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HomeMy WebLinkAbout2007-01-04 Info Packet I:; 1 --= -1lIa'_ ~~Wit:~~ -...;:::., _1ID.;'it'c- .... - ~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET January 4, 2007 JANUARY 8 SPECIAL WORK SESSION ITEMS IP1 City Council Meetings and Work Session Agendas IP2 Memorandum from the Director of PCD: Affordable Housing Market Analysis RFP MISCELLANEOUS IP3 Memorandum from the City Manager: Housing Programs IP4 Memorandum from the City Manager: 2006 IPS Joint Meeting with Area Governments, School Board of Directors, and the Johnson County Board of Supervisors, January 10, 2007 - Iowa City Public Library [See revised submitted 1/5/07] IP6 E-mail from Nick Nassif to the Parking Manager: Merchant Parking Problem IP7 Letter from Sharon Shapcott: Leaf Removal Program IPS E-mail from Donald Baxter to Chief Hargadine: Speeding on Madison Street IP9 Building Permit Information - December 2006 IP10 E-mail from Douglas Elliott: Johnson/Linn County Public Leadership Group meeting January 25, 2007 Comprehensive Annual Finance Report (CAFR) [Distributed at 1/4/07 Budget Work Session] Article from New York Times: "Design for Everyone, Disabled or Not" [Submitted at 1/8 Work Session by Council Member Correia. PRELIMINARY/DRAFT MINUTES IP11 Board of Appeals: December 4, 2006 IP12 Board of Adjustments: December 13, 2006 IP13 Airport Commission: December 14, 2006 IP14 Police Citizens Review Board: December 18, 2006 IP15 Economic Development Committee: December 12, 2006 I:; 1 ~~~~tt -...;:::., _1III.;'it'__ --..~ ~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET January 4, 2007 JANUARY 8 SPECIAL WORK SESSION ITEMS IP1 ncil Meetings and Work Session Agendas I IP2 from the Director of PCD: Affordable Ho sing Market Analysis RFP IP3 Memorandum from tH unty Public Leadership Group meeting IP4 2006 IPS Joint Meeting with Area vernments, Scho I Board of Directors, and the Johnson County Board of Supervisor January 10, 20 -Iowa City Public Library IP6 Merchant Parking Problem IP7 Letter from Sharon Shapcott: Leaf R IPS E-mail from Donald Baxter to Chief Harg i e: Speeding on Madison Street IP9 Building Permit Information - Decembe IP10 E-mail from Douglas January 25, 2007 INUTES IP11 Board of Appeals: December 4, 20 6 IP12 Board of Adjustments: Decemb r 13, 2006 IP13 Airport Commission: Decemb r 14, 2006 IP14 Police Citizens Review Boar: December 18, 2006 IP15 Economic Development C mittee: December 12, 2006 I';;; 1 --= -~... ~~~W;!!:~ -.;:;,., ......~ --...... CiTY OF IOWA CiTY City Council Meeting Schedule and Work Session Agendas U!J January 3, 2007 www.icgov.org . MONDAY, JANUARY 8 4:30p Special Council Work Session . Planning and Zoning Items . Housing Market Analysis - Request for Proposal No . Council Appointments Dinner . Highway 6 Gilbert Street [reference agenda item #17] . Agenda Items Council Time . Schedule of Pending Discussion Items . Future Meeting Schedule Emma J. Harvat Hall . TUESDAY, JANUARY 9 7:00p Special Formal Council Meeting Emma J. Harvat Hall . WEDNESDAY, JANUARY 10 Iowa City Public Library 4:00p Joint Meeting - Area Governments, School Board of Directors, and the Johnson County Board of Supervisors TENTATIVE FUTURE MEETINGS AND AGENDAS I . MONDAY, JANUARY 15 EmmaJ. HarvatHall Martin Luther King Day - Offices Closed . TUESDAY, JANUARY 16 8:00a-5:00p Special CIP Budget Work Session Emma J. Harvat Hall . MONDAY, JANUARY 22 6:30p Special Council Work Session Emma J. Harvat Hall . TUESDAY, JANUARY 23 7:00p Special Formal Council Meeting Emma J. Harvat Hall . MONDAY, JANUARY 29 6:30p Special Budget Work Session Emma J. Harvat Hall . TUESDAY, JANUARY 30 7:00p Special Budget Work Session Emma J. Harval Hall . MONDAY, FEBRUARY 5 6:30p City Conference Board Meeting Council Work Session . TUESDAY, FEBRUARY 6 7:00p Formal Council Meeting Emma J. Harval Hall Emma J. Harvat Hall . TUESDAY, FEBRUARY 20 6:30p City Conference Board Meeting 7:00p Special Budget Work Session Emma J. Harvat Hall I ~ 1 ~~~~tt -..;:..... _all" .....~ CITY OF IOWA CITY MEMORANDUM [;J From: January 3, 2007 City Council Karin Franklin, Director, P , .~[I#~~ ViV\ Date: To: Re: Affordable Housing Market Analysis RFP Attached is the Request for Proposals (RFP) for an Affordable Housing Market Analysis. With the Council's informal approval at the work session on Jan. 8th, this RFP will be sent to the consultants on the enclosed list on January 10th for submittal by February 16, 2007. This RFP is the outcome of the discussion of inclusionary housing that took place at the Council's work session of October 16, 2006. A memo summarizing that discussion is also enclosed in this packet. The RFP has been reviewed by members of the Housing Alliance and their individual and collective comments have been incorporated. Cc City Manager Jeff Davidson, Exec. Director, JCCOG Housing Alliance members DATE: January 8, 2007 REQUEST FOR PROPOSAL: Consultant Services for an Affordable Housinll Market Analvsis (Greater Iowa City metropolitan area. Johnson County. IAI PLEASE TAKE NOTE: THIS DOCUMENT CONSTITUTES A REQUEST FOR PROPOSALS, AND IS THUS A SOLICITATION FOR RESPONSES. CONVERSELY, THIS REQUEST FOR PROPOSAL IS NOT A BID AND IS NOT GOVERNED BY STATE OR FEDERAL BIDDING REQUIREMENTS. MOREOVER, ANY ACCEPTANCE OF A PROPOSAL SHALL NOT RESULT IN A BINDING CONTRACT BETWEEN THE CITY AND THE PROPOSER, BUT INSTEAD WILL SIMPL Y ENABLE NEGOTIATIONS TO TAKE PLACE WHICH MAY EVENTUALLY RESULT IN A MORE DETAILED AND REFINED CONSUL TANT AGREEMENT OR CONTRACT BETWEEN THE PROPOSER AND THE CITY. NOTICE TO PROPOSERS: Sealed proposals will be received at the Office of the City Clerk, 410 E. Washington Street, Iowa City, Iowa until the time and date specified below for: Consultant Services for an Affordable Housing Market Analysis (Greater Iowa City metropolitan area, Johnson Co., IA) Proposals must be made to the City as to how the Proposer intends to provide consultant services more specifically defined herein. The City retains the right to reject proposals as non-responsive, to ask for clarification, to enter into negotiation to discuss cost, scope of work, procedures, and final work product, all prior to the execution of a formal consultant agreement. PROPOSALS DUE: 5:00 p.m. CST, February 16, 2007 ADDRESS PROPOSALS TO: Attention of the Director of Planning, Office of the City Clerk, 410 East Washington Street, Iowa City, IA 52240, on or before the time and date speCified above. Proposals shall be sealed and clearly marked on the front with reference to the specific project. FAX and email proposals will not be accepted. QUESTIONS: Questions regarding this Request for Proposal shall be directed to: Karin Franklin, Director Department of Planning and Community Dev. 410 East Washington Street Iowa City, IA 52240 OR PH. (319) 356-5232 FAX: (319) 356-5217 Email: karin- franklin@iowa-city.org Steve Long, Coordinator Community Development Division same address as director PH (319) 356-5250 FAX: (319) 356-5217 Email: stephen-long@iowa-city.org The City is not responsible for any information or clarification given by other representatives. INDEX Section I Background Information Section II Objectives Section III Scope of Work Section IV Schedule Section V Proposal Contents Section VI Proposal Requirements Section VII Selection Criteria 2 Request for Proposal Consultant Services for an Affordable Housing Market Analysis (Greater Iowa City metropolitan area, Johnson County, Iowa) SECTION I BACKGROUND INFORMATION The metropolitan area of Iowa City, Coralville, University Heights, North Liberty and Tiffin in southeast Iowa includes a population of approximately 85,000 people. Iowa City is the oldest and largest city within the metropolitan area. It was founded in 1858 and had a reported population of 63,027 in the 2000 Census. These communities have experienced varying rates of growth since 2000 spanning from 2% to 14%. During this period housing construction has been active with an average of 1,155 units built per year. The majority of the units have been constructed in Iowa City and North Liberty. Between 2000 and 2006, the median price of housing in Iowa City increased 45%, from $130,000 to $188,000. Although the housing market seems to have softened some in the last year, there is continued concern that households are cost burdened in housing (more than 30% of income is spent on housing costs) or that people do not have access to housing. This concern spans the income groups of the very poor to those people at 80% to 110% of median income. It is recognized that a household's inability to access housing is a social as well as an economic issue for the community. Households that are homeless or housing cost burdened may have instability in their housing situation which has an impact on the stability of families, on children's performance in schooi, and on the social welfare costs of the community. Inability to find adequate housing also impacts the economy of the area by discouraging entry level workers from being able to live where they work. The lack of workers may be a disincentive to employers choosing this area as one in which to do business. Housing issues and concerns have been raised by the school district, public officials, local business owners, employers, citizens, human service organizations, and others. The intent of this market analysis is to help the City, and its partners, document housing needs as background for determining appropriate expenditure of local housing funds as well as Federal CDBG and HOME dollars, and to support any regulatory measures that may become part of public policy. SECTION II OBJECTIVES To document the need for affordable housing units for income groups up to and inciuding 110% of median income; to analyze the existing housing market and its ability to meet that need; to project future housing needs; and to suggest public policy approaches and implementation strategies to provide housing opportunities for the targeted income levels. SECTION III SCOPE OF WORK The consultant shall work with the City, and its partners, to develop a concise, useable Affordable Housing Market Analysis that will benefit the metropolitan area in developing housing policies and practices and can be used by the City of Iowa City in decision-making regarding the expenditure of funds for housing projects and/or the adoption of regulatory measures for the provision of affordable housing. Tasks for the consultant will include: 1. Data collection including, at a minimum: . number of households within the following income groups: I. less than or equal to 30% median income; il. 31-50% median income; ill. 51-80% median income; iv. 81-110% median income; 3 ---_.._----_._--_..._-----_._._.."~._------_._._--,..-_._~------~ . number of cost burdened households within these income strata (cost burdened = expending more than 30% of income on rent or mortgage, taxes, insurance, and utilities); . to the extent possible, household data should be broken down into demographic categories such as elderly, people with disabilities, working families, and students; and . housing units currently available by price, type (single-family detached including manufactured homes, zero lot line, or multi-family), and location (by city and area of city). 2. Data collected shall be for the metropolitan area defined as Iowa City, University Heights, Coralville, Tiffin, and North Liberty such that the data can be used by the individual communities or aggregated. 3. An analysis of the unmet need for affordable units by income strata and demographic grouping. 4. A 5-year projection of housing needs for these groups. 5. An analysis of the factors which are barriers to households accessing affordable units by income strata and demographic grouping. 6. The impact of local transportation costs and commute times should be considered in the analysis. 7. Submission of a report including the findings of tasks 1-6 and proposals for the elimination or mitigation of each of the barriers identified. 8. Presentation of findings and proposals in a public discussion forum. The consultant will be expected to confer with various stakeholders in this issue including effected households in the various income strata, housing providers, major employers, public officials, and local interest groups to gain their expertise and insights prior to developing proposals for Task #7. SECTION IV SCHEDULE Completion of the Affordable Housing Market Analysis and submission of the report is anticipated within 120 days of execution of a formal Consultant Agreement. After final review of the report by City staff and compietion of any necessary revisions, the presentation of the findings in a public discussion forum would occur within 60 days of submission of the initial report. The following is an anticipated schedule for consultant selection and conducting the work. The City reserves the right to modify any part of this schedule. Each proposal shall remain open for a period of 90 days from the date of receipt. . Solicitation issued . Proposals due . Contract awarded . Contract period January 10, 2007 February 16, 2007 March 6, 2007 March 6,2007- September 7,2007 SECTION V PROPOSAL CONTENTS General Instructions 1. Each firm is requested to submit ten (10) copies of its proposal in typewritten form and seaied in an envelope addressed to: Office of the City Clerk, 410 E. Washington Street, Iowa City, IA 52240 ATTN: Director of Planning. 4 2. Modifications to a firm's proposal shall be enclosed in sealed envelopes and addressed to the office noted above. Modifications must meet the same deadline as the originai proposal. 3. FAX or electronic based offers will not be considered in response to this RFP. 4. Be concise. Proposal should be limited to a maximum of 20 pages. The proposal package shall contain, at a minimum, the items listed below. Proposers are urged to be as thorough and complete as possible, while not exceeding the 20-page maximum for proposals. 1. Identification of Proposer-- Identify the Proposer, Propose~s mailing address, telephone number, fax, email address and contact person who can answer questions concerning the proposal. 2. Previous Firm and Proiect Team Experience-- The Project Team for this Project should be identified. The Proposer should describe in as much detail as possible recent experience in completing similar housing market analyses completed by the firm and by the individuals who would be assigned to this project Include a list with: the client's name, the name and telephone number of a person associated with the project who may be contacted for a reference, the year the project was completed and the individual from the Proposer's team who was responsible for the project. 3. Subconsultants- If your proposal includes the use of subconsultants or is a joint-venture proposal, please identify all consultants and their responsibility and qualifications as outlined in 1, 2, and 3 above. 4. Work Plan-- A work plan showing how your firm would complete the Affordable Housing Market Analysis with tasks and timeframes accomplishing the Scope of Work requested in this RFP. 5. Budllet-- Provide a detailed estimate of costs and fees for services to complete the work requested and a proposed payment schedule if other than payment in full upon conclusion of work. 6. Miscellaneous Information- Any additional information regarding your firm's experience and capabilities that you feel would be important to the success of this project. SECTION VI PROPOSAL REQUIREMENTS 1. Each proposer shall examine the Request for Proposal document and determine the adequacy of all statements. Any inquires, suggestions or requests concerning interpretation, clarification, or need for additional information pertaining to the RFP shall be made through the Director of Planning or the Community Development Coordinator for the City of Iowa City as noted on the cover page of this RFP. The City shall not be responsible for oral interpretations given by any other City employees, representatives or others. Prior to acceptance of a Proposal by the City, the issuance of a written addendum is the only official method whereby interpretation, clarification or additional information may be given. If addenda are issued to this Request for Proposal, the City will attempt to notify all prospective proposers who have secured same. However, it shall be the responsibility of each proposer, prior to submitting a proposal, to contact the City to determine if addenda were issued. Once a Proposal is accepted by the City, the City is free to enter into negotiations concerning the broad outlines of this Proposal, in order to try and reach an agreement on what more precisely, the Proposer and the City intend to accomplish by way of the consulting services. 2. Ten (10) copies of the proposal shall be submitted. 3. The proposal shall include a proposed time schedule for the activity. 5 4. The proposal shall include a cost estimate separated into individual budget elements. 5. All expenses for making proposals are to be borne by the proposer. 6. Any proposal may be withdrawn up until the date and time set for receiving proposals. Any proposal not so withdrawn shall, upon opening, constitute an irrevocable offer for a period of 90 {ninety} calendar days to provide the City of Iowa City the services set forth. 7. Proposer understands that the City's acceptance of a Proposal only enables the City and the Proposer to negotiate a formal Consultant Agreement satisfactory to both parties. 8. Because this endeavor is being funded, in part, from the City's CDBG Program, the consultant will enter into a written agreement with the City using the City's HUD approved contract to ensure stipulation of, and compliance with, all Federally required provisions. SECTION VII SELECTION CRITERIA The City will evaluate each firm in accordance with the following criteria to determine the firm that it feels is best suited to meet the needs of this project. Response to this RFP should include information deemed pertinent to each and all of said criteria. During the evaluation process, the City reserves the right to request additional written information to assist in the evaluation of proposals. 1. Qualifications . The firms previous work experience with, and success in, projects of similar scope and purpose. . The qualifications of key personnel who will be assigned to the project. 2. Timelv Completion of the Proiect . The consultant's current workload and its ability to complete the project in a timely manner according to the anticipated schedule specified. 3. Proiect Overview and Work Plan . The firm's overall approach to how it would complete this project in an efficient and effective manner. . The firm's understanding of the project including identification of major issues or problems which it may perceive at this time concerning the project. 4. Cost of Service . The reasonableness of the budget proposed by the firm. 5. Quality and Thoroullhness of Proposal . Completeness of the proposal submitted. . Any additional information formally requested by the City will be inciuded in this criterion. 6. Unillue Services or Qualifications . Any special capabilities a firm has which would significantly contribute to the success of this project. ppddir/consultsrv - mktanalysis.doc 6 I ~ 1 -~= -1It_ ~~aii!:~ "'":, -':", ..... .. CITY OF IOWA CITY MEMORANDUM From: October 18, 2006 City Council Karin Franklin, Director, P Inclusionary Housing Discussion Date: To: Re: This memo is to confirm the Council's direction regarding inclusionary housing efforts. At the work session October 16th, a majority of the City Council agreed with the goals of increasing the supply of affordable units and dispersing those units throughout the community. Three members felt the additional information to be made available through a proposed study to substantiate and define the need for affordable units was necessary prior to concurring with these goals. The staff was directed to proceed to engage a consultant to document the need for affordable housing units for income groups up to and including 120% of median income. This documentation will include data from the metro area broken down by city and will cover a study of the following: . development patterns in terms of frequency and size of projects, . numbers of households within the income groups noted, . numbers of cost burdened households within these income strata (cost burdened being defined as expending more than 30% of income on housing rent or mortgage, taxes, insurance, and utilities, . units available by price, and . an analysis of the unmet need for affordable units by income strata. The metro area is defined as Iowa City, University Heights, Coralville, North Liberty and Tiffin. A more detailed study outline to be incorporated in a Request for Proposal (RFP) will be prepared by the staff and made available to the Housing Alliance for comment. The next item the Council will see regarding this issue will be an authorization of the RFP prior to its mailing to prospective consultants and general publication. Council generally expressed a desire to explore this topic with other governmental entities in the area but agreed not to delay research on affordability questions. An item has been placed on the agenda for the JCCOG Urbanized Area Policy Board for the Oct. 25th meeting. An item can also be placed on the agenda of the next quarterly joint governments meeting on January 10. Cc City Manager ~ff Davidson !/Housing Alliance Affordable Housina Market Analvsis RFP Consultant MailinQ List Marty Shukert RDG-Crouse, Gardner, Shukert 900 Farnam on the Mall Suite 100 Omaha. NE 68102 Danter Company 363 East Town Street Columbus, OH 43215 Novogradac 7227 Metcalf Ave. Overland Park, KS 66204 Tim Williams Vogt, Williams & Bowen 869 W. Goodale Boulevard Columbus, OH 43212 Jim Holtz MSA Professional Services 1605 Associates Drive Suite 102 Dubuque, IA 52002 Kelly Deutmeyer East Central Intergovernmental Association 3999 Pennsylvania St. Suite 200 Dubuque, IA 52002 Real Property Research Savage Mill Box 2018 8600 Foundry Road Savage, MD 20763 S. B. Friedman & Co. 221 N. LaSalle St. Suite 820 Chicago, IL 60601 Jan. 2007 1 _.....~.,-~---_._--_.,-,...__..._"~-~.__._.._.._'-'_.--_.-._.+-~-----------~-~,.,_..."..__.-._..,._----".,_.,.~,---,-_.._..__.__.__.,."-_._-----_."'_'_'"~-'--'----- Frandson, Knapp Financial Center, Suite 1801 6th & Walnut Des Moines, IA 50309 Leland Consulting Group Real Estate Strategists 694 South Gaylord Street Denver, CO 80209 Kelly Murdock Community Research Services, L.L.C. 2380 Science Parkway Okemos, MI 48864 Bob Lefenfeld Real Property Research Group 1.0400 Little Patuxent Parkway, Suite 450 Columbia, MD 21.044 Clarion 75 E. Wacker Drive Suite 1. 600 Chicago, IL 60601. Hunter Interests, Inc. 1.21. Main Street Annapolis, MD 21401 Maxfield Research, Inc. 430 First Avenue Suite 620 Minneapolis, MN 55401. Basile Baumann Prost & Assoc. 177 Defense Highway Suite 1. 0 Annapolis, MD 21401. Hanna Keelan Associates, P.C. 3275 Holdrege Street P.O. Box 30552 Lincoln, NE 68503-0552 2 Abeles Phillips Preiss & Shapiro, Inc. 434 Sixth Avenue New York, NY 10011 Bolan Smart Associates, Inc. 1717 Pennsylvania Ave. NW Washington, DC 20006 Melanphy & Associates, Inc. 8623 West Bryn Mawr Avenue Chicago, IL 60631-3514 Solin and Associates, Inc. 901 Douglas Avenue Suite 207 Allamonte Springs, FL 32714 Steven Dahl 2666-300 40Th Street Jewell,IA 50130 3 I ~ 1 ~~~~tt -..;:..... _all" ...... CITY OF IOWA CITy(3;J MEMORANDUM Date: January 2, 2007 To: City Council From: City Manager Re: Housing Programs Recognizing that a free market for housing is often not a fair market for low and moderate income residents, the City sponsors or participates in housing support programs and policies. These programs and policies are directed at individuals and families of low and moderate income who often are the elderly and people with disabilities. Through City initiative a variety of policies attempt to balance the market process. This is achieved through City housing support programs as well as community-based non-profit housing developers who invest and assist in providing affordability in housing to our most vulnerable citizens. The quantity, quality and diversity of our local housing stock are essential to the vibrancy and stability of our neighborhoods. Rehabilitation of the existing housing stock allows seniors to remain in their homes in neighborhoods they know and prevents the deterioration of modest homes. Rehabilitation of homes in our community is not only an investment in the single home, but an investment in the neighborhood. Homebuyer assistance allows first-time homebuyers to acquire a home in our community, and rent assistance allows those with little means to live in decent, safe and stable homes. Additionally, a housing policy helps support economic development activities by increasing work force housing, creating and/or sustaining construction and industry-related jobs, and lowers monthly housing costs where the savings is reinvested in the local economy. Attached is a list of housing programs you will find familiar. Clearly you can see the extent and diversity of these housing programs. Many of these were only just recently discussed by our Scattered Site Housing Task Force. Many will be reviewed as part of the proposed Housing Market Analysis Study. Following that study, it would seem that in this era of limited resources as a matter of policy we would want to assign our limited resources to our most effective programs and policies. In creating a City housing policy we need to understand the market. The process to hire a consultant to analyze the housing market of the Iowa City metropolitan area can begin on January 10, 2007 with the release of the Request for Proposals. The contract will be awarded on March 6, 2007 and we hope to have the report completed by September 7, 2007. The consultant will document the need for affordable housing units for income groups up to and including 110% of median income, analyze the existing housing market and its ability to meet that need, project future needs and suggest public policy approaches and implementation strategies to provide housing opportunities for the targeted income levels. It is my suggestion that as soon as the report has been completed we plan a meeting of the City Council where the staff can walk through each of the current housing programs, explaining the amount of monies invested and other measurable factors. This will allow the Council to consider its policy options. The Housing Market Study will then have a foundation in current Council policy and I believe make the review of options easier to conduct. January 2, 2007 Page 2 Upon a review of these various programs and policies we can determine which programs should receive additional support from our community. We can also identify ways to address the issue on a regional level and encourage other communities to participate in shared outcomes. It was difficult at the time of the preparation of the proposed FY08 budget to find a "spot" in our budget document, in that this issue is both operational as well as capital. and much policy must yet be decided. It is because of this that I chose to present this issue to you under separate memorandum. Our operational funds remain scarce. However, we do have comfortable financial margins in our capital funds if the Council were to decide on their use to address a housing policy. Attachment mgr/memiHousingmarkeI.12.5.06.doc ~~ Affordable Housing Funds/Programs Administered by the City of Iowa City CDBG funds (Community Development Div) Land acquisition (vacant lots for Habitat, Housing Fellowship, Shelter House) Building acquisition (Crisis Center, Salvation Army, existing housing acquired by Housing Fellowship) Housing rehabilitation (accessibility, exterior repair, mobile home repair & emergencies) Operational funds for housing service providers (Shelter House, MECCA, Elder Services) Rental deposit assistance (emergency rental or security deposit by Shelter House) Downpayment assistance for homeownership HOME funds (Community Development Div) Land acquisition (vacant lots for Habitat, Housing Fellowship, Burns & Burns) Housing Acquisition (HACAP transitional units, Successful Living, Housing Fellowship) New construction (Burns & Burns, MECCA, Housing Fellowship, Regency Heights) Housing rehabilitation (comprehensive rehab for owner-occupied housing) Tenant Based Rental Assistance (TBRA) TARP Program - GO Bond (Community Development Div) Owner-occupied housing rehabilitation m income 81% to 110% of area median Iowa City Housing Authority Public Housing Housing Choice Voucher Program Affordable Dream Homeownership Program Section 8 Homeownership Program Tenant-to-Ownership Program ROSS Grant Family Self-Sufficiency Program (FSS) Housing Authority FSS/ROSS Program Coordinating Committee City General Funds Aid to Agencies - Operational funds for human service agencies Transitional Housing Acquisition (Successful Living) Housing Inspection Services (Housing Voucher inspections) General Obligation Bond Funds New Construction (Housing Fellowship Peninsula units) Preservation of Units (Housing Fellowship in 2007 preservation of 14 units) City Staff also participate in various housing related boards and committees Housing & Community Development Commission Planning & Zoning Commission Local Homeless Coordinating Board Housing Trust Fund of Johnson County Community Foundation of Johnson County The Children's Initiative HACAP Site Council Habitat for Humanity Site Selection Committee Johnson County Coalition for Domestic Violence Fair Housing Ambassadors FAIR The Junior Service League (donated money to Shelter House, Housing Authority and Children's Initiative) 12/11/2006 I ~ 1 -=:~:::_ut... ~~<'2S;:!:~ -..;:..... _all" .......~ CITY OF IOWA CITY MEMORANDUM r;] Date: January 3, 2007 To: City Council From: City Manager Re: 2006 1. By way of the Affordable Dream Home Program two new homes were constructed in the Longfellow Court area. These homes were sold to low-income families. 2. A contract in the amount of $654,000 was awarded to REEP, Inc. of Baxter, Iowa for the renovation of the Robert A. Lee Recreation Center. This involved some repair in response to storm damage from the April tornado, as well as new windows, glazing and panels. 3. The City Council authorized two new transit routes. These were financed by the City's participation in a small cities transit grant program sponsored by the federal government. 4. Council approved a bid to L.L. Pelling Company of North Liberty, Iowa in the amount of $2,682,000 to widen and add turn lanes to Highway 6, from Lakeside Drive to near 420'h Street. The project was administered by the Iowa Department of Transportation and funded by Road Use Tax monies. 5. A contracted pavement (lane lines, etc.) parking project was awarded to All Iowa Contracting of Waterloo in the amount of $237,000. 6. The Ellis Avenue/MacLean Street/Moss Street Water Improvement Project was awarded to Yordi Excavating in the amount of $173,000. 7. The Council approved a change to the Code in order to prohibit engine braking except in emergency situations. 8. The preventative maintenance and repair project for the City parking garages was approved in the amount of $658,000 to RAM Building Restoration and Waterproofing. 9. Approximately $7.5 million in General Obligation bonds were authorized. The bond proceeds were to pay costs for construction, reconstruction, repairing and improvements to public streets as well as traffic signals and the equipping of police and fire needs. 10. The City Council authorized a $195,000 agreement with Engineering Alliance to provide the design services related to the Lower West Branch Road/Hummingbird Lane reconstruction project. 11. Through a cooperative project between the University and the City, the Council approved construction of the Grand Avenue roundabout project. The project is anticipated to begin construction in the spring of 07. 2 12. Council approved a construction project for Highway 1/U.S. Highway 218 ramp signalization in the Kitty Lee Road area. This project consisted of signalization of the Iowa Highway 1 and 218 southbound exit ramp, widening for an exit ramp, an<;l the installation of right-turn lanes. 13. The Council authorized the installation of speed humps on Morningside Drive between 7'h Avenue and College Street, following petition by the neighborhood. 14. The Council approved a contract for the construction of Mormon Trek Boulevard extension from Willow Creek to the old Highway 218. This project was awarded to the Iowa Bridge and Culvert Company in the amount of $3,535,000. 15. The New York Deli secured a lease in the ground floor commercial portion of the Iowa City Public Library. Council approved a five-year lease with renewable options for the new restaurant. 16. A contract for construction of South Gilbert/Sand Road improvements from Napoleon Lane to Sycamore Street was approved. This is a joint project with Johnson County, and the contractor was Metro Pavers of Iowa City, Iowa in the amount of $1.396 million. 17. The City Council amended the Code in order to provide for an increase in multiple vendors on the downtown plaza. The number of permits to be issued was increased from 5 to 6. 18. The City Council entered into an agreement with Rohrbach Associates to provide for design services for the demolition of the Emerald Street fire station (#2) and the design specifications for a soon to be newly constructed fire station at the existing location. 19. A lease was approved with Habitat for Humanity for approximately 9,000 square feet of building space at the Eastside Recycling Center - 2401 Scott Boulevard. Improvements to the site will be provided by Habitat as the City entered into a loan agreement with Habitat to help finance the initial cost of these improvements. 20. The City Council approved a traffic signal interconnect project for various locations throughout the city. This involves the placement of fiber optic interconnect to traffic signals in order to provide for an improved communication network among these signals. 21. The Council approved a contract with OEC, Inc. of Iowa City in the amount of $153,700 for the renovation and redevelopment of Brookland Park. The Brookland Park project involved improved accessibility, a new sidewalk, new trails, a new shelter, improvements to the creek bed, and the addition of playground equipment and pedestrian lighting. 22. The Fire Department proposed and the Council approved an amendment to the Fire Code that addresses overcrowding issues in various establishments. This is intended to provide for overall customer safety. 23. National Incident Management System (NIMS) is intended to provide a framework for state, local, and federal governments to work together to respond to any domestic hazard, whether it be a natural disaster or a terrorist incident. NIMS compliance aliows the City to be eligible for funding from Homeland Security and other related federal programs. City officials were required by examination to studylcomprehend NIMS nomenclature. 3 24. The City received bids and approved the construction of a Ridge Road Neighborhood Water Main project. This project was done in order to reconstruct an aging water line in that neighborhood. 25. The Council has entered into an agreement with H.R. Green Company for the design of the McCollister Boulevard/lowa River Bridge project. This project will provide for the design of a new bridge over the Iowa River connecting McCollister Boulevard between Riverside Drive and Giibert Street (Sand Road). 26. The City Council approved a contract in the amount of $456,200 to L.L. Pelling for our biannual asphalt overlay project. This involved numerous sites throughout our community. 27. The City Council entered into a lease agreement with "Grounds For Dessert Coffee House" at the Court Street Transportation Center. They are leasing approximately 2,400 square feet of commercial space. This is the last of the available commercial property at the Court Street Transportation Center. 28. The Council approved conveyance of 426 Bayard Street to the Franz Construction Company for renovation/reconstruction. Several years of negotiations and a formal condemnation process led to City acquisition of the property which had years of neglect. mgr/list12-27.doc /btr~~ Animal Care TF Animal Care TF Animal Care TF Animal Care TF Teresa Kopel Patricia Farrant Paula Kelly Jane McCune N/A N/A N/A N/A 6/30/09 6/30/09 6/30/09 6/30/09 11/14/06 11/14/06 11/14/06 11/14/06 New New New New N/A N/A N/A N/A Telecommunications HCDC HCDC Library Board Historic Preservation Margaret Michael Shaw Steve Crane Mary New John McCormally Weiting N/A 9/1/06 9/1/06 N/A N/A 3/13/08 9/1109 9/1/09 7/1/07 3/29/08 9/5/06 8/1/06 8/1/06 8/1/06 8/22/06 Unexpired 3-yr 3-yr Unexpired Unexpired N/A Tom Suter resigned Michael Maharry resigned James Ehrmann resigned N/A N/A N/A N/A Unexpired N/A N/A N/A HCDC Telecommunications Holly Jane Hart Nicholas Parker N/A N/A 9/1/07 3/13/07 6/13/06 7/18/06 Unexp + 3-yr Unexpired N/A N/A HCDC P&Z P&Z Historic Preservation Historic Preservation Historic Preservation Historic Preservation Youth Advisory Youth Advisory Youth Advisory Youth Advisory Youth Advisory Youth Advisory Youth Advisory Airport Commission Civil Service Historic Preservation Telecommunications Telecommunications Marcy DeFrance Ginalie Swaim Pam Michaud Tim Toomey Jacqueline Stubbers Subha Subramanian Elyse Abboud Kamps Michael Nelson Janelle Rettig Lyra Dickerson Mae Schatteman Saul Mekies John Weatherson Terry Sm ith Charlie Eastham Esther Baker N/A 3/29/06 3/29/06 3/29/06 N/A 5/1106 5/1/06 3/29/06 3/13/06 3/13/06 1/1106 1/1/06 1/1/06 1/1/06 1/1/06 1/1/06 1/1/06 3/1/06 4/3/06 12131/06 311/12 12131/07 12/31/07 1 1 911/09 4/5/10 3/29/09 3/13/09 3/13/09 5/112011 5/1/2011 3/29/09 3/29/09 3/29109 3/29/09 2/31/06 2/31/06 6/13/06 5/23/06 5/23/06 6/13/06 3/21/06 4/18/06 Unexp + 3-yr 2/28/06 2/28/06 2/28/06 3/21/06 2/1 2/1 2/13/06 2/13/06 2/13/06 2/13/06 2/28/06 2/28/06 Audrey Keranen Sara Ziegenhorn Maison Bleam 12/31/07 12/31/07 2113106 3/06 3/06 2-yrs 2-yrs 2-yrs 2-yrs 1-yr 1-yr 1-yr 6-yrs 4-yrs 3-yr 3-yr 3-yr 5-yr 5-yr 3-yr 3-yr 3-yr Unexpired N/A Unexpired N/A N/A N/A N/A N/A ill 3-yr N/A (2) 4-yr N/A N/A N/A N/A N/A N/A N/A N/A N/A Airport Commission Animal Control HCDC John Staley Lisa Drahozal Yolanda Spears N/A Term Begins 1/1/06 N/A 3/1/10 Term Ends 12131/08 911/06 2/13/06 1/23/06 1/23/06 Unexpired 3-yrs Unexpired NIA Pervious Terms Served o~'d Brd N/A N/A James Enloe Jan Weissmiller Mark McCallum Mae Schatteman resigned Yolanda Spears resigned Lori Bears resigned Michael Christians resigned Re-Appt William Greazel Tammara Meester Rita Marcus resigned Carl Williams resigned New New New New New New New John Staley Re-Appt Justin Pardekooper Re-Appt Bebe Ballantyne Re-Appt Donald Anciaux Pooley Commission Member Name Date Appointed Board & Commission Appointments 2006 Length of Term Member Replaced Page 1 Commission Member Name Term Term Date Appointed Length of Term Pervious Terms Member Replaced Beains Ends Served on Appt'd Brd HCDC Andy Douglas N/A 9/1/08 11114/06 Unexpired N/A Kelly Mellecker resigned Human Rights Joy Kross 1/1/07 1/1/10 11114/06 3-yr N/A Usa Beckman P&R John Watson 1/1/07 1/1111 11/14/06 4-yr Unexpired Re-Appt Public Art Mark Seabold 1/1/07 1/1/10 11114/06 3-yr Unexp + 3-yr Re-Appt Senior Center Nancy Wombacher 1/1/07 12131/09 11/14/06 3-yr (1) 3-yr Re-Appt Youth Advisory Un Weeks 1/1/07 12/31/08 11/28/06 2-yr N/A Subha Subramanian Youth Advisory David Segar 1/1/07 12131/08 11/28/06 2-yr N/A Elyse Kamps Youth Advisory Michael Nelson 1/1/07 12/31/08 11/28/06 2-yr (1) 1-yr Re-Appt Brd of Adjustment Edgar Thornton III 1/1/07 1/1112 12/12/06 5-yr N/A Karen Leigh Human Rights Sherry Hunter 1/1/07 1/1/10 12112/06 3-yr N/A Paul Retish Human Rights Eric Berger 1/1/07 1/1/10 12112/06 3-yr N/A Geoff Wilming P&R Craig Gustaveson 1/1/07 1/1/11 12112/06 4-yr (2)4-yr Re-Appt P&R David Bourgeois 1/1/07 1/1/11 12112/06 4-yr N/A Judith Klink Board & Commission Appointments 2006 Page 2 COUNCIL ACTIONS IN CALENDAR YEAR 2006 PLANNING & COMMUNITY DEVELOPMENT COMPREHENSIVE PLAN . Amended the Near Souths ide Design Plan to allow for consideration of CB-10 zoning south of Burlington Street. ANNEXATIONS . .35 acres of the Camp Cardinal right-of-way in the Camp Cardinal Subdivision REZONINGS . Galway Hills PI. 4; RS-5 to OSA/RS-5; 10.41 acres . 3405 Rochester Ave. (Olde Towne Village); RS-5 to CC-2 . Elk Run; ID-RS to OPD-5; 9.72 acres . Dubuque Rd. and North Dodge Street; RS-5 to OPD-5; 1 acre . 1803/1835 Boyrum Street; CI-1 to CC-2; 1.80 acres . East of S. Riverside Drive; 1-1 to 1-2; 11.36 acres . All properties associated with the City of Iowa City and the Iowa City Public School District to Neighborhood Public (P-1) and the Iowa National Guard to Institutional Public (P-2). . 1820 Boyrum Street; CI-1 to CC-2; 1.39 acres . S, Gilbert Street (south of Waterfront Dr. and north of Southgate Ave.); CI- 1 to CC-2; 10.38 acres . Lower West Branch Road (west of Taft Ave.); ID-RS to RS-5; 20.79 acres . 2401 Scott Boulevard; 1-1 to P-1/CI-1; 2.32 acres . 4435/4455 Melrose Avenue; P-1 to P-1/RM-12; 2.83 acres . Property adjacent to the southside of Lake Ridge manufactured home park and west of Riverside Drive; County R to County RMH; .58 acres . 314 and 328 S. Clinton Street; CB-5 to CB-10; 1.12 acres . East of Gilbert Street and west of Sandusky Drive; ID-RS/OHD to RS-5/0HD; 9.53 acres . South of Lower West Branch Road, north of Court Street, and west of Huntington Drive; RS-5 to OPD-5; 49.05 acres . North and south of Stevens Drive between S. Gilbert and Waterfront Drive (excludes 1423 Waterfront Dr. and 260 Stevens Dr.); CI-1 to CC-2; 7.61 acres PLATS . Village Green PI. 23--final plat; 19.32 acres; 38 resid. lots . Village Green pt. 24--final plat; 6.36 acres; 38 resid. lots . Lacy's Run--prelim. plat; 17.94 acres; 2 SF lots . Kennedy's Waterfront Addtn. pt. 4--4.91 acre; 5 commercial lots . Galway Hills PI. 4--prelim. plat; 10.41 acres; 24 resdi. lots . Windsor West PI. 1--final plat; 26.04 acres; 37 resid. lots 1 . Silvercrest pt. 3--prelim. plat; 12.17 acres; 116 resid. units . Schnoebelen Sub.--prelim. and final plat; 2.61 acres; 4 resid. lots . Cardinal Ridge pt. 3--final plat; 27.89 acres; 19 resid. lots . Hollywood Manor pt. 9--prelim. plat; 4.84 acres; 12 resid. lots . Parrott Estates--final plat; 17.94 acres; 2 resid. lots . Hollywood Manor pt. 9--final plat; 4.84 acres; 12 resid. lots . Stone Bridge Estates Parts 5-9--prelim. plat; 49.05 acres; 139 resid lots . Windsor Ridge 20B--final plat; 2.7 acres; 2 resid. lots . Aviation Commerce Park North--final plat; 57.13 acres; 11 commercial lots V ACA TIONS . Alley North of Benton Street between Clinton Street and Dubuque Street. . Portion of the old West Benton Street right-of-way located north of the current West Benton Street and east of South Riverside Drive. . Dane Road (south of Highway 1) . East/West alley in Block 102 (allow for the development of Hieronymus Square) . Portion of Ruppert Road within Aviation Commerce Park North. ACQUISITIONS/CONVEYANCES · Conveyed the alley in Block 27 lying between S. Clinton and S. Dubuque Streets to the north of Benton Street. . Conveyed an easement alone Dane Road to Qwest Corp. for utility lines. · Conveyed former Benton Street right-of-way adjacent between Riverside Drive and the Iowa River to Professional Muffler. APPOINTMENTS: . Yolanda Spears - HCDC . Mae Schatteman - HPC . Charles Eastham - P&Z . Ester Baker - HPC . Ginalie Swain - HPC . Pam Michaud - HPC . Tim Toomey - HPC . Marcy DeFrance - HCDC . Holly Jane Hart - HCDC . Steve Crane - HCDC . John McCormally - HPC . Andy Douglas - HCDC . Edgar Thornton III - BOA PUBLIC ART: · Approved selection of Mark LaMair's Birds in Flight for installation in the Sycamore Green Trail area. 2 . Approved Call to Artists for a sculpture or sculptures to be placed in the Grand Avenue roundabout. . Seth Godard's Love is Strange was acquired by the Iowa City Public Art program for $3000.00. ECONOMIC DEVELOPMENT . Supported Proctor & Gamble CEBA application for building expansion and retention of 80 high quality jobs with $70,000 local match . Approved an amendment providing a reduction in the award to United Natural Foods, Inc. commensurate with the number of jobs created. . Approved the reinstitution of the position and local funding for a full-time economic development position. . Approved a 7-year TIF rebate for a $6 million project in the Northgate Corporate Park. . Authorized the CEBA application to the State of Iowa on behalf of the National Genecular Institute Inc. CODE AMENDMENTS . Amended a conditional zoning agreement to remove the requirement for a 30 foot landscape setback at 809-817 Highway 1 West. . Amended the zoning ordinance by amending the Planned Development Housing Plan for Silvercrest pt. 3; allowed for a building height limit of up to 47-feet for underground parking. . Approved an amendment to provide clarification of specific terms used within the Zoning Code and add provisions to provide flexibility for sites with difficult topography or other unique circumstances. . Amended Title 14 of the Zoning Code to allow for the reconstruction of nonconforming signs damaged or destroyed by fire or natural disaster by special exception. . Amended Title 14 of the Zoning Code to clarify specific language correct small errors, and modify specific provisions that have not been working as intended. OTHER . Approved a conditional use permit to S & G materials to conduct sand- mining operations in a 17-acre area located west of the Iowa River and East of Oak Crest Hill Road. . Approved a conditional use permit to operate a home business on 3.3 acres located at 4396 Taft Avenue. . Amended the Iowa City/Johnson County Fringe Area Policy Agreement . Approved an amendment to the subdividor's agreement for Saddle brook Addition Pt. 2 . Approved TIF property tax rebates for the Hieronymus Square Project. . Authorized the installation of speed humps on Morningside Drive between ih Street and College Street. 3 r;::] BOARD OF SUPERVISORS at Harney, Chairperson 1: Meyers Terr ce Neuzil Sally S sman Rod Sulliv JOIN MEETING WITH CITY COUNC MEMBERS OF IOWA: ITY, CORALVILLE, AND N RTH LIBERTY, IOWA TY SCHOOL BOARD OF IRECTORS AND JOHNS COUNTY BOARD 0 SUPERVISORS a) 15 in 5 rogram-(Johnson County) b) Joint ommunications Center (Johnson County) c) Ea Central Iowa Council of Governments Regiona Land Use Inventory hnson County and Doug Elliott, East Centra Iowa Council of Governments) Alcohol Task Force (Johnson County) Joint legislative meeting update (Johnson County) Follow-up Housing Summit (Andy Johnson, Executive Director, Housing Trust Fund of Johnson County) g) School Levy Presentation (City ofIowa City) 1. Call to order 4:00 p . 2. DiscussionJupd e ofthe following: 913 SOUTH DUBUQUE STREET, SUITE 201 . IOWA CITY, IOWA 52240-4207 . PHONE: (319) 356-6000 . FAX: (319)356-6036 1-10-07 Page 2 (continuation of business) h) Indusio ary Zoning/Housing (City ofIowa City) i) Future of' oint meetings/scheduling (City ofIowa City) j) SILO upda (Iowa City Community School District) k) City High S dent Government Position on Court Str et and 4th Avenue (Iowa City Co unity School District) 1) Date and time 0 ext meeting m) Other 3. Inquires from the public 4. Adjournment BOARD OF SUPERVISORS Pat Harney, Chairperson Larry Meyers Terrence Neuzil Sally Stutsman Rod Sullivan JOINT MEETING WITH CITY COUNCIL MEMBERS OF IOWA CITY, CORALVILLE, AND NORTH LIBERTY, IOWA CITY SCHOOL BOARD OF DIRECTORS AND JOHNSON COUNTY BOARD OF SUPERVISORS Wednesday, January 10, 2007 Iowa City Public Library 123 South Linn Street, Room A Iowa City, Iowa 52240 Agenda INFORMAL MEETING 1. Call to order 4:00 p.m. 2. Discussion/update of the following: a) 15 in 5 program (Johnson County) b) Joint Communications Center (Johnson County) c) East Central Iowa Council of Governments Regional Land Use Inventory (Johnson County and Doug Elliott, East Central Iowa Council of Governments) d) Alcohol Task Force (Johnson County) e) Joint legislative meeting update (Johnson County) f) Follow-up Housing Summit (Andy Johnson, Executive Director, Housing Trust Fund of Johnson County) g) Inc1usionary Zoning/Housing (City ofIowa City) 913 SOUTH DUBUQUE STREET, SUITE 201 . IOWA CITY, IOWA 52240.4207 . PHONE: (319) 356.6000 . FAX: (319) 356.6036 1-10-07 Page 2 (continuation of business) h) School Levy Presentation (City ofIowa City) i) Future of joint meetings/scheduling (City ofIowa City) j) SILO update (Iowa City Community School District) k) City High Student Government position on Court Street and 4th Avenue (Iowa City Community School District) I) Date and time of next meeting m) Other 3. Inquires from the public 4. Adjournment G:J Marian Karr From: TheShoeDoctor1@aol.com Sent: Wednesday, December 27,20069:27 AM To: Chris O'Brien Cc: 'City Council; Steve Atkins Subject: merchant parking problem Good morning Chris, I am sure you get about a million notes like this, but I was hoping that once again you could help us out. In May I wrote you concerning a metered parking problem we were having concerning our customers. After moving to our new location due to the tornado, many of them were use to just popping in and out of our store without the penalty of a parking ticket. At that time you addressed the problem by allowing warning tickets to be issued for a short time until our customers adjusted. This did curb much of the problem although I still find myself paying for many of my customers parking tickets. I can't bring myself to make my customers pay a $5.00 parking fine for a $4.00 repair job. But the problem now is a little more personal and I am not sure if there is a solution. I drive each day for over an hour to get to my place of business. Obviously, it would be much more convenient if we relocated to a place closer to home, but our store is located in Iowa City due to its central location. We draw customers from the surrounding counties because shoe and leather repair is becoming a lost art and many are willing to travel a small distance for our services. Many times I find customers waiting at the door for service. The problem: far too often I will rush to open the store to allow our customers access. As for example, this morning I arrived at 8:07am. We had customers waiting. I opened the store, waited on two customers and went to move my car. And guess what- a parking ticket at 8: 16. I know your people are just doing their job-however, I thought that since they should know my car by now (have talked to and waved to them many times) they could cut a merchant some slack. It would be different if it was a one time event -- but this has happened far too often. One Saturday morning I arrived late due to traffic. Rushed in to wait on customers and received a ticket. Okay so I got a ticket -- I figured as I had one ticket already- I could at least get some of my work started before I had to move my car. To my surprise when I went out an hour later to move it-- I had a second ticket. I don't believe I have ever seen anyone with two parking tickets let alone two in one hour. I know that with all the new high rises and much of the parking lost to the tornado -- downtown parking is at a premium. The new parking ramps don't help us as we are two blocks from the ciosest ramp. So parking for my customers and myself is an issue with us concerning whether we stay here or relocate. I was just wondering if there is any type of permit or temporary tag that is issued that would allow the merchants here to at least have time to open their stores and unload any merchandise from their vehicles without fear of getting a parking ticket before we could move them elsewhere? Any help would be greatly appreciated. And once again, thanks for listening. Sincerely, Nick Nassif jr. owner of "THE SHOE DOCTOR". 624 SOUTH DUBUQUE. 12/27/2006 December 14, 2006 ~m ~ Leaf Removal Program City of Iowa City 410 E Washington Street. Iowa City IA 52245 Attn: Supervisor Dear Sir: ./ '0 L~U' I would like to extend my appreciation to your leaf crew who worked in my area this year. I always have a lot of leaves to be picked up and very much appreciate their hard work, neatness and promptness with the schedule this year. I would also like to tell you how very much I appreciate that last pick up after the schedule is completed. I have a lot of oak trees and red king maples that come down late and it is so nice to get rid of those leaves after the regular pick up is done. Please let your crew know what a fine job they have done this year and in past years. I hope that the City will continue this program in the future. Sincerely, J~~~. Sharon Kay shapcoy Il05 Spruce St. Iowa City IA 52240 r;] Marian Karr ~ From: Sent: To: Cc: Subject: Baxter, Donald A [donald-baxter@uiowa.edu] Thursday, December 14, 2006 3:24 PM Sam Hargadine 'City Council; president@uiowa.edu Speeding on Madison Street Dear Chief Hargadine, I'm an employee of the University of Iowa Libraries. I am a pedestrian and bicycle commuter to my job here and I can't help but notice the high percentage of drivers who willfully violate the 25mph speed limit on Madison street. As you know this is a street with a large number of pedestrians and cyclists and it serves as one of the main streets of the University of Iowa campus. While 25 mph is too fast for a street with such shared uses--speeds above 25mph certainly put pedestrians and cyclists at significant risk of injury. Most of the crosswalks are not signal protected on this street (and one set of crosswalks isn't protected by any more than a sign and some faded crosswalk paint). The stop signs on the street seem to mean to many drivers "slow to 10 mph"--also a significant hazard to pedestrians. I do not see traffic enforcement on this street--and I work 9 hours a day looking out at it and I use it on my commute. Please consider some traffic enforcement efforts on this street. I'd consider appealing to the University of Iowa police, but they seem not so interested in traffic control and enforcement (in six years I've seen only two incidents where UI police had a driver pulled over for a traffic infraction). Chuck Green has told me, in fact, that he interprets Iowa law requiring drivers to yield to pedestrians at unsignalized crosswalks to be at the option of the driver. Will we have to have an accident or an injury on Madison Street because a UI student on a cellphone thinks that 40mph is an appropriate speed for a campus street? Sincerely, Donald Baxter Donald Baxter Claims and Acquisitions Public Service Associate University Libraries University of Iowa 100 Main Library Iowa City, Iowa 52242-1420 (319) 335-6295 (319) 335-5691 (facsimile) "If two people know the same things, one of you is unnecessary." --Tom Waits 1 / / "uP I U,1~ . G~ I~..... lv~ \ ....."..;..: " BUILDING PERMIT INFORMATION December 2006 KEY FOR ABBREVIATIONS -{,A00 &>>J ,i SOD v{J 1,~, . 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 RAe - Residential Accessory Building MIX - Mixed NON - Non-residential OTH - Other Page: Date: To: From: 2 112 /2007 1211 12006 12/3112006 City ofIowa City Extraction of Building Permit Data for Census Bureau Report Permit Number Name Address ~ fmOT ~ Use Stories Units Valuation BLD06-00877 PROFESSIONAL MUFFLER 606 S RIVERSIDE DR ADDITION TO SHOP FOR COMPRESSOR ADD NON $1,500 Total ADDINON permits: 1 Total Valuation: $1,500 BLD06-00544 THOMAS ALLAN MClNERNI 1208 MARCY ST ADD RSF 2 SFD WITH ATTACHED 2 CAR GARAGE AND BED & BREAKFAST HOMEST A Y BLD06-00923 JOHN BROOKS t 845 KA THLIN DR ADD RSF 3 SEASON PORCH ADDITION FOR SFD BLD06-00937 BACHMANN. BRIAN A 1 t 3 t FRANKLIN ST ADD RSF 3 3 SEASON PORCH ADDITION FOR SFD BLD06-00873 STEVE FEDERSPIEL 830 FAIRCHILD ST ADD RSF 3 ADDITION AND REMODEL OF SFD BLD06-00957 FRED & MARY CHENEY 3022 PINECREST RD ADD RSF 0 3 SEASON PORCH ADDITION FOR SFD B LD06-0091 0 EDWARD M & JEAN M ALLC 3122 ALPINE CT ADD RSF 2 4 SEASON ROOM ADDITION FOR SFD BLD06-00760 JOHN CAMERON 742 PERRY CT ADD RSF 2 3 SEASON PORCH AND DECK ADDITION FOR SFD BLD06-00964 CARL R STIEGLITZ 8 I I FLORENCE ST ADD RSF 2 ADD 3 SEASON PORCH ON EXISTING DECK Total AD DIRS F permits: 8 Total Valuation: $33,44 I $33,441 $235,000 $28,375 $27,000 2 $26,000 0 $20,000 $15,000 $14,650 $12,500 $378,525 2 $50,000 $45,000 $26,000 $12,600 $t2,OOO $tO,OOO $1,000 $156,600 BLD06-0081I MARK HOLTKAMP 702 GREENWOOD DR ADDITION AND AL TERA TlON OF SFD TO RDF ADD RDF 2 Total AD DIRD F permits: I Total Valuation: BLD06-00842 CITY OF IOWA CITY 410 E WASHINGTON ST ALT NON 3 REMODEL HOUSING & INSPECTION SERVICES ON NE LOWER LEVEL BLD06-00887 JOHN AL TOFT 6 t 0 EASTBURY DR AL T NON TENANT FINISH FOR HAIR SALON BLD06-00884 STPATRICKSCH 435SLINNST ALT NON A WNtNG OVER STAIRS BLD06-00960 NREPLLC 3030 NORTHGATEDR ALT NON 2 TENANT FINtSH--PET GROOMING BLD06-00939 HARRIETWOODFORD&MI 301 KIRKWOOD AVE ALT NON AL TERA TlON AND CHANGE OF USE FROM CARRY OUT TO EAT IN RESTAURANT BLD06-00935 ED SOBASKI 101 ESCORT LN ALT NON OFFICE AND BREAK ROOM IN EXISTING BUILDING BLD06-00933 NEW PIONEER COOP SOCIE' 22 S V AN BUREN ST AL T NON BUILD SHORT WALL BY CHECK-OUT Total ALTINON perm!": 7 Total Valuatiou : Page: 3 City ofIowa City Date: 1/2/2007 Extraction of Building Permit Data for To: 12/1 /2006 Census Bureau Report From: t2/3 t/2006 ~ ~ Permit Number Name Address Imor Use Stories Units Valuation BLD06-00836 FRANTZ CONSTRUCTION 0 724 N DUBUQUE ST ALT RMF 3 2 $52t,196 ALTER FRATERNITY INTO 3 DWELLING UNITS BLD06-00928 SIGMA MU 630 N DUBUQUE ST ALT RMF $25,000 LAUNDRY/BATH REMODEL FOR FRATERNITY BLD06-00885 FRANTZ CONSTRUCTION 0 t637 CLIFFORD LN ALT RMF $17,222 BASEMENT FINISH FOR RMF UNIT OPD-5 ZONE BLD06-00936 ROFFMAN, MARK J 516 E COLLEGE ST ALT RMF 3 $6,200 REMODEL APARTMENT #6 INTERIOR BLD06-0092 t FRED KRAUSE 37 TREVOSE PL ALT RMF $1,600 CHANGE DOOR FOR RMF UNIT OPD-8 ZONE Total AL T/RMF permits: 5 Total Valuation: $571,218 BLD06-009t4 KAREN HUFNAGEL 630 BELDON AVE ALT RSF $tOO,OOO REMODEL SFD BLD06-00899 BRAD M & JENNIFER ANNE 15t8 BRISTOL DR ALT RSF 2 $22,000 BASEMENT FINISH FOR SFD BLD06-00929 GARY & NANCY FISCHER 1207 OAKES DR ALT RSF $t9,000 CONVERT SCREEN PORCH TO HABITABLE SPACE BLD06-00932 PET AR & GORDANA LENER 48 KEARNEY CT ALT RSF $13,000 BASEMENT FINISH FOR SFD BLD06-00916 KIM CAPDEVILA 252t NEVADA AVE ALT RSF $5,000 BASEMENT BA THROOM FOR SFD BLD06-00952 LAURIE MCCOY 25 PHOENIX PL ALT RSF $4,950 BASEMENT BATHROOM BLD06-00625 JIM THIBODEAU 1010 S 1ST AVE ALT RSF 2 $t,800 t/2BATHFORSFD Total AL TIRSF permits: 7 Total Valuatiou : $165,750 BLD06-00839 STREB, A F 2802 INDEPENDENCE RD FND NON 3 2 $63,000 FOUNDA TION FOR WAREHOUSE ADDITION BLD06-00894 OTV, LLC 503 WESTBURY RD FND NON $52,987 FOUNDATION FOR 10,712 SQ. FT. COMMERCtAL BUILDING BLD06-00895 OTV. LLC 521 WESTBURY RD FND NON $39,570 FOUNDATION FOR 7,916 SQ. FT. COMMERCIAL BUILDING BLD06-00930 WILLOWWIND SCHOOL 950 DOVER ST FND NON $12,500 FOUNDA TION FOR BUILDING ADDITION Total FNDINON permilli: 4 Total Valuation: $168,057 BLD06-00917 LUCA SAWADA 1685 RIDGE RD NEW OTH $7,500 8' HIGH RETAINING WALL FOR SFD Total NEW/OTH permits: 1 Total Valuatiou : $7,500 Page: 4 City ofIowa City Date: 1/2/2007 Extraction of Building Permit Data for To: 12/1 /2006 Census Bureau Report From: 12/31/2006 ~ ~ Permit Number Name Address Imor Use Stories Units Valuation BLD06-00840 ELK RUN DEVELOPERS LC 910 W FOSTER RD NEW RAC 2 $40,000 DETACHED GARAGES FOR MUL TI-F AMIL Y APARTMENT BUILDING OPD-5 ZONE Total NEW/RAe permits: 1 Total Valuation: $40,000 BLD06-00926 REMPEL CONSTRUCTION 953 MEADOWLARK DR NEW RSF $400,000 SFD WtTH ATTACHED 3 CAR GARAGE OPD-5 ZONE BLD06-00950 JEFF MILLER CONSTRUCTI( 737 KENNEDY PARKWAY NEW RSF $320,000 SFD WITH ATTACHED 2 CAR GARAGE OPD-5 ZONE BLD06-00912 ARLINGTON DEV INC 4174 KILBURNE CT NEW RSF $282,600 SFD WITH ATTACHED 3 CAR GARAGE BLD06-00897 ARLINGTON DEV INC 4142 KILBURNE CT NEW RSF 2 $277,962 SFD WtTH ATTACHED 3 CAR GARAGE BLD06-00920 GARY FRAKES 854 WALKER CIR NEW RSF $275.000 SFD WITH ATTACHED 2 CAR GARAGE OPD-5 ZONE BLD06-0094I KEVIN KIDWELL 41 TEMPE CT NEW RSF 2 $270,000 SFD WtTH ATTACHED 2 CAR GARAGE BLD06-00958 BELKNAP CONSTRUCTION 1158 LAKE SHORE DR NEW RSF $225,000 SFD WITH ATTACHED 3 CAR GARAGE BLD06-00955 SOUTHGATE DEVELOPMEN 66 KENNETH DR NEW RSF 2 $2tO,OOO SFD WITH ATTACHED 3 CAR GARAGE OPD-8 ZONE BLD06-00756 FRANTZ BUILDERS INC 3620 DONEGAL CT NEW RSF 2 $200,000 SFD WITH ATTACHED 3 CAR GARAGE BLD06-00962 SOUTHGATE DEVELOPMEN t8 KENNETH DR NEW RSF 2 $192,750 SFD WITH ATTACHED 2 CAR GARAGE OPD-5 ZONE BLD06-00874 SOUTHGATE DEVELOP MEN 4033 GUSTAV ST NEW RSF 2 $t91,200 SFD WITH ATTACHED 2 CAR GARAGE OPD8Z0NE BLD06-00905 STEVE KOHLI CONSTRUCTI 1649 TERRAPIN NEW RSF 2 $t68,958 SFD WITH ATTACHED 2 CAR GARAGE BLD06-00906 STEVE KOHLI CONSTRUCTI 1659 TERRAPIN NEW RSF 2 $141,887 SFD WITH ATTACHED 2 CAR GARAGE Total NEW/RSF permits: 13 Total Valuation: $3,155,357 BLD06-00922 REGINA HIGH SCH 2 I 50 ROCHESTER AVE REP NON $145,624 REROOF EDUCATIONAL CENTER BLD06-0093 I GODFATHER'S PIZZA 531 HIGHWAY I REP NON $18,097 REROOF RESTAURANT Total REP/NON permits: 2 Total Valuatioo : $163,721 BLD06-00919 APARTMENTS DOWNTOWN 3t9 -2t CHURCH ST REP RMF 2 $70,000 Page: 5 Date: 112/2007 To: 12/112006 From: 12/31/2006 City ofIowa City Extraction of Building Permit Data for Census Bureau Report Permit Number fu..!; Imor fu..!; Use Name Address FtRE REPAIR FOR RMF UNITS RNC-12 ZONE B LD06-00946 CONDO ASSOCIA nON 400 WESTSIDE DR REP RMF REROOF RMF UNITS 400-434 AND 450-484 WEST SIDE DR B LD06-0091 8 633 PARTNERS 922 E WASHtNGTON ST REP RMF PORCH REPAIR FOR RMF B LD06-00915 BEN RITTGERS & BRYAN CI 17 S GOVERNOR ST REP RMF RESHINGLE AND REPLACE WINDOWS BLD06-00432 ALPHA PHI 906 E COLLEGE ST REP RMF WtNDOW REPLACEMENT FOR SORORITY BUILDING BLD06-00284 JIM BUXTON 115 S GOVERNOR ST REP RMF REROOF RMF BLD06-0056 t IC RENTALS LC 529tOWAAVE REP RMF FOUNDATION REPAIR FOR RMF BLD06-00948 SWEETING. ARTHUR K 4t2 N LINN ST REP RMF ROOF REPAIR FOR RMF RNC-12 ZONE Stories Units Valuation 2 $40,000 $7,000 $6,000 2 $5,025 2 $3,000 2 $900 2 $800 Total REPIRMF permits: 8 $132,725 Total Valuation: GRAND TOTALS: 58 $4,974,394 PERMITS: VALUATION: J][] Marian Karr From: Gina Peters [gina.peters@ecicog.org] Sent: Thursday, December 28,20063:30 PM To: Brian Fagan; Allen Witt; Beth Freeman; Chuck Peters; Doug; Gary Grant; Hills; James Houser; Joan Benson; Joe Raso; Joshua Schamberger; Kent Ralston; Lee Clancey; Linda Langston; Lu Barron; Mary Day; Mayor Betty Svoboda; Mayor Dale Stanek; Mayor David Franker; Mayor Don Gray; Mayor Eldon Slaughter; Mayor Glen Potter; Mayor Jim Fausett; Mayor Joel Miller; Mayor John Harris; Mayor John Nieland; Mayor Kay Halloran; Mayor Louise From; Mayor Mike Williams: Mayor Patrick Murphy; Mayor Paul Tuerler; Mayor Robert Kurt; Ross Wilburn; Mayor Rozena McVey; Mayor Thomas C. Patterson; Mayor William Cooper; Mayor William Voss; Michael Lehman; Monica Vernon; Nancy Quellhorst; Pat Harney; Paula Freeman-Brown; Priority One; Rod Sullivan; Sally Stutsman; Scott Grabe; Terrence Neuzil; Tim Boyle Cc: Adam Lindenlaub; Administrator Brian Jam'es; Becky Shoop; C Clerk Tracey Mulcahey; Casie Kadlec; Chad; Christine Taliga; Marian Karr; City Clerk Nancy Beuter; City Clerk Susie Siddell; City Clerk Tawnia Kakacek; Executive Assistant Mike Sullivan; Steve Atkins; Jane Tompkins; Janelle Rettig; Jeff Davidson; jeff schott; John Yapp; Kelly Hayworth; Mike Goldberg; Sandie Deahl Subject: Next Leadership Group Meeting: January 25, 2007 Attachments: January 25 Agenda.doc The next meeting of the Johnson/Linn County Public Leadership Group will be Thursday, January 25, 2007, at 4:30 p.m., at the South Slope facilities in North Liberty. An agenda is attached. For directions to South Slope, consult the website at www.southslooe.com. See you in 2007! Douglas D. Elliott Executive Director East Central Iowa Council of Governments 700 16th Street NE, Suite 301 Cedar Rapids, Iowa 52402 319.365.9941 319.365.9981 (fax) www.ec!gQg,Qrg 12/28/2006 Agenda Johnson/Linn County Public Leadership Group South Slope 980 North Front Street North Liberty, Iowa Thursday, January 25, 2007 4:30 p.m. INFORMAL MEETING Work Session 1. Call to order - 4:30 p.m. 2. Welcome and Introductions Lu Barron, Incoming Chairperson - Linn County Board of Supervisors Pat Harney, Incoming Chairperson - Johnson County Board of Supervisors 3. Update on Trail Link Pat Harney 4. Regional Land Use Project Presentation Mary Rump, ECICOG Chad Sands, ECICOG 5. Discussion of Legislative Priorities Iowa State Association of Counties Iowa League of Cities Technology Corridor Business Alliance **Set Corridor Legislative Day** 6. Initiative Allen Witt & Chuck Peters, Co-Chairs Cedar Rapids Area Chamber of Commerce Task Force 7. Meeting Schedule and Future Agenda Items 8. Adjournment '1- ~';f -H" ] ~ ~ I ....,.,r , ~_ \7{~t'-""'..r :II .,,,, 1lI.J,: \:~ ~ [ , ~ ~Jl ..... - 'I .I~... ~ 1.1 : ~I ~":-.... o-.J ... ~ ,"' ~'I r);-~ ~ \~ I ~ ~ 't ~'7 t"'" 10.1 r .. :TI'I'J'i'/: ~. '" ~f~ ~"...1{:: I ~\~.. ~ , ~ ..~. ,\- - ~ L I, .t .~.. . -t..... , ~ ~..~ ,~~ L"~ I .... .,. ., I L... . """,/ /I.f j "lI i.I . ....... I ~~ ~ ":" ~ '*'- :" (,.,~ ( !'t ;i ;, y . .1,' If :' I / //~ I ~\ Ci~~~ark Centennial: 1906-2006 1 ) I J .,......" .. I l ~ I ' ~"' J ........!..:; ..... A Iii -, -~ ~ Ic.-., .: · ,~~~ ~ ~ ". ~ ~ '\ , ~'\ ., CITY OF IOWA CITY, IOWA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2006 PREPARED BY: DEPARTMENT OF FINANCE CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2006 Page INTRODUCTORY SECTION Table of contents...................................................................................................................... .......... 1 Letter of transmittal................................................................................................................... . . . . . . . . . 3 Ci ty organizational chart.................................................................................................................... 10 Ci ty 0 ffi ci als. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Certificate of Achievement for Excellence in Financial Reporting................................................... 12 FINANCIAL SECTION IND EPEND ENT A UD ITO R' S REPORT ......................................................................................... 13 MANAGEMENT'S DISCUSSION AND ANALYSIS .................................................................... 15 BASIC FINANCIAL STATEMENTS Government-wide financial statements S tatemen t of net as sets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 26 Statement of 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 70 Budgetary comparison schedule - budget to GAAP reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 72 Note to required supplementary information - budgetary reporting................................... 73 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet - nonmaj or governmental funds............................................................ 76 Combining statement of revenues, expenditures, and changes in fund balances - nonmajor governmental funds...................................................................................................................... 77 Combining statement of net assets - nonmaj or enterprise funds.................................................... 80 Combining statement of revenues, expenses, and changes in fund net assets - nonmajor en te rpri s e funds........................................................................................................................ . . . . 81 Combining statement of cash flows - nonmajor enterprise funds .................................................. 82 Combining statement of net assets - internal service funds........................................................... 84 Combining statement of revenues, expenses, and changes in fund net assets - internal service funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Combining statement of cash flows - internal service funds.......................................................... 86 Combining statement of changes in assets and liabilities - agency funds ...................................... 88 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2006 Page STATISTICAL SECTION (UNAUDITED) Net assets by component.................................................................................................................... 93 Changes in net assets........................................................................................................................ .. 94 Fund balances - governmental funds................................................................................................. 96 Changes in fund balances - governmental funds............................................................................... 97 General government tax revenues by source...................................................................................... 98 Assessed and taxable value of property.............................................................................................. 99 Property tax rates - direct and overlapping governments.................................................................. 100 Property tax budgets and collections.................................................................................................. 101 Principal taxpayers..................................................................................................................... ........ 102 Ratios of outstanding debt by type..................................................................................................... 103 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita............. 104 Ratio of annual debt service expenditures for general bonded debt to total general governmental ex pendi ture s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 05 Computation of direct and overlapping debt...................................................................................... 106 Legal debt margin information........................................................................................................... 107 General obligation debt annual maturity schedule............................................................................. 108 Schedule of revenue bond coverage................................................................................................... 109 Revenue debt annual maturity schedule............................................................................................. 110 Demo graphic and economic statistics................................................................................................ 111 Pri n c i pal em ploy e r s ............................................................................................................................ 112 Full-time equivalent city government employees by function ........................................................... 114 Operating indicators by function........................................................................................................ 116 Capital as sets by function................................................................................................................... 118 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.. 121 Report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133 ................................................ 123 Schedule of expenditures of federal awards....................................................................................... 125 Notes to the schedule of expenditures of federal awards................................................................... 128 Schedule of findings and questioned costs......................................................................................... 129 2 November 28,2006 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2006 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. To facilitate an understanding of the City's financial affairs, this report is organized into four sections: introductory, financial, statistical, and compliance. The introductory section contains the table of contents, listing of City officials, an organizational chart and this letter of transmittal. The financial section contains the independent auditors' report, management's discussion and analysis, the basic financial statements, required supplementary information, and other supplementary information. The statistical section contains comprehensive statistical data that is intended to provide a broader and more complete understanding of the financial and economic trends of the City. 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 and Local Governments. Information related to this 3 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. The City of Iowa City's financial statements have been audited by Eide Bailly, LLP of Dubuque, Iowa, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the City's financial statements for the fiscal year ended, June 30, 2006 are free of material misstatement. The independent audit involved 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, 2006, are fairly presented in conformity with GAAP. 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 537 full-time and 88 permanent part-time municipal employees and 492 temporary employees including a police force of 70 sworn personnel and a fire department of 55 firefighters. 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. 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 4 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 23,900 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, will continue to help 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, Proctor & Gamble, and 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 improvements in the 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 Johnson County continues to remain low at between 2.3% and 2.9%. The City has consistently experienced modest increases in assessed property valuations. New housing construction continues to be relatively strong with 160 new single-family houses and 203 multi-family units added to the tax rolls for the year ended December 31,2005. This, along with the low unemployment rate, continues to be indicative of the City's economic well being. The 2000 census population of Iowa City was 62,220. After further review by the United Census Bureau, the population was revised to 62,380 in 2002. This represents a 4.42% increase over the 1990 population of 59,738. In preparing the financial plan for the three years ending June 30, 2009, the process of budget balancing has again been most difficult. With the continued tax limitations imposed by the state (specifically the residential rollback factor) and other federal and state regulations and mandates, 5 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, joint operation of 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. 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 have continued to thrive. The City will be challenged during the next couple of years to maintain its vitality through greater economic development efforts, fiscal restraint in local government, and continued cooperation among local government officials. We are confident that the City is positioning itself to better meet the needs of the community in the future through more effective long-term financial planning, and increased financial strength and stability of the City. The City Council and its staff are committed to managing the City's destiny well into the future. Major Initiatives The City continues to be proactive in maintaining and building its streets, bridges, storm water mains, and trail systems and spent approximately $10.7 million in fiscal year 2006 on various projects. The major projects were the widening of US Highway 6 from Lakeside Drive to the eastern city limits, including traffic controls; construction of Camp Cardinal Boulevard, an arterial street connecting western Iowa City to Coralville; widening State Highway l(North Dodge Street) to Interstate 80; and renovation of the Iowa River Dam and Pedestrian Bridge. Construction continued on Phase 1 of the Mormon Trek Boulevard Extension, a three phase project to construct a southern arterial linking western and eastern sides of the City. Phase 1 began in FY02 with design costs, continued with land acquisition in FY03 and construction work concluding in FY06. Cost of Phase 1 was $3.7 million. Phase 2 of the Mormon Trek Boulevard Extension is 6 construction of a box culvert and the closing of an airport runway. Estimated cost of Phase 2 will be $3.6 million. Phase 3 will be the construction of McCollister Road and a bridge spanning the Iowa River. Estimated costs of Phase 3 are $7 million. When all phases are completed, the roadway will serve a combination of through and local traffic needs. Estimated costs for the entire project total $14.3 million with $6 million in federal funding. The Iowa City Housing Authority provides rental assistance for 1100 units, with an annual contribution contract with the Federal Government of $6.4 million. Community Development Block Grant and HOME Community Development Block Grant and Home Investment Partnership funds totaling approximately $2.039 million were utilized for economic development, housing, public services and facilities, and planning activities during fiscal year 2006. The CDBG and HOME funds also leveraged approximately $1.7 million in other funds. These programs provide for broad based financial impacts locally for builders, developers, and others. Financial Information Single Audit: 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 those programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management. The results of the City's single audit for the fiscal year ended June 30, 2006 provided no instances of material weaknesses in the internal controls or significant violations of applicable laws and regulations based upon the audit of the basic financial statements. Retirement Plans: With the exception of police and fire employees, substantially all permanent City employees are covered by the Iowa Public Employees Retirement System (IPERS). The state annually sets the contribution rate for all municipal entities and covered employees. All covered employees are required to contribute 3.7 % of their salary, while employers contribute 5.75 %. There is no allocation or measurement of unfunded liability to any municipal entity and, upon the retirement of employees, IPERS has the sole responsibility for their benefits. The City has no responsibility to pay employee pension benefits of IPERS besides the required contribution. The City's police and fire employees are covered by the Municipal Fire and Police Retirement System of Iowa (MFPRSI). This statewide system is a cost-sharing multiple-employer public employee retirement system. The state annually sets the contribution rate for all municipal entities and employees. The City has no responsibility to pay employee pension benefits of MFPRSI besides the required contribution. Cash Management: The majority of the City's investment activity is carried on by the City's investment pool, except for those funds which are required to maintain their investments separately. This pooled concept provides for greater investment earnings that are then allocated to the City's funds on a systematic basis. The intention of the cash management system is to limit the amount of funds placed in accounts where low or no interest is paid. Idle cash is invested in various instruments with various maturity dates of less than one year, depending on the anticipated cash requirements during the period. The overall strategy of holding deposits and making investments is to expose the City to a minimum amount of credit risk and market risk. All bank balances of deposits as of the balance sheet date are 7 entirely insured or collateralized with securities held by the State of Iowa Sinking Fund. For the year ended June 30, 2006, the City earned $5,253,000 from all investments, an increase of $1,906,000 from the prior year. The following table shows how this was allocated by fund type for the fiscal years 2006 and 2005: 2006 2005 Investment Investment Fund TVDe Earnin2s Earnin2s (in thousands) (in thousands) Governmental $ 2,678 $ 1,576 Proprietary 2~575 1~771 Totals $ 5~253 $ 3~347 Risk Management: The City is exposed to a variety of accidental losses and has established a risk management strategy that attempts to minimize losses and the carrying cost of insurance. Risk control techniques have been established to reasonably ensure that the City's employees are aware of their responsibilities regarding loss exposures related to their duties. In a similar manner, risk control techniques have been established to reduce possible losses to property owned by or under the control of the City. Furthermore, supervisory personnel are held responsible for monitoring risk control techniques on an operational basis. The City completed its sixteenth year under a property and liability insurance 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 insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $19,000,000 annual aggregate of the losses paid. The operating funds pay annual premiums to the Loss Reserve Fund, which is accounted for as an internal service fund. The balance in the Loss Reserve Fund is available to cover the self-insured retention amounts and any uninsured losses. The total assets in the Loss Reserve Fund as of June 30, 2006 were $5,150,000. Independent Audit: 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 OMB Circular A-133. 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. The independent auditors' reports related specifically to the single audit are included in the compliance section of this report. The financial statements are the responsibility of the City. The responsibility of the certified public accountants is to express an opinion on the City's financial statements based on their audit. An audit is conducted in accordance with generally accepted auditing standards. Those standards require that the audit be planned and performed in a manner to obtain a reasonable assurance as to whether the financial statements are free of material misstatement. A wards 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, 8 2005. 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-one consecutive years. I believe our current report continues to conform to the Certificate requirements and 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, 2006. 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 Depmtment. 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, Senior Accountant, Esther Rusch, and Internal Auditor, Nicole Heinricy Schmitz. 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. -7~:~~' Kevin O'Malley Director of Finance 9 10 ~ CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2006 ELECTED OFFICIALS Mayor Council Member and Mayor Pro tern Council Member Council Member Council Member Council Member Council Member Ross Wilburn Regenia Bailey Connie Champion Amy Correia Bob Elliott Mike O'Donnell Dee Vanderhoef APPOINTED OFFICIALS City Manager City Clerk City Attorney Stephen J. Atkins Marian K. Karr Eleanor Dilkes DEP ARTMENT DIRECTORS Assistant City Manager Director of Housing and Inspection Services Library Director Director of Planning & Community Development Director of Public Works Director of Parking and Transit Senior Center Coordinator Fire Chief Parks and Recreation Director Director of Finance Chief of Police Dale E. Helling Douglas W. Boothroy Susan Craig Karin Franklin Rick Fosse Joseph Fowler Linda Kopping Andrew Rocca Terry G. Trueblood Kevin O'Malley Sam Hargadine 11 Term Expires January 1, 2008 January 1, 2008 January 1,2010 January 1,2010 January 1, 2008 January 1,2010 January 1, 2008 Date of Hire July 20, 1986 May 21, 1979 March 18, 1996 August 16, 1975 September 22, 1975 July 28, 1975 May 19, 1980 February 22, 1984 January 2, 1970 March 20, 1995 July 14, 1978 February 18, 1986 August 19, 1985 August 29, 2005 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2005 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. President ~/~ Executive Director 12 /..~ EideBailly,M ~ ePAs & 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, 2006, 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. 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 stan~ards 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 fmancial 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, 2006, and the respective changes in financial position and, where applicable, cash flows 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 November 16, 2006, on our consideration of the City's internal control over financial reporting and 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 PEOPLE. PRINCIPLES. POSSIBILITIES. www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 I Dubuque, Iowa 52002-2273 I Phone 563.556.1790 I Fax 563.557.7842 I EOE The management's discussion and analysis and budgetary comparison 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. 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 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 nomnajor 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. 4 "'L~ Dubuque, Iowa November 16, 2006 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, 2006. 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 - 9 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 30,2006 by $326,922,000 (net assets). Of this amount, $53,815,000 (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 $14,773,000 during the fiscal year. Governmental activities increased by $7,372,000 and business-type activities increased by $7,401,000. · At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $31,953,000, a decrease of $1,564,000 in comparison with the prior year. Of this total amount, approximately $27,066,000, or 85% 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 $16,551,000, or 38% of total General Fund expenditures. · The City's total debt decreased by $5,245,000, during the current fiscal year. The key factor to this decrease was the retirement of bonds. 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. 15 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, Capital Projects - Bridge, Street, and Traffic Control Construction Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as "Other Governmental Funds". Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 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. Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other 4 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 80 - 82. 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. 16 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 four fiduciary funds: Project Green, Library Foundation, Parks and Recreation Foundation, and P A TV (Public Access Television) 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 - 68 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 $326,922,000 at the close of the fiscal year ended June 30, 2006. 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 Oty's Net Assets June 30, 2006 (amounts expressed in thousands) Governmental Business-type activities activities Total 2006 2005 2006 2005 2006 2005 Current and other assets $ 99,035 $ 94,332 $ 87,544 $ 83,970 $186,579 $ 178,302 Capital assets 150,644 141,282 252,130 254,560 402,774 395,842 Total Assets 249,679 235,614 339,674 338,530 589,353 574,144 Long-term liabilities outstanding 80,333 79,122 121,239 126,966 201,572 206,088 Current and other liabilities 56,440 50,958 4,419 4,949 60,859 55,907 Total Liabilities 136,773 130,080 125,658 131,915 262,431 261,995 Net assets: Invested in capital assets, net of related debt 95,227 84,768 155,346 150,797 250,573 235,565 Restricted 6,852 16,973 15,682 15,038 22,534 32,011 Unrestricted 10,827 3,793 42,988 40,780 53,815 44,573 Total Net Assets $ 112,906 $ 105,534 $ 214,016 $ 206,615 $326,922 $ 312,149 17 A portion of the City's net assets (6.9% or $22,534,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (16.5% or $53,815,000) 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, 2006, 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 $7,372,000. The increase in net assets of governmental activities is primarily due to expenditures for capital assets less depreciation expense. The following is a more detailed review of FY06's operation. Revenues: Program Revenues: Charges for services $ Operating grants and contributions Capital grants and contributions General Revenues: Property taxes Road use tax Other taxes Earnings on investments Gain (loss) on disposal of capital assets Other Total revenues Expenses: Public safety Public works Culture and recreation Community and economic development General government Interest on long-term debt Wastewater Treatment Water Sanitation Housing Authority Parking Airport Storm water Cable Television Total expenses Change in net assets before transfers Transfers Change in net assets Net assets beginning of year Net assets end of year City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental activities 2006 2005 6,296 2,937 3,849 $ 6,139 2,592 7,679 37,770 5,303 1,240 2,678 100 4,422 64,595 35,327 5,269 1,351 1,576 95 3,994 64,022 16,690 12,723 11,458 6,264 6,892 3,404 15,286 11,521 11,341 6,960 6,500 3,602 57,431 55,210 7,164 208 7,372 105,534 8,812 645 9,457 96,077 $ 112,906 $ 105,534 18 Business-type activities 2006 $ 33,973 7,417 3,018 2,575 185 391 47,559 11,710 9,324 6,101 7,026 3,884 512 817 576 39,950 7,609 (208) 7,401 206,615 $ 214,016 2005 $ 33,647 7,012 2,387 1,771 304 418 45,539 12,214 8,313 6,031 7,466 3,989 520 1,452 607 40,592 4,947 (645) 4,302 202,313 $ 206,615 Total 2006 $ 40,269 10,354 6,867 37,770 5,303 1,240 5,253 285 4,813 112,154 16,690 12,723 11,458 6,264 6,892 3,404 11,710 9,324 6,101 7,026 3,884 512 817 576 97,381 14,773 14,773 312,149 $ 326,922 2005 $ 39,786 9,604 10,066 35,327 5,269 1,351 3,347 399 4,412 109,561 15,286 11,521 11,341 6,960 6,500 3,602 12,214 8,313 6,031 7,466 3,989 520 1,452 607 95,802 13,759 13,759 298,390 $ 312,149 Business-type Activities: Business-type activities increased the City's total assets by $7,401,000. The increases in net assets were primarily in the Wastewater, Water, and Sanitation funds. For all business- type activities, revenues exceeded expenses by $7,609,000. This was primarily due to increases in grants and contributions and earnings on investments. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business-type activities. 19 Governmental Activities FY2006 Revenue by Source Other Taxes 10% Misc. Other 11% Charges for services 10% Grants and Contributions 11% Business- Type Activities FY2006 Revenue by Source Grants and Contributions 22% Misc. Other 7% 20 Governmental Activities FY2006 Expenditures by Program Area (amounts expressed in thousands) 18,000 Publi c Safety 16,000 14,000 12,000 ~ 10,000 ~ r.IJ. ~ ~ 0 8,000 Q 6,000 4,000 2,000 0 Program Area Housing ~ 8,000 Authority r.IJ. ~ ~ 0 6,000 Q 4,000 2,000 0 14,000 12,000 10,000 Business-Type Activities FY2006 Expenditures by Program Area (amounts expressed in thousands) Wastewater Treatment Water S tormwater Program Area 21 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, 2006, the City's governmental funds reported combined ending fund balances of $31,953,000, a decrease of $1,564,000 in comparison with the prior year. Of this total amount, $27,066,000 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 (15.3%) 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 liquidate contracts and purchase orders of the prior period ($600,000), 2) to fund various debt service payments ($2,725,000), and 3) to fund employee retirement commitments ($1,299,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2006, the unreserved fund balance of the General Fund was $16,551,000, while General Fund's total fund balance was $17,121,000. 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 38.3% of total General Fund expenditures ($43,158,000), while total fund balance represents 39.7% of that same amount. The fund balance of the City's General Fund increased by $1,234,000 during the current fiscal year. This was primarily due to an increase in intergovernmental revenue. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,855,000) as compared to a deficit balance of ($1,210,000) in the prior period. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. $20,000 of the fund balance (1.1 %) is reserved to indicate that it is not available for new spending because it has already been committed to liquidate contracts and purchase orders of the prior period. 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 2007 to cover the capital expenditures. The Debt Service Fund had a fund balance of $2,725,000, a decrease of $342,000 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 $208,152,000, a net asset increase of $7,398,000. This was primarily due to an increase in the investment of capital assets, net of related debt. Of the enterprise funds' net assets, $155,346,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $37,124,000, an increase of $2,205,000 compared to the previous year. The Internal Service funds showed net assets totaling $15,646,000 as of June 30, 2006, an increase of $281,000 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. 22 The City had two budget amendments during the fiscal year, which is our common practice. These amendments increased the expenditure budget by $25.4 million to a total of $188.2 million. This represented a 15.6 percent increase. The major increase was due to capital projects in governmental and business-type funds due to timing of completion of projects. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business-type activities as of June 30, 2006 amounts to $402,774,000 (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, 2006 increased by $9,363,000 for governmental activities compared to the prior year and decreased by $2,431,000 for business- type activities over the prior year. The following table reflects the $402,774,000 investment in capital assets (net of accumulated depreciation). Gty of Iowa Gty's Capital Assets (net of depreciation) (atmunts expressed in thousands) Governmental Activities 2006 2005 Land $ 12,969 Buildings 44,258 Irnproverrents other than buildings 3,672 Machinery and equiprrent 11,027 Infrastructure 64,939 Construction in progress 13,779 Total $ 150,644 $ 12,922 33,766 $ 2,958 11,121 64,312 16,202 141,281 Business-type Activities 2006 2005 $ 22,997 $ 22,289 84,113 87,213 8,340 8,697 12,424 13,336 121,064 119,773 3,192 3,253 $ 252,130 $ 254,561 Major capital asset events during the current fiscal year included the following: Total 2006 2005 $ 35,966 128,371 12,012 23,451 186,003 16,971 $ 402,774 $ 35,211 120,979 $ 11,655 24,457 184,085 19,455 395,842 · The Court Street Transportation Center opened in September 2005. It includes facilities for interstate bus service, taxi service, a parking facility, day care center and other commercial space. Total construction costs for this project were $11,860,000. · Airport projects included environmental assessment, runway design, grading, lighting, paving and runway extension. CIP at fiscal year end totaled $1,111,000. · A variety of street and bridge construction in new residential areas and replacement and expansion of existing infrastructure amounted to $10,501,000. · The fire department purchased a new aerial ladder truck at a cost of $848,000. · Restoration of the Iowa River Power Dam to preserve the City's water supplies and reconstruction of a pedestrian bridge and observation platforms were completed at a cost of $2,286,000. · Construction of the fifth landfill cell as part of the landfill master plan. CIP at fiscal year end totaled $1 , 111 ,000. Additional information on the City's capital assets can be found in Note 5 to the financial statements. 23 Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $190,975,000. Of this amount, $85,060,000 comprises debt backed by the full faith and credit of the City. However, 8% of this total, $6,879,000 is debt that serves enterprise funds and is abated by their charges for services. The remaining $105,915,000 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 2006 2005 2006 2005 2006 2005 General obligation bonds $ 78,181 $ 77,015 $ 6,879 $ 8,275 $ 85,060 $ 85,290 Revenue bonds 105,915 110,930 105,915 110,930 Total $ 78,181 $ 77,015 $ 112,794 $ 119,205 $ 190,975 $ 196,220 During the current fiscal year the City's total bonded debt decreased by $5,245,000. · The City issued $7,265,000 in General Obligation bonds during FY06. The bonds were used to finance the cost of the City's 2006 and 2007 Capital Improvements Programs. 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, 2006 were as follows: General obligation bonds Parking revenue bonds Wastewater treatment revenue bonds Water revenue bonds Aaa A A 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 $186,629,525. With outstanding General Obligation Debt applicable to this limit of $85,060,000 we are utilizing 46% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. Economic Factors and Next Year's Budget and Rates The City's expectation is continued constraints by the State property tax formula. Therefore, the City will not have opportunities for new initiatives and will strive to maintain current service delivery levels. 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, lA, 52240. 24 25 CITY OF IOWA CITY, IOWA ST A TEMENT OF NET ASSETS June 30, 2006 (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 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 Unearned revenue Noncurrent liabilities: Due within one year: Employee vested benefits Bonds payable Due in more than one year: Employee vested benefits Notes Payable Bonds payable Landfill closure/post-closure liability Total liabilities Governmental Activities $ 39,127 $ 39,313 96 667 10,920 ( 6,696) 4,600 430 10,578 26,748 123,896 249,679 Business-type Activities 47,914 $ 3,664 1,210 1,477 6,696 271 361 25,951 26,188 225,942 339,674 Total 87,041 39,313 3,760 1,877 12,397 4,871 791 36,529 52,936 349,838 589,353 4,151 467 4,618 1,768 348 2,116 3,117 292 3,409 286 2,642 2,928 815 590 1,405 80 80 46,303 46,303 955 241 1,196 6,715 6,584 13,299 880 221 1,101 211 211 71,572 105,205 176,777 8,988 8,988 136,773 125,658 262,431 ( continued) 26 CITY OF IOWA CITY, IOWA ST A TEMENT OF NET ASSETS (continued) June 30, 2006 (amounts expressed in thousands) Governmental Activities Business-type Activities Net Assets Invested in capital assets, net of related debt $ 95,227 $ 155,346 $ Restricted for or by: Employee benefits 1,299 Debt service 2,725 Streets 2,782 Other purposes 46 Bond ordinance 13,254 State statute 517 Future improvements 42 Grant agreement 1,869 Unrestricted 10,827 42,988 Total net assets $ 112,906 $ 214,016 $ The notes to the financial statements are an integral part of this statement. 27 Total 250,573 1,299 2,725 2,782 46 13,254 517 42 1,869 53,815 326,922 CITY OF lOW A CITY, lOW A STATEMENT OF ACTIVITIES For the Year Ended June 30, 2006 (amounts expressed in thousands) Program Revenues Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety $ 16,690 $ 2,971 $ 253 $ 58 Public works 12,723 1,062 837 3,695 Culture and recreation 11,458 707 96 Community and economic development 6,264 1,847 General government 6,892 1,556 Interest on long-term debt 3,404 Total governmental activities 57,431 6,296 2,937 3,849 Business-type activities: Wastewater Treatment 11,710 12,145 773 Water 9,324 9,012 606 Sanitation 6,101 7,133 3 46 Housing Authority 7,026 168 7,414 Parking 3,884 3,936 Airport 512 264 1,125 Stormwater 817 597 468 Cable television 576 718 Total business-type activities 39,950 33,973 7,417 3,018 Total $ 97,381 $ 40,269 $ 10,354 $ 6,867 General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric 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. 28 Net (Expense) Revenue and Changes in Net Assets Governmental Business-type Activities Activities Total $ (13,408) $ - $ (13,408) (7,129) (7,129) (10,655) (10,655) (4,417) (4,417) (5,336) (5,336) (3,404) (3,404) ( 44,349) ( 44,349) 1,208 1,208 294 294 1,081 1,081 556 556 52 52 877 877 248 248 142 142 4,458 4,458 ( 44,349) 4,458 (39,891) 37,770 37,770 5,303 5,303 674 674 566 566 2,678 2,575 5,253 100 185 285 4,422 391 4,813 208 (208) 51,721 2,943 54,664 7,372 7,401 14,773 105,534 206,615 312,149 $ 112,906 $ 214,016 $ 326,922 29 Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Advances to other funds Due from other governments Inventories Restricted assets: Equity in pooled cash and investments Total assets CITY OF lOW A CITY, lOW A BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2006 (amounts expressed in thousands) Capital Special Revenue Projects Bridge, Community Street, and Development Traffic Other Employee Block Control Debt Governmental General Benefits Grant Construction Service Funds Total $ 18,706 $ 1,233 $ $ 1,325 $ 2,019 $ 3,844 $ 27,127 21,850 8,420 9,042 1 39,313 93 3 96 322 26 24 103 475 121 10,029 387 383 10,920 16 18 247 281 1,540 219 89 2,070 644 4,562 167 167 1,316 9,262 10,578 $ 44,131 $ 9,898 $ 10,136 $ 3,395 $ 11,719 $ 14,240 $ 93,519 (continued) 30 CITY OF IOWA CITY , IOWA BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2006 (amounts expressed in thousands) Capital Special Revenue Projects Bridge, Community Street, and Development Traffic Other Employee Block Control Debt Governmental General Benefits Grant Construction Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable $ 1,207 $ 4 $ 37 $ 1,953 $ $ 281 $ 3,482 Contracts payable 1,233 535 1,768 Accrued liabilities 1 , 123 9 16 22 1,171 Advances from other funds 850 16 247 1,113 Deferred revenue 23,015 8,594 10,047 2,048 8,994 519 53,217 Liabilities payable from restricted assets: Deposits 815 815 Total liabilities 27,010 8,599 10,109 5,250 8,994 1,604 61,566 Fund balances: Reserved for: Inventories 167 167 Encumbrances 307 20 273 600 Debt service 2,725 2,725 Employee retirement commitments 1,299 1,299 Perpetual care 96 96 Unreserved U ndesignated: General fund 16,551 16,551 Special revenue funds 27 3,395 3,422 Capital projects funds (1,875) 8,968 7,093 Total fund balances 17,121 1,299 27 (1,855) 2,725 12,636 31,953 Total liabilities and fund balances $ 44,131 $ 9,898 $ 10,136 $ 3,395 $ 11,719 $ 14,240 $ 93,519 The notes to the financial statements are an integral part of this statement. 31 CITY OF IOWA CITY , IOWA RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2006 (amounts expressed in thousands) Total governmental fund balances 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. 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. 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. 32 $ 31,953 15,646 6,914 144,773 (1,732) (78,287) (211) (286) (5,864 ) $ 112,906 CITY OF lOW A CITY, lOW A STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Capital Special Revenue Proj ects Bridge, Community Street, and Development Traffic Other Employee Block Control Debt Governmental General Benefits Grant Construction Service Funds Total Revenues Taxes $ 20,897 $ 8,296 $ - $ - $ 8,841 $ 977 $ 39,011 Licenses and permits 1,279 1,279 Intergovernmental 3,033 1,626 2,606 6,995 14,260 Charges for services 2,040 187 2,227 Use of money and property 1,677 11 208 307 2,203 Miscellaneous 3,394 350 12 100 320 4,176 Total revenues 32,320 8,494 1,976 2,618 9,149 8,599 63,156 Expenditures Current: Public safety 15,678 124 17 15,819 Public works 8,987 1,290 74 10,351 Culture and recreation 9,905 217 10,122 Community and economic development 854 474 3,370 4,698 General government 6,198 225 87 6,510 Debt service: Principal 6,099 6,099 Interest 3,458 3,458 Capital outlay 1,536 1,458 9,510 2,649 15,153 Total expenditures 43,158 349 1,932 10,800 9,557 6,414 72,210 Excess (deficiency) of revenues over (under) expenditures (10,838) 8,145 44 (8,182) (408) 2,185 (9,054) Other Financing Sources (Uses) Issuance of debt 1 ,000 6,265 7,265 Sale of capital assets 91 18 109 Premium (discount) on issuance of bonds (6) 35 29 Transfers in 13,002 7,370 66 1,189 21,627 Transfers out (1,021 ) (8,152) (65) (845) (11,457) (21,540) Total other financing sources and (uses) 12,072 (8,152) (65) 7,537 66 (3,968) 7,490 Net change in fund balances 1,234 (7) (21) ( 645) (342) (1,783) (1,564) Fund Balances, Beginning 15,887 1,306 48 (1,210) 3,067 14,419 33,517 Fund Balances, Ending $ 17,121 $ 1,299 $ 27 $ (1,855) $ 2,725 $ 12,636 $ 31,953 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, 2006 (amounts expressed in thousands) Net change in fund balances - total governmental funds 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 Capital assets contributed Depreciation expense $ 14,488 859 (5,583) Bond proceeds are reported as 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. Debt issued Premium on bonds issued Repayments of debt Amortization of premium (7,265) (29) 6,099 14 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. 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 Change in accrued interest on debt 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. 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. 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. Change in net assets of governmental activities The notes to the financial statements are an integral part of this statement. 35 $ (1,564 ) 9,764 (1,181) 63 (14) 40 (9) (5) 278 $ 7,372 CITY OF IOWA CITY , IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2006 (amounts expressed in thousands) Governmental Business-type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Treatment Water Sanitation Authority Funds Total Funds Assets Current assets: Equity in pooled cash and investments $ 10,598 $ 15,013 $ 15,551 $ 2,531 $ 4,221 $ 47,914 $ 12,000 Receivables: Accounts and unbilled usage 1,599 1,064 433 187 381 3,664 Interest 303 324 403 74 106 1,210 192 Notes 1,252 225 1,477 Advances to other funds 2,074 2,074 Due from other governments 68 51 64 88 271 38 Inventories 361 361 263 Total current assets 12,500 16,830 18,512 4,108 5,021 56,971 12,493 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 9,279 3,389 10,090 1,869 1,324 25,951 Capital assets: Land 695 6,296 1,055 848 14,102 22,996 45 Buildings 59,486 23,408 999 5,474 29,274 118,641 831 Improvements other than buildings 7,365 2,318 121 9 408 10,221 50 Machinery and equipment 9,810 10,372 153 115 821 21,271 12,193 Infrastructure 83,453 40,281 9,315 30,734 163,783 940 Accumulated depreciation (46,118) (12,816) (6,888) (3, 104) (19,048) (87,974) (8,188) Construction in progress 60 177 1,114 210 1,631 3,192 Total noncurrent assets 124,030 73,425 15,959 5,421 59,246 278,081 5,871 Total assets 136,530 90,255 34,471 9,529 64,267 335,052 18,364 (continued) 36 CITY OF lOW A CITY, lOW A STATEMENT OF NET ASSETS (continued) PROPRIETARY FUNDS June 30, 2006 (amounts expressed in thousands) Governmental Business-type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable $ 72 $ 167 $ 94 $ 79 $ 55 $ 467 $ 669 Contracts payable 155 193 348 Accrued liabilities 129 190 185 58 192 754 2,049 Advances from other funds 1,224 1,224 Due to other governments 10 57 13 80 Bonded debt payable (net of unamortized discounts) 4,073 1,866 645 6,584 Total current liabilities 4,274 2,233 491 150 2,309 9,457 2,718 Noncurrent liabilities: Liabilities payable from restricted assets: Interest payable 1,657 666 319 2,642 Deposits 366 210 13 590 Advances from other funds 18 18 Bonded debt payable (net of unamortized discounts) 63,967 30,930 10,308 105,205 Landfill closure/postclosure liability 8,988 8,988 Total noncurrent liabilities 65,624 31,962 8,989 228 10,640 117,443 Total liabilities 69,898 34,195 9,480 378 12,949 126,900 2,718 Net Assets Invested in capital assets, net of related debt 55,376 42,391 5,869 3,552 48,158 155,346 5,871 Restricted by bond ordinance 9,278 2,705 1,271 13,254 Restricted by state statute 517 517 Restricted for future improvements 42 42 Restricted by grant agreement 1,869 1,869 Unrestricted 1,978 10,964 18,605 3,730 1,847 37,124 9,775 Total net assets $ 66,632 $ 56,060 $ 24,991 $ 9,151 $ 51,318 208,152 $ 15,646 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 5,864 Net assets of business-type activities $ 214,016 The notes to the financial statements are an integral part of this statement. 37 38 CITY OF lOW A CITY, lOW A STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Governmental Business-type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: Charges for services $ 12,145 $ 9,012 $ 7,133 $ 168 $ 5,515 $ 33,973 $ 12,427 Miscellaneous 40 165 6 87 93 391 Total operating revenues 12,185 9,177 7,139 255 5,608 34,364 12,427 Operating Expenses: Personal services 1,565 2,024 1,949 801 2,116 8,455 1,633 Commodities 533 1,908 215 29 199 2,884 1,900 Services and charges 2,162 1,765 3,379 6,007 1,216 14,529 8,066 4,260 5,697 5,543 6,837 3,531 25,868 11,599 Depreciation 4,037 1,985 553 178 1,563 8,316 1,342 Total operating expenses 8,297 7,682 6,096 7,015 5,094 34,184 12,941 Operating income (loss) 3,888 1,495 1,043 (6,760) 514 180 (514) Nonoperating Revenues (Expenses): Gain (loss) on disposal of equipment 17 (25) 180 13 185 64 Operating grants 3 7,414 7,417 Interest income 596 741 836 198 204 2,575 479 Interest expense (3,375) (1,607) (656) (5,638) Total nonoperating revenues (expenses) (2,762) (891) 839 7,792 ( 439) 4,539 543 Income (loss) before capital contributions and transfers 1,126 604 1,882 1,032 75 4,719 29 Capital contributions 773 606 46 1,593 3,018 Transfers in 60 65 917 1,042 255 Transfers out (222) ( 467) (131) (86) (475) (1,381) (3) Change in net assets 1,737 743 1,797 1,011 2,110 7,398 281 Net Assets, Beginning 64,895 55,317 23,194 8,140 49,208 15,365 Net Assets, Ending $ 66,632 $ 56,060 $ 24,991 $ 9,151 $ 51,318 $ 15,646 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 3 Change in net assets of business-type activities $ 7,401 The notes to the financial statements are an integral part of this statement. 39 CITY OF IOWA CITY , IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Governmental Business-type Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Treatment Water Sanitation Authority Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users $ 12,058 $ 9,188 $ 7,268 $ 42 $ 5,602 $ 34,158 $ 12,531 Payments to suppliers (2,823) (3,980) (2,992) ( 6,030) $ (1,494) (17,319) $ (10,027) Payments to employees (1,561) (2,024) (1,924) (795) $ (2,094) (8,398) $ (1,220) Net cash flows from operating activities 7,674 3,184 2,352 (6,783) 2,014 8,441 1,284 Cash Flows From Noncapital Financing Activities Grants received 3 7,414 7,417 Transfers from other funds 60 65 917 1,042 255 Transfers to other funds (222) ( 467) (131) (86) (475) (1,381) (3) Repayment/(payment) of notes receivable (189) 25 ( 164 ) Advances to other funds (212) (212) Repayment of advances from other funds (35) (35) Net cash flows from noncapital financing activities (162) ( 467) (340) 7,204 432 6,667 252 Cash Flows From Capital and Related Financing Activities Capital grants received 1 , 125 1 , 125 Acquisition and construction of property and equipment (233) (120) (1,691) (241) (1,985) ( 4,270) (948) Proceeds from sale of property 21 462 13 496 64 Principal paid on bonded debt (3,983) (1,812) ( 616) (6,411) Interest paid on bonded debt (3,398) (1,607) (661 ) (5,666) Net cash flows from capital and related financing activities (7,593) (3,539) (1,691) 221 (2,124) (14,726) (884) Cash Flows From Investing Activities Interest on investments 490 635 711 169 159 2,164 404 Net increase (decrease) in cash and cash equivalents 409 (187) 1,032 811 481 2,546 1,056 Cash and Cash Equivalents, Beginning 19,468 18,589 24,609 3,589 5,064 71,319 10,944 Cash and Cash Equivalents, Ending $ 19,877 $ 18,402 $ 25,641 $ 4,400 $ 5,545 $ 73,865 $ 12,000 40 CITY OF IOWA CITY , IOWA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Wastewater Treatment Business-type Activities - Enterprise Funds Other Housing Enterprise Water Sanitation Authority Funds Governmental Activities - Internal Service Funds Total Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $ 3,888 $ 1,495 $ 1,043 $ (6,760) $ 514 $ 180 $ (514) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 4,037 1,985 553 178 1,563 8,316 $ 1,342 Changes in: Receivables: Accounts and unbilled usage (127) (39) 179 (183) (37) (207) 96 Due from other governments 53 (50) (27) 29 5 8 Inventories (1) (1) (23) Accounts payable (127) (284 ) 47 11 (79) ( 432) (38) Accrued liabilities 4 25 6 22 57 413 Due to other governments (1) (22) (8) (5) (36) Deposits (3) (3) 2 (4) Landfill closure/postclosure liability 563 563 Total adjustments 3,786 1,689 1,309 (23) 1,500 8,261 1,798 Net cash flows from operating activities $ 7,674 $ 3,184 $ 2,352 $ (6,783) $ 2,014 $ 8,441 $ 1,284 Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others $ 773 $ 606 $ 46 $ - $ 1,593 $ 3,018 The notes to the financial statements are an integral part of this statement. 41 CITY OF IOWA CITY , IOWA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2006 (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 The notes to the financial statements are an integral part of this statement. 42 Agency Funds $ 411 4 7 422 $ $ 108 4 310 422 $ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2006 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, 2006 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, 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, 2006 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 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. 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 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 four fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance. 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 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. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 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 postclosure 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, primarily capital 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. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 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 are reported at the lower of cost (first-in, first-out) or market. The costs of governmental fund type inventories are recorded as expenditures when purchased. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, 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 Buildings and structures Improvements other than buildings Vehicles Other equipment 3 - 100 years 20 - 50 years 15 - 50 years 2 - 20 years 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, 2006 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 13). 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. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 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 $11.7 million in revenues and other financing sources and by $25.4 million 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, 2006 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,855,000. 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 2007 to cover the capital expenditures. 3. Cash and Pooled Investments The City's deposits in banks at June 30, 2006 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. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 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 (IP AIT); 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 $3,284,233 pursuant to Rule 2a-7 under the Investment Company Act of 1940. At June 30, 2006 the City had the following investments: ~ U S Agencies Van Kampen U S Mutual Fund Fair Value $1,454,615 164,115 Maturity November 2006 none 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 City's Van Kampen investment at June 30, 2006 is rated Aaa by Moody's Investors service. 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 (IP AIT) and mutual funds represent investments in pools managed by others. IP AIT 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. IP AIT is registered under the Investment Company Act of 1940. The IP AIT 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, 2006 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2006, consisted of the following: Advances from Community Development Debt General Block Grant Service Sanitation Total Advances to: General $ $ $ $ 849,785 $ 849,785 Community Development Block Grant 15,574 15,574 Nonmajor governmental 247,067 247,067 Housing Authority 18,000 18,000 Nonmajor enterprise 1,223,571 1,223,571 Total $ 15,574 $ 18,000 $ 247,067 $ 2,073,356 $ 2,353,997 Interfund balances at June 30, 2006, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans, land and negative cash funding. $1,183,532 of the $1,223,571 advances to the Non-Major Enterprise Funds and $720,157 of the $849,785 advances to the General Fund are not expected to be repaid within the next year. $237,810 of the $247,067 advance to the Non-Major Governmental Funds is 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 $15,574 advance to the Community Development Block Grant Fund is expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Interfund transfers for the year ended June 30, 2006, consisted of the following: Transfer From Bridge, Street and Community Traffic Employee Development Control Nonmajor General Benefits Block Grant Construction Governmental Transfer to: General $ $ 8,152,026 $ $ 195,587 $ 4,289,637 Debt service 21,250 44,289 Bridge, street and traffic control construction 6,697,847 Nonmajor governmental 790,627 270,258 Wastewater treatment Housing 64,959 Nonmajor enterprise 112,000 649,597 155,058 Internal Service 97,531 Total transfer to $ 1,021,408 $ 8,152,026 $ 64,959 $ 845,184 $ 11,457,089 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, 2006 Transfer From Wastewater Nonmajor Internal Total Treatment Water Sanitation Houisng Enterprise Service Transfer From $ $ $ $ $ 362,821 $ 2,500 $ 13,002,571 65,539 153,994 407,044 112,000 7,370,885 41,841 86,146 1,188,872 60,000 60,000 64,959 916,655 67,600 89,483 254,614 $ 221,594 $ 467,044 $ 131,324 $ 86,146 $ 474,821 $ 2,500 $ 22,924,095 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 5. Capital Assets Capital asset activity for the year ended June 30, 2006, was as follows: Acquisitions Disposals Beginning and and Balance July 1~ 2005 Transfers Transfers June 30~ 2006 Governmental activities: Capital assets, not being depreciated: Land $ 12,922,537 $ 46,861 $ - $ 12,969,398 Construction in progress 16~201~606 13~332~361 15~754~947 13~779~020 Total capital assets, not being depreciated 29 ~ 124~ 143 13~379~222 15~754~947 26~748~418 Capital assets, being depreciated: Buildings 45,282,411 11,911,633 384,490 56,809,554 Improvements other than buildings 3,890,466 887,868 4,778,334 Machinery and equipment 30,791,142 3,210,013 1,591,549 32,409,607 Infrastructure 78~939~778 2~709~478 81~649~256 Total capital assets being depreciated 158~903~797 18~718~992 1~976~039 175~646~750 Less accumulated depreciation for: Buildings 11,516,340 1,419,551 384,490 12,551,401 Improvements other than buildings 932,513 173,762 1,106,275 Machinery and equipment 19,670,152 3,263,629 1,551,603 21,382,178 Infrastructure 14~628~020 2~082~640 16~710~660 Total accumulated depreciation 46~747~025 6~939~582 1 ~936~093 51~750~514 Total capital assets, being depreciated, net $112~156~772 $ 11~779~410 $ 39~946 $ 123~896~236 Governmental activities capital assets, net $141,280,915 $ 25,158,632 $ 15,794,893 $150,644,654 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Acquisitions Disposals Beginning and and Balance July 1~ 2005 Transfers Transfers June 30~ 2006 Business-type activities: Capital assets, not being depreciated: Land $ 22,288,569 $ 787,969 $ 79,500 $ 22,997,038 Construction in progress 3~252~982 3~942~054 4~003~371 3~ 191~665 Total capital assets, not being depreciated 25~541 ~551 4~730~023 4~082~871 26~188~703 Capital assets, being depreciated: Buildings 118,625,743 316,053 300,724 118,641,072 Improvements other than buildings 10,147,021 73,934 10,220,955 Machinery and equipment 21,098,981 243,595 72,374 21,270,202 Infrastructure 158~944~944 4~837 ~932 163~782~876 Total capital assets being depreciated 308~816~689 5~471~514 373~098 313~915~105 Less accumulated depreciation for: Buildings $ 31,412,533 $ 3,211,098 $ 95,403 $ 34,528,228 Improvements other than buildings 1,450,006 430,633 1,880,639 Machinery and equipment 7,762,754 1,126,784 43,552 8,845,986 Infrastructure 39~172~165 3~547 ~511 42~719~676 Total accumulated depreciation 79~797~458 8~316~026 138~955 87~974~529 Total capital assets, being depreciated, net 229~019~231 (2~844~512) 234~143 225~940~576 Business-type activities capital assets, net $254,560,782 $ 1 ,885,511 $ 4,317 ,014 $ 252,129,279 Depreciation expense was charged to functions as follows: Governmental activities: Public safety Public works Culture and recreation Community and economic development General government Internal service funds $ 582,414 2,644,912 1,980,292 37,619 338,572 1~355~773 Total depreciation expense - governmental activities $ 6,939,582 Business-type activities: Wastewater treatment Water Sanitation Housing authority Nonmajor enterprise $ 4,036,633 1,984,988 553,206 178,325 1~562~876 Total depreciation expense - business-type activities $ 8,316,026 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 6. Bonded and Other Long-Term Debt Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2006, was as follows: J ul y 1, June 30, Due Within 2005 Issues Retirements 2006 One Year Governmental activities: General obligation bonds $ 77,015,377 $ 7,265,000 $ 6,099,222 $ 78,181,155 $ 6,700,525 Plus: Unamortized Premium (discount) 90~026 29~843 14~223 105~646 14~223 Total general obligation bonds 77 ~ 1 05~403 7 ~294~843 6~ 113~445 78~286~801 6~714~748 Note payable 211~000 211~000 Employee vested benefits 1~805~610 952~046 922~823 1~834~833 955~000 $ 79,122,013 $ 8,246,889 $ 7 ,036,268 $ 80,332,634 $ 7,669,748 Business-type activities: General obligation bonds $ 8,274,623 $ - $ 1,395,778 $ 6,878,845 $ 1,429,475 Less: Unamortized discounts 71~626 6~609 65~017 6~609 Total general obligation bonds 8~202~997 1~389~169 6~813~828 1 ~422~866 Revenue bonds 110,930,000 5,015,000 105,915,000 5,155,000 Less: Unamortized discounts 1~011~761 72~049 939~712 72~049 Total revenue bonds 109~918~239 4~942~951 104~975~288 5~082~951 Landfill closure/post- closure 8,425,488 562,189 8,987,677 Employee vested benefits 420~553 259~957 217~920 462~590 241~358 $126,967 ,277 $ 822,146 $ 6,550,040 $ 121,239,383 $ 6,747,175 A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1 %, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 General Obligation Bonds Various issues of general obligation bonds totaling $85,060,000 are outstanding as of June 30, 2006. The bonds have interest rates ranging from 2.5% to 5.6% and mature in varying annual amounts ranging from $275,000 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. Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending Governmental Activities Business-type Activities June 30 Principal Interest Principal Interest 2007 6,700,525 3,464,538 1,429,475 284,314 2008 6,578,235 3,222,276 561,765 238,554 2009 6,763,235 2,956,142 561,765 216,001 2010 6,889,538 2,680,499 580,462 192,794 2011 7,130,840 2,392,733 599,160 168,127 2012-2016 30,458,782 7,491,633 2,846,218 435,674 2017-2021 12,375,000 2,021,571 300,000 15,000 2022-2026 1~285~000 104~405 Total $ 78,181,155 $ 24,333,797 $ 6,878,845 $ 1 ,550,464 Revenue Bonds As of June 30, 2006, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 13,850,000 $ 83,935,000 $ 30,700,000 Interest rates 5.9% to 7.4% 3.5% to 5.8% 2.0% to 5.6% Annual maturities $ 305,000 to $ 270,000 to $ 245,000 to $ 895,000 $ 3,010,000 $ 910,000 Amount outstanding $ 10,725,000 $ 68,485,000 $ 26,705,000 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 Business-type Activities Principal Interest 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 5,155,000 5,415,000 5,625,000 5,875,000 6,195,000 28,725,000 31,470,000 17 ~455~000 5,128,064 4,905,893 4,668,765 4,413,216 4,139,939 16,432,893 9,078,823 1~966~613 $ 105,915,000 $ 50,734,206 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 Sinking Reserve Amount sufficient to pay current bond and interest maturities. (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, $5,000 per month until the reserve balance equals or exceeds $300,000 for Parking Revenue bonds and $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. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2006, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30~ 2006 General Obligation Bonds: Multi-Purpose Mar. 1997 $5,200,000 4.5 -4.7 6/07 $500,000 Water Construction (1) Nov. 1997 5,540,000 4.875 - 5.0 6/17 3,300,000 Multi-Purpose Apr. 1998 8,500,000 4.35 - 4.75 6/13 3,900,000 Multi-Purpose Mar. 1999 9,000,000 4.125 - 4.7 6/18 5,700,000 Multi-Purpose Jul. 2000 14,310,000 5.0- 5.5 6/18 10,965,000 Multi-Purpose Jun. 2001 11,500,000 4.0-4.9 6/16 8,150,000 Multi-Purpose and Library Construction May 2002 29,100,000 3.5 - 5.0 6/21 22,495,000 Refunded Multi-Purpose (3) Oct. 2002 10,600,000 2.5 -4.0 6/15 4,580,000 Multi-Purpose Nov. 2003 5,570,000 2.5 - 3.6 6/14 4,450,000 Taxable - Urban Renewal Mar. 2004 7,305,000 4.0- 5.4 6/23 7,305,000 Multi-Purpose Mar. 2005 7,020,000 3.0-4.0 6/15 6,450,000 Multi-Purpose Jun. 2006 6,265,000 3.625-4.0 6/16 6,265,000 Multi-Purpose Jun. 2006 1,000,000 5.5 -5.6 6/16 1 ~OOO~OOO Total General Obligation Bonds 85~060~000 Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30~ 2006 Revenue Bonds: Parking Bonds Dec. 1999 $ 11,350,000 5.875 - 6.0 7/24 $10,725,000 Wastewater Treatment Bonds Mar. 1996 18,300,000 5.0 - 5.75 7/21 14,500,000 Wastewater Treatment Bonds May 1997 10,600,000 5.15 - 5.5 7/22 8,575,000 Wastewater Treatment Bonds Jan. 1999 7,000,000 4.25 - 4.87 7/24 5,470,000 Wastewater Treatment Bonds Oct. 2000 12,000,000 5.125 - 5.5 7/25 10,550,000 Wastewater Treatment Bonds Dec. 2001 10,250,000 4.5 - 5.0 7/20 10,250,000 Refunded Wastewater Treatment Bonds (2) May 2002 25,785,000 3.25 - 4.1 7/13 19,140,000 Water Bonds May 1999 9,200,000 4.75 - 5.0 7/25 7,885,000 Water Bonds Dec. 2000 13,000,000 5.0 - 5.625 7/26 11,325,000 Water Bonds Oct. 2002 8,500,000 2.0 - 4.65 7/22 7 ~495~000 Total Revenue Bonds 105~915~000 $190,975,000 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 (1) These bond issues have a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. (2) This bond issue refunds the January 1993 Wastewater Revenue Bonds. (3) This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund, Wastewater Fund, and Parking Fund. 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, 2006, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $44,565,000. Debt Legal Compliance Legal Debt Margin: As of June 30, 2006, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property Utilities $3,682,279,290 50~311~216 Total valuation $3,732,590,506 Debt limit, 5% of total assessed valuation Debt applicable to debt limit: General obligation bonds $ 186,629,525 85~060~000 Legal debt margin $ 101,569,525 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 7. Segment Information The City issued revenue bonds to finance construction of its parking facilities. Summary financial information for the parking department is presented below: Condensed Statement of Net Assets As sets: Current assets Restricted assets Capital assets Total assets $ 2,972 1,317 18~666 22~955 Liabilities: Current liabilities Noncurrent liabilities payable from restricted assets Other noncurrent liabilities Total liabilities 958 323 10~308 11 ~589 Net assets: Invested in capital assets, net of related debt Restricted Unrestricted 8,902 1,313 1~151 11,366 $ 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Condensed Statement of Revenues, Expenses, and Changes in Net Assets Operating revenue Depreciation expense Other operating expenses Operating income $ 4,018 (819) (2~380) 819 Nonoperating revenues (expenses): Interest income Interest expense Transfer out Change in net assets Beginning net assets Ending net assets 143 ( 656) (200) 106 11~260 11,366 $ Condensed Statement of Cash Flows Net cash flows from: Operating activities Noncapital financing activities Capital and related financing activities Investing activities Net increase Cash and cash equivalents, beginning $ 1,550 (175) (1,351) 109 133 3~698 Cash and cash equivalents, ending $ 3.831 8. 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, 2006 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 $19,000,000 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 eight fiscal years. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 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, 2006 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, 2006 and 2005 are as follows: Current - Year Beginning-of- Claims and Balance at Fiscal- Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2004 - 2005 $ 808,000 $ 840,000 $ 534,000 $ 1,114,000 2005 - 2006 1,114,000 1,070,000 745,000 1,439,000 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 $6,393,248. For the year ended June 30, 2006, the aggregate stop-loss was approximately $5,941,466; otherwise, there was no change in coverage from the prior year. 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 fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30,2006 and 2005 are as follows: Current - Year Beginning-of- Claims and Balance at Fiscal- Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2004 - 2005 $ 663,000 $ 3,577,000 $ 3,851,000 $ 389,000 2005 - 2006 389,000 5,317,000 5,261,000 445,000 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 9. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2006 are as follows: Fund Proi ect Amount Bridge, street and traffic Paving and bridge construction, $ 2,835,615 control construction engineering design and consulting Other construction Transportation center construction center 739,970 Water Water main construction 1,856,161 Parking Fiber interconnect, Garage Repair & Main. 572,326 Sanitation Landfill cell construction 459,564 Airport Runway extension consulting 3,639 Cable TV Refranchising consulting 44,290 Economic development Hotel construction 229~531 $ 6,741,096 10. 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. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 11. 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, 2836 104th Street, Urbandale, Iowa 50322. 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 for a member retiring after July 1, 2000. Additionally, members retiring on or after July 1, 2000, 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 as varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by statute. For the fiscal year ended June 30, 2006, members contributed 9.35%. 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 1 % 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 28.21 % of earnable compensation. The City was required to contribute 28.21 % of earnable compensation of each member in 2006, 24.92% of earnable compensation in 2005. The contributions paid by the City for the years ended June 30, 2004, 2005, and 2006, were $1,335,065, $1,750,377, and $1,925,332 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. All employees, 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 26 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. 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 Plan members are required to contribute 3.70% of their annual covered salary and the City is required to contribute 5.75% of annual covered payroll. Contribution requirements are established by state statute. The City's contributions to IPERS for the years ended June 30, 2004, 2005, and 2006, were $1,240,324, $1,247,065, and $1,329,784 respectively, and were equal to the required contributions for each year. 12. Post-Employment Benefits All full-time employees who retire or become disabled are offered the following post-employment benefit options: Health insurance - The option of continuing with the City's health insurance plan at the individual's own cost. Life insurance - The option of converting the employee's City-paid policy from term insurance to whole life insurance at the individual's expense with the City's life insurance carrier. Long-term disability - 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. Therefore, a portion of the above coverage is being subsidized by the City and its current employees. However, the City cannot reasonably estimate the amount of this subsidy and it is being expensed as incurred by the City. 13. Landfill Closure and Postclosure Care Costs In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure 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 postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs as of June 30, 2006, is approximately $8,988,000, which is based on 72% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,513,000 will be recognized as closure and postclosure 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 postclosure care costs at June 30, 2006, was determined by engineers from Howard R. Green Company and approximated $12,379,000. 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, 2006. These amounts are based on an estimated postclosure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and postclosure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2006, the Sanitation Fund had $9,571,691 in related equity in pooled cash and investments, at fair value designated for satisfaction of postclosure 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 postclosure care costs, anticipated future inflation costs and additional costs that might arise from changes in postclosure 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. 14. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued four statements not yet implemented by the City. The statements, which might impact the City are as follows: Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans issued April 2004, will be effective for the City for the fiscal year ending June 30, 2008. This statement establishes uniform financial reporting standards for other postemployment benefit (OPEB) plans and supersedes the interim guidance included in Statement No. 26. This statement affects reporting by administrators or trustees of OPEB plan assets or by employers or sponsors that include OPEB plan assets as trust or agency funds in their financial reports. Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions issued June 2004, will be effective for the City for the fiscal year ending June 30, 2009. This statement establishes standards for the measurement, recognition, and display of (OPEB) expense/expenditures and related liabilities (assets), note disclosures and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. Statement No. 47, Accounting for Termination Benefits issued June 2005, establishes accounting standards for termination benefits. For termination benefits provided through an existing defined benefit OPEB plan, the provisions of this Statement should be implemented simultaneously with the requirements of Statement 45. Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues issued September 2006, will be effective for the fiscal year ending June 30, 2008. This statement establishes standards for transactions in which a government receives, or is entitled to, resources in exchange for future cash flows generated by collecting specific receivables or specific future revenues. It also establishes standards that apply to all intra-entity transfers of assets and future revenues. The City's management has not yet determined the effect these statements will have on the City's financial statements. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2006 15. Subsequent events On September 15, 2006 the City of Iowa City received and awarded capital loan notes for General Obligation Refunding Capital Loan Notes, Series 2006C in the amount of $3,350,000. The notes were issued to current refund, on September 22, 2006, $3,300,000 of the City's outstanding General Obligation Bonds, Series 1997 A, dated November 1, 1997. 68 69 City of Iowa City, Iowa Budgetary Comparison Schedule Budget and Actual - All Governmental Funds and Enterprise Funds - Budgetary Basis Required Supplementary Information For the Year Ended June 30, 2006 (dollar amounts expressed in thousands) Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property Tax $ 36,698 $ - $ 36,698 Tax increment financing taxes 976 976 Other city taxes 1,274 1,274 Licenses and permits 1,286 4 1,290 Intergovernmental 14,852 8,777 23,629 Charges for services 3,924 31,899 35,823 Use of money and property 1,694 2,561 4,255 Miscellaneous 2,645 1,781 4,426 Total revenues 63,349 45,022 108,371 Expenditures/Expenses: Public safety 16,187 16,187 Public works 9,625 9,625 Culture and recreation 9,450 9,450 Community and economic development 7,411 7,411 General government 6,471 6,471 Debt service 11,299 11,299 Capital outlay 12,971 12,971 Business-type 40,019 40,019 Total expenditures/expenses 73,414 40,019 113,433 Excess (deficiency) of revenues over (under) expenditures/expenses (10,065) 5,003 (5,062) Other financing sources, net 10,253 (2,588) 7,665 Net change in fund balances 188 2,415 2,603 Balances, beginning of year 37,364 71,233 108,597 Balances, end of year 37,552 73,648 111,200 See Note to Required Supplementary Information. 70 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 36,460 $ 36,460 $ 238 837 837 139 1,322 1,385 (111) 1,250 1,251 39 23,166 26,788 (3,159) 36,717 36,632 (809) 1,806 2,170 2,085 3,725 4,569 (143) 105,283 110,092 (1,721) 16,128 17,591 1,404 9,651 10,800 1,175 9,756 10,732 1,282 4,907 8,690 1,279 6,933 7,042 571 11,436 11,436 137 15,463 24,765 11,794 44,616 46,610 6,591 118,890 137,666 24,233 (13,607) (27,574) 22,512 8,949 9,189 (1,524) ( 4,658) (18,385) 20,988 97,984 107,960 93,326 89,575 71 City of Iowa City, Iowa Budgetary Comparison Schedule Budget to GAAP Reconciliation Required Supplementary Information For the Year Ended June 30, 2006 (dollar amounts expressed in thousands) Revenues Expenditures Net Other financing sources (uses) Beginning Fund Balances Ending Fund Balances Governmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis $ 63,349 $ (193) $ 63,156 73,414 (1,204) 72,210 (10,065) 1,011 (9,054) 10,253 (2,763) 7,490 $ 37,364 $ (3,847) $ 33,517 $ 37,552 $ (5,599) $ 31,953 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues $ 45,022 $ (6,119) $ 38,903 Expenditures 40,019 (5,835) 34,184 Net 5,003 (284 ) 4,719 Other financing sources (uses) (2,588) 9,986 7,398 Beginning Fund Balances 71,233 $ 129,521 200,754 Ending Fund Balances $ 73,648 $ 139,223 $ 212,871 See Note to Required Supplementary Information. 72 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2006 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 expenditures by $18,776,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects as well as changes necessitated by emergency protective measures, clean-up costs and uninsured losses from a tornado. 73 74 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: 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. 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: 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. 75 CITY OF lOW A CITY, lOW A COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2006 (amounts expressed in thousands) Capital Special Revenue Projects Other Johnson Shared County Revenue and Economic Council of Other Grants Development Governments Construction Total Assets Equity in pooled cash and investments $ 2,568 $ 557 $ 26 $ 693 $ 3,844 Receivables: Property tax 1 Accounts and unbilled usage 3 3 Interest 46 9 48 103 Notes 383 383 Due from other governments 421 37 186 644 Restricted assets: Equity in pooled cash and investments 4 9,258 9,262 Total assets $ 3,422 $ 567 $ 63 $ 10,188 $ 14,240 Liabilities and Fund Balances Liabilities: Accounts payable $ 6 $ $ $ 275 $ 281 Contracts payable 535 535 Accrued liabilities 4 17 1 22 Advances from other funds 247 247 Deferred revenue 383 136 519 Total liabilities 640 17 947 1,604 Fund balances: Reserved for: Encumbrances 273 273 Unreserved Designated for future improvements 8,968 8,968 U ndesignated 2,782 567 46 3,395 Total fund balances 2,782 567 46 9,241 12,636 Total liabilities and fund balances $ 3,422 $ 567 $ 63 $ 10,188 $ 14,240 76 CITY OF lOW A CITY, lOW A COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Capital Special Revenue Projects Other Johnson Shared County Revenue and Economic Council of Other Grants Development Governments Construction Total Revenues Property taxes $ $ 977 $ - $ - $ 977 Intergovernmental 5,391 500 251 853 6,995 Use of money and property 39 44 224 307 Miscellaneous 51 48 221 320 Total revenues 5,481 1,521 299 1,298 8,599 Expenditures Current: Public safety 17 17 Public works 2 72 74 Culture and recreation 217 217 Community and economic development 144 2,562 588 76 3,370 General government 87 87 Capital outlay 104 7 2,538 2,649 Total expenditures 250 2,562 595 3,007 6,414 Excess (deficiency) of revenues over (under) expenditures 5,231 ( 1 ,041 ) (296) (1,709) 2,185 Other Financing Sources (Uses) Issuance of bonds 6,265 6,265 Premium (discount) on issuance of bonds 35 35 Transfers in 228 294 667 1,189 Transfers out (7,195) ( 4,262) (11,457) Total other financing sources and (uses) (6,967) 294 2,705 (3,968) Net change in fund balances (1,736) ( 1 ,041 ) (2) 996 (1,783) Fund Balances, Beginning 4,518 1,608 48 8,245 14,419 Fund Balances, Ending $ 2,782 $ 567 $ 46 $ 9,241 $ 12,636 77 78 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: Parking Fund - accounts for the operation and maintenance of the "on" and "off' street public parking facilities. 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. 79 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2006 (amounts expressed in thousands) Cable Parking Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments $ 2,514 $ 78 $ 767 $ 862 $ 4,221 Receivables: Accounts and unbilled usage 152 65 164 381 Interest 81 2 11 12 106 Notes 225 225 Due from other governments 88 88 Total current assets 2,972 168 843 1,038 5,021 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 1,317 7 1,324 Capital assets: Land 3,938 8,034 2,130 14,102 Buildings 25,039 3,494 741 29,274 Improvements other than buildings 408 408 Machinery and equipment 404 184 127 106 821 Infrastructure 1,860 28,874 30,734 Accumulated depreciation (10,857) (2,981 ) (5,004) (206) (19,048) Construction in progress 142 1,489 1,631 Total noncurrent assets 19,983 12,495 26,127 641 59,246 Total assets 22,955 12,663 26,970 1,679 64,267 Liabilities Current liabilities: Accounts payable 37 15 2 55 Contracts payable 144 49 193 Accrued liabilities 132 8 6 46 192 Advances from other funds 1,224 1,224 Bonded debt payable (net of unamortized discounts) 645 645 Total current liabilities 958 1,296 8 47 2,309 Noncurrent liabilities: Liabilities payable from restricted assets: Interest payable 319 319 Deposits 4 9 13 Bonded debt payable (net of unamortized discounts) 10,308 10,308 Total noncurrent liabilities 10,631 9 10,640 Total liabilities 11,589 1,305 8 47 12,949 Net Assets Invested in capital assets, net of related debt 8,902 12,488 26,127 641 48,158 Restricted by bond ordinance 1,271 1,271 Restricted for future improvements 42 42 Unrestricted 1,151 (1,130) 835 991 1,847 Total net assets $ 11,366 $ 11,358 $ 26,962 $ 1,632 $ 51,318 80 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, 2006 (amounts expressed in thousands) Cable Parking Airport Stormwater Television Total Operating Revenues: Charges for services $ 3,936 $ 264 $ 597 $ 718 $ 5,515 Miscellaneous 82 9 1 1 93 Total operating revenues 4,018 273 598 719 5,608 Operating Expenses: Personal services 1,499 69 116 432 2,116 Commodities 101 59 20 19 199 Services and charges 780 218 136 82 1,216 2,380 346 272 533 3,531 Depreciation 819 162 545 37 1,563 Total operating expenses 3, 199 508 817 570 5,094 Operating income (loss) 819 (235) (219) 149 514 Nonoperating Revenues (Expenses): Gain on disposal of equipment 13 13 Interest income 143 3 27 31 204 Interest expense (656) (656) Total nonoperating revenues (expenses) (513) 16 27 31 ( 439) Income (loss) before transfers 306 (219) (192) 180 75 Capital contributions 1 , 125 468 1,593 Transfers in 243 674 917 Transfers out (200) (112) (163) (475) Change in net assets 106 1,149 838 17 2,110 Net Assets, Beginning 11,260 10,209 26,124 1,615 49,208 Net Assets, Ending $ 11,366 $ 11,358 $ 26,962 $ 1,632 $ 51,318 81 CITY OF lOW A CITY, lOW A COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Cable Parking Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users $ 3,989 $ 302 $ 592 $ 719 $ 5,602 Payments to suppliers (955) (270) (166) (103) (1,494) Payments to employees (1,484) (68) (116) (426) (2,094) Net cash flows from operating activities 1,550 (36) 310 190 2,014 Cash Flows From Noncapital Financing Activities Transfers from other funds 243 674 917 Transfers to other funds (200) (112) (163) (475) Repayment of advances from other funds (35) (35) Repayment of notes receivable 25 25 Net cash flows from noncapital financing activities (175) 208 562 (163) 432 Cash Flows From Capital and Related Financing Activities Capital grants received 1 , 125 1 , 125 Acquisition and construction of property and equipment (74) (1,255) (654) (2) (1,985) Proceeds from sale of property 13 13 Principal paid on bonded debt ( 616) ( 616) Interest paid on bonded debt ( 661 ) ( 661 ) Net cash flows from capital and related financing activities (1,351) ( 117) (654) (2) (2,124) Cash Flows From Investing Activities Interest on investments 109 2 21 27 159 Net increase (decrease) in cash and cash equivalents 133 57 239 52 481 Cash and Cash Equivalents, Beginning 3,698 28 528 810 5,064 Cash and Cash Equivalents, Ending $ 3,831 $ 85 $ 767 $ 862 $ 5,545 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $ 819 $ (235) $ (219) $ 149 $ 514 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 819 162 545 37 1,563 Changes in: Receivables: Accounts and unbilled usage (31) (6) (37) Due from other governments 29 29 Accounts payable (74) 7 (10) (2) (79) Accrued liabilities 15 1 6 22 Deposits 2 2 Total adjustments 731 199 529 41 1,500 Net cash flows from operating activities $ 1,550 $ (36) $ 310 $ 190 $ 2,014 Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others $ - $ 1 , 125 $ 468 $ - $ 1,593 82 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. 83 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2006 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments $ 4,311 $ 369 $ 5,067 $ 2,253 $ 12,000 Receivables: Interest 66 6 83 37 192 Due from other governments 38 38 Inventories 263 263 Total current assets 4,678 375 5,150 2,290 12,493 Noncurrent assets: Capital assets: Land 45 45 Buildings 578 253 831 Improvements other than buildings 50 50 Machinery and equipment 10,568 264 1,361 12,193 Infrastructure 940 940 Accumulated depreciation ( 6,897) (170) (1,121) (8,188) Total noncurrent assets 4,344 94 1,433 5,871 Total assets 9,022 469 5,150 3,723 18,364 Liabilities Accounts payable 123 6 521 19 669 Accrued liabilities 88 2 1,895 64 2,049 Total liabilities 211 8 2,416 83 2,718 Net Assets Invested in capital assets, net of related debt 4,344 94 1,433 5,871 Unrestricted 4,467 367 2,734 2,207 9,775 Total net assets $ 8,811 $ 461 $ 2,734 $ 3,640 $ 15,646 84 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, 2006 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services $ 3,615 $ 286 $ 6,837 $ 1,689 $ 12,427 Total operating revenues 3,615 286 6,837 1,689 12,427 Operating Expenses: Personal services 736 31 197 669 1,633 Commodities 1,483 15 60 342 1,900 Services and charges 247 204 7,082 533 8,066 2,466 250 7,339 1,544 11,599 Depreciation 1,074 34 234 1,342 Total operating expenses 3,540 284 7,339 1,778 12,941 Operating income (loss) 75 2 (502) (89) (514) Nonoperating Revenues (Expenses): Gain on disposal of equipment 60 4 64 Interest income 161 15 201 102 479 Total nonoperating revenues 221 15 201 106 543 Income before capital contributions Income before transfers 296 17 (301) 17 29 Transfers in 254 255 Transfers out (3) (3) Change in net assets 547 17 (301) 18 281 Net Assets, Beginning 8,264 444 3,035 3,622 15,365 Net Assets, Ending $ 8,811 $ 461 $ 2,734 $ 3,640 $ 15,646 85 CITY OF lOW A CITY, lOW A COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users $ 3,623 $ 286 $ 6,933 $ 1,689 $ 12,531 Payments to suppliers (1,818) (215) (7,085) (909) (10,027) Payments to employees (723) (31) 189 (655) (1,220) Net cash flows from operating activities 1,082 40 37 125 1,284 Cash Flows From Noncapital Financing Activities Transfers from other funds 254 255 Operating transfers to other funds (3) (3) Net cash flows from noncapital financing activities 251 252 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (918) (12) (18) (948) Proceeds from sale of property 60 4 64 Net cash flows from capital and related financing activities (858) (12) (14) (884) Cash Flows From Investing Activities Interest on investments 137 12 166 89 404 Net increase in cash and cash equivalents 612 40 203 201 1,056 Cash and Cash Equivalents, Beginning 3,699 329 4,864 2,052 10,944 Cash and Cash Equivalents, Ending $ 4,311 $ 369 $ 5,067 $ 2,253 $ 12,000 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $ 75 $ 2 $ (502) $ (89) $ (514) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 1,074 34 234 1,342 Changes in: Receivables: Accounts and unbilled usage 96 96 Due from other governments 8 8 Inventories (23) (23) Accounts payable (65) 4 57 (34) (38) Accrued liabilities 13 386 14 413 Total adjustments 1,007 38 539 214 1,798 Net cash flows from operating activities $ 1,082 $ 40 $ 37 $ 125 $ 1,284 86 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. Parks and Recreation Foundation - accounts for donations that are received for park improvements. P A TV - accounts for investments made on behalf of Public Access Television. 87 CITY OF IOWA CITY , IOWA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Balance Balance July 1, 2005 Increases Decreases June 30, 2006 Project Green Assets Equity in pooled cash and investments $ 203 $ 99 $ 61 $ 241 Interest receivable 2 4 2 4 Total assets $ 205 $ 103 $ 63 $ 245 Liabilities Accounts payable $ 6 $ 54 $ 6 $ 54 Due to agency 199 49 57 191 Total liabilities $ 205 $ 103 $ 63 $ 245 Library Foundation Assets Equity in pooled cash and investments $ - $ 2 $ - $ 2 Accounts receivable 16 4 16 4 $ 16 $ 6 $ 16 $ 6 Liabilities Accounts payable $ 12 $ 1 $ 12 $ 1 Accrued liabilities 3 4 3 4 Due to agency 1 1 1 1 Total liabilities $ 16 $ 6 $ 16 $ 6 Parks and Recreation Foundation Assets Equity in pooled cash and investments $ 51 $ 1 $ - $ 52 Interest receivable $ - $ 1 $ - $ 1 Total assets $ 51 $ 2 $ - $ 53 Liabilities Accounts payable $ 51 $ 2 $ - $ 53 (continued) 88 CITY OF IOWA CITY , IOWA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (continued) AGENCY FUNDS For the Year Ended June 30, 2006 (amounts expressed in thousands) Balance Balance July 1, 2005 Increases Decreases June 30, 2006 PATV Assets Equity in pooled cash and investments $ 99 $ 115 $ 98 $ 116 Interest receivable 1 2 1 2 $ 100 $ 117 $ 99 $ 118 Liabilities Due to agency $ 100 $ 117 $ 99 $ 118 Total Agency Funds Assets Equity in pooled cash and investments $ 353 $ 217 $ 159 $ 411 Accounts receivable 16 4 16 4 Interest receivable 3 7 3 7 Total assets $ 372 $ 228 $ 178 $ 422 Liabilities Accounts payable $ 69 $ 57 $ 18 $ 108 Accrued liabilities 3 4 3 4 Due to agency 300 167 157 310 Total liabilities $ 372 $ 228 $ 178 $ 422 89 90 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 93 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 98 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 103 These schedules present information to help the reader assess the afford ability 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 111 These schedule offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 114 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. 91 92 CITY OF lOW A CITY, lOW A NET ASSETS BY COMPONENT Last Four Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt $ 73,447 $ 67,090 $ 84,768 $ 95,227 Restricted 22,499 17,705 16,973 6,852 Unrestricted 16,926 11 ,700 3,793 10,827 Total governmental activities net assets $ 112,872 $ 96,495 $ 105,534 $ 112,906 Business-type activities Invested in capital assets, net of related debt $ 111,487 $ 150,817 $ 150,797 $ 155,346 Restricted 24,420 14,932 15,038 15,682 Unrestricted 33,339 36,246 40,780 42,988 Total business-type activites net assets $ 169,246 $ 201,995 $ 206,615 $ 214,016 Primary government Invested in capital assets, net of related debt $ 184,934 $ 217,907 $ 235,565 $ 250,573 Restricted 46,919 32,637 32,011 22,534 Unrestricted 50,265 47,946 44,573 53,815 Total primary government net assets $ 282,118 $ 298,490 $ 312,149 $ 326,922 93 CITY OF IOWA CITY, IOWA CHANGES IN NET ASSETS Last Four Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 Expenses Governmental activities: Public Safety $ 13,844 $ 15,015 $ 15,286 $ 16,690 Public Works 11,539 10,423 11,521 12,723 Culture and recreation 10,131 12,051 11,341 11,458 Community and economic development 3,133 2,580 6,960 6,264 General government 6,251 6,527 6,500 6,892 Debt Service 3,662 3,440 3,602 3,404 Total governmental activities expenses 48,560 50,036 55,210 57,431 Business-type activities: Wastewater 12,086 12,344 12,214 11,710 Water 7,861 8,011 8,313 9,324 Sanitation 4,082 6,103 6,031 6,101 Housing Authority 6,519 7,219 7,466 7,026 Parking 3,554 3,898 3,989 3,884 Airport 431 515 520 512 Stormwater 652 1,452 817 Cable Television 687 549 607 576 Total business-type activities expenses 35,220 39,291 40,592 39,950 Total primary government expenses $ 83,780 $ 89,327 $ 95,802 $ 97,381 Program Revenues Governmental activities: Charges for services $ 6,378 $ 6,102 $ 6,139 $ 6,296 Operating grants and contributions 2,965 2,150 2,592 2,937 Capital grants and contributions 2,205 6,198 7,679 3,849 Total governmental activities program revenues 11,548 14,450 16,410 13,082 Business-type activities: Charges for services: Wastewater 12,445 12,580 12,145 12,145 Water 9,677 9, 164 8,602 9,012 Sanitation 6,531 7,111 7,154 7,133 Housing Authority 221 219 181 168 Parking 3,636 4,011 4,045 3,936 Airport 180 213 220 264 Stormwater 104 592 597 Cable Television 298 673 708 718 Capital grants and contributions: Wastewater 1,077 968 761 773 Capital grants and contributions: Water 640 452 588 606 Capital grants and contributions: Sanitation 46 Capital grants and contributions: Airport 116 283 1 , 125 Capital grants and contributions: Stormwater 717 755 468 Operating grants and contributions: Housing Authority 6,291 6,950 7,012 7,414 Operating grants and contributions: Water 131 Operating grants and contributions: Airport 36 Operating grants and contributions: Sanitation 201 9 3 Total business-type activities program revenues 41,364 43,287 43,046 44,408 Total primary government revenues $ 52,912 $ 57,737 $ 59,456 $ 57,490 ( continued) 94 CITY OF IOWA CITY, IOWA CHANGES IN NET ASSETS (continued) Last Four Fiscal Years (Accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 Net (Expense) / Revenues Governmental activities $ (37,012) $ (35,586) $ (38,800) $ ( 44,349) Business-type activities 6, 144 3,996 2,454 4,458 Total primary government net expense $ (30,868) $ (31,590) $ (36,346) $ (39,891) General Revenues and Other Changes in Net Assets Governmental activities: General revenues: Property taxes $ 32,257 $ 34,173 $ 35,327 $ 37,770 Road use tax 5, 144 5,311 5,269 5,303 Other taxes 1,399 1,609 1,351 1,240 Earnings on investments 1,207 1,056 1,576 2,678 Miscellaneous 3,174 3,746 3,994 4,422 Gain on sale of assets (1,726) 65 95 100 Transfers 1,444 (1,840) 645 208 Total governmental activities 42,899 44,120 48,257 51,721 Business-type activities: General revenues: Earnings on investments 1,305 991 1,771 2,575 Gain on sale of assets 315 1,009 304 185 Miscellaneous 994 335 418 391 Transfers (1,444) 1,840 ( 645) (208) Total business-type activities 1,170 4,175 1,848 2,943 Total primary government $ 44,069 $ 48,295 $ 50,105 $ 54,664 Change in Net Assets Governmental activites $ 5,887 $ 8,534 $ 9,457 $ 7,372 Business-type activites 7,314 8,171 4,302 7,401 Total primary government $ 13,201 $ 16,705 $ 13,759 $ 14,773 95 CITY OF lOW A CITY, lOW A FUND BALANCES, GOVERNMENTAL FUNDS Last Four Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 General Fund Reserved $ 1,094 $ 396 $ 362 $ 570 Unreserved 13,012 14,301 15,525 16,551 Total general fund $ 14,106 $ 14,697 $ 15,887 $ 17,121 All other Governmental Funds Reserved $ 11,536 $ 1,677 $ 2,198 $ 1,592 Designated for long-term debt 4,448 6,930 3,067 2,725 Unreserved, reported in: Special revenue funds 3,819 9,379 6,222 3,422 Captal proj ects funds 1 ,047 3,882 6,143 7,093 Total all other governmental funds $ 20,850 $ 21,868 $ 17,630 $ 14,832 96 CITY OF IOWA CITY, IOWA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Four Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 Revenues: Property taxes and assessments $ 31 ,966 $ 35,538 $ 36,677 $ 39,011 Licenses and permits 961 1,361 1,255 1,279 Intergovernmental 12,193 12,058 15,546 14,260 Charges for services 4,674 3,240 3,301 2,227 Use of money and property 997 1,002 1,354 2,203 Miscellaneous 2,558 4,377 4,121 4,176 Total governmental activities expenses $ 53,349 $ 57,576 $ 62,254 $ 63,156 Expenditures Current Public safety $ 13,115 $ 14,025 $ 14,601 $ 15,819 Public works 8,149 9,156 9,698 10,351 Culture and recreation 8,061 9,392 9,183 10, 122 Community and economic development 3,715 3,486 6,375 4,698 General government 5,887 6,080 6,282 6,510 Debt service Principal 4,742 5,172 9,349 6,099 Interest 3,683 3,336 3,676 3,458 Capital projects 20,095 16,065 13,939 15,153 Total expenditures $ 67,447 $ 66,712 $ 73,103 $ 72,210 Excess (deficiency) of revenues over (under) expenditures $ (14,098) $ (9,136) $ (10,849) $ (9,054) Other financing sources (uses): Issuance of long-term debt $ 10,600 $ 12,875 $ 7,020 $ 7,265 Sale of capital assets 384 406 109 Issuance of note payable 211 Premium (discount) on issuance of bonds 93 (19) 43 29 Payment of refunded bonds (6,415) Transfers in 15,172 14,614 15,776 21,627 Transfers out (14,554 ) (16,733) (15,237) (21,540) Total other financing sources (uses) $ 4,896 $ 11,121 $ 8,219 $ 7,490 Net change in fund balances $ (9,202) $ 1,985 $ (2,630) $ (1,564 ) Debt service as a percentage of noncapital expenditures 17.8% 16.8% 22.0% 16.7% 97 CITY OF lOW A CITY, lOW A GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Property Tax Road Use Tax Hotel/Motel Tax Total 1997 $ 19,659 $ 4,253 $ 427 $ 24,339 1998 20,635 4,087 501 25,223 1999 22,153 4,575 570 27,298 2000 24,271 4,928 554 29,753 2001 27,071 4,852 497 32,420 2002 28,623 5,077 646 34,346 2003 31 ,966 5,103 559 37,628 2004 35,538 5,311 580 41,429 2005 36,677 5,269 611 42,557 2006 39,011 5,303 674 44,988 98 CITY OF IOWA CITY, IOWA ASSESSED AND TAXABLE VALUE OF PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Taxable Property Fiscal Assessed Value/ Total Taxable Total Year Ended Estimated Exempt Assessed Direct June 30 Actual Value Property Value Value Tax Rate 1997 $ 2,373,523 $ 114,154 $ 2,259,369 $ 12.653 1998 2,423,557 123,068 $ 2,300,489 13.050 1999 2,597,827 128,115 2,469,712 13.133 2000 2,699,944 136,493 2,563,451 13.851 2001 2,920,580 137,713 2,782,867 14.757 2002 2,975,254 152,991 2,822,263 14.850 2003 3,214,973 155,407 3,059,566 16.813 2004 3,322,001 176,188 3,145,813 17.596 2005 3,829,754 181,186 3,648,568 17.314 2006 3,946,328 183,799 3,762,529 17.729 Source: City of Iowa City Assessor's Office Notes: Property is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real and tangible personal property subject to taxation shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value, and the value so assessed shall be taken and considered as the assessed value and taxable value of the property upon which the levy shall be made. Taxable property includes real property, buildings and structures, industrial plant and fixtures, commercial equipment assessed as real property and utilities distribution property. Exempt property includes all property that is owned by religious and educational institutions, charitable and benevolent societies, low-rent housing and associations for war veterans. Each must apply for property tax exempt status with the City Assessor, who determines if the property qualifies under state guidelines. Exempt property is assessed each year like other taxable property. Property owned by governmental entities is not taxable and is not included in "Exempt Property. 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"c ~ ~ Q o "C ~ ~ ~] o ~ ~N I rI'1 ~ rI'1 = ~~ rI'1 ~ ~> ~ ]1 s~ \D N N fA- o o o ~ ('f") t- tr) ('f") o \D" ('f") ~ fA- ('f") ~ \D fA- ~ ~ ~ ~ ~ fA- o 0\ ('f") ~ ('f") fA- ('f") N lrl ('f") t- ('f") N fA- t- 0\ 0\ ~ tr) ('f") ('f") o o o ~ N ('f") 00 \D tr) ~ o N \D ~ \D ('f") o 0\ o N tr) t- \D ~ ~ t- tr) lrl ('f") N ~ N 00 0\ 0\ ~ 104 0\ ~ ~ o o o ~ 0\ ('f") o ~ \D 00 0\ v;) N t- ~ ('f") N ('f") 00 00 ~ tr) \D ~ v;) ~ t- N 00 ~ 0\ tr) N 0\ 0\ 0\ ~ ('f") o ~ o o o ~ 00 0\ 00 \D ('f") N ~ N N 0\ ~ N \D t- v;) ~ o 0\ ~ ~ ~ ~ ~ 0\ 0\ 0\ \D N o o o N ('f") ~ t- o o o ~ N 00 tr) ~ ('f") o N v;) ~ ~ 0\ ~ 00 \D 00 ~ ~ tr) \D tr) ~ \D o 00 If) o N 0\ N ~ o o N ('f") tr) ~ ~ o o o ~ N ~ ~ N tr) ('f") t-" ~ t- ~ \D ~ ~ \D 0" ('f") ~ o \D N tr) 00 ~ tr) N" If) t- 0\ N N o o N t- t- o" o o o ~ o 0\ o N ('f") 0\ ~ ~ \D 00 ~ ~ ~ 0\ tr) ('f") ~ ~ o o 0" ('f") 00 ('f") t- 0\ ~ ~ N" ('f") ('f") o o N 00 0\ 0" o o o ~ N \D o N tr) ~ lrl 00 \D o ('f") 0\ v;) o ~ \D 0\ tr) 00 0" tr) 00 ~ o o N N ('f") ('f") ~ o o N tr) 00 ~ ~ o o o ~ ~ ('f") 0\ ~ 00 ~ 0\" ('f") t- t- \D 0" ('f") If) t- N" 00 o 0\ N tr) 00 ~ If) t- 0\ N 00 ('f") tr) o o N o o N" o o o ~ N ~ 0\ ~ \D If) ~" If) t- tr) N t- N 0\ t- oo v;) o \D 0" tr) 00 o .~ ~ o 'JJ -~ o 'JJ ~ ~ 'JJ ~ ~ ~ >-a +-- o ro ~ o ~ 'JJ ~ "'d 0 Q >-a o +-- ~o S 0 .~ ~ ~ +-- ~~ ~~ O"'d ca ~ ~ ~ .~ ~ 5 :0 o d 0 Z ~ N 00 N ('f") v;) ~ 0\" ('f") o b1) ro ~ Q o "'d Q ::J c.8 o ~ Q ro u ro +-- ro "'d Q .9 +-- ro ~ ~ o ~ ~ \D o o N CITY OF IOWA CITY, IOWA RA TIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURESl Last Ten Fiscal Years (amounts expressed in thousands) Total General Fiscal Year Governmental Ended Total Expenditures .J une 30 Princioal Interest Debt Service and Transfers 1997 $ 1,499 $ 464 $ 1,963 $ 45,690 1998 1,988 739 2,727 47,311 1999 2,452 1,038 3,490 45,851 2000 2,918 1,360 4,278 52,727 2001 3,541 1,763 5,304 53,898 2002 3,599 2,136 5,735 53,462 20032 4,742 3,683 8,425 82,001 2004 5,172 3,336 8,508 83,445 2005 9,349 3,676 13,025 88,342 2006 6,099 3,458 9,557 93,360 Notes: lOeneral Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. 105 Ratio of Debt Service to General Exoenditures .04 : 1.00 .06 : 1.00 .08 : 1.00 .08 : 1.00 .10 : 1.00 .11 : 1.00 .10 : 1.00 .10 : 1.00 .15 : 1.00 .10 : 1.00 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2006 (amounts expressed in thousands, except per capita) Name of Governmental Unit Amount Total General % Applicable Applicable Long- Term to the to the Bonded Debt City of City of Outstandin2 Iowa City Iowa City Per Capita $ 85,060 100.00% $ 85,060 $ 1,367 City of Iowa City Iowa City Community School District Total $ 20,857 105,917 $ 334 1,702 $ 34,080 119, 140 61.20% Per capita assessed value $ 62,753 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. 106 ~ ~ o ~ ~" ~ ~ u ~ ~ o ~ ~ o ~ ~ ~ u z o ~ ~ ~ ~ ~ o ~ z ~ z ~ ~ ~ ~ ~ ~ ~ ~ Q ~ ~ ~ ~ ~ r.rJ ~ C) ~ ~ ~ ti: ~ C) E-- ....... r.rJ ro ~ ~ .-d ~ cIj ~ o oS .S '"d ~ (l) ~ 0.. >< (l) VJ ~ ;::::l o S ~ ~I ~I ~I ~I ~I ~ ~ QJ ~ -; ~ V'J ~ ~I ~I ~I ~I ~I o ('f') \0 '>D 00 ........ f:F7 0'\ ""'" t- O ~ f:F7 ('f') \0 t- OO :::!: f:F7 0'\ N o '>D :::!: f:F7 t- 0'\ 0'\ ~ ~ f:F7 ........ 0'\ 00 0\ ~ f:F7 00 ~ ........ ~ f:F7 \0 t- \0 00 ........ ........ f:F7 00 tn N 0\ 8 f:F7 \0 N ('f') r-: 8 f:F7 ....... 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'S .~ ~ ~.:o ;::::l (l) ~Q > .8 '"d (l) ~ ~ ~ .~ ~]: ~~~ .9 a .:0 ~~c3 ~ > ~ b '@1 '"d tn ~ cIj ~ ;::::l ::s r.rJ ....... 0 ....... ~ 'S s i5 ~~~Q ~.:o~1n a (l) (l) (l) E--Q~~ 107 ~ ;::::l ~ > b ~ (l) 0.. o ~ 0.. '"d ~ ~ cIj ~ B 4--< o ~ (l) u ~ (l) 0.. If) '"d (l) (l) u >< (l) a ~ '"d ""5 o ~ .:0 (l) '"d ~ .9 ~ .~ :0 o ~ ~ (l) ~ (l) OJ) OJ) ~ :.0 ~ ~ 'S o VJ b 'u (l) oS ~ '"d o u cIj ~ ~ ~ (l) '"d ~ ~ Q; ...... Q Z 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ,..... = 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ .- 0 0 0 0 Or- Or- Or- Or- 0 0 0 0 0 Or- 0 0 Or- 0 ~"'C 0 0 0 0 tr) tn tn tn 0 0 0 0 0 tr) 0 0 tn 0 .- = 0\ \0 ~ 0\ \0 0\ \0 tn \0 0\ \0 \0 0 0'\ 0\ 0\ 00 \0 ~ ~ = ...... Nr- Or- 0\ t-r- ""'" 0\ N Nr- N Vl Nr- O\r- ""'" 0'\ ~ Nr- Nr- \0 .- r:I:J. tr) tn ...0 0\ N ~ ~ 0\ N tr) 0\ ~ 0 ...0 tr) ~ ~ - ...... ~ = 00 00 t- \0 \0 tn ""'" ~ ~ N ~ ~ ~ 0 fFj- ""'" ~ 00 \0 \0 t- ""'" 0\ t- N 0 0 ~ 0\ 00 ~ \0 tr) 00 ~ 00 N \0 0 0 C\ ~ 0 N ~ t-r- Nr- Nr- tn \0 N ""'" 0 Or- ~ - = ~ N 0 t- ~ t- O N ~ ~ 0 tn ~ ~ = ...... ~ N 0 t- t- \0 \0 tn N ~ ~ ~ r--.. ~ ~ Nr- Nr- 00 t- t- t- t- t- t- t- ~ ~ ~ ~ ~ =\ ~ ~ ~ ~ fFj- f:F7 0 tn In ~ 0 N ~ bll 0\ Vl ~ = = 0 00 =\ .- = ~ ~ ~ ~ ~ ~ ~ .--.. - ~ ~ ~ \C r:I:J. ~ '-' ~ ~ ~ ~ ~ Q ~ - ~ = fFj- f:F7 == 0 U 00. ~ ""'" \C 00. bll 0\ 00 r--.. = ~ ~ 0\ ~ ~ .- - = N =- "'C ~ = t- ~ = ~ ~ t- t- In ~ = ~ ~ ~ ~ ~ ~ ~ 00. ~ < ~ ~ ~ ~ < fFj- f:F7 0 ~ 0\ 0 0\ ""'" ""'" ~ \0 ~ ~ tr) 0 00 ~ 0 0 0 Q ~ ~ ~ 00 ~ tn N 00 N N 0 0 \0 \0 N ~ 0 0 tn ~ ~ ~ \0 t- ~ \Or- ""'"r- \Or- \0 N t-r- N Vl ~ ~ 0 Or- t-r- ~ < ~ ~ N 0 ~ t- ~ ~ N 0 0\ ~ t- O t- N ~ tn =\ ~ ~ = 0 ~ ~ ""'" 0 tn ~ \0 ""'" ~ \0 00 tn 00 00 00 ~ ~ Z ~ = Nr- 00 ~ Or- O\r- 00 00 ""'" 00 N Nr- Nr- Nr- ""'"r- ""'"r- ""'"r- In U ...... Z - ~ 0\ 0\ 0\ 0\ 00 00 00 ~ ...0 ...0 tn ~ ~ ~ ~ ~ =- ~ ~ < < ~~ Q ~ o ~ ~ ~ - 0 ~ ~ ~ ~ fFj- f:F7 ~ Q 0 Z 00 N 0 ~ ~ 0 00 ~ ~ tr) 0 00 \0 ""'" ""'" 0 tn 0 ~ ~ 0 N tn ~ ""'" 0\ \0 ~ 0\ ""'" 0 tn ~ ""'" ~ 00 0\ \0 ""'" ~ Nr- 00 00 ~ Nr- 00 ~ Nr- 0 \Or- Nr- ""'" 0 ""'"r- ~ ""'"r- t-r- \Or- ~ ~ ~ 0 0 N N N ...0 ...0 ~ ~ ~ 0\ 00 t- ~ 0\ t- ~ ~ tn ~ tn u ~I t- t- O 0\ ""'" 0\ ""'" t- ""'" 0\ t- t- ~ \0 \0 t- 0\ 0\ ~ < Nr- 00 \0 ""'" ~ N N 00 Nr- Vl Nr- N ~ ~ ~ ~ \0 \0 ~ C-' ~ ~ 0 0 0 0 0 00 00 t- \0 ~ ~ N N N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ fFj- f:F7 < ""'" ""'" ~ 00 N 0 ~ ~ 0 00 ~ ~ tr) 0 00 \0 0 tn 0 ~ ~ r:I:J. N tn ~ ""'" 0\ \0 ~ 0\ ""'" 0 tn ~ ""'" ~ 00 0\ \0 ""'" ~ ...... N 00 00 ~ Nr- 00 ~ N 0 \0 Nr- ""'" Or- ""'" ~ ""'" t-r- \Or- ~ Z = ...... ~ 0 N 0 N ~ N ~ N ...0 ...0 0 ryJ ~ r:I:J. 00 ~ ~ ~ 00 tn ~ e ~ 00 ""'" \0 t- t- \0 ~ 00 t- \0 t- ~ ~ tr) \0 t- \0 ~ \C C-' - t-r- t-""' ""'"r- ~ 00 tn N 00 Vl Nr- 0\ t- tn ~ N ~ \C ~ ~ N N N =\ ...... ~ ~ ~ ~ ~ ~ ~ ~ = ~ ~ ~ fFj- f:F7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q J Or- 0 0 Or- 0 0 0 Or- 0 0 0 0 Or- Or- 0 0"", 0"", 0 Q tr) 0 0 tr) 0 0 0 tn 0 0 0 0 tn tr) 0 tn tn 0 vr 0\ ~ ""'" N t- ~ ~ 0\ t- ~ 0 \0 0 0 0 0 N \0 In ""'"r- ~ ~ ~ ""'"r- t-r- Or- 0\ \0 ~ ~ Vl ""'"r- OO O\r- 0 \0 \0 In .- t- OO t- t- t- t- OO ...0 ...0 ...0 tn ~ ~ ~ ~ N ~ - C\ ~ fFj- f:F7 ,..... ~I \0 0 N ""'" \0 0 N ,..... ~ t- OO 0\ ~ ~ tr) t- OO 0'\ ~ ~ ~ ~ 0 0 0 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N ...... r:I:J. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .- N N N N N N N N N N N N N N N N N N ~ ~ 108 Fiscal Year Ended .T une 30 Revenue 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $ 3,338 $ 3,822 3,653 3,716 4,309 4,272 4,198 4,164 4,360 4,161 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $ 11,040 $ 11,066 11,362 11,872 12,824 12,501 13,000 12,947 12,600 12,798 1999 2000 2001 2002 2003 2004 2005 2006 $ 8,571 $ 9,626 10,629 10,179 10,241 10,627 9,287 9,918 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Exnenses1 Net Revenue A vailable for Debt Service Annual Debt Service.l Princinal 330 $ 390 415 455 485 510 375 395 305 320 Wastewater Treatment Revenue4 Interest Total 218 $ 195 168 139 836 746 715 687 663 645 2,923 $ 3,382 3,519 3,691 3,589 4,236 4,385 3,672 3,537 3,390 - $ 299 445 1,175 1,088 1,427 1,340 1,305 548 585 583 594 1,321 1,256 1,090 1,082 968 965 4,218 4,872 5,584 5,851 6,094 7,241 7,445 6,952 7,167 7,205 299 585 1,880 1,588 2,352 2,185 2,185 Note: lExcludes depreciation and interest. 2Includes principal and interest of revenue bonds only. 3parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. 4Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. SWater Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. Parkin2 Revenue3 1,950 $ 1,770 1,713 1,861 2,176 1,960 1,953 2,319 2,377 2,380 1,388 $ 2,052 1,940 1,855 2,133 2,312 2,245 1,845 1,983 1,781 2,739 $ 2,809 2,987 3,259 3,248 3,389 4,463 4,523 4,432 4,260 8,301 $ 8,257 8,375 8,613 9,576 9,112 8,537 8,424 8,168 8,538 Water Revenues 3,295 $ 3,384 3,410 3,428 4,361 4,360 4,783 5,722 5,276 $ 6,242 7,219 6,751 5,880 6,267 4,504 4,196 109 1,295 $ 1,490 2,065 2,160 2,505 3,005 3,060 3,280 3,630 3,815 - $ 140 705 500 925 845 880 Ratio of Covera2e 2.53 3.51 3.33 3.12 1.61 1.84 2.06 1.71 2.05 1.85 1.97 1.69 1.50 1.47 1.57 1.26 1.15 1.21 1.14 1.19 0.00 20.88 12.34 3.59 3.70 2.66 2.06 1.92 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 = 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 ...... 0 0" 0 0" 0 0" 0 0" 000 0" 0 0" 0 0" 0" 0" 0 0 0" ~ .- 0 0 0 0 v-}'Ov-}' 0 0 0 0 Q. 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'"d ~ ro ~ ~ Ofj ~ ~ :::J U 5 ~ u ;.... ~ o U ~ o ;.... ~ ~ ro ..0 U ro ~ ;.... ~ ~ ....... o ro ~ o ~ Q.I ...... o Z 113 CITY OF lOW A CITY, IOWA FULL- TIME EQUIV ALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full- Time Equivalent Employees as of June 30 1997 1998 1999 2000 2001 2002 Public Safety Police 82.5 88.25 90.75 96.25 96.25 97.25 Fire 52 52 52 52 52 58 Animal Shelter 5 5 5.44 5.5 5.5 5.5 Inspection Services 13 14.13 14.13 14.13 14.13 14.13 Public Works Public Works Admin 2 2 2 2 3 2 Engineering 9.5 11 11 10.6 11.6 13.6 Traffic Engineering 7 3.75 3.75 4.15 4.15 4.15 Streets 22.25 23 23 23.5 23.5 23.5 Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 Recreation 13 12.67 13.17 14.67 15.17 15.17 Parks 11 11.5 12 13 13 13 Forestry 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 CBD Maintenance 2 2.5 3 3 3 3 Library 37.25 38 38 40.25 40.25 41.25 Senior Center 5.5 5.5 5.5 6 6 6 Community and Economic Developmen 8.95 8.45 8.45 8.55 8.55 9.05 General Government City Council 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 City Clerk 4.5 4.5 4.5 5 4.5 4.5 City Attorney 6 6 6 6 6 6.6 Personnel 3 3 4 4 4 4 Finance 28.32 28.22 28.62 27.71 27.36 28.61 Government Buildings 3.75 4.08 4.08 4.08 4.97 4.96 Energy Conservation 0.5 0.5 0.5 0.5 0.5 0.5 Human Rights 1.5 2 2 2 2 2 Transit 48.5 49.5 48.75 48.25 48.25 48.5 Special Revenue Employee Benefits 0.38 0.38 0.38 0.45 0.45 0.4 CIP / Roads 7 6 7 Community Development 4.75 4.75 4.75 4.75 4.75 4.75 JCCOG 4.8 5.8 5.8 6.1 6.1 6.1 Library Development 2 1.5 1.5 1.5 1.5 1.5 Internal Service Funds Information Technology 5.5 5.5 5.5 7.95 7.5 7.5 Equipment 10.5 9.5 9.5 9.5 9.5 10.25 Central Services 1.6 1.7 1.7 2.1 2.25 0.75 Risk Management 1.59 1.59 1.59 1.56 1.46 1.26 Business- Type Activities Parking 27.5 27.5 30.5 30.5 37 37 Wastewater Treatment 25 28.3 30.3 25.3 25.3 26.3 Water 26.75 25.95 25.95 26.2 26.2 28.2 Sanitation 31 31 31 31.85 32.35 32.35 Airport 1.5 1.5 1.5 1.75 2 2 Cable television 3.6 4.6 4.75 5.25 5.25 5.25 Stormwater Housing Authority 12.75 10.75 11.75 10.75 12.5 12.5 Total 544.24 553.87 565.11 581.65 591.79 606.38 Source: City's Financial Plans. 114 Full- Time Equivalent Employees as of June 30 2003 2004 2005 2006 97.25 97.25 94.25 94.25 58 58 56 57 6 6 6 6 14.13 14.13 13.88 14.88 2 2 2 2 13.6 13.6 11.6 11.6 5.65 5.65 5.65 4.15 22 22 22 23.5 2 2 2 2 15.17 15.17 15.17 15.17 13 13 12 13 3 3 3 3 3 3 3 3 3 3 3 3 41.25 43.25 42.63 42.63 5.81 5.81 6.31 6.31 8.35 9.45 8.45 8.45 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6.6 6.6 4 4 4 4 28.61 28.61 26.61 26.75 4.96 4.96 4.96 4.96 0.5 0.5 0.5 0.5 2.5 2.5 2.5 2.5 48.5 48.5 50.5 50.5 0.34 0.34 0.34 0.39 7 7 3 2 5.45 5.35 4.35 4.35 6.1 6.1 6.1 6.6 1.5 1.5 0.8 1 7.5 7.5 8 11.75 11.25 11.26 11.25 11.26 0.75 0.75 0.75 0.75 1.33 1.33 1.32 1.38 31.5 31.5 32.75 32.75 26.3 27.3 27.3 25.5 30.7 31.7 31.7 32.5 32.35 32.35 34.35 33.85 2 2 2 1.6 6.19 6.19 6.19 6.19 0.5 12.5 12.5 12.75 13.25 605.64 610.65 599.56 605.37 115 < ~ o ~ ~" ~ ~ u < ~ o ~ ~ o ~ ~ ~ u z o ~ ~ u z p ~ ~ ~ 00 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E ~ ~ l--i ~ "'d u '-J ~ ro a) ~ ~ ~ QJ l--i ~ !Zl rjJ ~ ~ ;::::$ ;::::$ ~ ~ ;::::$ ;::::$ 'S ro = ...... ;::::$ ro Z Z Z Z 0 Z ro ~ ~ ro ~ 0 ~ !Zl 00 Z 119 120 /...~ EideBaill 'PM ~ ePAs & 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 AUDITING STANDARDS 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 30,2006, which collectively comprise the City's basic financial statements, and have issued our report thereon dated November 16, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to [mancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In plalll1ing and performing our audit, we considered the City's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of perfonning their assigned functions. We noted no ITlatters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 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 detennination 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. However, we noted a certain immaterial instance of noncompliance or other matters that is described in Part II of the accompanying Schedule of Findings and Questioned Costs. Comments involving statutory and other legal matters about the City's operations for the year ended June 30, 2006, are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City of Iowa City, Iowa. 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. 121 PEOPLE. PRINCIPLES. POSSIBiliTIES. www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 I Dubuque, Iowa 52002-2273 I Phone 563.556.1790 I Fax 563.557.7842 I EOE We noted certain matters that we reported to management of the City in a separate letter dated November 16, 2006. 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. This report 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. ~ iL~ Dubuque, Iowa November 16,2006 122 /~~ EideBaill 'jsM ePAs & BUSINESS ADVISORS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO 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 U.S. Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2006. 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 grant agreements 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, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance 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 on the City's compliance with those requirements. In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2006. Internal Control Over Compliance The 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 grant agreements applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. 123 PEOPLE. PRINCIPLES. POSSIBILITIES. www.eidebailly.com 3999 Pennsylvan ia Ave., Ste. 1 00 I Dubuque I Iowa 52002-2273 I Phone 563.556. 1 790 I Fax 563.557.7842 I EOE Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grant agreements caused by error or fraud that would be material in relation to a maj or federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 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. This report is not intended to be and should not be used by anyone other than these specified parties. 4 hLfJ Dubuque, Iowa November 16, 2006 124 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2006 125 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS (continued) YEAR ENDED JUNE 30, 2006 N/ A = Not Applicablt~ 126 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JlJNE 30, 2006 See notes to the Schedule of Expenditures of Federal Awards. 127 CITY OF IOWA CITY, IOWA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2006 NOTE 1. BASIS O.F PRESENTATION The accompanying Schedule of Expenditures of F ed era I Awards includes the federal grant activity of the City of Iowa City, Iowa, and is presented on the accrual basis of accounting. The infonnation on this schedule is presented in accordance with the requirements of 0 MB 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 Federal CFDA Number Amount Provided to Subrecipients Community Develop.ment Block Grants! Entitlement Grants 14.218 $ 70.1,113 Emergency Shelter G'rants Program 14.23 1 83,575 HOME Investment Partnerships Program 14.239 758,015 128 CITY OF IOW~t\ CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 Part I: Summary of the Independent Auditor's Results: (a) Unqualified opinions were issued on the financial statements. (b) No material weaknesses in internal control over financial reporting were noted. (c) The audit did not disclose any noncompliance which is material to the financial statements. (d) No material weaknesses in internal control over the major programs were noted. ( e) An unqualified .opinion was issued on compliance with requirements applicable to the major programs. (f) The audit disclosed no audit findings which were required to be reported in accordance with Office of Management and Budget Circular A-133, Section .51 O(a). (g) The major programs were: · CFDA 14.239 - HOME Investment Partnerships Program · CFDA 20.106 - Airport Improvement Program . CFDA 20.205 - Highway Planning and Construction (h) The dollar threshold used to distinguish between Type A and Type B programs was $387,629. (i) The City of Iowa City, Iowa, qualified as a low-risk auditee. Part II: Other Findin2s Related to ReQuired Statutory Reportio2: II-A-06 Certified Blldget - Disbursements at June 30, 2006, did not exceed the amount budgeted. However, Community and Economic Development expenditures exceeded budget amounts before the first budget amendment. Chapter 384.20 of the Code of Iowa states in part that public monies may not be expended or encumbered except under an annual or continuing appropriation. Recommendation - The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response - The budget will be amended in the future, if applicable. Conclusion - Response accepted. II-B-06 Ouestionable 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. II-C-06 Travel Expense - No expenditures of City money for travel expenses of spouses of City officials or employees vvere noted. 129 CITY OF IOW.A CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JID~E 30, 2006 Part II: Other Findin2s Related to Reauired Statutory ReDortio2: (continued) II-D-06 Business Transactions - Business transactions between the City and City officials or employees are detailed as follows: Name, Title, and I~usiness Connection Transaction Description Amount Dee Vande:rhoef, City Council Member, Supplies owner of Iowa Book and Supply $ 1,661 The above transaction does not appear to represent a conflict of interest since $168 of the total was entered into through competitive bidding in accordance with Chapter 362.5(4) of the Code of Iowa and the renlainder is less than $1,500 in accordance with Chapter 362.5(10). ll-E-06 Bond Cov~~rage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to insure the coverage is adequate for current operations. II-F-06 Council Minutes - No transactions were found that we believe should have been approved in the Council minutes but were not. II-G-06 Deposits alld Investments - No instances of noncompliance with the deposit and investment provisions lOf Chapters 12B and 12C of the Code of Iowa and the City's investment policy were noted. II-H-06 Revenue Bonds - We noted no instances of noncompliance with the provisions of the City's revenue bOlld resolutions. 130 rngc: 1 Vl "'t '/~ Onrel-i& ";tfNT;;:F.;:IUEN:l:~~ FO!'!MA'!'_, _-,...t:.-.:,. --.- SPO~SOltEO E'f < _ _. _ _ _ .11111'1;;:) J.UIA. .lJl;:)Q.Ulli;iU Ull'llUI. - l~'t,;VV lEIJt' ~('\U lork lEimt'$ (' : "j e .LJVc;l,Vl11;;;, l...It;;;,:Ul:7,UJ.Vl Disabled or Not January 7, 2007 NATIONAL PERSPECTIVES Design for Everyone, By USA CHAMBERLAIN ST. LOUIS SHARON M. BROWN cried tears of joy the first time she took a shower without assistance in her new apartment. She had not been able to do anything more by herself than take sponge baths since she was hit by a drunken driver six years ago, further complicating the multiple sclerosis that had been diagnosed years earlier. For someone who had once hiked 100 miles of the Appalachian Trail, she never thought taking a shower would be such a milestone. Ms. Brown's apartment building - which has bathrooms that are accessible to people in wheelchairs, including roll-in showers - is a milestone itself. The building, 6 North, opened in March 2005, and it was the first large-scale residential building in the country where all the units were built using what are called universal design principles. While building codes set a minimum standard regarding accessibility, universal design is a relatively new concept that seeks to go beyond those codes to make the built environment usable by all people without the need for adaptation. This might include kitchen islands with adjustable-height countertops, front-loading washers and dryers, roll-in showers, and no-step entrances, eliminating the need for ramps. But the important point, according to universal design advocates, is that it looks and feels like a normal apartment building. Rather than relying on designs that can segregate people according to their disability (impaired vision versus low mobility, for example), the intent of universal design is to create products and environments usable by as many people as possible, including people with no disabilities at all. 1/8/2007 http://www.nytimes.com/2007/01/07/realestate/07nati.html? J=3&oref=slogin&pagewanted=print&oref=slogin J:'age L. or 'I According to the Center for Universal Design at North Carolina State Universi.., universal design is increasingly available, but few if any other large-scale buildings have used the concept throughout an entire building. The term "universal design" was coined in 1989 by the architect Ron Mace, who developed a set of seven principles, like "low physical effort" and "simple and intuitive use." Mr. Mace founded the center, in Raleigh, before he died in 1998 to further develop and integrate the principles into everyday life. unes i 10lK lOT nveryon~, ulsaOleu or J'IO\ - r'lew ueSlgTI Colleen Starkloff and her husband, Max, who was paralyzed in a diving accident as a young man, wanted to build a national model of universal design. Through paraquad, a nonprofit organization they formed in 1970, they had been searching for a developer who would undertake a universal design project. It was 2003 when Richard D. Baron, the chairman and chief executive of McCormack Baron Salazar, a nationally known builder of mixed-income urban developments, contacted them with what he thought might be a potential site for the project. want " "He called me and said: 'I think I have a good site. How many units do you want to be universal design?' I said: 'Richard, I all of them to be universal design. That's the point: universal.' And he kind of hesitated and said, 'O.K., we'll make it work.' Associates, to create a mixed-use environment for nondisabled Mr. Baron hired Andrew Trivers, founding architect of Trivers people as well as people with a wide range of disabilities. The building is mixed-income as well; some renters pay market rates and others receive subsidies (one- and two-bedroom market-rate units range from $750 to $1,150 a month, while the cost of subsidized units depends on personal savings and Social Security income). In addition, there is a corner coffee bar, as well as ground-floor units that can either be retail spaces or private residences. The building, in a St. Louis neighborhood called the Central West End, is 95 percent leased, with only 20 units occupied by people with disabilities, which is fine by Ms. Starkloff. "The whole point is integration," she said. For Jacqueline Benoit, integration meant more than living next door to people without disabilities, but being able to live with and take care of her son Johnathan again. Ms. Benoit was on her way to work four years ago when a driver struck her car. After six months of intensive care, she was able to breath on her own again. But the accident left her partially paralyzed, and she was sent 1/8/2007 http://www.nytimes.com/2007/01/07 /realestate/07nati.html? J=3&oref=slogin&pagewanted=print&oref=slogin rage j or 'I Hrnes lorK lOr nveryone, UIsaOlea or l'Ior - l'Iew ueslgn relatives. Ms. Benoit and Johnathan, now 7, moved into a two-bedroom, two-bath apartment in 2005, which includes subtle design features like door handles instead of knobs for easier grasping, a dishwasher and oven that are set into the wall and raised about 18 inches off the ground (a usable height for people standing and sitting), and a stove with control knobs in front of the unit rather than toward the back. to nursing homes for three years while her son stayed with The design features make life more manageable for Ms. Benoit, but the building also offers something for Johnathan. "He loves the weight room," Ms. Benoit said. "We go together and I work on my arm. I'm happy to be alive and be able to take care'of my son." Before designing 6 North, Mr. Trivers had never used universal design principles, but now he is a convert. "This is the future," he said. "People are living longer and because of health care technology, they aren't dying from accidents and disabilities the way they used to. So the question is, how do you design so it doesn't look like it is for or is only usable by someone with a specialized need?" Richard C. Duncan, the senior project manager for the Center for Universal Design, said: "Most people think U.D. is a term that is synonym with accessible design. But it has this other element that is different: a social equity component. That is an invisible part of the product. "So, for example, a ramp is very difficult to integrate into the design of abuilding," he continued. "We advocate for entrances that are step free, that everyone can use, whether you have a problem with stairs or you're just carrying packages." Mr. Duncan toured 6 North when it opened with other disability advocates and developers, and said the building was serving as a model. "And that is progress because what we don't want are one-off projects, but full integration," he said. Most "handicapped accessible" buildings, he also pointed out, have two different apartment designs: "normal" units and accessible units for people with disabilities. "And neither are in fact very user friendly, " he said. "The point of universal design is integration of design principles into all aspects of the built environment so as not to be obvious for one or another." 1/8/2007 http://www.nytimes.coml2007/01/07/rea1estatel07nati.html? _r=3&oref=slogin&pagewanted=print&oref=slogin Page 4 ot 4 For instance, at 6 North, what looks like interior decoration is actually intentionally contrasting colors to allow people with limited vision to navigate the space. In the hallways, carpeting in front of apartment entrances is darker to signal the door's location. Next to each entryway is a small shelf, which looks like a nice design detail but is also a handy spot for people to put down mail or packages while they open the door. This is, of course, equally convenient for a parent carrying a baby or people with partial paralysis. I UfK. 1 rmes JJC;;:~t1~1l1Vl LVvlYUllC, Ul:SUUlCU UI" l'llUL - l"4~W Jacquelyn Kish is one such person with partial paralysis, the result of a brain aneurysm and stroke she suffered 18 months ago. She moved into 6 North recently in order to resume rescuing injured or abandoned animals, which she was forced to give up when she was in a nursing home and lost her house as a result. was Kish said while petting one of her rescued cats. "But I "I was told I shouldn't leave the nursing home until I could walk," Ms. determined to live on my own again. I can do that here." "Being able to take care of As for Ms. Brown, living independently is more important than having hiked on the Appalachian Trail. yourself - you don't appreciate that until you're told you can no longer do it," she said. 1/8/2007 OIJlJ;!.D..nY Contact U. I Work for U. I Site MaD http://www.nytimes.com/2007 /01/07 /rea1estate/07nati.html? _r=3&oref=slogin&pagewanted=print&oref=slogin I:JIDJ1 First Book CODvriahUllJlI The Now Y Corrections RSSj Search prtvacv Pollcv DRAFT (][) MINUTES IOWA CITY BOARD OF APPEALS MONDAY, DECEMBER 4,2006 EMMA J. HARVAT HALL, IOWA CITY CITY HALL 410 E. WASHINGTON STREET IOWA CITY, IA MEMBERS PRESENT: John Roffman, Tim Fehr, Steve Buckman, Chad Campion, Alan Gerard, Doug DuCharme, Gary Haman MEMBERS ABSENT: None STAFF PRESENT: Doug Boothroy (H.1. S. Director), Tim Hennes (Sr. Building Inspector), Roger Jensen (Fire Marshal), Andy Rocca (Fire Chief), Sue Dulek (Asst. City Attorney), Jann Ream (Code Enforcement Asst. acting as minute taker) OTHERS PRESENT: Leah Cohen (Bo James) and Rebecca Neades (Chamber of Commerce) RECOMMENDATIONS TO COUNCIL: None. CALL TO ORDER: Chairperson Roffman called the meeting to order at 4:08 PM. CONSIDERATION OF MINUTES: Minutes from the September 26, 2006 meeting were reviewed. Minutes were approved with a unanimous vote 7-0. Discussion and possible recommendation to Council of an ordinance amendinq the International Fire Code and the International Buildinq Code to require new minimum thresholds for Iife-safetv standards in new and existinq A-2 occupancies. Doug Boothroy presented the basic issue to the Board. Because of life-safety concerns certain new requirements are being proposed for existing A-2 occupancies (primarily eating and drinking establishments). This proposal has been discussed with City Council and now is being presented to the Board for their consideration and, hopefully, favorable recommendation. These new requirements encompass three areas: exiting, fire alarms and sprinkling. A draft ordinance has been included in the meeting packet. While Council has not seen the specifics in the proposed ordinance, they have shared concerns about DRAFT various life-safety issues especially in older buildings in close proximity to each other such as in the downtown area. Boothroy was pleased that Council felt strongly enough about the issue that they have expressed interest in providing some sort of financial support. Since the issue would involve retrofitting existing buildings, staff is recommending that business and property owners be given time and financial support to help with the process of complying with additional life-safety standards. Fire Marshall Jensen explained the specifics of the proposed ordinance. All existing and new A2 occupancies with an occupant load of 100 or greater would be required to install a fire sprinkler system. This change is already reflected for new buildings (or a change in use) in the 2006 International Building Code and the 2006 International Fire Code. Amending the ordinance now would initiate the process for new occupancies and require the retrofitting of existing businesses. All existing and new A2 occupancies with an occupant load of 200 or greater and has amplified sound equipment would be required to install a voice alarm fire alarm system. With any alarm input, visual and auditory distractions such as loud music and laser lights would cease; the house lights would come up to an ambient level and prerecorded evacuation instructions would come over the sound system. Alternatively, a responsible party could get on a pre-specified microphone to give real time specific instructions. The third proposed change would require an increase in the width of the main entrance/exiting doors (new and existing) based on the occupant load - from 50% of the load to 66%. Jensen explained that investigation of fires that have involved fatalities in A2 occupancies show that people always try to exit out the door that they came in -even passing up closer exit doors. Jensen asked for questions from the Board. Haman asked how a person could use a microphone in an emergency situation if the voice alarm system shuts down all of the amplified sound. Jensen said there would be a special mike that a responsible party would know about that could still be used as well as the pre-recorded message. Buckman asked how the occupant load numbers of 100 for the required sprinkling and 200 for the voice alarm systems were determined. Jensen explained that the100 load number is what is in the 2006 IBC and IFC which are to be considered for adoption this year. The 200 load number for the alarm system was derived from actual surveys ofA2 occupancies. He also noted that the 2006 codes do not mandate retrofitting of existing occupancies. Discussion occurred as to how occupant loads are determined. Hennes explained that each occupancy is looked at individually - square footage, tables and chairs, bar and kitchen areas are all used in the calculation. Fehr asked for more clarification on what kind of financial assistance would be available. Boothroy stated that that would be a matter for City Council. He said several ideas were discussed at the informal meeting. Also the City would most likely do the water service upgrades in City Plaza as one project in order to minimize the disruption in the downtown area. Roffman asked if the proposal would go into effect for the whole of Iowa City at the same time. Boothroy said DRAFT that is correct. However, the initial outreach and compliance enforcement would start with those businesses perceived to be at the highest risk. Jensen added that in addition to the possibility of financial assistance, the City is also offering a reasonable time frame for these businesses to comply. The proposal allows five (5) years after adoption for compliance. The City will ask that by year four (4), a business has at least submitted approvable plans so that permits can be issued. Roffman had questions about the increase in the width of entrance/exit doors and how that related to ADA (Americans with Disabilities Act) requirements. He said that in existing buildings sometimes there simply isn't enough physical space to widen a doorway and meet ADA requirements. Hennes explained that if an entry/exit door is widened, it would have to be made ADA accessible and that there was usually a way to do that to the extent possible given the physical restrictions. Jensen added that sprinkling will help mitigate the widening of entry/exit doors. In other words, a sprinkled building will allow more people to exit through a narrower door. Roffman wondered how that related to real buildings in Iowa City. Jensen distributed a spread sheet that showed the existing A2 occupancies and door widths. Most occupancies currently exceed the minimum width required now -32 inches of clear opening. And, assuming sprinkling, most occupancies will not be required to widen doorways. There are some problem occupancies that are above or below grade that will have to be looked at. When a stairway is involved, the exiting width requirement increases. Roffman opened the meeting to public comment. Leah Cohen identified herself as the owner of BoJames and as the co-chair of the Iowa City Alcohol Advisory Board. She said it is important to see who will be affected by this ordinance and how it will affect them. Her main concern was the voice alarm system. She believes it is a $10-15,000 system. And this would be in addition to a $20-30,000 sprinkling system. She felt that the voice notifier alarm system had not been in actual use long enough to know how effective it really is. There are also liability concerns with the manual real time voice instructions in terms of keeping inebriated people from accessing it and giving incorrect instructions. Cohen felt that the system could not hook into the existing lighting system in a bar and so additional lighting would have to be added. She said they had been trying to address many of the safety concerns for buildings downtown that are in such close proximity and that this ordinance doesn't really address all of those issues and some business might fall through the cracks. Additionally, some businesses will be affected that don't need to be. She pointed out that most of these businesses are small businesses and the financial strain will be substantial especially since most of these businesses do not own the building they are situated in. They would be required to pay for substantial upgrades to buildings that they do not own and most of that investment would be left behind if the business closed. She said that so far the businesses have not been informed of the proposal - she was at this meeting to get information and see what direction the Board was going in. Obviously if the DRAFT Board continues with the proposal, all of the affected businesses would have to be informed. Campion wondered how the voice notifier system actually differed from what is currently being installed. Jensen stated that he had gone to the three main companies that install fire alarm systems in Iowa City and asked what the additional cost would be to add the voice component to a fire alarm system. Simplex Grinnell estimated it would add about $2,000 to the total cost of a standard alarm system. Midwest Alarm said it would add about $1860 and Freeman Alarm said it add about $2,000 to $2300. The installation of a standard fire alarm system would be required with the installation of the sprinkling system so the cost of the voice component would only be in addition to what already would be required. Campion also asked about where the microphone would be installed for the manual voice instructions in order to address the liability concerns of Cohen. Jensen answered that they would work with each business on a case by case basis to make sure that those microphones were in a secure location and not accessible to the general clientele. Rebecca Neades from the Chamber of Commerce reiterated that their greatest concerns were for the multi-level large establishments but that the proposed ordinance would also affect many small businesses. One of her largest concerns was for the cost to these small businesses. She emphasized that most of these businesses rent and the investment would be in buildings that they do not own. She said it is generous of the City to consider low or no interest loans but a loan is still a loan and, eventually, it has to be paid back. Safety is important but there is always a cost/benefit analysis and a balanced perspective is needed. She said they would be meeting with the general business population and that she was sure there would be many more questions brought up. She stated that the local government affairs committee would be meeting later in the month and that these issues would be discussed. They also invited staff and any members of the Board to attend to answer questions and make sure the facts are presented correctly. Fehr asked Jensen if any other jurisdictions had enacted similar requirements. Jensen answered that the Twin Cities had implemented them as well as many cities in the eastern half of the country. Boothroy addressed the Board to clarify that staff was not asking the Board to take any action at this meeting. Staff would be attending the Chamber meeting and would bring that feedback to the Board at the January rneeting. It will also give the Board time to talk to other people or ask staff for more information. Roffman stated that now with more information the Board would need to look through the data and think about the issues. The next meeting was tentatively scheduled for January 8th, 2007. Haman stated that he would be gone for that date. He wondered if was possible to get more firm details on the level on financial assistance that Council would provide before a decision was made. Boothroy stated that Council will probably not have those details worked out before a decision was made. DRAFT MOTION: Buckman moved to defer any recommendation concerning the proposed code changes until next meeting. Campion seconded. VOTE: The motion to defer was approved unanimously 7-0. OTHER BUSINESS: Buckman stated that his term was expiring at the end of December. Hennes said he had application papers for him if he was willing to serve a second term. ADJOURNMENT: Haman moved to adjourn the meeting. Gerard seconded. The meeting was adjourned at 5:15 PM. John Roffman, Board of Appeals Chairperson Date Board of Appeals Attendance Record 2006 NAME TERM EXPIRES Jan-06 Feb-06 Mar-06 Apr-06 Gary Haman 12/31/2007 X X NM NM Steve Buckman 12/31/2006 X X Doug DuCharme 12/31/2009 OlE OlE Tim Fehr 12/31/2008 X OlE John Roffman 12/31/2007 X X Chad Campion 12/31/2008 X X AI Gerard 12/31/2010 X X KEY X = present o = absent OlE = absent/excused NM = No meeting _ = not a member Board of Appeals Attendance Record 2006 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 NM NM NM NM OlE NM NM x x OlE x x x x x x x x x x ~ MINUTES IOWA CITY BOARD OF ADJUSTMENTS DECEMBER 13th, 2006 - 5:00 PM EMMA J HARVAT HALL -IOWA CITY/CITY HALL PRELIMINARY CALL TO ORDER: Carol Alexander called the meeting to order at 5:00 PM MEMBERS PRESENT: Michelle Shelangouski, Ned Wood, Michael Wright, Carol Alexander MEMBERS ABSENT: Karen Leigh STAFF PRESENT: Sarah Walz, Sarah Holecek OTHERS PRESENT: John Beasley RECOMMENDATION TO COUNCIL (become effective onlv after separate Council action): None CONSIDERATION OF THE NOVEMBER 16 and NOVEMBER 27, 2006 MINUTES Wright said that on page 15 of the November 16th minutes, one variance was written as VAR05-0001 instead of VAR06-00001. MOTION: Wood moved to approve the November 16 and November 27, 2006 minutes as submitted. Alexander seconded the motion. The motion was approved: 5:0 APPEALS APL06-0004 Discussion of an application from John Roffman for an appeal of the decision made by the Historic Preservation Commission to deny a Certificate of Appropriateness for a proposed building to be located in the Neighborhood Stabilization Residential (RNS-20) zone and Conservation District Overlay (OCD) zone at 923 Iowa Avenue. Walz noted the correspondence from the office of John Beasley, which was provided to the Board of Adjustment and stated Mr. Roffman's request for a rehearing regarding the appeal of the Historic Preservation Commission's denial of Mr. Roffman's request for a Certificate of Appropriateness. Alexander read the correspondence from Mr. Beasley out loud. Holocek noted the 2:2 vote from the November 16th Board of Adjustment meeting. Holecek said that those members of the Board who made the "No" vote may make the motion to reconsider the appeal. Holocek said that anyone on the Board may second the motion. Wood asked for clarification. Wood asked why Mr. Roffman's appeal proceeded if the applicant knew that the full Board of Adjustment wouldn't be there. Walz said that applicant did not know this. Walz said that while the Board knew that the full Board would not be present, the applicant did not know. MOTION: Wright moved that APL06-0004, discussion of an application from John Roffman for an appeal of the decision made by the Historic Preservation Commission to deny a Certificate of Appropriateness for a proposed building to be located in the Neighborhood Stabilization Residential (RNS-20) zone and Conservation District Overlay (OCD) zone at 923 Iowa Avenue, be approved. Wood seconded the motion. The motion was passed: 4:0 Board of Adjustment December 13, 2006 Page 2 OTHER Alexander asked about the new member of the Board of Adjustments. Walz informed the Board that the new members name is Edgar Thornton. Walz said that she has spoken with him on the phone but she has not met him person. Alexander asked if Thornton would be attending the January 10th Board meeting. Walz said yes. Shelangouski asked if there will there be new evidence regarding Roffman's appeal at the January 10th meeting. Holecek said that it is a new hearing so there can be new evidence. Beasley requested minutes be provided to Thornton before the next Board meeting. BOARD OF ADJUSTMENT INFORMATION None ADJOURNMENT Meeting is adjourned at 5: 15 pm s/pcd/minutes/boa/2006/12-13-2006.doc Board of Adjustment Attendance Record 2006 Term Name Expires 01/11 02/08 03/08 04/13 05/10 06/14 07/12 08/09 09/13 10/04 11/16 11/27 12/13 Karen Leieh 01/01/07 X X OlE X X X X X X X X X OlE Carol Alexander 01/01/08 X X X X X X X X X OlE X X X Michael Wril!ht 01/01/09 X X X X X X X OlE X X X X X Ned Wood 01/01/10 X X X X X X OlE X X X OlE OlE X M. Shelangouski 01/01/11 X X X X X OlE X X X X X X X Key: X = Present o = Absent OlE = AbsentlExcused NM = No Meeting MINUTES Iowa City Airport Commission December 14, 2006 Iowa City Airport Terminal- 5:45 PM U[] DRAFT Members Present: Randy Hartwig, Chair; John Staley; Janelle Rettig; Howard Horan, Greg Farris (arrived at 5:49) Staff Present: Sue Dulek, Michael Tharp Others Present: David Hughes, Earth Tech; Jay Honeck; Phillip Woolford, Jet Air; Rick Mascari DETERMINE QUORUM: Chairperson Hartwig called the meeting to order at 5:47 PM. RECOMMENDATIONS TO COUNCIL: Item B.a. - Aviation Commerce Park; Recommend to City Council to accept offer for Lot No.5 of the North Commerce Park, by IWI Motorparts. Item B.b. - Resolution amending listing agreement with Iowa Realty; Resolution A06-29 approved extending the listing agreement for one year and adopted the latest pricing model. Commission recommends City Council accept the proposed agreement amendment. APPROVAL OF MINUTES FROM THE NOVEMBER 9, 2006, MEETING: Hartwig noted that on the first page of the minutes, about halfWay down, where it says, "Hughes stated they did have maintained contact.. ." that this should be ".. . did maintain contact." Also noted was on page 2, under c.2., there it stated".. .he asked for a move. . . ", that this should be " . . . he asked for a motion." On page 3, 7 lines down, where it states "...Tharp stated that he spoke with Blum...", that it should have Blum's first name, Dick, added. Hartwig also noted that at the bottom of this same paragraph, where it states "Rettig asked the other Airport Commission members if they are all in consensus that they are not. . .", that this should state something to the effect that they are not interested in that entire parcel going to this. Rettig stated that perhaps it should say "commercial development" or "private commercial development on all 63 acres." Also, right above this, where it states". . . which Horan responded that he feels once the 7-25 project...", that the second "he feels" should be removed. Rettig noted that on page 4, where it says". . . Tharp stated that Roof does plan to hang up his maintenance shop plague," it should be reworded to say Roof closed his maintenance shop. Hartwig noted that "plague" is wrong, and he feels they could reword this to say "Roof discontinued his business." Rettig also noted on page 5, at the bottom under Commission Members' Reports, that it needs to be clarified that it is the University Gothic Tower that will be pink and blue, and not the Airport's tower. Staley noted that under J, Subcommittees' Reports, it states "Cleaning Committee," and he asked if this shouldn't be "Company." Staley moved to accept the minutes ofthe November 9, 2006 meeting as amended; seconded by Horan. Motion carried 5-0. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: A. FAA/lOOT Projects - Earth Tech - David Hughes a. Runway 7/25 - Hughes noted that everyone should have received his update in their packets for this meeting. He noted that they are "behind the scenes again," versus actually being on the site. Hughes gave the Members updates on various proj ects, such as the obstruction mitigation project. Currently, they are identifying property owners that will be affected by this, and then they will need to contact those involved. Hughes stated that they are also working on the approach survey and will be getting this information to the FAA shortly. Hughes stated that they have received recently some good news from the FAA regarding upcoming projects. The Project Initiation letter arrived to begin planning work on the runway extension paving. Hughes next addressed the south area taxi lanes, stating that they did get their field survey completed on this. Regarding T-Hangar A rehabilitation, which is a State grant, Hughes stated that they need to get this survey completed still. Hughes next addressed the north area and the State grant for those taxi lanes. He said the contractor has completed his punch list, made repairs to the hangar, and now the Commission needs to accept this project as complete. Rettig asked if AIP-lO was part of a grant or not. Hughes stated that this was part of the Environmental Assessment portion of a grant that was done several years ago. The discussion continued with Members asking various questions of Hughes. b. Taxi-lane North Tee's and Parking Lot Rehab - (see above discussion) i. Consider a resolution accepting the North T-Hangar Taxi lane and North Parking lot rehabilitation as completed. Rettig moved to consider Resolution A06-28; seconded by Staley. Carried 5-0. c. South Aviation Development - (see above discussion) d. JJR Davis Drainage - Hughes noted that some time back, Davis requested a drainage easement to get to their basin. Since this initial request, Hughes stated Davis has reexamined this and now possibly may want to purchase this property. Once the runway is extended, Hughes stated that this area would not be required for a safety area. Members asked for Hughes to point this out on the map for better clarification. Hughes explained the area in question and how the drainage is set up in this area. The topic ofleasing land versus selling it was briefly discussed, as well. Hughes continued by explaining the Willow Creek situation, stating that this study will be completed some Airport Commission December 14, 2006 Page 3 of7 time in late January. Rettig asked questions of Hughes regarding the stormwater runoff laws, stating that they need more information on this issue. Hughes stated that the FAA will not release the land until the extension work has been completed. B. Aviation Commerce Park - Hartwig stated that he would like to defer this issue, as Harry Wolf will not be arriving until later in the meeting. Staley moved to defer Item B until Harry Wolfs arrival; seconded by Horan. Carried 5-0. Harry Wolf arrived at the meeting. He stated that he has some news for the Commission. He presented a new plat of the Commerce Park, stating that it is a consolidation of two plats and is what they are using for their marketing purposes. Wolf next addressed the purchase offer on Lot No.5. He explained how the pricing was arrived at for this parcel and what the buyer will be obligated to do. He stated that he recommends approval ofthe offer. (TAPE ENDS) Discussion continued with Rettig asking how this one sale will affect the Airport's revenue, and how it will affect the Airport's rental agreement with the School District. Rettig noted that ofthe parcels, this was the only one that had revenue generating activities that would disappear with the sale. Members discussed the budgetary effects ofthe proposed sale. Rettig stated that the revenue from the leases on that parcel had been figured into 2008's budget and would leave a shortfall ifthere is nothing to replace it. Members continued to discuss the effects of having movement on the land with regards to the airport's budget. Wolfresponded to Members' questions regarding the potential buyer for this land. Hartwig noted that at the public hearing set by city council for this sale offer, the Commission would have another opportunity to stress their concerns regarding the effects of the sale on the airport's budget. Rettig stated that she is in favor of selling this lot, but wanted her concerns regarding revenue to be noted. She also noted that they would need to actually sell off more than half of the land before the airport would get any money from these land sales. a. Recommendation to City Council on purchase offer for Lot No.5 of the North Commerce Park by IWI Motorparts - Horan moved to recommend to the City Council acceptance of the purchase offer on Lot No.5; seconded by Farris. Carried 5-0. b. Consider a resolution approving amendment to listing agreement with Iowa Realty - Hartwig stated that this is in regards to the listing agreement they currently have with Iowa Realty. Wolf briefly explained the wording and pricing model issues on this. Rettig moved to consider Resolution A06-29 approving amendment to the listing agreement with Iowa Realty; seconded by Horan. Carried 5-0. Airport Commission December 14, 2006 Page 4 of7 C. Grass Runway - Tharp stated that since the last discussion on this, several issues have arisen, one being that they would eliminate almost all of the fannable land that they have, if they were to put in this grass runway. He continued, stating that if the Members decide to proceed with this runway, it would not be until the spring of2008. This would give them time to discuss the impact with those involved. Rick Mascari spoke to the Members regarding this, stating that there is a very low percentage of pilots who would use this strip. He questioned the expense of creating this runway, versus opening up 18-36 again, which he feels would be a much more usable runway. Horan stated that he would like to continue looking into this issue, with perhaps another location working better. The issue of the ASOS location was also discussed and how this plays into the location of runways. (TAPE ENDS) The discussion continued with Members discussing the southern portion of the Airport property and how they want to handle the development of this area. Staley asked Tharp to point out the areas that are farmable now and what they would lose by adding a grass runway. The discussion turned to the history of various runways. D. Jet Air Management Agreement - Hartwig stated that he has discussed this agreement with both Philip and Harrel. Rettig asked if this agreement would begin in January and run for a year. Hartwig stated that the Members need to decide if they want the agreement to run on a calendar year or the fiscal year. Rettig moved to accept the Management Agreement as written; seconded by Horan. Discussion then continued, with Dulek noting that the Risk Manager will have to give approval on this agreement, as well. Staley moved to amend the motion to state, "Pending approval by the Iowa City Risk Manager, that Item 5 is acceptable." Seconded by Farris. Carried 5-0. Hartwig stated that they now need to vote on Rettig's motion. Motion carried 5-0. E. Parking Policy a. Consider a Resolution adopting Parking Policy - Staley asked for clarification on the actual Resolution, stating that in one part it says "Iowa City Municipal Parking Policy," and in another it states "Iowa City Municipal Airport Parking Policy." He asked if they were adopting the City's parking policy. Members agreed that it would be the "Iowa City Municipal Airport" policy. Members asked Tharp questions regarding his research into what other airports do in regards to parking policies. The discussion continued, with Rettig asking various questions about how this policy will be implemented, and stating that they need to work on the signage somewhat. Tharp also discussed long-term parking issues with the Members. Changes to the parking policy were discussed at length, with Members deciding that anybody parking for more than 14 days is to park in long-term parking, and not in front of the terminal; and also, the Airport needs to Airport Commission December 14, 2006 Page 5 of7 give permission to the person wanting to leave a vehicle that length of time. Next, various wording for the signage was discussed by the Commission. (return to Item B - Aviation Commerce Park) F. Janitorial Services - Farris spoke to the Members regarding the submitted proposal. He stated that they had three proposals submitted, and that the decision was made to stay with Midwest. He explained some of the additional items in the proposal that are not currently being done. Tharp fielded Members' questions regarding this proposal and what currently takes place, as well. Rettig asked questions regarding the budget and this increase in janitorial service. (TAPE ENDS) Members continued to ask questions regarding the cleaning of various areas within the Airport. Rettig stated that she feels all areas that are the Airport's responsibility should be cleaned and maintained in this agreement. a. Consider a resolution accepting the proposal submitted by Midwest Janitorial Services for janitorial services at the Iowa City Municipal Airport - Rettig moved to consider Resolution A06-30 accepting the proposal submitted by Midwest Janitorial Services- pending clarification of the typographical error; seconded by Staley. Carried 5-0. G. Airport Operations: Strategic Plan-Implementation; Budget; and Airport Management - In regards to the Strategic Plan, Hartwig acknowledged the work of Tharp and Farris on the newsletter, and stated that the City Manager commented favorably on this. In regards to the Budget, Rettig asked where they are in the FY08 Budget process. Tharp noted that he and Hartwig met with the City Manager last month on this. Hartwig stated that they explained why they are requesting what they are, and that next will be a City Council meeting where all of the Commissions and Boards meet with the Council to explain their budget requests. a. 2006 Annual Report - Rettig stated that she has a suggestion for an addition to this report. A brief discussion ensued, with Rettig stating she would read through it again and make any additional suggestion. H. Subcommittees' Reports - Farris stated that he has not been able to do anything further on the viewing area project, but hopes to have some information for the Members in the next few meetings. Hartwig noted that he needs to talk to Parks and Rec about this area, as well. I. FBO Staff Report - Hartwig noted that this is an opportunity for Jet Air to address the Commission. Woolford spoke to the Members regarding the self- Airport Commission December 14, 2006 Page 6 of7 serve pump and the problems they have with it. He stated that they need to upgrade this pump, and he briefly eXplained the advantages ofthis. Woolford stated that a new dispenser would be able to handle both Avgas, which was currently provided and Jet fuel, should the Commission want to have a self- service Jet fuel dispenser. A discussion ensued, with Members questioning the cost for this replacement. Rettig suggested that they look into grant funding for this project. (TAPE ENDS) COMMISSION MEMBERS' REPORTS - Hartwig stated that he received a letter inviting them to the opening ofthe Mormon Trek extension this coming week. He stated that anyone interested is welcome to join him at the intersection of Dane Road and Mormon Trek for the ribbon cutting. Rettig stated that she would try to make this. Horan stated that he shared some photos with Hughes on the grading project and would do so with the Commission, as well. Farris thanked Tharp his work putting the newsletter together. STAFF REPORT - None. SET NEXT REGULAR MEETING FOR: January 11, 2007 at5:45 P.M. ADJOURN - Meeting adjourned at 7:56 P.M. Airport Commission December 14,2006 Page 7 of7 Airport Commission ATTENDANCE RECORD YEAR 2006 (Meetin!! Dat e) TERM 1/12 2/9 3/9 4/13 5/1 5111 5/31 6/8 6/16 6/23 6/27 7/13 NAME EXP. Daniel Clay 3/1/08 --- -- -- --- -- -- --- -- -- -- -- --- Randy Hartwig 3/1/09 X X X X X X X X X OlE X X Greg Farris 3/1/07 0 X X X X X X X X X OlE OlE John Staley 3/1/06 X X X X X X OlE X X OlE X X Howard Horan 3/1/08 X X X X X X X X X X X X Janelle Rettig 3/1/12 -- -- X X X X X X X X X X 7/27 8/10 9/14 9/18 10112 11/9 12/14 ............. Randy Hartwig 3/1/09 X X X X X X X Greg Farris 3/1/07 OlE X X X X X X John Staley 3/1/10 X X X X X X X Howard Horan 3/1/08 X X X X X X X Janelle Rettig 3/1/12 OlE X X X X X X KEY: X = Present o = Absent OlE = Absent/Excnsed NM = No meeting -- = Not a Member CALL TO ORDER: MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: STAFF ABSENT: OTHERS PRESENT: POLICE CITIZENS REVIEW BOARD MINUTES - December 18, 2006 DRAFT ~ Chair Michael Larson called the meeting to order at 5:36 p.m. Candy Barnhill, Elizabeth Engel, Loren Horton Greg Roth Staff Kellie Tuttle Legal Counsel Catherine Pugh None RECOMMENDATIONS TO COUNCIL None. CONSENT CALENDAR OLD BUSINESS NEW BUSINESS PUBLIC DISCUSSION BOARD INFORMATION STAFF INFORMATION EXECUTIVE SESSION Motion by Barnhill and seconded by Engel to adopt the consent calendar as presented or amended. . Minutes of the meeting on 12/05/06 . ICPD General Order 89-02 (Department Disciplinary Philosophy) . ICPD General Order 99-08 (In Car Recording Devices) Motion carried, 4/0, Roth absent. Citv Code Section 8-8-6(E) / Policv & Procedure for extension reauests -Motion by Barnhill and seconded by Horton to table the discussion until legal counsel was present. Motion carried, 4/0, Roth absent. None. None. None. None. Motion by Barnhill and seconded by Engel to adjourn into Executive Session based on Section 21.5(1 )(a) of the Code of Iowa to review or discuss records which are required or authorized by state or federal law to be kept confidential or to be kept confidential as a condition for that government body's possession or continued receipt of federal funds, and 22.7(11) personal information in confidential personnel records of public bodies PCRB December 18, 2006 Page 2 including but not limited to cities, boards of supervisors and school districts, and 22-7(5) police officer investigative reports, except where disclosure is authorized elsewhere in the Code; and 22.7(18) Communications not required by law, rule or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications from such persons outside of government could reasonably believe that those persons would be discouraged from making them to that government body if they were available for general public examination. Motion carried, 4/0, Roth absent. Open session adjourned at 5:38 P.M. (Larson present for discussion of #06-04 and left the meeting due to a conflict of interest for #06-03.) REGULAR SESSION Returned to open session at 6:36 P.M. Motion by Horton and seconded by Barnhill to set the level of review for PCRB Complaint #06-04 to 8-8-7(B)(1 )(a), on the record with no additional investigation. Motion carried, 3/0, Roth and Larson absent. MEETING SCHEDULE . January 9,2007,5:30 P.M., Lobby Conference Room . February 13, 2007, 5:30 P.M., Lobby Conference Room . March 13,2007, TBA, Lobby Conference Room . April 10, 2007, TBA, Lobby Conference Room ADJOURNMENT Motion for adjournment by Horton and seconded by Barnhill. Motion carried, 3/0, Roth and Larson absent. Meeting adjourned at 6:38 P.M. x = Present o = Absent OlE = Absent/Excused NM = No meeting = Not a Member KEY \..l~""""IL...l::: AI"IL"! TERM 1/10 2/14 3121 4/11 5/9 6/12 7111 8/8 9/12 10/10 11/14 12/5 12/18 NAME EXP. Candy 9/1/07 X X X NM X X X X X NM X X X Barnhill Elizabeth 9/1/08 X OlE X NM X X X X X NM X X X Engel Loren 9/1/08 X X X NM X X X X X NM X OlE X Horton G reg Roth 9/1/09 X X X NM X X OlE X X NM OlE X 0 Michael 911/09 X OlE X NM X X X X X NM X X X Larson 1M POLICE CITIZENS REVIEW BOARD ATTENDANCE RECORD YEAR 2006 f D te) rnrJ MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE December 12, 2006 LOBBY CONFERENCE ROOM Preliminary Members Present: Members Absent: Staff Present: Others Present: Regenia Bailey, Connie Champion, Bob Elliot NONE Karin Franklin, Wendy Ford Nancy Quellhorst, Joe Raso, Tim Kenyon, Irwin Pfab RECOMMENDATIONS TO CITY COUNCIL: None CALL MEETING TO ORDER Chairperson Regenia Bailey called the meeting to order at 9:01 AM. APPROVAL OF MINUTES - NOV. 13.2006 ECONOMIC DEVELOPMENT COMMITTEE MEETING MOTION: Bailey moved to approve the November 13, 2006 minutes as submitted. Elliot seconded the motion. The motion passed 3:0. ACTIVITY REPORT - Economic Development Coordinator - WENDY FORD Ford informed the committee of an initiative of the University of Iowa Obermann Center designed to get Graduate Students involved in the community. The initiative was made possible in part by Linda Schreiber of ICAD and a gathering of community leaders with Jennifer New of the Center. One element of the initiative will be an event at the Public Library Tuesday, January 9th at 6:30pm. This will provide the public with an opportunity to "network" with local graduate students. Sylvia Gaii, a University of Texas scholar and activist will give a talk about how universities and communities can collaborate effectively. The Economic Development department marketing/advertising budget has provided a $100 sponsorship for the event. Ford noted that she has been attending meetings and events and gave a presentation on Iowa City's use of TIF at the Iowa City Roundtable on Dec. 5. The presentation gives updates and enhances information about local TIF projects. Chairperson Elliot commented on his presence at the round table and on the good reception of Ford's presentation. Chairperson Bailey asked for a copy of the presentation. Ford responded that she is working on getting that information loaded to the website. Nancy asked that the information be sent to Dana Englebert for the Chamber of Commerce website as well. Ford mentioned that she has been working on TIF debt certification. In the process of this Ford mentioned that she has learned a lot about each active city TIF agreement. She provided a head-up that United Natural Foods may not meet required employment thresholds by June, 2007 in order to qualify for their 100% rebate. In that event, they will receive less than a 100% rebate, the exact amount of which will be determined by the "clawback" provision written into the agreement, which states $1667 per full time (FTE) equivalent SHORT of the 300 FTE target will be deducted from the 100% amount. Request For Proposal document for Downtown Market Niche Analvsis Ford described the request for proposals as collaboration between the City, the DTA, and the Chamber of Commerce as each organization has strong interest in the market analysis for their individual purposes. Ford described the scope as a three-part analysis of the downtown area to a) gain an understanding of the current market conditions consisting of a business and building inventory, b) identify market opportunities by sector and c) provide conclusions and recommendations for business retention and recruitment, niche recommendations, space utilization, and marketing. Bailey asked if a business and building database that already exists. Ford answered that there is a database containing some of the information. The complete database will be useful to each of the organizations. Elliot mentioned that input from entrepreneurs might useful to learn what they need -- such as guidance and information. Franklin added that "tools for entrepreneurs to nurture new businesses" should be included in the study. Elliot asked if labor force surveys currently exist. Raso said that he has that information. Economic Deveiopment Committee Minutes December 12, 2006 Page 2 Bailey stressed that we do not want a cookie culler imalysis and that ensuring the Iowa City authenticity as an element of the analysis is important. Discussion ensued about possible outcomes, such as the recommendation of creation of new events. Raso cautioned that basic "clean and safe" necessities of downtowns tend to be pushed aside when cities look at ways to draw people to the downtowns. The basics need to be covered first and then the higher-end features can be implemented. Elliot inquired about who decides which consultant gets the contract. Franklin said that if the contract is for iess than $25,000 then the Economic Deveiopment Committee may decide and then the city manager can sign the contract. If the cost is more than $25,000, a recommendation from the Economic Development Committee must go through the city council. Elliot mentioned that he would like the council "on board" anyway. Bailey would like 'the top choices of consultants to give interview presentations. Bailey thinks it is important to have a thorough understanding of the analysis from the contractor prior to making recommendations. In discussion about the end of the anaiysis process, Ford recommended there be an initial presentation for discussion of the findings to the ED Committee, Chamber and DTA partners and another after initial questions have been addressed. Franklin mentioned that the consultant should present to the Committee who would then present the consultant's findings to the City Council. A public meeting regarding the recommendations should also be held at the library between the two presentations given by the consultant. To cut down on the cost of multiple presentations, Franklin suggested that one of the meetings be for the Council and for the boards of the partnering organizations. Raso suggested Ford ask Mainstreet Iowa about consultants they recommend to whom we could send the RFP. Communitv Deveiopment Fund (CDF) Application for BIOWA BIOWA is a Trade Association working on building a database to link buyers for the waste stream products of bio-based industries. They seek the City's support in the form of administration of a state grant. No grant money would come from the City. In describing how the data base could work, Ford shared the example of eggshell waste from one company used by another to produce skin care products. Ford explained that she discussed the preliminary application with Cali Beals at the IDED. Beals' reservations regarded the clarity of the cash match from BIOWA, but she said that the project is likely to be funded as it is proceeding in the correct direction. The only commitment on the part of Iowa City is to monitor the project; the funds are from the State. Bailey wants more information and assurance that staff time for monitoring the project does not get out of hand though she is supportive of the project. Raso mentioned that he had managed one of these types of projects and it did not require much staff time. He said that there have been similar projects before and mentioned one that he thought was through ISU, matching up waste streams but not necessarily bio-based. Ford said that Beals mentioned this too, but sounds as though it had failed giving rise to some skepticism for the BIOWA project. Ford will do further research on the other database in question. Bailey inquired if the Committee was in agreement on giving Ford the go ahead to provide a leller of support for the project contingent on receiving the necessary clarifications. The committee agreed to allow Ford to provide a letter of intent to support the project, after which the council will vote on a resolution to formally support the application. Franklin inquired about how the project will continue after the year for which this application is to provide funding. Ford explained the CDF is designed to support one-year projects, though the iife of the database is expected to be ongoing and will be supported by BIOWA. ADJOURNMENT The meeting adjourned at 9:53 A.M. Economic Development Committee Minutes December 12, 2006 Page 3 NEXT MEETING DATE: January 23,2007 Minutes submitted by John Dawson. s/pcd/minutes/ecdev/2006/11-12-06.doc Council Economic Development Committee Attendance Record 2007 Term ~ C> C> C> C> C> C> C> C> C> C> C> C> C> C> Name Expires N w Regenia Bailey 01/02/08 Bob Elliott 01102108 Connie Champion 01/02108 Council Economic Development Committee Attendance Record 2006 Term ~ ~ So! So! w ~ '" ~ 5!! '" !!! !!! ~ ~ ~ c:;; N C> ~ ~ Name Expires ~ ~ ~ ~ '" (;; ~ ~ c:;; CD '" C> c.n C> .... CD '" ~ '" ~ ~ ~ w '" Regenia Bailey 01/02108 X X X X X X X X X X X X X X X Bob Elliott 01/02/08 X X X X X X X X X X X X X X X Connie 01/02/08 OlE X X X X X X X X X X X X X X Champion Key: X = Present o = Absent OlE = Absent/Excused