,718 1,561,261 396,048 17,472,931 1,624,503 210,103 42,343 1,792,263 24,849,371 3,001,630 1,551,524 26,299,477 22,883,912 2,361,566 - 25,245,478 65,665,504 7,134,560 1,989,915 70,810,149 135,541,637 10,067,272 217,352 145,391,557 Governmental activities capital assets, net $ 167,330,111 $ 17,644,030 $ 11,903,376 $ 173,070,765 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Beginning Acquisitions Disposals and Balance July 1, 2009 and Transfers Transfers June 30, 2010 Business -type activities: Capital assets, not being depreciated: Land $ 25,783,133 $ 142,947 $ 78,983 $ 25,847,097 Construction in progress 6,204,686 7,357,258 2,253,190 11,308,754 Total capital assets, not being depreciated 31,987,819 7,500,205 2,332,173 37,155,851 Capital assets, being depreciated Buildings 119,026,032 1,115,974 460,165 119,681,841 Improvements other than buildings 10,348,442 49,319 - 10,397,761 Machinery and equipment 21,699,054 747,735 330,998 22,115,791 Infrastructure 185,920,777 3,761,930 - 189,682,707 Total capital assets being depreciated 336,994,305 5,674,958 791,163 341,878,100 Less accumulated depreciation for Buildings 44,159,445 3,253,467 23,548 47,389,364 Improvements other than buildings 3,115,489 436,340 - 3,551,829 Machinery and equipment 12,434,263 1,223,607 315,428 13,342,442 Infrastructure 54,868,265 4,269,818 - 59,138,083 Total accumulated depreciation 114,577,462 9,183,232 338,976 123,421,718 Total capital assets, being depreciated, net 222,416,843 (3,508,274) 452,187 218,456,382 Business -type activities capital assets, net $ 254,404,662 $ 3,991,931 $ 2,784,360 $ 255,612,233 Depreciation expense was charged to functions as follows Governmental activities: $ 905,221 Public safety $ 632,481 Public works 3,059,686 Culture and recreation 1,887,155 Community and economic development 37,061 General government 277,029 Internal service funds 1,241,148 Total depreciation expense - governmental activities $ 7,134,560 Business -type activities Parking $ 905,221 Wastewater treatment 4,178,373 Water 2,180,524 Sanitation 629,714 Housing authority 143,084 Nonmajor enterprise 1,139,062 Total depreciation expense - business -type activities $ 9,175,979 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2010, was as follows: Governmental activities: General obligation bonds Plus: Unamortized Premium Business -type activities: General obligation bonds Less: Unamortized Discounts Total general obligation bonds Revenue bonds Plus: Unamortized Premium Total revenue bonds General Obligation Bonds Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year $ 80,654,160 $ $ 9,354,538 $ 71,299,622 $ 9,570,840 568,373 76,258 492,115 76,258 $ 81,222,533 $ $ 9,430,796 $ 71,791,737 $ 9,647,098 $ 4,340,840 $ $ 590,462 $ 3,750,378 $ 604,160 23,053 3,842 19,211 3,842 4,317,787 586,620 3,731,167 600,318 87,815,000 24,190,000 33,670,000 78,335,000 3,370,000 60,855 940,615 54,582 946,888 54,582 87,875,855 25,130,615 33,724,582 79,281,888 3,424,582 $ 92,193,642 $ 25,130,615 $ 34,311,202 $ 83,013,055 $ 4,024,900 Various issues of general obligation bonds totaling $75,050,000 are outstanding as of June 30, 2010. The bonds have interest rates ranging from 1.5% to 5.6% and mature in varying annual amounts ranging from $95,000 to $2,195,000 per issue, with the final maturities due in the year ending June 30, 2023. 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. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise funds is used to pay the general long- term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. 610 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Governmental Activities Business -type Activities Principal Interest Principal Interest 2011 9,570,840 2,756,034 604,160 140,850 2012 9,877,143 2,427,730 622,857 119,247 2013 8,853,445 2,082,934 641,555 96,592 2014 8,558,446 1,771,924 636,554 71,997 2015 8,149,748 1,445,311 655,252 47,435 2016 -2020 23,000,000 3,217,024 590,000 33,188 2021 -2025 3,290,000 274,895 - - Total $ 71,299,622 $ 13,975,852 $ 3,750,378 $ 509,309 Revenue Bonds As of June 30, 2010, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 9,110,000 $ 48,020,000 $ 25,365,000 Interest rates 3,370,000 3.0% to 5.0% 2012 3.0% to 5.0% 2,893,609 2.0% to 4.65% Annual maturities $ 420,000 to $ 260,000 to $ 355,000 to 2,319,945 $ 770,000 $ 2,750,000 $ 835,000 Amount outstanding $ 9,110,000 $ 46,525,000 $ 22,700,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Business -type Activities June 30 Principal Interest 2011 3,370,000 3,346,900 2012 6,315,000 2,893,609 2013 6,625,000 2,688,718 2014 5,075,000 2,498,788 2015 5,255,000 2,319,945 2016 -2020 29,525,000 8,276,465 2021 -2025 20,560,000 2,366,921 2026 -2030 1,610,000 38,163 $ 78,335,000 $ 24,429,509 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The revenue bond ordinances required that wastewater treatment, parking system, and water 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: Parking Revenue and Water Revenue bonds — maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds — 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (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. On November 23, 2009, the City issued $9,110,000 of parking revenue bonds for a current refunding of $9,275,000 of parking revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,554,933 in future debt service payments and an economic gain of $1,197,510. On April 15, 2010, the City issued $15,080,000 of wastewater revenue bonds for a current refunding of $16,240,000 of wastewater revenue bonds on July 1, 2010. As a result, the refunded wastewater revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,892,479 in future debt service payments and an economic gain of $1,686,527. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2010, are comprised of the following issues: Revenue Bonds: Refunded Parking Bonds (3) Refunded Wastewater Treatment Bonds (4) Refunded Wastewater Treatment Bonds (5) Refunded Wastewater Treatment Bonds (6) Water Bonds Refunded Water Bonds (7) Refunded Water Bonds (8) Total Revenue Bonds Date of Issue Amount Date of Final Issue General Obligation Bonds: 8,660,000 Multi- Purpose and Library Maturity Construction May 2002 Refunded Multi- Purpose (1) Oct. 2002 Multi- Purpose Nov. 2003 Taxable -Urban Renewal Mar. 2004 Multi- Purpose Mar. 2005 Multi- Purpose Jun. 2006 Multi- Purpose Jun. 2006 Refunded Water 2,205,000 Construction (2) Sep. 2006 Multi- Purpose May 2007 Multi- Purpose June 2008 Refunded Multi- Purpose Oct. 2008 Multi- Purpose June 2009 Taxable- Housing Improvements June 2009 Refunded Multi- Purpose June 2009 Total General Obligation Bonds 1,000,000 Revenue Bonds: Refunded Parking Bonds (3) Refunded Wastewater Treatment Bonds (4) Refunded Wastewater Treatment Bonds (5) Refunded Wastewater Treatment Bonds (6) Water Bonds Refunded Water Bonds (7) Refunded Water Bonds (8) Total Revenue Bonds Date of Issue Amount Interest Final Outstanding Issued 8,660,000 Rates Maturity June 30, 2010 $ 29,100,000 3.5-5.0 15,080,000 6/21 $ 14,875,000 10,600,000 2.5-4.0 7/22 6/15 2,090,000 5,570,000 2.5-3.6 -4.375 6/14 2,205,000 7,305,000 4.0-5.4 4.0-4.5 6/23 6,320,000 7,020,000 3.0-4.0 6/15 3,820,000 6,265,000 3.625-4.0 6/16 4,105,000 1,000,000 5.5 - 5.6 6/16 675,000 3,350,000 3.6-3.75 6/17 2,105,000 8,870,000 3.75 6/17 6,545,000 9,150,000 3.25-3.75 6/18 7,545,000 17,005,000 3.0-3.75 6/18 13,235,000 6,685,000 2.5-4.0 6/19 6,085,000 505,000 1.5 - 3.0 6/14 405,000 5,840,000 2.0-4.0 6/16 5,040,000 $ 75,050,000 Amount Interest Final Outstanding Issued Rates Maturity June 30, 2010 Nov. 2009 $ 9,110,000 3.0-5.0 Oct. 2008 24,280,000 3.0-5.0 7/24 $ 9,110,000 7/22 22,785,000 May 2009 8,660,000 3.5-5.0 7/25 8,660,000 Apr. 2010 15,080,000 3.0-4.0 7/20 15,080,000 Oct. 2002 8,500,000 2.0-4.65 7/22 6,165,000 Oct. 2008 7,115,000 3.0 -4.375 7/24 6,785,000 May 2009 9,750,000 4.0-4.5 7/25 9,750,000 78,335,000 $ 153,385,000 NVI CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 (1) This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. (2) This bond issue has the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. Also, this bond issue refunds the November 1997 Water Construction General Obligation Bonds. (3) This bond issue refunds the December 1999 Parking Revenue Bonds. (4) This bond issue refunds the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (5) This bond issue refunds the October 2000 Wastewater Revenue Bonds. (6) This bond issue refunds the December 2001 and April 2002 Wastewater Revenue Bonds. (7) This bond issue refunds the May 1999 Water Revenue Bonds. (8) This bond issue refunds the December 2000 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Facility Refunding 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, 2010, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $38,442,139. Debt Legal Compliance Legal Debt Margin: As of June 30, 2010, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows: Assessed valuation: Real property $ 4,307,005,765 Utilities 72,469,098 Total valuation S 4.379.474.863 Debt limit, 5% of total assessed valuation $ 218,973,743 Debt applicable to debt limit: General obligation bonds 75,050,000 Legal debt margin $ 143,923,743 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 7. Other Long -term Liabilities Notes Payable Changes in Long -Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: 211,000 - - 211,000 - 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 I%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Employee Vested Benefits Changes in Long -Term Liabilities - Employee Vested benefits Employee Vested Benefits activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: $ 2,030,118 $ 1,156,913 $ 1,087,269 $ 2,099,762 $ 1,133,652 Business -type activities: $ 510,449 $ 291,120 $ 278,551 $ 523,018 $ 288,275 For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. Landfill Closure / Post - Closure Care Costs Changes in Long -Term Liabilities - Landfill Closure Post- closure Care Costs Landfill Closure Post - closure care activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Business -type activities: $ 10,645,935 $ 513,994 $ _ $ 11,159,929 $ 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 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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. The estimated liability for landfill closure and post- closure care costs as of June 30, 2010, is approximately $11,159,929, which is based on 85.1% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,692,300 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, 2019. The estimated total current cost of the landfill closure and post - closure care costs at June 30, 2010, was determined by engineers from Howard R. Green Company and approximated $13,113,900. 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, 2010. 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, 2010, the Sanitation Fund had $12,842,479 in related equity in pooled cash and investments, at fair value designated for satisfaction of 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. Other Post Employment Benefits Changes in Long -Term Liabilities - Other Post Employment Benefits July 1, 2009 Governmental activities: $ 464,700 Business -type activities: $ 201,091 Net OPEB Obligation Current Year June 30, 2010 $ 885,450 $ 1,350,150 $ 195,247 $ 396,338 The City implemented GAS13 Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other Than Pensions during the year ended June 30, 2009. Plan Description: The City operates two self - funded medical and dental plans, one for Police and Fire Union employees and one for all other employees, which are offered to current and retired employees and their dependents. 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. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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. Funding cX: The contribution requirements of plans members are established and may be amended by the City. The City currently finances the benefit plans on a pay -as- you -go basis. Annual OPEB Cost and Net OPEB Obli a o : The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year ended June 30, 2010, the amount actually contributed to the plans, and changes in the City's net OPEB obligation: Annual required contribution $1,288,466 Interest on net OPEB obligation 26,632 Adjustment to annual required contribution (23,779) Annual OPEB costs 1,291,319 Contributions made (210,622) Increase in net OPEB obligation 1,080,697 Net OPEB obligation beginning of year 665,791 Net OPEB obligation end of year $1,746,488 For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30, 2010. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net OPEB obligation as of June 30, 2010 are summarized as follows: Percentage of Annual Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed from City Obligation June 30, 2010 $1,291,319 16.3% $1,746,488 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Funded Status and Funding Progress: As of July 1, 2008, the most recent actuarial valuation date for the period July 1, 2009 through June 30, 2010, the actuarial accrued liability was $15,235,196, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $15,235,196. The covered payroll (annual payroll of active employees covered by the plans) was $29,842,842 and the ratio of the UAAL to covered payroll was 51.1 %. As of June 30, 2010, there were no trust fund assets. Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. The required schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plans members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. As of the July 1, 2008 actuarial valuation date, the actuarial cost method used is the entry age normal method. The actuarial assumption includes a 4% discount rate. The projected annual medical trend rate is 10.5 %. The ultimate medical trend rate is 6 %. The medical trend rate is reduced by 0.5% each year until reaching the 6% ultimate trend rate. The projected annual dental trend rate is 6.0 %. The ultimate dental trend rate is 4 %. The dental trend rate is reduced by 0.5% each year until reaching the 4% ultimate trend rate. Mortality rates for active employees are from the RP -2000 Employee Table and for retirees are from RP- 2000 Healthy Annuitant Table, applied on a gender - specific basis. Annual retirement and termination probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan turnover tables; adjusted to be consistent with recent City experience. Projected claim costs of the health and dental plans are $980.70 per month. The salary increase rate was assumed to be 3.5% per year. The UAAL is being amortized as a level percentage of projected payroll expenses over 30 years. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 8. Short Term Debt Changes in Short Term Liabilities — Loans Payable Loans Payable activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: - $ 497,500 $ - $ 497,500 $ 497.500 During FYIO, the City issued multiple short term loans totaling $497,500. The loans mature one year from the date of the loan and bear interest rates ranging from 1% to 3.25 %. The loans were used to fund the acquisition and rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The City has secured a $1.25 million I -JOBS grant that will allow the program to acquire and rehabilitate 25 homes in the designated UniverCity Neighborhoods. These short term loans will be repaid with the proceeds from the sale of the rehabilitated homes. 9. 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, 2010 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 $400,000 self- insured retention on workers' compensation losses. 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. 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. Settled claims have not exceeded this commercial coverage in any of the past twenty three fiscal years. 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, 2010 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, 2010 and 2009 are as follows: 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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 $100,000 per employee with an aggregate stop -loss of $9,034,731. 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, 2010 and 2009 are as follows: Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2008— 2009 $ 1,300,000 $ 889,000 $ 952,000 $ 1,237,000 2009— 2010 1,237,000 1,127,000 762,000 1,602,000 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 $100,000 per employee with an aggregate stop -loss of $9,034,731. 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, 2010 and 2009 are as follows: 66 Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2008— 2009 $ 688,000 $ 6,649,000 $ 6,500,000 $ 837,000 2009— 2010 837,000 5,879,000 6,002,000 714,000 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 10. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2010 are as follows: Fund Project Amount Bridge, street and traffic Paving and bridge construction, control construction engineering design and consulting $ 2,436,176 Other construction Public works construction, culture & recreation construction, and fire station construction 2,615,333 Parking Garage improvements and repair & maintenance 60,302 Wastewater Facility consolidation consulting and wastewater main repairs 967,476 Water Water main construction and flood mitigation construction 329,351 Sanitation Landfill consulting and recycling facility construction 4,112,281 Airport Runway grading and paving 37,776 Stormwater Stormwater system improvements 449,961 $ 11,008,656 11. 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 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. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 12. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa (MFPRSI or the Plan), which is a cost- sharing multiple - employer defined benefit public police and fire employees retirement system. All fire fighters and police officers appointed under civil service participate in the Plan. The Plan provides retirement, disability, and death benefits that are established under state statute. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to Municipal Fire and Police Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 50266 or the report may be obtained from website www.mfprsi.org under the publications link. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to 66% of the member's average final compensation. Additionally, members retiring with more than 22 years of service will receive an additional 2% of the member's average final compensation for up to 8 years of additional service. Other benefits are also calculated at varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by state statute. For the fiscal year ended June 30, 2010, members contributed 9.40 %. The City's contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, the total then being divided by I% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the plan may further reduce the City's contribution rate. However, the City's contribution rate may not be less than 17% of earnable compensation. The City was required to contribute 19.9% of earnable compensation of each member in 2010, 18.75% of earnable compensation in 2009, and 25.48% of earnable compensation in 2008. The contributions paid by the City for the years ended June 30, 2008, 2009, and 2010, were $1,910,454, $1,434,031, and $1,349,558 respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System ( IPERS), which is a cost - sharing multiple - employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa 50306 -9117. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 All employees eighteen or older, except temporary employees of six months or less of employment duration, who do not participate in any other public retirement system in the state are eligible and must participate in IPERS. The pension plan provides retirement and death benefits that are established by state statute. Generally, a member may retire at the age of 65, or any time after age 62 and 20 years or more of service, or when age plus years of service equals or exceeds 88, and receive unreduced (for age) benefits. Members may also retire at the age of 55 or more at reduced benefits. Benefits vest after four years of service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest three years of covered wages times years of service divided by 30. Plan members are required to contribute 4.5% of their annual covered salary and the City is required to contribute 6.95% of annual covered payroll. Contribution requirements are established by state statute. The City's contributions to IPERS for the years ended June 30, 2008, 2009, and 2010, were $1,534,552, $1,659,955, and $1,767,350 respectively, and were equal to the required contributions for each year. 13. Municipal Utility Systems Water System The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public Information/Education. There are a total of 32.75 (FTE) employees who work in the Water Division. This division serves 69,086 people and has over 23,000 customers. The average daily use for 2010 was 5.48 million gallons per day (MGD). A peak flow of 10.6 MGD was experienced during the summer of 1989. Water Sources: The primary source of water for the City is the alluvial collector wells along the Iowa River. Four collector wells can provide approximately 11.0 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide 1.0 MGD; a sand pit that can provide 3.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 20 MGD maximum capacity. Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening ( coagulation /flocculation/sedimentation), and granular activated charcoal filtration processes with fluoridation and free chlorination. The grade four water facility employs operators that perform over 200 water quality tests per day in -house and collect samples for testing at the University Hygienic Laboratory. This testing ensures that the water meets all of the Safe Drinking Water Act Standards. Distribution S,, se: The water flows through approximately 288 miles of water mains and includes over 25,000 service connections. The distribution piping consists of cast iron, ductile and PVC main that ranges in size from 2" to 30 ". The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,100 hydrants located throughout the community. 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write -offs have been less than 0.5% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2009. Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.)) Meter Size 0% Meter Size 0% Inches Charge Inches Charge 5/8" $6.41 2" $22.14 3/4" 7.00 3" 40.91 1" 8.26 4" 71.37 11/2" 16.47 6" 143.61 Monthly Usage in excess of 100 cubic feet (c.f.) 101-3,000 $2.99 per 100 c.f. 3,001 and over $2.15 per 100 c.f. Single Purpose Meter Charges First 100 (c.f) Usage in excess of 100 cubic feet (c.f.) Changes in water rates over the last ten fiscal years. 2001 0 0% 2002 0 0% 2003 - -5% VIC Minimum Monthly Charge $2.99 per 100 c.f. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2010, 2009, and 2008. WATER SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) Operating Revenues: Charges for services $ 7,957 $ 8,107 $ 8,195 Miscellaneous 28 86 134 Total operating revenues 7,985 8,193 8,329 Operating Expenses: 312 625 931 Personal services 2,246 2,316 2,160 Commodities 987 768 1,348 Services and charges 1,920 2,642 1,840 and transfers 5,153 5,726 5,348 Depreciation 2,180 2,124 2,065 Total operating expenses 7,333 7,850 7,413 Operating income 652 343 916 Nonoperating Revenues (Expenses): Gain ( Loss) on disposal of capital assets 5 (2) Insurance Recoveries 33 - - Operating Grants 6 15 - Interest income 312 625 931 Interest expense (1,092) (1,351) (1,426) Total nonoperating revenues (expenses) (736) (711) (497) Income before capital contributions and transfers (84) (368) 419 Capital contributions 572 132 314 Transfers in 756 469 689 Transfers out (343) (698) (820) Change in net assets 901 (465) 602 Net Assets, Beginning 60,141 60,606 60,004 Net Assets, Ending $ 61,042 $ 60,141 $ 60,606 VA CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2010 and the budget for the fiscal year ended June 30, 2011 on a cash basis. WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) Charges for services Interest income Miscellaneous Operating grants Transfers from other funds Bond sales Total Receipts Personal services Commodities Services and charges Capital outlay Transfer to capital project funds Transfers to other funds Operating subsidy Debt service payments Total Disbursements Sewer System For the Year Ended June 30, 2010 (amounts expressed in thousands) FYI Actual Budeet Percentaee Budw $ 7,997 $ 8,390 95.32% $ 8,397 323 337 95.85% 190 141 49 287.76% 49 41 1,749 2.34% 2,272 4 336 1.19% 336 - - 0.00% - $ 8,506 $ 10,861 78.32% $ 11,244 $ 2,346 $ 2,492 94.14% $ 2,481 640 823 77.76% 806 2,158 2,574 83.84% 2,796 677 5,062 13.37% 5,310 308 1,300 23.69% 982 19 - - - 20 20 100.00% 20 12,767 12,768 99.99% 2,757 $ 18,935 $ 25,039 75.62% $ 15,152 The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 254 miles of sanitary sewers, 18 lift stations, and 2 treatment plants. There are a total of 25.60 (FTE) employees who work in the Wastewater Division. This division serves 69,086 people and has over 23,000 customers. The average daily combined treatment flow for 2010 was 11.75 million gallons per day (MGD) The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in 2002. The connecting of the North and South Plants was completed in 1998. The City has the capability to divert all wastewater treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system design has a maximum daily treatment capacity of 41.10 MGD. Both plants are in compliance with federal clean water standards. VA, CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Billine and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write -offs have been less than 0.5% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2009. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15 Monthly Usage in excess of 100 cubic feet (c.f.) $3.99 Changes in sewer rates over the last ten fiscal years. 2001 5% 2002 5% 2003 0% 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 2009 5% 2010 0% 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2010, 2009, and 2008. SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating income Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets Operating grants Interest income Interest expense Total nonoperating revenues (expenses) Income before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets, Beginning Net Assets, Ending 2010 2009 2008 $ 12,637 $ 12,557 $ 12,318 73 84 75 12,710 12,641 12,393 1,874 1,848 1,651 645 853 606 2,531 2,501 2,324 5,050 5,202 4,581 4,178 4,155 4,181 9,228 9,357 8,762 3,482 3,284 3,631 - 131 (5) 1 464 820 944 (2,173) (2,578) (3,041) (1,709) (1,626) (2,102) 1,773 1,658 1,529 2,115 266 577 167 148 30 (202) (296) (69) 3,853 1,776 2,067 74,895 73,119 71,052 $ 78,748 $ 74,895 $ 73,119 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2010 and the budget for the fiscal year ended June 30, 2011 on a cash basis. SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2010 (amounts expressed in thousands) FYI I Actual Budeet Percentaee Budeet Charges for services $ 12,671 $ 13,413 94.47% $ 13,427 Interest income 473 593 79.76% 100 Miscellaneous 65 40 162.50% 57 Operating grants 879 20,563 4.27% 5,700 Local option sales tax 64 3,690 0.00% 9,286 Bond sales 15,869 15,900 99.81% - Total Receipts $ 30,021 $ 54,199 55.39% $ 28,570 Personal services $ 1,913 $ 1,895 100.95% $ 1,962 Commodities 542 580 93.45% 547 Services and charges 2,588 2,578 100.39% 2,879 Capital outlay 1,133 27,884 4.06% 19,396 Transfer to capital project funds 182 784 23.21% 774 Operating subsidy 20 20 100.00% 20 Debt service payments 16,087 16,088 99.99% 24,174 Total Disbursements $ 22,465 $ 49,829 45.08% $ 49,752 W. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 14. Subsequent events On August 2, 2010, the City of Iowa City received and awarded bonds for General Obligation Bonds, Series 2010B in the amount of $7,420,000. The bonds were issued to finance multiple capital improvement projects. 15. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued statements not yet implemented by the City. The statement, which might impact the City's financial statements is as follows: Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued March 2009, will be effective for the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The City's management has not yet determined the effect these statements will have on the City's financial statements. NO 77 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL - ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS BUDGETARY BASIS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2010 (dollar amounts expressed in thousands) Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: - 18,312 12,737 - 12,737 Property taxes $ 45,318 $ - $ 45,318 Delinquent property taxes (2) - (2) Tax increment financing taxes 3,919 - 3,919 Other city taxes 8,539 - 8,539 Licenses and permits 1,214 12 1,226 Intergovernmental 27,038 12,528 39,566 Charges for services 5,837 34,648 40,485 Use of money and property 781 1,987 2,768 Miscellaneous 3,175 2,340 5,515 Total revenues 95,819 51,515 147,334 Expenditures/Expenses: Public safety Public works Culture and recreation Community and economic development General government Debt service Capital outlay Business -type Total expenditures /expenses Excess (deficiency) of revenues over (under) expenditures/expenses Other financing sources and uses, net Net change in fund balances Balances, beginning of year Balances, end of year See Note to Required Supplementary Information. 18,312 - 18,312 12,737 - 12,737 11,412 - 11,412 19,140 - 19,140 7,091 - 7,091 13,181 - 13,181 10,224 - 10,224 - 76,221 76,221 92,097 76,221 168,318 V& 3,722 (24,706) (20,984) 1,547 24,940 26,487 5,269 234 5,503 48,564 102,857 151,421 53,833 103,091 156,924 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 45,393 $ 45,393 $ (75) - 6 (8) 2,839 4,045 (126) 1,588 9,326 (787) 1,325 1,351 (125) 24,410 111,976 (72,410) 39,592 40,213 272 3,165 2,533 235 5,756 8,598 (3,083) 124,068 223,441 (76,107) 18,750 20,483 2,171 13,297 13,948 1,211 11,723 11,884 472 5,500 35,671 16,531 8,328 7,968 877 13,146 13,182 1 20,290 67,235 57,011 49,456 122,790 46,569 140,490 293,161 124,843 (16,422) (69,720) 48,736 10,185 39,754 (13,267) (6,237) (29,966) 35,469 104,883 152,413 98,646 122,447 ra CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2010 (dollar amounts expressed in thousands) Governmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis Revenues $ 95,819 $ 4,755 $ 100,574 Expenditures 92,097 (593) 91,504 Net 3,722 5,348 9,070 Other financing sources (uses) 1,547 (2,009) (462) Beginning Fund Balances $ 48,564 $ (6,441) $ 42,123 Ending Fund Balances $ 53,833 $ (3,102) $ 50,731 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues Expenditures Net Other financing sources (uses) Beginning Fund Balances Ending Fund Balances $ 51,515 $ (5,790) $ 45,725 76,221 (33,293) 42,928 (24,706) 27,503 2,797 24,940 (17,830) 7,110 102,857 $ 135,245 238,102 $ 103,091 $ 144,918 $ 248,009 See Note to Required Supplementary Information. E -1f, City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2010 In accordance with 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 agency funds. The budget basis of accounting is cash 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 $99,373,000 and expenditures by $152,671,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects and mediation costs and related grants due to the flood in the summer of 2008. E -1 City of Iowa City, Iowa Note to Required Supplementary Information — Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2010 MA UAAL As a Actuarial Actuarial Actuarial Percentage of Valuation Fiscal Value of Accrued Unfunded AAL Covered Covered Date Year Assets Liability (AAL) (UAAL) Funded Ratio Payroll Payroll July 1, 2008 June 30, 2009 $ $ 15,235,196 $ 15,235,196 0.00% $ 32,804,905 46.44% July 1, 2008 June 30, 2010 $ $ 15,235,196 $ 15,235,196 0.00% $ 32,804,905 46.44% MA 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. Johnson County Council of Governments Fund — accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Bridge, Street, and Traffic Control Construction Fund — accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. Other Construction Fund — accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. 83 CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2010 (amounts expressed in thousands) Liabilities and Fund Balances Liabilities: Accounts payable $ $ Special Revenue Capital Projects 2,238 $ 2,244 Contracts payable - Bridge, 484 786 Accrued liabilities 23 Johnson Street, and 56 Due to other governments - 1,962 County Traffic Deferred revenue - 1,019 Economic Council of Control Other 3,303 3,492 Development Governments Construction Construction Total Assets Reserved for: Equity in pooled cash and investments $ 143 $ 70 $ 918 $ 223 $ 1,354 Receivables: - 372 372 Unreserved Property tax 7 - - - 7 Accounts and unbilled usage - Undesignated 154 16 137 153 Interest 4 - - 15 19 Due from other governments - 42 997 2,480 3,519 Assets held for resale - 165 - 165 Restricted assets: Equity in pooled cash and investments - - - 10,424 10,424 Total assets $ 154 $ 112 $ 2,096 $ 13,279 $ 15,641 Liabilities and Fund Balances Liabilities: Accounts payable $ $ 2 $ 4 $ 2,238 $ 2,244 Contracts payable - 302 484 786 Accrued liabilities 23 16 17 56 Due to other governments - 1,962 - 1,962 Deferred revenue - 1,019 753 1,772 Total liabilities 25 3,303 3,492 6,820 Fund balances: Reserved for: Assets held for resale - 165 - 165 Encumbrances - 372 372 Unreserved Designated for future improvements - - - - Undesignated 154 87 (1,372) 9,415 8,284 Total fund balances 154 87 (1,207) 9,787 8,821 Total liabilities and fund balances $ 154 $ 112 $ 2,096 $ 13,279 $ 15,641 84 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Excess (deficiency) of revenues over (under) expenditures Special Revenue Capital Projects (1,153) (3,392) (1,972) Other Financing Sources (Uses) Bridge, Johnson Street, and - - 20 20 County Traffic 380 2,210 652 Economic Council of Control Other (381) (1,864) Development Governments Construction Construction Total Revenues and (uses) (3,155) 380 1,829 Property taxes $ 3,898 $ - $ 16 $ - $ 3,914 Intergovernmental - 285 2,884 3,607 6,776 Charges for services - - 8 - 8 Use of money and property 7 - - 30 37 Miscellaneous - 3 6 183 192 Total revenues 3,905 288 2,914 3,820 10,927 Expenditures Current: Public safety - - - 1,332 1,332 Public works - - 1,347 197 1,544 Culture and recreation - - - 273 273 Community and economic development 974 640 - 2 1,616 General government - - - 121 121 Capital outlay - 6 2,720 5,287 8,013 Total expenditures 974 646 4,067 7,212 12,899 Excess (deficiency) of revenues over (under) expenditures 2,931 (358) (1,153) (3,392) (1,972) Other Financing Sources (Uses) Insurance Recoveries - - - 20 20 Transfers in - 380 2,210 652 3,242 Transfers out (3,155) - (381) (1,864) (5,400) Total other financing sources and (uses) (3,155) 380 1,829 (1,192) (2,138) Net change in fund balances (224) 22 676 (4,584) (4,110) Fund Balances, Beginning 378 65 (1,883) 14,371 12,931 Fund Balances, Ending $ 154 $ 87 $ (1,207) $ 9,787 $ 8,821 % Mv, 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. Stormwater Fund — accounts for the operation and maintenance of the stormwater operation. Cable Television Fund — accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. 87 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2010 (amounts expressed in thousands) Assets Current assets: Equity in pooled cash and investments Receivables: Accounts and unbilled usage Interest Due from other governments Total current assets Noncurrent assets: Restricted assets: Equity in pooled cash and investments Capital assets: Land Buildings Improvements other than buildings Machinery and equipment Infrastructure Accumulated depreciation Construction in progress Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Contracts payable Accrued liabilities Total current liabilities Noncurrent liabilities: Liabilities payable from restricted assets: Deposits Advances from other funds Other Post Employment Benefits Obligation Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets $ 293 $ 1,314 $ 1,299 $ 2,906 - 60 180 240 - 2 2 4 9 - 7,309 2,167 4,038 - 357 - 281 259 7,337 34,956 109 118 9,476 741 4,779 - 357 94 634 - 42,293 21,479 29,720 637 51,836 22,076 31,096 2,118 55,290 23 2 113 138 249 42 - 291 3 15 43 61 275 59 156 490 9 - - 9 1,505 - - 1,505 8 4 26 38 1,522 4 26 1,552 1,797 63 182 2,042 21,470 29,720 528 51,718 (1,191) 1,313 1,408 1,530 $ 20,279 $ 31,033 $ 1,936 $ 53,248 E -N CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating income (loss) Nonoperating Revenues (Expenses): Gain on disposal of capital assets Interest income Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets, Beginning Net Assets, Ending Cable Airport Stormwater Television Total $ 289 $ 617 $ 790 $ 1,696 325 618 48 166 21 193 241 152 310 511 431 676 741 1,187 (416) (569) (55) (141) 208 - 3 10 433 647 51 265 32 1,139 655 2,583 135 (850) - 208 12 25 (205) (559) 147 (617) 3,311 541 - 3,852 291 65 - 356 (78) (8) (55) (141) 3,319 39 92 3,450 16,960 30,994 1,844 49,798 $ 20,279 $ 31,033 $ 1,936 $ 53,248 E:If CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Operating grants received Transfers from other funds Transfers to other funds Advances from other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Capital grants received Acquisition and construction of property and equipment Proceeds from sale of property Net cash flows from capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Accounts payable Accrued liabilities Other Post Employment Benefits Obligation Total adjustments Net cash flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others Cable Airport Stormwater Total $ 325 $ 625 $ 787 $ 1,737 (274) (466) (189) (929) (41) (163) (418) (622) 10 (4) 180 186 5 - - 5 291 65 - 356 (78) (8) (55) (141) 206 - - 206 424 57 (55) 426 3,626 - - 3,626 (4,074) (105) (1) (4,180) 223 - - 223 (225) (105) (1) (331) 4 17 19 40 213 (35) 143 321 89 1,349 1,265 2,703 $ 302 $ 1,314 $ 1,408 $ 3,024 $ (416) $ (569) $ 135 $ (850) 431 676 32 1,139 - 7 (3) 4 (12) (121) 1 (132) - 7 2 16 25 426 565 45 1,036 $ 10 $ (4) $ 180 $ 186 $ - $ 541 $ - $ 541 90 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 and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund — accounts for the support services of photocopying, paper supplies, mail, overnight shipping, and two -way radios 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. 02 i FOY: CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2010 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments $ 7,197 $ 640 $ 8,476 $ 2,827 $ 19,140 Receivables: Accounts and unbilled usage 19 - - 5 24 Interest 10 1 12 4 27 Due from other governments 56 - - 16 72 Inventories 323 - - - 323 Total current assets 7,605 641 8,488 2,852 19,586 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 578 - - 253 831 Improvements other than buildings 50 - - - 50 Machinery and equipment 12,446 226 8 1,550 14,230 Infrastructure - - - 1,087 1,087 Accumulated depreciation (8,566) (123) (4) (1,599) (10,292) Total noncurrent assets 4,553 103 4 1,291 5,951 Total assets 12,158 744 8,492 4,143 25,537 Liabilities Current liabilities: Accounts payable 123 3 211 220 557 Accrued liabilities 104 4 2,328 73 2,509 Total current liabilities 227 7 2,539 293 3,066 Noncurrent liabilities: Other Post Employment Benefits Obligation 24 (10) (14) 25 25 Total liabilities 251 (3) 2,525 318 3,091 Net Assets Invested in capital assets, net of related debt 4,553 103 4 1,291 5,951 Unrestricted 7,354 644 5,963 2,534 16,495 Total net assets $ 11,907 $ 747 $ 5,967 $ 3,825 $ 22,446 FOY: CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Deserve Technology Total Operating Revenues: Charges for services $ 4,856 $ 318 $ 8,970 $ 1,786 $ 15,930 Miscellaneous - - 1 48 49 Total operating revenues 4,856 318 8,971 1,834 15,979 Operating Expenses: Personal services 895 35 162 984 2,076 Commodities 1,855 2 19 257 2,133 Services and charges 467 193 7,823 483 8,966 3,217 230 8,004 1,724 13,175 Depreciation 1,031 27 2 182 1,242 Total operating expenses 4,248 257 8,006 1,906 14,417 Operating income (loss) 608 61 965 (72) 1,562 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 104 1 - 6 111 Interest income 62 6 67 31 166 Total nonoperating revenues (expenses) 166 7 67 37 277 Income (loss) before capital contributions and transfers 774 68 1,032 (35) 1,839 Capital contributions - - - 42 42 Transfers in 144 - - 26 170 Transfers out - - (6) - (6) Change in net assets 918 68 1,026 33 2,045 Net Assets, Beginning 10,989 679 4,941 3,792 20,401 Net Assets, Ending $ 11,907 $ 747 $ 5,967 $ 3,825 $ 22,446 0191 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Transfers from other funds Operating transfers to other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment Proceeds from sale of property Net cash flows from capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Due from other governments Inventories Accounts payable Accrued liabilities Other Post Employment Benefits Obligation Total adjustments Net cash flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others For the Year Ended June 30, 2010 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total $ 4,836 $ 318 $ 8,971 $ 1,813 $ 15,938 (2,365) (213) (7,665) (551) (10,794) (852) (45) 85 (998) (1,810) 1,619 60 1,391 264 3,334 144 - - 26 170 6,721 608 (6) (6) 144 $ 7,197 $ (6) 26 164 (1,496) (38) (213) (1,747) 110 1 6 117 (1,386) (37) - (207) (1,630) 99 9 112 47 267 476 32 1,497 130 2,135 6,721 608 6,979 2,697 17,005 $ 7,197 $ 640 $ 8,476 $ 2,827 $ 19,140 $ 608 $ 61 $ 965 $ (72) $ 1,562 1,031 27 2 182 1,242 (19) - - (5) (24) (1) (16) (17) 9 9 (52) (18) 177 189 296 2 1 244 (18) 229 41 (11) 3 4 37 1,011 (1) 426 336 1,772 $ 1,619 $ 60 $ 1,391 $ 264 $ 3,334 $ - $ - $ - $ 42 $ 42 OU AGENCY FUNDS The Agency Funds account for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The funds in this category are: Project Green Fund — accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. Library Foundation — accounts for donations that are made to support the library development office. O CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2010 (amounts expressed in thousands) Balance Balance July 1, 2009 Increases Decreases June 30, 2010 Project Green Assets Equity in pooled cash and investments $ 230 $ 60 $ 61 $ 229 Interest receivable 2 1 2 1 Total assets $ 232 $ 61 $ 63 $ 230 Liabilities Accounts payable $ - $ 19 $ - $ 19 Due to agency $ 232 $ 42 $ 63 $ 211 Total liabilities $ 232 $ 61 $ 63 $ 230 Library Foundation Assets Equity in pooled cash and investments $ 4 $ 12 $ 10 $ 6 Accounts receivable 6 - 1 5 $ 10 $ 12 $ 11 $ 11 Liabilities Accrued liabilities $ 10 $ 11 $ 10 $ 11 Total liabilities $ 10 $ 11 $ 10 $ 11 Total Agency Funds Assets Equity in pooled cash and investments $ 234 $ 72 $ 71 $ 235 Accounts receivable 6 - 1 5 Interest receivable 2 1 2 1 Total assets $ 242 $ 73 $ 74 $ 241 Liabilities Accounts payable $ - $ 19 $ $ 19 Accrued liabilities 10 11 10 11 Due to agency 232 42 63 211 Total liabilities $ 242 $ 72 $ 73 $ 241 OR Statistical Section This part of the City of Iowa City's comprehensive annual 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 99 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 104 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 114 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 124 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 126 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 comprehensive annual financial report for the relevant year. 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M c OC OC C1 CA m In oc M r r m a cc M M CA �i c*i ri m M r�i cri r� ao b � � CC C7 N M t .O r oc al C O U b =1+ W� / 2 � � Q / c w c W � Q § / \ / \ \ � \ \ \ \ f / A k � 3 / 7 = 2 k z \ \ ; � = Q � U k 2 � } z 3 V-) \ \ \ \ \ \ \ \ \ \ \ \ 0 0 0 0 0 0 0 0 0 0 \ \ \ \ \ \ \ \ \ \ 0 0 0 0 0 0 0 0 0 0 M o%�� o N n n- \ / 6 \ r-- \ \ ƒ ƒ \ K z 5 2 / 2 / \ \ % 2 6 / \ K z 5 a 5 ®; k o o # z z \ o>> \ \ \ E � - / ) G ° 2 - f/ - \ 5/ � w 7%% 5 _ 7 � 5@ - w 7 3 . 3 6 \ . § / = ° / / ± » C a y 2 2 \ n n 7 n \ n #� 7 n 7 n o> 7 n 7 n z 7 n z 7 t 2 A § 7:5 / / � CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Source: Certificate of City Taxes and Johnson County Treasurer's Office Percent of Total as Collection Total Tax Current Tax Levy Delinquent Tax Total Tax a Percent of Year Levied Collections Collected Collections Collections Levy 2001 $ 26,089 $ 25,684 98.4 % $ 31 $ 25,715 98.6 % 2002 27,920 28,423 101.8 5 28,428 101.8 2003 31,975 31,863 99.6 16 31,879 99.7 2004 34,073 34,009 99.8 23 34,032 99.9 2005 34,403 34,814 101.2 15 34,829 101.2 2006 36,460 36,654 100.5 44 36,698 100.7 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 2009 43,168 43,118 99.9 18 43,136 99.9 2010 45,393 45,318 99.8 17 45,335 99.9 Source: Certificate of City Taxes and Johnson County Treasurer's Office O O N rl O O N � W 0 bA U U H � a a o z z b b U U m 10 O 00 N 00 10 Ln m Q Q Q Q N 17,1 to � � — — — lc� Ln 10 r- 00 01 m N M N 10 Ln r- N Ln 0 y S." Ln Ln 0\ O O O +' Ln v') O 01 00 10 Ln M M O kO t — — — — — — — — N H � Q10 Q Q Q � Q� 10 In In In O � O�%� F � � O 00 0\ 00 V'� 1p dl M M N N M F w a4 _ C w bU U O O F O •U bU EO Q N U = U :' � U U a; U � O G' •?� Q �b .b b p s w cOC ¢+ 'O O �+ W w E C 4 CIO U O O O Q O N N9, 0 O w • O U � � rte! � Pa v. it w w m cu a o U v F" o ¢ > ,U Q C/i Q P, y y k l f k CA 09 W O U H U v� W �I F a E� U a U a b0-0 W N N U O O N NI O O N �I U it U a �I w O U � U it O U a N 0 O O o C4 C5 ° C5 i C5 o °o w N O o w � v � t4 0 b4 0 0 Q y ¢ 1 - u b4 u 3 cn CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2001 245,725,159 $ 8,837,339 2002 253,409,874 9,049,700 2003 257,788,030 9,308,824 2004 253,454,012 8,850,608 2005 254,560,239 8,315,719 2006 267,107,998 8,844,993 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 Sources: City of Iowa City Revenue Department FH FH U �I �I I� U O N N z N 5 N U O O N 0 0 N �I o z o N z o 0 0 0 U U p•j it � � ,�' y c U `� a�, � � � U a � N may, 0 , y • �I o z o N z o 0 0 0 U U p•j O � � ,�' y c U `� a�, � � � y � N may, 0 , y • a N U o oMO � a\ co N O �n co r Oco xl o z o N z o 0 0 0 U U p•j O � � ,�' y c U `� a�, � � � y � N may, 0 , y • a N xl ss, a p•j O � � ,�' y c U `� a�, � � � y � N may, 0 , y • p N U o oMO � a\ co N O �n co r Oco ss, a p•j O � � ,�' y c U `� a�, � � � y � N may, 0 , y • p N CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2001 299,381,463 $ 11,111,313 2002 292,323,306 11,431,949 2003 297,084,229 12,015,122 2004 294,683,685 12,482,393 2005 297,714,953 12,557,646 2006 302,925,357 12,373,762 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 2009 276,455,246 12,499,949 2010 265,375,857 12,541,905 Sources: City of Iowa City Revenue Department O �I �I U O w Imo" FH U O c nod- � � N cn cn cn M cn N N N N U � � d- � a H Cs� o p O O O O O O O O O O E'� •� � N � M � �O --� �O N M M Ef3 O O O O O O O O O O Cl Cl l� M CO M o o o o r co 00 a. H OM y O M GO GO CO M cr� •fit," b�A OI CO O M N CO C M M CO �O M O Ef3 I Z U U N N N N N N � e O �+ +� _ O O O O O O O N N N O c nod- Q G A r. A E zp � G U � p j> O O O ! W G N U � < O � � G O o F G o 0 M M r- Vj O M l O O � � U Fq A z a y y zM 00 a', M w n�Q O\ Vj 00 ON I O It 00 M O p N M v> p M 06 l z o � V' V ON M dl O N l DO N 01 V7 l V7 ON b ct G N � N cl 00 O M N 00 It d1 M l 01 00 kr 4 4 M � w o O 00 o 0 o O ON O O oo 0, ON CD cn N N o 00 o a, 0 0 G A ^� � V•i o0 cl 00 06 00 V•i 00 V•i 00 V•i 00 r-: 00 0o V•i t a1 � � U a c o o 000 0 cc o r- 001, r- o N o N N O ON O v Ef cz bq cz — cz O w b � U it O O O O O O O O O cd O O O O O O O O O O O ✓~ N N N N N N N N N N .cz � � �, G� CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES) Fiscal Year Ended June 30 2001 2002 20032 2004 2005 2006 2007 2008 2009 2010 Notes: Last Ten Fiscal Years (amounts expressed in thousands) 1 General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. Total General Governmental Ratio of Debt Total Expenditures Service to General Principal Interest Debt Service and Transfers Expenditures $ 3,541 $ 1,763 $ 5,304 $ 53,898 .10:1.00 3,599 2,136 5,735 53,462 .11:1.00 4,742 3,683 8,425 82,001 .10:1.00 5,172 3,336 8,508 83,445 .10:1.00 9,349 3,676 13,025 88,342 .15:1.00 6,099 3,458 9,557 93,360 .10:1.00 6,700 3,464 10,164 93,639 .11:1.00 7,323 3,556 10,879 99,178 .11:1.00 8,418 3,364 11,782 102,607 .11:1.00 9,354 3,064 12,418 108,950 .11:1.00 1 General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT Name of Governmental Unit City of Iowa City Iowa City Community School District Total Per capita assessed value June 30, 2010 (amounts expressed in thousands, except per capita) Total General Long -Term Bonded Debt Outstanding $ 75,050 % Applicable to the City of Iowa City 100.00% $ Amount Applicable to the City of Iowa City Per Capita 75,050 $ 1,086 24,160 59.36% 14,341 208 $ 99,210 $ 89,391 $ 1,294 $ 64,565 Source: Johnson County Auditor's Office. 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. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. c ItII e- �, N III c � III M O M W M 00 O 00 N M N G� I Gf 0 oc C M O\ 00 C G� I Gf 0 G� I Gf G� I Gf C, c 01 O e- OA cl � O OA ~ O O vi N O r in W O 70 O 0 oc N in td O O N z k 0 N c 0 oc c oc o vi rn c i w � o C I` � N fn o � V1 O\ M M W w F o � w �A O A In � o C oc C7 W W a M O O N O O N O O O N c ItII e- �, N III c � III M O M W M 00 O 00 N M N G� I Gf 0 oc C M O\ 00 C G� I Gf 0 G� I Gf G� I Gf C, c 01 V N e- OA cl � O OA ~ O fn vi � cp r in W O 0 oc in td oc oc O oc k N c N oc c oc c vi rn c i W C I` � N fn � V1 O\ M M W �A �A In N C oc d W O 0 O. y tb 0 u CL b Q E-� H fn V N O OA cl � O OA ~ O fn td � r in W O in td � Or � O �i F V w H V LUi O bA C "O C O w C"r a on FW a � C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 norriMOMOMOOOOMo 00 M CD V) M `O CD 00 \O aV O co M co I'D 00 co O co t— 00 l— I'D W) � M � O\ M bf 00 O O V� oo N `O l� 00 t— � N O O O it Ef3 &4 00 O\ 00 \O 00 00 M l- 00 O\ M O\ M Vj N `D `O `O `O `O r- 00 00 ON ON GO O� 00 C. CSC � V� co M a C\ OV OV co O\ N M VO O O r-; ' ' CC O AO M O N AO I'D — r- M Vl r-- Fy y ft V) M `O `O N 00 00 O\ l— 00 00 '--i p N OV OV O O\ N�1177t N C4 � Lei a V) 00 1, N N N �t 00 O\ M C, l- co a\ � a\ r- � co ON O — � �t Ef3 fA V) 00 l- N N N �t V) M CD C, y N W 00 Q 00 O\ La N C 0D 0 V) � CD � ^-� CD V) M M N N � l C ~ 0-I Ef3 &4 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O e'� � xn O vi vi vi vi vi O O O vi vi O vi ,U O O ON ON 00 r- a — O O O O O O O O O O O O O O H wy+ NNNNNNNNNNNNNN CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Net Revenue Ended Available for June 30 Revenue Expenses' Debt Service Annual Debt Service Ratio of Principal Interest Total Coverage 2001 $ 4,309 $ 2,176 $ 2,133 $ 485 $ 836 $ 1,321 1.61 2002 4,272 1,960 2,312 510 746 1,256 1.84 2003 4,198 1,953 2,245 375 715 1,090 2.06 2004 4,164 2,319 1,845 395 687 1,082 1.71 2005 4,360 2,377 1,983 305 663 968 2.05 2006 4,161 2,380 1,781 320 645 965 1.85 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 20106 5,509 3,149 2,360 390 504 894 2.64 Wastewater Treatment Revenue `s 2001 $ 12,824 $ 3,248 $ 9,576 $ 2,505 $ 3,589 $ 6,094 1.57 2002 12,501 3,389 9,112 3,005 4,236 7,241 1.26 2003 13,000 4,463 8,537 3,060 4,385 7,445 1.15 2004 12,947 4,523 8,424 3,280 3,672 6,952 1.21 2005 12,600 4,432 8,168 3,630 3,537 7,167 1.14 2006 12,798 4,260 8,538 3,815 3,390 7,205 1.19 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 2008 13,332 4,581 8,751 4,105 3,071 7,176 1.22 20096 13,462 5,202 8,260 4,260 2,813 7,073 1.17 20106 13,174 5,050 8,124 4,205 2,307 6,512 1.25 Water Revenues 2001 $ 10,629 $ 3,410 $ 7,219 $ 140 $ 445 $ 585 12.34 2002 10,179 3,428 6,751 705 1,175 1,880 3.59 2003 10,241 4,361 5,880 500 1,088 1,588 3.70 2004 10,627 4,360 6,267 925 1,427 2,352 2.66 2005 9,287 4,783 4,504 845 1,340 2,185 2.06 2006 9,918 5,722 4,196 880 1,305 2,185 1.92 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 2008 9,258 5,348 3,910 955 1,229 2,184 1.79 20096 8,833 5,726 3,107 995 1,171 2,166 1.43 20106 8,336 5,153 3,183 680 1,055 1,735 1.83 Notes: ' Excludes depreciation and interest. 2Includes 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. ° 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. O F U O w O F cC C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C bA GT.' Vl Vl Vl O Vl O Vl O � O Vl O Vl Vl O Vl O � �• .� o V �+ ca m � � 0 � � N � � V� ,� o o N � �n bA y l- 00 00 N �o ,� �o O 00 N 'o ,� l- 't C q 00 t- t 10 �o in m M N N a C w O� CG � °' � c kn c� 10 � O c mm co 10 It co oc, Iz Q V c0 ca � � n N ' in M ca r--: o a N 10 t- in in 00 N N c m 00 M M ,� �o 10 1O �o �0 v� t� �o t� t� t� t� m m m a N p l� O O C C 0 0 0 0 0 0 0 0 0 c0 M p N N N N N N N N N N N N N N N i M c � N o o o C C C C C o 0 0 0 0 o N � a,- 00 m o N c 00 C m ca o� N a, M N o, — ca m a, co o M 00 00 M C o, co co N N o 16 16 co 4 M 4 � N N N N N N � 00 00 00 00 00 00 00 c0 c0 c0 c0 c0 c0 c0 c0 c0 c0 ca c0 c0 c0 c0 00 z b b y O, M C c0 �--i C V1 V1 C M M c0 C C C 01 O c0 c0 O � r- r- O 10 GD V1 V1 V1 r— o 01 � o o c0 0 0l - n n�� N N N N M w N g oo c6 � Vi o, G 'o r- co M I- g o, c I- o, Vi o a o, o, Iz op ca M ���� m n r, .c 4 4 4 4 4 4 4 4 N n o E t bq N C c c0 oc m in c m N o 0 O, O, 10 l- O, 00 N M M V7 10 oc M M M V) It 10 CN M_ In oc oc O '� � w Vl r N M to to to to Vl to to C � N C O, � M � o m o o 0 M N F IT � � 3 � � c c N l� O 01 cO l� V1 V1 N V1 01 M 4 O � M fn v o M c0 c0 o c0 0 0 0 m o 'o m oo to v �o o, o0 O, --� --� C 1.0 N 10 00 M M r- m ca M ca 11; m oo 10 N N Q N t4 b o o v v v v v 'n 'n v 'n 'n c 'n 'n 'n o w t- r- N t- in r- in o, ca M oc N o, N o v C N N N N N N .r b z � Fiscal Year 2010' 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Fiscal Year 20101 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Parking Outstanding Principal Interest Total $ 390,000 $ 503,862 $ 893,862 420,000 390,926 810,926 500,000 339,200 839,200 515,000 323,975 838,975 530,000 308,300 838,300 540,000 292,250 832,250 560,000 272,950 832,950 580,000 250,150 830,150 605,000 226,450 831,450 625,000 201,850 826,850 650,000 176,350 826,350 680,000 148,900 828,900 705,000 119,469 824,469 735,000 88,869 823,869 770,000 54,000 824,000 695,000 17,375 712,375 $ 9,500,000 $ 3,714,876 $ 13,214,876 Sewer Outstanding Principal Interest Total $ 4,205,000 $ 2,307,469 $ 6,512,469 1,840,000 2,054,003 3,894,003 4,615,000 1,693,000 6,308,000 4,865,000 1,546,888 6,411,888 3,250,000 1,418,681 4,668,681 3,370,000 1,304,900 4,674,900 3,520,000 1,175,119 4,695,119 3,625,000 1,034,575 4,659,575 3,775,000 886,575 4,661,575 3,915,000 731,400 4,646,400 4,090,000 557,463 4,647,463 3,740,000 378,013 4,118,013 2,485,000 232,288 2,717,288 1,220,000 141,250 1,361,250 700,000 93,250 793,250 740,000 57,250 797,250 775,000 19,375 794,375 $ 50,730,000 $ 15,631,499 $ 66,361,499 (continued) CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Fiscal Year 2010' 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Principal $ 680,000 1,110,000 1,200,000 1,245,000 1,295,000 1,345,000 1,395,000 1,450,000 1,515,000 1,575,000 1,645,000 1,715,000 1,790,000 1,870,000 1,325,000 1,390,000 835,000 $ 23,380,000 Water Outstanding Interest $ 1,054,596 901,971 861,409 817,855 771,806 722,795 670,768 615,530 556,281 493,487 427,519 357,303 281,468 200,160 128,847 68,481 18,788 $ 8,949,064 Notes: IAmounts for Principal excludes called revenue bonds. Total $ 1,734,596 2,011,971 2,061,409 2,062,855 2,066,806 2,067,795 2,065,768 2,065,530 2,071,281 2,068,487 2,072,519 2,072,303 2,071,468 2,070,160 1,453,847 1,458,481 853,788 $ 32,329,064 H FH U O �I H �I U � CC O V� l M N d d d O O w a� � O � U � N y M > � � b N y � bq cad 000 ON O M N U W U C u q O y M O O O N O � N 06 r- M o � o Vi 00 l l M O IC It �p ON ON ON O L U N O cz O O N v7 l O l 1 O > O O vii O -o o �N ° �''' u N Oq DO Oq DO M DO DO L7 L7 [d p U a cz a Ucz o N �" cz O � N r-- 00 ON %1 O '� N a O Ln b-0 � W d Imo' c� V a � W 2 O U � z U a U w CC O Y U it U a O.G N �y UIU O i-r W O O O N UIU i-r W U O W e- M — N M �t W� � r- CO O\ O� M — N M �t W� � CO C� r- O\ t II O N M .O. W CC 0 H U it 0 N O N w O N U � z � op O >= V7 N rte+ z > ¢ x A 3 .O. W CC 0 H U it 0 N O N w O N U � z � CITY OF IOWA CITY, IOWA FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full -Time Eauivalent Emnlovees as of June 30 Source: City's Financial Plans 2001 2002 2003 2004 2005 2006 Public Safety Police 96.25 97.25 97.25 97.25 94.25 94.25 Fire 52 58 58 58 56 57 Animal Shelter 5.5 5.5 6 6 6 6 Inspection Services 14.13 14.13 14.13 14.13 13.88 14.88 Public Works Public Works Admin 3 2 2 2 2 2 Engineering 11.6 13.6 13.6 13.6 11.6 11.6 Traffic Engineering 4.15 4.15 5.65 5.65 5.65 4.15 Streets 23.5 23.5 22 22 22 23.5 Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 Recreation 15.17 15.17 15.17 15.17 15.17 15.17 Parks 13 13 13 13 12 13 Forestry 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 3 3 Library 40.25 41.25 41.25 43.25 42.63 42.63 Senior Center 6 6 5.81 5.81 6.31 6.31 Community and Economic Developmen 8.55 9.05 8.35 9.45 8.45 8.45 General Government City Council 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 City Clerk 4.5 4.5 4 4 4 4 City Attorney 6 6.6 6.6 6.6 6.6 6.6 Tort Liabiltiy, Insurance Personnel 4 4 4 4 4 4 Finance 27.36 28.61 28.61 28.61 26.61 26.75 Government Buildings 4.97 4.96 4.96 4.96 4.96 4.96 Energy Conservation 0.5 0.5 0.5 0.5 0.5 0.5 Human Rights 2 2 2.5 2.5 2.5 2.5 Transit 48.25 48.5 48.5 48.5 50.5 50.5 Special Revenue Employee Benefits 0.45 0.4 0.34 0.34 0.34 0.39 CIP / Roads 6 7 7 7 3 2 Community Development 4.75 4.75 5.45 5.35 4.35 4.35 JCCOG 6.1 6.1 6.1 6.1 6.1 6.6 Library Development 1.5 1.5 1.5 1.5 0.8 1 Internal Service Funds Information Technology 7.5 7.5 7.5 7.5 8 11.75 Equipment 9.5 10.25 11.25 11.26 11.25 11.26 Central Services 2.25 0.75 0.75 0.75 0.75 0.75 Risk Management 1.46 1.26 1.33 133 1.32 1.38 Business -Type Activities Parking 37 37 31.5 31.5 32.75 32.75 Wastewater Treatment 25.3 26.3 26.3 27.3 27.3 25.5 Water 26.2 28.2 30.7 31.7 31.7 32.5 Sanitation 32.35 32.35 32.35 32.35 34.35 33.85 Airport 2 2 2 2 2 1.6 Cable television 5.25 5.25 6.19 6.19 6.19 6.19 Stormwater 0.5 Housing Authority 12.5 12.5 12.5 12.5 12.75 13.25 Total 591.79 606.38 605.64 610.65 599.56 605.37 Source: City's Financial Plans Full -Time Equivalent Employees as of June 30 2007 2008 2009 2010 96.25 96.25 103.25 103.25 57 57 57 57 6 6 6 6 14.88 15.38 15.55 15.55 2 2 2 2 11.6 11.35 11.35 11.35 4.15 4.15 4.15 4.15 23.5 23.5 25.5 25.5 2 2 2 2 15.42 15.42 15.42 15.42 13 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.89 43.14 43.14 43.14 6.31 6.31 6.31 6.31 8.45 8.95 9.05 9.05 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6 6 1 1 4 4 4 4 26.75 26.5 25.3 25.3 4.96 4.96 4.96 4.96 0.5 0.25 0.25 0.25 2.5 2.5 2.5 2.5 50.5 54.75 58.5 58.5 0.39 0.29 0.29 0.29 2 1 2 2 4.35 3.98 3.88 3.88 6.6 6.6 6.6 6.6 1 1 1 1 12 12.3 123 12.3 11.26 11.26 11.26 11.26 0.75 0.75 0.75 0.75 1.38 1.73 1.93 1.93 32.75 32.75 33.25 33.25 25.5 25.5 25.6 25.6 32 32.75 32.75 32.75 33.85 34.85 34.85 35.85 1.6 1.6 1.75 1.75 6.19 6.19 6.44 6.44 1 2 1.9 1.9 13.25 13.25 13.25 13.25 608.13 614.81 629.03 630.03 O F 0 U O O ' H M E U w C b 0 P. w C C N \C-i C O co n lO m 01 co O O co m 0 l� ,--i m l� V1 in N V1 l— m p Mi CC C N CC C N N i I � co m oa zn co D o m o o c � m m N m b m I � 41 41 41 C C C C CC N h CC CC � m N m co V1 C �i C 41 � C 41 Q' C C C C C C h N� V1 V1 CC mo mo z ooh co �m �o Via, N � V1 VY h C � O O tm bA O _ � U r � � '•'� � � N N U � � U a.' ° ou p o a H z a U w C b 0 P. w C C N \C-i C k l f k § — m a —% N m oc /\ \ \\ 7 2 3 _ } \g = /\ % m \ � \\ M z r m \ / / \ \ g ƒ $ % % —\ m a \ \ r m 2 \ /\ \ g m 7 3 / \ a z _ § m a —% r m 2% \ / M \ g m p u u } \g = /\ % m \ � \\ M z r m \ / / \ \ g ƒ $ % % \ \ / \ m — / § —% m® ~ ^RS% / u u } \g = /\ 3 G\ \ \\ ) \ / \ \ \ \ / \ / a z _ k u ` �% ®® G2 �3 2@ ~mR%& a / k 2 Q ) 0 W ® m® $ \ � ~R % % / / I / m® £3 3 E% ~m ca, %% ~ Cal m \ \ � � a Q �y mz �\ rm ca, 2% /\ // § a � � mz a a\ © m \ $g // E 2 % oc \~� C-1 § ) / u u } \g = \ \ ® \ \\ ) \ / \ \ \ \ / \ a = _ ^\ ~/ � \ / \\ \ _ / r \ r« z r $ors 3 \ / r2 K/ £ m � z e ococ } r oc 3 \ \ \ K% r/ § m � r\ m oc $ �/ ~ m r ^ oc » # �o m 2 � 6– %\ / (10 § ® \ # » r— oc � @ a 1.0 �® Ln ~ � r- ~* ~ Z ~ 2 2 k ) z � a -\ \ \ / � � 4 = \ % 2 © g e w q \ / \ ~ 't �\ \ � \ / fn \ / 0-0 _ J w \ #» « #m{ Q /� / f R » � #» . r r Cal a o \� Ln / 3 � ) ( d ( ) } [ ® () \ 5 § .( 2 ] / § / §)} \\ § \% ƒ « k l f k EideBailly. CPAs & BUSINESS ADVISORS 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 A VDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 15, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that-we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency in internal control described in Part II of the accompanying Schedule of Findings and Questioned Costs as item II -A -10 to be a material weakness. 133 www.eidebaiIlv.com 3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Comments involving statutory and other legal matters about the City's operations for the year ended June 30, 2010, are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City of Iowa City, Iowa, and are reported in Part III of the accompanying Schedule of Findings and Questioned Costs. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes. The City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. While we have expressed-our conclusion on the City's response, we did not audit the City's response, and accordingly, we express no opinion on it. This report, a public record by law, is intended solely for the information and use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City, Iowa, may report, including federal awarding agencies and pass- through entities, and is not intended to be and should not be used by anyone other than these specified parties. We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City of Iowa City, Iowa, during the course of our audit. Should you have any questions concerning any of the above matters, we shall be pleased to discuss them with you at your convenience. Dubuque, Iowa December 15, 2010 134 EideBaillyM CPAs & BUSINESS ADVISORS REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Compliance We have audited the compliance of the City of Iowa City, Iowa, with the types of compliance requirements described in the OMB CircularA -133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2010. The City's major federal programs are identified in the summary of the independent auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether non- compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the compliance requirements referred to above that that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2010. Internal Control Over Compliance Management of the City of Iowa City, Iowa, is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. 135 www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 ; Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 EOE A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report, a public record by law, is intended solely for the information and use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City, Iowa, may report, including federal awarding agencies and pass- through entities, and is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 15, 2010 136 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2010 Pass - Through Entity Identifying Program Grantor /Pro ram _ CFDA Number Number Expenditures U.S. Department of Commerce Direct Program Economic Adjustment Assistance 11.307 $ 5,603 Economic Adjustment Assistance 11.307 27,684 Total U.S. Department of Commerce _ 33,287 U.S. Department of Housing and Urban Development Direct Program Community Development Block Grants/ Entitlement Grants 14.218 279,566 Community Development Block Grants/ Entitlement Grants 14.218 515,972 795,538 Pass - Through Program From Iowa Department of Economic Development Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRMH -015 584,709 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRMH -215 829,858 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRB -204 819,294 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRH -210 1,297,500 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRI -071 34,650 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRHB -225 1,896,523 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 14.228 08 -DRH -010 2,387,928 7,850,462 137 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 U.S. Department of Justice Pass - Through Program From Iowa Department of Justice Violence Against Women Formula Grants 16.588 VW -10 -34 46,929 Direct Program Bulletproof Vest Partnership Program 16.607 216 Bulletproof Vest Partnership Program 16.607 1,535 1,751 Pass - Through Program From Governor's Office of Drug Control Policy Public Safety Partnership and Community 09- Hotspots/ Policing Grants 16.710 Interdiction -09 1,642 Direct Program Edward Byrne Memorial Justice Assistance Grant Program 16.738 6,698 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2,885 9,583 138 Pass - Through Entity Identifying Program Grantor /Program CFDA Number Number Expenditures U.S. Department of Housing and Urban Development (continued) Direct Program HOME Investment Partnerships Program 14.239 $ 61,186 HOME Investment Partnerships Program 14.239 53,272 HOME Investment Partnerships Program 14.239 184,569 HOME Investment Partnerships Program 14.239 202,297 501,324 ARRA — Community Development Block Grant ARRA Entitlement Grants (CDBG -R) (Recovery Act Funded) 14.253 176,785 Public and Indian Housing 14.850 122,330 Public and Indian Housing 14.850 106,870 229,200 Section 8 Housing Choice Vouchers 14.871 7,237,907 Public Housing Capital Fund 14.872 44,415 Public Housing Capital Fund 14.872 109,360 153,775 ARRA - Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded '14.885 169,005 Total U.S. Department of Housing and Urban Development 17,113,996 U.S. Department of Justice Pass - Through Program From Iowa Department of Justice Violence Against Women Formula Grants 16.588 VW -10 -34 46,929 Direct Program Bulletproof Vest Partnership Program 16.607 216 Bulletproof Vest Partnership Program 16.607 1,535 1,751 Pass - Through Program From Governor's Office of Drug Control Policy Public Safety Partnership and Community 09- Hotspots/ Policing Grants 16.710 Interdiction -09 1,642 Direct Program Edward Byrne Memorial Justice Assistance Grant Program 16.738 6,698 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2,885 9,583 138 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass - Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Justice (continued) Pass - Through Program From Governor's Office of Drug Control Policy ARRA — Edward Byrne Memorial Justice Assistance Grant Program /Grants to States and Territories 16.803 09JAG /ARRA -206 $ 123,675 Direct Program ARRA — Edward Byrne Memorial Justice Assistance Grant Program /Grants to Units of Local Government 16.804 179,973 Total U.S. Department of Justice Capital Investment Grants 20.500 IA -04 -0113- 371 -07 4,268 363,553 Capital Investment Grants 20.500 IA -04 -0113- 371 -10 U.S. Department of Transportation 886,742 Direct Program Federal Transit — Metropolitan Planning Airport Improvement Program 20.106 33,136 1,673 Airport Improvement Program 20.106 281,569 Airport Improvement Program 20.106 6,635 Airport Improvement Program 20.106 26,678 ARRA - Airport Improvement Program 20.106 1,269,453 Airport Improvement Program 20.106 6,715 Airport Improvement Program 20.106 1,698,358 3,291,081 Pass - Through Program From Iowa Department of Transportation Highway Planning and Construction 20.205 FHWAIA08 -05 23,628 Highway Planning and Construction 20.205 FHWAIA08 -02 18,898 Highway Planning and Construction 20.205 FHWAIA08 -03 34,829 Highway Planning and Construction 20.205 l OMPO -JCCOG 126,681 ARRA - Highway Planning and Construction 20.205 ESL- 3715(643)- -75 -52 600,000 Highway Planning and Construction 20.205 HDP- 3715(628)- -71 -52 357,184 1,161,220 Federal Transit — Capital Investment Grants 20.500 IA -04 -0113- 371 -07 4,268 Federal Transit — Capital Investment Grants 20.500 IA -04 -0113- 371 -10 882,474 886,742 Federal Transit — Metropolitan Planning Grants 20.505 lOMPO -JCCOG 33,136 139 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass - Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Transportation (continued) Direct Program Federal Transit — Formula Grants Pass - Through Program From Iowa Department of Transportation ARRA - Federal Transit — Formula Grants Capital Assistance Program for Elderly Persons and Persons with Disabilities Job Access — Reverse Commute Job Access — Reverse Commute Job Access — Reverse Commute Iowa Department of Public Safety, Governor's Traffic Safety Bureau Alcohol Impaired Driving Countermeasures Incentive Grants I Alcohol Impaired Driving Countermeasures Incentive Grants I Total U.S. Department of Transportation U.S. Department of Energy Direct Program ARRA - Energy Efficiency and Conservation Block Grant Program U.S. Department of Education Pass - Through Program From Iowa Department of Education ARRA — State Fiscal Stabilization Fund - Government Services, Recovery Act 20.507 $ 904,110 20.507 IA -96- 0001- 210 -09 1,057,448 1,961,558 20.513 IA -16- X001 - 371 -10 94,336 20.516 IA -37- X012 - 371 -09 560 20.516 IA -37- X017 - 371 -10 93,451 20.516 IA -37- X017- 371 -09 32,267 126,278 20.601 PAP -10 -410, Task 36 19,138 20.601 PAP -09 -410, Task 36 10,595 29,733 7,584,084 81.128 20,211 84.397 S397AO90016A 75,568 140 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass - Through Entity Identifying Program Grantor/Program CFDA Number Number _ Expenditures U.S. Department of Homeland Security Pass - Through Program From Iowa Homeland Security and Emergency Management Division Disaster Grants — Public Assistance (Presidentially Declared Disasters) Disaster Grants — Public Assistance (Presidentially Declared Disasters) Hazard Mitigation Grant (B) Hazard Mitigation Grant (B) Direct Program Assistance to Firefighters Grant Total U.S. Department of Homeland Security Total 97.036 FEMA -DR- 1763 -0015 01 $ 3,622,952 97.036 FEMA- 1763 -DR -IA 1,565,813 5,188,765 97.039 DR- 1737 - 0001 -01 8,301 97.039 DR- 1763 - 0137 -01 7,142 15,443 97.044 EMW- 2008 -FR -00186 906,400 6,110,608 31,301,307 See notes to the Schedule of Expenditures of Federal Awards. 141 CITY OF IOWA CITY, IOWA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2010 NOTE 1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Iowa City, Iowa, and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2. SUBRECIPIENTS Of the federal expenditures presented in the schedule, the City of Iowa City, Iowa, provided federal awards to subrecipients as follows: Program Title Community Development Block Grants/ Entitlement Grants HOME Investment Partnerships Program Edward Byrne Memorial Justice Assistance Grant Program ARRA — Edward Byrne Memorial Justice Assistance Grant Program/Grants to States and Territories ARRA — Edward Byrne Memorial Justice Assistance Grant Program /Grants to Units of Local Government 142 Federal Amount Provided CFDA Number to Subrecipients 14.218 $ 666,836 14.239 326,630 16.738 9,243 16.803 60,214 16.804 106,610 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part I: SummaEy of the Independent Auditor's Results: Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness identified_ Yes Significant deficiency None reported Noncompliance material to financial statements noted No Federal Awards Internal control over major programs: Material weakness identified No Significant deficiency None reported Type of auditor's report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133, Section .510(a) No Identification of major programs: CFDA Number Name of Federal Program or Cluster Cluster: 14.218 Community Development Block Grants/ Entitlement Grants 14.253 ARRA — Community Development Block Grant ARRA Entitlement Grants (CDBG -R) (Recovery Act Funded) 14.228 Community Development Block Grants/ State's Program and Non - Entitlement Grants in Hawaii 16.804 ARRA — Edward Byrne Memorial Justice Assistance _ Grant Program /Grants to Units of Local Government 20.106 Airport Improvement Program 20.205 Highway Planning and Construction Cluster: 20.500 Federal Transit — Capital Investment Grants 20.507 Federal Transit — Formula Grants 97.044 Assistance to Firefighters Grant Dollar threshold used to distinguish between Type A and Type B programs $939,039 Auditee qualified as low -risk auditee No 143 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part II: Findings Related to the Financial Statements: MATERIAL WEAKNESS: II -A -10 Material Audit Adjustment Criteria — A properly designed system of internal control over financial reporting allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generally accepted accounting principles. Condition — During the course of our engagement, we proposed a material audit adjustment to the financial statements that would not have been identified as a result of the City's existing internal controls and, therefore, could have resulted in a material misstatement of the City's financial statements. The adjustment was related to a loan receivable within the Shared Revenue Fund. Cause —There was a miscommunication between the Accounting Division and the Planning and Community Development Department regarding a payment from the Shared Revenue Fund that was a loan, not a grant. Effect — The effect of this condition was that if the adjustment had not been recorded, the financial statements would have been materially misstated. Recommendation — We recommend that finance staff work together with the Planning and Community Development Department to develop a process to identify and track the needed information to record the proper receivable and deferred revenue balances at year end. Response — A separate expenditure account number has been set up for Aid to Agency payments that are external loans to help identify these payments in the General Ledger as loans versus assistance payments. The Accounting Division will look at an internal control process to track balances in the Accounting Division to be used as a comparison to balances maintained in Planning and Community Development. Finance staff will work with the Planning and Community Development Department staff to identify the necessary information to record the proper receivable and deferred revenue balances at year end. Due to an increase in Federal and State funding for flood and stimulus grants, the Accounting Division was already in the process of hiring an additional accountant, whose primary responsibility will be grants and who will be able to commit more time to grant reporting to help prevent issues like this in the future. Conclusion — Response accepted. 144 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part III: Other Findings Related to Required Statutory Reporting: III -A -10 Certified Budget —Disbursements during the year ended June 30, 2010, did not exceed the amount budgeted. III -B -10 Questionable Expenditures — We noted no expenditures that we believe may fail to meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. III -C -10 Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or employees were noted. III -D -10 Business Transactions —No business transactions between the City and City officials or employees were noted. III -E -10 Bond Coverage — Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to insure the coverage is adequate for current operations. III -F -10 Council Minutes —No transactions were found that we believe should have been approved in the Council minutes but were not. III -G -10 Deposits and Investments — No instances of non - compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were noted. III -H -10 Revenue Bonds —No instances of non - compliance with the provisions of the City's revenue bond resolutions were noted. 145