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HomeMy WebLinkAbout1985-09-24 Info PacketCITY OF IOWA CITY CIVIC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5CN September 20, 1955 President Ronald Reagan The White House Washington, D.C. 20500 Dear Mr. President: I wish to register my agreement with New York City Mayor Edward Koch's letter to you calling for strict and effective sanctions against the government of South Africa as a means of protesting the abhorrent system of racial segregation in that country. As government resistance to its Black citizens' demands for civil rights grows daily in the form of mass arrests, police violence and the suspension of due process, the situation cries out for decisive action by all people and nations. C Our country's policy on South Africa sets a major contradiction before the American people, who are being asked at the same time to support sanctions against Latin American nations because of a concern for the rights of people in those F countries. Our failure to act quickly and decisively against aparthied must be 4' particularly painful for Black Americans, who had to wage their own struggle for t civil rights in this country. They and all citizens expect our government to support the Blacks of South Africa in their similar struggle for basic human s rights and human dignity. !I The administration has begun to move towards sanctions against South Africa and I applaud your actions, Mr. President. But you must do more. I urge you to immedi- ately inform the government of South Africa that unless it brings to an end the system of aparthied and grants full civil rights to its Black citizens, the United Stated will sever all diplomatic ties and end all commercial relationships, and that we will ask other members of the world community'to do the same. For all of our country's expressions of concern for human rights, through this and the last administration, the devastation of South Africa is perhaps the clearest example of a situation that demands our most aggressive stance. You are in a position to make a difference for the millions of South Africans who are strug- gling for freedom, Mr. President. We urge that the United States, through your leadership, take appropriate action. Sincerely yours, Q /Mayor n McDonald pk/sp X/Z City of Iowa City MEMORANDUM Date: September 20, 1985 To: City Council From: Neal G. Berlin, City Manager "nom Rosemary Vitosh, Director of Finance Re: Financial Position of City The purpose of this memorandum is to provide you with an overview of the City's financial position before the City Council considers the five year financial projections and specific reports on additional funding sources, personnel and transit. These reports, which will be presented to the City Council in the next 45 days, will .provide information necessary for goal setting and the FY87 budget discussions. Several situations have produced funding shortfalls for the City this past year. In addition, there are circumstances in FY86 and FY87 which further could adversely affect the City's financial situation. For example, both the expected discontinuance of Federal Revenue Sharing and the uncertainty of the State's economic condition are of concern. The City Manager and the Finance Director always advocate a conservative position on financial matters of this nature. We believe that this information and circumstances warrant prudent actions by the staff at this time together with continuing oversight to ensure a stabilized and improving financial position. In addition, this information must be used by the City Council in the forthcoming budget discussions to ensure a sound financial base for the City. Three situations have created funding shortfalls for the City during this fiscal year. First, the City'sliability and property insurance premiums tripled this year. This resulted in additional unbudgeted costs of $504,000. This is a national problem and costs for many cities have even exceeded Iowa City's increases. Second, additional costs will occur as a result of the City's compliance with the Fair Labor Standards Act. The current fiscal year cost estimate is $20,000. As a result of extensive staff work by Human Relations, alternative courses of action have been developed which potentially have reduced this cost significantly from original estimates. The third area of funding difficulty is Transit. Transit operations ended FY85 with a deficit balance of $118,338 as a result of lower than pro- jected fare revenue due to decreased ridership and reduced Federal transit assistance. In addition to the FY85 deficit, a $390,344 deficit from transit operations is projected for FY86 because fare revenues are lower than originally projected (again resulting from the recent decrease in ridership) and bus maintenance costs have increased. In the last 18 months, three additional positions have been added in the bus maintenance area and an inventory of parts for the new Saab buses was established 1813 PAGE 2 established resulting in charges to Transit from the Equipment Division which were not sufficient in FY85 to cover all actual costs. Therefore, chargebacks in FY86 will need to make up for the shortfall in last year's chargebacks in addition to paying the higher maintenance costs anticipated during the current year. The total projected funding shortfall for Transit operations will be $508,682 by the end of the current fiscal year. Exhibit A shows the current projected unreserved General Fund balance to be $847,527 before taking into consideration the funding shortfalls discussed above. The FY86 Budget estimated an unreserved fund balance of $828,971. You will note that the current projection is very close to our original estimate. In previous years the City has attempted to maintain an ending fund balance of approximately $700,000. However, the higher fund balance was budgeted in FY86 for the General Fund in anticipation of a tighter fiscal position. Exhibit B shows the current unfunded casts and available funding currently identified for these costs including a reduction of $347,527 in the fund balance to assist in meeting current unfunded costs. Even with the reduction of the General Fund balance to $500,000, sufficient funding is not available to meet all of the costs. Therefore, in addition, it is recommended that the City consider temporarily deferring expenditures from the Parkland Acquisition Reserve until January 1, 1987. The current balance in that account is $301,232. This is lower than the balance listed on Exhibit A due to the fact that Ryerson Wood's parkland was purchased in July 1985. This time period will be used to increase the General Fund balance. This is only a temporary solution to provide cashflow as needed by the General Fund. The Parkland Acquisition Reserve will remain intact and available for future land purchase. The unallocated road use tax monies and Federal Revenue Sharing monies result primarily from FY85 actual revenues being higher than original projections. Exhibits C and D show the financial status of those funds. It should be noted that $500,000 of Federal Revenue Sharing monies have been reserved for remodeling costs for the current Civic Center building in conjunction with the Administrative Office Building Project. The final item listed under available funding on Exhibit B is the variance between the actual bids and the budget amount for the annual asphalt resurfacing project. Rather than expand the project to add additional streets, the variance will be used to fund a portion of the unfunded costs. Exhibit E shows the financial status for Transit Operations, while Exhibit F shows the status of the Transit Replacement fund. Although the City has a bus grant pending, there are no funds available for bus acquisitions or remanufacturings. The previous fund balance in the reserve was used to fund the local match for the new Transit Facility. Since that time, the City has not been able to set aside funding for future bus acquisitions due to decreased Federal and State transit assistance and decreased fare revenue. It is possible that the State will be able to loan the City sufficient funds, without interest, to enable the city to purchase new buses if a grant is approved. However, this is only a temporary solution and still will require a long-term viable financial plan to be adopted for transit. PAGE 3 In order to cover the projected funding shortfalls, it will be necessary to consider other revenue sources and potential cuts in expenditures. In the near future, a fee study will be sent to the City Council which will present many alternatives for increasing revenues. Also a transit study is in progress which is reviewing alternative levels of service. This study will allow the Council to review potential cost-cutting measures in transit. The City Manager and the Finance Director also will be evaluat- ing other cost reduction alternatives. Other pending changes will adversely affect the City's financial position. The Governor has announced an across-the-board budget cut. This four percent cut may result in lost revenues for the City of Iowa City of approximately $32,000. In addition, proposed Federal legislation would require that all new i employees hired by the City after January 1, 1986, (including police and fire employees), be included in the social security program. The City currently does not pay into social security for its police and fire employees who are covered by the Police and Fire Retirement System. K Proposed legislation also includes the requirement that all employees be covered by at least the Medicare portion of social security. This would S necessitate paying into this program for all police and fire employees. This proposed legislation will cost the City in excess of $50,000 annu- ally. In reviewing the detailed reports which will be presented to you in the E weeks ahead and in budget discussions, the City Council will need to establish priorities in order to solve these current funding issues. This includes the level of funding to be provided from property taxes for the t Transit System not only for operating costs but also for capital costs for j bus replacement. Alternatives will need to be reviewed for property and liability insurance including the consideration of self-insurance. The lease of office space has increased City costs and these charges will continue with leased space or the projected building expansion. The City Manager and the Finance Director will work with the City Council in establishing policies which ensure that the City will maintain a stable t financial position and continue to provide the best services possible Vwithin the constraints of the financial resources available. bdw/sp /8�3 EXHIBIT A i GENERAL FUND BALANCE FY86 06-30-85 FUND BALANCE $ 1,912,589 Y LESS RESERVE BALANCES: F Recreation Facility b 36,635 Parkland Acquisition 406,276 Escrow and Deposits 34,000 Broadband Telecommunications (BBT) 47,382 BBT Equipment Replacement' 6,500 Library Equipment Replacement • 5,539 536,332 I $ 1,376,257 LESS: Encumbrances $ 117,541 Carryovers 181,484 299.025 I $ 1,077,232 ADD: Transfer from Debt Service for Schmidt Judgement $ 109,891 Funding of Recreation Deficit 34,013 143,904 b, 1,221,136 FUND BALANCE WAS TO FUND EXCESS OF FY86 BUDGETED EXPENDITURES OVER BUDGETED RECEIPTS: i Expenditure Budget $ 13,587,157 I Receipt Budget 13,213,548 373,609 i UNRESERVED FUND BALANCE 847 527 ANALYSIS OF FUNDING SHORTFALL FY86 UNFUNDED COSTS GENERAL FUND: Insurance Premiums FLSA TRANSIT: Operating Deficit - FY85 Operating Deficit - FY86 FUNDING SHORTFALL AVAILABLE FUNDING GENERAL FUND: Unreserved Fund Balance Reduce to $500,000 UNALLOCATED ROAD USE TAX UNALLOCATED FEDERAL REVENUE SHARING STREETS -ASPHALT RESURFACING UNDER BUDGET AVAILABLE FUNDING EXHIBIT B $ 504,422 20,000 $ 524,422 $ 118,338 390,344 508,682 $ 1,033,]04 $ 847,527 500,000 $ 347,527 53,605 85,204 60,000 $ 546,336 i i I I I i EXHIBIT C CITY OF IOWA CITY ROAD USE TAX -FY84- -------- FY85-------- --FY86-- ACTUAL ESTIMATE ACTUAL ESTIMATE $ $ $ $ .. 4 F BEGINNING BALANCE 200,471 293,143 293,143 146,514 r }; RECEIPTS: Road Use Tax 1,573,456 1,641,510 1,675,447 1,641,510 Interest Income 15,640 5,000 . 24,667 5,000 TOTAL RECEIPTS 1,589,096 1,646,510 1,700,114 1,646,510 w EXPENDITURES: Operating Expenditures: Traffic Engineering 372,074 515,242 515,242 508,190 Street System Maintenance 1,124,350 1,331,502 1,331,501 1,208,229 TOTAL OPERATING 1496,424 1,846,744 1,846,743 1,716,419 Capital Improvements: Bradford/1st Avenue Signals -- -- -- 19,000 Foster Road -Extra Width Paving -- - -- 4,000 TOTAL CAPITAL IMPROVEMENTS -- -- - 23,000 TOTAL EXPEN- DITURES 1,496,424 1,846,744 1,846,743 1,739,419 ENDING BALANCE 293,143 92,909 146,514 53,605 I I i EXHIBIT 0 CITY OF IOWA CITY FEDERAL REVENUE SHARING i -FY84- -------- FY85-------- --FY86-- ACTUAL ESTIMATE ACTUAL ESTIMATE BEGINNING BALANCE 81,315 243,241 243,240 288,338 RECEIPTS: Federal Revenue Sharing 583,142 572,267 572,267 572,267 Interest Income 15,926 16,000 31,613 30,000 TOTAL RECEIPTS 599,068 588,267 603,880 602,267 EXPENDITURES: I Operating Expenditures: j Audit Expenses 443 500 -- 500 Transfers: Aid to Agencies 154,830 166,943 165,295 173,891 Micro -Computers Purchase -- 50,000 -- 50,000 Patrol Vehicles & Equipment -- 158,100 125,211 13,938 Transit Subsidy 281,869 240,451 240,451 67,072 TOTAL OPERATING 437,142 615,994 530,957 305,401 Capital Improvements: Kirkwood Circle Improvements -- 27,600 27,825 -- Shamrock/Arbor Storm Sewer -- 208,000 -- -- Undesignated Projects -- - 500,000 TOTAL CAPITAL IMPROVEMENTS - 235,600 27,825 500,000 TOTAL EXPEN- DITURES 437,142 851,594 558,782 805,401 ENDING BALANCE 243,241 (20,086) 288,338 85,204 i i EXHIBIT E CITY OF IOWA CITY TRANSIT OPERATIONS 9 -FY84- -------- FY85-------- --FY86-- ACTUAL ESTIMATE ACTUAL ESTIMATE BEGINNING BALANCE 24,798 90,199 90,199 (118,338 RECEIPTS: Charges for Services 785,341 797,350 729,295 835,281 Local Governmental Agencies 15,327' •30,500 28,688. 27,876 State Grants 229,320 127,330 127,330 131,099 Federal Grants 187,569 234,597 111,406 123,191 Interest Income 13,138 2,000 13,491 -- Federal Revenue Sharing 281,869 240,451 240,451 67,072 Property Tax 293,513 354,653 355,697 446,573 Transit Levy 132,021 159,991 158,562 345,354 Miscellaneous 3,602 1,000 212) 1,000 TOTAL RECEIPTS 1,941,700 1,947,872 1,764,708 . 1,977,446 EXPENDITURES: Personal Services 1,024,365 1,096,045 1,105,013 1,154,640 Commodities 7,936 8,983 22,790• 17,080 Services and Charges 704,429 799,183 714,462 1,144,270 Capital Outlay 278 10,145 6,625 1,800 Transfers 139,291 123,715 124,355 50,000 TOTAL EXPEN- DITURES 11876,299 2,038,071 1,973,245 2,367,790 ENDING BALANCE 90,199--(118 338) 508 682) 9 CITY OF IOWA CITY TRANSIT REPLACEMENT RESERVE BEGINNING BALANCE RECEIPTS: Interest Income Transfer from Operations TOTAL RECEIPTS TRANSFERS TOTAL EXPEN- DITURES ENDING BALANCE EXHIBIT F -FY84- --FY85-- -FY85- -FY86- ACTUAL ESTIMATE ACTUAL BUDGET 365,138 187,328 187,328 75,921 13,681 5,000 2,908 5,000 139,291 123,715 , 123,715 50,000 152,972 128,7T5 126,623 55,000 330,782 269,222 238,030 17,299 330,782 269,222 238,030 17,299 187,328 46,821 75,921 113,622 I 6 r i 1 1 PRESALE ANALYSIS $3,855,000 PARKING SYSTEM REVENUE BONDS i CITY OF IOWA CITY, IOWA I JOHNSON COUNTY, IOWA j Proposed Sale Date: October 16, 1985 1 i i I i 1 I • y IA27.85B/1 �g/3 i EVENSEN DODGE, INC. ,. .f.,: ICU\..,.\\:• September 19, 1985 Ms. Rosemary Vitosh Finance Director City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Dear Ms. Vitosh: Attached is our Presale Analysis prepared in connection with the City's proposed issuance of $3,855,000 of Parking System Revenue Bonds on October 16, 1985. The Presale Analysis summarizes the purpose of the Bond issue, describes how the Bond issue has been structured, and discusses other aspects related to the marketing of the Bonds. Reference should also be made to our Presale Analysis dated September 3, 1985 concerning the City's issuance of $4,700,000 of General Obligation Bonds to be sold the same day. We look forward to a successful offering. EVENSEN DODGE, INC. Wayne S. Burggraaff / J Senior Vice President row i J60B1DS8Tyy �2�ti nneapolis Minnesota 55402 61:'338-3535 800,328•d200 800;3:8.8100 Minnesota - ]:AL tY- TABLE OF CONTENTS Page SUMMARY OF RECOMMENDATIONS . . . . . . . . . . . . . . . . . 1 PURPOSEOF THE SALE . . . . . . . . . . . . . . . . . . . . 1 STRUCTURING OF THE BOND ISSUE . . . . . . . . . . . . . . . 2 RATING. . . . . . . . . . . . . . . . . . . . . . . . . . . 2 REGISTRATION. . . . . . . . . . . . . . . . . . . . . . . . 3 GENERAL MARKET CONDITIONS . . . . . . . . . . . . . . 3 SALESCHEDULE . . . . . . . . . . . . . . . . . . . . . . . 4 EXHIBIT A --Debt Redemption Schedule and Savings Report EXHIBIT B --The Bond Buyer's Index Graph IA27.85B/3 PRESALE ANALYSIS $3,855,000 PARKING SYSTEM REVENUE BONDS CITY OF IOWA CITY, IOWA j JOHNSON COUNTY, IOWA Proposed Sale Date: October 16, 1985 d i. h r SUMMARY OF RECOMMENDATIONS ! i. Recommendations and arrangements for the Bond sale have been developed by Evensen Dodge, Inc., after consultation with City Finance Director, Rosemary Vitosh, concerning the City's need for refunding the Series 1978 Parking Facilities Revenue Bonds. Mr. k Ken Haynie, Bond Counsel to the City of Iowa City, was consulted on legal matters and procedures relating to the proposed sale. The major recommendation contained herein is that the City issue j $3,855,000 of Parking System Revenue Bonds to be sold on October 16, 1985, for the purpose described below. l PURPOSE OF THE SALE Proceeds of this Bond sale will provide the City with the funds 1 to defease the City's $5,200,000 Parking Facilities Revenue j Bonds, Series 1978 (the refunded bonds). The outstanding principal balance on the refunded bonds is $4,730,000. The proceeds of the bonds together with approximately $150,000 of cash provided by the City will be used to purchase securities to ' fund an escrow account which will defease the old bonds. The primary purpose of the refunding is to remove 'a restrictive ( covenant in the bond resolution of the refunded bonds which requires that the net revenues of the City's parking facilities be at least 150% of the annual debt service requirements on the bonds. The resolution for the refunding bonds will require only a 1258 coverage requirement. Exhibit A is a debt service schedule and savings report on the bond issue which compares the projected debt service requirements on the refunding bonds to the debt service on the refunded bonds. It shows that under the assumptions used the City will achieve net savings of $60,186. i Actual interest rates on the issue may cause the savings to diminish or become negative; however, the primary purpose of the ! refunding is to remove the restrictive covenant so any savings would be a bonus. -1- IA27.85B/4 i STRUCTURING OF THE BOND ISSUE Several alternatives were considered and discussed with the City finance director before reaching a final decision on the best debt structure for this issue. The structure finally selected provides for repayment of the debt over an eighteen year period, as shown in Exhibit A. This term matches the maturity schedule of the refunded bonds. The structure provides for uniform savlings when compared to the refunded bonds. The resolution will provide that the City may call or redeem bonds maturing beginning in 1996 and extending to the end of the issue. This allows the City to call 64.39 or $2,480,000 of the $3,875,000 of principal if interest rates in the future are lower, and the City can save interest cost by replacing the current debt with lower cost debt. Also, investment bankers and underwriters who bid on the bond issue will be required to submit their bid with coupons in ascending' order to minimize debt service in the early years and optimize the potential use of the call feature. The bonds will be offered for sale at a discount of approximately 1.758 by provision of an underwriters discount. Iowa State statutes permit a municipality to offer an underwriter's discount in an amount not exceeding 26 of the bond issue size. The amount of discount offered relates to the term and difficulty anticipated in selling the issue. The discount permits the successful bidder (underwriting syndicate) to purchase the bonds with specified coupons and to reoffer the bonds at par. If no discount were allowed, the successful bidder would have to bid a higher coupon rate on the bonds to obtain their commission by selling the bonds at a premium. Experience has shown that use of the discount helps make an issue more attractive to purchasers. RATING The City of Iowa City currently has an "Aaa" general obligation rating from Moody's Investors Service, Inc., the highest rating given by Moody's. The rating on the refunded bonds is "A". The rating on the refunded bonds is lower than the City's G.O. rating because the security for the bonds is the revenue of the City's parking facility rather than its tax base. We recommend that the City also apply for a rating on the refunding bonds. While we can make no guarantee as to the quality of the rating the City will receive, it is essential that it be requested. -2- IA27.85B/5 / 8Nf REGISTRATION This Bond issue and the General Obligation issue to be sold the same day will be the first in which the City has offered Bonds in fully registered form. The City evaluated proposals from qualified banks and trust companies in Iowa and Minnesota before istrar on the G.O. issue and this deciding to act as its own reg issue. GENERAL MARKET CONDITIONS .A graph dated September 12, 1985, showing the movement of The Bond Buffer's Index (BBI) over the last two years is included with tics analysis and identified as Exhibit B. it demonstrates general trends in the tax-exempt market which has been quite strong during the summer, although rates have risen somewhat es. Revenu are higher TheBBI G.O. sures ratesGbecausebond of tthe lesser esecurity bond rates revenue bonds. If this issue were to be sold today, we believe that it would receive a net interest rate in the range of 9.506 to 10.008. ket actuals r ten of ucertainties n the will be when the cannot Bondse the of are sold on October 16. IA27.85B/6 =3- ---.,r-.... Tentative Bond Sale Schedule Iowa City Iowa September 11-23, 1985 Evensen Dodge will analyze and prepare disclosure information required for a Moody's rating and an Official Statement. September 20, 1985 Presale Analysis prepared by Evensen Dodge and submitted to City by this date. September 23, 1985 City Council review of Presale Analysis and debt issuance proposals. September 24, 1985 City Council consideration and action on resolution authorizing bond sale. September 27, 1985 Final draft of Official Statement will be submitted to the printer. October 1, 1985 Official publication of Notice of Bond Sale October 1, 1985 Official Statements will be mailed to underwriters and other interested parties throughout the country. October 8, 1985 Official publication of Notice of Bond Sale. October 8-15, 1985 Potential bidders contacted, questions from underwriters and analysts concerning proposed sale answered. ,i October 16, 1985 Bond sale i October 17 November 8, 1985 Work with Bond Counsel on details concerning arrangements for closing and delivery. November 11, 1985 Approximate date for closing and delivery. 1 I I i IA27.85B/7 -q IA27.85B/8 EXHIBIT A Debt Redemption Schedule and Savings Report C:'Y :F ::MA C:"'' cq,.cgEEn ;Em;D.�; ( iAS5UnINC 00 CILLI SAVINGS REPORT l .............. - - - - - - - - PROPOSED DEBT SERVICE - - - - - - - - PRIOR CUMULATIVE DATE PRINCIPAL COUPON INTEREST � TOTAL DIS SAVING5 SAVINGS 7/ 1186 70,000.00 6.500000 218,566.38 288,866.88 447,765.00 160,373.13 10,8?3.13 ` 11 1187 172,043.73 • 7/ 1187 105,000.00 7.000000 172,743.75 449,007.54 449,765.04 077.56 11,775.63 11 1188 168,366.75 7/ 1188 110,000.00 T.50400D 168,368.75 446,737.50 449,465.00 2,727.50 14,503.13 Ll 1189 164,243.75 • 7/ 1189 115,000.00 7.750000 164,243.75 443,497.50 440,265.00 4,777.50 19,200.63 ' I/ 1190 159,107.30 7/ 1190 125,000.00 8.0000DO 159,787.50 444,575.00 443,065.04 3,490.00 22,774.63 • 1/ 1191 134,707.50 7/ 1191 140,000.00 0.200D00 154,707.54 449,513.40 452,265.00 2,690.00 25,460.63 �• 111/92 149,04L50 ' 71 1192 155,000.00 0.300D00 149,047.50 453,095.40 455,565.00 2,470.00 27,930.63 1/ 1193 142,615.00 7/ 1193 170,000.00 8.4DOD00 142,615.00 455,230.DO 457,440.00 2,210.00 30,140.63 11 1194 135,475.00 7/ 1194 185,000.00 8.500000 135,475.00 455,950.06 456,377,50 2,427.30 32,568.13 1/ 1195 127,612.50 7/ 1195 200,000.00 6.700000 127,612.54 455,225.00 458,377.50 3,152.50 35,720.63 11 1196 118,912.50 7/ 1196 220,000.00 8.800400 119,912.50 451,025.00 461,002.50 3,977.50 39,698.13 • 1/ 1197 109,232.:0 7/ 1197 235,0DO.00 3.900000 109,232.50 453,465.00 458,927.50 5,462.50 45,160.63 I/ 1198 98,775.00• • 7/ 1199 260,000.00 9.204000 98,775.00 457,550.60 460,077.50 2,527.50 47,688.13 1/ 1199 06,815.00 71 1192 290,000.00 9.4D0000 86,815.00 463,630.00 464,927.50 1,297.54 48,905.63 ' 11 11 0 73,105.00 11 11 0 320,000.00 9.600040 73,185.00 466,370.00 467,432.50 1,112.50 50,098.13 1/ 1/ 1 57,825.00 71 1/ I 350,000.00 9.DDOODO 57,823.00 465,650.00 468,362.50 2,712.50 52,810.63 1/ 1/ 2 40,673.00 ' 71 11 2 330,000.00 10.000000 40,675.00 461,350.D4 467,375.04 6,025.00 58,835.63 1/ 1/ 3 21,675,00 71 11 3 425,000.00 10.200000 21,675.00 468,350.00 469,700.00 1,350.00 60,185.63 3,855, 000.00 4, 181,419 30 3,036,417.38 8,246,203.70 yd0,IB3.63 ACCRUED ' 3,855,000.00 4,181,019.38 0,436,419.30 3,246,205.00 60,105.63 ............. .............. ............................ ...... f....... B�rJ CITY ( IASSUCPIG <0 CALLO SPUIHOS nEPCRT r DATED 11/15185 VITH DELIVERY OF 11/15105 BOND YEARS 44,400.003 AVERAGE COUPON 9.417 C AVERAGE LIFE 11.110 M I C 9.568635 1 USING 98.2500000 N 0 T E : CUMULATIVE SAVINGS ARE NET OF 150,000.00 NET PAESEHT VALUE SAVINGS AT: 9.5000000000 S EQUALS PREPARED BY EVENSEN DODGE, INC. i RUNOATE: 09-19-1983 RUNTIME: 16:06:28 22,049.94 i i 7-y IA27.95B/9 EXHIBIT B Bond Buyer's Index Graph I BOND BUYERS INDEX (1982-85) I PREPARED BY E/ENSEN DODGE 13.0% 12.5%- 12.0% 2.5%- 12.0% - 1 1.5% September 12, 1985 e 11.0% o 10.5%- 10.0% 9.5% i I 9.0% tk 8.57. umnWmmmmmrnminrmmMIMIMMMmrrm MUMTF rrrmnmrmrml j 7/82 1/83 7/83 1/84 7/84 1/85 7/85 1/86 Month 20 Year G.O. Indox This Week 9.26 \ Last Week 9.07 0p i tic I t City of Iowa City MEMORANDUM DATE: September 20, 1985 TO: City Council /� FROM: City Manager,-- ✓C� RE: Alley behind Press -Citizen Building A letter from J. C. Hickman was furnished to the City Council on the agenda of August 27, 1985. This letter concerned the deterioration of the alley behind the Press -Citizen Building. As you will recall, the reconstruction of this alley was delayed because it was thought - that utility services would be undergrounded. The alley now has deter- iorated to such an extent that reconstruction is necessary. The cost for total reconstruction of the alley is estimated to be $23,292. The attached page shows the amounts which would be assessed for this project. The staff will need direction from the Council whether or not to include the project in the C.I.P. or take other action. In addition, the Council will wish to provide guidance relating to method of funding and timing of construction. !0 1 , _ 446, WASHINGTON STREET ` � I 80 51 75 60 120 80 Edwin & Helen I Press Ci izen Co., Inc. Southgate O'Brien Masonic Temple Trinity Development Co., Cont. to: I $ 3,639.40 Inc. Robert Wallace $ 5,82 .84 Fox I ti $ 3,093.53 i $4,913.05 80 $ 3,639.40 COLLEGE STREET TOTAL CONSTRUCTION COST: $ 23,292.00 M.S.D.H. I Iowa City Association Masonic Temple Trinity �hurch $ 2,183.78 $ 3,639.40 c $ 5,82 .84 60 20 80 80 s0 COLLEGE STREET TOTAL CONSTRUCTION COST: $ 23,292.00 I City of Iowa City MEMORANDUM Date: September 16, 1985 To: Charles Schmadeke, Director of Public Works From: James Brachtel, Traffic Engineer,95 Re: Fol 1owup Studies for Additional Traffic Control at First Ave/Rochester Ave On September 12, 1985, the Traffic Engineering Division performed followup traffic studies at the intersection of First Avenue and Rochester Avenue to supplement traffic counts that were taken in July 1985 at this inter- section. Based upon the results of these traffic studies and other accident investigations, additional traffic control is not warranted for this intersection at this time. Accident experience, traffic volumes and peak hour delay considerations were all measured and investigated. These factors are addressed in the Manual on Uniform Traffic Control Devices (MUTCD) and appropriate minimum levels are identified by the MUTCO. None of these minimum warrants were met in considering either additional stop sign control or signalization. Should you require additional information or have additional questions, please don't hesitate to contact me. bcl M City of Iowa City MEMORANDUM Date: September 16, 1985 To: Charles Schmadeke, Director of Public Works From: James Brachtel, Traffic Engineer -:5w Re: Traffic Signalization at Dodge Street/Church Street Recently the City Council has inquired into the status of traffic signali- zation at Church and Dodge Street. The most recent investigation of need for signalization at the intersection was in the fall of 1919. In light of the Council's renewed interest in the necessity for signalization at Dodge Street/Church Street a traffic count will be scheduled for the intersection on October 8, 1985. This data will be analyzed and the recommendation will be forwarded to Council shortly thereafter. Should you have questions or require additional information prior to October 8, please do not hesitate to contact me. tpl/13 1917 City of Iowa City MEMORANDUM OATI, September 19, 1985 TO: Iowa City City Council FWM; City Clerk RIs Beer/Liquor License/Conditional Approval FOR YOUR INFORMATION -- Conditional approval was given at the 6/4/85 Council meeting to Sinclair Service Station & Convenience Store, 731 Riverside Drive for Sunday Sales/Beer Permit. They have submitted, after the 90 -day period, the required information which allows them to retain their license. BECEIVEO,UG 161965 TOWNSHIP OF TONGAAT IMGcu Wnoe NO. 11 OF de INT NM. IMI All Comeepondence to P 0. so. 70 M addrnMG to: TONGAAT THE TOWN CLERk 4400 PH0NE10=21155,9 NATAL Ooh Ret. GD .W. Your Ret: The Mayor Iowa City Mall IOWA 52240 U 5 A 9 August 1985 Dear Mayor, The writers of this letter are the councillors of the Tom Board of Tongest in South Africa situated some thirty miles north of the port of Durban. This Town Board is the local govermeent authority that governs a town which was esUblished in 1854 end consists of approxiestely 55 000 people. The ethic composition of Our town reflects the diversity of our ancestors who came from all parte of the world much like your own forefathers and we refer to our- selves as South Africans. We personally are of di�rerent ethnic backgrounds, different religions and we are drawn from different walks of life, but we work together In harmony and are united in one purpose which Is to serve the people of this town to the best of our ability. We must assure you that we are totally opposed to all forms of prejudice and discrimination which have been practised ' In this country in the past and the word APARTHEID is one Far want to forget. But in recent times war who live here have witnessed s much more enlightened approach by the Government of Mr. P.Y. Botha to South Africa's unique problems. We don't agree with everything ow GoverTtmenc does but who does? ' The purpose of this letter is to tell you of our concern over what wa eta told is happening in your country and which we find hard to believe. From media reports it appears that a group of influential American, citizens ve encouraging divestment from and disinvestment in South Africa without any consideration of the consequences to those very people they believe they are trying to help. The vast majority of the Blacks in this country and in the neighbowing territories of Swaziland. Botswana and , Moeambique have, through their respected and true leaders, expressed their fears of disinvestment because they rallies that such a move would only result in many of them being deprived of work. Is it fair to deprive a man of work and make him and his folly / ...... Pegs Two twily Buffer because of some noble idea that may or may not work to change a political system that fa already shoring algnt of change? We believe it IN not fair and we appeal to you to we what- ever influence you have to impreas upon those who are supporting the disinvestment campaign to examine their consciences and stop what could lead to unnecessary suffering amongst the South African. they protest to be helping but who w represent. As You and your colleagues represent the people of your tom, which we believe is of similar size to Tongaat, we look to you to apply the principle of FAIR PLAY which we believe I s enshrined in the hearts of all good Americans. Please do all you can to publicise our views on this matter and encourage inveateent to create more Jobe in South Africa. The enclosed photograph of ourselves could be wed for any Publicity you wish to give this letter. We look for"" to hearing from you and to your support for our representations. Yours sincerely GEORGE E. McCAFFERY HASSIN ARREE MICHAEL ABRAHAM CHARLES EXERT RAJINDRA S. DESAI CDOPSAMY GOUNDEN GEOFF O.A. PULLAN MADHOE SINCH JAMES E. SMITH AMON ZULU VICTOR V. PARINOUSE Town Clerk --I MY I I CITY OF. IOWA CITY CMC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 f3191.iFh-.Frm PRESS RELEASE r, September 17, 1985 I Contact Person: r i. Denny Gannon Assistant City Engineer E: Telephone: 356-5142 Work will commence on the Burlington Street Bridge Reconstruction Project beginning Monday, September 23, 1985. Initial construction will require the installation, erection, and/or remodeling of traffic control devices (signs, barricades, signals, islands, etc.) in and adjacent to the intersection of Burlington Street (Highway 1) and Riverside Drive (Highway 6) after which the south bridge spanning the Iowa River on Burlington Street serving east bound traffic will be closed to pedestrian and vehicular traffic. Weather permitting, said closure of bridge is estimated to occur on Wednesday (September 25, 1985) or Thursday (September 26, 1985). Pedestrian and all east bound and west bound vehicular traffic will be maintained over the adjacent north bridge on Burlington Street; extreme caution should be exercised by both pedestrians and vehicles when traveling in the area. This work is necessary in order to facilitate the reconstruction of the -south bridge on Burlington Street which now serves east bound traffic. The construction activities and accompanying bridge closure is estimated to entail one (1) year. The contractor for the project is Winnebago Constructors, Inc. and Henkel Construction Co. of Mason City, Iowa. I Page 2/ Coralville Weekly Courier, September 17, 1985 Letter to theediotor . freeze due to negative cash flow at the property. This is not abnormal in a start up situation with a new hotel particularly given the high construction costs and ex- pensive financing costs which we incurred in our property. Other hotels constructed in the past such as the Highlander and the Ironmen Inn no doubt have significantly lower debt burdens and much lower con- struction costs, hence an appreciably lower break even point. Of particular irritation to the writer is the suggestion that we are not meeting our community responsibilities. A look at the record will determine. that the Iowa City Holiday Inn has provided in excess of 200 jobs both full and part time for the com- munity and is shouldering a real estate tax burden which will peak next year at $20,000 per month. 1 would challenge your writer to match our tax burden (on a per room basis) against any other hotel in Iowa City. It would be appropriate for you to check with the American Red Cross, American Heart Association, Downtown Association of Iowa City, Chamber of Commerce, Multiple Sclerosis Society, Convention and Visitors Burerau, etc. before determining our exact level of local support. In addition, primarily local contractors and labor were used in the construction of We were recently advised by John R. Hughes, President of Hills Bank h Trust Company, of the negative implications of 'the editorial by Bob Burns relative to our failure to contribute to' the Junior Olym- pics. We were somewhat dismayed to see this type of comment given what we feel to be a significant contribution to the local economy via the Iowa City Holiday Inn. Perhaps your columnist is unaware of the difficulties, barriers and community resist- ance we had to overcome in order to make the Iowa City Holiday Inn happen. For the record, let me remind you that this hotel received not one dollar of financial support from the local financial community. We spent many hours talking to Hills Bank and Trust Company and other local lenders rela- tive to providing financing on this property. After months of effort it became clear to us that the only way the hotel was going to happen was with the support of a major financial institution in Minneapolis, Min- nesota (I.E., Midwest Federal and Savings Loan Association). They were able to pro- vide us with a commitment in approximately two weeks which enabled us to proceed with the project. At the time of the National Junior Olym- pics, all personnel in the hotel were under a salary freeze, hiring freeze and travel this project. Many, many small local sup- pliers deal with us each day as we buy goods and services for the hotel. During August, the hotel achieved posi- tive cash flow and the hiring freeze, salary freeze, and travel freeze was lifted by our management company. We would expect from now on that the hotel will be in a positive cash flow mode before payments on the UDAG grant which are accumulating and are substantial in nature and return on the $2,000,000 equity investment. We have also taken under active con- sideration the need to provide some type of a give back to the community beyond jobs, economic development• and real estate tax revenues. We are presently considering set- ting up some type of a scholarship program for students at the University of Iowa. It is perhaps hard for you to imagine the number of fund raising approaches we receive over the course of a year. Our primary belief is that rather than spreading small contribu- tions in many different areas to no signifi- cant overall effect that we ought to return the dollars to the community in a more major way. I appreciate this opportunity to present "the other side of the coin" and hope your writer will inform himself more carefully in the future. Best Regards, Vernon R. Beck, Vice President