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HomeMy WebLinkAbout1986-04-08 Info Packet of 4/4City of Iowa City MEMORANDUM DATE: April 4, 1986 TO: City Council FROM: Acting City Manager RE: Material in Friday's Packet Memoranda from the Acting City Manager: a. Recreation Division Deficit - Status Report b. Scott Boulevard Memoranda from the Acting Assistant City Manager: a. Bond Issues - Parking and Wastewater Treatment Financing b. H.F. 340 - Bed and Breakfast Homes Memorandum from the Ad Hoc Risk Management Committee regarding insurance procurement for FY87. Memoranda from the City Clerk: a. Taxicab Stand b. Beer/Liquor License/Conditional Approval - Dan's Short Stop Corp Pagliai's Pizza, King Richards Memoranda from the Department of Public Works: a. Sidewalk Improvements North of the Old Capitol Mall b. Melrose Lake Apartments c. Street and Alley Sweeping - Central Business Area Letter from the President of the Mayor's Youth Employment Board regarding the budget item for restroom facilities at Napoleon Park. Press release regarding public hearing on April 10, 1986, to receive citi; views on the needs of the Iowa City community. Minutes of staff meeting of April 2, 1986. Article: Cities getting self-reliant Official Statement from Evenson Dodge, Inc. re $1,575,000 Parking System Revenue Bonds iii PYA r- Date: To: From: Re: City of Iowa City MEMORANDUM April 4, 1986 City Council Dale Helling, Acting City Manager Recreation Division Deficit - Status Report In the FY85 Budget, an Expanded Service Level Request by the Recreation Division for a major increase in Recreation Programs was approved contingent upon those programs generating sufficient new revenues to fund all increased costs. Revenues were not sufficient to fund all costs in FY85 and revised projections for FY86 indicated that another revenue shortfall would occur in that year. Last December, the estimated revenue shortfall was projected at approximately $156,000. Staff from the Finance Department and the Recreation Division have been reviewing the financial status but the lack of administra- tive staff (in this case both a Recreation Superintendent and a Parks and Recreation Director) has slowed the process of identifying the problem areas and finding solutions to the funding shortfall. The proposed FY87 budget document indicated that it would probably be neces- sary to provide additional funding to the Recreation Division to cover the FY86 funding shortfall. This funding would come from the General Fund year-end balance. Staff is continuing to work on resolving the deficit situation'. Current estimates of the projected revenue shortfall are now between $55,000 and $126,000, depending on revenues. Typically, 50% of their annual revenues come in during the last quarter of the year and is dependent upon participation in the summer program/activities. Therefore, it is ex- tremely difficult to accurately estimate total revenues at this time. Staff is also working to develop a monitoring system which would track reve- nues and expenditures by program and allow for better fiscal control on a program -by -program basis. This will also permit staff to better evaluate which programs do not generate sufficient revenue, are too costly to provide, and/or have a participation level which is too low. It is imperative that the financial situation be resolved by mid -year FY87 and that FY87 not end in a deficit position. It must be noted that the resolution of this problem will most likely require the elimination or reduction of some programs and the possible further increase of some fees. The Recreation Division has always been funded by both property taxes and user fees. In past years, property taxes provided approximately 65% of the total funding for the Division. In the future it may be advisable to arrive at a guideline or policy for what proportion of the Recreation Division budget will be funded from user fees and from property taxes. As previously mentioned, the lack of administrative staff in Parks and Rec- reation has contributed to the difficulty of resolving this deficit problem. Therefore, I feel that it is essential that the Recreation Superintendent position be filled as soon as possible instead of waiting until July 1, 1986. Even if we start working on this immediately, the earliest that the position i z could be filled will be the middle of May. Costs of filling the position would amount to approximately $4,500 during FY86 for salary and benefits. Because such action could result in resolving the financial problems in the Recreation Division much more quickly, i feel that the cost is well justified at this time. bj5/1 6els City of Iowa City MEMORANDUM Bate: April 3, 1986 To: City Council From: Bale Helling, Acting City Manager 1 Re: Scott Boulevard Engineering staff is prepared to begin the design phase for Scott Boulevard which Council authorized for FY87. Construction will be in FY88. As the attached memorandum from the City Engineer indicates, it is necessary that we begin now to establish the exact alignment. For this purpose, the City will retain MMS Consultants, Inc. to perform the required survey work with payment to be made in FY87. A sketch of the proposed alignment as approved by Council last year and af- firmed during your recent discussions is also attached. Note that this sketch includes the proposed angle of intersection of Scott Boulevard with Rochester Avenue. It also illustrates how Scott Boulevard will connect with Lower West Branch Road and with Washington Street. If you have additional questions or concerns regarding this matter, please raise them at your informal meeting on April 7, 1986. bj3/15 cc: City Engineer MR City of Iowa City MEMORANDUM GATE: April 1, 1986 TO: FROM: Dale Helling, Frank Farmer, Acting City Manager� City Engineer , v � G, RE: Scott Boulevard Paving Project - Court Street to Rochester Avenue The Scott Boulevard project is scheduled in the Capital Improvements Program (FY87-91) for design in FY87 and construction in FY88. Acquisition of right-of-way and construction easements required to complete this project are very time-consuming. In order to complete the design, the alignment must be determined and surveyed. A major portion of the design must be completed to determine 'the extent of the necessary construction easements. The attached plat shows the proposed Scott Boulevard alignment and intersecting streets where right-of-way is required. MMS Consultants, Inc. has submitted a proposal to complete the required survey work immediately with payment to be delayed until after July 1, 1986. This will allow Engineering the entire fiscal year to complete the design and acquisition. A copy of MMs' proposal is attached. WE F r - I /ISL\l! L\L �a 0 OYOYL .CALL 1,. I ILVY Y e.e1e uu 1 � "u PROPOSED SCOTT BLVD. ALIGNMENT . 6 446 r City of Iowa City MEMORANDUM Date: April 3, 1986 To: City Council From: Rosemary Vitosh, Acting Assistant City ManageQn,.._.. �fioal Re: Bond Issues - Parking and Wastewater Treatment Financing PARKING REVENUE BOND ISSUE The presale analysis, prepared by Evensen Dodge, for the Parking Revenue Bond issue, will be reviewed at your informal meeting on Monday, April 7, 1986. Mr. Wayne Burggraaff, of Evensen Dodge, and Mr. Kenneth Haynie, City Bond Counsel, will attend that meeting. You will note that the amount of the bond issue has been reduced by $90,000 from $1,665,000 to $1,575,000. This dif- ference will be funded from the Parking Systems fund balance instead of from bond proceeds. In addition, $60,000 will be available from the Parking Systems fund balance as a contingency amount should any further change orders be needed for the parking ramp expansion project. WASTEWATER TREATMENT PLAN FINANCING Staff has started planning the financing for the Wastewater Treatment Facil- ity Project. Extensive discussions have been held with the City's financial advisor, bond counsel and various underwriters regarding the use of a negoti- ated sale versus a competitive bid sale for the bonds. At Monday's meeting, staff, Mr. Burggraaff and Mr. Haynie will brief the Council on the status of the financing package, including a preliminary timetable and a recommendation regarding the use of negotiated or competitive sale. bj4/5 6 IrI% -AI r 0 PRESALE ANALYSIS $1,575,000 PARKING SYSTEM REVENUE BONDS CITY OF IOWA CITY JOHNSON COUNTY, IOWA Proposed Sale Date: April 15, 1986 IA27.86A/7 & �7 I EVENSEN DODGE, INC. T INA N C I A I C ON S U I. T ANT 5 March 26, 1986 Ms. Rosemary Vitosh Acting Assistant City Manager City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 I Dear Ms. Vitosh: Attached is our Presale Analysis prepared in connection with the City's proposed issuance of $1,575,000 of Parking System Revenue Bonds on April 15, 1986. i The Presale Analysis summarizes the purpose of the Bond issue, describes how the Bond issue has been structured, and discusses other aspects related to the marketing of the Bonds. We look forward to a successful offering. � Sincerely, i EVENSEN DODGE, INC. Wa ne S. Burggraa� Senior Vice President /Jgc 36091D5 Tq bef%inneapolis Minnesota 55402 612/338-3535 800/328.8200 800/328-8100 Minnesota ( 44/ r - TABLE OF CONTENTS IA27.8 6A/ 9 10117 -I i Page SUMMARY OF RECOMMENDATIONS . . . . . . . . . . . . . . . . . 1 PURPOSEOF THE SALE . . . . . . . . . . . . . . . . . . . . 1 STRUCTURING OF THE BOND ISSUE . . . . . . . . . . . . . . . 1 PARITYBONDS . . . . . . . . . . . . . . . . . . . . . . . . 2 RATING. . . . . . . . . . . . . . . . . . . . . . . . . . . 2 GENERAL MARKET CONDITIONS . . . . . . . . . . . . . . . . . 3 PENDING LEGISLATION REGARDING TAX EXEMPTION . . . . . . . . 4 SALESCHEDULE . . . . . . . . . . . . . . . . . . . . . . . 7 EXHIBIT A --Debt Redemption Schedule EXHIBIT B --Combined Debt Service EXHIBIT C --The Bond Buyer's Index Graph IA27.8 6A/ 9 10117 -I i PRESALE ANALYSIS $1,575,000 Parking System Revenue Bonds City of Iowa City Johnson County, Iowa Proposed Sale Date: April 15, 1986 SUMMARY OF RECOMMENDATIONS Recommendations and arrangements for the Bond sale have been developed by Evensen Dodge, Inc., after consultation with Acting Assistant City Manager, Rosemary Vitosh, concerning the City's need for bond proceeds to be used for improvements to the City's parking system. Mr. Ken Haynie, Bond Counsel to the City of Iowa City, was consulted on legal matters and procedures relating to the proposed sale. The major recommendation contained herein is that the City issue $1,575,000 of Parking System Revenue Bonds to be sold on April 15, 1986, for the purpose described below. PURPOSE OF THE SALE Proceeds of this Bond sale will provide the City with the funds to make improvements to the Dubuque Street Parking Ramp. Two additional levels will be added to the ramp which will provide an additional 223 parking spaces. The proceeds of the issue are estimated to be used as follows: Project Costs $1,317,000 Reserve Fund 205,000 Issuance Costs 21,500 Discount 31,500 TOTAL $1,575,000 STRUCTURING OF THE BOND ISSUE Several alternatives were considered and discussed with the City before reaching a final decision on the best debt structure for this issue. The structure finally selected provides for repay- ment of the debt over a fifteen year period, as shown in Exhibit A. The structure provides for level debt service payments at a level of approximately $180,000 annually. Exhibit B shows the combined debt service for this issue and the outstanding issue paid out of the net revenues of the parking system. IA27.86A/10 /G �1% it -I The resolution authorizing this sale will provide that the City may call or redeem bonds maturing beginning in 1993 and extending to the end of the issue. This allows the City to call 72.1%, or $1,135,000 of the $1,575,000 of principal if interest rates in the future are lower, and the city can save interest cost by replacing the current debt with lower cost debt. This aggressive call feature has been included to provide the city with more flexibility in recognition of uncertainties associated with pending legislation for tax-exempt bonds. Because of the early call date, a descending call premium has been utilized. Bonds callable in 1992 require a premium of 2.0% with the premium decreasing until 1996 when the bonds will be callable at par. Also, investment bankers and underwriters who bid on the bond issue will be required to submit their bid with coupons in ascending order to minimize debt service in the early years and optimize the potential use of the call feature. The bonds will be offered for sale at a discount of 2% by provision of an underwriters discount. Iowa State statutes permit a municipality to offer an underwriter's discount in an amount not exceeding 2% of the bond issue size. The amount of discount offered relates to the term and difficulty anticipated in selling the issue. The discount permits the successful bidder (underwriting syndicate) to purchase the bonds with specified coupons and to reoffer the bonds at par. If no discount were allowed, the successful bidder would have to bid a higher coupon rate on the bonds to obtain their commission by selling the bonds at a premium. Experience has shown that use of the discount helps make an issue more attractive to purchasers. PARITY BONDS In November of 1985, the City issued $3,795,000 Parking System Revenue Refunding Bonds. The bond resolution for that issue requires that before the City can issue bonds having an equal claim on the revenues of the parking system, as this proposed issue would have, the City must meet a parity test. It must obtain a statement from an independent certified public accountant that the net revenues of the system for the preceding fiscal year (in this case the 1984-85 fiscal year) are at least 1.25 times the maximum debt service on the outstanding bonds plus the projected debt service on the proposed bonds. The City is preparing analyses of 1984-85 parking revenues which are intended to show that this test can be met. RATING The City of Iowa City currently has an "Aaa" general obligation rating from Moody's Investors Service, Inc., the highest rating given by Moody's. The City's 1978 refunded parking revenue bond issue is also rated "Aaa" because it has been defeased by the refunding bonds issued in November, 1985. The rating on the IA27.86A/11 6 e,47 —,Lk, r - city's refunding parking revenue bonds issued in 1985 is "Baa". The rating on the revenue bonds is lower than the City's G.O. rating because the security for the bonds is the revenue of the City's parking system rather than the City's full taxing powers. To enhance marketability, we recommend that the City apply for a rating on this issue. Since the City's outstanding parking revenue rating was issued in October, 1985, the City should expect to receive a similar rating for this issue. We have also explored the possibility of obtaining municipal bond insurance for this issue, but have concluded the issue is an unlikely candidate for such insurance. GENERAL MARKET CONDITIONS A graph dated March 20, 1986, showing the movement of the Bond Bier's Index (BBI) over the last three years is included w ti h this analysis and identified as Exhibit C. It demonstrates general trends in the tax-exempt market which have been quite strong recently. The BBI graph charts the movement of 20 general obligation issues with an average rating of A. The Bond Buyer also publishes an index of 25 revenue bonds maturing in thirty years. The movement of the revenue bond index has been similar to that of the BBI except that the revenue bond index averages approximately 45 basis points higher than the BBI. Both indexes dropped to their lowest levels in more than five years early in March. This decrease in rates is due in part to the scarcity of bonds in the market which has resulted from uncertainties concerning pending tax legislation. However, these uncertainties also make the market more volatile and responsive to daily events. For example, on Tuesday, March 18, Robert Packwood, Chairman of the Senate Finance interestincome pal comitteej d be statementissued pinop the g alternative ond that allu minicinimumbtax increases in the This sfor the sal week causefor oMarch420 basWhil point appears to be unlikely that Packwood's proposal will become law on a retroactive basis, events of this type can exert a strong influence on the market. If this issue were to be sold today, we believe that it would receive a net interest rate in the range of 7.75% to 8.25%. Because of uncertainties in the market we cannot predict what the actual rate of interest will be when the Bonds are sold on April 15. IA27.86A/12 lDl;47 r PENDING LEGISLATION REGARDING TAX EXEMPTION On December 17, 1985, the United States House of Representatives passed H.R. 3838, entitled the "Tax Reform Act of 1985." H.R. 3838 is now pending in the United States Senate. If enacted into law in the form approved by the House of Representatives, this law would, because of its January 1, 1986 effective date, be applicable to this financing. In order to ensure as much as possible the tax exempt status of your financing, the City may be required to covenant in the resolution awarding the sale that the City will comply with the applicable provisions of H.R. 3838 on a continuing basis beginning with the original issuance and delivery of the Bonds. The provisions of H.R. 3838 will affect the type of bonds that can be issued by a municipality, the amount of bonds that may be issued, timing of issuance, and the rates at which bond proceeds may be invested. The law will also create additional, and often complicated, bookkeeping procedures for the City. A summary of the provisions of H.R. 3838 which affect this issue follows: 1. Limitation on Use of Proceeds. Some types of municipal debt wh ch were previously permitted will now be con- sidered "non-essential function bonds." Only certain types of "non-essential function bonds" will be issu- able as tax-exempt debt. Those purposes are for housing for low and moderate income persons, airports, ports, mass commuting facilities, sewage disposal facilities, solid waste disposal facilities, and facilities for the furnishing of water. In all cases, "non-essential function bonds" will be subject to state volume cap limitations and other IRB type restrictions. If 5% or more of the gross proceeds of the issue is loaned to persons other than govern- mental units, the issue will be deemed to be "non- essential function bonds." If 10% or more of the gross proceeds of the issue is used in the trade or business of any person other than a governmental unit, then the issue will also be deemed to be "non-essential function bonds." In order to avoid violating the requirements set forth above, the facilities financed with this issue must satisfy the "public use requirement": that is, they must not be available to a non-governmental user except on the same basis as the general public. 2. The 5% Rule. At least st of the net proceeds of the issue must be expended within 30 days after closing. Failure to comply with this provision would make interest on the bonds taxable from the date of issuance under the proposed legislation. 3. Arbitra a Rebate Re irements. The provisions of H.R. 3838 w 11 also restr ct the yield that can be IA27.86A/13 6 V7 r- earned on the proceeds of the issue in certain cases. The governing factors are the purposes for which the funds are to be used and the amount of time in which proceeds are expended. In certain instances, the earnings on the proceeds of the bonds will be restricted to the yield on the bonds. The yield restrictions are as follows: a. Proceeds used for the acquisition of equipment or land may be invested at an unrestricted yield for 30 days. Unexpended acquisition proceeds after 30 days must be invested in restricted yield securi- ties for a period not longer than three years from the date of issuance. b. Proceeds used for construction costs may be invested at unlimited yields for a period of not greater than the following: (i) all expenditures on the Project equal 100% of the bond proceeds, (ii) the project is completed or abandoned, or (iii) three years. Earnings resulting from the yield in excess of the yield on the bonds must be rebated to the U.S. Treasury. The rebate provi- sion does not apply when all proceeds are expended within six months following the date of issuance. At least 90% of the amount to be rebated must be paid once every five years, the balance to be paid no later than 30 days after the last principal payment is made. C. Up to $100,000 may be earned in a debt service fund in any year without being subject to rebate requirements. 4. Re2ortin Re uirements. The city is also required to f le w th the Internal Revenue Service a statement containing information pertaining to this issue. The statement must be filed not later than the 15th day of the second calendar month after the close of the calendar quarter in which the bonds are issued. The statement must contain the following information: a. Name and address of issuer b. Date of issue C. Amount of the net proceeds of the issue d. Interest rate e. Term f. Face amount of each bond that is a part of this issue IA27.86A/14 5 6117 _iLl r g. Costs of issuance h. Amount of reserves 5. Refunding. H.R. 3838 permits essential function bonds to be advance refunded, but under more restrictive rules. Such rules include the following: a. The original bonds may be advance refunded only twice. b. The advance refunding bonds may not exceed 250% of the principal amount of the original issuance amount. C. The yield on the investments held in escrow for the repayment of the refunded bonds is restricted to the "yield" on the refunding bonds. This "yield" does not reflect costs of issuance or underwriters discount. d. Refunded bonds must be called at their earliest redemption period when the call premium is 103% or less. The above discussion summarizes the provisions of H.R. 3838 as it relates to essential function bonds. As mentioned previously, the City may have to covenant to comply with these provisions at the time that the bonds are issued. This is to ensure prospective underwriters that, if the law is passed in its present form, the bonds will remain tax-exempt. On March 14, a joint statement was issued by the majority and minority leaders of the House Ways and Means and Senate Finance Committees and the Secretary of the Treasury endorsing a postponement of the effective date of tax reform legislation until September 1, 1986 (or the date of enactment of legislation, if earlier). Evensen Dodge will discuss with bond counsel the implications of this statement; it is our recommendation, however, that the City covenant to comply with the provisions of H.R. 3838. It is also possible that when the law is finally passed, it will not be in its present form. At that time, we will review with the City any further changes that need to be made in the City's procedures. IA27.86A/15 N Za e17 _A1 SALE SCHEDULE Tentative Bond Sale Schedule Iowa City, Iowa March 15-26, 1986 Evensen Dodge will analyze and prepare disclosure information required for a Moody's rating and an official Statement. March 25, 1986 City Council sets public hearing. March 27, 1986 Draft copies of an Official Statement will be submitted to City staff and Bond Counsel for review. April 1, 1986 official Statementswillmailed underwriters and otherinterested parties throughout the country. April 7-14, 1986 Potential bidders contacted, questions from underwriters and analysts concerning proposed sale answered. April 8, 1986 Public hearing. City Council consideration and action on resolution authorizing bond sale. April 9, 1986 Official publication of Notice of Bond Sale i April 10, 1986 Official publication of Notice of Bond Sale April 15, 1986 Bond Sale. (Bid opening - 2:00 P.M.; consideration - 6:30 P.M.) April 16 -May 7, Work with Bond Counsel on details concerning 1986 arrangements for closing and delivery May 8, 1986 Approximate date for closing and delivery 7 IA27.86A/16 !,�17 =�u I EXHIBIT A Debt Redemption Schedule i i IA27.86A/17 Ml a e, r - CITY OF IOWA CITY, IOWA $1,575,000 PARKING SYSTEM REVENUE BONDS DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL 1/ 1181 76,923.33 76,423,33 149,615.83 71 1187 65,ODO.OD 6,000000 57,642.50 122,692.50 55,742,50 55,742.50 1/ 1/88 55 742,50 120,742.50 176,485.00 71 1188 65,000.00 6.200000 53,727.50 53,127.50 11 1/89 71 1189 70,000.00 6.400000 53,721.50 151,487,50 .50 177,455.00 1/ 1/90 51,487,50 + 177,915.00 7/ 1/40 75,000.00 6.600000 51,481.50 1264,4487.500 t! 1191 491012.50 + 71 1191 80,000.00 6.800000 49,012.50 124,012.50 178,025.00 46,292.50 46,292.50 1/ 119246 292,50 131,292.50 171,585.00 71 1/42 85,000.00 1.000000 43,317.50 43,317.50 11 1/93 43'317.50 139,317.50 IBI,635.00 7/ 1193 g5,00D.00 7.200000 391891.50 39,897.50 ll I/44 71 1/44 100,000.00 7.300000 39,897.50 134,897.50 179,795.00 36,247.50 36,247.50 11 1195 36 247.SD 141,247.50 1771495.OD 7/ 1/95 105,000.00 7.400060 32,362.50 32,362.50 I/ 1196147 762.50 119,725.00 71 1196 115,000.00 7.500000 32,362.50 28,050.00 28,050.00 11 1/47 153 050.00 181,100.00 71 1/97 125,000.00 1.600000 28,050.00 23,'00.00 1/ 1198 23,300.00 ,3 00. 00 7/ 1/48 130,000.00 7.700000 18,295.00 1 18,245.00 176,600.00 1/ 1/99 77 1/99 145,000.00 7.900000 12 240.00 295.00 112,640.00 ,295.00 161,590.00 1/ 1/ 0 12 640.00 167,640.00 180,280.00 7l I/ 0 155,000.00 7.400000 6,517.50 6,517.50 11 11 1 171 S1T.50 178,035.00 71 1/ 1 165,000.00 7.900000 6,517.50 +517._ . 1,575,000.00 1,120,395.83 21703,395.83 ACCRUED 1,129,395.83 21703,395.83 1,575,000.00 DATED 51 1186 WITH DELIVERY 500 OF S/ 1196 BOND YEARS AVERAGE COUPON 1572 q 572 AVERAGE LIFE N I C S 7.783230 S USING 98.0000000 PREPARED BY EVENSEN DODGE, INC. RUIIDATE; 0I-25-1982 RUNTIME: 13:14:OD Tp4(-/ r -I EXHIBIT B Combined Debt Service IA27.86A/18 r- CITY OF LOVA CITY, INA 11,575,000 PARKING SYSTEM REVENUE BODS -------------------- COMBINED DEBT SERVICE DATE PRINCIPAL COUP011 INTEREST PRIOR 015 FISCAL TOTAL 7/ I/B6 297,696.67 d97Me-67 7/ 1/87 65,000.00 6.000000 /4 6/S&3 451,445.00 '/, 00.93 7/ NOR 65,000.00 6.200000 111,485.00 447,945.00 624,430.00 71 1/89 70,000.00 6.400000 107,455.00 444,020.00 621,475.00 7/ 1/9D 75,000.00 6.60DODO 102,975.00 444,670.00 622,645.00 7/ 1/91 80,000.00 6.800000 98,025.00 454,470.00 632,495.00 7/ 1/92 85,000.00 7.000000 92,585.00 452,570.00 630,155.00 7/ 1/93 95,000.00 7.200000 86,635.00 454,820.00 636,455.00 7/ 1/94 100,000.00 7.300000 79,795.00 455,795.00 635,590.00 7/ 1/95 105,000.00 7.400000 72,495.00 455,045.00 632,540.00 7/ 1/96 115,000.00 7.500000 64,725.00 462,495.00 642,220.00 7/ 1/97 125,000.00 7.600000 56,100.00 457,145.00 638,245.00 7/ 1/98 130,000.00 7.700000 46,600.00 459,BID. 00 636,420.00 7/ 1/99 145,000.00 7.800000 36,590.00 464,600.00 646,190.00 7/ 1/ 0 155,000.00 7.900000 25,280.00 466,180.00 646,460.00 7/ 1/ 1 165,000.00 7.900000 13,035.00 464,500.00 642,535.00 7/ 1/ 2 459,500.00 459,500.00 7/ 1/ 3 456,50D.00 456,500.00 __--_---- ------------ ----------- ----------- 1,575,000.00 1,12.8,395.113 8,049,216.67 10,752,612.50 ACCRUED 1,575,000.00 1,128.395.83 8,049,216.67 10,752,612.50 -------------- -------------- -------------- DATED 5/ 1/86 WITH DELIVERY OF 5/ 1186 BOND YEARS 14,902.500 AVERAGE COUPON 7.572 AVERAGE LIFE 9.462 4 N I C S 7.783230 S USINS 98.0000000 PREPARED BY EVE9SEN DODGE, INC. RUNDATE: 03-25-1986 RUNTIME: 14148:55 6417 4; EXHIBIT C Bond Buyer's Index Graph IA27.86A/19 647 Q m BOND BUYERS INDEX (1983-86) PREPARED BY EVENSEN DODGE. INC - 1 'I .5% 11.0% 10.5% 10.0% 9.5% a v 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% March 20, 1986 1/63 7/83 1/84 7/84 1/85 7/85 1/86 Month — 20 Year G.O. Index THIS WEEK 7.34 LAST WEEK 6.89 r - City of Iowa City MEMORANDUM DATE: April 4, 1986 TO: City Council FROM: Rosemary Vitosh, Acting Assistant City Manages RE: H.F. 340 - Bed and Breakfast Homes There was a question at the April 1, 1986, Council meeting regarding what exemptions were included in H.F. 340. I have included a copy of the bill for your review. M a S. F. H. F. ,3 A/0 i Section 1. Section 170A.2, Code 1985, is amended by adding 2 the following new subsection: 3 NEW SUBSECTION. 13. "Bed and breakfast home" means a 4 private residence which provides lodging and meals for guests, 5 in which the host or hostess resides and in which no more than 6 two guest families are lodged at the same time and which, 7 while it may advertise and accept reservations, does not hold i 8 itself out to the public to be a restaurant, hotel or motel, 9 does not require reservations and serves food only to 10 overnight guests. I 11 Sec. 2. NEW SECTION. 170A.16 EXEMPTION. 12 This chapter does not apply to bed and breakfast homes as j 13 defined in section 170A.2. 14 Sec. 3. NEW SECTION. 1708.20 EXEMPTION. 15 This chapter does not apply to bed and breakfast homes as 16 defined in section 170A.2. j 17 EXPLANATION 18 This bill defines bed and breakfast homes and exempts them 19 from the food service sanitation and hotel sanitation license 20 requirements of chapters 170A and 170B, i 21 22 23 24 25 26 27 28 29 ' 30 31 32 33 34 35 LSB 2253H 71 -1- mw/rr/8 RM -Al r- City of Iowa City MEMORANDUM Date: March 27, 1986 To: Honorable Mayor and City Council From: Ad Hoc Risk Management Committee Dale Helling Rosemary Vitosh Terrence Timmins Kevin O'Malley Sylvia Steinbach Re: Insurance Procurement for FY87 Background: Last year, the Finance Director directed both Arthur J. Gallagher and Company of Downers Grove, Illinois and Penco (through the Insurance Agents of Johnson County) to submit Property/Casualty Risk Management Program proposals. Gallagher and Company was founded in 1927 and has been providing Property/Casualty Risk Management Programs since 1962. Penco was founded in 1981 by former employees of Gallagher & Co. The aforementioned insurance program is underwritten by Lloyds of London. Unfortunately, Lloyds will only submit one bid, on a first come first served basis. Penco beat Gallagher to Lloyds and received the bid. That bid, for the Property/Casualty Risk Manage- ment Program, would not have been as cost effective as remaining with our three year retro with Western Casualty of Fort Scott, Kansas (also through the Inde- pendent Insurance Agents of Johnson County). Council chose to remain with the three year retro. Current• In the past few weeks cities in Iowa and Illinois that are using either Penco or Gallaghers Property/Casualty Risk Management Program have been contacted by Kevin O'Malley. He inquired as to the structure of their insurance programs. The first layer of insurance is basically structured the same, but Gallagher's prices have been lower. The special lines (Public Official, Boiler & Machin- ery, and Airport Liability) are structured to each city's degree of risk reten- tion. Also, a few cities stated that they were planning to "go bare" (not purchase any insurance) as a result of excessive prices or the unavailability of insurance coverage. In FY85 our property and liability insurance premiums were $242,948 and currently the premiums are $743,952. We have budgeted in FY87 approximately $1,099,000. The Ad Hoc Risk Management Committee have concluded that it would be advanta- geous to request a proposal from Arthur J. Gallagher and Company for a Prop- erty/Casualty Risk Management Program in order to compare that proposal to our insurance plan under the retro program with Western Casualty. Unless notified otherwise, we will proceed to request a proposal from Gallagher and Company. tp3/8 � �9 -1 City of Iowa City MEMORANDUM DAN, April 3, 1966 TO! City Council FROft Marian K. Karr, City Clerk vt RE. Taxicab Stand A request has been received from a taxicab driver to purchase the last 20 feet on the east end of the commercial vehicle . loading zone that is located on the south side of the 100 block of Washington Street. If there is interest by Council to pursue this matter please advise me. I will be available for questions at the informal meeting. HM r - City of Iowa City MEMORANDUM DAn, April 4, 1986 TO: Iowa City - City Council FROM: Acarian K. Karr, City Clerk RE: Beer/Liquor License/Conditional Approval FOR YOUR INFORMATION --The following establishments have submitted, after the 90 -day period, the required information which allows them to retain their sunday sales licenses: Dan's Short Stop Corp., 2221 Rochester Avenue Pagliai's Pizza, 302 E. Bloomington King Richards, Sycamore Mall 65-1 I _A� City of Iowa City MEMORANDUM -� DATE: April 1, 1986 TO: Dale Helling and City Council FROM: Frank Farmer, City Engineer � L/�� ` RE: Sidewalk Improvements North of the Old Capitol Mall Attached are plans for improvements to the sidewalk north of the Old Capitol Mall. These improvements are intended to reduce congestion by removing two trash receptacles, three trees and their associated tree grates. A smaller trash receptacle can be attached to an existing light pole to replace the two that are recommended to be removed. Attached is a picture of the proposed receptacle. All concrete and brick replacement will be completed in accordance with the specifications that governed original construction. Concrete around the tree grates will be removed to the nearest joint so that only full panels will be replaced, thereby preventing the patchwork effect. Brick surrounding the western tree grate will be removed as necessary to tie the new brick into the existing pattern. The estimated cost of these improvements is $1,800. Attachments cc: Terry Trueblood ,o S� ■MEMEMENEW am i� _ c_67 ZeECEPr.1�G �s •.cam `�� . `-i 4 Pus' JETS -AI sir cv� „sA!"s HOWARD H-4 LiM. CAPACITYD Pole Mounted, Removable, with H•I Redwood Stained Slats* T The H-4 combines all the utility and unique locking features of s the H•1 with the distinctive architectural beauty of redwood n stained, sturdy wood slats. The H-4 is handsome in any situation, vI indoors or out. It looks neat and clean and suggests that the w area in which it is placed should remain that way. al NEW HOWARD H-10 LARGE CAPACITY Pole Mounted, Removable, with Redwood Stained Slats -- The Hd0 is equal to model H-9 in site. capacity and lotting bracket features for pole or wall mounting. Redwood stained wooden slats around the periphery create a receptacle which is handsome in any environment. It blends padiculady hell with natural settings. The Intermediate capacity and dimen. sions of the H 10 are well suited to a variety of applications. u_ A# Lli% V�r V l Jj1 5 Strapping kits must be purchased separately. with CCA (Chwmate0 Copper Arsenate) mesenatne to deny and temAnl meets the folloemD speuheahonv led. q, LiM. SNP. CIX. SIANDAAD UPS LAT. a DIM[MSIOXs CAP. WD1. PACK COLORS [U111-10 IS"Du 70"N nizil ill i I Rede000 Strapping kits must be purchased separately. with CCA (Chwmate0 Copper Arsenate) mesenatne to deny and temAnl meets the folloemD speuheahonv led. q, r City of Iowa City MEMORANDUM Date: January 21, 1986 To: Neal Berlin, City Manager From: Patt Cain, Associate Planner Re: DRC Recommendation on OCC North Entrance Landscaping At their January. 15 meeting, Design Review Committee members agreed with the City Forester that the three easternmost trees and grates on the north side of Old Capitol Center should be removed and replaced with sidewalk surface. DRC concurred that safety considerations made the location of the trees impractical in that area. Members also felt that the newspaper vending machines should be removed to make more space for pedestrian traffic. Although ORC did recommend that the trees and grates be removed, members stipulated that the sidewalk material used to replace the grates be spe- cifically chosen and installed to match the area surrounding each grate. The Committee felt that this area is very important to the overall appear- ance of the downtown, and replacement of the grates should not result in a 'patchwork' effect. DRC, therefore, asked that the plans and specifica- tions for replacement of the sidewalk material be reviewed by the Commit- tee prior to installation. cc: Chuck Schmadeke Terry Robinson bc2 655 1 -A r City of Iowa City MEMORANDUM Date: January 24, 1986 To: City Council From: Patt Cain, Associate PlannervVI 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 �, Sy —t City of Iowa City MEMORANDUM G Date: March 20, 1986 To: Dale Helling, Acting City Manager From: Patt Cain, Associate Planner Qv Re: Old Capitol Center North Entrance Landscaping At their March 19 meeting, Design Review Committee members reviewed the plans for sidewalk replacement at the north entrance of Old Capitol Center. Frank Farmer and Rick Fosse, Public llorks Department, were present to explain the plans and other possible options. (The attached memos chronicle the history of this item and detail the proposal reviewed.) The Committee complimented the attention given to matching the existing sidewalk materials and approved of the plans as presented, with the recommen- dation that the larger size trash can be purchased but with no "Don't Be a Litterbug" sign and with unstained (just preserved) wooden slats. ycc: Frank Farmer bj4/6 1 4�931 r - City of Iowa City MEMORANDUM DATE: April 3, 1986 TO: City Council and City Manager FROM: Frank Farmer, City Engineer�� RE: Melrose Lake Apartments The attached drawing, a portion of the approved Preliminary and Final LSNRD for Melrose Lake Apartments, shows the area of the lake to be filled to allow construction of the apartments. In conversation with Jim Glasgow, the contractor, he stated that Melrose Lake was lowered to allow the fill to be placed and the footings and foundations to be constructed. Melrose Lake is to be allowed to fill after completion of this work. T/_ /oSS /oSS F, t F YA c� G ) 4t-1- U rte-( Cj EAs enre"r \ �l�l Lf7 1 N V w EX/SrIAIC 25' PRIVATE Delve r-rPAFu46D C,U¢•s �clv(_c t �`• ? r i 1 � � i \I � 1 V .• , . i ' "1�`� \ ��` d% E1.,7T h�n17 (� �,11.VL ._ I I • INLL•TS WE¢ EY 11 pp � J �o'RcP ov(�STeT QFXv �� SAA I 4 � ♦� —r •� ey�C 1 I �• r � i l m9 � i --v � \ \ \� FILL AREA / ems i <y 1// ' c//PAT•o ove¢e Lere %> %. UkA y ✓/�' ;� rotor.le 2 Coy-•CucsC EKISTINb o -T -ST cOe T¢Eo� V^I STZUCTL3Ce4z.0E To 2 »C �1oDAT(R. dy FA�11¢EO / 5C>=1'l T•7 OF JTo2N(• M � WPT6e 11P'+a66tlCNT OYA. Iry ♦ .� �/ 1' a `ELEoV c .2»'.o.2ma5\ J1 Ey�4Xa/TOP WlTE4 L AY N ` N P1Zopn5�t� I I 31 k•: / 10 UNI -j y.u(EL .L%'. ICI O F i U•"""'\ Pu- cn LL U 3 Hq'Ip SYF lWimwu� � .. J.. .r. .'. ....~l l.J//-.� .i- �"I' � inrv� ��p7_ c:: -t.... ..i:� ♦ %.� i ��, 1 � •iii• •, av�_,� :t '. � \'•,\t'" \/h �` = • ^� - �.'. Vii.".. ♦• V �•(I. i \ ♦\�\�"�t ��♦i:w�V��'r�+u�• .G�.�/// y.i~ v �. isd;. 'k.)'.�t_ •ice(] �'!..: �♦:p +.�\��- \ .. _. w. • -/:.- .<''••. h� �,-�� ..�-- i:_. ... �... µms•: ��"t'..�. \ \L• r:•. � ..,. IM.ow/j; b.if.3 /' IM.�r .i11 1'Qnl•uV0 � 1 `�� L'i �C �. \' i / J Ktet_QG.. ln,ce l i•i � ] 1 t, ��] ]-� ' \ \�o -........._........ -�' WATER :''•. i LINE f • 5 l i` ' MELROSE LAKE APARTMENTS. 1965 LSRD (V� � ,;• •:-.ems,♦ t.n ., r City of Iowa City MEMORANDUM DATE: April 1, 1486 TO: Dale HelIing and CitypCgunciI FROM: Chuck Schmadeke (?/j�• RE: Street and Alley Sweeping - Central Business Area The streets and alleys in the central business area are swept weekly from early spring through late fall to control dust. The central business area, for sweeping purposes, includes the area bounded by Court Street, Iowa Avenue, Madison Street, and Van Buren Street. NO- r Mayor's Youth Employment Program SERVING YOUTH OF JOHNSON COUNTY 9 S. Linn Street • Iowa City, IA 52240 319.337-3020 March 19, 1986 Lark Borden, Managing Editor Iowa City Press -Citizen 319 E. Washington Street Iowa City, Iowa 52240 Dear Mr. Borden: This letter is in reference to the article that appeared in the Thursday, March 6, 1986, Iowa City Press -Citizen entitled "Taxpayers Group Forms To Monitor City Budget". The article references a letter written by Attorney David P. Pools on behalf of concerned taxpayers of Iowa City regarding the FY 1987 budget. The letter draws attention to a specific project in Napoleon Park and reads: "The Napoleon Park restrooms project, at $51,860, appears to be an amount of money which would build a nice house for a family in our community. Do bathrooms really cost this much?" Construction of restroom facilities at Napoleon Park has been a major goal of the Parks and Recreation Department for some years. The Iowa Youth Conservation Corps operated by Mayor's Youth Employment Program intends to construct this facility with $26,860 in Community Development Block Grant Funds. $25,000 in state funds, available through the Office for Planning and Programming and matched locally (30%), will provide the opportunity for 18 Johnson County teenagers to learn significant construction skills and receive conservation education. If one were to view this particular line item in the budget, it would appear as though the funds allocated for this building are excessive. However, if one looked further it would be discovered that in addition to fulfilling a critical need for restroom facilities at Napoleon Park. This project provides employment opportunities for teenagers and adults. In addition, as one of 18 such projects throughout the state of Iowa, it provides an opportunity to develop an understanding and appreciation of Iowa's natural environment and heritage. Sincerely, Yt'h far B and President cc: Iowa City Council Committee on Community Needs to S7 a f � CITY OF IOWA CITY CIVIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-5000 April 2, 1986 PRESS RELEASE Contact Persons: Community Development Plan Subcommittee - Karen Kubby, David Leshtz, Roberta Patrick and Mary Nugent, Associate Planner Phone: 356-5248 The Committee on Community Needs (CCN) is inviting the public to a meeting on Thursday, April 10, 1986 from 7-9 p.m. at the Public Library, Room A, to receive citizens' views on the needs of the Iowa City community. The CCN is preparing a three-year plan for Iowa City that will include a summary of the City's community development and housing needs. In addi- tion, the plan will outline short- and long-term community development objectives developed in accordance with the primary objective of the Community Development Block Grant (CDBG) program. The primary objective of the CDBG program is the development of viable urban communities through the provision of decent housing, a suitable living environment and expand- ing economic opportunities, principally for persons of low and moderate income. 6Sg _v� -2- The CCN needs public input, particularly at this time when decreased public funds are forcing us to evaluate and prioritize projects more carefully. Citizens are encouraged to attend this meeting at the Public Library or submit their ideas to Karen Kubby, Chairperson, Connittee on Community Needs, Department of Planning and Program Development, 410 E. Washington Street, Iowa City, Iowa 52240. If you have any questions in regard to the Community Development Plan, please contact the CCN subcommittee at 356-5248. bj3/1 6 s� i MINUTES OF STAFF MEETING April 2, 1986 Referrals from the informal meeting of April 1, 1986, were distributed to the staff for review and discussion (copy attached). Items for the agenda of April 8 were reviewed by the staff. The Acting City Manager requested that Public Works furnish a memorandum for the information packet regarding the ordinance establishing limits on refuse pickup service. The memorandum should include information on who will be losing service and projections on lost revenue. A resolution regarding the swimming pool bonds must be included on the agenda in order for the question to be on the ballet. A brief discussion was held regarding the presentation of the item - whether it should be presented as one question or as two (renovation of City Park pool and new pool at Mercer Park). The City Attorney will contact the City's bond counsel regarding this matter. The Acting City Manager expressed appreciation for the cooperation of the staff during the past month. Pre/pared by: c� Lorraine Saeger 59 Wl =1n =1� Informal Council Meeting DATE: Aori11.1986 PENDING COUNCIL ITEMS W W 0 W w r OW CE o SUBJECT oW REFERRED DUE s25 o COMMENTS/STATUS TO az ¢ W ¢ (a Information in Friday packet regarding Swimming Pool Project 4-1 Parks & Rec operating costs, revenue projections, and percentage of operating costs covered bv user fees on the average, by similar swimming facilities. Fire Protection Mutual Aid 4-1 P&PD/Fire Proceed as drafted Agreement Notify attorney and applicant of Council decision to continue pronioi- Carryout Beer Proposal 4-1 City Attor y tion of such activity. Cash Management Revenues 4-1 Finance Proceed Contact Gene Fisher and Scnool Distric West High Area Walkway 4-1 Acting Citj Manager to work out a cost-sharing solution. Advise on possibility of installing ParKs & Re a light to discourage late night use. Fair Meadows Park 4.1 Police Police patrol area after hours. Is lowering of water level permanent? If so, send Council account of dis- Melrose Lake 4-1 P&PD cussion during LSRD consideration. Check HF 340 (?fre. exemption from Bed and Breakfast 4-1 ACM laws - which laws? Check Max Yocum's property and confer Junk on Property 4-1 H&IS with Legal re, any action City can take. r Informal Council Meeting (continued) rF-..__:, . moc Ppmnimn COUNCIL ITEMS 18 0 W wW DATE W Lr �2D W�w COMMENTS/STATUS SUBJECT REFERRED DUE W o Cr ccaz Schedule informal discusslor in Ad Hoc Transit Committee 4-1 ACM late April. 6� t- THE DFS MOINES REGIS TER/A Crap News/yer 6A / MOL, March 31, 1986 mala C rlsrar8 Jr, PWndrr Jame P. Gaaaw rdeor Amid Gana,JJaaapnprAio JgW"& moi, rdiwav,rdnarial Pops David WJLke Drparprdlt" Gexra nra6Vrer, DepagrrdlmroJLAe rd1wrw Papa THE REGISTER'S EDITORIALS Cities getting self-reliant It is widely perceived that cit- cream in other sources of citks' ies will have to do with less aid from Washington because of the revenue, and by 1984 cities were receiving more revenue from Reagan administration's spend. charges, fees and other mfscella. Ing cuts and the Gramm-Rudman budget buszsaw. The fact is that it neons sources than from the prop. erty tax. In fact, the property tax already has happened, declined slightly as a percentage State and federal assistance to of general city revenues during cities peaked in 1978, when it ac- the 10 -year period. counted for nearly 40 percent of • municipal revenues in Iowa. Another sign of the times re - By 1984 the combined federal. vealed by the study was the fact state aid figure had dropped to 27 that, while total city debt in. percent. To counter that, Iowa's creased 161 percent, interest ex. 956 cities became more seit-ren. Penm went up by 289 percent. ant, but rather than raise proper- Also, while tax -supported gen- ty taxes they did It largely eral-obligation bonds increased through fees, service charges and 70 percent between 1975 and enterprise funds. 1984, revenue bonds, repaid by These trends were spotted by revenues from facilities being fi- che University of Iowa's Institute Dante, Increased by 245 percent. of Public Affairs in a report on lo. Although overall city spending cal -government finances. This re- was up 145 percent, in dollars, Port, according to institute direc- over the past 10 years, when ad - tor Clayton Ringgenberg, goes deeper than heretofore possible, justed for inflation the increase was 25 percent. thanks to more complete comput. er data from tho Census Bureau. The biggest inflation-adjusted It identifies a number of trends: spending increases were for in. terest on debt (up 100 percent) • The most interesting finding and expenses for public health is that Iowa cities already have (up 215 percent) — three-quar- become strikingly self-sufficient, ters of which is for running mu - and largely without raising prop- nicipal hospitals. erty taxes. Between 1975 and 1984 actual revenues generated A worrisome note: The Impact of these trends Is going to fall by cities increased at twice the rale of revenue from state and most heavily on Iowa's smallest federal sources, towns. NearlybalfofIowa'scities' have fewer than 500 residents; -just • Accounting for inflation, rev- they have over 5 percent of enue from federal and state the total population and 3.2 per. sources declined by 23 percent cent of all municipal revenues. between 1978 and 1984 while fees, charges and other non -property- But those towns rely on state, tax revenues generated by cities federal and other government aid for 42 percent of their revenues increased by 59 percent. During that same period Inflation -adjust- whereas the average for all cities is ed property taxes increased only 29.5 percent. Clearly, when the budget ax falls in Washington, it 13 percent. will hit the communities that can • Property -tax increases in the least afford It — Iowa's small 1975.84 period were less than In. farming communities, 66 0 r ..6 In the opinion of Bond Counsel under existing law, interest paid to the holder of the Bonds is exempt from present federal income taxes (See "Pending Federal Tax Legistation'). OFFICIAL STATEMENT (NEW ISSUE) $1,575,000 Parking System Revenue Bonds City of Iowa City, Johnson County, Iowa Bonds Dated: May 1, 1986 Principal Due: July 1, 1987/2001 The City is authorized by Iowa Statutes, Chapter 384, to issue its revenue bonds for the purpose of dditional levels to its Dubuque Street parking facility. providing funds for the construction of two a The Bonds will be limited obligations of the City payable solely from the net revenues of the City's Parking System. The Bonds will be issued as fully registered Bonds of single maturities in denominations of $5,1100 or any multiple thereof, will be dated May 1, 1986, and will mature serially on July 1, in the years and amounts as follows: y_ar Amount Year Amount Year Amount 1987 $65,000 1992 $ 85,000 1997 $125,000 1988 65,000 1993 95,000 1998 130,000 1989 70,000 1994 100,000 1999 145,000 1990 75,000 1995 105,000 2000 155,000 1991 80,000 1996 115,000 2001 165,000 Bonds maturing on or after July 1, 1993, will be subject to redemption and prepayment at the option of the City according to the schedule shown in the Notice of Sale. Interest on the Bonds is payable on January 1, 1987, and semiannually thereafter on each January land July 1 to registered owners of the Bonds appearing of record in the Bond Register as of the close of business on the 15th day of the immediately preceding month. Bids must be for not less than $1,543,500 and accrued interest on the total principal amount of the Bonds. Bids must be accompanied by a certified or cashier's check in the amount of $31,500 payable to the City. The City will act as Bond Registrar/Transfer Agent/Paying Agent. Principal and interest on the Bonds will be payable at the office of the City Controller. The Bonds are offered subject to the legal opinion of Alders, Cooney, Dorweiler, Haynie, Smith & Allbee, Attorneys of Des Moines, Iowa. BIDS RECEIVED UNTIL: Tues2:0P.MApril15,ral Time1986 © Office of the Finance Director Civic Center, Iowa City, Iowa BIDS CONSIDERED: TuesP.MApril 15,ral T me1986 ® 6:0RATING: Application has been made to Moody's Investors Service, Inc. for the Bonds. The date of this Official Statement is April 1, 1986. ■■EVENSEN DODGE, INC. Financial Consultants NO 3608 IDS Tower, Minneapolis, Minnesota 55402 612/338.3535 -A� This Official Statement does not constitute an offer to sell the Bonds in any state or other jurisdiction to any person to whom it is unlawful to make such offer in such state or jurisdiction. No dealer, salesman, or any person has been authorized to give any information or to make any representation other than those contained herein in connec- tion with the offering of the Bonds and, if given or made, such infor- mation or representation must not be relied upon. The information set forth herein has been furnished by the City and other sources which are believed to be reliable, but it is not guaran- teed as to accuracy or completeness by, and is not to be construed as a representation by the City or anyone acting on its behalf. The infor- mation and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale of the Bonds made hereunder shall, under any circumstances, except as stated herein, create any implication that there has been no change in the affairs of the City since the date hereof. The Bonds have not been registered under the Securities Act of 1933, in reliance upon exemptions contained in the Securities Act. TABLE OF CONTENTS Roster of City Officials . . . . . . . . . . . . . . . . . . . . Notice of Sale . . . . official Statement . . . . . . . . . . . . . . . . . . Parking System . . . . . . . . . . . . . . . . . . . . . Financial Consultant . . . . . . . . . . . . . . . . . Rating . . . . . . . . . . . . . . . . . . . . .. . Tax Exemption . . . . . . . . . . . . . . . Pending Federal Tax Legislation . . . . . . . . . . . . : : . . . Litigation . + . + • • • • • • • . . ' ' . . Closing Documents . . . . . . . . . . . . . + . . . . . Certification . . . . . . . . . . . . . . . . . Legal Matters . . . . . . . . . . . . . • • . . . Miscellaneous : . . . . . .. . . . . Appendix A --General Information Concerning the City of Iowa City Appendix B --Bond Resolution Appendix C --Parking Rates Appendix D --Financial Statements Appendix E --Legal Opinion Worksheet Bidsheets ii Page ill iv 1 2 5 5 5 5 7 8 8 8 8 I o, r - CITY OF IOWA CITY, IOWA Current Term Expires Mayor William Ambrisco January, 1988 CITY COUNCIL Larry Baker January, 1988 ., George Strait January, 1988 Ernest Zuber January, 1988 .� Kate Dickson January, 1990 Darrel Courtney January, 1990 i John McDonald January, 1990 ADMINISTRATION !. I Dale Melling Acting City Manager Rosemary Vitosh Acting Asst. City Manager Kevin O'Malley Acting Finance Director Marian K. Karr City Clerk Terrence L. Timmins City Attorney Ahlers, Cooney, Dorweiler, Haynie, Smith k Allbee Bond Counsel --Des Moines, Iowa `'• Evensen Dodge, Inc. Financial Consultants Minneapolis, Minnesota Dee Moines, Iowa I r NOTICE OF BOND SALE $1,575,000 PARKING SYSTEM REVENUE BONDS CITY OF IOWA CITY, JOHNSON COUNTY, IOWA Sealed bids will be received at the office of the Finance Director, Civic Center, Iowa City, Iowa until 2:00 o'clock P.M. on the 15th day of April, 1986, for the bonds hereinafter described. At the hour above named all sealed bids which have been received will be referred to the Finance Director for action by her at a public meeting then to be held in the Council Chambers. Sealed bids will be received until the Finance Director declares the time for the filing of sealed bids to be closed. The sealed bids will be opened and the bonds will then be sold by the Finance Director, subject to approval by the City council at its meeting to be held at 6:30 o'clock P.M. on said date in the Council Chambers, Civic Center to the best and most favorable bidder for cash. THE BONDS The bonds to be offered are the following: PARKING SYSTEM REVENUE BONDS, in the principal amount of $1,575,000, to be dated May 1, 1986, in the denomination of $5,000 or multiples thereof, and to mature as follows: Principal Maturity Amount July let $ 65,000 1987 65,000 1988 70,000 1989 75,000 1990 80,000 1991 85,000 1992 95,000 1993 100,000 1994 105,000 1995 115,000 1996 125,000 1997 130,000 1998 145,000 1999 155,000 2000 165,000 2001 optional Redemption: All of said bonds due after July 1, 1992, will be subject to call prior to maturity in whole or from time to time in part, in inverse order of maturity and within a maturity by lot on said date or on any interest payment date thereafter at the option of the Issuer, upon terms of par plus accrued interest to date of call, plus a premium expressed as a percentage, as follows: Redemption Date Price July 1, 1992 and January 1, 1993 102.0% July 1, 1993 and January 1, 1994 101.5% July 1, 1994 and January 1, 1995 101.0% July 1, 1995 and January 1, 1996 100.5% July 1, 1996 and thereafter 100.0% iv Interest: Interest on said bonds will be payable on January 1, 1987, and semiannually on the 1st day of July and January thereafter. Principal and interest will be payable at the office of City Controller. Lien: The obligation of the revenue bonds and the outstanding $3,795,000 Parking System Revenue Bonds dated November 1, 1985, will constitute a lien on the net earnings of the Municipal Parking Facilities System. Parity Bonds: The City reserves the right and privilege to issue additional revenue bonds from time to time payable from the same source, ranking on a parity with the bonds herein authorized, and the outstanding Parking System Revenue Bonds dated November 1, 1985 in order to pay the cost of future extensions and improvements to said Municipal Parking Facilities System, but that before any such bonds ranking on a parity are issued, there will have been procured a state- ment of an independent Certified Public Accountant, not a regular employee of the City, reciting the opinion, based upon necessary investigations, that the net revenues of the Municipal Parking Facili- ties System, for the preceding fiscal year (with permitted adjustments) were equal to at least 1.25 times the maximum amount that will be required in any fiscal year prior to the longest maturity of any of the then outstanding bonds for both principal of and interest on all bonds then outstanding which are payable from the net earnings of the System and the bonds then proposed to be issued. REGISTRATION The above bonds will be issued in registered form as to principal and interest. The Issuer has designated the City Controller of Iowa City, Iowa as the initial registrar. Payments will be made by check mailed to the address of the owner of the bond as of the record date as shown by the records of the Registrar. Payment of principal will be made upon surrender of the Bond. The Issuer will furnish at its expense to each named owner one bond for each annual maturity. Additional bonds in lesser denominations will be furnished if an owner so requests. Not more than fifteen (15) days after the bond sale date the purchaser shall notify the Registrar of the names and tax identification numbers of registered owners to be shown at the initial delivery of the bonds, showing principal amounts for each annual maturity. otherwise the bonds will be registered in the name of the bidder or in the name of the first participant listed in the bid. BID SECURITY All bids shall be accompanied by a certified check or a cashier's check drawn upon a solvent bank doing business in the United States, in favor of the City, in the amount of $31,500. The good faith check of the successful bidder will be deposited at the time of award and deducted from the purchase price at the time of closing. If the bidder to whom the bonds are awarded withdraws its bid or fails to complete the purchase in accordance with the terms hereof, the Issuer shall have the right in its sole discretion to elect to treat the bid security either as liquidated damages or as a credit against the Issuer's claim for actual damages occasioned thereby. Checks of unsuccessful bidders will be returned promptly. r FORM OF BIDS All bids shall be unconditional except as provided in this notice, for entirean Plus accrued sint rest, and shall1 specify he rate orice not less than9ratescof intereserent of t in conformity to the limitations of the following paragraph. Bids must be submitted on or in substantial compliance with the official bid form provided by the Issuer. The bonds will be awarded to the bidder offering the lowest interest cost, which will be determined by aggre- if gating any orldiscount,le n interest payable by thevethelifeof thbonds in accordancewith therms o each bid presented, and deducting therefrom the premium, if any, stipulated in said proposal. RATES OF INTEREST The rates of interest specified in the bidder's proposal must conform to the limitations following: 1) All bonds of each annual maturity must bear the same interest rate. 2) Rates of interest bid must be in multiples of one-eighth or one -twentieth of one percent. 3) Each rate of interest specified for bonds of any annual maturity shall not be less than a rate of interest specified for any earlier maturity. DELIVERY The bonds will be delivered, without expense to the purchaser at any mutually acceptable bank and trust company anywhere in the continental United States, against full payment in immediately available cash or federal funds. The bonds are expected to be delivered within thirty days after the sale. Should delivery be delayed beyond sixty days from date of sale for any reason except failure of performance by the purchaser, the purchaser may withdraw his bid and thereafter his interest in and liability for the bonds will cease. (When the bonds are ready for delivery, the Issuer may give the successful bidder five working days notice of the delivery date and the Issuer will expect payment in full on that date, otherwise reserving the right at its option to determine that the bidder has failed to comply with the offer of purchase.) CUSIP NUMBERS It is anticipated that CUSIP numbers will be printed on the bonds. In no event will the Issuer be responsible for or Bond Counsel review or express any opinion of the correctness of such numbers, and incorrect numbers on said bonds shall not be cause for the purchaser to refuse to accept delivery of said bonds. QUALIFIED TAX-EXEMPT OBLIGATIONS These Bonds are "essential function bonds". The issuer does not expect to issue more than ten million dollars of bonds this year. Thus, the Bonds are expected to be "qualified tax-exempt obligations" when held by an Iowa Bank and therefore may be treated as if acquired before January 1, 1986. vi G 6/ LEGAL OPINION Said bonds will be sold subject to the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith G Allbee, Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together with the printed bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of i' documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the bonds. The opinion will be printed on the back of the bonds. The successful bidder will also be furnished, without cost, with a separate opinion of bond counsel with respect to the effect of certain pending federal tax legislation, if enacted, applicable to the bonds. RIGHTS RESERVED The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the city Council of the city of Iowa City, Iowa. city clerk of the City of Iowa City, Iowa Vii -1 r Official Statement $1,575,000 Parking System Revenue Bonds City of Iowa City Johnson county, Iowa INTRODUCTION The purpose of this Official Statement (including all appendices) is to set forth certain information relating to the sale of $1,575,000 amount of Parking System Revenue Bonds (the Bonds) of the City of Iowa City, Johnson County, Iowa (the City). All references to and sum- maries of certain provisions of the laws of the State of Iowa and any other documents referred to herein do not purport to be complete and are qualified in their entirety by references to the complete provi- sions thereof. This Official Statement is not to be construed as a contract or an agreement between the City and purchasers or holder of any of the Bonds. PURPOSE AND AUTHORITY The Bonds are issued pursuant to Iowa Statutes, Chapter 384, for the purpose of financing the construction of two new levels to the City's Dubuque Street parking ramp. The project will result in the addition of 223 additional spaces to the ramp. SECURITY The Bonds will be limited obligations of the City payable solely from the net revenues of the City's Parking System. Included as Appendix B to this Official Statement are pertinent provisions of "A Resolution Authorizing and Providing for the Issuance and securing the Payment of $1,575,000 Parking System Revenue Bonds. . . It 661 THE IOWA CITY PARKING SYSTEM The City operates a municipal off-street and on -street parking system in the downtown area. The system includes two ramps, eight off-street lots, and on -street meters, a total of 2,710 spaces. The proceeds of the Bonds will be used for the construction of two new levels to one of its existing ramps. The construction will be completed in May 1986, and will add 223 spaces to the ramp. The system is operated by and parking rates are established by the City Council. Table 1 presents statements of revenue and expenses for the parking system for the years of 1982 through 1985, which have been compiled from the City's audited financial reports. They have been organized in such a manner as to facilitate year to year comparisons. Table 2 summarizes the budget for the current year. Table 3 sets forth the debt service coverage of the system. Table 4 presents projected debt service requirements of the system. TABLE 1 STATEMENTS OF REVENUE AND EXPENSES (Fiscal Years Ended 6-30) 8 6U�01 1985 1984 1983 1982 REVENIE: Charges for services and use of property $1,433,083 $1,108,615 $1,017,715 S 874,629 Miscellaneous 505 902 2,531 31,433,588 $1,109,517 1,017,715 $ 877,160 EXPENSES: Personal services 535,922 $ 455,607 $ 392,49D S 333,401 Commodities 79,030 36,564 12,883 23,848 Services and charges 264.846 222,133 360.774 193.036 S 879.798 $ 714.304 $ 766,147 $ 550.285 Operating income (loss) before depreciation S 553,790 $ 395,213 251,568 326,875 Depreciation 247.028 240.390 240,771 170,538 Operating income (loss) 3 306,762 S 154,823 $ 10,797 S 156,337 NONOPERATING INCOME (EXPENSES): Gain (loss) on disposal of fixed assets -- (1,524) -- -- Operating Grants -- -- -- 5,006 Interest Income 172,176 134,348 114,633 177,311 Interest Expense (318.865) (327.26 (335,484) (342.834) Intone (loss) before operating transfers 160,073 (39,619) (210,054) (41180) OPERATING TRANSFERS IN (NET) (263,812) - Net Intone (loss) (103,739) (39,619) (210,054) (4,180) ) Depreciation of assets acquired by contributed capital to reduce contributed capital Increase (decrease) in retained earnings (103,739) (39,619) (210,054) (4,180) RETAINED EARNINGS (DEFICIT), BEGINNING 4,139.032(1) 4,274.006 4.484,060 4.488,240 RETAINED EARNINGS (DEFICIT), ENDING $4.035,293 34,234,387 34,274.006 $4,484,060 (1) Restated 8 6U�01 I 3 -t 7 TABLE 2 1985/86 Parking System Operating Budget Parking Fines • Interest Income $ 175,000 Building Rentals 150,000 Parking Ramp Revenue 6,000 Other Parking Revenue 1,079,083 General Fund - Misc. 517,875 Miscellaneous 4,000 500 Total Receipts $1,932,458 Personal Services Commodities 561,290 Services and Charges 21,246 Capital outlay' 232,345 Transfers 20,600 _1,223,223 Total Disbursements 52,058 704 TABLE 3 Parking Revenue Bond Coverage Natal Net Revenue YearRevenue Available For Exments Expense Debt Service Debt Servfce Re of re Principal Interest Total Coverage Ae�uel(i) -76 S 320,494 S 64,931 S 255,563 $ 1975-77 1977-78 -- 571,060 88,822 482,238 $ -- $ 1978-79 574,708 109,592 465,716 553,675 7979-80 719,946 433,729 661,389 133,344 528,045 - '" 1980-81 873,327 355,284 578043 �_- 371,222 371,222 7,4 1981-81 1,059,47 ,7 550,285 509,192 342,665 342,665 1,5 i 1982-83 7983-84 1,132,348 766,147 366,201 105,000 342,665 34T,665 335,483 1,5 , 1984-85 1,243,865 714,304 529,561 115,000 1,6059764 879,798 440,483 331,290 446,290 0.8 1.2 725,966 120,000 323,065 443,065 1.6 Pro ected 1985-86 7986-87 1,932,458 835,481 1,096,977 1987-88 29254,020 960,887 1,293,133 2,298,000 7,028,149 165,000 668,419 486,061 651,061 1.6 2.0 1,269,851 170,000 454,430 624,430 2.0 (1) As compiled from the City's audited financial statements 3 -t 7 I 01 TABLE 4 Projected Debt Service Requirements Fiscal Year Ending This Issue June 30 Outstanding Principal Interest Total 1986 $ 297,697 $ 297,697 1987 451,445 $ 65,000 $ 134,616 651,061(2) 1988 447,945 65,000 111,485 624,430 ' 1989 440,020 70,000 107,455 621,475 1990 444,670 75,000 102,975 622,645 1991 454,470 80,000 98,025 632,495 1992 452,570 85,000 92,585 630,155 1993 . 454,820 95,000 86,635 636,455 " 1994 455,795 100,000 79,795 635,590 1995 455,045 105,000 72,495 632,540 1996 462,495 115,000 64,725 642,220 1997 457,145 125,000 56,100 638,245 1998 459,820 130,000 46,600 636,420 1999 464,600 145,000 36,590 646,190 2000 466,180 155,000 25,280 646,460 . 2001 464,500 165,000 13,035 642,535 2002 459,500 459,500 456,500 2003 456,500 $8,049.211 $1,515,000 51,128,396(1) $10,752,613 (1) Calculated with an estimated net interest rate of 7.788. equals (2) Maximum projected debt service. 1.25 times this amount $813,826. i 1 4 FINANCIAL CONSULTANT Evensen Dodge, Inc., Minneapolis, Minnesota, has acted as Financial Consultant to the City in connection with the issuance of the Bonds. Requests for information concerning the Bonds should be addressed to Evensen Dodge, Inc., 3608 IDS Tower, 80 south Eighth Street, Minneapolis, Minnesota 55402 (612/338-3535). RATING A rating review has been requested for the Bonds by Moody's Investors Service, Inc. A rating is subject to withdrawal at any time; with- drawal of a rating may have an adverse effect on the marketability of the investors should anexplanation with the thesignificance agency the The rating, C tan y's outstanding parking revenue bonds are rated "Baa" by Moody's Investor's Service, Inc. TAX EXEMPTION In the opinion of Bond Counsel, under existing law, interest paid to the holder of the Bonds is exempt from federal income taxes. See "Pending Federal Tax Legislation" below. PENDING FEDERAL TAX LEGISLATION On December 18, 1985, the U.S. House of Representatives passed H.R. 3838, The Tax Reform Act of 1985 (the "Bill"), which has an effective date of December 31, 1985, and affects tax exempt bonds issued after 1. that date subject to certain transitional provisions. The Bill is pending in the Senate where it is subject to amendment before being voted upon for final passage. If the Senate passes a different version of the Bill which is not accepted by the House, it will be referred to a joint House and Senate Conference Committee and may be amendedfurtor may not be d become re olution in ttrucd he Chairman andprankingassed n law. A Houseminority members of the House Ways and Means Committee and the Senateissue ca Committee, together with the Secretary of the Treasury, to statement by December 31, 1985, postponing the effective date of "selected items" until January 1987 where necessary to "reduce the adverse economic effects which might otherwise be caused by uncertainty as to the date of final enactment". A joint statement was issued on March 14, 1986, providing for a delayed effective date of September 1, 1986, or date of enactment, whichever is earlier, with certainrespect to Senate s passed non-binding resolution anoted oncallingfor adelea ay in alleffectivedates. a The Bill places certain restrictions on state and local government obligations which do not exist under present federal tax law. to be impacts of the Billcsh uldoitsp sssboth houses tand beiod concerning signed by the President. (pO 70 The Bill is subject to amendment in the Senate and subject to further amendment in the House of Representatives before its final passage. Therefore, no assurances can be given that the Issuer will be able to comply with all provisions of the Bill as finally amended and passed. A failure to meet the required "use" tests (effective date to be September 1, 1986, or earlier enactment date of the Bill) under the Bill, as amended, could retroactively eliminate the tax exemption of interest on the bonds. The Bill generally denies banks, thrift institutions, and other financial institutions a deduction for that portion of the taxpayer's interest expense which is allocable to tax exempt obligations acquired after December 31, 1985. However, a special rule is provided under which any qualified tax-exempt obligation acquired by a financial institution during calendar years 1986, 1987, or 1988 is treated as if acquired before January 1, 1986. Qualified tax-exempt obligations for this purpose include any bond issued during calendar years 1986, 1987 or 1988 which (1) is not a nonessential function bond, as defined in the tax-exempt bond provisions of the bill, (2) is acquired by a financial institution authorized to do business in the State of the bond issuer, and (3) is designated by the issuer as either (a) a tax anticipation note with a term not exceeding 1 year (qualified tax anticipation notes), or (b) part of an issue not exceeding $3 million (including other issues having a common purpose) and issued to provide qualified project bond financing, including financing for "essential functions" and other nonprofit public projects. Not more than $10 million of aggregate obligations may be designated for these purposes by any issuer during any calendar year. The issuer will so designate the Bonds of this issue. Under the Bill, property and casualty insurors will be required to reduce deductible underwriting losses by a portion of interest received on tax-exempt bonds and will be required to include interest on tax-exempt bonds for purposes of computing tax on net gain from operations. The Issuer will covenant to comply with the Bill as modified by the Joint Statement if enacted in a form applicable to the Bonds so as to maintain the tax -exemption of the Bonds. The bond resolution will include the provisions following: In order omaintain eexemption ral income taxes of interest on the Bondsand for no tf other purp purpose, the the Issuer covenants to comply with the provisions of H.R. 3838, the tax reform act of 1985 (the "Bill") passed by the U.S. House of Representatives on December fective provided, lhowever', that prior to fa actment aDecember theBill, � ,theIssuer reserves the right to accept the extended effective dates of certain of its provisions as provided in the Joint Statement of the leaders of the House ite and te the Treasury yDepartment,s iss edCommitMarcht14,he s19 6. Finance n� TheIssuermay treat the Joint statement as effective to extend the effective date of the 6611 R7 =1� I provisions indicated until it is modified or withdrawn. Until and unless and except to the extent in the opinion of bond counsel the following are not necessary to maintain the tax-exempt status of the Bonds, the Issuer makes the following covenants, representations and warranties with respect to the Bonds: 1. The Issuer represents that except for use as a member of the general public, the proceeds of the bonds will not be used directly or indirectly in any trade or business carried on by any person other than Issuer or used directly or indirectly to make or finance loans to persons other than governmental units. 2. The Issuer will submit in a timely manner all reports, accountings and information to the Internal Revenue Service and will take whatever action necessary within its power to assure the continued tax exemption on the bonds. 3. In the event the federal law applicable to the Bonds after the consideration of the Bill imposes requirements different from the provisions of the Bill retroactively effective to the time the Bonds are issued, the Issuer will comply with the applicable law and regulations in order to maintain tax exemption with respect to the Bonds. 4. For the sole purpose of qualifying the Bonds as "qualified tax exempt obligations" pursuant to Section 802 of the bill, the issuer does hereby designate the Bonds as such and represents that the reasonably anticipated amount of qualified tax exempt obligations which will be issued during the calendar 1986 year will not exceed Ten (10) Million dollars. Section 15. Amendment of Resolution to Maintain Tax Exem tion. This resolution may be amended w thour. the consent of any owner of the Bonds for the sole purpose of taking action necessary to maintain tax exemption with respect to the Bonds under applicable federal law or regulations. LITIGATION There is no litigation now pending or, to the knowledge of city officials, threatened which questions the validity of the Bonds or of any proceedings of the City taken with respect to the issuance or sale thereof. It is the opinion of the City Attorney, based upon the past experience of the payment of claims and judgment amounts, that there are pre- sently no outstanding claims, litigation, impending litigation or contingent liabilities which would exceed the funds accumulated for this purpose and funds currently appropriated by the city Council for these purposes, and that outstanding claims and suits would not materially affect the financial position of the City as of the date of this official statement. 4W _A� CLOSING DOCUMENTS Simultaneously with the delivery of and payment for the Bonds by the original purchasers thereof, the City will furnish to the original purchasers the customary closing documents in form satisfactory to Bond Counsel. CERTIFICATION The City will furnish a statement to the effect that this Official Statement, to the best of its knowledge and belief as of the date of sale and the date of delivery, is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made herein, in light of the circumstances under which they were made, not misleading. LEGAL MATTERS Legal matters incident to the authorization and issuance of the Bonds are subject to the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, of Des Moines, Iowa, Bond Counsel, as to validity and tax exemption. The opinion, which will be substantially in the form set forth in Appendix E attached hereto, will be printed on the back of the Bonds. Bond Counsel has not participated in the preparation of this Official statement. MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement by its Acting Assistant City Manager has been duly authorized by the City. CITY OF IOWA CITY, IOWA BY /s/ Rosemary Vitosh Acting Asst. C ty Manager 6(,/ W r K APPENDIX General Information Concerning the City A GENERAL INFORMATION Iowa City, Iowa was founded in 1839 on the banks of the Iowa River and is located in southeastern Iowa approximately 115 miles east of Des Moines, 20 miles south of Cedar Rapids and 55 miles west of Davenport. The City is the seat of Johnson County and the home of the State University of Iowa which is the oldest and largest educational institution in Iowa. It is the eighth largest City in the State. GOVERNMENT AND PUBLIC SERVICES The City is governed by a seven member Council and each member serves a four year term. Elections are held every two years allowing for continuation in office of at least three members at each biannual election. The Council members are elected at large but three members are nominated from specific districts and the other four are nominated at large. The Mayor is elected by the council from its own members. Since 1951, the Council has unified its administrative functions through its City Manager who supervises 418 full time and 64 part time municipal employees including a police force of 54 sworn personnel and a fire department of 50 fire fighters. The City owns and operates its water supply and distribution system and sewage collection and treatment system (with secondary treatment provided). Virtually the entire City has separate storm and sanitary sewers. A municipal off-street and on -street parking system in the downtown area is operated by the City. Since 1971, the City has been operating a transit system. REGIONAL SIGNIFICANCE OF IOWA CITY Easy access to Iowa City is provided by a diverse transportation network. The Cedar Rapids Airport, located about 20 miles from downtown Iowa City, is served by a number of national and regional air carriers. Rail service is provided by the mainline of the Chicago, Rock Island and Pacific Railroad and by a shortline connecting Iowa City and Cedar Rapids. This connects with mainlines of the Milwaukee Road, the Illinois Central Gulf, and the Chicago and North Western. Inter -city truck and bus lines operate to and through Iowa City, which lies immediately south of Interstate Route 80, the main east -west interstate highway through Iowa. Chicago is less than four hours away via the Interstate Highway System. The residents of Iowa City enjoy the benefits of having a major institution of higher education located in their City. The State University of Iowa sponsors many cultural events which, in addition to the University's athletic programs, furnish Iowa City residents with year round activities and entertainment. The University was founded in 1855 and its current enrollment is approaching 30,000. It also provides employment for more than 15,000 residents of the City. 661 r EMPLOYEE RELATIONS AND PENSION PLANS A number of the City's employees are represented by collective bargaining units. Police Department employees are represented by the Police Labor Relations organization of Iowa City whose agreement with the City extends through June 30, 1987. Fire fighters are represented by the Iowa City Association of Professional Fire Fighters, a unit of the International Association of Fire Fighters. Their contract expires June 30, 1986. Most other full-time city employees are members of AFSCME whose contract extends through the 1987 fiscal year. The City contributes to two local pension and retirement systems and to the Iowa Public Employee Retirement System (IPERS) which is administered by the State of Iowa. All of the systems are contributory and all permanent employees must participate in one of the systems. The local systems are administered by a local board which has three members appointed by the City Council and four members elected by the participating members. They are regulated by Iowa statutes. The City acts as custodian for the assets of the local systems. Following is a table indicating the systems, the employees covered, and the allocation of the City's covered payroll $9,045,603, for the year ended June 30, 1985: Number of stem Employees Covered Covered Payroll Eaployees TOWI: Fire All fire civil service employees $1,203,434 50 Police An police civil service employees 1,387,021 54 State, IPFI75 All other permanent employees 6,455,148 374 $9,045,603 478 (aG/ r ECONOMIC AND DEMOGRAPHIC INFORMATION POPULATION Table 5 shows the population of the City as recorded in the past three censuses. TABLE 5 Population Statistics City of Iowa City 1985 (estimate) 52,400 1980 50,508 1970 46,850 1960 33,433 BUSINESS AND INDUSTRY Iowa City's economy is built upon the strength of education, medical services and diversified manufacturing. The largest employer is the University of Iowa with over 15,000 employees. The University of Iowa Hospitals and Clinics is the largest University -owned teaching medical center in the United States. Together these resources provide a very stable employment base. In addition, the City has a significant number of private employers which have a history of providing stable and increasing employment in the community. Iowa City's major private industries are (major product in brackets): Sheller—Globe (automotive products), Owens Brush (tooth and hair brushes), American College Testing (educational programs and testing services), Proctor & Gamble (toilet goods), National Computer Systems (test scoring and computer services), Moore Business Forms (printer business forms), Thomas and Betts (computer and electrical parts). The major employers in the Iowa City area are presented in Table 6. TABLE 6 Principal Employers Employer Business/Service Employees University of Iowa Iowa City Community School District VA Hospital Sheller Globe Corporation City of Iowa City National Computer Systems Mercy Hospital American college Testing Owens Brush Procter & Gamble Educational Services 15,622 Educational Services 1,181 Health Services 1,127 Automotive Products 1,080 Government 880 Test Scoring and Computer Services 672 Health Services 649 Educational Programs and Services 487 Tooth and Hair Brushes 450 Toiletries 450 66/ a al Table 7 lists the annual average unemployment rates for the Iowa City SMSA as compared to the State of Iowa and the United States for the years 1981-1985. TABLE 7 Unemployment Statistics State Iowa City of Iowa United States Labor Force Rate Rate Rate 1985 50,200 3.14 7.94 7.24 1984 49,800 3.24 7.14 7.24 1983 47,040 3.74 8.24 9.64 1982 45,980 4.24 8.54 9.74 �. 1981 44,620 4.74 6.94 7.64 GENERAL OBLIGATION DEBT As of March 31, 1986 the City had six general obligation bond issues outstanding in the aggregate principal amount of $15,200,000. The debt service levy on each of these issues is abated by enterprise or special assessment revenue. The city's outstanding general obligation debt is rated "Aaa" by Moody's Investors Service, Inc. REVENUE AND SPECIAL ASSESSMENT DEET As of March 31, 1986 the City had outstanding $800,000 in pollution control revenue bonds, $706,000 in water revenue bonds, $3,795,000 in parking system revenue bonds and $195,000 in special assessment bonds. These bonds are not general obligations of the City. FINANCIAL REPORTS YThe City's financial reports are audited by an independent accountant. The City maintains its books using the cash basis of accounting. Its audited financial statements are issued in conformity with generally accepted accounting principles. Copies of the City's audited financial statements for the fiscal years ended June 30, 1982 through June 30, 1985 are available from Evensen Dodge, Inc., the City's Financial consultant, upon request. J APPENDIX B Bond Resolution 9 'r i a r- Memberintroduced the following THE ISSUANCE EnAND1SECURINGSOTH ETPAYMENTHOFIS1N575NPROVIDINGZIG AD 000PARKING FOR SYSTEM REVENUE BONDS OF THE CITY OF IOWA CITY, IOWA. UNDER THE OPRVISIONS OF THEFO OPAYMENT OF SA IDC BONDSITY O'DEand moved its ad optioF IOWA, ANn FMemberETHOD seconded the motion to adopt. The roll was called and the vote was: AYES: NAYS: Whereupon the Mayor declared the following Resolution duly adopted: A RESOLUTION AUTHORIZING AND PROVIDING FOR THE PARKINGESYSTEMAND ECURING REVENUETHE BONDSYOFNTHEFCITY5 OF,000 IOWA CITY, IOWA, UNDER THE PROVISIONS OF THE CITY CODE OF IOWA, AND PROVIDING FOR A METHOD . OF PAYMENT OF SAID BONDS WHEREAS, the City Council of the City of Iowa City, Iowa, sometimes hereinafter referred to as the-Issuer",and rentalsf or has services heretofore established charge, which are and will continue to be collected as system revenues ' of the Municipal Parking "Facilities andssaidimes revenues have hereinafter referred to as the Systemem""I fa ment of Revenue ises; 1, not been pledged and are available or s; anyd Bonds, subject to the following prem o issue its Revenue Bonds to the WHEREAS, Issuer proposes tthe extentf$1,575,000 for tul rth in Section 3 ofrOof dthisyResof lution; and ,. the project 4iueR, there have been heretofore issued Parking System Bon Revenue Bonds, part of which remain outstanding and are a lien on the net revenues of the System. In the Resolution authorizing the issuance of the may bebonds it issuedon as parity vided that additional Revenue Bondsnds mimprov- with� said outstanding bonds, for the covided£thatuthecehase ments and extensions to the System, p ; been procured and placed on file with the Clerk, a statement complying with the conditions and upon theroin imposed upon the issuance of said parity bonds -Z- ot WHEREAS, a statement of a certified Pubiacedic conu filet in the in the regular employ of Issuer, has been p office of the clerk, showing the conditions and la[dt[olthe of said Resolution, dated November 4, 1985, with reg _ sufficiency of the revenues of the System to permit the dditional Revenue Bonds ranking on a p issuance of aarity with have been met and satisfied as the outstanding bonds to h required; and intention ofSIssuer stem Reto action venueeBonds has WHEREAS, the notice of for the issuance of $1,575,000 Parking and k no objections to such .� heretofore been duly published proposed action have been filed: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY, IN THE COUNTY OF JOHNSON, STATE OF IOWA: CITY OF IOWA 1t: Section 1*Definitions. Defin_�ti°_ the followinghisTResolutin onuterms shall nlessthetextve ' expressly or by necessary implication requires otherwise: (a) "Issuer" and "City" shall mean the City of Iowa City, Iowa; Council of + (b) "Governing Body"shall mean the City pact to the the City, or its successor in function with resp Sy operation and control of the (c) "Clerk" shall mean the Clbod erk oa. shall r such tbercharged officer of the successor governing y responsibilities; with substantially the same duties and resp . (d) "Treasurer" shall mean the City Treasurer or such . other officer as shall succeed to the same dutiandana responsibilities with respect to the recording p yment .( of the Bonds issued hereunder; of >. parking revenue system (e) "System" shall mean the p in as hereinafter the City including "off-street parincluding parking meters described and "on -street parki59stree is and all properties G stem or ' located on and along uiredlfrom revenues of the system of acquiredart thereof or to be by Council resolution. For purposes the made a p the City ,. this resolu�esently madesupaanddcomprised of the following: system is p permanent Two (2) municipal parking garages, seven (7) off-street parking lots, one (1) temporary off-street t and on -street meters totaling library parking lo �) 2,710 spaces in all. , -3- GG/ r provided, however, that the City may from time to time by resolution lend or lease to the parking system for temporary use additional lands or lots which may be available for temporary use as parking. Such temporary land or lots may be withdrawn from the system by Council resolution irrespective of the provisions of Section 17(f) of this resolution which provisions limit and restrict the manner of disposition of property comprising the system; (f) "Net revenues" shall mean gross earnings including rentals, lease payments, parking fees, overtime parking fees, and parking charges of any kind of the system after deduction of current expenses; "Current expenses" shall mean and include (1) for all off-street parking facilities the reasonable and necessary cost of operating, maintaining, repairing and insuring such facilities, salaries, wages, costs and materials and supplies; (2) for all on -street parking meters, the repair and replacement of parking meters, salaries and wages of meter maids, meter repair and collection personnel; (g) "Fiscal Year" shall mean the twelve months' period beginning on July 1 of each year and ending on the last day of June of the following year, or any other con- secutive twelve month period adopted by the governing body or by law as the official accounting period of the System; (h) "Registrar" shall be the City Controller of Iowa City, Iowa or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein with respect to maintaining a registrar of the owners of the bonds. Unless otherwise specified, the Registrar shall also act as Transfer Agent for the bonds. (i) "Paying Agent" shall be the City Controller or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein as Issuers agent to provide for the payment of principal of and interest on the bonds as the same shall become due. (j) "Original Purchaser" shall mean the purchaser of the Bonds from Issuer at the time of their original issuance. (k) "Bonds" shall mean $1,575,000 Parking System Revenue Bonds, authorized to be issued by this Resolution; (1) "Parity Bonds" shall mean Parking System Revenue Bonds payable solely from the net revenues of the System on -4- 661 4- -A r -5- G 61 -I an equal basis with the Bonds herein authorized to be _ issued and shall include the Outstanding Bonds; "Outstanding Bonds" shall mean the Parking System Revenue Bonds dated November 1, 1985, issued in accordance with • Resolution No. 85-316 adopted November 4, 1985, $3,795,000 of which bonds are still outstanding and unpaid and remain a lien on the net revenues of the System; ' (m) "Corporate Seal" shall mean the official seal of Issuer adopted by the governing body; (n) "Independent Auditor" shall mean an independent firm of Certified Public Accountants or the Auditor of - State; and (o) "Project Fund or Construction Account" shall mean �._ the fund required to be established by this Resolution for the deposit of the proceeds of the Bonds. Section 2. Authority. The Bonds authorized by this Resolution shall be issued pursuant to Division V, Chapter 384; of the City Code of Iowa, and in compliance with all applicable provisions of the Constitution and laws of the State of Iowa. ;1 Section 3. Authorization and Pur ose. There are hereby '- authorized to be issued, negot able, serial, fully registered Revenue Bonds of Iowa City, in the County of Johnson, State of �! Iowa, Series 1986, each to be designated as "Parking System Revenue Bond", in the aggregate amount of $1,575,000 for the purpose of paying costs of constructing an extension to the existing municipal parking structure located at the northeast ;4 corner of Dubuque and Burlington Streets, dated May 1, 1986. Section 4. Source of Payment. The Bonds herein authorized and Parity Bonds and the interest thereon shall be payable solely and only out of the net earnings of the System and shall be a first lien on the future net revenues of the System. The Bonds shall not be general obligations of the Issuer nor shall they be payable in any manner by taxation and the Issuer shall j be in no manner liable by reason of the failure of the said net revenues to be sufficient for the payment of the Bonds. ' Section 5. Bond Details. Parking System Revenue Bonds of the City in the amount of $1,575,000 shall be issued pursuant to the provisions of Section 384.83 of the City Code of Iowa for the aforesaid purpose. The bonds shall be designated .. "PARKING SYSTEM REVENUE BOND", be dated May 1, 1986, and bear interest from the date thereof, until payment thereof, at the principal office of the Paying Agent, said interest payable on January 1, 1987 and semiannually thereafter on the 1st day of -5- G 61 -I July and January in each year until maturity at the rates hereinafter provided. The bonds shall be executed by the facsimile signature of the Mayor and attested by the facsimile signature of the City Clerk, and printed or impressed with the seal of the City and shall be fully registered as to both principal and interest as provided in this resolution; principal, interest and premium, if any shall be payable at the office of the Paying Agent by mailing of a check to the registered owner of the bond. The bonds shall be each in the denomination of $5,000 or multiples thereof. Said bonds shall mature and bear interest as follows: Interest Principal Maturity Rate Amount July 1st $ 65,000 1987 $ 65,000 1988 $ 70,000 1989 $ 75,000 1990 $ 80,000 1991 } $ 85,000 1992 $ 95,000 1993 $100,000 1994 $105,000 1995 $115,000 1996 $125,000 1997 $130,000 1998 $145,000 1999 $155,000 2000 $165,000 2001 Section 6. Re�dempti�on. Bonds maturing after July 1, 1992, may be called for redemption by the Issuer and paid before maturity on said date or any interest payment date thereafter, j from any funds regardless of source, in whole or from time to time in part, in inverse order of maturity and within an annual maturity by lot by giving thirty days' notice of redemption by registered mail, to the registered owner of the bond. The terms of redemption shall be par, plus accrued interest to date of call plus a premium expressed as a percentage, as follows: Redemption Date Price July 1, 1992 and January 1, 1993 102.0% July 1, 1993 and January 1, 1994 101.5% July 1, 1994 and January 1, 1995 101.0% July 1, 1995 and January 1, 1996 100.5% July 1, 1996 and thereafter 100.0% -6- 4�6/ r If selection by lot within a maturity is required, the Registrar shall by random selection of the names of the registered owners of the entire annual maturity select the bonds to be redeemed until the total amount of bonds to be called has been reached. Section 7. -7- (061 -,41 (a) Registration. The ownership of bonds may be transferred only by the making of an entry upon the books kept for the registration and transfer of ownership of the Bonds, and in no other way. The City Controller is hereby appointed as Bond Registrar under the terms of this Resolution. Registrar shall maintain the books of the Issuer for the registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this Resolution. All bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the Provisions for registration and transfer contained in the bonds and in this resolution. (b) Transfer. The ownership of any Bond may be transferred only upon the Registration Books kept for the registration and transfer of Bonds and only upon surrender thereof principaloffice otRegistrartogether +' -, withan assignme orhi authorized his duly attorney in fact in such form as shall be satisfactory to the Registrar, along with the address and social security number or federal employer identification number of such transferee (or, if registration is to be made in the name of multiple individuals, of all such transferees). In the event.that the address of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question) is that of a broker or dealer, there must be disclosed on the Registration Books the information pertaining to the registered owner required above. Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or denominations permitted by this Resolution in aggregate principal amount equal to the . unmatured and unredeemed principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same date or dates shall be delivered by the Registrar. (c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the Reg stray shall register, at the earliest practicable time, on the Registration Books, the Bonds, in accordance with the provisions of this Resolution. -7- (061 -,41 r - (d) Ownership. As to any Bond, the person in whose name the ownership of the same shall be registered on the Registration Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Bonds and the premium, if any, and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. (e) Cancellation. All Bonds which have been redeemed shall not Be reissued but sha11 be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof shall be furnished promptly to the Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled Bonds to the Issuer. (f) Non -Presentment of Bonds. In the event any payment check representing payment of interest on the Bonds is returned to the Paying Agent or is not presented for payment of principal at the maturity or redemption date, if funds sufficient to pay such interest on Bonds shall have been made available to the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on, or with respect to, such interest or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the date on which such interest or principal became due, whether at maturity, or at the date fixed for redemption thereof, or otherwise, at which time the Paying Agent, shall surrender any remaining funds so held to the Issuer, whereupon any claim under this Resolution by the Owners of such interest or Bonds of whatever nature shall be made upon the Issuer. Section R. Reissuance of Mutilated, Destro ed, Stolen or Lost Bonds. In case any outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated -8- 6G/ _AI Bond to Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the Issuer may incur in connection therewith. Section 9. Record Date. Payments of principal and interest, otherwise than upon full l redemption, made in respect of any Bond, shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar on the 15th day of the month preceding the payment date. All such payments shall fully discharge the obligations of the Issuer in respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the bond to the Paying Agent. ! Section 10. Execution, Authentication and Delivery of the i Bonds. Upon the adoption of this resolution, the Mayor and Clerk shall execute and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the same to or upon order of the Purchaser. No bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the registrar shall duly endorse and execute r on such Bond a certificate of authentication substantially in the form of the Certificate herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued under this resolution and that the holder thereof is entitled to the benefits of this resolution. -9- &l Section 11. Form of Bond. Bonds shall he printed in substantial complianc�th standards proposed by the American Standards Institute substantially in the form as follows: FIGURE 1 (Front) -10- (0� (6) f6) (7) (e) (1) (2) (3) (4) (5) (9) (9A) (10) (continued on the back of this Bond) (11)(12)(13)(14) (15) FIGURE 1 (Front) -10- (0� r (10) (16) (17) (Continued) FIGURE 2 (Back) -11- G �� e, c� The text of the bonds to be located thereon at the item numbers shown shall be as follows: Item 1, figure 1 = "STATE OF IOWA" "COUNTY OF JOHNSON" "CITY OF IOWA CITY" "PARKING SYSTEM REVENUE BOND" "SERIES 1986" Item 2, figure 1 = Rate: Item 3, figure 1 = Maturity: Item 4, figure 1 = Bond Date: May 1, 1986 Item 5, figure 1 = Cusip q Item 6, figure 1 = "Registered" Item 7, figure 1 = Certificate No. Item 8, figure 1 = Principal Amount: $ Item 9, figure 1 = The City of Iowa City, Iowa, a municipal 1 corporation organized and existing under and by virtue of the I Constitution andlawsof the State of Iowa (the "Issuer"), for value received, promises to pay from the source and as hereinafter provided, on the maturity date indicated above, to Item 9A, figure 1 = (Registration panel to be completed by Registrar or Printer with name of Registered Owner). Item 10, figure 1 = or registered assigns, the principal sum of (principal amount written out) Thousand Dollars in lawful money of the United States of America, on the maturity date shown above, only upon presentation and surrender hereof (. at the principal office of the City Controller, Paying Agent of this issue, or its successor, with interest on said sum from the date hereof until paid at the rate per annum specified above, payable on January 1, 1987 and semiannually thereafter on the lst day of July and January in each year. Interest shall be paid to the registered holder of the bond as shown on the records of ownership maintained by the Registrar as of the 15th day of the month next preceding such interest payment date. Interest shall be computed on the basis of a 360 -day year of twelve 30 -day months. This bond is issued pursuant to the provisions of Section 384.83 of the City Code of Iowa, for the purpose of paying costs of constructing an extension to the existing municipal parking structure located at the northeast corner of Dubuque and Burlington Streets, in conformity to a Resolution of the Council of said City duly passed and approved. Bonds maturing after July 1, 1993, may be called for redemption by the Issuer and paid before maturity on said date -12- 661 or any interest payment date thereafter, from any funds regardless of source, in whole or from time to time in part, in inverse order of maturity and within an annual maturity by lot by giving thirty days' notice of redemption by registered mail, to the registered owner of the bond. The terms of redemption shall be par, plus accrued interest to date of call plus a pre- mium expressed as a percentage, as follows: Redemption Date Price July 1, 1992 and January 1, 1993 102.0% July 1, 1993 and January 1, 1994 101.58 July 1, 1994 and January 1, 1995 101.0% July 1, 1995 and January 1, 1996 100.5% July 1, 1996 and thereafter 100.0% Ownership of this bond may be transferred only by transfer upon the books kept for such purpose by the City Controller, the Registrar. Such transfer on the books shall occur only upon presentation and surrender of this bond at the principal office of the Registrar, together with an assignment duly executed by the owner hereof or his duly authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to substitute the Registrar and Paying Agent but shall, however, give 60 days' notice to registered bondholders of such change. All bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code of Iowa, subject to the provisions for registration and transfer contained in the bond resolution. This Bond and the series of which it forms a part, other bonds ranking on a parity therewith, and any additional bonds which may be hereafter issued and outstanding from time to time �! on a parity with said Bonds, as provided in the Bond Resolution of which notice is hereby given and is hereby made a part 1 hereof, are payable from and secured by a pledge of the net revenues of the Municipal Parking Facilities system (the i� "System"), as defined and provided in said Resolution. There has heretofore been established and the City covenants and agrees that it will maintain just and equitable rates or charges for the use of and service rendered by said System in 1 each year for the payment of the proper and reasonable expenses l of operation and maintenance of said System and for the establishment of a sufficient sinking fund to meet the principal of and interest on this series of Bonds, and other bonds ranking on a parity therewith, as the same become due. This Bond is not payable in any manner by taxation and under no circumstances shall the City be in any manner liable by reason 1 of the failure of said net earnings to be sufficient for the Payment hereof. -13- r And it is hereby represented and certified that all acts, conditions and things requisite, according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to be performed precedent to the lawful issue of this bond, have been existent, had, done and performed as required by law. IN TESTIMONY WHEREOF, said City by its City Council has caused this bond to be signed by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk, with the seal of said City printed hereon, and authenticated by the manual signature of the Registrar, the City Controller of Iowa City, Iowa. Item 11, figure 1 = Date of authentication: i Item 12, figure 1 = This is one of the bonds described in the within mentioned resolution, as j registered by the City Controller. ' City Controller By Registrar Item 13, figure 1 = Registrar and Transfer Agent: City Controller Paying Agent: City Controller i Item 14, figure 1 = (Seal) i Item 15, figure 1 = (Signature Block) City of Iowa City, Iowa ' By: Mayor's facsimile signature Mayor Attest: City Clerk's facsimile signature City Clerk Item 16, figure 2 = It is certified that the following is a correct and complete copy of the opinion of bond counsel issued as of the date of delivery of the issue of which this bond is a part. "m94 fimile si nature) C tii! (Opinion of Bond Counsel) -14- 64W `I r e Item 17, figure 2 = [Assignment Block] (Information Required for Registration) ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Social Security or Tax Identification No. ) the within Bond and does hereby irrevocably constitute and appoint attorney in fact to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated (Person(s) executing this Ass gnment signs) here) SIGNATURE ) GUARANTEED) IMPORTANT - READ CAREFULLY The signature(s) to this Power must correspond with the name(s) as written upon the face of the certificate(s) or bond(s) in every particular without alteration or enlargement or any change whatever. Signature guarantee should be made by a member or member organization of the New York Stock Exchange, members of other Exchanges having signatures on file with transfer agents or by a commercial bank or trust company. INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER Name of Transferee(s) Address of Transferee(s) Social Security or Tax Identification Number of Transferee(s) Transferee is a(nT--- Individual• Partnership Corporation Trust •If the bond is to be registered in the names of multiple individual owners, the names of all such owners and one address and social security number must be provided. -is- I o, r The following abbreviations, when used in the inscription on the face of this bond, shall he construed as though written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT - ..........Custodian.......... (Cust) (Minor) under Uniform Gifts to Minors Act ....... ... ........... (State) Section 12. Right to Name Substitute Paying Agent or Registrar. Issuer reserves the right to name a substitute, successor Registrar or Paying Agent upon giving 60 days' written notice to each registered bondholder. Section 13. .Equality oof Lfen. The timely payment of principal of and interest n the Bonds and Parity Bonds shall be secured equally and ratably by the revenues of the System without priority by reason of number or time of sale or delivery; and the revenues of the System are hereby irrevocably pledged to the timely payment of both principal and interest as the same become due. Section 14. Application of Bond Proceeds. Proceeds of the Bonds other than accrued interest except as may be provided below shall be credited to the Project Fund and expended therefrom for the purposes of issuance. Any amounts on hand in the Project Fund shall be available for the payment of the principal of or interest on the Bonds at any time that other funds of the System shall be insufficient to the purpose, in which event such funds shall be repaid to the Project Fund at the earliest opportunity. Any balance on hand in the Project Fund and not immediately required for its purposes may be invested not inconsistent with limitations provided by law or this Resolution. Accrued interest, if any, shall be deposited in the Sinking Fund. Section 15. User Rates. There has heretofore been established and published as required by law, just and equitable rates or charges for the use of the service rendered by the System. So long as the Bonds are outstanding and unpaid the rates or charges to consumers of services of the System shall be sufficient in each year for the payment of the proper and reasonable expenses of operation and maintenance of the System and for the payment of principal and interest on the Bonds and Parity Bonds as the same fall due, and to provide for the creation of reserves as hereinafter provided. -16- Z,6/ r- In the event the Issuer or any department, agency or instrumentality thereof in any way uses or is served by the System, the rates or charges provided for shall be paid by the Issuer from its Corporate Fund, or by such department, agency or instrumentality thereof. Any revenues so collected by the Issuer shall be used and accounted for in the same manner as any other revenues derived from the operations of the System. Section 16.Application of Revenues. The provisions in the Resolution heretofore adopted on November 4, 1985, whereby there was created and is to be maintained a Parking System Revenue Bond and Interest Sinking Fund, and for the monthly payment into said fund from the future net revenues of the System such portion thereof as will be sufficient to meet the principal and interest of the outstanding Parking System Revenue Bonds dated November 1, 1985, and maintaining a reserve therefor, are hereby ratified and confirmed, and all such provisions inure to and constitute the security for the payment of the principal and interest on Parking System Revenue Bonds hereby authorized to be issued; provided, however, that the amounts to be set aside and paid into the Parking System Revenue Bond and Interest Sinking Fund in equal monthly 3 installments from the earnings shall be sufficient to pay the ? principal and interest due each year, not only on the Parking System Revenue Bonds dated November 1, 1985, but also the principal and interest of the Bonds herein authorized to be issued and to maintain a reserve therefor. Section 16, of said Resolution, is hereby ratified, confirmed, adopted and incorporated herein as a part of this Resolution. The provisions of the legislation authorizing said Outstanding Bonds and the provisions of this Resolution are to be construed wherever possible so that the same will not be in conflict. In the event such construction is not possible, the provisions of the Resolution or Ordinance first adopted shall prevail until such time as the Bonds authorized by said Ordinance or Resolution have been paid off or otherwise satisfied as therein provided at which time the provisions of this Resolution shall again prevail. Section 17. Covenants Regarding the operation of the System. The Issuer hereby covenants and agrees with each and every holder of the Bonds and Parity Bonds: (a) Operation of the System. Issuer hereby covenants and agrees with the holder or holders of the bonds herein authorized to be issued, or any of them, that it will faithfully and punctually perform all duties with reference to said public motor vehicle parking facilities system required by the Constitution and laws of the State of Iowa, and this resolution, including the making and collecting of -17- `7 -A' reasonable and sufficient rates or services afforded thereby, and will segregate the revenues and make application thereof into the respective funds, as provided by this resolution. Issuer further covenants and agrees with the holders of said bonds to maintain in good condition and continuously and efficiently operate said facilities and meters comprising the System. Issuer further covenants and agrees that, except as hereinafter otherwise provided, so long as any of the bonds authorized to be issued under the terms of this Resolution or bonds ranking on a parity therewith are outstanding it will not sell, lease, loan, mortgage or in any manner dispose of or encumber public motor vehicle parking facilities comprising the System until all of said bonds have been paid in full as to both principal and interest or unless and until full and sufficient provision shall have been made for the payment thereof. However, the right is reserved to the City to dispose of any property constituting.a part of the System as provided in Section 17(f). Nothing contained in this Resolution shall be construed to prevent the City from leasing to others or contracting with others for the operation of any of the facilities constituting a part of the System to the extent permitted by law, provided the net revenues derived from any such leases or contracts, in combination with all other net revenues of the System, are found by the City Council to be not less than those required to be paid unto the Funds as herein provided. Nothing contained in this Resolution shall be construed to prevent the City from disposing by lease, sale or as may be permitted by law, of the air rights (and reasonable access rights) above any of the off-street parking facilities constituting a part of the System or of other portions thereof not useful or intended for the parking of vehicles, provided that the revenues from any such lease shall be treated as a part of the income and revenues of the System and shall be used and applied as provided in this Resolution, but no such contract or lease may result in a reduction of the aggregate net revenues of the System below the amounts necessary to be paid into the Funds as herein provided. While the bonds authorized hereunder, or any of them, remain outstanding and unpaid no free service shall be afforded by said parking facilities, provided, that the City Council may, by resolution, authorize the use of a designated portion of the parking facilities without charge, when: (1) the council has first affirmatively determined that such use will not cause the aggregate net revenues then to be derived from the balance of the system to be less than 125% of the amounts required to be paid -18- M -A _A� into the Sinking Funds during the then next succeeding fiscal year, and (2) if the facilities to be operated without charge produced over 158 of the gross revenues of the entire system in the then last preceding fiscal year, the finding by the City Council must be predicated upon and supported by a certificate executed by a nationally recognized parking facilities consultant employed for the purpose of examining the books and records pertinent to the system and of certifying to the amount of revenues which will be derived from the balance of the system. Any of the off-street parking facilities may be withdrawn from use at any time for the purpose of erecting multiple level parking structures, garages or other parking facilities thereon which are to be incorporated in and made a part of the system of -the City, but no such facilities may be so withdrawn unless the City Council affirmatively finds that the net revenues to be derived.from the operation of the remainder of the System, together with interest during the construction of the additional structure, will be no less than those required to be paid into the Funds herein provided during the period of construction. The City agrees that it will take no action in relation to its parking System which would unfavorably affect the security of the bonds herein authorized or bonds ranking on a parity therewith or the prompt payment of the principal thereof and interest thereon, but nothing in this Resolution contained shall be construed to prohibit appropriate changes in the location of on -street parking meters made necessary by street widening, alterations or closings, nor prohibit substitution or changes in the -� location of on -street parking meters in order to provide essential and necessary traffic regulation and control. (b) Rates. That on or before the beginning of each i fiscal year the governing body will adopt or continue in effect rates for all services rendered by the System sufficient to produce net revenue for the next succeeding fiscal year sufficient to meet the requirements of the several funds as provided in this Resolution. For purposes of the last clause of the next preceding sentence "net revenues" shall be those for the next succeeding fiscal year as determined from the budget for such year as required herein, and for purposes of such determination the budgeted total revenues may be increased by the amount, if any, by which deposits into the Sinking Fund during the current fiscal year shall have exceeded the requirement of this Resolution. (c) Insurance. That the Issuer shall maintain insurance for the benefit of the bondholders on the -19- r insurable portions of the System of a kind and in an amount which normally would be carried by private companies engaged in a similar kind of business. The proceeds of any insurance, except public liability insurance, shall be used to repair or replace the part or parts of the System damaged or destroyed, or if not so used shall be placed in the Parking System Improvement Fund. (d) Accounting and Audits. That the Issuer will cause to be kept proper books and accounts adapted to the System and in accordance with generally accepted accounting practices, and will cause the books and accounts to be audited annually not later than 90 days after the end of each fiscal year by an independent auditor and will file copies of the audit report with the Original Purchaser and will make generally available to the holders of any of the Bonds and Parity Bonds, the balance sheet and the operating statement of the System as certified by such auditor. The Original Purchaser and holders of any of the Bonds and Parity Bonds.shall have at all reasonable times the right to inspect the System and the records, accounts and data of the Issuer relating thereto. It is further agreed that if the Issuer shall fail to provide the audits and reports required by this subsection, the Original Purchaser or the holder or holders of 25% of the outstanding Bonds and Parity Bonds may cause such audits and reports to be prepared at the expense of the Issuer. The audit reports required by this Section shall include, but not be limited to, the following information: (i) An evaluation of the manner in which the Issuer has complied with the covenants of this Resolution, including particularly the rate covenants included herein; (ii) A statement of net revenues and current expenses; (iii) Analyses of each fund and account created hereunder, including deposits, withdrawals and beginning and ending balances; (iv) A balance sheet; (v) The rates in effect at the end of the fiscal year, and the number of customers of the System; (vi) A schedule of insurance policies and fidelity bonds in force at the end of the fiscal year, showing with respect to each policy and bond the -20- 1 G/ -I r nature of the risks covered, the limits of liability, the name of the insurer, and the expiration date; (vii) An evaluation of the Issuer's system of internal financial controls and the sufficiency of fidelity bond and insurance coverage in force; (viii) The names and titles of the principal officers of the Issuer; and (ix) A general statement covering any events or circumstances which might affect the financial status of the System. In the event the audit provided for in this Section is prepared by the State Auditor the governing body will cause to be prepared a certified supplemental report containing the information required by this Section. (e) State Laws. That the Issuer will faithfully and Punctually perform all duties with reference to the System required by the Constitution and laws of the State of Iowa, including the making and collecting of reasonable and sufficient rates for services rendered by the System as above provided, and will segregate the revenues of the System and apply said revenues to the funds specified in this Resolution. (f) Prooerty. That the Issuer will not sell, lease, mortgage or in any manner dispose of the System, or any capital part thereof, including any and all extensions and additions that may be made thereto, until satisfaction and discharge of all of the Bonds and Parity Bonds shall have been provided for in the manner provided in this Resolution. Provided, however, this covenant shall not be construed to prevent the disposal by the Issuer of property which in the judgment of its governing body has become inexpedient or unprofitable to use in connection with the System, or if it is to the advantage of the System that other property of equal or higher value be substituted therefor, and provided further that the proceeds of the disposition of such property shall be placed in a Revolving Fund to be used in preference to other sources for capital improvements to the System as provided with respect to the Improvement Fund, except that no such proceeds shall be used to pay principal or interest on the Bonds and Parity Bonds or payments into the Sinking or Reserve Funds. Any such payments made into the Improvement Fund shall be in addition to the regular monthly payments and the Fund balance provided for in Section 16(d) of this Resolution. -21- &6/ �u (g) Fidelity Dond. That the Issuer shall maintain fidelity bond coverage in amounts which normally would be carried by private companies engaged in a similar kind of business on each officer or employee having custody of funds of the System. (h) Additional Charqes. That the Issuer will require proper connecting charges and/or other security for the payment of service charges. (i) Budget. That the governing body of the Issuer will adopt a system budget of revenues and current expenses on or before the end of each fiscal year for the ensuing fiscal year, and will file copies of such budgets, and any amendments thereto, with the original Purchaser and any bondholder requesting the same. Such budget shall take into account revenues and current expenses during the current and last preceding fiscal years. The Issuer will incur no current expense not included in such budget, and will not permit total current expenses to exceed the budget, unless the governing body shall first have adopted a Resolution declaring the necessity of such expenses. Copies of such budget and approvals of expenditures in excess of the budget shall be mailed to the original Purchaser and to the bondholders upon request. (j) Consultant Review. The City hereby covenants and agrees as long as any bonds hereby authorized are outstanding to regularly retain from time to time and at least once every four (4) years, the service of some engineer or firm of engineers of specialized reputation in the management and operation of motor vehicle parking facilities sometimes referred to in this resolution as the "Consulting Engineer", for the purpose of consultation and cooperation in connection with the operation and maintenance of its parking System facilities system and the establishment as well as any revision of the schedule of charges for the service and facilities to be thereby afforded. Such report shall be promptly forwarded to the original purchaser of the bonds. Section 18. Remedies of Bondholders. Except as herein expressly limited the holder or holders of the Bonds and Parity Bonds shall have and possess all the rights of action and remedies afforded by the common law, the Constitution and statutes of the State of Iowa, and of the United States of America, for the enforcement of payment of their Bonds, and of the pledge of the revenues made hereunder, and of all covenants of the Issuer hereunder. GG/ r Section 19. Prior Lien and Parity Bonds. The Issuer will issue no other Bonds or obligations of any kind or nature payable from or enjoying a lien or claim on the property or revenues of the System having priority over the Bonds or Parity Bonds. Additional Bonds may be issued on a parity and equality of rank with the Bonds with respect to the lien and claim of such additional Bonds to the revenues of the System and the money on deposit in the funds adopted by this Resolution, for the following purposes and under the following conditions, but not otherwise: (a) For the purpose of refunding any of the Bonds or Parity Bonds which shall have matured or which shall mature not later than three months after the date of delivery of such refunding Bonds and for the payment of which there shall be insufficient money in the Sinking Fund and the Reserve Fund; (b) For the purpose of refunding any Bonds or Parity Bonds outstanding, or making extensions, additions, improvements or replacements to the System, if all of the following conditions shall have been met: (i) before any such Bonds ranking on a parity are issued, there will have been procured and filed with the Clerk, a statement of an independent certified public accountant, not a regular employee of the Issuer, reciting the opinion based upon necessary investigations that the net revenues of the System for the preceding fiscal year (with adjustments as hereinafter provided) were equal to at least 1.25 times the maximum amount that will be required in any fiscal year prior to the longest maturity of any of the then outstanding Bonds for both principal of and interest on all Bonds then outstanding which are payable from the net earnings of the System and the Bonds then proposed to be issued. For the purpose of determining the net revenues of the System for the preceding fiscal year as aforesaid, the amount of the gross revenues for such year may be adjusted by an independent Consulting Enqineer or by a Certified Public Accountant not a regular employee of the Issuer, so as to reflect any changes in the amount of such revenues which would have resulted had any revision of the schedule of rates or charges imposed at or prior to the time of the issuance of any such additional Bonds been in effect during all of such preceding fiscal year. -23- 61 r (ii) the additional Bonds must be payable as to Principal and as to interest on the same month and day as the Bonds herein authorized. (iii) for the purposes of this Section, prin- cipal and interest falling due on the first day of a fiscal year shall be deemed a requirement of the imme- diately preceding fiscal year. Section 20. Is of Bond Proceeds Arbitra e Not Permitted. Tne Issuer reasonably expects and covenants thatt noUill be made of the proceeds from the issuance and sale of the Bonds issued hereunder which will cause any of the Bonds to be classified as arbitrage Bonds within the meaning of Section 103(c)(2) of the Internal Revenue Code of the United States, and that throughout the term of said Bonds it will comply with the requirements of said statute and regulations issued thereunder. To the best knowledge and belief of the Issuer, there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be. arbitrage Bonds. The Treasurer is hereby directed to deliver a certificate at issuance of the Bonds to certify as to the reasonable expectation of the Issuer at that date. The Issuer covenants that it will treat as restricted yield investments the funds following: (a) Any amounts in the Sinking Fund in excess of 13/12ths of the total of annual principal and interest requirements. (b) Any amount on hand in the Reserve Fund in excess Of fifteen percent of the original principal amount of the outstanding bonds and parity bonds. (c) Any amount on hand in the Improvement Fund to the extent that it has been held for a period greater than three years. Which "Restricted yield investments" are funds or investments the higher than sthe rYield nonttheobonds s nt to iasedefined st at a inethe ild mregulations issued under authority of Section 103(c) of the Internal Revenue respect to the bondsdandaparity If any sare halleld With treat the same for the purpose of restricted yield as held in proportion to the original principal amounts of each issue. -24- 6(a/ Wi The Issuer covenants that it will exceed any investment yield restriction provided in this resolution only in the event that it shall first obtain an opinion of recognized bond counsel that the proposed investment action will not cause the bonds to be classed as arbitrage bonds under Section 103(c) of the Internal Revenue Code or regulations issued thereunder. The Issuer covenants that it will proceed with due diligence to spend the proceeds of the bonds for the purpose set forth in this resolution. The Issuer further covenants that it will make no change in the use of the proceeds available for the construction of facilities or change in the use of any portion of the facilities constructed therefrom by persons other than the Issuer or the general public unless it has obtained an opinion of bond counsel or a revenue ruling that the proposed project or use will not be of such character as to cause interest on any of the Bonds not to be exempt from federal income taxes in the hands of holders other than substantial users of the project, under the provisions of Section 103(b) of the Internal Revenue Code of the United States, related statutes and regulations. Section 21. Discharge and Satisfaction of Bonds. The covenants, liens and pledges entered into, created or imposed pursuant to this Resolution may be fully discharged and satisfied with respect to the Bonds and Parity Bonds, or any of them, in any one or more of the following ways: (a) By paying the Bonds or Parity Bonds when the same shall become due and payable; and (b) By depositing in trust with the -Treasurer, or with a corporate trustee designated by the governing body for the payment of said obligations and irrevocably appropriated exclusively to that purpose an amount in cash or direct obligations of the United States the maturities and income of which shall be sufficient to retire at maturity, or by redemption prior to maturity on a designated date upon which said obligations may be redeemed, all of such obligations outstanding at the time, together with the interest thereon to maturity or to the designated redemption date, premiums thereon, if any that may be payable on the redemption of the same; provided that proper notice of redemption of all such obligations to be redeemed shall have been previously published or provisions shall have been made for such publication. Upon such payment or deposit of money or securities, or both, in the amount and manner provided by this Section, all liability of the Issuer with respect to the Bonds or Parity Bonds shall cease, determine and be completely discharged, and -25- r- the holders thereof shall be entitled only to payment out of the money or securities so deposited. Section 22. Resolution a Contract. The provisions of this Resolution shall constitute a contract between the Issuer and the holder or holders of the Bonds and Parity Bonds, and after the issuance of any of the Bonds no change, variation or alteration of any kind in the provisions of this Resolution shall be made in any manner, except as provided in the next succeeding Section, until such time as all of the Bonds and Parity Bonds, and interest due thereon, shall have been satisfied and discharged as provided in this Resolution. Section 23. Modification of Resolution. This Resolution may be amended from time to time if such amendment shall have been consented to by holders of not less than two-thirds in principal amount of the Bonds and Parity Bonds at any time outstanding (not including in any case any Bonds which may then be held or owned by or for the account of the Issuer, but including such Refunding Bonds as may have been issued for the purpose of refunding any of such Bonds if such Refunding Bonds shall not then be owned by the Issuer); but this Resolution may not be so amended in such manner as to: (a) make any change in the maturity or interest rate of the Bonds, or modify the terms of payment of principal of or interest on the Bonds or any of them or impose any conditions with respect to such payment; (b) Materially affect the rights of the holders of less than all of the Bonds and Parity Bonds then outstanding; and (c) Reduce the percentage of the principal amount of Bonds, the consent of the holders of which is required to effect a further amendment. Whenever the Issuer shall propose to amend this Resolution under the provisions of this Section, it shall cause notice of the proposed amendment to be filed with the original Purchaser and to be published one time in a newspaper having general circulation in the State of Iowa, or a financial newspaper or journal published in New York, New York. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory Resolution is on file in the office of the Clerk. Whenever at any time within one year from the date of the publication of said notice there shall be filed with the Clerk an instrument or instruments executed by the holders of at least two-thirds in aggregate principal amount of the Bonds -26- G G/ -t -Al t-" then outstanding as in this Section defined, which instrument or instruments shall refer to the proposed amendatory Resolution described in said notice and shall specifically consent to and approve the adoption thereof, thereupon, but not otherwise, the governing body of the Issuer may adopt such amendatory Resolution and such Resolution shall become effective and binding upon the holders of all of the Bonds and Parity Bonds. Any consent given by the holder of a Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the instrument evidencing such consent and shall be conclusive and binding upon all future holders of the same Bond during such period. Such consent may be revoked at any time after six months from the date of such instrument by the holder who gave such consent or by a successor in title by filing notice of such revocation with the Clerk. The fact and date of the execution of any instrument under the provisions of this Section may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such jurisdiction that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witness to such execution sworn to before such officer. The amount and numbers of the Bonds held by any person executing such instrument and the date of his holding the same may be proved by an affidavit by such person or by a certificate executed by an officer of a bank or trust company showing that on the date therein mentioned such person had on deposit with such bank or trust company the Bonds described in such certificate. Section 24. In order to maintain the exemption from federal income taxes of interest on the Bonds and for no other purpose, the Issuer covenants to comply with the provisions of H.R. 3838, the tax reform act of 1985 (the "Bill") passed by the U.S. House of Representatives on December 18, 1985, which has an effective date of December 31, 1985, provided, however, that prior to enactment of the Bill, the Issuer reserves the right to accept the extended effective dates of certain of its provisions as provided in the Joint Statement of the leaders of the House Ways and Means Committee, the Senate Finance Committee and the Treasury Department, issued March 14, 1986. -27- The Issuer may treat the Joint Statement as effective to extend the effective date of the provisions indicated until it is modified or withdrawn. Until and unless and except to the extent in the opinion of bond counsel the following are not necessary to maintain the tax-exempt status of the Bonds, the Issuer makes the following covenants, representations and warranties with respect to the Bonds: 1. The Issuer represents that except for use as a member of the general public, the proceeds of the bonds will not be used directly or indirectly in any trade or business carried on by any person other than Issuer or used directly or indirectly to make or finance loans to persons other than governmental units. 2. The Issuer will submit in a timely manner all reports, accountings and information to the Internal Revenue Service and will take whatever action is necessary within it's power to assure the continued tax exemption on the bonds. 3. In the event the federal law applicable to the Bonds after the consideration of the Bill imposes requirements different from the provisions of the Bill retroactively effective to the time the Bonds are issued, the Issuer will comply with the applicable law and regulations in order to maintain tax exemption with respect to the Bonds. 4. For the sole purpose of qualifying the Bonds as "qualified tax-exempt obligations" pursuant to Section 802 of the Bill, the Issuer does hereby designate the Bonds as such and represents that the reasonably anticipated amount of qualified tax-exempt obligations which will be issued during the calendar 1986 year will not exceed Ten (10) Million Dollars. Section 25. Amendment of Resolution to Maintain Tax Exemption. This resolution may be amended without the consent of any owner of the Bonds for the sole purpose of taking action necessaryto maintain tax al lexemption aw or with t respect to the Bonds under applicable Section 26. Severability. If any section, paragraph, or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforce- ability of such section, paragraph or povi shall not affect any of the remaining provisions. Section 27. Re eal of Conflicting Ordinances or Resolutions and Effective Daarts thereofeCinrconflict�with the reso ut ons and orders, or p provisions of this Resolution are, to the extent of such _28- OeO/ -I fit, F r - a conflict, hereby repealed; and this Resolution shall be in effect from and after its adoption. Adopted and approved this day of 1986. Mayor -29- a7 0 APPENDIX'C Parking Rates i PARKING RATES FOR THE IOWA CITY PARKING SYSTEM EFFECTIVE FEBRUARY 1, 1986 Central Business District on -Street Meter . . . . . . . $ .40/hour Central Business District Lot Meter . . . . . . . . . . $ .40/hour Peripheral On -Street Meter hour $ /hour (Outside Central Business District) . . . . . . . . . .30 Peripheral Lot Meter (outside Central Business District) . . . . . . . . . $ .30/hour ' Lot Permits . . . . . . . . . . . . . . . $30.00/month city Employee Lot Permits . . . . . . . . . . . . . . . $15.00/month Meter Hoods . . . . . . . . . . . . . . . . . . . $ 4.00/day Parking Ramps: $ .40/hour Hourly Parker . . . . . . . . . . . . Monthly All -Day Permits . . . . . . . . . . $40.00/month . • • . • • Monthly Off -Hours Permits . . . . . . . . . . . . . . $49.00/month o - fl r APPENDIX D Financial Statements of the City's Enterprise Funds Year Ended June 30, 1985 (OY� k CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Note 1. Nature of Operations, Reporting Entity, Description of Funds and Account Groups. and Significant Accounting Policies Nature of Operations The City of Iowa City, Iowa, was incorporated April 6, 1853, and operates under the Council/Manager farm of goverment. The City provides a broad range of services to citizens, including general goverment. public safety, streets, parks and cultural facilities. It also operates an airport, parking facilities, a mass transportation system and facilities, water, sewer, and other sanitation utilities, and a housing authority. The Reporting Entity For financial . reporting purposes, the City Includes all funds, account groups, agencies, boards, commissions and authorities that are controlled by or dependent on the City. The criteria used to evaluate this control by or dependence on the City relates to the oversight responsibility exercised by the City, including governing authority selection and continuing relation- ships, budget adoption. taxing authority, debt responsibility and obligation of the City to finance any deficits that may occur, or receipt of significant subsidies from the City. Based on the foregoing criteria, it was determined that the Johnson County Council of Governments be included in the City's general purpose financial statements as an expendable trust fund. The Iowa City Community School District is administered by an autonomous board, created under the authority of chapters of the Iowa Code separate and distinct from the City and thus their financial statements are not included In this report. The Iowa City Conference Board which governs the Iowa Assessor's Office also did not meet the above criteria and ia Cfty s the Iowa from this financial report. The Iowa City Library Foundation, Hayor's Youth Employment Program and Project Ween all act autonomously and do not meet the component unit criteria. The City does, however, act as financial custodian for these entities and, therefore includes them in its general purpose financial statements as agency funds. Description of Funds and Account Groups These financial statements include all funds and account groups owned or administered by the City, far which the City acts as Custodian, or which were determined to be component units of the City. These statements have been prepared in accordance with the National Council on Governmental Accounting's Statements 1 through 7. The City maintains its records on a modified cash basis of accounting under which only cash receipts, cash disbursements and encumbrances, investments and bonded debt are recorded. These modified cash basis accounting records 9l CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with generally accepted accounting principles. The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. Each fund or account group Is accounted for by providing a separate set of self -balancing accounts which conprise its assets, li-bilities, equity, revenue and expenditures or expenses, as appropriate. The various funds and account groups are presented as follows: GOVERNMENTAL FONDS The General Fund is used to account for all the financial resources of the City, except for those required to be accounted for by other funds. The revenue of the General Fund is primarily derived from general property taxes, charges for services, fines and forfeitures, licenses and permits, and certain revenue from state and federal sources. The expenditures of the General Fund primarily relate to general administration, police and fire protection, streets and public buildings operation and maintenance, and parks and recreation. The S c1a1soRevenue Funds are used to account for revenue derived from specitPlc urces which are required to he accounted for as separate funds. The funds included in this category and their purpose are as follows: Community Development Block Grant Fund - accounts for revenue from O.S. Department of Housing and Urban Development Community Development Block Grant programs. Other Shared Revenue and Grants Fund - accounts for revenue from various sources, including road use tax monies and reimbursable programs funded by federal and state grants. Federal Revenue Sharing Fund - accounts for monies received from Federal Revenue Sharing entitlements. Urban Development Action Grant Fund - accounts for the Urban Development Action Grant funds loaned to the downtown hotel. When loan repoymant begins, the intone will be transferred to the Community Development Block Grant Fund as program intone. The Debt Service Fund is used to account for the accumulation of resources for and the payment of general long-term debt principal, interest and related costs. The Capital projects Funds are usd to account for all resources to be used in the acquisition and construction of capital facilities and other major Fixed assets, with the exception of those that are financed by special assessments or by enterprise fund monies. The funds in this category are as follows: CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Bridge, Street and Traffic Control Construction Fund - accounts for the such construction or replacement sidewalks, slighting cture systems fix and stormssewers. as ed streets, bridges,a Human Development Construction Fund - accounts for the construction of parks and recreation facilities, and other leisure time improvements. Other Construction Fund - accounts for the construction or replacement of other assets Such as various city ral sourceseincluding general obligation ative buildings bonds. Intergovern- mental revenues, and contributions. The SPEcIAl ed to cct for of improvements or services deemed ts Fund stoosbenefit "the properties e against which special assessments are levied. PROPRIETARY FUNDS The Enterprise Funds are used to account for the operations and activitles that are financed and operated in a manner similar to a private business generals public an where continuings bests is expected to be financed services ar trecove ered 7rimarily through user charges, or where the City has decided that income is approspriaton of revenues e for capital maintenance, Publiexpenses c incurred. management control, accountability, or other purposes. The funds in this category are as follows: City s -on q Fund ' and off- streetfor public parkingnand facilitiesmaintenance of all the the City's gwaterlFund . cco�nts for the pollution control facility operations and asanitary sewer a of system Water Fund - accounts for the operation and maintenance of the City's water system. ration city'ssolid was sanitation te accounts collectionfsysthe ten an delandfiil end maintenance of the Airport Fund - accounts for the operation and maintenance of the City's airport facility. Houerations and ties of thea City-sflows and FmoderatFund . e income housing acounts for the ssistance and public housing programs. Mass Transportation Fund - accounts for the operation and maintenance of the City's public transportation system. The Internal Snvice Funds are used to account for goods and services provided as. One department in this categoryre to other City rfollaws en a cost relmburse- entbisThe funds I CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Equipment Maintenance Fund - accounts for the provision of maintenance for City vehicles and equipment, and vehicle rental to other City departments from a central vehicle pool. Central Services Fund - accounts for the printing services and office supplies inventory provided to other City departments. FIDUCIARY FUNDS The Trust and Agency Funds are used to account for assets held by the City in a trustee or custodial capacity for the City's two pension and retire- ment funds and for other entities, such as individuals, private organiza- tions, or other governmental units. These fund types are categorized as follows: Expendable Trust Funds: Employee Benefits Trust Fund - accounts for the City's governmental funds employee related benefits funded by a property tax levy. The City levies the property tax within the Trust and Agency Funds, as provided by Section 386.6 of the Code of Iowa. Johnson County Council of Governments Trust Fund - accounts for the activities of the metropolitan/rural cooperative planning organiza- tion. Ilan -expendable Trust Fund: Perpetual Care Trust Fund . accounts for monies as required by Cemetery deeds sold through May, 1973. The Investment proceeds from this fund are transferred to the general fund each year to be applied against cemetery operating expenditures. Pension Trust Funds: The City maintains two pension trust funds for city employees as follows: Fire Pension and Retirement Fund Police Pension and Retirement Fund Agency Funds: The City acts as custodian for the following agency funds: Project Green Mayor's Youth Employment Program Eldercraft Shop Library Foundation a r - CM OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 ACCOUNT GROUPS The General Fixed Assets Account Group accounts for all City general fixed assets except for property and equipment associated with the operations of proprietary funds. The General Long -Ten Debt Account Group accounts for all City general obligation and other long-term debt expected to be financed from governmen- tal fund types, other than special assessment funds. Significant Accounting Policies Basis of Accounting: The modified accrual basis of accounting is used for all governmental fund types, expendable trusts, and agency funds. Under this method of account- ing, revenue is recognized in the period in which it becomes available and measurable. Revenue accrued includes property taxes, intergovernmental and interest earned on investments. Expenditures are recorded as liabilities as incurred, if measurable, except for unmatured interest on general long -ten debt. The accrual basis of accounting is used for all of the enterprise, internal service, pension and retirement trust, and nonexpendable trust funds. Under this method of accounting, revenue is recognized in the accounting period in which it is earned and becmms measurable and expenses are recognized to the period incurred, if measurable. Cash Management and Investments: The City maintains one primary demand deposit account through which the majority of the City's cash resources are processed. All investments are stated at cost or amortized cost, and except for tong -ten investments In the pension trust funds, these amounts approximate market value. The City Intends to hold the long-term investments In the pension trust funds until maturity and therefore no loss is anticipated. Substantially all City investment activity is carried on by the City in an investment pool, except for those funds required to maintain their invest- ments separately. The earnings on the pooled Investments are allocated to the funds on a systematic basis. Receivables and Revenue Recognition: Property taxes receivable are recognized at the time they are levied by the local taxing authority, the County of Johnson, State of Iowa. Property taxes levied for the fiscal year ending June 30, 1985 were certified an March 15, 1984 based an the 1983 assessed valuations. Taxes are payable in two installments, due September 30 and March 31, with a is per month penalty far delinquent payment. That portion of the property taxes receivable which are recorded in the governmental fund types, and which are not available for the current year's operations, are shown as deferred revenue. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Special assessments receivable is recorded at the time of the levy, and that portion which is not available for the current year's operations 1s shown as deferred revenue. Interest revenue on special assessments is recognized when collected. Federal revenue sharing is recognized during the entitlement period to which IC applies. Substantially all other shared revenue is recognized when received by the collecting authority. Federal and state grants, primarily capital grants, are recorded as receivables and the revenue Is recognized during the period in which the City fulfills the requirements for receiving the grant awards. Income from investments in all fund types and accounts and unbflled usage receivables in proprietary fund types 1s recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous and other revenues are recorded as revenue when received In cash because they are generally not measurable until actually received. Inventories: Inventories are recognized only in those funds in which they are material to the extent of affecting operations. Inventories are carried at lower of cost (first -in, first -out) or market. Property and Equipment: Property and equipment in the General Fixed Assets Account Group are carried at original cost, or at fair market value when received as donated properties. The City follows the policy of not capitalizing infrastructure fixed assets such as streets, bridges, lighting systems, sidewalks, stow sewers, and individual assets with A cost of less than $500. Oepreciation is not recorded on the General Fixed Assets Account Group. Property and equipment associated with the Proprietary fund types are carried at original cost, or at fair market value when received as donated properties. Generally, assets with an individual cost of less than $500 are not capitalized. Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings and structures 20-50years Other improvements 15-50 ears Vehicles y 5-20 years Other equipment 5-30 years In the Mess Transportation Fund, the City restores to retained earnings depreciation on buses which have been acquired through federal grants, by a corresponding reduction of contributed capital. This application is limited to buses because the City anticipates they will be reptacea with additional federal Ponding. Ki _r; CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1905 Property which is being acquired by the City under lease purchase contracts has been capitalized in the financial statements in accordance with generally accepted accounting principles. Compensated Absences: Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, retirement, or termination. If sick leave is paid upon death, retirement or (except firefighters) termina- tion, the total accumulated hours are paid at one-half of the then effective hourly rate for that employee or the maximum sick leave payout amount on June 28, 1985, whichever Is less. Employees hired on or after June 29, 1985 are noteligible for payment of accumulated sick leave upon termination, death or retrement. For governmental fund types, the amount of accumulated unpaid vacation and sick leave, payable from available resources, is recorded is a liability of therespective fund and the remaining amount 1s recorded in the General Long -Term Debt Account Group. The vested amount of unpaid vacation and sick leave, of proprietary fund type employees, is recorded as a liability of the appropriate fund. Total Columns on General Purpose Financial Statements: The total caltams on the General Purpose Financial Statements are captioned 'memorandum only' to indicate that they are presented only to facilitate financial analysis. Data In these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation because interfund eliminations have not been mode In the aggregation of this data. Budgetary and Legal Appropriation and Amendment Policies: The City of Iowa City prepares and adopts an annual program budget, as prescribed by Iowa statutes, for all funds except the Housing Authority Fund, pension trust funds, internal service funds, capital projects funds and certain escrow and revolving funds. This budget is adopted an or before March 15 of each year to became effective July 1 and constitutes the City's appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each program: Community Protection Human Development Home and Community Environment Policy and Administration b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 The legal level of control (the level at which expenditures may not legally exceed appropriations) is the program level for all funds combined rather than at the individual fundlevel It is permissible, therefore, to overspend the budge[ with to a Darticular fund for a particular program without overspending the legal program budget for the City as a whole. It is necessary, therefore, to aggregate the expenditures of governmental fund types with expenses of the enterprise funds (except the Housing Authority Fund) on a program basis and to compare such program totals to program budgeted totals in order to demonstrate legal compliance with budget. The City's budget for revenue focuses on the individual fund revenue rather than on aggregated fund totals. The City formally adopts budgets for several ,funds which are not required by state law to be included in the annual program budget. Annual operating budgets are adapted for the internal service funds and for the Housing Authority Fund. For capital projects Ponds a five year capital improve- ments program is adopted, establishing the first year as the annual capital projects funds budget. These budgets are adopted and amended at the same time and in the same manner as the City's annual program budget. A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended unencumbered cash balances an hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated to be available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between programs. A budget =moment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed and the effect of that amendment is shown in the financial statement presentation. Individual amendments were not material in relation to originally appropri- ated amounts. Appropriations as adopted or amended, and not encumtered, lapse at the end of the fiscal year. Statements of budget and actual revenue and expenditures have been presented on a Pond type basis and disclosures are presented which compare budget and actual expenditures on the legal program budget basis for the City as a whole. The statements reflect the City's modified cash basis method of budget preparation. Encumbrances: The City records encumbrances as reservations of fund balances in the governmental funds within the program budget structure. These reservations of fund balances, for budgetary control purposes, provide authority to complete these transactions as expenditures during subsequent years. Encumbrances are reflected In the budgetary statements contained in this report. `I CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEHENIS June 30, 1985 Note 2. Changes in Accounting Policies and Restatement of Prior Balances Expendable Trust Funds and Agency Funds: In prior years, the Johnson County Council of Governments Fund had been classified as an agency fund, whereas for the year ended June 30, 1985, the fund classification has been changed to an expendable trust fund. Therefore, the beginning fund balance of the expendable trust funds has been retroactively increased by $67,908 to include the Johnson County Council of Governments Fund. Special Assessments Fund: In prior years, the City followed the policy of recognizing special assessments revenue in the year the assessment was levied. Effective July 1, 1984, the City changed its Policy to recognize only that revenue which is collectible within the current year or soon enough thereafter to be used to pay liabilities of the current year and to defer all assessments to be received in future years. Therefore, the beginning fund balance of the Special Assessments Fund has been retroactively decreased by $261,899 to reflect the deferral of the non-current portion of the special assessments receivable as of June 30, 1984. Enterprise Funds: Land costs previously recorded in the Parking Fund were overstated by $95,355. This overstatement has been corrected as a retroactive adjustment to the beginning retained earnings of that fund. Note 3. Budget Versus Actual Comparisons Unfavorable Expenditure and Transfers Out Variances: For the year ended June 30, 1985, three funds had unfavorable variances of actual expenditures and transfers out compared to budgeted expenditures and transfers out. None of these unfavorable variances represent a violation of any law as the legal level of control Is the program level for all funds combined rather then at the individual fund level. The funds having the unfavorable expenditures and transfers out variances and the respective amounts are as follows: (Unfavorable) Fund Type and Fund Variance Special Revenue Funds Other Shared Revenue and Grants Fund $(510,635) Capital Projects Funds Other Construction Fund (735,637) Special Assessments Fund (455,868) CITY OF IOWA CITY. IOWA NOTES TO FINANCIAL STATFNENYS June 30, 1985 The Other Shared Revenue and Grants Fund unfavorable variance results from unanticipated interim financing needed for Public Housing Project 22-5, for purchasing additional public housing rental units. This purchase occurred the last week of the fiscal year and the necessary federal funding was received within ten, days following the transaction. The Other Construction Fund unfavorable variance results from unanticipated transfers out to finance construction projects in other funds. The Special Assessment Fund unfavorable variance results from construction projects budgeted in the capital projects funds. a CITY OF IOWA CITY. IOWA CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS June 30, 1985 June 30, 1995 Budgetary Reporting Reconciliation: Legal Program'8udget Compliance: The City prepares its program and non -program annual operating budgets using The following schedule compares byprogram, the total expenditures and a modified cash basis of accounting. For purposes of comparing actual encumbrances of legally budgeted funds, with the amended statutory budget far financial data with the budget, the Statements of Revenue, Expenditures and the year ended June 30, 1985, to demonstrate legal compliance with the budget Changes in Fund Balances All Governmental Fund Types have been converted to of the City as a whole. the non -GAAP budgetary basis. Actual Expenditures Variance A reconciliation of the revenue and other financing sources over (under) Amended and Favorable expenditures and other financing uses, budgetary (non -GAAP) basis with Budget Encumbrances (Unfavorable) revenue and other financing sources aver (under) is follows: expenditures and other Community Protection $ 4,026,313 S 3,981,792 S 44,521 financing uses GAAP be 'isas Human Development 3,053,844 3,024,393 29,451 j Special Debt Capital Special Home and Community Environment 13,851,716 13,843,126 8,590 General Revenue Service Projects Assessments Policy and Administration 3,017,536 2,622,642 394,894 Fund' Funds Fund Funds Fund Transfers Out 8,009,150 6,76B,744 1,240,406 I Revenue and other � Note 4. Deficit Fund Balances I financing sources over of June 30, 1985, two funds have deficit fund balances. None of the (under) expenditures and deficits represent a aretas of any law. The funds having the deficits and de other financing uses, the respective amounts are as follows: s budgetary (non -GAAP) basis S (46,563) S(518,815) $(42,078) $(1,186,133) S(44fi,753) Fund Type and Fund Deficit Revenue adjustments: Reverse prior year (531,052) (380,005) (39,896) (33,120) (54,042) Special Assessments Fund S (664,582) i accrued revenue Property lex receivable 191,700 14,757 - 191 Capital Projects Funds (1,174,294 j Bridge, Street, end Traffic Control Construction ) ) Interest receivable 6,261 4,062 Grants receivable 11,568 170.710 - - 11,669 - - - - - - The Special Assessments Fund deficit results from special assessments which Accrued transfers in 10,422 - - 784,254 - - 15,414 57,647 have not been recognized as revenue. i Other receivables 360,729 Expenditures adjustments:�. The Bridge, Street and Traffic Control Construction Fund deficit results Reverse prior year 849.986 28,637 83,709 53,233 24,642 primarily from expenditures 1n excess of funding provided to date on several t expenditure accruals Individual capital projects. The deficit will be recovered In the future Payroll end employee (366,393) (32.3261 - - (4,677) (657) from grants, transfers from other City funds, and the sale of general benefits accruals Contracts payable - - (80,946) - - (175,680) - : obligation bands. j Matured interest payable - - - - (96,890) - - " " - ' " Mate S. Pension and Retirement Systems Accrued transfers out (4,329) ' " " " i Accruals for subsequent (271,956) (38,264) (51,127) (198) The City contributes to two local pension and retirement systems and to the expenditures (16,915) - - - - 35,000 Iowa Public Employee Retirement System (IPERS) which is administered by the Other payables Encumbrances 117.925 x,625 11.425 State of Iowa. All of the systems are contributory and all permanent employ - ees must participate in one of the systems. Each of the local systems 1s Revenue and other administered by a local board Mich has three members appointed by the City financing sources over Council, the City Treasurer, the chief officers of the department, and two (under) expenditures members elected by the participating members. They are regulated by Iowa and other financing GAAP basls �.a1�1a:83 f.i::4�:8) �l:: i:�:) {j:s35Bs996) :l32LEOJ statutes. The Cit acts as custodian far the assets of the local systems. y Y the uses, Following 1s a table Indicating the systems, the employees covered, and allocation of the City's covered payroll $9,045,603, for the year ended I June 30, 1985: i t r CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL SfATEMEMIS June 30, 1985 Local Systems The participating employees are required to contribute to these systems, and the State of Iowa contributes to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. Contributions to the fire and police systems are made based upon an actuarial cost method stipulated by Iowa statutes, which is essentially an aggregate cast method with no provision for any unfunded past service liability. Pension and retirement benefits for the local systems are mandated by Iowa Statutes Chapters 410 and 411. A member may retire with full benefits after reaching age 55 and having served 22 years or more. If a member has served 15 to 22 years upon termination of employment, he shall receive at age 55 a prorated benefit based on the number of years served. The retirement allowance, payable monthly for life, equals 502 of the mmber's average final compensation or average earnable compensation for the three years of highest compensation of the members. A member with five or more years' credited service she becomes totally and permanently disabled from other than duty -related causes shall receive an ordinary disability retirement allowance equal to 402 of the member's average final compensation. This percentage is lowered to 252 if the member hes under five years of service. If the member becomes totally and permanently disabled from duty -related causes, he shall receive an accidental liability retirement allowance equal to 66-2/32 of the member's average final compensa- tion. Upon the death of a member caused by performance of duty, the member's spouse, children or dependent parents shall be paid 502 of the member's average final compensation. If a member dies in or out of service after 15 or more years of service, the lump sun amount to be provided Is equal to 582 of compensation earnable by the member during the year preceding death or In the last year of service. There is an option whereby the beneficiary may receive a pension of 252 of the member's average final compensation or $75 per month. There shall also be paid for each child of a member a monthly pension equal to 62 of the monthly earnable compensation paid to an active member at the highest grade until age 18 or 22 if applicable. Pension payments are made to an unmarried surviving spouse, surviving children until they reach 18 or 22 If applicable, or to a dependent father or mother If a member has no spouse or children. CRT OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMEMS June 30, 1985 On January I and July I of each year, pensions payable to members or a beneficiary, except retirees with less than 22 years of service, are readjusted by a percentage of the increase in monthly earnable compensation of active members at the same rant and salary scale position held by the member at retirement or death. Funding Requirements Employee contributions to the fire and police systems are determined by Iowa statutes. The State of Iowa contributes to the fire and police systems to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. The employer contributions are determined as a percentage of payroll to cover the remaining amounts necessary to finance the systems. These rates are made based upon an actuarial cost method stipulated by Iowa statutes, which is essentially an aggregate cost method with no provision for any unfunded past service liability. For funding purposes, the following significant assumptions were used in the actuarial valuations as of June 30, 1985 and 1984: (1) an assumed rate of return on investments of 62 per year compounded annually; (2) projected salary increases of 42 per year compounded annually attributable to infla- tion; (3) Pre- and post -mortality life expectancies of participants based on the UP -1984 Mortality Table (set forward one year); and (4) rates of with- drawal from active service before retirement for reasons other than death, rates of disability and expected retirement ages developed on the basis of an investigation of actual plan experience. Financial Reporting For financial reporting purposes, the actuarial present value of creditec projected benefits has been computed and Included in these financial statements. The actuarial present value of Projected benefits consists of: (a) the actuarial present value of projected benefits payable to current retirants and beneficiaries, (b) the actuarial present value of projected benefits payable to terminated vested participants, and (c) the actuarial present vel ue of credited projected benefits for active participants. The actuarial present value of credited projected benefits for active partici- pants represents a portion of the actuarial present value of projected total benefits, giving effect to estimated salary Increases to date of retirement. The portion assumed to be credited 1s the portion represented by the ratio of (a) the number of years covered service rendered as of the date of the valuation to (b) the total covered service Mich will have been rendered as of the expected date of retirement. The actuarial present value of credited projected benefits and the unfunded portion thereof reported in these financial statements differ from the actuarial accrued liability and the unfunded portion thereof developed for funding requirement determination because different actuarial cost methods are used for the two purposes. Number of System Employees Covered Covered Payroll Employees Local: Fire All fire civil service employees $1,203,434 50 Police All police civil service employees 1,387,021 55 State, IPERS All other permanent employees 6 455 1488 373 Local Systems The participating employees are required to contribute to these systems, and the State of Iowa contributes to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. Contributions to the fire and police systems are made based upon an actuarial cost method stipulated by Iowa statutes, which is essentially an aggregate cast method with no provision for any unfunded past service liability. Pension and retirement benefits for the local systems are mandated by Iowa Statutes Chapters 410 and 411. A member may retire with full benefits after reaching age 55 and having served 22 years or more. If a member has served 15 to 22 years upon termination of employment, he shall receive at age 55 a prorated benefit based on the number of years served. The retirement allowance, payable monthly for life, equals 502 of the mmber's average final compensation or average earnable compensation for the three years of highest compensation of the members. A member with five or more years' credited service she becomes totally and permanently disabled from other than duty -related causes shall receive an ordinary disability retirement allowance equal to 402 of the member's average final compensation. This percentage is lowered to 252 if the member hes under five years of service. If the member becomes totally and permanently disabled from duty -related causes, he shall receive an accidental liability retirement allowance equal to 66-2/32 of the member's average final compensa- tion. Upon the death of a member caused by performance of duty, the member's spouse, children or dependent parents shall be paid 502 of the member's average final compensation. If a member dies in or out of service after 15 or more years of service, the lump sun amount to be provided Is equal to 582 of compensation earnable by the member during the year preceding death or In the last year of service. There is an option whereby the beneficiary may receive a pension of 252 of the member's average final compensation or $75 per month. There shall also be paid for each child of a member a monthly pension equal to 62 of the monthly earnable compensation paid to an active member at the highest grade until age 18 or 22 if applicable. Pension payments are made to an unmarried surviving spouse, surviving children until they reach 18 or 22 If applicable, or to a dependent father or mother If a member has no spouse or children. CRT OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMEMS June 30, 1985 On January I and July I of each year, pensions payable to members or a beneficiary, except retirees with less than 22 years of service, are readjusted by a percentage of the increase in monthly earnable compensation of active members at the same rant and salary scale position held by the member at retirement or death. Funding Requirements Employee contributions to the fire and police systems are determined by Iowa statutes. The State of Iowa contributes to the fire and police systems to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. The employer contributions are determined as a percentage of payroll to cover the remaining amounts necessary to finance the systems. These rates are made based upon an actuarial cost method stipulated by Iowa statutes, which is essentially an aggregate cost method with no provision for any unfunded past service liability. For funding purposes, the following significant assumptions were used in the actuarial valuations as of June 30, 1985 and 1984: (1) an assumed rate of return on investments of 62 per year compounded annually; (2) projected salary increases of 42 per year compounded annually attributable to infla- tion; (3) Pre- and post -mortality life expectancies of participants based on the UP -1984 Mortality Table (set forward one year); and (4) rates of with- drawal from active service before retirement for reasons other than death, rates of disability and expected retirement ages developed on the basis of an investigation of actual plan experience. Financial Reporting For financial reporting purposes, the actuarial present value of creditec projected benefits has been computed and Included in these financial statements. The actuarial present value of Projected benefits consists of: (a) the actuarial present value of projected benefits payable to current retirants and beneficiaries, (b) the actuarial present value of projected benefits payable to terminated vested participants, and (c) the actuarial present vel ue of credited projected benefits for active participants. The actuarial present value of credited projected benefits for active partici- pants represents a portion of the actuarial present value of projected total benefits, giving effect to estimated salary Increases to date of retirement. The portion assumed to be credited 1s the portion represented by the ratio of (a) the number of years covered service rendered as of the date of the valuation to (b) the total covered service Mich will have been rendered as of the expected date of retirement. The actuarial present value of credited projected benefits and the unfunded portion thereof reported in these financial statements differ from the actuarial accrued liability and the unfunded portion thereof developed for funding requirement determination because different actuarial cost methods are used for the two purposes. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 A summary of the actuarial valuations for financial reporting purposes are as follows: Fire Pat ice Date of actuarial June 30, June 30, June 30, June 30, valuation 1985 1984 1985 1984 Net assets available5 5,026,965 Actuarial present value of projected benefits payable to current retirants and beneficiaries $ 2,951,651 Actuarial present value of credited projected benefits for active participants 3,101,475 Total actuarial present value of credited projected benefits $ 6,553,126 Unfunded actuarial present value of credited projected benefits WAS26lig Increase in total actuarial present value of credited projected benefits from last valuation $ 4.168,768 54.541,353 $3.786,011 $ 2,928,685 $1,736,659 $1,742,930 3,184,115 2.739,241 2.403,798 $ 6.112.800 $4.475.900 $4.146.728 SLI,9444632) :..655:::. :.j360a717) $ 599,163 5 329.172 5 309.431 ..... Investments Market values as of June 30, 1985 an the investments of the pension and retirement systems are as follows: Market Value Cost Fire $4,854,489 $4,903,594 Police 4,380,151 4,424,455 Iowa Public Employees Retirement System The retirement system administered by the State of Iowa, (PERS, is funded by amounts withheld from the participating employees and an amount contributed by the City. These contributions are determined by the statutes of the State of Iowa and as of June 30. 1985, the percentages to be contributed an the first $21,000 of compensation were 3.7% for the employees and 5.75% for the City. All permanent employees of the City, not covered by one of the local retire- ment systems, are members by statute of the Tows Public Employees Retirement System (IPERS). IPERS is a multiple -employer plan administered by the State of Iowa. There are approximately 128,500 active employees participating in the plan. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Members, upon termination of service after 4 years or reaching age 55, may exercise a vesting interest in a future retirement. Upon reaching age 65, or early retirement at age 55, the member will receive a retirement allowance based on a monthly formula set by the statutes. Any member who terminates employment before retirement is entitled to a refund of their contributions plus interest. Upon the death of an active or vested member, both the member's contributions and the employer's contributions, plus interest, are payable to the benefici- ary. As mentioned earlier, (PERS is a contributory system wherein all credited benefits are funded with sufficient contributions. Unlike Social Security, no liability is assessed against future IPERS contributors for payment of present IPERS benefits.. An actuarial valuation is performed annually. The most recently published report, dated June 30, 1984, shows a total asset amount of $2,264,315,065 and an accrued liability, which represents the present value of future costs attributable to prior service as of June 30, 1984, of $105,404,774, a decrease of approximately $2,661,524 from last year. To liquidate the accrued liability with annual payments commencing June 30, 1985 and ending June 30, 1998, the needed annual payment is $10,155,028. All the City's contributions for the year ended June 30, 1984, which represent approximately .34% of the total employers' contributions, have been paid within 30 days after year end. The 20 year funding payment an the liabilities attributable to the 1978 Increases in retirees' benefits 1s $4,692,442. The June 30, 1984, valuation, using the assumptions stated in the actuarial report, shows that the total 1984-1985 fiscal year cost of benefits under the System, including the State contribution, is $176,952,388 or 9.07% of covered payroll; and such fiscal year cost of benefits under the System, but exclud- ing the State contribution, is $176,452,388 or 9,04- of covered payroll. This percentage is 36% higher than last year. These total costs as a percent of pay are actually less than projected in cost studies made last year because the actual experience (as to deaths, turnover, salary increases and fund earnings) of the System was, in the aggregate, favorable in relation to expected experience. In particular, fund earnings provided approximately $76,562,000 1n excess of earnings expected under the interest rate assumption of 6.5%. The 9.04% of covered payroll contribution requirement 1s .41% less than the basic 9.45% of combined payroll contributions now being made by the employees and their employers. In 1975 the General Assembly expressed the Intent that contributions rates be reviewed annually by the General Assembly and that, if the adjusted growth rate of state general fund revenues exceeds 5.50% for the preceding June 30, contribution rates will be Increased .1- of covered pay for the members and .St for their employers. Such Increases would continue until the rate is 4% of covered pay for members and 7.2% for their employers. r CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATE7UM June 30, 1985 The General Assembly also expressed the Intent that the formula benefit be reviewed annually by them. They were to consult with the Iowa Public Employees Retirement System Division, and with the consulting actuaries, in considering an increase 1n the benefit formula. The intent that the present benefit formula be increased ultimately to 50% of the final five year average salary has now been fully realized. Contribution Schedule Other information concerning the pension and retirement systems for the year ended June 30, 1985 is as follows: IPERS $238,840 371,171 S.75f 3.70 5.751 3.70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATFIIE'N7S June 30, 1985 Nate 6. Segment Information for Enterprise Funds The City maintains seven enterprise funds. These funds are set up to operate primarily from proceeds of user charges. Segment information as of and for the year ended June 30, 1985, is as follows: Pollution Parking Control Water Sanitation Results of operations: Operating revenue Oepre: cation Operating income (loss) Operating grants Operating transfers in (gut) Interest expense Net intone (loss) Financial position: Total assets Net working capital Property and equipment, additions 6 deletions Lang -term debt Retained earnings Current capital contri- butions and transfers Total equity Results of operations: Operatingy revenue 0epreeiation Operating income (loss) Operetinq grants Operating transfers in Interest expense Net income (loss) Financial position: Total assets Net working capital Property and equipment, additions' deletions Long -tern debt Retained earnings (deficit) Current capital contri- butions and transfers Total equity $1,433,588 s 1,611,711 $1,750,219 $1,070,932 247,028 364,109 170,241 4,289 306,762 388,654 180,283 78,163 (263,812) - - - - 96,195 318,865 157,556 36,363 (103,739) 498,373 207,966 227,094 9,438,797 18,264,646 6,448, Soo 1,033,387 776,570 2,840,960 75,294 580,055 224,170 657,785 1,387,740 164,754 4,860,000 2,897,248 846,000 4,035,293 1,453,873 2,422,146 792,725 245,033 92,158 4,082,999 15,099,294 4,359,337 937,989 Housing mass Airport Authority Transportation Total 1 68,699 $ 415,344 s 763,433 1 7,113,926 24,560 101,214 237,600 1,149,041 (169,549) 89,185 (1,348,568) (475,070) 238,736 238,736 52,590 • - 754,047 639,020 160,452 - - 673,236 (102,731) (48,437) (319,100) 359,426 687,642 3,493,411 4,434,993 43,803,376 64,702 (256,631) (415,934) 3,665,036. 5,880 530,139 924,136 3,894,604 - - 2,560,564 - - 11,163,812 (239,9351 (102,333) 336,381 8,698,150 2,989 (5,456) 536.668 871,392 676,547 139,668 3,976,881 29,272,715 c4 Fire Police Employees' contributions $ 37,310i 42,979 Employer's contributions. 371,801 262,355 State contribution. 43,872 36,251 Contributions as a percentage of active member payroll: City 30.90% 18.92% State 3.66 2.65 Employees 3.10 3.10 Percentage of compensation to.be contributed for year ending June30, 1986 per actuary: City • 29.54% 17.69% State 3.66 2.65 Employees 3.10 3.10 IPERS $238,840 371,171 S.75f 3.70 5.751 3.70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATFIIE'N7S June 30, 1985 Nate 6. Segment Information for Enterprise Funds The City maintains seven enterprise funds. These funds are set up to operate primarily from proceeds of user charges. Segment information as of and for the year ended June 30, 1985, is as follows: Pollution Parking Control Water Sanitation Results of operations: Operating revenue Oepre: cation Operating income (loss) Operating grants Operating transfers in (gut) Interest expense Net intone (loss) Financial position: Total assets Net working capital Property and equipment, additions 6 deletions Lang -term debt Retained earnings Current capital contri- butions and transfers Total equity Results of operations: Operatingy revenue 0epreeiation Operating income (loss) Operetinq grants Operating transfers in Interest expense Net income (loss) Financial position: Total assets Net working capital Property and equipment, additions' deletions Long -tern debt Retained earnings (deficit) Current capital contri- butions and transfers Total equity $1,433,588 s 1,611,711 $1,750,219 $1,070,932 247,028 364,109 170,241 4,289 306,762 388,654 180,283 78,163 (263,812) - - - - 96,195 318,865 157,556 36,363 (103,739) 498,373 207,966 227,094 9,438,797 18,264,646 6,448, Soo 1,033,387 776,570 2,840,960 75,294 580,055 224,170 657,785 1,387,740 164,754 4,860,000 2,897,248 846,000 4,035,293 1,453,873 2,422,146 792,725 245,033 92,158 4,082,999 15,099,294 4,359,337 937,989 Housing mass Airport Authority Transportation Total 1 68,699 $ 415,344 s 763,433 1 7,113,926 24,560 101,214 237,600 1,149,041 (169,549) 89,185 (1,348,568) (475,070) 238,736 238,736 52,590 • - 754,047 639,020 160,452 - - 673,236 (102,731) (48,437) (319,100) 359,426 687,642 3,493,411 4,434,993 43,803,376 64,702 (256,631) (415,934) 3,665,036. 5,880 530,139 924,136 3,894,604 - - 2,560,564 - - 11,163,812 (239,9351 (102,333) 336,381 8,698,150 2,989 (5,456) 536.668 871,392 676,547 139,668 3,976,881 29,272,715 c4 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Note 7. Bonded and Other Long-term Debt General Obligation Bonds Various issues of general obligation bonds, totaling $10,500,000, are outstanding as of June 30, 1985. The bonds have interest with rates ranging from 4.10% to 8.80% and mature in varying annual amounts ranging from $200,000 to 5500,000, per Issue with the final maturities due to theyear ending June 30, 1994. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for in the Debt Service Fund. Portions of several general obligation band issues have been used to acquire or expand enterprise fund facilities. In some instances, revenue generated in the enterprise funds are used to pay the general long -teen debt principal and Interest. The liability for these bonds has been recorded in the enter- prise funds because the City intends to continue using revenue from the enterprise funds for the payment of their principal and interest. Obligations Under Capital Lease Equipment with a cost of $79,968 is being acquired under capital leases. The June 30, 1985 balance of $35,136.is due in monthly and annual installments totalling $17,805,per year, Including interest ranging from 10.77% to 17.64%, with the final installment due in December, 1987. Revenue Bonds As of June 30, 1985, the following unmatured revenue bonds are outstanding: Parking Pollution Control Yater Amount $4,860,000 $870,000 $846,000 Interest rates 6.00% to 7.00% 3.25% to 3.75% 3.50% to 4.20% Annual maturity $130,000 to %70,000 to $35,000 to $440,000 $100,000 $177,000 The revenue bond ordinances require that water, pollution control and parking system revenue be set aside Into separate and special accounts as it is received. The use and the amounts to, be included in the accounts is as follows: e Account Amount �. (a) Revenue Bond Sinking Amount sufficient to pay current bond and interest maturities. f (b) Reserved interest bones, $2, 0ntpero monthl uforn waterrnbonds, and $5,000 per month for parking bonds until the reserve balance equals the i 1 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 maximum amount of principal and interest due on the bonds in any succeeding fiscal year. (c) Depreciation, $2,000 per month for pollution control Extension and bonds, $3,000 per month for water bonds. Improvement and $5,000 for parking bonds. (d) Operations and $500 per month for the water bonds only Reserve until the account aggregates $50,000 Special Assessment Bonds As of June 30, 1985, $230,000 unmatured special assessment bonds are out. standing. The annual maturities range from $35,000 to $40,000, and the bonds have a 10% interest rate. The special assessment bonds were issued to finance new street and sewer construction and are funded by the special assessments collections. a CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA MOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS June 30, 1985 June 30, 1985 Summary of Bond and Other Lona -Term Debt Transactions Summary of Principal and Interest Maturities A summary of the changes in long -tern debt, by type, for the year ended June Annual debt service requirements to service all outstanding banded debt as of 30, 1985, is as follows: June 3D, 1985 are as follows: Increases Reductions General Obligation Obligations Under Balance in Long -Term In Lang -Term Balance Year Ending Bands Capital Leases June 30, 1984 Debt Debt June 3D, 1985 June 30 Principal Interest Principal Interest 1986 f 1,575,000 $ 628,025 $14,236 f 3,570 Bonded Debt 1987 1,575,000 543,250 9,916 2,251 General Obligation 1971 1 100,000 S - - f 100,000 S - - 1988 1,575,000 457,500 10,984 1,183 Issue Issue 1977 1,600,000 - - 300,000 325,000 1,300,000 1,200,000 1989 11575,000 371,450 1990 1,200,000 284,900 - - - - - - - Issue 1978 Issue 1979 1,525,000 - - 4,000,000 500,000 3,500,000 1991-1994 3 000 000 417 600 b j;; y;;; �,;�,� 5 laid Issue 1980 2,225,000 - - 225,000 200 000 2,000,000 2 500 000 Issue 1982 . 2700 000 - �� � Total General Obligation I124150,000 r- Special Assessment Revenue Ending Bonds Bortz RevenueYear Parking Revenue $ 4,980,000 f f 120,000 f 4,860,000 June 30 Principal Interest Principal Interest Pollution Control 940,000 - - 70,000 870,000 1986 f 35,000 t 23,000 S 340,000 f 375,360 Revenue 966 000 120 000 846 000 1987 35,000 19,500 285,000 359,443 Water Revenue � s 6.5,6 ou 1988 40,000 16,000 402,000 341,905 Total Revenue T b.8ab!000' 1989 40,000 12,000 355,000 322,617 Special Assessment S 265 000 S 1-- 1 35 000 iT.995.b05 S 230 000 'iT7.70ew 1990 40,000 8,000 1991-1995 40,000 4,000 404,ODO 303,831 1,730,000 1,252,331 Total bonded debt iI�301-.`0115 1996-2000 1,465,000 791,165 Other Debt 2001-2004 - - - - REM 1 595 000 224 179 �0 =1S -jLL-3T Employee vested benefits Long-term vacation 263,48�.30. f 443,982 1 377,766 f 329,699 Long-term sick leave �f Of 1.099!473 2 08 T S S 4b[ �a 1�� S 9 Legal Debt Margin As of June 30, 1985, the general obligation debt issued by the City did not Obligations under capital so 071 5 354 136 exceed Its legal debt margin computed as follows: leases � �, Total other debt S 1.149.54^ Assessed valuation: Total long-term debt 3204450A544 L 652A78d HIM4M 118A600f620 Real property Personal property 11,157,210,261 31,127,932 Utilities 59,785,524 Monies and credits 28.416 ' Total valuation �ia2d8al5�at37y Debt limit, Sf of total assessed valuation 162,401,607 � Debt applicable to debt limit 10 535 Legal debt margin ala CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Housing Authority Notes The housing authority project nates were Issued by the Iowa City Housing Authority to the U.S. Department of Housing and Urban Development (HUD) to finance the construction costs of the City's public housing projects. The notes bear Interest at 6.585 and at maturity It is anticipated that these short-term project notes will be refinanced with a long-term (forty year) note sale as agreed upon in the turn -key contract for each program. The principal and interest will be paid by funds received from the Housing Authority's annual contribution contract with HUD. Note 8. Changes in General Fixed Assets During the year ended June 30, 1985, general fixed asset acquisitions and disposals by type and funding source were as follows: Balance Acquisitions Balance By type: June 30. 1984 and Transfers Disposals June 30, 1985 Land S 2,941,307 S 18,780 $29,504 S 2,930,583 Buildings and structures 7,285,118 38,147 7,323,265 Other Improvements 328,511 56,122 5,046 379,587 Equipment and vehicles 2,025,130 186,774 30,283 2,181,621 Construction in progress 12 AiIY RI117i �um .-11 442 1, .a HIM By funding source: General Fund $ 3,499,370 $151,168 $40.628 $ 3,609,910 Special Revenue June 30, 1985 Funds 1,274,387 148,555 25,476 1.397,46, Gifts 86,425 100 - - 06,525 Capital Projects Chances in General Fixed Assets Funds: Gnrc.l wer'l General II.K Apaf UrpuIlltlnp fhK Agog, obligation Jw. ]0. 19et tl i,anlf . CHIMall Jv 30. 1917 bond proceeds 5,244,797 - - - - 5,244,797 Other governments ...,2 44887N�8y000 - - - - 221487 800 cp.nit) rrolKtlOn: CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 During the year ended June 30, 1985, general fixed asset acquisitions and disposals by function were as follows: Chances in General Fixed Assets Gnrc.l wer'l II.K Apaf UrpuIlltlnp fhK Agog, Jw. ]0. 19et tl i,anlf . CHIMall Jv 30. 1917 lbuq .rq 411n1 n..emu Omrca .Y ul.v.[Inn 11 ]11 3-y.�01geU 1 eym 1 eysle l 1 iy `lye cp.nit) rrolKtlOn: Mlu n.uc<mn 1 ]M.2IS' 11.1,93 IIl.3U 1 nn OntrUlen 13,]!0• .. .. 501,170 Mass Impltlo" arolca 13 14- 1I 17e Total (iMll) hYGillo" TT.7n-.tm T1_Ir's%� y Ty7R'0$2 xa.. Dv,doc.mt ' Ial. 1 1,111,11] 1 19.611 1 S,93f 1 t,@,115 AKr.aM. MAPS $3.91 3.591 9n,134 LIOra) 1.34.053 5.112 . . 4,120.211 I ]TT ea'f1S scout o,onrkI.I. IT7�("1 771 ..t I1TV91S 11157Me Na 120 Permit, Mrlroaals ren1M1 n.1,.� t 1 179.179 t 2,91 1 SJIf t 119,19 r4�alt,K.I.n t 2,175.161 •• 34. Soo 3.91,30 StrKn W ,.fftt 111 wt 2 ui"io."von? Mvlroaat srt17i�°s1ii r_v°,lnea sy±ii ].GI W11.1 IItN A1101 11!.!92 729 1... )3(11!1 1... !ere m1 n! ve 01 3... I.. M As of June 30, 1985, the composition of general fixed assets by type and function was as follows: 1Map lunau0. 1 Two Fwlpn"t ealtrvetb" la. I[rv�nv, Nue'a A9 vaa,0.a a Ferrol Total rang a0 Notnl.tr.Gal hn..a Aal.l.tntl.n 1 13.150 1 e0� 7,130 1 011 1 3-1,00 nl_yA2 l21.11 1`9 const] n.tKtlenl hit'..rol.tln I •• 1 11.730 1 •- 1 151.111 1 1 492.236 Ill. aOGUIa 1!•91 301,119 - - 112,53a • • INpw 1).l.11a0altn ll)tlGtKtla 3-T'3`f t-T1�`SSd f Ian. N,.la..11 Parks 1 161.19 1 54.920 1301.14 c 41,129 1 • • 11.162.111 0.1141. • • 126,101 9,111 01.133 - - 199,121 snarl, OL000 1.416.0-9 . • 111.112 41209.311 $Total c..1t., 1 190 j17 -A7Jiint 101 201 1 291 171 Total. I !.a1- yy4a ,1SIl"Ily7 1�0e11T- x. a0 c—It, la"'.G =1.1> unl.~a."It ILf14,IY 1 1T 216 1 ]I pl I 1417! 1 1 91.29 SIMM ad lr.fflt 10 .. _ .91,19 U��04 "�SSI X01 Total NaI•.K cn.alt] sKIra.at 11,11),740 I leel] 110y114 1 1 ,0131 3�21 .1081911 Total aarcal PFK AeaG p,! -30,l!7 11,21M.62 12I!AE !?1!!1.$1 1!l..'!I 11111E 4!I! _r� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL. STATEMENTS June 30, 1985 Note 9. Interfund Receivables and Payables As of June 30, 1985, interfund receivables and payables were as follows: 91 t Other Shared Street and Revenues Tralflc Control Other Special Pollution Oue To: General fund and Grants fund Construction Fund Conslructlm Assessaents Parking Control Fund Yater Sanitation mas fund Fund Fund Find Fund Trans posrta t ton Due Fromm: Fund General Fund { - - f • - { • " Covaunlly levelopaent 1 - 1 • • 1 • • 1 5,401 1• - 1 719 14.728 Block grant Fund 50,862 Federal Revenue _ • - - .. Sharing Fund _ - Other Revenue 1712 , " - 501 - . and Grants - - 1,721 Fund Fund - - Debt Service - 1,921 • - - - 1,721 • . _ fund 109.091 - Brld9e, Street 1 - " - - 16,291 Traffic Control - Construction Fund 976,182 . _ . .. Special Assess- .. • . _ .. _ .. cents fund 2 67,000 _ Parklnq Fund 208,50D - - 12 22 " " " ' 401,199 ' Pollution Control ' ' - - 0 Fund • - _ _ Yater Fund7,701 _ _ - - - ' ' ' ' 170 Sanitation fund 905 ' ' • - 451,187 Airport fund .. _ _- - . - • - 1,780 (busing Authority ' - ' ' - - • - _ ' 6 Fund Mast Transports- 77,181 11,119 - - - - .. - - 417,916 • - lion Fund 56.715 _ Egulpeent Main- lenance fund - Perpetual Care ' - 71 Trutt Fund 10,122 - 6plo ee Benefits . " ' ' • - - - .. trust Fund 2a5 Johnson County Council of Governeenls Trust 2,262Fund Mayor's Youth ' ' - • - - .. Fund _ - Library foundation _ - _ _ - ' 9 Fund Total iii53T�lSd �T77i9Y ..a,l.: �l ]�l�T .. • . .. • _ 91 t CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Q Equipment nt Central Library Johnson County Council of Maintenance Services Project Eldercnit Perpetual Care Foundation Goverment( Due to: Fund fund Green Fund Shoppe Fund Trust Fund Fund Trust Fund Total Due Frac• General Fund {35,638 16,519 1• - i- - {• - {- - {- - 1 52,685 Community Development Block Grant Fund 26 139 - - - - Federal Revenue - - - - - 51,027 Sharing Fund - - - - - - - Other Shared Revenue - - 3,131 and Grants Fund 108 Debt Service 317 - - - - - - 3,670 Fund Bridge, Street a _ .. 126,182 Traffic Control Construction Fund _ special lel Atfess- 976,182 menls Fund - - - Perking Fund 1,203 16 77 - - - - - - - - - - 168,199 Pollution Control - - - 209,868 Fund 3,010 3/ - - - Rater fund 395,030 1/ - - - - - ),212 Sanitation fund 11,081 11 121 8 326 291 172 851,215 Airport Fund 707 329 - - - - - 23,301 110' slap Authority - - - 221 1,263 Fund - • - - Mass Transporta. • - - - - - - - • " $l5,579 lion Fund 87,061 Equipment Main- 112 - - - - - • - - - 1]9,191 tanance Fund 19 { PerCare 123 Trustust Fu Fund • - • - - Employee Benefits - • - - • , - - 10,122 t7E Trust Fund Johnson County Council - - 2,8/7 i of Goverment, Trust Fund81 336 . - - - - • - - Mayor's Youth - - 111 Fund 129 - - Library foundation - . - - • - 138 rs Fund 22 ( Total RAW Ii r2u 22 O ` Q CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 Note 10. Urban Development Action Grant Loan Receivable The City was awarded an Urban Development Action Grant from the U.S. Department of Housing and Urban Development, in the amount of $2,081,000, for the purpose of loaning the proceeds to the developer of a downtown hotel project Mich was completed in September, 1984. During the first two years of the hotel's operations, interest is forgiven an the loan and during the third and fourth years, interest at 9Z will be accrued and added to the principal balance. BeginningOctober, 1989, the developer will make equal monthly payments. Including interest at SZ, with final payment due July, 2009 (25 years from first grant disbursement). A first mortgage exists on the hotel property for the commercial development revenue bond financing and the Urban Development Action Grant loan is secured by a second mortgage. Although the hotel is privately managed, the loan agreement provides for 25% partici- pation to any net cash flow from operations or net proceeds from the sale of the hotel to be paid to the City. When loan payments begin, the funds will be transferred to the Community Development Block Grant Fund as program intone. Note 11. Federal Revenue Sharing Federal revenue sharing monies. when received, are deposited in the Revenue Sharing Fund as a temporary depository for the purpose of satisfying the accounting and' reparting requirements of the federal revenue sharing regula. tions. The City budgets and accounts for the expenditure of federal revenue sharing montes within the appropriate operating fund, as determined by the nature and purpose of each expenditure. As expenditures are made from revenue sharing monies, the expenditure is charged to the individual operat- ing fund and a transfer is recorded as having been made from the Federal Revenue Sharing Fund. The following tabulation shows, by program, the amount of monies transferred from the Federal Revenue Sharing Fund to the various operating funds for the year ended June 30, 1985: Community protection $139,149 Nome and community environment 268,278 Policy and administration 165 295 Total '57 Bate 12. Contractual Commitments The total outstanding contractual commitments for construction projects as of j June 30, 1985, amount to 22,556,967. Note 13. Contingent Liabilities The City is named as defendant in a lawsuit seeking damages of SSOO.000 for alleged property damages. The City's counsel Is unable to determine an estimate of the possible loss or range of loss. i r t� CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATENFN75 June 30, 1985 Various other claims and lawsuits were an file against the City as of June 30, 1985- It 1s estimated that the potential settlements against the City, not covered by insurance, would not materially affect the financial position of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured Judgements against the City. The City provides health carecoverage for all of its permanent employees. The City reimburses a health insurance provider for actual medical costs Incurred plus a processing fee. Permanent City employees accumulate sick leave hours for subsequent use. The City's approximate maximum contingent ltab it lty for non -vested sick leave benefits as of June 30, 1985, is as follows: Governmental fund type $ 929,785 Proprietary fund type 265 247 Total .1,12!"213 Note 14. Industrial Development Revenue Bonds Since 1980, the City has participated in thirty-six Issues of industrial development revenue bonds, ranging from $70.000 to $24,235,000, issued for the purposes of constructing privately operated manufacturing and other facilities within the City. These bonds are not direct or contingent liabilities of the City. Revenue from lease agreements and property purchased with the band proceeds are pledged for the total payment of principal and interest an the bands and the bondholders can look only to these sources for repayment. Note 15. Subsequent Event Subsequent to June 30, 1985, the City issued $4,700,000 of general obligation bonds to finance various capital improvement projects. The bonds have Interest rates ranging from 5.502 to 7.90. and mature Invarying annual amounts ranging from $450,000 to $475,000, with the final maturity due In the year ending June 30, 1996. The City also issued $3,795,000 of Parking System Revenue Bonds. The bonds have interest rates ranging from 8.SOZ to 10.00% and mature 1n varying annual amounts ranging from $60,000 to $415,000, with the final maturity due 1n the year ending June 30, 2004. FE CITY OF IOWA CITY, IOWA ENTERPRISE FUNDS The Enterprise Funds are utilized to account for operations and activities that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing goods or services to the general public on a continuing' basis is expected to be financed or recovered primerly through user charges, or where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is apprapriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category are as follows: Parking Fund - accounts for the operation and maintenance of all the City's 'on' and -off' street public parking facilities. Pollution Control Fund - accounts for the operations and maintenance of the City's water pollution control facility and sanitary sewer system. Mater Fund - accounts for the operation and maintenance of the City's water system. Sanitation Fund - accounts for the operations and maintenance of the City's solid waste collection system and landfill. Airport Fund - accounts for the operation and maintenance of the City's airport facility. Housing Authority Fund - accounts for the operations and activities of the City's low and moderate income housing assistance and public housing programs. Mass Transportation Fund - accounts for the operation and maintenance of the City's public transportation system. a I ASSETS run Invest menta Receivables: Accounts and unbilled usage Interest Due lrmother funds Due Irm, other governments Inventories Properly and equipment: Land Buildings and structures Improvements other than buildings Equipment and vehicles As,uulated depreciation Construction In progress Igtal assets LIABILITIES AND NIINICIPAL EQUITY Liabilities: facers of outstanding checks over bank balance Accounts payable contracts Payable Accrued liabilities We to other funds We to other governments Delerred revenue Interest Payable Deposits Revenue bonds payable Ibuslny Authority notes Payable General bll atlon bonds payable Total PI, Tittles' municipal equity: Contributed Capital Retained earnings (deficit): Bond ordinance reserves Unreserved lobi awn lcipal equity Total liabilities and municipal equity CITY OF IOWA CITY COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS June 30, 1985 Ileus Ing mass Pal iullon Park Iraq [mtrol Yater sanitationA1r0ort AuthorltY TrentDartation Tota { 1,255 1 2,205 5 792.522 { 2,262,871 y 851,721 { 132,001460 5 11,797 y 311,859 111 1,158.888 LOBO 760,087 305,470 176,315 155 1,757 5,037 812,979 815 138 151 88,173 23,119 71,921 23,778 1,595 _ 5,619 1,710,780 /51,1117 151,182 8 11,062 _ _ 192,191 29,969 222,167 131,509 1,558,189 19,293 76,517 160.190 251,132 551,050 1,]50 2,627,151 356.666 ` 3,812.003 11.287 551.992 1.670,622 2,11,252 19.232,926 ),777,101 2, 3.5)9 11,376,722 1.250.196 19,160 538.96/ B,B1/ 285.510 11,131.90 72,713 82.809 66,316 8,117 21.751 35.777 2,115,015 2.171,))7 (901,365) (5,1/2,1811 (3,106.051) (1),021) (760.59)) (213.190) (712,712) (11,721,305) 59,619 3,162.276 1,051.015 115,175 21::61:5: 116126/1666 I6a::61500 11a666a662 �. 661x612 61x6261661 161::6199) 6661.01 .. a. 1 y y y 2.129 1 -- 1 2.129 1 62.97 052 15D.601 61 y 17,957 16.106 9.977 2.505 1,0612 519 1 1,121 31/,6D/ 115,297 111.596 1 i60 7,72) ]1,116 111.611 167•769 OBI 90.516 209,868 97.212 851.235 17,]01 1.21 526,005 111,101 1177,/12 106,205 • - 106,208 51.819 - - 298.059 161,1000 61,100 11,551 IB,Seb - - _ _ 9.937 • - 131.738 - . 6,576,000 4.650 70.000 070.000 16,000 :: _ _ 2,550,561 - - 2,660.661 - - 2 00�2,7,.221r,8. 22 0277 248 y61 g; Tf.7317. t T2 r,i11],615,121 11.9]7.191 g { { 115.261 1 916.102 1 212.DDI 17,610.500 {20,571,565 { 1106 2,052.116 $19,772 6 676 00/ 157.153 1.025,661 3 5578 140 /9812 1 812 811 7, x 21 39,975) 1{ ]9.3]8) ]f '976 BBI } 9 14778 =791 IB 261 616 161666!626. 111 .1 6. 661662,156167: 66165.1... 66!6711993 66210011626 1.x...1... 7..1...1... fi 7 a r REVENUE: Charges for services and use of property Miscellaneous EXPENSES: Personal services Commodities Services and charges Operating Income (loss) before depraclalion Depreciation Operating Incur (lou) NONOPERATING INCOME (EXPENSES), Gln (loss) on disposal of fixed ..cele Operating grants Interest income Interest expense Incomes (lou) before operating transfers OPERATING TRANSFERS NET, IN (OUT) Net Income (loss) Depreciation on assets acquired by contributed capital that reduces can 11 lbuted capital Increase (decrease) In retained earnings RETAINED EARNINGS (DEFICIT), BEGINNING as restated RETAINED EARNINGS (OEFICITI, ENDING I CITY OF IOWA CITY COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS Year Ended June 30, 1985 Pollution Ibus in9 Nass Perking Contra! Vater Sanitation Airport Author itv Transportatlon Total 11,133,083 {1,608,/68 11,711,009 {1,070,932 { 17,121 1 /15,D53 1 757,991 {7,016,657 SOS 3 213 36 210 21 518 291 5 112 67 269 SBR r7TT TI75�i!>j Tf37c7LDi T�',S§� T�T33dZ T -T65.`(53 TT:T(5`4{a 1 535,922 1 159,653 5 511,769 1 /32,/77a 52.599 { I7, 810 1 150,582 f 1,103,120 13,26/,329 79 30 022 261816 3346x696 .671395 x,533,542 11 55,2,88 113X970 6479 37/5 757175 2 77618 13,806 9601 t_e_ !_'°i_ 3=°°r_ T-I77�'SBB 1-2S7�4P5 1-I.B77',iBT I�I39i95B 1 553,790 6 752,763 $ 350,521 1 82,152 S (1//,989) 1 190,399 {!1,110,968) 6 673,971 2TiA6u7673-E7BBad57 309 88a654 24 ,�/y2I 21 560 101 211237 600 1 119 011 TITTKBd8) 1 1475:070 • - :: ' ' (1,100) 25,186 23,786 172,176 26),175 - ' ' ' 238,736 230,736 157 556 61,016 52,736 11,228 2/,23D 11,199 606,190 1318,8651 f . I 36 363) - - - - (160,452) - - _ (673,236) 1 160,013 1 198,373 1 207,966 1 130,899 1 (IS5,3211 1 (18,1371 1(1,073,117) S (219,591) (263,8121 96,195 52,590 751.017 679,020 1 (103,739) 1 198,373 1 207,966 1 227,091 1 (102,731) S (18,117) 1 (319,100) S 359,126 T17B7:7391 T -:9e;777 i267,;rt97 '4Sd T-i17T-iEdi,7IT) TiT�71 BB 105 BB 105 l I (t7d;9DS412"931 1,139,032 955,500 2,21/,180 565,631 (131,204) 153,8961 567,176 8,250,619 1.11"?1131) !.. !:d:Bt 58 698 150 e Je,et... 'Ar; CITY OF IOWA CITY COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS Year Ended June 30, 1985 Pollution Ibus in9 Nass Perking Contra! Vater Sanitation Airport Author itv Transportatlon Total 11,133,083 {1,608,/68 11,711,009 {1,070,932 { 17,121 1 /15,D53 1 757,991 {7,016,657 SOS 3 213 36 210 21 518 291 5 112 67 269 SBR r7TT TI75�i!>j Tf37c7LDi T�',S§� T�T33dZ T -T65.`(53 TT:T(5`4{a 1 535,922 1 159,653 5 511,769 1 /32,/77a 52.599 { I7, 810 1 150,582 f 1,103,120 13,26/,329 79 30 022 261816 3346x696 .671395 x,533,542 11 55,2,88 113X970 6479 37/5 757175 2 77618 13,806 9601 t_e_ !_'°i_ 3=°°r_ T-I77�'SBB 1-2S7�4P5 1-I.B77',iBT I�I39i95B 1 553,790 6 752,763 $ 350,521 1 82,152 S (1//,989) 1 190,399 {!1,110,968) 6 673,971 2TiA6u7673-E7BBad57 309 88a654 24 ,�/y2I 21 560 101 211237 600 1 119 011 TITTKBd8) 1 1475:070 • - :: ' ' (1,100) 25,186 23,786 172,176 26),175 - ' ' ' 238,736 230,736 157 556 61,016 52,736 11,228 2/,23D 11,199 606,190 1318,8651 f . I 36 363) - - - - (160,452) - - _ (673,236) 1 160,013 1 198,373 1 207,966 1 130,899 1 (IS5,3211 1 (18,1371 1(1,073,117) S (219,591) (263,8121 96,195 52,590 751.017 679,020 1 (103,739) 1 198,373 1 207,966 1 227,091 1 (102,731) S (18,117) 1 (319,100) S 359,126 T17B7:7391 T -:9e;777 i267,;rt97 '4Sd T-i17T-iEdi,7IT) TiT�71 BB 105 BB 105 l I (t7d;9DS412"931 1,139,032 955,500 2,21/,180 565,631 (131,204) 153,8961 567,176 8,250,619 1.11"?1131) !.. !:d:Bt 58 698 150 e Je,et... 'Ar; r t K CITY OF IOWA CITY COMBINING STATEMENT OF CRANGES IN FINANCIAL POSITION ALL ENTERPRISE FUNDS Year Ended June 30, 1985 FINANCIAL RESOURCES PROVIDED by Operations: Net Income (loss) Items which did not (provide), or require outlay of cash and Investments: Depreciation Loss (gain) on disposal of fired assets ([Atrim u)•decrease Int Accounts and unbilled usage receivable Accrued Interest receivable Due fru other funds Due from other governments Inventories lacrosse (decrease) Int Excess of outstandlnp checks over bank balance Accounts payable Accrued liabilities Due to other funds Due to other governments Deferred revenue Interest Dlyabla total flnmnclat resources Provided by operations Other sources: Contracts payable Due to other funds Out from other governments Deposits Contributed capital Proceeds fru sale of flood assets FINANCIAL RESOURCES APPLIED TO Purchase of properly and equipment Due Irom'other funds Contracts payable Due to other funds Deposits Payment of bords and notes Return of contributed capital Net Increase(decrau) in cash and Walloonls, a belov SUMMARY OF NET CHANGES IN CASH AND INVESTMENTS. Increase (decrease) In: Cash Investments Net Increase (decrease) In cash and Investments 1.16501178) 1.11001114) I.i196/721) 1.13121311) 1„(1716661 1....111111 1.1131110 1111801i9111 L,_1L,-1 5_L,-) 1 ISO �I 5 031.0571 t t 1 5 UOS.ea 619 926 100 057 191 206) 711 191) 71 666 131.001 171 783 11(106.847 61446x!141 k[!0311141 !.L'94111U !.1311,111) 1..111164:1 l... �Ll11 !.1!1!.1::1 !l!t@PIa9.111 o, Pot lotion Ileus lnq Nass Parking Control Yater Sanitation Airport Authority Transportation Total 1 (103,739) 1 498,113 1 207,966 1 227,091 •1 1102,1311 f 118,1171 f (230,995) f 117,531 247,028 361,109 170,241 4,289 24,560 101,214 237,600 1,149,041 1.400 (25,186) (23,7861 (3,269 (151,910) (83,295) (2+,710) 1155) (1 757 1289 (3,889) 6,565 (269,051) 41,081 (11,625 8,023 36,762 2,117 1,828 • - (6,959) 23,608 3,021 - - • - (658) 19,012 .. _ . 47,061 - - 47,861 (3.091) .. _ .. - . 13.0911 2,129 - - 2,429 32,923 6,595 (35,614) 5,028 761 (4,258 (25,513) (43,3381 11,551 11.3231 I.SBB 18,6821 1.058 (3.515' 1,099 1,776 (291) (1,551) (10,016) (5,0811 (1021 66,183 32,002 80,339 .. . _ -- -- -- 164 - - 164 8,042 - - 8,042 (4.1961 5.136 286 20,815 22.361 1 165,119 1 707,543 f 307,615 1 193,610 1 (11,7751 1 189,812 1 18,975) 1 1,180,369 - - 115,297 111,586 - - - - • - - - 232,8113 - • - • 851,487 - - - - 451,481 56,315 1.359,289 .. . _ 202,345 202,345 - -12,167 - - - - • - - - 12,1461 - • 245,0)3 92,I6B - - 2,909 • - 626,268 966,148 119 600 89 600 1 221,170 1 651,785 11,3811710 1 161,754 1 5,880 1; 530,139 1 921,136 1 3.891,604 451,187 417,946 - - 401,199 - - • - - - 1.210,632 _ _ _ _ • - - - - 03,597 87.597 20,000 .. . - .. .. • . _ 20.000 .. .. .. 417 - - 417 120,000 392,556 220,000 - - - - 78,210 - - 810,766 5.456 89.600 95.056 1.16501178) 1.11001114) I.i196/721) 1.13121311) 1„(1716661 1....111111 1.1131110 1111801i9111 L,_1L,-1 5_L,-) 1 ISO �I 5 031.0571 t t 1 5 UOS.ea 619 926 100 057 191 206) 711 191) 71 666 131.001 171 783 11(106.847 61446x!141 k[!0311141 !.L'94111U !.1311,111) 1..111164:1 l... �Ll11 !.1!1!.1::1 !l!t@PIa9.111 o, 0 APPENDIX E Legal Opinion GG/ we hereby certify that we have examined a certified transcript of the proceedings of the City Council and acts of administrative officers of the City of Iowa City, Iowa R(the evenue ''Issuer"), relating to the issuance of Parkingsystem Bonds borsma id Cit, dated ultiples thereofayi nl the06 in the aggregate amountnof3on of $5,00 $1,575,000. We haereasmweedeemelaw annecessarysuch to renderfthispopinionnas and other papaps bond counsel. As to questions of fact material to our opinion, we have d in the relied upon representatrons of ncethe issuthe eondsn(the e -Resolution") resolution authorizing of and in the certified proceedings awithoutnd rundertaking ltosver ify public officials furnished to us, the same by independent investigation. 6:e have not been engaged to or undertaken review the accuracy, completeness or sufficiency of the official statement or other offering material relating to the Bonds and we express no opinion relating thereto. Based on our examination, we are of the opinion, as of the date hereof, as follows: 1, The Issuer is duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to adopt and perform the Resolution and issue the Bonds. 2, The Resolution has been duly adopted by the Issuer and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid the first lien on the net revenuethefResolultionipal for theking security of Facilities system pledged by the Bonds. 6k Preliminary Draft Haynie, Smith & Allbee pmn Ewm Cann Fli I. NM1,IR AUM1 H1111 Berman d.1 W RmbuB Ahlers, Cooney, Dorweiler, HII�cNPaweAh YenrMh N. Hryn'e Ruben G. Allbee IhwvS F. A+nbrrry LAWYERS I,mn L. Nr+mbe[L Penn+ L. Hvl+ndn SIXTH AND GRAND _.I PIPI C. Bann F. MCNInnN. Ir R+M,II M. BIH,nI L w pmebm& Fra+.Hn Nennedv 300 LIBERTY BUILDING, PoW F. ABI. Ai<hanl c. knB Bnnn, I. wA++mn k,e N. PuntmFdyr BWIe Nbdr 0.. H,uter III DES MOINES, IOWA 50309.2484 =1"i. Nud W Ibm 1. N.Ih Sw,nI. R Id L. BWMin PW'd (5151 2434611 TelecoPier 1515) 243.2149 rent' L. Montan wan E. Hq n Ince A. CnynnRL EIMWh A. NHton we hereby certify that we have examined a certified transcript of the proceedings of the City Council and acts of administrative officers of the City of Iowa City, Iowa R(the evenue ''Issuer"), relating to the issuance of Parkingsystem Bonds borsma id Cit, dated ultiples thereofayi nl the06 in the aggregate amountnof3on of $5,00 $1,575,000. We haereasmweedeemelaw annecessarysuch to renderfthispopinionnas and other papaps bond counsel. As to questions of fact material to our opinion, we have d in the relied upon representatrons of ncethe issuthe eondsn(the e -Resolution") resolution authorizing of and in the certified proceedings awithoutnd rundertaking ltosver ify public officials furnished to us, the same by independent investigation. 6:e have not been engaged to or undertaken review the accuracy, completeness or sufficiency of the official statement or other offering material relating to the Bonds and we express no opinion relating thereto. Based on our examination, we are of the opinion, as of the date hereof, as follows: 1, The Issuer is duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to adopt and perform the Resolution and issue the Bonds. 2, The Resolution has been duly adopted by the Issuer and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid the first lien on the net revenuethefResolultionipal for theking security of Facilities system pledged by the Bonds. 6k City of Iowa City, Iowa $1,575,000 Parking system Revenue Bonds Page Two The lien of the Bonds ranks on a parity as to the pledqe of revenues with respect to other bonds outstanding and additional bonds, of which the right to issue is reserved upon conditions set forth in the Resolution. 3. The Bonds have been duly authorized, issued and delivered by the Issuer and revalid andely from specials obligations of the Issuer, payable provided therefor in the Resolution. q. The Bonds are not arbitrage Bonds. Under existing law, specifically excluding any pending legislation which may have a j pretracive aidototthe holderlve of theeterest Bondsrisoexempt fromefederal nincome taxes. i It is to be understood that the rights of the holders of 1 the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other or similar laws affecting creditors' rights heretofore applicable and j hereafter enacted to the extent constitutionally that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, I Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee LAWYERS 300 LIBERTY BUILDING, SIXTH AND GRAND ofe nlel DES MOINES, IOWA 50309• AW E. Ahlm 2484 Sop M. Gn". (515) 2437611 Telecopier (515) 243-2149 Gentfemen: Preliminary Draft lame. Ewm Gooses Eli). W", Philip 1. Domader David H. WA,sMll Kinnnesh H, Haynie MaA W. Eke.un H. Ru urd S.ilh Edwud W. Re.sWrR Robe" G. Allbee Th n E. Sunb"ry A. L Knpo e k Dona L H,u,idn l.hn E AkKiones, Ir. Ra ff H. smu.i L. W Rosebiook Ellub"h G"yR KmnMy RlohaN G. Sarni hhicu 1. Martin up, H. Bile wady R. H..0 III Moms E. Knopf W1114. 1. Noah Ronald L. Sulphln D.W 5"inlon Terry L. Mon. "n L Ho,.an lance A. Goppoel flliabnh A. Nelson Re: City of Iowa City, Iowa — $1,575,000 Parking System Revenue Bonds lie have acted as bond counsel in connection with the issuance of the above bonds (the "Bonds") by the City of Iowa City, Iowa, (the "Issuer'.). By separate opinion dated the date hereof, we have given the opinion, among other things, that the interest on the Bonds is exempt from taxation as income under present federal laws, excluding any pending legislation which may have a retroactive effective date prior to the date hereof. We have been asked to examine the impact on the tax exempt status of the Bonds of the possible enactment of H.R. 3838 in the fore in which it was adopted by the United States House of Representatives (the "House") on December 18, 1985. For this purpose, we assume that the effective dates of certain provisions of the bill will be enacted in a form consistent with the Joint Statement of the leaders of the House Flays and Means Committee, the Senate Finance Committee and the Treasury Department of the United States, dated March 14, 1986, (the "Joint Committee"). N.R. 3838 has not been adopted by the United States Senate. We are of the opinion that the Issuer in Section ld of the Resolution Authorizing the Issuance of the Bonds has made representations and covenants sufficient to cause the interest on the bonds to be tax exempt under federal law if N.R. 3838 is enacted in the form adopted by the House. We are also of the opinion that, assuming the accuracy of such representations and compliance with such covenants, the enactment of H.R. 3838 into law in the form so adopted by the House will not impair the tax exempt status of the bonds under present federal laws, regulations, rulings and decisions, nor subject the interest on the bonds to taxation as income under federal income tax laws. 01 r City of Iowa City, Iowa Page Two Interest on the bonds may be subject to an alternative minimum tax during any period while the bonds are held by property and casualty insurance companies for taxable years beginning after 1987. The Issuer has also covenanted to use its best efforts to meet any other restrictions on the tax exempt status of the bonds which may be retroactively imposed. Since the nature of any such additional restrictions is unknown, we express no opinion as to whether such best efforts undertaking will be sufficient to establish, preserve or maintain the tax exempt status of the bonds. Very truly yours, a r WORKSHEET 11,575,000 Parking SYstea Revenue Bonds s City of IONa City, lava DATED 511/86 DUE START 7/1/87 --•-------------------------- YEAR _----------------------------------------- AMOUNT RUN BOND YEARS ... .......... _---- CUMULATIVE .......... _---------- —---------- — COUPON YEAR ----- _.._ 01 -Jul -87 165,000 1.17 75.833 75.833 -------- 01 -Jul -87 01 -Jul -BB 165,000 2.17 140,833 216.667 -•---- 01 -Jul -BB , 01 -Jul -89 $70,000 3.17 221.667 438.333 ----- 01 -Jul -89 01 -Jul -90 $75,000 4.17 312.500 750.833 ----- -- 01 -Jul -90 01 -Jul -91 180,000 5.17 413.333 1,164.167 ------• 01 -Jul -91 01 -Jul -92 $85,000 6.17 524.167 1,688.333 ........ O1 -Jul -92 01 -Jul -93 $95,000 7.17 68D.833 2,369.167 ------ 01 -Jul -93 01 -Jul -94 $100,000 8.17 816.667 3,IB5.833 -------- 01 -Jul -94 01 -Jul -95 1105,000 9.17 962,500 4,148.333 ------- 01 -Jul -95 01 -Jul -96 $115,000 10.17 1,169.167 5,317.500 -------- 01 -Jul -96 01 -Jul -97 $125,000 11.17 1,395.833 6,713.333 ------- 01 -Jul -97 01 -Jul -98 1130,00D 12.17 1,581.667 8,295.00D ........ 01 -Jul -9B 01 -Jul -99 1145,000 13.17 1,909.167 1D, 204.167 ........ 01 -Jul -99 01 -Jul -2000 $155,000 14.17 2,195.833 12,400.000 --- ---- 01 -Jul -2000 I 01 -Jul -2001 $165,000 15.17 2,502.500 14,902.500 ........ 01 -Jul -2001 $1,575,000 14,902.50D HEARSE MATURITY • 9.46 PRICE Not less than 11,543,5DO INTEREST RATES One rate per maturity. Rales oust be oultiples of I/8th or 1/20th of 1% and must be in ascending order. CALL FEATURE Bonds maturing on or after 71111993 are callable according to the schedule In the Official Notice of Sale. fl 1 `O/ i FE 0 i BID FORM Members of the City Council Sale Date: April 15, 1986 Iowa City, Iowa Dated: May 1, 1986 Members of the City Council: Due: July 1, 1987/2001 For all or none of the principal amount of $1,575,000 Parking System Revenue Bonds of your City, legally issued and as described in the Notice of Bond Sale, we will pay the City Dollars (not less than $1,543,500) plus accrued interest on the total principal amount of $1,575,000 to date of delivery, provided the Bonds bear interest at the following rates: Interest Interest Interest Year Amount Rate Year Amount Rate Year Amount Rate 1987 $65,000 X 1993 $ 95,000 % 1999 $145,000 % 1988 65,000 % 1994 100,000 % 2000 155,000 % 1989 70,000 % 1995 105,000 % 2001 165,000 % 1990 75,000 X 1996 115,000 % 1991 80,000 X 1997 125,000 % 1992 85,000 % 1998 130,000 % We enclose, herewith, a certified or cashier's check in the amount of $31,500 payable to the City. NOT PART OF THE BID Explanatory Note: According to our computation, this bid involves the following: S Net Interest Cost Net Interest Rate Respectfully submitted, Syndicate Manager (A list of the firms associated with us in this bid is on the reverse side of this proposal.) The foregoing offer is hereby accepted by and on behalf of the City of Iowa City, Iowa, this 15th day of April, 1986. I hereby acknowledge receipt of the above-described good City of Iowa City faith check. I City of Iowa City I i r j 1 i 0 �, 61 7 a r 1 i i I I BID FORM Members of the City Council Sale Date: April 15, 1986 Dated: May 1, 1986 Iowa City, Iowa Due: July 1, 1987/2001 Members of the City Council: For all or none of the principal amount of $1,575,000 Parking System Revenue Bonds of your City, legally issued and as described in the Notice of Bond Sale, we will pay the Citplus accrued interest on the total Dollars (not less than $1,543,500) p provided the Bonds principal amount of $1,575,000 to date of delivery, p bear interest at the following rates: Interest Interest Interest Year Amount Rate Year Amount Rate Year Amount Rate 1987 $65,000 Y. 1993 $ 95,000 % 1999 $145,000 % 1988 65,000 % 1994 100,000 % 2000 155,000 % 1989 70,000 % 1995 105,000 2 2001 165,000 i 1990 75,000 % 1996 115,000 % 1991 80,000 % 1997 125,000 % 1992 85,000 % 1998 130,000 R We enclose, herewith, a certified or cashier's check in the amount of $31,500 payable to the City. MnT PART OF THE BID _ Respectfully submitted, Explanatory Note: According to our computation, this bid involves the following: Net interest Cost Net Interest Rate Syndicate Manager (A list of the firms associated with us in this bid is on the reverse side of this proposal.) The foregoing offer is hereby accepted by and on behalf of the City of Iowa City, Iowa, this 15th day of April, 1986. I hereby acknowledge receipt Cit of Iowa City of the above-described good Y faith check. City of Iowa City I o, _v� i BID FORM Members of the City Council Sale Date: April 15, 1986 Iowa City, Iowa Dated: May 1, 1986 Due: July 1, 1987/2001 Members of the City Council: For all or none of the principal amount of $1,575,000 Parking System Revenue Bonds of your City, legally issued and as described in the Notice of Bond Sale, we will pay the City Dollars (not less than $1,543,500) plus accrued interest on the total principal amount of $1,575,000 to date of delivery, provided the Bonds bear interest at the following rates: Interest Interest Interest Year Amount Rate Year Amount Rate Year Amount Rate 1987 $65,000 % 1993 $ 95,000 % 1999 $145,000 % 1988 65,000 % 1994 100,000 X 2000 155,000 % 1989 70,000 % 1995 105,000 % 2001 165,000 X 1990 75,000 % 1996 115,000 % 1991 80,000 % 1997 125,000 % 1992 85,000 % 1998 130,000 X We enclose, herewith, a certified or cashier's check in the amount of $31,500 payable to the City. Explanatory Note: According to our computation, this bid involves the following: S Net Interest Cost Net Interest Rate I hereby acknowledge receipt of the above-described good faith check. Respectfully submitted, Syndicate Manager (A list of the firms associated with us in this bid is on the reverse side of this proposal.) The foregoing offer is hereby accepted by and on behalf of the City of Iowa City, Iowa, this 15th day of April, 1986. City of Iowa City city of Iowa City I ii 7 a,