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HomeMy WebLinkAbout1989-01-10 Info PacketCity of Iowa City MEMORANDUM Date: January 5, 1989 To: City Council From: City Manager Re: Kegger Ordinance In order to proceed with further community discussion, primarily based upon the diversity of interest that has been generated in this issue, it is suggested that an ad hoc committee of community representatives be created to discuss this matter. Attached is a list of various community agencies and institutions that I believe should be represented on this committee. With the creation of the committee, it would be anticipated that the City Council will provide them with a basic "charge to the community" and allow them to discuss and debate the Kegger Ordinance and related policies. I would suggest a rather stringent timetable in order to provide you with the information to further your deliberations. Also, it may be helpful if the committee would provide a small budget whereby they may choose to hire a facilitator to assist them in their discussions. There will be a number of City representatives on this committee, and I would suggest that the Assistant City Manager would serve as the staff to the committee and provide general coordination of its activities as well as being a participant in the discussions. This matter will be scheduled for discussion at your informal meeting of Monday, January 9, so that I may receive your direction as to how you wish to proceed. SJA/sp/PC-3 Attachment �,s AD HOC COMMITTEE REPRESENTATIVES University Administrative staff Representatives of Sorority/Fraternity Council Iowa City Police Legal staff Local distributor of alcoholic beverages SABRE - Retail establishments Apartment Owner's Association Other interested citizens as appropriate 4S5 City of Iowa City MEMORANDUM Date: January 6, 1989 To: City Council From: City Manager Re: Benton Street Bridge Jeff Davidson was recently informed by the Federal Highway Administration in Ames that they concur with the general conclusions of our most recent reports, that is the existing bridge structure needs to be removed. The FHWA will be asking the Advisory Council on Historic Preservation for their concurrence as well as recommendations for documenting the old structure prior to demolition. We continue to progress slowly but surely. SJA/sp/PC-3 City of Iowa City MEMORANDUM Date: January 5, 1989 To: City Council From: City Manager Re: Budget Schedule We are about to begin preparing a schedule for City Council review of the FY90 budget proposals. Please mark your calendars for Monday, January 16, at 6:30 PM for the first Council budget work session. At that time you can consider future work sessions. At this time we will be recommending that the formal budget public hearing be held on February 21. tp2-3 cc: Rosemary Vitosh Terry Kimble 7 t City of Iowa city MEMORANDUM Date: January 3, 1989 To: City Council From: City Manager Re: Meeting with Area State Legislators We have been unable to confirm a date whereby our area state legislators can convene collectively to discuss pertinent state issues. We have drafted the legislative information for the Mayor's signature and it will be transmitted to the legislators. I suspect that we may be able to schedule a meeting sometime later in January after the legislature has convened for its 1989 session. We will keep you advised. bj/pc2 A&P( -(1 L*�- - City of Iowa City MEMORANDUM DATE: January 3, 1989 TO: City Council FROM: City Manager RE: Pending Development Issues Board of Adjustment items: An application submitted by S&M Partners - John Moreland, Jr., to permit dwelling units above the ground floor of a principal use located in the CC -2 zone at 1476 First Avenue. An application submitted by Hodge Construction on behalf of Lepic- Kroeger Trust Account to permit dwelling units above the ground floor of a principal use located in the CC -2 zone at 711 South Gilbert Street. An application submitted by the University of Iowa Community Credit Union to permit a drive-in facility associated with a Credit Union branch office proposed on property located on the southwest corner of Muscatine Avenue and William Street (2525 Muscatine Avenue). An application submitted by the River City Housing Collective, Inc., to establish a rooming house on property located in the RNC -20 zone at 802 East Washington Street. Jam— T I �"l:,i•'ieb CITY OF IOWA CITY January 6, 1989 The Honorable David R. Nagle House of Representatives 214 Cannon House Office Bldg. Washington, D.C. 20515 Dear Dave: As we discussed in our recent meeting, I expressed to you my concerns over Senate Bill 2773 - Waste Minimization and Control Act of 1988. While the goals and general objectives of the act are commendable, there appear to be many policy implications which I also feel will have long-term legisla- tive ramifications. For example, I have taken the liberty of copying Title III - Waste Reduction and Recycling, to demonstrate to you the problem with the goals that are established. You will note in point two that there is a national goal of 25% reduction in municipal solid waste by way of recycling within four years of the date of the act. Additionally, a 10% reduction in solid waste needs to occur within four years. While these are worthy goals, there are several pertinent issues that I do not believe are adequately addressed, that being: 1) 10% of what? 2) a 25% recycling goal measured against what fixed base. As you are aware, Iowa City is a growing community and we have undertaken very deliberate economic development initiatives to attract new businesses and industries as well as families to our community. With these efforts increases in the total solid waste generated will occur and thereby the establishment of waste reduction goals needs to be measured against national priorities as well as economic development goals. I do not believe the Administrator of the EPA will have the ability to coordinate both economic development and waste reduction policies and thereby further legislative attention will be necessary if a local government is to satisfy these goals. CI%It CF\TIR .In I1.T N1,IIIVGTOS iTRFiT • ION'\ CITY. 10%%k i ;.J.' 1. ?v Representative David R. Nagle January 6, 1989 Page 2 Hopefully, you and other members of Congress will recognize that the establishment of goals through Congressional action, while commendable, cannot be fully accomplished without the cooperation as well as the general governmental/financial support of a municipality. Your thoughts on these issues will be helpful as the City begins to undertake expanded efforts in the area of waste reduction and recycling. Sincerely, lgta� tephen J. Atkins City Manager cc: City Council Chuck Schmadeke bj/pc2 70 51 1 1981 and 1982, and $100,000,000 from the 'Waste Minimi - 2 zation Revenue Act of 1988' for each of the fiscal years 1989 3 through 1991 to carry out this section.". 4 TITLE III—WASTE REDUCTION AND RECYCLING 5 ACT OF 1988 6 SEC. SOI. WASTE REDUCTION AND RECYCLING GOALS. 7 (a) Section 5001 of the Solid Waste Disposal Act is 8 amended to read sa follows: 9 "(a) WASTE REDUCTION AND RECYCLING GOALS. - 10 The Administrator shall - 11 "(1) establish a national performance efficiency 12 standard for industrial waste generators in SIC's 20- 13 39, requiring within ten years that total hazardous re - 14 siduals including emissions, effluents, spills and man - 15 aged wastes will not exceed 5 per centum of produc- 16 tion throughput; 17 14(2) establish a national goal of 25 per centum 18 municipal -solid waste recycling within four years, 50 19 per centum within ten years where recycling consti- 20 Lutes least cost disposal, and 10 per centum municipal 21 solid waste reduction within four years; 22 "(3) establish responsibility for waste reduction 23 and recycling within the Environmental Protection 24 Agency to provide outreach and technical assistance to 25 the industrial community and States on waste reduc- 9 9773 I& 7'O City of Iowa City MEMORANDUM Date: January 6, 1989 To: City Council r� From: Rosemary Vitosh, Director of Financial vLU_)�_, Re: Comprehensive Annual Financial Report I hereby submit to you the City's Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1988. This report includes Combined Statements (summary statements) and basic financial statements for each individual fund and account group prepared in conformity with generally accepted accounting principles. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. These financial statements do differ from those used for budget preparations. The City maintains its daily accounting records on a modified cash basis and converts those records to the accrual or modified basis, as necessary, in order to prepare the annual financial statements in accordance with generally accepted accounting principles. The budget is prepared on a modified cash basis which allows for the monitoring of transactions throughout the fiscal year. The transmittal letter on page seven discusses comparative summaries of revenues and expenditures for FY88 and FY87, in addition to highlighting financial matters. The auditor's opinion appears on page 19. The summary financial statements begin on page 22 and individual fund statements begin on page 75. The Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Enterprise Funds, on pages 92-93, provides a comprehensive summary of the results of Enterprise Funds operations. Please note that all but two of the seven funds experienced a net income in FY1988. The loss in both Housing Authority and Mass Transportation is due to depreciation expense. The Notes to the Financial Statements begin on page 39 and provide a summary of significant accounting policies and other disclosures, required for a fair presentation of the basic financial statement. The Statistical Section starts on page 131 and includes various statistics, many in a ten year comparative format. The Compliance Section (pages 155-172) provides reports which meet specific audit requirements of the State and Federal governments. The auditors' findings along with the City's response to their findings are an integral part of the internal control letters included in this section. 71 Iowa City has been awarded a Certificate of Achievement for Excellence in Financial Reporting for its comprehensive financial report for the past three consecutive fiscal years. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to meet the Certificate of Achievement Program requirements and we have submitted it to the Government Finance Officers Association to determine its eligibility for another certificate. This year we have bound a copy of the Management Letter into the back of the Financial Reports given to the City Council (the pages are not numbered following page 172). This letter is addressed to the City Manager and includes the auditors' recommendations to management on 1) improvements which could be made to procedures or functions, and 2) required information for the State of Iowa. The letter this year deals with three Electronic Data Processing Controls and identifies recommendations. These are being reviewed by City staff and two of the three will be addressed as the Civic Center Building Project progresses. Peat Marwick Main and Co. did its first audit of the City of Iowa City this year. Representatives from their firm will be present at your informal meeting on January 9, 1989, to further discuss this financial report and the audit with you. RV/sp/PC-3 7/ COMPREHENSIVE ANNUAL FINANCIAL REPORT w CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 1988 PREPARED BY: DEPARTMENT OF FINANCE ROSEMARY VITOSH, DIRECTOR CITY OF IOWA CITY, IOWA NOVEMBER 1988 7/ CITY OF IOWA CITY, IOWA Table of Contents June 30, 1988 Page INTRODUCTORY SECTION Table of contents. . . . . . . . . . . . . . . . . . . . . . . . 1 Listing of city officials. . . . . . . . . . . . . . . . q Organization chart . . . . . . . . . . . . . . . . . . . . . . . . . 5 Letter of transmittal. , , , , . , 7 Government Finance Officer's Association Certificate of Achievement for Excellence in Financial Reporting. . . . . . . . . 17 FINANCIAL SECTION Independent auditors' report . . . . . . . . . . . . . . . . . . . . 19 — GENERAL PURPOSE FINANCIAL STATEMENTS Combined balance sheet, all fund types and account groups. . . 22 Combined statement of revenue, expenditures and changes in fund balances, all governmental fund types and expendable trust funds. . . . . 28 Combined statement of revenue, expenditures and changes in fund balances, non-GAAP basis - budget and actual, all budgeted funds . . . . . . . . . . . 30 Combined statement of revenue, expenses and changes in retained earnings/fund balances, all proprietary fund types and similar trust funds. , . , , , , , , gq Combined statement of changes in financial position, all proprietary fund types and similar trust funds . . . . . . . 36 Notes to financial statements. . . . . . . . . . . . . . . . . . . 39 _. SUPPLEMENTARY INFORMATION Special Revenue Funds Combining balance sheet. . . . . . . . 77 Combining statement of revenue, expenditures and changes in fund balances . . 78 Schedule of revenue, expenditures and changes in fund balance, non-GAAP basis - budget and actual, all budgeted special revenue funds . . . . . , . . . 80 Capital Projects Funds Combining balance sheet. . . . . . . . 87 Combining statement of revenue, expenditures and changes in fund balances . . . . . . . . . . , . 88 Enterprise Funds Combining balance sheet. . . . . . , . . go Combining statement of revenue, expenses and changes in retained earnings . . . . . . , . . . . . . . 92 Combining statement of changes in financial position 94 Schedule of revenues, expenditures and changes in fund balances, non-GAAP basis - budget and actual, all budgeted enterprise funds. . . . . . . . . . . . . . . . . 96 CITY OF IOWA CITY, IOWA Table of Contents June 30, 1988 Page Internal Service Funds Combining balance sheet. . . . . . . . . . . . . . . . . 102 Combining statement of revenue, expenses and changes in retained earnings 103 Combining statement of changes in financial position . . . . . . 104 Trust and Agency Funds Combining balance sheet. . .. . . . . . 106 Combining balance sheet, all pension trust funds . . . . . . . . 109 Combining statement of revenue, expenses and changes in fund balances, all pension trust funds. . . . . . . . 110 Combining statement of changes in financial position, all pension trust funds. . . . . . . . . . . 111 Combining balance sheet, all expendable trust funds. . . . . . . 112 Combining statement of revenue, expenditures and changes in fund balances, all expendable trust funds . . . . . . . . . 114 Schedule of revenue, expenditures, and changes in fund balances, non-GAAP basis - budget and actual, all budgeted expendable trust funds. . . . . . . . . 116 Combining statement of changes in assets and liabilities, all agency funds . . . . . . . . . . . . . . . . . . . . 120 Other supplementary information Comparative summary of net assets available for benefits and total actuarial present value of credited projected benefits - pension trust funds. . . 124 Comparative summary of unfunded actuarial present value of credited projected benefits and annual active member payroll - pension trust funds. . . . . . . . . . 125 Comparative summary of revenues by source-pension trust funds. 126 Comparative summary of expenses by type-pension trust funds. 127 Comparative summary of actuarial pension benefit obligation values and percentage covered by net assets available for benefits - pension trust funds . . . . . . 128 Investment performance measurements - pension trust funds. 129 Summary of bonded indebtedness, debt service requirements to maturity (including interest) . . . . . . . . . . . . . . . 130 STATISTICAL SECTION (Unaudited) Special assessment collections . . . . . . . . . . 131 General governmental expenditures and transfers by function. . . . . 132 General governmental revenues and transfers by source. . . . . . . . 134 Property tax levies and collections. . . . . . . . . . . . . . 136 Property tax rates - all overlapping governments . . . . . . . . . . 137 Assessed and estimated actual value of taxable property and non-taxable property . . . . . . . . . 138 Property value, building permits and bank deposits . . . . . . . . . 140 Ratio of net general bonded debt to assessed value and net bonded debt per capita . . . . . . . . . . . . . . . . . . . . 142 Li CITY OF IOWA CITY, IOWA Table of Contents June 30, 1988 7 Page Computation of direct and overlapping debt . . . . . . . . . . . . . 143 _ Computation of legal debt margin . . . . . . . 143 Ratio of annual debt service expenditures for general bonded debt to total general expenditures . . . . . . . . . . . . . 144 — Schedule of revenue bond coverage . . . . . . . . . . . . . . . . .. 145 Demographic statistics . . . . . . . . . . . . . . . . . . . 146 Miscellaneous statistical data . . . . . . . . . . . . . . . . . . . 147 Principal taxpayers and employers. . . . . . . . . . . . . . 149 Schedule of liability and property insurance in force. . . . . . . . 150 Parking rates. . . . . . . . . . . . . . . . 152 Property tax, road use tax & hotel/motel tax revenue . . . . . . . . 153 _ Property tax rates & tax dollars levied . . . . . . . . . . . . . . . 154 COMPLIANCE SECTION Independent auditors' report - schedule of federal and state financial assistance programs. . . . . . . . . . . . . 155 _ Schedule of federal and state financial assistance programs. . . . . 157 Notes to schedule of federal and state financial assistance programs . . . . 159 Independent auditors' report on internal accounting control with respect to general purpose financial statements . . . . 161 _ Independent auditors' report on internal accounting control and administrative controls with respect to federal financial assistance programs. . . . . . . . . 163 Independent auditors' report on compliance with respect to general purpose financial statements . . . . . . . 167 Independent auditors' report on compliance with respect to federal financial assistance programs . . . . . . . . . . . . . . . 169 7 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 1988 ELECTED OFFICIALS Mayor. . . . . . . . . . . . . . . . . . . . . . . A. John McDonald Council -member . . . . . . . . . . . . . . . . . . . . . Susan Horowitz Council -member . . . . . . . . . . . . . . . . . . .Kate E. Dickson Council -member . . . . . . . . . . . . . . . . . . .William J. Ambrisco Council -member . . . . . . . . . . . . . . . . . . . . George A. Strait Council -member . . . . . . . . . . . . . . . . . . . Darrel G. Courtney Council -member . . . . . . . . . . . . . . . . . . . . . . Randy Larson APPOINTED OFFICIALS City Manager . . . . . . . . . . . . . . . . . . . . .Stephen J. Atkins City Clerk . . . . . . . . . . . . . . . . . . . . Marian K. Karr City Attorney . . . . . . . . . . . . . . . . . . . .Terrence L. Timmins DEPARTMENT DIRECTORS Assistant City Manager . . . . . . . .Dale E. Helling rH Director of Finance. . . . . . . Rosemary L. Vitosh Director of Planning & Program Development . . . .Donald D. Schmeiser Library Director . . . . . . . . . . . . . . . . . . Laurette P. Eggers Fire Chief . . . . . . . . . . . . . . . . . .Larry D. Donner Chief of Police. . . . . . . . . . . . . . . . . . Harvey D. Miller Transit Manager . . . . . . . . . . . . . . . . . . . . .John A. Lundell Airport Manager. . . . . . . . . . . . . . . Ronald J. O'Neil Senior Center Coordinator. . . . . .Bette F. Meisel k Director of Housing and Inspection Services. . . .Douglas W. Boothroy Director of Public Works . . . . . . . . . . Charles J. Schmadeke Parks and Recreation Director. . . . . . . . Terry G. Trueblood AI Ri !P� 71 s1 LI UNARY DIRECTOR FIRAMCE DIAECCN -Adum"L,taticn -Accouating -INeaswy •WoAd PAocessing -PUAing pwil G f IMIFECEIN DIRICCN -AdeiniAtAatcon -sualding Inspection -Aeefsled Rou"No -Hawing Impection \I BOARDS 1 CITY OTIWISSlONS C12'RN CITY ATTORNEY LIBRARY BOARD EtcAR Fm:lsfIMER OP TRRSFRLS AIRPORT DERIDM RIIfER FIWIN f lNNN COMMISSION tNNtYRN MAYOR c CITY COACIL rCITIZENS OF IONA CITY .TAa{{tc Englneeting PAW S RECREACIN DIIIECRN •AdnlnisUatinn Rales •RCUtNlion -Gout. Rultdings -Fotutty -CdefeAy LIRE N1U •Fite Suppression •Fitt PAeuention CITY MANAGER ORGANIZATIONAL STRUCTURE FOR IOWA CITY'S GOVERNMENT AIRPORT MANAGER or�CICE CHIEF -AdRinUUation .Ceiunat Inumtigatton -raUat -RcwAds E Identi{fmUo -Anaat ContAot -Ceoseinq A0111AM1 CICO RAMER -&oadhand Tefecoe.uniwtium -Cioit Rights •EnMgy ComeAPation -Eyaipent Ma(nfenance -PMOMCt AdNfntetAatfan IRAMTIE WADER -TAamit ope uom KEY ELECTED OFFICIALS (MAYOR ELECTED BY COUNCIL) APPOINTED BY COUNCIL A MAYOR DIRECTOR/MANAGER CMPLUYE11 BY BOARD OR COMMISSION DEPARERENE/ANININERAIIUE DEAD APPDOICED Ag CICO MANAGER •Opesafing Budgef Unify EtcAR Fm:lsfIMER D \ DERIDM RIIfER FIWIN f lNNN -AdNinLUatlon -FnginctAing .Sheets/SanlfuUon tNNtYRN DEDELRLNM! .TAa{{tc Englneeting -StRiD4 CeMeA ope"am •Adninie (naLian .CDBGMPnagwmQ •PofLuUon Co� -Rat" •1CCOG PRogwu KEY ELECTED OFFICIALS (MAYOR ELECTED BY COUNCIL) APPOINTED BY COUNCIL A MAYOR DIRECTOR/MANAGER CMPLUYE11 BY BOARD OR COMMISSION DEPARERENE/ANININERAIIUE DEAD APPDOICED Ag CICO MANAGER •Opesafing Budgef Unify October 28, 1988 Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa CITY OF IOWA CITY i The Comprehensive Annual Financial Report of the City of Iowa City, Iowa, for the fiscal year ended June 30, 1988, is submitted herewith in accor- dance with the provisions of Chapter 384 of the Code of Iowa. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; and is presented in a manner designed to fairly set forth the financial _I position and results of operations of the City, as measured by the financial activities of its various funds and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. The State Code requires an annual audit of the financial condition and financial transactions of the City. This requirement has been complied with and the auditors' opinion is included in this report. It must be emphasized that this opinion includes all fund types and account groups of the City of Iowa City, Iowa, and the results of all the fund types operations and the changes in financial position of its proprietary fund types and similar trust funds for the year ended June 30, 1988. In the opinion of our auditors, the financial statements are presented fairly, in conformity with generally accepted accounting principles. This report is organized into four sections: introductory, financial, statistical, and compliance. The introductory section contains the listing of City officials, an organization chart, the table of contents and the letter of transmittal. The financial section contains the opinion of the certified public accountants, the general purpose, combining and individual fund financial statements, and schedules. The statistical section contains comprehensive statistical data which is intended to provide a broader and more complete understanding of the financial and economic trends of the City. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations, are included in the compliance section of this report. ['I\'1(' C1.\TIIR • IIII i_ASf \\'AtilllS4l'O\ S1'N III 7- I' • IOWA 171 11, IOWA i1:111 • (119) Ii6•SII 1111 b - The Reporting Entity and Its Services The financial statements and schedules included in the report reflect the financial activity resulting from the provision of services through the City's thirteen basic departments which are administered by the City Manager and subject to the control of the City Council: Administration Airport City Clerk Finance Fire Housing & Inspection Services Library Mass Transportation Parks & Recreation Planning & Program Development Police Public Works Senior Center This report does not include financial statements of the Iowa City Community School District or the Iowa City Conference Board which governs the City Assessor's Office, as they are administered by independent/auton- omous boards and are not legally a part of the City of Iowa City or subject to control by the City Council. The Iowa City Library Foundation, Mayor's Youth Employment Program and Project Green each act under the direction of an autonomous board, and do not otherwise meet the component unit criteria described in the Notes to Financial Statements. The City does, however, act as financial custodian for the funds of these entities and, therefore, includes them in its general purpose financial statements as agency funds. Financial Information In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City maintains its day-to-day accounting records on a modified cash basis. However, this report is prepared on a modified accrual basis for the general governmental and expendable trust operations and on the full accrual basis for the City's enterprise, internal service, pension trust and non -expendable trust activities. Budget: The City adopts its annual program budget on a modified cash basis. While spending control is exercised at the program level, manage- ment control is exercised on a major objective of expenditure basis at budget decision unit levels within funds. Encumbrance accounting is employed in all funds for budgetary control. Encumbrances outstanding at year-end for the governmental fund types are reflected as reservations of -8- %/ W 17 the fund balances. Appropriations which are not encumbered lapse at the end of the year. Retirement Plans: With the exception of police and fire, substantially all permanent City employees are covered by the Iowa Public Employees Retirement System (IPERS). The state annually sets the contribution rate for all municipal entities and covered employees. All covered employees are required to contribute 3.7% of a maximum salary of $24,000, while employers contribute 5.75%. There is no allocation of unfunded liability to any municipal entity and, upon the retirement of employees, IPERS has sole responsibility for their benefits. The City has no responsibility to meet employee pensions of the IPERS system. The City acts in a custodial capacity for the police and fire pension and retirement systems established for the City's public safety employees. According to the latest report from our actuaries, vested and accrued pension benefits exceed the net assets of the trusts by $1,667,247 as of June 30, 1988, as compared to $1,305,329 as of June 30, 1987. Comparative information concerning the contributions made to the pension and retirement systems for the year ended June 30, 1988, is as follows: Fire Police IPERS Employees' contributions $ 39,734 $ 48,377 $ 268,929 Employer's contributions 388,454 276,014 417,915 State Contribution 47,141 40,806 - - Covered payroll 1,281,742 1,560,548 7,268,193 Number of employees 49 53 358 Contributions as a percentage of active member payroll: City 29.54% 17.69% 5.75% State 3.66 2.65 - - Employees 3.10 3.10 3.70 General Governmental Financial Analysis: Revenue and transfers for general governmental functions (General Fund, Special Revenue Funds, and Debt Service Fund) totaled $23,215,758 in fiscal year 1988, an increase of 10.9% from 1987. Property taxes accounted for 53.6% of the total. A 14.2% increase in property taxes can be attributed to increased trust and agency, debt service, and transit levies. Improved collection measures resulted in a 13.4% increase in fines and forfeitures. Transfers increased by 15.1% due to federal revenue sharing financing of a new fire truck in the amount of $446,024. The 16.6% increase in use of money and property resulted primarily from interest earnings. SD A comparative summary of the general governmental revenue and transfers is as follows: Percent Increase Percent i of (Decrease) of Increase 1988 Total from 1987 Decrease Property taxes $12,438,452 53.6% $1,550,069 14.2% Licenses and permits 367,403 1.6 35,190 10.6 Intergovernmental revenue 3,883,193 16.7 28,586 .7 Charges for services 1,798,396 7.7 156,727 9.5 Fines and forfeitures 391,710 1.7 46,255 13.4 Use of money and property 494,328 2.1 70,265 16.6 Miscellaneous 550,038 2.4 (31,171) (5.4) Transfers 3.292.238 14.2 432 172 15.1 Total 23 215 758 100.0%2 288 09310.9% Expenditures and transfers for general governmental functions (General Fund, Special Revenue Funds, and Debt Service Fund) totaled $22,720,828 in fiscal year 1988, an increase of 12.8% over 1987. The acquisition of a new fire truck, $446,024, resulted in a 49.1% increase in capital outlay and an 18.8% increase in transfers out as the funding source was the remaining federal revenue sharing funds which were transferred to the general fund. A 20.6% increase in debt service principal expenditures results primarily from first maturities coming due on the August 1986 bond issue to finance the new Mercer Park Aquatics Center. Policy and admini- stration expenditures increased by 25.6% due to the payment of the tort liability levy, to the Loss Reserve internal service fund, combined with increased legislative costs of $411,128. A comparative summary of general governmental expenditures and transfers is as follows: Percent Increase Percent of of (Decrease) Increase 1988 Total from 1987 Decrease Current Operating: Community protection $ 5,111,978 22.5% $ 242,471 5.0% Human development Home and community 2,820,531 12.4 117,552 4.3 environment Policy and administration 2,868,006 12.6 3,512,338 15.4 96,094 716,921 3.5 25.6 Capital outlay Debt Service: 1,712,402 7.5 564,250 49.1 ) Principal Interest 2,172,359 9.6 371,291 20.6 Transfers to other funds 967,848 4.3 3 555 366 15.7 (89,389) 563 730 (8.5) 18.8 s Total 22 720 828 100.0% 2 582 920 12.8% Enterprise Funds: The City's seven enterprise funds operate from the i, proceeds of user charges. In the Sanitation Fund the refuse collection rate increased from $4.30 per month to $4.50 effective September 1, 1987, and the solid waste disposal fee increased from $7.75 per ton to $8.00 effective July 1, 1987. pollution control were implemented Rate increases of 10% for water and September 1, 1987, resulting 60% for in the anticipated increases of 16.1% in the Water fund operating revenue and -10- 60.9% increase in the Pollution Control fund operating revenue. The Mass Transportation and Airport operations continue to be heavily subsidized by transfers of property tax revenue from the General Fund as statutorily required. These transfers represent 46.1% and 49.8% of each fund's total revenue and operating transfers in, respectively. Debt Administration: The ratio of net bonded debt to assessed valuation - and the amount of net banded debt per capita are useful indicators of the — City's debt position to municipal management, citizens, and investors. These statistics for the City as of June 30, 1988 were as follows: Ratio of Net Bonded Net Bonded Debt to Assessed Debt Per Amount Value Capita Net bonded debt $16,584,306 .0127 to 1 $328 Outstanding general obligation bonds as of June 30, 1988 totaled $16,900,000 of which $1,138,458 issued for pollution control improvements will be funded by the Sewer General Obligation Bonds Refunding Trust Fund and $1,182,835 issued for water improvements will be funded by the Water Fund. Tables in the statistical section of this report present more i detailed information about the debt position of the City. J During the year the City issued $1,260,000 of general obligation bonds for street improvement projects and for the purchase of computer equipment for the water department. Final maturity of this issue is June 1998 and the average effective interest rate is 6.28%. The City continues to have the same excellent 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 the best quality and carrying the smallest degree of investment risks. The City's ratings as of June 30, 1988 were as follows: jMoody's Investors Services, Inc.: f r General obligation bonds Aaa Parking revenue bonds Baal Sewer revenue bonds A Cl ital Pro ects Funds: During the fiscal year ended June 30, 1988, 5,159,633 was expended for capital projects of which $3,558,568 was capitalized in the General Fixed Assets Account Group. The remainder was not capitalized according to the City's policy of not capitalizing infrastructure fixed assets. _ General Fixed Assets: The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and - exclude the fixed assets of the proprietary funds. As of June 30, 1988, the general fixed assets of the City amounted to $18,084,922 compared to $14,044,951 as of June 30, 1987. This amount represents the original cost of the assets and is considerably less than their present value. The City follows the policy of not capitalizing the casts of infrastructure fixed assets, such as streets, sidewalks, bridges, storm sewers, lighting -11- systems and individual assets with a cost of less than $500. Depreciation of general fixed assets is not recognized in the City's accounting system. Cash Management: The majority of the City's investments are handled through an investment pool except for those funds which are required to maintain their investments separately. This pooled concept provides for _ greater investment earnings which are then allocated on a systematic basis. For the year ended June 30, 1988, the City earned $2,923,671 from all investments, down $243,445 from the prior year. The following tabulation shows how this was allocated for the fiscal years 1988 and 1987. 1988 1987 Investment Investment Fund Type Earnings Earnings _ Governmental $ 611,989 $ 547,363 Proprietary 840,373 664,186 Fiduciary 1 471 309 1 955 567 Totals 2 923 671 3 167 116 f Risk Management: The City successfully completed its first full year � under a new property and liability insurance program which provides for a $50,000 self-insured retention per occurrence, with an annual aggregate retention of $475,000. The insurance provided coverage for claims in excess of $50,000 per occurrence to a maximum of $2,000,000 annual aggregate of claims made. The operating funds make annual deposits to the �I Loss Reserve Fund which is accounted for as an Internal Service Fund. This loss reserve is available to cover the self-insured retention amounts and uninsured losses. At the close of this program's first year (June 26, 1988), the loss ratio 11 II for paid claims was only 24% of the $475,000 annual loss reserve amount. The program renewal resulted in the purchase of increased coverage ($5,000,000 annual aggregate) for a premium cost comparable to the prior ri year. The balance in the Loss Reserve Fund as of June 30, 1988, was $648,787. This program was initially projected to save the City approxi- YI mately $200,000 annually on insurance and claims costs. First year �y j results indicate that annual savings may exceed that original projection. I 1 i 31 Certificate of Achievement tl ' The Government Finance Officers Association of the United States and EiI Canada (GFOA) awarded a Certificate of Achievement for Excellence in tl Financial Reporting to the City of Iowa City, Iowa, for its comprehensive annual financial report for the fiscal year ended June 30, 1987. This was the third consecutive year since 1985 that the City has achieved this Rl award. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose -12- �� contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal require- ments. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to meet the Certificate of Achieve- ment Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. Significant Events and Prospects for the Future The local economy continues to be strong and well insulated from the economic downswing experienced in recent years state-wide in agriculture and the agriculture -related industries. Iowa City's economic strength is based upon education, medical services and diversified manufacturing. The University of Iowa is the largest employer with over 18,000 employees and the University of Iowa Hospitals and Clinics is the largest University - owned teaching medical center in the United States. In addition to the University, the City has a significant number of private employers which have a history of providing stable and increasing employment in the community. Iowa City has continued to maintain a consistently low unemployment rate as compared to the State of Iowa and the United States averages. While property assessed valuations have declined and/or stabilized in most Iowa cities in recent years, Iowa City has consistently experienced modest increases in valuation. This, along with the unemployment rate, continues to be indicative of Iowa City's economic well-being. t Reductions in federal and state assistance have resulted in a growing - dependence upon property tax revenues for the Iowa City government. In spite of this factor, Iowa City is well below the maximum property tax levy rate. i r Recognizing the City's growing dependence upon property tax revenues and the need to compensate for lost and reduced federal and state assistance provided the impetus for the restructuring of the City's annual financial planning process. Instead of preparing an annual operating budget, the -� City implemented, during the past fiscal year, the development of a Three Year Financial Plan. Integrating operating and capital improvement budgets/financial projections along with planned debt structuring for a three year period has given City officials the opportunity to strategi- cally establish property tax rates and debt financing schedules. A major element of the Three Year Plan was the objective to increase and thereby strengthen the City's cash reserve position through the increase of fund balances. In addition, procedures were adopted to allocate I unreserved fund balances between a contingency and a pure fund balance. The contingency is available during the fiscal year for unanticipated and _ unbudgeted expenditures while the pure fund balance is intended to be maintained as working capital. The City is committed to drawing from the pure fund balance only in extreme emergency situations. This unreserved fund balance allocation along with specific budgeting techniques did permit the City to increase fund balances substantially by year-end. In addition, the City saw a year where operating revenues exceeded expendi- a -13- 7/ tures, a very positive indicator of the City's ability to live within its means. The Three Year Financial Plan did contain slight reductions in the number of City employees, deferral of capital improvement projects, and very moderate property tax increases. However, even with the financial _ limitations, Iowa Citians did this summer begin to enjoy the use of a new indoor swimming pool at Mercer Park and a renovated City Park pool, in addition to seeing a restoration of public library service on Thursday nights and Fridays. The overall level of services to be provided by the City is expected to remain essentially the same for the next three years. Capital outlay replacement, infrastructure maintenance and capital improvement projects are a critical element of the Three Year Plan. The prioritization of needs in these areas and their placement into the Plan provides the opportunity for balancing between need, work schedules and available resources. The City took delivery on a new, 100 -foot ladder _ fire truck in May, 1988, at an approximate cost of $446,000. Financing for the new truck came from the final federal revenue sharing monies on hand. The ladder truck that was replaced was forty years old. Recogniz- ing the past tendency to delay replacement of fire vehicles, the City has established a fifteen year replacement schedule that will be funded from an annual appropriation and provide for more timely vehicle replacement. Plans are being developed for substantial building improvements for the Police and Fire Departments along with the renovation of administrative office space. The largest capital improvement project ever undertaken by this City government, the Wastewater Treatment Facilities Improvement Project, did incur delays due to difficulties with the engineering consulting firm-! hired to design and manage the project and problems with zoning. This project is designed to bring the City into compliance with current effluent standards while meeting current needs and providing for future �. growth. Sewer revenue bonds were sold in July, 1986, to finance the project. The zoning issues have been resolved and a new engineering consultant has been retained to manage the project. Construction has begun on the of rehabilitation and expansion of the existing sewer plant and the new treatment facility located south of Iowa City. The remainder of the ¢I project, construction of interceptor.sewers and a sludge force main, will ¢1 be bid in February, 1989, with construction scheduled to begin March, 1989. Current cost estimates indicate that an additional $10 million ¢1 will be needed to finance project costs. The City has applied for federal y funding for the interceptor sewer construction. Remaining funding will be provided by monies on hand and the sale of general obligation bonds. It is notable that the City will retire all bonds issued for this project uI i from sewer revenues and that bond proceeds and local funding will finance R 95% of the total project cost of $44 million. Joint cooperation with other local governmental agencies continues to be g demonstrated. The new Mercer Park indoor swimming pool, a $3.4 million facility, is the largest indoor swimming pool in the midwest. It was I built through the cooperation of the City of Iowa City and the Iowa City �l Community School District, being financed by City general obligation bonds and a $500,000 contribution from the School District. The pool will be -14- jointly operated and utilized by both the City and the school district for j their respective swimming programs. Also in the spirit of cooperative efforts with other local governments, the City is working with the City of Coralville in planning the construction and joint operation of a new animal shelter. There are many signs that our City remains healthy and vibrant with great promise for the future. While University student enrollment has begun to decline slightly, as predicted, plans for future expansion in the areas of laser research, medical research and services, along with the hopefully growing commitment on the part of state legislators to increase support for the University of Iowa and its other state institutions of higher learning bode well for Iowa City's future. We continue to see sustained production in our major local industries. Industrial and commercial interest in this community have continued to thrive in the midst of the still bleak state-wide economic environment. We will be challenged during the next couple of years to maintain the viability of our City through greater economic development efforts, fiscal restraint in local government, completion of several major tasks, and a renewed spirit of cooperation among local government officials. We are confident that the City of Iowa City is posturing itself though more effective long-term financial planning to better meet the needs of the community in the future while increasing financial strength and stability. The City Council and staff are committed to managing the City's destiny into the future. Acknowledgements The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department who assisted and contributed to its preparation. We want to especially recognize the extraordinary contributions of Cathy Yoder, Sr. Accountant and Regina Schreiber, Accountant. These people assist the Controller to actually prepare the report and work closely with the auditors to achieve the required disclosures and format. The final document's professional quality is attributable to the fine efforts of the Word Processing Center, in particular Beverly Jensen, and the Central Procurement and Services print shop operation. -15- We would also like to thank the Mayor, the members of the City Council and the City Manager for your interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Rosemary L. Vitosh, C.P.A. Director of Finance Monica J. Bieri City Controller -16- 7/ ji. t . 1 I I tX I, We would also like to thank the Mayor, the members of the City Council and the City Manager for your interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Rosemary L. Vitosh, C.P.A. Director of Finance Monica J. Bieri City Controller -16- 7/ 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, 1987 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. r r✓� i4 SULLPresident ft. A4;� Z Executive Director M -17- 7/ i KRM%ff_ Marwick INDEPENDENT AUDITORS' REPORT To The Honorable Mayor and Members of City Council City of Iowa City, Iowa: We have audited the general purpose financial statements of the City of Iowa City, Iowa, as of and for the year ended June 30, 1988, as listed in the accompanying table of contents. These general purpose financial statements are the responsi- bility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of mate- rial misstatement. An audit includes examining, on a test basis, evidence sup- porting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial state- ment presentation. We believe that our audit provides a reasonable basis for our - opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Iowa City, Iowa, at June 30, 1988, and the results of its operations and the changes 1n fi- nancial position of its proprietary and similar trust fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund finan- cial statements and schedules listed as supplementary information in the accompa- nying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Iowa City, Iowa. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The schedules of historical pension information on pages 124 through 128 are not a required part of the general purpose financial statements but are supplementary information required by the Covernmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemen- tary information. However, we did not audit the information and express no opinion on it. Des Moines, Iowa October 14, 1988 -19- Pal. Tr4wxa'b � ,LCo CITY OF IOWA CITY, IOWA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1988 (Page 1 of 3) -22- '71 - Governmental Fund Types Special Debt Capital ASSETS General Revenue Service Proiects Cash $ 1,413 $ - - $ - - $ Investments 4,364,657 723,613 215,557 2,770,564 Receivables: Property taxes 10,183,371 - - 3,029,450 Accounts and unbilled usage 611,682 813 Interest 15,584 5,244 3,706 22,951 Special assessments 543,851 - - Action grant loan 2,263,851 Due from other funds 225,566 Due from other governments 8,965 190,842 185,095 Inventories - - - - Restricted assets: Investments - - . _ Interest receivable - - - - Due from other governments - - . _ Bond issuance costs - - . _ Property and equipment: Land - - . . Buildings and structures - - . _ Improvements other than buildings - - - - Equipment and vehicles - - . _ Accumulated depreciation - - . - Property purchased for resale - - - _ Construction in progress - - - - Amount available in Debt Service Fund - - _ - Amount to be provided for the payment of general long-term debt Total assets 08 E3.184.363 ,7qg 3 6 0 -22- '71 - w I Fiduciary Proprietary Fund Types _Fund TypesAccount Groups General General Total Internal Trust and Fixed Long -Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 140,677 $ - - $ -_ $ $ _ $ 142,090 to 3,710,115 1,366,152 17,966,194 - - - - 31,116,852 It - - - - 737,743 - - - - 13,950,564 1,119,502 8,152 92,259 - - - - 1,832,408 73,572 6,839 792,687 - - - - 920,583 - - _ 543,851 245,357 128,279 23,258 - - - - 2,263,851 622,460 17,042 - 10,371 412,315 189,168 465,982 - - - - - - 655,150 �a 39,150,390 - - - - - - - - 39,150,390 249,069 - - - - - - - 249,069 If 702,328 - - - - - - - - 702,328 131,875 - - - - - - - - 131,875 It 2,842,210 45,462 - - 2,953,241 - - 5,840,913 ie 21,106,687 563,355 - - 7,426,220 - - 29,096,262 ' 23,450,506 41,365 - - 499,562 - - 23,991,433 3,180,234 3,074,447 - - 3,014,938 - - 9,269,619 r (14,677,560) (1,789,611) - - - - - - (16,467,171) 28,199 - - - - - - - 28,199 7,233,271 - - - -. 4,190,961 - - 11,424,232 250,694 250,694 15,627,198 15,627,198 E 88,892,642 3,910,422 $19,622,512 18 084 922 $15,877,892 1171,755,165 (continued) -23- !1 CITY OF IOWA CITY, IOWA _ COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS _ June 30, 1988 (Page 2 of 3) (continued) Governmental Fund Types LIABILITIES AND Special Debt Capital _ EQUITY General Revenue Service Projects Liabilities: Excess of out- standing checks over bank balance $ 373,318 $ - - $ - - $ 122,218 Accounts payable 498,499 22,221 - - 54,581 Contracts payable - - - - - - 339,499 Accrued liabilities 598,579 22,144 - - 5,609 Due to other funds 314,437 23,874 - - 56,250 Due to other governments 1,284 - - - - - - Due to agency - - - - - - - - Deferred revenue: Property taxes 9,803,266 - - 2,915,661 - - Special assessments 384,854 - - - - - - Action grant loan - - 2,268,144 - - - - Other 11,925 - - - - 431,770 Interest payable - - - - 17,358 - - Deferred compensation payable - - - - - - - - Deposits 408,887 - - - - - - Liabilities payable �• from restricted assets: Contracts payable - - - - - - - - Interest payable - - Deposits - - Matured bonds - - - - 65,000 - - Bonded debt payable - - Other long-term debt , payable - - - - - - - - Total liabilities $12,395,049 $2,336,383 $2,998,019 $1,009,927 ¢� rl c� rA -24- 71 ""' Fiduciary 371,741 31,968 55,543 Proprietary Fund Types Fund TypesAccount 80,040 27,659 Groups 22 1,078 173,908 General General Total Internal Trust and Fixed Long -Term (Memorandum Enterprise Service Agency Assets Debt Only) $ - - $ 495,536 1,034,553 339,499 1,147,461 2,334,031 - - - - 622,460 - - 175,192 - - 618,841 - - 13,427,926 - - 384,854 - - 2,268,144 - - 628,124 - - 56,757 - - 1,082,382 - 408,887 629,008 - - - - - - - - 629,008 2,441,003 - - - - - - - - 2,441,003 179,933 - - - - - - - - 179,933 65,000 44,480,471 - - 2,249,458 - - 14,633,707 61,363,636 3,004,494 - - - - - - 96,724 3,101,218 $52,159,306 $112,030 $4,768,378 $15,877,892 $91,656,984 -25- (continued) 71 371,741 31,968 55,543 452,539 80,040 27,659 226,799 22 1,078 173,908 - - - - - - - - 618,841 ' - - - 708,999 184,429 - - - - 14,981 - - 24,418 1,082,382 $ - - $ 495,536 1,034,553 339,499 1,147,461 2,334,031 - - - - 622,460 - - 175,192 - - 618,841 - - 13,427,926 - - 384,854 - - 2,268,144 - - 628,124 - - 56,757 - - 1,082,382 - 408,887 629,008 - - - - - - - - 629,008 2,441,003 - - - - - - - - 2,441,003 179,933 - - - - - - - - 179,933 65,000 44,480,471 - - 2,249,458 - - 14,633,707 61,363,636 3,004,494 - - - - - - 96,724 3,101,218 $52,159,306 $112,030 $4,768,378 $15,877,892 $91,656,984 -25- (continued) 71 CITY OF IOWA CITY, IOWA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1988 _ (Page 3 of 3) (continued) Governmental Fund Types LIABILITIES AND EQUITY Special Debt Capital General Revenue Service Proiects Total liabilities forwarded Equity:— 512.395.04912,336,383 52.998.019 51.009.927 Contributed capital $ _ - $ $ S Investment in _ general fixed assets Retained earnings: Bond ordinance _ reserves Unreserved Fund balance: — Reserved for: Encumbrances Long term 72,887 6,133 122,142 ~ receivables 324,166 Employee retirement commitments Johnson County Council of Governments �• Perpetual Care Unreserved: Designated for: Gifts for specific purposes Future improve- ments Health 433,137 1,846,541 insurance 90,411 Undesignated Total equity 2.584.561 L3,560,040 841,847 84 980 250.694 250 ri Total liabili- 69 968 683 ties and equity WM,Qag 53.184„i§ Ujam 52.978 61p See Notes to Financial Statements. rl ai I -26- I/ w I� w I Fiduciary Proprietary Fund Types Fund Types Account Groups General General Total Internal Trust and Fixed Long-Term (Memorandum Y" Enterprise Service Agency Assets Debt Only) w $52,159,306 112,030 $ 4,768,378 $ - - $15,877,892 $ 91,656,984 It $21,340,422 $1,240,317 $ - - $ - - $ - - $ 22,580,739 w 1 - - - - - 18,084,922 - - 18,084,922 6,632,260 - - - - - - - 6,632,260 1.. 8,760,654 2,558,075 - - - - - - 11,318,729 I� - - - - - - - - - - 201,162 - - - - - - - - - 324,166 �N - - - 14,831,861 - - - - 14,831,861 - - - 39,903 - - - - 39,903 - - - - 80,435 - - - - 80,435 r-- -- -- -- -- 54,878 - - - - - - - - - 2,279,678 - - - - - - - - - 90,411 36 733 336 (98,065) $14,854,134 18 084 922 3_ 5y 037 80 098 1_81 $88.892.642 JL2LO 422 $19.622.512 $18.084.922 $15.877.892 $171.755.165 �+ -27- V CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year Ended June 30, 1988 Governmental Special General Revenue _ REVENUE Property taxes $ 9,628,516 S Licenses and permits 367,403 Intergovernmental 1,016,967 2,866,226 Charges for services 1,798,319 77 Fines and forfeitures 391,710 Use of money and property 210,341 73,292 ` Miscellaneous 425,539 124,499 Total revenue 513,838,795 $ 3,064,094 EXPENDITURES ~ Current operating: Community protection S 5,111,978 $ _ Human development 2,820,531 Home and community environment 2,596,722 271,284 Policy and administration 3,439,164 73,174 Capital outlay 987,322 725,080 Debt service: Principal 100,221 Interest 25,873 .- Total expenditures 515,081,811 $ 1,069,538 Revenue over (under) expenditures $(1,243,016) $ 1,994,556 OTHER FINANCING SOURCES (USES) n Operating transfers: From other funds $ 3,171,872 $ (To) other funds (1,185,197) (2,370,169) r•i Proceeds from general obligation bonds Total other financing sources (uses) S 1.986.675 $(2,370,169) Revenue and other financing sources ci over (under) expenditures and other financing uses $ 743,659 $ (375,613) ca FUND BALANCES {DEFICIT), BEGINNING as restated (Note 2) 2,816,381 1,223,593 xl FUND BALANCES, ENDING 3 60 4 S 847.980 16 See Notes to Financial Statements. �I ci -28- 123.390 4.679.438 (30.410) 8.812.392 S 2� 1,968,683 S- 181,25 S 6.8_08 653 "� -29- /� Fiduciary — Fund Types Fund Tyoe Debt Capital Expendable Total (Memorandum Service Proiects Trusts Only) $2,809,936 $ $ 784,484 $13,222,936 367,403 „ 407,744 62,760 4,353,697 93,707 1,892,103 210,695 143,968 175,548 391,710 813,844 $3,020 63 541.438 2.682 $1.119.181 1.094.158 S 1.093.150 122.135.851 i, 5 $ - - S 24,154 $ 5,136,132 2,820,531 155,128 3,023,134 28,885 3,541,223 5,159,633 6,872,035 2,072,138 2,172,359 941.975 122.980 1.090.828 $3.014.113 S 5.159.633 S 331.147 $24.656.242 6.51 $(4.066.483) $ 788.034 $(2.520.391) i~ $ 120,366 $ 965,179 $ 86,166 $ 4,343,583 (662,534) (1.249,408) 420 120.786 1`248.988) 1-1,355,728 5 6 368) $ 516.652 — $ 127,304 $(2,710,755) $ 211,666 $(2,003,739) 123.390 4.679.438 (30.410) 8.812.392 S 2� 1,968,683 S- 181,25 S 6.8_08 653 "� -29- /� CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED FUNDS Year Ended June 30, 1988 (Page 1 of 2) REVENUE Property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Community protection Human development Home and community environment Policy and administration Total expenditures OPERATING TRANSFERS From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out General Fund Variance Favorable Budget Actual (Unfavorable) $ 9,098,788 347,015 923,233 1,654,002 350,828 131,131 153 096 12 658 093 $ 9,576,527 363,963 1,014,504 1,750,325 391,846 156,270 247 696 13 501 131 $ 477,739 16,948 91,271 96,323 41,018 25,139 94 600 843 038 $ 5,811,658 $ 5,667,327 $ 144,331 3,101,113 3,015,025 86,088 3,120,347 2,840,020 280,327 3 823 352 3 353 734 469 618 15 856 470 14 876 106 980 364 $ 3,630,456 $ 3,341,355 $ (289,101) (1,240,726) (1,176,683) 64,043 $ 2,389,730 $ 2,164,672 $ (225,058) $ (808.647) $ 789.697 $ 1.598.344 -30- 71 Special Revenue Funds Debt Service Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 2,875,312 2,829,984 (45,328) - 77 77 42,958 73,055 30,097 73,890 73 890 2 918 270 2,977,006 58 736 $2,700,618 $2,780,042 $ 79,424 11,928 209,952 198,024 420 420 2 712 546 2 990 414 277 868 789,955 815,105 (25,150) 1,003,016 965,864 37,152 2,872,960 2,767,028 105,932 328 328) 1,003,016 966,192 36 824 3 662 915 3 582 133 80,782 $ - - $ 7,270 $ 7,270 $ 825,211 $ 647,677 $(177,534) (2,701,718) (2,385,957) 315,761 - - - - - - "' $(2,701,718) $(2,378,687) $323,031 825,211 647,677 $(177,534) $ (786.464) $ (367.873) $418,591 (125,158) 55,958 Lial 116 -31- (continued) T CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED FUNDS Year Ended June 30, 1988 (Page 2 of 2) (continued) REVENUE Property taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Community protection Human development Home and community environment Policy and administration Total expenditures OPERATING TRANSFERS From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out See Notes to Financial Statements. Enterprise Funds Variance Favorable Budget Actual (Unfavorable) 200 258 $ 58 318,678 319,282 604 8,596,940 8,472,879 (124,061) 192,000 187,235 (4,765) 2,315,556 2,640,293 324,737 58,094 65 679 7 585 111,481.468 11 685 626 204 158 10,950,671 11,037,036 (86,365) 10 950 671 11 037 036 86 365) $ 6,371,432 $ 6,389,360 $ 17,928 (6,265,753) (5,972,855) 292,898 105,679 416,505 310,826 636 4761 065 095 428,619 -32- I/ W W Expendable Trust Funds Total w Variance Favorable Variance Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) ,w $ 757,208 $ 776,431 $19,223 $ 12,556,614 $ 13,133,000 $ 576,386 70,557 67,370 - (3,187) 347,215 4,187,780 364,221 4,231,140 17,006 43,360 w 95,777 95,106 (671) 10,346,719 10,318,387 (28,332) w 209,062 207,178 - (1,884) 542,828 2,710,635 579,081 3,286,748 36,253 576,113 - 1,132,65-4 2 683 1 148 768 2 683 REM 211 190 30 902 981 390 368 32 302 945 179 178 1 399 964 r, $ 17,500 I- $ 15,892 $ 1,608 $ 5,829,158 $ 5,683,219 $ 145,939 464,169 - 452,321 - - 11,848 3,891,068 18,411,163 3,830,130 18,062,269 60,938 348,894 65 000 546 669 25 916 494 129 39 084 52 540 3 888 352 32 019 741 3 379 978 30 955 596 508 374 1 064 145 $ 385,356 (1,376,800) $ 385,356 1 352 547) $ - - 24,253 $ 11,212,455 (11,584,997) $ 10,771,018 _(10,888,042) $ (441,437) 696,955 (991,444) (967,191) $24,253 $ (372,542) (117,024) 255,518 (405,509) (312,552) 1HIM $ (1.489.302) S 1.230.325 2 719 627 i., I, ^' -33- %/ CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED — EARNINGS/FUND BALANCES, ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Year Ended June 30, 1988 _ Proprietary Fund Types Internal ` Enterprise Service REVENUE: _ Charges for services $11,285,101 $2,311,060 Interest Contributions Miscellaneous 97,103 15,400 _ Total revenue $11,382,204 52,326,460 EXPENSES: Personal services ; 3,462,528 $ 530,851 Commodities 434,356 539,139 Services and charges 3,025,418 236,497 $ 6,922,302 $1,306,487 Depreciation 1,361,478 354,977 Total expenses $ 8,283,780 ;1,661,464 Operating income $ 3,098,424 ; 664,996 NONOPERATING INCOME (EXPENSES): Gain on disposal of fixed assets 6,313 1,456 Operating grants 1,884,024 Interest income 785,037 55,336 Rent (1,596,639) Interest expense781,273) Income before operating transfers $ 3(395,886 $ 721,788 OPERATING TRANSFERS: From other funds $ 959,176 ; (To) other funds (220,235) Total operating transfers in (out) $ 738,941 $ Net income ; 4,134,827 ; 721,788 ~ Depreciation on assets acquired by contributed capital that reduces contributed capital 114,015 RETAINED EARNINGS/FUND BALANCES, BEGINNING, as restated 11,144,072 1,836,287 RETAINED EARNINGS/FUND BALANCES, ENDING 15.392.914 ;2.558,075 See Notes to Financial Statements. V u. Fiduciary Fund Types a, Pension Non -Expendable Total (Memorandum Trusts Trust Only) w Is f f - - $13,596,161 1,256,822 6,185 1,263,007 w 840,526 - - 840,526 $ 2,097,348 6 185 112,503 $15,812,197 w Ir $ 535,425 $ f 4,528,804 973,495 3,261,933 la $ 535,443 5 $ 8,764,232 1,716,455 �� S 535,443 �_ 510,480.687 f 1,561,905 $ 6,185 $ 5,331,510 1.1 if 7,769 1,884,024 If - - - - 840,373 (1,596,639) , (781,273) $ 1,561,905 6,185 S 5,685,764 i� $ - $ $ 176 ii - (6,185) (226,420) $ $(6,185) $ 732,756 j_ $ 1,561,905 $ $ 6,418,520 114,015 M 13,030,538 514.592.443 80,435 580.435 26,091,332 532,623,867 -35- V CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Year Ended June 30, 1988 FINANCIAL RESOURCES APPLIED TO: Due from other funds Proprietary Fund Types $ - - Purchase of property Internal 3,109,950 Enterprise Service FINANCIAL RESOURCES PROVIDED BY: 1,249 - - Operations: 213,478 Net income $ 4,134,827 $ 721,788 Items which did not (provide), or require - - Contributed capital outlay of, cash and investments: 2,222 - - Depreciation 1,361,478 354,977 Amortization 41,691 - - (Gain) on disposal of fixed assets (6,313) (1,456) (Increase) decrease in: 40,741,296 666,888 Accounts and accrued interest receivable (230,103) (4,665) Due from other funds (168,122) 2,843 Due from other governments (334,383) - - Inventories (17,861) (34,884) Increase (decrease) in: Accounts payable and accrued expenses 222,611 (5,008) Due to other funds (44,879) (788) Due to other governments (34,146) - - Deferred revenue, other 34,452 - - Interest payable 233.316 - - Total financial resources provided (used) by operations $ 5,192,568 $1,032,807 Other sources: Contracts payable 225,215 - - Deposits 9,611 - - Contributed capital 457 496 6 451 Total financial resources provided (used) T5, 884 890 1 039 258 FINANCIAL RESOURCES APPLIED TO: Due from other funds $ 46,648 $ - - Purchase of property and equipment 3,109,950 339,994 Deposits 1,249 - - Contracts payable 213,478 - - Due to other funds 20,000 - - Contributed capital 2,222 - - Payment of bonds Total financial resources applied 231 457 3,625!004 - - 339 994 Net increase (decrease) in cash and investments $ 2,259,886 $ 699,264 Cash and investments, June 30, 1987 40,741,296 666,888 Cash and investments, June 30, 1988 $43,001,182 E1.366.152 See Notes to Financial Statements. -36- `71 Fiduciary Fund Types Total Pension Non -Expendable (Memorandum Trusts Trust Only) !. $ 1,561,905 $ - - $ 6,418,520 1,716,455 41,691 - - - - (7,769) w (177,470) (47) (412,285) (18,835) (184,114) - - - - (334,383) - - - - (52,745) I� 2,086 - - 219,689 265 (45,402) (34,146) - - - - 34,452 - - - - 233.316 (' $ 1,386,521 $(18,617) $ 7,593,279 ' - - - - 225,215 - - - - 9,611 L� 1 386 521 18 617) 463 947 8 292 052 , $ 46,648 - - - - 3,449,944 " - - - 1,249 - - - - 213,478 20,000 2,222 231 457 $ 1,386,521 $(18,617) $ 4,327,054 12,490,766 80,455 53,979,405 T $13,877,287 61,838 E58.306.459 -37- `71 CITY OF IOWA CITY, IOWA _ NOTES TO FINANCIAL STATEMENTS June 30, 1988 Note 1. Sumnary of Significant Accounting Policies The City of Iowa City, Iowa, was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to citizens, including general government, public safety, streets, parks and cultural facilities. It also operates an airport, parking facilities, a mass transportation N system, water, sewer, and other sanitation utilities, and a housing authority. The financial statements of the City of Iowa City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below. The Reporting Entity For financial reporting purposes, the City includes all funds, account groups, agencies, boards, commissions and authorities that are controlled by or dependent on the City. The criteria used to evaluate this control by or dependence on the City relates to the oversight responsibility exercised by the City, including governing authority selection and continuing relationships, budget adoption, taxing authority, debt responsibility and obligation of the City to finance any deficits that may occur, or receipt of significant subsidies from the City. Based on the foregoing criteria, the Johnson County Council of Governments is included in the City's general purpose financial statements as an expendable trust fund. The Iowa City Community School District is administered by an autonomous board, created under the authority of chapters of the Iowa Code separate and distinct from the City and thus their financial statements are not included in this report. The Iowa City Conference Board which governs the Iowa City Assessor's Office also did not meet the above criteria and is excluded from this financial report. The Iowa City Library Foundation, Mayor's Youth Employment Program and Project Green each act under the direction of an autonomous board and do not meet the component unit criteria. The City does, however, act as financial custodian for the funds of these entities and, therefore includes them in its general purpose financial statements as agency funds. Description of Funds and Account Groups These financial statements include all funds and account groups owned or ad- ministered by the City, for which the City acts as custodian, or which were determined to be component units of the City, 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 generally accepted accounting principles. -39- 7/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 The accounts of the City are organized on the basis of funds or account groups, each of which if considered to be a separate accounting entity. Each fund or account group is accounted for by providing a separate set of self -balancing accounts which comprise its assets, liabilities, equity, revenue and expenditures or expenses, as appropriate. The various funds and account groups are presented as follows: GOVERNMENTAL FUND TYPES The General Fund is used to account for all financial resources of the City, except for those required to be accounted for by other funds. The revenue of the General Fund is primarily derived from general property taxes, charges for services, fines and forfeitures, licenses and permits, and certain revenue from state and federal sources. The expenditures of the General Fund primarily relate to general admini- stration, police and fire protection, streets and public buildings operation and maintenance, and parks and recreation. The Special Revenue Funds are used to account for revenue derived from specific sources which are required to be accounted for as separate funds. The funds in this category include ther Shared RevenueandGrants Fund, Cthe uFederal Revenue nSharing kFund aand nt Fthe Urban und, the ODevelopment Action Grant Fund. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. The Capital Projects Funds are used to account for all resources to be 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 funds in this category include the Bridge, Street and Traffic Control Construction Fund and the Other Construction Fund. PROPRIETARY FUND TYPES The Enterprise Funds are used to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing goods or services to the general public on a continuing basis is expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of revenues earned, expenses and/or management control,1eaccountability, orpother purposes.riate for The ivari�ouseenterpriseofunds include the Parking Fund, Pollution Control Fund, Water Fund, Sanitation Fund, Airport Fund, Housing Authority Fund and the Mass Transportation Fund. The Internal Service Funds are used to account one department to other City departments on in this category are the Equipment Maintenance Loss Reserve Fund. -40- for goods and services provided by a cost reimbursement basis. The funds Fund, Central Services Fund, and the V Ili.maieW `.A (11".Ll NOTES TO FINANCIAL STATEMENTS June 30, 1988 ~ FIDUCIARY FUND TYPES The Trust and Agency Funds are used to account for assets held by the City in a trustee or custodial capacity and include the following funds: Pension Trust Funds Fire Pension and Retirement Trust Fund Police Pension and Retirement Trust Fund Expendable Trust Funds Employee Benefits Trust Fund Johnson County Council of Governments Trust Fund Water Revenue Bonds Funded Trust Fund Sewer Revenue Bonds Funded Trust Fund " Sewer General Obligation Bonds Refunding Trust Fund Non -Expendable Trust Fund ~ Perpetual Care Fund Agency Funds Project Green Fund Mayor's Youth Employment Program Fund Library Foundation Fund Eldercraft Shoppe Fund Employee Deferred Compensation Fund ACCOUNT GROUPS The General Fixed Assets Account Group accounts for all City general fixed assets except for property and equipment associated with the operations of proprietary funds. The General Long -Term Debt Account Group accounts for all City general obligation ti and other long-term debt expected to be financed from governmental fund types. „ Basis of Accounting " The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus". All governmental funds, expendable trusts, and agency 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-.ccounting is used for these funds, therefore, 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 enough 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 (if they are collected within 60 days after the year end), intergovernmental and interest earned on investments. Expenditures are recorded as liabilities as incurred, if measurable, except for unmatured interest on general long-term debt. N� '41- �� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 — All proprietary funds, non -expendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus which includes all assets and liabilities associated with the operations of these funds on the balance sheet. The accrual basis of accounting is used for these funds. Therefore, revenue is recognized in the accounting period in which it is earned and expenses are recognized in the period incurred. Cash Management and Invesbnents The City maintains one primary demand deposit account through which the majority of the City's cash resources are processed. Substantially all City 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 cost or amortized cost, except the investments in the Employee Deferred Compensation Fund which are stated at market value. _ Receivables and Revenue Recognition Property taxes receivable are recognized at the time they are levied by the local taxing authority, the County of Johnson, State of Iowa. Property taxes levied for the fiscal year ended June 30, 1988 were certified on March 15, 1987 based on the 1986 assessed valuations establishing a lien date of June 30, 1987. Taxes are payable in two installments, due September 30 and March 31, with a 1% per month penalty for delinquent payment. That portion of the property taxes receivable which is recorded in the governmental fund types and similar trust funds, and which is not available for the current year's operations, is shown as deferred revenue. Special assessments receivable are recorded at the time of the levy, and that portion which is not available for the current year's operations is shown as deferred revenue. Interest revenue on special assessments is recognized when collected. Substantially all other shared revenue is recognized when received by the collecting authority. Federal and state grants, primarily capital grants, are recorded as receivables and the revenue is recognized during the period in which the City fulfills the require- ments for receiving the grant awards. Income from investments in all fund types and accounts and unbilled usage receivables in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in govern- mental fund types), miscellaneous and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. -42 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. Inventories are carried at lower of cost (first - in, first -out) or market. Property and Equipment Property and equipment in the General Fixed Assets Account Group are carried at original cost, or at fair market value when received as donated properties. The City follows the policy of not capitalizing infrastructure fixed assets such as streets, bridges, lighting systems, sidewalks, storm sewers and individual assets with a cost of less than $500. Depreciation is not recorded on the General Fixed Assets Account Group• Property and equipment associated with the proprietary fund types are carried at original cost, or at fair market value when received as donated properties. Generally, assets with an individual cost of less than $500 are not capitalized. Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings and structures 20-50 years Other improvements 15-50 years Vehicles 5-20 years Other equipment 5-30 years In the Mass Transportation Fund, the City restores to retained earnings the depreci- ation on certain assets which have been acquired through federal grants, by a corresponding reduction of the contributed capital. This application is limited to the depreciation on the buses acquired by these grants as the City anticipates that these buses will be replaced by way of additional federal funding. Property which is being acquired under lease purchase contracts has been capitalized in the financial statements in accordance with generally accepted accounting principles. Bond Issuance Costs and Discount Costs incurred by proprietary fund types in connection with the issuance of bonded debt have been recorded as an asset and are being amortized over the term of the related debt. Debt issued at a discount is recorded net of the unamortized discount, with the discount being amortized over the term of the debt. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, retirement or termination. If sick leave is paid upon death, retirement or (except firefighters) termination, the total accumulated hours are paid at one-half of the then effective hourly rate for that employee or the sick leave payout amount as of June 28, 1985, whichever is less. Employees hired on or CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 after June 29, 1985 are not eligible for payment of accumulated sick leave upon termination, death or retirement. For governmental fund types, the amount of accumulated unpaid vacation and sick leave, which is payable from available resources, is recorded as a liability of the respective fund and the remaining amount is recorded in the General Long -Term Debt Account Group. The vested amount of unpaid vacation and sick leave, of proprietary fund type employees, is recorded as a liability of the appropriate fund. Total Columns on Combined Statements The total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation because interfund eliminations have not been made in the aggregation of this data. Budgetary and Legal Appropriation and Amendment Policies The City of Iowa City prepares and adopts an annual program budget, as prescribed by Iowa statutes, for all funds except the Housing Authority Fund, pension trust funds, internal service funds, capital projects funds, and certain activities within the General Fund, Special Revenue Funds, Enterprise Funds, and Expendable Trust Funds which are not required to adopt annual program budgets. 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 program: Community Protection Human Development Home and Community Environment Policy and Administration 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 program level for all funds combined rather than at the individual fund level. It is permissible, therefore, to overspend the budget within a particular fund for a particular program without overspending the legal program budget for the City as a whole. 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 (except the Housing Authority Fund) on a program basis and to compare such program totals to program budgeted totals in order to demonstrate legal compliance with 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 which are not required by state law to be included in the annual program budget. Annual operating budgets are adopted for the internal service funds and for the Housing Authority Fund. For -44- %/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 W capital projects funds a five year capital improvements program is adopted, establishing the first year as the annual capital projects funds budget. These budgets are adopted and amended at the same time and in the same manner as the City's annual program budget. 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 to be 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 that I� amendment are shown in the financial statement presentation. Individual amendments were not material in relation to originally appropriated amounts. Appropriations as + adopted or amended, and not encumbered, lapse at the end of the fiscal year. Statements of budget and actual revenue and expenditures have been presented on a fund type basis and disclosures are presented which compare budget and actual + expenditures on the legal program budget basis for the City as a whole. The statements reflect the City's modified cash basis method of budget preparation. Encumbrances ' The City records encumbrances as reservations of fund balances for governmental fund types, in accordance with generally accepted accounting principles. For budgetary control purposes, encumbrances provide authority to complete those transactions as expenditures during subsequent years. Encumbrances are reflected for all funds in the budgetary statements contained in this report, and expenditures that occurred as a result of a prior year's encumbrance, for which the budget was not amended, have been eliminated. Note 2. Retroactive Restatements The unreserved fund balance of the General Fund has been retroactively restated to $1,898,064, to correct a $507,508 overstatement of the expenditures and accounts payable as of June 30, 1987. The unreserved retained earnings of the Pollution Control Fund has been retro- actively restated to $3,012,691 to correct for an $889,606 understatement of construction in progress and an overstatement of interest income on bond sale proceeds of $1,697,375 and of interest expense of $2,586,981 to record the capitalized interest. The unreserved retained earnings of the Airport Fund has been retroactively restated to $(189,222), to correct for a $73,242 understatement of the construction in progress and overstatement of expenditures as of June 30, 1987. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 — Note 3. Budget Versus Actual Comparisons Unfavorable Expenditure and Transfer Out Variances _ For the year ended June 30, 1988, the Mass Transportation Fund had an unfavorable variance of actual expenditures and transfers out over budgeted expenditures and transfers out. This unfavorable variance does not represent a violation of any law as the legal level of control is the program level for all funds combined rather than the individual fund level. Legal Program Budget Compliance The following schedule compares, by program, the total non -GAAP budgetary basis actual expenditures of legally budgeted funds, with the amended statutory budget for the year ended June 30, 1988, to demonstrate legal compliance with the budget of the City as a whole. Variance ~ Amended Actual Favorable Budget Expenditures (Unfavorable) Community Protection $ 5,829,158 $5,683,219 $145,939 Human Development 3,891,068 3,830,130 60,938 Home and Community Environment 18,411,163 18,062,269 348,894 Policy and Administration 3,888,352 3,379,978 508,374 Transfers Out 11,584,997 10,888,042 696,955 Budgetary Reporting Reconciliation - The City prepares its annual program budgets using a modified cash basis of accounting. For purposes of comparing actual financial data with the budget, the actual information has been converted to the non -GAAP budgetary basis. fl -46- %� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 wA reconciliation of the revenue and and operating transfers in over (under) expenditures and operating transfers out, budgetary (non -GAAP) basis with revenue and other financing sources over (under) expenditures and other financing uses/net w income, GAAP basis is as follows: Special Debt General Revenue Service Enterprise Expendable j, Fund Funds Fund Funds Trust Funds w Revenue and operating transfers in over (under) expenditures and operating transfers f out, budgetary I� (non -GAAP) basis $ 789,697 $(367,873) $ 55,958 $ 1,065,095 $(312,552) Reverse prior years accruals 647,621 (174,680) 36,208 2,290,187 (74,910) Revenue adjustments 588,673 172,451 117,495 (1,015,104) 89,288 Expenditure/expense adjustments (1,415,703) (45,731) (82,357) 249,562 509,840 Encumbrances 86,782 3,238 - - 652,753 - - Revenue and other financing sources over (under) expenditures and other financing uses/net income, GAAP basis, all funds required to adopt legal program budgets $ 697,070 $(412,595) $127,304 $ 3,242,493 $ 211,666 Activities which are not required to adopt legal program budgets 46,589 36,982 - - 892,334 - - Revenue and other financing sources over (under) expenditures and other financing uses/net income, GAAP basisE 743.659 375 613) 127 304 E 4.134.827 LLL1 666 -47- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS _ June 30, 1988 Note 4. Deficit Fund Equities As of June 30, 1988, the Bridge, Street, and Traffic Control Construction Fund has a deficit fund balance of $99,252. This deficit does not represent a violation of any law and results primarily from expenditures in excess of funding provided to date on several individual capital projects. The deficit will be financed in the future from grants, transfers from other City funds, and proceeds from general obligation bonds. As of June 30, 1988, the Water Revenue Bonds Funded Trust Fund has a deficit fund balance of $20,121, the Sewer Revenue Bonds Funded Trust Fund has a deficit fund balance of $69,837, and the Sewer General Obligation Bonds Refunding Trust Fund has a deficit fund balance of $8,107. These deficit fund balances do not represent a violation of any law and occurred because the principal amount of the debt exceeded the cost of the investments purchased to pay the bonds and interest as they mature. The yield on the investments will be greater than the debt service requirements over the remaining life of the bonds. As of June 30, 1988, the Housing Authority Fund has a deficit equity balance of $138,605. This deficit equity balance does not represent a violation of any law and occurred because of depreciation on assets financed by notes issued by the Iowa City Housing Authority to the U.S. Department of Housing and Urban Development. It is anticipated these notes will be forgiven, at which time the accumulated depreci- ation will be transferred to contributed capital generated by the debt forgiveness. Note 5. Restricted Assets and Restricted Retained Earnings Proceeds of Pollution Control fund revenue bonds not yet disbursed, as well as the resources set aside for the repayment of the Pollution Control Fund and the Parking Fund revenue bonds, are classified as restricted assets on the balance sheet because their use is limited by the applicable bond covenants. The sinking reserve account is used to account for resources accumulated for debt service payments over the next twelve months. The debt service reserve account is used to account for resources set aside to make up potential future deficiencies in the sinking reserve account. The improvement reserve account is used to account for resources set aside to meet unexpected contingencies or to fund asset renewals and replacements. -48- I/ W CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 A summary of the transactions of the reserves established by the bond ordinances are as follows: Debt Service Improvement r Parking Sinking Reserve Reserve Reserve Total Beginning Cash Balance June 30, 1987 $ 398,438 $ 651,113 $ 110,260 $ 1,159,811 Receipts 624,800 - 60,000 684,800 Disbursements (625,838) - (31,663) (657,501) Ending Cash Balance June 30, 1988 $ 397.400 651 113 138,597 $ 1,187,110 Interest payable (227,400) Restricted retained earnings, bond i. ordinance reserve E 959,710 Pollution Control !� Beginning Cash Balance June 30, 1987 $ 1,511,275 $3,672,550 $ 726,221 $ 5,910,046 Receipts 3,022,550 - - 1,273,779 4,296,329 Disbursements (3,022,550) - - - - (3,022,550) Ending Cash Balance June 30, 1988 $ 1,511.275 JLkL2 550 $2,000,000 $ 7,183,825 Bond sale proceeds not yet disbursed 30,599,522 Total restricted cash r� and investments 37,783,347 r, Interest receivable on bond sale proceeds not yet disbursed 249,069 Contracts payable from restricted assets (629,008) Interest payable from ' restricted assets (1,511,275) Restricted assets in excess of liabilities payable from M restricted assets $35,892,133 Less assets (liabilities) not required to be included in restricted ^� retained earnings, bond ordinance reserve: Bond sale proceeds not yet disbursed 30,599,522 Interest receivable on bond sale proceeds not yet disbursed 249,069 - Contracts payable from restricted assets (629,008) Restricted retained earnings, bond ordinance reserve $ 5,672.550 -' -49- % CITY OF IOWA CITY, IOWA — NOTES TO FINANCIAL STATEMENTS June 30, 1988 _ Note 6. Cash and Investments The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is presented on the combined balance sheet as "Cash" and "Investments" In addition investments are separately held by several of the City's funds. The deposits and investments of the Funded Bonds Trust Funds and the Refunding Bonds Trust Fund are held separately from those of other City funds. — Deposits At June 30, 1988, the carrying amount of the City's deposits was $34,861,034, ` including certificates of deposit which are classified as investments in the financial statements, medthe bank balance 450,051wascoveredbyfederaldepository insurance3and $4,950,2834. Of the awas nk bcovered - by collateral held by the bank's agent in the City's name. Statutes require collateral pledged for public deposits to be held in the City's name by an indepen- dent depository bank other than the pledging bank, at 110 percent. Investments Iowa statutes authorize the City to invest in obligations of the U.S. Government, - its agencies and instrumentalities, commercial paper rated A-1 by Standard & Poor's Corporation or P-1 by Moody's Commercial Paper Record, bankers' acceptances, and repurchase agreements. The Pension Trust Funds are also authorized to invest in corporate bonds rated AA or better by Standard & Poor's Corporation, Aa or better by Moody's Bond Ratings, or corporate indebtedness as defined by the Code of Iowa, Chapter 978. Upon establishment of the Funded Bonds Trust Funds and the Refunding Bonds Trust Fund, specific purchases of U.S, government obligations were made with the monies deposited into the respective trust funds, in accordance with the respective trust agreements. The City's investments are categorized to give an indication of the level of risk assumed at year end. The categories are defined as: (1) Insured or registered in the City's name, or securities held by the City or its agent in the City' name. (2) Uninsured and unregistered securities held by the counterparty's trust department or agent in the City's name. (3) Uninsured and unregistered securities held by the counterparty or by its trust department or agent but not in the City's name. -50- CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 The following is a summary of the City's investments at year end: Category Carrying Market 1 2 3 Amount Value U.S. Government securities $22,695,380 $- Annuity contracts 1 175 000 - - - - Total investments 23 870 380 Investments in: Iowa Public Authority Investment $22,695,380 $22,326,296 11175,000 1 175 000 23,870,380 23,501,296 Trust 10,100,000 10,100,000 Employee Deferred Compensation 1 082 382 1 082 382 35 052 762 34 683678 The Iowa Public Authority Investment Trust and Employee Deferred Compensation above, represent investments in pools managed by others. Therefore, these invest- ments are not categorized because they are not evidenced by securities that exist in physical or book entry form. The City's investments during the year did not vary substantially from those at year end in amounts or level of risk. -51- '7/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 - Note 7. Changes in General Fixed Assets _ During the year ended June 30, 1988, general fixed asset acquisitions and disposals _ by type and funding source were as follows: Changes by Type and Funding Source Balance Acquisitions Balance June 30. 1987 and Transfers Disposals June 30, 1988 By type: Land $ 3,078,370 $ 83,671 $208,800 $ 2,953,241 Buildings and structures 7,383,771 42,449 - - 7,426,220 Other improvements 499,562 - - - - 499,562 Equipment and vehicles 2,450,855 733,180 169,097 3,014,938 " Construction in progress 6393 14 044.951 3 558,,568 44 417 868868 377 97 4.190,961 E18.084.922 - By funding source: General Fund $ 4,220,226 $ 326,045 $128,779 $ 4,417,492 Special Revenue Funds 1,501,848 451,804 244,759 1,708,893 Gifts 100,912 33,309 3,609 130,612 Capital Projects - Funds: General - obligation bond proceeds 5,683,670 3,092,894 750 8,775,814 Other governments 2 538,295 14 044 95114217 13,816 868 317 97 3,052,111 1 18 08 .922 _ -52- 7/ - CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 As of June 30, 1988, the composition of general fixed assets by type and function was as follows: M -53- 71 Composition by Type and Function Improve- ments Construc- Buildings Other Equipment tion and Than and in Land Structures Buildings Vehicles Progress Total Community Protection: Police protection Fire protection $ - - $ 48,720 $ - 41,581 323,391 - - $ 543,997 - 918,386 $ 2,480 $ 595,197 - - „ Inspection 1,283,358 services Total Community - - 5,271 - - 11,293 - - 16,564 Protection 41,581 377,382 $ $1,473,676 2,480 1,895,119 Home and Communitv Environment: Physical environment $ 12,812 $ 13,450 $131,717 $ 14,681 $ 11,951 $ 184,611 Community development 1,778,238 5,816 34,097 59,352 - - 1,877,503 Streets and traffic engineering - - 167,002 5,046 64,268 - - 236,316 " Total Home and Community y Environment $1,791,050 186,268 $170,860 138,301 11,951 2,298,430 Human Development: " Parks Recreation $ 899,610 $ 552,501 $315,022 $ 64,121 $4,151,992 $ 5,983,246 Library - - 155,000 842,110 11,189 3,416,049 - - 91,000 674,331 23,578 967,877 - - 4,245,380 Senior Center - - 1,202,554 11850 110,081 - - 1,314,485 Total Human " Development $1,054,610 $6,013,214 $328,061 939,533 $4,175,570 $12,510,988 Policy and - Administration 66,000 849,356 641 463,428 960 1 380 385 Total General _ Fixed Assets 2 953 241J7,426,220 $499,562 $4,190,961 18 084 922 M -53- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 During the year ended June 30, 1988, general fixed asset acquisitions and disposals by function were as follows: Changes by Function Acquisitions Balance and Balance June 30, 1987 Transfers Disposals June 30, 1988 Communitv Protection: Police protection $ 574,612 $ 127,903 $107,318 $ 595,197 Fire protection 847,423 461,027 25,092 1,283,358 Inspection services Total Community Protection 151422 1 437 4_57 r�142 590 0_72 132 410 816 _564 1,895,119 Home and Community Environment: Physical environment $ 175,804 $ 8,807 $ - - $ 184,611 Community development 2,081,217 6,709 210,423 1,877,503 Streets and traffic engineering 219,848 16,468 - - 2-3-6-,-316- 36,316Total TotalHome and Community Environment $ 2,476,869 31,984 $210,423 $ 2,298,430 Human Development: Parks $ 2,355,020 $3,630,036 $ 1,810 $ 5,983,246 Recreation 920,782 47,095 - - 967,877 Library 4,229,599 16,531 750 4,245,380 Senior Center Total Human Development 1,306,288 8 811 689 T-8,811,689 X806 53,705,468 6 169 3 1 1 485 12 510 988 Policy and Administration $ 1,318,936 90,344 28,895 1,380,385 Total General Fixed Assets $14.044.951 jjaL7 868 377 897 518.084.922 -54- %� W CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Note 8. Urban Development Action Grant Loan Receivable The City was awarded an Urban Development Action Grant in fiscal year 1984 from the U.S. Department of Housing and Urban Development, in the amount of $2,081,000, for the purpose of loaning the proceeds to the developer of a downtown hotel project which was completed in September, 1984. During the first two years of the hotel's operations, interest was forgiven on the loan and during the third and fourth years, interest at 9% has been accrued and added to the principal balance. Beginning November, 1988, the developer will make equal monthly payments, including interest at 8%, with final payment due July, 2009 (25 years from first grant disbursement). A first mortgage exists on the hotel property for the developer's commercial development revenue bond financing and the Urban Development Action Grant loan is w collateralized by a second mortgage. Although the hotel is privately managed, the loan agreement provides for 25% participation in any net cash flow from operations or net proceeds from the sale of the hotel to be paid to the City. In December 1986, the developer refinanced the senior mortgage and a lump sum payment of $150,000 was made against the Urban Development Action Grant loan as required by the mortgage agreement. Note 9. Pension and Retirement Systems The City maintains and contributes to two single -employer, defined benefit pension and retirement systems. The City also contributes to the Iowa Public Employees Retirement System (IPERS) which is a cost-sharing, multiple -employer pension plan administered by the State of Iowa. All of the systems are contributory and substan- tially all permanent employees must participate in one of the systems. Police and Fire Pension and Retirement Systems Plan description and provisions: The City of Iowa City is the administrator of two single -employer defined benefit public employee retirement systems (PERS) established to provide pension benefits for employees of the Iowa City Police and Fire Departments and are regulated by Iowa statutes. The City acts as custodian for the assets of the Police and Fire Pension and Retirement Systems. They are considered part of the City of Iowa City financial reporting entity and are included in the City's comprehensive annual financial report as pension trust funds. Each of the PERS is administered by a local board, which has three members appointed by the City Council, the City Treasurer, the chief officers of the respective department, and two members elected by the participating members of each department. -55- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 At June 30, 1988, Police and Fire Pension and Retirement Systems membership con- sisted of: Pension and retirement benefits for the local systems are mandated by Iowa Statutes Chapters 410 and 411. The Iowa City Police and Fire Pension and Retirement Systems provide retirement as well as death and disability benefits. Benefits begin vesting at 15 years with full benefits after 22 years of credited service. Employees who retire at or after age 55 with 22 years of credited service are entitled to full annual retirement benefits, payable monthly for life, in an amount equal to 50 percent of their average final compensation for the three years of highest compensa- tion. Members having served between 15 and 22 years, upon termination of employment shall receive at age 55 a prorated benefit based on the number of years served. A member with five or more years credited service who becomes totally and permanently disabled from other than duty -related causes shall receive an ordinary disability retirement allowance equal to 50% of the member's average final compensation. This percentage is lowered to 25% if the member has under five years of service. A member who becomes totally and permanently disabled from duty -related causes shall receive an accidental disability retirement allowance equal to 66.7% of the member's average final compensation. Upon the death of a member caused by performance of duty, the member's spouse, children or dependent parents shall be paid 50% of the member's average final compensation. If a member dies in or out of service after 15 or more years of service, the lump sum amount to be provided is equal to 50% of compensation earnable by the member during the year preceding death or in the last year of service. There is an option whereby the beneficiary may receive a pension of 25% of the member's average final compensation or $75 per month. There shall also be paid for each child of a member a monthly pension equal to 6% of the monthly earnable compensation paid to an active member at the highest grade until age 18 or 22 if applicable. On January I and July 1 of each year, pensions payable to members or beneficiaries, except retirees with less than 22 years of service, are readjusted by a percentage of the increase in monthly earnable compensation of active members at the same rank and salary scale position held by the member at retirement or death. Plan investments: The Police and Fire Pension and Retirement Systems' investments are managed with the pooled cash concept. This practice provides larger investment options with poten- tially greater returns. Fixed-income securities are reported at amortized cost. ` -56- Police Fire Total Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them Current employees: Vested 17 27 44 Nonvested 36 58 Total U 4 i Pension and retirement benefits for the local systems are mandated by Iowa Statutes Chapters 410 and 411. The Iowa City Police and Fire Pension and Retirement Systems provide retirement as well as death and disability benefits. Benefits begin vesting at 15 years with full benefits after 22 years of credited service. Employees who retire at or after age 55 with 22 years of credited service are entitled to full annual retirement benefits, payable monthly for life, in an amount equal to 50 percent of their average final compensation for the three years of highest compensa- tion. Members having served between 15 and 22 years, upon termination of employment shall receive at age 55 a prorated benefit based on the number of years served. A member with five or more years credited service who becomes totally and permanently disabled from other than duty -related causes shall receive an ordinary disability retirement allowance equal to 50% of the member's average final compensation. This percentage is lowered to 25% if the member has under five years of service. A member who becomes totally and permanently disabled from duty -related causes shall receive an accidental disability retirement allowance equal to 66.7% of the member's average final compensation. Upon the death of a member caused by performance of duty, the member's spouse, children or dependent parents shall be paid 50% of the member's average final compensation. If a member dies in or out of service after 15 or more years of service, the lump sum amount to be provided is equal to 50% of compensation earnable by the member during the year preceding death or in the last year of service. There is an option whereby the beneficiary may receive a pension of 25% of the member's average final compensation or $75 per month. There shall also be paid for each child of a member a monthly pension equal to 6% of the monthly earnable compensation paid to an active member at the highest grade until age 18 or 22 if applicable. On January I and July 1 of each year, pensions payable to members or beneficiaries, except retirees with less than 22 years of service, are readjusted by a percentage of the increase in monthly earnable compensation of active members at the same rank and salary scale position held by the member at retirement or death. Plan investments: The Police and Fire Pension and Retirement Systems' investments are managed with the pooled cash concept. This practice provides larger investment options with poten- tially greater returns. Fixed-income securities are reported at amortized cost. ` -56- i CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Investment income is recognized as earned. Gains and losses on sales and exchanges of fixed-income securities are recognized on the transaction date. �. Market values compared to actual costs as of June 30, 1988, for the pooled invest- ment portfolio of the Police and Fire Pension and Retirement Systems are as follows: Market Value Cost Fire $7,151,567 $7,289,638 Police $6,444,568 $6,587,649 A summary of the Police and Fire Pension and Retirement Systems' pooled investment portfolio as of June 30, 1988, is as follows: Investment Type Cost Demand deposit account $ 1,000,675 Certificates of deposit 1,120,192 U.S: Government securities 10,581,420 Annuity contracts 1 175 000 13 877 Mi Basis for Determination of Actuarial Present Value: For financial reporting purposes, the actuarial present value of credited projected benefits has been computed and consists of: (a) the actuarial present value of projected benefits payable to current retirants and beneficiaries, (b) the actuarial present value of projected benefits payable to terminated vested participants, and (c) the actuarial present value of credited projected benefits for active participants, giving effect to estimated salary increases to date of retire- ment. The portion assumed to be credited is the portion represented by the ratio of: (a) the number of years covered service rendered as of the date of the valuation to ~ (b) the total covered service which will have been rendered as of the expected date of retirement. The actuarial present value of credited projected benefits and the unfunded portion thereof reported in these financial statements differ from the actuarial accrued liability and the unfunded portion thereof developed for funding requirements determination as different actuarial cost methods are used for the two purposes. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and interest income, estimated to be payable in the future as a result of employee -57- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS _ June 30, 1988 service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the Police and Fire Pension and Retirement Systems funding status on a going -concern basis, assess progress made in — accumulating sufficient assets to pay benefits when due, and make comparisons among pension and retirement systems. The measure is independent of the actuarial funding method used to determine contributions. The pension benefit obligation was determined as part of the annual actuarial valuation completed at June 30, 1988. Significant actuarial assumptions used (in the actuarial valuations as of June 30, 1988, 1987 and 1986) include: — A. Interest 6% per year, compounded annually B. Mortality 1. Pre -Retirement Ordinary 1969-71 United States Lives Census Table -58- �� total population 2. Pre -Retirement Accidental 150% of the 1959 Accidental Death Benefits Table — 3. Post -Retirement Male UP -1984 Table Set Forward 1 year (Disability Lives Set Forward 6 years) — 4. Post -Retirement Female UP -1984 Table Set Back 4 years C. Disability — 1. Ordinary 80% of the 1952 Disability Study (Benefit 1 - Period 2) 2. Accidental 120% of the 1952 Disability Study (Benefit 1 - Period 2) D. Withdrawals 3% at employment, grading down to 0% -• after 15 years of service E. Salary Increases 4% per year F. Annual Pension Increases 2% per year (one-half of the salary scale increase) -58- �� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 A summary of the actuarial valuations for financial reporting purposes are as follows: -59- %/ Fire Date of actuarial valuation June 30, 1988 June 30, 1987 June 30, 1986 Net assets available Actuarial present value of 7,688,570 6,860,938 5 772 640 projected benefits payable to current retirants, beneficiaries, and terminated vested participants Actuarial present value of $ 5,347,802 $ 4,588,907 $ 3,854,387 credited projected benefits for active participants Total pension benefit obligation Pension benefit 3 955 154 9 302 956 3 738 231 8 327 1387 3 439 320 293 707 obligation (over) net assets available Increase in total pension $(1,614,386) LIAO 200) $(1.521,067) benefit obligation from last valuation Percentage of net assets available 975 818 1 033 431 L 40 581 to total pension benefit obliga- tion Active member payroll Percentage 82.6% $ 1,281,742 82.4% $ 1,250,645 79.1% $ 1,223,839 of unfunded pension benefit obligation to active member payroll Contributions as a percentage of 126.0% 117.2% 124.3% active member payroll City State 29.54% 29.54% 29.54% Member 3.66% 3.10% 3.66% 3.10% 3.66% Member contributions City contributions $ 39,734 $ 38,770 3.10% $ 37,939 State contributions $ 388,454 $ 47,141 388,579 $ 381,251 42,245 $ 46,785 -59- %/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Date of actuarial valuation Net assets available Actuarial present value of projected benefits payable to current retirants, beneficiaries, and terminated vested participants Actuarial present value of credited projected benefits for active participants Total pension benefit obligation Pension benefit obligation (over) under net assets available Increase in total pension benefit obligation from last valuation Percentage of net assets available to total pension benefit obliga- tion Active member payroll Percentage of unfunded, (assets in excess of), pension benefit obligation to active member payroll Contributions as a percentage of active member payroll City State Member Member contributions City contributions State contributions Funding Policy: Police June 30, 1988 June 30, 1987 June 30, 1986 $ 6,948,150 $ 6,169,600 $ 5,186,260 $ 2,867,545 $ 2,527,819 $ 2,117,725 4 133 466 3 480 910 2 939 582 7 001 011 6 008 729 5 057 307 $ (52.861)S 160.871 $128.953 $ 992.282 1 951.422 $ 581.407 99.2% 102.7% 102.5% $ 1,560,548 $ 1,488,839 $ 1,434,000 3.4% (10.8%) (9.0%) 17.69% 17.69% 17.69% 2.65% 2.65% 2.65% 3.10% 3.10% 3.10% $ 48,377 $ 46,154 $ 44,454 $ 276,014 $ 262,872 $ 253,604 $ 40,806 $ 37,102 $ 40,186 The Police and Fire Pension and Retirement Systems funding policy provides for periodic employer contributions at actuarially determined rates, expressed as per- centages of annual covered payroll, to accumulate sufficient assets to pay benefits when due. Covered employees are required, by statute, to contribute 3.1% of their salary to the Police and Fire Pension Retirement Systems, The State of Iowa contributes to the systems to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. The City of Iowa City is required by statute to contribute the remaining amounts necessary to finance the systems. These rates are based upon an actuarial cost method stipulated by Iowa statutes, which is essentially an aggregate cost method with no provision for any unfunded past service liability. Benefit and contribution provisions are established by state law and may be amended only by the Iowa legislature. -60- 7/ — CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Contributions totaling $752,579 ($664,468 employer and $88,111 employee) were made in accordance with rate contribution requirements determined through an actuarial valuation performed at June 30, 1985. Ten-year historical trend information designed to provide information about the City of Iowa City Police and Fire Pension and Retirement Systems' progress made in accumulating sufficient assets to pay benefits when due is presented in the other supplementary information section. Iowa Public Employees Retirement System 1y Plan description and provisions: it Substantially all City permanent employees, not covered by one of the local retire- ment systems, are required to participate in the Iowa Public Employees Retirement w System (IPERS), a cost sharing, multiple -employers public retirement system administered by the State of Iowa. There are approximately 128,000 contributing employees participating in the plan. The City's payroll for employees covered by IPERS for the year ended June 30, 1988, was $7,268,193; the City's total payroll was it $11,542,004. Employees, upon termination of service after four years or reaching age 55 with four ' (4) years of credited service, are entitled to a retirement benefit based on a It monthly formula set by the statutes. Final -average salary is the employee's average salary over the past three years of credited service. Benefits fully vest on reaching four years of service. Vested employees may retire at or after age 55 and receive reduced retirement benefits. Any member who terminates employment before retirement is entitled to a refund of their contributions plus interest. IPERS also provides death and disability benefits which are established by statute. Upon death of an active or vested member, both the member's and the employer's contributions, " plus interest, are payable to the beneficiary. ' The Iowa legislature has established required contributions on a maximum annual salary of $24,000 consisting of 3.7% for employees and 5.75% for employers. The contributions to IPERS for the year ended June 30, 1988, were $686,844 ($417,915 employer and $268,929 employees). All the City's contributions for the year ended June 30, 1988, which represent approximately .33% of the total employers' contribu- tions, have been paid within 30 days after year end. [PERS statewide membership per the most recently published report dated June 30, " 1987, consisted of: Retirees currently receiving benefits 44.049 M Current contributing employees Vested 17,263 Non -vested 110.965 Total contributing employees There were 365 (.3% of the June 30, 1987, statewide membership) City employees " contributing to IPERS as of June 30, 1988. -61- ,l/ CITY OF IOWA CITY, IOWA y NOTES TO FINANCIAL STATEMENTS June 30, 1988 " Funding information: IPERS is a contributory system wherein all credited benefits are funded with sufficient contributions. Unlike Social Security, no liability is assessed against future IPERS contributors for payment of present IPERS benefits. An actuarial valuation is performed annually. The actuarial report as of June 30, 1987, reflects the IPERS law as of that time. In 1967, the Iowa General Assembly enacted changes ` which were particularly important because of their effect on the method of funding the plan. In 1975, changes included a revision in the retirement benefit formula, the introduction of a final average salary concept for determining the retirement benefits, an increase in the maximum covered salary, an increase in retirees' benefits, and an increase in the employers' contribution rate. Those changes were effective on January 1, 1976. Since that time there have been increases in the employers' and employees' contributions rates, early retirement reductions were r liberalized and various retirees have had benefit increases. The benefit formula has been gradually increased from 40% to 50% effective July 1, 1982. Improvements enacted in 1986 were: the covered wage base, $22,000 at that time, will increase by $1,000 each year beginning January 1, 1987 to a limit of $40,000 beginning January 1, 2004; final average salary, on which benefits are based, has been reduced from a five year to a three year average; early retirement has been further liberalized (a person with 30 or more years of service can retire at age 62 or above with no benefit reduction). Contributions to the System and benefits paid to retirees and beneficiaries have increased as would have been expected. Member and employer contributions were $197,264,426 for the year ended June 30, 1987, an increase of $5,213,057 over the previous year. Benefits paid to retirees and beneficiaries were $128,002,002 for the year ended June 30, 1987, an increase of $11,829,172 over the previous year. The actuarial assumptions used in the valuation were the same as those used in the previous year. The accrued liability, which represents the present value of future costs attributable to prior service as of June 30, 1987, was $92,191,837, a decrease of approximately $5,318,951 from the prior year. That decrease resulted primarily from a decrease in the number of members with prior service. To liquidate the accrued liability (excluding the 1978 benefit increase liability) with the annual payments commencing June 30, 1988, and ending June 30, 1998, the needed annual payment was $10,451,400. The 20 -year funding payment on the liabilities attributable to the 1978 increases in retirees' benefits was $4,692,442. The June 30, 1987 valuation showed that the total 1987-1988 fiscal year cost of benefits under the System was $163,073,780 or 7.81% of covered payroll. That percentage was .39% lower than the prior year, and was due primarily to actuarial gains, the largest source of which was investment gains. The 7.81% of covered payroll contribution requirement was 1.64% less than the basic 9.45% of combined payroll contributions now being made by the employees and their employers. The "pension benefit obligation," which is the actuarial present value of credited projected benefits, is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, interest and any step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the PERS CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 funding status on a going concern basis and assess progress made in accumulating sufficient assets to pay benefits when due. The IPERS accrued pension benefit obligation at June 30, 1988, as determined by the actuarial valuation, is $3,827,019,804. IPERS net assets available for benefits at June 30, 1988, is $4,027,537,966, leaving no unfunded portion of the pension benefit obligation. Total contributions by all participating entities for the year ended June 30, 1988, was $209,772,826. Ten-year historical trend information showing IPERS' progress in accumulating sufficient assets to pay benefits when due is presented in IPERS June 30, 1987, annual financial report. Note 10. Deferred Compensation Agreement NThe City of Iowa City offers its employees deferred compensation plans administered by the International City Manager's Association, Washington National and AETNA Life Insurance Companies created in accordance with the provisions of Internal Revenue „ Code Section 457. The plans, available to all permanent administrative and confi- dential City employees, permit them to defer a portion of their salary until future y years. The deferred compensation and accumulated earnings thereon, totaling $1,082,382 at June 30, 1988, is not available to employees until termination, retirement, death, or unforeseeable emergency. The plans are fully funded by the City as the deferred compensation is earned by the employees. Plan assets, and the related liability to employees, are accounted for in the Employees Deferred Compensation Fund, an agency fund, at the current market value of the investments. All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are, until paid or made available to the employee or other beneficiary, solely the property and rights of the City and are not restricted to the provision of benefits under the plans. Plan assets are subject to the claims of the City's general creditors. Participants' rights under the plans are equal to + those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plans, but does have the duty of due care that would be required of „ an ordinary prudent investor. The City believes that it is unlikely that it will ..ea rha aeeats to satisfv the claims of general creditors in the future. Note 11. Bonded and Other Long-term Debt M• General Obligation Bonds During the year ended June 30, 1988, $1,260,000 of general obligation bonds were sold by the City. Net proceeds from the sale totaled $1,249,408 with discount and bond issuance costs of $10,836. The proceeds of these bonds were used for the 1987- 88 capital improvements program. Various issues of general obligation bonds, totaling $16,900,000, are outstanding as of June 30, 1988. The bonds have interest rates ranging from 4.40% to 8.80% and -63- %/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 mature in varying annual amounts ranging from $125,000 to $500,000 per issue, with the final maturities due in the year ending June 30, 2002. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the _. enterprise funds, and refunded portions recorded in the expendable trust 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 which are expected to be paid by the enterprise funds is included as liabilities of those funds. Obligations Under Capital Lease Equipment with a cost of $150,828 is being acquired under a capital lease. The June 30, 1988 balance of $96,724 is due in monthly installments of $2,987, including interest at 10.77%, with the final installment due in May, 1991. Revenue Bonds As of June 30, 1988, the following unmatured revenue bond issues are outstanding: Parking Pollution Control Original issue amount $5,370,000 $38,950,000 Interest rates 5.50% to 10% 7.6% to 7.8% Annual maturities $170,000 to $625,000 to $515,000 $3,400,000 The revenue bond ordinances required that pollution control and parking system revenue be set aside into separate and special accounts as it is received. The use and the amounts to be included in the accounts is as follows: Account (a) Revenue Bond and Interest Sinking Reserve (b) Revenue Debt Service Reserve (c) Improvement Reserve Amount Amount sufficient to pay current bond and interest maturities. 25% of the amount required to be deposited in the Revenue Bond and Interest Sinking Reserve until the reserve balance equals the maximum debt service due on the bonds in any succeeding fiscal year. $20,000 per month to a maximum reserve balance of $2,000,000, for pollution control bonds and $5,000 per month to a maximum reserve balance of $300,000 for parking bonds. -64- IA CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Funded Revenue Bonds Funded Water Revenue Bonds: On June 30, 1986, the City created an irrevocable self-administered trust, the Water Revenue Bond Funded Trust. This trust was established when $652,894 from the Water Fund was converted to U.S. government securities for the express purpose of paying the principal and interest on the outstanding Water Revenue Bond Issues, Series 1961 and 1967 which totaled $706,000. At the same time, a residual equity transfer was made to the Water Fund, in the amount of $59,110, which increased the contributed capital of the Water Fund. The bonds have interest rates ranging from 3.5% to 4.2% and mature in varying annual amounts ranging from $35,000 to $159,000, with final maturities due in the year ending June 30, 1993. The annual debt service requirements of the bonds are as follows: Year Ending June 30 1989 1990 1991 1992 1993 f, Funded Sewer Revenue Bonds: Principal $120,000 159,000 70,000 75,000 35,000 Interest $15,737 10,246 5,755 2,922 735 i� On July 1, 1986, the City created an irrevocable, self-administered trust, the Sewer Revenue Bond Funded Trust. This trust was established when $694,361 from the Pollution Control Fund was converted into U.S. government securities for the express purpose of paying the principal and interest on the outstanding bonds from Sewer Revenue Bond Issues, Series 1965 and 1966 which totaled $800,000. At the same time, a residual equity transfer was made in the amount of $105,639 to the Pollution Control Fund, which increased the contributed capital of the Pollution ' Control Fund. The bonds have interest rates ranging from 3.25% to 3.75% and mature in varying annual amounts ranging from $75,000 to $100,000 with final maturities due in the year ending June 30, 1995. The annual debt service require- ments of the bonds are as follows: Year Ending June 30 Principal Interest 1989 $ 75,000 $23,015 1990 75,000 20,420 1991 100,000 17,825 1992 100,000 14,275 1993 100,000 10,725 1994 100,000 7,150 _ 1995 100,000 3,575 Special Assessment Bonds As of June 30, 1988, $120,000 of unmatured special assessment bonds are outstanding. The annual maturities are $40,000, and the bonds have a 10% interest rate. The -65- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 special assessment bonds were issued to finance new street and sewer construction and are funded by the special assessments collections. Refunding of Parking Revenue Bonds _ The 1978 Series Parking Facility Revenue Bonds with a total outstanding balance of $4,730,000 were refunded in November 1985, by the issuance of $3,795,000 1985 Series Parking System Revenue Bonds. An irrevocable trust was created with an unrelated third party whereby the proceeds from the 1985 Series Bonds were converted into U.S. government securities. These securities were placed in an escrow account for the express purpose of paying the principal and interest on the refunded bonds as they come due. For financial reporting purposes, the debt has been defeased and the liability has therefore been removed from the Parking Fund. As of June 30, 1988, the amount of defeased debt outstanding but removed from the Parking Fund amounted to $4,440,000. Partial Refunding of Tax -Abated General Obligation Bonds The portions of the 1978, 1979, and 1980 Series General Obligation Bonds, which were recorded as a liability of the Pollution Control Fund, with a total outstanding r balance of $1,730,918, were refunded in August 1986 by the issuance of $38,950,000 1986 Series Sewer Revenue Bonds, of which $1,721,267 was applied to the refunding. An irrevocable self-administered trust was created whereby the proceeds from the 1986 Series Bonds were converted into U.S. government securities for the express purpose of paying the principal and interest on the refunded bonds as they come due. At the same time, a residual equity transfer was made to the Pollution Control Fund, which increased that fund's contributed capital in the amount of $2,167. The annual debt service requirements of the refunded bonds are as follows: Year Ending Issue 1978 Issue 1979 Issue 1980 June 30 Principal Interest Principal Interest Principal Interest 1989 $135,330 $6,496 $40,806 $8,666 $120,000 $54,840 1990 40,806 6,498 240,000 47,280 1991 40,805 4,330 240,000 31,680 ~ 1992 40,805 2,163 240,000 15,840 Housing Authority Notes As of June 30, 1988, $3,004,494 of housing authority project notes are outstanding. These notes were issued by the Iowa City Housing Authority to the U.S. Department of Housing and Urban Development (HUD) to finance the construction costs of the City's ` public housing projects. The notes bear interest at 6.625% and 10%. All reductions of the notes payable have resulted from contribution debt service application agreements with HUD. No payments will be made on these notes since it is antici- pated the debt will be forgiven. -66- 7/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 wSummary of Bond and Other Long -Term Debt Transactions A summary of the changes in long-term debt, by type, for the year ended June 30, 1988, is as follows: I Increases Reductions u Balance in Long -Term in Long -Term Balance �^ June 30, 1987 Debt Debt June 30, 1988 'a Bonded Debt 1J General Obligation Issue 1977 $ 650,000 $ - - $ 305,000 $ 345,000 Issue 1978 I' Original issue 329,340 - - 164,670 164,670 Amount refunded 270,660 - - 135,330 135,330 Issue 1979 'z Original issue 2,295,972 _ _ 426,963 1,869,009 is Amount refunded 204,028 38,037 165,991 Issue 1980 Is Original issue 685,000 _ _ 120,000 565,000 Is Amount refunded 1,020,000 180,000 840,000 - - Issue 1982 2,000,000 250,000 1,750,000 Issue 1985 4,250,000 - - 450,000 3,800,000 is Issue 1986 6,350,000 - - 345,000 6,005,000 Is Issue 1988 - - 1,260,000 - - 1,260,000 Total general l'i obligation $18,055,000 $1,260,000 $2,415,000 $16,900,000 1 Revenue I+ Parking $ 5,310,000 $ - - $ 165,000 $ 5,145,000 Pollution Control 38,950,000 - - - 38,950,000 Less bond discount Parking (86,747) - - (5,684) (81,063) I•� pSubtotal ollutionControl 43,427,107) 129,471) 43,297,636) Funded Revenue Is Pollution Control 725,000 _ _ 75,000 650,000 r Water 6� 1 461,000 Total revenue 44 788 107 379.471 44.408,636 Special Assessment 160 000 40,000 120 000 Total bonded debt 63 003 107 1 260 000 2 834 471 61 428 636 ' Other Debt Employee vested benefits Long-term vacation $ 395,305 $ 637,344 $ 638,153 $ 394,496 Long-term sick leave 798,568 110,018 155,621 752,965 Total employee vested benefits $ 1,193,873 $ 747,362 $ 793,774 $ 1,147,461 Housing Authority Notes 3,004,494 - - - - 3,004,494 Capital leases 156 124 - 59 400 96 724 Total other debt 4 354 491 747 362 853 174 4 248 679 Total long-term debt $2,007,362 53,687,645 565,677,315 t "" -67- '%� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Summary of Principal and Interest Maturities Annual debt service requirements to service all outstanding bonded debt, other than the funded water revenue bonds and the funded sewer revenue bonds, as of June 30, 1988 are as follows: -68- %� General Obligation Obligations Under Year Ending Bonds Capital Leases June 30 Principal Interest Principal Interest Matured and unpaid $ 65,000 $ 17,358 $ - - S - - 1989 2,425,000 1,131,720 30,019 5,820 1990 2,200,000 970,340 32,189 3,650 1991 2,225,000 833,265 34,516 1,323 1992 2,225,000 691,540 1993 1,350,000 546,265 1994-1998 4,635,000 1,434,375 1999-2002 1,775,000 321,600 X16.900,000 � 596.72.4 Sj�� Special Assessment Revenue Year Ending Bonds Bonds June 30 Principal Interest Principal Interest 1989 $ 40,000 $12,000 S 170,000 $ 3,470,938 1990 40,000 8,000 830,000 3,432,963 1991 40,000 4,000 820,000 3,370,112 1992 - - - - 945,000 3,302,645 1993 - - - - 1,010,000 3,227,707 1994-1998 - - - - 6,310,000 14,778,300 1999-2003 - - - - 8,995,000 11,721,979 2004-2008 - - - - 10,340,000 7,796,375 2009-2013 5120.000 524.000 14,675,000 3,037,125 544,095.000 554,138,144 Debt Legal Compliance Legal Debt Margin: As of June 30, 1988, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property $1,235,467,305 Utilities 74,919,566 Total valuation S1.310,386.871 Debt limit, 5% of total assessed valuation $65,519,344 Debt applicable to debt limit 16,996,724 Legal debt margin $48,522,620 -68- %� M CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 N. Note 12. Contractual Commitments The total outstanding contractual commitments for construction projects as of June 30, 1988, amount to $24,440,193 in the Pollution Control Fund for improvements to the current wastewater treatment facility and construction of an additional plant. Note 13. Contingent Liabilities i� In fiscal year 1988, the City purchased property and liability insurance under a H, program which provides for a $50,000 self-insured retention per occurrence, with an annual aggregate retention of $475,000. The insurance provides coverage for claims in excess of $50,000 per occurrence to a maximum of $5,000,000 annual aggregate of claims made. The operating funds make annual deposits to the Loss Reserve Fund IJ which is accounted for as an Internal Service Fund. This loss reserve is available 1I to cover the self-insured retention amounts and uninsured losses. i., The City is partially self-insuring, 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 $50,000 per employee i� with an aggregate stop -loss of approximately $670,000. The operating funds are charged premiums by a Health Insurance Reserve which is accounted for in the General It Fund. The City reimburses a health insurance provider for actual medical costs incurred plus a claims processing fee from the Health Insurance Reserve. The reserve is available to cover the cost of incurred but not paid claims. Permanent City employees accumulate sick leave hours for subsequent use. The City's i, approximate maximum contingent liability for non -vested sick leave benefits as of it June 30, 1988, is as follows: Governmental fund types $1,481,296 ' Proprietary fund types 442.709 Total $1.924.005 Various claims and lawsuits were on file against the City as of June 30, 1988. It is estimated that the potential settlements against the City, not covered by insurance, would not materially affect the financial position of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgen+nts against the City. -69- 7/ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Note 14. Interfund Receivables and Payables As of June 30, 1988, interfund receivables and payables were as follows: -70- 'y1 Pollution Due To: General Control Sanitation Due From: General 5 - - $ $218,252 Community Development Block Grant 22,508 _ Other Shared Revenue and Grants Bridge, Street and Traffic Control Construction 26,725 Other Construction 27,045 2,480 Parking 148,500 Pollution Control 373 Water - - _ Sanitation - 708 Airport Mass Transportation _ Equipment Maintenance Perpetual Care 788 - Johnson County Council of Governments Mayor's Youth Employment Program Eldercraft Shoppe Total 5225.666 f221.105 -70- 'y1 I w CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 -71- 71 Sewer General Mass Equipment Central Perpetual Obligation Bonds Transportation Maintenance Supply Care Refunding Trust Total $23,544 $ 45,794 $8,012 $18,835 $ $314,437 - - 183 434 - - 23,125 152 597 749 - 26,725 - - - 29,525 1,318 120 149,938 3,007 62 4,423 7,865 6,153 113 - - 6,266 25,528 42 - - - - 26,278 1,202 15 - - 1,217 35,109 126 - - 35,235 - 22 - - 22 - - - - 788 28 204 - - 232 - 52 - - 52 - 6 6 523.544 5118.474 $9,805 $18.835 54.423 -71- 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1988 Note 15. Segment Information for Enterprise Funds Control Construction The City maintains seven enterprise primarily from proceeds of user charges. funds. These funds are set Segment information up to operate ended June 30, 1988, is as follows: Airport as of and for the year 662,534 Perpetual Care Pollution Total 3 171 872 Results of operations: Parking Control Water Sanitation Operating revenue Depreciation $ 1,943,099 $ 4,269,195 $2,330,853 $1,45 Operating income (loss) 298,018 713,734 395,731 2,890,436 216,598 391,470 99,925 380,851 Gain (loss) on disposal of fixed assets - - - - (354) Operating grants Operating transfers in (out), net (187,235) Interest expense 458,480 - - 88,096 - Net income (loss) 158,501 3,405,967 363,272 442,972 Financial position: Total assets Net working capital 10,426,422 1,063,130 60,264,875 37,242,643 6,777,435 1,152,215 1,570,584 1,098,127 Property and equipment, additions 22,889 2,799,533 182,105 - - Long-term debt 5,063,937 38,233,699 1,182,835 - - Retained earnings (deficit) Current capital 4,799,769 6,418,658 2,936,151 1,313,848 contributions 3,974 90,837 87,980 Total equity 4,851,450 19,623,791 5,241,474 1,459,112 Note 16. Transfers Between Funds Transfers between funds for the year ended June 30, 1988, were as follows: Bridge, Street & To: Debt Traffic Control Other From: General Service Construction Construction General Other Shared Revenue $ - - $ 87,366 $ 19,474 $ 33,015 and Grants 1,838,971 - - 54,251 - - Federal Revenue Sharing 473,215 Urban Development Action 3,732 Bridge, Street, and Traffic Control Construction - - Other Construction - - Parking 187,235 Airport Employee Benefits Trust 662,534 Perpetual Care 6 185 Total 3 171 872 _ 84,096 - - 774,343 - - 33,000 120 366 848 068 117 111 i CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS w June 30, 1988 ry I W Housing Mass r. Airport Authority Transportation Total $ 92,553 $ 602,850 $ 683,765 $11,382,204 50,010 116,113 275,083 1,361,478 (62,592) 127,234 (1,342,709) 3,098,424 a - - 6,667 6,313 1,596,639 287,385 1,884,024 70,113 - - 856,063 738,941 234,697 - - 781,273 it 19,034 (84,821) (170,098) 4,134,827 1,657,439 3,837,408 4,358,479 88,892,642 180,346 166,951 151,342 41,054,754 (1 )A 65,961 22,096 17,366 3,109,950 - 3,004,494 - - 47,484,965 (170,188) (362,594) 457,270 15,392,914 la 1 195,899 78,806 - - 457,496 II 1,654,091 (138,605) 4,042,023 36,733,336 1 IS 11 Johnson County 1 Mass Council of Airport Transportation Governments Total �i $103,113 $856,063 $86,166 $1,185,197 " - - - - - 1,893,222 473,215 3,732 84,096 774,343 187,235 33,000 662,534 MEW 856 063 586.166 6, 185 SF"tp 185 -73- 7/ w• SPECIAL REVENUE FUNDS The Special Revenue Funds are utilized to account for revenue derived from specific sources which are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Community Development Block Grant Fund - accounts for revenue from U.S. Department of Housing and Urban Development Community Develop- ment Block Grant programs. Other Shared Revenue and Grants Fund - accounts for revenue from various sources, including road use tax monies and reimbursable h� programs funded by federal and state grants. i-� Federal Revenue Sharing Fund - accounts for monies received from Federal Revenue Sharing entitlements. Urban Development Action Grant Fund - accounts for the repayment of the Urban Development Action Grant funds loaned to the downtown hotel. n, Iv , i -75- 71 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS June 30, 1988 Other LIABILITIES AND EQUITY Liabilities: Accounts payable Community Shared $ Urban Accrued liabilities 10,474 Development Revenue Federal Development 23,125 749 Block and Revenue Action ASSETS Grant Grants Sharing Grant Total Investments $ 388 $561,421 $ - - $ 161,804 $ 723,613 Receivables: Equity, fund balance Accounts and Reserved for unbilled usage 813 - - encumbrances 813 Interest $ - - 3,919 - - 1,325 5,244 Action grant loan 841,847 Total equity - - 2,263,851 2,263,851 Due from other Total liabilities governments 50,838 140,004 - M 53.184.363 190.842 Total assets E51.226 #LQ6 L 52,426,980L89 3 3 LIABILITIES AND EQUITY Liabilities: Accounts payable $17,627 $ 4,594 $ $ $ 22,221 Accrued liabilities 10,474 11,670 22,144 Due to other funds 23,125 749 23,874 Deferred revenue, action grant loan 4,293 2,263.851 2.268,144 Total liabilities $51,226 5 21,306 $ $2,263,851 $2,336,383 Equity, fund balance (deficit): Reserved for encumbrances $ 3,237 $ 2,896 $ $ - - $ 6,133 Unreserved (3,237) 681,955 163,129 841,847 Total equity $ $684,851 S $ 163,129 $ 847,980 Total liabilities and equity 55].226 f706,157 S 52,426,980 53.184.363 -77- 7/ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS Year Ended June 30, 1988 REVENUE Intergovernmental Charges for services Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Home and community environment Policy and administration Capital outlay Total expenditures Revenue over expenditures OTHER FINANCING SOURCES (USES), operating transfers, (to) other funds Revenue and other financing sources over (under) expenditures and other financing uses FUND BALANCE, BEGINNING FUND BALANCE, ENDING Other Community Shared Development Revenue Block Grant and Grants $883,812 $ 1,982,414 77 - - 31 35,748 81 186 43 313 965 106 2 061 475 Federal Revenue Sharing 25,237 25 237 $270,024 $ - - $ - - - - 72,846 328 695 082 29 998 inn 102 844 328 $ - - $ 1,958,631 $ 24,909 (1,893,222) (473,215) $ - - $ 65,409 619,442 684,851 -78- -7B- $(448,306) 448,306 L-- - -- 1,71 71 Urban Development Action Grant Total $ - f 2,866,226 77 12,276 73,292 124,499 12,276 S 3,064,094 $ 1,260 f 271,284 73,174 725,080 $ 1,260 S 1,069,538 $ 11,016 f 1,994,556 (3,732) (2,370,169) $ 7,284 f (375,613) 155,845 1,223,593 5163,129 S 847.980 -79- 71 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED SPECIAL REVENUE FUNDS Year Ended June 30, 1988 (Page 1 of 2) REVENUE Intergovernmental Charges for services Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Home and community environment Policy and administration Total expenditures OPERATING TRANSFERS From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out Community Development Block Grant Variance Favorable Budget Actual (Unfavorable) $1,094,905 $903,084 $(191,821) 77 77 4 4 73,890 73,890 $1,094,905$977,055 $017,850) $1,001,756 $964,604 $ 37,152 $1,001,756$964,6043E 7,152 $ $ 7,270 $ 7,270 (83,500) (15 ,788) 67,712 $ (83,500) (8,518)$ 4,982 -80- `J/ Other Shared Revenue and Grants Federal Revenue Sharing Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,780,407 $ 1,926,900 $146,493 $ - $ - - $ 10,000 33,014 23,014 32,958 28,528 (4,430) 1,790,407 1 959 914 169 507 32 958 28 528 4 430) $(2,116,869) $(1,893,222) $223,647 $(2,116,869) $(1,893,222) $223,647 E (326.462) E 66.692 $393,154 -81- 328 328 $ (477,973) $((473,215) $(477,973) $(473,215) 328) 328) 4.758 4,7 5B $(445,015) V445,015) E --- (cont- (cont nu 7/ CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED SPECIAL REVENUE FUNDS Year Ended June 30, 1988 (Page 2 of 2) (continued) REVENUE Intergovernmental Charges for services Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Home and community environment Policy and administration Total expenditures OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out _B2 - Urban Development Action Grant Variance BudgetFavorable Actual (Unfavorable) -- 11,509 11,509 $11,509 11 509 $ 1,260 $ 1,260 $ 1 260 1 260 S _ _ —(23,376) $((3,732) $19,644 1(23,376) $0.732) $19,644 �)§� 31.153 71 - w Total �t Variance Favorable u Budget Actual Unfavorable �t $ 2,875,312 $ 2,829,984 $(45,328) t 77 77 i 42,958 73,055 30,097 pt 2,918,270 73 890 2 977 006 73 890 58 736 �1 $ 1,003,016 $ 965,864 $ 37,152 I� 328 328) 1 003 016 966,192 36,824 Vt li $ - - $ 7,270 $ 7,270 t.t (2,701,718) (2,385,957) 315,761 it $(2,701,718) $(2,378,687) $323,031 i 1, I' E (786.464) E (367.873) jila 591 is -83- 71 I' CAPITAL PROJECTS FUNDS The 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 funds in this category are 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, lighting systems, and storm sewers. Other Construction Fund - accounts for the construction or replace- ment of other City general fixed assets such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. -85- CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS Year Ended June 30, 1988 ASSETS Investments Receivables, interest Due from other governments Total assets LIABILITIES AND EQUITY Liabilities: Excess of outstanding checks over bank balance Accounts payable Contracts payable Accrued liabilities Due to other funds Deferred revenue, other Total liabilities Equity, fund balance (deficit): Reserved for encumbrances Unreserved Designated for future improvements Undesignated Total equity Total liabilities and equity Bridge, Street and Traffic Control Other Construction Construction Total $ 382,087 $2,388,477 $2,770,564 3,224 19,727 22,951 185,095 - - 185,095 570,406 JLjL8 204 ILL78 610 54,488 151,066 5,609 26,725 431 770 669 658 $ 46,854 146 106) 99 252) 570,406 -87- $ 122,218 93 188,433 29,525 340 269 $ 122,218 54,581 339,499 5,609 56,250 431 770 1 009 927 $ 75,288 $ 122,142 1,846,541 1,846,541 146 106 2 067 935 1 968 683 2 408 204 JL2LB 610 7/ CITY OF IOWA CITY, IOWA COMBINING STATE14ENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS Year Ended June 30, 1988 REVENUE Intergovernmental Use of money and property Miscellaneous Total revenue EXPENDITURES, capital outlay Revenue (under) expenditures OTHER FINANCING SOURCES (USES) Operating transfers: From other funds (To) other funds Proceeds from general obligation bonds Total other financing sources Revenue and other financing sources over (under) expenditures and other financing uses FUNDING BALANCE (DEFICIT), BEGINNING FUNDING BALANCE (DEFICIT), ENDING Bridge, Street and Traffic Control Other Construction Construction Total E 407,744 E $ 407,744 17,152 126,816 143,968 111,293 430,145 541,438 S 536,189 S 556,961 $ 1,093,150 $1,390,716 $ 3,768,917 $ 5,159,633 E (854,527) $(3,211.956) $(4,066,483) $ 848,068 $ 117,111 E 965,179 (84,096) (774,343) (858,439) 164,248 1,084,740 1,248,988 $ 928,220 5 427,508 5 1,355,728 $ 73,693 $(2,784,448) $(2,710,755) (172,945) 4,852,383 4,679,438 1/ .w CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS June 30, 1988 Pollution ASSETS Parking Control Water Cash $ 675 $ Investments 325,443 908,143 782,770 Receivables: Accounts and unbilled usage 32,659 556,034 357,489 Interest 9,387 39,743 7,208 Due from other funds - - 708 - - Due from other governments Inventories - - - - 189,168 Restricted assets: Investments 1,187,110 37,783,347 168,706 Interest receivable - - 249,069 - - Due from other governments Bond issuance costs 18,891 112,984 - - Property and equipment: Land 1,558,189 29,643 76,547 Buildings and structures 8,866,134 2,444,742 3,919,384 Improvements other than buildings 10,004 17,093,656 4,795,877 Equipment and vehicles 125,440 103,974 191,758 Accumulated depreciation (1,707,510) (6,236,813) (3,793,227) Property purchased for resale - - 28,199 Construction in progress - - 7.151.446 81.755 Total assets $10.426.422 E 60.264.875 $ 6.777.435 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 64,414 $ 163,989 $ 79,700 Accrued liabilities 69,283 95,248 75,582 Due to other funds 149,938 7,865 6,266 Due to other governments - - _ 7,891 Deferred revenue, other Interest payable - - - 14,981 Liabilities payable from restricted assets: Contracts payable - 629,008 - - Interest payable 227,400 1,511,275 - - Deposits - - - 168,706 Bonded debt payable 5,063,937 38,233,699 1,182,835 Other long-term debt payable Total liabilities 5 574 972 40 641 084 1,535,961 Equity: Contributed capital $ 51,681 $ 13,205,133 $ 2,305,323 Retained earnings (deficit): Bond ordinance reserves 959,710 5,672,550 - - Unreserved Total equity 3 840 059 4 851 450 746 108 19 623 791 2 936 151 5 241 474 Total liabilities and equity $10.426.422 E 60.264.875 E 6.777.435 -90- �� ENTERPRISE FUNDS The Enterprise Funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing goods or services to the general public on a continuing basis is 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, manage- ment control, accountability, or other purposes. The funds in this category are as follows: Parking Fund - accounts for the operation and maintenance of all the City's "on" and "off" street public parking facilities. Pollution Control Fund - accounts for the operations and maintenance of the City's water pollution control facility and sanitary sewer system. Water Fund - accounts for the operation and maintenance of the City's water system. Sanitation Fund - accounts for the operations and maintenance of the City's solid waste collection system and landfill. Airport Fund - accounts for the operation and maintenance of the City's airport facility. Housing Authority Fund - accounts for the operations and activities of the City's low and moderate income housing assistance and public housing programs. Mass Transportation Fund - accounts for the operation and maintenance of the City's public transportation system. -89- 71 Housing Mass Sanitation Airport Authority Transportation Total r $ 450 $ - - $ 138,301 $ 1,251 $ 140,677 814,943 182,337 272,644 423,835 3,710,115 _ 165,154 - - 900 7,266 1,119,502 7,947 1,357 4,342 3,588 73,572 221,105 - - - 23,544 245,357 - - - - 8,728 8,314 17,042 - - - - - - - - 189,168 - - - - 11,227 - 39,150,390 - - - - - - - - 249,069 - - - - 702,328 - - 702,328 w. - - - - - - - - 131,875 160,190 462,241 554,050 1,350 2,842,210 41,287 777,666 2,654,222 2,403,252 21,106,687 175,874 1,068,904 20,681 285,510 23,450,506 22,176 28,554 75,024 2,633,308 3,180,234 (38,542) (863,620) (605,039) (1,432,809) (14,677,560) - - - - - - - 28,199 - - - - - - 70 7,233,271 1 570 584 jLa7 439 JLaL7 408 $ 4,358,479 $ 88,892,642 $ 16,828 $ 1,266 $ 30,856 $ 14,688 $ 371,741 68,366 865 30,569 112,626 452,539 26,278 1,217 - - 35,235 226,799 - - - - 12,110 153,907 173,908 - - - - 184,429 - - 184,429 - - - - - - - - 14,981 Iv - - - - - - - - 629,008 - - - - 702,328 - - 2,441,003 - - - - 11,227 - - 179,933 - - - - - - 44,480,471 ' 111 472 - 3 348 3 004 494 3 976 013 - - 316 456 3 004 494 52 159 306 $ 145,264 $1,824,279 $ 223,989 $ 3,584,753 $ 21,340,422 - - - - - - 6,632,260 1 313 48 1 459 1121 (170 654 091) (362,594) 457,270 8 760 654 (138,605) 4,042,023 36 733 336 1 570 584 $1.657.439x.837.406 S A 3�4i$ g t aLU2.64 -91- CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS Year Ended June 30, 1988 REVENUE: Charges for services Miscellaneous Total revenue EXPENSES: Personal services Commodities Services and charges Depreciation Total expenses Operating income (loss) NONOPERATING INCOME (EXPENSES): Gain (loss) on disposal of fixed assets Operating grants Interest income Rent Interest expense Income (loss) before operating transfers OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Net income (loss) Depreciation on assets acquired by contributed capital that reduces contributed capital RETAINED EARNINGS (DEFICIT), BEGINNING as restated RETAINED EARNINGS (DEFICIT), ENDING Pollution Parking Control Water $$1-940,,3-32 $ 4,243,2622 $2,303,641 2 767 25 933 27 212 1 943 099 4 2 9 195 2 33 853 $ 604,972 $ 531,444 $ 661,113 41,984 46,938 283,534 284 ' 391 404 646 778 138 931,347 $ 983,-028 1,722,785 2 3 216 598 1 229 365 1 37 8i59 1 93 383 $ 713,734 $ 2,890,436 $ 391,470 - - (354) 90,482 515,531 60,252 (458,480) (88,096) 345,736 3,405,967 363,272 187 235) - - - - 187 235) $ 158,501 $ 3,405,967 $ 363,272 -92- 4,641,268 3,012,691 2.572,879 4 799 769 S 6.418,658 $2,936,151 w I� Housing Mass Sanitation Airport Authority Transportation Total it $1,459,476 $ 73,998 $ 599,568 $ 664,824 $11,285,101 413 18,555 3,282 18,941 97,103 $1,459,889 92,553 $ 602,850 $ 683,765 $11,382,204 $ 472,956 $ 34,257 $ 215,651 $ 942,135 $ 3,462,528 12,496 6,762 23,958 18,684 434,356 583,661 64,116 119,894 790,572 3,025,418 $1,069,113 $ 105,135 $ 359,503 S 1,751,391 $ 6,922,302 9,925 50,010 116,113 275.083 1,361,478 $1,079,038 $ 155,145 $ 475,616 $ 2,026,474 S 8,283,780 S 380,851 $ (62,592) $ 127,234 $(1,342,709) $ 3,098,424 6,667 6,313 1,596,639 287,385 1,884,024 62,121 11,513 15,975 29,163 785,037 (1(234,697) (1(781.273) $ 442,972 (51,079) $ (84,821) $(1,026,161) $ 3,395,886 $ S 103,113 $ S 856,063 $ 959,176 (33,000) (220,235) S S 70,113 S S 856,063 $ 738,941 $ 442,972 $ 19,034 $ (84,821) $ (170,098) S 4,134,827 114,015 870,876 (189,222) (277,773) 513,353 51,313.846 5(170.188) (362,594) S 457.270 114,015 11,144,072 515.392.914 -93- 71 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL ENTERPRISE FUNDS Year Ended June 30, 1988 _ Pollution Parking Control Water FINANCIAL RESOURCES PROVIDED BY: Operations: Net income (loss) $ 158,501 $ 3,405,967 $363,272 _ Items which did not (provide), or require outlay of cash and investments: Depreciation 298,018 395,731 216,598 Amortization 7,138 34,553 - - (Gain) Loss on disposal of fixed assets - - - - 354 (Increase) decrease in: Accounts and accrued interest receivable (4,388) (145,220) (33,855) Due from other funds 660 4,886 3,685 Due from other governments - - - - - - Inventories - - - - (17,861) Increase (decrease) in: Accounts payable and accrued expenses 60,440 114,187 24,743 Due to other funds (92) (691) (4,483) Due to other governments - - - - 2,190 Deferred revenue, other - - - - - - Interest payable (8,204) - - 6,823 Total financial resources provided by operations $ 512,073 $ 3,809,413 $561,466 Other sources: Contracts payable - - 225,215 - Deposits - - - - 9,611 Contributed capital 3,974 90,837 87,980 Total financial resources provided 516,047 $ 4,125,465 $659,057 FINANCIAL RESOURCES APPLIED TO: Due from other funds $ - - $ - - $ - - Purchase of property and equipment 22,889 2,799,533 182,105 Deposits - - - - - - Contracts payable 92,147 - - - - Due to other funds 20,000 - - - Contributed capital - - - - - Payment of bonds 165,000 - - 66,457 Total financial resources applied 00,036 $ 2,799,533 $248,562 Net increase in cash and investments $ 216,011 $ 1,325,932 $410,495 Cash and investments, June 30, 1987 1,297,217 37,365,558 540,981 Cash and investments, June 30, 1988 JL,513 228 $38.691,490 JKL 476 -94- 71 _95- %� Housing Mass Sanitation Airport Authority Transportation Total w. y, $442,972 $ 19,034 $ (84,821) $(170,098) $ 4,134,827 1 9,925 50,010 116,113 275,083 1,361,478 it - - - - - - - - 41,691 (6,667) - - (6,313) (40,424) (739) (2,529) (2,948) (230,103) (170,181) 139 - - (7,311) (168,122) (326,069) (8,314) (334,383) (17,861) L� 4,593 (9,267) 31,985 (4,070) 222,611 (20,729) (6,657) (4,769) (7,458) (44,879) i_� - - - - (15,086) (21,250) (34,146) - - - - 43,929 (9,477) 34,452 �a - - - - 234,697 - - 233,316 $226,156 $ 52,520 $ (13,217) $ 44,157 $ 5,192,568 ' - - - - 225,215 9611 195,899 78,806 - 457,496 $226,156 $248,419 65,589 44,157 $ 5,884,890 , it $ 46,648 $ - - $ - - $ - - $ 46,648 it - - 65,961 22,096 17,366 3,109,950 - - - 1,249 - - 1,249 121,331 - - - - 213,478 20,000 2,222 2,222 ' - - - - - - 231.457 46,648 $187,292 23,345 19,588 3,625,004 $179,508 $ 61,127 $ 42,244 $ 24,569 $ 2,259,886 _ 635,885 121,210 379.928 400,517 40,741,296 815 393 $182,337 422 172 425,086 $43,001.182 _95- %� CITY OF IOWA CITY, IOWA _ SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED ENTERPRISE FUNDS Year Ended June 30, 1988 (Page 1 of 3) _ REVENUE Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating, home and community environment OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out Parkins Fund — Variance Favorable Budget Actual (Unfavorable) _ 90 192,000 187,235) (4,765) 1,713,825 1,831,348 117,523 - 1 000 2 740 1 740 1 906 825 2 021 233 114 408 $1,713,819 1 642 935 70,884 $ 690,800 $ 690,800 $ - - (928,463) (923,698) 4.765 (237,663) (232,898) 4,765 $_(44.657) 145,400 jjgQo57 -96- %� .. (continued) -97- 71 " Pollution Control Fund Nater Fund Variance Favorable Variance Budget Actual IU nfavorablel Budget ctua Favorable (Unfavorable) w f f -- f -- f-- f -- f _- 4,345,194 4,047,163 (298,031) 2,228,096 2,362,226 134,130 I� 475,000 1,889 589,457 6 060 114,457 5,512 32 100 54,579 49,067 f 4,822.083 S 4,642.680 7g p )265 708 2 4 5 32 $179,524) I; S 4,137,064 S 4.034.404 1 102,660 11,913,566 $1,904,sol S 8,765 f •i p,—CC f 4,296,329 297,829) f 4,296,329 14297,8094 f f 142,000 f 142,000 f - - 535) _(3,7,999) 146,536 (1,500) $ (1.500) �= (352,535) o5 99 ) $146,536 ,H (continued) -97- 71 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED ENTERPRISE FUNDS Year Ended June 30, 1988 (Page 2 of 3) (continued) REVENUE Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating, home and community environment OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and.operating transfers out -98- I Sanitat on Fund Variance Budget Favorable Actual Unfavorable)_ $ 200 $ 258 25,500 1,298,650 1,423,693 33,637 55,052 100 11,358, 087 5 479 528 $1,126,508 1070 30 E 150,000 $ 152,961 (356,256) (214,659) "06,256) (61,698) E 58 (25,500) 125,043 21,415 425 1121,441 156,206 $ 2,961 141,597 1144,558 3 614 60,491 56 87730 930) $ (429.532) 390 602) -99- (continued) %/ Airport Fund Mass Transportation Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) - - - - 293,178 319,282 26,104 - - - - - - 725,000 639,887 (85,113) 80,682 84,347 3,665 6,900 25,510 18,610 22 005 102 687 1555 102 902 (3,450) 0 � $1,026,078 9 372 994 51 8 32 372 27) $169,186 $112,524 $56,662 $1,890,528 $2,272,070 $(381,542) $103,113 $103,113 $ - - $ 989,190 $1,004,157 $ 14,967 (33,000) (33,000) - - (155,670) (155,670) - 70,113 70,113 $ - - 833,520 848,487 14,967 3 614 60,491 56 87730 930) $ (429.532) 390 602) -99- (continued) %/ CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED ENTERPRISE FUNDS Year Ended June 30, 1988 (Page 3 of 3) (continued) Total Variance Favorable Budget Actual (Unfavorable) REVENUE Licenses and permits Intergovernmental Charges for services Fines and forfeitures Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating, home and community environment OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out $ 200 f 258 $ 58 318,678 319,282 604 8,596,940 8,472,879 (124,061) 192,000 187,235 (4,765) 2,315,556 2,640,293 324,737 58094 65,679 7.585 $11,481,468 $11,685,626 204,158 $10,950,671 $11,037,036 (86,365) $ 6,371,432 $ 6,389,360 $ 17,928 (6,265,753) _(5,972,855) 292,898 S 105,679 E 416,505 S 310,826 -100- S 1.065.095 S 428,E '� 7/ INTERNAL SERVICE FUNDS The Internal Service Funds are utilized to account for goods and services provided by one department to other City departments on a cost reimburse- ment basis. The funds in this category are: Equipment Maintenance Fund - accounts for the provision of main- tenance for City vehicles and equipment, and vehicle rental to other City departments from a central vehicle pool. Central Services Fund - accounts for the printing services and office supplies inventory provided to other City departments. Loss Reserve Fund - accounts for property and liability insurance premiums and claims activity for all City departments, including the self-insured retention. -101- �� CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS June 30, 1988 LIABILITIES AND EQUITY Liabilities: Accounts payable Accrued liabilities Due to other funds Total liabilities Equity: Contributed capital Retained earnings Total equity Total liabilities and equity $ 29,593 $ 2,375 79,096 944 22 108.111 3 319 Loss Equipment Central ASSETS Maintenance Services Investments $ 576,172 $142,074 Receivables: - - 128,279 Accounts 8,152 - - Interest 4,810 1,148 Due from other funds 118,474 9,805 Inventories 442,373 23,609 Property and equipment: $ 3,910.422 Land 45,462 - - Building and structures 563,355 - - Improvements other than buildings 41,365 - - Equipment and vehicles 2,936,235 138,212 Accumulated depreciation (1,717,298) (72,313) Total assets E 3.019.100 $242,535 LIABILITIES AND EQUITY Liabilities: Accounts payable Accrued liabilities Due to other funds Total liabilities Equity: Contributed capital Retained earnings Total equity Total liabilities and equity $ 29,593 $ 2,375 79,096 944 22 108.111 3 319 Loss Reserve Total $647,906 $ 1,366,152 - - 8,152 881 6,839 - - 128,279 - - 465,982 - - 45,462 - - 563,355 - - 41,365 - - 3,074,447 - - (1,789,611) $648,787 $ 3,910.422 $ - - $ 31,968 80,040 22 112,030 $ 1,234,495 $ 5,822 $ - - $ 1,240,317 1 675 894 233 394 648 787 2 558 075 2 910 389 239 216 648 787 3 798 392 3 019 100 $242,535 646 787 $ 3,910.422 0 -102- r/1 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL INTERNAL SERVICE FUNDS Year Ended June 30, 1988 Equipment Central Loss Maintenance Services Reserve Total w REVENUE: It Charges for services $1,467,970 $ 85,828 $757,262 $2,311,060 Miscellaneous Total revenue 15,030370 _� T1,483,000 86,198 757 262 X00 2 3Z6 4_60 � EXPENSES: Personal services $ 512,657 $ 18,194 $ - - $ 530,851 r' Commodities 531,242 7,897 - - 539,139 I� Services and charges 98 341 1,142,240 26 523 Ttt,614 111 633 111,633 236 497 1,306,487 I-� Depreciation Total expenses11 3569 470 809809 2408 79 022 T1-11,633 354,977 $1,661.464 I, Operating income $ 12,191 $ 7,176 $645,629 $ 664,996 I' NONOPERATING INCOME: Gain on disposal of fixed assets 1,456 - - - - 1,456 It Interest income 42,512 9,666 3,158 55,336 Net income $ 56,159 $ 16,842 $648,787 $ 721,788 RETAINED EARNINGS, BEGINNING 1,619,735 216,552 - - 1,836,287 RETAINED EARNINGS, ENDING JLkLS 894 Z33 394648 787 2 558 075 i� I hr• ti -103- %/ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL INTERNAL SERVICE FUNDS Year Ended June 30, 1988 -104- 71 '" Equipment Central Loss Maintenance Services Reserve Total FINANCIAL RESOURCES PROVIDED BY: Operations: Net income $ 56,159 $ 16,842 $648,787 $ 721,788 Items which did not require outlay of, cash and investments: _ Depreciation 328,569 26,408 - - 354,977 (Gain) on disposal of fixed assets (1,456) - - - - (1,456) (Increase) decrease in: Accounts and accrued interest receivable (3,230) (554) (881) (4,665) Due from other funds 7,537 (4,694) - - 2,843 Inventories (33,631) (1,253) - - (34,884) Increase (decrease) in: Accounts payable and accrued expenses (3,380) (1,628) - - (51008) Due to other funds 38) 750) - - 7B8) Total financial resources provided by operations $350,530 $ 34,371 $647,906 $1,032,807 Other sources, contributed capital 6,451 - - - - 6,451 - Total financial resources provided $356,981 34,371 $647,906 $1,039,258 FINANCIAL RESOURCES APPLIED TO: Purchase of property and equipment $339,994 $ - - $ - - 339,994 Net increase in cash and investments $ 16,987 $ 34,371 $647,906 $ 699,264 Cash and investments, June 30, 1987 559,185 107,703 - - 666,888 Cash and investments, June 30, 1988 $576,172 11K 074 $647,906 JLjL6 152 -104- 71 '" u W {4 FIDUCIARY FUNDS TRUST AND AGENCY FUNDS The Trust and Agency Funds are used to account for assets held by the City in a trustee or custodial capacity for the City's two pension and retirement funds, three bond trust funds, and for other entities, such as individuals, private organizations, In or other governmental units. These fund types are categorized as follows: It Pension Trust Funds w The City maintains two pension trust funds for City employees as follows: Fire Pension and Retirement Trust Fund Police Pension and Retirement Trust Fund {, Expendable Trust Funds Employee Benefits Trust Fund - accounts for the employee benefits related to those City employees who are paid through the governmental fund types, which are funded i� by a property tax levy. i� Johnson County Council of Governments Trust Fund - accounts for the financial activities of the metropolitan/rural cooperative planning organization. li Water Revenue Bonds Funded Trust Fund - accounts for the investments placed in a Is self-administered trust, which, along with the earnings thereon, are expected to 11 pay the outstanding water revenue bonds and the related interest as they mature. Sewer Revenue Bonds Funded Trust Fund - accounts for the investments placed in a self-administered trust, which, along with the earnings thereon, are expected to ' pay the outstanding sewer revenue bonds and the related interest as they mature. If Sewer General Obligation Bonds Refunding Trust Fund - accounts for the investments placed in a self-administered trust, which, along with the earnings thereon, are expected to pay the outstanding tax -abated portions of the general obligation bond i { issues that had been a liability of the Pollution Control Fund. Non -expendable Trust Fund Perpetual Care Trust Fund - accounts for the proceeds received from Cemetery deeds sold through May, 1973. The investment proceeds from this fund are transferred to the General Fund each year to be applied against cemetery operating expenditures. Agency Funds The City acts as custodian for the following funds: Project Green Mayor's Youth Employment Program Library Foundation Eldercraft Shoppe Employee Deferred Compensation -105- %/ CITY OF IOWA CITY, IOWA — COMBINING BALANCE SHEET ALL TRUST AND AGENCY FUNDS _ June 30, 1988 ASSETS Investments Receivables: Property taxes Accounts Interest Due from other funds Due from other governments Total assets LIABILITIES AND EQUITY Liabilities: Accounts payable Accrued liabilities Due to other funds Due to agency Deferred revenue, property taxes Interest payable Deferred compensation payable Bonded debt payable Total liabilities Equity: Fund balance: Reserved for: Employee retirement commitments Johnson County Council of Governments Perpetual care Unreserved Total equity Total liabilities and equity Non - Expendable Pension Expendable Trust Trust Funds Trust Funds Fund _ $13,877,287 $2,305,589 $61,838 737,743 ` 92,259 759,433 27,626 550 4,423 18,835 — 6.963 514.636.720 #3 4,� S.Q1.,33. $ 44,277 $ 3,496 $ - - 6,744 232 788 708,999 — 24,418 2.249.458 $ 44.277 $2.993.347 788 $14,592,443 $ 239,418 $ — 39,903 80,435 (98.065) _ $14.592.443 $ 181,256$80,435 -106- -107- 7/ Agency Funds Total $1,721,480 517,966,194 737,743 51078 92259 792,687 23,258 3.408 10.371 $ 7,770 $ 55,543 20,915 27,659 58 1,078 618,841 618,841 708,999 24,418 1,082,382 1,082,382 2.249.458 1 9 9661 1,768,378 $ - $14,831,861 - 39,903 - 80,435 (98.065) �= il_�Z29 sla'asa -107- 7/ I ri CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL PENSION TRUST FUNDS June 30, 1988 ASSETS Investments Receivables, interest Total assets LIABILITIES AND EQUITY Liabilities, accounts payable Equity, fund balance, reserved for employee retirement commitments Total liabilities and equity Fire Pension Police Pension & Retirement & Retirement Trust Trust Total $7,289,638 $6,587,649 $13,877,287 398.932 360.501 759.433 $7,688,570 $6.948.150 $14.636.720 28,281 15,996 $ 44,277 $7,660,289 6 932 154 $14,592,443 JLa8 570 jLaL8 150 $14.636.720 -109- 7� r CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCES ALL PENSION TRUST FUNDS Year Ended June 30, 1988 REVENUE: Interest Miscellaneous: State contribution City contribution Member contribution Total miscellaneous Total revenue EXPENSES: Personal services: Pension benefits Disability benefits Death benefits Total personal services Services and charges Total expenses Net income FUND BALANCE, BEGINNING FUND BALANCE, ENDING Fire Pension Police Pension & Retirement & Retirement Trust Trust Total $ 659,881 $ 596,941 $ 1,256,822 $ 47,141 $ 40,806 $ 87,947 388,454 276,014 664,468 39,734 48,377 88,111 1 135 210 962 138 2,097,348 $ 161,022 $ 79,179 $ 240,201 134,881 88,404 223,285 39 93 335,841 32 001 199,584 71 939 535,425 18 - - 18 335,859 199 584 535,443 $ 799,351 $ 762,554 $ 1,561,905 6,860,938 6,169,600 13,030,538 $7,660,289 6 932 154 514,592,443 -110- 7/ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PENSION TRUST FUNDS Year Ended June 30, 1988 Fire Pension Police Pension Retirement & Retirement Trust Trust Total FINANCIAL RESOURCES PROVIDED BY: Operations: Net income E 799,351 $ 762,554 $ 1,561,905 Items which did not (provide), or require outlay of, cash and investments: (Increase) in, accrued w interest receivable (92,354) (85,116) (177,470) Increase (decrease) in, accounts payable 2,284 (198) 2,086 Net increase in cash and investments S 709,281 $ 677,240 $ 1,386,521 r Investments, June 30, 1987 6,580,357 5.910,409 12,490.766 Investments, June 30, 1988 8 38 6 58 ;13,877,287 "1 CITY OF IOWA CITY, IOWA _ COMBINING BALANCE SHEET ALL EXPENDABLE TRUST FUNDS June 30, 1988 LIABILITIES AND EQUITY Liabilities: Accounts payable Employee Johnson County Water Revenue Accrued liabilities Benefits Council of _ Bonds Funded ASSETS Trust Governments Trust Trust Investments $120,194 $40,408 $438,909 Receivables: 708,999 Property taxes 737,743 - 6,063 Accounts 92,259 461,000 Interest 1,225 - - 8,033 Due from other funds - - Due from other governments 6,963 Total assets 3951.421 $47,371 4E4 6.9 LIABILITIES AND EQUITY Liabilities: Accounts payable S 3,004 $ 492 S - Accrued liabilities 6,744 Due to other funds 232 Deferred revenue, property taxes 708,999 Interest payable 6,063 Bonded debt payable 461,000 Total liabilities $712,003 S 7,468 $467,063 Equity, fund balance (deficit): Reserved for: " Employee retirement commitments $239,418 $ - - _ $ Johnson County Council of Governments 39,903 Unreserved (20,121) Total equity (deficit)$239,418$39,903 $(20,121) Total liabilities and equity 5951^42] 547.371 5446.942 -112- %� -113- %/ Sewer General Sewer Revenue Obligation Bonds Bonds Funded Refunding Trust Trust Total $580,535 $1,125,543 $2,305,589 737,743 w. 12,149 6,219 92,259 27,626 4,423 4,423 6,963 -i �. 51,136,10 53.174,603 I-, $ S S 3,496 6,744 232 708,999 12,521 5,834 24,418 ^$662,521 650,000 1,138,458 2,249,458 $1,144,292 $2,993,347 M1. $ $ $ 239,418 39,903 (69,837) (8,107) (98,065) $(69,837) 5592.684 S (8,107) Jam. ,}$� S 181,256 53.174.603 -113- %/ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL EXPENDABLE TRUST FUNDS Year Ended June 30, 1988 -114- VI Employee Johnson County Water Revenue Benefits Council of Bonds Funded Trust Governments Trust Trust REVENUE Property taxes $ 784,484 $ - - $ - - Intergovernmental - - 62,760 - - Charges for services 92,259 1,448 - Use of money and property 5,046 68 35,743 Miscellaneous Total revenue 2,210 883,999 472 64,748 - - 35 743 EXPENDITURES Current operating: Community protection $ 24,154 $- Home and community environment - - 155,128 - - Policy and administration 28,885 - - - Debt service: Interest.and fiscal charges Total expenditures - - 53 039 - - 155 128 21,288 21 288 Revenue over (under) expenditures 830,960 $(90,380) 14,455 OTHER FINANCING SOURCES (USES) Operating transfers: From other funds $ - - $ 86,166 $ - - (To) other funds (662,534) - - - - Total other financing sources (uses) $(662,534) 86,166 $ - Revenue and other financing sources over (under) expenditures and other financing uses $ 168,426 $ (4,214) $ 14,455 FUND BALANCE (DEFICIT), BEGINNING 70,992 44,117 $(34,576) FUND BALANCE (DEFICIT), ENDING 239,418 LIL903 20 121) -114- VI -115- 1 %/ Sewer General Sewer Revenue Obligation Bonds Bonds Funded Refunding Trust Trust Total $ - - $ - - $ 784,484 62,760 42,015 92,676 93,707 175,548 42 015 92 676 2 682 1 119 181 ii $ - - $ - - $ 24,154 155,128 - ' - 28,885 -: 24 313 24 313 77 379 77 379 122 980 331 147 17,702 15,297 788,034 $ - $ - - $ 86,166 ' - - (662,534) $ _ _ $ - (576,368) $ 17,702 $ 15,297 $ 211,666 (87,539) (23,404) (30,410) 69 83 7) 8 10 7) 181 256 -115- 1 %/ CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED EXPENDABLE TRUST FUNDS Year Ended June 30, 1988 (Page 1 of 2) REVENUE Property taxes Intergovernmental Charges for services Use of money and property Miscellaneous Total revenue EXPENDITURES Current operating: Community protection Home and community environment Policy and administration Total expenditures OPERATING TRANSFERS: From other funds (To) other funds Total operating transfers in (out) Revenue and operating transfers in over (under) expenditures and operating transfers out Employee Benefits Trust Variance Favorable Budget Actual (Unfavorable) $ 757,208 94,465 8,300 859 973 $ 17,500 65 000 82 500 $ 776,431 93,658 3,367 2 211 875 667 $ 15,892 25 916 41 808 $19,223 (807) (4,933) 2 211 15 694 $ 1,608 39 084 am (696,690) (672,437) 24,253 $(696,690) $(672,437) $24,253 80,783 S 161,422 jg.0639 -116- LA i w I w Johnson County Council Water Revenue Bonds of Government Trust Funded Trust Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget ActuAl (,Unfavorable) -- 70,557 67,370 (3,187) 1,312 1,448 136 - - 48,068 50,061 1,993 472 472 - $ 71.869 S 69,290 S(2,579) S 48,068 50,061 $1.993 -- 158,735 154,169 4,,566 204,118 197,850 6,268 $158,735 $154,169 $ 4.566 204,118S 97.850 6 268 $ 86,166 $ 86,166 $ - $ 198,580 $ 198,580 $ - - - (198,580) (198,580) 86,166 S 86,166 $ S $ S_ -117- 8(156.050) ) 58.261 (continued) %/ CITY OF IOWA CITY, IOWA _ SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES, NON -GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED EXPENDABLE TRUST FUNDS Year Ended June 30, 1988 (Page 2 of 2) (continued) Sewer Revenue Bonds Funded Trust _ Variance Favorable Budget Actual (Unfavorable) _ REVENUE Property taxes S $ $ r Intergovernmental Charges for services Use of money and property 58,700 59,567 867 Miscellaneous Total revenue $ 58.700 S 59,567 S B6 EXPENDITURES Current operating: Community protection $ $ $ - - Home and community environment 101,316 100,302 1,014 Policy and administration - Total expenditures $ 101,316 S 100,302 $1.014 OPERATING TRANSFERS: From other funds $ 100,610 $ 100,610 $ - - (To) other funds1( 00,610) (100,610) Total operating transfers in (out) S S Revenue and operating transfers in over (under) expenditures and operating — transfers out 71 -118- Sewer General Obligation Bonds Refunding Trust Total Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ — E S $ 757,208 $ 776,431 $19,223 70,557 67,370 (3,187) 95,777 95,106 (671) 93,994 94,183 189 209,062 207,178 (1,884) 2.683 2.683 93,994 94,183 $189 E 1.132.604 E 1.148.766 $16,164 $ $ S- - S 17,500 $ 15,892 S 1,608 464,169 452,321 11,848 65.000 25.916 39,084 $ �_ S 546.669 S 494.129 $52,540 $ 380 920 $ 1380•920 5 $ (1.376,800) $ 385,356 $ - — (380,920) (380,920) (1,376,800) (1,352,547) 524.253 ) $(380,920) $(380,920) $ (991.444) E (967.191) $24,253 5(286.926) 51286.737) jg (405, QQ) S (31ULM) ,g�Z -119- CITY OF IOWA CITY, IOWA - COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS Fiscal Year Ended June 30, 1988 Balance Balance _ June 30, 1987 Additions Deletions June 30, 1988 Project Green Assets - Investments $ 74,388 $ 83,915 $ 48,800 $109,503 Receivables, interest 365 6,985 6,485 865 Due from other funds 82 - - 82 - - - Total assets 74 835 90 900 55 367 110 368 Liabilities Accounts payable $ 4,015 $ 57,217 $ 55,196 _ $ 6,036 Due Total aliabilities 70 820 74 835 84 693 16 41 910 3gency 51 i7 10 110 368 - Mayor's Youth Employment Program Assets _ Investments $ 9,019 $145,570 $137,017 $ 17,572 Receivables, interest 16 266 217 65 Due from other funds 4 - - 4 - - Due from othergover ` ments Total nassets 9 601 18 640 60 664 206 500 66 857 204 095 3 408 21 045 Liabilities Accounts payable $ 155 $ 30,120 $ 28,659 $ 1,616 Accrued liabilities 13,739 131,713 126,140 19,312 r. Due to other funds 1,665 52 1,665 52 Due to agency Total liabilities r�081 18 40 140,741 30'L 626 143,757 300221 65 21 045 Library Foundation Assets Investments $255,470 $336,135 $ 83,511 $508,094 Receivables, interest 1,453 30,253 27,589 4,117 Due from other funds 327 - 327 - - Total assets 257 250 366 388 111 427 512 211 Liabilities - Accounts payable $ 109 $ 53,734 $ 53,733 $ 110 Accrued liabilities 1,144 29,787 29,328 1,603 Due to agency Total liabilities 25,997 257 250 327�,130 410 51 7629 155,55 _90 510:,g9g _ 512 _ll -120- V -121- 7/ Balance Balance June 30, 1987 Additions Deletions June 30, 1988 Eldercraft Shoppe Assets Investments $ 3,548 $ 1,021 $ 640 $ 3,929 Receivables, interest 24 62 55 31 Due from other funds Total assets 5 3 577 - - 1 083 5 700 - - L 3 960 Liabilities Accounts payable $ 3 $ 670 $ 665 $ 8 Due to other funds 2 6 2 6 Due gency aliabilities 3 572 3 577 1 �12 1 1,329 3 960 Total Employee Deferred Compensation Assets Investments 046 234 422 234 422 21 086 21 086 1 082 382 1 082 382 869 046 Liabilities Deferred compensation Totallel 046 234 422 422 21 086 21 086 1 082 3B2 1 082 382 iabilities 869 Total Assets Investments $1,211,471 $ 801,063 $291,054 $1,721,480 Receivables, interest 1,858 37,566 34,346 5,078 Due from other funds 418 - - 418 - - Due from other governments 9,601 1 223 348 60 664 899 293 66 857 392 675 3 408 1 729 966 Total assets Liabilities Accounts payable $ 4,282 $ 141,741 $138,253 $ 7,770 Accrued liabilities 14,883 161,500 155,468 20,915 Due to other funds 1,667 58 1,667 58 Due to agency 333,470 553,600 268,229 618,841 Deferred compensation payable 869,046 234 422 091 321 21 086 584 703 1 082 382 1 729 966 Total liabilities$1.223.348 1 -121- 7/ w �u " CITY OF IOWA CITY, IOWA OTHER SUPPLEMENTAL INFORMATION ri `, Ii+ M i.. I1 -123- 71 CITY OF IOWA CITY, IOWA COMPARATIVE SUMMARY OF NET ASSETS AVAILABLE _ FOR BENEFITS AND TOTAL ACTUARIAL PRESENT VALUE OF CREDITED PROJECTED BENEFITS - PENSION TRUST FUNDS Last **Nine Fiscal Years -124- Fiscal *Total Actuarial Year Net Assets Present Value _ Ended Available for of Credited June 30 Benefits Projected Benefits Percentage Fire Pension and 1980 $1,980,098 $3,693,203 53.6% Retirement Fund 1981 2,380,490 4,190,364 56.8 1982 2,883,487 4,752,785 60.7 1983 3,504,804 5,513,637 63.5 1984 4,168,768 6,112,800 68.1 1985 5,026,965 6,553,126 76.7 1986 5,772,640 7,293,707 _ 79.1 1987 6,860,938 8,327,138 82.4 1988 7,688,570 9,302,956 82.6 Police Pension and 1980 $1,864,537 $2,662,984 70.0% - Retirement Fund 1981 2,149,567 2,991,764 71.8 1982 2,610,684 3,433,790 76.0 1983 3,183,498 3,837,297 82.9 _. 1984 3,786,011 4,146,728 91.3 1985 4,541,353 4,475,900 101.5 1986 5,186,260 5,057,307 102.5 1987 6,169,600 6,008,729 102.7 _ 1988 6,948,150 7,001,011 99.2 _. *Source: Annual Actuarial Valuation Report **Actuarial present values of credited projected benefits determined by using the unit credit actuarial cost method are not available prior to fiscal year ended ` June 30, 1980. -124- -125- %/ J CITY OF IOWA CITY, IOWA COMPARATIVE SUMMARY OF UNFUNDED ACTUARIAL PRESENT VALUE OF CREDITED PROJECTED BENEFITS AND ANNUAL ACTIVE MEMBER PAYROLL - PENSION TRUST FUNDS Last **Nine Fiscal Years Fiscal *Unfunded Actuarial Year Present Value of Ended Credited Projected Annual Active June 30 Benefits Member Payroll Percentage Fire Pension and 1980 $1,713,105 $ 849,593 201.6% Retirement Fund 1981 1,809,874 893,801 202.4 1982 1,869,298 1,012,851 184.5 1983 2,008,833 1,087,968 184.6 1984 1,944,032 1,166,161 166.7 1985 1,526,161 1,203,434 126.8 1986 1,521,067 1,223,839 124.3 1987 1,466,200 1,250,645 117.2 1988 1,614,386 1,281,742 126.0 Police Pension and 1980 $ 798,447 $ 836,788 95.4% Retirement Fund 1981 842,197 969,864 86.8 1982 823,106 1,031,086 79.8 -. 1983 653,799 1,185,548 55.1 1984 360,717 1,303,484 27.6 1985 - - 1,387,021 - - 1986 - - 1,434,000 - - 1987 - - 1,488,839 - - 1988 52,861 1,560,548 3.4 *Source: Annual Actuarial Valuation Report **Actuarial present values of credited projected benefits determined by using the unit credit actuarial cost method are not available prior to fiscal year ended June 30, 1980. -125- %/ J *Cash basis data. -126- %� CITY OF IOWA CITY, IOWA COMPARATIVE SUMMARY OF REVENUE BY SOURCE - PENSION TRUST FUNDS - Last Ten Fiscal Years Fiscal Year Member Employer State Ended Contri- Contri- Contri- Investment June 30 butions butions butions Income Total Fire Pension *1979 $49,924 $241,409 $65,756 $109,971 $ 467,060 and Retire- 1980 18,776 293,604 29,069 141,944 483,393 ment Fund 1981 19,753 284,517 33,688 209,216 547,174 1982 22,384 328,948 33,896 278,272 663,500 1983 33,727 361,674 33,743 387,024 816,168 - 1984 36,151 379,356 43,210 432,097 890,814 1985 37,310 371,801 43,872 634,538 1,087,521 ` 1986 37,939 381,251 46,785 533,262 999,237 1987 38,770 388,579 42,245 925,951 - 1,395,545 1988 39,734 388,454 47,141 659,881 1,135,210 - Police Pension *1979 $46,235 $169,756 $54,252 $104,649 $ 374,892 and Retire- 1980 18,493 214,904 20,939 163,098 417,434 ` ment Fund 1981 21,434 229,356 23,458 152,654 426,902 1982 22,787 258,675 26,362 252,795 560,619 1983 36,752 286,382 26,695 342,152 691,981 - 1984 40,408 282,515 34,201 391,417 748,541 1985 42,979 262,355 36,251 564,274 905,859 - 1986 44,454 253,604 40,186 476,046 814,290 1987 46,154 262,872 37,102 833,620 _ 1,179,748 1988 48,377 276,014 40,806 596,941 962,138 *Cash basis data. -126- %� CITY OF IOWA CITY, IOWA COMPARATIVE SUMMARY OF EXPENSES BY TYPE - PENSION TRUST FUNDS Last Ten Fiscal Years *Cash basis data. -127- I/ Fiscal Year Ended Administrative June 30 Benefits Expenses Total Fire Pension and *1979 $152,905 $ 1,754 $154,659 Retirement Fund 1980 136,497 684 137,181 1981 146,359 423 146,782 1982 159,452 1,051 160,503 1983 199,652 562 200,214 1984 221,810 5,040 226,850 1985 228,473 851 229,324 1986 253,562 - - 253,562 1987 305,420 1,827 307,247 1988 335,841 18 335,859 Police Pension and *1979 $116,544 $ 766 $117,310 Retirement Fund 1980 83,180 449 83,629 1981 90,094 51,778 141,872 1982 95,107 4,395 99,502 1983 118,572 595 119,167 1984 134,250 11,778 146,028 1985 150,097 420 150,517 1986 169,383 - - 169,383 1987 182,575 13,833 196,408 1988 199,584 - - 199,584 *Cash basis data. -127- I/ I **Actuarial pension benefit obligation values determined by using the unit credit actuarial cost method are not available prior to fiscal year ended June 30, 1980. CITY OF IOWA CITY, IOWA COMPARATIVE SUMMARY OF ACTUARIAL PENSION BENEFIT OBLIGATION VALUES AND PERCENTAGE COVERED BY NET ASSETS AVAILABLE FOR BENEFITS - PENSION TRUST FUNDS Last **Nine Fiscal Years Percentage of Actuarial Actuarial Pension Benefit Net Assets Value of Obligation Actuarial Available Pension Values Covered Fiscal Pension Benefit for Benefit by Net Assets Year Net Assets Obligation - Active Obligation Available - Ended Available for Retirants' and Members' Active Active Members' June 30 Benefits Beneficiaries' Benefits Members' Benefits Fire Pension and 1980 $1,980,098 $1,837,696 $ 142,402 $1,440,334 10% Retirement Fund 1981 2,380,490 2,025,619 354,871 1,745,421 20 1982 2,883,487 2,205,463 678,024 2,072,330 33 ro 1983 3,504,804 2,631,492 873,312 2,365,216 37 co 1984 4,168,768 3,035,175 1,133,593 2,558,640 44 1985 5,026,965 2,951,651 2,075,314 2,929,240 71 1986 5,772,640 3,854,387 1,918,253 2,762,100 69 1987 6,860,938 4,588,907 2,272,031 3,011,316 75 1988 7,688,570 5,347,802 2,312,487 3,195,862 72 Police Pension and 1980 $1,864,537 $ 953,581 $ 910,956 $1,322,025 69% Retirement Fund 1981 2,149,567 1,133,669 1,015,898 1,493,368 68 1982 2,610,684 1,209,648 1,401,036 1,777,287 79 1983 3,183,498 1,427,823 1,755,675 1,882,987 93 I 1984 3,786,011 1,789,149 1,996,862 1,804,140 100 1985 4,541,353 1,736,659 2,804,694 2,083,739 100 1986 5,186,260 2,117,725 3,068,535 2,269,588 100 1987 6,169,600 2,527,819 3,641,781 2,730,191 100 1988 6,948,150 2,867,545 4,064,609 3,285,230 100 I **Actuarial pension benefit obligation values determined by using the unit credit actuarial cost method are not available prior to fiscal year ended June 30, 1980. CITY OF IOWA CITY, IOWA w INVESTMENT PERFORMANCE MEASUREMENTS - PENSION TRUST FUNDS COMPARATIVE RATES OF RETURN ON FIXED INCOME SECURITIES* Fiscal Year Ended June 30, 1988 w „ Fire Pension and Retirement Fund 9.88% Police Pension and Retirement Fund 9.88% w Comparison Indexes It U.S. Government Bonds Intermediate w Maturities 8.64% It • *These rates, including the indexes, are exclusive of unrealized gains or losses. 1. Source: 'Standard & Poors Weekly Bond Index r� -129- 7/ CITY OF IOWA CITY, IOWA SUMMARY OF BONDED INDEBTEDNESS DEBT SERVICE REQUIREMENTS TO MATURITY (INCLUDING INTEREST) Year Special Ended General Capital Assessment Revenue June 30 Obligation Leases Bonds Bonds Total 1989 $ 3,556,720 $ 35,839 $ 52,000 $ 3,640,938 $ 7,285,497 1990 3,170,340 35,839 48,000 4,262,963 7,517,142 1991 3,058,265 35,839 44,000 4,190,112 7,328,216 1992 2,916,540 - - - - 4,247,645 7,164,185 1993 1,896,265 - - - - 4,237,707 6,133,972 1994 1,825,340 - - - - 4,231,803 6,057,143 1995 1,400,315 - - - - 4,238,480 5,638,795 1996 1,351,240 - - - - 4,213,017 5,564,257 1997 824,490 - - - - 4,195,685 5,020,175 1998 667,990 - - - - 4,209,315 4,877,305 1999 523,850 - - - - 4,193,072 4,716,922 2000 521,250 - - - - 4,182,092 4,703,342 2001 516,500 - - - - 4,180,015 4,696,515 2002 535,000 - - - - 4,166,075 4,701,075 2003 - - - - - - 3,995,725 3,995,725 2004 - - - - - - 3,988,250 3,988,250 2005 - - - - - - 3,540,025 3,540,025 2006 - - - - - - 3,541,825 3,541,825 2007 - - - - - - 3,531,925 3,531,925 2008 - - - - - - 3,534,350 3,534,350 2009 - - - - - - 3,547,150 3,547,150 2010 - - - - - - 3,544,350 3,544,350 2011 - - - - - - 3,549,975 3,549,975 2012 - - - - - - 3,538,050 3,538,050 2013 Total - - 22 764 105 - - - - 107 517 144 000 3 532 600 98 233 144 3 532 600 121 248 766 -130- % Source: 'Johnson County Treasurer's Office w -131- �� CITY OF IOWA CITY, IOWA SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years Fiscal Year Current Current Ratio of Total Ended Assessments Assessments Collection Outstanding June 30 Due' Collected*' to Amount Due Assessments' ^r 1979 $34,071 $ 38,031 112 $125,583 1980 27,572 39,466 143 92,974 M. 1981 64,296 27,947 43 490,380 i� w, 1982 64,086 69,693 108 434,745 1983 57,851 90,080 156 346,691 1984 48,793 32,701 67 314,915 1985 53,015 57,208 107 405,779 1986 52,827 83,017 157 731,452 1987 80,371 106,462 132 614,990 1988 64,816 75,193 116 543,851 Note: *The current assessment collected includes the amounts collected on the current assessments, past due assessments and the future installments. Source: 'Johnson County Treasurer's Office w -131- �� CITY OF IOWA CITY, IOWA GENERAL GOVERNMENTAL* EXPENDITURES AND TRANSFERS BY FUNCTION Last Ten Fiscal Years Fiscal Year Ended June 30 General Police Fire 1979** $2,255,513 $1,142,746 $ 911,030 1980 2,753,291 1,495,435 1,215,181 1981 2,737,624 1,753,471 1,287,162 1982 2,473,827 1,863,584 1,508,722 1983 2,952,670 1,838,585 1,405,074 1984 3,602,827 2,073,938 1,409,738 1985 3,522,935 2,175,223 1,407,355 1986 4,261,394 2,340,183 1,565,839 1987 3,880,799 2,571,726 2,020,871 1988 4,663,661 2,795,861 2,569,503 Transportation $2,347,254 2,362,151 3,208,192 1,764,287 1,734,394 1,784,711 1,888,675 1,946,445 1,888,190 1,756,975 Notes: *Includes General Fund, Debt Service Fund and Special Revenue Funds. **Fiscal year 1979 was computed on a cash basis. -132- Leisure and Cultural $1,329,903 1,502,101 1,845,378 2,094,305 2,317,470 2,591,485 2,761,521 3,126,809 2,993,953 3,7.95,811 w ie Other Urban it Community Shared Federal Development Development Revenue Revenue Action Debt Block Grant and Grants Sharing Grant Service Transfers Total �} $ 950,843 $163,987 $ - - $ - - $1,291,755 $2,690,922 $13,083,953 w It 2,127,735 186,510 - - - 1,238,846 2,263,960 15,145,210 2,818,350 184,374 - - - 1,192,642 2,115,270 17,142,463 r-� It 1,143,788 25,478 - - - - 1,523,672 2,711,145 15,108,808 i.� 1,224,944 139,742 - - - 1,595,353 2,786,392 15,994,624 1,034,447 49,970 443 - 1,575,052 2,705,233 16,827,844 t.I 561,209 62,146 - - - - 1,785,773 3,249,739 17,414,576 if 802,524 163,533 697 - - 1,934,725 3,061,493 19,203,642 i-, 775,607 180,672 764 100,000 2,733,690 2,991,636 20,137,908 965,106 102,844 328 1,260 3,014,113 3,555,366 22,720,828 �M �M I -133- %/ CITY OF IOWA CITY, IOWA GENERAL GOVERNMENTAL* REVENUES AND OTHER FINANCING SOURCES BY SOURCE — Last Ten Fiscal Years Fiscal Year Intergov- Ended June 30 Property Taxes Licenses and ernmental Charges for Fines and ^ Permits Revenue Services Forfeitures 1979** $ 51159,698 $208,312 $3,381,632 $1,122,183 $259,954 1980 6,259,040 238,864 4,478,383 1,306,648 246,222 1981 7,457,729 200,159 5,463,234 1,550,379 205,172 — 1982 7,325,605 223,143 4,905,214 978,713 272,462 1983 8,248,364 314,665 4,075,418 1,068,234 285,157 — ~ 1984 8,273,028 343,605 3,736,106 1,296,247 311,117 1985 8,858,968 243,680 3,662,155 1,319,445 328,934 1986 9,865,284 310,341 4,000,077 1,472,637 365,709 -' 1987 10,888,383 332,213 3,854,607 1,641,669 345,455 1988 12,438,452 367,403 3,883,193 1,798,396 391,710 Notes: *Includes General Fund, Debt Service Fund and Special Revenue Funds, **Fiscal years 1978-1979 and prior were computed on a cash basis, whereas later years were computed on a modified accrual basis. -134- %� Use of ^ Money and Miscellaneous „ Property Revenue Transfers Total r $151,447 $1,117,892 $1,937,959 $13,339,077 278,314 512,293 2,122,937 15,442,701 245,185 399,434 1,801,839 17,323,131 279,156 299,823 1,519,013 14,993,129 220,103 723,259 1,744,884 16,680,084 242,139 569,205 1,749,899 16,521,346 264,097 500,553 2,443,657 17,621,489 258,539 338,544 2,249,003 18,860,134 424,063 581,209 2,860,066 20,927,665 494,328 550,038 3,292,238 23,215,758 CITY OF IOWA CITY, IOWA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (cash basis) Assessment Collection Total Current Tax Year Year Tax Levy Collections 1977 1978-79 $ 5,676,460 $ 5,607,321 1978 1979-80 6,267,062 6,233,220 1979 1980-81 7,463,393 7,393,546 1980 1981-82 7,801,522 7,782,739 1981 1982-83 8,727,383 8,654,313 1982 1983-84 8,890,584 8,773,320 1983 1984-85 9,518,974 9,342,941 1984 1985-86 10,494,048 10,288,375 1985 1986-87 11,269,792 11,001,522 1986 1987-88 12,396,794 12,828,356 Percent Total as of Levy Delinquent Tax Total Tax a Percent of Collected Collections Collections Current Levy 98.8% $ 28,229 $ 5,635,550 99.3% 99.5 37,693 6,270,913 100.1 99.1 48,656 7,442,202 99.7 99.8 84,947 7,867,686 100.8 99.2 114,446 8,768,759 100.5 98.7 98,127 8,871,447 99.8 98.2 101,881 9,444,822 99.2 98.0 132,517 10,420,892 99.3 97.7 231,481 11,233,003 99.6 103.5 304,644 13,133,000 106.0 I H CITY OF IOWA CITY, IOWA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS' Last Ten Fiscal Years (per $1,000 assessed valuation) Source: "'Tax Levies for Johnson County; Iowa," compiled by the Johnson County Auditor. -137- Iowa City Ratio of Collection School City of Johnson Area State of Iowa City Year District Iowa City County School Iowa Total to Total 1978-79 $14.850 $12.078 $4.997 $.416 $ ** $32.341 37.3 1979-80 13.456 14.436 5.194 .416 33.502 43.1 1980-81 13.508 15.523 5.290 .407 34.728 44.7 1981-82 13.665 15.245 6.185 .414 35.509 42.9 1982-83 13.657 15.645 5.526 .466 35.294 44.3 1983-84 13.367 14.912 5.768 .459 34.506 43.2 1984-85 11.374 13.656 5.164 .444 .015 30.653 44.6 1985-86 11.247 13.889 4.894 .445 .010 30.485 45.6 1986-87 11.381 13.613 4.915 .445 .005 30.359 44.8 1987-88 10.928 14.553 4.912 .472 .005 30.870 47.1 Notes: **Until 1983-84, the county levied a tax for testing livestock for brucellosis and tuberculosis. Beginning in 1984-85, this tax is levied by the State of Iowa. Source: "'Tax Levies for Johnson County; Iowa," compiled by the Johnson County Auditor. -137- CITY OF IOWA CITY, IOWA NOTES: 'As per the Code of Iowa, Volume II, Chapter 441, paragraph 441.21 1.a., "All real and tangible personal property subject to taxation shall be valued at its actual value which shall be entered opposite each item, and, except as otherwise provided in this section, shall be assessed at one hundred percent of its actual value, and the value so assessed shall be taken and considered as the assessed value and taxable value of the property upon which the levy shall be made." •In 1971 the state government began taxing banks and supplying the taxing agencies with a replacement of the monies and credits tax. The value of monies and credits for those institutions was excluded from the estimated actual value total. 'The utilities value included in this figure is as of 1987, since this value is not calculated by the assessor's office until December of each year. `Property was reassessed in 1985, therefore creating a substantial increase in the non-taxable property value. °Personal Property Tax was eliminated in 1988. Source: 'City of Iowa City Assessor's Office -138- ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY AND NON-TAXABLE PROPERTY* Last Ten Fiscal Years' Real Property Personal Property Total Collection Assessed Value/ Assessed Value/ Assessed Value/ Assessment Year Ended Estimated Estimated Estimated January 1 June 30 Actual Value Actual Value Actual Value 1979 1981 $ 592,608,447 $31,127,903 $ 623,736,350 1980 1982 801,232,944 31,127,990 832,360,934 1981 1983 885,505,416 31,127,919 916,633,335 1982 1984 929,852,149 31,127,911 960,980,060 1983 1985 1,093,527,819 31,127,903 1,124,655,722 1984 1986 1,139,387,378 31,127,851 1,170,515,229 1985 1987 1,217,907,203 31,127,932 1,249,035,135 1986 1988 1,246,381,671 - -d 1,246,381,671 1987 1989 1,291,185,431 - -d 1,291,185,431 1988 1990 1,310,386,871b - -d 1,310,386,871 NOTES: 'As per the Code of Iowa, Volume II, Chapter 441, paragraph 441.21 1.a., "All real and tangible personal property subject to taxation shall be valued at its actual value which shall be entered opposite each item, and, except as otherwise provided in this section, shall be assessed at one hundred percent of its actual value, and the value so assessed shall be taken and considered as the assessed value and taxable value of the property upon which the levy shall be made." •In 1971 the state government began taxing banks and supplying the taxing agencies with a replacement of the monies and credits tax. The value of monies and credits for those institutions was excluded from the estimated actual value total. 'The utilities value included in this figure is as of 1987, since this value is not calculated by the assessor's office until December of each year. `Property was reassessed in 1985, therefore creating a substantial increase in the non-taxable property value. °Personal Property Tax was eliminated in 1988. Source: 'City of Iowa City Assessor's Office -138- W 1� II Non -Taxable r° Monies and Credits' Property Value i. $20,500 $38,469,858 1�. 21,307 38,643,728 p 28,897 44,886,610 43,263 46,936,910 30,148 48,265,500 29,177 48,265,500 28,816 50,934,100 28,816 60,943,030` - h 28,416 60,986,750 28,416 62,575,700 -139- 7/ -140- 1 .71 CITY OF IOWA CITY, IOWA PROPERTY VALUE, BUILDING PERMITS AND BANK DEPOSITS Last Ten Fiscal Years Fiscal New Construction Year Number Ended Property Value of Value June 30 Real Personal Nan -Taxable Permits of Permits* 1979 $ 592,608,447 $31,127,903 $38,469,858 253 $19,634,137 1980 801,232,944 31,127,990 38,643,728 243 26,221,404 ^ 1981 885,505,416 31,127,919 44,886,610 195 16,795,575 1982 929,852,149 31,127,911 46,936,910 186 19,673,484 1983 1,093,527,819 31,127,903 48,265,500 305 31,198,875 1984 1,139,387,378 31,127,851 48,265,500 322 39,031,017 1985 1,217,907,203 31,127,932 50,934,100 152 15,007,197 1986 1,246,381,671 - - 60,943,030 160 17,628,326 1987 1,291,185,431 - - 60,986,750 178 12,749,684 1988 1,310,386,871 - - 62,575,700 168 15,668,861 Note: 17 *Permit values are based on estimated construction costs. "' Source: — 'Local Bank Offices - Hills Bank & Trust, Perpetual Savings, United Federal Savings Bank, Iowa State Bank & Trust, Hawkeye State Bank, First National Bank, Banc Iowa Savings Bank, and Mid -American Savings Bank Iowa City Assessor's Office 'Decrease between 1984-85 and 1985-86 was due to American Federal Savings removing two branch offices. -140- 1 .71 Remodeling Repair and Additions Number Value of Permits of Permits* 358 $5,373,034 359 4,720,415 294 6,385,303 233 3,222,768 227 8,091,460 230 4,533,696 302 5,879,171 265 5,961,549 321 7,418,621 337 9,491,296 Total Building Permits Number Value of Permits of Permits 711 $25,007,171 602 30,941,819 489 23,180,878 419 22,896,252 532 39,290,335 552 43,564,713 454 20,886,368 425 23,589,875 499 20,168,305 505 25,160,157 -141- Bank Deposits' $357,228,954 393,098,669 423,724,320 474,105,060 554,556,185 678,458,975 618,214,939 646,741,1613 530,662,5913 533,591,266 CITY OF IOWA CITY, IOWA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years Assessment Ratio of Net Net Bonded as of Gross Debt Due Debt Service Net Bonded Debt to Debt January 1 Population Assessed Value' Bonded Debt and Unpaid Fund Balance Bonded Debt Assessed Value Per Capita 1979 50,508 $ 623,736,350 $12,707,000 $ - - $ 32,976 $12,674,024 .0203 to 1 $251 1980 50,508 832,360,934 11,763,000 - - (153,439) 11,916,439 .0143 to 1 236 1981 50,508 916,633,335 13,389,000 - - 168,791 13,220,209 .0144 to 1 262 1982 50,508 960,980,060 12,071,000 1,000 110,133 11,959,867 .0124 to 1 237 1983 50,508 1,124,655,722 13,450,000 50,000 583,477 12,816,523 .0114 to 1 254 A 1984 50,508 1,170,515,229 12,150,000 50,000 375,967 11,724,033 .0100 to 1 232 1985 50,508 1,249,035,135 10,500,000 - 325,565 10,174,435 .0081 to 1 201 1986 50,508 1,246,381.,671 13,625,000 - - 473,948 13,151,052 .0106 to 1 260 1987 50,508 1,291,185,431 18,055,000 105,000 123,390 17,826,610 .0138 to 1 353 1988 50,508 1,310,386,871 16,900,000 65,000 250,694 16,584,306 .0127 to 1 328 Source: i 'City of Iowa City Assessor's Office i i CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 1988 COMPUTATION OF LEGAL DEBT MARGIN June 30, 1988 Total assessed valuation Debt limit, 5% of total assessed valuation Debt applicable to debt limit Legal debt margin Source: 'Johnson County Auditor's Office -143- $1.310.386.871 $65,519,344- 16 65,519,344'16 996 724 48522 620 Amount Total General % Applicable Applicable Obligation to the to the Name of Debt City of City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City $16,900,000 100.0% $16,900,000 $335 Johnson County' Clear Creek Total 107 280 17 007 280 .6% 644 816.900.644 - - IL35 Per capital assessed value 25 944 COMPUTATION OF LEGAL DEBT MARGIN June 30, 1988 Total assessed valuation Debt limit, 5% of total assessed valuation Debt applicable to debt limit Legal debt margin Source: 'Johnson County Auditor's Office -143- $1.310.386.871 $65,519,344- 16 65,519,344'16 996 724 48522 620 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL* EXPENDITURES Last Ten Fiscal Years Fiscal Year Ratio of Debt Ended Service to Total June 30 Principal Interest Debt Service 1979** $1,009,000 $ 282,755 $1,291,755 1980 723,890 514,956 1,238,846 1981 698,900 493,742 1,192,642 1982 1,010,350 513,322 1,523,672 1983 1,036,713 558,640 1,595,353 1984 948,799 626,253 1,575,052 1985 1,203,720 582,053 1,785,773 1986 1,278,670 656,055 1,934,725 1987 1,709,623 1,024,067 2,733,690 1988 2,072,138 941,975 3,014,113 Notes: *Includes expenditures and operating transfers made out of the General Fund only. **Fiscal year ended June 30, 1979, was computed on a cash basis. -144- 71. Ratio of Debt Total General Service to General Expenditures Expenditures $ 9,271,235 .139 to 1 9,328,160 .133 to 1 10,831,827 .110 to 1 9,704,726 .157 to 1 10,248,193 .156 to 1 11,462,698 .137 to 1 12,585,982 .142 to 1 14,226,295 .136 to 1 14,927,302 .183 to 1 16,267,008 .185 to 1 Notes: *Includes expenditures and operating transfers made out of the General Fund only. **Fiscal year ended June 30, 1979, was computed on a cash basis. -144- 71. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Fiscal $ 947,758 1,229,279 $515,847 590,120 Parkin Revenue $ 45,833 $ 95,833 4.5 _ Year Ended 1,182,205 607,205 Net Revenue Available for Annual Debt Service Requirements June 30 Revenue Expense Debt Service Principal Interest Total Times Coverage 98,664 6.8 - 1979* $ 553,675 $119,946 $ 433,729 $ - - $ - - $ 8.6 8.3 1980 1981 661,389 873,327 133,344 355,284 528,045 518,043 - - - - 371,222 371,222 1.4 - 1982 1,059,477 550,285 509,192 - - 342,665 342,665 342,665 342,665 1.5 1.5 1983 1984 1,132,348 1,243,865 575,427** 714,304 556,921 105,000 335,483 440,483 1.3 1985 1,605,764 879,798 529,561 725,966 115,000 120,000 331,290 323,065 446,290 443,065 1.2 1.6 1986 1987 1,723,721 1,946,716 868,109 908,235 855,612 1,038,481 130,000 60,000 319,934 490,388 449,934 1.9 r 1988 2,033,581 931,347 1,102,234 165,000 460,838 550,388 625,838 1.9 1.8 Sewer Revenue 1979* 1980 $ 947,758 1,229,279 $515,847 590,120 $ 431,911 639,159 $50,000 $ 45,833 $ 95,833 4.5 1981 1,182,205 607,205 575,000 • 55,000 60,000 42,786 40,771 97,786 100,771 6.5 5.7 1982 1983 1,457,774 1,624,226 783,313 751,993 674,461 872,233 60,000 65,000 38,664 36,637 98,664 6.8 1984 1,658,726 821,689 837,037 65,000 35,340 101,637 100,340 8.6 8.3 1985 1986 1,803,449 1,793,385 858,948 965,058 944,501 828,327 70,000 70,000 33,070 30,298 103,070 9.2 1987 1988 3,077,248 978,509 2,098,739 - - 794,426 100,298 794,426 8.3 2.3 4,784,726 983,028 3,801,698 - - 3,022,550 3,022,550 1.2 Note: *Fiscal year 1979 was computed on a cash basis. **The Fiscal year ended June 30, 1983, expense figure is stated at $190,720 below the June 30, 1983, Parking Fund operating expenses, due to parking lot improvements that were expensed and should not be considered for revenue bond coverage purposes. 'Excludes depreciation. -145- 71 CITY OF IOWA CITY, IOWA DEMOGRAPHIC STATISTICS — Last Ten Fiscal Years* Calendar Year Popula- tion` Per Capita Median Median Family Education Retail Sales 701 2.7 Income' Ages Income Level**' (Approx.)' _ 1950 27,212 *** 25.3 $ 3,245 68.1% $ 34,993,000 1960 33,443 1,914 24.1 5,769 69.5 46,607,000 1970 46,850 3,025 22.6 9,942 82.1 84,322,000 1974 47,744 4,465 23.4 9,942 82.1 125,920,000 1980 50,508 7,247 24.6 22,325 89.5 215,305,000 SchoolEnrollment Unemployment Fiscal Year Public Private 3Rate ° 1979 8,371 701 2.7 1980 8,451 637 3.5 1981 8,256 615 4.7 1982 8,259 635 4.2 1983 8,226 632 3.7 1984 8,278 613 2.9 1985 8,222 617 1.9 1986 8,355 611 2.1 1987 8,595 616 1.7 1988 8,693 626 1.9 Notes: *Ten years of information is presented where available. **Percent of population completing ***Information 12 years of formal schooling or more. not available. - Source: 'U.S. Department of Commerce, Bureau of the Census Iowa City Community School District Office 'Local Private School Offices _ 'Job Service of Iowa / / -146- w CITY OF IOWA CITY, IOWA MISCELLANEOUS STATISTICAL DATA Fiscal Year Ended June 30, 1988 V Date of incorporation April 6, 1853 p. Form of government Council/Manager Area 14,080 acres Miles of streets: Paved (approx.) 174 Unpaved (approx.) 11 r i, Number of street lights 2,229 Police protection: W Number of stations I Number of sworn personnel 53 Fire protection: Number of stations 3 Number of sworn personnel 50 r Municipal water department: Number of customers 14,708 Average daily consumption (in gallons) 6,590,000 Miles of water mains (approx.) 180 Sewers: - Lift stations 14 Miles of sanitary sewers (approx.) 157 Cemetery 1 - Recreation: Municipal Parks - Number of parks 31 Number of acres 617 Municipal swimming pools 3 Golf courses (non -municipal) 4 Other municipal facilities: Recreation Center 1 Ball diamonds PO Tennis courts 12 "^ Senior Center 1 Landfill: M Number of account receivable customers 304 Tons (charge and cash) 104,719 Sanitation: Number of customers 11,587 Tons 14,417 M -147- V CITY OF IOWA CITY, IOWA MISCELLANEOUS STATISTICAL DATA Fiscal Year Ended June 30, 1988 Library 1 — Number of volumes (approx.) 173,485 Educational Institutions': — Elementary schools 17 Junior high schools 3 High schools 3 — Alternative learning centers 1 Community college 1 University 1 — Hospitals 3 City Employees: Permanent 461 Temporary 359 Elections': — Last general election - 1986: Registered voters 36,663 Number of votes cast 16,680 Percentage voting 45.5% Last municipal election - 1987: Registered voters 36,678 Number of votes cast 5,691 Percentage voting 15.52% Source: 'Iowa City Community School District Office 'Johnson County Auditor's Office -148- 71 CITY OF IOWA CITY, IOWA PRINCIPAL TAXPAYERS AND EMPLOYERS Fiscal Year Ended June 30, 1988 Ten largest taxpayers': Iowa -Illinois Gas & Electric2: Old Capitol Center Partners James & Loretta Clark & Pentacrest Garden Procter & Gamble Southgate Development Oral-B Laboratories H.P. Smith American College Testing Sycamore Mall NCS Learning Corp. TOTAL Type of Business Public Utility Shopping Center Apartments Personal Products Manufacturing Real Estate Developer Brush Manufacturing Paper Manufacturing Educational Testing Service Shopping Center Computer Service Total Assessed Value Ten Largest Taxpayers as a Percent of Total Assessed Value Ten major employers': (including full and part-time employees): University of Iowa University of Iowa Hospitals & Clinics Veterans Administration Hospital Sheller -Globe Iowa City Community Schools City of Iowa City American College Testing Mercy Hospital National Computer Systems Procter & Gamble Hy -Vee Sources: 'City of Iowa City Assessor's Office Johnson County Auditor's Office 'Job Service of Iowa and the respective employer -149- Taxable Valuation $ 65,231,935 15,601,080 14,968,691 13,508,675 12,254,597 10,920,866 10,675,237 10,043,682 8,601,200 8,090,777 169 896 740 $1,310,386,871 13.0% 16,345 6,968 1,158 1,200 1,100 820 798 788 608 525 525 // CITY OF IOWA CITY, IOWA SCHEDULE OF LIABILITY AND PROPERTY INSURANCE IN FORCE June 30, 1988 Insurance Company Type of Coverage LIABILITY AND PROPERTY: All Lines Aggregate Program: Lloyd's of London Comprehensive general liability, auto 75% Northfield Insurance 25% liability and police professional liability. Public officials errors and omissions liability. Real and personal property, vehicle damage, electronic data processing equipment, and contractor's equipment. Twin City Fire Insurance Co. Excess layer over the $500,000 property primary coverage. Twin City Fire Insurance Co. Excess layer over the $500,000 property difference in conditions (DIC) primary coverage. St. Paul Surplus Lines Insurance Co. Excess layer over the $250,000 comprehensive general liability, auto liability and police professional liability primary coverage. Northfield Insurance Excess liability layer over the $2,000,000 comprehensive general liability, auto liability, and police professional liability primary coverage. National Union Fire Insurance Co. Excess layer over the $50,000 public officials errors and omissions liability primary coverage. United States Aviation Underwriters, Inc. Airport and hangarkeeper's liability. Travelers Insurance Company Boiler and machinery coverage at eight locations. State Farm Insurance Company Public Housing comprehensive general liability and property. FIDELITY BONDS: Hartford Insurance Company Public employees blanket bond Finance Director/City Treasurer Assistant Finance Director -150- 7/ W W Term of Limits of Coverage Policy $250,000 Combined Single Limit - claims made 6/88 thru 6/89 $50,000 self-insured retention (SIR) $50,000 claims made - $50,000 SIR - $250,000 6/88 thru 6/89 aggregate $500,000/occurrence - $50,000 SIR 6/88 thru 6/89 $50,000,000 value limit - $10,000,000 max- 6/88 thru 6/89 imum/location $50,000,000 value limit - $10,000,000 max- 6/88 thru 6/89 imum/location, $10,000,000 annual aggregate $1,750,000 aggregate claims made except auto 6/88 thru 6/89 liability is combined single limit $3,000,000 aggregate claims made except auto 6/88 thru 6/89 liability is combined single limit $1,000,000 aggregate claims made 6/88 thru 6/89 $5,000,000/Owners, Landlords & Tenants form 4/87 thru 4/88 occurrence; $1,000,000/aircraft $1,000,000/occurrence 6/88 thru 6/89 $500,000/occurrence - liability; $2,735,712 10/87 thru 10/88 property limit $50,000 honesty blanket bond/all employees; 6/87 thru 6/88 $400,000/Finance Director 6/87 thru 6/88 $400,000/Assistant Finance Director 10/87 thru 10/88 -151- Annual Premium $225,200 $207,725 $ 87,975 $ 35,628 $ 6,500 $ 3,610 $ 7,436 $ 2,383 $ 1,400 $ 1,400 7/ CITY OF IOWA CITY, IOWA PARKING RATES Last Ten Fiscal Years (In Dollars) 41 hour = $.15; 2 hours = $.45; 3 hours = $.90; over 3 hours = $2.50. 'Municipal ,lot was closed to commercial parking. `Flat rate of #.50 when cashier is not on duty. °First hour rate; subsequent hours rate $.30. •Flat rate of $.75 when cashier is not on duty. 'Employee permits discontinued in ramps. *CBD refers to Central Business District. Permits Commercial/Employee (per month) Fiscal On -Street Off -Street *CBD Overtime Year End Meters Meters Meters Municipal Lot Ramps Peripheral *CBD Parking June 30(per hour(per hour(per hour (per hour)(per hour Lots Ramps Lots Violation 1979 $.10. $.10 $.20 .15' - - 12/ 6 - - 12/6 2.00 j 1980 j .10 .10 .20 .15' .25 16/ 8 27.50/ 8.00 20/8 2.00 1981 .10 .10 .20 .15' 25 16/ 8 27.50/ 8.00 20/8 2.00 1982 .10 .10 .20 - -° .25 16/ 8 27.50/ 8.00 20/8 2.00 u~i 1983 .10 .10 .20 - -b .25` 16/ 8 27.50/ 8.00 20/8 2.00 N 1984 .10 .10 .20 - -° .25` 16/ 8 27.50/ 8.00 - - 2.00 1985 .20 .30 .30 - -b .35° 20/10 32.50/10.00 - - 2.00 1986 .30 .30 .40 - -b .40' 30/15 40.00/ - -` - - 3.00 1987 .30 .30 .40 - -b .40' 30/15 40.00/ - -` - - 3.00 1988 .30 .30 .40 - -b .40' 30/15 40.00/ - -` - - 3.00 41 hour = $.15; 2 hours = $.45; 3 hours = $.90; over 3 hours = $2.50. 'Municipal ,lot was closed to commercial parking. `Flat rate of #.50 when cashier is not on duty. °First hour rate; subsequent hours rate $.30. •Flat rate of $.75 when cashier is not on duty. 'Employee permits discontinued in ramps. *CBD refers to Central Business District. w I to CITY OF IOWA CITY, IOWA w PROPERTY TAX, ROAD USE TAX 8 HOTEL/MOTEL TAX REVENUE �,• Last Ten Years For Fiscal Year Ended June 30 Property Tax Road Use Tax Hotel/Motel Tax Total [a 1979* $ 5,642,049 $1,314,401 $ - -** $ 6,956,450 1980 6,269,040 1,330,198 - -** 7,599,238 u 1981 7,457,729 1,288,400 - -** 8,746,129 1982 7,325,605 1,429,851 - -** 8,755,456 1983 8,790,134 1,513,555 -** 10,303,689 1984 8,831,566 1,580,096 99,127 10,510,789 1985 9,531,554 1,693,919 132,836 11,358,309 9 1986 10,526,175 1,759,757 210,542 12,496,474 1987 11,333,554 1,872,289 219,715 13,425,558 1988 13,222,936 1,917,477 242,521 15,382,934 11 �7 *Fiscal year ending June 30, 1979, is cash basis. **Hotel/Motel Tax began in fiscal year ended June 30, 1984. i•i 1` I M 11 i" -153- I// CITY OF IOWA CITY, IOWA PROPERTY TAX RATES & TAX DOLLARS LEVIED Last Ten Fiscal Years Tax Rates* Fiscal $3,820,515 $ 494,083 $208,547 $1,153,315 $ - - $ - - $ 5,676,460 Year 4,448,270 596,327 263,306 952,851 - - 6,308 6,267,062 Ended 4,840,154 Trust Tort Debt - - 5,783 7,463,393 June 30 General & Agency Liability Service Transit A9land Total 1979 $8.100 $1.059 $.447 $2.472 $ - - $ - - $12.078 1980 8.100 1.096 .484 1.752 - - 3.004 14.436 1981 8.100 1.699 .187 2.533 - - 3.004 15.523 1982 8.100 1.512 .407 2.222 - - 3.004 15.245 1983 8.100 1.570 .369 2.602 - - 3.004 15.645 1984 8.100 1.691 .089 1.848 .180 3.004 14.912 1985 7.718 .758 .166 1.830 .180 3.004 13.656 1986 7.510 .693 .370 1.952 .360 3.004 13.889 1987 7.107 .415 .835 1.892 .360 3.004 13.613 1988 7.143 .709 .696 2.520 .481 3.004 14.553 Tax Dollars Levied 1979 $3,820,515 $ 494,083 $208,547 $1,153,315 $ - - $ - - $ 5,676,460 1980 4,448,270 596,327 263,306 952,851 - - 6,308 6,267,062 1981 4,840,154 1,006,264 110,544 1,500,648 - - 5,783 7,463,393 1982 5,169,872 958,634 258,126 1,409,065 - - 5,825 7,801,522 1983 5,602,550 1,077,570 253,030 1,786,481 - - 7,752 8,727,383 1984 6,055,152 1,255,169 66,369 1,372,150 133,638 8,106 8,890,584 1985 6,901,472 673,852 147,338 1,626,935 159,991 9,386 9,518,974 1986 7,247,084 664,657 355,300 1,872,145 345,354 9,508 10,494,048 1987 7,555,463 438,917 882,438 2,003,195 380,077 9,702 11,269,792 1988 7,672,129 757,208 743,438 2,700,618 513,520 9,881. 12,396,794 *Tax rate per $1,000. -154- A IKF�6''Peat Marwick INDEPENDENT AUDITORS' REPORT — SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE To The Honorable Mayor and Members of City Council City of Iowa City, Iowa: We have audited the general purpose financial statements of the City of Iowa City, Iowa for the year ended June 30, 1988, and have issued our report thereon dated October 14, 1988. These general purpose financial statements are the responsibil— ity of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, issued by the U.S. General Accounting Office. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and whether management has complied with laws and regulations and has established and maintained a system of internal controls. An audit In accordance with those standards includes examining, on a test basis, evi— dence supporting the amounts and disclosures in the general purpose financial statements and compliance with laws and regulations. An audit also includes as— sessing the accounting, principles used and significant estimates made by manage— ment, as well as evaluating the overall financial statements presentation. We be— lieve that our audit provides a responsible basis for our opinions. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Iowa City, Iowa, taken as a whole. The sup— plementary information included in the accompanying schedule of federal and state financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such supplementary in— formation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, Is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Des Moines, Iowa October 14, 1988 Pa_�, �r, ��,- ;, o- Ca. —155— I 7� CITY OF IOWA CITY, IOWA SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE PROGRAMS June 30, 1988 Grant Title DIRECT FEDERAL PROGRAMS: Department of Community Development Block Grant: Housing and Metro Entitlement Urban Development Metro Entitlement B87 -MC -19-0009 Metro Entitlement 14.218 Metro Entitlement 93,217 Rental Rehabilitation Program R84 -MC -19-0203 Rental Rehabilitation Program 14.230 Rental Rehabilitation Program 27,966 Rental Rehabilitation Program R86 -MC -19-0203 Section 312 Rehab Loan 14.230 Section 312 Rehab Loan 12,847 Public Housing Administration 0-0726-006748 Section 8 Existing 14.220 Section 8 Voucher Program 0 Low Rent Public Housing Operations IA05-EO22-011 Fair Housing Assistance Co-op 14.156 Fair Housing Assistance Co-op 407,745. Fair Housing Assistance Co-op Department of Section 9 Operating Assistance Grant Transportation Section 9 Capital Grant (Computer) 132,995 Section 3 Capital Grant (Bus Acquisition) HA -15070 Section 3 Capital Grant (Bus Acquisition) 14.401 Section 3 Capital Grant (Transit Facility) 1,343 Section 9 Capital Grant (Engine Repair) HA -15335 Section 8 Planning Grant - FY88 20.507 Section 8 Planning Grant - FY87 187,376 FHWA - Benton St. Bridge Widening IA-90-XO63 FHWA - Camp Cardinal Road Bridge 20.507 FHWA/FAUS - Dubuque/Iowa Improvements Environmental Wastewater Treatment Facility Protection Agency 0 CFDA No. Grant No. FY88 Expenditures 14.218 B85 -MC -19-0009 $ 0 14.218 B86 -MC -19-0009 389,471 14.218 B87 -MC -19-0009 436,515 14.218 888 -MC -19-0009 93,217 14.230 R84 -MC -19-0203 2,231 14.230 R85 -MC -19-0203 27,966 14.230 R86 -MC -19-0203 14,922 14.230 R87 -MC -19-0203 12,847 14.220 0-0726-006748 36,114 14.220 0-0726-006941 0 14.156 IA05-EO22-011 1,429,153 14.156 IA-05-VO22-001/007 407,745. 14.850 IA -022003 and IA-05-PO22-004&5 132,995 14.401 HA -15070 4,907 14.401 HA -12691 1,343 14.401 HA -15335 0 20.507 IA-90-XO85 187,376 20.507 IA-90-XO63 9,292 20.507 IA -03-0051 0 20.507 IA-90-XO78 0 20.507 IA -03-0044 (29,141) 20.507 IA-90-XO82 4,220 20.505 IA -08-8016 20,000 20.505 IA -08-8015 0 20.205 BRM -M -4044(1)--8B-52 0 20.205 BROS-521C(1)-85-52 0 20.205 M-4055(1)-81-52 12,115 66.418 C190830-04 0 (continued). CITY OF IOWA CITY, IOWA SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE PROGRAMS, Continued June 30, 1988 Grant Title FEDERAL PROGRAMS -PASS THROUGH FUNDS: Iowa Department Highway 6 Traffic Signal System of Energy Iowa Department of.Transpprtation National Endowment for the Humanities State Library of Iowa Iowa Department of Economic 00 Development STATE PROGRAMS: Iowa Department of Transportation Iowa Department of Economic Development Transit "PL" Funds FY88 Transit "PL" Funds FY87 NEH Challenge Grant "Marc" Cataloging System Grant LSCA Visually Disabled Grant Emergency Shelter Grant Program Emergency Shelter Grant Program Iowa 1/Burlington Bridge Overlay State Transit Assistance State Transit Assistance -Capital Grant State Exxon Overcharge Funds Heinz Road Improvements Scott Boulevard Paving Mayor's Youth Corps FY88 Mayor's Youth Corps FY87 Iowa Youth Corps - 6/1/88-8/31/88 Iowa Youth Corps - 6/1/87-8/31/87 Iowa Conservation Corps/Young Adults Iowa Conservation Corps/Young Adults Iowa Conservation Corps/Volunteer DNR/Water Access Grant FY88 CFDA No. Grant No. Expenditures 81.086 EXG-87-12 $ 33,725 20.505 IA-PL/8-FY88-JCCOG 21,000 20.505 IA-PL/8-FY87-JCCOG 0 45.013 CQ -20084.87 42,000 84.034 86 -I -033 -LSCA I 0 84.034 87 -I -088 -LSCA 1 2,905 14.510 87 -ES -005 17,398 14.510 87 -ES -514 1,463 Total Federal Financial Assistance 3 311 779 Agreement #87-9-054 $ 0 Contract #1135 100,009 Contract #1159 0 Contract #1049 14,251 RMX-3715(1)-9-E-42 169,309 RMX-3715(1)-9-E-42 760,523 85-8-10-IS08 19,088 85-7-10-IS06 0 87-8-10-11 394 87-7-10-13 16,351 87-7-10-YA13 23,190 87-8-10-YAOI 11,509 85 -8 -10 -VCO2 2,125 Proj. H210 2 Total State Financial Assistance 1 116 751 CITY OF IOWA CITY, IOWA Notes to Schedule of Federal and State Financial Assistance Programs Year Ended June 30, 1988 r (1) General The accompanying Schedule of Federal and State Financial Assistance Programs presents the activity of all federal and state financial assistance programs of the City of Iowa City, Iowa, for the year ended June 30, 1988. The City of Iowa City reporting entity is described in note 1 to the City's general purpose financial state- ments. All federal and state agencies as well as federal and state financial assistance passed through other government agencies is " included on the Schedule. (2) Basis of Accounting II The accompanying Schedule of Federal and State Financial Assistance PRograms is presented using the cash basis of accounting (cash receipts are recorded in the year cash is received by the City and cash disbursements are recorded in the year the City issued the warrant). (3) Relationship to General Purpose Financial Statements Federal and state financial assistance revenues are reported in the City's general purpose financial statements on the modified accru- al/accrual basis of accounting which is described in Note 1 to the City's general purpose financial statements. -159- 71 � I KPM&Peat Marwick INDEPENDENT AUDITORS' REPORT — INTERNAL ACCOUNTING CONTROLS AT THE GENERAL PURPOSE FINANCIAL STATEMENT LEVEL To The Honorable Mayor and Members of City Council City of Iowa City, Iowa: We have audited the general purpose financial statements of the City of Iowa City, Iowa, for the year ended June 30, 1988, and have issued our report thereon dated October 14, 1988. These general purpose financial statements are the res— ponsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Ile conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organizations Programs, Activities and Functions, issued by the U.S. General Accounting Office. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and whether management has complied with laws and regulations and has established and maintained a system of internal controls. An audit in accordance with these standards includes examining, on a test basis, evi— dence supporting the amounts and disclosures in the general purpose financial statements and compliance with laws and regulations. An audit also includes as— sessing the accounting principles used and significant estimates made by manage— ment, as well as evaluating the overall financial statements presentation. Ile be— lieve that nur audit provides a reasonable basis for our opinions. Under the date October 14, 1988, we reported separately on the results of our study and evaluation of internal accounting and administrative controls used in adninintering federal financial assistance programs. The results of our study and evaluation of internal controls other than those used in administering federal fi— nancial assistance programs are presented herein. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: purchasing/disbursements, revenues/ receipts, and payroll. The pur— pose of our study and evaluation was to determine the nature, timing and extent of auditing procedures necessary for expressing an opinion on the general purpose fi— nancial statements of the City of Iowa City, Iowa. Our study and evaluation was more limited than would be necessary to express an opinion on the system of in— ternal control taken as a whole or on any of the categories of control identified above. The management of the City of Iowa City, Iowa, is responsible for establishing and maintaining a system of internal accounting control. In fulfilling that responsi— bility, estimates and judgnents by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transac— tions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with —161- 71 eenerally accepted accounting principles. Because of inherent limitations in any cvsten of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. I Our scudy and evaluation made for the limited purpose described in the first three paragraphs would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Iowa City, Iowa, taken as a whole or on any of the catego- ries of controls identified in the third paragraph. However, our study and evaluation and our audit disclosed the following condition that we believe results in more than a relatively low risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements of the City of Iowa City, Iowa, may occur and not be detected in a timely period: Electronic Data Processing (EDP) Controls Condition: The number of employees involved in the EDP functions is not condusive to adequate segregation of duties. In addition, several employees have incompatible responsibilities in the EDP and accounting functions. City Response: Subsequent to year end the City reorganized its Accounting and Electronic Data Processing operations into separate and distinct divisions. Included with this reorganization was the elimination of the overlapping management responsibilities of the City Controller by establishing the position of Data Processing Manager. It is the City's intention that this reorganization will enhance the level of control that currently exists within the Electronic Data Processing operation. In our letter to management dated October 14, 1988, we have separately communicat- ed our observations and recommendations regarding certain other matters, including ithose pertaining to nonmaterial internal control findings. These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied to our audit of the 1988 general purpose financial statements, and this report does not affect our reports on the general purpose fi- nancial statements dated October 14, 1988. This report is intended solely for the use of management, the City Council, and the Department of Housing and Urban Development and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Iowa City, Iowa, is a matter of pub- lic record. Des Moines, Iowa October 14, 1988 -162- 7/ KPAW-Peat Marwick INDEPENDENT AUDITORS' REPORT - INTERNAL ACCOUNTING ANO ADMINISTRATIVE CONTROLS AT THE FEDERAL FINANCIAL ASSISTANCE PROGRAII LEVEL To the Honorable Mayor and !lembers of City Council City of Iowa City, Iowa: Ne have audited the general purpose financial statements of the City of Iowa City, Iowa, for the year ended June 30, 1988, and have issued our report thereon dated October 14, 1988. These general purpose financial statements are the responsibil- ity of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. He conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of 0118 Circular A-128, Audits of State and Local Governments. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and whether management has complied with laws and regulations and has established and maintained a system of internal controls. An audit in accordance with these standards includes exam- ining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements and compliance with laws and regulations. An audit also includes assessing the accounting principles used and significant esti- mates made by management, as well as evaluating the overall financial statement presentation. Ile believe that our audit provides a reasonable basis for our opin- ions. Tinder the date October 14, 1988, we reported separately on the results of our study and evaluation of internal accounting controls performed in connection with our audit of the general purpose financial statements. The results of our study and evaluation of internal accounting and administrative controls used in adminis- tering federal financial assistance programs are presented herein. For the purpose of this report, we have classified the significant internal ac- counting and administrative controls used in administering the major federal fi- nancial assistance programs in the following categories: Accounting controls Purchasing/ disbursements Revenues/receipts Payroll -163- II 7/ Administrative controls Political activity Davis—Bacon Act Civil rights Cash management velocation assistance and real property acquisition Federal financial reporting Our study and evaluation included all of the applicable control categories listed above. The management of the City of Iowa City, Iowa, is responsible for establishing and maintaining internal control systems used in administering federal financial as— sistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of con— trol procedures. The objectives of internal control systems used in administering � federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; re— sources are safeguarded against waste, loss, and misuse; and reliable data is ob— tained, maintained, and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and adminis— trative controls used in administering federal financial assistance programs, er— rors or irregularities may nevertheless occur and not be detected. Also, projec— tion of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. During the year ended June 30, 1988, the City of Iowa City, Iowa expended 83 per— cent of its total federal financial assistance under major federal financial as— sistance programs. Iiith respect to internal control systems used in administering the major federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and ir— regularities, determining whether necessary procedures are prescribed and are be— ing followed satisfactorily, and evaluating any weaknesses. (lith respect to the internal control systems used solely in administering nonmajor federal financial assistance programs, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control an— vironment and the flow of transactions through the accounting system. According— ly,, our audit would not necessarily disclose material weaknesses in the internal control systems used solely in administering nonmajor federal financial assistance programs. i Our study and evaluation described in the two preceding paragraphs was more limit— ad than would be necessary to express an opinion on the internal control systems I used in administering the major and nonmajor federal assistance programs of the City of Iowa City, Iowa. Accordingly, we do not express an opinion on the intern— al control systems used in administering the major and nonmajor federal financial assistance programs of the City of Iowa City, Iowa. However, our study and eval- -164— uation and our audit disclosed the followine condition that we believe results in more than a relatively low risk that errors or irregularities in amounts that would be material to a federal financial assistance program may occur and not be detected within a timely period: i ! Electronic Data Processinr (EDP) Controls Condition: -- The number of employees involved in the EDP functions is not condusive to adequate segregation of duties. In addition, several employees have incompatible responsibilities in the EDP and accounting functions. I City Response: I -- i J Subsequent to year end the City reorganized its Accounting and Electronic Data Processing operations into separate and distinct divisions. Included with this reorganization was the elimination of the overlapping management responsibilities of the City Controller by establishing the position of Data Processing Manager. It is the City's intention that this reorganization will enhance the level of control that currently exists within the Electronic Data Processing operation. In our letter to management dated October 14, 19A8, we have separately communicated — our observations and recommendations regarding certain other matters, including those pertaining to nonmaterial internal control findings. These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in (1) our audit of the 19AB general purpose financi- al statements and (2) our audit and review of the City's compliance with those laws and regulations for which noncompliance could have a material effect on the allow- ability of program expenditures. This report does not affect our reports on the Ji general purpose financial statements and on the City's compliance with laws and regulations dated October 14, 1988. This report is intended solely for the use of management, the City Council, and the Department of Housing and Urban Development and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Iowa City, Iowa, is a matter of pub- lic record. Des Moines, Iowa October 14, 1988 -165- 1 /�RM6 Peat Marwick INDEPENDENT AUDITORS' REPORT - COMPLIANCE AT THE GENERAL PURPOSE FINANCIAL STATEMENT LEVEL To The Honorable Mayor and Members of City Council City of Iowa City, Iowa: Ue ha:f: audited the general purpose financial statements of the City of Iowa City, Iowa, for the year ended June 30, 1988, and have issued our report thereon dated October 14, 1988. These general purpose financial statements are the responsibil- ity of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. lie conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, issued by the U.S. General Accounting Office. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and whether management has complied with laws and regulations. An audit in accordance with those standards includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements and compliance with laws and regulations. An audit also in- cludes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. lie believe that our audit provides a reasonable basis for our opinion. The management of the City of Iowa City, Iowa, is responsible for the City's com- pliance with laws and regulations. In connection with the audit referred to above, we selected and tested transactions and records to determine the City's compliance with those laws and regulations for which noncompliance could have a material effect on the City's general purpose financial statements. — The results of our tests indicate that, for the transactions and records tested, the City of Iowa City, Iowa, complied with those laws and regulations referred to i — above, except as described in the accompanying schedule of findings and questioned costs. That instance of noncompliance was considered by us in evaluating whether the general purpose financial statements are presented fairly in conformity with generally accepted accounting principles. With respect to the transactions and records not tested by us, nothing came to our attention to indicate the City of j - Iowa City, Iowa, had not complied with laws and regulations other than those laws and regulations for which we noted violations in our testing referred to above. %a�, MakaJ efiv i a� , + Co. Des Moines, Iowa October 14, 19R8 -167- ErPeat Marwick INDEPENDENT AUDITORS' REPORT - COMPLIANCE AT THE FEDERAL FINANCIAL ASSISTANCE PROGRAM LEVEL To The Honorable Mayor and Members of City Council City of Iowa City, Iowa: Ile have audited the general purpose financial statements of the City of Iowa City, Iowa, for the year ended June 30, 1988, and have issued our report thereon dated October 14, 1988. These general purpose financial statements are the responsibil- ity of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organations Programs, Activities and Functions, issued by the U.S. General Accouiz nting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and whether management has complied with laws and regulations and has established and maintained a system of internal controls. An audit in accordance with those standards includes exam- ing, on a test basis, evidence supporting the amounts and disclosures in the gen- eral purpose financial statements and compliance with laws and regulations. An audit also includes assessing the accounting principles used and significant esti- mates made by management, as well as evaluating the overall financial statements presentation. Ile believe that our audit provides a reasonable basis for our opin- ions. The management of the City of Iowa City, Iowa, is responsible for the City's com- pliance with laws and regulations. In connection with the audit referred to a- bove, we selected and tested transactions and records of major federal financial assistance programs and certain nonmajor federal financial assistance programs. The purpose of our testing of transactions and records from those federal finan- cial assistance programs was to obtain reasonable assurance that the City of Iowa City, Iowa, had, in all material respects, administered its major programs and ex- ecuted the tested nonnajor program transactions in compliance with those laws and regulations for which noncompliance could have a material effect on the allowabil- ity of program expenditures. Such laws and regulations include those pertaining to federal financial reports and claims for advances and reimbursements. -169- V In our opinion, the City of Iowa City, Iowa, administered its major federal finan- cial assistance programs in compliance, in all material respects, with those laws t and regulations for which noncompliance could have a material effect on the allow- ability of program expenditures for the year ended June 30, 1988. Our testing of transactions and records selected from the major federal financial assistance programs disclosed an instance of noncompliance with certain laws and regulations. All instances of noncompliance that we found, and the programs to which they re- late, are identified in the accompanying schedule of findings and questioned costs, the ultimate resolution of which cannot presently be determined. Accord- ingly, no provision for any liability that may result upon resolution has been made to the federal financial assistance programs to which they relate. We do not believe these instances of noncompliance could have a material effect in the al- lowability of program expenditures. The results of our testing of transactions and records selected from nonmajor fed- eral financial assistance programs indicate that, for the transactions and records tested, the City of Iowa City, Iowa, complied with the laws and regulations refer- red to in the third paragraph of our report. Our testing was more limited than would be necessary to express an opinion on whether the City of Iowa City, Iowa, administered those programs in compliance, in all material respects, with those laws and regulations for which noncompliance could have a material effect on the allowability of program expenditures. With respect to the transactions and rec- ords that were not tested by us, nothing came to our attention to indicate that the City of Iowa City, Iowa, had not complied with laws and regulations other than those laws and regulations for which we noted violations in our testing referred to above. Des Itoines, Iowa October 14, 1988 -170- P a f. r*41 ick )� '-CO. L CITY OF IOVA CITY, IOUA Schedule of Findings and Ouestioned Costs Year ended June 30, 1988 The following comment is based exclusively on knowledge obtained from procedures performed during our audit of the general purpose financial statements of the City of Iowa City, Iowa, for the year ended June 30, 1988. Since our audit includes examining supporting evidence on a test basis, not all transactions that might have had an impact on the comments were necessarily examined. Questioned Program/Grant Number Finding/Noncompliance Costs Community Development During our review of the 1987 Grantee Block Grant Performance Report it was noted that 87—HC-19-0009 the report was submitted eleven days late. N/A Ve recommend that all reports be filed on a timely basis. City Response: The U.S. Department of Housing and Urban Development (HUD) had issued proposed revisions to the reporting requirements extending the filing time frame from 60 to 75 days after the close of the program year. The City did file within the 75 day period as advised by HUD. However, the audit finding is based upon the 60 day requirement. The City will continue to make every effort to file all required reports in a timely manner. —171— 7/ L! it it II i t City of Iowa City MEMORANDUM TO: Steve Atkins, City Manager FROM: Larry Donner, Fire Chief 21-l'O DATE: December 28, 1988 RE: Proposed Hazardous Materials Response Team Budget I have reviewed the attached budget proposal for the Johnson County Hazardous Materials Response Team. The $63,400 outlined in the budget proposal will allow Johnson County to establish a Level "B" hazardous materials response team. The team will have special equipment and training. A Level "B" team can plug a leak in a chlorine cylinder, contain a flammable liquid spill, or contain a leaking 55 gallon drum of hazardous material. The team will not be equipped to cleanup large spills or contain every hazardous material moving through the City. However, with training the equipment listed will allow the team to effectively deal with known stationary hazards in Iowa City. The proposed equipment Is minimal by established standards. Much of the $63,400 initial outlay represents start up capital expenditures. The $22,050 recurring costs seems reasonable considering training costs. Although we have three personnel working with the Johnson County Hazardous Materials Response Team, Iowa City operates at a "C" Level, Fire Personnel are trained to identify hazardous materials and to deal effectively with minor releases of common materials such as petroleum products and materials not requiring special entry suits. For example, a chlorine leak at the City water treatment plant is beyond our current capability because we lack the necessary expertise and equipment. The Johnson County Council of Governments is recommending that each local government contribute 50C per capita to help fund the team in FY90. The remainder of funding will be generated from datlons and limited (I federal funding. If Iowa City decides to participate, t e contribution can be spread over the current fiscal year and FY90. I support JCCOG's recommendation as a minimal effort to deal with hazardous material releases. I would also like to train nine or ten Iowa City Fire Fighters to protect the City and work with the county team. 1 Please let me know if I can supply additional information I Proposed Hazardous Materials Response Team Budget The enclosed equipment list and proposed budget represents funding for the training and equipping of the Johnson County Hazardous Materials Response Team. The Budget shows three columns. The first column is the money needed for the initial purchase of needed equipment. The second column shows recurring expenses on an annual basis. The third column estimates funds that can be recouped by charging the responsible party. It is expected that the listed equipment would come from four sources: a.Direct Local Funding b.Federal Funding and Federal Excess Property c.Private Sector Funding and Donations d.Donated Labor by Team Members to Build Equipment So far, we have received federal funding for some training. We have received some equipment donated from the private sector. There has been considerable labor donated by Team members for rebuilding the trailer and organizing the truck. Thus far $3,018.27 has been spent from the Civil Defense budget. We will continue to seek assistance in all four areas. I'. Iv u Budget Initial Purchase Recurring Reimbursable 1.Operational Expenses $6500.00 $6500.00 2.Analytical Equipment $3500.00 $ 500.00 $ 300.00 3.Command Post Equip. $8000.00 $ 500.00 Manual Updates $1000.00 � 4.Plug and Patch Kits $1500.00 $ 750.00 $ 500.00 5.Chlorine Kits $3700.00 6.Drum Handling Equip. $1000.00 $ 200.00 7.Hand Tools $2500.00 $ 600.00 8.Special Equipment $12,700.00 $1000.00 9.Decontamination $2000.00 $ 500.00 $ 500.00 10.0ther Equipment $8000.00 $ 500.00 $1000.00 11.Personnel/Personal $9500.00 $3500.00 12.Medical $1000.00 $ 500.00 13.Equipment Maintenance $ 2000.00 14.Training $3000.00 $10,000.00 15.Administrative $ 500.00 $ 500.00 Total $63,400.00 $22,050.00 $8800.00 2 %: Operational Equipment Gloves 50pr Silver Shield Gloves 10pr P.V.C. Gloves 10pr Neoprene Gloves 10pr Rubber Gloves 10pr Viton Gloves Suits 20 Chemrel Suits 10 Splash Suits 20pr Boot Covers 5 Rolls Duct Tape Absorbants 20 bags Oil Dry 4 Cases Absorbant Pads 5 Bales Absorbant Booms Overpacks 3 Overpack Sets 5 Boxes Garbage Bags Plugging Material 2511 Plug N Dike Neutralizing Agents Acid,Caustics,Solvents Analytical Equipment Explosimeter 02 Level Meter Draeger Kit Radiation Monitors Dosimeters Heat Scanners pH Paper Thermometers Mis Analytical Equipment Command Post Equipment Reference Library Office Supplies 6 Walkie Talkies 4 Ear Microphones Spotting Scope Binoculars 3 t 7oZ Calculator Camera Tape Recorder Manual Updates and Subscriptions Plug and Patch Kits Essex Initial Kit Plug and Wedge Kit Pipe Plug Kit Mis. Hardware Kit Chlorine Kits Chlorine A Chlorine B Chlorine C Drum Handling Equipment Drum Dolly Hand Pump -Hydrocarbons Hand Pump -Acids and Caustics Drum Upender Lifting Sling End Lifter Bronze Bung Wrench Aluminum Bung Wrench Palette Puller Overpack Dolly Hand Tools Large Variety of Hand Tools 1 Set Non -Sparking Tools C clamps Special Equipment 4-1hr SCBA's 4-1hr Tanks 2 Class D Fire Extinguishers 2 ABC Fire Extinguishers 2 -CO 2 Fire Extinguishers Neutralizing Agent Applicator -Acid Neutralizing Agent Applicator -Caustic Neutralizing Agent Applicator -Solvent 4 i OF PRECEDING DOCUMENT LfC'X` �CGf �Fl[ttFC` City of Iowa City MEMORANDUM TO: Steve Atkins, City Manager FROM: Larry Donner, Fire Chief DATE: December 28, 1988 RE: Proposed Hazardous Materials Response Team Budget I have reviewed the attached budget proposal for the Johnson County Hazardous Materials Response Team. The $63,400 outlined in the budget Proposal will allow Johnson County to establish a Level "B" hazardous materials response team. The team will have special equipment and training. A Level 118" team can plug a leak In a chlorine cylinder, contain a flammable liquid spill, or contain a leaking 55 gallon drum of hazardous material. The team will not be equipped to cleanup large spills or contain every hazardous material moving through the City. However, with training the equipment listed will allow the team to effectively deal with known stationary hazards in Iowa City. The proposed equipment Is minimal by established standards. Much of the $63,400 initial outlay represents start up capital expenditures. The $22,050 recurring costs seems reasonable considering training costs. I Although we have three personnel working with the Johnson County Hazardous Materials Response Team, Iowa City operates at a "C" Level. Fire Personnel are trained to identify hazardous materials and to deal effectively with minor releases of common materials such as petroleum products and materials not requiring special entry sults. For example, a chlorine leak at the City water, treatment plant is beyond our current capability because we lack the necessary expertise and equipment. The Johnson County Council of Governments is recommending that each local government contribute 50¢ per capita to help fund the team in FY90. The remainder federal funding. uflf Iowa City decides to parfunding will be ticipate, from daei ontributl nons and lted can be spread over the current fiscal year and FY90. I support JCCOG's recommendation as a minimal effort to deal with hazardous material releases. I would also like to train nine or ten Iowa City Fire Fighters to protect the City and work with the county team. Please let me know 1f 1 can supply additional Information. , Proposed Hazardous Materials Response Team Budget The enclosed equipment list and proposed budget represents funding for the training and equipping of the Johnson County Hazardous Materials Response Team. The Budget shows three columns. The first column is the money needed for the initial purchase of needed equipment. The second column shows recurring expenses on an annual basis. The third column estimates funds that can be recouped by charging the responsible party. It is expected that the listed equipment would come from four sources: a.Direct Local Funding r b.Federal Funding and Federal Excess Property c.Private Sector Funding and Donations d.Donated Labor by Team Members to Build Equipment So far, we have received federal funding for some training. We have received some equipment donated from the private sector. There has been considerable labor donated by Team members for rebuilding the trailer and organizing the truck. Thus far $3,018.27 has been spent from the Civil Defense budget. We will continue to seek assistance in all four areas. 1 N6 %a Budget PA Initial Purchase Recurring Reimbursable 1.Operational Expenses $6500.00 $6500.00 2.Analytical Equipment $3500.00 $ 500.00 $ 300.00 3,Command Post Equip. $8000.00 $ 500.00 � Manual Updates $1000.00 4.Plug and Patch Kits . $1500.00 $ 750.00 $ 500.00 5.Chlorine Kits $3700.00 6.Drum Handling Equip. $i000.00 $ 200.00 7,Hand Tools $2500.00 $ 600.00 8.Special Equipment $12,700.00 $1000.00 9.Decontamination $2000.00 $ 500.00 $ 500.00 10.0ther Equipment $8000.00 $ 500.00 $1000.00 11.Personnel/Personal $9500.00 $3500.00 12.Medical $1000.00 $ 500.00 13.Equipment Maintenance $2000.00 14.Training $3000.00 $10,000.00 15.Administrative $ 500.00 $ 500.00 Total $63,400.00 $22,050.00 $8800,00 J� PA Operational Equipment Gloves 50pr Silver Shield Gloves lOpr P.V.C. Gloves 10pr Neoprene Gloves IOpr Rubber Gloves 10pr Viton Gloves Suits 20 Chemrel Suits i 10 Splash Suits 20pr Boot Covers i 5 Rolls Duct Tape Absorbants 20 bags Oil Dry 4 Cases Absorbant Pads 5 Bales Absorbant Booms Overpacks i 3 Overpack Sets 5 Boxes Garbage Bags Plugging Material 25k Plug N Dike Neutralizing Agents Acid,Caustics,S olvents Analytical Equipment Explosimeter 02 Level Meter Draeger Kit Radiation Monitors Dosimeters Heat Scanners pH Paper Thermometers Mis Analytical Equipment Command Post Equipment Reference Library Office Supplies 6 Walkie Talkies 4 Ear Microphones j Spotting Scope j Binoculars f 3 7,2� Calculator Camera Tape Recorder Manual Updates and Subscriptions Plug and Patch Kits Essex Initial Kit Plug and Wedge Kit Pipe Plug Kit Mis. Hardware Kit Chlorine Kits Chlorine A Chlorine B Chlorine C Drum Handling Equipment Drum Dolly Hand Pump -Hydrocarbons Hand Pump -Acids and Caustics Drum Upender Lifting Sling End Lifter Bronze Bung Wrench Aluminum Bung Wrench Palette Puller Overpack Dolly Hand Tools Large Variety of Hand Tools 1 Set Non -Sparking Tools C clamps Special Equipment 4-1hr SCBA's 4-1hr Tanks 2 Class D Fire Extinguishers 2 ABC Fire Extinguishers 2 -CO 2 Fire Extinguishers Neutralizing Agent Applicator -Acid Neutralizing Agent Applicator -Caustic Neutralizing Agent Applicator -Solvent 4 7� Decontamination Equipment 2 Garden Sprayers 2 Wading Pools 4 Rolls of Visquine 4 Rolls Barrier Tape 8 Traffic Cones 5 Rolls Duct Tape 4-50' Lengths Garden Hose 4 Scrub Brushes Eye Washer 2 Trigger Nozzles Plastic Buckets 4 Packages of Garbage Bags 4 1002 Drop Cloths s Wash Booth s Runoff Containment Reservoir I Other Equipment i Wind Sock Loud Hailer 4 Shovels -Spade Nose j 4 Shovels -Square Nose Scoop Large i 4 Plastic Bristle Brooms Explosion Proof Fan 2 -Explosion Proof Hand Lights 2 -Stand Lights 6-50' Extension Cords 2-100' Extension Cords »» I 2-50' Bonding Cables 2-10' Bonding Cables j Ground Spike 6 -Dome Clamps 2-2 Wheel Dollies j Large Wheel Garden Cart 2-25' Hand Lines 2-50' Hand Lines 2-100' Ropes Personnel/Personal 20 Hard Hats 20 Coveralls 20 Pager Upgrades Medical Exams 5 Medical Trauma Kit Resuscitator Equipment Maintenance Team Member Training Administrative i 2 -7oz RECEIVED 3 19Eq JOHNSON COUNTY BOARD OF SUPERVISORS ADMINISTRATION BUILDING 913 SOUTH DUBUQUE ST. IOWA CITY, IOWA 52244 PHONE: 1319135&6900 December '=9. 1996 Mr. John MCDonald. MaY; r city of Iowa city 410 E. WashinEtOn Iowa laity. IA 52240 BOARD OF SUPERVISORS ROBERT J. BURNS HAROLD M. DONNELLY DICK MYERS BETTY OCKENFELS DON SEHR Dear Mayor McDonald and Council Members: The Johnson County civil Defense Board has been Studying the hazardous materials problems in Johnson County for well over two years. From that study a Hazardous Materials Operations Plan and organization has been developed. The purpose of this plan and this organization is to respond and clean up all hazardous materials spilled in Johnson County and in all the cities located within Johnson county. At this point a proposed budget has been developed to fund this operation. It has been set at $63,400.00. Both the Johnson County Civil Defense Board and'the Johnson County Board of Supervisors endorses this budget. All felt the best way to fund this budget would be for each municipality to pay 50 cents per capita. This will raise approximately $40,000.00 and the balance will be raised through donations and charges to private industry. Hopefully in the following years the 50 cents per capita can be decreased. The Board of Supervisors encourages each council to support the funding of this Hazardous Materials Operations. We all know that hazardous materials are of a grave concern to all. Thank you for your support. CO rely. � LnS � Chairpe(s N v7 Iowa City-Coralville Animal Control Committee Iowa City, Iowa January 6, 1989 Iowa City City Council Civic Center 410 Fast Washington Iowa City, Iowa Coralville City Council City Hall 1512 7th Street Coralville, Iowa Dear Council Persons: The Iowa City - Coralville Animal Control Building Committee has unanimously approved the plane to be offered for bids by the cities of Iowa City and Coralville. All bid documents and the opening of bids will be handled by the staff at Iowa City. The Building Committee will make recommendations to both City Councils concerning acceptance and selection of possible construction alternates. The Committee wishes to express our comm'ittment to resolving the shortcomings in the physical plants existing in both communities. We feel that the bid plan that we present represents the best long range site and building that we have considered_ S ncerely i lir an Axes �---^ Chairman yw' RECEIVED JAN 3 1989 �DLc�eember 29. 1988 10: Mr. bill Ambrisco - City Louncil PROM: Mr. bill Reddrek - Chairperson & Fublic Representative Iowa City Electrical board of Examiners and Appeals RE: Denial of Aopeal by Dick Davin - Decision by Electrical Inspector Regarding Change of Occupancy of Building cm South Dubuque Street, Iowa Cily, Iowa. December 1-i, 148e Mr. Ambrisco. On December lk, 1988, the Iowa City Electrical board met to hear an appeal by Dick Davin. The electrical inspector had ruled that Mr. Davin had changed the occupancy of a building, therefore malting it subject to section 8-1017. Existing Buildings, of The 1987 City of Iowa City Ammendments to the National Electrical Code_. "Changes In 8uildin Occupancy - Electrical systems and equipment which are a pirt of any building or structure undergoing a change in use or occupancy as defined in the building code, shall comply with the requirements of this code which are applicable to the new use or r.-ccupancy." After lengthy discussion the board voted 3-1 to deny Mr: Davin's appeal. We based the denial on the short precise words written in the city ordinance. Althought I feel this ordinance i=_ well. written and serves the city woll, I am not fully satisfied with the decision of the board. In this particular case, I. as well as the other board members. strongly feel that ar, exception or variance may be possible. However, the ordinance does not give the board the power or freedom to grant such variances or exceptions. Therefore what are the procedures for the city council to revise our city ordinancesto include provisions for the board to grant exceptions or variances when it deems feasible? Could we, if possible, redefine the building in question and its use? If these revisions are made and written into the city ordinances, I would like to suggest that Mr. Davin be granted a new appeal to the board and no action taken toward him until a final decision is made by the electrical board. Thant: -you for your consideration in this matter. Sincerely. %S N E c MODERN MANOR PGNANT UNION 1700 SCOP! BOULEVARD IO:."A CITY, IOWA 52240 Iowa City Administration Iowa City Town Council 410 East Washington Street Iowa City, Iowa 52240 To Whom It May Concern: January 3, 1989 We want to take this opportunity and time to express our sincere thanks for the newly installed street lights on Scott Boulevard from Modern Manor Mobile Home Court north to Muscatine Avenue. We have not yet gotten school busing for our children in grades 7 thru 12 and our great concern for their walking in the extreme cold before daylight and after sunset hours to and from school with fields on both sides of Scott Boulevard has been a real worry for us. The lights are a big help. Thanks again, a whole lot. Some of us really care. Sincerely, Louise Wurr,(Pres.) Modern Manor Tenant Union 2 Arbandy Drive Iowa City, Iowa 52240 %6 JANUARY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 4 25 26 27 28 29 30 1 FEBRUARY S M T W T F S 1 2 3 4 5 6 Q7 8 9 10 11 12 13 14 15 16 17 18 19 2021 22 23 24 25 26 27 8 SEPTEMBER S M T W T F S MAY MARCH 2 3 S M T W T F S 1 3 4 1 2 3 4 5 34Q 6 8 9 10 11 12 13 14 15 16 17 18 19 20 ®1 22 23 24 25 26 27 28 29 30 31 29 SEPTEMBER S M T W T F S MAY APRIL 2 3 S M T W T F S 1 3 4 5 6 7 8 9 2 34Q 12 5 6 7 1 8 9 10 11 12 13 14 15 16 17 ® 19 20 21 22 220o 24 25 26 27 28 29 SEPTEMBER S M T W T F S MAY JULY 2 3 SMTWTF T W T F S S S 1 3 4 5 6 7 8 9 10 11 12 13 14 15 © 17 18 19 20 21 22' 24 25 26 27 28 29 3 31 ©5 26 27 28 SEPTEMBER S M T W T F S JUNE JULY 2 3 S M T W T F S F S 1 2 3 4 5 6 7 8 9 10 11 12 © 14 15 16 17 18 19 21 22 23 24 25 26 27 28 29 30 21 SEPTEMBER S M T W T F S 2 0 JULY 2 3 4 5 M T W T F S 11 12 13 14 1 16 2 3 4 5 6 7 1 8 9 10 © 12 13 14 15 16 17 18 19 20 21 22 np 7131 ©5 26 27 28 29 20 21 27 Q 22 29 AUGUST 24 25 S M T W T F S SEPTEMBER S M T W T F S 2 0 1 2 3 4 5 6 7 0 9 10 11 12 13 14 1 16 17 18 19 20 21 (IV 23 24 25 26 27 28 29 30 31 29 30 SEPTEMBER S M T W T F S OCTOBER S M T W T F S 1 2 0 4 5 6 1 2 3 4 0 6 7 8 9 10 11 12 13 14 15 16 17 18 ® 20 21 22 23 24 25 26 27 28 29 30 OCTOBER S M T W T F S 1 2 0 4 5 6 7 8 15 9 10 1607 11 18,19 12 13 2021 14 22 29 23 24 30 31 25 26 t 27 28 14 NOVEMBER 16 17 18 S M T W T F S 25 26 1 2 3 4 5 12 6 7 13 ® 8 15 9 16 10 17 11 18 19 26 20 21 27 Q 22 29 23 30 24 25 DECEMBER S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 © 13 14 15 16 17 18 19 20 21 22 23 2'2i 25 26 27 28 29 30 City of Iowa City MEMORANDUM Date: December 30, 1988 To: City Council From: City Manager Re: Chamber of Commerce Dinner You should be receiving in the next few days an invitation to the January 27 annual Chamber of Commerce Banquet. Hunter Rawlings is scheduled to be the guest speaker at this annual meeting and dinner. Policy has been that the City will pay for the City Councilmembers' dinner ticket. If you wish your spouse or friend to attend it will be at your expense. Please contact Lorraine so that the appropriate number of reservations may be made. Traditionally the Chamber banquet sells out rather fast. tp4-6 `v/ I i 79 COUNTY ZONING DEPARTMENT 979 S. Dubuque Street P.O. Boa 125 Iowa City, Iowa 52244 MEMORANDUM TO: Joint E-911 Service Board FROM: JoAnne LilledaljL Johnson County Planner DATE: January S, 1989 RE: E-911 Service Board Organizational Meeting BEN D. JOHNSON Zoning Atirninistrator (319) 356.6083 JOANNE LILLEDAHL County Planner (319) 3566085 Enclosed please Find a meeting notice and tentative agenda For the organizational meeting of the Johnson County E-911 Service Board. I've also included a copy of Chapter 1177B, a draft 28(E) Agreement for the Board and a draft copy of by-laws. Please review these materials before Thursday Is_.meeting, if you have time. You will probably note that item four on the agenda refers to expanding the membership on the E-911 Service Board. Chapter 4778 only allows the Board of Supervisors to appoint representa- tives from political subdivisions having a public safety agency serving Johnson county or representatives From private safety agencies to the E-911 Service Board. However, if the E-911 Service Board wishes to expand its own membership, it may do so. Other potential members include representatives from the sheriff's department, the Iowa City and Coralville police departments, civil defense, the university, the county ambulance service, etc. If you have any questions, please do not hesitate to call me at 3S6-6083. I look Forward to working with each of you. eop� , &-� 6ut �� .,Q �w /to 17 7% City of Iowa city M E M O R A N D U M TO: Chuck Schmadeke FROM: Rick Fosse 11// DATE: December 29, 1988 RE: Sludge Force Main Construction - Pedestrian Use of Old Sand Road The attached map shows the route for the sludge force main. The main will be installed along the west side of waterfront Drive (Old Sand Road) and will require two temporary street closings as depicted on the attached traffic control plan. Each closing will be approximately 3 to 5 days in duration. Disruption to pedestrians should be minimal since there is no sidewalk along Waterfront Drive and the pipe will be backfilled as soon as it is installed thereby minimizing the area disrupted at any one time. The greatest potential for disruption to pedestrian traffic will be at the northeast corner of the intersection of Gilbert Street and Highway 6. A segment of sidewalk along Gilbert Street between Highland Avenue and Highway 6 will be closed for approximately 1 week to allow the pipe to be bored under Gilbert Street and Highway 6. W W N {"' C W m � J City of Iowa City MEMORANDUM Date: January 9, 1989 To: Mayor John McDonald and City Councilmembers From: Terrence L. Timmins, City Attorney Re: Utility Agreement Between Iowa City and the University of Iowa In March of 1987, the City of Iowa City submitted to the University of Iowa a proposed license agreement by which the University would have obtained authorization from the City of Iowa City to maintain their various utility systems (steam, water, electricity, telecommunications, etc.) on City property, primarily in City street right-of-way. The impetus for that proposed license agreement was the University's project to install a fibre optic telecommunications system in City street right- of-way, which project had been commenced in the spring of 1986. In initial discussions with University staff, the City had been informed that the project was designed to replace telephone service from Northwestern Bell, and that the Attorney General believed that a City franchise was not therefore necessary, since it was an improvement internal to the University. Although City staff believed that a comprehensive agreement covering that and other existing utilities was necessary, the University was informally authorized to proceed with that project, with the under- standing that such an agreement would be workedout later. The form of license agreement which was developed by the.City and proposed to the University of Iowa was based on a similar such license granted by the City of Champaign, Illinois to the University of Illinois for a fibre optic telecommunications system. The license agreement, as originally drafted and proposed to the University, did not require the payment of a license fee. However, in late 1986, the City learned that the University had installed, along with its fibre optic telecommunications system, a cable television system in City street right-of-way, and that it intended to provide cable television services directly to students and others residing in University residence halls, apartments, etc. On the basis of an exchange of correspondence and discussion by various City and University officials, it was determined that the University intended to provide cable television service without obtaining a franchise from the City, and without paying any fee to the City for the use of City street right-of-way in the provision of .that service. In February of 1987, the City formally presented its license proposal to the University, and in a March 1987 meeting, proposed that the license agreement could include the University's cable television system if the University were willing to pay the equivalent of a franchise fee for that use. The University took the position at that time that it was not required to obtain a franchise from the City or pay a fee for use of City streets, and that the proposed license agreement was unsuitable in a number of respects as applied to the University's other utilities. Further discussion of the license agreement with the University did not occur again until January of 1988, when the University once again approached the City, on that occasion seeking authorization to place an electric transmission line in City street right-of-way from a substation on South Capital Street south of the Crandic overpass, to the vicinity of the University's water treatment plant. Those discussions were unproduc- tive, and, due to the University's time constraints for construction of the transmission line, the Council gave informal authorization to the University to construct the line, this time with the understanding that an agreement would be worked out prior to energization of the transmission line. That authorization was communicated to the University by letter from the City Manager on March 1, 1988. In an April 4 letter from University Vice President Mary Jo Small, the University proposed a reciprocal agreement to provide regulations and procedures for University use of City property, and for City use of University property. Pursuant to an exchange of correspondence between University Business Manager Michael Finnegan and me in August of 1988, it was agreed that the University's Contractual Advisor, Susan Mask, would draft that document for review by the City. Ms. Mask's draft, entitled simply "Chapter 28E Agreement," was received on October SDrdistributed the City revewnager, Public Works Director and WaterepatmentSuperintendent fori Due to the press of sewer project work and short staffing, I was unable to work on the agreement with the University until the first week of January 1989. Based on my review of the agreement preparedand proposed by Ms. Mask, I have prepared a counterproposal, entitled "Reciprocal Utility LicenJanuary se for Agreement." A meeting has been scheduled for Thursday, review of both documents by City staffers. Appended hereto is a memo which outlines some of the outstanding issues which we will address in that meeting. Based on that discussion, we may want to obtain Council direction on some of those issues before presenting our proposal to the J,UnivestY. rL Terrence L. Timmins, City Attorney /pct F� City of Iowa City MEMORANDUM Date: January 9, 1989 To: Steve Atkins, City Manager Chuck Schmadeke, Public Works Director Ed Brinton, Water Division Superintendent From: Terrence L. Timmins, City Attorney Re: Comparison and Analysis of University and City Proposals for a Reciprocal Utility License and/or Agreement INTRODUCTION: In March of 1987, the City proposed a comprehensive licensing agreement for University utilities on City property (primarily City street right-of- way). Since that time, the subject of such a license has been discussed at various times by various City and University officials. In correspon- dence between City and University officials between April and August of 1988, the broad scope and outline for such an agreement was worked out. A listing of the issues to be covered in the reciprocal license and/or agreement are set forth in outline form in a letter to City Manager Steve Atkins from Mary Jo Small, Associate Vice President for Finance and University Services, dated April 4, 1988. In August of 1988, it was agreed that Susan Mask, Contractual Advisor to the University's Vice President for Finance and University Services, would draft that document. Ms. Mask's draft of the document was submitted to the City on October 25, 1988, and was circulated to the City Manager, Public Works Director, and Water Division Superintendent on November 3 for review. You will find attached to this memo a copy of a counterproposal which I have prepared to the draft developed by Ms. Mask. In this memo, 1 will outline the various issues that are presented to the City and to the University in developing a reciprocal utility license and/or agreement, and I will offer comparisons of the approaches taken by Ms. Mask in the draft which she prepared, and by me in the draft which I have prepared. ANALYSIS OF ISSUES AND COMPARISON OF DOCUMENTS: The most fundamental issue presented in comparing the documents developed by the City and the University relates to the nature of the agreement.. In proposing a "license agreement" in March of 1987, the City was proposing tora ant the University certain property rights in City property - i.e. the right to use City property for the opera- tion, maintenance, etc. of University utilities. In August of 1988, agreement was reached that the document should be reciprocal in nature, that is, it should outline both the University's rights and obligations with respect to its use of City property, and it should outline the City's rights and obligations with respect to use of University property. In comparing the two documents, the issue is the nature of the rights being granted by each party to the other. In the document developed by Ms. Mask, entitled simply as a Chapter 2BE agreement, neither the City nor the University grant any type of M property right to the other. In fact, her draft of the agreement provides that "the granting of property interests in University property is subject to the provisions of Chapter 262 of the Iowa Code and the procedures and regulations of the University and the State Board of Regents which in some instances may require approval by the State Executive Council and the State Board of Regents. Her version of the agreement contains similar language with respect to the granting of property by the City to the University. In essence, the agreement proposed by Ms. Mask is merely an operating agreement, and does not provide that either party has any particularrp opertY interest in the property of the other which it is using for utility purposes. The license agreement proposed by the City, entitled "Reciprocal Utility License and Agreement" is, first and foremost, a grant of a property interest by the City to the University, and by the University to the City. The property interest granted is a "license" which is somewhat similar to an easement but subject to more restric- tions and regulations. Its closest "kin" is the franchise which cities typically grant to public utility users of City street right- of-way, and in fact we borrowed heavily from our franchises with Iowa -Illinois Gas and Electric Company in developing the proposed license agreement with the University. The primary benefit to both the City and the University in having a license is that future extension or expansion of their respective utility systems on the property of the other can be accomplished without going back to either the Board of Regents or the City Council for approval of the particular location of those utility expansions or extensions. Instead, the approval of the location of those utilities on City or University property would be left to local City officials (City Manager and/or Public Works Director) and to local University officials (e.g. Director of Facilities Planning). From my perspective, the licensing approach is far preferable to the operating agreement approach proposed by the University. 2. An issue closely related to the issue of the nature of the interest being granted is the effect that the grant of a license would have j upon existing easements for University utilities on City property and for City utilities on University property. The Chapter 28E agreement proposed by Ms. Mask would have no effect on such existing easements for utilities, and leaves open the question of whether or not the operating agreement could be applied to City or University utilities installed pursuant to those old easements. The approach which I have taken in the reciprocal utility license and agreement is that the license supersedes all prior easements given by the City to the University, or by the University to the City, for their respective utility systems. The advantage of this approach is that it brings all existing and future utilities under the same regulatory scheme. A thorny issue throughout our discussions with the University has been the University's establishment of a cable television system in City street right-of-way without City approval. This occurred in 1986 and early 1987 at the time the University was installing what 9l was purported to be a fibre optic telecommunications system. The City learned of that development in the middle of the negotiations for the establishment of a license agreement for University utilities, and it presented quite an obstacle to those negotiations. The issue of the University's payment of some type of license fee in lieu of a franchise fee for operation of a cable television system was raised in the context of the City v. Heritage lawsuit, but was not resolved. The University takes the position that we don't need to address that issue at this time either, leaving it supposedly for resolution in the future. At bottom, this will be a policy issue for the City Council to decide - that is, whether they want to negotiate for the University's use of City street right-of-way for all University utilities except cable television. The agreement prepared by Ms. Mask, however, would in effect legitimize the University's operation of its cable television on City property. The reciprocal license and agreement which I have drafted would specifically exclude the University's cable television system from the grant of license, and would prohibit further future expan- sion or extension of that system. In developing the City's policy position on this issue, we will naturally want to obtain direction from the City Council. It seems to me that an important factor for the Council in making this determination will be the amount of cable television franchise fee which the City is losing due to the fact that the University, and not Heritage, is serving the student residential population. Accordingly, before we take this matter to the City Council for guidance, I would suggest that an attempt be made to obtain informa- tion from the University as to the number of cable television "hook- ups that have been established on their cable television system, and the annual revenue which they have obtained from that system since its installation in early 1987. Although I did request that informa- tion from Ms. Mask, the only thing which she volunteered in response was that the University had paid Heritage $28,000, presumably for supplying the various programming signals to the University for redistribution to University students. With respect to the University's revenues from its cable television system, she only indicated that those additional revenues were sufficient to cover University costs. One of the City's long-standing and primary goals in pursuing a license agreement with the University is to obtain a greater degree of control over the placement and relocation of University utilities in City street right-of-way. At present, if the City needs particular street right-of-way for the installation of City improve- ments (water mains, sewer mains, etc.), it can under its franchise agreement with Iowa -Illinois require gas and electric utility system components to be moved to make way for City improvements. The competition among various utility providers for space beneath City streets, particularly in the downtown area, is becoming acute. The City, as the owner of the street right-of-way and as the entity charged under state law with the regulation of city streets, must be in a position to arbitrate amongst the various utility users to best meet the needs of the citizens of Iowa City. The license agreement which was proposed in 1987 gave the City the authority to require the 4 University to relocate its utilities if the City needed that right- of-way for its own purposes. The agreement prepared by Ms. Mask, on the other hand, does not give either party that right. The reciprocal utility license and agreement which I recently prepared gives both the City and the University the right to require such relocation of utilities located on their respective properties. This provision has undoubtedly been a major "sticking point" for the University, since it could require them to move existing steam or water utilities which have been in place in City street right-of-way for many years. The University's primary concern is that the City might require major relocation efforts by the University to accom- modate relatively minor City improvement projects. Their contention has been that the less costly improvement ought to accommodate the more costly improvement. While I dant' disagree with this principle in concept, the City has to be the arbiter of those determinations, as they relate to City utilities, University utilities, and public utilities in City streets. That ultimate authority has to reside in the City with respect to City property and in the University with respect to University property. The effects of this provision, which might be unreasonable in particular applications, would be ameliorated by the arbitration provisions contained in Part 4 of the Reciprocal Utility Easement and Agreement. On that basis, it would be my recommendation that the City insist that the Reciprocal Utility License and Agreement include the right to require relocation of existing and future utilities. CONCLUSION: On Thursday afternoon, January 12, a meeting will be scheduled for the City staffers addressed in this memo to discuss the issues raised. On the basis of that discussion, it is my hope that a revised draft of the "Reciprocal Utility License and Agreement" can be developed for immediate presentation to the University. 't�LI Terrence L. 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