HomeMy WebLinkAbout2013-01-17 Info Packet4L
CITY COUNCIL INFORMATION PACKET
CITY OF IOWA CITY
www.icgov.org January 17, 2013
IP1 Council Tentative Meeting Schedule
JANUARY 22 WORK SESSION
IP2 Work Session Agenda
IP3 Memo from the City Attorney and City Clerk: Taxicabs — "Independent Owner Operators"
I134 Memo from the City Clerk: Proposed Meeting Schedule — April through August
IP5 Pending Work Session Topics
MISCELLANEOUS
IP6 Memo from Planning & Community Development Dir.: Update on status of Peninsula
Subdivision
IP7 Invitation: Legislative Day — January 22
IP8 Invitation: Kevin O'Malley retirement celebration
IP9 Press Release and Comprehensive Annual Financial Report for the fiscal year ended
June 30
IP10 Quarterly Investment Report— October Ito December 31
IP11 Bar Check Report— December 2012
IP12 Article from Asst. to the City Manager: What Makes Coworking Work?
IP13 Article from Adm. asst. to the City Manager: Roses and Thistles: The start of the 85th
General Assembly
IP14 Copy of press release from Emergency Management of Johnson County: Outdoor Siren
Test for Noon 1118113
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City Council Tentative Meeting Schedule IN
6 �t Janaury 17, 2013
CITY OF IOWA CITY
Subject to change
Date Time Meeting Location
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Tuesday, January 22, 2013 5:00 PM Work Session Meeting Emma J. Harvat Hall
Tuesday, January 22, 2013 7:00 PM Special Formal Meeting Emma J. Harvat Hall
Tuesday, February 5, 2013
5:00 PM
City Conference Board Meeting
Emma J. Harvat Hall
Work Session Meeting
Emma J. Harvat Hall
Tuesday, February 5, 2013
7:00 PM
Formal Meeting
Emma J. Harvat Hall
Tuesday, February 19, 2013
5:00 PM
Work Session Meeting
Emma J. Harvat Hall
Tuesday, February 19, 2013
7:00 PM
Formal Meeting
Emma J. Harvat Hall
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Tuesday, March 5, 2013
5:00 PM
City Conference Board Meeting
Emma J. Harvat Hall
Work Session Meeting
Emma J. Harvat Hall
Tuesday, March 5, 2013
7:00 PM
Formal Meeting
Emma J. Harvat Hall
Tuesday, March 19, 2013
5:00 PM
Work Session Meeting
Emma J. Harvat Hall
Tuesday, March 19, 2013
7:00 PM
Formal Meeting
Emma J. Harvat Hall
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IP2
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa S2240 -1826
(3 19) 356 -5000
(319) 3S6 -5009 FAX
www.icgov.org
City Council Work Session Agenda
January 22, 2013
5:00 PM
Emma J. Harvat Hall - City Hall
410 E. Washington Street
• Questions from Council re Agenda Items
• Staff presentation on the landfill cell re- design strategy [# 8]
• Discuss potential regulations of owner /operator taxi service providers [IP # 3]
• Information Packet Discussion [January 10, 17]
• Council Time
■ Pending Work Session Topics [IP # 5]
■ Meeting Schedule [IP # 4]
■ Upcoming Community Events /Council Invitations
r
CITY OF IOWA CITY 01-17-13
IP3
MEMORANDUM
Date: January 16, 2013
To: City Council
From: Eleanor M. Dilkes, City Attorney �9
Marian Karr, City Clerk /Y7 .
Re: Taxicabs — "Independent Owner Operators"
The purpose of this memo is simply to lay out some basic information about how the City
currently regulates taxicabs in advance of your discussion about "independent owner
operators ".
The City licenses "taxicab businesses ". A "taxicab business" must have a minimum of 4 licensed
vehicles which have been inspected in accordance with the Code and insured. In making an
application for a license to operate a taxicab business the applicant must provide a certified
state driving record and criminal record and be approved by the Police Department. Each
vehicle operated by the business must have a certificate of inspection and a "decal" attached to
the windshield. At least one of the vehicles must be in operation 24/7 and dispatching must be
from an office. A taxicab business is also responsible for complying with the requirements of
the code concerning the rate card, complaint notice, calibration of taximeters and vehicle
lettering and lighted domes.
In addition, any person who wishes to drive a taxicab must apply for authorization from the City,
which includes providing a certified driving and criminal record and possession of a chauffer's
license. Once authorized every driver must display an identification card provided by the
taxicab business that shows the full name of the driver and the business.
There is no requirement in the City Code that a taxicab business own all its vehicles. The
vehicles need only meet all the requirements of the Code (inspection, insurance, lettering etc.).
If they do not, the owner of the business is responsible. Some businesses contract with
"independent owner operators" to drive a vehicle they own as a vehicle of the business. While
these persons, if driving, must be authorized to drive the cab and can be held accountable if
they do not comply with the driver requirements, they are not responsible for the vehicles
requirements (e.g. inspection, decal, lettering, insurance). That is the responsibility of the
licensed taxicab business.
cc: City Manager
Assistant to the City Manager
Ault
CITY OF IOWA CITY '��
MEMORANDUM I
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PROPOSED
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CITY OF IOWA CITY
PENDING CITY COUNCIL WORK SESSION TOPICS
January 17, 2013
Pending Topics to be Scheduled
1. Discuss concept of a community business attraction and anti - piracy compact
2. Continue the discussion on the sale or dispersion of public housing units
3. Discuss potential procedures and /or policies related to requests for habitable private
spaces constructed over public right -of -way
4. Presentation on local homeless services
5. Presentation on Gateway project design options (February or March 2013)
P
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MEMORANDUM
Date: January 17, 2013
To: City Manager
From: Jeff Davidson, Director of Planning and Community Development
Re: Update on status of Peninsula Subdivision
At the January 7 Capital Improvements Program budget meeting, the City Council requested an
update on activities at the Peninsula Subdivision. This is the joint venture between the City of
Iowa City and the Peninsula Development Company for the development of the Peninsula
Neighborhood, a 410 lot residential subdivision located at the end of Foster Road in north Iowa
City.
The Peninsula Neighborhood is located on property once owned entirely by the City of Iowa
City. The property was acquired in conjunction with the extension of major utility lines to the
new water treatment plant. The City developed the concept for a traditional neighborhood
subdivision, and executed a development agreement with the Peninsula Development
Company. The City has gradually been selling off phases of the project to the Peninsula
Development Company.
The final phases of the development, Parts 4 and 5, were transacted from the City to the
Peninsula Development Company last year. All property needed for the full build -out of the
Peninsula Neighborhood is now controlled by the private developer. The build -out of the
subdivision is required to occur consistent with the approved Peninsula Development Plan,
although several amendments to the plan have been executed.
The Peninsula Development Company continues to take an aggressive approach to the building
out of the subdivision. There are several homes which will be on this spring's Parade of Homes.
Representatives of the Peninsula Development Company have stated that all of the Parade
homes have been sold. The Peninsula Development Company continues to market a variety of
residential products as part of their development plan, ranging from townhouses in the $150,000
range, stacked flats, condominium duplexes, and a range of single family homes from smaller
cottage and bungalow styles to estate homes. All of the estate home lots around the west
perimeter of the subdivision have been sold. One of the more recent residential products
offered, the stacked flats on the south side of Foster Road as you enter the subdivision, are
approximately 50% sold out.
The focus this spring will be on opening Parts 4 and 5 of the Peninsula Neighborhood. This will
include the larger (approximately 18 unit) multi - family buildings overlooking the golf course.
These are expected to include both for -sale buildings and buildings with rental units. Peninsula
Development Company representatives indicated that on a daily basis they are asked about
rentals, so they are attempting to create some rental units in the subdivision.
There is one mixed use commercial - residential building in the development plan. There has
been a lot of interest in this building and the Peninsula Development Company hopes to finalize
a sale in the short term future. As proposed, it would include three small commercial spaces,
which may include a coffee shop /wine bar and a dog park - related use.
January 17, 2013
Page 2
There are currently 150 completed residential units in the Peninsula Neighborhood,
representing 37% of the 410 residential unit total. There are currently 25 residential units under
construction.
Representatives of the Peninsula Development Company indicated the Homeowners
Association is active even though technically the development company continues to control the
Homeowners Association based on the percentage of units that have been constructed.
Peninsula Development Company representatives indicated they coordinate well with the Elks
Club and also with residents of the adjacent subdivision, White Oak Place.
Let me know if you have any questions.
Marian Karr
From:
Heather Roberts <HeatherRoberts @iowaleague.org>
Sent:
Thursday, January 10, 2013 2:51 PM
To:
Marian Karr
Subject:
Legislative Day - January 22 2013
Dear Marian,
IP7
Join us on Tuesday, January 22 at the Embassy Suites in Des Moines for the Iowa League of Cities Legislative Day. This is
an opportunity to hear late- breaking legislative news and viewpoints from the League's lobbying team and key
legislators, and to get in -depth property tax information. That evening, all legislators and many state department
representatives will be invited to attend a networking reception.
As a city official, the League Legislative Day gives you a wonderful opportunity to learn more about what is taking place
at the Capitol and how it affects your city, as well as provide you with an opportunity to speak to your elected peers at
the state level. Online registration is available at https: / /www.iowaleague.org /LegDay2013 /Pages /default.aspx
One important thing to consider is that Monday, January 21 is the Dr. Martin Luther King Jr. holiday so the League will be
unable to receive your registration via U.S. Mail on that day. We encourage you to register as early as possible to avoid
any issues with registration.
Highlights of the agenda:
2 p.m. Legislative informational meeting, including update from key legislators and the League
5 -7 p.m. Legislative Reception for all legislators and city officials
Heather Roberts
Director of Information Services
Direct: (515) 974 -5330
Iowa League of Cities
317 Sixth Ave, Ste 800 I Des Moines, IA 50309
Phone: (515) 244 -7282 I Fax: (515) 244 -0740
www.iowaleasue.ors
When 1411ISfl eyes a�2e
Sit Aill$, it must mean % %%
1-4evin 09r2alw1wey
is Retioncill
Please join us for a retirement celebration to thank Kevin
for his many years of service to the City and wish him well!
Friday, January 25, 2013 — 1 to 4 p.m.
Harvat Hall in City Hall, 410 E. Washington Street, Iowa City
Joined the
City of Iowa City as
Assistant Director
of Finance
0— 013
Retired from the
City of Iowa City as
Director of Finance, a
post he's held since 1999
Robin Marshall
From:
City of Iowa City <webmaster @iowa - city.org>
Sent:
Thursday, January 10, 2013 2:15 PM
To:
Robin Marshall
Subject:
Auditor's Report Released for the Year Ended June 30, 2012
Auditor's Report Released for the
Issued by: Finance Admininistration
Mailing List(s): General City News
Originally Posted 1/10/2013 2:14:22 PM
City of lone Citx iota
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Comprehensive Annual Financial Report
Year Ended June 30, 2012
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Contact: Robin Marshall
Contact Phone: (319) 356 -5085
Eide Bally LLP, Certified Public Accountants, have released an audit report on the financial statements of the City of Iowa
City for the fiscal year that ended June 30, 2012. The report shows that City revenues for FY12 totaled $145,689,000,
while expenses for the year totaled $121,508,000.
Sources of revenue included $50,516,000 in property taxes, $27,760,000 from operating and capital grants and
contributions, and $44,250,000 in charges for services. Expenses included $43,363,000 for business activities,
$17,556,000 for public works, $21,186,000 for public safety, and $16,305,000 for community and economic development.
The City's Finance Department has also submitted its Comprehensive Annual Financial Report to the Government
Finance Officers Association of the United States and Canada (GFOA) for consideration for an award of excellence. The
Certificate of Achievement for Excellence in Financial Reporting, the highest form of recognition for state and local
financial reporting, has been awarded to the City of Iowa City for the past 27 years.
Copies of the Comprehensive Annual Financial Report and the auditor's report are available for review in the Iowa City
Public Library at 123 S. Linn Street or in the City Clerk's office at City Hall, 410 E. Washington Street. The documents are
also posted online at www.icgov.org /cafr.
For more information, contact Robin Marshall, City Controller, at 319.356.5085 or e-mail robin- marshallc@iowa- citv.org.
View this article on the ICGov Web Site: htti): / /www.icaov.orq /apps /news / ?news[D =8473
This media release was sent to: Robin- Marshall(Plowa- Citv.ora
Do not reply directly to this e-mail! It is produced from an automated system, and is not monitored for replies. If you have a question or comment
about this information, please contact the individual(s) listed in the release.
North Market SQuare Park
City of Iowa City, Iowa
Comprehensive Annual
Financial Report
For the Fiscal Year Ended June 30, 2012
� r
CITY OF IOWA CITY
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF IOWA CITY, IOWA
FOR THE FISCAL YEAR ENDED JUNE 30, 2012
PREPARED BY:
FINANCE DEPARTMENT
CITY OF IOWA CITY, IOWA
�' �1
CITY OF IOWA CITY, IOWA
TABLE OF CONTENTS
June 30, 2012
Page
INTRODUCTORY SECTION
Tableof contents ............................................................................................ ...............................
1
Letterof transmittal ........................................................................................ ...............................
3
Cityorganizational chart ................................................................................. ...............................
12
Cityofficials .................................................................................................. ...............................
13
Certificate of Achievement for Excellence in Financial Reporting ................... ...............................
14
FINANCIAL SECTION
I10 1Ila9a 01174►11KAW110IM'7i.Y.7d go] 'A R7
MANAGEMENT'S DISCUSSION AND ANALYSIS ................................... ............................... 17
BASIC FINANCIAL STATEMENTS
96
Government -wide financial statements
Statement of net assets .............................................................................. ...............................
28
Statementof activities ............................................................................... ...............................
30
Fund financial statements
Balance sheet — governmental funds ......................................................... ...............................
32
Reconciliation of the balance sheet of the governmental funds to the statement of net assets ....
34
Statement of revenues, expenditures, and changes in fund balances — governmental funds........
35
Reconciliation of the statement of revenues, expenditures, and changes in fund balances of
governmental funds to the statement of activities .................................... ...............................
37
Statement of net assets — proprietary funds ................................................ ...............................
38
Statement of revenues, expenses, and changes in fund net assets — proprietary funds ................
41
Statement of cash flows — proprietary funds .............................................. ...............................
42
Statement of fiduciary assets and liabilities ............................................... ...............................
44
Notes to financial statements ....................................................................... ...............................
45
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary comparison schedule — budget and actual — all governmental funds and enterprise
funds — budgetary basis ...................................................... ............................... 90
Budgetary comparison schedule — budget to GAAP reconciliation .... ............................... 92
Note to required supplementary information — budgetary reporting .... ............................... 93
Note to required supplementary information - schedule of funding progress for health and dental
plans.............................................................................. ............................... 94
:010]05 117121 INIV.1211712111 W 11110 N 0121 MI KIY 1 du 19200
Combining balance sheet — nonmajor governmental funds ........................... ...............................
96
Combining statement of revenues, expenditures, and changes in fund balances — nonmajor
governmentalfunds .................................................................................. ...............................
97
Combining statement of net assets — nonmajor enterprise funds ................... ...............................
100
Combining statement of revenues, expenses, and changes in fund net assets — nonmajor
enterprisefunds ........................................................................................ ...............................
101
Combining statement of cash flows — nonmajor enterprise funds .................. ...............................
102
Combining statement of net assets — internal service funds ........................... ...............................
104
Combining statement of revenues, expenses, and changes in fund net assets — internal service
funds........................................................................................................ ...............................
105
CITY OF IOWA CITY, IOWA
TABLE OF CONTENTS
June 30, 2012
P
COMBINING AND INDIVIDUAL FUND STATEMENTS (continued)
Combining statement of cash flows — internal service funds ......................... ............................... 106
Statement of changes in assets and liabilities — agency funds ....................... ............................... 108
STATISTICAL SECTION (UNAUDITED)
Net assets by component ................................................................................ ...............................
111
Changesin net assets ...................................................................................... ...............................
112
Fund balances — governmental funds .............................................................. ...............................
114
Changes in fund balances — governmental funds ............................................. ...............................
115
General government tax revenues by source ................................................... ...............................
116
Assessed and taxable value of property ........................................................... ...............................
117
Property tax rates — direct and overlapping governments ................................ ...............................
118
Property tax budgets and collections ............................................................... ...............................
119
Principaltaxpayers ......................................................................................... ...............................
120
Principal water system customers ................................................................... ...............................
122
Sales history and total water charges .............................................................. ...............................
123
Principal sewer system customers ................................................................... ...............................
124
Sales history and total sewer charges .............................................................. ...............................
125
Ratios of outstanding debt by type .................................................................. ...............................
126
Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............
127
Ratio of annual debt service expenditures for general bonded debt to total general governmental
expenditures................................................................................................ ...............................
128
Computation of direct and overlapping debt ................................................... ...............................
129
Legal debt margin information ....................................................................... ...............................
130
General obligation debt annual maturity schedule ........................................... ...............................
131
Schedule of revenue bond coverage ................................................................ ...............................
132
Revenue debt annual maturity schedule .......................................................... ...............................
133
Revenue debt annual maturity by funding source ............................................ ...............................
134
Demographic and economic statistics ............................................................. ...............................
136
Principalemployers ........................................................................................ ...............................
137
Full -time equivalent city government employees by function .......................... ...............................
138
Operating indicators by function ..................................................................... ...............................
140
Capitalassets by function ............................................................................... ...............................
142
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.. 145
Report on compliance with requirements that could have a direct and material effect on each
major program and on internal control over compliance in accordance with OMB Circular A-
133 ............................................................................................................................................. 147
Schedule of expenditures of federal awards .................................................... ............................... 149
Notes to the schedule of expenditures of federal awards ................................. ............................... 154
Schedule of findings and questioned costs ...................................................... ............................... 155
December 17, 2012
To the Citizens, Honorable Mayor, Members
of the City Council and City Manager
City of Iowa City, Iowa
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CITY OF IOWA CITY
The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City)
for the fiscal year ended June 30, 2012 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 lass, 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.
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions effective with the June 30, 2011 financial statements. Fund balances for
the governmental funds are reported in classifications that comprise a hierarchy based on the
extent to which the government honors constraints on the specific purposes for which amounts in
those funds can be spent. The classifications include: nonspendable amounts that are not in
spendable form or the City is legally or contractually required to be maintained intact; restricted
amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or
laws or regulations of other governments, or imposed by law through constitutional provisions or
enabling legislation; committed amounts can only be used for specific purposes imposed by
formal action of the government's highest level of decision- making authority; assigned amounts
are intended to be used for specific purposes; and the unassigned fund balance is the residual
classification for the General Fund
Chapter 11 of the Code of Iowa requires an annual audit to be performed The independent public
accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the
requirements set forth in Chapter 11, the audit was also designed to meet the requirements of the
Single Audit Act of 1996 and related Office of Management and Budget (OMB) Circular A -133,
Audits of States, Local Governments and Non- Profit Organizations.
While, the financial statements are the responsibility of the City, the responsibility of the auditor
is to express an opinion on the City's financial statements based on their audit. The goal of the
independent audit is to provide reasonable assurance that the City's financial statements for the
fiscal year ended, June 30, 2012 are free of material misstatement. The audit is conducted in
accordance with generally accepted auditing standards and involves examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement preparation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unqualified opinion that the City of Iowa City's financial statements for the fiscal year
ended, June 30, 2012, are fairly presented in conformity with GAAP. The independent auditors'
report on the basic financial statements and combining and individual fund statements and
schedules is included in the financial section of this report.
As a recipient of federal financial assistance, the City is responsible for ensuring that adequate
internal controls are in place to ensure compliance with applicable laws and regulations related to
these federal programs. These internal accounting and administrative controls are subject to
periodic evaluation by the City's management and the City is required to undergo an annual single
audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of
Management and Budget (OMB) Circular A -133, Audits of State, Local Governments and Non -
Profit Organizations. Information related to this single audit, including the schedules of federal
financial assistance, findings and questioned casts, and independent auditors' reports on the
internal accounting and administrative controls and compliance with applicable laws and
regulations are included in the compliance section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD &A). This letter of transmittal is designed to complement the MD &A and should be read in
conjunction with it. The City's MD &A can be found immediately following the report of the
independent auditors.
Profile of the Government
The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member
Council; each member serves a four -year term. Elections are held every two years allowing for
continuation in office of at least three members at each biennial election. The Council members are
elected at large, with three members nominated from specific districts and the remaining four
members nominated at large. The Council elects the Mayor from its own members for a two -year
term.
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
4
obtain and spend its funds. The Council appoints members of boards, commissions and
committees.
The City Manager is the chief administrative officer for the City and is appointed by the City
Council. The City Manager implements policy decisions of the City Council and enforces City
ordinances. In addition, the City Manager appoints and directly supervises the directors of the
City's operating departments and supervises the administration of the City's personnel system. The
Manager supervises 542 full -time and 66 part-time permanent municipal employees and 454
temporary employees, including a police force of 78 sworn personnel and a fire department of 64
firefighters.
The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's
Office administers the City government's documentation, City licenses and permits, and provides
information from the Municipal Code and City Ordinances to the public and other City
departments. The City Clerk's Office is also responsible for distributing and maintaining accurate
records of all City Council proceedings. The Clerk supervises 3 full -time employees and 1
temporary employee.
The City Attorney is also appointed by the City Council and works at the direction of the City
Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City
Attorneys and 2 other full -time employees. In addition, the City Attorney acts as Chief Legal
Counsel to the City Council, City Manager, the various City departments and staff, and most City
commissions, committees and boards.
The City provides a full range of services including police and fire protection, construction and
maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal
airport, library, recreational activities, and cultural events. The City owns and operates its water
supply and distribution system and sewage collection and treatment system with secondary
treatment also provided Virtually the entire City has separate storm and sanitary sewer systems.
The City operates a municipal off -street and on -street parking system in the downtown area. The
City also operates a transit system.
The annual budget serves as the foundation for the City's financial planning and control. All
departments of the City are required to submit requests for appropriation to the City Manager in
October. The City Manager uses these requests as the starting point for developing a proposed
budget. The City Manager then presents this proposed budget to the Council for review in
December. The Council is required to hold a public hearing on the proposed budget and to adopt a
final budget no later than March 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. Appropriations that are not encumbered lapse at the end of the year.
s
Information Useful in Assessing the Government's Economic Condition
The City's economic strength is based on the educational sector, medical services, and diversified
manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the
City's largest employers with over 30,000 employees. The University of Iowa had a record high
enrollment for the fall 2012 semester and continues to add new facilities. The academic and
research missions of the University, along with the health care services provided at its hospitals
and clinics, have a tremendously positive economic impact on the area.
The City also has a significant number of national and international businesses, including Fortune
500 companies. The City continues to see sustained production in our major local industries; ACT
Inc., NCS Pearson, and Proctor & Gamble. While established firms continue to prosper and
expand in Iowa City, opportunities are available for growth of new businesses. Continued
economic development efforts with the Iowa City and Coralville Chambers of Commerce, private
interests, the University of Iowa, other surrounding communities, and participation as a member of
the Iowa City Area Development Group, have produced positive results with the retention and
expansion of businesses.
In addition, the Iowa's Technology Corridor is a seven- county alliance surrounding Iowa City and
has been identified as one of the major growth areas for new business development in the State of
Iowa. This Corridor gives employers and workforce access to a region uniquely Iowan, founded
with a manufacturing heritage, but actively seeking new frontiers and opportunities in information
technology, biotechnology and bioprocessing, renewable energy, and educational services.
Continued developments within Iowa City and the region have a favorable impact upon the City's
economy.
As a whole, the City's economy continues to grow, but at a slow pace. The major employers have
been able to maintain steady employment during the recent recession as evidence in the
unemployment rate for Iowa City, which continues to remain low at 3.9% for the month of June
2012, as compared to 5.1% for the State of Iowa, and 8.2% for the national average.
The rate of new housing construction decreased in comparison to the prior year, but the value of
the additions increased This consisted of 80 new single - family houses in 2011, as compared to
108 in 2010; multi - family dwelling units added to the tax rolls for the year ended December 31,
2011 increased to 94, compared to 88 in 2010; and mixed commercial and residential
developments added in 2011 included 51 residential units. Altogether these additions totaled
$45,326,000 in 2011, an increase of $1,369,000 from prior year.
According to the 2010 census, the population of Iowa City is 67,862. This is an increase of 5,672
or 9.1% as compared to the 2000 census.
There are many signs that the City remains healthy and vibrant with great promise for the future.
The relative stability of the University of Iowa, coupled with a history of steady employment by
the City's multi - sector base of manufacturing and service businesses, have helped insulate the
City from any significant negative economic impacts of the recent national recession. The City's
property valuations continue to rise and along with the low unemployment rate, continue to be
indicative of the City's relative economic stability.
Major Initiatives
The City of Iowa City, with the assistance of the University of Iowa's Institute of Public Affairs,
completed the FYI - FY13 Strategic Plan. The strategic planning process involved multiple steps,
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including gathering input from the general public, front line City staff, department directors, and the
City Council. The FY12 — FY13 Strategic Plan established the prevailing organizational priorities
as the following:
1. Economic and Community Development
2. Development of the Downtown and Near Downtown Areas
3. Neighborhood Stabilization
4. A Strong and Sustainable Financial Foundation
5. Coordinated Communication and Customer Service Orientation
The City Council has indicated a strong desire to promote private investment in established
commercial areas and strategic green -field sites that have previously been targeted for new
development. The areas that will be focused on in the coming year include the Towncrest
commercial area, Sycamore Mall and First Avenue, Highway 6/Highway 1 intersection, 420Y' Street
Industrial Park, and Moss Office and Northgate Corporate Parks.
In the Towncrest commercial area, City staff is working to facilitate redevelopment of several key
properties and began work on a streetscape project that will improve the function and aesthetic
appeal of the area. The Towncrest Urban Renewal Area was developed to revitalize the
Towncrest commercial district in ways that would serve existing businesses while also drawing
new retailers, service providers, and consumers to the area. These initial projects are intended to
serve as a catalyst for future investment in this business corridor. The costs for Towncrest
Renewal are estimated at $1,200,000 and will be paid with GO bonds.
The pending departure of an anchor tenant at Sycamore Mall presents a great challenge, but also a
unique opportunity to reinvent the commercial space. Mall ownership has plans for physical
improvements to the property and the City is coordinating four significant capital projects in the
area that are expected to last two or more construction seasons. These projects include
improvements to Sycamore and Lower Muscatine Roads, a grade separation project on First
Avenue, and repaving of Highway 6. These projects, which are underway in different phases,
will each have a positive impact on the traffic flows and aesthetics in this commercial district.
Total cost for these projects is $19,997,000 and will be paid with GO bonds, federal and state
grants, and road use tax.
The Highway 6/Highway 1 intersection is a viable commercial corridor, in large part because of
high traffic counts. Staff will focus efforts in the coming months on municipal public works and
transit property in the area. As the City relocates municipal operations from this area, prime
development space will become marketable. Staff is working on environmental reviews and
preparing a request for proposal for potential development. Total casts for relocating facilities,
abatement and land preparation, as well as, aesthetic improvements are estimated to be
$33,031,000 and will be paid with GO bonds and federal grants.
The City has invested considerable money in infrastructure development and recently achieved a
shovel ready status from the State of Iowa for the 420Y' Street Industrial Park. This project
involves annexing and rezoning 180 acres of land and building the street, water, and sewer
infrastructure needed to support industrial businesses. The Iowa City Area Development Group
and City staff continue to market this property and respond to inquiries from business and site
location consultants. This project is estimated to cost $13,015,000 and will be funded through
bonds, state grants, road use tax, and wastewater operations.
The City has established an urban renewal area for the development of Mass Office Park, a 243 -
acre, 18 -lot office research and mix use subdivision on the northeast edge of the city, just off
Interstate 80. Significant infrastructure improvements are necessary to accommodate the planned
growth and City staff is working with Moss Office Park owners and adjacent businesses on
potential access arrangements to accommodate a phased development approach to this property.
Northgate Corporate Park, adjacent to Moss Office Park, continues to experience build out.
Project costs to build the infrastructure are $3,500,000. The City is looking into potential grants
to fund this project and the remaining cast will be funded with GO bonds.
The second priority of the FY12 — FY13 Strategic Plan is the development of the Downtown and
Near Downtown Areas. Staff is focusing on three distinct geographic areas: Downtown Iowa
City, Northside Marketplace, and Riverfront Crossings.
In the fall of 2011, the Iowa City Downtown District (ICDD), a self - supported municipal
improvement district, was formed presenting a unique opportunity to bring together property
owners, businesses, the University of Iowa and the City of Iowa City. In conjunction with the
ICDD, the city will be actively looking for ways to build upon the success of special events that
successfully bring visitors to the Downtown. The City recently commissioned two separate
market analyses related to Downtown Iowa City, which both highlighted the market potential for
the area. Staff, in partnership with stakeholders, will work to pursue policies and projects that
will more fully realize the potential of the central business district and facilitate new private
investment in the area. Two capital projects that directly impact the Downtown region are the
conversion of Washington Street from one -way to two -way traffic to improve vehicular and
pedestrian traffic flow and the downtown maintenance project that will improve the physical
condition of the infrastructure and streetscape. Other projects that will have a positive impact on
downtown include the University of Iowa announcing they will build the Voxman -Clapp Music
Building at the corner of Clinton and Burlington Streets, the City actively marketing the city -
owned `John Wilson Building' on the eastern edge of Downtown, and the Iowa City Area
Development Group's efforts to establish co- working space in Downtown. The downtown
maintenance project and two-way street conversion projects will cost $926,000 and are being paid
through GO bonds.
The Northside Marketplace area recently benefited from streetscape improvements that advanced
the aesthetics and improved pedestrian and bicycle accommodations and the City is redeveloping
a park in the area. These projects will costs $1,293,000 and are being funding through state
grants, water and wastewater revenues, and bonds. Staff is investigating ways to facilitate new
private investment in the area.
The Riverfront Crossing Development Plan is an initiative to revitalize the area south of Iowa
City's downtown area. It will be a mix -use zoning district that will allow for commercial and
residential development with identified casts estimated at $800,000 and additional expenses
anticipated. Council has approved an Urban Renewal Area for a portion of this area and the City
is considering expanding another urban renewal area to encompass a greater portion of the
Riverfront Crossing area.
Several capital projects are either underway or being considered that would directly impact the
short- and long -term marketability of the Riverfront Crossing area. These projects include
purchasing and rehabilitating the train depot, which relates to a $230,000,000 federal grant that
will be used to develop passenger rail services from Chicago to Iowa City, pending matching
State funds, constructing a mix -use parking facility adjacent to downtown Iowa City which will
include three components: parking facility consisting of approximately 600 parking spaces,
commercial space of approximately 25,000 — 35,000 square feet, and 25 - 75 workforce housing
units. The City is hoping to work with a private partner to develop the commercial and housing
spaces. And a third project is the decommissioning of the north wastewater plant by expanding
0
the south wastewater plant. This relocation project has costs totaling $54,978,000 and is being
funded through federal and state grants, local option taxes, and wastewater revenues.
The third priority from the City's Strategic Plan FY12 — FY13 that will impact the City's
economy is neighborhood stabilization. The Council has indicated a strong desire to stabilize the
neighborhoods surrounding the city core. An effective stabilization strategy requires a review
and analysis of the City's policies, programs, communications, and capital investment decisions
that directly shape and influence a neighborhood's character and livelihood. Staff will be
focusing on the central planning district neighborhoods; however many aspects of the
neighborhood stabilization review will have implications throughout the community. In order to
achieve the Council's goal, staff will focus on the land use regulations, public infrastructure and
open space, private building stock, nuisance mitigation, open stakeholder communication, and
updating planning documents. Projects to further neighborhood stabilization include the
UniverCity Neighborhood Partnership, a joint project between the City and the University of
Iowa to ensure the neighborhoods around the university remain vital, safe, affordable, and
attractive places to live and work for both renters and homeowners by acquiring and rehabilitating
homes near the University of Iowa campus for resale as affordable owner- occupied housing.
Staff will also be actively working with the Iowa City Community School district to promote
increased coordination in school and neighborhood planning as neighborhood schools play a role
in neighborhood stabilization efforts.
The City aims to create a strong and sustainable financial foundation that will provide needed
stability and flexibility while utilizing taxpayer dollars in the most efficient and responsible
manner. In order to achieve this goal, the City is focusing on two primary areas: new financial
policies and strategies that will provide a greater level of financial stability and second, enhance
the level of financial analysis presented to the public so elected officials will have a greater
information foundation on which to base future decisions. Staff has completed or is currently
working on economic development policies, purchasing policies and procedures, target fund
balances, debt service coverage levels, general fund contingency level, and an annual review of
rates, user charges and fines. The City is also examining operations where the City is providing
subsidized service beyond our borders and developing plans to ensure the City is being equitably
reimbursed for such services. In May 2012, Moody's conducted a review of the City as part of
the bond rating process and reaffirmed the City's Aaa bond rating.
The fifth and final priority of the City's Strategic Plan FY12 — FY13 is coordinated
communication and customer service orientation. The City strives to be a high - functioning,
customer service orientated organization that actively supports and engages stakeholders through
clear, open and innovative communication methods. A reorganization of staff created a new
communication team, which has assumed the responsibilities of the front desk at City Hall and
offers front line customer service assistance to visitors and those contacting City Hall via phone
or email. In the summer of 2012, the City launched a redesigned homepage and introduced a City
Facebook and Twitter page. These communication improvements have allowed the City to reach
broader audiences and better promote activities, community news, and service information. The
City has also began implementation of a new software package, including financials, payroll, and
utility billing, that will allow for improved internal workflows and communication. The cost of
this project is $1,433,000 and is being paid with bonds, water, wastewater, sanitation, and
stormwater revenues.
Long -term Financial Planning
It is our intent to support the major initiatives through budget appropriations, departmental
operations, and employee direction so that the organization as a whole is moving in the same
0
direction.
There are still two uncertainties at this time which have influenced the preparation of the three -
year financial plan (FY14 — FY16): 1) the national economy and the potential impact on
municipal operations; and 2) proposals by both the governor and state legislature for revisions to
property tax. Fortunately, economic conditions have remained stable or improved and the 2012
legislative session closed without passing property tax reform.
The City is seeing lower growth in property tax valuations when compared with prior years.
Revaluation occurs biennially and the FY14 budget is based on non - reevaluation year (2012) in
which total property valuation grown was approximately 1 %. In addition to this, a recent
judgment by the Iowa Supreme court has generated a number of appeals with county assessors
across the state for reclassification on multi -unit structures from commercial to residential.
Residential properties are subject to an assessment limitation order in the State of Iowa, which
established taxable value at 52.82% of assessed value in FY14, versus the 100% taxable value
used for commercial properties. Since the court ruling in 2011, a number of commercial property
owners in Iowa City have formed cooperative housing units in order to qualify for reclassification
as residential property. This trend is expected to continue in future years.
The combined effect of a slower growth in valuations and the loss of taxable value due to
cooperative housing conversions has limited growth in property tax revenue. In addition, the City
will experience increased expenditures, specifically an increase in bargaining unit contract costs
exceeding 2 %, additional federal and state regulations and mandates, and rising public safety
retirement funding. The consequences of limited revenue growth and increased expenses will
require continued review of city operations, service delivery, and alternative revenue sources.
In balancing the budget for the three -year period, the City attempted to reduce casts where
possible, while continuing to provide high quality services; identify and eliminate redundancies
that may exist within the organization; examine existing and potential new revenue sources;
promote and plan for economic development and redevelopment throughout the City to ensure
strong property values; determine appropriate staffing levels; provide for necessary improvements
to existing infrastructure and prioritize capital projects; and uphold fiscal integrity and maintain
adequate cash reserves.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of
Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30,
2011. 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 -seven consecutive years. I believe our current report continues to conform to the
Certificate requirements and I will submit it to GFOA to determine its eligibility for another
certificate.
10
In addition, the City received the GFOA's Award for Distinguished Budget Presentation for its
annual appropriated budget beginning July 1, 2012. In order to qualify for the Distinguished
Budget Presentation Award, the City's budget document was judged to be proficient in several
categories including policy documentation, financial planning, and organization. This was the first
year the City has submitted the budget document for the award in almost 20 years.
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, 2012. The City Council, as required by law, is
responsible for the complete and accurate preparation of the City's Comprehensive Annual
Financial Report. I believe that the information presented is accurate in all material respects and
that this report fairly presents the financial position and results of operations of the various funds
of the City.
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of the entire staff of the City's Finance Department. I would like to
express my appreciation to all members of the department who assisted and contributed to its
preparation. I want to especially recognize the contributions of the City's Controller, Robin
Marshall, Assistant Controller, Sara Sproule, Internal Auditor, Nickolas Schaul, Senior Accountant,
Justin Armatis and Payroll Accountant, Chris Hurlbert.
Also, I thank the Mayor, members of the City Council and the City Manager for their interest and
support in planning and conducting the financial operations of the City in a dedicated, responsible,
and progressive manner.
Respe lly submitted,
evin O'Malley
Director of Finance
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Mayor
Council Member and Mayor Pro tem
Council Member
Council Member
Council Member
Council Member
Council Member
City Manager
City Clerk
City Attorney
CITY OF IOWA CITY, IOWA
LISTING OF CITY OFFICIALS
June 30, 2012
ELECTED OFFICIALS
Matt Hayek
Susan Mims
Connie Champion
Terry Dickens
Rick Dobyns
Michelle Payne
Jim Throgmorton
APPOINTED OFFICIALS
Thomas Markus
Marian K. Karr
Eleanor Dilkes
DEPARTMENT DIRECTORS
Assistant to City Manager
Director of Housing and Inspection Services
Library Director
Director of Planning & Community Development
Director of Public Works
Director of Transportation Services
Senior Center Coordinator
Fire Chief
Parks and Recreation Director
Director of Finance
Chief of Police
Geoff Fruin
Douglas W. Boothroy
Susan Craig
Jeff Davidson
Rick Fosse
Chris O'Brien
Linda Kopping
Andrew Rocca
Mike Moran
Kevin O'Malley
Sam Hargadine
13
Term Expires
January 2, 2016
January 2, 2014
January 2, 2014
January 2, 2014
January 2, 2016
January 2, 2016
January 2, 2016
Date of Hire
December 1, 2010
May 21, 1979
March 18, 1996
November 28, 2011
September 22, 1975
July 28, 1975
January 26, 1981
February 22, 1984
December, 29, 1997
March 20, 1995
July 14, 1978
September 26, 1983
August 19, 1985
August 29, 2005
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Iowa City
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2011
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.
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14
EideBailly.
CPAs 6i 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, 2012, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the
management of the City of Iowa City, Iowa. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2012, 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 December 12,
2012, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on 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.
15
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required supplementary information, as listed in the table of contents,
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole. 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 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 financial statements. The combining nonmajor fund financial statements and the
schedule of expenditures of federal awards are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the financial statements 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 do not express an opinion or provide any assurance on them.
Dubuque, Iowa
December 12, 2012
16
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, 2012. This narrative is intended to be used in
conjunction with additional information that is included in the letter of transmittal, which can be found on
pages 3 — 11 of this report.
Financial Highlights
• The assets of the City of Iowa City exceeded its liabilities at the close of the fiscal year ending June 30,
2012 by $484,024,000 (net assets). Of this amount, $97,756,000 (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 $24,181,000 during the fiscal year. Governmental activities
increased by $17,949,000 and business -type activities increased by $6,232,000.
• At the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $78,044,000, an increase of $8,824,000 in comparison with the prior year. Of this total
amount, approximately $13,907,000 or 17.8% is unassigned and available for spending at the City's
discretion.
• At the end of the current fiscal year, the City's unassigned fund balance for the General Fund was
$14,273,000 or 29.1% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components: 1) government -wide financial
statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government -wide Financial Statements: The government -wide. financial statements are designed to provide
readers with a broad overview of the City's finances in a manner similar to a private- sector business.
The statement of net 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.
17
The government -wide financial statements may be found on pages 28 — 31 of this report
Fund Financial Statements: A.fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal
requirements. All of the funds of the City can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental Funds: Governmental funds are used to account for essentially the same function reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government's near -term financing requirements and is
typically the basis that is used in developing the next annual budget.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison.
The City has five major governmental funds: General Fund, Employee Benefits Fund, Community
Development Block Grant Fund, Other Shared Revenue and Grants Fund, and Debt Service Fund.
Information is presented separately in the governmental funds balance sheet and in the governmental funds
statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other
non -major governmental funds is combined into a single aggregated presentation and are referenced under a
single column as "Other Governmental Funds ". Individual fund data on each of these non -major
governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget
comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate
compliance with the adopted budget.
The basic governmental funds financial statements can be found on pages 32 — 37 of this report.
Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise.funds are used
to report the same functions presented as business -type activities in the government -wide financial statements.
The City uses enterprise funds to account for its Airport, 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 financial statements provide the same type of information as the government -wide financial
statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority
Funds are considered to be major funds and are reported individually throughout the report. The other three
non -major enterprise funds are grouped together for reporting purposes and listed under a single heading
"Other Enterprise Funds ". Detailed information for each of the non -major funds is provided in the combining
statements on pages 100 — 102. Individual fund data for the Internal Service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 38 — 43 of this report.
18
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not available to support the City's own programs and therefore are not
reflected in the government -wide financial statements. The City has two fiduciary funds: Project Green and
Library Foundation, which are maintained as agency funds.
The basic fiduciary funds financial statements can be found on page 44.
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 45 - 88 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 $484,024,000 at the close of the fiscal year ended June 30,
2012.
By far, the largest portion of the City's net assets reflect its investment in capital assets (e.g., land, building,
machinery and equipment, improvements other than buildings, and infrastructure), less any related debt to
acquire those assets that is still outstanding. The City uses these capital assets to provide services to its
citizens; consequently, these assets are not available for future spending. Although the City's investment in
its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other resources, since the capital assets themselves cannot be used to liquidate these
liabilities.
City of Iowa City. Net Assets
June 30, 2012
(announts expressed in thousands)
19
Cmvemmental
Business -type
activities
activities
Total
2012
2011
2012
2011
2012
2011
Cuucnt and other asset
$ 172,293 $
161,648
$ 98,069 $
10,399
$ 270,362 $
262,047
Capital assets
188,491
184,036
265,559
265,165
454,050
449,201
Total As sets
360,784
345,684
363,628
365,564
724,412
711,248
Long term liabilities outstanding
78,754
82,352
84,323
91,812
163,077
174,164
Cuncnt and other liabilities
72,105
71,356
5,206
5,885
77,311
77,211
Total Liabilities
150,859
153,708
89,529
97,697
210,388
251,405
Net assets:
Investol in orpital assets, net of
relatol debt
135,998
123,935
195,073
186,177
331,071
310,112
Restricted
35,021
31,179
20,176
20,658
55,197
51,837
Unrestricted
38,906
36,862
58,850
61,032
97,756
97,894
Total Nct Assets
$ 209,925 S
191,976
$ 274,099 S
267,867
$ 484,024 S
459,843
19
A portion of the City's net assets, $55,197,000 or 11.4 %, represents resources that are subject to external
restrictions on how they may be used. The remaining balance of the unrestricted net assets, $97,756,000 or
20.2 %, 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, 2012, 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 $17,949,000. The
increase in net assets of governmental activities is primarily due to receiving grants to fund expenditures in
capital assets for flood recovery and mitigation and community development projects and collection of a local
option sales tax to be used to fund future capital improvement projects.
The following is a more detailed review of FY 12's operation.
City rf hrwa City's Changes in Net Assets
(amounts expressed in thousands)
9
Cnnerumental
Business -type
activities
activities
Total
2012
2011
2012
2011
2012
2011
Revenues:
Program Revenues:
Charges for services
$ 8,155 $
8,199
$ 36,095 $
36,334
$ 44,250 $
44,533
Opemtinggrants and contributions
8,682
13,517
6,782
7,448
15,464
20,965
Capital grants and contributions
6,078
6,048
6218
4,145
12,296
10,193
General Revenues:
Property taxes
50,516
48,011
-
-
50,516
48,011
Road use tax
6,394
6,068
-
-
6,394
6,068
Local option sales tax
8,644
8,911
-
-
8,644
8,911
Other taws
2,491
2,464
-
-
2,491
2,464
Eamings on investments
1,823
1,539
813
954
2,636
2,493
Gain on disposal of capital assets
2,950
761
336
314
3,286
1,075
Other
4,228
6,230
484
381
4,712
6,611
Total revenues
99,961
101,748
50,728
49,576
150,689
151,324
Expenses:
Public safety
21,186
18,867
-
-
21,186
18,867
Public works
17556
19,145
-
-
17556
19,145
Culture and recreation
13,107
10,811
-
-
13,107
10,811
Community and economic development
16,305
16,501
-
-
16,305
16,501
General government
7,591
7,356
-
-
7 591
7,356
Interest on long -terra debt
2,400
2,841
-
-
2,400
2,841
Wastewater treatment
-
-
11,069
10,971
11,069
10,971
Water
-
-
8,781
8,523
8,781
8,523
sanitation
-
-
8,315
7,461
8,315
7,461
Housingauthority
-
-
7,911
7,448
7,911
7,448
Parking
-
-
4,167
4,135
4,167
4,135
Airport
-
-
1,127
1,049
1,127
1,049
stonnwater
-
-
1,304
1,418
1,304
1,418
Cabletelevision
-
-
689
638
689
638
Taal expenses
78,145
75,521
43,363
41,643
121,508
117,164
Change in net assets before transfers
and extraordinary items
21,816
26,227
7,365
7,933
29,181
34,160
Transfers
(3,867)
(4,020)
3,867
4,020
-
-
Extmordinary items
-
-
(5,000)
-
(5,000)
-
Changeinnetassets
17,949
22,207
6,232
11,953
24,181
34,160
Net assets beginning of year
191,976
169,769
267,867
255,914
459,843
425,683
Net assets end of year
$ 209,925 $
191,976
$ 274,099 $
267,867
$ 484,024 $
459,843
9
The total revenues for governmental activities for FY12 were $99,961,000. Governmental activities are
primarily funded through taxes, $68,045,000 or 68.1 %, and grants and contributions, $14,760,000 or 14.8 %.
Grants and contributions decreased from prior year by $4,805,000 as the City's expenditures for flood
mitigation, which were covered by I -Jobs and supplemental Community Development Block Grants, have
decreased.
Expenses for governmental activities totaled $78,145,000. Governmental activities are tracked by function
including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and
General Government. In FY12, Public Safety accounted for the highest portion of governmental expenses,
$21,186,000 or 27.1 %, and increased over the prior year due to the addition of a fourth fire station during
FY12. Public Works, $17,556,000 or 22.5 %, and Community and Economic Development, $16,305,000 or
20.9 %, made up another large portion of governmental expenses and each decreased from the prior year due
to fewer flood recovery and mitigation projects.
Business -type Activities: Business -type activities increased the City's total net assets by $6,232,000. The
increase in net assets was primarily in the Wastewater fund and is due to an increase in capital assets not
funded with debt. The City has been able to utilize federal and state grants to fund a flood recovery and
mitigation project, decommission of the North Wastewater Plant through expansion of the South Wastewater
Plant, rather than have to issue new debt to pay for this project. The Sanitation fund incurred a decrease in net
assets due to an impairment loss when the Iowa City Landfill experienced a fire in one of its newly
constructed cells. For all business -type activities, revenues exceeded expenses by $7,365,000.
Revenues for business -type activities totaled $50,728,000. The primary revenue source for business -type
activities is charges for services, $36,095,000 or 71.2 %. In addition for FY12, the City's business type -
activities had a significant portion of their revenues from grants and contributions used to help fund capital
and flood recovery projects for business -type activities, $13,000,000 or 25.6 %. This is an increase of
$1,407,000 from the prior year due to additional expenses for the Wastewater flood mitigation project that are
covered by grants.
The total expenses for business -type activities in FY12 were $43,363,000. Wastewater Treatment represented
the highest portion of business -type activities, $11,069,000 or 25.5 %, with Water, $8,781,000 or 20.3 %,
Sanitation, $8,315,000 or 19.2 %, and Housing Authority, $7,911,000 or 18.2 %, making up the remainder of
the majority of business -type activities expenses.
The graphs on the following pages represent a breakdown of revenue by source and expenditures by program
area for governmental and business -type activities.
21
Governmental Activities
FY2012 Revenue
by Source
Misc.
Other Charges for
Other Taxes 9% services
18% 8%
Property taxes
'T -- 50%
Grants and
Contributions
15%
Business -Type Activities
FY2012 Revenue
by Source
Grants and Misc. Other
22
Business -Type Activities
FY2012 Expenditures
by Program Area
(amnuWs expressed n thousands)
14,000
12,000
10,000
8,000
i
A 6,000
4,000
2,000
0
Program Area
Safety
Community
Public and
Works Econ Dev
Culture and
Recreation
General
Govt
Interest
Expense
Wastewater
Treatment
Housing
Authority
WaterSanitation
Parking
Stormwater
�rpor Cable TV
23
Governmental Activities
FY2012 Expenditures
by Program Area
(amnuWs expressed in thousands)
Public
24,000
22,000
20,000
18,000
16,000
� 1
14,000
12,000
A 1
10,000
8,000
6,000
4,000
2,000
0
Program Area
Wastewater
Treatment
Housing
Authority
WaterSanitation
Parking
Stormwater
�rpor Cable TV
23
Treatment
Housing
Authority
WaterSanitation
Parking
Stormwater
�rpor Cable TV
23
23
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.fundv is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such information may
be /is useful in assessing the City's financing requirements. In particular, unassigned.fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the fiscal year.
The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions effective with the June 30, 2011 financial statements. Fund balances for the governmental funds
are reported in classifications that comprise a hierarchy based on the extent to which the government honors
constraints on the specific purposes for which amounts in those funds can be spent.
As of the fiscal year ended June 30, 2012, the City's governmental funds reported combined ending fund
balances of $78,044,000, an increase of $8,824,000 in comparison with the prior year. Of this total amount,
$13,907,000 constitutes unassigned fund balance, which is available to use as working capital for the General
Fund since property tax revenues are received only twice a year and the remainder is available to meet the
future needs of the City. The remainder of the fund balance is not available for new spending because of
constraints imposed externally by creditors, grantors, contributors, or laws or regulations of other
governments or constraints imposed internally on the specific purposes for which these amounts can be spent.
The restricted fund balance of $58,632,000 or 75.1% contains external restraints on its use. The assigned
fund balance of $5,191,000 or 6.7% has been identified by the City to be used for specific purposes. The
nonspendable fund balance is $314,000 or 0.4 %, which the City is contractually required to maintain intact or
cannot be spent because it is in a nonspendable format, such as inventories.
The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2012, the
unassigned fund balance of the General Fund was $14,273,000 while General Fund's total fund balance was
$43,557,000. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned
fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 29.1% of
total General Fund expenditures of $49,016,000, while total fund balance represents 88.9% of that same
amount.
The fund balance of the City's General Fund increased by $7,485,000 during the current fiscal year. This was
due to collection of a local option sales tax that took effect in FY10 to be used to fund future capital
improvement projects. This tax will be collected through FY 13.
The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($287,000) as
compared to a deficit balance of ($1,741,000) in the prior period. This fund accounts for transactions relating
to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to
capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If
not, bonds will be issued in FY 13 to cover the capital expenditures.
The 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. This fund balance increased by $4,823,000 during the fiscal
year due to bond proceeds that will be used to fund upcoming capital improvement projects.
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 $264,293,000, an increase in net asset of $5,505,000. This
was primarily due to capital contributions of federal and state grants to fund capital improvement projects to
help with flood recovery and mitigation and transfer of business -type capital assets from governmental capital
24
project funds. Of the enterprise funds' net assets, $195,073,000 is invested in capital assets, net of related
debt. Unrestricted net assets totaled $49,044,000, a decrease of $2,909,000 compared to the previous year
due to additional funds being classified as restricted by bond ordinance or grant agreements.
The Internal Service funds showed net assets totaling $27,913,000 as of June 30, 2012, an increase of
$1,798,000 primarily due to an operating income in the Loss Reserve Fund as claims were less than
anticipated and an operating income in the Equipment Reserve Fund to build up reserves for future capital
outlay.
Budgetary Highlights
The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine
functional areas as required by state statute, not by fund or fund type.
The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues
by $106,986,000 or 50.8% and the expenditure budget by $162,901,000 or 75.0% to a total of $380,225,000.
These increases were due primarily to capital projects in governmental and business -type funds because of
timing of completion of projects and ongoing recovery from the flood of 2008 and the associated grants.
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, 2012 amounts to $454,050,000, 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, 2012 increased by
$4,455,000 for governmental activities compared to the prior year and increased by $394,000 for business-
type activities over the prior year.
The following table reflects the $454,050,000 investment in capital assets, net of accumulated depreciation.
Land
Buildings
Ingrovenents otherthan
buildings
Machinery and equipnent
Infrastructure
Construction in progress
TOW
City of Lnva City's Capital Assets
(net of defurciation)
(amounts expressed in thousands)
C,owrumental
Business -type
Activities
Activities
Total
2012 2011
2012 2011
2012
2011
$ 24,964 $
23,887
$ 25,886 $
25,824
$ 50,850 $
49,711
46,623
44,748
72,068
69,146
118,691
113,894
4,103
3,584
6,114
6,561
10,217
10,145
17,330
16,647
7,091
8,070
24,421
24,717
81642
79,162
138,282
136,031
220,924
215,193
11829
16,008
16,118
19,533
28,947
35,541
$ 188,491 $
184,036
$ 265,559 $
265,165
$ 454.050 $
449,201
Major capital asset events during the current fiscal year included the following:
• Construction continued on the infrastructure and site grading for the 420th Street Industrial Park. At
the end of the fiscal year, expenses were moved into construction in progress totaling $310,000 for
25
water, $490,000 for stormwater, $1,787,000 for streets, and $1,748,000 for wastewater. Project will
be completed in FY2013.
Work continued on the South Wastewater Plant Expansion. This project will relocate the North
Wastewater Treatment Plant and consolidate operations into the South Wastewater Treatment Plant
through expansion of south plant facilities and demolition of the north plant facilities. Funding for
the project includes $22,000,000 in federal EDA grants, $13,546,000 in local options sales tax,
$5,500,000 in I -JOBS grant monies, $5,000,000 in CDBG Public Infrastructure grants, as well as,
$1,890,000 from Wastewater user fees. Expenses totaling $5,717,000 were moved into construction
in progress at the end of FY12. This project is scheduled to be complete in FY 14.
A new landfill cell was completed. $2,436,000 in FY12 expenses were added to prior years'
expenses for a total of $7,812,000. This cell was significantly damaged by a fire in May 2012 shortly
after it opened. An impairment loss of $5,000,000 was recognized in FY12 and the remaining costs
are reported as construction in progress as the cell is not operational during reconstruction.
Construction was completed on the Eastside Recycling Center. FY12 expenses of $455,000 were
added to prior year expenses for a total of $4,627,000 capitalized this fiscal year.
A variety of street and bridge construction projects in residential and new industrial areas were
capitalized for a total of $4,327,000. This includes $2,290,000 for the 420th Street — Highway 6 to
Taft project to accommodate the 420th Street Industrial Park and $1,407,000 for the Dodge Street/1-
80 Pedestrian Bridge. An additional $7,025,000 remains in construction in progress including
expenditures for Sycamore Street — Highway 6 to the City Limits project for $1,544,000 and
$1,787,000 for the 420th Street Industrial Park
Additional information on the City's capital assets can be found in Note 5 to the financial statements.
Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of
$143,505,000. Of this amount, $75,320,000 comprises debt backed by the full faith and credit of the City.
However, $1,495,000 or 2.0% of the general obligation bonds is debt that serves enterprise funds and is
abated by their charges for services and $5,595,000 or 7.4% of these bonds is debt that will be paid with Tax
Increment Financing revenues. $68,185,000 represents revenue bonds secured solely by specific revenue
sources.
City of Iowa City's Outstanding Debt
CRneral Obligation and Revenue Bonds
(amounts expressed in thousands)
Governmental Business -type
Activities Activities
2012 2011
General obligation bonds $ 73,825 $ 77,429
Revenue bonds - -
Total �$ 73,825 �$ 77,429
2012
$ 1,495
68,185
$ 69,680
2011
$ 3,146
74,965
$ 78,111
Total
2012
$ 75,320
68,185
$ 143,505
2011
$ 80,575
74,965
$ 155,540
The City did issue $9,690,000 of General Obligation bonds during FY2012. However, during the current
fiscal year the City's total bonded debt still decreased by $12,035,000.
The City continues to have the same excellent bond rating on its General Obligation bonds that it has had
for the past several years. This rating is given to those bonds judged to be of the best quality and carrying
the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of
June 30, 2012 were as follows:
General obligation bonds
Aaa
Parking revenue bonds
A
Wastewater treatment revenue bonds
A
Water revenue bonds
A
?s3
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 $226,982,000. With outstanding General Obligation Debt
applicable to this limit of $75,320,000 we are utilizing 33.2% 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
In May 2009, the voters of Iowa City approved a one cent local option sales tax. Collection of this tax
began July 1, 2009 and will continue for four years. In FY12, the City collected $8,644,000 in local
option sales tax. The City Council has indicated that the priorities for use of this sales tax will be capital
projects for the elevation of Dubuque Street, including the reconstruction of Park Road Bridge, and the
expansion of the South Wastewater Plant and demolition of the North Wastewater Plant. Sales tax
proceeds are used to provide local match for available state and federal funding and to reduce our reliance
on property tax and increased user fees that would otherwise be needed to fund such projects. This local
option sales tax will end on June 30, 2013.
During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee
tax as a revenue alternative to property tax. The Iowa City Council passed a local franchise fee tax of 1%
on natural gas and electricity that became effective April 1, 2010. This revenue is being utilized to
support additional public safety initiatives, including operating a fourth fire station. In FY12, the City
collected $822,000 in local franchise fee.
The City expects continued constraints by the State's property tax formula and there is a potential for
commercial property tax reform during the next legislative session. The rollback on residential properties
negatively affects the City's general operating funds and without the potential for new revenue sources,
like those mentioned above, the City's opportunities for new initiatives are limited. The Council has
established a balanced budget in the General Fund for FY13 that strives to maintain current service
delivery levels. The tax levy rate per $1,000 of taxable valuation for FY13 is provided below:
General Levy $ 8.100
Debt Service Levy 4.443
Employee Benefits Levy 3.193
Transit Levy 0.950
Liability Insurance Levy 0.313
Library Levy 0.270
Total City Levy $ 17.269
Requests for Information
This report is designed to provide a general overview of the City of Iowa City's finances for all of those
with an interest in the government's finances. Questions concerning any of the information provided in
this report, or requests for additional financial information should be addressed to City of Iowa City,
Finance Department, 410 E. Washington Street, Iowa City, IA, 52240.
27
CITY OF IOWA CITY, IOWA
STATEMENT OF NET ASSETS
June 30, 2012
(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
Inventories
Assets held for resale
Restricted assets:
Equity in pooled cash and investments
Other post employment benefits asset
Capital assets:
Land and construction in progress
Other capital assets (net of accumulated depreciation)
Total assets
Liabilities
Accounts payable
Contracts payable
Accrued liabilities
Interest payable
Deposits
Due to other governments
Notes payable
Unearned revenue
Noncurrent liabilities:
Due within one year:
Employee vested benefits
Bonds payable
Due in more than one year:
Employee vested benefits
Other post employment benefits obligation
Notes payable
Bonds payable
Landfill closure/post- closure liability
Total liabilities
Governmental Business -type
Activities Activities Total
$ 60,441 $
41,832 $
102,273
50,754
-
50,754
430
3,161
3,591
179
488
667
16,524
963
17,487
(11,938)
11,938
-
8,055
2,634
10,689
734
414
1,148
1,100
-
1,100
45,986
36,631
82,617
28
8
36
37,792
150,699
42,004
223,555
79,796
374,254
360,784
363,628
724,412
2,593
408
3,001
1,330
1,838
3,168
2,665
184
2,849
208
1,405
1,613
956
767
1,723
2,991
324
3,315
805
-
805
60,557
280
60,837
1,226
317
1,543
11,337
6,584
17,921
1,005
243
1,248
2,086
636
2,722
211
-
211
62,889
63,959
126,848
-
12,584
12,584
150,859
89,529
240,388
(continued)
CITY OF IOWA CITY, IOWA
STATEMENT OF NET ASSETS (continued)
June 30, 2012
(amounts expressed in thousands)
Net Assets
Invested in capital assets, net of related debt
Restricted for or by:
Employee benefits
Capital projects
Debt service
Other purposes
Bond ordinance
State statute
Future improvements
Grant agreement
Unrestricted
Total net assets
Governmental Business -type
Activities Activities
$ 135,998 $ 195,073
2,057
20,565
11,009
1,390
38,906
15,829
1,092
100
3,155
58,850
Total
331,071
2,057
20,565
11,009
1,390
15,829
1,092
100
3,155
97,756
$ 209,925 $ 274,099 $ 484,024
The notes to the. financial statements are an integral part of this statement.
7
Fractions/Programs: Expenses
Governmental activities:
CITY OF IOWA CITY, IOWA
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Program Revenues
21,186 $
Operating
Capital
Charges Grants and
Grants and
for Services Contributions
Contributions
Public safety $
21,186 $
3,401 $
379 $
200
Public works
17,556
1,112
1,943
2,975
Culture and recreation
13,107
825
-
904
Community and economic development
16,305
-
6,360
1,999
General government
7,591
2,817
-
-
Interest on long -term debt
2,400
-
-
-
Total governmental activities
78,145
8,155
8,682
6,078
Business -type activities:
Wastewater treatment
11,069
12,670
- 3,223
Water
8,781
8,419
- 977
Sanitation
8,315
8,115
- 2
Housing authority
7,911
207
6,782 -
Parking
4,167
4,743
- 4
Airport
1,127
306
- 1,576
Stormwater
1,304
811
- 436
Cable television
689
824
- -
Total business -type activities
43,363
36,095
6,782 6,218
Total
$ 121,508 $
44,250 $
15,464 $ 12,296
General revenues:
Property taxes, levied for general purposes
Road use tax
Hotel /motel tax
Gas and electric tax
Local option sales tax
Utility franchise tax
Earnings on investments
Gain on disposal of capital assets
Miscellaneous
Transfers
Extraordinary items
Total general revenues, transfers, and extraordinary items
Changes in net assets
Net assets beginning of year
Net assets end of year
The mites to the finunciul statements are an integral part of this statement.
30
Net (Expense) Revenue and
Changes in Net Assets
Govemmental Business -type
Activities Activities Total
$ (17,206) $
- $ (17,206)
(11,526)
- (11,526)
(11,378)
- (11,378)
(7,946)
- (7,946)
(4,774)
- (4,774)
(2,400)
- (2,400)
(55,230)
- (55,230)
- 4,824
4,824
- 615
615
- (198)
(198)
- (922)
(922)
- 580
580
- 755
755
- (57)
(57)
- 135
135
- 5,732
5,732
(55,230) 5,732
(49,498)
50,516
-
50,516
6,394
-
6,394
811
-
811
858
-
858
8,644
-
8,644
822
-
822
1,823
813
2,636
2,950
336
3,286
4,228
484
4,712
(3,867)
3,867
-
-
(5,000)
(5,000)
73,179
500
73,679
17,949
6,232
24,181
191,976
267,867
459,843
$ 209,925 $
274,099 $
484,024
31
CITY OF IOWA CITY, IOWA
BALANCE SHEET
GOVERNMENTAL FONDS
June 30, 2012
(amounts expressed in thousands)
32
Special Revenue
Community
Other
Development
Shared
Other
Employee
Block
Revenue and
Debt
Governmental
General
Benefits
Grant
Grants
Service
Funds
Total
Assets
Equity in pooled cash and investments
$ 21,963
$ 1,773
$ 392
$ 15
$ 10,147
$ 2,690
$ 36,960
Receivables,
Property tax
29,125
9,325
-
-
13,024
290
50,754
Accounts and unbilled usage
225
-
-
197
-
9
430
Interest
109
-
1
-
19
2
131
Notes
360
-
13,720
999
1,545
-
16,524
Advances to other funds
341
-
19
-
196
-
545
Due from other governments
3,939
257
10
1,796
-
1,961
7,962
Inventories
244
-
-
-
-
-
244
Assets held for resale
170
-
-
765
-
165
1,100
Restricted assets,
Equity in pooled cash and investments
24,221
30
21,735
45,996
Total assets
$ 79,596
$ 11,355
$ 14,131
$ 3,702
S 24,921
S 26,931
S 100,536
(continued)
32
CITY OF IOWA CITY, IOWA
BALANCE SHEET (continued)
GOVERNMENTAL FONDS
June 30, 2012
(amounts expressed in thousands)
The notes ta the financial statements are an integral part of this statement
33
Special Revenue
Community
Other
Development
Shared
Other
Employee
Block
Revenue and
Debt
Governmental
General
Benefits
Grant
Grants
Service
Funds
Total
Liabltitics and Fund Balances
Liabilities,
Accounts payable
$ 1,323
$ 40
$ -
$ 90
$ -
$ 190
$ 1,623
Contracts payable
-
-
-
-
-
1,330
1,330
Accrued liabilities
657
1
6
41
-
22
727
Advances from other funds
2,150
-
-
196
-
341
2,677
Due to other governments
19
-
-
25
-
2,947
2,991
Interest payable
-
-
-
25
-
-
25
Notes payable
170
-
-
635
-
-
905
Deferred revenue
30,770
9,514
13,739
2,106
13,912
1,319
71,359
Liabilities payable from restricted assets,
Deposits
950
5
1
956
Total liabilities
36,039
9,555
13,744
3,103
13,912
6,139
92,492
Fund balances,
Nonspendable
314
-
-
-
-
-
314
Restricted
23,779
1,900
397
599
11,009
21,059
59,632
Assigned
5,191
-
-
-
-
-
5,191
Unassigned
14,273
(366)
13,907
Total fund balances
43,557
1,900
397
599
11,009
20,692
79,044
Total liabilities and fund balances
$ 79.596
$ 11355
$ 14,131
$ 3,702
S 24,921
$ 26.931
S 160,536
The notes ta the financial statements are an integral part of this statement
33
CITY OF IOWA CITY
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS
June 30, 2012
(amounts expressed in thousands)
Total governmental fund balances $ 78,044
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. 27,913
Other long -term assets are not available to pay for current period
expenditures and therefore are deferred in the funds:
Notes, grants and other receivables - Earned but unavailable 10,801
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the funds. 181,741
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds. (2,118)
Accrued post employment benefit obligations are not due and
payable in the current period and therefore are not reported
in the funds. (2,030)
Bonds payable are not due and payable in the current period
and therefore are not reported in the funds. (74,226)
Notes payable are not due and payable in the current period
and therefore are not reported in the funds. (211)
Accrued interest on bonds (183)
Internal balance due to integration of internal service funds (9,806)
Total net assets of governmental activities $ 209,925
The notes to the financial statements are an integral part of this statement.
34
CITY OF IOWA CITY, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current:
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service :
Principal
Interest
Capiul outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of debt
Sale of capiul assets
Insurance Recoveries
Premium on issuance of bonds
Transfers in
Transfers out
Total other financing sources and (uses)
Net change in fund balances
Fund Balmns, Beginning
Fund Balances, Ending
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Special Revenue
Community Other
Development Shared Other
Employee Block Revenue and Debt Govemmenfal
General Benefits Grant Grant% Service Funds Total
$ 37,388 $
9,961 $
- $
- $
13,254 $ 1,046 $
61,649
1,307
-
-
-
- -
1,307
4,450
-
788
12,869
- 3,845
21,952
2,396
197
-
21
- -
2,614
1,484
-
29
84
153 I8
1,768
4,422
2
907
191
228
5,750
51,447
10,160
1,724
13,165
13,407 5,137
95,040
19,249 533 - -
- 309
20,091
7,385 - - 4,997
- 3,080
15,462
12,153 - - -
- 922
13,075
1,328 - 3,222 1,970
- 1,517
8,037
7,026 357 - -
- 170
7,553
- - - - 13,294 - 13294
- - - - 2,543 - 2,543
1,875 2 8,063 6,066 16,006
49,016 890 3,224 15,030 15,837 12,064 96,061
2,431 9,270 (1,500) (1,865) (2,430) (6927) (1,021)
_
_
_
_
_
9,690
9,690
1,183
-
-
2,436
-
-
3,619
-
-
-
53
53
-
-
-
-
-
165
165
9,818
-
-
577
288
8,816
19,499
(5,947)
(10,002)
(38)
(1,030)
(6,164)
(23,181)
5,054
(10,002)
(38)
1,983
288
12,560
9,845
7,485
(732)
(1,538)
118
(2,142)
5,633
8,824
36,072
2,532
1,925
481
13,151
15,059
69,220
$ 43,557 $ 1,800 $ 387 $ 599 $ 11,009 $ 20,692 $ 78,044
The notes to the financial .statements are an integral part of this .statement.
35
36
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, 2012
(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
Transfers of capital assets (to) \from enterprise funds - act
Transfers of capital assets (to) \from internal service funds - net
Capital assets contributed
Depreciation expense
Bond proceeds are reported as other financing sources in governmental funds
and thus contribute to the change in fund balance. In the statement of net
assets, however, issuing debt increases long -term liabilities and does not affect
the statement of activities. Similarly, repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net assets.
Debt issued
Discount/ (premium) on bonds issued
Repayments of debt
Amortization of premium
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 pact employment benefit obligations
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 act 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 miter to the firumaial statements are an integral part of this statement.
37
$ 10,827
(214)
4
1,154
(6,438)
8,824
5,333
(9,690)
(165)
13,294
79
3,518
219
(59)
(346)
64
(669)
(6)
1,071
$
17,949
CITY OF IOWA CITY, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FONDS
June 30,2012
(amounts expressed in thousands)
38
Governmental
Business -type
Activities - Enterprise Funds
Activities -
Other
Internal
Wastewater
Housing
Enterprise
Service
Parking
Treatment
Water
Sanitation
Authority
Funds
Total
Funds
Assets
Current assets:
Equity in pooled cash and investments
$ 5,219
$ 14,551
$ 8,284
$ 7,271
$ 3,639
$ 2,868
$ 41,832
$ 23,581
Receivables:
Accounts and unbilled usage
8
1,408
976
484
2
283
3,161
-
Interest
I8
341
30
44
49
6
488
48
Notes
-
-
-
-
963
-
963
-
Advances to other funds
-
-
-
3,796
-
-
3,796
-
Due from other governments
-
717
1,289
8
35
585
2,634
93
Inventories
-
-
414
-
-
-
414
490
Total current assets
5,245
17,017
10,993
11,603
4,688
3,742
53,288
24,212
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments
1,528
11,905
4,260
15,561
3,155
222
36,631
-
Other post employment benefits asset
-
-
-
-
-
8
8
28
Capita assets:
Land
6,798
759
6,296
1,912
690
9,431
25,886
45
Buildings
26,392
59,701
24,019
5,535
5,350
4,915
125,912
821
Improvements other than buildings
328
7,371
2,351
144
9
357
10,560
50
Machinery and equipment
745
9,766
10,458
415
116
650
22,150
15,731
Infmstructme
-
91,044
52,511
11,298
-
49,829
204,682
1,577
Accumulated depreciation
(15,583)
(70,676)
(25,618)
(10,252)
(3,850)
(13,770)
(139,749)
(11,564)
Constmcdon in progress
1,020
7,706
998
2,90
-
3,490
16,118
90
Total noncurrent assets
21,228
117,576
75,275
27,517
5,470
55,132
302,198
6,778
Total assets
26,473
134,593
86,268
39,120
10,158
58,874
355,486
30,990
(continued)
38
Liabilities
Current liabilities:
Accounts payable
Contracts payable
Accrued liabilities
Employee vested benefits
Due to other governments
Deferred revenue
Interest payable
Bonded debt payable (net of unamortized
premium and discounts)
Total current liabilities
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits
Advances from other funds
Employee vested benefits
Bonded debt payable (net of unamortized
premium and discounts)
Other post employment benefits obligation
Landfill closure/postclosure liability
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debt
Restricted by bond ordinance
Restricted by state statute
CITY OF IOWA CITY, IOWA
STATEMENT OF NET ASSETS (continued)
PROPRIETARY FUNDS
11,478 64,743 49,679 11,956 2,315 54,902
1,361 11,093 3,375 - - -
1,092
Restricted for future improvements - - - - - 100
Restricted by grant agreement - - - - 3,155 -
Unrestricted 3,883 16,196 10,220 12,497 4,193 2,055
Total net assets $ 16,722 $ 92,032 $ 63,274 $ 25,545 $ 9,663 $57,057
Adjustment to reflect the consolidation of internal service fund actiN ties
related to enterprise funds.
Net assets of business -type activities
The notes to the financial statements are an integral /tan of this statement.
39
195,073 6,750
15,829 -
1,092 -
100 -
3,155 -
49,044 21,163
264,293 $ 27.913
9,806
$ 274,099
June 30, 2012
(amounts expressed in thousands)
Governmental
Business -type
Activities - Enterprise Funds
Activities -
Other
Internal
Wastewater
Housing
Enterprise
Service
Parking
Treatment Water
Sanitation
Authority
Funds
Total
Funds
$ 37
$ 49 $ 133
$ 37
$ 21
$ 131
$ 408
$ 970
304
502 281
274
-
477
1,838
-
30
38 44
42
16
14
184
1,938
50
57 77
85
29
20
317
63
-
- I8
289
17
-
324
-
280
_ _
_
_
_
280
-
166
812 427
-
-
-
1,405
-
517
4,924 1,143
-
-
-
6,584
-
1,384
6,382 2,123
727
82
642
11,340
2,971
I
- 413
16
329
8
767
-
507
- -
-
IS
1,139
1,664
-
37
40 62
67
21
16
243
50
7,705
36,004 20,250
-
-
-
63,959
-
117
135 146
181
45
12
636
56
-
- -
12,584
-
-
12,584
-
8,367
36,179 20,871
12,848
413
1,175
79,853
106
9,751
42,561 22,994
13,575
495
1,817
91,193
3,077
11,478 64,743 49,679 11,956 2,315 54,902
1,361 11,093 3,375 - - -
1,092
Restricted for future improvements - - - - - 100
Restricted by grant agreement - - - - 3,155 -
Unrestricted 3,883 16,196 10,220 12,497 4,193 2,055
Total net assets $ 16,722 $ 92,032 $ 63,274 $ 25,545 $ 9,663 $57,057
Adjustment to reflect the consolidation of internal service fund actiN ties
related to enterprise funds.
Net assets of business -type activities
The notes to the financial statements are an integral /tan of this statement.
39
195,073 6,750
15,829 -
1,092 -
100 -
3,155 -
49,044 21,163
264,293 $ 27.913
9,806
$ 274,099
40
CITY OF IOWA CITY, IOWA
STATEMENT OF REVENUES, EXPENSES AND CHANCES IN FOND NET ASSETS
PROPRIETARY FONDS
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Commodities
Services and charges
Depreciation
Total operating expenses
Operating income (loss)
Nomperating Revenues (F,xpenscs):
Cain (loss) on disposal of capital assets
Operating grants (repayment)
Interest income
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before capital contributions,
transfers and extraordinary items
Capital contributions
Transfers in
Transfers out
Income (loss) before extraordinary
items
Extraordinary items:
Impairment loss
Change in net assets
Net Assets, Beginning
For the Year Ended June 30, 2012
(amounts
expressed in thousands)
Governmental
Business -type Activities - Emetprlse Funds
Activities -
Other
Internal
Wastewater
Housing
Enterprise
Service
Parking
Treatment
Water
Sanitation
Authority
Funds
Total
Funds
$ 4,743
$12,670
$ 8,419
$ 8,115
$ 207
$ 1,941
$ 36,095
$ 17,373
162
145
26
48
99
4
484
196
4,905
12,815
8,445
8,163
306
1,945
36,579
17,569
1,733
1,993
2,554
2,673
970
729
10,652
2,228
107
954
967
288
28
191
2,535
3,255
1,194
2,716
2,132
5,115
6,804
720
18,681
9,207
3,034
5,663
5,653
8,076
7,802
1,640
31,868
14,690
815
3,952
2,275
415
128
1,500
9,085
1,386
3,849
9,615
7,928
8,491
7,930
3,140
40,953
16,076
1,056
3,200
517
(328)
(7,624)
(1,195)
(4,374)
1,493
(10)
(12)
(10)
-
17
351
336
200
-
-
-
(222)
6,782
-
6,560
-
40
360
204
165
37
7
813
55
(366)
(1,564)
(964)
-
-
-
(2,894)
-
(336)
(1,216)
(770)
(57)
6,836
358
4,815
255
720
1,984
(253)
(385)
(788)
(837)
441
1,748
4 3,223 1,057 2 - 2,146 6,432 -
- 2,454 478 - 38 1,341 4,311 51
(16) (359) (110) (12) (43) (139) (679) (1)
708 7,302 1,172 (395) (793) 2,511 10,505
(5,(XX))
708 7,302 1,172 (5,395) (793) 2,511
16,014 84,730 62,102 30,940 10,456 54,546
(5,000)
5,505
1,798
1,798
unc
Net Acscts, Ending $16,722 $92,032 $63,274 $25,545 $ 9,663 $57,057 $ 27,913
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds. 727
Change in net assets of business -type activities $ 6,232
The suites to the financial statements are an integral part of this statement
41
Cash Flows From Operating Activities
Receipts from customers and users
Payments 0 suppliers
Payments 0 ernployces
Net cash flows from operating activities
Cash Flows From Noneapital Financing Activities
Grants received
TransltKS from other funds
Transfers 0 other funds
Repaymentl(payment) of notes revx- ivablc
Repayment of advances from other funds
Repayment of advances to other funds
Net cash flows from noncapital financing activities
Cash Flows From Capital and Related Financing
Activities
Capital grants received
Acquisition and construction of property and
equipment
Proceeds from sale of property
Proceeds from issuance of refunding debt (principal
plus premium less discount)
Principal paid on bonded debt
Interest paid on bonded debt
Net cash flows from capital and related financing
activities
Cash Flows From Investing Activities
Interest on investments
Net increase (decrease) in cash and cash equivalents
Cash and Cash Equivalents, Beginning
Cash and Cash Equivalents, Ending
CITY OF IOWA CITY, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Governmental
Business -type Activities - Enterprise Funds Activities -
Other Internal
Wastewater Housing Enterprise Service
Parking Treatment Water Sanitation Authority Funds Total Funds
$ 4,920 $
12,719
$ 8,149 $
8,257
$ 337
$ 1,916
$36,298 $
17 ,573
(1,350)
(3,685)
(3,117)
(4,340)
(6,826)
(916)
(20,234)
(11,959)
(1,777)
(2,006)
(2,64)
(2,696)
(979)
(767)
1( 0,825)
(1,8()9)
1,793
7,028
2,432
1,221
(7,468)
233
5,239
3,805
-
-
3
(215)
6,765
-
6,553
-
-
2,454
478
-
38
1,341
4,311
51
(16)
(359)
(1 lo)
(12)
(43)
(139)
(679)
(1)
-
-
-
-
(8O)
-
(8O)
-
(288)
-
-
-
-
(324)
(612)
-
529
529
(304)
2,095
371
302
6,680
878
10,022
50
273
3,484
149
-
-
1,296
5,202
-
(1,628)
(5,005)
(992)
(3,496)
-
(2,338)
(13,459)
(1,209)
-
-
1
6
285
373
665
232
-
-
4,990
-
-
-
4,990
-
(5(N))
(4,615)
(8,266)
-
-
-
(13,381)
-
(375)
(1,692)
(981)
-
-
-
(3,048)
-
(7,828) (5,099) (3,490) 285 (669) (19,031) (977)
39 277 568 171 28
(702) 1,572 (1728) (1796) (475)
6 1,()89 46
448 (2,681) 2,924
7,449 24,884 14,272 24,628 7,269 2,642 81,144 20,657
$ 6,747 $ 26,456 $12,544 $ 22,832 $ 6,794 $ 3,090 $78,463 $ 23,581
(continued)
42
Reconciliation of operating income (loss)
to net cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation expense
Changes in:
Recch,ables:
Accounts and unbilled usage
Due from other governments
Inventories
Accounts payable
Accrued liabilities
Employee vested benefits
Due to other governments
Deposits
Other post ernployment benefits assct/obligation
Landfill closurelpostclosurc liability
Total adjustments
Net cash flows from operating activities
Noncash Investing, Capital, and
Fmeaciag Activities:
Contributions of capital assets from
government and others
CITY OF IOWA CITY, IOWA
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Governmental
Business -type Activities - Enterprise Funds Activitics-
Other Internal
Wastewater Housing Enterprise Service
Parking Treatment Water Sanitation Authority Funds Total Funds
$ 1,056 $ 3,2(X) $ 517 $ (328) $ (7,624) $(1,195) $ (4,374) $ 1,493
815
3,952
2,275
415
128
1,5(X)
9,085
1,386
15
(97)
(184)
93
15
(28)
(186)
-
-
1
(115)
(1)
2
-
(113)
4
-
-
(20)
-
-
-
(20)
27
(49)
(15)
5
11
6
(5)
(47)
476
(47)
(50)
(75)
(76)
(23)
(21)
(292)
413
3
10
-
17
6
5
41
(1)
-
-
(3)
223
-
-
220
-
-
-
3
2
14
(1)
18
-
-
27
29
36
8
(22)
78
7
829
829
737
3,828
1,915
1,549
156
1,428
9,613
2,312
$ 1,793
$ 7,028
$ 2,432
$ 1,221
$ (7,468)
$ 233 $
5,239 $
3,805
$ - $ 480 $ 777 $ - $ - $ 570 $ 1,827 $
The notes to the financial.statemenn are an integral pun of this statement.
43
CITY OF IOWA CITY
STATEMENT OF FIDUCIARY
ASSETS AND LIABILITIES
June 30, 2012
(amounts expressed in thousands)
Assets
Agency
Funds
Equity in pooled cash and investments $ 204
Accounts receivable 9
Interest receivable 1
Total assets $ 214
Liabilities
Accrued liabilities $ 9
Due to agency 205
Total liabilities $ 214
The notes to the. financial statements are an integral part of this statement.
44
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
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.
45
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
Description of Funds
These financial statements include all funds owned or administered by the City or for which the City acts
as custodian.
The City maintains its records on a modified cash basis of accounting under which only cash receipts,
cash disbursements and encumbrances, investments, and bonded debt are recorded. These modified cash
basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to
prepare the accompanying financial statements in accordance with GAAP.
The accounts of the City are organized on the basis of funds, each of which is considered to be a separate
accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is
accounted for by providing a separate set of self- balancing accounts that comprise its assets, liabilities,
net assets, revenues, and expenditures or expenses, as appropriate. The individual funds account for the
governmental resources allocated to them for the purpose of carrying on specific activities in accordance
with laws, regulations, or other restrictions.
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its "measurement
focus." The government -wide financial statements and proprietary funds are accounted for on the flow of
economic resources measurement focus and use the accrual basis of accounting. Agency funds do not
have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues
are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies
all applicable Financial Accounting Standards Board pronouncements issued on or before November 30,
1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds.
All governmental funds are accounted for using a current financial resources measurement focus, which
generally includes only current assets and current liabilities on the balance sheet. The modified accrual
basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when
susceptible to accrual, which is in the period in which it becomes both available (collectible within the
current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the
amount of the transaction can be determined). Revenue accrued includes property taxes,
intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after
the year -end). Expenditures are recorded when the related fund liability is incurred. Principal and interest
on long -term debt, as well as expenditures related to compensated absences and claims and judgments,
are recorded only when payment is due.
The City reports the following major governmental funds
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
46
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The Employee Benefits Fund is used to account for the employee benefits related to those
employees who are paid through governmental fund types, which are funded by a separate
property tax levy.
The Community Development Block Grant Fund accounts for revenue from the U.S. Department
of Housing and Urban Development's Community Development Block Grant programs.
The Other Shared Revenue and Grants Fund accounts for revenue from various sources,
primarily road use tax monies from the State of Iowa and reimbursable programs funded by
federal and state grants.
The Debt Service Fund accounts for the accumulation of resources for the payment of general
long -term debt principal, interest, and related costs.
The City reports the following major proprietary funds
The Parking Fund is used to account for the operation and maintenance of the "on" and "off'
street public parking facilities.
The Wastewater Treatment Fund is used to account for the operation and maintenance of the
wastewater treatment facility and sanitary sewer system.
The Water Fund is used to account for the operation and maintenance of the water system.
The Sanitation Fund is used to account for the operation and maintenance of the solid waste
collection system and landfill.
The Housing Authority Fund is used to account for the operations and activities of the City's low
and moderate income housing assistance and public housing programs.
Additionally, the City reports internal service funds to account for goods and services provided by one
department to other City departments on a cost reimbursement basis. The funds in this category are the
Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information
Technology Fund.
The City also reports fiduciary funds which are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has two
fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance.
The funds in this category are Project Green, which accounts for donations that are received to plant and
develop yards and lawns, both public and private, within Iowa City, and the Library Foundation, which
accounts for donations that are made to support the library development office.
Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
47
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non - operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
Uses of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate,
during the reporting period. Actual results could differ from these estimates. Material estimates that are
particularly susceptible to significant change in the near -term relate to the determination of landfill
closure and post - closure care costs, total capacity of the landfill at closure, and calculation of the costs of
claims incurred, but not reported.
Cash and Investments
The City maintains one primary demand deposit account through which the majority of its cash resources
are processed. Substantially all investment activity is carried on by the City in an investment pool, except
for those funds required to maintain their investments separately. The earnings on the pooled investments
are allocated to the funds on a systematic basis. All investments are stated at fair value except for the
Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a -7
under the Investment Company Act of 1940.
For the purpose of the Statement of Cash Flows, restricted and non - restricted investments with a maturity
of three months or less when purchased are considered cash equivalents.
Receivables and Revenue Recognition
Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that
the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent
property tax receivable represents unpaid taxes from the current year. The succeeding year property tax
receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set
out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County
Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and
budget certification for the following fiscal year becomes effective on the first day of that year. Although
the succeeding year property tax receivable has been recorded, the related revenue is deferred in both the
government -wide and fund financial statements and will not be recognized as revenue until the year for
which it is levied.
Federal and state grants are recorded as receivables and the revenue is recognized during the period in
which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to
accrual criteria are met.
Income from investments in all fund types and from charges for services in proprietary fund types is
recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for
services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when
received in cash because they are generally not mea4grable until actually received.
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Inventories
Inventories are recognized only in those funds in which they are material to the extent of affecting
operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance Fund.
Inventories included in the governmental funds are valued at cost using the first -in, first out (FIFO)
method. The costs of governmental fund inventories are recorded as expenditures when consumed rather
than when purchased. Inventories of materials and supplies in the enterprise funds are determined by
actual count and priced on the FIFO method.
Capital Assets
Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads,
bridges, water mains, and similar items), are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City follows the policy of not
capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and
$5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair value at the date
of donation when received as donated properties.
Depreciation is computed using the straight -line method over the following estimated useful lives:
Infrastructure 3 — 100 years
Buildings and structures 20 — 50 years
Improvements other than buildings 10 — 50 years
Vehicles 2 — 20 years
Other equipment 5 — 30 years
Bond Premiums and Discounts
Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the
governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in
the year of issuance. In the proprietary funds and the government -wide statements, they are amortized
over the life of the bonds.
Compensated Absences
Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment
upon death, resignation, or retirement. The City pays its employees (except firefighters) one -half of the
accumulated sick leave at the time of termination on the basis of the employee's then effective hourly
base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that
an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after
June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or
retirement.
Pensions
The provision for pension cost is recorded on the accrual basis (based on statutorily determined
contribution rates), and the City's policy is to fund pension costs as they accrue.
49
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Landfill Closing Costs
Costs expected to be incurred in ultimately closing the present landfill site are being systematically
provided for through charges to expense over the estimated useful life of the landfill on the basis of
capacity used (see Note 7).
Budgetary and Legal Appropriation and Amendment Policies
The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds
except internal service and agency funds. This is formalized in a separate budgetary report, the Financial
Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and
constitutes the City's appropriation for each program and purpose specified therein until amended. The
adopted budget must include the following:
a. Expenditures for each function:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business- type/enterprise
b. The amount to be raised by property taxation
c. Income from sources other than property taxation
d. Transfers in and transfers out
The legal level of control (the level at which expenditures may not legally exceed appropriations) is the
function level for all funds combined, rather than at the individual fund level. Management can transfer
appropriations within a function, within a fund type, and between fund types, without the approval of the
governing body so long as the total budget by function area will not be exceeded. It is necessary,
therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types
with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to
compare such function totals to function budgeted totals in order to demonstrate legal compliance with
the budget. The City's budget for revenue focuses on 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.
RE
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
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 $106,986,000 in revenues and
other financing sources and by $162,901,000 in expenditures and other financing uses. Appropriations, as
adopted or amended and not encumbered, lapse at the end of the fiscal year.
As allowed by GASB Statement No. 41, Budgetary Comparison Schedules — Perspective Differences, the
City presents budgetary comparison schedules as required supplementary information based on the
program structure of nine functional areas as required by state statute for its legally adopted budget.
Restricted Assets
Assets within the individual funds, which can be designated by the City Council for any use within the
fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by
bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets.
Liabilities, which are payable from restricted assets, are classified as such.
Classification of Fund Balances
Fund balances for the governmental funds are reported in classifications based on the nature of any
limitations requiring the use of resources for specific purposes (see Note 9).
2. Compliance and Accountability
At June 30, 2012 the Capital Project Fund for bridge, street, and traffic control construction reported a
deficit fund balance of $287,000. 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 2013 to
cover the capital expenditures. At June 30, 2012 the Economic Development Fund reported a deficit fund
balance of $79,000. The deficit is due to an Economic Development grant paid to a developer to
rehabilitate a business in the downtown district. The City anticipates having sufficient debt service funds
in 2013 to cover this expenditure.
51
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
3. Cash and Pooled Investments
The City's deposits in banks at June 30, 2012 were entirely covered by federal depository insurance,
national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the
Code of Iowa. This chapter provides for additional assessments against the depositories to insure there
will be no loss of public funds.
The City is authorized by statute to invest public funds in obligations of the United States government, its
agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured
Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in
Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial
paper; perfected repurchase agreements; Iowa Public Agency Investment Trust ( IPAIT); certain registered
open —end management investment companies registered with the Securities & Exchange Commission
under the federal Investment Company Act of 1940; certain joint investment trusts; and warrants or
improvement certificates of a drainage district.
Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency
Investment Trust, which are valued at an amortized cost of $55,894,121 pursuant to Rule 2a -7 under the
Investment Company Act of 1940.
Interest rate risk. The City's investment policy limits the investment of general and operating funds to
one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the
average maturity of each fund's portfolio shall not exceed 397 days. Funds not identified as operating
funds may be invested in instruments whose maturities do not exceed five years at the time of purchase.
Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings
issued by nationally recognized statistical rating organizations. It is the City's policy to comply with
rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's
Investors service as it is a state security that is backed by the full faith and credit of the issuing
government and is not subject to credit risk.
Concentration of credit risk. The City investment policy limits the amount that may be invested in any
one issuer to a maximum amount approved by the City Council.
The aforementioned Iowa Public Agency Investment Trust ( IPAIT) represents an investment in a pool
managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter
28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available
operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940.
The IPAIT portfolios have followed established money market mutual fund investment parameters
designed to maintain a $1 per unit net asset value since inception and were registered with the Securities
and Exchange Commission (SEC).
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings
associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation
funds.
52
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
4. Interfund Balances and Transfers
Interfund balances for the year ended June 30, 2012, consisted of the following:
Conununity
Development
General Block Grant
Advances to:
General $ - $ -
Other Shared Revenue
and Grants - -
Nonmajor Governmental 341,084 -
Parking - -
Housing Authority 18,000
Nonmajor Enterprise - -
Advances from
Debt
Service Sanitation Total
$ - $ 2,150,027 $ 2,150,027
186,234 - 186,234
- - 341,084
507,443 507,443
- 18,000
1,138,898 1,138,898
Total $ 341,084 $ 18,000 $ 186,234 $ 3,796 ,368 $ 4 ,341,686
Interfund balances at June 30, 2012, include advances due to /from other funds. Advances to /from other
funds represent amounts for construction loans, land and negative cash balance funding. $1,101,929 of the
$1,138,898 advances to the Nonmajor Enterprise Funds and $328,687 of the $507,443 advance to the
Parking Fund are not expected to be repaid within the next year. $1,987,142 of the $2,150,027 advances
to the General Fund and $174,769 of the $186,234 advance to the Other Shared Revenue and Grants Fund
are not expected to be repaid within the next year. The $341,084 advance to the Nonmajor Governmental
Funds is 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.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Interfund transfers for the year ended June 30, 2012, consisted of the following:
(continued)
Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget
requires to collect them to the fund that the State statutes or the budget requires to expend them.
In the fund financial statements, total transfers in and transfers out of $23,861,000 are less than total
transfers of $24,079,216 because of the treatment of transfers of capital assets to and from the
governmental activities capital assets.
During the year, a capital asset related to public safety with a value of $4,100 was transferred to
governmental activities capital assets from Equipment. No amounts were reported in the governmental
funds, as the amounts did not involve the transfer of financial resources. However, Equipment did report a
disposal for the capital resources given.
Also during the year, construction in progress related to construction along 420Y' Street and Northside
Marketplace Streetscape with a total value of $214,083 were transferred from governmental activities
capital asset to Water and Stormwater, $79,934 and $134,149 respectively. No amounts were reported in
the governmental funds, as the amounts did not involve the transfer of financial resources. However,
Water and Stormwater did report capital contributions for the capital resources received.
M
Transfer from
Other
Community
Shared
Employee
Development
Revenue and
Nonmaj<r
General
Benefits
Block Gant
Grants
Governmental
Parking
Transfer to
General
$ -
$ 9,585,622
$ -
$ 69,9%
$ 6,195
$ -
Debt service
134,436
-
-
153,672
-
-
Other shared revenue
and grants
78,862
416,369
-
-
82,378
-
Nonmajor governmental
5,110,939
-
-
460,561
2,722,273
15,640
Wastewater treatment
479,402
-
-
191,722
1,783,005
-
Water
-
-
-
154,080
323,748
-
Housing Authority
-
-
37,747
-
-
-
Nonmajor enterprise
100,000
-
-
-
1,241,421
-
Internal Service
43,767
-
-
432
5,616
-
Total Transfer to
$ 5,947,406
$ 10,001,991
$ 37,747
$ 1,030,463
$ 6,164,636
$ 15,640
(continued)
Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget
requires to collect them to the fund that the State statutes or the budget requires to expend them.
In the fund financial statements, total transfers in and transfers out of $23,861,000 are less than total
transfers of $24,079,216 because of the treatment of transfers of capital assets to and from the
governmental activities capital assets.
During the year, a capital asset related to public safety with a value of $4,100 was transferred to
governmental activities capital assets from Equipment. No amounts were reported in the governmental
funds, as the amounts did not involve the transfer of financial resources. However, Equipment did report a
disposal for the capital resources given.
Also during the year, construction in progress related to construction along 420Y' Street and Northside
Marketplace Streetscape with a total value of $214,083 were transferred from governmental activities
capital asset to Water and Stormwater, $79,934 and $134,149 respectively. No amounts were reported in
the governmental funds, as the amounts did not involve the transfer of financial resources. However,
Water and Stormwater did report capital contributions for the capital resources received.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Transfer from
Wastewater
Treatment Water Sanitation
$ 23,034 $ 23,034 $
Housing Nonmajor
Authority Enterprise
- $ 43,000 $ 66,517 $
336253 86,728 11,628 -
72,236
Internal Total
$ 9,817,398
288,108
- 577,609
- 8,816,258
- 2,454,129
- 477,828
- 37,747
- 1,341,421
576 50,535
$ 359,287 $ 109,762 $ 11,772 $ 43,000 $ 138,753 $ 576 23,861,033
Transfers to governmental activities capital assets from internal service funds 4,100
Transfers from governmental activities capital assets to enterprise funds 214,083
$ 24,079,216
55
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
5. Capital Assets
Capital asset activity for the year ended June 30, 2012, was as follows:
Acquisitions
Beginning and Disposals and Balance
July 1, 2011 Transfers Transfers June 30, 2012
Governmental activities:
Capital assets, not being depreciated:
Land $ 23,887,472 $ 1,709,538 $ 633,398 $ 24,963,612
Construction in progress 16,007,754 142,742 3321,276 12,829,220
Total capital assets, not being depreciated 39,895,226 1,851280 3,954,674 37,791832
Capital assets, being depreciated
Buildings
63,695,152
3 -595,319
Improvement~ other than buildings
5 -592,658
764,613
Machinery and equipment
44,820,729
4303,091
Infrastructure
106,783,345
5,891,651
Total capital assets being depreciated
220,891,884
14 -554,674
Less accumulated depreciation for
Buildings
18,947,980
1,711,284
Improvement~ other than buildings
2,009,426
244,615
Machinery and equipment
28,173,526
3,455,998
Infrastructure
27,621,238
2,411251
Total accumulated depreciation
76,751170
7,824,148
61,829
11,224
1,975,587
2,048,640
53,173
11,224
1,811,030
1,875,427
67,228,642
6,346,047
47,148,233
112,674,996
233397,918
20,606,091
2,242,817
29,818,494
30,033,489
82,700,891
Total capital assets, being depreciated, net 144,139,714 6,730,526 173,213 150,697,027
Governmental activities capital assets, net $ 184,034,940 $ 8 -581806 $ 4,127,887 $ 188,489,859
-M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Acquisitions
Beginning and Disposals and Balance
July 1, 2011 Transfers Transfers June 30, 2012
Business -type activities:
Capital assets, not being depreciated:
Land $ 25,823,805 $ 131350 $ 70,495 $ 25,885,660
Construction in progress 19 -533,140 4 -527,724 7,943,007 16,117,857
Total capital assets, not being depreciated 45356,945 4,660,074 8,013,502 42,003,517
Capital assets, being depreciated
Buildings 119,706,766 6,456,477
Improvements (Aber than buildings 10 -559,851 -
Machinery and equipment 22306,934 -
Infrastructure 198,063,655 6,636,184
Total capital assets being depreciated 350,637,206 13,092,661
Less accumulated depreciation for
250,148
155,575
17,833
423,556
125913,095
10 -559,851
22,151,359
204,682,006
363,306,311
Buildings
50 -561,515
3307,857
25,015
53,844,357
Improvemems other than buildings
3998,975
447,008
-
4,445,983
Machinery and equipment
14236,770
956,986
133,850
15,059,906
Infrastructure
62,031992
4373,932
6,776
66,400,148
Total accumulated depreciation
130,830,252
9,085,783
165,641
139,750,394
Total capital assets, being depreciated, net
219,806954
4,006,878
257,915
223 -555,917
Business -type activities capital assets, net
$ 265,163,899
$ 8,666,952
$ 8,271,417
$ 265 -559,434
Depreciation expense was charged to functions as follows:
Governmental activities:
Public safety
$
911,141
Public works
3,183,854
Culture and recreation
2,044,011
Community and economic development
39,578
General government
259,477
Internal service fund~
1,386,087
Total depreciation expense - governmental activities
$
7,824,148
Business -type activities:
Parking
$
815,494
Wastewater treatment
3,951913
Water
1274,681
Sanitation
414,837
Housing authority
128,284
Nonmujor enterprise
1,500574
Total depreciation expense - business -type activities
$
9,085,783
57
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
As a result of a fire to the City's most recent landfill cell, there was an impairment loss of
$4,999,646 recorded for fiscal year 2012. This amount was derived from a survey conducted by
an engineering and technical consultant, Howard R Green Inc., that reported 64% of this cell had
been destroyed.
6. Long Term Debt
Changes in Debt for Bonds
Bond debt activity for the year ended June 30, 2012, was as follows:
Governmental activities:
General obligation bonds
Plus: Unamortized
Premium
Business -type activities:
General obligation bond.%
Less: Unamortized
Dis<:ounts
Total general obligation bonds
Revenue bonds
Plus: Unamortized
Premium
Total revenue bonds
General Obligation Bonds
Due Within
July 1, 2011 Issues Retirements June 30, 2012 One Year
$ 77,428,782
$
9,690,000
$
13293,782
$ 73,825,000
$
11255,000
315,175
165,454
79975
400,654
81,711
$ 77,743,957
$
9,855,454
$
13,373,757
$ 74,225,654
$
11,336,711
$ 3,146218
$
-
$
1,651218
$ 1,495,000
$
305,000
15369
-
3,842
11 -527
3,842
3,130,849
-
1,647376
1,483,473
301,158
74965,000
4950,000
11,730,000
68,185,000
6,225,000
892306
39,909
57—OW
874307
57—OW
75,857306
4989,909
11,787,908
69,059307
6282,908
$ 78,988,155
$
4,989,909
$
13,435,284
$ 70,542,780
$
6,584,066
Various issues of general obligation bonds totaling $75,320,000 are outstanding as of June 30, 2012. The
bonds have interest rates ranging from 0.5% to 5.6% and mature in varying annual amounts ranging from
$100,000 to $1,955,000 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.
3]
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending
June 30
Governmental Activities
Principal
Interest
Business -type Activities
Principal Interest
2013
$ 11,255,000
$ 2,300,666
$ 305,000
$ 55,458
2014
10,680,000
1,996,145
300,000
44,325
2015
10,560,000
1,672,940
300,000
33,225
2016
10,025,000
1,342,745
295,000
22,125
2017
8,450,000
1,024,915
295,000
11,062
2018 -2022
22,195,000
1,924,956
-
-
2023 -2027
660,000
35,640
-
-
Total
$ 73,825,000
$ 10,298,007
$ 1.495.000
$ 166.195
Revenue Bonds
As of June 30, 2012, the following unmatured revenue bond issues are outstanding:
Wastewater
Parking Treatment Water
Original issue amount
$
9,110,000
$
48,020,000
$
21,815,000
Interest rates
5,670,000
3.0% to 5.0%
29,395,000
3.0% to 5.0%
10,990,000
1.5% to 4.5%
Annual maturities
$
515,000 to
$
435,000 to
$
370,000 to
$
770,000
$
2,750,000
$
835,000
Amount outstanding
$
8,190,000
$
40,070,000
$
19,925,000
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Fading
June 30
2013
2014
2015
2016
2017
2018 -2022
2023 -2027
59
Business -type Activities
Principal Interest
$ 6,225,000 $
2,628,391
5,115,000
2,376,928
5,290,000
2,206,665
5,500,000
2,015,284
5,670,000
1,807,671
29,395,000
5,509,628
10,990,000
879,248
$ 68,185,000 $
17,423,815
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The revenue bond ordinances required that wastewater treatment, parking system, and water revenues be
set aside into separate and special accounts as they are received. The use and the amounts to be included
in the accounts are as follows:
Account Amount
(a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities.
Sinking Reserve
(b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and
Interest Reserve until the reserve fund equals: parking Revenue
and Water Revenue bonds — maximum debt service due on the
bonds in any succeeding fiscal year. Wastewater Revenue
bonds — 125% of the average principal and interest payments
over the life of all the Wastewater Revenue bonds.
(c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds
$2,000,000 for Wastewater Revenue bonds and $5,000 per
month until the reserve balance equals or exceeds $450,000 for
Water Revenue bonds, with no further deposits once the
minimum balance is reached. If the reserve falls below the
required minimum, monthly transfers in the aforementioned
amounts will resume.
On June 20, 2012, the City issued $4,950,000 of water revenue bonds for a current refunding of
$5,015,000 of water revenue bonds on July 1, 2012. As a result, the water revenue bonds from that issue
are considered to be defeased and the liability has been removed from the financial statements. The
refunding was undertaken to reduce total future debt service payments. The result of the transaction is a
reduction of $830,184 in future debt service payments and an economic gain of $688,741.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Summary of Bond Issues
General obligation and revenue bonds payable at June 30, 2012, are comprised of the following issues:
$ 143,505,000
61
Date of
Amount
Interest
Fi W-
Outstanding
Issue
Issued
Rates
Maturity
June 30, 2012
General Obligation Bonds:
Taxable -Urban Renewal
Mar. 2004
$ 7,305,000
4.0-5.4
6/23
$ 5,595,000
Multi - Purpose
Mar. 2005
7,020,000
3.0-4.0
6/15
2,375,000
Muh-Purpose
Jun. 2006
6,265,000
3.625-4.0
6/16
2,855,000
Multi - Purpose
Jun. 2006
1,000,000
5.5-5.6
6/16
475,000
Refunded Water
Construction (1)
Sep. 2006
3,350,000
3.6-3.75
6/17
1,495,000
Multi - Purpose
May 2007
8,870,000
3.75
6/17
4,845,000
Multi - Purpose
June 2008
9,150,000
3.25-3.75
6/18
5,850,000
Refunded Mul i- Purpose (2)
Oct. 2008
17,005,000
3.0-3.75
6/18
9,350,000
Multi - Purpose
June 2009
6,685,000
2.5-4.0
6/19
4,855,000
Taxable- Housing Improvements
June 2009
505,000
1.5-3.0
6/14
205,000
Refunded Muki- Purpose (3)
June 2009
5,840,000
2.0-4.0
6/16
3,465,000
Multi - Purpose
Aug 2010
7,420,000
2.0-2.75
6/20
5,935,000
Multi - Purpose
June 2011
7,925,000
2.0-3.625
6/21
7,180,000
Taxable- Housing Improvements
June 2011
820,000
0.65-
1.1
6/13
420,000
Refunded Muki- Purpose and
Library Construction (4)
June 2011
10,930,000
2.0-3.625
6/21
10,730,000
Multi - Purpose
June 2012
9,070,000
2.0-2.25
6/22
9,070,000
Taxable -Urban Renewal
June 2012
620,000
0.5-0.6
6/14
620,000
Total General Obligation Bonds
$ 75,320,000
Date of
Amount
Interest
Fi W-
Outstanding
Issue
Issued
Rates
Maturity
June 30, 2012
Revenue Bonds:
Refunded Parking Bonds (5)
Nov. 2009
$ 9,110,000
3.0-5.0
7/24
$ 8,190,000
Refunded Wastewater
Treatment Bonds (6)
Oct. 2008
24,280,000
3.0-5.0
7/22
19,560,000
Refunded Wastewater
Treatment Bonds (7)
May 2009
8,660,000
3.5-5.0
7/25
8,110,000
Refunded Wastewater
Treatment Bonds (8)
Apr. 2010
15,080,000
3.0-4.0
7/20
12,400,000
Refunded Water Bonds (9)
Oct. 2008
7,115,000
3.0-4.375
7/24
6,070,000
Refunded Water Bonds (10)
May 2009
9,750,000
4.0-4.5
7/25
8,905,000
Refunded Water Bonds (11)
June 2012
4,950,000
1.5 -
2.1
7/22
4,950,000
Total Revenue Bonds
$ 68,185,000
$ 143,505,000
61
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
(1) This bond issue has the general obligation bonds payable shown as a liability on the balance sheet
of the Water Fund. Also, this bond issue refunded the November 1997 Water Construction General
Obligation Bonds.
(2) This bond issue refunded the April 1998, March 1999, and July 2000 General Obligation Bonds.
(3) This bond issue refunded the June 2001 General Obligation Bonds.
(4) This bond issue refunded the May 2002 General Obligation Bonds.
(5) This bond issue refunded the December 1999 Parking Revenue Bonds.
(6) This bond issue refunded the March 1996, May 1997, and January 1999 Wastewater Revenue
Bonds.
(7) This bond issue refunded the October 2000 Wastewater Revenue Bonds.
(8) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds.
(9) This bond issue refunded the May 1999 Water Revenue Bonds.
(10) This bond issue refunded the December 2000 Water Revenue Bonds.
(11) This bond issue refunded the October 2002 Water Revenue Bonds.
Conduit Debt Obligations
From time to time, the City has issued Industrial Development Revenue Bonds, Facility Refunding
Revenue Bonds, and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private
sector entities for the acquisition, construction, and renovation of industrial and commercial facilities
deemed to be in the public interest. The bonds are collateralized by the property financed and are payable
solely from payments received on the underlying mortgage loans. All payments on the bonds are made by
the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn,
disburses the payment to the respective bond holders. Neither the City, the State, nor any political
subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements.
As of June 30, 2012, there were three series of Industrial Development Revenue Bonds, Facility
Refunding Revenue Bonds, and Midwest Disaster Area Revenue Bonds outstanding, with an aggregate
principal amount payable of $43,405,337.
Debt Legal Compliance
Legal Debt Margin:
As of June 30, 2012, the general obligation debt issued by the City did not exceed its legal debt limit
computed as follows:
Assessed valuation
Real property $ 4,491,302,568
Utilities 48.337.968
Total valuation $ 4,539.640,536
Debt limit, 5% of total assessed valuation $ 226,982,027
Debt applicable to debt limit:
General obligation bonds 75,320,000
Legal debt margin L 151.662.027
62
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
7. Other Long -term Liabilities
Notes Payable
Changes in Long -Term Liabilities - Notes Payable
Note Payable activity for the year ended June 30, 2012, was as follows:
July 1, 2011
Issues
Retirements June 30, 2012
Due Within
n.,o Vow.
Governmental activities: $ 211,000 $ - $ - $ 211,000 $ -
A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit
apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of
the loan are 1 %, interest only payments for twenty years with a final balloon payment of $211,000 due on
August 1, 2025.
Employee Vested Benefits
Changes in Long -Term Liabilities - Employee Vested benefits
Employee Vested Benefits activity for the year ended June 30, 2012, was as follows:
Due Within
July 1, 2011 Issues Retirements June 30, 2012 One Year
Governmental activities: $ 2,172,907 $ 1,238,766 $ 1,180,751 $ 2,230,922 $ 1,225,647
Business -type activities: $ 519,405 $ 331,517 $ 290,601 $ 560,321 $ 316,984
For the governmental activities, employee vested benefits are generally liquidated by the General Fund
and Community Development Block Grant Fund.
X
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Landfill Closure / Post - Closure Care Costs
Changes in Long -Term Liabilities - Landfill Closure Post - closure Care Costs
Landfill Closure Post-closure care activity for the year ended June 30, 2012, was as follows:
July 1, 2011
Issues
Retirements
Due Within
June 30, 2012 One Year
Business type activities: $ 11,754,654 $ 829,445 $ - $ 12,584,099 $ -
In August 1993, the GASB issued Statement No. 18, Accounting.for Municipal Solid Wavte Landfill
Closure and Post - closure Care Costs (the Statement). Under these rules, in addition to operating
expenses related to current activities of the landfill, an expense provision and related liability are being
recognized based on the future closure and post - closure care costs that will be incurred near or after the
date the landfill no longer accepts waste. The recognition of these landfill closure and post - closure care
costs is based on the amount of the landfill used during the year.
The estimated liability for landfill closure and post - closure care costs as of June 30, 2012, is $12,584,099,
which is based on 91.1% usage (filled) of the landfill and is included in accrued liabilities within the
Sanitation Fund. It is estimated that an additional amount of approximately $1,229,402 will be recognized
as closure and post - closure care expenses between the date of the balance sheet and the date the landfill is
expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the
landfill closure and post - closure care costs at June 30, 2012, was determined by engineers from Howard
R. Green Company and approximated at $13,813,500. 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, 2012. These amounts are based on an estimated post - closure care and monitoring period of 30
years, consistent with current State Department of Natural Resources regulations. However, the actual
cost of closure and post - closure care may be higher due to inflation, changes in technology, or changes in
landfill laws and regulations.
The City is required by federal and state laws and regulations to provide some form of financial assurance
to finance closure and post - closure care. The City will meet its financial assurance obligations through the
issuance of general obligation bonds. As of June 30, 2012, the Sanitation Fund had $14,450,385 in related
equity in pooled cash and investments, at fair value designated for satisfaction of post - closure costs. The
City estimates that these cash reserves will only provide a fraction of the dollars needed to close and
monitor the landfill. The remaining portion of post - closure care costs, anticipated future inflation costs
and additional costs that might arise from changes in post - closure requirements (due to changes in
technology or more rigorous environmental regulations, for example) may need to be covered by charges
to future landfill users as well as City taxpayers.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Other Post Employment Benefits
Changes in Long -Term Liabilities - Other Post Employment Benefits
Net OPBB Obligation
2011 Current Year June 30, 2012
Governmental activities: $ 1,705,631 $ 352,244 $ 2.057.875
Business type activities: $ 551,710 $ 77,213 $ 628,923
The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits other Than Pensions during the year ended June 30, 2009.
Plan Description: The City operates one self- funded medical and dental for all employees, which is
offered to current and retired employees and their dependents. All full -time employees who retire or
terminate /resign and their eligible dependents are offered the following post- employment benefit options:
Health insurance and dental insurance — The option of continuing with the City's health insurance
plan at the individual's expense. These benefits cease upon Medicare eligibility.
Life insurance — The option of converting the employee's City -paid policy to an individual policy at
the individual's expense with the City's life insurance carrier.
Long -term disability — For employees who terminate/resign and have been on the plan for a minimum
of one year, the option of converting the employee's City -paid group policy to a personal policy at the
individual's expense with the City's long -term disability insurance carrier.
The above options, while at the individual's own expense, are included within the City's overall insurance
package, which results in an implicit rate subsidy and an OPEB liability.
Funding Policy: The plan member's contribution requirements are established and may be amended by
the City. The City currently finances the benefit plans on a pay -as- you -go basis.
65
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Annual OPEB Cost and Net OPEB Obligation: The City's annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years.
The following table shows the components of the City's annual OPEB cost for the year ended June 30,
2012, the amount actually contributed to the plans, and changes in the City's net OPEB obligation:
Annual required contribution $ 591,292
Interest on net OPEB obligation 90,294
Adjustment to annual required contribution (80,621)
Annual OPEB costs 600,965
Contributions made (171,508)
Increase in net OPEB obligation 429,457
Net OPEB obligation beginning of year 2,257,341
Net OPEB obligation end of year $2,686,798
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end
of year net OPEB obligation was calculated by the actuary as the cumulative difference between the
actuarially determined funding requirements and the actual contributions for the year ended June 30,
2012.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net
OPEB obligation as of June 30, 2012 are summarized as follows:
Percentage of Annual
OPEB Cost
Annual
Year Ended
OPEB Cost
June 30, 2010
$1,291,319
June 30, 2011
$ 598,776
June 30, 2012
$ 600,965
Percentage of Annual
OPEB Cost
Net OPEB
Contributed from City
Obligation
16.3%
$1,746,488
14.7%
$2,257,342
28.5%
$2,686,798
Funded Status and Funding Progress: As of July 1, 2010, the most recent actuarial valuation date for the
period July 1, 2011 through June 30, 2012, the actuarial accrued liability was $6,893,438, with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $6,893,438. The
covered payroll (annual payroll of active employees covered by the plans) was $29,842,842 and the ratio
of the UAAL to covered payroll was 23.1 %. As of June 30, 2012, there were no trust fund assets.
Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of events far into the future. Examples
include assumption about future employments, mortality, and the health care cost trend. Actuarially
determined amounts are subject to continual review as actual results are compared with past expectations
and new estimates are made about the future.
HE
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The required schedule of funding progress, presented as required supplementary information in the
section following the Notes to Financial Statements, will present multi -year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Calculations are based on the types of benefits provided under the terms of the substantive plan at the
time of each valuation and on the pattern of sharing of costs between the employer and plan members to
that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
employer and plan members in the future.
As of the July 1, 2010 actuarial valuation date, the actuarial cost method used is the entry age normal
method. The actuarial assumption includes a 4% discount rate and an inflation rate of 3% per annum.
The projected annual medical trend rate is 2.2 %. The ultimate medical trend rate is 6 %. The medical
trend rate is increased to 10.0% for year two and then reduced by 0.5% each year until reaching the 6%
ultimate trend rate. The projected annual dental trend rate is 2.9 %. The ultimate dental trend rate is 4 %.
The dental trend rate is increased to 5.5% for year two and then reduced by 0.5% each year until reaching
the 4% ultimate trend rate.
Mortality rates for active employees are from the RP -2000 Employee Table and for retirees are from RP-
2000 Healthy Annuitant Table, applied on a gender - specific basis. Annual retirement and termination
probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan
turnover tables, adjusted to be consistent with recent City experience.
Projected claim costs of the health and dental plans are $765.61 per month. The salary increase rate was
assumed to be 3.5% per year. The UAAL is being amortized as a level percentage of projected payroll
expenses over 30 years on an open basis.
8. Short Term Debt
Changes in Short -Term Liabilities - Notes Payable
Notes Payable activity for the year ended June 30, 2012, was as follows:
Due Within
July 1, 2011 Issues Refvements June 30, 2012 One Year
Governmental activities: $ 1,615,500 $ 1,565,405 $ 2,375,905 $ 805,000 $ 805,000
During FY12, the City entered into additional multiple short term loans totaling $1,565,405 and repaid
multiple short term loans totaling $2,375,905. The outstanding loans mature one year from the date of the
loan and bear interest rates ranging from 2% to 3.25 %. The loans were used to fund the acquisition and
rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program
(UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa
dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital,
safe, affordable, and attractive places to live and work for both renters and homeowners. The City
secured a $1.25 million I -JOBS grant that allows the program to acquire and rehabilitate 25 homes in the
67
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
designated UniverCity Neighborhoods. The short term loans have been repaid and will be repaid with the
proceeds from the sale of the rehabilitated homes.
9. Fund Equity
Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based
on the extent to which the government honors constraints on the specific purposes for which amounts in
those funds can be spent.
• The Nonspendable classification contains amounts not in spendable form or legally or
contractually required to be maintained intact.
• Restricted amounts contain restraint on their use externally imposed by creditors, grantors,
contributors, or laws or regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation.
• Committed amounts can only be used for specific purposes imposed by formal action of the
government's highest level of decision- making authority. The highest level of decision- making
authority is the City Council and it takes a resolution to establish, modify or rescind a fund
balance commitment.
• Amounts intended to be used for specific purposes are Assigned. Assignments should not cause
deficits in the Unassigned fund balance. The Finance Director has been delegated authority by
the City Council through a resolution to assign amounts to be used for specific purposes.
• Unassigned fund balance is the residual classification for the General Fund.
The City would use Restricted fund balances first, followed by Committed resources, and then Assigned
resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned
resources first to defer the use of these other classified funds.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Components of Fund Balance
Restricted for
Community
Other
Public Safety
464.039
Development
Shared
Other
Local Option Sales Tax
Employee
Block
Revenue and Debt
Governmental
Debt SeMce
General Benefits
Grant
Grams SeMce
Funds
Total
Nonspendable:
-
- - - - 20,883,498
20.883.498
Inventory
$ 244.538 $ -
$ -
$ - $ -
$ -
$ 244.538
Perpetual Care Principal
69.000 -
-
- -
-
69.000
Total Nonspendable
313.538 -
-
- -
-
313.538
Restricted for
Public Safety
464.039
- - - -
-
464.039
Local Option Sales Tax
23,265,151
- - - -
-
23.265.151
Debt SeMce
-
- - - 11.008.903
-
11.008.903
GO Bond Projects
-
- - - - 20,883,498
20.883.498
State Funding
-
- - 599,430 -
-
599.430
Gram Agreement
-
- 387,292 - -
-
387,292
Public Safety Employee
Benefits
-
1.799.526 - - -
-
1.799.526
Other Restricted
49.661
- - - - 174.927
224.588
Total Restricted
23.778.851
1.799.526 387.292 599.430 11.008.903 21.058.425
58.632.427
Assigned to
Library Programs
575.818
- - - -
-
575.818
Senior Center Programs
59.086
- - - -
-
59.086
Replacement and Acquisition Reserves
4.469.978
- - - -
-
4.469.978
Other Assigned
85.724
- - - -
-
85.724
Total Assigned
5.190.606
- - - -
-
5.190.606
Unassigned:
14 .273.156
- - - - (365.781)
13.907.375
Total Fund Balances
_T43 $
1.799.526 $ 387.292 $ 599.430 $ 11.008.903 $ 20.692.644
$ 78.043.946
10. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City
established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks
of loss. During the year ended June 30, 2012 the City purchased property, liability, and workers'
compensation insurance under the program that provides for a $100,000 self - insured retention per
occurrence on property losses, a $500,000 self - insured retention per occurrence on liability, and a
$400,000 self - insured retention on workers' compensation losses. The liability insurance provides
coverage for claims in excess of the aforementioned self- insured retention up to a maximum of
$21,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss
Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self - insured
retention amounts and any uninsured losses. Settled claims have not exceeded this commercial coverage
in any of the past twenty four fiscal years.
The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk
Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make
payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and
current -year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities
balance includes a claims liability at June 30, 2012 based on the requirements of GASB Statement No.
M1
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
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, 2012 and 2011 are as follows:
Current -Year
Beginning -of- Claims and Balance at
Fiscal -Year Changes in Claim Fiscal
Liability Estimates Payments Year -End
2010-2011 $ 1,602,000 $ 92,000 $ 994,000 $ 700,000
2011-2012 700,000 691,000 207,000 1,184,000
Also, the City is partially self - insured, through stop -loss insurance, for employee health care coverage,
which is available to all of its permanent employees. This insurance provides stop -loss coverage for
claims in excess of $125,000 per employee with an aggregate stop -loss of $9,166,913. The operating
funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider
for actual medical costs incurred, plus a claims processing \administrative fee. Changes in the Loss
Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2012 and
2011 are as follows:
2010-2011
2011-2012
Beginning -of-
Fiscal -Year
Liability
Current -Year
Claims and
Balance at
Changes in Claim Fiscal
Estimates Payments Year -End
714,000 $ 6,259,000
728,000 6,147,000
70
$ 6,245,000 $ 728,000
6,159,000 716,000
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
11. Commitments and Contingencies
The total outstanding contractual commitments as of June 30, 2012 are as follows:
Fund
Project
Amount
Bridge, street and traffic
Paving and bridge construction,
control construction
engineering design and consulting
$ 3,180,607
Other construction
Public works, culture & recreation, Economic Dev,
Fire & Police, construction
1,466,817
Parking
Garage improvements and repair & maintenance
51,146
Wastewater
South wastewater plant expansion and wastewater
main repairs
44,197,342
Water
Water main construction and flood mitigation
construction
641,685
Airport
Runway grading and paving
767,391
Stormwater
Stormwater system improvements
38,338
$ 50,343,326
The total significant encumbrances as of June 30, 2012 are as follows:
Fund
Other Governmental
Other Construction
Transit buses and police equipment
71
Amount
$ 793,797
$ 793,797
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
12. Contingent Liabilities
Litigation
The City is a defendant in a number of lawsuits arising principally from claims against the City for
alleged improper actions by City employees, with such lawsuits typically involving claims of improper
police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and
discrimination. Total damages claimed are substantial; however, it has been the City's experience that
such actions are settled for amounts substantially less than claimed amounts. The City's management
estimates that the potential claims against the City, not covered by various insurance policies, would not
materially affect the financial condition of the City. The City has the authority to levy additional taxes
(outside the regular limit) to cover uninsured judgments against the City.
13. Pension and Retirement Systems
Municipal Fire and Police Retirement System of Iowa
The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa
(MFPRSI or the Plan), which is a cost - sharing multiple - employer defined benefit public police and fire
employees retirement system. All fire fighters and police officers appointed under civil service participate
in the Plan. The Plan provides retirement, disability, and death benefits that are established under state
statute. The Plan issues a publicly available financial report that includes financial statements and
required supplementary information. The report may be obtained by writing to Municipal Fire and Police
Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 50266 or the report may
be obtained from website www.mfprs, i.org under the publications link. A member may retire at age 55
with 22 years of employment, and receive full benefits that are equal to 66% of the member's average
final compensation. Additionally, members retiring with more than 22 years of service will receive an
additional 2% of the member's average final compensation for up to 8 years of additional service. Other
benefits are also calculated at varying percentages of the average final compensation. Benefits vest after
four years of service.
Member contribution rates are established by state statute. For the fiscal year ended June 30, 2012,
members contributed 9.40 %. The City's contribution rate is based upon an actuarially determined normal
contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of
the plan less current plan assets, the total then being divided by 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 17% of earnable
compensation.
The City was required to contribute 24.76% of earnable compensation of each member in FY 2012,
19.9% of earnable compensation in FY 2011, and 17.0% of earnable compensation in FY 2010. The
contributions paid by the City for the years ended June 30, 2010, 2011, and 2012, were $1,349,558,
$1,826,791, and $2,232,637 respectively, and was equal to the required contributions for each year.
72
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
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 eighteen or older, except temporary employees of six months or less of employment
duration, who do not participate in any other public retirement system in the state are eligible and must
participate in IPERS. The pension plan provides retirement and death benefits that are established by state
statute. Generally, a member may retire at the age of 65, or any time after age 62 and 20 years or more of
service, or when age plus years of service equals or exceeds 88, and receive unreduced (for age) benefits.
Members may also retire at the age of 55 or more at reduced benefits. Benefits vest after seven years of
service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest five
years of covered wages times years of service divided by 30.
Plan members are required to contribute 5.38% of their annual covered salary and the City is required to
contribute 8.07% of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2010, 2011, and 2012, were $1,767,350,
$1,969,422, and $2,245,326 respectively, and were equal to the required contributions for each year.
14. Additional Revenue Bond Disclosures
Water System
The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service,
Distribution, and Public Information/Education. There are a total of 32.75 (FTE) employees who work in
the Water Division. This division serves 68,947 people and has almost 25,800 customers. The average
daily use for fiscal year 2012 was approximately 5.50 million gallons per day (MGD). A peak flow of
over 8.6 MGD was experienced during the summer of 2012.
Water Sources: The primary source of water for the City is the alluvial aquifer collector wells along the
Iowa River. Four collector wells can provide approximately 10.5 MGD. Additional sources include two
Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide 1.0
MGD; a sand pit that can provide 1.0 MGD; a river intake that can provide 3.0 MGD; for a total of
approximately 17.5 MGD maximum capacity.
Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80
Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening
( coagulation /flocculation/sedimentation), and granular activated carbon filtration processes with
fluoridation and free chlorination. The grade four water facility employs operators that perform over 200
water quality tests per day in -house and collect samples for testing at the University Hygienic Laboratory.
This testing ensures that the water meets all of the Safe Drinking Water Act Standards.
73
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Distribution System: The water flows through approximately 266 miles of water mains and includes over
25,000 service connections. The distribution piping consists of cast iron, ductile and PVC main that
ranges in size from 2" to 30 ". The treatment plant site has effective water storage capacity of 1.75 million
gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that
add up to remote effective storage capacity of 6.0 million gallons of water. The water system also
provides for fire protection with approximately 3,278 public and private hydrants located throughout the
community.
Billing and Collections: Customers are billed monthly on a combined utility statement which includes
charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City
ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for
payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days
before service is disconnected. The City's bad debt write -offs have been less than 0.5% of gross revenues
for the past three years.
Rates:
The following rates and charges were effective July 1, 2011.
Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.))
Meter Size
(Inches)
Charge
5/8"
$6.41
3/4"
7.00
1"
8.26
1 1/2"
16.47
Meter Size
(Inches)
Charge
2"
$22.14
3"
40.91
4"
71.37
6"
143.61
Monthly Usage in excess of 100 cubic feet (c.f.)
101-3,000 $2.99 per 100 c.f.
3,001 and over $2.15 per 100 c.f.
Single Purpose Meter Charges
First 100 (c.f)
Usage in excess of 100 cubic feet (c.f.)
Changes in water rates over the last ten fiscal years:
2003
-5%
2004
-5%
2005
0%
2006
0%
2007
-5%
2008
0%
2009
0%
2010
0%
2011
0%
2012
0%
74
Minimum Monthly Charge
$2.99 per 100 c.f.
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Financial Information: The following table summarizes the results of operations for the Water System for
the fiscal years ended June 30, 2012, 2011, and 2010.
WATER SYSTEM
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
Last Three Fiscal Years
(amounts expressed in thousands)
2012 2011 2010
Operating Revenues:
Charges for services $ 8,419 $ 8,054 $ 7,957
Miscellaneous 26 42 28
Total operating revenues 8,445 8,096 7,985
Operating Expenses:
Personal services
2,554
2,407
2,246
Commodities
967
929
987
Services and charges
2,132
2,128
1,920
Interest income
5,653
5,464
5,153
Depreciation
2,275
2,230
2,180
Total operating expenses
7,928
7,694
7,333
Operating income
517
402
652
Nonoperating Revenues (Expenses):
Gain ( Loss) on disposal of capital assets
(lo)
-
5
Insurance Recoveries
-
2
33
Operating Grants
-
-
6
Interest income
204
256
312
Interest expense
(964)
(1,032)
(1,092)
Total nonoperating revenues (expenses)
(770)
(774)
(736)
Income before capital contributions
and transfers
(253)
(372)
(84)
Capital contributions
1,057
973
572
Transfers in
478
795
756
Transfers out
(I In)
(336)
(343)
Change in net assets
1,172
1,060
901
Net Assets, Beginning
62,102
61,042
60,141
Net Assets, Ending
$ 63,274
$ 62,102
$ 61,042
75
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The following table summarizes the budget and actual figures for the Water System for the fiscal year
ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis.
WATER SYSTEM
BUDGET AND ACTUALS (CASH BASIS)
For the Year Ended June 30, 2012
(amounts expressed in thousands)
FY13
Actual Budget Percentage Budget
Charges for services
$
8,226
$
8,502
96.75%
$
8,185
Interest income
567
173
327.75%
141
Miscellaneous
27
28
96.43%
39
Operating grants
37
2,445
1.51%
2,284
Transfers from other funds
-
336
0.00%
336
Bond sales
4,990
5,060
98.62%
-
Total Receipts
$
13,847
$
16,544
83.70%
$
10.985
Personal services
$
2,710
$
2,715
99.82%
$
2,640
Commodities
529
749
70.63%
685
Services and charges
2,173
2,305
94.27%
2,061
Capital outlay
803
5,541
14.49%
4,248
Transfer to capital pmject funds
87
942
9.24%
1,595
Operating subsidy
23
23
100.00%
24
Debt service payments
3,831
3,869
99.02%
8,216
Total Disbursements
$
10,156
$
16,144
62.91%
$
19.469
The following table summarizes the Water System funds on hand for the fiscal years ended June 30,
2012, 2011, and 2010.
WATER SYSTEM
FUNDS ON HAND (CASH AND INVESTMENTS)
Last Three Fiscal Years
(amounts expressed in thousands)
2012 2011 2010
Operating Funds $ 8,284 $ 9,607 $ 11,636
Restricted and Designated Funds 4,260 4,665 4,595
Total Funds on (land $ 12,544 $ 14,272 77 6,231
76
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Sewer System
The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 254 miles
of sanitary sewers, 15 sanitary sewer lift stations, 2 storm water pumping stations, and 2 treatment plants.
There are a total of 25.40 (PTE) employees who work in the Wastewater Division. This division serves
68,947 people and has over 23,500 customers. The average daily combined treatment flow for 2012 was
8.28 million gallons per day (MGD).
The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in
2002. The connecting of the North and South Plants was completed in 1998. The City has the capability
to divert all wastewater treatment to the South Plant and control all operations remotely through computer
systems. The combined wastewater treatment system design has a maximum daily treatment capacity of
41.10 MGD. Both plants are in compliance with federal clean water standards. The City is utilizing
federal and state grants to fund a flood recovery and mitigation project to decommission the North
Wastewater Plant through expansion of the South Wastewater Plant.
Billing and Collections: Customers are billed monthly on a combined utility statement which includes
charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City
ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for
payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days
before service is disconnected. The City's bad debt write -offs have been less than 0.5% of gross revenues
for the past three years.
Rates:
The following rates and charges were effective July 1, 2010.
Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15
Monthly Usage in excess of 100 cubic feet (c.f.) $3.99
Changes in sewer rates over the last ten fiscal years:
2003
0%
2004
0%
2005
0%
2006
0%
2007
8%
2008
0%
2009
5%
2010
0%
2011
0%
2012
0%
77
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Financial Information: The following table summarizes the results of operations for the Sewer System for
the fiscal years ended June 30, 2012, 2011, and 2010.
SEWER SYSTEM
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
Last Three Fiscal Years
(amounts expressed in thousands)
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Commodities
Services and charges
Depreciation
Total operating expenses
Operating income
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets
Operating grants
Interest income
Interest expense
Total nonoperating revenues (expenses)
Income before capital contributions
and transfers
Capital contributions
Transfers in
Transfers out
Change in net assets
Net Assets, Beginning
Net Assets, Ending
78
$ 12,670
$ 12,836
$ 12,637
145
63
73
12,815
12,899
12,710
1,993
1,961
1,874
954
895
645
2,716
2,621
2,531
5,663
5,477
5,050
3,952
4,017
4,178
9,615
9,494
9,228
3,200
3,405
3,482
(12)
(40)
-
360
382
464
(1,564)
(1,704)
(2,173)
(1,216)
(1,362)
(1,709)
1,984
2,043
1,773
3,223
2,394
2,115
2,454
1,716
167
(359)
(171)
(202)
7,302
5,982
3,853
84,730
78,748
74,895
$ 92,032
$ 84,730
$ 78,748
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The following table summarizes the budget and actual figures for the Sewer System for the fiscal year
ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis.
SEWER SYSTEM
BUDGET AND ACTUALS (CASH BASIS)
For the Year Ended June 30, 2012
(amounts expressed in thousands)
FY13
Actual Budnet Percentene Budnet
Charges for services
$
12,558
$
12,752
98.48%
$
12,759
Interest income
276
100
276.00%
301
Miscellaneous
162
57
284.21%
56
Operating grants
3,483
9,491
36.70%
12,808
Local option sales tax
479
12,596
3.80%
12,116
Bond sales
-
-
0.00%
-
Total Receipts
$
16,958
$
34,996
48.46%
$
38,040
Personal services
$
2,177
$
2,160
100.79%
$
2,374
Commodities
710
558
197.34%
659
Services and charges
5,492
2,783
127.24%
4,366
Capital outlay
341
25,251
1.35%
26,576
Transfer to capital pmject funds
336
1,649
20.38%
1,575
Operating subsidy
23
23
100.00%
24
Debt service payments
6.308
6308
1 W.00%
6,412
Total Disbursements
$
15.387
$
38.732
39.73%
$
41,986
The following table summarizes the Sewer System funds on hand for the fiscal years ended June 30,
2012, 2011, and 2010.
SEWER SYSTEM
FUNDS ON HAND (CASH AND INVESTMENTS)
Last Three Fiscal Years
(amounts expressed in thousands)
2012 2011
Operating Funds $ 14,551 $ 12,882
Restricted and Designated Funds 11,905 12,W2
Total Funds on Hand $ 26,456 $ 24,884
79
rrarr
$ 12,615
9,645
$ 22,260
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Parking System
The Parking System currently consists of approximately 4,084 parking spaces located at various
parking facilities in the central business district of the City. T h e P arking Division of the Iowa
City Transportation Services Department oversees the operation of parking garages, parking lots, and on-
street (metered) parking. Parking Services enforces parking regulation in the central business district,
while the Police Department enforces parking regulations in residential areas. Recognizing that there is a
high demand for parking in downtown Iowa City, Parking Services promotes turnover of on -street
metered parking spaces in the core of the downtown. Customers with longer -term needs are encouraged to
use the garages or on streets in outlying areas. There are a total of 32.75 (FIE) employees who
work in the Parking Division.
Parking System Utilization, Demand and Other Considerations: The City tracks Parking System
utilization by the hour in each of the cashiered facilities. During peak hours, the occupancy rate
regularly runs between 85% to 98% depending on the time of year and the time of day. Peak hours for
the Parking System are 10:00 am through 3:00pm with high occupancy rates regularly maintained
through 5:30 pm daily.
In addition to hourly parking, the Parking System offers monthly permit parking. The Parking System
currently has 1,385 permit holders. The largest customer for the monthly permit parking is the
University of Iowa with 615 permits. There are currently over 576 people on the Parking Systems
waiting lists for monthly permit parking.
In addition to monthly and permit parking, the Parking System has parking space contracts with the
Sheraton Hotel in the amount of $8,000.00 per month and with the Hotel Vetro in the amount of
$2,000.00 per month.
The City regularly evaluates parking demand. As development has continued to move south of
Burlington Street and the central business district, the need for additional spaces in this area has
increased. The Applied Real Estate Analysis ( "AREA "), in conjunction with Desman Associates,
estimates that there is demand for 600 additional parking spaces in downtown Iowa City. The
underlying economic growth and employment base of the City continues to contribute to increased
demand.
Parking System Rates and Charges: Rates for the Parking System are set by the City Council. Parking
System rates are reviewed annually. The rates vary by facility and the hourly and monthly rates and
charges as approved by the City Council are listed below by facility. These rates include the most recent
hourly rate adjustments that were approved by the City Council on March 21, 2006 and became effective
July 1, 2006 and the proposed monthly permit rate adjustments that were approved by the City Council
on June 2, 2009 and became effective July 1, 2009.
M
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Parking Facilities: The Parking System consists of 3 cashiered garages and 1 unattended garage, as well
as, various parking lots and on -street metered parking in the Central Business District. The City
completes regular visual inspections of the parking garages to evaluate their current appearance and
general condition. The garages are visually inspected for the condition of the main structural elements
(columns, girders, beams), parking decks, expansion and control joints, and their coating systems.
Based on the most recent inspections, all of the Parking System's facilities are in excellent/good
condition. All garages will continue to receive routine inspections and maintenance. A description of
each parking facility, their locations, access, the number of spaces, monthly permits, and current rates are
as follows:
Capitol Street Garage
Constructed 1980
Address 220 S. Capitol Street
Description Located on a parcel confined by Burlington Street to the south, Capitol
Street to the west, Clinton Street to the east and the Old Capitol Town
Center to the north.
Access This is a cashiered facility with two entry lanes off of Clinton Street; two
entry lanes off of Capitol Street; and four exit lanes onto Capitol Street.
Spaces 875
Monthly Permits 235
Rates Hourly $0.75 per hour
Monthly $80.00 per month
Changes in Capitol Street Garage rates over the last ten fiscal years:
81
Hourly
Monthly
2003
0%
0%
2004
0%
17%
2005
0%
0%
2006
0%
0%
2007
25%
7%
2008
0%
0%
2009
0%
0%
2010
0%
7%
2011
0%
0%
2012
0%
0%
81
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
Dubuque Street Garage
Constructed
Address
Description
Access
Spaces
Monthly Permits
Rates
June 30, 2012
1980
220 S. Dubuque Street
Located on a parcel confined by Burlington Street to the south, Dubuque
Street to the west, Linn Street to the east and the Sheraton Hotel to the
north.
This is a cashiered facility with two entry lanes off of Dubuque Street;
one entry lanes off of Linn Street; and two exit lanes onto Dubuque
Street.
625
325
Hourly $0.75 per hour
Monthly $80.00 per month
Changes in Dubuque Street Garage rates over the last ten fiscal years:
Chauncey Swan Garage
Constructed
Hourly
Monthly
2003
0%
0%
2004
0%
20%
2005
0%
0%
2006
0%
0%
2007
25%
8%
2008
0%
0%
2009
0%
0%
2010
0%
23%
2011
0%
0%
2012
0%
0%
Chauncey Swan Garage
Constructed
1993
Address
415 E. Washington Street
Description
Located on a parcel confined by College Street to the south, Van Buren
Street to the east, Gilbert Street to the west and Washington Street to the
north.
Access
This is an automated facility with one entry/exit lane off of College
Street; one entry/ exit lane off of Washington Street; and one entry/exit
lane through the Recreation Center parking lot onto Burlington Street.
Spaces
475
Monthly Permits
400
Rates
Hourly $0.60 per hour
Monthly $80.00 per month
82
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Changes in Chauncey Swan Garage rates over the last ten fiscal years:
Tower Place Garage
Constructed
Hourly
Monthly
2003
0%
0%
2004
0%
22%
2005
0%
0%
2006
0%
0%
2007
20%
9%
2008
0%
0%
2009
0%
0%
2010
0%
17%
2011
0%
14%
2012
0%
0%
Tower Place Garage
Constructed
2001
Address
335 E. Iowa Avenue
Description
Located on a parcel confined by Iowa City Senior Center to the south,
2004
Gilbert Street to the east, Linn Street to the west and Iowa Avenue to the
17%
north.
Access
This is a cashiered facility with two entry lanes off of Iowa Avenue;
2006
three exit lanes onto Iowa Avenue; and secured permit -only entry and
0%
exit off of Gilbert Street.
Spaces
510
Monthly Permits
319
Rates
Hourly $0.75 per hour
0%
Monthly $80.00 per month
Changes in Tower Place Garage rates over the last ten fiscal years:
N
Hourly
Monthly
2003
0%
0%
2004
0%
17%
2005
0%
0%
2006
0%
0%
2007
25%
7%
2008
0%
0%
2009
0%
0%
2010
0%
7%
2011
0%
0%
2012
0%
0%
N
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
On- Street Parking Meters: The City operates short-term meters (1 -2 hours) concentrated in the
core of the downtown. These meters are intended for shoppers use. Each parking meter dial states the
maximum time. Longer term meters become more common away from the core downtown area.
Meters 1,175
Rates Hourly $0.50 - $0.75 per hour based on proximity to the central
business district and usage.
Parking Lots: The City operates seven parking lots in the Central Business District. They consist of
a mix of permit spaces and metered spaces.
Spaces 430
Monthly Permits 138
Rates Hourly $0.50 - $0.75 per hour based on proximity to the central
business district and usage.
Monthly $60.00 per month
Moped Parking: FY12 saw the implementation of a parking permit program for mopeds, scooters,
and motorcycles. Spaces were designated throughout the Central Business District to accommodate
the use of mopeds and scooters while also removing them from parking in bicycle racks.
Spaces 148
Annual Permits 600
Rates Annual $45.00 per year
Ul
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Financial Information: The following table summarizes the results of operations for the Parking System
for the fiscal years ended June 30, 2012, 2011, and 2010.
PARKING SYSTEM
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
Last Three Fiscal Years
(amounts expressed in thousands)
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Commodities
Services and charges
Depreciation
Total operating expenses
Operating income
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets
Operating grants
Interest income
Interest expense
Total nonoperating revenues (expenses)
Income before capital contributions
and tmnsfers
Capital contributions
Transfers in
Transfers out
Change in net assets
Net Assets, Beginning
Net Assets, Ending
85
2012
2011
2010
$ 4,743
$ 5,234
$ 5,377
162
104
26
4,905
5,338
5,403
1,733
1,662
1,775
107
75
248
1,194
1,183
1,126
3,034
2,920
3,149
815
908
905
3,849
3,828
4,054
1,056
1,510
1,349
(10)
(15)
40
51
106
(366)
(408)
(538)
(336)
(357)
(447)
720
1,153
902
4 269
(16) - (110)
708 1,422 792
16,014 14,592 13,800
$ 16,722 $ 16,014 $ 14,592
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
The following table summarizes the budget and actual figures for the Parking System for the fiscal year
ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis.
PARKING SYSTEM
BUDGET AND ACTUALS (CASH BASIS)
Charges for services
Interest income
Miscellaneous
Operating grants
Bond sales
Total Receipts
Personal services
Commodities
Services and charges
Capital outlay
Transfer to capital project funds
Interfund Loan Repayment
Debt service payments
Total Disbursements
For the Year Ended June 30, 2012
(amounts expressed in thousands)
FY 13
Armal Rnd wt PPrrPTYa OP Rnd wt
$
4,467
$
4,593
97.26%
$
4,500
39
30
130.00%
42
453
479
94.57%
322
273
273
100.00%
-
-
-
0.00%
-
$
5,232
7
5,375
97.34%
$
4,864
$
1,794
$
2,024
88.64%
$
1,881
81
339
111.51%
134
1,540
1,381
23.89%
1,197
1,377
3,679
37.43%
1,386
-
-
0.00%
46
288
282
102.13%
254
839
839
100.00%
839
$
5,919
$
8,544
69.28%
$
5,737
The following table summarizes the Parking System funds on hand for the fiscal years ended June 30,
2012, 2011, and 2010.
PARKING SYSTEM
FUNDS ON HAND (CASH AND INVESTMENTS)
Last Three Fiscal Years
(amounts expressed in thousands)
20t2 20tt 20tO
Operating Funds $ 5,2(8 $ 5,928 $ 5,677
Restricted and Designated Funds L528 L52t L486
Total Funds on Hand $ 6.746 $ 7.449 $ Z t63
N
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
15. Subsequent events
As of July 1, 2012, the City of Iowa City has reclassified the Transit Operations as an enterprise fund,
which was previously recorded as part of the General Fund since the year ended June 30, 2003. The City
of Iowa City believed this reclassification would highlight the extent to which fees and charges are
sufficient to cover the cost of providing transit services, since the year ended June 30, 2008 the Transit
Operations in the General Fund have provided surplus revenue.
On November 29, 2012, the City of Iowa City received and awarded bonds for Taxable Urban Renewal
Revenue Bonds, Series 2012D, in the amount of $2,655,000. The bonds were issued to finance costs of
aiding in the planning, undertaking and carrying out of an urban renewal project.
16. New Governmental Accounting Standards Board (GASB) Standards
The Governmental Accounting Standards Board (GASB) has issued eight statements not yet implemented
by the City. The statements, which might impact the City's financial statements, are as follows:
Statement No. 60, Accounting and Financial Reporting. for Service Concession Arrangements, issued
November 2010, will be effective for the fiscal year ending June 30, 2013. The objective of this Statement
is to improve financial reporting by addressing issues related to service concession arrangements.
Statement No. 61, The Financial Reporting Entity: Omnibus – an amendment of GASB Statements No. 14
and No. 34; issued November 2010, will be effective for the fiscal year ending June 30, 2013. The
objective of this Statement is to improve financial reporting for a governmental financial reporting entity.
Statement No. 62, Codification ofAccounting and Financial Reporting Guidance Contained in Pre -
November 30, 1989 FASB and AICPA Pronouncements; issued December 2010, will be effective for the
fiscal year ending June 30, 2013. The objective of this Statement is to incorporate into the GASB's
authoritative literature certain accounting and financial reporting guidance.
Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position, issued June 2011, will be effective for the fiscal year ending June 30, 2013.
This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial
Statements —and Management's Discussion and Analysis -for State and Local Governments, and other
pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into
the definitions of the required components of the residual measure and by renaming that measure as net
position, rather than net assets.
Statement No. 65, Items Previously Reported as Assets and Liabilities, issued March 2012, will be
effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish
accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred
inflows of resources, certain items that were previously reported as assets and liabilities and recognizes,
as outflows of resources or inflows of resources, certain items that were previously reported as assets and
liabilities.
87
CITY OF IOWA CITY, IOWA
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2012
Statement No. 66, Technical Corrections — 2012 — an amendment of GASB Statements No. 10 and No. 62,
issued March 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this
Statement is to improve accounting and financial reporting for a governmental financial reporting entity
by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No.
54, Fund Balance Reporting and Governmental Fund Type DeFinitiong and No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA
Pronouncements.
Statement No. 67, Financial Reporting. for Pension Plans — an amendment of GASB Statement No. 25,
issued June 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this
Statement is to establish accounting and financial reporting requirements related to pensions for
governments whose employees are provided with pensions through pension plans that are covered by the
scope of this Statement, as well as for nonemployer governments that have a legal obligation to contribute
to those plans.
Statement No. 68, Accounting and Financial Reporting. for Pensions — an amendment of GASB Statement
No. 27, issued June 2012, will be effective for the fiscal year ending June 30, 2015. The objective of this
Statement is to improve information provided by state and local governmental employers about financial
support for pensions that is provided by other entities.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
M
M
CITY OF IOWA CITY
BUDGETARY COMPARISON SCHEDULE
BUDGET AND ACTUAL - ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS
BUDGETARY BASIS
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2012
(dollar amounts expressed in thousands)
Governmental
Fund Types Enterprise Fund
Actual Budgetary Types Actual Total Actual
Basis Budgetary Basis Budgetary Basis
Revenues:
Public safety
Property taxes
$ 49,542 $
- $
49,542
Delinquent property taxes
1
-
1
Tax increment financing taxes
839
-
839
Other city taxes
11,314
-
11,314
Licenses and permits
1,310
6
1,316
Intergovernmental
23,929
12,042
35,971
Charges for services
5,912
34,063
39,975
Use of money and property
895
1,509
2,404
Miscellaneous
3,522
1,731
5,253
Total revenues
97,264
49,351
146,615
Expenditures/Expenses:
Public safety
20,576
- 20,576
Public works
13,390
- 13,390
Culture and recreation
12,445
- 12,445
Community and economic development
18,342
- 18,342
General government
7,610
- 7,610
Debt service
28,714
- 28,714
Capital outlay
14,088
- 14,088
Business type
-
50,986 50,986
Total expenditures /expenses
115,165
50,986 166,151
Excess (deficiency) of revenues over
(under) expenditures /expenses (17,901) (1,635) (19,536)
Other financing sources and uses, net
Net change in fiord balances (1,983) 2,714 731
Balances, beginning of year 82,977 80,234 163,211
Balances, end of year 80,994 82,948 163,942
See Note to Required Supplementary Information.
U
Budgeted Amounts
Final to Actual
Variance -
Positive
Original Final (Negative)
$ 49,595 $
49,595 $
(53)
13,958
14,178
1
846
846
(7)
10,312
11,149
165
1,224
1,224
92
48,735
89,253
(53,282)
40,684
40,808
(833)
1,265
1,265
1,139
5,207
5,890
(637)
157,868
200,030
(53,415)
21,155
22,168
1,592
13,958
14,178
788
12,557
12,898
453
10,441
24,882
6,540
8,384
8,284
674
15,226
28,726
12
30,734
80,671
66,583
58,959
91,867
40,881
171,414
283,674
117,523
(13,546) (83,644) 64,108
6,946 21,130 (863)
(6,600) (62,514) 63,245
103,088 163,518
96,488 101,004
CITY OF IOWA CITY
BUDGETARY COMPARISON SCHEDULE
BUDGET TO GAAP RECONCILIATION
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2012
(dollar amounts expressed in thousands)
Governmental Fund Types
Accrual Modified Accrual
Budget Basis Adjustments Basis
Revenues $
97,264 $
(2,224) $
95,040
Expenditures
115,165
(19,104)
96,061
Net
(17,901)
16,880
(1,021)
Other financing sources (uses)
15,918
(6,073)
9,845
Beginning Fund Balances $
82,977 $
(13,757) $
69,220
Ending Fund Balances $
80,994 $
(2,950) $
78,044
Enterprise Fund Types
Accrual Accrual
Budget Basis Adjustments Basis
Revenues $
49,351 $
(5,063) $
44,288
Expenditures
50,986
(7,139)
43,847
Net
(1,635)
2,076
441
Other financing sources (uses)
4,349
5,715
10,064
Extraordinary items
-
(5,000)
(5,000)
Beginning Fund Balances
80,234 $
178,554
258,788
Ending Fund Balances $
82,948 $
181,345 $
264,293
See Note to Required Supplementary Information.
4N
City of Iowa City, Iowa
Note to Required Supplementary Information - Budgetary Reporting
For the Year Ended June 30, 2012
In accordance with Code of Iowa, the City Council annually adopts a budget following required public
notice and hearing which includes all funds, except internal service funds and agency funds. The budget
basis of accounting is cash basis. The annual budget may be amended during the year utilizing similar
statutorily prescribed procedures.
Formal and legal budgetary control is based upon nine major classes of expenditures known as functions,
not by fund or fund type. These nine functions are: public safety, public works, health and social
services, culture and recreation, community and economic development, general government, debt
service, capital outlay and business -type. The legal level control is at the aggregated function level, not at
the fund or fund type level.
During the year, budget amendments increased budgeted revenues by $106,986,000 and expenditures by
$162,901,000. The budget amendments were primarily due to changes in the breadth and timing of
capital improvement projects, which the City budgets in full during the initial year of the projects and
amends future year budgets for carryover. Additional amendments are related to flood recovery and
mitigation costs and the associated grants from flooding in the summer of 2008.
M
City of Iowa City, Iowa
Note to Required Supplementary Information — Schedule of Funding Progress for Health and
Dental Plans
For the Year Ended June 30, 2012
91
UAAL As a
Actuarial
Actuarial
Actuarial
Percentage of
Valuation
Fiscal Value of
Accrued
Unfunded AAL
Funded
Covered
Date
Year Assets
Liability (AAL)
(UAAL)
Ratio
Covered Payroll
Payroll
July 1, 2008
June 30, 2010 $ -
$ 15,235,196
$ 15,235,196
0.00%
$ 32,804,905
46.44%
July 1, 2010
June 30, 2011 $ -
$ 6,893,438
$ 6,893,438
0.00%
$ 29,842,842
23.10%
July 1, 2010
June 30, 2012 $ -
$ 6,893,438
$ 6,893,438
0.00%
$ 29,842,842
23.10%
91
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues derived from specific sources that are required to be
accounted for as separate funds. The funds in this category and their purpose are as follows:
Economic Development Fund — accounts for revenue and expenditures of economic development
activities.
Metropolitan Planning Organization of Johnson County (formerly Johnson County Council of
Governments) Fund — accounts for the financial activities of the metropolitan/rural cooperative planning
organization.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of
capital facilities and other major fixed assets, with the exception of those that are financed by proprietary
fund monies. The fund in this category is as follows:
Bridge, Street, and Traffic Control Construction Fund — accounts for the construction or replacement
of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems.
Other Construction Fund — accounts for the construction or replacement of other City general fixed
assets, such as administrative buildings with various funding sources, including general obligation bonds,
intergovernmental revenues, and contributions.
hD
CITY OF IOWA CITY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2012
(amounts expressed in thousands)
Special Revenue
Capital Projects
Metropolitan
Bridge,
Planning
Street, and
Organization
Traffic
Economic of Johnson
Control Other
Development County
Construction Construction Total
Assets
Equity in pooled cash and investments $ - $
141 $ 2,539 $
- $
2,680
Receivables,
Contracts payable
-
- 224
Property tax 280
- -
-
280
Accounts and unbilled usage -
- -
8
8
Interest -
- -
2
2
Due from other governments -
52 435
1,474
1,961
Assets held for resale -
- 165
-
165
Restricted assets,
1,318
Liabilities payable from restricted assets,
Equity in pooled cash and investments -
- 1
21.734
21,735
Total assets S 280 S
193 S 3.140 S
23218 S
26,831
Liabilities and Fund Balances
Liabilities,
Accounts payable $
3 $
9 $ 31 $
137 $
180
Contracts payable
-
- 224
1,106
1,330
Accrued liabilities
-
9 4
9
22
Advances from other funds
76
- -
265
341
Due to other governments
-
- 2,947
-
2,947
Deferred revenue
280
- 220
818
1,318
Liabilities payable from restricted assets,
Deposits
-
- 1
-
1
Total liabilities
359
18 3,427
2,335
6,139
Fund balances,
Restricted - 175 - 20,883 21,058
Unassigned (79) - (287) - (366)
Total fund balances (79) 175 (287) 20,883 20,692
Total liabilities and fund balances $ 280 $ 193 S 3,140 $ 23,218 S 26,831
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Revenues
Property taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current:
Public safety
Public works
Culture and recreation
Community and economic
development
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds
Insurance recoveries
Premium on issuance of bonds
Transfers in
Transfers out
Total other financing sources
and (uses)
Net change in fund balances
Fund Balances, Beginning
Fund Balances, Ending
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Soecial Revenue
Metropolitan
Planning
Organization
Economic of Johnson
Development County
Capital Projects
Bridge,
Street, and
Traffic
Control Other
Construction Construction Total
$ 838 $ - $ 208 $ - $ 1,046
- 316 1,517 2,012 3,845
- 11 7 18
- 8 95 125 228
838 324 1,831 2,144 5,137
559 653
- 309
309
2,249 831
3,080
11 911
922
- 305
1,517
170
170
- - 1,481 4,585 6,066
559 653 3,741 7,111 12,064
279 (329) (11,910) (4,967) (6,927)
9,690 9,690
53 53
- - 165 165
409 3,510 4,897 8,816
(1,003) - (146) (5,015) (6,164)
(1,003)
409
3,364
9,790
12,560
(724)
645
80
95
1,454
(1,741)
4,823
16,060
5,633
15,059
$ (79) $
175 $
(287) $
20,883
$ 20,692
M
A/I
M
NONMAJOR ENTERPRISE FUNDS
Enterprise Funds account for operations and activities of the City that are financed and operated in a manner
similar to a private business enterprise, and where the costs of providing services to the general public on a
continuing basis are expected to be financed or recovered primarily through user charges, or where the City has
decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes. The funds in this
category are as follows:
Airport Fund — accounts for the operation and maintenance of the airport facility.
Stormwater Fund — accounts for the operation and maintenance of the stormwater operation.
Cable Television Fund — accounts for the operation and maintenance of the Broadband Telecommunications
Commission that oversees the franchise agreement with the cable television company, including production and
broadcasting on the government television channels.
M
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
June 30, 2012
(amounts expressed in thousands)
Liabilities
Current liabilities
Accounts payable
5
12
Cable
131
Contracts payable
Airport
Stormwater
Television
Total
Assets
1
4
9
14
Current assets:
2
1
17
20
Equity in pooled cash and investments
$ 642
$ 743
$ 1,483
$ 2,868
Receivables:
Accounts and unbilled usage
-
96
187
283
Interest
2
1
3
6
Due from other governments
585
-
-
585
Total current assets
1,229
840
1,673
3,742
Noncurrent assets:
-
5
7
12
Restricted assets:
1,149
6
20
1,175
Equity in pooled cash and investments
108
-
114
222
Other post employment benefits asset
8
-
-
8
Capital assets:
Land
7,264
2,167
-
9,431
Buildings
4,174
-
741
4,915
Improvements other than buildings
357
-
-
357
Machinery and equipment
281
259
110
650
Infrastructure
12,460
37,369
-
49,829
Accumulated depreciation
(4,261)
(9,151)
(358)
(13,770)
Construction in progress
1,740
1,750
-
3,490
Total noncurrent assets
22,131
32,394
607
55,132
Total assets
23,360
33,234
2,280
58,874
Liabilities
Current liabilities
Accounts payable
5
12
114
131
Contracts payable
464
13
-
477
Accrued liabilities
1
4
9
14
Employee vested benefits
2
1
17
20
Total current liabilities
472
30
140
642
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits
8
-
-
8
Advances from other funds
1,139
-
-
1,139
Employee vested benefits
2
1
13
16
Other post employment benefits obligation
-
5
7
12
Total noncurrent liabilities
1,149
6
20
1,175
Total liabilities
1,621
36
160
1,817
Net Assets
Invested in capital assets, net of related debt 22,015 32,394 493 54,902
Restricted for future improvements 100 - - 100
Unrestricted (376) 804 1,627 2,055
Total net assets $ 21,739 $ 33,198 $ 2,120 $ 57,057
100
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expewes:
personal services
Commodities
Services and charges
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating Revenues (Expewes):
Gain on disposal of capital assets
Interest income
Total nonoperating revenues (expenses)
Income (loss) before capital contributions
and transfers
Capital contributions
Transfers in
Transfers out
Change in net assets
Net Assets, Beginning
Net Assets, Ending
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Cable
Airport Stormwater Television Total
$ 306 $ All $ 824 $ 1,941
3 1 4
309 812 824 1,945
36
203
490
729
42
138
11
191
316
246
158
720
394
587
659
1,640
740
724
36
1,500
1,134
1,311
695
3,140
(825) (499) 129 (1195)
351 - - 351
2 1 4 7
353 1 4 358
(472) (498) 133 (837)
1,576 570 - 2,146
360 981 - 1,341
(14) (70) (55) (139)
1,450 983 78 2,511
20,289 32,215 2,042 54,546
$ 21,739 $ 33,198 $ 2,120 $ 57,057
101
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Cash Flows From Operating Activities
Receipts fmm customers and users
Payments to suppliers
Payments to employees
Net cash flows fmm operating activities
Cash Flows From Noncapital Financing Activities
Transfers from other funds
Transfers to other funds
Repayment of advances fmm other funds
Net cash flows fmm noncapital financing activities
Cash Flows From Capital and Related Financing
Activities
Capital grants received
Acquisition and construction of property and equipment
Proceeds from sale of property
Net cash flows fmm capital and related financing
activities
Cash Flows From Investing Activities
Interest on investments
Net increase (decrease) in cash and cash equivalents
Cash and Cash Equivalents, Beginning
Cash and Cash Equivalents, Ending
Reconciliation of operating income (loss) to net
cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation expense
Changes in
Receivables:
Accounts and unbilled usage
Accounts payable
Accrued liabilities
Employee vested benefits
Deposits
Other post employment benefits assettobligation
Total adjustments
Net cash flows from operating activities
Noncash Investing, Capital, and Financing Activities:
Contributions of capital assets from government and others
Cable
Airport Stormwater Television Total
$ 308 $
787 $
821 $
1,916
(355)
(3977)
(164)
(916)
(47)
(208)
(512)
(767)
(94)
182
145
233
360
981 - 1,341
(14)
(70) (55) (139)
(324)
- - (324)
22
911 (55) 878
1,296 - - 1,296
(1,322) (1,016) - (2,338)
373 373
347 (1,016) - (669)
1 1 4 6
276 78 94 448
474 665 1,503 2,642
$ 750 $ 743 $ 1,597 $ 3,090
$ (825) $ (499) $ 129 $ (1,195)
740 724 36 1,500
-
(25)
(3)
(28)
3
(13)
5
(5)
(2)
(5)
(14)
(21)
2
(1)
4
5
(1)
(1)
(11)
1
(12)
(22)
731
681
16
1,428
$ (94) $
182 $
145 $
233
$ - $ 570 $ - $ 570
102
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.
103
CITY OF IOWA CITY
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2012
(amounts expressed in thousands)
Liabilities
Current liabilities
Accounts payable
Equipment
Central
Loss
Information
970
Accrued liabilities
Maintenance
Services
Reserve
Technology
Total
Assets
35
1
3
24
63
Current assets:
289
1
2,596
85
2,971
Equity in pooled cash and investments
$ 8,129 $
732
$ 11,986
$ 2,734 $
23,581
Receivables:
26
1
3
20
50
Interest
16
1
25
6
48
Due from other governments
93
-
-
-
93
Inventories
490
-
-
-
490
Total current assets
8,728
733
12,011
2,740
24,212
Noncurrent assets:
Other post employment benefits asset
3
-
25
-
28
Capital assets:
Land
45
-
-
-
45
Buildings
578
-
-
243
821
Improvements other than buildings
50
-
-
-
50
Machinery and equipment
13,892
203
19
1,617
15,731
Infrastructure
-
-
-
1,577
1,577
Accumulated depreciation
(9,496)
(135)
(11)
(1,922)
(11,564)
Construction in progress
90
-
-
-
90
Total noncurrent assets
5,162
68
33
1,515
6,778
Total assets
13,890
801
12,044
4,255
30,990
Liabilities
Current liabilities
Accounts payable
240
-
687
43
970
Accrued liabilities
14
-
1,906
18
1,938
Employee vested benefits
35
1
3
24
63
Total current liabilities
289
1
2,596
85
2,971
Noncurrent liabilities:
Employee vested benefits
26
1
3
20
50
Other post employment benefits obligation
-
3
-
53
56
Total noncurrent liabilities
26
4
3
73
106
Total liabilities
315
5
2,599
158
3,077
Net Assets
Invested in capital assets, net of related debt 5,159 68 8 1,515 6,750
Unrestricted 8,416 728 9,437 2,582 21,163
Total net assets $ 13,575 $ 796 $ 9,445 $ 4,097 $ 27,913
104
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
personal services
Commodities
Services and charges
Depreciation
Total operating expenses
Operating income (loss)
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
$ 5,405 $ 238 $ 9,732 $ 1,998 $ 17,373
- - 3 193 196
5,405 238 9,735 2,191 17,569
868
39
272
1,049
2,228
2,403
3
589
260
3,255
327
140
8,247
493
9,207
3,598
182
9,108
1,802
14,690
1,126
26
4
230
1,386
4724
208
9,112
2,032
16,076
681
30
623
159
1,493
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets 195 - - 5 200
Interest income 17 2 29 7 55
Total nonoperating revenues (expenses) 212 2 29 12 255
Income (loss) before capital contributions
and transfers
Transfers in
Transfers out
Change in net assets
Net Assets, Beginning
Net Assets, Ending
893 32 652 171 1,748
44 7 51
(1) - - (1)
937 31 652 178 1,798
12,638 765 8,793 3,919 26,115
$ 13,575 $ 796 $ 9,445 $ 4,097 $ 27,913
105
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Cash Flows From Operating Activities
Receipts from customers and users
Payments to suppliers
Payments to employees
Net cash flows from operating activities
Cash Flows From Noncapital Financing
Activities
Transfers from other funds
Operating transfers to other funds
Net cash flows from noncapital financing
activities
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of property
and equipment
Proceeds from sale of property
Net cash flows from capital and related
financing activities
Cash Flows From Investing Activities
Interest on investments
Net increase in cash and cash
equivalents
Cash and Cash Equivalents, Beginning
Cash and Cash Equivalents, Ending
Reconciliation of operating income (loss)
to net cash Bows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash flows from operating
activities:
Depreciation expense
Changes in:
Receivables:
Due from other governments
Inventories
Accounts payable
Accrued liabilities
Employee vested benefits
Other post employment benefits
assetlobligation
Total adjustments
Net cash flows from operating acfivifics
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Equipment
Maintenance
Central
Services
Loss
Reserve
Information
Technology
Total
$ 5,409
$ 238
$ 9,735
$ 2,191
$ 17,573
(2,888)
(144)
(8,185)
(742)
(11,959)
(896)
(40)
200
(1,073)
(1,809)
1,625
54
1,750
376
3,805
44
- (1)
7
- -
51
(1)
44 (1)
7
50
(1,057) (17) (5) (130) (1,209)
227 - 5 232
(830) (17) (5) (125) (977)
15 2 23 6 46
854
7,275
38
694
1,768
10,218
264
2,470
2,924
20,657
$ 8,129 $
732 $
11,986 $
2,734 $
23,581
$ 681 $ 30 $ 623 $
1,126 26 4
159 $ 1,493
230 1,386
4
4
27
27
(185)
(1) 651
11
476
(25)
(2) 471
(31)
413
(3)
1
1
(1)
1
6
7
944
24 1,127
217
2,312
$ 1,625 $
54 $ 1,750 $
376 $
3,805
106
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.
107
CITY OF IOWA CITY
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FONDS
For the Year Ended June 30, 2012
(amounts expressed in thousands)
Balance Balance
July 1, 2011 Increases Decreases June 30, 2012
Project Green
Assets
Equity in pooled cash and investments $ 206 $ 57 $ 59 $ 204
Interest receivable 1 1 1 1
Total assets $ 207 $ 58 $ 60 $ 205
Liabilities
Due to agency $ 207 $ 58 $ 60 $ 205
Total liabilities $ 207 $ 58 $ 60 $ 205
Library Foundation
Assets
Equity in pooled cash and investments $ 2 $ 9 $ 11 $ -
Accounts receivable 9 - - 9
$ 11 $ 9 $ 11 $ 9
Liabilities
Accrued liabilities
$
11 $
9 $
11 $
9
Total liabilities
$
11 $
9 $
11 $
9
Total Agency Funds
Assets
Equity in pooled cash and investments $ 208 $ 66 $ 70 $ 204
Accounts receivable 9 - - 9
Interest receivable 1 1 1 1
Total assets $ 218 $ 67 $ 71 $ 214
Liabilities
Accrued liabilities $ 11 $ 9 $ 11 $ 9
Due to agency 207 58 60 205
Total liabilities $ 218 $ 67 $ 71 $ 214
108
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 111
These schedules contain trend information to help the reader understand how
the government's financial performance and well -being have changed over
time.
Revenue Capacity 116
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 126
These schedules present information to help the reader assess the
affordability of the government's current levels of outstanding debt and the
government's ability to issue additional debt in the future.
Demographic and Economic Information 136
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities take place.
Operating Information 138
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. The city implemented GASB 34 in FY03; schedules
presenting gaoernment -wide information include information beginning in that year.
109
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CITY OF IOWA CITY, IOWA
PROPERTY TAX BUDGETS AND COLLECTIONS
Last Ten Fiscal Years
(Cash basis of accounting)
(amounts expressed in thousands)
119
Percent of
Total as
Collection Total Tax Current Tax
Levy
Delinquent Tax
Total Tax
a Percent of
Year Levied Collections
Collected
Collections
Collections
Lev
2003 31,975 31,863
99.6
16
31,879
99.7
2004 34,073 34,009
99.8
23
34,032
99.9
2005 34,403 34,814
101.2
15
34,829
101.2
2006 36,460 36,654
100.5
44
36,698
100.7
2007 39,094 38,947
99.6
13
38,960
99.7
2008 39,973 39,768
99.5
70
39,838
99.7
2009 43,168 43,118
99.9
18
43,136
99.9
2010 45,393 45,318
99.8
17
45,335
99.9
2011 47,789 47,826
100.1
8
47,834
100.1
2012 49,590 49,543
99.9
1
49,544
99.9
Source: Certificate of City Taxes and Johnson County
Treasurer's Office
Note: This schedule is presented on a cash basis of
accounting.
Taxes are collected by
the Johnson County Treasurer and
submitted to the City in the following month. Because of the month delay, some years
will show Current Tax
Collections in
excess of the Total Tax Levied.
I Delinquent tax collection is presented by collection year, rather
than levy year, because information is not available from
Johnson County Treasurer by levy year.
119
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CITY OF IOWA CITY, IOWA
SALES HISTORY AND TOTAL WATER CHARGES
Last Ten Fiscal Years
Fiscal
Water Sales
Water System
Year
Cubic Feet Sold
Char¢es
2003
257,788,030
9,308,824
2004
253,454,012
8,850,608
2005
254,560,239
8,315,719
2006
267,107,998
8,844,993
2007
261,072,632
8,414,310
2008
249,361,929
7,976,536
2009
234,804,167
7,497,903
2010
234,342,825
7,568,378
2011
236,838,370
7,661,898
2012
246,618,257
7,953,738
Sources:
City of Iowa City Revenue Department
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CITY OF IOWA CITY, IOWA
SALES HISTORY AND TOTAL SEWER CHARGES
Last Ten Fiscal Years
Fiscal
Sewer Sales
Sewer System
Year
Cubic Feet Sold
Charaes
2003
297,084,229
12,015,122
2004
294,683,685
12,482,393
2005
297,714,953
12,557,646
2006
302,925,357
12,373,762
2007
315,199,203
11,084,369
2008
285,492,596
12,221,769
2009
276,455,246
12,499,949
2010
265,375,857
12,541,905
2011
280,303,237
12,748,695
2012
282,134,840
12,784,321
Sources:
City of Iowa City Revenue Department
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CITY OF IOWA CITY, IOWA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES'
Last Ten Fiscal Years
(amounts expressed in thousands)
128
Ratio of Debt
Service to General
Expenditures
Total
1.00
.10:
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General
Fiscal Year
UX)
.11 :
UX)
Governmental
Ended
.11 :
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Total
Expenditures
June 30
Principal
Interest
Debt Service
and Transfers
2003
$ 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
2007
6,700
3,464
10,164
93,639
2008
7,323
3,556
10,879
99,178
2009
8,418
3,364
11,782
102,607
2010
9,354
3,064
12,418
108,950
2011
10,386
2,889
13,275
120,424
2012
13,294
2,543
15,837
119,242
Notes:
I General Fund, Special Revenue Funds, Debt Service Fund
and Capital Projects
Funds.
128
Ratio of Debt
Service to General
Expenditures
.10:
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.10:
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.15:
1.00
.10:
UX)
.11 :
UX)
.11 :
UX)
.11 :
UX)
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1.00
.11 :
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.13:
1.00
CITY OF IOWA CITY, IOWA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
Name of
Governmental Unit
City of Iowa City
Iowa City Community
School District
Total
Per capita assessed value
June 30, 2012
(amounts expressed in thousands, except per capita)
Total General
Long -Term
Direct Debt
Outstanding
$ 75,920
17,990
$ 93,910
Source: Johnson County Auditor's Office.
Amount
% Applicable Applicable
to the to the
City of City of
Iowa City Iowa City Per Capita
100.00% $ 75,920 $ 1,101.137497
59.07% 10,627 154.1344675
$ 86,547 $ 1,255
$ 65,842
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.
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CITY OF IOWA CTTY, IOWA
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
(amounts expressed in thousands)
ISscal
Year
Ended
June 30
Revenue
Expcnseti
Net Revenue
Available for
Debt Service Principal
Parking Rcvcnuc'
Annual Debt Service
Interest Total
Ratio of
Coveraec
2003
$ 4,199
$ 1,953
$ 2,245
$ 375
$ 715
$ 1,090
2.06
2004
4,164
2,319
1,945
395
697
1,092
1.71
2005
4,360
2,377
1,993
305
663
969
2.05
2006
4,161
2,390
1,791
320
645
965
1.95
2007
5,035
2,973
2,062
335
626
961
2.15
2009
4,995
2,454
2,541
355
606
961
2.64
2009
5,630
3,024
2,606
370
594
954
2.73
2010°
5,509
3,149
2,360
390
504
994
2.64
2011
5,399
2,920
2,469
420
391
911
3.04
2012
4,945
3,034
1,911
500
339
939
2.29
Wastewater Treatment Rcvcnuc°
2003
$ 13,(10) $
4,463 $
9,537 $
3,060 $
4,395
$ 7,445
1.15
2004
12,947
4,523
9,424
3,290
3,672
6,952
1.21
2005
12,60(1
4,432
9,169
3,630
3,537
7,167
1.14
2006
12,799
4,260
9,539
3,915
3,390
7,205
1.19
2007
13,709
4,236
9,472
3,905
3,234
7,139
1.33
2009°
13,332
4,591
9,751
4,105
3,071
7,176
1.22
20096
13,462
5,202
9,260
4,260
2,913
7,073
1.17
2010°
13,174
5,050
9,124
4,205
2,307
6,512
1.25
2011°
13,291
5,477
7,904
1,940
2,054
3,994
2.00
2012
13,175
5,663
7,512
4,615
1,693
6,309
1.19
Water Revenues
2003
$ 10,241 $
4,361 $
5,990 $
500 $
1,099
$ 1,599
3.70
2004
10,627
4,360
6,267
925
1,427
2,352
2.66
2005
9,297
4,793
4,504
945
1,340
2,195
2.06
2006
9,919
5,722
4,196
990
1,305
2,195
1.92
2007
9,220
5,356
3,964
915
1,269
2,193
1.77
2009°
9,259
5,349
3,910
955
1,229
2,194
1.79
20096
9,933
5,726
3,107
995
1,171
2,166
1.43
2010°
9,336
5,153
3,193
690
1,055
1,735
1.93
2011
9,354
5,464
2,990
1,110
902
2,012
1.44
2012°
9,649
5,653
2,996
1,200
961
2,061
1.45
Notes:
Excludes depreciation and interest.
2 Includes principal and interest of revenue bonds only.
a Parking Revenue bonds ratio of "Net Revenue Available for Debt Service' to "Total Annual Debt Service'
is required to be at least 1.25.
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Annual Debt Service" is required to be at least 1.10.
s Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service"
is required to be at least 1.10.
Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service.
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Fiscal Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Fiscal Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Total
CITY OF IOWA CITY, IOWA
REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE
Principal
$ 500,000
515,000
530,000
540,000
560,000
580,000
605,000
625,000
650,000
680,000
705,000
735,000
770,000
695,000
$ 8,690,000
Principal
$ 4,615,000
4,865,000
3,250,000
3,370,000
3,520,000
3,625,000
3,775,000
3,915,000
4,090,000
3,740,000
2,485,000
1,220,000
700,000
740,000
775,000
44,685,000
Parking
Outstanding
Interest
$ 339,200
323,975
308,300
292,250
272,950
250,150
226,450
201,850
176,350
148,900
119,469
88,869
54,000
17,375
$ 2,820,088
Sewer
Outstanding
Interest
$ 1,693,000
1,546,888
1,418,681
1,304,900
1,175,119
1,034,575
886,575
731,400
557,463
378,013
232,288
141,250
93,250
57,250
19,375
S 11,270,027
134
Total
$ 839,200
838,975
838,300
832,250
832,950
830,150
831,450
826,850
826,350
828,900
824,469
823,869
824,000
712,375
$ 11,510,088
Total
$ 6,308,000
6,411,888
4,668,681
4,674,900
4,695,119
4,659,575
4,661,575
4,646,400
4,647,463
4,118,013
2,717,288
1,361,250
793,250
797,250
794,375
S 55,955,027
(continued)
CITY OF IOWA CITY, IOWA
REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued)
Fiscal Year
20121
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Total
Principal
$ 1,200,000
845,000
1,335,000
1,380,000
1,420,000
1,465,000
1,520,000
1,565,000
1,620,000
1,680,000
1,740,000
1,805,000
1,325,000
1,390,000
835,000
S 21,125,000
Water
Outstanding
Interest
$ 861,409
757,529
649,946
609,515
567,215
522,946
475,903
426,515
374,103
317,571
256,781
191,764
128,847
68,481
18,788
$ 6,227,313
Notes:
IAmounts for Principal excludes called revenue bonds.
135
Total
$ 2,061,409
1,602,529
1,984,946
1,989,515
1,987,215
1,987,946
1,995,903
1,991,515
1,994,103
1,997,571
1,996,781
1,996,764
1,453,847
1,458,481
853,788
S 27,352,313
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Public Safety
Police
Fire
Animal Shelter
Inspection Services
Public Works
Public Works Admin
Engineering
Flood Recovery
Culture and Recreation
Parks and Rec Admin
Recreation
Parks
Forestry
Cemetery
CBD Maintenance
Library
Senior Center
Community and Economic Development
General Government
City Council
City Manager
City Clerk
City Attorney
Tort Liability, Insurance
Personnel
Finance
Government Buildings
Energy Conservation
Human Rights
Transit
Special Revenue
Employee Benefits
CIP / Roads
Flood Mitigation Grants
Community Development
Traffic Engineering
Streets
MPOJC (formerly JCCOG)
Library Development
Capital Project Administration
Internal Service Funds
Information Technology
Equipment
Central Services
Risk Management
Business -Type Activities
Parking
Wastewater Treatment
Water
Sanitation
Airport
Cable Television
Stormwater
Housing Authority
Total
Source: City's Financial Plans
CITY OF IOWA CITY, IOWA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
Last Ten Fiscal Years
Full -Time Equivalent Employees as of June 30
2003 2004 2005 2006 2007 2008 2009
97.25
97.25
94.25
94.25
96.25
96.25
103.25
58
58
56
57
57
57
57
6
6
6
6
6
6
6
14.13
14.13
13.88
14.88
14.88
15.38
15.55
2
2
2
2
2
2
2
13.6
13.6
11.6
11.6
11.6
11.35
11.35
2
2
2
2
2
2
2
15.17
15.17
15.17
15.17
15.42
15.42
15.42
13
13
12
13
13
13
13
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
41.25
4325
42.63
42.63
42.89
43.14
43.14
5.81
5.81
631
6.31
6.31
6.31
6.31
8.35
9.45
8.45
8.45
8.45
8.95
9.05
7
7
7
7
7
7
7
3
3
3
3
3
3
3
4
4
4
4
4
4
4
6.6
6.6
6.6
6.6
6.6
6.6
6
4
4
4
4
4
4
1
4
28.61
28.61
26.61
26.75
26.75
26.5
25.3
4.96
4.96
4.96
4.96
4.96
4.96
4.96
0.5
0.5
0.5
0.5
0.5
0.25
0.25
2.5
2.5
2.5
2.5
2.5
2.5
2.5
48.5
48.5
50.5
50.5
50.5
54.75
58.5
0.34
034
0.34
0.39
0.39
0.29
029
7
7
3
2
2
1
2
5.45
535
4.35
4.35
4.35
3.98
3.88
5.65
5.65
5.65
4.15
4.15
4.15
4.15
22
22
22
23.5
23.5
23.5
25.5
6.1
6.1
6.1
6.6
6.6
6.6
6.6
1.5
1.5
0.8
1
1
1
1
7.5
7.5
8
11.75
12
12.3
12.3
11.25
11.26
11.25
11.26
1126
11.26
11.26
0.75
0.75
0.75
0.75
0.75
0.75
0.75
1.33
1.33
1.32
1.38
1.38
1.73
1.93
31.5
31.5
32.75
32.75
32.75
32.75
33.25
26.3
273
273
25.5
25.5
25.5
25.6
30.7
31.7
31.7
32.5
32
32.75
32.75
32.35
3235
34.35
33.85
33.85
34.85
34.85
2
2
2
1.6
1.6
1.6
1.75
6.19
6.19
6.19
6.19
6.19
6.19
6.44
-
-
-
0.5
1
2
1.9
12.5
12.5
12.75
13.25
13.25
13.25
13.25
605.64
610.65
599.56
605.37
608.13
614.81
629.03
138
2010
2011
2012
11.26
11.26
11.26
103.25
98
97
57
66
65
6
6
6
15.55
15.55
15.55
2
2
2
11.35
12.1
12.1
1.75
0.4
0.4
2
2
2
15.42
15.42
15.42
13
13
13
3
3
3
3
3
3
3
3
3
43.14
43.14
43.64
6.31
631
6.5
9.05
9.1
9.1
7
7
7
3
3
3
4
4
4
6
5.6
5.6
1
4
1
4
1
4
253
25.24
26.53
496
4.96
4.83
025
-
2.5
2.5
2.5
58.5
56.25
56.25
029
0.26
0.55
2
1.6
1.6
3.88
3.83
3.83
4.15
4.15
4.15
25.5
25.5
25.5
6.6
6.6
6.6
3 5
12.3
11.3
11.8
11.26
11.26
11.26
0.75
0.75
0.75
1.93
2.01
1.8
33.25
32.75
32.75
25.6
25.6
25.4
32.75
32.75
32.75
35.85
35.85
37.85
1.75
1.75
1.75
6.44
6.69
6.63
1.9
1.9
2.1
13.25
13.25
13.25
630.03
633.37
637.74
139
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144
EideBailly.
CPAs 6i 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 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, 2012, which collectively comprise the City's basic financial statements and have
issued our report thereon dated December 12, 2012. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States.
Internal Control Over Financial Reporting
Management of the City is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the City's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. Amaterial weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
145
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2012, are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City of Iowa City, Iowa, and are reported in Part H of the accompanying
Schedule of Findings and Questioned Costs. Since our audit was based on tests and samples, not all
transactions that might have had an impact on the comments were necessarily audited. The comments
involving statutory and other legal matters are not intended to constitute legal interpretations of those
statutes.
This report is intended solely for the information and use of management, City Council, others within the
entity, federal awarding agencies, and pass - through entities and is not intended to be and should not be
used by anyone other than these specified parties.
Dubuque, Iowa
December 12, 2012
146
EideBailly.
CPAs 6i BUSINESS ADVISORS
Independent Auditor's Report on Compliance with Requirements That Could Have
a Direct and Material Effect on Each Major Program and on Internal Control over
Compliance in Accordance with OMB Circular A -133
To the Honorable Mayor and
Members of the City Council
City of Iowa City, Iowa
Compliance
We have audited the compliance of the City of Iowa City, Iowa, with the types of compliance
requirements described in the OMB Circular A -133 Compliance Supplement that could have a direct and
material effect on each of the City's major federal programs for the year ended June 30, 2012. The City's
major federal programs are identified in the summary of the independent auditor's results section of the
accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of
the City's management. Our responsibility is to express an opinion on the City's compliance based on our
audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, 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 of the City's compliance with those requirements.
In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2012.
147
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
Internal Control Over Compliance
Management of the City of Iowa City, Iowa, is responsible for establishing and maintaining effective
internal control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs. In planning and performing our audit, we considered the City's internal
control over compliance with the requirements that could have a direct and material effect on a major
federal program to determine the auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance with OMB Circular
A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control
over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
This report is intended solely for the information and use of management, City Council, others within the
entity, federal awarding agencies, and pass - through entities and is not intended to be and should not be
used by anyone other than these specified parties.
Dubuque, Iowa
December 12, 2012
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Federal Pass - Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Commerce:
Direct program:
Economic Adjustment Assistance 11.307 $ 712,207
Economic Adjustment Assistance 11.307 201,603
Total U.S. Department of Commerce
913,810
U.S. Department of Housing and Urban Development:
Direct program:
Community Development Block Grants/
Entitlement Grants
14.218
1,971,911
Community Development Block Grants/
Entitlement Grants
14.218
422,435
2,394,346
Pass - through program from:
Iowa Economic Development Authority:
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRHB -225
4,476,374
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRH -210
994235
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRI -271
314,568
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRI -273
231,995
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRIEF -276
213222
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRB -204
167,163
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRMH -215
162,702
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRIEF -274
151,038
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
14.228
08 -DRIEF -275 IC
83,542
149
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Federal Pass- Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Housing and Urban Development: (continued)
Pass - through program from: (continued)
Iowa Economic Development Authority: (continued)
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii
Direct program:
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Public and Indian Housing
Section 8 Housing Choice Vouchers
Public housing fiords cluster:
Public Housing Capital Fund
Public Housing Capital Fund
Public Housing Capital Fund
14.228
08 -DRPG -226 $ 50,000
14.228
08 -DRMI-007 33,179
14.228
08 -DRH -010 2,984
6,881,002
14.239
387,802
14.239
259,262
14.239
167,530
14.239
49,713
864,307
14.850
142,826
14.871
6,485,269
14.872 136,967
14.872 4,507
14.872 396
141,870
ARRA - Public Housing Capital Fund
Stimulus Formula (Recovery Act) 14.885
Total Public Housing Funds Cluster
Total U.S. Department of Housing and Urban Development
150
12,394
154,264
16,922,014
Federal
CFDA
Grantor/Program Number
U.S. Department of Justice:
Pass - through program from:
Iowa Department of Justice:
Violence Against Women Formula Grants 16.588
Direct program:
Bulletproof Vest Partnership Program
Pass - through program from:
Governor's Office of Drug Control Policy:
Public Safety Partnership and Community
Policing Grants
Public Safety Partnership and Community
Policing Grants
JAG cluster:
Direct program:
Edward Byrne Memorial Justice
Assistance Grant Program
Edward Byrne Memorial Justice
Assistance Grant Program
Pass - through program from:
Governor's Office of Drug Control Policy:
ARRA — Recovery Act — Edward
Byrne Memorial Justice Assistance
Grant (JAG) Program /Grants to
States and Territories
16.607
16.710
16.710
16.738
16.738
16.803
Direct program:
ARRA — Recovery Act — Edward Byrne
Memorial Justice Assistance Grant
(JAG) Program /Grants to Units of
Local Government 16.804
Total JAG Program Cluster
Total U.S. Department of Justice
151
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Pass - Through
Entity Identifying
Number
VW-12-34
09- Hotspots /Interdiction
10- Hotspots /Interdiction
09JAG -17244
Federal
Expenditures
S 43,878
5,231
24,567
16,873
41,440
25,407
6,167
31,574
111,934
13,861
157,369
247,918
Grantor/Program
U.S. Department of Transportation:
Direct program:
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Pass - through program from:
Iowa Department of Transportation:
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Federal
Pass- Through
CFDA
Entity Identifying
Federal
Number
Number
Expenditures
20.106
$ 1,183,480
20.106
167,600
20.106
11,330
1,362,410
20.205
STP -U- 3715(651) -70 -52
480,000
20.205
12MPO -MPOJC
139,843
20.205
BRM- 3715(650)- -8N -52
63,288
20.205
FHWA IA08 -03
978
684,109
Iowa Department of Transportation and
Metropolitan Planning Organization of
Johnson County:
Metropolitan Transportation Planning 20.505
Direct program:
Federal Transit — Formula Grants
Federal Transit — Formula Grants
Federal Transit — Formula Grants
Pass - through program from:
Iowa Department of Transportation:
Transit Services Program Cluster:
Capital Assistance Program for Elderly
Persons and Persons with
Disabilities
Job Access — Reverse Commute
Job Access — Reverse Commute
New Freedom Program
Total Transit Services Program Cluster
12MPO -MPOJC 35,157
20.507 1,101,703
20.507 82,632
20.507 37270
1.221.605
011161F�Wer6t11001 WfaV► =fllrlsfD;
20.516 IA -37- X022 - 371 -12 62,845
20.516 IA -3 7- X017 - 371 -11 62,098
124,943
20.521 IA -57- X001 - 371 -12 24,004
152
235,637
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Total U.S. Department of Transportation 3,561,043
U.S. Department of Energy:
Pass - through program from:
81.041 SEP09 -005 3,600
Direct program:
81.128 379,469
Total U.S. Department of Energy 383,069
U.S. Department of Homeland Security:
Pass - through program from:
Federal
Pass- Through
Iowa Homeland Security and Emergency
CFDA
Entity Identifying
Federal
Grantor/Program
Number
Number
Expenditures
U.S. Department of Transportation: (continued)
Pass - through program from: (continued)
97.036
FEMA -1763 DR -IA
24,699
Iowa Department of Public Safety,
97.039
FEMA -DR- 1763 -0015 01
495,977
Governor's Traffic Safety Bureau:
97.039
DR- 1763 -0137 -01
92,396
Alcohol Impaired Driving
97.039
HMGP -DR- 1854 -0006 01
2,702
Countermeasures Incentive Grants I
20.601
PAP 12 -410, Task 41
S 16,432
Alcohol Impaired Driving
Countermeasures Incentive Grants I
20.601
PAP 11 -410, Task 39
5,693
Assistance to Firefighters Grant
97.044
22,125
Total U.S. Department of Transportation 3,561,043
U.S. Department of Energy:
Pass - through program from:
81.041 SEP09 -005 3,600
Direct program:
81.128 379,469
Total U.S. Department of Energy 383,069
U.S. Department of Homeland Security:
Pass - through program from:
Iowa Homeland Security and Emergency
Management Division:
Disaster Grants — Public Assistance
(Presidentially Declared Disasters)
97.036
FEMA -1763 DR -IA
24,699
Hazard Mitigation Grant
97.039
FEMA -DR- 1763 -0015 01
495,977
Hazard Mitigation Grant
97.039
DR- 1763 -0137 -01
92,396
Hazard Mitigation Grant
97.039
HMGP -DR- 1854 -0006 01
2,702
591,075
Direct program:
Assistance to Firefighters Grant
97.044
10,339
Assistance to Firefighters Grant
97.044
3,940
14,279
Total U.S. Department of Homeland Security 630,053
Total S 22,657,907
See Notes to the Schedule of Expenditures of Federal Awards
153
City of Iowa City, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Note 1 - Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of
Iowa City, Iowa, and is presented on the accrual basis of accounting. The information in this schedule is presented
in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non -
Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in,
or used in the preparation of, the basic financial statements.
Note 2 - Subrecipients
Of the federal expenditures presented in the schedule, the City of Iowa City, Iowa, provided federal awards to
subrecipients as follows:
Federal Amount
CFDA Provided to
Program Title Number Subrecipients
Community Development Block Grants/Entitlement Grants 14.218 $ 2,094,105
Home Investment Partnerships Program 14.239 653,228
Public Safety Partnership and Community Policing Grants 16.710 14,229
Edward Byrne Memorial Justice Assistance Grant Program 16.738 25,407
ARRA — Recovery Act — Edward Byrne Memorial Justice
Assistance Grant (JAG) Program/Grants to States and Territories 16.803 53,728
New Freedom Program 20.521 24,004
154
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
Material weakness identified
Significant deficiency
Noncompliance material to financial statements noted
Federal Awards
Internal control over major programs:
Material weakness identified
Significant deficiency
Type of auditor's report issued on compliance for major programs
Any audit findings disclosed that are required to be reported in
accordance with Circular A- 133, Section .510(a)
Identification of major programs:
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Unqualified
No
None reported
No
No
None reported
Unqualified
No
CFDA Number Name of Federal Program or Cluster
11.307 Economic Adjustment Assistance
14.228 Community Development Block Grants/
State's Program and Non - Entitlement Grants
in Hawaii
14.239 Home Investment Partnerships Program
14.871 Section 8 Housing Choice Vouchers
JAG Cluster
16.738 Edward Byrne Memorial Justice Assistance
Grant Program
16.803 ARRA — Recovery Act — Edward Byrne
Memorial Justice Assistance Grant (JAG)
Program/Grants to States and Territories
16.804 ARRA — Recovery Act — Edward Byrne
Memorial Justice Assistance Grant (JAG)
Program/Grants to Units of Local
Government
81.128 ARRA - Energy Efficiency and Conservation
Block Grant Program (EECBG)
155
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part I: Summary of the Independent Auditor's Results: (continued)
Dollar threshold used to distinguish
between Type A and Type B programs $679,737
Auditee qualified as low -risk auditee No
Part II: Other Findings Related to Required Statutory Reporting:
H -A -12 Certified Budget —Disbursements during the year ended June 30, 2012, did not exceed the amount
budgeted.
H -B -12 Questionable Expenditures —We noted no expenditures that we believe may fail to meet the
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979.
H -C -12 Travel Expense —No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
H -D -12 Business Transactions —Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and Transaction
Business Connection Description Amount
Frank Wagner, member of Historic Preservation
Commission, owner of Wagner Bros LLC
Matt Neumiller, member of Board of
Appeals, owner of Neumiller Electric
Steve Ford, Spouse of Wendy Ford,
Economic Development Coordinator,
Part owner of Confluence
Construction $ 93,279
Electrical Service 49,882
Consulting 21,422
Services
The transactions with Wagner Bros LLC and Neumiller Electric do not appear to represent conflicts of
interest since they were entered into through competitive bidding in accordance with Chapter 362.5(3)d of
the Code of Iowa. The transaction with Confluence does not appear to represent a conflict of interest since
the related party's ownership is less than 5% in accordance with Chapter 362.5(9) of the Code of Iowa.
H -E -12 Bond Coverage — Surety bond coverage of City officials and employees is in accordance with statutory
provisions. The amount of coverage should be reviewed annually to ensure the coverage is adequate for
current operations.
H -F -12 Council Minutes —No transactions were found that we believe should have been approved in the City
Council minutes but were not.
156
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part II: Other Findings Related to Required Statutory Reporting: (continued)
H -G -12 Deposits and Investments —No instances of non - compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were noted.
H -H -12 Revenue Bonds —No instances of non - compliance with the provisions of the City's revenue bond
resolutions were noted.
157
IP10
CITY OF IOWA CITY
QUARTERLY
INVESTMENT REPORT
October 1, 2012
to
December 31, 2012
Finance Department
Prepared by:
Brian Cover
Senior Accountant
OVERVIEW
The City of Iowa City's investment objectives are safety, liquidity and yield. The
primary objective of the City of Iowa City's investment activities is the
preservation of capital and the protection of investment principal. The City's
investment portfolio remains sufficiently liquid to enable the City to meet
operating requirements that cash management procedures anticipate.
In investing public funds, the City's cash management portfolio is designed with
the objective of regularly exceeding the average return on the six month U.S.
Treasury Bill. The Treasury Bill is considered a benchmark for riskless
investment transactions and therefore comprises a minimum standard for the
portfolio's rate of return. The rolling average return on the six -month U.S.
Treasury Bill for the prior 365 days was 0.13% at 12/31/12. The investment
program seeks to achieve returns above this threshold, consistent with risk
limitations and prudent investment principles. The rate of return on the City's
entire portfolio for the quarter was 0.46% which is 33 basis points higher than the
threshold. (See exhibit A)
Investments purchased by the City of Iowa City for the second quarter of this
fiscal year had an average return of 0.29 %. Rates on new investment purchases
in our operating cash portfolio for the second quarter were approximately 1 basis
point lower than investments purchased at this time last year. Municipalities in
Iowa are still having trouble finding financial institutions willing to accept public
funds.
The federal funds rate is the interest rate at which banks lend to each other. In
the December meeting of the Federal Open Market Committee, the decision was
made to keep the target range for the federal funds rate at 0 to 1/4 percent and
currently anticipates that exceptionally low levels for the federal funds rate are
likely to be warranted at least through mid -2015. (See exhibit B)
The quarterly investment report lists investments by fund, by institution, by
maturity date, and investments purchased and redeemed.
New official state interest rates setting the minimum that may be paid by Iowa
depositories on public funds in the 180 to 364 day range during this quarter were
0.05% in October, 0.05% in November, and 0.05% in December 2012.
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CITY OF IOWA CITY
INVESTMENTS ON HAND
DETAIL LISTING BY MATURITY DATE
12/31/2012
INSTITUTION
INVESTMENT
PURCHASE
MATURITY
INVESTMENT
INTEREST
NAME
TYPE
DATE
DATE
AMOUNT
RATE
IOWA PUBLIC AGENCY INVEST TRUST
IPAIT
13- Jun -02
N/A
$
3,000,000.00
VARIABLE
HILLS BANK
MONEY MARKET
30- Mar -10
N/A
$
9,000,000.00
VARIABLE
WELLS FARGO
SAVINGS
20- Apr -10
N/A
$
10,000,000.00
VARIABLE
WELLS FARGO
SAVINGS
20- Apr -10
N/A
$
15,000,000.00
VARIABLE
IPAIT 2007 GO
IPAIT
11- Dec -09
N/A
$
244,455.26
VARIABLE
IPAIT 2008 GO
IPAIT
15- Jul -09
N/A
$
1,895,575.94
VARIABLE
IPAIT 2009 C GO
IPAIT
12- Jun -09
N/A
$
898,264.75
VARIABLE
IPAIT 2010 B GO
IPAIT
12- Aug -10
N/A
$
2,150,337.55
VARIABLE
IPAIT 2011 A GO
IPAIT
08 -Jun -11
N/A
$
3,051,202.57
VARIABLE
IPAIT 2012 A GO
IPAIT
20- Jun -12
N/A
$
6,899,117.61
VARIABLE
AMERICAN BANK & TRUST
CD
12- Dec -08
12- Dec -13
$
6,197,315.00
3.750
MIDWESTONE BANK
CD
12- Dec -08
12- Dec -13
$
2,000,000.00
4.180
UICCU
CD
28- Jun -10
26- Jun -15
$
846,700.00
2.510
UICCU
CD
28- Jun -10
26- Jun -15
$
300,000.00
2.510
MIDWESTONE BANK
CD
19- Jan -12
04- Jan -13
$
1,000,000.00
0.280
TWO RIVERS BANK
CD
19- Jan -12
11- Jan -13
$
1,000,000.00
0.330
MIDWESTONE BANK
CD
19- Jan -12
02- Jan -13
$
1,290,000.00
0.270
WELLS FARGO BANK
CD
27- Feb -12
27- Feb -14
$
2,112,014.00
0.450
WELLS FARGO BANK
CD
27- Feb -12
27- Feb -14
$
450,000.00
0.450
UICCU
CD
9- Mar -12
01- Mar -13
$
2,000,000.00
0.285
MIDWESTONE BANK
CD
9- Mar -12
08- Mar -13
$
2,000,000.00
0.335
CR BANK & TRUST
CD
29- Mar -12
22- Mar -13
$
2,000,000.00
0.340
CR BANK & TRUST
CD
29- Mar -12
28- Mar -13
$
2,000,000.00
0.360
CR BANK & TRUST
CD
29- Mar -12
31- May -13
$
1,000,000.00
0.380
MIDWESTONE BANK
CD
13- Apr -12
15- Mar -13
$
2,000,000.00
0.270
MIDWESTONE BANK
CD
13- Apr -12
05- Apr -13
$
2,000,000.00
0.330
MIDWESTONE BANK
CD
13- Apr -12
12- Apr -13
$
2,000,000.00
0.370
MIDWESTONE BANK
CD
13- Apr -12
31- May -13
$
2,500,000.00
0.415
MIDWESTONE BANK
CD
13- Apr -12
01- Jul -13
$
2,000,000.00
0.460
MIDWESTONE BANK
CD
27- Apr -12
05- Apr -13
$
2,000,000.00
0.260
MIDWESTONE BANK
CD
27- Apr -12
12- Apr -13
$
2,000,000.00
0.280
MIDWESTONE BANK
CD
27- Apr -12
19- Apr -13
$
2,000,000.00
0.300
MIDWESTONE BANK
CD
27- Apr -12
26- Apr -13
$
2,000,000.00
0.320
UICCU
CD
15- May -12
03- May -13
$
2,000,000.00
0.315
UICCU
CD
15- May -12
10- May -13
$
2,000,000.00
0.335
UICCU
CD
15- May -12
31- May -13
$
3,000,000.00
0.355
UICCU
CD
15- May -12
01- Jul -13
$
750,000.00
0.365
MIDWESTONE BANK
CD
29- Jun -12
07- Jun -13
$
2,000,000.00
0.305
MIDWESTONE BANK
CD
29- Jun -12
14- Jun -13
$
2,000,000.00
0.355
MIDWESTONE BANK
CD
29- Jun -12
21- Jun -13
$
2,000,000.00
0.405
UICCU
CD
20- Jul -12
12- Jul -13
$
2,000,000.00
0.396
UICCU
CD
20- Jul -12
05- Jul -13
$
2,000,000.00
0.376
UICCU
CD
20- Jul -12
19- Jul -13
$
2,000,000.00
0.416
MIDWESTONE BANK
CD
24- Aug -12
26- Jul -13
$
2,000,000.00
0.410
MIDWESTONE BANK
CD
24- Aug -12
02- Aug -13
$
1,000,000.00
0.290
MIDWESTONE BANK
CD
24- Aug -12
09- Aug -13
$
2,000,000.00
0.430
MIDWESTONE BANK
CD
24- Aug -12
16- Aug -13
$
1,000,000.00
0.310
CR BANK & TRUST
CD
24- Aug -12
01- Jul -13
$
2,000,000.00
0.280
MIDWESTONE BANK
CD
11- Sep -12
30- Aug -13
$
1,000,000.00
0.300
MIDWESTONE BANK
CD
11- Sep -12
23- Aug -13
$
2,000,000.00
0.270
MIDWESTONE BANK
CD
11- Sep -12
06- Sep -13
$
2,000,000.00
0.330
MIDWESTONE BANK
CD
25- Oct -12
01- Jun -13
$
2,500,000.00
0.250
MIDWESTONE BANK
CD
25- Oct -12
01- Jul -13
$
1,200,000.00
0.260
MIDWESTONE BANK
CD
25- Oct -12
20- Sep -13
$
2,000,000.00
0.270
MIDWESTONE BANK
CD
25- Oct -12
27- Sep -13
$
2,000,000.00
0.270
MIDWESTONE BANK
CD
25- Oct -12
04- Oct -13
$
2,000,000.00
0.300
MIDWESTONE BANK
CD
25- Oct -12
11- Oct -13
$
1,000,000.00
0.350
MIDWESTONE BANK
CD
25- Oct -12
18- Oct -13
$
2,000,000.00
0.350
CITY OF IOWA CITY
INVESTMENTS ON HAND
DETAIL LISTING BY MATURITY DATE
12/31/2012
INSTITUTION
INVESTMENT
PURCHASE
MATURITY
INVESTMENT
INTEREST
NAME
TYPE
DATE
DATE
AMOUNT
RATE
UICCU
CD
16- Nov -12
03- Jun -13
$ 2,500,000.00
0.276
UICCU
CD
16- Nov -12
02- Jan -14
$ 1,000,000.00
0.351
UICCU
CD
16- Nov -12
25- Oct -13
$ 2,000,000.00
0.296
UICCU
CD
16- Nov -12
01- Nov -13
$ 2,000,000.00
0.331
UICCU
CD
16- Nov -12
08- Nov -13
$ 2,000,000.00
0.331
UICCU
CD
16- Nov -12
15- Nov -13
$ 2,000,000.00
0.331
MIDWESTONE BANK
CD
11- Dec -12
27- Nov -13
$ 2,000,000.00
0.265
MIDWESTONE BANK
CD
11- Dec -12
22- Nov -13
$ 2,000,000.00
0.260
MIDWESTONE BANK
CD
11- Dec -12
06- Dec -13
$ 2,000,000.00
0.270
TOTAL $ 157,784,982.68
CITY OF IOWA CITY
INVESTMENT ACTIVITY
FOR THE QUARTER ENDED DECEMBER 31, 2012
INVESTMENTS ON HAND AT 9/30/12
INVESTMENT PURCHASE MATURITY INVESTMENT INTEREST
INSTITUTION TYPE DATE DATE AMOUNT RATE
$ 161,479,903.12
PURCHASES 10/01/12 TO 12/31/12
MIDWESTONE BANK
CD
25- Oct -12
01- Jun -13
$ 2,500,000.00 0.250
MIDWESTONE BANK
CD
25- Oct -12
01- Jul -13
$ 1,200,000.00 0.260
MIDWESTONE BANK
CD
25- Oct -12
20- Sep -13
$ 2,000,000.00 0.270
MIDWESTONE BANK
CD
25- Oct -12
27- Sep -13
$ 2,000,000.00 0.270
MIDWESTONE BANK
CD
25- Oct -12
04- Oct -13
$ 2,000,000.00 0.300
MIDWESTONE BANK
CD
25- Oct -12
11- Oct -13
$ 1,000,000.00 0.350
MIDWESTONE BANK
CD
25- Oct -12
18- Oct -13
$ 2,000,000.00 0.350
UICCU
CD
16- Nov -12
03- Jun -13
$ 2,500,000.00 0.276
UICCU
CD
16- Nov -12
02- Jan -14
$ 1,000,000.00 0.351
UICCU
CD
16- Nov -12
25- Oct -13
$ 2,000,000.00 0.296
UICCU
CD
16- Nov -12
01- Nov -13
$ 2,000,000.00 0.331
UICCU
CD
16- Nov -12
08- Nov -13
$ 2,000,000.00 0.331
UICCU
CD
16- Nov -12
15- Nov -13
$ 2,000,000.00 0.331
MIDWESTONE BANK
CD
11- Dec -12
27- Nov -13
$ 2,000,000.00 0.265
MIDWESTONE BANK
CD
11- Dec -12
22- Nov -13
$ 2,000,000.00 0.260
MIDWESTONE BANK
CD
11- Dec -12
06- Dec -13
$ 2,000,000.00 0.270
TOTAL PURCHASES
$ 30,200,000.00
REDEMPTIONS 10/01/12 TO 12/31/12
IOWA PUBLIC AGENCY INVEST TRUST
IPAIT
12- May -09
N/A
$ (4,000,000.00) VARIABLE
IOWA PUBLIC AGENCY INVEST TRUST
IPAIT
28- Oct -09
N/A
$ (4,000,000.00) VARIABLE
HILLS BANK
MONEY MARKET
30- Mar -10
N/A
$ (290,781.67) VARIABLE
MIDWESTONE BANK
CD
21- Oct -11
19- Oct -12
$ (2,000,000.00) 0.380
MIDWESTONE BANK
CD
21- Oct -11
12- Oct -12
$ (2,000,000.00) 0.350
MIDWESTONE BANK
CD
21- Oct -11
05- Oct -12
$ (2,000,000.00) 0.320
MIDWESTONE BANK
CD
10- Nov -11
26- Oct -12
$ (2,000,000.00) 0.300
TWO RIVERS BANK
CD
10- Nov -11
02- Nov -12
$ (2,000,000.00) 0.350
MIDWESTONE BANK
CD
18- Nov -11
15- Nov -12
$ (2,000,000.00) 0.310
MIDWESTONE BANK
CD
18- Nov -11
09- Nov -12
$ (2,000,000.00) 0.300
MIDWESTONE BANK
CD
15- Dec -11
14- Dec -12
$ (2,000,000.00) 0.310
MIDWESTONE BANK
CD
15- Dec -11
21- Nov -12
$ (2,000,000.00) 0.260
MIDWESTONE BANK
CD
15- Dec -11
30- Nov -12
$ (2,000,000.00) 0.280
MIDWESTONE BANK
CD
15- Dec -11
07- Dec -12
$ (2,000,000.00) 0.290
MIDWESTONE BANK
CD
19- Jan -12
03- Dec -12
$ (1,135,000.00) 0.260
IPAIT 2007 GO BONDS (PARTIAL REDEMPTION)
IPAIT
11- Dec -09
N/A
$ (265,274.13) VARIABLE
IPAIT 2009C GO BONDS (PARTIAL REDEMPTION)
IPAIT
12- Jun -09
N/A
$ (115,205.81) VARIABLE
IPAIT 2010 B GO BONDS (PARTIAL REDEMPTION)
IPAIT
12- Aug -10
N/A
$ (13,248.35) VARIABLE
IPAIT 2011 A GO BONDS (PARTIAL REDEMPTION)
IPAIT
O8- Jun -11
N/A
$ (281,301.99) VARIABLE
IPAIT 2012 A GO BONDS (PARTIAL REDEMPTION)
IPAIT
20- Jun -12
N/A
$ (46,594.90) VARIABLE
IPAIT 2007 GO BONDS (PARTIAL REDEMPTION)
IPAIT
11- Dec -09
N/A
$ (378,151.97) VARIABLE
IPAIT 2009C GO BONDS (PARTIAL REDEMPTION)
IPAIT
12- Jun -09
N/A
$ (175,526.68) VARIABLE
IPAIT 2011 A GO BONDS (PARTIAL REDEMPTION)
IPAIT
O8- Jun -11
N/A
$ (307,988.11) VARIABLE
IPAIT 2012 A GO BONDS (PARTIAL REDEMPTION)
IPAIT
20- Jun -12
N/A
$ (885,846.83) VARIABLE
TOTAL REDEMPTIONS
$ (33,894,920.44)
INVESTMENTS ON HAND AT 12/31/12
$ 157,784,982.68
CITY OF IOWA CITY
INVESTMENTS ON HAND
SUMMARY BY FUND
FUND
TYPE
ALL OPERATING FUNDS
GENERAL OBLIGATION BOND FUND
BOND RESERVE FUND
TOTAL
CITY OF IOWA CITY
INVESTMENTS ON HAND
LISTING BY INSTITUTION
12/31/12 12/31/11
INVESTMENT INVESTMENT
AMOUNT AMOUNT
$ 126,138,953.68 $ 142,170,236.02
$ 11,500,000.00 $ 22,122,057.94
$ 20,146,029.00 $ 14,228,804.00
$ 157,784,982.68 $ 178,521,097.96
TOTAL $ 157,784,982.68 $ 178,521,097.96
9/30/12
9/30/11
INSTITUTION
INVESTMENT
INVESTMENT
DEPOSITORY
NAME
AMOUNT
AMOUNT
LIMIT
BANK OF THE WEST
$
-
$
75,000,000.00
BANKER'S TRUST
$
-
$
10,822,057.94
N/A
CEDAR RAPIDS BANK & TRUST
$
7,000,000.00
$
2,000,000.00
$
20,000,000.00
FARMERS & MERCHANTS SAVINGS BANK
$
-
$
-
$
15,000,000.00
FIRST AMERICAN BANK
$
-
$
-
$
35,000,000.00
FREEDOM SECURITY BANK
$
-
$
-
$
15,000,000.00
HILLS BANK & TRUST
$
9,000,000.00
$
9,290,781.67
$
25,000,000.00
IOWA PUBLIC AGENCY INVESTMENT TRUST
$
18,138,953.68
$
54,564,243.35
N/A
LIBERTY BANK
$
-
$
-
$
25,000,000.00
MIDWESTONE BANK
$
60,490,000.00
$
55,800,000.00
$
75,000,000.00
TWO RIVERS BANK
$
7,197,315.00
$
8,197,315.00
$
10,000,000.00
U OF I COMM CREDIT UNION
$
28,396,700.00
$
11,146,700.00
$
50,000,000.00
US BANK
$
-
$
-
$
65,000,000.00
US TREASURY NOTES AND AGENCIES
$
-
$
-
N/A
WELLS FARGO BANK
$
27,562,014.00
$
26,700,000.00
$
50,000,000.00
WEST BANK
$
-
$
-
$
35,000,000.00
TOTAL $ 157,784,982.68 $ 178,521,097.96
g
P
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
Business Name Occupancy
(occupancy loads last updated Oct 2008)
= University of Iowa
Monthlv Totals
Bar
Checks Under2l PAULA
Prev 12 Month Totals
Bar
Checks Under2l PAULA
Under 21
Ratio Ratio
(Prev 12 Mo) (Prev 12 Mo)
2 Dogs Pub 120
0
0
0
3
0
0
0
0
Airliner 223
2
0
0
113
6
22
0.0530973
0.1946903
Airliner 223
3
0
0
113
6
22
0.0530973
0.1946903
American Legion 140
0
0
0
5
0
0
0
0
Atlas World Grill 165
0
0
0
1
0
0
0
0
Baroncini^
0
0
0
Basta 176
0
0
0
1
0
0
0
0
Blackstone- 297
0
0
0
3
0
0
0
0
Blue Moose— 436
6
0
0
154
28
3
0.1818182
0.0194805
Blue Moose— 436
3
0
0
154
28
3
0.1818182
0.0194805
Bluebird Diner 82
0
0
0
Bob's Your Uncle 260
0
0
0 '-
Bo -James 200
8
3
0
99
7
1
0.0707071
0.0101010
Bo -James 200
3
0
0
99
7
1
0.0707071
0.0101010
Bread Garden Market & Bakery
0
0
0
Brix
0
0
0
Brothers Bar & Grill, [It's] 556
13
0
4
382
142
44
0.3717277
0.1151832
Brothers Bar & Grill, [It's] 556
14
1
0
382
142
44
0.3717277
0.1151832
Brown Bottle, [The]— 289
0
0
0
3
0
0
0
0
Buffalo Wild Wings Grill & Bar— 189
1
0
0
6
0
0
0
0
Cactus Mexican Grill
0
0
0
Caliente Night Club 498
5
0
0
36
3
1
0.0833333
0.0277778
Carl & Ernie's Pub & Grill 92
2
0
0
21
0
0
0
0
Carlos O'Kelly's— 299
0
0
0
Chili Yummy Yummy Chili
0
0
0
17
6
0
0.3529412
0
Chipotle Mexican Grill 119
0
0
0
Wednesday, January 16, 2013 Page 1 of 6
V
E
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
Business Name Occupancy
(occupancy loads last updated Oct 2008)
= University of Iowa
Monthly Totals
Bar
Checks Under2l PAULA
Prev 12 Month Totals
Bar
Checks Under2l PAULA
U�#er 21 PAULA
Ratio Ratio
(Prev 12 Mo) (Prev 12 Mo)
Clarion Highlander Hotel
0
0
0
Clinton St Social Club
1
0
0
10
0
0
0
0
Clinton St Social Club
2
0
0
10
0
0
0
0
Club Car, [The] 56
1
0
0
1
0
0
0
0
Coach's Corner 160
1
0
0
13
0
0
0
0
Colonial Lanes- 502
0
`' 0
0
2
0'
0
0
0
Dave's Foxhead Tavern 87
1
0
0
2
0
0
0
0
DC's 120
7
2
1
212
61
13
0.2877358
0.0613208
DC's 120
16
1
1
212
61
13
0.2877358
0.0613208
Deadwood, [The] 218
3
0
0
55
0
0
0
0
Devotay- 45
0
0
0
Donnelly's Pub 49
5
0
0
42'
0
0
0
0
Donnelly's Pub 49
1
0
0
42
0
0
0
0
Dublin Underground, [The] 57
8
0
0
56
1
0
0.0178571
0
Dublin Underground, [The] 57
1
0
0
56
1
0
0.0178571
0
Eagle's, [Fraternal Order of] 315
0
0
0
1
0
0
0
0
El Banditos 25
0
0
0
El Cactus Mexican Cuisine
0
0
0
El Dorado Mexican Restaurant 104
0
0
0
El Ranchero Mexican Restaurant 161
0
0
0
Elks #590, [BPO] 205
0
0
0
Englert Theatre- 838
0
0'
0
Fieldhouse 178
8
2
0
183
41
7
0.2240437
0.0382514
IFieldhouse 178
7
1
0
183
41
7
0.2240437
0.0382514
First Avenue Club- 280
0
0
0
(Formosa Asian Cuisine- 149
0
0
0
Wednesday, January 16, 2013 Page 2 of 6
C
C
C
C
C
C
C
C
C
E
C
C
Fv
E
C
C
C
C
C
C
E
E
C
C
C
C
C
Business Name Occupancy
(occupancy loads last updated Oct 2008)
= University of Iowa
Monthly Totals
Bar
Checks Under2l PAULA
Prev 12 Month Totals
Bar
Checks Under21 PAULA
U(Wer 21 c'-.3 PAULA
Ratio Ratio
(Prev 12 Mo) (Prev 12 Mo)
Gabes— 261
1
0
0
39
5
2
0.1282051
0.0512821
Gabes— 261
1
0
0
39
5
2
0.1282051
0.0512821
George's Buffet 75
1
0
0
5
0
0
0
0
Givanni's— 158
0
0
0
Godfather's Pizza— 170
0
0
0
Graze— 49
0
0
0
2
0
0
0
0
Grizzly's South Side Pub 265
0
0
0
8
1
0
0.125
0
Hilltop Lounge, [The] 90
0
0
0
1
0
0
0
0
Howling Dogs Bistro
0
0
0
IC Ugly's 72
1
0
0
6
0
0
0
0
India Cafe 100
0
0
0
Iron Hawk—
2
0
0
23
2
8
0.0869565
0.3478261
Iron Hawk—
3
0
7
23
2
8
0.0869565
0.3478261
Jimmy Jack's Rib Shack 71
0
0
0
Jobsite 120
0
0
0
10
0
0
0
0
Joe's Place 281
8
1
0
107
3
1
0.0280374
0.0093458
Joe's Place 281
5
0
0
107
3
1
0.0280374
0.0093458
Joseph's Steak House- 226
0
0
0
2
0
0
0
0
Linn Street Cafe 80
0
0
0
Los Portales 161
0
0
0
Martini's 200
8
0
0
218
48
3
0.2201835
0.0137615
Martini's 200
9
0
0
218
48
3
0.2201835
0.0137615
Masala 46
0
0
0
Mekong Restaurant— 89
0
0
0 -
Micky's— 98
11
0
0
57
0
2
0
0.0350877
(Mill Restaurant, [The]— 325
1
0'
0
30
2
0
0.0666667
0
Wednesday, January 16, 2013 Page 3 of 6
E
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
F
E
E
C
C
C
C
C
Business Name Occupancy
(occupancy loads last updated Oct 2008)
= University of Iowa
Monthly Totals
Bar
Checks Under2l PAULA
Prev 12 Month Totals
Bar
Checks Under2l PAULA
Under2l PAULA
Ratio Ratio
(Prev 12 Mo) (Prev 12 Mo)
Moose, [Loyal Order of] 476
0
0
0
1
0
0
0
0
Motley Cow Cafe— 82
0
0
0
Noodles & Company—
0
0
0
Okoboji Grill— 222
0'
0
0
Old Capitol Brew Works 294
1
0
0
11
0
0
0
0
One- Twenty -Six 105
0
0
0
3
0
0
0
0
Orchard Green Restaurant— 200
0
0
0
1
0
0
0
0
Oyama Sushi Japanese Restaurant 87
0
0
0
Pagliai's Pizza— 113
0
0
0
Panchero's (Clinton St)— 62
0
0
0
2
0
0
0
0
Panchero's Grill (Riverside Dr)— 95
0
0
0
Pints 180
9
0
0
208
40
7
0.1923077
0.0336538
Pints 180
7
1
0
208
40
7
0.1923077
0.0336538
Pit Smokehouse— 40
0
0
0
Pizza Hut— 116
0
0
0
Players 114
0
0
0
3
4
0
1.3333333
0
Quinton's Bar & Deli 149
1
0
0
27
1
0
0.0370370
0
Quinton's Bar & Deli 149
2
0
0
27
1
0
0.0370370
0
Rice Village
0
0
0
Ridge Pub
0
0
0
Riverside Theatre— 118
0
0
0
Saloon- 120
1
0
0
20
0
0
0
0
Sam's Pizza— 174
1
0
0
8
1
0
0.125
0
Sanctuary Restaurant, [The] 132
0
0
0
2
0
0
0
0
Shakespeare's 90
0
0
0
3
0
0
0
0
(Sheraton
0
0
0
Wednesday, January 16, 2013 Page 4 of 6
kv
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
Business Name Occupancy
(occupancy loads last updated Oct 2008)
= University of Iowa
Monthlv Totals
Bar Under2l PAULA
Checks
Prev 12 Month Totals
Bar Under2l PAULA
Checks
Under 21 PAULA
Ratio Ratio
(Prev 12 Mo) (Prev 12 Mo)
Short's Burger & Shine- 56
1
0
0
24
0
2
0
0.0833333
Short's Burger Eastside
0
0
0
Sports Column 400
11
3
2
195
48
19
0.2461538
0.0974359
Sports Column 400
3
0
0
195
48
19
0.2461538
0.0974359
Studio 13 206
1
0
0
72
10
1
0.1388889
0.0138889
Studio 13 206
7
0
0
72
10
1
0.1388889
0.0138889
Summit. [The] 736
6
0
0
232
57
21
0.2456897
0.0905172
Summit. [The] 736
4
0
0
232
57
21
0.2456897
0.0905172
Sushi Popo 84
0
0
0
Szechuan House
0
0
0
Takanami Restaurant- 148
0
0
0
Taqueria Acapulco
0
0
0
TCB 250
8
0
0
142
9
1
0.0633803
0.0070423
TCB 250
4
0
0
142
9
1
0.0633803
0.0070423
Thai Flavors 60
0
0
0
Thai Spice 91
0
0
0
Times Club @ Prairie Lights 60
0
0
0
Trumpet Blossom Cafe 94
0
0
0
1
0
0
0
0
Union Bar 854
10
0
1
291
88
32
0.3024055
0.1099656
Union Bar 854
7
4
0
291
88
32
0.3024055
0.1099656
VFW Post #3949 197
0
0
0
Vine Tavern, [The] 170
4
0
0
69
8
8
0.1159420
0.1159420
Vine Tavern, [The] 170
4
0
0
69
8
8
0.1159420
0.1159420
Wig & Pen Pizza Pub- 154
1
0
0
1
0
0
0
0
Yacht Club, [Iowa City]- 206
2
0
0
90
8
1
0.0888889
0.0111111
Yacht Club, [Iowa City]- 206
2
0
0
90
8
1
0.0888889
0.0111111
Wednesday, January 16, 2013 Page 5 of 6
Business Name Occupancy
Monthlv Totals
Prev 12 Month Totals
rUiideOZ1
(occupancy loads last updated Oct 2008)
0= University of Iowa
Bar
Checks Under2l PAULA
Bar
Checks Under2l PAULA
Ratim
(Prev iift o)
❑Yen Ching
0
0
0
❑Z'Mariks Noodle House 47
0
0
0
270
19
16
6299
1243
1 393
0.1973329
Totals
Off Premise
Grand Totals
* includes outdoor seating area
exception to 21 ordinance
Sao owl
16
`PAULA
Ratio
(Prev 12 Mo)
0.0623909
0 1 0 1 0 1 0
393
Wednesday, January 16, 2013 Page 6 of 6
From Asst, to the City Manager 0�
IP12
WENNNN�
What makes coworking work?
January 11, 2013 by Paige Yowell
Innovation Cafe in Kansas City, Mo. is one of more than a dozen coworking spaces on the Silicon
Prairie.
For years, startup founders and entrepreneurs across the Silicon Prairie have sought to get out of
basements and coffee shops and make the move to professional workspaces. Thus, a startup culture
staple — coworking — emerged.
Coworking spaces in and nearby the region's flagship cities of Omaha, Des Moines and Kansas City
have been on the rise in the past couple of years, with desks to lease — at our last count — at 15
coworking spaces in a dozen cities.
While some coworking spaces across the region are flourishing, a few have closed in the past year.
The different outcomes beg the question: What makes coworking work?
Build it, and they will come?
According to many coworking founders, the "Build it and they will come" attitude doesn't necessarily
work.
(left), founder of Hello Holiday and Princess Lasertron, opened
Omaha's first coworking space, CAMP Coworking, in June 2010. Less than two years later,
she closed the space due to a combination of issues, including finances and a lack of tenants.
"The biggest pitfall I had with CAMP was that the space came before the community," Hunt said. "I
tried to build a strong network of support around the few core tenants I started with. As is normal for
a coworking space, they all eventually moved on, outgrew the space, found new gigs and moved into
other offices, et cetera, and I wasn't able to grow the membership roster beyond that."
"Growing that community of people who not only needed a fun culture to work but needed physical
space was my biggest challenge," she added.
Alex Hillman, founder of Independents Hall (aka Indy Hall) in Philadelphia and a consultant for
coworking space owners, agreed that community is the key when it comes to a successful coworking
space.
"The number one trap that I see is the idea that many coworking spaces can skip over the community,
or assume that by providing a place that it'll magically happen on it's own," Hillman (right)
said. "Unfortunately, there aren't 'community elves' who are looking for new coworking spaces to
make communities in — it's an intentional process. Counterintuitively, it's even harder to build
community once you've got an empty space because now you're doing the community building
equivalent of food shopping on an eXnpty stomach."
Hillman now offers the "Community Builder Masterclass" for those interested in coworking and
community building. He has also led the Global Coworking Community online since 2006.
Founders of coworking spaces that remain open also cited the people who make up the coworking
community as a core component of their success.
Jordan Running and Sheila Samuelson, who founded Busy Coworking in Iowa City in April, have
found that simply subleasing space is not necessarily what coworking is all about.
"The business is yours but the space belongs to your members," Running said. "If they don't have a
sense of ownership of the space and investment in the community then you're not running a
coworking space, you're just renting desks."
Coworking: A business model
Less than two years after opening CAMP Coworking (above), Megan Hunt closed the space without
ever recording a profitable month.
While community is an important factor of successful coworking spaces, many founders and owners
noted that it's a business venture, and needs to be treated as such.
Hillman of Indy Hall said it's the second most common trap coworking founders fall into: They forget
coworking is a business.
"The number two trap is forgetting that it needs to be a sustainable business, but one that doesn't
consume the community as they both grow. The two need to be complementary and symbiotic, not
parasitic," Hillman said. "Too many communities either place burden on the business, or the business
ends up placing burden on the community members. Balance, as always, is the correct answer."
One of the reasons CAMP was forced to close, according to Hunt, was the fact that she was funding
the space out of pocket.
"Unfortunately, although I tried many different revenue models to keep the space open, CAMP never
had a profitable month in the 22 months we were open," Hunt said. "It ultimately closed because I
couldn't sustain it. I was losing my passion for community building because my bank account was in
the red month after month and it was preventing me from having a stable life."
Hunt noted there were things she could have done — like use a crowdfanding site, find a good mentor
to refine her business plan or drop the rates — but when the time came that she had the chance to get
out of the lease, she jumped at it.
"I just had to take the opportunity. It would have been foolish not to," Hunt said.
Hunt, Shane Jones (left), who now runs the Kansas City Commons in
Overland Park, Kan., said the business model of the space has morphed over time since Andrew
Stanley founded it.
"When we first opened we rented desks by the day, 10 bucks a day, all the toner and coffee you could
burn," Jones (left) said. "We (now) have a minimum of 150 a month for a private desk."
Jones said it's also important for spaces to maintain vacant space in order to attract tenants.
"You're gonna have to have some vacant space at all times otherwise you're not going to be appealing
to those companies who want to grow," he said.
Jason Teeman, who started Innovation Cafe in Kansas City, Mo. in 2011, said one major part of
owning a coworking space is marketing it.
"I feel that owning a coworking space, you really have to have an identity," he said. "You must know
your market you are targeting and how you will target them."
Teeman said he also believes in low prices.
"Many of the people that would use a coffee shop for work do not have the money to afford long-
term commercial leasing," he said.
Alexander Grgurich, former director of Foundry Coworking in Des Moines, said he decided to close
the space last year for a number of reasons, one being that it wasn't creating any benefit economically
and he wasn't prepared to devote the amount of time necessary to make it sustainable. However,
Grgurich said there were things he could have done to keep the space open.
"I don't think the people like myself or others are afraid of work," he said. "But it's a very different
type of work, a whole different skill set. If you're not ready to be marketing your space all the time
and taking time for a lot of the administrative tasks, then yeah, it's gonna be tough to really blow it up
and make it."
Office sharing: A new kind of coworking
As laid out by many founders and directors, running a coworking environment isn't as simple as
subleasing space. However, some startups are taking on a new method of informal coworking by
doing just that — leasing their vacant office space to friends.
Dan Ship ton (left), founder of BitMethod and Change, currently rents out space to a few startups,
including Hatchlings.
Shipton, who ran Impromptu Studio coworking space in Des Moines from 2008 -2010, said the
current setup isn't much different except that BitMethod leases spaces to teams and startups rather
than individuals.
"It all sort of happened after I shut down Impromptu Studio," Shipton said. "We were moving into a
new office and a few of our more established workers moved with us. They all moved in as
individuals from each company, but as they grew and hired more people, they took over and rented
our extra offices."
The companies working out of BitMethod's office share a kitchen, internet access and conference
rooms, but are sectioned off into their own spaces.
"So far, it has worked really well. We've built an office that allows us to grow, but can still feed off
everyone else's energy and expertise," he said. "The only real issue we've run into is companies
outgrowing our space and needing to move elsewhere. But really, this isn't much of an issue
considering growth is what we want to see from our office mates."
Grgurich (right) said he thinks Shipton's is a more feasible method of coworking, rather than renting
a space to sublease it.
"The better way to go about it is through having an office and if you have extra space rent it out. Then
it's almost like you're the anchor tenant... Then there's not so much pressure, where people feel like,
'If I leave here this place is going to close up.' It makes for a lot easier work environment," Grgurich
said.
He added that another thing that seems to be taking shape in Des Moines is the fact that space in the
city is cheap enough that startups can aggregate in one building rather than one office.
"I think one thing people found out is you could go downtown to the Midland building and find a
space with a couple hundred square feet," he said. "Instead of sharing your office with people you're
sharing a building with people."
Grgurich said he now shares an office with his business partner, but sometimes misses the flow of
new people that coworking provided.
"You miss so many people flowing in and out, meeting lots of random new people and becoming
friends with them. That is kind of unfortunate that we don't have that anymore," he said.
The startup community in Des Moines, however, seems to be thriving despite the lack of formal
coworking spaces, Grgurich said.
"I think that's okay and I think the community is still thriving without them for sure."
Credits: Innovation Cafe photo from Flicks Hunt photo courtesy of Hunt. Hillman photo from
dangerouslvawesome.com. Photo of Jones from thinkNekansascity.com. Shipton photo from
Linkedln. Photo of Grgurich from Twitter.
Roses and Thistles: The start of the 85th General Assembly I The Des Moines Register I d... Page 1 of 1
From Adm. Asst. to the City Manager
Roses and Thistles: The start of the 85th General Assembly IP13
Written by the Register's editorial staff
Jan. 16 desmoinesregister.com
A rose to the newly elected and re- elected members of the Iowa General Assembly who convene at
the Statehouse on Monday. They leave behind families and jobs for the better part each week over
the next three months to set public policy for the people of Iowa. They deserve our gratitude. This
year's Legislature includes 25 women elected to the House and 10 women elected to the Senate,
which the Cedar Rapids Gazette's Rod Boshart reports ties the record for female legislators set in
2009. What's more, women will hold key leadership positions: Sen. Pam Jochum, D- Dubuque, will
preside as Senate president, and Rep. Linda Upmeyer, R -Clear Lake, was again elected House
majority leader. Next step: Breaking Iowa's record of consistently sending an all -male delegation to
Congress.
A rose to city leaders in Iowa City, Coralville and North Liberty for considering a non - competition
pact among the three cities. It's clearly needed. Feelings are still bruised in Iowa City after the city
of Coralville dangled fat financial incentives to lure Von Maur to Coralville's new Iowa River
Landing district. Von Maur subsequently closed its Iowa City store. Many communities have
adopted such anti - raiding policies, including the Des Moines metropolitan area and Mason City -
Clear Lake. It makes little sense to use taxpayers' money to get businesses to move from one city to
another within the same market area.
A thistle to Democrats in Congress who oppose a baby step toward immigration reform. A bill has
twice passed the House that would increase the number of work visas for graduates in much needed
fields of science, technology, engineering and math (STEM). House Republicans have
overwhelming favored the legislation, but it's DOA in the Senate. Democrats — including Iowa's
Bruce Braley and Dave Loebsack — voted against the bill in the House because the increase in
visas for technical jobs would be offset by a decrease in the number of work visas allocated to other
immigrants. The bill is not perfect, but it would be a step in the right direction. It is insane for
taxpayers to subsidize the education of foreign students at U.S. colleges only to send graduates
abroad to work for competitors. Comprehensive immigration reform must include a net increase in
the immigration cap, but we'll never get there without some give by both parties.
http:// www .desmoinesregister.com/article/ 20130113 /OPINIONO3 /301130037 /1110 /opinio... 1/17/2013
IP14
Homeland Security & Emergency Management Agency
*�F Johnson County, Iowa.
EMERGENCY 4529 Melrose Avenue,
�MWGENENT Iowa City, IA. 52246
JOHNSONCOUNTY PH: (319) 356 -6761
FX: (319) 338 -0028
E -mail: dave.wilsongjecc- ema.org
Press Release
1/16/2013
Topic: Outdoor Siren Test for Noon this Friday 1/18/2013 in Johnson County, Iowa.
The Harris Radio vendor technicians will be in town performing upgrades to the activation system of the Johnson
County outdoor warning system this Friday over the noon hour.
Residents in Johnson County can expect to hear the outdoor sirens activate twice over the noon hour on Friday
1/18/2013 each time for one minute or less.
The testing is a required part of the upgrade to the countywide radio system software and will allow the technitions to
verify everything is operational following the software upgrades.
Questions related to this press release may be directed to:
Dave C Wilson, Emergency Management Coordinator
Johnson County Emergency Management Agency at 319 - 356 -6761
Dave C Wilson — Coordinator