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HomeMy WebLinkAbout1986-07-29 Info Packet of 7/81 City of Iowa City . MEMORANDUM DATE: July 18, 1986 TO: City Council FROM: Acting City Manager RE: Material in Friday's Packet Memorandum from the City Engineer and Senior Planner regarding Scott Boulevard alignment. Copy of letter from the City Attorney to the Vice President and General Counsel and also to the General Manager of Iowa -Illinois Gas and Electric Co. Copy of letter from the Acting City Manager to Mr. Paul S. Cooper regarding truck traffic on Mormon Trek Boulevard. Copy of letter from the President of AFSCME, Local 183, to the Acting City Manager. Memorandum from the Department of Public Works regarding informational plates related to the Benton Street Bridge widening project. Minutes of the staff meeting of July 16, 1986. Calendar for August 1986. Copy of Official Statement from Evensen Dodge, Inc. re $38,950,000 Sewer Revenue Bonds oz I 'r City of Iowa City MEMORANDUM Date: July 18, 1986 To: City Manager and City Council From: Frank Farmer, City Engineer F15 Karin Franklin, Senior Plann Re: Scott Boulevard Alignment - Court Street to Rochester Avenue This memorandum is in response to a Council presentation by Tom Gelman at the June 30 Informal Council meeting, Mr. Gelman represents the interests of Herb and Mary Lyman who live approximately 400 feet east of the proposed Scott Boulevard alignment. A discussion of each of the comments made by Mr. Gelman follows. A copy of Mr. Gelman's presentation is attached for refer- ence and is identified as Attachment A. The alignment proposed by the City will be referred to as Alignment A in the following discussion. Alignment B refers to the route recommended by the Lymans. Both routes are shown on the map accompanying the transcription of Mr. Gelman's presentation. 1. Prominence on Hill, Alignment A rises from Court Street at approximately 4% (8% maximum allowed). The hill is 35 feet higher than at the Scott Boulevard intersection with Court Street. Alignment B would be at a lower elevation and a grade of less than 4% would be used. To eliminate down shifting by large trucks, a grade of 3% or less is recommended. 2. Gradin and Earth Movin . Grading work in either alternative will be su stant a ut not excessive. As part of the design, an attempt will be made to follow the existing topography as much as possible and the dif- ference in the cost of grading between Alignments A and B would be insig- nificant. However, Alignment B would have flatter grades and fewer grade changes resulting in a "smoother" vertical alignment. The 1,000 foot proposed radius may sound excessive. However, standards set by the American Association of State Highway and Transportation Official Policy on Geometric Design of Highways and Streets 1984 recommends an larger radius; and therefore, the Engineering Division does not reco a smaller radius, mmevenend 3. Zoning. At the time the Council evaluated the potential alignments for Scot Boulevard, approximately 10 years ago, consideration was given to the effects this arterial would have on land use patterns. After consid- erable discussion, the route identified as Alignment A was determined by the Council to have the most favorable land use impact and was, there- fore, selected. This route permits the area zoned for neighborhood commercial development to be contained on a single parcel and most effec- tively separates residential development from this commercial center. A opof Alignment B disrupts proposed land uses and has the greatest effect on the site zoned for neighborhood commercial (CN -1) development. This alignment would transverse the CN -1 zone and separate the northeastern corner from the remaining part of the zone. '(See Attachment B.) The Comprehensive Plan suggests that a neighborhood commercial site be cam act and on one tract of land. A site divided by a major trafficway nterrupts coninu,7y­or s opp1ng, impedes the flow of pedestrians, complicates car movements, may promote traffic across Scott Boulevard, and contradicts the basic principal of unity for a neighborhood shopping area. Limiting a neighborhood commercial center to one tract reduces the impact of the commercial center on the surrounding residential neighbor- hood. The Neighborhood Commercial Zone is intended to permit the development of retail sal.es and personal services required to meet the needs of a resi- dential neighborhood. Stores in this zone are meant to be supported by the nearby population and should not be expected to draw community -wide patronage. Permitting a neighborhoodcommercial center to develop on two separate tracts magnifies the scale of the commercial center, trans- landsusethe incompatibiefthe with theghbrhood surrounding residentialeercial area. results Alignment B is, therefore, not recommended. 4. Right-of-Wav Acouisition. It is anticipated that the right-of-way through this area will be given in exchange for thepaving and the old right-of-way. This is true regardless of the route selected. 5. Cit Limits. This item will not be a problem. The City has the author- ; ty�truct public facilities within the county. Upon completion, the City may annex to the easterly right-of-way line of the new road. 6. Washin ton Street Intersection. The exact grades of the streets have not ye een a erm ne . n esigning street grades, site and stopping distance are taken into account and the design will meet safety standards in either location. Either alternative can be designed to provide a safe intersection. However, the closer the alignment of Scott Boulevard is to the existing Washington Street paving, the fewer options there are for developing the best vertical alignment for Scott Boulevard. 7. Washin ton Street. Alignment B would decrease the cost of paving by shorten ng the ength of Washington Street by approximately 300 feet. 8. Storm Water Detention Basins. In either location, Scott Boulevard will more an e y ac as a am for a detention basin. The proposed deten- tion basin north of Washington Street and east of the existing Scott Boulevard was designed in conjunction with the Court Hill -Scott Boulevard Part 4 subdivision. It was never constructed because the exact location Of Scott Boulevard was not known. The maintenance of the detention basin will be the responsibility of the subdivider. 3 I 9. Storm Sewers. The storm sewer system has not yet been designed. In either location, storm intakes will be required at approximately the same interval and the cost difference will not be significant. The existing f Scott Boulevard right-of-way will be utilized for a drainage way to lessen the need for storm sewer easements. When the property is devel- evel-oped, oped,the developer will be responsible for continuing the stone sewer piping system through the development. Fran an Engineering point of view, either alternative could be utilized. The Planning staff, however, feels only compelling land use reasons would justify selection of an alternative to Alignment A. Rerouting the location of Scott Boulevard to Alignment B is expedient for a few residents residing outside of the Iowa City corporate boundaries but produces unfavorable conditions for a majority of the residents of the. area. The Planning staff continues to - endorse Alignment A. cc: Jeff Davidson, Transportation Planner Tom Gelman mmisp I ATTACHMENT A PRESENTATION TO THE CITY COUNCIL AT THEIR INFORMAL MEETING ON JUNE 30, 1986, CONCERNING SCOTT BOULEVARD Presented by Thomas Gelman on behalf of Herb & Mary Lyman Herb and Mary Lyman are property. owners residing a few hundred feet east of the proposed alignment of Scott Boule- vard north of Court Street. They wish to express their concerns about the specific proposed alignment and to suggest an alternate route for the Council's consideration. At a Council meeting in March 1986 the Board took formal action to advance the schedule for Scott Boulevard resulting in the planning and design scheduled for fiscal year 1987 and the construction for. fiscal year 1988. As a result of this action some preliminary survey work is currently under way. At the same Council meeting in March the Board also took informal action in generally approving the locating of Scott Boulevard from Court Street north to the historical alignment along a route shown on a plat prepared by MMS Consultants for Bruce Glasgow in 1980. (A copy of this plat is attached to these notes and was distrib- uted to the City Council at the June 30 meeting.) Also at the March 1986 Council meeting, resistance to completing Scott Boulevard as a truck route through the general area was raised by several igdividua is representing either themselves or groups of homeowners. Herb and Mary Lyman agree with this resistance generally but wish to address the Council with a narrower concern, specifically i the location of Scott Boulevard from Court Street north to reattach to the historical alignment, This point may become moot if the Council is ultimately swayed to locate the truck route a mile or more east of this area, but in the meantime the City Staff has been 'instructed to, and is currently proceeding with, details as to location, construction, and grant proposals. It is, therefore, appropriate and timely to make input into this process now. Herb and Mary Lyman are, of course, concerned about how Scott Boulevard will affect their property, but they are also very concerned about the impact it may have on their whole i neighborhood area. This concern was dramatically highlighted very recently in the process of the survey and marking work /Q'9 - 2 - just completed. The precise location of a proposed route for Scott Boulevard can now be seen at the sight and is shown on a plat that has been prepared by MMS Consultants dated June 25, 1986 and has been provided to each Council member. This proposed route is the alignment that the City Staff will continue to work with unless given further input by the Council. It is very noteworthy that the proposed alignment on the plat prepared for the City does not show the topography of the area. The topography is a very significant feature which becomes quite evident on the actual viewing of the site. Mary and Herb Lyman believe that careful consideration of the topography is a key element, along with others, in trying to lessen the impact of Scott Boulevard on this area of Iowa City. The Lymans ask that the City Council and the City Staff consider an alternative location for.Scott Boulevard from Court Street north to the realignment with the historical right-of-way. After meeting with the City Engineer, Frank Farmer; the owner of the land through which Scott Boulevard will run, Bruce Glasgow for Plum Grove Acres, Inc.; the engineers who prepared the plat for the City, MMS Consultants; and an engineer retained by the Lymans, Glen Shoemaker, the Lymans wish to propose an alternate route to that currently being considered by the City. (The location of the proposed alternate alignment of Scott Boulevard is shown on a plat attached to these notes which was distributed to the City Council members and staff at the June 30 meeting.) The general feature of the proposed alternate route is that it is exactly the same 1000 foot radius curve that appears on the MMS Consultants' proposed alignment, but it has simply been moved south 650 feet. Our engineer has indicated to us that he thought that a 1000 foot radius curve was very generous in a 35 mph speed zone and that it is possible that a smaller radius curve could be used which would make some of the benefits of this alternate route even greater. However, for comparison purposes using the same curve seems to be quite appropriate. A IT -1 -3- COMPARISON OF MMS PROPOSED ALIGNMENT AND ALTERNATE ALIGNMENT 1. Prominence on hill. The proposed route starts at a low point on Court Street and proceeds north climbing a sig- nificant grade until it reaches the top or near the top of a very prominent hill in the area. Our engineer estimated that the rise from Court Street to the top of this hill is somewhere in the neighborhood of 50 to 80 feet. For some residents located west of the proposed route there will be the effect of having located the road on the top of a. five to eight story building. Additionally, this higher route wi11 result in a much greater visibility of Scott Boulevard for the whole surrounding area and will be more conducive for the trans- ference of the noise that will be generated by vehicular traffic on the street. On the other hand, the alternate route that is being proposed maintains the alignment at a materially lower grade thereby facilitating the use of the terrain as a natural barrier to noise and vision. The alternate route would make Scott Boulevard a less dominent feature on the landscape. 2. Grading and earth moving. Based upon his personal Inspecti.ono t e area, but without the benefit of specific data that topographic studies would provide, Glen Shoemaker is of the opinion that grading and earth moving will be a significant construction and cost factor in the MMS proposed alignment. Changes in topography are quite pronounced over the alignment as becomes immediately apparent on a visual inspection of the area. On the other hand, it was Mr. Shoemaker's opinion that the alternate route would result in significantly less grading and earth moving at a substantial cost saving to the City. To demonstrate the potential magnitude of the cost difference, but again without the benefit of specific data, Mr. Shoemaker suggested that it might be reason- able as an estimate of the amount of grading and earth moving that will need to be completed for the MMS pro- posed alignment to assume a 10 foot depth over the length of the alignment which translates into roughly 100,000 cubic yards of earth with a cost of $100,000 based upon a $1 per cubic yard value. /0? 9f - 4 - The alternate proposed route avoids a significant amount of grading by avoiding the more extreme changes in grade that the MMS proposed route passes through. Additionally, the alternate alignment would even require less grading and earth moving to the extent that the 1000 foot radius curve could be reduced. ZoningThe Lymans were told by Frank Farmer that one of the primary reasons for the location of the MMS proposed alignment was to avoid bisecting the property owned by Plum Grove Acres which is zoned CN (neighborhood commer- cial). In fact the MMS proposed alignment runs along the easterly boundary of the CN zone. Frank Farmer further indicated that this alignment was consistent with the wishes of Plum Grove Acres. However, in speak- ing with Bruce Glasgow, president of Plum Grove Acres, he specifically indicated that he did not care where Scott Boulevard passed through their commercial property and that so long as any bisecting of the property would leave useable ground on either side of the road, that would be an acceptable route. If there are any questions about Plum Grove Acres' position, that should be verified by contacting Mr. Glasgow. The MMS proposed alignment by running along the east edge of the CN zone does in fact create a buffer between the CN zone and the RM -12 zone east of the alignment, but fails to create any buffer between the RM -12 zone which is north of the CN zone. On the other hand, the alternate align- ment, by passing through the CN zone, creates a much better buffer between the RM-12'north of the alternate alignment and the CN south of the alignment. In this way there is no RM -12 property (or only a tiny amount) that is left trapped on the west side of'Scott Boulevard. Running Scott Boulevard through the CN property also has other advantages. As can be seen from the plat developed for Plum Grove Acres in 1980, a supermarket was shown to be located in the CN tract. However, the actual zoning ordinance has resulted in a CN tract having a significantly shorter dimension from north to south and it is now un- likely that a large supermarket would locate in this area in that the Rochester Hy -Vee has recently expanded /07 91 - 5 - -I at that location. It is, therefore, probable that the best use of this CN property, and the use most consis- tent with the zoning in the neighborhood, would be for smaller strip centers on either side of Scott Boulevard rather than one large shopping area. Furthermore, development of the area into two small strip centers rather then one large center appears to be.more consis- tent with the wishes of the developer as expressed by Bruce Glasgow. Right-of-way acquisition. One potential disadvantage of the a ternate route is that the acquisition of prop- erty zoned CN would most likely be more expensive than property zoned RM -12. However, it might be possible for the City to grant to the property owner additional CN property north of Scott Boulevard to enhance the size of the CN that would be located there. In this way the developer could end up with the same amount of land zoned CN before and after the acquisition of the right- of-way with no additional expense to the City for the CN land. In any event, it should be pointed out that the alternate alignment requires 650 feet less right-of-way that will need to be acquired than the MMS proposed alignment. This in and of itself might be enough to offset any additional cost that the CN property would require. Furthermore, the City can gain by the alternate align- ment in that it will be giving up much less right-of- way that it has already acquired'along; the historical Scott Boulevard alignment. CitLimits. The MMS proposed alignment will require the annexat on of a small portion of city ground. The alternate alignment is located fully within the city limits. Washington Sn tree Intersection. The MMS proposed align- ment creates an tersect on of Scott Boulevard and Wash- ington Street which would be located either on a hill or at the crest of a hill. Washington Street will be a stop street at this location, on both the west side and the east side, when it is constructed, and stopping at other than a level grade will not be conducive to traffic in bad weather. On the other hand, the alternate alignment results in an intersection between Scott Boulevard and Washington Street at /07» -I grade. There will be a hill on Scott Boulevard after the intersection as Scott Boulevard proceeds north, but Scott Boulevard at this point will be a through street and the grade, therefore, should not be a traffic safety factor. One minor objection might be raised as to the intersection at Washington Street and Scott Boulevard on the alternate route in that Washington Street does not meet Scott Boulevard at a 900 angle. However, the radius of the Scott Boulevard curve could be reduced slightly so as to result in a 900 intersection. In the alternative, the same slight modifications to Washington Street could be made as were made on lower West Branch Road to the north thereby creating a 900 intersection. 7. Washington Street. The MMS proposed alignment will require Che City to obtain right-of-way and construct Washington Street from the point where it currently intersects the historical alignment easterly approximately 250 to 300 feet. The alternate route will avoid this portion of Washington Street entirely for the time being and will more likely than not place the responsibility for constructing all portions of Washington Street to the east on the developer. Mr. Shoemaker estimated that just the cost of the paving, not including the site work and the storm sewer work, could be as much as $20,000proposal for the portion of Washington Street that the MM0S p p would require. 8. Storm water retention basins. The development of the property east o t e Ls torical,alignment of Scott Boulevard will require storm water retention basins pursuant to the ordinances of the City of Iowa City. The 1980 plat of this area drawn for the developer shows at least 3 water retention basins north of Court Street in this area. The 1145 proposed alignment for Scott Boulevard cuts right across one of the proposed retention facilities north of Washington Street. If in fact the retention facility'is still to be located at the same location it will result in the construction of Scott Boulevard having to be completed in such a way as to serve -as a dam for the basin. This has the potential for adding additional cost to the project and also for creating continuing maintenance costs for the City. a N t /tR 99 T -7- The alternate proposed alignment for Scott Boulevard avoid the areas originally planned as retention basins. This will permit greater flexibility in the acutal con- struction of the retention basins and will place the full burden of construction and maintenance upon the developer rather than the city. Storm sewers. The construction of Scott Boulevard on t e�S proposed alignment along the higher ridge will result in the need for more extensive storm sewers and storm sewer easements than the alternate alignment would require. The low point for this area is near the inter- section of Court Street and Peterson Street. It will be a significantly shorter distance from Scott Boulevard to this point on the alternate alignment rather than the MMS proposed alignment. Furthermore, if the 1000 foot radius curve is reduced, the distance from Scott Boulevard will be even less. CONCLUSION Herb and Mary Lyman offer this alternate proposal for the location, of Scott Boulevard as a three dimensional solution as to lessen the negative impact on the entire area. The Lymans would encourage each Council member to personally view the site and to examine the location of the stakes as they have been installed along the MMS proposed alignment inasmuch as it is difficult to see the full impact of Scott Boulevard at that location without taking into full consideration the topography of the area. The•Lymans believe that there is a better place for this type of road with its anticipated uses that near to the top of a prominent hill. Finally, Herb and Mary Lyman do not wish .to diffuse objec- tions that others may have to locating Scott Boulevard as a truck route through this general area. The Council should also give these concerns -and objections full consideration. The Lymane' primary purpose in making. this presentation to you at this time is to propose a viable alternative to the proposed location of Scott Boulevard presently before the Council if the Council elects to proceed with Scott Boulevard through this area. /OR 9! I is /,G wey iui�pr .9a.a .¢caoin� iN /iP� aMrlwn or, nwmlaruw I11G PROPOSED ALIGNMENT MMS Cf NSULTAN7S, ING � J>PI mu.0 SCOTT BOULEVARD EXTENSIONil IVN� CITY JO A a,auow all DEB �� ^ M06.25.66 1-"41'339-047 047 /0? f I ATTACHMENT B f 1A tip °win iaiiiew� PROPOSED ALIGNMENT Mh1SCa+wcTnrm. Ir+C Ire, ` M Tawe cur iow+ i'Kill iaV1-t SCOTT BOULEVARD EXTENSION i 4 OEB 1� Y66-25.88 ��� 1�660 "�I'339.097 f 1A tip CITY. OF CIVIC CENTER 410 E. WASHINGTON ST July 18, 1986 Mr. Ed Hartman Vice President 8 General Counsel Iowa -Illinois Gas 8 Electric Co. P.O. Box 4350 206 E. Second Street Davenport, Iowa 52808 Gentlemen: OWA IOWA CITY, IOWA 52240 CITY (319) 356-5000 Mr. Tom Hoogerwerf General Manager, Iowa City Iowa -Illinois Gas 8 Electric Co. 1630 Lower Muscatine Road Iowa City, Iowa 52240 In conversations and correspondence with Mr. Hartman during May and June of this year, Section 14 of the electric franchise ordinance relating to the Company's purchase or transport of City -generated power from the Coralvi11e milldam site was finalized. That provision as finally negoti- ated provides that the Company will, if requested by the City, enter into an agreement to either purchase or wheel the electric energy so produced to City facilities. Although the City had initially sought to have the specifics of such an agreement included in Section 14, we concluded that a "side agreement" could accomplish the same objective and would not result in undue delay in adoption of the electric franchise ordinance. As I indicated to Mr. Hartman in a recent conversation, the City has been working closely with its engineering consultant, Shive-Hattery of Daven- port, to come up with a proposed form of agreement to carry out the intent of Section 14 of the electric franchise ordinance. I further indicated to Mr. Hartman that we would attempt to have that agreement in draft form for review b the Company prior to the City Council's adoption of the fran- chise ordinance, and that we would want a company response, including eventual execution of such an agreement, prior to final adoption of the franchise ordinance. You will find enclosed herewith a draft of a proposed agreement between the City of Iowa City and Iowa -Illinois Gas d Electric Company for the transport of electrical energy from the Coralville milldam site to the City's water treatment plant site, and this letter represents the City's formal request that Iowa -Illinois enter into such an agreement with the City. You will note that the agreement as drafted contains two blanks which we are asking the Company to fill in. Those blanks appear at page 3 of the agreement, Part II, subsections B. and C. Those blanks relate, respectively, to the delivery charge per kilowatt to be charged the City by the Company, and the percentage of cost included in each month's bill as an excess facilities charge for any excess facilities required to be provided by the Company to transport milldam energy. This agreement, as I have already indicated to Mr. Hartman, is identical to that which the City of Cedar Rapids negotiated with Iowa Electric Company for the city's /306 i 'r Mr. Ed Hartman Mr. Tom Hoogerwerf July 18, 1986 Page 2 electrical generation project at a dam site in Cedar Rapids. In that agreement, the delivery charge rate was $1.93 per kilowatt and a monthly charge of 1.6% of the company's investment in excess facilities was in- cluded in each month's bill. While the City of Iowa City would find such figures to be acceptable for purposes of its agreement with Iowa -Illinois, the figures from the Cedar Rapids agreement are based on Iowa Electric's costs associated with that project, and we feel that it would be most appropriate for Iowa -Illinois to calculate and propose figures for this agreement. mentrandgto,presentd9ouriPropo alointthisarega donstoethehCi yoPrior torthe City Council's final consideration of the electric franchise ordinance. The public hearing on the franchise ordinances was completed on July 15, and those ordinances could thus be presented to the Council for first consideration on July 29. However, due to vacation schedules of various City Council members, it is uncertain when the ordinance will be presented for first consideration, and when eventual passage might occur. The earli- est date upon which final consideration could be given to the ordinances is August 26, and I would invite you to present your response and proposal to the City at least a week prior to that date. If you have any questions concerning the proposed agreement, or desire to discuss its terms, feel free to call upon me and I will arrange a meeting between the Company and appropriate staff and consultant personnel. Sin rely, r� Terrence L. Timmins City Attorney cc: Mayor William Ambrisco City Council Members Stephen J. Atkins, City Manager Chuck Schmadeke, Public Works Director Tom Hayden, Shive-Hattery Enc. bj5/2 300 i AGREEMENT FOR ELECTRICAL GENERATION, DISTRIBdTIOII AND SERVICE This Agreement made this day of 1986, by and between the City of Iowa City, Iowa (City), and Iowa.Illinois Gas and Elec. tric Company (Company): PART I GENERAL t i A. City will construct and operate an improvement to the City Yater Treat- - , ment Facility, being a Hydro -electric generation facility (Hydro -electric Plant) In conjunction with the existing Coralville Milldam on the Iowa River. The Hydro -electric Plant will produce electricity for the primary ` purpose of furnishing the power necessary to operate the City's Yater Treatment Facility. • B. The Company shall provide Interval recording metering equipment to deter. mine the output of the City's Hydra -electric Plant, said equipment to be the property of the Company. The City shall pay a monthly excess facill- ties charge for such metering based on Company's investment in such metering as set forth in Part Il of this Agreement. The City shall pay Company for any electricity used in excess of that generated by the City's Hydro -electric Plant based on said Interval recording metering. C. While it is anticipated that the use of electricity by the City's Yater Treatment Facility will always exceed the output of the Hydro -electric ' Plant, the City will not limit production of electricity to agree with consumption. D. D. Company will continue to serve City's Water Treatment Facility and any requirements of the Hydro -electric Plant under its filed tariffs for all I electricity used in excess of that produced by the Hydro -electric Plant. pp� ii 'S k n )v3 b e. Y r � 300 F r. I 2 E. City shall submit electrical plans and specifications of the Hydro -elec- tric Plant to company for review, comments, and recommendations. City's ` generating facilities will have electrical qualities compatible with the Company's electrical system and City will make any future corrections required to maintain compatibility. I F. City and Company will enter Into an Operating Agreement to assure optimum I - utilization of facilities of both parties. Upon execution, such Operat- Iraq Agreement shall be incorporated by reference and made a part of this emI - Agreement. I G. Terms and conditions of this Agreement shall be subject to the Rules and i Regulations of the Iowa State Commerce Commission, or such regulatory - authorities having jurisdiction and the approved filed tariffs of the Company.., - - H. The terms and conditions of this Agreement may be modified by letter of agreement. I. Any provision found to be invalid shall not invalidate the entire agree- ment or release either party from its obligations under this Agreement. i PART 11 GENERATION CREDITS AND DELIVERY CHARGES i A. Company will deduct from the City Water Treatment Facility billings a _ ,,-•• credit for the electric output of the Hydro-elatric Plant, as measured by interval recording metering. The amount of the credit par Kwh for . energy generated by the Hydro•alectric Plant will be determined as the ?' average price per Kwh, including energy adjustment clause charges. but ft excluding excess facilities charges, taxes, and other charges not di- rectly related to demand and energy uses, paid by the City for the Water 1 Treatment facility retail electric uses during the tame time period, as adjusted for minimum load factor. This average price will be adjusted to reflect a minimum of a sixty percent monthly load factor if the load 5 factor at the Water Treatment iec111ty for b1111n9 purpuras 15 less than p 4 sixty percent. S } i s I` -- t. r. /3610 T 7 B. City will pay a delivery charge to Company for the delivery of electric generated demand and energy thru the Company's system to the City's Yater Treatment Facility. This charge shall be based on the maximum monthly amount of generated demand output of the Hydro -electric Plant, as meas- ured on a 15 -minute interval basis using interval recording metering. The monthly delivery charge rate shall be $ per kilowatt of maximum generated demand per month, initially, and shall change as transmission demand charges are approved by the Federal Energy Regulatory Commission In Company's Resale Electric Service Tariff. C. City will pay to Company excess facilities charges for any excess facili- ties required to provide service in excess of that permitted under the Company's Rules and Regulations. These charges shell be a monthly charge of S of the Company's investment in such facilities, including, but not limited to, Interval. recording metering. PART III PROTECTION OF THE PARTIES A. Company will endeavor to supply, but does not guarantee, uninterrupted service of generally acceptable standards In the industry. Interruptions of service for scheduled and forced outages, repairs and maintenance, Interruption of purchased power, and force maJeure; conditions on a customer's premises dangerous to persons, property or service to the City or others; and regulatory requirements. shall not be a breach of Company on its part of the Agreement. B. For the equipment and use of electricity on the City's side of the point of connection with Company's distribution system, the City shall defend, hold harmless, and Indemnify Company, Its officers, agents and employees against any loss, damage, expense and liability resulting from property damage, Injury or death of any person or persons including but not lim- Ited to employees of Company or City, or damage to property of Company or City, resulting from or arising out of or In any way connected with the Installation, inspection, maintenance, testing and use of the City's T a,. a generator, except for claims caused by the Company or the percentage of comparative negligence and fault of the Company. The. Company has the right to participate in its own defense at its own expense. C. For the equipment. distribution and use of electricity on the Company's side of the point of connection with Cmnpany's distribution system, the Company shall defend, hold harmless, and indemnify City, its officials, agents, and employees against any loss, damage, expense and liability - resulting from property damage, injury, or death of any person or per. sons, including but not limited to employees of the City or Company resulting from or arising out of or in any way connected with the instal- lation, inspection, testing and use of any generation facility, sub- station, transmission system or any other system or device owned or operated by the Company, except for claims caused by the City or the percentage of comparative negligence and fault of the City. The City has the right to participate in its own defense at the expense of the City. 0. Nothing contained herein shall be construed as affecting in any way the right of the Company to make unilateral application to the Iowa State Cmmerce Commission or any successor agency for changes in rates, rules and regulations under Chapter 176, Code of Iowa, 1985 and pursuant to the Commission's Rules and Regulations promulgated thereunder. E. This Agreement shall be subject to all rules and regulations of regula. tory authorities having jurisdiction as they may be changed frau time to time. r F. Company is granted the right to install, repair, maintain, and inspect supplemental metering equipment, at Its expense, in order to gather data about this system. Such data may be used in proceedings before the Iowa State Commerce Comanission and other appropriate authorities. All data will be made Available to the City upon request. 1300 I 5 G. Company will not interconnect with the City's facility prior to review of the facility's equipment to ensure appropriate safety equipment has been installed to protect both Company's distribution system and the City facility from abnormalities or Component failures that may occur within either the City facility or Company's distribution system, PART IV TERM OF AGREEMENT A. It is understood and agreed by both parties that the Company's obliga- tions under this Agreement are expressly conditioned upon the granting of a franchise for the furnishing of electric service in the City of Iowa City. Should the Council and the voters of the City fail to grant such franchise when applied for, or should a franchise so granted expire or otherwise become ineffectiVe, and the Canpany no longer furnishes elec- tric service in the City of Iowa City, then it is mutually agreed that either of the parties may declare this Agreement null and void. N. It is also understood and agreed by both parties that the City's obliga- tions under this Agreement are expressly conditioned upon the construc- tion of the Hydro -electric Plant by the City. Should the Plant not be constructed, for any reason, then it is mutually agreed that this Agree- ment is 1111 and void. C. This Agreement shall be for a period of 25 years and shall continue from year to year thereafter unless terminated by either party upon two year's written notice. D. This Agreement may be terminated at any time by mutual agreement of the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed in duplicate by their duly constituted and authorized officers and their respective corporate Isola thereto affixed on this _ day of 1986. F r r -r CITY OF IOWA CITY By: Mayor ATTEST: City Clark 6 IOWA -ILLINOIS OAS 6 ELECTRIC COMPANY 8y: ATTEST: I CIT'Y OF IOWA CITY j CIVIC CENTER 410 E. WASHINGTON ST. IOWA CIN, IOWA 52240 (319) 356 5C>Cc) July 11, 1986 Mr. Pau 1 S. Cooper 2331 Jessup Circle Iowa City, Iowa 52240 Dear Mr. Cooper: Recently the City Traffic Engineer reminded me of your concerns about truck traffic on Mormon Trek Boulevard. This issue has not been discussed by Council since Mr. Berlin responded to you on August 2, 1985. I have enclosed a copy of a report prepared last August by the City Traffic Engineer. The proportion of truck traffic using Mormon Trek is not unu- sual compared with other arterial and collector streets within the City. The City anticipates that its arterial and collector streets will be used by trucks. There has been no apparent increase in the use of Mormon Trek Boulevard by trucks during the past year and there is no evidence of abnormal deterio- ration of that pavement as a result of excessive truck traffic. Based on in rmation lied bthe Traffic ineer and thin- tended uuse ofethe arterial collector street system, Indonnot be ieve that a truck embargo on Mormon Trek Boulevard is warranted at this time. How- ever, the Traffic Engineer will continue to monitor this situation and will report back to me if there appears to be a significant change in the level of usage by trucks in the future. Please do not hesitate to contact me if you have any questions regarding this matter. Sincerely �urs, Dale E. Hell ng Acting City Manager /sp / cc: City Council• P Public Works Director Traffic Engineer L City of Iowa City MEMORANDUM Date: August 29, 1985 To: Charles Schmadeke, Director of Public Works From: James Brachtel, Traffic Engineer Re: Truck Embargo on Mormon Trek Boulevard I The City Council received a request for consideration of a truck embargo on Mormon Trek Boulevard. On August 20, 1985, Traffic Engineering crews conducted traffic counts along Mormon Trek Boulevard south of Melrose Avenue. The traffic count was conducted from 7:00 AM to 7 PM. The results of the traffic count are shown on the attached chart. The total number of vehicles ranged from a low 447 vehicles per hour to a high of 709 vehicles per hour. The total number of three, four and five axle trucks ranged from five trucks per hour to 16 trucks per hour. Some of these trucks were City service vehicles. Semi -trucks ranged from two per hour to five per hour. The total three, four and five axle trucks per hour expressed. as a percent of the total vehicular volume per hour ranged from a low of 0.8% to 3.3%. This percentage is lower than normal truck traffic on the City's arterial/collector system. These counts were taken in August when vehicular traffic is lower than normal because of the absence of students. Mormon Trek Boulevard is part of the City's arterial• collector street system. The City's Comprehensive Plan shows Mormon Trek Boulevard as a minor arterial. It was designed and intended to carry large volumes of traffic. As the City grows to the west, the number of vehicles will increase. The amount of truck traffic as reported above is small. If the City Council decides to prohibit truck traffic on Mormon Trek Boulevard, they should follow the truck embargo ordinance currently in place for Kirkwood Avenue. This ordinance prohibits trucks with a license of over 16 tons and exempts: 1) Vehicles making deliveries or furnishing services to premises fronting on Mormon Trek Boulevard or premises contiguous to Mormon Trek Boulevard which have no other means of access. 2) School buses and . 3) City emergency and service vehicles. Should you or the City Council require additional information or have additional questions, please don't hesitate to contact me. tp2/4 1301 I ION T RECEIVEDJUL 181986 AFSCME/IOWA COUNCIL 61 2525 E. Euclid, Suite 205 — Des Moines, Iowa 50317-6064 515/266.2622 f 00n McKee 1-800/372.6054 Plelini 0on Winter E.ecuwe v,,. President 0¢k Palmer Secratary.ireeiurer District Vice Pres.... D4b2tI Barbara Post Des Moines Larry Johnson Des Maines .%T.0 District 2 Sue Snapp Glenwood Rod Klein Council Blu/ls Drslnct3 Louise Krwlholl Sou• Cny Larry Beyer Salmond District 4 Paul Hansen Cedar Falls Emory Wunn Ala'snalllown D,slr¢r5 Jan Gnm ML Pleasant Mike Ofler Cenfer June,,,, July 14, 1985 Mr. Dale Helling Acting City Manager City of Iowa City Civic Center Iowa City, Iowa 52240 Dear Dale: Before your term as Acting City Manager expires this week, the members of AFSCME Local SB3 and I want to recognize your leadership over the past several months. You and your staff have ably managed the business of this city end have provided For an orderly transition From the Berlin administration to the Atkins administration. We, the public workers of this city, appreciate the spirit of this transition, For it has enabled us to concentrate on providing the quality of services the citizens of this community expect and deserve. We would especially like to recognize the Human Relations Department and the Job Sylvia Steinbach and her staff are doing. Despite a heavy workload, Sylvia has been attentive to our concerns and sincere in her conduct of worker relations. Congratulations on your success; the citizens of Iowa City have been well served. Si rely, Frank DePirro President, Local 183 P,D. Bax 2357 Iowa City, Iowa 5224LI cc: Iowa City Council V }.Ir In lh,pu611esnj4 /304L N7 fi City of Iowa City MEMORANDUM DATE: July 18, 1986 TO: Dale Helling and City Council FROM: Denny Gannon RE: Informational Plates Related to the Benton Street Bridge Widening Project Public Works/Engineering proposes placing two (2) informational bronze plates on -the new Benton Street bridge - one at the northeast corner and the other at the southwest corner of the structure. The wording on each plate is recommended to be as follows: HISTORICAL TABLET Public transportation across the Iowa River was first provided in this area by the Ralston Creek Ferry in 1839-40. The area's first bridge was constructed in 1853 to better serve Old Capitol at Iowa Avenue. Shortly thereafter came the railroad and Ryerson's Mill which was located just upstream of this site on the river's west bank. This site was first bridged with light steel truss spans and timber approaches in 1902-03 to serve the mill. This first bridge was known as the "Ryerson Bridge" until the old mill was destroyed by fire. The bridge later became known as the "Benton Street Bridge" due to its location. The original structure was then replaced in 1948-49 with a symmetrical five -span continuous steel deck girder bridge. This structure was designed by Ned L. Ashton and was one of the first all -welded arch girder bridges constructed in the United States. The design proved to be very economical; the project cost was $276,000. The present structure, a symmetrical five -span continous steel plate girder stringer bridge, replaced the previous structure in 1987-88. It was designed by Noel {I. Willis of NMI, Inc, and retained some of the substructure units of the previous bridge. The proposed language was discussed with Mrs. Joye McKusick, daughter of Ned Ashton residing in Iowa City. She discussed said language with her sister and other relatives; everyone is very well pleased and approves of the wording. Engineering will proceed with this proposal unless Council authorizes revisions. /3o3 a T I T0: Dale Helling and City Council FROM: Denny Gannon PAGE TWO (2) Currently, appraisals for necessary land acquisition and construction easements are being performed. At this time, it is intended that the bid letting by the Iowa Department of Transportation will be held in December of 1986 with construction to begin in January/February of 1987. Of course, these dates are contingent upon the time frame involved with obtaining the necessary right of way, easements, and federal funding. 1' . I 1 T MINUTES OF STAFF MEETING July 16, 1986 Referrals from the informal and formal Council meetings of July 14 and 15 were distributed to the staff for review and discussion (copy attached). The Acting City Manager requested that the department heads furnish to him a list of the priority items they wish to bring to the attention of the new City Manager. This list should be provided by Friday at the latest. Entries for the Public Technology achievement awards competition have been received from the City Clerk and Energy Coordinator. These will be mailed to PTI on Thursday. If any other department has ideas for this competition, they should be furnished to the City Manager's office as soon as possible. The Acting City Manager advised that meetings regarding evaluations will be scheduled within the next week. The Acting City Manager expressed appreciation for the cooperation of the staff during the past four and a half months. The staff, in turn, expressed appreciation for a job well done by the Acting City Manager. Prepared by: i�iaeuA9 Lorraine Saeger l/ I 01 )30V i I )30V i Informal Council Meeting DATE: ju, y 14, cgs 43ENDING COUNCIL ITEMS I i SUBJECT i Informal Council Meeting DATE: ju, y 14, cgs 43ENDING COUNCIL ITEMS v.. 0 0 SUBJECT oW REFTRORED DTE 22 6 COMMENTS/STATUS w az ¢ ¢ a Joint Animal Control Facilities 7-14 P&PD/ JCCOG continue to explore joint Police effort. Report to Council by November 1986. Follow up with First National Bank Sculpture Donation 7-14 Parks & Re personnel after August 1. Discuss with City Manager. Pedestrian RR Crossing on south 7-14 City Manag r/ Contact CRANDIC re. blocking crossing far several hours, end of Ferson Avenue. City Atto ey especially during the evening. ISCUSS Issues safe. Explore improvements of steps, signage on Highway 6, over- pass, etc. v.. I _UW az Ragu lar Counc i 1 Meeting DATE DUE DATE:Jul.. 15 - 1986PENDING COUNCIL ITEMS _UW az SUBJECT W ~w REFERRED 9W To DATE DUE W W Fr EPS EPS o a COMMENTS/STATUS Vacation of Broadway Street 7-15 P&PD Passed and adopted. Waived second consideration. Riverbank Erosion 7-15 Public Wor s Check N.E. corner of Burington and Riverside Drive as per recommendatio of Riverfront Commission. Cable TV Ordinance Amendments a 7-15 ACM 11 Waived second consideration - passed and adopted. Swimming Pool A&E Contracts 7-15 City Cle6 Mayor will execute only upon approval of architect. F I SV M T Ul TH F S t z 3 µ s e 7 7 BAM-Magistrate 10.30AM-Bid 0 penin LOAM -Staff Meetin (Conf Room ) 8AM-Magistrate Court (Chambers) (Conf Room) Court (Chambers) 7:30PH-Riverfront •30PH-Informal Comm (Sr. Center) 7:30PM-Formal P6Z _ - - P&Z (Sr. Center) 7:30PM-Historic (Chambers) Preservation Co . . (Public Library) 10 it 30AM-Houein i3 �s AM -Magistrate p A Peals Boar LOAM -Staff Meeting 8AM-Magistrate Court (Chambers) (Public Library) (Conf Room) Court Chambers (Chambers) PM -Informal Council (Chambers AH -Housing Comm PM -Senior Center Comm (Sr. center) •30PM-Resources Conservation tpublic Library) 4:3OPM-Broadband •30PH-Board of Adjustment (Chamb) 7:30PM-Airport Comm (Transit Comm (Public Lib) Telec?T 1;Icat on Comm {cnantbers - - Facility) :30PM-Council - (Chambers) �7 /P 17 za zi Zz -9 AM-MagistrateLOAM-Staff Meeting BAM-Magistrate Court (Chambers) •30PM-Committee o (Conf Room) Court(Chambers) COmmnit Needs (Public Library) 4PM-Design Review Committee (Public Library, Rm B) :30PM-Informal 7:30PM-Formal P&Z P&Z (Sr. Center) (Chambers) •6 ad 2 y 30 8AM-Magistrate Court (Chambers) LOAM -Staff Meeting BAM-Magistrate (Conf Room) Court (Chambers) 3( 7PM-Informal 7:30PH-Council 4PM-Library Board (Public Library) Council (Chamber ) (Chambers) 7:3OPM-Human Rights Comm (Sr. Center T 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 Legislation'% OFFICIAL STATEMENT (NEW ISSUE) $3899509000 Sewer Revenue Bonds City of Iowa City, Johnson County, Iowa Bonds Dated: August 1, 1986 Principal Due: July 1,1989/2012 The City is authorized by Iowa Code, Chapter 384, to issue its revenue bonds for the purpose of providing funds for the construction of improvements to its wastewater treatment system. The Bonds will be limited obligations of the City payable solely from the net revenues of the City's Sewer System. The Bonds will be issued as fully registered Bonds of single maturities in denominations of $5,000 or any multiple thereof, will be dated August 1, 1986, and will mature serially on July 1, in the years and amounts as follows: Year Amount Year Amount Year 1989 $ 650,000 1997 Amount $1,100,000 1990 625,000 2005 $1,975,000 1991 1998 1,175,000 2006 21125,000 725,000 1999 1,250,000 2007 2,300,000 1992 775,000 2000 1,350,000 2008 1993 825,000 2001 1,450,000 2009 2,600,000 1994 900,000 2008 2,700,000 1996 960,000 1,575,000 2010 2,925,000 1996 2003 1,700,000 2011 3,150,000 1,000,000 2004 1,825,000 2012 3,400,000 Bonds maturing on or after July 1, 1996, 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 July 1 and January 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 $38,171,000 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 $779,000 payable to the City. The City will act as Bond Registrar/Tranafer 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 Ahlers, Cooney, Dorweiler, Haynie, Smith & Alibee, Attorneys of Des Moines, Iowa. BIDS RECEIVED UNTIL: Tuesday, July 29,1986 ®11:00 A.M., Central Time, Office of the Finance Director Civic Center, Iowa City, Iowa BIDS CONSIDERED: Tuesday, July 29, 1986 ® 7:30 P.M., Central Time RATING: Application has been made to Moody's Investors Service, Inc. for the Bonds. The date of this Official Statement is July 11, 1986. ON EVENSEN DODGE, INC. Financial Consultants ME 3608 IDS Tower, Minneapolis, Minnesota 56402 612/338.3535 all T 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 ction with any representation other than those contained herein in conne the offering of the Bonds and, if given or made, such information 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 ii 9 11 I Page Roster of City Officials . . Notice of Sale iii Official Statement . . . . . . . . . . . ' ' ' ' ' ' ' ' ' . • • iv Introduction . . . ' ' ' • ' ' ' • . . • . • • • • . 1 Authority for the Issuance of the Bonds . . . . . . . . . . ' 1 Purpose of the Bonds ' ' • ' ' • • • • • • • I Description of the Bonds I General Description2 Transfer and Ownership of•the *Bonds•2 Redemption ' ' • • • ' • • • . 3 Debt Service Requirements . . . . . . ' ' ' ' ' ' ' ' • ' ' 3 Security for the Bonds .' ' ' . . ' ' ' ' ' • • 4 . . . ' . ' Pledge of Net Revenues . 5 Debt Service Reserve Fund 5 Improvement Fund . . . . . . . . . ' ' ' ' Surplus Revenue . . . ., ' ' ' ' • • • . . . . . . ' ' ' ' Rate Covenant . . . . ' ' ' • ' ' • S . . Additional Bonds . . . . . . . . . ' ' . ' ' ' ' • • ' ' • 6 Statutory Lien . . . . . . . ' ' ' ' ' ' ' ' ' • • 6 Other City Obligations Payable From'Sanitary Sewr e System Revenues The Iowa City Sanitary Sewer System 7 Financial Consultant B Rating . . ' . . . . . . 11 . . . . . . Tax Exemption • 11 . . Pending Federal Taxi Legislation. 11 . . . . . . . Litigation . 11 . . . . . • Closing Documents . . . . . . . . . . . 14 Certification . ' ' ' ' . ' ' 14 Legal Matters . . . . . . . . . . 14 _- Miscellaneous . 14 _ Appendix A --General Information Concerning the City Appendix B --Bond Resolution of Iowa City 15 Appendix C --Sewer Rate Ordinance Appendix D --Financial Statements Appendix E --Legal opinion Worksheet Bidsheets ii 9 11 I II 0 4 i t t it 'f CITY OF IOWA CITY, IOWA Current Term Expires Mayor William Ambrisco January, 1988 CITY COUNCIL IarryHaker _ January, 1988 George Strait January, 1988.,. , Ernest Zuber January, 1988 - Este Dickson January, 1990 Darrel Courtney January, -.1990 John McDonald January, 1990 ADMINISTRATION Dale Helling Acting City Manager Rosemary Vitosh Acting Asst. City Manager Kevin O'Malley Acting sFinance Director Marian X. Karr City Clerk Terrence L. Timmins City Attorney i Ahlers, Cooney, Dorweiler, Haynie, Smith 6 Allbee Bond Couneel--Des Moines,'Iowa -•. Evanson Dodge, Inc. Financial Consultants Minneapolis, Minnesota Des Moines, Iowa /3o,G I i I: V NOTICE OF BOND SALE $38,950,000 SEWER REVENUE BONDS CITY OF IOWA CITY, JOHNSON COUNTY, IOWA Time and Place of Sale: Sealed bids will be received at the office of the Finance Director, Civic Center, Iowa City, Iowa until 11:00 o'clock A.M. on the 29th day of July, 1986, for the bonds hereinafter described. At thehour above named all sealed bids which have been received will-bereferred 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 bidsto 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 7:30 o'clock P.M. (Central. Daylight Time) 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: SEWER REVENUE BONDS, in the principal amount of $38,950,000, to be dated August 1, 1986, in the denomination ,of $5,000 or multiples thereof,and:to mature as follows: Principal Maturity Amount July 1st $,-x650,000 1989" 625,000 1990 725000 1991 775,000 1992 825,000 1993 900,000 1994 950,000 1995 1,000,000. 1996 1,100,000 1997 1,175,000 1998 1,250,000 1999 1,350,000 2000 1,450,000 2001 - 1,575,000 2002 1,700,000 2003 1,825,000 -2004 1,975,000 2005 2,125,000 2006 2,300,000 2007 2,500,000 2008 2,700,000 2009 2,925,000 2010 3,150,000 2011 3,400,000 2012 iv /304 I Optional Redemption: All of said bonds due after July 1, 1995, will be subject to call prior to maturity in whole or from time to time in Part, in inverse order of maturity and within a maturity by lot on said date or on any interest payment date thereafter at the option of the Issuer, upon terms of par plus accrued interest to date of call, plus a premium expressed as at percentage, as follows: Redemption Date 0.0$ Interest: Interest on said bonds will be and semiannually on the let day Principal and interest will bController. of Julpayable nand oJanuary �thereafter. e payable at the office of the City Lien: The obligation of the revenue bonds will constitute a lien on the net earnings of the Municipal Sanitary Sewer Utility. Parity Bonds: The City reserves the right and privilege to additional revenue_ bonds from time to issue payable from the same source, ranking on a parity with the bonds herein authorized, in order to pay the cost of future extensions and improvements to said Municipal Sanitary Sewer Utility, but that before any Such bonds ranking on 'a parity are issued, there will have been procured a statement of an independent certified Public Accountant, consulting engineer or financial consultant, not a regular employee of the City, reciting the the opinion, based upon necessary investigations, that the net revenues of (with Municial Sanitary Sewer were ieyI for the preceding fisto atcal year maximum amount that will.be required�in any Pie al least 1.25 times the longest maturity of any of the then outstanding y bonear ds priorto obthe oth 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 Porn 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 the address of the owner of the bond as of the record date as shown upon surrenders off the the B nd Registrar.The Issuernwillofurnish principal lits will be made each named owner one bond for each annual maturity. Additionalnbonds in lesser denominations will be furnished if an owner so requests. To expedite closing, the Bonds will be registered in the name of the bidder enor inethe name to each annual Participant listed in the bid and in may be mutually agreed between the issueriand the purcal haser. or otherwise as V 4366 I Price July July 1, 1, 1995 1996 and and January 1, 1996 January 1, 1997 101.5$ July July 1, 1, 1997 and January 1, 1998 101.0$ 1998 and thereafter 100.5% 10 0.0$ Interest: Interest on said bonds will be and semiannually on the let day Principal and interest will bController. of Julpayable nand oJanuary �thereafter. e payable at the office of the City Lien: The obligation of the revenue bonds will constitute a lien on the net earnings of the Municipal Sanitary Sewer Utility. Parity Bonds: The City reserves the right and privilege to additional revenue_ bonds from time to issue payable from the same source, ranking on a parity with the bonds herein authorized, in order to pay the cost of future extensions and improvements to said Municipal Sanitary Sewer Utility, but that before any Such bonds ranking on 'a parity are issued, there will have been procured a statement of an independent certified Public Accountant, consulting engineer or financial consultant, not a regular employee of the City, reciting the the opinion, based upon necessary investigations, that the net revenues of (with Municial Sanitary Sewer were ieyI for the preceding fisto atcal year maximum amount that will.be required�in any Pie al least 1.25 times the longest maturity of any of the then outstanding y bonear ds priorto obthe oth 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 Porn 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 the address of the owner of the bond as of the record date as shown upon surrenders off the the B nd Registrar.The Issuernwillofurnish principal lits will be made each named owner one bond for each annual maturity. Additionalnbonds in lesser denominations will be furnished if an owner so requests. To expedite closing, the Bonds will be registered in the name of the bidder enor inethe name to each annual Participant listed in the bid and in may be mutually agreed between the issueriand the purcal haser. or otherwise as V 4366 I T 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 $779,000. 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. , FORM OF BIDS All bids shall be unconditional except as provided on the official bid form of the issuer or in this notice, for an entire issue ofbondsfor a price not less than 98 percent of par, plus accrued interest, and shall specify the rate or rates of interest 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 aggregating any permissible discount, if any, with the interest payable by the Issuer over the life of the bonds in accordance with the terms of 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.) vi 1349 'J W I 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. LEGAL OPINION Said bonds will be sold subject to the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & 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 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 bide, 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 C ty of Iowa C ty, Iowa vii /306 r -I AJ t (Mis pege has been left blank intentionally.) I irr I Official Statement $38,950,000 Sewer 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 $38,950,000 amount of Sewer Revenue Bonds (the Bonds) of the City of Iowa City, Johnson County, Iowa (the City). All reference to and summaries 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 reference to the complete provisions thereof.. This Official Statement is not to be construed as a contract or an agreement between the City and purchasers the Bonds.or holders of any of " AUTHORITY FOR THE ISSUANCE OF THE BONDS The Bonds are being issued pursuant to "A Resolution Authorizing and Providing for the Issuance and Securing the Payment of $38,950,000 Sewer Revenue Bonds e Of Iowa under Provisions of theCity CodeofiIowa, and Providing for ', Iowa,a M thodthe of Payment of said Bonds" (the "Resolution") under the authority of Chapter 384 0£ the City Code of Iowa. The Resolution must be approved by the City Council prior to the delivery of the Bonds. PURPOSE OF THE BONDS The Bonds are being issued for the purposes Of financing the alteration and expansion of the City's existing sewage treatment plant and facilities and the construction of a new sewage treatment plant, of refunding certain general obligation indebtedness of the City, debt service on which was formerly paid out of sewer utility revenues, and providing a debt service reserve fund for the Bonds. �4{ I a V I T The following is a summary of the estimated sources and applications of funds required for these purposes: Sources: Principal Amount of the Bonds $38,950,000 Investment Earnings on the Proceeds of the Bonds 3,375,712 Total Sources $42,325,712 Applications: Deposit to Project Fund Deposit to Debt Service Reserve Fund Deposit to Sinking Fund for Capitalized Interest Deposit to Refunding Fund Discount and Costs of Issuance Total Applications $33,911,000 3,717,300 2,030,234 1,669,200 997,978 $42,325,712 Accrued interest from August 1, 1986 to the date of, delivery of the Bonds will be deposited in the Sinking Fund. DESCRIPTION OF THE BONDS GENERAL DESCRIPTION The Bonds will be dated August 1, 1986, will bear interest from August 1, 1986 (payable on January 1, 1987 and semiannually thereafter on each July 1 and January 1) and will, mature on July.I of the indicated years and in the principal amounts set forth on the cover page of this Official Statement. The Bonds are issuable only as fully registered bonds in the denominations of $5,000 or any multiple thereof. 'The City Controller of the City of Iowa City, Iowa will be the Regietrar/Transfer Agent/Paying Agent. 'r! R Interest on the Bonds will be paid by check or draft mailed to the person in whose name such Bond is registered on the registration books maintained for that purpose at the office of the City Controller at the close of business on the fifteenth day of the month next preceding each interest payment date. Principal and redemption price if an on the Bonds when due will be payable solely at the office of the City Controller. 2 I TRANSFER AND OWNERSHIP OF THE BONDS Any Bond may be transferred by the person in whose name it is registered, in person or by his duly authorized attorney, at the Office of the City Controller, subject to the limitations and upon payment of the charges, if any, provided in the Resolution, and upon surrender of such Bond to the City Controller, accompanied by a written instrument of transfer duly executed by the registered owner in person or his duly authorized agent, in form satisfactory to the City controller. Whenever any Bond is surrendered for transfer, a new Bond or Bonds, registered in the name of the transferee or transferees, of the same series, .interest rate and maturity and for a like aggregate principal sum shall be delivered at the office of the City Controller. To the extent of authorized denominations, one or several Bonds may be transferred for one or several such Bonds of the same series, interest rate, maturity, and aggregate principal amount. All such transfers shall be made without expense to the holder of such Bonds, except as stated above, and except that the City Controller shall require the Payment by the holder requesting such transfer of any tax or other governmental charges required to be paid with respect to such transfer. No transfers are required to be made during the fifteen days preceding an interest payment date for the Bonds or during the forty-five days next preceding the date fixed for redemption of the Bonds. REDEMPTION The Bonds maturing on or before July 1, 1995 will not be subject to redemption prior to their respective maturity dates. The Bonds, maturing on and after July 1, 1996 may be redeemed prior to their respective maturity dates at the option of the City from any moneys available therefor on and after July 1, 1995, in whole or in part on any interest payment date in inverse order of their maturities and by lot within a maturity, at the redemption prices (expressed as percentages of principal amount) as set forth below, plus accrued interest to the redemption date: Redemption Date RedemptionPrices July 1, 1995 and January 1, 1996 101.5% July 1, 1996 and January 1, 1997 101.0% July 1, 1997 and January 1, 1998 100.5% July 1, 1998 and Thereafter 100.0% Notice of redemption is to be mailed not less than 30 days prior to the redemption date to each registered owner of a Bond called for redemption shown on the books of registry. Failure to mail such notice to a particular Bondholder or any defect in such notice shall not affect the sufficiency of the proceedings for redemption of other Bonds. Each $5,000 portion of a registered Bond shall be treated as a separate Bond in the selection by lot of Bonds to be redeemed. 3 /306 T n DEBT SERVICE REQUIREMENTS The following schedule sets forth the estimated annual debt service requirements for the Bonds: Fiscal Year Ending June 30 Principal Interest (1) Total 1987 $ 2,791,571 $ 2,791,571 1988 - 3,045,350 - 3,045,350 1989 $ 650,000 - - 3,045,350 -- - - 3,695,350-- "- 1990 625,000 3,007,650 3,632,650 - 1991 725,000 2,969,837 -" 3,694,837 1992' 775,000 2,924,162 3,669,162 - 1993 B25,000 " 2,873,400 - 3,698,400` 3.994 900,000 2,817,300 3,717,300 -` 1995. 950,000 2,753,850 3,703,850 - 1996 1,000,000 2,684,500 3,684,500 " 1997 1,100,000- 2,609,500 3,709,500 1998 - 1,175,000 2,525,900 - 3,700,900 1999 1,250,000 2,436,600 3,686,600 2000 1,350,000 2,340,350 3,690,350 2001 1,450,000 2,235,050 .3,685,050 - 2002 1,575,000 2,120,500' 3,695,500 2003 1,700,000 1,996,075 3,696,075 2004 1,825,000 1,860,075 3,685,075 2005 1,975,000 1,713,162 3,688,162 2006 2,125,000 1,553,187 3,678,187 2007 2,300,000 1,381,062 3,681,062 2008 2,500,000 1,194,762 3,694,762 2009 2,700,000 992,262 3,692,262 2010 2,925,000 772,212 3,697,212 2011 3,150,000 533,825 3,683,825 " 2012 3,400,000 277,100 3,677,100 $38,950,000 $55,454,592 $94,374,592 (1) Calculated at an estimated net interest rate of 8.1058. 4 I SECURITY FOR THE BONDS PLEDGE OF NET REVENUES The Bonds are limited obligations of the City. The principal of and interest on the Bonds (and any Parity Bonds hereafter issued) are payable solely from and secured equally and ratably by a pledge of Revenues of the system, subject to the application thereof on e th terms and in the manner provided in the Resolution. hereto for a copy of the Bond ResolutiSee the e on. The Pledgexpensevenues shall is es subject to the payment of Current Expenses; l include cost of operating, maintaining,repairingh and reasonable nd the esystem,y includingpurchases at wholesale, if any, salaries, of materials and supplies, buwages, and costs t excluding depreciation and principal. of and interest on the Bonds and any Parity bonds or payments to the various funds established herein. Capital costs , depreciation and interest or principal payments are not system expenses. c ... ."Net Revenues" means the .gross earnings of the system after deduction of Current Expenses. "System" shall mean the municipal sanitary sewer utility o£ the City comprising part of or used as a part of the System, including ..all improvements and extensions made by the City while any of the Bonds or Parity Bonds remain outstanding; all real and personal property; and all appurtenances, contracts, leases, franchises .and other intangibles; DEBT SERVICE I RESERVE FUND Fund") which is The Resolution establishes a Debt Service Reserve Fund (the "Reserve amount equal to thein maxi red um to Bann ale Debt Serviced on the s of he uBonds. If hereinp additional Bonds on a parity with the Bonds are issued as described necessary to makre e e the amo depositedl be from t t ondep deposit in he thecRReserve Fund equals to the maximum future annual Debt Service on the Parity Bonds subject to limitations required for lawful issuance and exemption from taxation. Money in the Reserve Fund shall be used solely for the purpose of paying principal at maturity of or interest on the Bonds and Parity Bonds for the payment of which insufficient money shall s available in the Sinking Fund. Whenever it aha 11 become necessary to so use the Reserve money se the Reserve Fund, the City must make monthly payments into rve Fund until it shall have been restored to the required minimum amount. In each month there shall be deposited in the Reserve Fund an amount equal to 256 of the amounts required by this Resolution to be deposited in such month in the Sinking Fund until the Reserve Fund shall have been restored to the required minimum amount. IMPROVEMENT FUND Money in the Revenue Fund shall be disbursed to maintain a fund to be known as the Sewer Improvement Fund (the "Improvement Fund"), to the extent of all remaining moneys in the Revenue Fund through June 30, 1987. Beginning July 1, 1987, the minimum amount to be deposited in the Improvement Fund each month shall be $20,000; provided, however, 5 / 306 Ell I that when the amount of the deposits in the Improvement Fund shall j equal or exceed $2,000,000, no further monthly deposits need be made into the Improvement Fund except to maintain it at such level. Money .I in the Improvement Fund not otherwise specially limited by other provisions of the resolution shall be used solely for the purpose of paying principal of or interest on the Bonds or Parity Bonds when there shall' be insufficient money in the Sinking Fund and the Reserve Fund;- and to the extent not required for the foregoing, to pay the cost `of: extraordinary maintenance ,expenses or repairs, renewals and replacements not included in the annual budget of revenues and current expenses, payment of rentals on any part of the System or payments due for-anyproperty purchased as a part of the System, and' for capital li improvements to the System. Whenever it shall become necessary to so use,money -in theImprovement Fund, the payments required above shall be" continued "or resumed- until it shall have been restored to the required minimum amount. SURPLUS REVENUE - All money remaining in the Revenue Fund at the close of each month may be deposited in any of the funds created by the Resolution, to pay for extraordinary repairs or replacements to the System, or may be. used to pay or redeem the Bonds or Parity Bonds, or for any other lawful Purpose.— .. RATE COVENANT The City has established just and equitable rates or charges for the use of the service rendered by the system, these rates or charges to be paid by the owner of each and every lot, parcel of real estate, or building that is connected with and uses the System, by or through any part of the System or that in any way uses or is served 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 to maintain net'!'revenues not less than 1.10 times the amount required for the payment of 'principal and interest (except' for capitalized interest) on the Bonds and Parity Bonds and to provide for the creation of reserves as provided in the Resolution. ADDITIONAL BONDS The City will issue no other Bonds or obligations of any kind or nature payable 'from or anioying a lien or claim on the property or revenues of the System haviing 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: . c �k,; 1301 (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 the following condition is met: 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 CPA, consulting engineer or financial consultant, not a regular employee of the City, 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 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. STATUTORY LIEN Iowa Code, Section 384.84 subdivision (1) imposes a lien on property on which sewer charge payments are delinquent. A city which has imposed such charges which have become delinquent may certify to the County Treasurer the amount of the delinquent charges. The Treasurer then imposes the lien on the property. The lien ranks equally with ordinary property taxes and is collected in the same manner as ordinary property taxes. OTHER CITY OBLIGATIONS PAYABLE FROM SANITARY SEWER 6YSTEM REVENUES As of July 1, 1986, the City has outstanding $800,000 in Sewer Revenue Bonds at an average interest rate of approximately 3.55%. The City intends to defeass these outstanding bonds with Funds on hand legally available for the purpose prior to the issuance of the Bonds. 7 /,3106 I T 1 l I I THE IOWA CITY SANITARY SEWER SYSTEM The City's sanitary sewer system operates and maintains the sewer treatment plant, twelve lift stations, approximately 156 miles of sanitary sewers plus the storm sewer system and the stored water detention basins. Among the improvements to be financed by the Bonds are the alteration and expansion of the existing sewage treatment plant and the construction of a new sewage treatment plant. The System is operated by and rates are established by the City Council. Table 1 presents statements of revenue and expenses for the sewer 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 1986 year. Table sets forth the historical debt service coverage of the system. TABLE 1 STATEMENTS OF REVENUE AND EXPENSES TrTace earn e REVENUE: 1985 1984 1983 1982 .- ,. Charges for Services and Use of Property $1,608,468 $1,375,599 $1,383,638 $1,182,457 Ni scel1 aneous 3.243 57.846 - 4.080 4,591 $1,611,711 $1,433,447 $1,387,718 $1,187,048 EXPENSES: - Personal Services S 459,653 S 441,906 S 405,849 $ 362,711 mm Coodities 52,599 59,335 64,759.. 114660 Services and Charges 346.696 320.448 281.385 305,942 S 858.948 $ 821.689 - $ 751.993 S 783.313 Operating Income (Loss) Before Depreciation $ .752,763 $ 611,758 3 635,725 $ 403,735 Depreciation 364.109 363.841 205.745 242.242 Operating Income (Loss) $ 388,654 $ 247,917 3 429,980 $ 161,493 NON-OPERATING INCOME (EXPENSES): Gain (1053) on Disposal of Fixed Assets $ -- S 10,284 $- Operating Grants Interest Income 267,275 225,279 236,508 270,726 Interest Expense (157,556) (177,123) (108,101) 205073) Income (Loes).Before Operating Transfers S 498,373 $ 306,357 S 478,387 $ 227,146_ OPERATING TRANSFERS IN (NET) -0- 1,026 254,635 (9,696) Net Income (Loss) S 498,373 $ 307,383 $ 733,022 $ 217,450 RETAINED EARNINGS (DEFICIT), BEGINNING 955,500 648.117 (84,905) (302,355) RETAINED EARNINGS (DEFICIT), ENDING $1.453,873 L 955.500 S 648.117 L 84 905) a. 4 8 /3d9 I TABLE 2 1985/86 Sanitary Sewer System Operating Budget COMPLIANCE WITH BOND RESOLUTION COVENANTS - Table 4. below. shows projectedrevenues and expenses of the sewer system for the,next four fiscal years and the City's compliance with the: requirementsof: the Resolution. - 9 /30& fl Charges for Services $1,550,000 Interest Income 21,201 Miscellaneous 720 Total Receipts $1,571,921 .Personal Services $ 487,412 Commodities 72,410 Services and Charges - 422,036 Capital Outlay .1,500 -- Transfers 552,435 Total Disbursements '$1,535,793 TABLE 3 '-- Seger Revenue Bond coverage Fiscal Net Revenue Available For Debt Service Re uirenants• a Year Revenue Expense Debt ServiceIrrincipal interesto s vara ,1975.76 3 672,893 $349,184 $ 323,704 3 6 '69 $45,000 50,000 $49,960 $ 94,960' 49,787 99,787 3.4 4.0 1976-77 ..1977-78 796,949 400,480 855,256 393,529 461,727 50,000 50,000 47,222 97,222 45,833 95,833 - 4.7 4.5 '•'1978-79 1979-80 947.758 515,847 431,911 1,229,279 590.120 639,159 55,000 42,786 97,786 6.5 5.7 1980.81 1,182,105 607,205 575,000 674,461 60,000 60,000 40,771 100,771 38,664 98,664 6.8 1981-82 -1981.83 1,457,774 783,313 1,624,226 ` '751,993 872,233 65,000 65,000 36,637 101,637' 35,340 100,340 8.6 8.3 1983.04 1984.85 1,658,726 - 811,689 837,037 1,878,986 858,948 11020,038 70,000 33,070 103,700 9.9 COMPLIANCE WITH BOND RESOLUTION COVENANTS - Table 4. below. shows projectedrevenues and expenses of the sewer system for the,next four fiscal years and the City's compliance with the: requirementsof: the Resolution. - 9 /30& fl I i i TABLE 4 P[o acted Oebt Service Covera e Fiscal Years Ending ,lune 30 1987 1988 1989 1990 (1) Operating Costs (A) $ 984,000 $1,043,040 $1,555,062 $1,648,366 _ (2) Debt Service 761,337 3,045,350 3,695,350 3,632,650 (3) 1+2 Total Costs 1,745,337 4,088,390 5,250,412 5,281,016 I - (4) Required Revenues .l 1+(1.1)(2) 1,821,471 4,392,925 5,619,947 5,644,281 I - (5) System Revenues 2,723,559 4,345,194 5,293,135 5,293,135 i (6) Debt Service Reserve Investment Income (B) (C) (C) 286 ,'232 286,232 - - - (7) Investment Income -Surplus Account and Improvement Fund (D) - (E) 58,693 77,623 102,018 (8) 5+6+7 Total Revenues 2,723,559 40403,887 5,656,990 5,681,385 (9) Transfer to Improvement Food 978,222 240,000 240,000 240,000 (10) 8-3-9 Transfer to Surplus Account 75,497 166,578 160,369 (11) Cumulative Improvement - - Fund 978,222 1,218,222 1,458,222 1,698,222 (12) Cumulative Surplus Account 75,497 242,075 402,445 t Base Rate (F) 3.00 4.75 5:75 3.75 Ilse Rate (F) .0066 .0104 .0126 .0126 I (A) Operating costs are projected to be $ 984,000 in 1987 and to increase at a rate of 6% annually. Operating coats were adjusted in 1989 to reflect operation of additional facilities. (B) Assumed interest rate of 7.75. (C) Interest earnings on the Debt Service Reserve Fund in fiscal years 1987 and 1988 will be used for project costa. (D) Assumed interest rate of 6,0%. (E) It is assumed that interest earnings on the Improvement Fund and the Surplus Account will begin in fiscal year 1988. (F) New rates established by City ordinance to become effective without further City Council action in fiscal years 1987, 1988, and 1989. See Appendix C hereto for a copy of the ordinance establishing these rates. Arate. study performed by Metcalf and Eddy, Inc. concludes that these rates will enable the City to fulfill all the covenants of the Resolution and to fund all the funds and accounts required by the Resolution. 10 1306 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 affect on the marketability of the bonds. The City's outstanding sewer revenue bonds are rated "A" ,by Moody's Investors Service, Inc. The City last issued sewer revenue bonds in 1966. For an explanation of the significance of the rating, an investor should communicate with the rating agency. 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, which has an effective date of December 31, 1985, and affects tax exempt bonds issued after that date subject: to certain transitional provisions. A House resolution instructed the Chairman and ranking minority members of the House Ways and Means Committee and the Senate Finance Committee, together with the Secretary of the Treasury, to issue a 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 (the "Joint Statement"), providing for a delayed effective date of September 1, 1986, or date of enactment, whichever is earlier, with respect to certain provisions as noted below. H.R. 3838, as passed by the House but with the effective date stated for provisions listed in the Joint Statement, is referred to as the "Bill." Various restrictions are contained in H.R. 3838 which are to have an effective date of September 1, 1986 under the Joint Statement, which, if applied to the current issue, would deny tax exemption. The House Bill places certain restrictions on state and local government obliga- tions which do not exist under present federal tax law. M�Mt i 11 wut 0 The House 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 House 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 one 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. Under the House Bill, property and casualty insurers 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. on June 24, 1986, the Senate passed H.R. 3838 in amended form (the "Senate Bill"). Provisions in the Senate Bill pertaining to tax- exempt obligations such as the Bonds would be effective for obliga- tions issued after the date of enactment and therefore would not be applicable to the Bonds, except that a provision, applicable to corporations (as defined for federal income tax purposes), that would increase the alternative minimum taxable income of a corporation for any taxable year by 50% of the amount by which "adjusted net book income" exceeds "pre -book alternative taxable income." This provision of the Senate Bill could subject part of the interest on the Bonds received by corporations to such tax. Except for this preference item, interest on tax-exempt obligations would not be taken into account as a preference item subject to the alternative minimum tax generally applicable to individuals and corporations under the Senate Bill. Unlike the House Bill, the Senate Bill would not subject interest on the Bonds to a special minimum tax applicable to property and casualty insurance companies in taxable years beginning after 1987 and would not adversely affect certain federal income tax deductions of certain financial institutions and of property and casualty insurance companies that acquire the Bonds. The House Bill and the Senate Bill are both subject to amendment in the conference Committee. Therefore, no assurances can be given that the Issuer will be able to comply with all provisions of the legisla- tion as finally amended and passed. It cannot be known whether or in wht form the beep pending in co ngresis lortwhich nmay beate introduced l or other in pC Congress whichosals mathe y enacted, to what extent they may affect any of the foregoing, or adversely affect the tax exemption of interest on the Bonds. The Bonds do not provide for any increase in interest or mandatory redemp- tion in the event interest on the Bonds becomes directly subject to federal income taxation. 12 -I The Issuer will covenant to comply with the House Bill and the Senate Bill 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: Section _ 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 in the respective forms in which it was adopted by the U.S. House of Representatives on December 17, 1985, (the "House Bill") and by the United States Senate on June 24, 1986, (the "Senate Bill"). For this purpose, the Issuer reserves the right to accept the extended effec- tive dates of certain provisions of the House Bill 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. 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 main- tain 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; other person other than the 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 its power to assure the continued tax exemption on the bonds. fi 3. In the event the federal law applicable to the Bonds after p, the consideration of the House Bill and the Senate Bill 9 imposes requirements different from the provisions of either (j of the respective forms adopted by the House and the Senate, g retroactively effective to the time the Bonds are issued, the Issuer will take whatever action is necessary within its {power to comply with the applicable law and regulations in 1 order to maintain tax exemption with respect to the Bonds. Section Amendment of Resolution to Maintain Tax Exemption. e This resolution may be amended w thout the consent of any owner of the Bonds for the sole purpose of taking action necessary to maintain tax y exemption with respect to the Bonds under applicable federal law or regulations. 1 13 I LITIGATE There is no litigation now pending or, to the knowledge of City officials, threatened which questions the validity of the Bonds or of thereof, any proceedings of the City taken with respect to the issuance or sale It is the opinion of the City Attorney, Of the Y, based upon the sentl payment of claims and judgment amounts, that there are experience contin no outstanding claims, litigation, impending Pre - this gent liabilities which would exceed the funds gaccumulated for these urpose and funds currently appropriated by the City .Council for materiPurposesI and that outstanding claims .and suits would not this poly affect the financial position of the City as of .the date of ficial statement. CLOSING DOCUMENTS Simultaneously with the delivery of and original purchasers thereof, the Cit payment for the Bonds by the purchasers the customs y Will furnish to the .original Bond the x'Y closing documents in form satisfactory to CERTIFICATE The City will furnish a statement to the effect that this Official 'Ilea nd ,to the of best of its knowledge and belief as of the date of p nd does enot o t in an i untrue and correct in all material res acts or omit to state a material fact necessary mint order of a mtoemake fact statements made herein, in light of the circumstanc were made, not misleading. es under which they LEGAL Legal matters incident to the authorization and issuance of the Bonds are subject to the opinion of Ahlers, Coons Y, Allbee, of Des Moines, Iowa, Bond Counsel, Dae to validiHaynie, y andmtax exemption. The opinion, which will be eubstantinto al the fond set forth in Appendix E attached hereto, will be printed on the back of Bonds onds, Bond Counsel has not participated in the preparation of this official statement. 14 /,4di I 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 Act ng Assistant City Manager 15 136L I (This pap has been left blank intentionally.) mi Pfi ......... . (This pap has been left blank intentionally.) mi ......... . APPENDIX A General Information Concerning. the City of Iowa City /3oL I Ee If i +r �3 i gF I /3oL I 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 i 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 isgoverned 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 treat- ment system (with secondary treatment provided). Virtually the entire City has separate storm and sanitary sewers. A municipal off-street I 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 down- town 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 insti- tution 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 17,000 residents of the City. /304 i z EMPLOYEE RELATIONS AND PENSION PLANS � I, A number of the City's employees are represented by collective bar— gaining 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. Fixe fighters represented by the Iowa City Association of Professional Fire Fighters, a unit of • the International Association of Fire Fighters. Theircontract expires June 30, 1986. Most other full-time city employees are - members of AFSCME whose contract extends through the 1987 fiscal year. , i.' The City contributes to two local pension and retirement systems and { r to the Iowa Public Employee Retirement System (IPERS) which is administered by the State of Iowa. All of the systems are contribu- tory 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 i systems. Following is a table indicating the systema, the employees covered, and the allocation of the City's covered payroll $9,045,603, for the year ended June 30, 1985: p$$ System Number of 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 54 ! State, IPERS All Other Permanent Employees 6,455,148 374 �.. $9,045,603 478 I' c, The total unfunded actuarial present value of credited projected $1,460,708. bensfits for the two local systems as of June 30, 1985 was ri i N tt T (This summary is subject in all respectto more complete information contained in this Official Ss tatement). ... ACTUAL VALUE,.1985 ... - .. - $1,246,662,946, TAXABLE: VALUE 1985 - - $1,061,944,076 DIRECT DEBT .. G. O., LONG-TERM. DEBT $ 19,975,000 SPECIAL. ASSESSMENT DEBT - $ 1951000 REVENUE: DEBT OVERLAPPING GENERAL OBLIGATION DEBT POPULATION (Current Estimate) $ 1,724,859 .. . R AREA - 52,400 . DEBT RATIOS 21 square miles Amount Per Capita Taxable Actual _ (52,400) Value Value Direct G.O.Long Term Debt $19,975,000 Overlapping Debt 1.724,859 $381 1.888 1.60$ 33 0.16% 0.14% $21,699,859 $414 2.04% 1.74% 13aL i a l INDEBTEDNESS GENERAL I OBLIGATION LONG-TERM DEBT - Tattles .1 'and 2 summarize the Cit le ' as Of June 30, 1986.' The City's outstanding y general obligation long-term debt are rated•"Aaa° by Moody's Investors Service, Inc. general bonds general obligation bonds on July 1, 1986. These bonds will last tol August 1,.•1986 and are, Included in Tables Al and A2. issuedbe Genera�ationADebt by Issue Issue Final "Date Principal Maturity Outstanding -''X1977''. ... ...1978' 689_ ..,•i.! $ 975, 000 ".' 1979 900,000(1) 6 1980 /92 3,000,000(2) 1982 6/94 1,800,000(3) 3.98596 2,250,000(4) 5 1986 5/96 4,7001000(5) 6,350,000(6) _. Total - _ 19 975 000 (1) 45.18 abated by newer revenue. (2) 18.28'abated "by'sewer revenue. (3) 60.08 abated by water revenue. (4) 3.08 abated by airport revenue. (5) 12.88 abated by special assessment revenue, 4.3; by water revenue ;`and 3.58 by airport revenue. (6) It is anticipated that this issue will be abated 17.31 by water revenue. �3aG i, .l INDEBTEDNESS GENERAL I OBLIGATION LONG-TERM DEBT - Tattles .1 'and 2 summarize the Cit le ' as Of June 30, 1986.' The City's outstanding y general obligation long-term debt are rated•"Aaa° by Moody's Investors Service, Inc. general bonds general obligation bonds on July 1, 1986. These bonds will last tol August 1,.•1986 and are, Included in Tables Al and A2. issuedbe Genera�ationADebt by Issue Issue Final "Date Principal Maturity Outstanding -''X1977''. ... ...1978' 689_ ..,•i.! $ 975, 000 ".' 1979 900,000(1) 6 1980 /92 3,000,000(2) 1982 6/94 1,800,000(3) 3.98596 2,250,000(4) 5 1986 5/96 4,7001000(5) 6,350,000(6) _. Total - _ 19 975 000 (1) 45.18 abated by newer revenue. (2) 18.28'abated "by'sewer revenue. (3) 60.08 abated by water revenue. (4) 3.08 abated by airport revenue. (5) 12.88 abated by special assessment revenue, 4.3; by water revenue ;`and 3.58 by airport revenue. (6) It is anticipated that this issue will be abated 17.31 by water revenue. �3aG TABLE A2 General -2!1�ation Debt Annual Maturity—Schedule Fiscal Year 33 Endinq 6/30 Principal Interest Total 1987 $ 2,025,000 $1,204,721 $ 3,229,721 1988 2,375,000 1,160,400 3,535,400 1989 2,425,000 1,030,900 3,455,900 1990 2,050,000 894,725 2,944,725 1991 2,075,000 765,750 2,840,750 1992 2,075,000 632,425 2,707,425 1993 495,850 1,695,850 1994 1,225,000 .408,925 1,633,925 1995 925,000 318,050 1,243,050 1996 950,000 251,725 1,201,725 1997 500,000 182,850 682,850 1998 375,000 149,350 524,350 1999 400,000 123,850 523,850 2000 425,000 96,250 521,250 2001 450,000 66,500 1 c516,500 2002. 500,000 35,000 535,000 TOTAL $19,975,000 JULZ9�2271 REVENUE AND SPECIAL ASSESSMENT DEBT The revenue bond and special assessment bond issues listed below in Table A3 are payable from certain revenues of the City and are not general obligations of the City. TABLE A3 Revenue and Special Assessment Debt by Issue Principal Outstanding Revenue Bonds As of 6/30/86 Pollution Control Revenue $ 800,000 Water Revenue 706,000 Parking Revenue 5,370,000 Total 56,876,000 Special Assessment Bonds L-195,000 /30L T OTHER COMMENTS 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 17.648, with the final installment due in December, 1988. FUTURE=ING The City does not anticipate that it will incur additional indebtedness within the next 90 days. DEBT LIMITATION The Constitution of the State of Iowa, Article XI, Section 3, provides as. follows: "Indebtedness of political or municipal corporations. No county, or other political or municipal corporation shall be allowed to become indebted in any manner, or for any purpose, to an amount, in the ,aggregate, exceeding five percentum on the value of taxable property within such county or corporation -to be ascer- tained by the last State and County tax lists, previous .to the incurring of such indebtedness." TABLE A4 Debt Limit Computation ,Legal.Debt Limit of 58 of Actual Value as of July 1, 1985 $62,333,147 100.08 ... Debt Chargeable Against Limit 19,975,000 32.08 Legal Debt Limit Available $42,358,147 68.08 In addition to the legal requirement described in Table 4, it is the stated policy of the City that general obligation bonds be issued only UP to 0 limitation. the actual Another Cityvalue of property rather than the 58 legal the general tax levy policy limits the debt service levy to 258 of Retirement Fund), y (General Fund, Debt Service Fund, and Pension and /3a6 I r T OVERLAPPING DEBT There are two taxing jurisdictions which overlap the City and which had general obligation debt outstanding as of April 1, 1986. Table A5 sets forth the general obligation debt for those jurisdictions and the amount of their debt allocable to the City. TABLE A5 Overlapping Debt to the City of Iowa City(1) General 8 of Debt Portion Obligation Allocable Allocable Jurisdiction Debt to the City to the City Johnson County $ 600,000 53.18 $ 318,600 Kirkwood Community - 'College(2) 11,433,000 12.38 1 406 259 1.72 859 (1) Excludes $6,090,000 in one-year Anticipatory Warrants of-the�Iowa City Community School District. (2) Excludes $12,310,000 in one-year Anticipatory Warrants. PROPERTY VALUATIONS AND TAXES PROPERTY VALUATIONS AND TAX COLLECTION PROCEDURES All property subject to taxation is valued every year and is subject to an equalization action of the State Department of Revenue every other year. All property except utility property is assessed at the local level: The State Department of Revenueassesses utility property. The Assessor establishes actual valuation (1008) as of January 1 in a calendar year for taxes payable in the succeeding fiscal year, i.e. valuations made in 1985 are for taxes payable in the fiscal year 1986/87: The actual 'value of parcels is provided by the assessor to the County Auditor who then determines the taxable value. The taxable value is computed by adjusting the actual value of various classes of real property by percentages (roll back rates) determined by the State Department of Revenue. The roll back rates are applied to classes of property on a state-wide basis so that the increase in actual valuation of property in the State will not exceed 48 annually., Table A6 outlines the Actual Value (1008) and Taxable Value of all property in Iowa City as assessed in the years 1981 through 1985. Table A7 lists the classes of property which comprise the City's 1985 actual value of property. 1361 a TABLE A6 Taxable and Actual Property Valuations in Iowa City Assessment Fiscal Actual Value Year Year (1008) Taxable Value 1985 1986/87 $1,246,662,946(1) $1,061,944,076(1) 1984 1985/86 1,169,837,101 958,607,758 1983 1984/85 1,125,755,850 891,939,971 1982 1983/84 960,851,675 745,084,543 1981 1982/83 924,467,545 688,906,695 (1) Net of tax increment value of $11649,449. 1361 a L I TABLE A7 1984 Actual Value by Class PropertyCom_ Residential Agricultural Commercial Industrial' Personal.. Utilities Less Increment Value PROPERTY TAX LEVIES AND COLLECTIONS Actual l=1 T8 of- otal $ 725,668,350 58.-18"�" . 3,450,958 0.38 368,985,813 29.68 29,145,510 2,39 60,364,822 4.88 60--x,942 4.98 $1,248,312,395' 99.18 1,649,449 " $1,246,662,946 .._.... After the assessment of property in a calendar year, taxes are levied for collection in 'thefollowing fiscal year. Taxes' -are certified to the County Auditor in March. The County Treasurer collects taxes all taxing entities; in the County. Statutory dates for for payment without penalty are September 30th for the first installment and March 31st for the second installment. Penalty Rates are established by State law'et 18 per month. Table A8'outlinea the County's collections of taxes in the fiscal year following their levy for Iowa City. TABLE A8 Tax Collections in City of Iowa Cit Collection Total Current Tax Percent of Levy Total Tax Total as a Year Tax Levy Collections Collected Collections Percent of Current -Lm 1980-81 1981-82 $7,463,393 7,802,216 $7,393,546 99.18 $7,442,202 99.78 1982-83 8,727,383 7,782,739 8,654,313 99.88 99.28 7,867,686 8,768,759 100.88 1983-84 1984-85 8,877,580 9,505,174 8,773,320 98.88 8,871,447 100.58 99,98 9,342,941 98.38 91444,822 99.48 /366 I TAXES PER $1,000 OF TAXABLE VALUE Table AS shows the tax rates for Iowa City for the past five collection I n i years. - TABLE A9 . Tax Rates ($/$1,000 of Taxable Value) 1985/86 1984/85 1983/84 1982/83 1981/82 city of Iowa City 10.88(1) 10.65 11.91 12.24 12.64 Iowa City .Community School District 11.25 11.37 13.37 13.66 13.66 Johnson County 4.65 .4 81 5.31 6.19 5.17 Other _70 _81 _991 _41 _82 Total 27.48 27.64 31.50 32.50 32.29 (1) The City's 10.88 tax rate consists of 7.51 for the General Fund, 0.69 for Trust & Agency Funds, 0.37 for the Tort Liability Fund, ., 1.95 .for Debt Service . Funds, and 0.36 for the Transit .Fund. .The 7.51 General Fund Levy is below the statutory maximum of .8.10. PRINCIPAL TAXPAYERS - - ( A list of the ten taxpayers in the City with the highest taxable valuations for the 1986/87 collection year is presented in Table A10. TABLE A10 Principal Taxpayers % of Taxable Name Taxable Valuation Value Iowa/Illinois Gas & Electric $53,172,682 5.0% Procter & Gamble 14,355,764 1.4E James and Loretta Clark 13,987,179 1.3% old Capitol Center Partners 11,650,130 1.1% Owens Brush 10,643,019 1.0% American College Testing 9,648,553 0.9% Holiday Inn 7,989,784 0.8% Seville Corporation 6,974,060 0.7% H. J. Heinz 6,678,053 0.6% Sheller -Globe 6,523,035 0.6% I n i `r I I` I; FINANCIAL INFORMATION FINANCIAL REPORTS t The City's financial reports are audited by an independent accountant. The City maintains its books using the cash basis of 'accounting: Its tl audited financial statements are issued in conformitywith generally accepted accounting principles. Copies of the City's audited financial I• ,. 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. RESULTS OF OPERATIONS - Statements ofrevenues and expendituresof the General Fund of the City �,..- have been compiled from the city's audited financial reports. They have been organized in such a manner as to facilitate year toyear comparisons. Table All sets forth statements of revenue and expendi- tures for the General Fund for fiscal years 1982 through 1985. Table Al2 'summarizes`the Cityls 1986 General Fund budget as adopted'by the City, ,Council. i i j i . I I` I; FINANCIAL INFORMATION FINANCIAL REPORTS t The City's financial reports are audited by an independent accountant. The City maintains its books using the cash basis of 'accounting: Its tl audited financial statements are issued in conformitywith generally accepted accounting principles. Copies of the City's audited financial I• ,. 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. RESULTS OF OPERATIONS - Statements ofrevenues and expendituresof the General Fund of the City �,..- have been compiled from the city's audited financial reports. They have been organized in such a manner as to facilitate year toyear comparisons. Table All sets forth statements of revenue and expendi- tures for the General Fund for fiscal years 1982 through 1985. Table Al2 'summarizes`the Cityls 1986 General Fund budget as adopted'by the City, ,Council. i i j I a TABLE All IP Statements of Revenues and Exoendlturas for the General Fund �—('leers Ended June 30) 1985 1984 1983 1982 REVENUE Property Taxes $ 7,230,821 S 6,911,422 $ 6,449,388 $5,904,098 Licenses and Permits 243,680 343,605 314,665 223,143 • - Intergovernmental 841,189 655,966 707,377 916,876 Charges for Services 1,319,230 1,296,174 1,067,968 978,713 Fines and Forfeitures 328,934 311,117 285,157 272,462 Use of Money and Property 130,756 91,19992,675 196,062 !I Miscellaneous 379.098 410.736 650.554 288.226 $10,473,708 $10,020,219 $ 9,567,784 $8,781,580 i EXPENDITURES .. '�:. .. Current Operating: Community Protection $ 3,791,213 3 3,700,070 $ 3,302,480 - $3,645,469 - Human Development 2,524,013 2,329,305 2,200,152 1,928,388 Hone and Community Development 2,381,500 2,329,256 2,222,301 2,268,307 - Policy and Administration 2,450,267 2,549,046 1,980,321 1,358,209 - Capital Outlay 593,781 553,341 542,939 504,273 '- Debt Service 14.935 •0. -0- ,. $11,755,709 $11,462,698 $10,298,193 $9,704,726 Revenue Over (Under) Expenditures S(12282,D01) $(1,442,479) $ (680,409) $ (923,146) OTHER FINANCING SOURCES (USES) Operating Transfers: From Other Funds(1) i (To) Other Funds $ 2 423,657 1830,273) $ 1 749,152 1661:719) $ 1 581,429 1792,175) $1 515,159 1556,771). I. Proceeds from Long Term Debt 50.071 - i - $ 1,593,394 $ 1,137,504 -3 789,254 S 958,388 and Other Financing Sources ,Revenue Over (Under) Expenditures and - Other Financing Uses $ 311,383 $ (304,975) $ 108,845 S 35,242 FUND BALANCES, BEGINNING 1,939,551 2,244,526 2,135,681 2,629,302 'I . ADJUSTMENTS -- -- _• 341,210)`1''' FUND BALANCES, ENDING S 2,250,934 S 1,939,551 $ 2,244,526 $2,323,334 I Basis of Accountingr Modified Accrual Basis (1) The bulk of the intoeing transfers are from the special revenue funds, primarily the road use fund, to provide the source of funds for expenditures accounted for in the General Fund. - - •rA TABLE Al2 1985/86 Cash Basis General Fund Budget BEGINNING FUND BALANCE „$ 1,912,589 Receipts Property Taxes $ 7,956,137 489 Income other Than Property Taxes 2'667 State Shared Revenue 815 Transfers In 2479.621 .Total $13,655,862 Expenditures Personal Services $ 8,417,029 Commodities 585,874 Services and Charges 3,017,904 Capital Outlay 642,156 Transfers 960,979 . Total 13,623,942 ENDING FUND BALANCE $ 1,943,709 CASH AND INVESTMENTS Table A13 lists the cash and investments of the City by fund as of May 31, 1986. P cy F. TABLE A13 Cash and Investments General -Fund Debt Service Funds Pension Trust Funds other Funds Total $ 1,516,684 2,093,889 10,418,264 8,678,904 $22,707,741 j 30� i ECONOMIC AND DEMOGRAPHIC INFORMATION POPULATION Table A14 shows the population of the City as recorded in the past j three censuses. TABLE A14 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 approximately 17,000 employees including approximately 6,500 employees at the University Hospital. 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 Systeme (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 A15. TABLE A15 Principal Employers Employer Business/service Employees University of Iowa Educational Services 17,000 Sheller Globe Corporation Automotive Products 1,080 VA Hospital Health Services 950 Iowa City Community School District Educational Services 950 Mercy Hospital Health Services 800 American College Testing Educational Programs and services 528 Owens Brush Tooth and Hair Brushes 525 Procter & Gamble Toiletries 450 City of Iowa City Government 450 National Computer Systems Test Scoring and Computer Services 370 13,04 I r% j The school district employs 950 people, of whom 550 are teachers and 33 are administrators.- TABLE A18 .Enrollment Statistics - 1985/86 8,481 1984/85 8,233 1983/84 - 8,172 1982/83 8,194 1981/82 8,201- 1980/81 8,332 Also located. in 'Iowa City are a catholic elementary and high school With a total of 500 students. BUILDING PERMITS AND BANK DEPOSITS _ Construction activity in the City as ahown by its building permit records and total bank deposits in City banks are summarized in Table A19. TABLE A19 Building Permits and Bank Denosits i Remodeling(1) i i The school district employs 950 people, of whom 550 are teachers and 33 are administrators.- TABLE A18 .Enrollment Statistics - 1985/86 8,481 1984/85 8,233 1983/84 - 8,172 1982/83 8,194 1981/82 8,201- 1980/81 8,332 Also located. in 'Iowa City are a catholic elementary and high school With a total of 500 students. BUILDING PERMITS AND BANK DEPOSITS _ Construction activity in the City as ahown by its building permit records and total bank deposits in City banks are summarized in Table A19. TABLE A19 Building Permits and Bank Denosits New construction (1) Remodeling(1) Bank Year Perm is Value* perm is Value* DeDosits(2), 1980-81 195 $16,795,575 294 $6,385j303 $423,724,320 1981-82 186 19,673,484 233 3,222,768 474,105,060 1982-83 305 31,198,875 227 8,091,460 554,556,185 1983-84 322 39,031,017 230 4,533,696 678,458,975 1984-85 152 15,007,197 302 5,879,171 618,214,939 * Permit values are based on estimated construction costs. Source: ,(1). City Of Iowa City Building Inspection Department (2) Local Bank Offices j: 1' i j j;. I APPENDIX B Bond Resolution I Member introduced the following Resolution entitled "A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SECURING THE PAYMENT OF $38,950,000 SEWER REVENUE BONDS ! OF THE CITY OF IOWA CITY, IOWA, UNDER THE [ PROVISIONS OF THE CITY CODE I.. �.. OF IOWA, AND PROVIDING FOR A METHOD OF PAYMENT OF SAID BONDS", and moved its adoption. seconded the motiontotadopt.ReTherroll was called and the vote ' was: .. AYES: v} 1 I. -. i i i NAYS: Whereupon the Mayor declared the following Resolution duly adopted: A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SECURING THE PAYMENT OF $38,950,000 SEWER REVENUE BONDS OF THE CITY OF IOWA CITY, IOWA, UNDER THE PROVISIONS OF:THE CITY CODE OF IOWA, AND PROVIDING FOR A.METHOD OF PAYMENT OF SAID BONDS I WHEREAS, the City Council of the City of Iowa City, Iowa, sometimes hereinafterreferred "Issuer", to as the has heretofore established charges, rates and rentals which are and will continue to be C011OCtedassystem revenues Of the Municipal Sanitary Sewer Utility, sometimes hereinafter referred to "System", as the and said revenues have not been pledged and are available for the payment of Revenue Bonds, I subject to the following premises; and iWHEREAS, Issuer proposes to issue its Revenue Bonds to the extent of $38,950,000 for the purpose of defraying the costs of the project as set forth in Section 3 of this Resolution; and WHEREAS the notice of intention of Issuer to take action for the issuance of not to exceed $41,450,000 Sewer Revenue Bonds has heretofore been i duly published and no objections to such proposed action have been filed; NOW,THEREFORE, IT CITYOFIOWACITY, INETHE OF THE D BY THE CITY NOFLIOWA.- EOF COUNTY JOHNSON, STATE ` -2- i .u+.. C' m..," wrw. �"n"nci,.M. ow A. �e.. p'h P c w c, i i b E f f ( section 1. Definitions. The following terms shall have - the following meanings in this Resolution unless the text j _ expressly or by necessary implication requires otherwise: I. (a) "Issuer" and "City" shall mean the City of Iowa 'I City, Iowa; ' (b) "Governing Body" shall mean the City Council of the City, or its successor in function with respect to the operation and control of the System; { (c) "Clerk" shall mean the City Clerk or such other 7 I. officer of the successor governing body as shall be charged with substantially the same duties and responsibilities; ) - -'- - (d) "Treasurer" shall mean the City Treasurer or such other officer as shall succeed to the same duties and responsibilities with respect to the recording and payment I i" of the Bonds issued hereunder; i (e) "System" shall mean the municipal sanitary sewer utility of the Issuer and all properties of every nature hereinafter owned by the Issuer comprising part of or used as a part of the System, including all improvementsand extensions made by Issuer while any of the Bonds or Parity . Bonds remain outstanding; all real and personal property; and all appurtenances, contracts, leases, franchises and j other intangibles; i •i' (f)- "Net Revenues" shall mean gross earnings of the System after deduction of current expenses; "Current j Expenses" shall mean and include the reasonable and necessary cost of operating, maintaining, repairing and insuring the System, including purchases at wholesale, if any, salaries, wages, and costs of materials and supplies, but excluding depreciation and principal of and interest on the Bonds and any parity bonds or payments to the various I funds established herein. Capital costs, depreciation and j .. interest or principal payments are not system expenses; f i (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 consecutive twelve month period adopted by the governing i body or by law as the official accounting period of the p i system; i pppe p —3— q �j I (h) "Registrar" shall be the City Controller of the City 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 $38,950,000 Sewer Revenue Bonds, authorized to be issued by this Resolution; .(1) "Parity Bonds" shall mean Sewer Revenue Bonds payable solely from the net revenues of the System on an equal ,basis with the Bonds herein authorized,to be issued; (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 Stater 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. Authorit The Bonds authorized by, this, Resolution shall be sated 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. Section 3. Authorization and Purpose. There are hereby authorized to be - s -sued, negot able,ser al, fully registered Revenue Bonds of Iowa City, in q the County of Johnson, State of Iowa, Series 1986, each to be designated as Sewer Revenue Bond", in the aggregate amount of $38,950,000 for the purpose of paying costs of the acquisition, construction, extending, improving and equipping of wastewater conveyance and treatment facilities of the municipal sanitary sewer utility. -4- . I -f Section 4. Source of Payment. The Bonds herein authorized and Parity Bonds and theinterest 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 shaIssuer shall ll they be payable in any manner by taxation and the Pe in no manner liable by reason of the failure of the said net su revenues to be sufficient for the payment of the Bonds. Section 5. Bond Details. Sewer Revenue Bonds in the amount of 538 —0 shall. be issued of the City provisions of Section 384.83 of the City Code pofslowa forto theaforesaid purpose. The bonds shall be designated SEWER REVENUE BOND", be dated August 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, semiannually thereafter on the 1st day of July 1987 and January in and each year until maturity at the rates hereinafter provided. the Mayor The bonds shall be executed by the facsimile signature of and Clerk, and printed sordImpressedawithithe gsealtofignaurethof the e Cityandshall be fully registered as to both principal and interest as provided in this resolutions 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 55,000 or multiples thereof. Said bonds shall mature and bear interest as follows: Interest Principal Maturity Rate Amount July 1s r $ 650,000 .1989 S 625,000 1990 S 725,000 1991 S 775,000 1992 S 825,000 1993 S 900,000 1994 S 950,000 1995 $1,000,000 1996 $1,100,000 1997 $1,175,000 1998 $1,250,000 1999 $1,350,000 2000 $1,450,000 2001 $1,575,000 2002 $1,700,000 2003 $1,825,000 2004 $1,975,000 2005 $2,125,000 2006 -5- *4 a ca..,, u..ww "m,a wn •,uq.., w,.", u..wa w �3oL I $2,300,000 2007 $2,500,000 2008 $2,700,000 2009 $2,925,000 2010 $3,150,000 2011 $3,400,000 201? Section 6. -Redemption.. Bonds maturing after July 1, 1995, may be called for redemption by the Issuer at its sole option and paid before maturity -on said date or any interest payment date thereafter,-fromany 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 accrued interest to date of call, and a price expressed as a percentage of par, as follows: - - Redemption Date Price j "July 1, 1995 and January 1, 1996 101.5% ! July 1, 1996 and January 1, 1997 101.0% July 1, 1997 and January 1, 1998 100.5% July 10 1998 and thereafter- 100.0% jIf 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. Registration of Bonds; Appointment of Registrars Transferi ownership; Deliveryi and Cancellation. (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 registrar of the bonds 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. -6- uw.Cm a,..,...,xm.. (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 at the principal office of the Registrar together with an assignment duly executed by the holder or his duly authorized 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 numberOfsuch 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) Recistration of Transferred Bonds, of the transfer of the Bonds In all cases at the earliest practicable tithe on9therRe shall register, Books, the Bonds, in accordance with the gistration Resolution. Provisions of this (d) Ownershi . As to any Bond, the person in whose name the ownersh p 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. (a) Cancellation. All Bondi which have been redeemed shall not be re asuetl but shall be cancelled by the shalltberd eIsAll troyednds andwch aicertificate areeofetheydethe Reis structionrar thereof shal be furnished promptly to the that if the Issuer shall so direct, Issuer) provided the Registrar shall forward the cancelled Bonds to the Issuer. /3aG I (f) Non -Presentment of Bonds. In the event any payment check representing payment of interest on the Bonds i 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 aperiod equal to two years and six months following the date on which such, interest or principal became due, i whether at maturity, or at the date fixed for redemption I thereof, or otherwise, at which time the Paying Agent, shall surrender e Issur, whereupon any sclaim under nthisfResolution unds so lbytthe hOwnerseof such interest or Bonds of whatever nature shall be made upon the Issuer. Section 8. Reissuance of Mutilated, Destro ed, Stolen or Lost Bonds. In case any outstand ng Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at Mthe request of Registrar authenticate and deliver a new Bond of e tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated 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 i 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, otherw aeon upon full 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 payments so nmsurrenderaof.theabondttofprncipal shall thelPaying Agent. I i f p 7 ' I i a t Section 1t Execution, Authentication and Deliver Bonds. Upon the adoption of this resolution the Ma of the t �, City Clerk shall cause the Bonds to be executed and delivand ered to the Registrar, who shall authenticate the Bonds and deliver the same to or upon order of the Purchaser. No bond shall be 1 valid or. obligatory for an ri ht or Y purpose or shall be entitled to any g benefit hereunder unless the registrar shall' duly endorse and execute on such Bond a certificate of q authentication substantially in the form of the Certificate t herein set forth. Such Certificate u behalf of the Issuer shall be conclusive evidence that Bond the on so authenticated has been duly t the Bo I that the Y issued under this resolution and resolutionolder thereof is entitled to the benefits of this I I. I i I� i { I -t Section 11. Form of Bond. Bonds shall be printed in substantial compl anccee —with standards proposed by the American Standards Institute substantially in the form as follows. (6) (6) ..(7) (8)... (1) (2) (3) (9) (5) (9) (9A) (continued on the(back of t=Bond) (11)(12)(13 14 15) FIGURE 1 (Front) -10- .uw�. X306 Section 11. Form of Bond. Bonds shall be printed in substantial compl anccee —with standards proposed by the American Standards Institute substantially in the form as follows. (6) (6) ..(7) (8)... (1) (2) (3) (9) (5) (9) (9A) (continued on the(back of t=Bond) (11)(12)(13 14 15) FIGURE 1 (Front) -10- .uw�. X306 .1 I i T FIGURE 2 (Back) -11- Mon (mw,.Om�wln IYnt Y,wh (M`y4IMw( On Muy� W / 3�G I I I; � i. L A� 1 FIGURE 2 (Back) -11- Mon (mw,.Om�wln IYnt Y,wh (M`y4IMw( On Muy� W / 3�G I I; � i. L i s i i t ) i i , , �I f t r b r� �C � , FIGURE 2 (Back) -11- Mon (mw,.Om�wln IYnt Y,wh (M`y4IMw( On Muy� W / 3�G I I; � i. L i s i i 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" "SEWER REVENUE BOND" "SERIES 1986" Item 2, figure 1 = Rate:;, - Item 3, figure 1 = Maturity: l Item 4, figure 1 = Bond Date: August 1, 1986 Item 5, figure 1 = Cusip 6 F Item 6, figure 1 = "Registered" Item 7, figure 1 = Certificate No. `:., Item 8, figure 1 = Principal Amount: $ + i Item 9, figure 1 = The City of Iowa City, Iowa, a municipal i corporation organized and existing under and by virtue of the Constitution and laws of 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). f �... Item 10, figure 1 = or registered assigns, the principal sum of (principal amount written cut) Thousand Dollars in lawful money of the United States of America, on the maturity i date shown above, only upon presentation and surrender hereof at the principal office of the City Controller of Iowa City, i -. Iowa, 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 1st 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 the acquisition, construction, extending, improving and equipping of wastewater conveyance and treatment facilities of the Municipal Sanitary Sewer Utility, in conformity to a Resolution of the City Council of said City duly passed and approved. i -12- AMM Ce m.dm 30 � Bonds maturing after July 1, 1995, may be called for redemption by the Issuer and paid before maturity on said date 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 shall be accrued interest to redemption date of call and a price, expressed as a percentage of par, as follows: Redemption Price July1, 1995 and Januar 1, 1996 and January 1: 1996 101.58 1997 100.0% July 1, 1997 and January 1, 1998 100.58 July 1, 1998 and thereafter 100.08 Ownership of this bond may be transferred only by transfer upon the books kept for such purpose by the City Controller of the Issuer, 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. IP Inssuer reserves the right to substitute the Registrar and registerednbondholderst but ,ofosuchrchgive e.60days' notice All bonds Lobe 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 net hereof, are payable from and secured by a pledge of the revenues of the Municipal Sanitary Sewer Utility (the as defined and provided in said Resolution. There has System"), 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 each year for the payment of the proper and reasonable expenses of operation and maintenance of said System and for the establishmetofa 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 n City be in any manner lo circumstances shall the net earnings to be iable by reason of the fallure of said euEfic lent for the payment hereof. -13- an�� j3oG I 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 the City of Iowa City, Iowa. Item 11, figure 1 Date of authentication: Item 12, figure 1 = This is one of the bonds described in the within mentioned resolution, as registered by the City Controller of the City of Iowa City, Iowa. By Registrar Item 13, figure 1 - Registrar and Transfer Agent: City Controller, Civic Center, Iowa City, Iowa Paying Agent: City Controller, Civic'Center, Item 14, figure 1 = (Seal) Iowa City, Iowa Item 15, figure 1(Signature Block) City of IowaCity, Iowa By: Mayor's facsimile signature Mayor Attest: Cit- 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. (facsimilesi nature) City Clerk -14- uwn [mow. a..Mn i�.n.. xx • Ne.., ,++�«. on.w. w ir $ /3404 I 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 Assignment sign(s) 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 bonds) 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 f ile with transfer agents or by a commercial bank or trust company. -ls- u C— Orwin wn.. f a Ncrr. I,.pe on.bn. o-. i1fir (Opinion of Bond Counsel] 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 execut ngth s Ass gnment s gn(s) 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 certificates) 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 Transferees) Social Security or Tax Identification Number of Transferee(s) Transferee is a(n): Individual* Corporation Partnership 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. -16- I ■ n The following abbreviations, when used in the inscription on the face of this bond, shall be 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 Paving 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 of Lien. The timely payment of principal of and interest on 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 nteres� t, aapitalyzed interest and capitalized reserve fund moneys, except as may be provided below, shall be credited to the Project Fund and expended therefrom for the costs and 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. Investment earnings on Project Fund shall remain in fund to be expended for its purpose. Any amount left over in the Project Fund shall be transferred to the Improvement Fund. Accrued interest, if any, and $ of capitalized interest shall be deposited in the Sink ng Fund, Proceeds in sufficient amount shall be paid into and become the required balance of the Reserve Fund. Section 15. User Rates. There has heretofore been established and published as required by law, just and -17- Cc.o,,, D. 4L ra, i T equitable rates or charges for the use of the service rendered by the System. Said rates or charges to be paid by the owner of each and every lot, parcel of real estate, or building that is connected with and uses the System, by or through any part of the System or that in any way uses or is served by the System. So long as the Bonds are outstanding and un the rates or charges to consumersp 'of services of the System shall be sufficient in each year to maintain net revenues not less than principal times the amount required for the payment of Bonds and Parand interest (except for capitalized interest) on the Bonds and Parity Bonds as the same fall due, and to provide for the creation of reserves as hereinafter provided. In the event the Issuer or any department, agency or .instrumentality thereof in any way uses or is served by the Isrates suer from itsCorporategFund, ordby such sdepartment, agencye 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. From and delivery of any Bonds, and as long as any of the Bondstor the Parity Bonds shall be outstanding and unpaid either as to principal or as to interest, or until all of the Bonds and Parity Bonds then outstanding shall have been discharged and satisfied in the manner provided in this Resolution, the entire income and revenues of the System shall be deposited as collected in a fund to be known as the Sewe "Revenue Fund"), and shall be disbursed or Revenue Fund (the nly as follows: (a) Operation and Maintenance Fund. Money in the Revenue Fund shall first be d sbursed to make deposits into a separate and special fund to pay current expenses. The fund shall be known as the Sewer Operation and Maintenance Fund (the "Operation and Maintenance Fund"). There shall be deposited in the Operation and Maintenance Fund each month an amount sufficient to meet the current expenses of the month plus an amount equal to 1/12th of expenses payable on an annual basis such as insurance. After the first day of the month, further deposits may be made to to this account from the Revenue Fund to the extent necessary ens a accred and aable to the thatafunds rare not ent availableuin the Surplus Fund. extent (b) Sinkinc Fund. Money in the Revenue Fund shall next be disbursed to make deposits into a separate and special fund to pay principal of and interest on the Bonds and Parity Bonds. The fund shall be known as the Sewer -18- u Coo-yy. Wn.Net ,lryiy N"" • A .. U "... , /30( 1 I -19- R , `�`'M`• 130 Revenue Bond and Interest Sinking Fund (the "Sinking Fund").e ing Fundin anymonthmshallum obetanoamountbe pequaldtonl/6ththe sofkthe installment of interest coming due the on next interest payment date on the then outstanding Bonds and Parity Bonds Plus 1/12th I 1 _. of the installment of principal coming due on such Bonds on the next succeeding principal llmet ispayment date e lSinking tFund of sshall uch nbeausednsolelynfornthe ' Money inuntil the purpose of paying principal of and interest on the Bonds and Parity Bonds ! as the same shall become due and payable. I (c) Reserve Fund. Money in the Revenue Fund shall next be disbursed to maintain debt service reserve in an ' amount equal to at least the lesser of 1) the maximum amount of principal and interest. coming due on the Bonds and Parity Bonds in any succeeding fiscal year; or 2) f if teen percent of the original principal amount of Bonds outstanding at any time. - } Suchs fund hall be known as the 'Sewer Revenue Debt Service Reserve Fund (the "Reserve Fund"). The Reserve Fund shall be fully funded in ! the required amount from proceeds of the Bonds. If it is necessary to replenish the Reserve Fund, in each month there shall be deposited in the Reserve Fund an amount equal to 258 of the }} amount required by this Resolution to be deposited in such month in the Sinking Fund; provided, however, that when the amount on deposit in }f the Reserve Fund shall be not less than the minimum required. above, further �I no deposits need be made into the Reserve Fund except to maintain said fund at such level. Money in the Reserve Fund shall be used solely for the purpose of paying Principal it maturity of or interest the j t on Bonds and Parity Bonds for the payment of which insufficient money shall be available in the Sinking Fund. Whenever it shall become necessary to so use money in the Reserve Fund, the Payments required above shall be continued or resumed until it shall have been restored to the required minimum amount. (d) Improvement Fund. Money in the Revenue Fund shall next be disbursed to maintain a fund to be known as the Sewer Improvement Fund (the "Improvement Fund"), to the extent of all remaining moneys in the Revenue Fund through June 30, 1987. Beginning July 1, 1987, the minimum amount to be deposited in the Improvement Fund each month shall be $20,0007 however, provided, that when the amount of said deposits in said fund shall equal or exceed $2,000,000, no further monthly deposits need be made into the Improvement Fund except to maintain asuch levelMoney in the Improvement Fund nototherwisespecially�limited by other Provisions of this resolution shall be used solely for the -19- R , `�`'M`• 130 r. Purpose of paying principal of or interest on the Bonds or Parity Bonds when there shall be insufficient money in the Sinking Fund and the Reserve Fund; and to the e required for the foregoinot ng, to pay the cost of extent xtent ordinary maintenance expenses replacements not includor repairs, renewals and ed in the annual budget of revenues and current expenses, payment of'rentals on any part of the of System payments due for any property purchased as a part System, and for capital improvements to the System. Whenever it shall become necessary to so use money in the Improvement Fund, the payments required continued or resumed until it above shall be shall have been restored to the required minimum amount. (e) Subordinate Obligations. Money in the Revenue Fund may next be used to (including reasonable' reservesrtherefor)fanydotherrest on obligations which by their terms shall be payable from the revenues of the System, but subordinate to the Bonds' and Parity Bonds, and which have been issued for the and of extensions and improvements to the System or to retire the Bonds or Parity Bonds in advance of maturity, or to pay for extraordinary repairs or replacements to the System. (f) 5urolus Revenue. All money thereafter remaining in the Revenue Fu— n` d yt the close of each month may be deposited in any of the funds created by this Resolution, may be used to pay for extraordinary repairs or replacements to the System, or may be used to pay or redeem the Bonds or Parity Bonds or any of them or for any lawful purpose. In addition, remaining moneys may be used for any lawful purpose, provided that at the time of transfer, all of the Funds created in this Section are fully funded. and excess balances therein and in the Surplus Account shall in total equal not less than $3,00 amount transferred. 0,000 after deduction of the Money in the Revenue Fund shall be allotted and paid into the various funds and accounts hereinbefore referred to in the order in which said funds are listed, on a cumulative basis on the 10th day of each month, or on the next succeeding business day when the 10th shall not be a business day; and if in any -20- .wn l:3aL 0 month the money in the Revenue Fund shall be insufficient to deposit or transfer the required amount in any of said funds or accounts, the deficiency shall be made up in the following month or months after payments into all funds and accounts enjoying a prior claim to the revenues shall have been met in full. Moneys on hand in the Project Fund and all of the funds provided by this Section except the Operation and Maintenance Fund may be invested only in direct obligations of the United States Government or deposited in lawful depositories so long as such deposits are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation and all such deposits exceeding the maximum amount insured from time to time by FDIC or FSLIC or its equivalent successor in any one depository shall be continuously secured by a valid pledge of direct obligations of the United States Government having an equivalent market value. All such interim investments shall mature before the date on which the moneys are required for the purposes for which said fund was created or otherwise as herein provided but in no event maturing in more than five years in the case of the Reserve Fund. The provisions of this Section shall not be construed to require the Issuer to maintain separate bank accounts for the funds created by this Section; except the Sinking Fund and the Reserve Fund shall be maintained in a separate account but may be invested in conjunction with other funds of the City but designated as a trust fund on the books and records of the City. All income derived from such investments shall be deposited in the Revenue Fund and shall be regarded as revenues of the System. Such investments shall at any time necessary be liquidated and the proceeds thereof applied to the purpose for which the respective fund was created. Section 17. Covenants Regarding the Operation of the System. The Issuer ereby covenants and agrees with each and every holder of the Bonds and Parity Bonds: (a) Maintenance and Efficiency. That the Issuer will maintain the System in good condition and operate it in an efficient manner and at reasonable cost. (b) Rates. That on or before the beginning of each 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 -21- .V Mn Cm Lb w4r .Nr... L 'M..I..MM1 O...bn.. b.. /30& -I 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 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 beused to repair or replace the part or parts of the System damaged or destroyed, or if not so used shall be placed in the SewerImprovement 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 120 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 254 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: (1) A statement of net revenues and current expenses; (ii) Analyses of each fund and account created hereunder, including deposits, withdrawals and beginning and ending balances; (iii) A balance sheet; _2P_ /304 I I (iv) 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 nature of the risks covered, the limits of liability, the name of the insurer, and the expiration date; (e) State Laws. That the Issuer will faithfully and punctually perform all duties with reference to the System II11 required by the Constitution and laws of the State of Iowa, including the making and collecting of reasonable and I sufficient rates for services rendered by the System as i. above provided, and will segregate the revenues of the System and apply said revenues to the funds. specified in this Resolution. (f) Property. That the Issuer will not sell, lease, mortgage or in any manner dispose of the System, or any i.,.. 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 I been provided for in the manner provided in this Resolution. Provided, however, this covenant shall not be PI 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 j therefor, and provided further. that the proceeds of the ' j disposition of such property shall be placed in a Revolving Fund to be used in preference to other sources for capital 4 improvements to the System as therein provided, except, that no such proceeds shall be used. to pay principal or i interest on the Bonds and Parity Bonds or payments into the Sinking or Reserve Funds. Any such payments made into the Improvement Fund shall bein addition to the regular j monthly payments and the Fund balance provided for in Section 16(d) of this Resolution. (g) Fidelity Bond. 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 Charges. 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. Such budget -23- .w.. r T 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. Section 18. Remedies of Bondholders. Except as herein expressly limited the holder or holders of the Bonds and P Bonds shall have and possess all the rights of action and arity 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. Section 19. Prior Lien and Pari 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 otherwise: the following conditions, but not U a the of he bods or Parity Bonds rwhich pshall ehave rmatured 9ornwhichay oftshallnmature ' 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 CPA, consulting engineer or financial consultant, not a regular employee of the Issuer, reciting the opinion based upon necessary investlgationa that the net -24- /3a6 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 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 chargesimposed at or prior to the time of the issuance of any such additional bonds been in effect during all of such preceding fiscal year. (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, principal andinterestfalling due on the first day of a fiscal year shall be deemed a requirement of the immediately preceding fiscalyear. (iv) at issuance of the additional bonds, proceeds thereof shall be applied to fully fund the Reserve Fund with respect to the funding requirement applicable to the additional bonds but only to the extent that such immediate funding is, in the opinion of Bond Counsel, permitted by law and consistent with the requirements for tax exemption under federal income tax laws and regulations in effect on the date of issuance. Section 20. Disposition of Bond Prr oceeds, Abitrage Not Permitted. The Issuer reasonably expects and covenants that no use will 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 isnot expected -25- ua..,uo.n. T 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 covenantsthatit 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. "Restricted yield investments" are funds or investments which the Issuer covenants not to invest at a yield materially higher than .the ,yield on the bonds as defined in the regulations issued under authority of Section 103(c) of the Internal Revenue Code of the United States. If any investments are held with respect to the bonds and parity bonds, the Issuer shall treat the same for the purpose of restricted yield as held in proportion to the original principal amounts of each issue. 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 lo3(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 auch 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 _26_ AN,n C"pr, NwM" IYy"., Ym" t Nb.e, Iny." Dn AYw, b. /3oL Section 103(b) of the Internal Revenue Code of the United States, related statutes and regulations. Section 21. Discharee 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-thepayment 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 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 t me to t me f 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 -27- .w.. rmir.Ow.Nn nnn, iM t,ba t,n.M1 W w.. b.. ` /3oG I -I r d� 10 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 intgrest 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 sights 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 brieflyset forth thenature 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 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. -28- ,w,.[m....m w t..n,.w.,.w on. c.. /WN10` i 01 -29- 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 acknowledgmentsofdeeds within such jurisdiction thattheperson signing such instrument i acknowledged before him the execution thereof, or may, be proved t �y an affidavit of a witness to such execution sworn to before such officer. j --.:Theamount 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 bysuch person or by a certificate executed by an officer of a bank or trust company showinglthat on the:date therein mentioned:such person had on deposit with.such bank or trust company the. Bonds described in such certificate. , Section 24. Additional covenants,: representations and . .� warranties of the Issuer with respect to retroactively effective federal, legislation. 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 withthe provisions of H.R. 3838, . t the tax reform act of 1985 (the ."Bill"):.passed. by. the U.S. . House of Representatives on December 17, 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. The Issuer may treat the Joint Statement as effective to extend f1j 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 Bondst I / 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. -29- 3. In the event the federal law applicableto 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. Section 25. Amendment of Resolution to Maintain Tax Exemption. This resolution may be amende-d- thout 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. 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 orunenforce- ability of such section, paragraph or provision shall not affect any of the remaining provisions. Section 27. Reoeal of Conflictirin reeorurrons and orders, or parts thereof, in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby repealed; and this Resolution shall be in effect from and after its adoption. Adopted and approved this day of 1906. Mayor ATTESTi Clerk -30- rHu. /30` i I 1 k { r � i � I 1 i T + CIG -3 4-85 CERTIFICATE STATE OF IOWA ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of Iowa City, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this day of , 1986. SEAL City Clerk, Iowa City, Iowa I , s h I . ... (l is pop has been left blank intentionallya I I 01 - 7 'i - V114 to�4 � , - APPENDIX'C Sewer Rate Ordinance -T E. 'i - V114 to�4 � , - APPENDIX'C Sewer Rate Ordinance -T r h .i ORDINANCE h0. M ORDINMCE MUM CFWPIFR 33 OF TIE CODE OF ORIIINANZ OF TIE CITY OF ION4 CITY, IOWA, ENTITLED 9IRLITIES", By REPEALIHS SECTIONS 33-44, 33-45, AND 33-163 T EFEOF, AND ENACTING IN LIEU DEW NEW SECTIONS TO BE CODIFIED THE SIMS TO PROVIDE IN- CAFASED FATES FOR ATER AND S88 USE IN HAA CITY. SECTION 1. The purpose of this Ordinance is to 7i_Pm�icns 33-44, 33-45, and 33-163 of Chapter S 33 of the Cate of Ordinances of the City of Iowa City, Nos, and to enact 1n lieu thereof new sec- tions to be codified the sale to provide for the establiftard: of new rates for water use and sewer use in foe City, Iowa, MSECTION II. MENDIM. Section 33-44 of Chapter 33 I j ro rDainances is he-ety repealed, and there is hereby enacted in lien thereof a ren Sec- tion 33-44 to read as follows: Sec. 33.4. Sax -Fading. : To generate adequate revenue. The user charge systen shall generate adequate annual revenues to Day: (1) Costs of areal operation and uminteare, !, (2) Costs associated with saver bad retirm t for bonds now outstanding including payneits to all sinking, revenue, depreciation, aden- sion and inproveonnt funds established in the ordinances err resolutions authorizing such bads, and (3) When required, costs associated with sewer bond retirerent of bonds to be issued in the future. SECTION III. MOW. Section 3345 of Chapter 33 o�iFe Of urdr inarca is hasp riled, and there is herhy eructed in lieu thereof a new Sec- tion 33-45 to reed as follows: Set: 334. Sare tes. (a) Basis. Each user shall pay for the services provided by the city based on his/her use of the treabnent writs as determined by water neter(s) acceptable to the city. (b) Esthmted billings; separate neters. User charges shall be based on actual voter used during the billing period. If actual voter use is not available, the user charge will be based on prior water usage. New austcom shall have a first billing based on an estinmte determined by the finance dgoar•bneut. 1364 iffio w •I Page 2 (c) Mininm charge. The user charges for revs• service for l) m nimm rmnthly rates, for the first bo hundred (200) cubic feet, or less, of water usage, and 2) each ore hundred (100) cubic feet of water used in excess of first bo hundred (200) cubic feet', shall be as follows: Effective Effective Effective 9/1/86 9/1/01 9/1/88 Minim Monthly $3.00 f 4.15 $ 5.75 Charge (includes the first 200 cu. ft. used) Each additional f .65 S 1.04 $ 1.26 100 cu. ft. used These user dwrges will be effective with the bill- irg sert.after the effective data listed in the preceding dart. (d) Surcharge. For those contributors vino contrib- ute waste water, the strength of which is greater than mmol darestic sarage, a surcharge in addition to ft normal user charge will be collected. The surcharge for operation and maintenance is: i Effective Effective 9/1/86_ 9/1/88 BCD (per pound) SS (per pound) f.06 $30 (e) Users to bear increased costs. Any user which discharges any toxic pollutants vhidn rause an increase in the cost of Waging the effluent or the sludge frmn the city's treabmt waits. or any user which discharges cry substarnce wfnich singly or by interaction with other substancm mused identifi- able increases in the cost of operation, nmintenance or replacmmt of the treatment works, shall pay for such increased costs. The charge to each such user shall be as determined by, the director of public woks and approved by the city council by resolu- tion. (f) Applicability of charges. •Bre user charge rates established In this section apply to all users, regardless of their location, of the city's treabent works. (g) Water not discharged into systen. If any user of water ccnwres water for any purpose which does rat muse discharge into the sanitary se" systen, and if approved by the city and as established by a separate venter meter installed and rreintainei by 1364 T k Page 3 such user, the camurption of such voter can be determined, no charge shall be node on the basis of water so supplied. Residential contributors shall not be allowed this option, unless approved by the finance department. (h) (rater discharged into system from private source. If any person shall discharge vote- into the city sanitary sager systen from private sells or other sources other than the city hater system, the city shall have the right to install a meta at the owner's expense to measure such flow or to use whatever main are satisfactory to the aww and the city to measure such new for the purpose of deter- mining seege treatment changes. SECTIO♦ IV. Section 33-163 of Ohapta 33 of the MEW'd3r finances is he* riled, and them is hereby enacted in lieu Ahemof a nor Section 33.16 to read as follows: Sec. 33-16 (a) The user oharges for voter service for the first two hurKh (208) obit feet, or less, shall be as follows: ----------RA7ES-------- -- K R SIZE UMTIVE EFFECTIVE EFFECTIVE (1 9-1-86 9-1-86 9-1-87 9-1-88 5/8 f 3.25 $ 3.6 $ 3.80 3/4 3.75 4.15 4.35 1 4.40 4.85 5.10 1-1/2 8.75 9.65 10.15 2 11.75 12.95 13.60 3 21.75 23.95 25.15 4 37.95 41.75 43.85 6 76.40 84.00 88.20 (b) The minimum user dwW for larger metes will minLased on iuser Mire costs to a 6" meta. The ves meter at their w costs will be based ah ft mminii-- wn for a 5/8" meter regardless of the size. (c) The folloring rates shall be Charged on all water used in excess of 200 cu. ft. per month: ----R4TES PER 100 CHIC FEET i�VEuAVE AVEGb (Cubic ; Next 2,800 $ .75 f .83 f .87 Next 17,000 .45 .50 .Tai Over 20,000 .40 ,44 46 /310/6 I IS t• r ls.7 S`i C (c) --rc `Ongoing rates aro ciarges shall apply only to properties lacatad within the corporate limits of the City of Ias City: there another mmicipal corporation has entered into a contract with the City of iara City; the rats provided for in such contract stall prevail: For all arms outside the City mrporate limits of the City of Ion City fbr while Um -is ro pcevallfiq urrGact. the rate shell be established as MSTthose provided herefrC (e) The water rates and merges herein established will be effective with the billings sed after the effective dates listed in the preceding deems. SECiIQI V. MMEE Section II of ilndlrrmm 110: �rE%Ta III and IV of grdfnmxe No, 81- 21, wed ery sed all other ordinances or parts of ordinances which are in conduct with this ordi. rweoe are hers, rs�urti auudged IV a dirt invalid or unconstil not affect the valic or am section: ort In the event any sac. the ilydlnanoe shall be tent ,jurisdiction to be such adjudicatien stall is Ordinance as a vhoh3 Part thereof not ad- jqm mvapo or moonstituticnal•. SILTIUI YII. EFFECTIVE DATE. This grdirance shall after its f pbligtiman as re passage, approval and neWired ty lac. 1986 and approved this 17th day of June, ATTEST: _Lk , > .e! Dawn% /3ato it i ti i �i i 4 1 4 f IS t• r ls.7 S`i C (c) --rc `Ongoing rates aro ciarges shall apply only to properties lacatad within the corporate limits of the City of Ias City: there another mmicipal corporation has entered into a contract with the City of iara City; the rats provided for in such contract stall prevail: For all arms outside the City mrporate limits of the City of Ion City fbr while Um -is ro pcevallfiq urrGact. the rate shell be established as MSTthose provided herefrC (e) The water rates and merges herein established will be effective with the billings sed after the effective dates listed in the preceding deems. SECiIQI V. MMEE Section II of ilndlrrmm 110: �rE%Ta III and IV of grdfnmxe No, 81- 21, wed ery sed all other ordinances or parts of ordinances which are in conduct with this ordi. rweoe are hers, rs�urti auudged IV a dirt invalid or unconstil not affect the valic or am section: ort In the event any sac. the ilydlnanoe shall be tent ,jurisdiction to be such adjudicatien stall is Ordinance as a vhoh3 Part thereof not ad- jqm mvapo or moonstituticnal•. SILTIUI YII. EFFECTIVE DATE. This grdirance shall after its f pbligtiman as re passage, approval and neWired ty lac. 1986 and approved this 17th day of June, ATTEST: _Lk , > .e! Dawn% /3ato (This Page has been left blank intentionally.) T r .. /301 I `5 4 } pL 9 ` 1 ' 1 . APPENDIX D Financial statements of the City's Enterprise Funds Year Ended June 30, 1985 /301 I ASSETS Cash Investments Reca tables: Accounts end unbilled usage Interest Due from other funds out Irani other governments Inventories Properly and equipment: land buildings and structures Improvements other than buildings Equipment nod vehicles Accumulated depreciation Construction In progress Tqtal assets LIABILITIES AMC MUNICIPAL foully LlabnMwt Evcess of oulslandtng checks prof bank balance Accounts payable Contracts payable Accrued liabilities Due to other funds Due to other govarmAtt Deferred revenue Interest payable Deposits Review bones payable Houelnnpp Authority ogles payable Contra obll .Ilan bands payable Taut Ptabllltles municipal equity$ contributed capital Retained swings Iddlclq$ Send erdlnxnce reserves Unreserved Total munlclpal equity Total liabilities and municipal equity CITY OF IOWA CITY COMBINING BALANCE SHEET ! ALL ENTERPRISE FUNDS June 30, 1985 Pollution Houslag Mau Parting Control Yater 9ntlatton Airport Authority Transportation Total - - 1 500 ( • - i • • 1 160 { - • { 1 1,255 { 2.205 I 792,522 2,262,674 651,724 112,001 11,797 311,1$9 111 4,458,888' ' 1,080 360,087 705,171 136,345 155 1.751 5,4)1 81!,979 2),779 71,921 2],7]1 1,595 BIS 438 157 88,177 - t t 451,191 451,182 1 402,062 - - - - - 5,619 1,310,388 • • • • • • - • 192,1% 29,%9 - 222.16) • • - • 131,509 - - • - • - • - 131,509 1,658,169 19,291 N 16,611 • 160,190 254,132 554,050 1,750 2,62),751' 1,371,104 2,756,666 ],112,003 11,261 551,992 2,630,622 2,10),252 19,2]2,926 3,5]9 11,316,722 ),150,196 19,160 6]1,%1 1,811 285,510 10,/Bi,%5 I 7!,313 82,109 66,)]f 6.11) xi,]SI 75,11/ 2,11125,0151 x,)]1,]11 ,186,051 ( 31!(90 15.142,1841 5 (11,02),15) ) 6965) I j ' 1.162,276 1.051.015 I/5,115 • • 7.190 • - 1.721.305 4944!49!P! 11!6!!64!4 441!!48499 162]].:4! !! 46!93A111 41a11l,PP3 1!79!916:!! I 1 • - i ' . t • • i • . t • • 1 2,121 t • • f 2.129 62,961 11.99 /5,/0S 9.937 3,505 1,061 1,652 154,604 115,791 117.666 • • - el dtl )11,769 69,861 98,08/ 54,216 62,110 1,)21 31,119 117.611 16),169 x09,868 ],211 154.23S 27.301 1.16] 82.619 ,191 1.156,919 • • - • - • - • 266 111 ,005 111,101 171,112 106 20806 161,104 1651 10,516 - • • • 11:819 • • 290,059 4,860,000 810,000 116;0054 • • • • 9,971 • • 6,516 0014 0 I.0 !,160,641 • • x,020,541 �. T . } oL` 6cL76h3� : 021 2411 1 11,106 113.645.421 {1,977,191 1 145,264 1 916,112 1 142,001 13,640,600 120,671,565 157,151 1,025,461 679,332 :,06x,116 sit 4 59:75( 1 1 E11 7 723 1239.936' 19 1311 l_. 76,7A1 6 63 f !Yd!421P! !!!1!!!1!!! 142,7!!i9!6•]!979. !!,911x1!! !. !!!1!!! l6PP!,Pl1 !l741!7PP2 !!1799!61!4 1 t , REVENUE: Charges for services and use of property Miscellaneous ISPINSES1 Personal servicsi Commaditlas Services and charges operating Ipcoot (joss) Were depreciation Denson: lotion Operating Income (lots) WWRATING umCCmE [EVENSES) I Go I aat,) disposal of fixed assets Cper flan op Ersatz lAta:ett. Was Interest sm"Alm lmm (lots) before operating transfers OPINATING T96SFINi 191, IN four) Not Income (1013) krectation m assets acquired by contributed capital that reduces Contributed Capital increase (decrease) in retained earnings NIFAINED EARNINGS (DEFICIT). WINNING is restated RETAINED EARNINGS (DEFICITI, ENDING CITY OF IOWA CITY COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS Year.Entled June 30, 1985, PolIUMA Housing Kass Parkina Control Water Sanitation Airport Authority Transportation !Total $1.433.003 11.608.468 $11.714.009 11,070.932 S 17,121 i 1 1 5 -0295 1' 1 157.991 ;,17.046.657 SOS 3 243 36 210 21 678 5 442 67 269 6 5]5,922 159,65] 1 1111:111 - 1 432,473 S 37.610 1 1 1.1 $3. 64.329 6 52:1 '13326, 3196.022 79:030 599 161,512 24,479- 31,948 1 1 264 846 346 696 671 384 611 628 143 930 757 476 2 779 604 T70i�." T-ftem TjWW 553,790 1 762.763 1 350,524 1 82.452 1 (144.989) Il 190,399 1(1.110,968) 1 673,971 247 028 364 109 170 241 4 289 21'$60 101,211 217 600 149 041 1 T— JU6:16Z 3884654 1 ISOIZ83 1 (Ifigs5491 1 89v1I85 1(1,3485681 fW:m (1,4001 25,186 23.786 239,736 238,736 172.176 267.275 64.046 52.736 14,228 14,230 11.499 606.190 1318,86611157,5661 136,363 0 m 1160,452)1673,2361 1 '160,073 S 4911,373 1 207.911 1 110.895 5 (155,321) 1 148.4311 1(1.673,1471 1 "(219.594) 1263,4121 a * 96,195 12,690 754,041 639,020 1 (103.7391 1 498.373 1 201,966 1 227.094 S (102,731) 1 148.437) S (319.100) 1 359,426 Be 105 188 M Iauj.;�) 14911777 7-737-.966 T-TIrM TITa.-nTi T—TIMi I [MoMj 1 441:511 4,139,032 955,900 2,214,180 565,631(131,2041 (63,8961 567,376 8,250,619 ffiffIl!" 7!5 1) }..:1111118/69/1160 T -� I CITY OF IOWA CITY COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL ENTERPRISE FANGS Year Ended June 30. 1985 UNCIAL RESOURCES PROVIDED IT held not (provide). or require f sash and Inresteents: tion An) On disposal of fixed assets -decrease in: sees umbflled wea recelnabla interest receivable other funds other governments 11012 of outstsnding checks ones, bank balance Accounts p )able r , Accrued ]if6s1ltlse Due to other fund% Dee to Olha govomenti 04f.rred farm.. Interest payable Told financial resources prodded Pollution Housing mast Patina Control Yater Sroltctlon Airport Authority Transportation Totes 1 (101,739) 1 69a.313 1 207,966 1 227,091 . •1 1102,131) 1 118,171) S (230,995) 1 - 617.531 20,028 361,109 170,211 - 1,289 21,560 101,211 237,600 1,1/9,011 • • _ . _ _ _ . 1,100 (25,186) -(23,786)J, (13,219 (151,970) (83,295) (26,718) (155) (1 757 (3,889) ' (769,0531, 1,6251 8,017 36,762 2,717 1,820 12891 6,565 611001 (6,959) 23.608 3,021 - • • - (658) 19,012 • - - - - - 17,061 • • 17,861 • • (3,091) .(3.0911.: 2.129 - .2,129 ]2,977 6,595 (75,6]1) 6,028 767 1,250 (25,517) (/7,339). II,651' 11,7271 1,508 10,6821 1,058 13,5151 1,099 1,776 (291) 11.6511 (10,al61 5,083). 1102) 66,161 32,002 60,339 x,012 166 11,1961 6.176 2a6 20.875 " " 6,012 ' 22,361 1 165,119 1 701,511 1 307,615 1 193,610 1 (71,775) 1 189,012 2 (8,975) 1 1,180.769 • • - 115,297 117,566 - - • . • • 232,813 - - 851,617 - • - 151,611 56,315 1,759,269 - - - - - 202,345 202,315 12,167 • • 12,161 265,033 92,158 - - 2,909 • • 626,268 .�.96�6a,,1,488 - .. 119 400 89 `600 1221,170 1 d51,185 11,381,7/0 1 166,756 1 6,800 1 670,139 1 926,136 1 3,691,601 651,187 617,916 - - 101,199 • - • • • • 1,210,6]2 20,000 • . _ . .. - - " ' 87,591 83,597 • • - - 20,000 417 120,000 392,556 220,000 • - • • 71,210 - • 810,766 1 4115 ILa6__.__ ,_ 9 T e�9 bees nw-,9a6" 1 .... ?19!!! }.!!:1919°) 111999!2:?!7 �a_11 - ( 1 ._12.421 1 ]60 1 • - 1 (3],00)1 1 . • 1 ,606.117 613 926 400 ,051 CI . 1191.2061 1372 ,423) 177,6661 131,004 (131,780) 11,695,1241 1.1?191111) 1.119911111 L1191.:?ll 1.111?97!77 }..1119!?:) 1...1191!1 1.1171494) 11!999199111 .... Out free other governments Deposits Contributed capital Proceeds fru sale of fixed assets FINANCIAL RESOURCES APPLIED IT Purchase of Property and equipment Out fru other funds Contracts payable Owe to other funds 1:posits Prymem of bonds and notes Return of condlbuled capital Net Increase (dmreass) In Cash and Investments, as below ` . S1MhARY OF MET [HINGES IN LASH AAD IhWeSTNEN75, W Incrom(decrease) Int Innslunta Nal Increase lderro0) In cash end Investments 1 Pollution Housing mast Patina Control Yater Sroltctlon Airport Authority Transportation Totes 1 (101,739) 1 69a.313 1 207,966 1 227,091 . •1 1102,131) 1 118,171) S (230,995) 1 - 617.531 20,028 361,109 170,211 - 1,289 21,560 101,211 237,600 1,1/9,011 • • _ . _ _ _ . 1,100 (25,186) -(23,786)J, (13,219 (151,970) (83,295) (26,718) (155) (1 757 (3,889) ' (769,0531, 1,6251 8,017 36,762 2,717 1,820 12891 6,565 611001 (6,959) 23.608 3,021 - • • - (658) 19,012 • - - - - - 17,061 • • 17,861 • • (3,091) .(3.0911.: 2.129 - .2,129 ]2,977 6,595 (75,6]1) 6,028 767 1,250 (25,517) (/7,339). II,651' 11,7271 1,508 10,6821 1,058 13,5151 1,099 1,776 (291) 11.6511 (10,al61 5,083). 1102) 66,161 32,002 60,339 x,012 166 11,1961 6.176 2a6 20.875 " " 6,012 ' 22,361 1 165,119 1 701,511 1 307,615 1 193,610 1 (71,775) 1 189,012 2 (8,975) 1 1,180.769 • • - 115,297 117,566 - - • . • • 232,813 - - 851,617 - • - 151,611 56,315 1,759,269 - - - - - 202,345 202,315 12,167 • • 12,161 265,033 92,158 - - 2,909 • • 626,268 .�.96�6a,,1,488 - .. 119 400 89 `600 1221,170 1 d51,185 11,381,7/0 1 166,756 1 6,800 1 670,139 1 926,136 1 3,691,601 651,187 617,916 - - 101,199 • - • • • • 1,210,6]2 20,000 • . _ . .. - - " ' 87,591 83,597 • • - - 20,000 417 120,000 392,556 220,000 • - • • 71,210 - • 810,766 1 4115 ILa6__.__ ,_ 9 T e�9 bees nw-,9a6" 1 .... ?19!!! }.!!:1919°) 111999!2:?!7 �a_11 - ( 1 ._12.421 1 ]60 1 • - 1 (3],00)1 1 . • 1 ,606.117 613 926 400 ,051 CI . 1191.2061 1372 ,423) 177,6661 131,004 (131,780) 11,695,1241 1.1?191111) 1.119911111 L1191.:?ll 1.111?97!77 }..1119!?:) 1...1191!1 1.1171494) 11!999199111 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATDENTS June 80, 1985 ,. Nota I. Mature of Operations, Reporting Entity, Description of Funds and Account Groups, and Significant Accounting Policies Nature of Operations The City of Iowa lCity, Iowa, was incorporated April 6, 1853o and operates under the Council/Manager form of government. The City provides a broad range of services to citizens, including general government, public safety, streets, parks and cultural facilities. It also operates an airport, parking facilities, a mass transportation 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 adaption, toxin y authority, debt responsibility and obligation of the City to finance any deficits that may occur, or receipt of significant subsidies from the City. . Based an 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 Immunity School District U administered by an autonomous toatd, created under the .authority of chapters of the tows Code separate and distinct from the City and thus their financial statements are not included inthis report. The Iowa City Conference Board which governs the Iowa City Assessor's office also did not meet the above Criteria and 1s excluded free this financial report. The Iowa -City .Library Foundation, Mayor's Youth Employment Program and Project. Green 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 than 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, for 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. Those sedlflsd cash basis accounting records CITY OF IOWA CITY, IONA MOTES TO FINANCIAL STAIIDENTS , June 00, 1985 have been adjusted to the accrual or modified accrual bests, as necessary, to Prepare the accompanying financial statements in accordance with generally accepted accounting principles. The accounts' of the City are organized .an the basis of funds or account Knolleach 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 whichcomprise its assets, -liabilities, equity revenue and expenditures or expenses, 'as appropriate. The various funds and account groups are presented as follows: GOVERNMENTAL FUNDS The General Fundis used to Accou6t 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 1s primarily derived from general property taxes, charges far 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 Sandal lavenue Funds are used to account for revenue derived from specific sources which.are required to be accounted for as separate funds. The.funds Included in this, cetegary.and. their purpose are As follows:. Community Development Block Want '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 end state grants. Federal Revenue Sharing Fund - accounts for monies received from Federal Revenue Sharing entitlements. Urban DOW oament. Action. Grant Fund - accounts for the Urban Development Action Grant funds loaned to the downtown hotel. Men loan repayment begins, the income will be transferred to the Community Development Black 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 (1944 usets, with the exception of those that are financed by special arse» mints or by enterprise fund montes. The funds in this Category are as Fallows, i7 I f;I a+ CITY OF IOWA CITY, IOWA NOTES. TO FIMMIAL STATEMENTS June 30,. 1985 :.. Bridge, Street and Traffic Control Construction Fund - accounts for the construction or replacement of Infrastructure fixed assets such as streets, bridges, dams, sidewalks, lighting systems, and stone sewers. 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 replacennt of other Citygeneral: fixed assets. such as administrative buildings with various funding sources including general obligation bonds, Intergovern- mental revenues, and contributions" The Special Assessamnts Fund is used to account for the financing of improvements or services deemed to benefit the properties against which special assessments are levied. PROPRIETARY FUNDS The Enterprise Funds are used to account for the operations and activities, that are financed and operated . in a manner similar, to a private business enterprise and where the casts of providing goods or services to the general. Publ lc on s conttnuln9 basis Is expected to be financed or recov- ered pprrimarlly through user charges, or Aare the City has decided that periaAlc deteminatlon of revenues earned, expenses. incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category ere as followis ,. 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 sever system. Water. Fund - accounts for the operation and maintenance .of the City's water system. Sanitation Fund accounts for the operations and maintenance of the City's solid alto 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 intone housing assistance and public housing programs, "Now. Hae Tranipertetion Fund - accounts for the operation and maintenance of Wthe City's public transportation system. O The Internal Senlca Funds are used to account for goods and servtces provided by one department to other City departments on a cost rehrourse- ment basis. The funds in this category are as follows: I M I I�i CITY OF IOW CITY, IOW t NOTES TO FINANCIAL STATElEllTS June 30, 1985 for City Fund •, accounts for the Provision of maintenance I i far C1ty vehicles 'and equipment, and 'vehicle rental to other City departments from a central vehicle pool Central lServlces Fund - accounts for .the printing services and�efflce supplies inventory provided to other City departments. FIDUCIARY FUNDS The Trust and yy by 1 In a trustee or ccustodtelscap capacity for the City's ba pensioln and tretire. meet funds and for other entities, such as individuals, private organiz ae- . tions. or other governmental units. These fund types re categorized 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 789.6 of the Code of Iowa- . - ... � Johnson County Council. of Governments Trust Fund - accounts for the f ... activities of the amtropolitan/rural tion. cooperative Planning .organize- Non -expendable Trust Fund: _.- Perpetual Care Trust Fund • accounts for manias as required by -Cemetery �.. needs said through May, 1977. The investment proceeds from this fund are transferred to the gyeneral fund each year to be applied against cemetery operating expendituraf. - i' 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 es custodian for the following agency Ponds: Project Green Mayor's Youth Employment Program Eldercraft Shop Library Foundation i ell Ir , CITY OF IOWA CITY. IOWA .NOTES TO FINANCIAL STATEMENTS June 30, 1985 ACCOUIIT GROUPS .. The Game al ,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 Loni Debt Account Group accounts for all City general .obligation and other long-term debt expected to be financed from govermnen- 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 - ling I ccount- ing, revenue is recognized In the period In which it becomes available and measurable. Revenue accrued includes pro arty taxes, Intergovernmental and ,.;interest earned on Investments. Expenditures are recorded as liabilities as .incurred, if ,measurable, except for uncultured interest on general .long-term debt. The accrual basis of accounting is used for all of the enterprise, Internal service, perm ion and retirement trust, all nonexpendable crust funds. Under this method of accounting, revenue is recognized in the accounting period In which it is earned all becomes measurable and expenses are recognized In ._ .the period incurred, if measurable. Cash Management and Investments: The City maintains one primary demand deposit account through Mich the majority,of the, City's cash resources are processed. All investments 'are "stated at cost or amortized cost, and except for long.term investments in the pension trust funds, these amounts approximate market VAIN. :The Cityy 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 goal, except for those Ponds 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 Pecognitian: 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 on March 15, 1984 based on the 1983 assessed valuations. Taxes are payable in two installments, due Septemev 30 and March 31, with A 15 per month penalty for. delinquent payment. That portion of the property taxes receivable Which recorded to the governmental fund types, and Mich are not available for the current year's operatlons, are shown as deferred revenue. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATFNEMIS June 30, 1985 - Special assessments receivable is recorded at the time of the levy, and that portion which is not available for the currant year's operations Is shown as deferred revenue. Interest revenue an special assessments is recognized when collected. Federal revenue sharing is recognized during the entitlement' period to which it applies. Substantially all other shared revenue is recognized wren received ,by the collecting authority. Federal and state grants, primarily capital grants ere recalled 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 typpes and accounts and unbilled usage receivables In proprietary fund. types is recognized Men 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 to those funds In Mich they are materiel 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 ars carried at original cost, or at fair market VAIN when received as donated properties. The City follows the policy of not capitalizing Infrastructure fixed assets such as streets, bridges, lighting systems, sidewalks, storm sewers, and individual assets with a cost of less than $500, Depreciation is not recorded on the General Fixed Assets Account Group. Property and equipment associated with the Proprietary fund types are carried at original cost, or at fair market value when received as donated properties. Generally, assets with an individual cost of les% then 1500 are not capitalized. Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings and structures 20-50 year Other improvements 15-50 years Vehicles 5-20 years Other equipment 5-30 years In the Mass Transportation Fund, the City features to retained earnings depreciation on buses Mich have been acquired through federal grants, by e corresponding reduction of contributed capital. This application is limited to buses because the City anticipates they will be replaced with additional federal funding. f i I 1�• f CITY OF IDYA CITY,, IOWA MOTES TO FINANCIAL STATEREIM June 30, 1985 i 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 ar for payment upon death, retirement, or termination. If sick leave is paid upon death, retirement orexcept 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 not eligible for payment of accumulated sick leave upon termination,. death or retirement. , For governmental fund types, the amount of accumulated unpaid vacation and sick leave, payable from available resources, 1s recorded as a liability of the respective fund and the remaining amount is recorded in the General Long -Term Debt Account Group. The vested amount of unpaid vacation and sick leave, of proprietary fund type employees, is recorded as a liability If the appropriate fund. Total Columns an General Purpose Financial Statements: The total columns on the General Purpose Financial Statements are captioned 'mescranda only to indicate that they are presented only to facilitate financial .analysis. Data. in these columns do not present financial position, .results of operations, or changes In financial position in conformity. with generally accepted accounting principles. Neither is such data comparable to a consolidation because interfund eliminations have not been made in the aggregation of this data. Budgetary and Legal Appropriation and Amendment Policies: The City of Iowa City prepares and adopts an annual program budget, as prescribed by Iowa statutes, for all funds except the Housing Authority Fund, pension trust funds, Internal service funds, capital projects funds end certain escrow and revolving funds. This budget is adopted on or before Narch 15 of each year to became effective July I and constitute$ 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 Hans and Community Environment Policy and Administration b. The amount to he 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 Thelegal level of control (the level at which expenditures may not .legally exceed appropriations) is the program level for all funds combined rather than at the individual fund' level. It is permissible, therefore, to overspend the budget .within a particular fund for a particular program without overspending the legal program budget for the City as a whole.. It is necessary, therefore, to aggregate the expenditures of 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 adopted for the internal service funds and for, the Housing - Authority Fund. For cdpltal projects funds a five year capitalimprove- 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 nay be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation * and expenditure of unexpended uneacurisared cash balances on hand at the end of the preceding fiscal. year. b. To permit the appropriation and expenditure of amounts anticipated to be available from sources other than property taxation. C . To permit transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed and the - effect of that amendment Is shown in the financialstatement presentation.' Individual amendments were not material in relation to originally appropri- ated amounts. Appropriations as adopted or emended, and not encumbered, lapse at the end of the fiscal year. Statements of budget and actual revenue and expenditures have boon presented on a fund type basis and disclosures are presented which convert 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 tralsections as expenditures during subsequent years. Eneumorances are reflected In the budgetary statements contained in this report. 01 I CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS ... June 30, 1985 . Note 2. - Changes in Accounting Policies and Restatement of Prior Balances Expendable Trust Funds and Agency Funds: . In prioryears, the Johnson County Council of Governments Fund had been classified as an agency fund, whereas for the year ended June 30, 1985, the fund classificationhas been changed to an expendable trust fund. Therefore, the beginning fund balan Council of Governments Fund, ce of the expendable trust funds has been retroactively Increased by 367,908 to Include the Johnson County .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 he 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 hes been corrected as a retroactive adjustment to the beginning retained earnings of that fund. Note 3. "at Venue Actual Comparisons Unfavorable Expenditure end Transfers Out Variancefi For.the year ended June 30, 1985, three funds had unfavorable variances of actual. expenditures and transfers out conpared to budgeted expenditures and ' any law is ut. the Anel Ofthese Of control I. is theances prograrepresent rlevel forloalllifunds combined ratherthan at the Individual fund level. The funds having the unfavorable expenditures and transfers out variances .and the respective 'amounts are as followsi Fund Type and Fund (Unfavorable( Variance Special Revenue Funds' ' Other Shared Revenue and Grants Fund $(510,635) Capital Projects Funds Other Construction Fund (73$,631) Special Assessments Fund (455,868) CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1985 The Other Shared RevenueandGrants -Fund unfavorable variance results from unanticipated Interim financing needed for Public sousing project 22-5, f , for purchasing additional public housing rental units. This purchaseaccurted the last week of the fiscal year and the necessary federal fundcc received within ten,days following the transaction- , Ing was The Other Construction Fund unfavorable variance results iron unanticipated transfers out to finance construction projects in other,funds. The -Special Assessment Fund projects budgeted In the capitunfavorable varvarianceresults Yrde construction al projects funds. I T -1 I S.% (Y, ...CITY OF IOWA CITY, IOWA MOTES TO FINANCIAL STATFIEIIIS June 30, 1985 Budgetary Reporting Reconciliation: The Clty Prepares Its Program and non -program annual operating budgets using I modified cash basis of accounting. For purposes ofcomparing actual financial data with the budget, the Statements of Revenue, Expenditures and Changes in Fund Balances All Governmental Fund Types have been converted to the nam -GAAP budgetary basis. A reconciliation of the revenue and other financing sources over (under) expenditures and other financing uses, budgetar (man -GAAP) basis with revenue and other financing sources over (under expenditures and other financing uses GAAP basis Is as follows: Special I Debt ' Capital Special General Revenue Service ProJeets Assessments Fund • Funds Fund Funds Fund Revenue and other financing sources over (under) expenditures and other financing uses, budgetary (non -GAAP) basis 1 (46,563) i(518,815) $(42,078) 5(1,186,133) S(446,753) Revenue adjustments: Reverse prior year accrued revenue (531,052) (380,005) (39,896) (33,120) (54,042) Property tax receivable 191,700 • - 44,753 • - . . Interest receivable 61.251 4,062 - - • - 191 Grants receivable ` 11,568 170,710 - • 11,669 - - Accrued transfers in 10,422 .. .. . . Other receivables 360,729 784,254 • • 15,414 57,647 .Expenditures adjustments: Reverse prior year expenditure accruals 849,986 28,637 63,709 53,233 24,642 Payroll and employee benefits accruals (366,393) (32,326 • • (4,677) (657) Contracts payable - • (80,946). • • (115,660) • . Matured Interest payable - • (96,890) • - . . Accrued transfers out (4,3291 .. • . • • • - Accruals for subsequent expenditures (271,9561 (38,264) • • (!1,127) (198) Other payables(16 915) 35,000 Encunbrancis 117.925 4.625 • - I1.12S Revenue and other financing sources over (under) expenditures and other financing mens, GAAP earls !.]!L➢9! 1.149106!1 W O CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMFMS June 30, 1985 Legal Program -Budget Compliance: The following schedule compares by pro ram. the total expenditures and encumbrances of legally budgeted funds, w1t10 the emended statutory budget for of the City as a whole. the year ended June J0, 1985, to demonstrate legal compliance with the budget Actual Expenditures Variance !mendedFavorable Budget Encumbrances (Unfavorable Community Protection i 4,026,313 S 3,98(,792 Human Development 7,053,8/4 3,024,393 $ 44,521 Home and Community Envirament 13,851,716 13,843,126 29,451 Policy and Administration 3,017,536 2,622,612 394;894 Transfers out 8,009, ISO 6,758,144 1,240,106 Note 4. Deficit Fund Balances As of June 30, 1985, two funds have deficit fund balances. Nona of the deficits represent a violation of any law, The funds having the de Q, f and the respective amounts are as follows: Fund Typo and Fund Oeficit Special Assessments Fund $ (664,582) capital Prolects Funds Bridge, Street, and Traffic Control Construction (1,174,294) The Special Assessments Fund deficit results from special Alsasmants which have not been recognized es revenue. The Bridge, Street and Traffic Control Construction Fund deficit results primarily from expenditures in excess of funding provided to date an several Individual capital prgJects. The deficit will be recovered in the future from grants, trans ars from other City funds, .and the sale of general obligation bonds. Note S. Pension and Retirement System 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 taws. All of the systems are contributory and all permanent employ les must participate in one of the systems. Each of the Joe el system administered by a local board Ms Is which hes three members eppotn ted D the s is Council, the City Treasurer, the ehlef officers o! the department, and two members elected bythethe Participating members. They are regulated by Iowa statuFollowing If A Cit atndicatinCis 45 q (the an for systems,1ethe semploye fh coruW,send systems. allocation of the City -s covered payroll 59,0/5,607, far the year ended June 30, 19850 i I 7 E CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STAMIEMIS 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 cost method with no provision for any unfunded past service liability. Pension and retirement benefits for the local systems are mandated by lava Statutes Chapters 410 eed 411. A mentor may retire with full benefits after reaching age 55 and having served 22 years or more. If a mercer has serve 15 to 22 years upon termination of employment, he shall receive at age 55 a Prorated benefit based an the number of years served. The retirement allowance, payable monthly for life. equals 502 of the member's average final compensation or average earnable cgnpensation for the three years of highest compensation of the meters. A member with five or more years' credited service who becomes totally and permanently disabled free other than duty -related causes shell receive an ordinary disability retirement allowance equal to 402 of the member's average final compensation. This percentage is lowered to 251 if the member has under five years of service. If the member becomes totally and permanently disabled from duty -related causes, he shall receive an accidental liability retirement aliawance equal to 66-2132 of the meter's average final cOmpensa- tion. Upon the death of a meter caused by performance of duty the mender's spouse, Children or dependent parents shall be paid 502 al the moor-$ average final' compensation. If a mentor dies in at out of service after 15 or more years of Service, the loop sun Amount to be provided is equal to 502 of cmpentatian earnable by the member during the year.preceding death or In the last year of service. There is in option whereby the beneficiary may receive A Pension Of 251 Of the member's average final compensation or 375 per month, 'There shall also be Paid for each child of a member a monthly PO an equal to 62 of the monthl earnable cmpnsation paid to an active meter at the highest grade until age 18 or 22 If applicable. Pension payments are Wade to an unmarried surviving spouse, surviving children until they reach 18 Or 22 if soplivable, or to a dependent father or mother If a member has no spouse or children. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1965 On January I and July l 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 rank and salary scale position held by the member at retirementor 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 Theseroll ratesare cover made basedmup upon actuarial unts necessary method to finance stipulateed sbytIowa statutes, which 1s essentially en aggregate cost method with noprovision for - any unfunded past service liability. For Ponding purposes, the following significant assumptions were used in the actuarial valuations as of June 30, 1985 and 1984: (1) an assume rate of return on investments of 61 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 reasans 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 credited projected benefits has been compute and Included in these financial statements. The actuarial prennt value of projected benefits consists of: (a) the actuarial present value of projected benefits payable to current ntirants and benefictaries, (h) the actuarial present value of projected benefits payable to terminat vested participants,. and (c) the actuarial present value 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 assume to be credited is the portion represented by the ratio of (a the number of years covered ionic@ rendered as of the date of the va ustion to (b) the total Covered service which will have been rendered as of the aspected 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 use for the two purposes. 01 Number of - - System "-- -' Employees Covered Covered Payroll Employees Local: Fire " All fire civil service employees $1,203,434 5o Police All police civil service employees 1,387,021 55 State, IPERS All other Permanent emplayees 6 455 148 373 JELPM VT Local Systems - - The participating employees are required to contribute to these systems, and the State of Iowa contributes to the extent necessary to fund increased benefits legislated by the Iowa General Assembly. Contributions to the fire and police systems are made based upon an actuarial cost method stipulated by Iowa statutes, which Is essentially an aggregate cost method with no provision for any unfunded past service liability. Pension and retirement benefits for the local systems are mandated by lava Statutes Chapters 410 eed 411. A mentor may retire with full benefits after reaching age 55 and having served 22 years or more. If a mercer has serve 15 to 22 years upon termination of employment, he shall receive at age 55 a Prorated benefit based an the number of years served. The retirement allowance, payable monthly for life. equals 502 of the member's average final compensation or average earnable cgnpensation for the three years of highest compensation of the meters. A member with five or more years' credited service who becomes totally and permanently disabled free other than duty -related causes shell receive an ordinary disability retirement allowance equal to 402 of the member's average final compensation. This percentage is lowered to 251 if the member has under five years of service. If the member becomes totally and permanently disabled from duty -related causes, he shall receive an accidental liability retirement aliawance equal to 66-2132 of the meter's average final cOmpensa- tion. Upon the death of a meter caused by performance of duty the mender's spouse, Children or dependent parents shall be paid 502 al the moor-$ average final' compensation. If a mentor dies in at out of service after 15 or more years of Service, the loop sun Amount to be provided is equal to 502 of cmpentatian earnable by the member during the year.preceding death or In the last year of service. There is in option whereby the beneficiary may receive A Pension Of 251 Of the member's average final compensation or 375 per month, 'There shall also be Paid for each child of a member a monthly PO an equal to 62 of the monthl earnable cmpnsation paid to an active meter at the highest grade until age 18 or 22 If applicable. Pension payments are Wade to an unmarried surviving spouse, surviving children until they reach 18 Or 22 if soplivable, or to a dependent father or mother If a member has no spouse or children. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 1965 On January I and July l 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 rank and salary scale position held by the member at retirementor 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 Theseroll ratesare cover made basedmup upon actuarial unts necessary method to finance stipulateed sbytIowa statutes, which 1s essentially en aggregate cost method with noprovision for - any unfunded past service liability. For Ponding purposes, the following significant assumptions were used in the actuarial valuations as of June 30, 1985 and 1984: (1) an assume rate of return on investments of 61 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 reasans 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 credited projected benefits has been compute and Included in these financial statements. The actuarial prennt value of projected benefits consists of: (a) the actuarial present value of projected benefits payable to current ntirants and benefictaries, (h) the actuarial present value of projected benefits payable to terminat vested participants,. and (c) the actuarial present value 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 assume to be credited is the portion represented by the ratio of (a the number of years covered ionic@ rendered as of the date of the va ustion to (b) the total Covered service which will have been rendered as of the aspected 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 use for the two purposes. 01 T 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 Police Date of actuarial- June 30, June 30, June 70, June 30, valuation 1985 1984 1985 1984 Net assets available f 5,026,965 f 4,168,768 $4,541,353 $3,786,011 Actuarial present value of projected benefits payable - to current retirants and beneficiaries f 2,951,651 S 2,928,685 $1,736,659 $1,742,930 Actuarial present value of credited projected benefits for active participants 3.601.475 3,184,115 2,779,241 2,403,798 Total actuarial present value of cred l ted.projected benefits f 6,553,128 'S 6,112,800 - $4,475,900 14,146,728 Unfunded actuarial present value of credited projected benefits Increase in total actuarial present ted projected benr efite of sfree lest valwtian Investments Market values as of June 30, 198S on the investments of the pension red retirement systems are as follows: Market Value Cost Fire 54,$54,489 $4,907,594 pal ice 4,380,151 4,424,455 Iowa Public Employees Retirement System The retirement system administered by the State of Iowa, (PERS, Is funded by amunts withheld from the participating employees and an amount contributed by the City. These contributions are datermined by the statutes of the State of Iowa and as of June 3D, 1985, the Percentages to be contributed an the first $21,000 of CWPensatian were 3.7% far the employees and 5.75% for the city. All pmenent employees of the City, not Covered by one of the local retire- ment systems, are members by Statute of the Iowa Public Employees Retirement System (IPERS). (PEAS Is a multiple -"Player plan administered by the State A f Iowa. There are approximately 128,300 active employees participating In the plan. CITY OF IOWA CITY, IOWA ROTES TO FINANCIAL STATEMENTS June 30, 1985 Members, upon termination of sery Ile after 4 years ar reaching age 55, nay exercise a vesting interest in a future retirement. UOan reach Ing age 65, ar 'early retirement at age' 55, the member will receive'retirement allowance based on A monthly formula set by the statutes. :An mender .who -terminates employment before retlremdnt is entitled to a refund of tAeir cantrlbutians plus interest. Upon the death of an active or vested member, both the member's C0ntrl61. utions and the employer',s contributions, plus Interest, are payable to the bnefici- ,-.. arY. _. .. • Asmentioned earlier, IPERS is a contributory .system wherein all 'credited benefits are funded with sufficient contributions. Unlike Social Security, no liability is assessed. against future IPERS contributors for payment of .Present IPERS benefits. An actuarial valuation is performed annuallly. The most recently published report, dated. June 30 1984s Shan a tatai -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 they And City's ndcontributinJune ,s lfor, the year ended ed annual Junea 30, 1984, ent is 1w0hich represent apprcxlmetaly ,34% of the -total employers' contributions, have been paid within 30 days after year and. The 20 year funding payment on the liabilities attributable to the 1910 increases in retirees' benefits Is $4,692,442. The June 30, 1984s valuation, using the assumptions stated in the actuarial report, shows that the total 1984.1985 fiscal year tort of benefits under the System, including the State contribution, is 1176,9520388 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 annr.n,e._ y.we..nt. .. ........ .. excess of earnings expected under The 9.042 of covered payroll contribution requirement Is .41% less then the bailc 9.46% 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 fncreased .1% of covered pay for the members and .5% for their employed. Such Increases would continue until the rate Is 4% of covered pay for merhers and 7.2% for their employers, I ►1 ...',,.,rte.. CITY OF IOWA CITY, IOWA .. NOTES TO FINANCIAL STATENFMs June 30, 1985 The General Assembly also .expressed the intent that theformula 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 in 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,,1905 is as follows:. Fire Police ]PEAS .Employes' contributions _ S 37,310 6 42,979 6238,840 Employer's contributions • 371,801 262,355 371,171 State contribution 43,872 36,251 - Contributions as a percentageof active member payrol t: city ,::{- 30.90% 18.921 5.755 State 3.66 2.65 - - Employees - 3.10 3.10 3.10 Percentage of compensation to.be. contributed for year ending June 3y0, 1986 par. actuary% State - . - 29.54% 17.691 5.752 3.66 2.65 Employees 3.10 3.10 3.70 i W O n CITY OF IOWA CITY, IOWA ROM TO FINANCIAL STATEMENTS June 30, 1985 Note 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 Depreciation Operating income (loss) Operating grants Operating transfers in (out) Interest expense Net Income (loss) Financial position: Total assets Net working capital Propert and equipment, additions 6 Uelations Long-term debt Retained earnings Current capital contri- butions and transfers Total equity Results of operations: . Operating revenue Depreciation Operating income (lost) Operating grants Operating tranmrs in Interest expense Net Income (loss) Financial position: Total allots Retained (deficl Current c butions Total eau 31,433,588 .$ 1,611,711 $1,750,219 $1,070,932 247,028 364,109 170,241 4,289 306,762 388,654 180,203 18,163 (263,812) - - - - 96,195 318,865 157,556 36,363 (103,739) 498,373 207,966 227,091 9,438,797 18,264,646 6,448,500 1,033,387 776,570 2,840,960 75,294 520,054 224,170 657,785 1,387,740 164,754 4,860,000 2,891,248 846,000 - 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 Nass . Airport AuthorityTransportation Total y s 68,699 6 415,344 5 763,433 s 7,113,926 24,560 101,214 237,600 1,149,041 (169,549) 89,185 (1,348,568) (475,010) 238,736 236,736 52,590- - 754,047. .639,OZO 160,452 • • 673,230 (102,731) (48,437) (319,100) 359,426 687,642 3,493,411 4,434,993 47,801,376 64,702 (254,631) (415,934) 7,665,016 5,880 630,139 924,136 3,894,804 - - 2,560,564 • • 11,163,812 (239,935) .,(102,333) 336,301 s,69s,150 2,989 (5,456) 536,668 871,392 676,547 139,668 3,976,881 29,272,715 I , • 's • - CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATElEN75 June 30, 1985 Note 7. Bonded and Other Long-term Debt General Obligation Bonds Various Issues of general obligation bands, totaling 110,500,000, are outstanding as of June 30, 1985. The bands have interest with rates ranging from 4,10% to 8.80% and mature in varying annual amounts ranging from $200,000 to 1500,000, per issue with the final maturities due in the year 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 bond issues have been used to acquire or expend enterprlse fund facilities. In same Instances revenue generated in the enterprise funds are used to pay the general long-term debt principal and interest. The Iiablllty for these bonds has been recorded In the enter- prise funds because the City intends to continue using revenue from the enterprise funds for tae payment of their principal and interest. Obligations Under Capital Leese ' - Equipment with a cost of $79,968 Is being acquired Under capital leases. The .June 30, 1985 balance of $35,136.12 due In monthly all annual Installments totalling 111 805 per year, including interest ranging free 10.771 to 17.64%. uith the final installment due In December, 1981. Revenue Bonds As of June 30, 1965, the following unmatured revenue bonds are outstanding: Parking pollution Control Water Amount 14,960,000 1870,000 1846,000 Interest rates 6.00% to 7.00% 3.253 to 3.75% 3.505 to 4,203 Annual maturity $130 000 to 170,000 to 135,000 to 1140,000 3100,000 1177,000 The revenue bond ordinances require that water, pollution control and parking system revenue be set eaide Into separate and special accounts a It is received. The. use ell the Amounts to•be Included In the accounts Is as follows: Atcwnt Amount (a) Revenue Bond Sinking Amount sufficient to pay current bard and interest maturities. (b) Boll end Interest $1,000 per month for pollution control Reserve bonds, 12,500 per month for water bonds, and $5,000 per month for parking bonds until the reserve balance equals the _ __, _._., _ ....., .. _ _..,,,..�.:_n.,�.-,.�.,�>.,,-.r„„-.n•�rs: ,Ali CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEIEM June 30;1985 ” maximum amount of principal and Into I due on the bonds In any succeeding fiscal Year. (c) Depreciation, 82,000 per month for 1pollution control j i '"- Extension and bonds, $3,000 per month for water bands, 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 Uwatured special assessment bonds are gut- standing. The annual maturities range frown $35,000 to $40,000, and the bonds have a 10% interest rate. The special assessment bonds• were issued finance new street and sewer construction Nand are fulled by ted speto d 10 assessments collections. CITY OF IOWA CITY. IOWA NOTES TO FINANCIAL STAIENENTS June 30, 1985 Summary of Bond and Other Lona -Term Oebt Transactions A summary of the changes in long-term debt, by type, for the year ended June 30, 1985, is as follows: 0 Increases mans Balance In Long -Term Inn Long -Term Balance I - June 30, 1984 0 b Oe6t June 30. 1 .Banded Debt: General Obligation f 100,000 f - S 1001000 f - Issue 1971 Issw 1977 i 1.fi00.000 - - 300,000 1,300,0 Issue 1978 1,525,000 - - 325,000 500,000 1,200,0 3,500,0 Issue 1979 Issue 1980 4,000,000 21225,000 - • 225.000 2,000,0 Issue 1982 2 7,� O � 1 2 500 0 ' Total General obligation o �_ ReParli . r, •..: Parktnq'Revenue, � -. f 4,980,000 3 f 120,000 f 4,860,0 Pollution Control 940,000 - - 70,000 870,0 Revenue . Revenu! 966 m000 120 000 846 0 Total Revenue Total 3 5 u�� ��� Special Assessment f 265 000 }�_ S 355 000000 f 230 0 Total banded debt Other Debt.. Employee vested benefits Long -tom vacation . f 263,483 f 407,982 f 377,766 f 329,6 _ Long-term sick leave e 990 2�0�� I f 929 7 1,259:4 0835 99!473 f 11099!473 Obligations under capital lease• 50071 14935 ]5 Total other debt TC1ig'.341 � r±2 u2iff Total lanq•term debt SZOA550A555 5, 652A�84 &502A708 MAMA 985 00 00 00 00 ii0'300'Odb' CITY OF IOWA CITY, IOWA - NOTES TO FINANCIAL STATEMENTS ,. June 30, 1985 Summary of Principal and Interest Maturities Annual debt service requirements' to service all outstanding banded debt as of June 30, 1985 are as toll awe: General obligation 'Obllyations Under `'', Year Ending Bonds Capital Leases June 30 Principal Interest Principal Interest 1986 $ 11575,000 $ 628,025 $14,236 S 3,570 1987 1,575,000 543,250 9,916 _ _ 2,251 1988 1,575,000 451,500 " 10,984 1,183 1989 1,575,000 `' 371,450 • • - - 1990 1,200,000 284,900 • • - - 1991-1994 3 000 0000 417 600 1112422422 Year Ending 00 June 30 00 1986 00 1987 TS'S76u000 1988 1989 00 1990 ISJ'SO6a7f00 1991-1995 1996.2000 2001.2004 99 as 94 136 20 624 Special Assessment - Revenue Bonds '.. ; . Bonds Principal Interest Principal Interest 3 35,000 f 23,000 f 340,000 8 375,360 35,000 19,500 285,000 359,443 40,000 16,a00 402,000 341,905 40,000 12,000 355,000 322,617 40,000 8. 000 - 104,000 303,831 40,000 4,000 1,730,000 1, 252,331 1,465,000 791,165 l 595 000 224 179 Ft??ldgs ra ;s ar s�€db.. .air ;?s, Legal Debt Margin 1s of June 30, 1985, the 7yChoral obligation debt.issued by the City did not exceed its legal debt marg In computed as follow Assessed valuation: Real property - 11,157,210,261 Personal property 31,127,932 Utilities 59,185,524 Monies and credits 28 416 Total valuation .A 81 . 1.: Oebt limit, 5% of total assessed valuation 162,407,607 Debt ep7litable to debt limit ,0 $35 136 Lepel debt margin A,.... a id 1 .7 I CITY OF IOWA CITY. IOWA 1 NOTES TO FINANCIAL STATEMENTS June 30, 1985 _ I Housfnq AulM1orltY Notes The housing authority project notes were issued by the Iowa City {busing _ Authority to the U.S. Department of Housing and Urban Development (HUD) to finance the construction costs of the City's public housing Drajects. The - nates beer 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 to 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 HUB. Note 8. Changan to Incest Fixed Assets ourinq the year ended June 30, 1985, general fixed asset acquisitions and disposals by type and .funding source were as follows: Balance Ac Wsttlons Balance June 30, 1984 and Transfers Disposals June 30, 1985 BY type: Land S 2,941,307 f 18,780 $29.94 f 2,930,583 Buildings and " 1,]2],2fi5 ' I - structures 7,285,118 38,147 other Improvements 328,511 56,122 5,046 319,587 ..,Equipment and vehleps 2,025,130 186,774 70,287 2,181,621 Construction in progress a 12 713 1 211a Il' 42 By funding fourtet General Fund f 3,499,770 $151,168 (/0,628 $ 7,609,910 special Revenue 25,475 1,]97,466 Funds 1,274,787 148,555 86,525 Gifts 86,425 too • - Capital Projects Funds: General obligation.� - , .. 5,244,797 bond proceeds 5,244,797 2 487 Boo other governments 2 487 800 - • --a;' �,a..y. a. 1 CITY IF IOWA CITY, IOWA ,. NOTES TO FINANCIAL STATEWNTS June 30, 1905 During the year ended June 30, 1985, general fixed asset acquisitions and disposals by function were as follows: Changes in General Fixed Assets Ih« A.M. ai WTruillev JoPPilo Nl[tl J«, n 111 1 Te Miry 11 d, .N.,a n. 1x1 14 ,n1 Axinl,altlen, .�3 � / NnRd ,YmbmuM I 1 Ne ex I I N ane 1 men 1e W ra.Mler Int«ual 1 W.ms IL6uf f1,fN 1 m.na bllw Mt«tIM YeJsO• Iln poi«tlM ,• „- 11.10 InIpRtIM LMI<II 'J�'.l.::r.-r�s 4:": TTa'aTt but (eR,,,ll1 InNetlx y 1177 xiaw, b,AdIMnU 1 I,mId1 t n,xY 1 0.x1 i I,Yb114 14114 N1,x1 x.10 1,SN 1«.11 awnllu I,In Llel t,"I "I CNN] 1 }N 111 I irI �M t�yb„Ian.� Sao, NnlR 17, y I,LI Na,n o«dap«t T.UI Nr w LaiMltl tRlnrnti 1 11111119 1 L11 11,111 1 031.10 Aral[d Rolrprt Laappni d«dep«t Lo11,lx .. ILW 21031.10 S,.t, ad plum IN. 1104 1111 nl an �n PIYIn«tom Ity anlrinrt Jyy y Rtm PILI WWAI Iltld "at, 111eman !1!9j!!l Wo 1!!A!!I!!,Yi As of June 30, 1985, the composition of general fixed assets by type. and function was as follows: elrnwilnb blldlax 1 axM men« IMlrat bxlbl{IM NLIn b M1 }Lt[I IIx Ir urea unalne[ ,1 Y `I, P.1117 ad tYr.1v u ) , yu!11,141,111-«.Aaiu.} 1 tp•MIV "mail... 1 1 ]f d]a 1 t 91,x4 i- 1411[+ Mt.0. • • 4+,x0 • • 1 01,111 Y1,lw ln 11,!11 m1.1:9 Iryl«tIM IRIRLIM IMILR 110.01 t=. is ] ta.•1 caladmil rnl«tt" �Lla ern 114.10 It• iol'ifi 146 1hI1111E W11 • I,101 it.ta $1.02 InnbmlM • LIM" 3.416,049 41211.241 rW1t1T1>:•W1T•t }x1M CMLM >da bllNal. 1MIRxn Mr W ataonwltl hdlxxRl b ..[d laid1 Il,11t 1 If,el! IIN Ml / IO.Y 1 1 tell II Cor+ltd d«d,orl I,1n.W Ipnu w 03,00[ n.fax ns•°L �91.t3j onllnxrly �� fel rl1oolat CL.r11i 11 n},tn It 1 a.srylr Iii 1,11)1 j�}L,1,,x1 1 • • l0 W,111 Iat11 1MR11 Pilo A ... tl ilAli911I1 l!11!2L11 I1IIA�! !!IIixI!! !!!!1:! U!I!!!11!! I i lion fund Equipment no In. ' • - ' - - • • - - .. , tanancs fund • • - . Perpetual Care .. .. 11 .. . _ .. . trust fwd 10,411Emplo to Benefits Truil fund US Johnson Count �rl Council • • ' of Gruasnts Trust 2.162 • - Fund Mayor's Youth • • , - • • • _ • • • • .. . . Fund Library foundation - - Fund Total 7•Ta�s 7� ■ 7-7� �1�y-��'v Ty�t-m• i•—•r 77H9-R•t•9 7C -[fa. 1 1 EMU f.,...i7 +..iA B a... X Eno MAW 2..2 Hn[ni ul[77 V.f e' CITY OF IOWA CITY, IOWA .NOTES TO FINANCIAL. STATEMENTS June 30, 1985 Note 9., Interfund Receivables and Payables I .. As of June 30,'1985, interfund receivables and payables were as follows: ' Otho Shared Strut and .' g Revenues Traffic Control Other Special 'teal• C"Itrwtion Construction Auoswals Perking Pollution Control - Water "its I I� D. Tot Gmenl fund 6rante fund fund Fund fund Fund fund Sanitation .Tran•pertatla fund _ fund fund i.. .. BW Fra! .. ..... .,'o '., . general fwd Community ' 1 • • 1 ' . 1 - - t - . t .. s - - E s,4e1 E• - t 719 $4,328 I _:... -.._;..:. Development .. Block Gant - fund 6O•60.662.. ' - Federal Reranw . _ - - _ .. .'., Sharing Fund an.'w Other Shared Rev. 1,]12 .. .. 601 .. 1,]tl and GanttFund Debt Service- • - - 1,924 .. 1,321 _ .. .. i.. FunOa Strnd ut l 109,691 .. .. . - .. _ . 16,291 .. .. - Traffic control Construction Fund 916,162. Spacial Assess- • • .. . . giants fund a?Goo • . •12 . I Puking fund .. .. •22 • • . 401,199. • • - ,.. i Pollution Control _ , • - e Fund war rand Sanitation fwd 1461 9OS - Ial.11i 171 i Horsing fund ,,. . 1,].b. � 1 Housing Authority � .. 6 Ilft�lransporan• 11,161 14,919 411,946 ! i lion fund Equipment no In. ' • - ' - - • • - - .. , tanancs fund • • - . Perpetual Care .. .. 11 .. . _ .. . trust fwd 10,411Emplo to Benefits Truil fund US Johnson Count �rl Council • • ' of Gruasnts Trust 2.162 • - Fund Mayor's Youth • • , - • • • _ • • • • .. . . Fund Library foundation - - Fund Total 7•Ta�s 7� ■ 7-7� �1�y-��'v Ty�t-m• i•—•r 77H9-R•t•9 7C -[fa. 1 1 EMU f.,...i7 +..iA B a... X Eno MAW 2..2 Hn[ni ul[77 Johnson County Council of Governments Trust fund - Total 52,665 • • .,51,027 ]I1 • • • • • - • • • • 3,670 - - - • • - - - • • - • 126,182 • - Development • • Block trent - •16 fund if TWA _ e+r^ Sharing Fund „ • - • • CITY OF IOWA CITY. IOWA N and Grants • - Fund 100 16• Debt Service NOTES TO FINANCIAL STATEMENTS Fund • - 4. Bridge, Street A ' Traffic Control 729 June 30, 1985 221 Fund .. • ' Special Assess- EQUIPMt Central 112 Libraryy •• Pollution Control /9 Maintenance Services Project Eldercraft Perpetual pre Foundation Sanitation Fund 14.094 •• On Tot Fund Fund Gun Fund Shoppe Fund Trust Fwd Fund 136 Neu Tnnsporta- Gua From: tl0n fund 61,061 EAulprnt Main- tsmm� Fund General Fund - 975,676 16,519 1• - 1- - 1• f• ..I ... . Counnity - Irusl fund - ',. Johnson County Council , Johnson County Council of Governments Trust fund - Total 52,665 • • .,51,027 ]I1 • • • • • - • • • • 3,670 - - - • • - - - • • - • 126,182 • - Development • • Block trent - •16 fund if TWA _ '. Federal IIesMee Sharing Fund „ • - • • Other Shared Revenue N and Grants • - Fund 100 16• Debt Service • • Fund • - 4. Bridge, Street A ' Traffic Control 729 Construction 221 Fund .. • ' Special Assess- • • ants fund ... 112 Farling Fund 1,207 •• Pollution Control /9 TW .. IIr Fond ]05]0 •• Sanitation Fund 14.094 •• ' Airport fund 707 •- Housing Authority .. fwd 136 Neu Tnnsporta- .. tl0n fund 61,061 EAulprnt Main- tsmm� Fund �'�1229 Perpetual Cara - Trust Fund • - .FIR Inployyee benefits - Irusl fund - ',. Johnson County Council of CoverMMts Trust ., Pond • ' 01 Mayor's youth Fund • - ` library foundation fwd I Total ww Q Johnson County Council of Governments Trust fund - Total 52,665 • • .,51,027 ]I1 • • • • • - • • • • 3,670 - - - • • - - - • • - • 126,182 • - • • • - - • • • • • 976,182 •16 •77 .168,169 • - - • • • • • 209,B6B N . - - • • • • • • - 3,212 16• • - - • • • - • • 6S1,27S 11 121 8 726 291 172 27,701 729 .. .. 221 ,•:1,263 • ., • • - - - • • • • 525,679 112 • • •• 139,/91 /9 .. .. -. .. .. 127 .. •• -• -- •- •• •• 10,122 •- .- • • .. .. .. 2,617 136 .. . - .. .. .. 117 • .. 17822 �'�1229 �{- 'yam.; ' i..i 2:2: F121 F71( 2 l .FIR IL22 t . CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMEM June 30, 1985 Note 10: Urban Development Actin Grant Ian 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 which was completed in September, 1984. During the first two years of he hotel's operations, interest Is forgiven an the loan and during the third and fourth years, interest at 91 will be accrued and added to the principal balance. Beginning October, 1989, the developer will make equal monthly payments including interest at 81, with final payment due July, 2009 (25 years from tint grant disbursement(. A first mortgage exlits on the hotel prm operty far the conercial development revenue bond financing and the Urban velopment Action Grant loan is secured by a second mortgage. Although the hotel is privately managed, the loan agreement provides for 251 partici- pation in any net cash flow fro 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 Black Grant turd as program income. Note 11. Federal Revenue Sharing Federal revenue sharing monies, when received, are deposited In the Revenue Iberia?Fund as a temporary depositary for the purpose of satisfying the accounting ad' reporting requirements of the federal revenue sharing regula- tions. The City budgets and accounts for the expenditure of federal revenue sharing conies within the appropriate operating fund, as determined by the nature and purpose of each expenditure. As expenditures are made from revenue sharing monles, 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 males transferred from the Federal Revenue Sharing Fund to the various operating funds for the year road June 30, 1985: Continually protection 1139,149 Home and community environment 268,278 Policy and aoinistration 165 295 Total 'S7ia73i Note 12. Contractual ca ibmnts The total outstanding contractual commitments for construction projects is of June 30, 1985, amount to 12.556,967. Nate 13, Cotingent Liabilities The City it named a defendant in a lawsuit seeking damages of 5500,000 for alleged property damages. The City9 counsel is unable to determine an it estimate of the possible loss or range of lass. O I- 01 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATFMENIS June 30, 1985 Various other claims and lawsuits were on file against the City as of June 30, 1985. It is estimated that the potential settlements against the. City, not covered by Insurance, would not materially affect the financial position .of the City. The City hes the authority to levy additional taxes (outside the regular limit( to cover uninsured judgements against the City. The City provides health care coverage for all of its permanent employees. The City reimburses a health insurance provider for actual medical costs incurred plus a processing fee. Permanent City City" approximate omaximum canting nt leavekliability far onoea-vestedn sick leave benefits as of June 30, 1985, is as follows: Governmental fund type T 929,785 Proprietary fund type �,.� 255 24�7 Total i'W•"a°'° Note 14. Industrial Development Revenue Bonds Since 1980, the City has participated in thirty-six issues of Industrial development revenue bands, ranging .from $10,000. to $24,235,000, issued for facilities constructing r City. These bonds operated nota manufacturing or and contingent liabilities of the City. Revenue from lease agreements and property purchased with the band proceeds are pledged for the total payment of principal end interest an the bonds and the bondholders can look only to these sources for repayment. Note 15. Subsaguant Evart Subsequent to June 30, 1985, the City issued $4,700,000 of general obligation bands to finance varuaious capital Improvement projects. The bonds have Intamountstranging from iid50r0 0 rei to 5$475,000, w1 th the final mure aturity due In the year "ding June 30, 1996, yy 5? The The bonds ,Item CInterelso st rates issued ang ng from 8t502rtan10 SU 01 and mato a enue inn vary) g annual amounts ranging from 160,000 to 1415,000, with the final maturity due in the year ending June 30, 2004. I (Phis page has been left blank intentionally.) I r ii d -1 if � F i i y i -1 f � F i i y i T 1 I lamer 1. m ropnry FII 1. H. Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee Pen hK. Hnni David .luFln n Yennne H. He nie fd A W . $teman LAWYERS H.Ro en G. Smile Td L Runsburg .,, Rohn L. Allbee D w L. Y1.6d. - yhn L KnmbnY Dome L H. sl a ini 300 LIBERTY BUILDING, SIXTH AND GRAND of [wool pen F. MCRImk Ehubm H. Lelani Paul i. Mlm L W d G. Und ftnhnh L ffi Kennedy Ric�DES MOINES, IOWA 50309.2484 Sage H. Wniwn Edp, L. Ann %%I d, 1. .n . F d E. glnk Wade R. Hauer III a. (515) 243-7611 Telecopler (515) 243.2149 Rmald L S w Dai. I. H Niece .. [oppxk FSI ubnh A. Nein I . 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 (the "Issuer"), relating to the issuance of Sewer Revenue Bonds by said City, dated August 1, 1986, in the denomination of $5,000 or multiples thereof, in the aggregate amount of $38,950,000. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion as bond counsel. - As to questions of fact material to our opinion, we have�'� relied upon representations of the Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the certified proceedings and other certifications of f.'. public officials furnished to us, without undertaking to verify fl the same by independent investigation. We have not been engaged to or undertaken to 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 first lien on the net revenues of the Municipal Sanitary Sewer Utility pledged by the Resolution for the security of the Bonds. Iowa City, Iowa, City of $38,950,000 Sewer• Revenue Bonds Page Two The lien of the Bonds ranks on a parity as to the pledge 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 are valid and binding special obligations of the Issuer, payable solely from the sources provided therefor in the Resolution.. . 4. The Bonds are not arbitrage Bonds. Under existing law, specifically excluding any pending legislation which may have a retroactive effective date prior to the date hereof, interest paid to the holder of the Bonds is exempt from federal income taxes. It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, .,reorganization, moratorium and other similar laws affecting'creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, T WORKSHEET CITY OF IOWA CITY, IOWA !30,950,000 SEWER REVENUE BONDS DATED 8)1/86 DUE START 7/1/89 YEAR AMOUNT RUN BOND YEARS CUMULATIVE COUPON YEAR l 01 -Jul -89 01-Ju1-90 $650,000 1625,000 2,92 1,895.033 -1,195,835 ------ 01•Jul-04 01 -Jul -91 $725,000 3.92 4.92 2,447.917 3,564.583 4,313750 7 908.333 --_�.'. _— 01 -Jul -90 --"-' =01 -Jul -92 01 -Jul -93 $775 !100 5.92 4,585,417 ' 12,493,750 01 -Jul -91 d ------ 01 -Jul -92 01 -Jul -74 $825,000 1900,000 6.92 7.92 5,706.250 7,125.000 18,200.000 25,325,000 ---�_ -__ OI -Jul -93 01411-95 !950,000 8.92 8,470.833 33,795.833 OI -Jul -93 01 -Jul -96 01 -Jul -97 $1,000,000 !1,100,000 9.92 9,916.667 43,712,500 ---- 01 -Jul -96 i' 0I-Jol-98 11,175,000 10.92 11.92 12,009.337 14,002.083 55]20,833 69,722,917 _ ----- 01-97F ------- Ol-Jul-99 $1,250,000 12.92 16,145.833 95,860,750 01 -Jul -99 -----__ 01 -Jul -2000 01 -Jul -2001 $1,350,000 $1450 13.92 18,787.500 .104,656,250 _ 014-1-99 """""—� 01-7-I-2000 i 01 -Jul -2002 -01-JOI-2003 ,000 11,575,000 14.92 15.92 21,629,167 25,069.750 126,285,417 151,351,167 ------- 01-711•2001 ----- �- 01 -Jul -2001 11,700,000 11,025,000 16,92 28,751.333 , 180,112.500 01-7-1-2002 - 01 -Jul -2003 01 -Jul -2003 $1,975,000 17.92 18.92 32,697.917 37,360.417 212,810,417 250,170,033 ------- ---- 01 -Jul -2004 � -2005 01 -Jul -2006 $2,125,000 19,92 42,322.917 292,493.750 ------ 01 -Jul „ 01 -Jul -2006 01-7-1-2007 01 -Jul -2008 l2,300,000 $2,500,000 20,92 21.92 48,108.333 340,602,083 -----_ 01 -Jul -2007 01-Ju1-2009 12,700,000 12,92 54,791,667 .71,875,000 395,393.750 491,268.)50 _•_� — 01 -Jul -2008 01 -Jul -2010 01 -Jul -2011 $2,925,000 131150,000 23.92 69,956.250 527 225,000 '- 01-7-1-1009 ----_- 01 -Jul -2010 01-7-1-2011 !3,100,000 24.92 25,92 70,407.500 88,116.667 605712.500 _ 693,824,167 -------- -'--- 01 -Jul -2011 01 -Jul -2012 $38,950,000 693,829,167 AVERAGE NAIURITY • 17.81 t PRICE Not Int thin $39,171,000. INTEREST RATES Ono rete per uturity In suilipin of UJB or1120 Of I2, Rites Burt be bid In Iscendln9 order. CALL FEATURE Bands ssturin9 after 7/1195 sn cdlBble at the ddn end prices sham in the Notice of Bde, 1364 iffir BID FORM Members of the City Council Iowa City, Iowa Members of the City Council: Sale Date: July 29, 1986 Dated: August 1, 1986 Due: July 1, 1989/2012 For all or none of the principal amount of $38,950,000 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 $38,171,000) plus accrued interest on the total principal amount of $38,950,000 to date of delivery, provided the Bonds bear interest at the following rates: We enclose, herewith, a certified or cashier's check in the amount of $779,000 payable to the City. Explanatory Note: According to our computation, this bid involves the following: 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 29th day of July, 1986. city of Iowa City city of Iowa City /3x46 Interest Interest Interest Year Amount Rate Year Amount Rate Year Amount Rate 1989 $ 650,000 S 1997 $1,100,000 S 2005 $1,975,000 S 1990 625,000 S 1998 1,175,000 ; 2006 2,125,000 Z 1991 725,000 S 1999 1,250,000 Z 2007 2,300,000 S 1992 775,000 Z 2000 1,350,000 S 2008 2,500,000 Z 1993 825,000 Z 2001 1,450,000 Z 2009 2,700,000 Z 1994 900,000 Z 2002 1,575,000 Z 2010 2,925,000 Z 1995 950,000 Z 2003 1,700,000 Z 2011 3,150,000 Z 1996 1,000,000 Z 2004 1,825,000 Z 2012 3,400,000 Z It is a condition of this bid that the bidder may elect to terminate its liability hereunder in the event that the Tax Reform Act of 1985, H.R. 3838, is enacted in form applicable to the above Bonds prior to the delivery of the Bonds to the bidder. We enclose, herewith, a certified or cashier's check in the amount of $779,000 payable to the City. Explanatory Note: According to our computation, this bid involves the following: 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 29th day of July, 1986. city of Iowa City city of Iowa City /3x46