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HomeMy WebLinkAbout1986-01-28 Info Packet of 1/24City of Iowa City MEMORANDUM* DATE: January 24, 1986 TO: City Council FROM: City Manager RE: Material in Friday's Packet Schedule for budget review session, Saturday, January 25, 1986. Memorandum from the City Manager regarding economic development. Memoranda from the Assistant City Manager: a. Coralville Milldam Hydropower Project b. City -School District Joint Swimming Facility Project Copy of letter from the City Manager to Mark Jennings regarding the Pa and Recreation Commission. Memorandum from the Human Services Coordinator regarding staff recommei for FY87 human services funding. Memorandum from the Director of Finance regarding sewer bonds. Memorandum from the Associate Planner regarding Old Capitol center norl entrance landscaping. Memorandum from the Transit Manager regarding monthly ridership statist for December 1985. Letter from Chamber of Commerce recommending that Phil Sive serve as a member of the JCCOG Transit Advisory Committee. Copies of letters in reply to the Mayor's letter regarding the Nuclear Free Zone Ordinance from: a. The White House b. Representative Cooper Evans Copy of letter to Douglas Boothroy from Representative Jim O'Kane regar the decriminalization of municipal code violations. Articles: a. Citizens Action Center b. Tax -overhaul bill stalls municipals Iona City, Iowa Financing Plan for Wastewater System Improvements Iowa City Conference Bd. meeting agenda from City Assessor 3 Y �NNtva��ar Baa♦ \ �.'w atm\ NOTE: LOCATION SCHEDULE FOR FY87 BUDGET REIIEY SATURDAY JANUARY 25; 1986 LIBRARY ROOM A PAGE 8:00 A.M.-1:00 P.M. 8:00 City Manager 38 City Manager 47 Broadband Telecommunications 112 Energy Conservation 79 Civil Rights 308 Equipment Maintenance Service 8:30 Public Works Department 103 Administration 98 Engineering 116 Traffic Engineering 121 Streets 246 Refuse 251 Landfill 238 Water 230 Pollution Control 9:00 Parks b Recreation Department: 209 Administration 183 Recreation 195 Parks 76 Government Buildings 106 Central Business District 125 Forestry 131 Cemetery 10:00 201 Library 10:30 BREAK 10:45 Capital Improvements Program 416 %4 City of Iowa City - MEMORANDUM DATE: January 24, 1986 TO: City Council FROM: City Manager y.�f RE: Economic Development Enclosed are samples of advertising by cities in the recent national Publication, "Plant Sites and Parks: The Magazine of Economic and Office Development. Note the financial incentives and university involvement. %4 :,.,.....,...........................,...... ................ a_ ............... Northern Kentucky University Foundation lie es�arch & Technology Park ■ Owned and operated by NKU Foundation, Inc. • Stategically located: . at juncture of 1.275/1.471 - 6 miles from Cincinnati - 12 miles from Greater Cincinnati Airport - 10 miles from Lunken Airport NOsO da Ralph A. Tes•eneer, President NKU Foundation, Inc. Northern Kentucky University Highland Heights, KY 41076 (606)674.5126 ^rr^ta Reader Service Cod No. 271 PECOS TEXAS..• 0 1p.1�r • Financingp, G $10,0rants and Assistance- �J 00,000In industrial Revenue Bontls. Training Grants -NO STATE INCOME TAX. • Tax abatement program: 100% firel year/ 50% SA _ " year. •Available Industrial Park properties - rail spurs, adjacent to Interstate 20, forty minutes to Interstate 10, utilities available. aaa, n I aaa-27.00 eracre er ear-city/county land •Rlghttowork law,pmductive larkodentetl aborforceat non-union Pay scale, •Transportation network - Rail, iir, 1.20 and 1.10. Municipal Airport capable of handling heavy aircraft, ninety minutes from Regional Airport. ,The Sunbeltl No Winter -weather closedowns, Average temperature year round 65' F. rAvailable Housing at affordable prices with reasonable financing. P Modern well equipped 62 bed hospital. Twenty-six churches of all denomina• lions. r Recreational facilities - Golf, Swimming, Tennis, Fishing, Hunting, Camping and Hiking -All within an hours drive. Excellent Educational and Vocational Training. ,A greet quality of life atmosphere! Warm, friendly people!I /3 For Information or APPointment call. Nita Smith, Peco SChamber of Commerce P.O. Box 27, Pecos, Texas 79772 Reader Service Card No. 280 PLANTS • SITES & PARKS rT a17 ,Zr � J, IT, � ��� A Winning Combination_ Frw lnretinnx rnn mnorh lhr t,-,hnnlav gnl n•xuulrry n. xdnblr. .v_ Io Irnumr of 1'u rdur Induvtrinl Ifrvrxmh I'xrh. Itnly x frw mmmrx x. Turd ur l'ni lrrnov 1 -nn h, -I,, coo tr ......... rh mon xpplird n nvlulr hxxic� mroh,olr .n huvmrvv and mduvo n. I'xrk Irmm%, II v1-rrud)'ucrrxx to nll univrn,nl lihrxriex and furili 111-x, s x111n1; wo.' u pad ofhighly Irninrd mnnp11.'rr nvni Inhlr fnr fu II xnd pxrt limn rmplovmrno. ohn•r hnure hvlxir nndl'L 11 hnurx h. InvM v nal xf o. BI ��,f o hr oup Ihxl m�trhrlr,n mr rnxmm. Innnvinnl 1-r., x„r uxndx. r o m, su:. f muvmG. .nh•v nnJ Irnve nplunu unJ on 11f the 111.1-x1 Ix; rxtrx :no, nuli11n mIJIr Puryur Ind uxl ri11l Rr+rnrrh I'nrk wrll w,r1h tour vrnxux r,,nxuh,to, Purdue Research Foundation Fredrick L. Ilovde 114,11, Purdue Ilniverxity - Wert I.nfayene. I\' a94ersit ' IV or Fr Mt. Pleasant TENNESSEE ®LOCATION, LOCATION, LOCATION... Nt. Pleasant's central location In Southern work to ,d east. 's Inter. system. ® LAND, BUILDINGS, UTILITIES.... . It's good land that requires little site preparation. In addition to our 100 acre Industrial Park. adi....,,,.. #k. [d�.�.. � r•.... _... ne ,onat nupon, we can otter over 300 acres of other In ustdally zoned sites with utilities and rail accessibliryry A 50.000 Iit. building (under construction -expandable) is available with an additional 33.750 sq.ft. bulldfngptanned forspring'86. Also:we can assist in financing with Ids, the ® THE COMMUNITY AND IT'S PEOPLE..... In the Mt. Pleasant area you can find those quality of life advantages (good schools. medical care, recreatloal op• portunities) that yyou need in a rural setting. Community and Civil leadership is positive and supportive of new business and industry. The area has an available work• force and training assistance can be provided by both Ipj state and local sources. People in our area are noted for their work efforts and exceptional capacity for Teaming. Existing Industries report low rates of absenteeism and employee turnover. For Information Contact: en . Mana City of Mt Plleasant P O. Bort 426~Fyu M L Pleasant. Tennessee 38474ia,(: (615-) 3%9-7717 trylk7.`Zni SDVJP, /7' Circle. Reeder Service Card No. fIB al7 .....,,., . ..........................a -_.............,. City of Iowa City MEMORANDUM Date: January 24, 1986 To: City Council From: Dale Helling, Assistant City Manage �� Re: Coralville Milldam Hydropower Project discussions regardingmonths theago City's Cinterest and SinvconductingEnaineers bean f asibility study for utilization of the Coralville Milldam as a power generating facility. At that time Shive-Hattery had conducted a similar study for the City of Coggin, Iowa. Coggin then chose not to pursue the project further and Shive-Hattery proposed to file the necessary application on behalf of Iowa City for a preliminary permit to conduct a similar feasi- bility study. As a result of subsequent discussion by Council, and upon execuownertofnof an the dam,atheement with the City authorized Shi enCounty Hattertoofilevation Board the applica- tion. Application for the preliminary permit was filed in October, 1984. The late December, 1985, that the preliminary permit had been issued City was formally notified by the Federal Energy Regulatory Conmission in about November 7, 1985. The City Council had previously elected to on or wait until a preliminary permit was issued before making a final decision on whether or not to contract with Shive-Hattery to perform the feasibility study. The preliminary permit having been granted, it is now necessary that Council address this matter further and determine whether or not to conduct the feasibility study. Time has been scheduled at your informal meeting on January 27, 1986, at 7:30 p.m, for discussion of this matter. Representatives from Shive-Hattery will be present for that discussion. Attached please find updated information from Shive-Hattery regarding FERC requirements, as well as major project activities and scope of services -to be provided by Shive-Hattery and estimated fees for those services. In addition, Shive Hattery is conducting research to determine preliminary cost, savings, and payback estimates for this project. This research utilizes a computer model which makes certain assumptions regarding con- struction costs, operation and maintenance costs, interest rates for financing the project, escalated energy costs, etc. in order to project cost savings and payback to the City. Preliminary estimates of the cost for constructing power generating facilities are approximately $2.5 mil- lion. However, the feasibility study will include not only refinement of relevant information based on this traditional approach, but will also explore more recently developed technologies which could substantially reduce construction costs with only a minimal loss of efficiency or gener- ating power, resulting in a more cost effective project. Representatives from Shive-Hattery will provide more detailed information during your discussion on January 27. �r .............. N The City has committed, in its agreement with the Johnson County Conserva- tion Board, to complete the feasibility study within six months. It does not appear that we will experience any difficulty meeting this time re- quirement if the decision to proceed is made in the near future, The estimated cost of $7,000-$8,000 for the Preliminary Data Review (feasibil- ity study) will be financed with water and sewer revenues. This is appro- priate since these would be the primary users of the electricity generated by this facility if the City decides to go ahead with construction. Please contact me if you have any questions or would like additional information prior to the January 27 scheduled discussion. tp3/1 cc: Johnson County Conservation Board Johnson County Board of Supervisors Resources Conservation Commission Riverfront Commission Michael Kattchee, Mayor of Coralville Shive-Hattery Engineers n ................... !................................................................. w ... • ............... . ESTIMATED FEES FOR SHIVE-HATTERY ENGINEERING SERVICES Iowa City Hydro January 20, 1986 PHASE TITLE ESTIMATED FEES* I Obtain FERC Preliminary Permit - $1,800 Completed 11/7/85 II Preliminary Data Review, Resource Agency $7,000-$8,000 Contact, Iowa -Illinois Gas & Electric Co. Contact, Site Lease or Acquisition Contact III Environmental Analysis and Studies Undefined** IV Prepare FERC License Application $5,000-87,000 V I FERC License Review Process Assistance $4,000-E8,000 VI Final Preparation and Negotiations for $4,000-810,000 Financing, Site Lease or Acquisition and Iowa -Illinois Gas & Electric Co. Inter- (Legal fees will connection also be required) VII Final Design Undefined** VIII Construction Services Undefined** Ix Start-up and Operation Undefined** * A master contract would be prepared and the fees for each phase would be negotiated proceed on with the City based on a specific scope of work. any Approval to i phase would be by supplimental agreement issued by the City. **These fees cannot be defined at this time due to their highly variable i nature. Further definition of these will be obtained through work with the Phase II estimated fees provided at that time. I SHIVE•HATTERY ENGINEERS +MN��a aa�f.ava \.....'.. v..•..!aaaw.wN.V Iowa City Hydro January 20, 1986 FERC REQUIREMENTS Activities required by FERC in order to maintain the Preliminary Permit and priority for a license to construct a hydro plant at the site: 1. Begin and prosecute diligently, the investigations, examinations, and surveys contemplated under the permit. 2. Provide six month reports per Article 8 in the permit. First report is due April 30, 1986, second is due October 30, 1986 etc. thru April 30, 1988. 3. Submit a license application before October 30, 1988. SHIVE•HATTERV ENGINEERS u MAJOR PROJECT DEVELOPMENT ACTIVITIES Iowa City Hydro January 20, 1986 I. Obtain FERC Preliminary Permit (Completed November 7, 1985) 2. Select Preliminary Project Design 3. Environmental Analysis and Studies (If Required) 4. Obtain FERC License 5. Site Lease or Acquisition 6. 7. 8. 9. 10. n `I•^.��AN taa aaa .. aa.\...... ........ .aaawini.v..._............. r•. �....��. Iowa City Hydro January 20, 1986 GENERALIZED SHIVE-HATTERY ENGINEERS INC. SCOPE OF SERVICES Phase I: Obtain FERC Preliminary Permit Completed November 7, 1986 Phase II: Preliminary Data Review Resource Aaenc Contact Iowa Illinois Gas & Electric Co. Contact Site Lease or Acquision Contact a. Obtain information and evaluate the suitability of an inverted siphon system vs. the conventional submersible system as proposed for Coggon in 1984. b. Select the apparent most desirable system. c. Complete the FERC required "Initial Stage of Consultation" with resource agencies. Concentrate on requested studies and comments relative to the proposed installation of flash -boards. d. Submit the required six month progress report to FERC by April 30, 1986. e. Contact Iowa -Illinois Gas and Electric Co. to discuss interconnection with their system. Attempt to obtain preliminary terms and conditions for this interconnection. f. Contact the Johnson County Conservation Board to discuss preliminary terms and conditions for lease or acquisition of the dam site. g. Assist the City in determining the viability of.the project as it relates to City goals and anticipated project development. Phase III: Environmental Analysis and Studies a. Develop scopes and cost estimates for any studies required by the FERC and interested resource agancies. Study scopes could vary from literature searches to field data accumnulation and analysis. b. Coordinate all work with the FERC and the resource agencies. SHIVE.HATTERY ENGINEERS al,v 0 Iowa City Hydro January 20, 1986 c. Complete the required studies. d. At the completion of this Phase the City should have enough information to determine suitability of the site for hydro development as it relates to environmental restrictions. Phase IV: Prepare FERC License Application a. Prepare the license application document. b. Submit the license application to FERC'and resource agencies. c. Obtain acceptance for filing by the FERC. Phase V: FERC License Review Process Assistance 1 a. Provide information as requested by FERC. i b. Monitor the review process. i Phase VI: Final Preparation and Neotiations for Financin Site Lease or Acquisition an Iowa -Illinois as ectn c Co. ntprrnnnprr,nn a. Provide technical information necessary for the financing plan. b. Assist the City in final negotiations with the Johnson County Conservation Board concerning site lease or purchase terms. c. Assist the City in final negotiations for interconnection with Iowa -Illinois Gas & Electric Co. Phase VII: Final Design j a. Prepare Plans, specifications and contract documents. b. Assist the City in obtaining bids and selecting materials and j contractors. i Phase VIII: Construction Services a. Provide construction contract administration. b. Provide construction management as required. SHIVE-HATTERY ENGINEERS a Phase IX: Start-up and Operation a. Assist in project start-up. b. Prepare operation and maintenance manuals. c. Provide operation assistance as requested. d. Provide operator training as requested SNIVE•NATTERY ENGINEERS Iowa City Hydro January 20, 1986 .4 14 M Lr. City of Iowa City MEMORANDUM Date: January 24, 1986 To: City Council From: Dale Melling, Assistant City Manager Re: City -School District Joint Swimming Facility Project Attached please find a copy of a summary of the Committee meeting of January 16, 1986. In addition, the Committee met again on January 23, 1986, and Councilmember Darrell Courtney will provide further update information at your informal meeting on January 27. cc: City Manager bj5/4 a�9 0 DATE: PROJECT: CONFERENCE MEMORANDUM January 16, 1986, 4 p.m. Iowa City Community Fitness Center NM File p2.86A PRESENT: Planning Committee: Randy Jordison, Co -Chair Mike Cilek Mike Moran Craig N. Willis Darrel G. Courtney T Mary Neuhauser, Co -Chair Dee Vanderhoef City of Iowa City: j Dale Melling I! Iowa City Community School District: Jerry Palmer Neumann Monson, P.C., architects Roy Neumann Kevin Monson Ken Wictor NOTES BY: Kevin Monson 1. The Architects will keep Conference Memorandum and will submit 10 copies to the City for distribution to the Planning Committee. 2. The Architects requested plans and specifications for the existing swim- ming pools at Mercer and City Parks. 3. Surveys of the existing facilities including property lines, topographi- cal information, and utilities will be needed from the School and the City. 4. Ken requested a contract person be named who would act as the facilitator of communications between Architect and Committee. 5. A preliminary schedule prepared by the Architects was cussion. presented for dis- 6. The resolution for the Bond Issue must be to the Commissioner of Elec- tions on April 9th. 7. It was decided that the members of the Committee representing the School Board and the City Council need to periodically report to their represen- tative governmental bodies on the progress and decisions of this commit - .tee. 8. The operational agreement will be prepared by the School and City Staffs and not this committee. 9. A copy of the Memorandum of Agreement was distributed to all present.' 10. Minutes of all previous committee meetings will be forward to the Architects. ....... ..... ...._.........,..,._ ..,. Page 2 11. The following spaces have been discussed for possible inclusion in the new Fitness Center: Pool, Gymnasium, Locker Rooms, Racquetball Courts, Floor Exercise Area, Machine Exercise Area, Administrative Uffices/Control Area, Vending Machine Area, Play Room, Whirlpool, Meeting Rooms (very low on priority list), Lobby with area for swim team sales. 12. Spaces that have not been deemed necessary but which were discussed include: Game Room, Hobby/Arts Spaces, Community Theatre 13. The Architect will meet with Mike Moran and further define program of space needs. 14. The Committee would like to investigate three pool sizes: a. 25 meter by 25 yard pool b. 25 meter pool with bulkhead and integral diving well. c. 50 meter pool with bulkhead and integral diving well. 15. The needs of the handicapped and the elderly must be considered in all pool'designs. 16. The Architect will prepare a contract to be submitted to the City for their review. 17. The condition of City Park and Mercer Park Swimming Pools was discussed at length. Without further testing and information it is difficult to predict the cost of renovation or the economics of renovating the pools. 18. The Architect will proceed with securing of necessary testing of existing outdoor pools working with the city Staff. 19. The Architect will make a recommendation on the location of the new fit- ness center upon receiving existing site plans of Southeast Junior High and of Mercer Park. 20. Meetings will be held from 3:30-5:00 at Iowa City School Board Chambers. This memorandum is submitted for your review. It is intended that the data contained herein be considered a factual reference and provide a basis for de- sign. If you have any questions, additions or changes, please contact this office. NEUMANN MONSON ARCHITECTS 226 South Clinton Street Iowa City, Iowa 52240 Distribution: 10 copies - Dale Melling Ken Wictor Roy Neumann Kevin Monson Jack Kiefer NMA File C 1l CITY OF 10 CIVIC CENTER 410 " ' CITY E WASHWGTON ST. IOWA CIN, IOWA 52240 (319) 356-50M January 22, 1986 Mr. Mark Jennings 3202 Friendship St. Iowa City, Iowa 52240 Dear Mark: Thank you for your letter of January 17, 1986, concerning reappointment to the Parks and Recreation Commission, As appointment decisions are made by the City Council, it is appropriate for the City Council to receive and otheo meeting ur eattendanceand hein orm tion addendum. I to have forwardedCit Council your However, it is not my impression that attendance was a significant factor in the Council's decision, If you are interested in serving on the Parks and Rec Commission and you believe there is a misunderstanding, I would suggest that you contact Councilmenbers directly, I certainly appreciate your efforts and particularly your participation in the interview of the director candidates. Sincerely urs, Heal G. Berlin City Manager /sp cc: Terry Trueblood Craig Willis Joyce Carroll e `University of 'Iowa 'Foundation January 17, 1986 Mr. Neil G. Berlin Civic Center 410 East Washington Iowa City IA 52240 Dear Neil: I'm not sure if you are the right one to be writing to, but you are the City Manager so I thought the most logical to correspond with. I just heard 'through the grapevine' that I was not reappointed to the Parks and Recreation Commisssion. I'm disappointed. I'm disappointed mainly with the way the whole commission process was handled.. First, when I attended the December meeting, Craig Willis told me my term was expiring at the end of that meeting. Me suggested if I was interested in continuing to serve on the Commission that I reapply at the Civic Center, which I did that week. The lady behind the desk asked me if I wanted to take the form home and fill it out, which I declined to do because I didn't think there was time. So I hurriedly filled it out there. Secondly, I'm disappointed because on the day of the January Commission meeting, as I stopped by to take the new Director to lunch and introduce him to the Commission's Chairman, I was asked by Joyce Carroll if I "wanted to come to tonight's meeting to receive my service certificate" -- the old gold watch trick. I was surprised and would have been totally embarrassed if I would have attended the Commission meeting unknowing of the situation. If you expect dedicated and professional service by Commission members, I believe we can expect the same treatment in return. A council member has since told me that the reason I wasn't reappointed was due to my poor attendance record. That, I find hard to believe! I think I just got a taste of the Iowa City version of the "Daly. machine." I'm sorry I won't be serving on the Commission, because with Terry Trueblood as the new Director, I think the Department is really going to progress. I had renewed enthusiasm for the Department. I'm still interested in the Parks and Recreation Department and plan to apply for a spot on the Commission when there is an opening. I love living in Iowa City and plan on living here for many years and want to be involved in community affairs. Alumni Center / Iowa City, Iowa 52242 / Telephone: 319'353-6271 as 0 i Mr. Neil G. Berlin January 11, 1986 Page 2 I want to reiterate that I think your decision to hire Terry Trueblood was a very good one. I'm sure you and the Council will be Pleased with his performance. Sincerely, ,�azoe Mark Jennings Director, Law School Fund Raising MJ:brs cc: John McDonald Terry Trueblood Craig Willis 1 ADDENDUM: In view of the fact that there is a feeling that my attendance was poor (I'm sure I made as many meetings as anyone else on the Commission except maybe Craig Willis), I thought I would list a few of the extra meetings and things that I did while a member of the Iowa City Parks and Recreation Commission. - I attended ever budget meeting that we were asked to attend. These were the Sa>ti�y morning sessions in January where we usually stood around the lobby of the library while the session ran hours late. - I attended both organization meetings that were targeted to discuss the formation of a Community or Parks and Recreation Foundation. - I attended an all -day workshop on how to be a better Parks and Recreation Commission member. - I went on several special park tours of the city. - I served on the Selection Committee to hire the new Director of Parks and Recreation. - I attended several Council meetings when the Commission was asked to attend and express our views about the swimming pool situation, and there were several of these occasions. - I remember sitting in several Council work sessions for one reason or another. - I attended a joint meeting with Planning and Zoning and Parks and Recreation to discuss the mandatory park dedication issue. - I spent time with Al Cassidy to make him feel welcomed to Iowa City. - I introduced Terry Trueblood to the Commission's Chairman and arranged for a luncheon meeting. This is in addition to attending most of the regular scheduled meetings. When you add all the regularly sche7uled meetings with all of the other special meetings that I attended, I'd say my attendance record was very good, maybe exceptional! Z20 COMMISSION MEETING ATTENDANCE PARKS AND RECREATION COMMISSION JANUARY 14, 1984 AUGUST B. 1984 PRESENT Rtd a ABSENT Riddles— Crum Willis Je�nniIgs Martin Dean Crum MitchellaM rtin Mitchell Steinbrech Hart Willis Alvarez Steinbrech Jennings SEPTEMBER 12, 1984 HartWillie— i Jennings ar FEBRUARY 8, 1984 Mitchell Crum Steinbrech Martin Mitchell Alvarez Willis Hart Crum Steinbrech Martin Jennings Dean OCTOBER 9, 1984 Rt -Pd Fe -Jaxiiw MARCH 14 1984 Riddle Crum Alvarez Steinbrech Jordison Steinbrech Mitchell Jennings ar Willis Martin Crum Mitchell Martin I Willis NOVEMBER 14, 1984 R dd a 9itchell MAY 184 Steinbrech Alvarez Willis e Willis �J_e_n_n_i_n�s iM tchel7 Crum Martin Jordison Steinbrech Hart Jennings Alvarez i Martin Crum DECEMeE�, 1984 JUNE 13, 1984 Steinbrech Rd e Crum Willis Mitchell Martin Willis ` Martin Jennings Alvarez Steinbrech Mitchell Alvarez Hart Crum JULY 11, 1984 Jordison R d e Mitchell Willis Crum Steinbrech JANUARY 9 1985 Jennings Alvarez Alvarez Steinbrech Jordison Martin Jennings Hart Mitchell Willis Hradek i i• Martin =?ao l �A aa{ava!a aaa\.. .aa a\avaaaa!vuwAw.V .... s..a .aa.ai ii«rv'rvv..ar 5 FEBRUARY 13, 1985 AUGUST 14, 1985 PRESENT ABSENT dd a Martin R dddle — — Martin Steinbrech i Steinbrech Jordison Willis Alvarez Willis Mitchell Jennings Hradek Mitchell Jordison Alvarez Hradek SEPTEMBER 12, 1985 Riddle Martin MARCH 13, 1985 Steinbrech Jenninas Jenn s ng Riddle Willis Mitchel) Jordison Alvarez Jordison Alvarez Martin Hradek Mitchell Steinbrech OCTO 9, 1985 Willis Ri d eBER Hradek Steinbrech Willis APRIL 10, 1985 Martin ATRTe Mitchell eft at 7:10) Jordison Mitchel" Alvarez Hradek Hradek Alvarez Steinbrech Jordison. Jennings Willis NOVEMBER 20, 1985 Martin ordison Steinbrech MAY 8, 1985 Willis RT a Martin Jennings Jennings Jordison Mitchell Martin Hradek Mitchell Alvarez Steinbrech Willis DECEMBER 11 1985 Hradek lvarez Alvarez Steinbrech Jennings JUNE 12 1985 e Watson Hradek Steinbrech Hradek Martin Jordison Mitchell Jordison Weideman Jennings Alvarez Willis JULY10,1988 Jordison AiJetche1 Martin Steinbrech Willis Hradek Alvarez I o?eZ0 *4. V F' fin...:. ............. u�.........................................,..... Johnson County Council of Governments 41OEVvfjshir>gicnSr. kwuGrybwo5-724O rf %0 / Date: January 23, 1986 To: City Council of Iowa City From: Marge Penney, Human Services Coordinator Re: Staff Recommendations for FY87 Human Services Funding You will find attached, for Council's consideration, staff recommendations for FY87 Human Service Agency funding, as well as highlights of the Agencies' FY87 budgets and funding presentations. These recommendations are presented by the City Manager and the Human Services Coordinator, and were made in consultation with Riley Grimes, Johnson County staff, and Mary Anne Volm, Director of the United Way of Johnson County. Also attached are charts of the history of Human Service Agency funding for City, County and United Way Agency Directors' Salary Recommendations and Benefit Points. These provide an overview only, and will be most helpful if used in conjunction with your FY87 Funding Request Books. Please note, in particular, that the acceptable range of agency benefit points is now 63 to 89, as retirement is now one of the benefits considered. The United Way Planning Division Agency Rankings will not be available until January 30, 1986 and will be provided to Council at that time. Items attached for your consideration include the following: PAGE FY87 Funding Recommendations: I. Agencies which are currently funded by both City and County ........ I II. Agencies which are requesting new funding from the City and which are currently County funded.................................9 III. Agencies which are requesting new funding from both the Cityand the County..............................................11 City of Iowa City Funding for FY85 and FY86, Agency Requests for FY87, and staff recommendations for FY87..............................13 Johnson County Funding for FY85 and FY86, Agency Requests for FY87, and staff recommendations for FY87....................................14 United Way Funding for UWFY85 and UWFY86, and Agency Requests for UWFY87...............................................................15 United Way Designated Giving for UWFY85 and UIIFY86............ 6 ......... 16 A Comparison of Current Local Support...................................17 Recommended Salary Structure Chart......................................18 Benefit Point Chart.....................................................19 10T R 1�M.��tii�aaataa! • avv \ at`.a«.\ attvta!aan.a.�.aa,:..V::..................w...t 2 In making recommendations for Iowa City's FY87 human service agency funding, the basic goal has been to provide the agencies with funds necessary to maintain current programming levels. At a time when virtually all of our agencies are experiencing significant increases in requests for service, an attempt to keep programming levels constant may require significant addi- tional funding. Most agencies are aware that funding for expansion and new programming must come from sources other than the local funding bodies. However, the basic funds provided by the City, County and United Way are crucial to the functioning of these agencies. The impact of various state and federal funding cuts has already been felt by several local agencies, and future cuts may be devastating. The exact effect, timing and scope of these cuts ena- tions. Wencanis nexpect todcould not be used a factor see their impact more clearly on next these nexyear'sofunding requests. The remainder of the Council's funding decision process for Human Service Agencies includes: Friday, January 31, 1986 - A meeting of representatives from the Iowa City Council with representatives of the Johnson County Board of Supervisors to review staff recommendations and prepare committee recommendations for pres- entation to each funding body. Monday, February 10, 1986 - City Council Informal Discussion of committee recommendations. If j the , a formaland nsession will be heldfeel that no ntional to finalize individual sessions ize decisions If you have any questions or desire additional material, please call me at 356-5242. /sp .1�71?/ 61 RECOMMENDATIONS TO THE CITY COUNCIL OF IOWA CITY FOR FUNDING HUMAN SERVICE AGENCIES IN FY87 I. REQUESTS FOR CONTINUED CITY FUNDING (AND FOR CONTINUED COUNTY FUNDING) A. Big Brothers/Bi Sisters: Recommended Funding $25,300 Current Funding FY87 Request Funding Recommendation City $24,091 $27,000 (+12,1%) $25,300 (+5%) County 11,340 15,000 (+32,3%) 11,900 (+4.9%) United Way 10,000 13,000 (+30%) Total Income $72,081 $86,500 (+20%) Descri tion of Program: Big Brothers/Big Sisters provides opportuni- es or soc a , emotional, mental and physical development for at -risk children aged 6-14 from single -parent families. This is accomplished through matches made with adult volunteers in the commu- nity. Significant Changes Proposed: 1. One a e a -lime case worker at $8,500 plus benefits and taxes. j 2. 5% salary increases for all present staff, 3. 18.7% increase in the cost of benefits and taxes, caused primar- ily by the proposed addition in staff. 4. 46.7% increase in dues and memberships ($1500 to $2200) to BB/BS of America. 5. previ usly beeniin-kind supportpfram tI e500ohto 1,100) Extension Service. 6. 100% increase in staff development ($750 to $1,500). Rationale for Recommendation: This is an excellent program serving a rea need, The increase requested was generated by a proposal for additional staff, a need caused both by this agency's waiting list and by the limitation on case load imposed by Big Brothers/Big sis- ters of cannot be�recomoend recommended time. The of fiscal ofunding tproposedawouldamainn tain this agency at the current level of i service. The. dollar amount of increase is $1,209. Director's Salary: Within suggested range. Director's Benefit Points: 77 1 ami k .......................... ........... .... B. Crisis Center Intervention: Recommended Funding $8,798 Current Funding FY87 Request Funding Recommendation City $8,460 $8,798 (+4%) $8,798 (+4%) County 25,475 26,494 (+4%) 26,494 (+4%) United Way 23,400 24,450 (+4.5%) Total Income $67,520 $70,586 (+4.5%) T Description of Program: Crisis Center is a suicide prevention and crinis iriterven ion service which is available to anyone who calls or comes in. This agency provides short term counseling as well as information and referral. It also provides a message relay service for the deaf utilizing the TDD, Telecommunications Device for the Deaf. gnif�icantt Chaneg s Proposed: 1. 7X -increase for present, regular staff combined with a 17% decrease in expenditures for work study staff. These result in a net increase of 4% in salary expenditures. 2. 15.5% increase in benefits and taxes caused by increases in rates. 3. 28.6% decrease in rent and utilities as the cost of space is divided more equitably with the Crisis Center Food Bank and 'emergency Assistance budget. Rationale for Recommendation: The Crisis Center has held the line on expenses while meeting increased client demand. Its '24 hour tele- phone availability is very important. A $338 increase is proposed. Director's Salary: $1,610 below suggested range for current year; $196 below suggested range for FY87. Director's Benefit Points: 68 Note: While the Iowa City City Council has approved CDBG funds for a facility for the Crisis Center, the schedule for occupancy of this new facility is unknown at this time. Therefore, the new location of the Center has not been considered in this proposal. It will be a very significant factor in future funding recommendations. The Crisis Center should be asked to provide revised budget information to both City and County within three months after occupying its new facility. j 2 a -Zi A t C. Crisis Center Emeraencv Assistance and Food Bank: Recommended Fund- ing E9,340 Current Funding FY87 Request Funding Recommendation City $8,902 $9,340 (+4.9%) $9,340 (+4.9%) County 8,902 9,340 (+4.9%) 9,340 (+4.9%) United Way 12,000 12,600 (+5%) Total Income $56,724 60,591 (+6.8%) Description of Prooram: The Crisis Center Food Bank and Emergency Assistance rogram is part of the Crisis Center but has its own coordinator. It provides assistance through two programs: the Food Bank gives individuals (primarily permanent Johnson County residents) emergency and supplemental food; the Emergency Assistance Program helps both transients and local residents, on a one-time basis, with emergency needs such as transportation, lodging and prescription medications. S1 nificant Chan es Pro osed: 1. sa ary ncrease or present staff. 2. 66.7% increase in rent and utilities as the cost of space is more equitably divided with the Crisis Center Intervention budget. Rationale for Recommendation: This program continues to meet dra- matic increases in requests for assistance, and to coordinate most of the private funding for these needs in Johnson County. Several budget pro'ections seem remarkably conservative (decreases of 6% for food and for transportation and lodging). die agency's full request is recommended: a $438 increase. Director's Salary and Benefit Points: The Coordinator of the Crisis Center Food Bank is not an agency director. Note: While the Iowa City City Council has approved CDBG funds for a fac7litY for of tis new facility ishunknown satethisnter�time. sTherefore, the nthched u le for ew anlocationhof the Center has not been considered in this proposal. It will be a very significant factor in future funding recommendations. The Crisis Center should be asked to provide revised budget information to both City and County within three months after occupying its new facility. 3 aai 10 Op D. Domestic Violence Project: Recommended Funding $13,200 Current Funding FY87 Request Funding Recommendation City $12,000 $14,500 (+20,8%) $13,200 (+10%) County 12,000 14,500 (+20.8%) 13,200 (+10%) United Way 15,500 .16,600 (+7.1%) Total Income $84,242* $110,943 (+31.7%) *Not including one-time CDBG funds and other contributions for reha- bilitation in FY86. Description of Program: The Domestic Violence Project makes compre- hensive services available to those effected by domestic violence in Johnson County. This program provides: safe shelter for victims of battering and their children; short-term counseling, advocacy and referral for both shelter residents and other victims of abuse; programs for children of battering families; and community education on the issue of domestic violence. Significant Chances Pro osed: 1. One additional, full-time staff person: a Shelter Counselor at $18,000 plus taxes and benefits. This position will be filled only if Federal Victim Funds become available. 2. Salary increases averaging 17.7% for current staff. Rationalefor Recommendation: The Domestic Violence Project has consis en y Prov e the—community with high quality services at very reasonable cost. In FY85 the shelter provided 2,984 shelter days for less than $52,427 ($12,106 for the entire agency's admini- stration, $30,414 for shelter and $9,907 for children's services) for a rate per shelter day of $17.57. This has been possible because of the commitment of agency staff to work many more hours than they are paid for. While the increases requested are not inappropriate, fiscal constraints prevent recommending full funding. The recom- mended increase would provide some improvement in staff salary lev- els. The proposed level of funding is an increase of $1,200. Director's Salary: $3,522 below suggested range currently; within suggested range for FY87. Director's Benefit Points: 60 E. Elderly Services Agency: Recommended Funding $28,671 Current Funding FY87 Request Funding Recommendation City $27,836 $28,671 (+3%) $28,671 (+3%) County 1,500 1,750 (+16.7X) 1,750 (+16.7%) United Way 10,500 10,815 (+3%) Total Income $92,502 $94,602 (+2.3%) 4 aa/ %4 �MN�\vvaavv!a.v\a ativa.v av• Descrf tion of Mira The Elderly Services Agency offers four programs to res dents of Johnson County who are age 60 and older: Information and Referral for services pertaining to the elderly; Outreach and Advocacy to seek out and assist elderly in need of services; Chore and Respite Care to provide services to enable eld- erly persons to remain in their own homes; and Shared Housing to match elderly people with others who will share their homes in return for rent or services. Significant Changes Proposed: average salary increase. Rationale for Recommendation: The Elderly Services Agency has again budgeted quite conservatively. The Director continues an excellent job of strengthening thisprogram, and services provided are up dra- matically. No expansion is requested; funds will continue the pro- gram as is. ESA helps the elderly remain in their homes, saving many dollars to the community. Funding at the requested level is recom- mended for an increase of $835. Director's Salary: $916 below suggested range currently; $286 below suggested range for FY87. Director's Benefit Points: 58 F. HACAP (Hawkeve Area Community Action Program): Recommended Funding �2,6uu Current Funding FY87 Request Funding Recommendation City $2,277 $3,000 (+31.8%) $2,600 (+14.2%) County 7,554 9,000 (+19.1%) 8,000 (+5.9%) United Way 15,000 16,000 (+6.7%) Total Income $6,858,429 $6,929,130 (+1%) Description of Program: HACAP is a multi -county agency providing a wide variety of sery ces. HACAP utilizes funding from Iowa City and Johnson County to support its Head Start full-day program and addi- tional funds from Johnson County for support of the Food Reservoir/Supplemental Food Program. The Head Start Program provides full-day developmental care to low-income, handicapped or protective care children whose parents are working or in training. The Food Program provides government surplus commodities and privately donated food to needy households on a monthly basis, to local emergency food distribution operations, and to local non-profit feeding programs. §ignniificant Changes Proposed: 1 5' average sa ary ncreases proposed. 2. One additional Day Care Teacher at an annual cost of $10,675. 3. Elimination of rent expense for Head Start. 4. Costs for Food Program remain constant, while revenue from Commu- nity Service Block Grant decreases. 5 a.2i Rationale for Recommendation: HACAP is proposing neither new pro- grams nor signs scan program expansion. The need for increased staff for Head Start results from state requirements for day care staffing. If fiscal limitations permit, funding at the full level requested would be desirable. The recommended funding is an increase of $323. Director's Salary: HACAP was not included in the salary study. Its director's salary does fall within the top range. Director's Benefit Points: 70.5 G. Mayor's Youth Employment Program: Recommended Funding $30,000 Current Funding FY87 Request Funding Recommendation City $29,000 $30,000 (+3.4%) $30,000 (+3.4%) County 3,144 8,000 (+154.5%) 4,000 (+27.2%) United Way 5,500 6,500 (+18.2%) Total Income $211,759 $265,341 (+25.3%) Description of Program: The Mayor's Youth Employment Program pro- vides subsidized employment to disadvantaged youth in Johnson County through three programs. The In -School Component offers work experi- ence during the school year in the public and private sectors; it is funded by both Johnson County and Iowa City. The Sumner Component offers a work -earn -learn program in conservation; it is funded by Iowa City. The Jobs Training Partnership Act (JTPA) Summer Program offers placement to youth through age 21. Ski nific�ant Changes Proposed: 1. Sa ry increases of 5.1% total. This includes a 4% rate increase, and also brings the salaries to full time. 2. 28.6% increase in rent as MYEP has moved to a new facility. i 3. 14% increase in the wages to be paid to youth. Rationale for Recommendation: This agency placed 316 youths in jobs last year, preparing tem or the world of work and increasing their family income. For every local funding dollar contributed to Mayor's Youth Fm loyment Program, more than two dollars are' generated in state and federal money. That is a very good return for local fund- ing. There has been continued discussion in recent years of the economies to be realized by locating agencies together - either as separate entities or as merged or blended agencies. The youth serv- ing agencies would be very appropriate for this approach, and local funding bodies may want to pursue that possibility during the next year. The agency's full request is recommended, an increase of $1,000. Director's Salary: $136 below suggested range currently, within range for FY87. Director's Benefit Points: 74 6 ami i P n H. Rape Victim Advocacy Program: Recommended Funding $10,350 Current Funding FY87 Request Funding Recommendation City $9,865 $10,647 (+7,9%) $10,350 (+4.9%) County 9,865 10,647 (+7,9%) 10,350 (+4.9%) United Ilay 6,000 8,092 (+34.9%) i Total Income $41,609 $49,066 (+17.9%) Description of Program: The Rape Victim Advocacy Program provides crlsis intervention, peer counseling, advocacy and information to victims of sexual abuse and their families. It also works toward the prevention of sexual assault and harassment through public informa- tion programs. Sjicgnificant Chanqes Proposed: 1-5aT1ry fnereases`of 37'K for the program coordinator and 17% for the assistant coordinator. 2. 31.5% increase in printing and publicity. Rationale for Recommendation: This program appears to be back on track, addressing itself'* Frimarily to dealing with sexual abuse crises. Although a greater increase in funding recommendation would permit the Director to move closer to the recommended salary range, fiscal constraints prevent so large an increase. A $485 increase is recommended. Director's Salary: $3,892 below suggested range currently; within range for FY87. Director's Benefit Points: 85.5 1. United Action for Youth: Recommended Funding $40,000 Current Funding FY87 Request Funding Recommendation City $38,592 $40,425 (+4.7%) $40,000 (+3.6%) County 38,500 40,425 (+5%) 40,000 (+3.9%) United Way 10,500 18,000 (+71.4%) Total Income $134,930 $128,350 (-4.9%) Description of Program: United Action for Youth includes two pro- grams - Outreach and Synthesis - which provide counseling, outreach and creative arts opportunities for youth in Johnson County. Many of the youth served are alienated from more traditional youth services, and UAY often intervenes with at -risk youth who might otherwise become involved in juvenile delinquency. 7 ,! 9 r Significant Chan es Proposed: 1. Salary rate increases range from 2.5 to 5.0% with an average of 3.3%. 2. Decreases in staff development, professional consultation, sup- plies, printing and local transportation range from 15 to 54.5%. 3. 50% increase in insurance costs. 4. Decrease of 38.1% in income from State and Federal sources. Rationale for Recommendation: This agency will be severely affected y State and Federa cutbacks. No new programs or program expansion are planned. There has been continued discussion in recent years of the economies to be realized by locating agencies together - either as separate entities or as merged or blended agencies. The youth serving agencies would be very appropriate for this approach, and local funding bodies may want to pursue that possibility during the next year. An increase of $1,408 is recommended. Director's Salary: $272 below range currently; within range for FY87. Director's Benefit Points: 78.5 J. Willowcreek/Mark IV: Recommended Funding $10,250 Current Funding FY87 Request Funding Recommendation City $9,400 $10,829 (+15.2X) $10,250 (+9.0%) County 2,600 4,123 (+58.6%) 3,500 (+34.6%) United Way 18,500 21,097 (+14.0%) Total Income $39,109 $39,834 (+1.9X) Description of Program: The Willowcreek Neighborhood Center provides services to residents of Mark IV Apartments (now Pheasant Ridge) and other residents of Johnson County. Programs include recreation, education and outreach, food and nutrition, counseling and support, South East Asian Outreach, and Childcare Coordination. 11 nificant ChangesProposed: 1. 0 5 sa ary ncreases, and an increase in hours for the child- care coordinator. 2. The Gannett Foundation grant for the Childcare Coordinator will end in October of 1986. Rationale for Recommendation: This agency has again experienced a c ange o personne n the Director's position. Directors have consistently told funding bodies that current staff levels are not adequate for existing programs. Program quality is high. The new Director has served as Program Coordinator, so the transition was smooth. While fiscal concerns prevent recommending full funding, any additional support would be warranted. An increase of $850 is recom- mended. 0 a-2/ Director's Salary: $5,042 below suggested range currently; $q,P92 below range for FY87. Director's Benefit Points: 52 II. REQUESTS FOR NEW CITY FUNDING (AND FOR CONTINUED COUNTY FUNDING) A. Independ_ e�ivina: Recommended Funding $0 Current Funding FY87 Request Funding Recommendation City $0 $750 $0 County 6 3,842 9,05 +150% ' ( ) $5,000 (+30.1X) United Way 11,200 21,315 (+90.3%) Total Income $32,224 $42,970 (+33.3X) Descrt tion of Pro ram: Independent Living exists to provide support to eve opmenta y sabled youth and adults. It is a client di- rected service. Kirkwood Community College Adult Basic Education classes are offered in Consumer Economics, Survival Skills and Self -Esteem. Individualized tutoring is provided, and counseling and advocacy are available. Si nificant Chan es Pro osed: 1. n ncrease o 24% Mnexpenditures for salaries includes funding to change the Director from half-time to full-time. (He is already 2. Anincincrease benefitslandl taxes of 25% is caused by the in- creased salary level proposed. Rationale for Recommendation: New funding is requested to expand the rec or s me ran a - ime to full-time. Because of fiscal constraints, funding cannot be recommended at this time. 6. MECCA (Mid -Eastern Council on ChemicalAbuse): Recommended Funding f Current Funding FY87 Request Funding Recommendation City $0 $30,000 $10,000. County 103,000 200,000 (+94,2%) 200,000 (+94.2%) United Way 1,000 15,000 (1,400X) Total Income $744,660* $992,896 (+33.3%) *Does not include sale of Voss house, CDBG funds for new facility, or new facility contributions. Description of Promram; MECCA's programs are Treatment, Prevention and Acute Care. Treatment includes individual, group and family counseling, as well as residential facilities for both male and 9 aai female recovering substance abusers. Prevention provides workshops, presentations and in -services on substance abuse prevention, includ- ing the Elderly Outreach Project. Acute Care includes social detoxi- fication for substance abusers: withdrawal from alcohol and other drugs. It also includes acute psychiatric care: in-patient psychi- atric care, often for adjustment of medication levels. Signific^nt Changes Proposed: 1. Entire Acute Care program is new at a cost of $134,276. 2. Wide range in salary increases varying from 2.5 to 13.6%. Total salary increase of 33% includes staff for new Acute Care Pro- gram. Rationale for Recommendation: The full staff and resources at MECCA are pus e o e m of by state and federal cutbacks and by the increasing problem of substance abuse. This chronic problem impacts virtually every other Human Service Agency in Iowa City; it is clearly seen at the Domestic Violence Project, Rape Victim Advocacy Program and United Action for Youth, for example. Funds contributed toward helping residents who reach out to MECCA for assistance are well spent in terms of prevention of other, related community prob- lems. The impact of these dependencies on crime and traffic accidents is well documented. The new MECCA facility should have a very positive local impact. It is hoped that individuals who until now must leave home and job for one month or more to obtain in-patient treatment, will now receive in-patient care at MECCA for a much shorter period of time. They will then return to work and receive out-patient care. It is important to note that both Coralville and Solon contribute to this program. Other University towns in Iowa: Ames, Waterloo and Cedar Falls, all contribute a portion of their liquor revenues to substance abuse programs. Last year Iowa City received 5222,716.95 from license fees and liquor sales. The $10,000 support recommended would be 4.5% of that amount. Director's Salary: Within range. Director's Benefit Points: 69.5 C. Red Cross: Recommended Funding $0 Current Funding City $0 County 4,000 United Way 12,000 Total Income $63,182 FY87 Request $1,000 7,000 (+75.0%) 16,710 (+39.3%) $62,675 (-0.8%) Funding Recommendation $0 5,000 (+25%) Description of _Program: The Red Cross provides three programs in o nson oun y. HealEn and Safety: Education in health/safety and childcare, blood pressure screening, first aid stations and support 10 services to blood collection and water safety programs. Services to Military Families: Assists in reuniting families with members in the armed forces during times of family crisis. Disaster Services: Emergency food, shelter, clothing and other essentials for victims of natural disasters. Si nificant Changes Proposed: 1. Sa ary increases o 4%. 2. Amount of National Dues decreased from $16,020 to $10,000 (37.6%). This appears to be part of National Red Cross' attempt to help the local chapter regain fiscal stability. Rationale for Recommendation; This agency is providing substantial f sery ces to res ents of Johnson County, particularly in the area of disaster relief. The need for increased funding results mainly from the planned reduction of interim support which the local agency has been receiving from National Red Cross. While the services provided by this agency are valuable, fiscal concerns prevent a recommendation for funding at this time. III. REQUESTS FOR NEW CITY FUNDING (AND NEW COUNTY FUNDING) A. 4C's (Community Coordinated Child Carel; Recommended Funding $0 Current Funding FY87 Request Funding Recommendation City $0 $4,500 $0 County 0 4,500 p United Way 6,500 12,000 (+84.6%) Total Income $199,229 $148,348 (-25.5%) Descri tion of Pro ram: 4C's focuses on the needs of young children ages b rth to 6+ years), their parents and child care providers. Programs include: Child Care Information and Referral, Child Devel- opment Education, Emergency Child Care, Fine Arts and Folk Arts, Child Care Food Program and Sexual Abuse Prevention. The 4C's Child Care Directory is an excellent resource detailing child care serv- ices available in Johnson County, Significant Chances Proposed: 1. 3% increases in the salaries of the Executive Director and Education Coordinator combine with a reduction in hours for other staff to produce a decrease of 8.9% in total agency sala- ries. 2• $40,000 grant from Gannett ends. Rationale for Recommendation: 4C's receives a large portion of its budget rom sources ou s e Johnson County, including funneling more than $100,000 in Child Care Nutrition funds into our area this year, Because Johnson County has many day care centers and homes, there is a great need for the Child Care Directory and for child care work - 11 aai U shops. The 4C's Gannett Grant has ended, •leaving this agency in severe fiscal difficulty. While fiscal constraints prevent a recom- mendation for funding, City and County help may be necessary to help save 4C's, perhaps by finding a place for this agency within an- other. i B. Handicare: Recommended Funding: $0 Current Funding FY87 Request Funding Recommendation I City $0 $3,600 $0 County 0 3,600 0 United Way 500 3,600 (+620%) Total Income $109,300 $203,423 (+86.1X) Description of Program: Handicare is a licensed daycare/early childhood ntervent on center which offers specialized services to developmentally disabled/handicapped children (from infancy to six childrItalso offers regular en. Itsuniquenessil sdue daycare oaservices to ted the only daycareinaIowa to integrate disabled and non -disabled children of this age group, i Significant Changes Proposed: 1. t is move to a new facility and connected expansion, most areas of expenditure are not comparable to previous years. 2. Total salary expenditures will rise 84.8% because of new posi- tions and staff salary increases. Rationale for Recommendation:• Handicare runs a quality program of great benefit to the disabled and non -disabled children it serves. While expansion has been rapid, the agency appears to have handled the changes well. Next year's projected intone of $203,000 includes fees for services of $190,000, indicating that the program is close to self-supporting. Initial funding cannot be recommended at this time. 12 ami N; a c CITY OF IOWA CITY HUMAN SERVICE AGVICY FUNOIUG Ao-ency Funding Ff 85 Funding F'f 86 % Increase '85 to '86 Reouest FY 87 Recommended % Increase Dollar Increase Big Bros./81g Sisters S 21,901 S 24,091 110.0 S 27,000 § 25,300 5.0 §1,209 Crisis Center-Interv. 8,281 8,460 2.2 8,798 8,798 4.0 338* Crisis Center -Food Bk. 8,627 8,902 3.2 9,340 9,340 4.9 438* 00mestic Violence Proj. 10,420 12,000 15.2 14,SO0 13,200 10.0 1,200 Elderly Services Agcy. 27,159 27,836 2.5 28,671 28,671 3.0 835* HACAP 2.000 2,277 13.8 3,000 2,600 14.2 323 Mayor's Youth Employ. 29,076 29,000 -.3 30,000 30,000 3.4 1.000* Rape Victim Advocacy 10,56688 9,865 -7.5 10,647 10,350 4.9 485 United Ac -ion for Youth 37,592 38,592 2.7 40,425 40,000 3.6 1,408 Willow Creezilaark IV 9.023 9,400 4.2 10,829 10,250 9.0 850 Total Continuation 164,747 170,423 3.4 183,210 178,509 4,7 8,086 Conti noencir 99156** 3,468 -62.1 4,077 4.077 17.6 609 Total 173,903 173,891 0.0% 187,287 182,586 5.0 8,695 New lemem - Eristino Agencies C's 4,500 -0- Handicare 3,600 -0- Indenendent Living 750 -0- MECCA 30,000 10,000 10,000 Red Cross 11000 -0- Total New Requests II 39,BED 10,000 Grand To:ai 173,903 173,891 0.0%11 227,137 192,586 10.8 18,695 *Recommendation is agency's full request. **This unusually large Contingency funding included the City's contribution for Agency Directors' salary adjustments. 13 ,V-u.:.ciu......! .... ,..................w............... JOHNSON COUNTY HUNAN SERVICE AGENCY FUNDING Agency Funding FY 85 Funding FY 86 X Increase '85 to '86 87 Dollar Reouest Recommended �_ S In Increase ARC Big Bros./Bio Sisters $ 10.800 $ 36,000 11,340 N/A 50 S 47,000 $ 46,000 27, 8 $ 10,000 Crisis Center-Interv. Crisis Center -Food Bk. 24,252 8,635 25,475 15,000 26';C4 11,900 26.494 4.9 4.0 560 8,902 3.1 91- 0 9,340 4.9 11019** 438** Domestic Violence Proj. Elderly Services 7,800 1,528 12,000 1,500 53.8 14,500 13,200 Free Medical Clinic RACAP 30,899 .32,444 5,0 1'750 47,050 1,750 39,482 1G0.0 1,200 250 j 4,175 7,554 80.9 91000 81000 21.7 5.9 7,038 Independent Living Lutheran S.S. 2,400 12,980 3,842 13,436 60.19160-2- 6,000 30.1 446 1,158 Mayors Youth Employ, Mental Health I 2,200 3,144 3.5 42.9 14,4.5 14,000 0 4.2 27.2 564 312,137 345,416 10.7 388,2013 388,213 12.4 42 jgj MECCA Rape Victim Advocacy 103,000 9,865 103,000 9,865 0 0 200,000 200 .000 94.2 ** Red Cross 4,000 4,000 0 �, 10,-47 10,350 4.9 ,97,000 485 United Ac:lon for Youth 37 .00 38,:00* 2.7 40,425 40000 ,000 000 23.9 1.000 Visiting Nurses Assn. 138,425 Willow Creek/1-lark IV 129,216 -6.7 129,216 129,216 3.9 0 1,500 Youth Homes 2,000 51,416 2,500 55,413 30.0 7,g 3,500 34.6 0** 900 i 6,205_ 56, _g 55,413 0, 0 Total Continuation 764,022 843,647 10.4 1,038,664 1,010,858 19.8 New Requests - Existing Agencies 167,211 Emergency Housing - - 4 C's 61000 -0- - - _ _ 4,500 -0- er LegalServices Legal Services - - - - 3,600 -0- - - _ 51000 .0 - Total New Requests II 191:00 -0- Grand Total 764,022 843,647 10.4 11,076,891 1,010,858 19.8 167>211 Total without MECCA & 395,231 Mental Health 488,678 422,645 6.9 27,414 *$4,000 of United Action for Youth's FY 86 allocation was dispensed to them (in FY 85). Therefore, the County's budget in June of 1985 only shows $34,500 for FY 86. **Recommendation is agency's full request. 14 gal S P UNITED WAY HU14AN SERVICE AGENCY FUNDING Agency FAlloc. Y84-85 Al loc. FY85-86 7 Inc. AIloc. Request $ Increase ARC S Inc. Funded 3 12,000 $ 12,000 0 $ 17,000 $ 5,000 41.7 BB/BS Boy Scouts 10,000 9,000 10,000 9,200 p 13,000 3,000 30. 2 2 15,600 6,400 69.66 Camp Fire renter 4+500 23+000 4,500 23,400 0 8,500 4,000 88.9 C.C. Food Bank 11,500 12,000 1.7 4.3 24,450 1,050 4.5 12,600 600 5.0 Dent. Svs. Children OVP 2,000 2,000 p 2,620 13,000 15,500 19.2 16,600 620 1,100 1.0 37.1 Elderly Services Agency 10,000 10,500 5.0 10,815 4 -C's 315 3.0 Free Medical Clinic 6,000 34,396 6,500 35,000 8,3 1.8 8.1 41,330 6000 ;330 1500 Ger. Mobil Dental Girl Scouts 21000 10,000 2,000 10,000 0 3,000 1,000 50.0 Goodwill 35,500 35,500 p 0 13,625 40,000 3,625 36.3 4,500 12.7 HACAP/Headstart Hardicare 17,000 15,000 -11.8 16,000 1,000 6.7 Hillcrest - _ 500 1,200 NA NA 3,600 3,100 620.0 11,555 10,355 862.9 Independent Living 101000 11,200 12.0 21,315 10,115 90.3 Legal Services Luth. Soc. Services 9,000 10,000 9,400 10,000 4.4 15,000 5,600 59.6 0 15,000 5,000 50.0 MECCA Mayor's Youth Employ. 5,500, 1,000 5,500 NA 0 15,000 14,000 1,400.0 6,500 1,000 18.2 RVAP Red Cross 6,000 12,000 61000 12,000 0 0 8,092 2,092 34.9 16,710 4,710 39.2 Sal. Army Sch. Children Aid 3,000 3,000 3,000 3,000 0 121.7 7 15.6 UAY 10,000 10,500 L 0 71.4 VNA 45,700 45,700 00 Willow Creek/Mark IV 18,000 18,500 2 14.0 TOTAL $332,096 $340,600 2.6 11$454,826 $114,226 .33.5 15 aai %4 .........<... R ...... .........v....... k.. UNITED WAY DESIGNATED FUNDS Agency Designated UH FY 85 Designated UW FY 86 ARC BB/BS $ 996 $ 810 Boy Scouts 1,160 1,220 1,655 1,035 Camp Fire 128 270 C. Intl. Program 257 1,440 Crisis Center 1,713 1,607 C.C. Food Bank - Dent. Svs. Children 578 497 DVP 2,295 5,351 Comm Mental Health - Elderly Services Agency 1,256 2X 023 4 -C's 414 562 Free Medical Clinic 1,437 1,709 Ger. Mobil Dental 105 419 Girl Scouts 405 1,253 Goodwill 803 842 HACAP/Headstart 322 543 Handicare 761 663 Hillcrest 101 Independent Living 483 601 Iowa C d F Services 615 997 I. C. Hospice 3,054 3,316 Legal Services 244 297 Luth. Soc. Services 1,365 828 MECCA 1,249 298 Mayor's Youth Employ. 319 306 Mental Health Assoc. 988 954 Project HOPE 1,016 982 RVAP 1,053 1,464 Red Cross 1,610 1,892 Sal. Arany 1,470 1,327 Sch. Children Aid 260 633 UAY 437 482 U. Way VNA 1,207 1,980 Willow Creek 485 448 Youth Homes 1,067 1,467 TOTAL $30,772 $39,052 16 i aa� %4 L • HV\\{a avvS..vv\vvLv.......... ii.'.-.+wt..v Agency Assn. Retarded Citizens Big Bros./Big Sisters Boy Scouts Campfire Crisis Center - Food Crisis Center Dental Svs. Children Domestic Violence Elderly Services Emergency Housing i 4 C's Free Medical Clinic Geriatric Dental Girl Scouts Goodwill HACAP Handicare Hillcrest Independent Living Leggi Services Lutheran Social Svs. MECCA Mayor's Youth Mental Health RVAP Red Cross Salvation Army School Children's Aid United Action for Youth Visiting Nurses Assn. Willow Creel/Mark IV Youth Homes TOTAL LOCAL ALLOCATIONS Johnson County FY86 $ 36,000 11,340 8,902 25,475 12,000 1,500 32,444 7,554 3,842 13,436 103,000 3,144 345,416 9,865 4,000 38,500 129,216 2,600 55,413 Iowa City FY86 S - 24,091 8,902 8,460 12,000 27,836 2,277 0 29,000 9,865 38,592 9,400 5843,647 $170,423 17 United Way U.W.FY86 $ 12,000 10,000 9,200 4,500 12,000 23,400 2,000 15,500 10,500 6,500 35,000 2,000 10,000 35,500 15,000 500 1,200 11,200 9,400 10,000 1,000 5,500 6,000 12,000 3,000 3,000 10,500 45,700 18,500 $340,600 aai ,4 5 18 - jai RECOMMENDED SALARY STRUCTURE JULY, 1984 Grade A enc Full Time Salary Range 1 Independent Living $17,398 - 24,357 4 C's - Community Coordinated Child Care j 2 ARC - Association for Retarded Citizens $18,790 - 26,306 3 Big Brothers/Big Sisters $20,292 - 28,409 Free Medical Clinic Handicare Red Cross Rape Victim Advocacy Program United Action for Youth Willow Creek/Mark IV 4 Crisis Center $21,916 - 30,682 Domestic Violence Project Elderly Services Agency Mayor's Youth Employment Program United Way Youth Homes 5 Community Mental Health $24,913 - 37,370 Goodwill Industries MECCA VNA - Visiting Nurses Association 18 - jai City of Iowa City MEMORANDUM Date: 6/11/84 To: Social Services Agencies and Funding Bodies From: Salary/Benefits Review Committee Re: Employee Benefits for Social Services Agencies - Recommendations To promote equity and consistency in the allocation of benefits for employees of Social Service agencies funded by the City of Iowa City, Johnson County and the United Way of Johnson County, the following are proposed to guide decisions re- garding establishment of the appropriate levels of employee benefit allocations: 1. Recommended benefit allocations for full-time permanent agency employees are at minimum 50 benefit points and should not exceed 60 benefit points. Benefits may be prora ea tar part-timef permanent employees. 2. Benefit point equivalents are as follows. Within the 50-60 point range, benefits may be selected as determined to be appropriate by each agency. 3. For Salary/Benefit comparison purposes, 1 benefit point = $75.00. Benefit packages which exceed the 50-60 point range may warrant review of salary level. NOTE FOR FY87 FUNDING REQUESTS TO JOHNSON COUNTY AND THE CITY OF IOWA CITY, AND TO UNITED WAY FOR 4/1/86-3/31/87: The memorandum above, and last year's budget forms, included all benefits except retirement'. In order for the funders to gain a more complete understanding of the agencies' benefit packages, retirement has been included on this year's budget forms. Using the current IPERS (Iowa Public Employees Retirement System) employer contribution percentage (5.75:) together with the range of recommended salaries ($17,398 - $37,370), the range of benefit points for retirement should be 13 to 29 for agency Directors. The addition of retirement points would make the recom- mended range of benefits points 63-89. BENEFIT POINT INFORMATION APPEARS ON PAGE 6 OF EACH AGENCY'S BUDGET. 19 aa� Benefit Points 1 day off = 1 point 1 1 year single health = 12 points year single + family health = 24 points Life Insurance 1 x annual per year LTD = 1/2 point coverage per year = 1 point 1 1 year single dental = 2 points year single + family dental = 4 points 3. For Salary/Benefit comparison purposes, 1 benefit point = $75.00. Benefit packages which exceed the 50-60 point range may warrant review of salary level. NOTE FOR FY87 FUNDING REQUESTS TO JOHNSON COUNTY AND THE CITY OF IOWA CITY, AND TO UNITED WAY FOR 4/1/86-3/31/87: The memorandum above, and last year's budget forms, included all benefits except retirement'. In order for the funders to gain a more complete understanding of the agencies' benefit packages, retirement has been included on this year's budget forms. Using the current IPERS (Iowa Public Employees Retirement System) employer contribution percentage (5.75:) together with the range of recommended salaries ($17,398 - $37,370), the range of benefit points for retirement should be 13 to 29 for agency Directors. The addition of retirement points would make the recom- mended range of benefits points 63-89. BENEFIT POINT INFORMATION APPEARS ON PAGE 6 OF EACH AGENCY'S BUDGET. 19 aa� �t1 A\atal.aa+vnNtaa City of Iowa City MEMORANDUM Date: January 22, 1986 To: City Council and City Manager From: Rosemary Vitosh, Director of Finance Qgq�,w, ,Upaal.� Re: Sewer Bonds 0 Although the report from the financial advisors on "Financing Plans for Wastewater System Improvements" did not specifically address call provisions on bond issues, that concept was considered in the development of their pro- jections. Since it would definitely be to the City's advantage to include call provisions, we will be considering such provisions as a priority in the structuring of all bond issues for this project. bj3h4 I %4 rT PRECEDING DOCUMENT r r Vh.:wa:.....t...................t.....:.n,.....::: City of Iowa City MEMORANDUM Date: January 22, 1986 To: City Council and City Manager From: Rosemary Vitosh, Director of Financeli16.� Re: Sewer Bonds 0 Although the report from the financial advisors on "Financing Plans for Wastewater System Improvements" did not specifically address call provisions on bond issues, that concept was considered in the development of their pro- jections. Since it would definitely be to the City's advantage to include call provisions, we will be considering such provisions as a priority in the structuring of all bond issues for this project. bj3/14 aa� I _J �'1l�A.N aaa taa�.a`.�•. \r at .a• City of Iowa City MEMORANDUM Date: January 24, 1986 To: City Council From: Patt Cain, Associate Plannerlli Re: Old Capitol Center North Entrance Landscaping Terry Robinson, City Forester, has recommended that the three easternmost trees and grates at the north entrance to Old Capitol Center be removed and replaced with sidewalk surface. These trees are subject to severe environ- mental stress from exhaust fumes, inadequate sunlight and pedestrian traffic, and the grates pose a safety hazard to persons .entering and exiting the buses. At their January 15 meeting, Design Review Committee members agreed with the City Forester's recommendation. They acknowledged that safety considerations made the location of trees impractical in that area. The Committee stipulated however, that the sidewalk material used to replace the grates be specifically chosen and installed to match the area surrounding each grate. In accordance with these recommendations, the Public Works Department will develop plans and specifications for replacing the three trees and grates with sidewalk surface and will coordinate activities with Terry Robinson and with the Design Review Committee for review of the plans prior to sidewalk installation. bdw/sp as 3 .4 City of Iowa City MEMORANDUM DATE: January 23, 1985 TO: City Council FROM: Larry McGonagle, Transit Manager RE: Monthly Ridership Statistics ,/y Attached are Iowa City Transit's ridership statistics for December, 1985. Vh...xa.......,....,...................,.rte ...... .:c-»..............._Y.........�,....�.�..... MONTHLY RIDERSHIP STATISTICS FY 81 FY 82 FY 83 MONTH RIDERSHIP + _ + R DERS P + -1 'JULY 126,668 4 141,870 11 152,830 7 AUGUST 112,958 (3) 131,162 14 152,473 14 SEPTEMBE 181,320 13 198,065 8 220,691 10 OCTOBER 207,557 5 221,940 6 237,075 6 NOYEFiBER 181,722 (3) 205,132 11 242,446 15 DECEMBER 186,843 11 199,346 6 209,865 5 JANUARY 191,966 1 (1) 1 242,050 21 224,297 (7) FEBRUARY 230,887 (1) 266,456 13 258,786 (3) MARCH 203,381 1 254,476 20 232,604 (9) APRIL 197,513 6 234,880 16 220,792 (6) PAY 146,832 8 166.886 112 165,126 JUNE 138,138 12 156,727 12 148,845 5 2,465,832 2 *.' of INCREASE (DECREI SE)F� 4 PREVIOUS FISCAL YEAR t n '11NTH WEEKDAY WEEKDAY VENING SATURDAY SATUR AY EVENING 8 t(-) 2 t(-) FY 83 t(_) FY B1 t(_) FY 82 t(_) FY 83 +(_) FY 111 t(-) FY 82 t(_) FY 93 t(_) FY 91 t(_) FY 82 t(_) FY 83 t(-; JULY 827 20 680 (18) 1455 47 AUGUST 5419 (2) 6817 21 8647 21 SEPTEMBER 1 907 1153 30 2 1070 1431 15 19 1128 1788 5 19 OCTOBER 1 9 53 i 92 9867 17 98 1 926 19 17 50 5 ]O6 4.232 21 16 0 094 5 364 3 17 17 15 1204 23 1927 38 2177 ll NOYEFOIER DECEMBER 50 609 1327 26 1017 (11) 1932_ 1569 7 31 1929 1685 26 7 JANUARY FEBRUARY '111RLH APRIL 167 {py TUNE 'DIAL •S F 161 628 195 710 171 340 334 21 526 18,486 ,791,12 INCREASE 2 1 5 6 3 3 (DELREASE) 1 22 282 2 15 16) 19 98 015 15 37 172 11 33,419 11 126,98 .037.1H 12 2,072.955 FROM 2 199 66 182 9fi 136 37 PREVIOUS 2 7 B 1 5) 2 FISCAL 9077 1 3 401 7 1,797 12 1,28B 12 7710 14 7180 17 12,118 11 Y1.. 4 009 8,389 7,064 5,574 9414 8635 145,51 35 27 31 28 18 17 0355 23 140,73 2 960 16,149 14,068 13,047 9498 7 (12) (IB) (16) 1 (3) 2 9 915 20,221 15,951 17,550 16,329 13 11,495 10 88.165 27 15 15 17 9 25 812 23 262 19 499 19,49) 18,558 3,577 16,444 23 ]3 18 10 2 6 13 23,307 23 154 17 299 2 493 7,710 2,346 .5 11 3 5 91027 3 267 14,311 6 22 13 5 3 46 I79/ 1742 1096 19,854 38 40 25 27 6 28 1846 2269 1568 2285 1541 1156 15 I 20,821; 2 24 10 2) 21 I 1(12) i 5 G •a.�Wµvalaea!•av♦ t • \'Naa\\ ♦a� \aa!a+.aa.www.v l:.'TT:'.\': ,a.aw-wM++A...v.��iiii...wv...a ..Ye......... I•v.Ytivw\w'.wa w • lto—w_l II city R E C E IVED.IAM 201986 January 17. Saa1 DcrIin, City Mann er Cit'• of iowe C; t',* Ci':ic Ginter j Coca City, Toota 522•10 Drat• The Executive Committee of the Greater• lowa City Area Chamber of , Cnmmerce recummends that Phil Shive, owner and Manager of Sweets and Treats be appointed as a member of the .Johnson Cuunly Council c•f Government Transit Advisory Committee. its a downtown t•e- t:1iIL'1•, well studied in critical transit,'puri•iutt issues, Phil will bring valuable insight: to this committee. The +L-ealev Iowa C;ty ren +:hn:nher u;' ,'omill rt•ce wcic.on,th,: :,P- pnrtunity to work wtlh public "I'tic,.q in ,1,�•:,.ieniu: s com.. ,ruhLti c:.i ; rata i I n1 : _.. —s—Zati . Gr=atcr !o(,a Cit, Aria Chamber of Cum:nerc0 Greater Iowa City Area Chamber of Commerce P.O. Box 2358 Iowa City, Iowa 52244 (319) 337-9637 n RE CE IV ED JAN 2219PR THE WHITE HOUSE WASHINGTON January 16, 1986 Dear Mayor McDonald: On behalf of the President, I would like to thank you for your recent correspondence. A copy of your letter has been forwarded to the appropriate officials at the Department of State for their benefit and consideration. I sincerely appreciate your sharing your views with the Administration. Sincerely, Deborah L. Steelman Deputy Assistant to the President and Director, Intergovernmental Affairs The Honorable John McDonald 410 E. Washington Street Iowa City, Iowa 52240 0?026 0 COOPER EVANS u) CANNON HOUSE °.N¢! suaOlx ..1NNGICN oC )°$Is }RO OI s1111c[lawl jl C [ 12021221-3301 COMMMIE ON AGRICULTURE �, L E I '• 1tl)W{SI NOUR1N ffRF[I SUICOMMIRIIs' Y°x5. /ryy Izongras of the `united E$tatr's WAIIRLOO.IOWA 101°. 1.3715 RESEARCH OR(ILN RESEA`{CUNo10 10} SUYNHCLINIONSNR((, It., °w1CR,, }.0 wxucsonN12x0 °1'}11-0012 TIEDCANNOT douse of RPresnratis 1}w{51MMN AOHOC ALRICULIYRI VAPSNAIL,°W NIOWA1. SS . I 1Uo_c.l, . Uas ington,B.C. 20515 111110}3.1) salt, muu mle ON Aeme W IOwA. mu HUL xuusl.6 1-eoo.n).17.5 TFC..Ot%l ASSISS RENT BOARD January 16, 1986 Honorable John McDonald Mayor City of Iowa City Civic Center, 410 East Washington Street Iowa City, Iowa 52240 Dear Mayor McDonald: Thank you for your recent letter and your efforts to share your concerns about nuclear weapons. I share your concern and have supported efforts to provide a stable posture to encourage negotiations which will lead to real reductions in nuclear weapons stockpiles on both sides and reduce the risk of nuclear war. Your views are much appreciated, and I hope you will feel free to contat me again if you have additional questions or concerns. Sincerely, 14V141 - Cooper Evans Member of Congress CE/mtm a�7 JIM O'KANE STATE REPRESENTATIVE Find District P1.vK 15161 TJI•Z21 HOME ADDRESS 1e15R,be .5lrte1 SIOUX CITY. IOWA 511m M...171z1RS, January 20, 1986 Pause of �Hepresentntbjes STATEOPIOWA Sn"4-Fir8t Ceaera1 Aseemhly SPATE HOUSE ,Da Points, Anion 50319 Mr. Douglas W. Boothroy Director Housing a Inspection Services City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Dear Mr. Boothroy, COMMITTEES "I Government Choir Admini"m Rule Rnkw. Vin Choir Natural Raouna Rulm and Administration Ws" and Mans Thank you for your letter of December 17th regarding the decriminalization of municipal code violations and the establish- ment.of a municipal infraction citation process. The attached information was very interesting. I have requested that the Legislative Service Bureau draft a study bill for consideration by the House Local Government Committee on this subject. Its form will probably be very similar to the legislation being drafted for Senator Small. I will keep you informed of any progress we make in the House on this issue. Thank you for bringing this issue to my attention. Very truly yours, J O'Kane tate Rbpresentative JO/ao aa8 ........... ........ NEWS DIGEST JANUARY Mill'.' CITIZENS ACTION CENTER by Nana L. Cornwell, CMC City Secretary, Waco, Texas With citiesgrowing largerand more complex, ilbecomes increasingly more difficult for citizens to know what city official or department to call with their requests for information, service or complaints. After a frustrating round of calling the wrong departments, the irritated citizen will either give up or start calling the mayor, council or manager. The City of Waco has approxi- mately 1200 employees in 45 departments and divi- sions. Ending the run around is what the Action Center is all about. In City Secretary's office The Action Center was established at the request of the present city council. It opened May 15,1985, and is located in city hall as a division ofthe City Secretary's Office. The Action Center was placed in the City Secretary's office since our office would be neutral in that we work for the city council rather than for the city manager, and we could act as a liaison between the citizens and staff. This is unique since our study revealed that action centers in Texas are generally Placed under the jurisdiction of the city manager in a special department or in the public information office. In NewYork, the action centeris operated bythe mayor's staff. The Action Center is designed to handle multiple requests or complaints. Suppose someone has a health, zoning, street and water complaint. Instead of the citizen trying to figure out who handles what and calling each in turn, the person can just call the Action Center. The Action Center is open Monday through Friday from 8:00 a.m. to 5:00 p.m. with two operators on duty. There is a direct line number and an extension line off the city switchboard for persons who call city hall. Details on Calls When no Immediate visible action is taken, the citi. zen can be left with the impression that the request has been forgotten. The Action Center makes sure the appropriate department is notified within four hours (immediately if the request is of an emergency nature). The department then notifies the employee in the field, action is taken, and the citizen is contacted by phone, if Possible. The department then responds to the Action Center in writing. The Action Center sends a letter and a postage -paid evaluation card to the citizen so the citizen can evaluate the response by the department as well as that of the Action Center. When the evalua- tion is negative, the citizen can be recontacted to clear up misunderstandings orto initiate furtheraction. When the response is positive, these comments serve as a morale booster to all who are accustomed to getting the gripes but seldom receive the thanks for a job well done. Rating cards also are a management information tool in the evaluation of departments. Since this infor. mation is computerized, we can identity areas of citi. zen concern, emerging trends, and troublesome hot Spots. If they so desire, council and management may then initiate changes, which could affect resource alto. cation and staffing. Publicity Newspapers have published five articles about the Action Center. We enclosed peel -off labels in city mail. (Continued on page 6) M ......... !,... I......... ....t.....,- __.A.... ,... 6 CENTER (Con'd) outs with the Action Center number and emergency numbers for police and fire. Staff in my office is avail- able to speak to civic organizations about the Center. Coe rCE JQIemeto'e, ACT ON TN ER 7sss7ss FOr Emergentles YOUR CITY OF WACO POIICa 752.5555 ACTION CENTER NUMBER Flro 752.6511 FOR/7Y SERVICES ANO PEEL r 1 OFF I NFORMA RMA7IO/ON city or W¢o ACTION CENTER �P 7ss•rss „1„r,� \ •"+ For EmergtncMl //I/}.� ,• ~, V • Poliq 752.5555 :,- `iki.7 `""';� Fln 752.6511 itis � Open Records and Confidentiality A big question in starting this program was whether or not we should take anonymous calls. In their delib- erations, the council first felt that a caller should be willing to share personal information if the complaint or request was legitimate. A decision was made to take all calls, advising callers that their name was not necessary, but if they would share their name and address, we could write them explaining what the department had done as well as send them an evalua- tion card. They are advised that the information is part of the open record. If a citizen requests specific information concerning a call we have received, such as "Who turned me in?", we then will ask them to fill out a written request which will be reviewed by the City Attorney on a case-by-case basis. Thus far we have not had a problem in this area. In our reporting system to the council and press, only statistics and subjects are used rather than names and detailed information, thereby protecting our citizens and avoiding "neighborhood squabbles:' As is the casein most cities, the Action Center is not the only office responding to such requests. The City of Waco does have a public Information officer. The line departments all receive complaints directly and have separate extensions in city hall, and departments such as tax, water, parks and health have separate numbers for specific services. The Action Center Is not a substi- tute for these existing mechanisms, but a complement. Tracking Response Time The Action Center is computerized to provide faster service for citizens. We have a breakdown of com- plaints by department and council district, and are able to track departmental response time with an investiga- tion data form. Departments respond within three days to the Action Center. if there is going to be a delay In response time, it is indicated on the data form so we will know the status of a complaint at all times until the citizen is satisfied. The bottom line is —will more citizens receive satis- faction because the Action Center exists? I believe they will. Our monthly report is being prepared in about three hours using an IBM PC. Each council member in the five single-memberdislricts receives a report reflecting: total calls, type (using codes), call status including number needing follow-up, number completed, and numberwhere the departments have not responded to the Action Center. Equipment and Supplies The City of Waco -Citizens Action Center computer system has been installed on a stand-alone IBM PC microcomputer. The computer has sufficient on-line storage capacity to store one year's history of calls. The computer system has been designed to perform these main functions: 1. Record citizen action calls. 2. Track all calls taken. 3. Produce information and response forms for each responding department. 4. Provide immediate information on all calls entered. 5. Produce summary analysis and management re- ports on a scheduled or unscheduled basis. We have gathered all the written information possi- ble to assist ouroperators: phone books, citydirectories, street guides and maps, council district maps, code of ordinances, and specific information furnished by other departments (i.e., how to get a garage sale permit). This relieves staff members in other departments from taking repetitive calls. The written information elimi- nates erroneous information being relayed. Procedures Manual Used Our operators have a telephone procedures manual which reflects the desires of the council and staff, as well as correct telephone etiquette. It also assists in training new employees. Three employees are being cross -trained between the City Secretary's Office and the Action Center. We plan to rotate them every six months, and feel this will give us a smooth operation. Each department was requested to make a list of activities to which we assigned action code numbers. Each department has a series of numbers (i.e. 500 series are codes for public works) allowing ease in memorizing the series of numbers by our operators. These codes are also used in our reporting system to council staff. Is It Worth It? Is it worth the funds it takes? The answer is ultimately a function of such tangible things as the volume and velocity of the complaints the city receives, and intangi- ble factors such as the increased access for citizens to their city government. We rece ved 11206 calls in the first four months that the Action Center was open. About 509/16 of our calls are for information and the other 50% are for service or complaints which we refer to as action calls. A good public information program should reduce the number of calls to an action center. A large number of informa- tion calls may mean the city should step up its public information effort. The evaluation cards have been very favorable and supportive. Our councilwoman, when asked her opin- ion of the Action Center, responded: "The citizens believe it to be an asset to the city, and it is the consen- sus of the council that the Action Center is an asset to the citizens and management of the city." VT _................... I .................. ..... . {' SITE WALL STREET JOURNAL TUESDAY, JANUARY 21, 1986 Tax -Overhaul Bill Stalls Municipals Buyers Shy Away, Fearing Issues' Taxability By Ewfir Jaml9aw swfxTo.rerefxlo vv shun Jov.0 The tax -overhaul bill. which helped spur a record flurry of municipal bond offerines last year. has slowed the flow of 19*vin. tape tax-exempt bonds to barely a tackle. Many major Institutional Investors are refusing to buy 1986 tax-exempt bonds. and iome Wall Stmt firms have declined In bid for such Limits. The reason: a growing uneasiness over the Implications of the In - overhaul bill now in the Senate. Known as H.R. 3818, the bill passed the House with a Jan. I effective date—which. in effect, requires Issuers to abide by the provisions of the bili even though It Isn't yet law. The Senate Finance Committee is about to take up tax overhaul, and It's un- clear what changes the committee may make to the House measure. But confusion over the requirements In the House bill is causing tumefi In the primary market for tax-exempt bonds, some issuers and under• writers say. "The dismptloos are very pervasive. broad-based and far-reaching;' says Ed* ward T. Swanton. managing director of na- tional municipal underwriting at Merrill Lynch & Co. "It's causing distortions in bidding, a high degree of uncertainty, and a great deal o1 negativism." Some issues have been pulled from the market because of confusion over the Im- plications of the tax -overhaul legislation. Concern Over Noncompliance The- major concern for underwriters and Investors Is the continued tax -exemp- tion of bads Issued urder the measure. Under the proposed bill, tax-exempt bonds• would become taxable retroactively to the date of Issue 11 the Issuer falls at any time to abide by Its provisions. "If the Issuer falls into noncompliance for one reason or another and the bonds are declared -taxa- ble. the injured party Is the Investor. That's absolutely, egregiously wrong:, Mr. Swanton says. Under the bill. an Issuer could be In noncompliance if 51, of the bond proceeds aren't spent within 3a days. This require- ment virtually bars Georgia from the tax- exempt market, because the state constitu- tion requires proceeds of an Issue to be in hand before any contracts may be signed. Other states and municipalities may also be affected, bui It Isn't clear how many. Another provision of the bill requires municipalities to keep a strict accounting of profits from arbitrage—using proceeds of one Issue to Invest In a higher -yielding security. A percentage of those profits must be paid to the Internal Revenue Serv- Ice on a regular schedule. Failure to meet this requirement at any time during the life of an issue could result in the loss of tax-exempt status retroactive to the date of Issue. 'Confusion Reigns' One Investment banker said 90% of his firm's institutional customers have said they won't buy Hun bads, alto O00m have played down the disruption ealaMb H.R. 383L "Confusion reigns, obT the ket Is not at a hall;' said Gary O'Hagan. A vice presldeht in municipal trading at saw mon Broilers Inc. "Some customers have shown some reluctance, some haven't" One institutional Investor that. has adopted a tough stance on HIM municlpas Is T: Rowe Price Associates Inc., a Balli - more -based sponsor of mutual funds. "Our policy, which Is subject to change, Is to purchase no municipal bonds Issued after Jan. 1 unless we can clearly define that they are classified as governmental Issues or essential -purpose bonds, and that the Is. suer will covenant that they will abide by the provsfas of HIL 30." said Peter , J. Gordan, of of the firm's Tax - Free Pundit. :. . A further problem for mutual funds 1s a provision in the bill that makes some non• governmental municipal bonds subject to an alternative minimum tax. Including such bonds in a fund portfolio would re• duce the yield for investors who have to pay the tax• an&create accounting head- aches for fund managers, so "mutual funds will want to keep their dividends pure;' Mr. Gordon said. The tact that retail customers are less likely than bstlluilorul buyers to under- stand the Implications of the bill has some underwriters nervous about their liability if they sell bards that are later found to be in noncompliance. . „There's no guarantee that solve sales- man isn't Wing in sell room and pop . some bonds without ramifications of the tax bill," explaining sald Robert S. Edwards, first vice president In the ne- gotiated underwriting group at Smith Bar. ney, Harris Upham & Co. "We don't want any potential legal liability—that's our con, cem: Disclosure of Implications In response. Smith Barney had been fig- uring a "risk factor" into Its competitive bids. "In effect• taking ourselves out of the market;' Mr. Edsvar s said. The firm recently established guidelines calling for all sales documents to fully disclose the Implications of the tax bill and to be avail- able to all syndicate members. It also pro- vided for an underwriter's counsel to be re- tained to review the implications of the bill for all Issues Smith Barney underwrites. both competitive and negotiated. The difficulties in making sure bond is- sues fulfill the requirements of the bill are "Mind-boggling;' sold Mr. Swanton of Merrill Lynch. "I, as in underwriter. have to concern myself with the proceeds and how they will be spent. I have to determine whetber bond counsel Is nationally reeog• nized and I have to go over the opinion with a fine•toothed comb. Then I have to try to figure out how to sell It and to whom." But the' legal opinions that underwrit- erslook to for assurance that an Issue L In compliance often aren't as clear-cut as they'd like. One prominent New York law firm. Mudge Raw Go" Alexander & Ferdaa, Mudes In the a m., statement that accoiii n7 s the boed�ie a waif to buyers Nra at "no one n predict what s going to happen to the bill In the Senate." said Robert E. Ferdon• senior partner. •'We can't express an opinion as to what the future may hold." Phoentnt. Ariz., Issue Wall Stmt's concern over disclosure prompted the city of Phoenix, Ariz.. a high -rated Issuer, to withdraw a 872.8 mil- lion tax-exempt lease,llnanft lad week after getting only one bid. The problem: The city didn't Include In Its disclosure document a formal opinion that It would meet the requirements of H.R. 3838, al- though underwriters were awed that a supplemental opinion addressing these re- quirements would be wind to them. That wire was sent, but it didn't help. "The Stmt Is very nervous about the bill;' said Kevin Keogh. Phoenix's assir tat Mance director. 'Mey were very• very nervous that what.we put on the wire wasn't sufficient to allay their concerns." 11141041W Martel Poesfble And although the supply of 1985 bonds still remains bo tutlful, some underwriters believe that the uncertainty surrounding the few 1986 issues that have come to mar- ket arket could eventually lead to a "two-tier" market, with bonds Issued after Jan. 1 trading at higher yields to offset the risks posed by the uncertainty of H.IL 3838. 'Institutions have told me that In order to buy a 1996 bond. In light of H.R. 3839. they want 50 hosts points more In yield:' Mr. Swanton said. IA basis point Is one- hundredth of a percentage point of Inter- est.) Even favored Issuers have been greeted with uncertainty, by underwriters, be said. A recent 550 million Issue by the los Ange- les Department of Water and Power re- ceived bids from 8%. to 8.625%. The normal range would be from 8.01%. to 8.051., he said. "I can't remember that big of a spread on that Issuer." a3o ,C�sLt7u.,(�J /ai�P6 IOWA CITY, IOWA FINANCING PLAN FOR WASTEWATER SYSTEM IMPROVEMENTS k' I i S ,C�sLt7u.,(�J /ai�P6 IOWA CITY, IOWA FINANCING PLAN FOR WASTEWATER SYSTEM IMPROVEMENTS k' �tti��tt.!ttt.\...........at'!vwwM'.Y.vA.vl::::'at'.ww."..ww.�w.l�l..wvv�..w..v'�.....'1...1'.wtv/.w�ttNw George K Baum &- Company INVEST?2ETTT BANHEnS N[N9[R OT SUITE 28M H[w TOOK STOCK [[CHANGE. INC. Sil SEVENTEENTH STREET NIGVLST STOCK [ECHANGLDENVER. COLORADO 90293 T[l[eHOML I301I 898.8028 January 15, 1986 Mayor William J. Ambrisco City of Iowa City Civic Center 410 E. Washington Street Iowa City, Iowa Dear Mayor Ambrisco: We are pleased to submit this Financing Plan for the expansion of the Wastewater Collection and Treatment Facilities serving the City of Iowa City. Our contract called for a review of the Metcalf & Eddy Project Team financial alternatives report, for examination of the full range of options available to the City for financing and the presentation of a plan for financing. This report attempts to accomplish each of these objectives. We look forward to meeting with you and to presenting this report to the Special Committee and the City Council. S' ely, CURTIS R. JENSEN STEPHEN F. BUTTERFIELD George K. Baum & Company Boettcher & Company a3/ 3 A C K N O W L E D G E M E N T S We wish to thank the staff and consultants to Iowa City for assisting us in assembling the background information contained in this plan. We are especially grateful to the following:' Neal G. Berlin - City Manager Rosemary Vitosh - Director of Finance Charles Schmadeke - Director of Public Works Donald Schmeiser - Director of Planning & Program Development Kenneth Haynie - Bond Counsel Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee IOWA CITY, IOWA City Council Mayor.... William J. Ambrisco Mayor Pro Tem .... Kate Dickson Ernest V. Zuber, Jr. Darrel Courtney John McDonald George Strait Larry Baker :ity Manager.... Neal G. Berlin lance Manager.... Rosemary Vitosh Works Director.... Charles Schmadeke FINANCING PLAN FOR WASTEWATER SYSTEM IMPROVEMENTS PREPARED BY: GEORGE K. BAUM & COMPANY DENVER, COLORADO AND BOETTCHER & COMPANY PHOENIX, ARIZONA January 1986 I � I i ka M I i ��µlN aaaaaa .r vnv\.... a a v. a.. a aa...............v vn...�.r..1.v.v..v.vµ ...�. CITY OF IOWA CITY WASTEWATER SYSTEM IMPROV TABLE OF CONTENTS Section PAGE IOWA CITY, IOWA BACKGROUND I 1 INTRODUCTION CONCLUSIONS II 3 Comparison of Revenue Increases Needed Recommendations FINANCING ALTERNATIVES STUDIED III 9 1. Municipal Debt a. Revenue Bonds b. General Obligation Bonds c. Types of Revenue and General Obligation Bonds 1. Fixed Rate - Long Term 2. Fixed Rate - Short Term 3. Variable Rate 4. Zero Coupon Bond S. Convertible Capital 6. Lease/Purchase Financing 7. Privatization APPLICATION 0£ FINANCIAL ALTERNATIVES IV 12 Benefits & Disadvantages of: Revenue Bonds General Obligation Bonds Fixed Rate - Long Term Bonds Fixed Rate - Short Term Bonds Variable Rate - Demand Notes Zero Coupon Bonds Convertible Capital Appreciation Bonds Lease Purchase Privatization METCALF & EDDY FINANCIAL ANALYSIS REPORT V 15 PRIVATIZATION VI 76 Sample Cash Flow Statement, Tax Benefits of Private Owner of a Project, "Privatization" IOWA CITY — CURRENTLY VIZ 19 Current Wastewater System, Proforma with no Change in Services, System Expenses Rise @ 68 Per Year, New Hookups Increase Revenues @1.18 Per Year Current Wastewater System Assumes 68 Annual Increase in Expenses and 1.18 Growth Rate Plus Annual Rate Increase to Cover all Expenses I COMPARATIVE SEWER USER CHARGES VIII 23 a3� I CITY OF IOWA CITY WASTEWATER SYSTEM IMPROVEMENTS TABLES OF CONTENTS SELECTED CASH FLOWS Closing Section Assumptions Used in Bonds and Revenues Proforma Flow of Funds & Earnings, Revenue Bond Issue New Wastewater System with all Improvements, Proforma for New Revenues Needed, City Revenue Bond'Issue Proforma Flow of Funds & Earnings, Zero Coupon & Revenue Bonds New Wastewater System with all Improvements, Proforma for new Revenues Needed, Zero Coupon & Revenue Bonds Proforma Flow of Funds & Earnings, Private Owner/Operator, Fixed Rate Bond Issue Proforma Annual Rate Increases Needed to Meet Payments to Private Company - Fixed Rate Bonds Proforma Flow of Funds & Earnings, Private Owner/Operator, Floating Rate Bonds Proforma Annual Rate Increases Needed to Meet Payments to Private Company - Floating Rate Bonds PAGE' 25 11 MSN \vvlaav ........... IOWA CITY, IOWA FINANCING PLAN FOR WASTEWATER SYSTEM IMPROVEMENTS Background Iowa City has long recognized the need for new wastewater transportation and treatment facilities. The City's 1983 comprehensive report lists five "Major Findings". Each of them is directly tied to the need for new and improved wastewater facilities. This same report refers to the need for the Capital Improvement Programming planned for in the 111979 Sewer Study". The City hired a firm (Veenstra & Kimm, Inc.) to complete drawings for construction of parts of the system. It has since hired a new Project Team to review this work and suggest alternatives. The City at one point temporarily suspended new building in one area due to lack of adequate treatment. Reading the 1983 Comprehensive Plan and the 1985 Zuchelli, Hunter & Associates population projections, one is struck by the need to expand the present facilities and to provide a means to stop the storm water flooding that regularly causes an overflow of untreated sewage into the river. Iowa City is now a city of approximately 53,500 persons living in 21,100 households within city boundaries that include 13,864 acres. Projections show annualized city population growth at 1.1% compounded annually and new household formation at 2.2% compounded annually for the near future. Fewer persons per household are causing more housing growth than the population - would indicate. This is an important planning consideration. The 1983 Comprehensive Plan states that only 5.8% (808 acres) of the City's acres are "developable" today without major wastewater system improvements. The wastewater system improvements being suggested currently would open up 1,949 new acres for development within the current city boundaries. The continued growth of homes and businesses within the City rather than outside of its boundaries (but using City services) depends on the project under study. The growth will take place, the only question is where? Iowa City is an anomaly in the Midwest. It is a medium sized city with very low unemployment, a very well educated labor force and the social amenities of a major university. Its continued growth and economic strength cause it to be envied by many. The major missing link to sound development and continued growth is an adequate wastewater system. -1- Introduction In June of 1984, the City selected a team of firms headed by Metcalf and Eddy to prepare a technical report of all alternatives available to the City for construction of wastewater system improvements. This project team (also consisting of Flour Transportation and Infrastructure and Arthur Young & Company) were also to prepare a report on construction alternatives to reduce costs and financial alternatives including Privatization. The engineering/construction phase of• this report was given to Council in September, 1985 and Alternative N11 was recommended. Council adopted the recommendation. Alternative N11 includes a University Heights Sewer, system extension, a new northern portion of the Southeast Interceptor, alterations and expansion of the existing sewage treatment plant, building a new Sand Road sewage treatment plant, placing sewers for and around the southeast Interceptor and construction of a new lift station. The total construction cost is estimated to be $33,911,000. Construction time is estimated to be eighteen months after final engineering is complete. Metcalf & Eddy submitted a separate Financial Analysis for Alternative Nil in November, 1985 and an update recently. our firms were hired from among several firms who made proposals to the City in June and July of 1985. Most of our early effort was directed at acquiring information and background on Iowa City and the Project. This financing plan and the alternatives presented are meant to be an indepth analysis of all alternatives including the ones presented in the Metcalf & Eddy report. Each alternative studied was carried in a proforma projection to the final form of an actual financing. our method was to introduce all known factors such as construction costs, time, etc., and a reasonable market estimate of all other costs and experiences. We then built a mathematical model of the project and used this to test various alternatives. i Our financing plan does not include all of the various alternatives we examined since some were clearly not viable. Our guiding principal was to reduce the impact on sewer user fees and tap fees to the lowest possible level, and to maintain a consistently high level of project income support features to use in assuring a high bond credit rating and therefore the lowest possible interest rates. We have also done considerable research on the various fees and charges for sewer services imposed by Iowa City and similar rates of surrounding cities. We have linked our financial alternatives and selections to.the fees necessary to support the financing. This will give the Council, Staff and citizens the full knowledge of the impact of the project in current and future years. -2- d3/ n V-w:..:.......t.....,:............ t,,.......,,....,.:::_........ ....,.....o.....,,...:...Y........ ...........+.....- ....... CONCLUSIONS There are several ways to rank each type of financing examined. Among these are: 1. The amount of the increases in sewer user rates in the immediate future. 2. The total amount the rates must be raised over the years of the bond issue. 3. The desire to own and operate the facilities versus allow a private owner/operator. 4. The average annual payment necessary to pay debt service or capital charges. 5. Current lower payments versus risk of future increases. We have displayed key parts of each type of financing to examine each based on the criteria: Type of Financing Rate Increases Necessary Final Year's Revenues NeededOwnership public or Private Average Annual Payment Fixed or Floating Rate 110% then $9,193,167 Public $3,873,000 Fixed Revenue Bond 30% in 2yrs. Long Term & 14% in lyr. Revenue 85% then $16,285,786 Public $1,880,000 Fixed Bond & 5.838 for plus Zero Coupon early Zero Coupon every yr. call Bonds -Case wl 1208 then $ 8,387,009 Public $1,880,000 Fixed Revenue Bond & 98.7$ in plus Zero Coupon early Zero Coupon 7 yrs. call Bonds -Case $2 Private Owner 100% then $ 8,489,210 Private $3,114,000 Fixed /operator 16% in 4yrs. Fixed Rate & 15% in lyr. $ 7,836,,578 Private $2,450,000 Floating Private Owner 608 then /Operator 26% in 2yrs. Floating Rate & 14% in 1 yr. -3- o?3L 0 -4- .23/, COMPARISON OF REVENUES NEEDED FOR EACH FINANCING STRUCTURE USED IN THE STUDY. THE FIRST YEAR IS RATED 100 AND ALL OTHER YEARS ARE TAKEN AS AN INCREASE FROM THE BASE YEAR. FISCAL CITY REV ZERO'S ZERO'S PRIVATE PRIVATE YEAR BONDS CASE i CASE t FIXED FLOATING ONE TWO RATE RATE 1986 100 100 100 100 100 1987 211 186 221 201 161 1988 213 199 223 203 163 1989 215 212 225 206 165 1990 282 227 228 208 209 1991 324 242 230 243 241' 1992 347 259 232 283 256 1993 361 277 235 305 271 1994 375 296 468 321 282 1995 387 316 473 337 291 1996 394 337 478 344 300 1997 406 360 483 355 309 1998 410 385 488 363 316 1999 422 411 492 374 322 2000 431 440 497 385 336 346 2001 440 470 502 507 393 406 357 2002 453 466 502 536 512 418 368 2003 2004 476 573 518 431 379 2005 490 612 523 440 391 2006 505 654 528 454 407 2007 520 699 533 468 424 2008 535 746 539 487 441 2009 551 797 544 502 455 469 2010 568 852 549 555 518 539 488 2011 2012 585 602 910 972 560 561 513 2013 627 1.039 566 579 534 534 2014 627 1,110 572 579 -4- .23/, i A 0 The chart shows that the ranking on each of the criteria are as follows: :Privatization- 1 1 Private 1 Floating Floating Rate Privatization, floating rate is clearly the winner on charges and rate increases. It is open to question on public versus private ownership. It is much more vulnerable on risk of floating rate. Its lower overall costs may offset much of future years risks. Privatization, fixed rate occupies the middle ground on revenue issues and may be challenged only on the public versus private question, its final cost to repurchase the plant, and its vulnerability to changes in federal law. The Revenue Bond has the advantage of being a known financial structure that may have acceptable rate increases. The Zero Coupon and Revenue bond mixture offers a choice to the City. If revenues are raised slowly (as in Case N1) the final charges are higher. If revenues are raised quickly (as in Case N2) the final revenues are much lower. This illustrates the control given to the City in this type of financing. A range of rate changes can be used to either pay the Zero Coupon Bonds off early, or delay the repayment. A mandatory sinking fund with minimum deposits must be started immediately and the sinking fund must have the ability to pay off the bonds without huge increases in the last few years. The combination of Convertible Capital Appreciation Bonds with the Zero Coupon Bonds will give the City a known schedule for interest payment dates of some of the issue. -5- Smallest Lowest Private or Average Fixed Rate Final Public Annual or Increase Year ownership Payment Floating Rate Revenue Bond 4 4 Public 3 Fixed Zero Coupon #1 2 5 Public low/high Fixed Zero Coupon $2 5 2 Public low/high Fixed Privatization- 3 3 Private 2 Fixed Fixed Rate :Privatization- 1 1 Private 1 Floating Floating Rate Privatization, floating rate is clearly the winner on charges and rate increases. It is open to question on public versus private ownership. It is much more vulnerable on risk of floating rate. Its lower overall costs may offset much of future years risks. Privatization, fixed rate occupies the middle ground on revenue issues and may be challenged only on the public versus private question, its final cost to repurchase the plant, and its vulnerability to changes in federal law. The Revenue Bond has the advantage of being a known financial structure that may have acceptable rate increases. The Zero Coupon and Revenue bond mixture offers a choice to the City. If revenues are raised slowly (as in Case N1) the final charges are higher. If revenues are raised quickly (as in Case N2) the final revenues are much lower. This illustrates the control given to the City in this type of financing. A range of rate changes can be used to either pay the Zero Coupon Bonds off early, or delay the repayment. A mandatory sinking fund with minimum deposits must be started immediately and the sinking fund must have the ability to pay off the bonds without huge increases in the last few years. The combination of Convertible Capital Appreciation Bonds with the Zero Coupon Bonds will give the City a known schedule for interest payment dates of some of the issue. -5- «<................................... ......... ,..,. Recommendations Our recommendation depends upon the City's desire to move quickly versus more slowly. If the City wishes to move quickly, we recommend the use of a mixture of long term and zero coupon bonds as a City revenue band issue. The mixture used in our study was 57% fixed rate long term revenue bonds and 43% fixed rate, long term Zero Coupon Bonds about half of which would be convertibles to pay interest at known dates in the future. We have shown two cases of use of Zero Coupon bonds. one uses quick rise in sewer user charges to keep long term raises to a minimum. The other has a low raise in current sewer user charges but has a long term high rate needed. The advantage of this type of financing is that either extreme or some modification in between may be used. We recommend that the maximum tolerable increase in the near-term be used and increases be used earlier rather than later. . The current municipal bond market has very attractive rates, the market now is excellent. Substantial savings in annual payments can be realized, but only with speed. Changes in federal law, now pending in Congress have had a very negative effect on new bond issues and this lack of supply has driven rates down. As noted previously, these changes will directly impact this bond issue due to the changes being treated as law by most bond counsel. If the City wishes to move more slowly, we recommend issuing a request for proposals from private companies to be owner/operator of part or all of the facilities. We believe you should examine each for their qualifications but request specific information.on the following. 1. The impact of pending change in federal tax law (which will not be resolved until August) on: a. tax benefits used to lower costs. b. ability to use tax exempt Industrial Development Bonds for debt. Specifically, it would be important to understand the implications on 'any proposed contract with the City. How much must be left open for determination at a later date. 2. The amount of money that would be gained by the City from each of the following private owner alternatives: a. Buy the existing plant and build, own and operate all new facilities. b. Build, own and operate all but the existing plant and improvements. C. Buy the existing plant and build own and operate the new plant together with the existing plant and improvements. d. Build and operate only the new plant. 6 .?3/ 3. would floating versus fixed rate financing be a pass through or fixed charge? 4. How much credit support must the City supply and in what form. Must all payments have a coverage ratio? S. How will future expansions of the system be handled? 6. How will operating costs be contracted? 7: How will the final value (buyback) of the facilities be determined. Will the*City have the right to renew the contract at a lesser charge? For how long? Each of these questions (and many more) would be meaningful in determining to proceed publicly or privately. Proposed changes in the federal tax law could eliminate the use of tax exempt bonds and eliminate many tax advantages. we recommend the use of Bond Anticipation Notes (-BAN's) only if the City chooses to move more slowly in the decision on final financing and at the same time, move the project through engineering and perhaps construction. A private owner/operator can be chosen "after the fact" if necessary. The use of BAN's can be cost effective, but the risk of higher rates at the time of takeout long term financing is a potential problem. we recommend that the rate increases which will be necessary, no matter the form of financing, be split between the "minimum charge: and the current charge per 100 cubic feet above 400 cubic feet per month. Currently the system has 13,500 users. The minimum charge accounts for about 27% of total revenues, the charge per cubic foot accounts for most of the remainder. Thus, a 100% increase in the minimum charge will net only a 27% increase in total revenues, whereas a 100% increase in the water charge per cubic foot will result in a 73% increase in revenues. We recommend proportionate increases in each rate. if the faster approach using City revenue bonds and Zero Coupon Bonds is chosen the final decision on rate increases needed should be adopted in general form currently. The ability to either call or delay the Zero Coupon Bonds will allow for flexibility in future rate increase decisions. The convertible Capital Appreciation Bonds are fixed as to the interest payment date, and they must be phased into the overall known rate increases. -7- a3i The bond payment schedules and debt service coverage ratios which are the basis for our conclusions use all excess revenues from earlier years together with earnings on those revenues to make later years payments. These excess funds are also used in the calculation of debt service coverage ratios. As a result, if this form of financing is used, these funds will have to be escrowed and used only for debt service and extraordinary items of repair. As explained earlier. the use of Zero Coupon Bonds normally requires an invested sinking fund for later retirement of the bonds. The coverage ratio required by credit rating agencies has two principal purposes: 1.) to protect against unknown events such as major damage, failure, and force majure, and 2.) to provide a known source of revenues to repair and replace the facilities in the futdre. Sewer'and plant systems have major types of failures such as pump stations, the motor gears etc, in the plant and underground pipe breakage. This underground breakage, when it happens as a part of aging of the system, often goes undetected until it occurs in many locations. Part of the improvements needed at the existing and new treatment plant that were factored into the Metcalf & Eddy report are due to infiltration of ground water through these cracks and breaks. We recommend that Iowa City adopt a policy of establishing a Extraordinary Repair and Replacement Fund. The best way to determine the amount to be set aside is to set an "economic life" on each different type of component (eg. pipes - 20 years, pumps - l0years, etc.). The amount of money necessary (plus earnings) to repair or replace these components in the future will then be in the fund and will not cause the problems that Iowa City faces currently (raise bills to fix one item this year or continue to delay repairs). 0?3/ FINANCING ALTERNATIVES STUDIED We have listed below a range of broad areas we explored in connection with this financing. Each contains a brief explanation. Municipal Debt A. Revenue Bonds - Only the income of the system is pledged to support the bond issue. This income is typically from monthly sewer user charges, "tap" or connection fees for new buildings served, and/or special one time assessments placed on property within the service area. Revenue bonds typically carry a debt service coverage ratio requirement of at least 1.25 which mandates collections above the level needed to repay bonds. Iowa law makes service charges for sewer, a'direct lien on property: B. General obligation ds - These bonds are secured by a pledge of all City property and local option taxes. The bonds can carry a higher credit rating due to a wider distribution of sources of repayment. The City may use the sewer charges discussed in "Revenue Bonds" as the source of repayment, but the pledge is a wider pledge on revenue sources. Certain coverage requirements are relaxed or suspended due to the general pledge on all revenues. Iowa law does not require a vote on "Essential Corporate Purpose" projects such as wastewater treatment facilities. A limit of 5% of assessed valuation is placed on the total of all General Obligations. The current limit is $62,407,607. The current General Obligation debt of the City is approximately $15,235,000. C. Types of Revenue and General Obligation Bonds - 1. Fixed Rate - Lona Term - This is the traditional bond used in financing of long term projects such as sewer system improvements. The term is usually 20 to 30 years, the interest rates and payments are known at the time of issue. The bond normally covers both the construction period and the long term amortization of the project. An additional limit of twenty years is the maximum maturity of General obligation Bonds. 2. Fixed Rate - Short Term - These are "Engineering/ Construction Bonds" used to finance the short term needs of or engineering and construction. They are normally taken out by a longer term bond at the finish of construction, thus the name Bond Anticipation Notes (BAN'S). They allow a project to move into a more known cost, delay decisions on final finance structures, and can provide for fast tracj(design/build structures by ordering long lead time items while still designing the project -9- a3� 11t... t......\.............. ........... 3. Variable Rate - Demand Bonds - These bonds are long term, and carry rates which vary monthly, but the bond holder may demand that the City repurchase them with short notice (typically 7 days) and must then be sold to another bond holder. This is a very widely used type of bond today with a large market. Iowa law does not allow cities to use Letters of Credit which are necessary in this form of financing, therefore it may only be used by a private company which may build and own the plant. 4. Zero Coupon Bonds (or Capital Appreciation Bonds) - These are long term, fixed rate bonds which pay no interest to the bondholder during the term of the bond and all principal and interest on redemption. They are typically issued at a deep discount from par and pay the par value on redemption. They carry a slightly higher yield than a typical long term bond which pays interest semiannually. The normal requirement with these bonds is a mandatory sinking fund and an agreed rate increase to match the required sinking fund deposits. 5. Convertible Capital Appreciation Bonds - These are essentially Zero Coupon Bonds which begin paying interest at a predetermined point in the future, but before they mature. These bonds are used to push payments further into the future than might be normal, but begin paying interest earlier to reduce perceived risks and lessen interest rate penalties. 6. Lease/Purchase Financing - This is a method of using a general pledge of revenues. A lease/ purchase obligation necessarily has an annual right of the City to not appropriate the funds for payment of the debt and to return the property. This creates a "lease" which may be nullified and a "purchase" if carried to final payment. The buyer of this Certificate of Participation (rather than Bond Holder) is assured that the City intends to pay but must, for local law restrictions, have the written right to discontinue payments. These instruments typically carry a credit rating one step below a similar bond debt and therefore are more expensive. They do not offer any tax advantages to the holder (such as depreciation, etc.) except the interest income is tax exempt. -10- a3� 0 i .. a.....a......urw..r i 7. Privatization - This is a recent form of financing which takes advantage of certain private sector tax benefits and design/build efficiencies, and the use of tax exempt Industrial Development Bonds. A private company is allowed to design, build, own and operate the facilities. They use Industrial Development Bonds issued by the City or County as their debt instrument. They use the tax advantages of ownership (Investment Tax Credits, depreciation, interest carrying costs) to reduce taxes and pass some or all of this tax reduction on to the City in the form of equity invested in the project. The combination of equity and tax exempt debt makes the overall payments needed from the City significantly lower than a similar bond issue. The total savings to a City can be 20-308 of the payments they would have made on bonds. APPLICATION OF FINANCIAL ALTERNATIVES we have examined each of the financial alternatives for the benefits and disadvantages they offer to the Project. We have summarized our general impressions below. i Revenue Bonds Benefits: j o Traditional type used, comfortable to the bond buyers. i o Pledge of revenues of a known, operating system insures that the users pay for the benefits. o Can use tap fees5everal assessmentst,esources developer( charges, fees, standby charges, etc.) o Can have future users "pay as you go". o A direct lien on property through the service charge. i Disadvantages: o Limited revenues may not draw highest ratings. o Requires debt service coverage ratios of at least 1.25 and therefore higher rates must be imposed. o Can require large increases in rates to cover debt service ratios. General Obligation Bonds i Benefits: o Lowest possible interest rates o Can use revenues other than sewer revenues if necessary to make payments. Disadvantages: o Can create too many debt burdens without identified revenues. 0 Can cause owering of ty o Limitation lon overall maximum bondtermi(20dratings. yearsj o Limitation on overall General Obligation debt burden (5% of assessed value). Fixed _Rate - Logg Term Bonds Benefits: o Known payments for entire bond life - 0 Easier to use for longest term issues - 0 Easier to "rate" due to known debt service schedule. Disadvantages: o Higher current rates than floating rate and short.term bonds. -12- 023/ Vh..:tia:�vvatv.!.... \....a...v.:...!.+.«..w�..::�: ♦'. r���..n����A_..�.��..r..v�...�..v....... r.�.v.vn.vrwrtv�� i Fixed Rate - short Term Bonds I Benefits: c Allows project funding without a final, known project cost. o Allows delay of final financing structure decision. Ii o Allows interest rate markets to move favorably. o• Allows all engineering costs to be paid by bond issue as incurred. I� o Better interest rates on the short term issue. j Disadvantages: f o Creates double cost of bond issues for the short and long term. o Markets may move the wrong way and cause higher yields. o More time taken to work on two issues. Variable Rate - Demand Notes Benefits: o Yields 2-4 percentage points lower than long term bonds. o No fixed redemption schedule for principal. o Can normally be redeemed early without penalty. o Lower overall issuance costs. Disadvantages: i o All changes in tax exempt interest rate markets over entire bond issue are reflected in payments. o Payments vary and can cause budgeting difficulties. o Requires credit insurance for AAA rating and Letter of Credit for "liquidity" on bond repurchase/sale. o Requires Letter of Credit which cannot be issued for the i, City under Iowa law. Zero Coupon Bonds Benefits: o Defers principal and interest to the future. o Makes future users of the system potentially more equal to present users in making system payments. Disadvantages: o Can have slightly higher bond yields. o Requires constant monitoring of investment in sinking fund. o Whole.of unpaid future debt can be seen as current bond principal. -13- '231 r 0 ti .........a........vf..0 ..v.....----.......ew...'.w� w Convertible Capital Appreciation Bonds Benefits: o See Zero Coupon Bonds. o Slightly lower bond yields for longer term bonds. Disadvantages: o New to the market, requires some sales effort. o See Zero Coupon Bonds. Lease Purchase Benefits: o Creates debt which can be repaid from any City determined - source. o Payments can be stopped by future City Councils if budgets show shortfalls. Disadvantages: o -Higher cost than similar debt. o Harder to obtain a high credit rating. o Is a General Obligation Debt for Iowa State law determination of debt versus assessed value. Privatization Benefits: o 'Significant lower annual payments. o Faster "drawing board to project" completion time. o . Lower overall project costs. o Can be bid to a pre -qualified list of subcontractors for better, more reliable work. o Normally not seen as debt by rating agencies or the state. o Puts burden of operational skills and shortfalls on a private company. Disadvantages: o Lack of direct City control of all phases of engineering, construction and operation. o Lack of easy method to expand services in the future. o Lack of known purchase price for.the plant or future service costs. o Difficult contractual procedures. o Subject to federal law changes and unknown tax benefits. C . -14- 023 / THE METCALF & EDDY FINANCIAL ANALYSIS REPORT A part of our contract requires examination of the Financial Analysis Report prepared by the Metcalf & Eddy Project team. We received this report in its final form on January 10, 1986 We believe the report is very professional and accurately states the information it contains. You will notice, however, that our report and theirs have substantial differences in the rate increases required, the detail on bond issues supplied and the detail on future years impact of various alternatives. We also examined (and recommended) the use of Zero Coupon Revenue Bonds which they did not report upon. We have provided the detail of each alternative in the last Section of this report. In some cases our recommended rate increase is 3 - 4 times lower than those recommended by Metcalf & Eddy. Much of the lower rate increases in our report are due to a phased versus one time increase in sewer user charges, the use of all earnings from all bond reserve funds to lower debt service lower the overall issue cash flow,and the refunding ofoutstanding city debt tolevelize We attempted to "normalize" most factors to make a comparison easier. The major factor that was not normalized in the Metcalf & Eddy report was the term. The term varied from 20 years (General Obligation Bonds) to 30 years (Revenue Bonds). Privatization had a 25 year life. We also used 2.5 yearsld be no as the engineering construction time during which was tot allowefor lengineering e costs asappart ofethe year original issue. We did not give Privatization the 5% construction cost benefit shown in'the Metcalf & Eddy Second Case. We assumed that a fast track could be used by the City theif tthey hire eda Construction Manager during engineering. recommends either Privatization or a combination of General Obligation/Revenue Bond municipal bonds. We recommend a use of long term revenue and zero coupon bonds. We find very little cash flow advantage in the use of General Obligation debt. The imposition of a sewer user fee is a direct lien on property in Iowa. This gives the revenue bond holder assurance of payment just as would be the case with a General Obligation. Additionally the City is limited in General Obligation debt amounts and we would like to leave this opportunity free for other se. The ed (20 years)uins General iObligation bonds tcauses rhigher ter be early year's payments. -15- 173( ...............::,::::.......... R PRIVATIZATION Because privatization is a new financing form that is currently being used by only a few cities, it needs a more in depth explanation than the other financing forms. A private company contracts with a city to provide the service of wastewater treatment and/or collection. The contract lasts for the term of the bonds needed to finance the project (typically 20-30 years). The private company builds the plant on land leased from the city. It uses tax exempt Industrial Development Bonds to build the project. The city is charged a two part annual fee: a capital charge for the cost of the plant and an operating charge for the operational expenses. The capital charge is typically based on a known cost for construction and agreed costs for the bond issue to build the facility. The construction cost is arrived at in two or more ways. The city and private company either agree to a fixed price contract or a bid contract to sub contractors. The current tax advantages are: investing tax credits and 5 year depreciation on 90-95% bf plant costs and interest costs for annual payments. The private company agrees to lower the normal bond issue payments for the project by a stated amount (20-30% of the eligible project costs) or to pay these amounts directly to the city. This represents the present value of the tax advantages of•private project ownership. (See table that follows). The private company and city agree to a method of fairly determining operating costs annually. This is typically either a cost plus agreement or a bid/cost sharing arrangement. At the and of the contract term the city has three choices: 1) renew the contract and continue to make payments for services, 2) buy the plant for "fair market value" and operate it itself, 3) walk away. The private companies that .are in this business are engineers and project management firms. This is an ideal way for them to capture more business and they made additional profit from operating the plants and/or sale of tax benefits. These financings require careful attention to contracts to insure a twenty to thirty year good business relationship. Many issues come up that are not at first thought to be questions. The contracts can and do work. The agreement can be good for both sides. The important decision is whether or not to use a private company in this role. -16- 073/ 9 Vp Privatization may be impacted by changes in the federal tax laws currently under study in the Senate. If Iowa City is going to use this means of financing it is important that they choose a firm and negotiate a contract as soon as possible. It may be essential that a contract is signed before the bill passes the Senate, if it does. This bill could eliminate many of the tax advantages that would be passed through to the City in the form of lower annual payments. It may also severely limit the number of "non essential bonds" that can be issued in every state. The last on the list of statewide priorities may be private Industrial Development Bonds. Congress will not act on this proposal until at least August, 1986. Until then, the future of this type of financing will be unknown. -i7- i �(laal ave .0 anal sea N tv'.\ uv sass .Yutu.uN.vN. I..... a ..aaa avuaM�A-..^.�i..'i...uvh .a..v�.•. ..r�...lyv.vav�.vuti .ul ea?31 . v SAMPLE CASH PLOW STATEMENT TAY BENEFITS OP PRIVATE OWNER OF A PROJECT 'PRIVATISATION' Year Annual 5 Yr 18 Yr interest Taxable ITC Net Taxes Present - City Deprec. Deprec. Expense Income Saved or Value of Payments Deductions (Payed) Tax Sense 1906 1967 10,003,082 1908. 2,346.802 2,422,500 166,667 2,400,000 (2,642,365) 3,400,000 4,721,163 1989 2,346,802 7,106,000 333,333 2,356,256 (7,448,788) 3,724,394 1990 2,346,802 6.783,000 333,333 2,309,887 (7,079,419) 3,539,709 1991 2.346,802 6,783,000 333,333 2,260,736 (7.030,268) 3.515,134 1992 2,346,802 6,783,000 333.333 2.208,636 (6.978.166) 3.489,084 1993 2,346,802 2.422.500 333.333 2,153,410 (2.562.4421 1,201.221 1994 2.346,802 333.333 2,094,871 (61,403) 40,701 1995 2.346,802 333.333 2,032,819 (19,351) 9,675 1996 2.346.802 333.333 1.967,044 46.424 (23.212) 1997 2,346,602 333.333 1,897,322 116.146 (58.073) 1998 2,346.002 133.333 1.823,418 190,051. (95,025) 1999 2.346.002 333,333 1,745,079 268,390 (134,195) 2000 2,346,802 333,333 1,662,039 351,429 (175,715) 2001 2,346,802 333,333 1,574,017 439.451 (219,725) 2002 2,346,602 333,333 1,480,714 532,754 (266,377) 2001 2.346.802 333,333 1,381,813 631,655 (115.6201 2004 2.346,802 333.333 1,276.976 736.490• (368,245) 2005 2.346.802 166.667 1,165,852 1.014.283 (507.141) 2006 2,346.802 1,048,059 1.296,742 (649,371) 2007 2,346.802 923.199 1.423,603 (711.001) 2008 2.348.802 790,847 1,555,955 (777,977) 2009 2.346.802 650.553 1.696,248 (848,124) 2010 2.346,802 501,842 1,844.959 (922,480) 2011 2.346.002 344,209 2.002,593 (1.001,296) 2012 2,34d.002 177,117 2.169.684 (1,084,842) 58,670,039 32,300,000 5,666.667 38,226,718 (17.523.346) 3,400,000 12,161,673 10,003,082 Nates 840,000,000 -Total Project Coat. 856 a5 Year Property 106 -Percent ITC, and reduces basis by 1/2 of the ITC taken. 6.004 -interest rate on debt (including tort for letterm of credit). 5.04 Sof. mount sold as cost to sell the tax benefits. 50.01 -Combined corporate tax tate. 291 e6ate of Return an investment required by Corporate buyer of tax benefits ea?31 . v L. < ............................... .. IOWA CITY - CURRENTLY The Iowa City wastewater system has projected income of $1,467,172 from approximately 13,500 customers for Fiscal year 1986. Revenue and General Obligation bond payments currently due in each year for past system improvements are shown on the following Table. Operating expenses are projected to be $984,000 in Fiscal Year 1986. This will cause a operating loss of approximately $32,000. .An additional $36,000 must be paid to special bond accounts, a total loss of $68;000 in Fiscal Year 1986. This will be deducted from the $495,000 that is the approximate balance of the operating fund. For projection purposes we have shown fee income rising only 1.1% to match the population growth rata. This assumes no rate increase. we have assumed a 6% annual escalation in system operating expenses to match inflation for chemicals, supplies, fuel, etc. and to account for salary increases. Iowa City currently has a bimonthly minimum bill for residential customers of $3.25. This includes sewer usage of the first 400 cubic feet (3000 gallons). The combined rate for all usage above 400 cubic feet per month is $.355 per 100 cubic feet. Industrial users are charged an additional $.06/pound of B.O.D. above a preset level and $.035/pound of suspended solids. There is no tap fee for new users of the system. This was ruled unlawful in a court suit. There can be special assessments of property made for new sewer extension. Developers must pay for new lateral sewer lines in a subdivision, however oversizing trunk sewers to accommodate future growth is not charged back. The Tables which show no change or slight changes in revenues are meant to show the current situation prior to any new expenditures for the Project. The City has several limitations on debt under state law, however many provisions are useful. General Obligation bonds are limited to 5% of total assessed valuation in the City, however projects such as this one are for an "Essential' Corporate Purpose" and do not require voter approval. Revenue bonds must be "pure", they can only use the revenues derived from the wastewater system. However monthly billings are a direct lien on the property just as if there were a special assessment made. This gives credit reviewing agencies a greater comfort in Iowa Revenue Bonds than those of other states. Other than the ability to use other tax sources there is very little credit difference between General Obligation bonds and Revenue bonds. -19- .............. H.......,.,.,.. ., _ ...... ...,.. ,,.... ... Iowa Cities are currently unable to take advantage of a very common type of bond used throughout the rest of the country. This is a floating rate, Seven Day Demand Note. It carries interest rates 3-4 points below the long term fixed rate bonds. Iowa law, however, prohibits cities from using Letters of Credit or other standby credit supports from banks. Seven Day Demand Notes require a bond to issue a Letter of Credit assuring the bond holder of repurchase of the bond within seven days of notice. In every case to date, for billions of dollars in bonds, the remarketing agent/ investment banker has remarketed the bonds and the credit is not used. The necessity of the Letter of Credit is a requirement of the rating agencies. The City's bond counsel, has said that some Iowa cities may be interested in attempting to change this law in the current session of the Iowa legislature. -ZQ- .?3/ ' 1,411,438 2,512,143 67,431,662 47,805,085 (23,550,157) NOTE: Deficit Revenues in the early years may be made up from the balance of the $495,000 that currently exists in the Sewer Operating Fund. IOWA CITY, IOWA CURRENT WASTEWATER SYSTEM PROFORMA WITH NO CHANGE IN SERVICES SYSTEM EXPENSES RISE @ 68 PER YEAR, NEW HOOKUPS INCREASE REVENUES @ 1.18 PER YEAR YEAR CURRENT CURRENT SYSTEM SYSTEM NET REVENUE - G.O. OPERATING REVENUES INCOME BOND BOND EXPENSES PAYMENTS PAYMENTS 1986 136,638 414,514 984,000 1,467,172 (67,979) 1987 139,205 398,467 1,043,040 1,483,311 (97,401) 1988 136,610 382,419 1,105,622 1,499,627 (125,024) 1989 134,015• 366,237' 1,171,960 1,516,123 (156,088) 1990 131,420 334,683 1,242,277 1,532,801 (175,580) 1991 153,825 316,915 1,316,814 1,549,661 (237,893) 1992 150,275 298,908 1,395,823 1,566,708 (278,298) 1993 146,725 0 1,479,572 1,583,941 (42,356) 1994 143,150 1,568,347 1,601,365 (110,132) 1995 139,575 1,662,447 1,618,980 (183,042) 1996 0 1,762,194 1,636,789 (125,406) 1997 1,867,926 1,654,793 (213,133) 1998 11980,001 1,672,996 (307,005) 1999 2,098,801 1,691,399 (407,402) 2000 2,224,729 1,710,004 (514,725) 2001 2,358,213 1,728,814. '(629499) 2002 2,499,706 1,747,831 (751,875) 2003 2,649,688 1,767,057 (882,631) 2004 2,808,670 1,786,495 (1,022,175) 2005 2,977,190 1,806,147 (1,171,043) 2006 3,155,821 1,826,014 (1,329,807) 2007 3,345,171 1,846,100 (1,499,070) 2008 3,545,881 1,866,407 (1,679,473) 2009 3,758,634 1,886,938 (1,871,696) 2010 3,984,152 1,907,694 (2,076,457) 2011 4,223,201 1,928,679 (2,294,522) 2012 4,476,593 1,949,894 (2,526,699) 2013 4,745,188 1,971,343 (2,773,845) 1,411,438 2,512,143 67,431,662 47,805,085 (23,550,157) NOTE: Deficit Revenues in the early years may be made up from the balance of the $495,000 that currently exists in the Sewer Operating Fund. IOWA CITY, IOWA WASTEWATERCURRENT SYSTEM ASSUMES 6% ANNUAL INCREASE INEXPENSES AND 1.18 GROWTH RATE PLUS ANNUAL RATE INCREASE TO COVER ALL EXPENSES EAR CURRENT CURRENT SYSTEM EXISTING PERCENT NEW REVENUE G.O. OPERATING SYSTEM REVENUES REVENUENET BOND BOND EXPENSES INCOME REVENUES MUST I PAYMENTS PAYMENTS BASE INCREASE 386 r 387 136,638 139,205 414,514 398,467 984,000 1,043,040 1,467,172 0.08 1,467,172 (67,979) 388 136,610 382,419 1,105,622 1,483,311 1,499,627 6.68 1,581,209 498 390 196o 31,420 366,237 334,683 1,2421015 ,277 IPS16,123 1.88 1-9% 1,625,483 1,672,622 832 411 392 150,825 275 316,915 298,908 1,326,814 1,532,801 1.18 3'78 1,708,416 1,787,858 36 393 146,725 0 1,395,823 1,479,572 1,566,661 708 1,583,941 2.28 1,845,069 303 64 394 395 143,150 575 139,70,659 1,568,347 1,662,447 1,601,365 0.08 0-0% 1,863,520 lr882,155 237,223 198,954 396 397 0 1,762,194 1,618,980 1,636,789 0.08 0.08 1,900,977 1,919x986 398 1,867,926 1,980,001 1,654,793 0.08 1,939,186 157,792 71,261 399 2,098,801 1,672,996 1,691,399 5.08 1,980,879 2,099,132 877 )01 2,224,729 2,358,213 1,710,004 1,728,814 5.08 2,225,715 930 986 )02 )03 2,499,706 1,747,831 5.08 5.08 2,359,258 2,500,814 1,045 11108 )04 2,649,688 2,808,670 1,767,057 1,786,495 5.08 2,650,863 1,174 k 105 106 2,877.190 1,806,147 5.08 5.08. 2,809,914 2,978,509 1,245 )07 3,155,821 3,345,171 1,826,014 1,846,100 5.08 3,157,220 1,319 1,399 )08 109 3,545,881 1,866,407 5.08 5.08 3046,653 3,547,452 1,482 1,571 3,758,634 3:984,152 1,886,938 1,907,694 5.08 3,760,299 1,666 i )11 )12 41223401 1,928,679 5.08 5.08 3,985,917 4,225,072 1,766 1,872 J13 4,476,593 4,745,188 1,949,894 1,971,343 5.08 4,478,577 1,984 5.08 4,747,291 2,103 1,411,438 2,512,143 67,431,662 47,805,085 ------- 72,047,821 692,579 -22- a3/ I COMPARATIVE SEWER USER CHARGES On the table that follows we have displayed the two most important components of sewer user revenues in each of the fourteen Iowa cities we surveyed. This was a random sample done in December and January and includes cities larger and smaller than Iowa City. We believe it is a representative sample. There is a wide range of each type of charge. Some cities are high on one and low on the other. Other cities are high on each. The average minimum monthly charge is 2.7 times higher than the $1.625 charged by Iowa City. The average charge for water is 2.9 times higher than the $.355 charged by Iowa City. This indicates that rate increases can be tolerable in Iowa City and not be abnormal for the state. -23- i 023/ t. 1 1 C O M P A R A T I V E S E W E R U S E R C H A R G E S City Minimum Monthly Bill Residential Charge for 100 cu. ft. of water used Ames $ 3.00 $1.70 all over 100 cu. ft. Bettendorf $ 1.60 $ .998 per 100 cu. ft. Burlington $ 3.25 S .975 Cedar Falls $ 7.65 81.18 all over 200 cu, ft. Cedar Rapids $ 1.22 $ .58 per 106 cu. ft. Clinton $ 2.00 $1.95 Des Moines $ 2.94 $cu65ffort.paallmovernth 450 Dubuque $ 2.52 $1.26ffort.paallmover 200 cu.Keokuk $ 6.55 $ .9375 for all over 700 cu. ft. per month Mason City $ 1.75 to f .72 for all over 240 cu. ft. per month Marshalltown $ 6.25 $ .50 Muscatine $ 5.37 $ .58 for all over 300 cu. ft. Sioux City $10.92 $1.26 for all over 200 cu. ft. Waterloo S 6.00 (avg.) $ .95 for all over 300 cu. ft. Average S 4.35 $1.02 Iowa City $ 1.625 520055 for all usage over -24- d �''Ya tal aaa/.aaaala SELECTED CASH FLOWS We have created a model of'the project to be used in examining the impact on rates charged of various financing cash flow schedules from each type of financing we studied. Our goal was to minimize the rate increases necessary to pay for the Project. In doing so we have had to work within the Parameters of known facts of the Project and the requirements of credit rating agencies. The following table summarizes our assumption on each type of financing used. Following the assumption sheet are bond cash flow and overall sewer system cash flows for each type of financing studied. Note: In each bond issue we included the present value (i2,180,000j of Iowa City's outstanding sewer debt ($2,827,000). We anticipate either calling and paying off these bonds or placing money in bond payments. This is done to normalize cash flow in all years rather than allowing current bond payments to cause user rates to be raised abnormally. We believe this will hold down rate increases. If a private company is owner, the proceeds of a sale of facilities or a•lease on the land would pay off the existing bonds. -25- I 5' ------- ....._...A-...., ................ v:.......:..v:.v.:w..v...,.� I ASSUMPTIONS USED IN BONDS AND REVENUES -26- �3l Zero Coupon City (and Conver- Revenue Bonds tible) Revenue Bonds $26,085,000 $26,086,000 Construction Cost 3,913,000 3,913,000 Additional Engineering Cost 3,913,000 3,913,000 Construction Contingency 1,077,000' 926,970 Bond Issuance Costs Amount 4,265,000 4,775,000 Debt Service Reserve Capitalized Interest Fund 2,434,031 0 Present Value of Payoff 2,180,000 2,180,000 of Current Bonds 0 0 Annual Liquidity Fee 0 0 Annual Remarketing Fee 353,800 337,000 + Bond Insurance Cost Construction Fund Interest Rate 7.75% 7.75% Capitalized Interest 7.75% 7.75% Fund Earning Fee Debt Service Reserve Fund 9.00% 9.00% Earning Rate 8.53% 8.75%+ Bond Debt Rate Construction Fund 3,810,749 3,799,626 Earnings on Earnings on Capitalized 297,421 0 Interest Fund Annual Earnings on Debt* 191,925 214,875 Service Reserve Fund 26.5 Years 27.0 Years Bond Maturity Engineerinq/Construction Time 3,873,000 1,880,000+ Annual Net Payments 44,225,000 421135,000* Total Bond Size 1,1%/year 1.1%/Year City Growth Rate 6.0%/Year 6.0%/Year System Expense Growth Rate Earning Rate 7.75% 7.75% Excess Net Revenues *Zro coupon are BThesamount at aof iscthetpresent the valueioflvalue the atematurity. principal of the bonds. -26- �3l I �K aaaiaa..ava\a'a'.aaa .\ata\a�Itaa..i.M...V.v::: ASSUMPTIONS USED IN BONDS AND REVENUES, continued Construction Cost Additional Engineering Cost Construction Contingency Bond Issuance Costs Debt Service Reserve Amount Capitalized Interest Fund Present Value of Payoff of Current Bonds Annual Liquidity Fee Annual Remarketing Fee Bond Insurance Cost Construction Fund Interest Rate Capitalized Interest Fund Earning Fee DS Reserve Fund Earning Rate Bond Debt Rate Earnings on Construction Fund Earnings on Capitalized Interest Fund Annual Earnings on Debt Service Reserve Fund Bond Maturity, Engineering/Construction Time Annual Net Payments Total Bond Size City Growth Rate System Expense Growth Rate Excess Net Revenues Earning Rate -27- Fixed Rate Privatization $26,085,000 3,913,000 3,913,000 1,077,000 4,265,000 2,434,031 2,180,000 0 0 353,800 7.75% 7.75% 8.55% 8.53% 3,810,749 297,421 182,329 26.5 Years 2.5 Years 3,114,000 44,'225,000 1.1%/Year 6.0%/Year 7.75% Variable Rate Privatization $26,085,000 3,913,000 3,913,000 927,960 3,253,000 1,567,262 2,180,000 3/8% 1/8% 337,440 6.00% 6.00% 6.00% 6.00% (includes fees) 2,950,257 153,721 97,590 26.5 Years 2.5 Years 2,450,000 42,180,000 1.1%/Year 6.0%/Year 7.75% .�31 l 0 i IW city. IW YY)W.L)W Nal" WINv[Wos IIWNW rLw N rum 3 wNNa Um., p Ilural Nil NININL CWNY IY»N3) loom Watrytest 1111,19 WYRfY(tIN Its,"Y{iMKl10Y "Mall" Yfa 46611111" YR 66111111 Ni 9WIgYY3 NN NIN1yN rm "9 CatalystNW[OYYa INlml 9Yi YWIi1 #311[1 "IM YNIm YYm to. Y1.1m rum 99"W9 aY11tt 1/1/N 1.]11.191 • . t 131#11.691 a 1,111.•11 HI/N Lfn.17f 1 21.11! UI,,]% IlI.0 Ir IILbI 1,111.111 411931111 19A11,611 94.310 111.111 11203.81 0 VIM 1131.175 1.411.174 Illus 191. R. IdIl.001 1.122,949 laud» 31.111.190 1,.415 IS)a91 11211.117 0 I/1q) 1111.654 1.4651411 Illus 111 a 21 121,.166 IU.III 11111,966 19.111.166 IL iD 111.651 LIl3.gs 9 .2/1/N 111101 1121.115 1111224 111,»4 IA65.00a 1111215 N:n t IIdO 1.111.33.5 1 s NI/u ,91.11 3.1» 1651651 611]. of IN.Na Nlnf IA»A 91 I • • I I/IA0 1.166.661 1.401.01 11,.174 111664 1121.966 1.166.300 111.111 1.10,1.1.1.111 1,1.1» 111.173 1126{.101 I/1/N 1.»1.,13 1.191.4•" 11,,915 UI Ia L1Il.000 3.111.110 /1/N )13.... 6.191 1.111.1113 2.411.•11 IlI.II. 1{1.1]1 11211.090 /1/O 1.111.m 1.1{{.664 151.411 111.911 4.2».111 ' ).»1.661 1/1/•1 )13.101 1.101 1,151,12• 1.111,1 it 111.113 1#1.,11 I, IIf 1000 1/1/N 1.)19.1,1 L1l1.lU 191.111 IIID» 11211.04 3/1/92 111.4{1 1.111 I,)I, I se 1.111,111 61 is 111,173 4.115.100 l/1/11 1.)1,.171 1.111.171 101.1,1 111.011 4.1{1,011 t/i/It ULN. ].194 IaU.172 ld>LI11 111.11, 1#1.114 11231661 I/1/II 1166.01 b4n.111 IILOS IN a Id IfA01 t/1/11 171.000 1121, 1.114663 1.1111 111.174 111,17S 4 HIMN HI/11 1117.09 1661.10 111.191 Illus 11217.#00 9/1/N 1.691.9.0 L41s 1.114.61# 3.911.•13 111,111 191112,9 11211.100 )13 1.9.1.611 sea is is 1.1.1,1 III.u1 t/I/M ImAN 1J0,3.411.111 117.663 I17.N1 41265.000 Ta', 1.{11,111 1.661.111 191.:13 151.921 4.119,09, 3/1/1, Id 15.166 1,311 1111,9.1#6 1,131#166 1#1.921 II1 3 1.)11.000 l/1/01 111,1.651 I.f14,lla 101 a 113 1#1.011 1.115.)19 1/1/M 1663.,11 1.U1 I.NI.NI. 32.1)1, R Illus 111.119 LN6N1 )/1/19 1.415 63 401,192 Is 0 Ill12)1 11211,1,1 t/1/II 1,)1,.10 1.60, 111»AU 1.01,90) 191.12, IIIr92S Ia1f.N9 Inn 11,31266 !.man 1,1.165 .men 1,966.166 HoIf a I.1U,eM 4661,90 111111191 III,Rt Ill.pl Ia1b196 I.M1.1a1 1 , 4.166 IN Is 111.921 1.111.11, 1/H1 1,911.659 6.663 I,w6N6 116 UI AIf IIL is 11211.40 3/43 I.1 Ia11.9N 191.922 111.16 4.111.41, t/Itl 1,166.,66 6111 1651.966 Lg1.1is 191921 IILNf 4.191.100 1/Iq 1.11112){ laflalf !0).923 sit as 41165.101 6/1/1 1 171 111 1 166 1/1/1 J/092 • • 1111151 111fIJM I,In,lq 11U,Nf 1911#" 166.911 Illus 6315.106 1%V1 2.115.664 9.191 {.3. ).1,1.661 111.921 191 A/5 111925 12{5.661 11211.4,) 1.671.11, IA/s 1/1/9. ],]19,61. 610, 1.19#.659 2,661664 1.111,120 Ida.17e 111.1]1 IILIN III.IIa IO,uf 1.]ILIo• 6311.04 1,171.616 1/1/4 1/1/I 1.194.414 9.141 01,1461 111.119 11111" ).is,"as 111.131 IILIN III Jif IILNf I, 111.661 LNI.Is4 ].9».174 1/1/1 LBO{965 LU, 111J1, IN JN 1,1"" 1411,11, """a 111.666 191.919 111.,2. 1.]14.{90 ),17).1,1 1/10 1/t/a 2.941.199 0.11, 11].664 f s as 66219 )111.419 191.414 141.916 111111 Ia1{, 090 12{1911 3.111.616 1/41 1/1/t ),111,61, 6.901 10,01 66f.13a OLItt I.)1,, 114 04921 191.92{ 111,111 1149211 #1211,666 11266.4. 1.172.]1) 1/1/14 1/411 11661,661 60, 661,171 Nl.NS 5,1.111 111,191 111,1]1 141.115 1.313.61) 4.26t.ffe 1.170.1{,9 11)111111 1.0,1 141.af) 49661111 111./11 111,111 141.17, IOJn 111,664 1111.06 1,911.990 1.11],)11 M1/VII AI, 1/1/u 111.141 1911221 1.171.11) IN 141.17! 110 . 1.]II1109 I,1,>.Ne 0.11, 161121# 1121 1.111.131 'i lal,uf 111.91. III.Na Id»,O9f 115.1.11 ].Ind!• )r#13.617 II 1165.10 II,In Au 19.111.17E 211111111 1/.661.111 V^»•- 111,111 2,111.111 -28- IOWA CITY, IOWA NEW WASTEWATER SYSTEM WITH ALL IMPROVEMENTS PROFORMA FOR NEW REVENUES NEEDED CITY REVENUE BOND ISSUE 171,599,266 76,398,732 96,825,000 39,891,159 M (-) (-) M FISCAL OPERATING NEW NEW EXCESS % ANNUAL DEBT YEAR FEE SYSTEM SYSTEM REVENUES & INCREASE SERVICE INCOME OPERATING BOND EARNINGS NEEDED FOR COVERAGE EXPENSES PAYMENTS COVERAGE RATIO 1986 1,467,172 984,000 0 483,172 0% N/A 1987 3,095,733 1,043,040 0 2,569,687 110% N/A 1988 3,126,690 1,105,622 0 4,770,633 0% N/A 1989 3,157,957 1,335,400 3,873,000 3,054,134 0% 126% 1990 4,136,924 1,415,524 3,873,000 2,116,324 30% 125% 1991 4,757,462 1,500,455 3,873,000 1,648,473 14% 127% 1992 5,090,485 1,590,483 3,873,000 1,390,868 6% 126% 1993 5,294,104 1,685,912 3,873,000 1,223,422 3% 125% 1994 5,505,868 1,787,066 3,873,000 1,154,863 3% 126% 1995 5,671,044 1,894,290 3,873,000 1,139,458 2% 127% 1996 5,784,465 2,007,948 3,873,000 1,122,737 1% 126% 1997 5,957,999 2,128,425 3,873,000 1,157,903 2% 129% 1998 6,017,579 2,256,130 3,873,000 11127,406 0% 126% 1999 6,198,107 2,391,498 3,873,000 1,139,933 2% 128% 2000 6,322,069 2,534,988 3,873,000 1,133,809 1% 127% 2001 6,448,510 2,687,087 3,873,000 1,101,598 1% 126% 2002 6,641,965 2,848,312 3,873,000 1,099,363 21 126% 2003 6,841,224 3,019,211 3,873,000 1,125,332 2% 128% 2004 6,978,049 3,200,364 3,873,000 1,108,790 1% 126% 2005 7,187,390 3,392,386 3,873,000 1,108,411 2% 127% 2006 7,403,012 3,595,929 3,873,000 1,120,083 2% 127% 2007 7,625,102 3,811,685 3,873,000 1,138,906 2% 128% 2008 .7,853,856 4,040,386 3,873,000 1,159,100 2% 128% 2009 8,089,471 4,282,809 3,873,000 1,173,899 2% 129% 2010 8,332,155 4,539,777 3,873,000 1,175,450 2% 128% 2011 8,582,120 4,812,164 3,873,000 1,154,688 2% 127% 2012 8,839,584 5,100,894 3,873,000 1,101,206 2% 125% 2013 9,193,167 5,406,947 3,873,000 1,091,510 3% 126% 171,599,266 76,398,732 96,825,000 39,891,159 The Zero Coupon and Revenue Bond Tables that follow show all bonds maturing in 2013. The revenue, cash flow tables show "Special Bond Redemption Payments" of amounts of "excess city revenues" from rate increases. The final maturity of the Zero's is shown at their present value at the time of issuance and the interest rate is shown as 0%. We have calculated the internal interest rate on these bonds at 9.25% and show their appreciation on the Proforma for New Revenues Needed sheets. The Proforma of Funds and Earnings sheet is not affected by the Zero Coupon,Bonds until they are called. The Proforma for New Revenues Needed does not specifically show the use of Convertible Capital Appreciation Bonds (Convertible Zero's). These are the bonds which convert to pay interest at a preselected future date. Much of the early year's payments from the "Special Bond Redemption Payments" will in fact pay the interest on the preselected amount of Zero Coupon Bonds that are convertibles. -30- _...... 073/. r % �i'alvvavatal.ivv\teN av viv:i ♦tt!tva.�nwii.v l: l: ::.viv♦ 011.110 !,lot131.161 131.161 3 Il{.601 q.101 IelJNII{ lf 1 .2011616 1.105 111,:0 b1AU 1 NI.NO I.Iot 141.11{ 11111!1 1 115.116 LIOt le{11 10111)10 1 b401.N0 LII) 1466: 116.166 1 11106.:0 4.3o1 611.115 1:11)1 ! Y1{}N\TY IT{lY 1asI 161161) 101 dif 1 1.50,198, e.11S 511 1911 111.1 if 1 61n.W 0.401 M. 41611s1 1 11541.:1 4.111 415,111 4611114 1 IJM.OM 3.015 I4'J10 11.116 3 111.1163.911:111111, r LSF Usf( n IYir { tW 1.001.010 1.555 11111)3 I II.IN 1 11116.116 1.115 1 O.4is 101113) L 16.&_061: 1.05 . 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SOME { 14'40 Yltr N 41NwIM 111111/011 1.110.010 1/1/11 VVO 111.111 111.111 111.111 )11.11) 1.111.110 1.1)5.111 1 t 1]11661{ 1 1 row Iwrl: I...m rw0 IY1r1ew0 441 1.113.001 1/1/I1' 111.161 IflJ61 15).111 111.111 111.115 4.1)3.111 1.111.111 1.111.121 )1.111.4{1 1.11!.1 2,1 1.311,111 e11.11f 111 1.101 11131:4 YNY144 1.211 111.011 Vital 111.111 111.1 611.11310.11) 211.614 216113 LA6O0 2,),I11.[11 wall IIJ 61,US :111[1: 111.113 �1 nt1Y11:1 Iuunt rn1 111.11, { I/1/IS A6N1 6101 3111 1.11.111 !164'1 1.4'1.610 ::: :1,111 11.NIJ21 t .111:5 IU MW NS 11.31 L:I t/1/01 3/1/11 111,111 1.101 111.1: Ill 1{111: 11141.641 111.111 i14.11{ 114.111 II 1.111.111 1 t I.U5.111 111.113 1.141.111 __ I:.I)>,e01 l/1/Il UI/N .0: 616.141 111.511 211.111 111.111 111.11{ MIR 1.111.110 1.111.111 -1.1:.100 1/1/11 311.00 I.IIS 111.511 IJS4.fsf 114.611 116111 11t1f.111 Llll.11r 110.311 Jsajel 1/VII 010.101 6.81l 611.01 11).111 111.011 is? oil 311.1)1 11 110.11{ Ia61.W b2.1O 1.611.11, 01 I/1/I1 41{.801 1.005 111.111 [11.03{ .911 114.114 111.:1 )14.111 41111.10 1:111,110 6$11.011 1511nS tr NF1 Is 111.111 61l.IIs 1.111.011 Iis.111 111.[11 111.111 61)1.1,1 111.111 1.114.011 1.1:.ISI 1411 Nlr U. 11,115.041 I/U91 110.010 1.115 611.1: l.)M.116 !11.111 111.114 111.1)1 1.)15.111 t71.6M 11111.11! :tel'. M trlt[rtlro Lr1 3-161.011 t1 1/1/01 SIM" 1.115 111.111 111.111 111.111 1.111.011 111.113 111.1)1 111.111 1.113.110 4.113.110 1.111.0: 111.111 111SS.111 •--151014.611 ' 1/1/00 I/1/II 511.0,0 1.101 011.111 113.010 111.111 111.1[1 111.111 !11.11{ 1.))3.111 1.10.111 !.11[.111 w11r[ Nr .&YIN fST1 1.601 1/1/N 1is.411 111.111 I.IIIr441 114.1)1 211.115 1.11!,111 I:.111 1.115.111 1.,11.111 NY 2,m Nr :YIN To 2.135 I/1/N 511.010 1140) 411.311 0is.t11 1.111.111 311.111 111.01i Irll4.111 011.2,11 1.111.011 YrllYtim IN{ t rur Y1GIN 1 1.745 11, :1110 011511 111.01 111.111 1.111.:0 1.111.111 H .:0.50 l.OYt 10111) LIn.0n ii 1'111 110.114 1.11{.:0 151.345 1.11[.:1 011.110 !,lot131.161 131.161 3 Il{.601 q.101 IelJNII{ lf 1 .2011616 1.105 111,:0 b1AU 1 NI.NO I.Iot 141.11{ 11111!1 1 115.116 LIOt le{11 10111)10 1 b401.N0 LII) 1466: 116.166 1 11106.:0 4.3o1 611.115 1:11)1 ! 111:11: 6,161 161161) 101 dif 1 1.50,198, e.11S 511 1911 111.1 if 1 61n.W 0.401 M. 41611s1 1 11541.:1 4.111 415,111 4611114 1 IJM.OM 3.015 I4'J10 11.116 3 111.1163.911:111111, 110:.111 1.101. 311.:3 )13.1)1 f 1.001.010 1.555 11111)3 I II.IN 1 11116.116 1.115 1 O.4is 101113) L 16.&_061: 1.05 5 N.11510M ]1.1111111 01 I i I 1 I W i N v i u r IOWA CITY, IOWA NEN WASTEWATER SYSTEM WITH ALL IMPROVEMENTS PROPORMA FOR NEW REVENUES NEEDED SERO COUPON AND REVEHUC BONDS RAIE FISCAL OPERATING NEW NEW EXCESS ACRO COATED SERO COUPON SPECIAL 9 ANNUALCREASE ORV7 YEAR PCE SYSTEM SYSTEM NET REVENUES 'PRINCIPAL* ANNUAL BONG INCREASE SVERIGE INCOME OPERATING BONG PLUS EARNINGS 'PRINCIPAL• INCOST REDEMPTION MELDED GE COVERAGE TIO • E%PLNSC6 PAYMENTS VALUE C067 PAYMENTS COVERAGE RATIO 1996 1967 1966 1969 1990 1991 1991 1991 1996 1999 1996 1997 1999 1999 1000 1001 1001 1001 1004 1009 1006 1007 1006 1009 1010 1011 1011 30131 1014 is LP RR L\ CASE A' r� ; i � 1 W n IOWA CITY, IOWA NEN WASTEWATER SYSTEM WITH ALL IMPROVEMENTS PROrow FOR NEN REVENUES NEEDED ZERO COUPON AND Revenue BONDS ' FISCAL RAIE OPERATING NG NEN EXCESS ACRO COUPON SERO COUPON SPECIAL 8 ANNUAL DEBT TGR PLL SYSTEM sNEWystem BYOTLN NCT REVENUES ACCUMULATED ANNUAL INCRENEEDED OVERAGE INCOME OPERATING BOND PLUS EARNINGS 'PRINCIPAL' INTEREST REDEMPTION PEDEMENTS NCOVED FOR COVERAGE EZPLNfiL6 MYNCN75 VALUE COST PAYMENTS GE COVERAGE RATIO '1916 1,667,172 986,000 0 413,172 18,635.000 0.06 N/A 1917 2,721,940 1,063,060 0 2,206,510 20,140,238 1,705,738 8S.06 N/A 1981 2.915,599 1,105,622 0 6,187,500 22.003,209 1,862,972 5.841 N/A 1989 7,115,026 1,335,600 1.810.000 6,611,658 21,038,506 2,035,297 3,000,000 5.811 3291 1990 31721,094 1.615,536 1,060,000 1.786,131 21.616.566 1,966.062 1.500.000 5.141 1971 1991 •3,535,736 1,500,655 1,810,000 599,877 22,872,054 1.987,327 599.837 5.041 1611 ' 1992 3,799.960 1.590,403 1,810,000 376,953 26.612,766 2.115,665 376,953 5.841 1371 1991 4,051,796 1,685,912 1,160,000 521,963 26,367,506 2,276,681 521,963 5.111 1561 1994 6.136,618 117871066 1,810,000 709,602 28,096,696 2.438,994 709,102 5.816 1731 1995 4.633.029 1.894,290 1,110,000 913,760 29,781,192 2,598,966 913,768 5.941 1911 1996 6.919.921 3.007.968 1,000,000 1.132.796 31,403.921 2,756.825. 1,132,796 5.841 2171 1997 5.280.503 2.128,625 1.810.000 1,367,870 32.940.916 2,901.863 1.367,870 5.161 2411 1998 5.650.237 2,256,130 1.610,000 11620,117 36,367.832 3.067,035 1,620.117 5.816 2671 1119 6,02!.717 3.791,6!8 1.810,000 1,600,774 35,056,017 3.179,026 1.810,776 5.811 2941 2000 6.619,626 2,516,918 1.880.000 2,181,171 36,773.099 3,298,106 2.111,171 5.861 3241 2001 6,190,770 2.667.067 1.880.000 2.692,732 37,681,076 3.601,512 2,692,732 5.861 3561 7002 7.162,100 2,669,312 1,110,000 2.126.982 30.360,470 3,495.574 2,826,982 5.80 3901 2003 7,165,676 3,019,211 1.860,000 3,1/5,556 38,701,608 3,566,693 3.185.SS6 5.111 6271 2004 6,603.618 1,200,766 1.160.000 3,570,205 3/,711,083 3,579.880 3.570,205 5.111 6676 2005 1.978,500 3.392,386 11180,000 3.982,806 78,309,053 3,580.775 3.902,106 5.816 5091 2006 9,592,630 31595,929 1,810,000 6,625,360 37,677,272 3,563,597 4:42S,367 5.841 ss41 2007 10,241,799 3,611,665 1,810,000 6,900,067 35,989,267 3,662,023 6.900,00 5.141 6031 2001 10.941.761 6,040,386 1.980.000 51109.169 33.902.103 3.329.005 5.609,141 5.811 65S1 2009 11,691,766 4,282,109 1.080,000 5.955.147 31,090,569 3.136,592 5,955.147 5.861 7111 2010 12.490,940 4,539,777 1,880,000 6.5/0,687 27,425.777 2,875,176 6,540.687 5.861 7711 1011 13,353,868 4,012.164 1.880,000 7,168,607 22,794,011 2,536.881 7,168.607 5.811 0361 1012 14,267,273 51100,894• 1.6101000 7.941,946 17,060.511 2:101,446 7.841,946 S.86k 9051 2017 15.263,154 5.406,947 1,110,000 8,563.957 10,074,650 1,570,097 8.563,957 5.841 9791 1014 16,213,786 5.731,364___ 0 11,219,128 (211,5731 931,905 11.219,121 5.141 N/A 215,952,658 83,130,096 47,000.000 102,469,307 75,20,756 93.894529 special Bond Redemption paynnts aoe early cells on Zero Coupon Donde outstanding and not due until FY 2011. The [undo age taken from the excess Net Revenue account. earnings on escrowed Excess Net Revenues Is 0 7.751. CASE /2 L........... Privatization Privatization Bond Issues In each of the Privatization cases that follow, several assumptions have been made. In each case, we assumed that the tax benefits were worth 25% 'of total project cost (including bond issue costs). We assumed that approximately 80% of the total project was personal property eligible for Investment Tax Credits and accelerated depreciation. The net benefit, then, was a 20% reduction from the debt service paid by the private company in the Capital Charge paid by the City. In all other aspects, these bond issues look like a similar municipal revenue bond. The floating rate bond was calculated at 6.0% interest for the entire term. This includes a 3/8% annual charge for "liquidity protection" of the bond holder - to allow them to be paid in'full should they exercise the option to demand repurchase of the bonds. It also includes a 1/8% fee to remarket bonds assuming they must be remarketed only one per year. The present difficulties resulting from the pending federal tax bill were discussed earlier. The outcome of this legislation could dramatically reduce the value of a private owner. In particular the difficulties involved in issuing tax exempt Industrial Development Bonds may severely limit the type of tax exempt issue. The elimination of many tax benefits could reduce the savings below the debt cost. The variable rate bond issue will change debt service charges monthly. The actual debt service may be higher or lower than that shown. It is impossible to predict the future of interest rates for the next 27 years. We have shown no payment to acquire the plant at the end of the contract period (26.5 years). The City may choose to abandon to plant or to renew the existing contract. Any purchase of the facilities in the future will be at "fair market value". If the City intends to purchase the facilities it should immediately begin to accumulate additional funds in an escrow account for future purchase. This would offset a small part of the annual savings of private ownership. A private owner may also be required to the facilities. We did not show these be borne by the City as a pass through. this tax may be waived for a period of -34- pay real estate taxes on costs although they would In some jurisdictions time. 0231 a j 2113 cm. Iwa YYTIYYCr al]OY IY]Y'IY{IIH i rroraNa tme n rwof t Y ,Ivan 4,00112421 - mu me 661ed uwa W» ralKil" CW Nr I.M., reed Y]YVa IW] Y&",a YYTYLi1H Me COTNCTIM GIITRIIY 1Y. Y011LL119. Was WPITN. IYIIYT run Wos ell low NN vla 6 .1 FORM YaaaYT WMi." INaaYT ."I CIYCC To LYIKf rLLIKa alY1K3 YYKa Ni Santos 1.8, a s {YYlca Ip4 CIT) a I/IbI t 4.115.38, t t 31.611.133 t 11»4.01 t 1.131.411 »1.121 111.811 4.241.8,° 113».8» 4.704.111 11.»1.°00 IL11, 311.m M ,pl t 413 114 loss 111 0 0 1/1/II IAn.u] 1.614.912 - 0/1/41 1.6)gOf 1.614.,73 ULNs U1.611 111.931 13.811 Idll.Oe 4dO.HP 4U].141 N6.111 1.114.111 81.111.181 14.114.116 70.1/1rLe Il Us 11.370 1»all 1:111.08 0 I.sls ;IS 1/1/It 1.11.111 UL»] 111.921 1]45.011 141311 11.311.f1f t 4111{ 1.141.pS t e 0 !IMM Vale 414.66. 6.60, 1.01,»I 2.1411,75 33.111 111.1» 1.160.110 1 1 4 ] 9 ).111411 1111.>f4' F I/1/8, 1.911.6» 1.31115 //1/11 191.601 440, 11,1.611 ].6{1.913 2221»I• 181.»I 8,1.111 111.931 4.10.616 1.664.000 101311 111101 2.111.111 11.111.111 0/IRl 1111.000 1.601 4.!.1.111 1133110 14.111 1.692.161 ).ludo .. l/1/11 IAN.601 1.111.060 112.31 IN.1» 4.6.. 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U1.141 )1114.»6 112411 t/1// 2.660.8,6 4.58, 11"1 3.381.518 111.111 IH.11, 41111.670 3.6»,»° adll.11f 113,111 iii;iii :.'YI I/1/I 9114U 03.191 111.111 U3.311 4.Itf.606 I/1/I 1118,..11 1.111 .11,111 1.111.]11 181,131 112.»1 1.111.045 I.aN 1311 3.111.111 1.611.61) 11111 iiiiii afi.til ..,• - - 1 tll 68, 1821111 lea 111 162.111 102 111 1.1151119 1 f1{ IN . ) 111 401 a III.», 116.31 113.111 111.111 413{1.811 1.181.01 112411 L2211 1411.101 )l1U.lf1 irl3.11i {1411{ I��:iii 122.222 111;111 113,111 iii;iii 4.f1Ir001 1;111;1.1 � 2.611,116 2,111.11{ 1./14611 124411 U51311 1.614.111 1.611.61) LI11.D3 111.10 L141I 16043 Id11.1U 4601138, filll.m ^2.611.111 2.111.111 11.111.111 11.111 x116 115.68,.641 1.111.111 6,111.111 11.111.111 111.111 -35- 1 1, . kj u a i FISCAL YEAR 198 198 198 198 199 199 199 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 IOWA CITY, IOWA PROFORMA ANNUAL RATE INCREASES NEEDED TO MEET PAYMENTS TO PRIVATE COMPANY - FIXED RATE BONDS M OPERATING FEE INCOME 6 1,467,17 7 2,950,48 8 2,982,93 9 3,015,75 0 3,048,92 1 3,570,29 2 4,145,106 4,480,860 4,709,384 4,949,562 5,053,503 5,210,162 5,319,575 5,484,482 5,654,501 5,773,246 5,952,216 6,136,735 6,326,974 6,459,840 6,660,095 6,866,558 7,148,087 7,369,678 7,598,138 7,909,661 8,233,957 8,489,210 152,967,088 H NEW SYSTEM OPE"TING EXPENSES 2 94,000 3 1,043,040 8 1,105,622 1 1,335,400 4 1,415,524 0 1,500,455 1,590,483 1,685,912 1,787,066 1,894,290 2,007,948 2,128,425 2,256,130 2,391,498 2,534,988 2,687,087 2,848,312 3,019,211 3,200,364 3,392,386 3,595,929 3,811,685 4,040,386 4,282,809 4,539,777 4,812,164 5,100,894 5,406,947 76,398,732 H ANNUAL PAYMENTS TO PRIVATE COMPANY 0 3,114,00 3,114,00 3,114,00 3,114,00 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 3,114,000 77,850,000 EXCESS REVENUES 6 EARNINGS - PAYMENTS 483,172 0 0 2,426,853 4,486,183 0 3,388,997 0 2,162,571 0 1,280,598 0 817,267 559,510 409,791 381,797 341,988 335,374 309,972 312,204 341,132 338,876 354,195 384,283 425,714 411,098 392,096 362,377 383,257 384,870 358,096 368,450 415,148 414,547 23,030,415 6 ANNUAL INCREASE NEEDED FOR COVERAGE 08 1008 08 08 08 166 156 76 46 46 16 26 16 26 26 16 26 26 26 16 26 26 36• 26 26 36 36 26 DEBT SERVICE COVERAGE RATIO N/A N/A N/A 1638 1228 1086 1086 1086 1076 1108 1096 1106 1086 1096 1116 1106 1116 1126 1146 1126 1116 1106 1126 1116 1106 1116 1146 1126 ,�h.vMilvvavay.a avv la v.vvv .v a.a vvv .av�.w..w.V ....a %4 ' 1 1 600, 1;IIbH1 101. 0,)l. 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SO 1,111.111 :.19,408 '1/f '1/1 4116661 6.005 N .1so 1.11),111 91;199 OAfi '1/Il 41 191 3.1,51$4 6 LN""a !,10166 1..311 16.fN 3.3)Id40 1.311.110 0 1,011,111 1 0.104111 32,011.118 301$11.195 a 0.111 5211ea 1.111.11, 11111.191 1/11 1.114141 1-213.00, N.f1, 01.100 1.214111 ).21.00 111.1 111!!. 91 21.111.10, 42,tll 253.20 1.211.111 t 0 '1/11 1113.110 ❑.190 0.190 1-211110 ).),11.000 713.131 -11311.911 11.1)).301 31.115 111.4 152,411 901 )sa.,ee 1.,1. 1, 65. 1.6 1. As 1.1.6 1,11,414 3,114418 ]311.061 315.100 19.01.01 t :1112 II1d 11 t t t 1/11 0.190 I? as 130,111 1,116,41 laN.09, t t , t 1 1/11 )01.000 LOa9 N.UI N,f00 1,11Ims K 11.40 3.111.0, 3.00.11. LNe.I11 11 111$1: 0,110 1.2141.0 4211. So 3.211.010 1/11 68$.00, 1.69, 11.516 11)1. 2311156 LOSS 1251.910 101111, 3,11,1411 '1/II 91.169 91.f0 I,I1,L6 1,101,166 3.aN,N1 1/11 191.010 1.041 11.519 N.MO ]III1104 2.606.110 ),151.000 /,01..110 LOO, OL 1/to 16.11. II.fN 1.1111$51 1.111.111 31311.681 '1/N If1,a00 1.08, 01.11! 0.310 1.116.0%1 3.111.131 1.21.600 3.00.)10 LN1,191 1/32 11.11. Il.SN 1 111 lf1 I IN IN N f1. 3.]{1,600 '1/11 1/IS 1X4121 600, 1;IIbH1 i.IU;Ifo 1..501 ])iii 1 iii 000 1/11 1,110.101 LIu.g1 401. 1.118,119 1JI8,IN l.Il1:43 O, 1 N.0 :9553 XN: 412.400 1X4400 1/1. 1.111.000 1111$31 6,00, 1:113x111 !.111.156 ).311.1{1 111111 IIrIN 01.10 N.l9I 41.1.001 1.151,011 1/11 1/I1 11$14000 1,111.20 1.684 1,111.133 3,141,13: 4311,26 111111 91,1.1 :1.390 N,NI )431.000 1,131100 1/II 1/II 1,311.006 I.NS,IN 1,011 1.46, 4113,61. S: 812"Al ,1$N N,{21 11.]11 1..1:: 1.111.100 ),154011 1/11 )/11 L16.61 146,110 6.691 911.116 AS .161 3,31111. 91.901 1111 N.10o 1.111 3.151.000 1,252.800 VII 1/11 1.604,00 12.NO 6.804 N1. ..IN 11a J."..1so I1.34 O1.{99 911$14 I1.f06 411001 ),1f1.N0 1/t I1411N 840118 6110 O40dN 11{69 a? IS'"' 4311.X1 '1/1 .... .......... 11.111,198 14414)1 III1110 1,152.169 N.SM O.f6 3.111111 1/! b{11101 116,146 6001 111.168 01{,611 101.IH 91.$69 Ods 61.1.1 N.fN 3,11401: 1!11.696 'IN 1.131.X1 1X.140 6.069 191)fo 111,311 3,31.111 So.," 01.111 Il.UO 1110 1,114018 6.111400 1 Id69dao ll3,If* 6400 111.!4 21411 !.469,166 52.14 611tH 81 Is 01.910 LlSl dal 1:331 '1/1, '1/f 1.N60,O Na.110 468, 04151' {II.IN 3,,51,140 N.fM II.IAS Mail 01$0 1.311.111 )414690 '1/I 3.069,14 6N,1{I 6.1.1 f1 NI.IN M 3.3I1.N 3 aI.IOf 4,fN 01.51. 1. SO 1,111.111 :.19,408 '1/f '1/1 4116661 6.005 N .1so 1.11),111 91;199 OAfi 1.111 i0, 41 191 3.1,51$4 19 6.X1 X3,611 41., ,5411. !,1)1.140 1.11 91.10 II,U1 :111. 1152,211 1.291119 1140.426 1.I16.OIf ),,11436 3,040,Nf 1,4440 1.!4.41 . I,e1..u6 1,NO.Nt 3.O1..N8 6,4141 )11.,110 LIN 9511 ).01..1)0 3.450.114 6.40,178 3.416.49, 614.44 2,451.2, 111..00 :100.44 1.01140 2.111,11{ 1.04 5.010 14:1011 1.695149 1.42.:11 1.41,795 1.451.116 3.911110 I.,5I.Nf 1/1 3,01..111 1.101 42.169 IN.iN 111.11 1.013.349 N.SM 1.%" 61.169 at.IN ).f51.ON )1$51.118 3.944.116 21151.111 1/I 1/5 1.IN.NO LIN 10,110 aN.16 IO AN 1.11).516 1.10 17d06 1.114 1.118 31211.160 1411.091 ),III.N1 i,ltl.11f 1/18 VII - 3,10,14 LNI I IN HO.3N 30.14 )111111 Mila X111 fI.SN IlrfX 1111.110 3.1191$11 31$4146 1.111.111 All I/ 1 1918.108 1.001 181.391 111.211 111.191 3.146481 Mul 1.111 aI.SI0 Ods 1,111.6,1 l.H1IN 1.191410 adlf.11{ 1/11 91 .11, !41N ..1$N N.3X 3.351.408 1.214156 21,51,91 1.114111 .L 1.069 1....101 11.111 1.1$16 3,1)4101 .......... N.INd00 ............ .... .......... 11.111,198 14414)1 6.111.16 1.41118 �........ 1111«1111. ......�_.. 1,116.111 X.011,01 ����.. �......� .........� 111,111 121.111 1.11481 3.14411 -- 1!.01499 {1.131.01 -37_ i w m All U1 FISCAL YEAR 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 IOWA CITY, IOWA PROFORMA ANNUAL RATE INCREASES NEEDED TO MEET PAYMENTS TO PRIVATE COMPANY - FLOATING RATE BONDS M OPERATING FEE INCOME 1,467,172 2,363,614 2,389,614 2,415,900 3,070,608 3,534,270 3,749,861 3,978,602 4,141,725 4,270,118 4,402,492 4,538,969 4,634,288 4,731,608 4,925,604 5,078,297 5,235,725 5,398,032 5,565,371 5,737,898 5,973,151 6,218,051 6,472,991 6,673,653 6,880,537 7,162,639 7,527,933 7,836,578 136,375,300 NEW SYSTEM OPERATING EXPENSES 984,000 1,043,040 1,105,622 1,335,400 1,415,524 1,500,455 1,590,483 1,685,912 1,787,066 1,894,290 2,007,948 2,128,425 2,256,130 2,391,498 2,534,988 2,687,087 2,848,312 3,019,211 3,200,364 3,392,386 3,595,929 3,811,685 4,040,386 4,282,809 4,539,777 4,812,164 5,100,894 5,406,947 76,398,732 H ANNUAL PAYMENTS TO PRIVATE COMPANY 0 0 0 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,450,000 2,525,000 61,325,000 EXCESS REVENUES & EARNINGS - PAYMENTS 483,172 1,839,984 3,261,974 2,137,122 1,502,490 1,198,992 998,294 915,857 889,205 881,723 892,397 919,871 917,019 875,905 882,214 889,590 893,721 889,571 871,296 832,155 821,790 839,790 885,379 892,627 850,334 614,583 852,717 821,301 29,751,074 9 ANNUAL INCREASE NEEDED FOR COVERAGE 08 608 08 08 269 149 59 59 39 29 29 29 19 19 39 29 29 29 29 29 39 39 39 29 29 39 49 39 DEBT SERVICE COVERAGE RATIO N/A . N/A N/A 1318 1299 1329 1299 1319 1329 1339 1349 1369 1349 131%- 134% 1349 1349 1339 1329 1309 1319 1329 1359 1349 1309 1299 1349 1299 r DAN LHUDSON, ASSESSOR CAROLYN R.BURKE.DER TY DENNIS J. BALDRIDGE, DEPUTY OFFICEOF ;I �Cltp �$1iC�gOC COURTHOUSE P.O. BOX 1546 IOWA CITY. IA 52244 January 20, 1986 I Dear Conference Board Member: The annual meeting of the Iowa City Conference Board for the consideration of the Iowa City Assessors- FY 1987 budget is scheduled for Monday, January 27, 1986, at 6:30 P.M. at the Iowa City Civic Center. Enclosed, so you may review the information before the meeting are: 1. The agenda. 2. The proposed budget. 3. The 1985 Annual Report which includes the program division statement. 4. A copy of February 25, 1985 minutes. 5. A copy of Application for Board of Review position. Please note that the amount to be raised by taxation is only $4,822 more than required last year, only a 211:% increase. The increase consists mostly of: a. $ 4,500 for assessment rolls and postage for same. b. $ 8,000 for a car for field work. c. $ 3,720 for a modest 3% cost of living increase in salaries.. $16,220 Total increase This increase is nearly offset by the following decreases: d. $ 4,739 unused balance transferred from the Special Appraisers Fund. e. $ 3,500 for two court cases which will be tried during FY 86. f. $ 3,559 more in the unencumbered balance. $11,798 Total decrease The levy rate will be going down from .18905 to .17637, a reduction of nearly 7%. The new construction that will be taxed for the first time in FY 87 will produce over $5,600, which is more than the increase needed for this proposed budget. .If you have any specific questions or wish to look at any of the supporting documents for this budget, feel free to call me at work at 338-2231 or at my home at 338-6176. SiX: V Dan L. Hudson Iowa City Assessor l i vMrAti\M taa✓..a\'aa\\\\rr\aat\i valla\u�µv NJ:..Nv\\Y.ar'..M....t- -----rvw'.\�vN.v/M1 ..vm'I..aaYnv.Mv.H� January 20, 1986 TO WHOM IT MAY CONCERN: The Iowa City.Conference Board will meet at 6:30 P.M. on Monday, January 27, 1986 at the Iowa City Civic Center. The purpose of the meeting is to discuss the Iowa City Assessors' proposed budget for fiscal year 1987. AGENDA: 4. S. 6. 7. 8. 9. 10. 11 12 Call meeting to order by the Chairperson. Roll Call by taxing body. Act on minutes of February 29, 1986 Conference Board meeting. Assessor presents proposed budget. Discuss proposed budget. Conference Board acts on proposed budget. Set date for public hearing. Appoint Board of Review member: Appoint Examining Board member. Transfer of fund from Special Appraisers Fund to Assessment Expense Fund for purchase of vehicle. Other business. Adjourn. Dan L. Hudson Clark, Conference Board J i I c I� i I I I l i vMrAti\M taa✓..a\'aa\\\\rr\aat\i valla\u�µv NJ:..Nv\\Y.ar'..M....t- -----rvw'.\�vN.v/M1 ..vm'I..aaYnv.Mv.H� January 20, 1986 TO WHOM IT MAY CONCERN: The Iowa City.Conference Board will meet at 6:30 P.M. on Monday, January 27, 1986 at the Iowa City Civic Center. The purpose of the meeting is to discuss the Iowa City Assessors' proposed budget for fiscal year 1987. AGENDA: 4. S. 6. 7. 8. 9. 10. 11 12 Call meeting to order by the Chairperson. Roll Call by taxing body. Act on minutes of February 29, 1986 Conference Board meeting. Assessor presents proposed budget. Discuss proposed budget. Conference Board acts on proposed budget. Set date for public hearing. Appoint Board of Review member: Appoint Examining Board member. Transfer of fund from Special Appraisers Fund to Assessment Expense Fund for purchase of vehicle. Other business. Adjourn. Dan L. Hudson Clark, Conference Board J i i 4 �'Q a\avaa!away\awHaawpacv�aw!a�ww�+....: _n:w wiw��aw.n+..�.........u�✓.ww.w ..aw.v�....w.ui..wvn•.�mn�.v� ITEMIZED BUDGET - ASSESSMENT EXPENSE FUND ITEM NO. EXPENDITURE FY 86 FY 87 SALARIES 31 City Assessor $ 35,200 $ 36,25C 32 First Deputy 28,160 29,000 32 Second Deputy 24,640 25,380 35 Plat Supervisor 21,050 21,680 35 Clerk 15,210 15,670 Total Salaries $124,260 $127,980 OTHER EXPENDITURES 34 Board of Review $ 91000 $ '91000 36 Employer Share: FICA 8,700 9,000 37 Employer Share: IPERS 5,800 6,000 38 Mileage & Travel 1,000 8,500 39 Office Supplies, Post. & Tele. 8,500 13,000 40 Publications, Subscr. & Dues 750 750 41 Bonds & Workman's Comp. 1,500 1,100 42 Equipment Maintenance 200 200 43 Appraisal Service 400 400 44 Insurance 12,500 13,300 45 Continuing Education 1,500 1,500 46 Appeals to Court 60,000 56,500 47 Schools & Conferences 3,000 3,000 48 Legal 2,000 2,000 49 Unemployment 2,000 2,000 50 Conference Board 0 0 51 Examining Board 30 30 52 Computer Charge 6,000 6,000 Total Other Expenditures $122,880 $132,280 TOTAL BUDGET $247,140 $260,260 UNENCUMBERED BALANCE - 65,182 - 68,741 TRANSFER FROM SPEC. APPR. FUND - 0 - 4,739 TO BE RAISED BY TAXATION $181,958 $186,780 MAXIMUM LEVY ALLOWED t Maximum assessment expense fund 1,058,998,090 x .00027= $ 285,930 IPERS & FICA Funds = 15,000 jUnemployment Compensation & Tort Liability = 4,000 Maximum for assessment expense fund =$ 304,930 Maximum special appraisers fund 1,058,998,090 x.000405=$ 428,890 Maximum allowed without State approval =$-7TTTEU Maximum emergency fund 1,058,998,090 x .00027 =$ 285,930 (Which requires State Appeal Board approval) Maximum that could be raised by taxation for FY 187 =$1,019,750 LEVIES AND RATES SINCE 1980 Assessment Expense Fund Special Appraiser's Fund Fiscal Year Amount Levied Levy Rate Amount Levied Levy Rate 1979-80 $ 146,050 .26746 ------------- --------- 1980-81 175,930 .29593 ------------- --------- 1981-82 184,145 .30081 $ 61,000 .09592 1982-83 192,960 .28004 15,000 .02177 1983-84 201,186 .27000 98,868 .13000 1984-85 200,278 .22454 73,890 .08284 1985-86 181,958 .18905 ------------- --------- 1986-87 186,780 .17637 ------------- --------- r i s ivaaN[aa\\l\\Fwai1\'a\ia\aCaanwM ,l....ta1\aaw.nN..n.(a..�ifffffen.a'vf.tiw.vf.. f. M1.vFµvAWv�.wwV+ II i V• t'tllt'\tt �� V\i \il`NV V4\'tt�iia�i.uviA'nMINaJ: >YfA-N tiiwnwW..w//e/ti AwI..M'.vY/vAW.t'I`A�NAY�rWAyiV' 1985 REPORT OFFICE OF IOWA CITY ASSESSOR TABLE OF CONTENTS Iowa City Conference Board i Staff of City Assessor's Office, Members of Board of Review and Examining Board Report of City Assessor Personal Property Phaseout Abstract for 1985 Iowa City Assessments Exempt Property as of July 1, 1985 Comparison of Values with Rollback Applied - Comparison of Residential, Commercial and Industrial Values ' Top Taxpayers for Iowa City Comparative Mlllage Rates i � 1 E 3 4-6 7 8 8 9-10 11-12 13 14 _.. Iowa City Assessors Program Division Statement FY '87 is 1 I y.. �M1a�'l4\ilala!�iai\\\lYl\\\aca\\a!axwMlN. J. � r. J�+\a\suarwW�..r.�w/�J. t.vw� .x+W.w. Nm1MYAMwv.a�nw IOWA CITY CONFERENCE BOARD IOWA CITY - CITY COUNCIL John McDonald, Mayor William Ambrisco Larry Balser Darrel Courtney Kate Dickson George Strait Ernest Zuber IOWA CITY SCHOOL BOARD Ellen Widiss, President Lynne Cannon Craig Glcrde Kathleen Hiratzks Randy Jordison Kathryn Penningroth David Wooldrick JOHNSON COUNTY BOARD OF SUPERVISORS Dennis Langenberg, Chairman Harold Donnelly Richard Myers Betty 00..enfels Donald Sehr IOWA STATE DEPARTME14T OF REVENUE Gerald.D. Bair - Director Iowa State Department of Revenue Gene Elch - Director Property Tax Division Brian Bruner - Administrator Property Tax Division Z r ■ ( STAFF OF CITY ASSESSOR'S OFFICE I MEMBERS OF BOARD OF REVIEW AND EXAMINING BOARD I IOWA CITY, IOWA 1985 Dan L. Hudson City Assessor - Dennis J. Baldridge First Deputy Carolyn R. Burke Second Deputy t: Jerry L. Denison Plat Supervisor Dorothy F. Gerdes Clerk IOWA CITY BOARD OF REVIEW Keith A. Wymore, Chairman Appt. 1980 through 1985 William J. Doherty Appt. 1985 through 1990 Gregory J. Downes Appt. 1983 through 1988 Charles A. McComas, Jr. Appt. 1984 through 1989- . '. i Jack L. Yonaush Appt. 1982 through 1987 William F. White, Clerk j IOWA CITY EXAMINING BOARD Alan R. Bohanan Appt. 1982 through 1987 D. Keith Borchert Appt. 1982 through 1987 j Patricia Sueppel Appt. 1980 through 1985 1 I f LEGAL COUNSEL Terrence L. Timmins - City Attorney I I i ,. 3 9 5' ...................s.,,,............,...........,.,.,,......a..,_..........,........Y..........,+......,..- T0: Members of the Iowa City Conference Board FROM: Dan L. Hudson, Iowa City Assessor SUBJECT: 1985 Annual Report - Issued Dec. 27, 1985 The following report covers the activities of this office from January 1, 1985 to date of issue. VALUATIONS 1985 was a real estate revaluation year. The residential property was revalued by Vanguard Appraisals. This i reappraisal was not initiated due to poor performance I measurements, but mostly to get an on site inspection of all residential properties along •with the land value being brought up to the current market. Another result of the reappraisal was to equalize values among neighborhoods. This residential revaluation resulted in an increase of 28.3 million dollars to go along with nearly 12 million dollars of new construction. At the and of the third quarter of 1985, these new residential values were at 96.5% of the selling 'price for 387 normal deed sales. The commercial and industrial properties were revalued in house using the new Iowa Real Property Appraisal Manual issued by the Iowa State Department of Revenue. This commercial and .industrial revaluation resulted in an increase of 15 million dollars to go along with 23.5 million dollars of new construction. These increases in value were once again substantiated by the fact that the Department of Revenue did not issue equalization orders for Iowa City. COURT CASES There were 5 new appeals to District Court filed in 1985 Involving 3 residential, 2 commercial and one personal property. Of the 17 appeals involving 32 parcels filed in 1984, 11 appeals Involving 16 parcels were refiled in 1985. i One appeal consisting of 2 residential parcels was heard on December 10, 1985. No results have been received at this - i time. One other appeal of one commercial parcel has been scheduled for May 1986. No court dates have been set at this time on the other 14 appeals involving 19 parcels. STATE EQUALIZATION ORDERS Iowa City received no equalization orders for 1985 on any class of property. This means that our median sales ratio is within plus or minus S% of the state mandated 100% assessment level. 4 �3� Kms.:....•.,...,,. ...... BOARD OF REVIEW The Board of Review was In session from May 1 through May 31, the day of adjournment. The Board had 164 protests filed with 88 being upheld and 76 denied. The total value of real estate being protested was $77,784,695 with a total requested reduction of $119185,030. The Board allowed a total reduction of $3,518,740. The Board did not have to meet in October for an equalization session because the Department of Revenue Issued no orders for Iowa City. CONTINUING EDUCATION Continuing education is a requirement for the assessor and deputies for their reappointment to their positions. I feel It is also good for the other employees to attend some classes so they can adequately respond to inquiries and questions. During 1985 all five employees in the office attended a course on public relations and complaint handling given by the Institute of Public Affairs. The Assessor attended the following courses and conferences during 1985: NCRAAO Conference C.E. C.E. hrs. ISAA Annual School of Instruction 10.S C.E. hrs. IAAO Conference -------- The First Deputy attended the following courses and conferences during 1985: - NCRAAO Conference 7.S C.E. hrs. ISAA Annual School of Instruction 10.5 C.E. hrs. The Second Deputy attended .the following courses and conferences during 1985: IOR Basic Assessment School 21.0 C.E. hrs. ISAA Annual School of Instruction 10.5 C.E. hrs. The Clerk attended the following course during 1985: IDR Basic Assessment School 21.0 C.E. hrs. S •y�'� 3 i NEW LEGISLATION SF 3S9 - Requires easessors to retain copies of declaration of value forms for 3 calendar years following the year in which the sale took place. SF 355 - This large tax related bill included in part: -The elimination of the tax on personal property. -To make permanent the pollution control exemption which previously had been limited to a period of 10 years. -To allow computers and industrial machinery and equipment to continue to be assessed at 30% of acquisition cost, but to ,eliminate the provision for the State to reimburse the local governments for the revenues lost between the normal depreciated value and the 30% value. -To eliminate from assessment "point of sales computer equipment". SF 452 - Changes requirements for converting mobile homes to real estate and permits reconversion to a mobile home. SF 505 - once again changes the personnel to inspect and methods for inspecting forest and fruit tree reservations. SF 576 - Modifies the partial industrial property tax exemption for industrial, warehouses and distribution centers to now include research -service facilities. APPRECIATION Ny staff and I would like to thank the Conference Board, the Board of Review, the City Attorney and his assistants, and the City Staff for their assistance, cooperation and confidence during the wouldpast year. I ] to recognize and at tills time for their part in a thank staff establishing and maintaining professional standards of the offlce. I�.:isn::a.aJ,,.i,.,.u......i...!�w.w...n.w.::::::..+,....�.�..,..A......................n.......n..f.......nv.r..w.. PERS014AL PROPERTY PHASEOUT In 1973 the Iowa State Legislature began a program to phase out the assessment of personal properly over a period of ten years. In the program, 1973 was established as a base year and all subsequent values must be reduced to a level equal to the 1973 base year. All 1985 personal property values were reduced by 60.30497% to achieve this. After the reduction is made, the actual taxable value is further reduced by the application of personal property tax credits. The current credits total $350,000. Only one such credit may be claimed in the state of Iowa. For this reason most of the actual taxes received from the personal property assessments are paid by the laroer taxpayers to the district or by chain store operations who exceed the credit in personal property valuation. The deadline for filing such a credit is July 1, in the year of the assessemont. New legislation males 1985 the last year for assessing personal properly. The last payments on personal property will be paid In 1986-87 based on the 1985 assessment. This completes the phase out started in 1973. The assessment of computers and industrial machinery is often done through reports similar to the assessment of personal property. However, neither one is subject to personal property credits or the real estate rollbacks. The assessed value Is fully taxable. 7 a r I�.:isn::a.aJ,,.i,.,.u......i...!�w.w...n.w.::::::..+,....�.�..,..A......................n.......n..f.......nv.r..w.. PERS014AL PROPERTY PHASEOUT In 1973 the Iowa State Legislature began a program to phase out the assessment of personal properly over a period of ten years. In the program, 1973 was established as a base year and all subsequent values must be reduced to a level equal to the 1973 base year. All 1985 personal property values were reduced by 60.30497% to achieve this. After the reduction is made, the actual taxable value is further reduced by the application of personal property tax credits. The current credits total $350,000. Only one such credit may be claimed in the state of Iowa. For this reason most of the actual taxes received from the personal property assessments are paid by the laroer taxpayers to the district or by chain store operations who exceed the credit in personal property valuation. The deadline for filing such a credit is July 1, in the year of the assessemont. New legislation males 1985 the last year for assessing personal properly. The last payments on personal property will be paid In 1986-87 based on the 1985 assessment. This completes the phase out started in 1973. The assessment of computers and industrial machinery is often done through reports similar to the assessment of personal property. However, neither one is subject to personal property credits or the real estate rollbacks. The assessed value Is fully taxable. 7 a t. 19B5 ABSTRACT OF ASSESSMENT FOR IOWA CITY Value of Agricultural Land and Structures $ 3,503,787 Value of Residential Dwellings on Agricultural Realty 1,269,610 Value of Residential Lots 6 Buildings 724, 508, 730 Value of Commercial Lots & Buildings 369,476,553 Value of Industrial Lots 6 Buildings 29,145,510 Value of Industrial Machinery 8 Commercial Equipment as Real Estate 29,306,071 -Actual Value of all Real Estate 1,157,210,261 Total Personal Property after Reduction 31,127,932 *Total Real and Personal Property $1,188,338,193 • All the above values are based on the 1985 abstract as reported to the Iowa State Department of Revenue July i, 1985. The 1985 values for Railroad and Utility Property are supplied to the Auditor by the Iowa State Department of Revenue, and are . ,not available at. this time. The value of utilities and railroads in Iowa City for 1984 was $SB,492,411. EXEMPT PROPERTY IN IOWA CITY FOR 1985 Religious Institutions $ 25,529,240 Charitable and Benevolent Societies 31,202,530 Educational Institutions 88,780 Low Rent Housing 3,927,420 Associations of War Veterans 195,060 Pollution Control 61,017 Forest and Fruit 242,069 Partial Industrial 567,850 University of Iowa (As reported by SUI) 352,941,851 %4 9 i i k 1I j VALUE COMPARISONS WITH ROLLBACKS APPLIED STATE STATE ADJ. YEAR ORDERS TYPE VALUE ROLLBACK VALUE 1978- Agricultural $ 2,168,341 .962480 $ 2,086,985 Ag Dwellings 766,750 .962480 737,982 Residential 362,260,123 .782516 ZB3,474,342 Commercial 174,322,260 1.0 174,322,260 Industrial 13,864,630 1.0 13,864,630 M. & E. 16,112,131 1.0 16,112,131 TOTAL $569,494,235 $490,598,330 1979 - 8% Agricultural 2,033,486 .946706 1,925,113 - 8% Ag Dwellings 707,627 .946706 669,915 +34% Residential 500,939,124 .643801 322,505,109 + 92 Commercial 197,369,090 .889872 175,633,227 Industrial 14,286,490 1.0 14,286,490 11. & E. 20,434,123. 1.0 20,434,123 TOTAL $735,769,940 $535,453,977 J980 Agricultural 1,951,348 .990951 1,933,690 Ag Dwellings 676,859 .990951 670,734 Residential 517,484,797 .667355 345,346,067 Commercial 203,280,646 .931854 189,427,883 Industrial 14,SS7,630 1.0 14,557,630 M. & E. 23,844,555 1.0 23,844,555 TOTAL $761,795,835 $575,780,559 1981• +272 Agricultural 2,709,516 .957039 2,593,112 Ag Dwellings 1,282,450 .647793 830,762 Residential 567,708,490 .647793 367,757,586 Commercial 241,461,259 .878423 212,105,124 Industrial 18,061,000 .969619 17,512,289 11. & E. 23,896,352 1.0 23,896,352 TOTAL $855,119,067 $624,695,225 138,: Agricultural 2,715,327 .995711 2,703,681 Ag Dwellings 1,273,010 .672223 855,747 Residential 578,185,848 .672223 388,669,825 Commercial 248,471,689 .916331 227,682,311 Industrial 19,037,660 1.0 19,037,660 11. & E. 33,688,245 1.0 33,688,245 TOTAL $883,371,779 $672,637,469 9 VALUE COMPARISONS CONT. STATE YEAR ORDER TYPE 1983• +56% 1984 Agricultural Ag Dwellings Residential Commercial Industrial ••1.1. 8 E. TOTAL Agricultural Ag Dwellings Residential Commercial Industrial ••it. 8 E. TOTAL STATE VALUE ROLLBACK 3,687,530 .865024 1,458,620 .698754 665,822,880 .698754 309,092,490 .917230 27,788,340 .974567 31,053,824 1.0 $1,038,903,684 3,585,908 .900058 1,480,680 .724832 686,797,678 .724832 334,805,992 .954242 28,430,500 1.0 28,913,025 1.0 $1,084,013,783 ADJ. VALUE 3,189,802 1,019,217 465,246,401 283,508,905 .27,081,599 31,053,824 $811,099,748 3,227,525 1,073,244 497,812,935 319,485,939 28,430,500 28,913,025 $878,943,168 1985• Agricultural 3,503,787 i I I 3,279,271 VALUE COMPARISONS CONT. STATE YEAR ORDER TYPE 1983• +56% 1984 Agricultural Ag Dwellings Residential Commercial Industrial ••1.1. 8 E. TOTAL Agricultural Ag Dwellings Residential Commercial Industrial ••it. 8 E. TOTAL STATE VALUE ROLLBACK 3,687,530 .865024 1,458,620 .698754 665,822,880 .698754 309,092,490 .917230 27,788,340 .974567 31,053,824 1.0 $1,038,903,684 3,585,908 .900058 1,480,680 .724832 686,797,678 .724832 334,805,992 .954242 28,430,500 1.0 28,913,025 1.0 $1,084,013,783 ADJ. VALUE 3,189,802 1,019,217 465,246,401 283,508,905 .27,081,599 31,053,824 $811,099,748 3,227,525 1,073,244 497,812,935 319,485,939 28,430,500 28,913,025 $878,943,168 1985• Agricultural 3,503,787 .935922 3,279,271 Ag Dwellings 1,269,610 .756481 960,435 Residential 724,508,730 .756481 548,077,089 Commercial 369,476,553 .987948 365,023,621 Industrial 29,145,510 1.0 29,145,510 ••1•I. 8 E. 29,306,071 1.0 29,306,071 TOTAL $1,157,210,261 $975,791,998 The adj. values given are not exact but are meant to give a representation of the growth of Iowa City's tax base. • Reassessment year --New acquisitions of computers and industrial machinery assessed at 302 of cost beginning In 1983. H ■ COMPARISON OF RESIDENTIAL, COMMERCIAL ASSESSED VALUES •Prior to 1982 the breakdown of commercial opt. and commercial other is not aaa- APT OTHER YEAR RESIDENTIAL X COMMERCIAL % COMMERCIAL X ! 1978 362,250,123 60.3 1979 500,939,124 65.3 1980 517,484,797 65.3 1981 567,708,490 64.1 91,073,108 12.9 136,609,203 19.4 1982 578,185,848 63.2 99,388,876 10.9 149,082,813 16.3 1983 665,822,880 62.2 125,352,040 11.7 183,740,450 17.2 1984 ., 686,797,678 61.0 141,599,710 12.6 193,206,282 17.2 1985 724,508,730 60.2 162,129,009 13.5 207,347,544 17.2 •Prior to 1982 the breakdown of commercial opt. and commercial other is not aaa- TAXABLE VALUES 1978 283,474,342 54.3 1979 322,505,109 56.9 1960 345,346,067 56.9 1361 .367,757,586 56.1 1982 388,669,825 55.2 91,073,108 12.9 136,609,203 19.4 1983- 465,246,401 55.2 114,976,652 13.7 168,532,253 20.0 1984 497,812,935 54.1 135,120,390 14.7 184,365,549 20.0 1985 548,077,089 53.6 160,175,030 15.7 204,848,591 20.0 •Prior to 1982 the breakdown of commercial opt. and commercial other is not aaa- ■ I 1: l I tit 1i\iaacaJnaN .w.:rrr..........w.....tw........v.v..w.w...uvm4.�n.vnv.vr.•.v AND INDUSTRIAL VALUES TOTAL COMMERCIAL 7 174,322,260 29.0 197,369,090 25.8 203,280,646 25.6 241,461,259 27.2 248,471,689 27.2 309,092,490 28.9 .334,805,992 29.8 369,476,553 30.7 174,322,260 33.4 175,633,227 31.0 189.427,883 31.2 212,105,124 32.3 227,6B2,311 32.3 M,S08,905 33.7 319,48S,939 34.7 365,023,621- 35.7 INDUSTRIAL % OTHER 6.8 25,863,855 4.3 38,176,534 6.4 29,942,864 3.9 38,647,401 5.0 31,514,293 4.0 40,644,636 5.1 33,244,551 3.8 43,861,768 4.9 42,764,895 4.7 45,128,282 4.9 51,406,480 4.8 43,709,714 4.1 60,793,394 5.4 42,534,924 3.8 67,615,591 5.6 41,954,152 3.5 25,863,855 5.0 38,066,410 7.3 29,942,864. 5.3 38,501,316 6.8 31,514,293 5.2 40,620,853 6.7 32,695,840 5.0 43,293,676 6.6 42,764,895 6.1 44,699,373 6.4 50,699,739 6.0 42,772,586 5.1 60,793,394 6.6 42,176,541 4.6 67,615,591 6.6 41,420,462 4.1 available, total commercial value Is shown. I 12 � 0?43 z I, i I iAti is to J..+\\l\Y\Ml\\a\�\laCua+i:.AV.v t:.YtYY\aww.n...M..�.�Ini//.Aw+hY+.w!/+.+.YaY'MYAY.M+aY�� l EXCLUDING UTILITIES ASSESSED BY THE STATE RA14K i k4 EXCLUDING UTILITIES ASSESSED BY THE STATE RA14K NAME TAXABLE VALUE I Procter & Gamble 814,355,764 - 2 i James & Loretta Clark. 13,987,179 3 Old Capitol Center Mall 11,650,130 4 Owens Brush 10,643,019 5 American College Testing 9,648,551 6 Holiday.Inn 7,989,784 7 Seville Corporation 6,974,060 8 H.J. Heinz 6,678,053 9 Sheller—Globe 6,S23,03S 10 Thomas & Betts 6,339,639 11 NCS Learning Corporation 5,839,230 _ 12 Southgate Development 5,592,374 13 H.P. Smith 5,438,331 14 Mocre Business Forms 5,340,782 IS Sycamore Mall 4,623,172 - I6 Mark TU Investors 4,448,078 17 Bon -Aire & Tom Alberliesky 4,394,851 18 Hy Vee 4,338,822 19 Hawkeye Real Estate Investment 4,181,979 20 Lakeside Apartments 3,951,792 21 Iowa State Bank 3,774,613 22 Edwin & Ethel Barker 3,388,642 23 Kon, Shirley & Kurt Renshaw 3,348,276 24 Towncrest Investment Association 3,347,501 25 Plaza Centre One 3,213,953 i k4 1: 4 Av.«�✓..x:�. �t:.:.:.�:.�.!�..n.:..N..i: r:: r: r.s�. a.+....`._.R..:..�...... nvwnx.vn•...v.whn•.�: nyxv..•r� 1 COMPARISON OF TAX RATE PER THOUSAND AS COMPILED BY THE CITY ASSESSOR'S OFFICE, DES MOINES, IOWA. CITY TAX RATE PAYABLE IN, 1983-84 1984-85 1985-86 AI•IES 26.27133 25.BB125 26.91170 - BOONE 33.43154 38.22322 35.25653 CEDAR RAPIDS 31.91058 32.13690 31.43024 CLI14TO14 30.96677 31.54276 31.14527 DAVENPORT 33.02418 34.05818 34.00984 DES 110INE9 36.55262 36.86194 37.60348 . DUBUQUE 32.51865 33.77372 33.74401 F7. DODGE 31.90753 32.26694 31.95539 FT. IIADIS014 27.57293 28.40058 28.91496 . IOWA CITY 31.50201 27.64801 27.48065 KEOKUK .32.98862 33.64070 32.71196 . I•IARSHALLTOW14 31.97133 32.89499 32.06193 MASON CITY 27.40689 28.01799 28.53992 14EWT014 29.13261 30.61077 30.06012 SIOUX CITY 38.20779 38.10312 37.85616 WATERLOO 31.13641 32.019B4 32.18182 14 t 1 i q{ AAtivaaavri.•\\ \alliv4\\.valva!vaan.vw:.vJJ:: rrvv`.vvaaw.vww...(.:.:...:�wri..w•mv.w.vr....ve.uYwxvnvwwi.v IOWA CITY ASSESSORS PROGRAM DIVISION STATEMENT FY '87 DIV151014 PURPOSE: The purpose of the Iowa City Assessors Office is to find, list end value for tax purposes, all real and personal property in Iowa City and maintain records for all parcels in Iowa City. DIVISIONGOALS: To establish values on all commercial-, agricultural, and residential property within the City of Iowa City in the most equitable manner based on actual physical aspects of the property and all the pertinent sales data available; to improve the efficiency: by which these assessments are made; to provide prompt and courteous response toall inquiries for information. GENERAL DIVISIO14 OBJECTIVES: 1• Receive calls and inquiries and dispense Information efficiently and on a timely basis. �• Complete all daily record changes and related duties as received. 3• On a quarterly basis, review In the field all new con— struction and demolitions and by January 1, 1987, make final review -of said construction and demolition. 4. Prepare forms and get signatures for all new homestead and military credits by July 1, 1987. S. Remove all homestead and military credits from the permanent file for those who are no longer to receive the credlt'by July 1, 1987. 6. Prepare and get signatures on all other new annual forms, making sure they are In compliance with all laws and rules, by their statutory dales. 7. Accept formal written protests for the Board of Review from April 16 to flay 5, 1987, and coordinate the Board or Review meetings during May 1987. 15 i i 4 tt i �+1ti\a'aa \aa!aa\a\a\Na\\\ ♦a�\aa!awwwi.v:: xrvv\\a\a\sawn....u�..n✓:Hr.vnrvw\�.w.w..v.�....n1m\.nwyµ..y.+� GENERAL DIVISION OBJECTIVES CONT 8. Hold preliminary meetings and public hearings to adopt the annual budget by March 15, 1987. 9. Prepare and submit annual abstract by July 1, 1987. 10. Prepare and distribute to Conference Board members the annual report by December 31, 1986. NEW DIVISION OBJECTIVES: 1. Continue the program started in 1985 In which we are Physically inspecting the properties which Vanguard was unable to inspect on the Interior. 2. Input property record card data on the new valuation program so that in the future our residential computations can be computer generated. 3. Design and implement programs on the office micro— computer. 4. Review sales as they occur for all classes of property so we may complete our biennial reassessment for 1987, making sure our values stay at the mandated level. f l waM1UMAi+.l tau!'.Ylt\�\\uuaY\vaivuu�uuuwWN: JS:T.'+YYYi auu�w.:.ern.'i"..+il��.uYi/.vi.wA..wr'.'I'MYM1uwuuwN�.' PERFORIIA14CE MEASUREMENTS: The median sales ratio (median) is the middle sales ratio and a measure of the % of our assessment to the actual sales prices. The coefficient of dispersion (C.O.D.) Is a measure of assessment - uniformity based on the degree to which individual sales ratios vary from the median sales ratio. The goal of the Iowa City Assessor is to keep this C.O.D. below 10. A C.D.D. of 10 is considered excellent and attained each year by only 3 to 5% of the 115 assessing Jurisdictions In Iowa. The following table shows the median, C.O.D., and the number of deed sales for Iowa City residential property since the assessments went to the 100% level in 1975. YEAR MEDIAN C.O.D. NO. OF SALES Assessment year 1975 87.10 10.36 682 1976 76.30 11.38 681 " 1977 65.10 12.10 640 Assessment year 1978 74.70 9.83 639 State orders 1979 91.80 9.40 551 1980 87.85 8.69 394 Assessment year 1981 88.90 8.74 393 .1982 87.30 9.38 299 Assessment year 1983 94.00 7.19 544 1984 92.65 7.97 447 Assessment year *1985 96.48 8.83 387 •Date based on 1st 9 months only. 17 a� Z I., �+Ki�\yaaaJ.v aai\ai\iyii\\aaaaaLananwnn.Y+.n.�..:++»aiaa�ww�...(.:.:'i.+:w�++•.+ww.n•.w..�v.�.yaMµvnveyw.•r+ �r • � 1 j I The Following Ss a tabulation of }he commercial properties ! for the same period, DIVISIO14 ANALYSIS: While the program division statement is on the fiscal year, the remainder of the annual report is based on the assessment year which Is the calender year. The annual report has more meaning when based on the assessment year, since the state equalization orders come In a different fiscal 'year than the biennial reappraisal which the orders are to equalize. 18 o?3-z J YEAR. MEDIAN C.0•D• NO, OF SALES Assessment year 1975 84.30 19.75 I 14 _ 1976 72.30 13.19 18 1977 62.90 28.20 27 Assessment year 1978 84.60 13.49 12 State orders 1979 78.00 16.66 15 ". 1980 80.85 22.69 12 Assessment year 1981 87.55 10.07 14 . 1982 78.00 10.25 8 Assessment year 1983 87.85 10.S8 26 1984 80.32 18.16 14 " Assessment year •1985 84.30 13.63 17 *First 9 months only. Because of the small number of sales, one or two had sales " can greatly influence the performance measurements, therefore creating more fluctuation in the measurements. When adding the state appraisals to the sales data, the median Is raised to the point where no orders were needed in the equalization process for 1985. DIVISIO14 ANALYSIS: While the program division statement is on the fiscal year, the remainder of the annual report is based on the assessment year which Is the calender year. The annual report has more meaning when based on the assessment year, since the state equalization orders come In a different fiscal 'year than the biennial reappraisal which the orders are to equalize. 18 o?3-z J s I CITY CONFERENCE BOARD FEBRUARY 25, 1985 City Conference Board: February 25, 1985, 6:35 P.M. in the Council Chambers at toe Civic Center. Mayor John McDonald presiding. Iowa City Councilmembers Present: Baker, Dickson, Erdahl, RMnaid trait, Luber. Johnson County Supervisors Present: Langenberg, Ockenfels. School Board Members Present: None. Others Present: Hudson, Berlin, Karr, Melling, Jansen Tape Recorded: Reel 85-C20, Side 1, Beg. 145. Mayor McDonald stated that a quorum was present. The City moved to accept the minutes of the last Conference Board meeting, January 14, 1985, County seconded, and it was ;passed, 2/0. McDonald declared the public hearing open. There being no comment the public hearing was declared closed. The City moved to adopt the proposed budget, it was seconded by the County. Mayor McDonald declared the motion carried, 2/0. The vacancy on the Board of Reveiw was advertised. There was one application from William F. Doherty. It was moved by the City, seconded by the County to appoint Mr. Doherty to fill the Board of Review position for a six year term ending December 31, 1990. The motion was carried unanimously, 2/0. There being no further business, it was moved by the County, seconded by the City, to adjourn at 6:40 P.M. Motion carried unanimously, 2/0. Z L. .o Clerk, Conference Board r -I t J I CITY CONFERENCE BOARD FEBRUARY 25, 1985 City Conference Board: February 25, 1985, 6:35 P.M. in the Council Chambers at toe Civic Center. Mayor John McDonald presiding. Iowa City Councilmembers Present: Baker, Dickson, Erdahl, RMnaid trait, Luber. Johnson County Supervisors Present: Langenberg, Ockenfels. School Board Members Present: None. Others Present: Hudson, Berlin, Karr, Melling, Jansen Tape Recorded: Reel 85-C20, Side 1, Beg. 145. Mayor McDonald stated that a quorum was present. The City moved to accept the minutes of the last Conference Board meeting, January 14, 1985, County seconded, and it was ;passed, 2/0. McDonald declared the public hearing open. There being no comment the public hearing was declared closed. The City moved to adopt the proposed budget, it was seconded by the County. Mayor McDonald declared the motion carried, 2/0. The vacancy on the Board of Reveiw was advertised. There was one application from William F. Doherty. It was moved by the City, seconded by the County to appoint Mr. Doherty to fill the Board of Review position for a six year term ending December 31, 1990. The motion was carried unanimously, 2/0. There being no further business, it was moved by the County, seconded by the City, to adjourn at 6:40 P.M. Motion carried unanimously, 2/0. 281 aa�. I Z L. Hudson Clerk, Conference Board 281 aa�. I } C �M::..:C0.<.aiaJ...ala.aHv.aa.aa. a.!v..._::: ra...a...a.........4..:...:.....r.,.w�r..v.w:, n.w..rn�.n...,�+......w� (Current members: 5/M 0/F) i' i January 27, 1985 BOARD OF REVIEW - One vacancy - Six-year term January 27, 1986 - December 31, 1991 Keith A. Wymore 2711 Ferndale Drive (served from Jan. 1, 1980 to December 31, 1985) a 3-Z i i! i (Current members: 5/M 0/F) i' i January 27, 1985 BOARD OF REVIEW - One vacancy - Six-year term January 27, 1986 - December 31, 1991 Keith A. Wymore 2711 Ferndale Drive (served from Jan. 1, 1980 to December 31, 1985) a 3-Z - CITY OF IOWA CITY - ADVISORY BOARD/COMMISSION APPLICATION FORM Individuals serving on Boards/Commissions play an important role in advising the Council on matters of interest to our community and its future. Applicants must reside in Iowa City. The City Council announces Advisory Board/Commission vacancies 90 days prior .to the date the appointment will be made. This period provides for a 30 -day advertising period and a 60 -day training period for new members. The training period allows new members to become familiar with the responsibilities and duties of the advisory board/commission before becoming a full voting member. After a vacancy has been announced and the 30 -day advertising period has expired, the Council reviews all applications during the informal work session. The appointment is announced at the next formal Council meeting. Appointees serve as unpaid volunteers. Council prefers that all applications must be submitted to the City Clerk no later than one week prior to the announced appointment date. PLEASE USE A BLACK INK PEN. THIS APPLICATION IS A PUBLIC DOCUMENT AND AS SUCH CAN BE REPRODUCED AND DISTRIBUTED FOR THE PUBLIC. THIS APPLICATION WILL BE CONSIDERED FOR 3 MONTHS ONLY. ADVISORY BOARD/COMMISSION NAME�f_,,,.)ss C+113e420AFRrylje tTERM�aI-�EAR, NAMEETEI A, L )N MD ft C HOME ADDRESS 27uFfRNDAI EINV Fill V F Is your home addresss(listed above) within the corporate limits of Iowa City? I.IE_S OCCUPATION & 7— RFjj EMPLOYER T— PHONE NUMBERS: HOME X38 3 503 BUSINESS �- EXPERIENCE AND/OR ACTIVITIES WHICH YOU FEEL QUALITY YOU FOR THIS POSITION: S)Z THE PAST 13 jrARS A4 MtMQrR nF "HE ZnL)A CiT� L3oARD nF BfVihe GRADjalF nF 1e - ell ra „<ousJiNES$ PASTOwNER OF KFaRaL_CMALI Aua:(rEXPFR;,FW-E. XNi SALES SALE44u0ER✓isieA' �VEa1lS ADMiNi STR81%V6 6E6CU 1 VA AE61O 1TAL WHAT IS YOUR PRESENT KNOWLEDGE OF THIS ADVISORY BOARD? ,'i )(-OARS f-&";r_�F S"VLYG r,N 44C9 `7-TaA PITY /3OARD SFEY1G j. ). f WHAT CONTRIBUTIONS 00 YOU FEEL YOU CAN MAKE TO THIS ADVISORY BOARD (OR STATE REASON i( FOR APPLYING)?,fFpp-r4Vj*T j 11,gV� F�(PFRiiNrF Rslc.0.AnuhD 4!92/!F TNS D iC'ONS �ffq% AipF igE911; 0412 69'TyG ROA.ja MfMRfaS f OF aE'COL•YA l'. % n A R 0 OF REV1gtd, Specific attention should be directed to possible conflict of interest as defined in [ Chapters 362.6, 403A.22 of the Code of Iowa. Should you be uncertain whether or not a C potential conflict of interest exists, contact the Legal Dept. Will you have a conflict of interest? ,_YES V NO If you are not selected, do you want to be notified? )i YES MQ This application will be kept on file for 3 months. D F ruary 1903 OCT 4 -1985 MARIAN K. KARR I CITY CLERK (1)