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HomeMy WebLinkAbout2016-12-15 Info PacketCITY COUNCIL INFORMATION PACKET CITY OF IOWA CITY www.legov.org December 15, 2016 IPI Council Tentative Meeting Schedule MISCELLANEOUS I132 Memo from Assistant City Attorney: 724 Ronalds Street IP3 Memo from Library Dir.: Bookmobile Planning and Cooperation with Antelope Lending Library IP4 Civil Service Entrance Examination — Maintenance Operator, Water IP5 Joint Entities Meeting Minutes: October 24, 2016 IP6 2016 Building Statistics IP7 Bar Check Report — November, 2016 I138 Copy of notice to property owner: SE corner of Camp Cardinal Road and Gathering Place Lane IP9 Copy of December 12 letter to Mayor from IAC (International Automotive Companies): Notice of Workforce Reduction I1310 Copy of Press Release: Comprehensive Annual Financial Report (CAFR) I1371 Copy of Press Release: Police team up with Bruegger's on food drive for Crisis Center IP12 Copy of Press Release: Iowa City reminds property owners and tenants of sidewalk snow removal ordinance IP13 Copy of Press Release: Applications now being accepted for Iowa City CDBG and HOME funding IP14 Copy of Press Release: Human Rights Commission will reschedule Sunday program DRAFT MINUTES IP15 Airport Commission: November 17 IP16 Planning & Zoning Commission: December 1 IP17 Senior Center Commission: December 8 r_ 1 City Council Tentative Meeting Schedule [Pi Subject to change CI F IOWA CITY December 15, 2016 Date Time Meeting Location Tuesday, January 3, 2017 5:00 PM Special Formal/Executive Session Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Saturday, January 7, 2017 8:OOA-5:OOP Budget Work Session Emma J. Harvat Hall Tuesday, January 10, 2017 1:00-7:00 P Budget Work Session (CIP) Emma J. Harvat Hall Tuesday, January 17, 2017 5:00 PM Iowa City Conference Board Mtg. Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Tuesday, February 7, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, February 21, 2017 5:00 PM Iowa City Conference Board Mtg. Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Tuesday, March 7, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, March 21, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 4, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 18, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 2, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 16, 2017 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting r ` CITY O F IOWA C1TY -som 'e� MEMORANDUM DATE: DECEMBER 14, 2016 TO: CITY COUNCIL FROM: SUSAN DULEK, ASSISTANT CITY ATTORNE RE: 724 RONALDS STREET IP2 The City acquired 724 Ronalds Street at the sheriffs sale on December 13 for $86,800. This was less than anticipated as the judgment amount was $112,471.72. The University of Iowa Community Credit Union (UICCU) had two mortgages on the property, and the judgment amount reflected both mortgages. However, according to the UICCU attorney, there was a lien superior to the second mortgage, and thus the UICCU chose only to bid for the judgment on its first mortgage of $86,788. Please let me know if you have any questions. Copy to: Eleanor M. Dilkes-City Attorney Geoff Fruin-City Manager Marian K. Karr -City Clerk u mj IOWA CITY IP3 PUBLIC LIBRARY 123 S. Linn St. • Iowa City, IA 52240 DIRECTOR Susan Craig • RHONE 319-356-5200 • FAx 319-356-5494 • icpl.org To: Iowa City City Council Geoff Fruin, City Manager From: Susan Craig, Library Director Kara Logsden, Community and Access Services Coordinator RE: Bookmobile Planning and Cooperation with Antelope Lending Library Date: December 8, 2016 Staff have been working diligently to introduce Library bookmobile services to the community in late spring, 2017. Behind the scenes work includes the RFP process to select a vendor to building the bookmobile, designing graphics for the exterior of the vehicle (see attached), gathering community data to plan for stop locations, creating internal work processes to support bookmobile services, identifying Library staff who will work on the Bookmobile, and preparing staff for licensing requirements to drive the bookmobile. Library staff recently met with Cassi Elton from Antelope Lending Library to plan for a National Bookmobile Day celebration and discuss how our two organizations will offer complementary services to our community. Mark your calendars for April 12, 2017 from 5:30 to 7:30 PM at Mercer Park for the National Bookmobile Day celebration. We envision a festival highlighting the two bookmobiles (we are hoping ICPL's bookmobile will be delivered from the vendor in time for this event), food trucks, music, and activities. City departments have been invited to participate and we hope there will be staff from Parks and Recreation, IC Fire Department, IC Police Department and IC Transit at the event. In addition, we hope there will be other vehicles including a fire truck, police car, and transit bus. Ongoing planning meetings are planned between Antelope Lending Library and ICPL staff to plan this event. Staff have also had a preliminary conversation about bookmobile stop locations. Both organizations anticipate finalizing their summer 2017 schedules in February. Some stop locations may overlap but the bookmobiles will not be at the same location at the same time. An example of this is Mercer Park. Antelope Lending Library is at Mercer Park during the weekly Farmer's Market. For more than 30 years Iowa City Public Library has offered weekly summer "Stories in the Park" storytimes at Mercer Park and plans to schedule the bookmobile to be at Mercer Park during these storytimes. A handout with the schedule for both bookmobiles will be created by Library staff and distributed at the National Bookmobile Day celebration. We look forward to continuing our work with Antelope Lending Library and planning for complementary bookmobile services for our community. If you have questions, please feel free to contact Kara or me. : =4 IOWA CITY gook Anhile .*W PUBLIC LIBRARY SERVICES COMING SPRING 2017 IOWA CITY PUBLIC LIBRARY 6 04�NO1 �► ,o, IOWA CITY PUBLIC LIBRARY P7 r AA �o �ull■III',' �� � ��= IOWA CITY PUBLIC LIBRARY icpl.org velhontmerr ciaoWELCOME /sor: ,'I� namaste �r rw1®r�� ra.ar�_ CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356-5000 (319) 356-5009 FAX www.icgov.org December 8, 2016 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Maintenance Operator —Water Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Maintenance Operator — Water. Brandon Scheer IOWA CITY CIVIL SERVICE COMMISSION Z�w Lyra %V. Dickerson, Chair iii JOHNSON COUNTY IOWAty BOARD OF SUPERVISORS MEETING MINUTES • OCTOBER 24, 2016 Conference Rooms 203 BIC Joint Entities Meeting 4:30 PM HEALTH AND HUMAN SERVICES BUILDING 855 SOUTH DUBUQUE STREET IOWA CITY, IA 52240 PHONE: 319-356-6000 www.JOH NSON-COU NTY.com www.JOHNSONCOUNTYIA.IQM2.com JOINT ENTITIES MEETING BETWEEN THE JOHNSON COUNTY BOARD OF SUPERVISORS, UNIVERSITY OF IOWA, IOWA CITY COMMUNITY SCHOOL DISTRICT BOARD, CLEAR CREEK AMANA COMMUNITY SCHOOL DISTRICT BOARD, AND THE FOLLOWING CITIES: CORALVILLE, HILLS, IOWA CITY, LONE TREE, NORTH LIBERTY, OXFORD, SHUEYVILLE, SOLON, SWISHER, TIFFIN, AND UNIVERSITY HEIGHTS A. Chairperson Sullivan called the meeting to order at 4:30 p.m. Attendee Name Title Status Arrived Mike Carberry Supervisor Present Lisa Green -Douglass Supervisor Present Pat Harney Supervisor Absent Janelle Rettig Supervisor Present Rod Sullivan Chairperson Present B. WELCOME AND INTRODUCTIONS Elected Officials present: Coralville City Council Members: Mayor John Lundell, Jill Dodds, Laurie Goodrich; Hills Mayor Tim Kemp; Iowa City Community School District (ICCSD) Board Members: LaTasha DeLoach, Phil Hemingway, Brian Kirschling, Chris Lynch, Paul Roesler; Iowa City City Council Members: Mayor Jim Throgmorton, Kingsley Botchway II arrived at 4:37 p.m., Rockne Cole, Terry Dickens, Susan Mims, John Thomas; North Liberty City Council Member Terry Donahue; Tiffin Mayor Steve Berner; and University Heights Mayor Wally Heitman. C. DISCUSSION/UPDATE 1. Presentation on walkable cities by Principal Planner Jeff Speck, Speck & Associates LLC (City of Iowa City) Iowa City City Manager Geoff Fruin introduced Speck & Associates LLC Principal Planner Jeff Speck, noting Speck's work on creating walkable cities. Speck presented a PowerPoint on walkable cities including, but not limited to, why cities need to be walkable, how to make cities walkable, and a general theory of walkability. Johnson County Iowa Submitted by the Auditor's Office Page 1 Minutes Board of Supervisors October 24, 2016 Hemingway asked Speck to elaborate on large suburban schools versus neighborhood schools. Speck spoke about data on school size, the importance of school walkability for students, and school consolidation leading to increased busing costs. Cole asked which Iowa City street is the best candidate for a road diet (lane reduction/rechanneling). Speck said the downtown streets are more important, for instance Clinton Street. Speck said Gilbert Street could be important if it is a commuting path for bicycles. Green -Douglass asked about the benefits of one-way versus two-way streets. Speck said one-way to two-way reversions improve retail, safety, and walkability; however, the costs to change intersection signals can be expensive. Carberry asked if there is data identifying reductions in carbon emissions when cities improve walkability. Speck said he does not have such data and he spoke about what data might be available. Botchway asked for more information about one-way to two-way reversions. Speck said he has presided over or witnessed dozens of cities complete these reversions and has only heard reports of increased revenues for businesses and improved walkability. 2. Joint letter of support on an update to the regulation plan for the Coralville Lake/Iowa River (Johnson County) Emergency Management Coordinator Dave Wilson reviewed a PowerPoint on the U.S. Army Corps of Engineers (Corps) Initial Assessment of Water Regulation Opportunities for the Coralville Lake and Iowa River. Wilson explained the Corps is on the fence about completing the study on changes to the Iowa Reservoir Regulations, and he spoke about how the changes to the Iowa Reservoir Regulations could decrease the impact of certain flood events. He presented a draft letter for entities to send to the Corps asking the Corps to move forward with changes to the Iowa Reservoir Regulations. University of Iowa IIHR-Hydroscience and Engineering Director Larry Weber spoke about the local support the Corps would like before moving forward. 3. Facilities Master Plan (Iowa City Community School District) Lynch spoke about the annual renewal of the ICCSD Facilities Master Plan including, but not limited to, the timing, process, and a possible General Obligation (GO) Bond in September 2017. Lynch explained that the district has been using revenues from the Secure an Advanced Vision for Education (SAVE) sales tax and Physical Plant and Equipment Levy (PPEL) to fund the Facilities Master Plan, and when or if those expire, a GO Bond will be needed to fund the Facilities Master Plan. Lynch and Kirschling noted details of the possible GO Bond including the potential increases in property taxes. Officials discussed the potential property tax increases with the GO Bond, neighborhood and walkable schools, ICCSD's collaboration with local entities, and funding for technical and vocational programs. 4. Legislative Priorities (Iowa City Community School District) Johnson County Iowa Submitted by the Auditor's Office Page 2 Minutes Board of Supervisors October 24, 2016 Lynch said the ICCSD legislative priorities are adequate and timely funding from the State, extending SAVE funding, and putting a halt to unfunded mandates. Carberry said he was not sure of the ICCSD's position on Iowa Governor Terry Branstad's SAVE For The Future proposal to fund water quality initiatives using SAVE revenues. Lynch said SAVE funding is a valuable resource to the district and it is important to get something done even if political compromise is necessary. 5. Other business Rettig said that County Auditor Travis Weipert reported that to date, the Auditor's Office has received 15,127 absentee ballots out of a total of 23,752 requests for absentee ballots. She urged the public to vote and spoke about the relationship between the elections outcome and the County's success in achieving its legislative priorities. 6. Schedule next meeting Board of Supervisors Executive Assistant Andy Johnson said the ICCSD is scheduled to host the next Joint Entities Meeting on January 23 or 30, 2017. ICCSD staff will confirm a date after checking room availability. D. DISCUSSION FROM THE PUBLIC - No business. E. Adjourned at 6:01 p.m. Attest: Travis Weipert, Auditor Recorded by Emily Way Johnson County Iowa Submitted by the Auditor's Office Page 3 �. Ef" City of Iowa City 2016 Building Statistics al r r February urea a rs 5 2,631,225 4.534.025 4.285,494 4.502.146 3,122,390 885,000 4,049,288 2,851,724 5,081,545 8,817,061 41,825,498 Number of Perones 4 6 20 16 21 13 3 18 12 17 34 162 plex - S _ `?•� 1,349,870 420,000 1,013485 300,000 3.083.335 of 2 1 2 1 B aFiet -S'. - Number of Perl Multiple.Units 3,663,333 1,564,850 4,060,000 1,000,000 13,252,114 6,900,000 12,508,696 5,165,675 8,224,000 56,538,668 —__ . _. Number of Permits 3 4 2 1 foundatio 2 B 1-foundaBo 3 1-fourMetio 1 3 25 Number of Buildings 3 4 2 2 5 3 2 3 24 _— Number of pwelling Units 27 17 28 78 5/ 86 48 78 416 Mix- CanmerciallResidential 6,949,457 6,000,000 74,000,000 88,949,457 Number of Permits 2 1 -lou 1-fau00ation 1 4 Number of Buildings 1 1 2 Number of pwelling units a 332 Motels, Hotels S 23,500,000 23.500.000 Number of Permits 1 1 b.abus- S 8,000,000 8,000,000 8,000,OOD Number of Pernits 1 1 Industrial -$ 10,700,000 470,000 119,540 89,000 889,700 12,048,240 Number of Permits 1 1 1 1 21-foulMahon 6 Seance Stations - $ 384,481 384,461 Number of Permits 1 1 Hospitals & Institutions -$ Numbero/ Pernik Off... Banks, Pmf. -S 188,000 9,50,000 1,500,000 11,188,000 Number of Permits 1 1 1 3 Public Works 8 Utilities- S 7,619,000 7,619,000 7,619,000 Number of Pemnls 3 3 SUlot-$ 14,000,000 14,000,000 14,000,000 Number of Permits 1 1 tones B Custorler Sv $ 1,916,418 1,100,867 3,900,000 750,000 7,667,285 Number of Pem4ts 1 1 2 1 5 Mist SbuWnesrFences - S 151,500 1,000 105,000 4,800 262,300 Number of Permits 7 1 1 1 10 Remodel, Residential 414,212 895,942 929,851 88$030 8,252,798 5,714,583 1,215,083 1,438,680 1,165,505 7,761,334 458,370 26.934,388 Numberits 23 23 39 41 39 37 30 46 27 36 20 361 emodel, Comm$ 1,295,544 13,495,592 1,718,550 4,467,960 11,665,395 8,317,942 3,360,826 4,991,605 11,492,808 1,149,500 2,88,028 64,615.748 19,554,944Numberits 15 8 13 7 20 13 7 17 13 6 14 133 emodel, PWhe 5Numbercessary Struct__4,000 222,000 25,000 179,000 3,000 104,000 318,000 5,208 858,206 Numberllb 1 4 1 2 1 1 5 2 17 TOTAL VAL13,667,356 44,608,092 34,067,148 23,026,484 25,908,25746,256,353 15,368,449 19,251,838 28,407,733 19,474,054 95,218,824 365,274,586 49.173,944 TOTAL PER45 45 81 69 90 74 46 90 571 739 IP7 Iowa City Police Department and University of Iowa DP Bar Check Report - November, 2016 The purpose of the Bar Check Report is to track the performance of Iowa City liquor license establishments in monitoring their patrons for violations of Iowa City's ordinances on Possession of Alcohol Under the Legal Age (PAULA) and Persons Under the Legal Age in Licensed or Permitted Establishments (Under 21). Bar checks are defined by resolution as an officer -initiated check of a liquor establishment for PAULA or other alcohol related violations. This includes checks done as part of directed checks of designated liquor establishments, and checks initiated by officers as part of their routine duties. It does not include officer responses to calls for service. The bar check ratios are calculated by dividing the number of citations issued to the patrons at that establishment during the relevant period of time by the number of bar checks performed during the same period of time. The resulting PAULA ratio holds special significance to those establishments with exception certificates, entertainment venue status, or split venues, in that they risk losing their special status if at any time their PAULA ratio exceeds .25 for the trailing 12 months. Note, while the resolution requires that bar checks and citations of the University of Iowa Department of Public Safety (DPS) be included in these statistics, the DPS ceased performing bar checks and issuing these citations to patrons in May of 2014. Previous 12 Months Top 10 Under 21 Citations PAULA Citations Business Name Visits Citations Ratis Business Name Visits Citations Ratio Eden Lounge 18 18 1.0000000 Union Bar 95 74 0.7789474 Union Bar 95 89 0.9368421 Summit. [The] 65 27 0.4153846 Summit. [The) 65 57 0.8769231 Airliner 18 5 0.2777778 Airliner 18 10 0.5555556 Brothers Bar & Grill, [It's] 97 26 0.2680412 Sports Column 70 34 0.4857143 Sports Column 70 13 0.1857143 DC's 71 32 0.4507042 Bardot Iowa 17 3 0.1764706 Brothers Bar & Grill, [It's] 97 29 0.2989691 Eden Lounge 18 3 0.1666667 Pints 30 6 0.2000000 DC's 71 11 0.1549296 Fieldhouse 36 5 0.1388889 Fieldhouse 36 1 0.0277778 Martini's 36 4 0.1111111 Only those establishments with at Ic-ast 10 bar checks are listed in the chart above. Current Month Top 10 Under 21 Citations PAULA Citations ss Name _ Visits s I Business Name _ Visits Citations _.__ Ratio Bar 7 14 2.0000000 Union Bar 7 8 1.1428573 is 1 1 1.0000000 N Q T 1 4i- _ Il r l tr - exception to 21 ordinance Page 1 of 6 .. C1 Iowa City Police Department �= and University of Iowa DPS Bar Check Report - November, 2016 Possession of Alcohol Under the Legal Age (PAULA) Under 21 Charges Numbers are reflective of Iowa City Police activity and University of Iowa Police Activity Business Name 2 Dogs Pub Monthly Bar checks Totals Under2l PAULA 0 0 0 Airliner 0 0 0 American Legion 0 0 0 Atlas World Grill 0 0 0 Bardot Iowa 0 0 0 Baroncini- 0 0 0 Basta 0 0 0 Blackstone- 0 0 0 Blue Moose- 2 0 0 Bluebird Diner 0 0 0 Bob's Your Uncle 0 0 0 Bo -James 0 0 0 Bread Garden Market & Bakery" 0 0 0 Brix 0 0 0 Brothers Bar & Grill, [It's] 4 0 0 Brown Bottle, [The]- 0 0 0 Buffalo Wild Wings Grill & Bar"' 0 0 0 Cactus 2 Mexican Grill (314 E Burlington) 0 0 0 Cactus Mexican Grill (245 s. Gilbert) 0 0 0 Caliente Night Club 0 0 0 Carl & Ernie's Pub & Grill 0 0 0 Carlos O'Kelly's- 0 0 0 Chili Yummy Yummy Chili 0 0 0 Chipotle Mexican Grill 0 0 0 Clarion Highlander Hotel 0 0 0 Prev 12 Month Totals Bar Under2l PAULA Checks 2 0 0 18 10 5 17 1 0 1 3 21 2 0 8 3 0 97 "1 wh Under2l PAULA Ratio Ratio (Prev 12 Mo) (Prev 12 Mol 0 0 0.5555556 1 0.2777778 0 1 0.1764706 1 0.0952381 1 0 0.375 1 0 1 0.2989691 1 0.2680412 1 0 7 0 1 1 0 4 0 4 3 0 0 0 0 3 0 0 0 0 - exception to 21 ordinance Page 2 of 6 Business Name Clinton St Sociailit r- ;. Club Car, [The] Coach'scW6V C 2 Colonial Lanes" Dave's Foxheaii Tavern DC's Deadwood, [The] Devotay" Donnelly's Pub Dublin Underground, [The] Eagle's, [Fraternal Order of] Eden Lounge EI Banditos EI Cactus Mexican Cuisine EI Dorado Mexican Restaurant EI Ranchero Mexican Restaurant Elks #590, [BPO] Englert Theatre" Fieldhouse FilmScene First Avenue Club - Formosa Asian Cuisine- Gabes - George's Buffet Givanni's- Godfather's Pizza Graze - Grizzly's South Side Pub Hilltop Lounge, [The] Howling Dogs Bistro IC Ugly's India Cafe Monthly Totals Bar Under2l PAULA Checks 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 Prev 12 Month Totals Bar Unde21 PAULA Checks 3 0 0 1 0 0 71 32 11 2 0 0 1 0 0 3 0 0 18 18 1 3 36 5 2 0 7 0 1 0 2 3 1 9 0 0 0 0 1 0 0 0 0 0 0 0 Under 21 PAULA Ratio Ratio (Prev 12 Moi (Prev 12 Mo) 0 0 0 0 0.4507042 0 0 0 0.1388889 0 0 0 0 0 0 0.1549296 0 0 0 0.1666667 0.0277778 0 0 0 0 0 0 0 exception to 21 ordinance Page 3 of 6 Business Name Monthly Totals Bar Under2l PA Checks r Iron HawI ?, - -^' 0 0 Jimmy Jack's Rib ShaSk n. �, 0 0 12 � Jaw,: 1 0 Joe's Place - 1 0 Joseph's Steak House" 0 0 Linn Street Cafe 0 0 Los Portales 0 0 Martini's 1 1 Masala 0 0 Mekong Restaurant- 0 0 Micky's` 0 0 Mill Restaurant, [The]- 0 0 Moose, [Loyal Order of] 0 0 Mosleys 0 0 Motley Cow Cafe` 0 0 Noodles & Company- 0 0 Okoboji Grill" 0 0 Old Capitol Brew Works 0 0 One -Twenty -Six 0 0 Orchard Green Restaurant- 0 0 Oyama Sushi Japanese Restaurant 0 0 Pagliai's Pizza- 0 0 Panchero's (Clinton St)" 0 0 Panchero's Grill (Riverside Dr)- 0 0 Pints 2 0 Pit Smokehouse` 0 0 Pizza Arcade 0 0 Pizza Hut" 0 0 Players 0 0 Quinton's Bar & Deli 0 0 Rice Village 0 0 Ride 0 0 ULA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Prev 12 Month Totals I Under 21 PAULA Bar Under2l PAULA Ratio Ratio Checks (Prev 12 Moi (Prev 12 Mo) 13 21 0 0 36 4 1 0 DI0 0 1 0.1111111 0 2 0 0 30 1 6 I 0 1 0.2 A" 0 "exception to 21 ordinance Page 4 of 6 Business Name Monthly Bar Checks 0 Totals Under2l PAULA Ridge Pub 0 0 Riverside Theatre- 0 0 0 Saloon- 2 0 0 Sam's Pizza 0 0 0 Sanctuary Restaurant, [The] 0 0 0 Shakespeare's 0 0 0 Sheraton 0 0 0 Short's Burger & Shine- 0 0 0 Short's Burger Eastside 0 0 0 Sports Column 6 0 0 Studio 13 0 0 0 Summit. [The] 2 0 0 Sushi Popo 0 0 0 Szechuan House 0 0 0 Takanami Restaurant- 0 0 0 Taqueria Acapulco 0 0 0 TCB 1 0 0 Thai Flavors 0 0 0 Thai Spice 0 0 0 Times Club @ Prairie Lights 0 0 0 Trumpet Blossom We 0 0 0 Union Bar 7 14 8 VFW Post #3949 0 0 0 Vine Tavern, [The] 0 0 0 Wig & Pen Pizza Pub- 0 0 0 Yacht Club, [Iowa City]` 0 0 0 Yen Ching 0 0 0 Z'Mariks Noodle House 0 0 0 `exception to 21 ordinance Prev 12 Month Totals Under 21 Bar Under2l PAULA Ratio Checks (Prev 12 Mo) 3 0 0 0 1 70 4 65 0 I 0 I 0 34 0 57 13 1 0.4857143 0 0 27 0.8769231 29 0 0 I 0 95 5 3 89 0 0 74 0.9368421 0 0 0 0 PAULA Ratio (Prev 12 Mo) 0 �, 0.1857143 0 0.4153846 X 0.7789474 0 0 N r� n -C Pagil 55 6 Fn qof � �1 7M ^u �x N Off Premise Monthly Totals Prev 12 Month Totals Under2l PAULA Bar Under2l PAULA Bar Under2l PAULA Ratio Ratio Checks Checks (Prev 12 Mo) (Prev 12 Mo) Totals 35 1s 8 1 709 289 174 1 0.4076164 0.2454161 0 0 3 0 0 98 0 0 Grand Totals 272 - exception to 21 ordinance Page 6 of 6 0 `...,d` :FIs. ^� I :J7 to - exception to 21 ordinance Page 6 of 6 December 6, 2016 RE: SE corner of Camp Cardinal Road and Gathering Place Lane (REZ16-00007) Dear Property Owner: I, !1 IP8 CITY OF IOWA CITY UNESCO CITY OF LITERATURE 410 East Washington Street Iowa City. Iowa 52240.1826 (319) 356-5000 (319) 356-5009 FAX www,lcgov.org The City of Iowa City has established zoning classifications that determine how land and buildings may be used in specific areas of the community. Those classifications may be changed, pending consideration by the Planning and Zoning Commission and approval by the City Council. A request for rezoning in your neighborhood has been received by the City. The application, submitted by TSB Investments for a rezoning from Planned Development Overlay (OPD -5) to Low Density Multi -Family Residential (RM -12) for approximately 3.48 -acres of property located at the southeast corner of Camp Cardinal Road and Gathering Place Lane. The rezoning would allow for the property to be developed with up to 55 multi -family dwellings. A location map is attached. The Planning & Zoning Commission will review the application and receive comments at a public meeting tentatively scheduled for December 15, 2016 at 7:00 p.m. in Emma Harvat Hall, City Hall, 410 E. Washington Street, Iowa City. As a neighboring property owner, you are being notified of this meeting and invited to present your views concerning this application, either in person or in writing. The meeting is subject to change. Please check the City of Iowa City's website at www.icgov.org/agendapz the week of the meeting or call 319.356.5230 to confirm the agenda. If you know of any interested party who has not received a copy of this letter, we would appreciate it if you would share this information with them. If you have any questions regarding this application, please contact Bob Miklo at 319.356.5240 or email bob-miklo@iowa-city.org. Sincerely, j`anet DvtlrSky Administrative Secretary Department of Planning and Community Development y u!!6. b-10 ID -RS r An applica on submitted by TSB Investments LLP, on behalf of St. Andrew Presbyterian Church for a rezoning from a Planned Development Overlay (OPD -5) <. to Low Density Multi -Family Residential (RM -12) for a 3.48 -acre property at the northeast corner of Camp Cardinal Road and Camp Cardinal Boulevard. E AVEC Ciro OF IOWA CITY °ter TM IAC Group North Amer. I P9 . IAC law. City, L 2500 Hwy ■ International Automotive Components Iowa City, IA, USA Phane 319.338.9281 ■ www.iacgroup.com N O December 12, 2016 L"; �9 Mayor Jim Throgmorton ` 410 E. Washington St. a t Iowa City, Iowa 52240 C r i a rn Dear Mayor Throgmorton: z o .a This revised notice is issued in compliance with the Worker Adjustment and Retraining Notification (WARN) Act and Iowa Code § 84C. International Automotive Components Iowa City, LLC. (IAC), located at 2500 Highway 6 East, Iowa City, IA 52240 will experience a reduction in its workforce between December 23, 2016 -January 6, 2017 as a result of a significant loss of business. The layoff is expected to be permanent. The full list of affected employees is attached. C Lis 4- o9 h LYAQ $ On -ot t e C, l y C\erlc" s The bargaining unit employees are represented by the Teamsters Local #238, which is located at 5000 J St. SW, Cedar Rapids, IA 52404. Its principal officer is Gary G. Dunham. The union representative of the employees has received timely notification of the layoff. Employees who are not represented by the union have been individually and timely notified. The employees subject to the collective bargaining agreement may have bumping rights as set forth in that agreement. Employees who are not subject to the collective bargaining agreement do not have bumping or transfer rights. If you have further questions or need additional information, you may contact me at (319) 688- 6425. Sincerely, o ell Human Resources Manager International Automotive Components Iowa City, LLC. 3745974.1 Affected Hourly Employees Represented by Union Job Title Injection Operator Store Room Attendant Injection Operator Hand Spray Operator Service Person Injection Operator Finish Operator Injection Operator Finish Operator Packer Injection Operator Injection Service Packer Finish Operator Service Person -Shipper Yinyl Compounder Process Technician -Injection Service Store Room Attendant Pour Head Operator Injection Operator Finish Operator Finish Operator Receiver In ection Operator Pour Head Operator Pour Head Operator Injection Operator Receiver A rentice-In'ec Mold Set Finish Operator Apprentice -Machinist Pour Head Operator Pour Head Operator Injection Operator Injection Operator Journeyman, Electrician Injection SPC Injection Operator Journeyman, Tooling Mecha Injection SPC Finish Operator Injection Operator Injection Operator 3745923.1 Finish Operator A rentice-Inec Mold Set Service Person Pour Head Operator Injection Optrator A rentice-In'ec Mold Set Materials Coordinator Finish Operator Finish Operator Packer Pour Head Operator Receiver Finish Operator Finish Operator Finish Operator Injection Operator Pour Head Operator A rentice-In'ec Mold Set Journeyman, Maint Mechani Packer Packer a Finish Operator r, Journeyman, I ' ti of s Finish Operator--' "� Finish Opera*,,", c + Finish O eratot'`" t Finish Operator Finish O eratoi` Injection Operator Slush Operator Injection SPC Apprentice -Pour Head Mech Injection Operator Mrenfice-Toolin tor erator tor ator Toolin Mechan sonFinish Operator Finish Operator Injection Service Packer Injection Operator Finish Operator Finish Operator A rentice-in'ec Mold Set Injection Service 3745923.1 0 WOerator ce-Toolin Mechan O erator erator O erator erator eratorO rator Finish Finish I Finish Oneratnr 3745923.1 Finish Ot Receiver Service Service I Iniection Operator Finish Operator Vac Form Operator Vac Form Operator Finish Operator Finish Operator Packer Packer j Finish Operator Finish Operator Finish -Containment Finish Operator Finish Operator I Finish Onerator Injection Operator Finish Operator Packer Journeyman, Maint Mechani Finish Operator Packer Service Person Finish Operator Finish Operator Infection Services Finish O erator" '— P acker -µPacker " Cl 3745923.1 LI) SEOrator rvice Person ish 0 rator 3745923.1 Finish Ot Receiver Service Service I Iniection Operator Finish Operator Vac Form Operator Vac Form Operator Finish Operator Finish Operator Packer Packer j Finish Operator Finish Operator Finish -Containment Finish Operator Finish Operator I Finish Onerator Injection Operator Finish Operator Packer Journeyman, Maint Mechani Finish Operator Packer Service Person Finish Operator Finish Operator Infection Services Finish O erator" '— P acker -µPacker " Cl 3745923.1 LI) Injection Operator Pour Head Operator Journeyman, Injection Mol Finish Operator Finish Operator Finish Operator Inection Operator Finish Operator Finish Operator Injection Operator Injection Operator Packer Hand Spray Operator Slush Operator Injection Operator Finish Operator Injection Service Injection Operator Packer Finish -Containment Slush Operator Injection Service Hand Spray Operator Finish O erator Finish O erator Finish Operator Injection Operator Injection Operator Inection Service -Quality Technician Injection Operator Pour Head Operator -injection Operator Finish Operator Journeyman, Maint Mechani Finish Operator Finish -Containment Injection Operator Process Technician Finish Operator Service Person Finish Operator Finish Operator Finish Operator Packer Process Technician Finish Operator Pour Head Operator Finish Operator Injection Operator Apprentice -Electrician Injection SPC Injection Operator Finish Operator A rentice-Inec Mold Set Finish Operator Finish Operator Finish Operator 3745923.1 N -'1-77 —13 C'1"9 dyt Affected Hourly Emvlovees Not Represented by Union Job Title Quality Technician 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erator Finieh r)nerafnr Injection Operator Hand Spray Operator Service Person Injection Operator Injection Operator Injection Operator Injection Operator Injection Operator Injection Service Finish Operator Hand Spray Operator Finish Operator Finish Operator Finish Operator Injection Operator Finish Operator n Iection O rotor Inection operator P G 3745923.1 -' • 'r c� Injection Operator Injection Operator Joume man, Electrician Service Person Injection Operator Injection Operator Joume man, Inection Mol Injection Operator Injection Operator Pour Head Operator Injection SPC In ection Operator Finish Operator Injection Operator Finish Operator Injection Operator Finish Operator Packer Finish Operator Injection Service Injection Service Finish Operator Injection Operator Pour Head Operator Injection Service Injection Operator Finish Operator Injection Operator Packer Packer Packer Finish Operator Injection Service Finish Operator Injection Operator Injection Operator Receiver Hand Spray Operator Affected Employees Not Subiect to Collective Bargaining Agreement Job Title Quality Technician II Technician II Supervisor Production 11 Process Engineer I Supervisor IT 3745923.1 Accounting Analyst III Tooling Engineer I Technician II Quality Technician II Technician II SR Materials Staff Associate Supervisor Production II SR Manager Engineering Process Engineer I Quality Technician II Technician II Manufactudng Engineer I SR Materials Staff Associate SR HR Staff Associate Toolin En ineer II Su ervisor Production I Human Resources Manager SR Materials Staff Associate I Supervisor Production II 3745923.1 c�*1 all City of Iowa City's year-end CAFR financial report now available Page 1 o 1'2 IP10 Receive Updates jEnter Email Address Go City of Iowa City's year-end CAFR financial report now available City of Iowa City sent this bulletin at 12/13/2016 12:06 PM CST [O SHRRE Having trouble viewing this email? View it as a Web page. °��°, IOWA CITY FOR IMMEDIATE RELEASE Date: Dec. 13, 2016 Contact: Nicole Davies Phone: 319-356-5053 City of Iowa City's year-end CAM financial report now available Iowa City's annual year-end financial report, which provides information on actual income, incurred expenses, and financial position through the end of fiscal year 2016, is now available on the City's website at www.icgov.org/budget. Compilation of the Comprehensive Annual Financial Report (CAFR) is required by the State Code of Iowa. The 158 -page report will be reviewed by the City Council and submitted to the City's bond holders. It will also be forwarded to the Government Finance Officers Association (GFOA) for consideration for an award in government financial reporting. The City of Iowa City has earned the GFOA award for excellence for the past 31 years. The CAFR was audited by the CPA firm Gide Bailly LLP. In addition to the CAFR report, other financial documents currently available for viewing on the City's website at www.icgov.org/budget include the FY2017 adopted budget for the current fiscal year that ends June 30, 2017 and the City's current three-year financial plan. For more information on the CAFR report, contact City Controller Nicole Knudtson-Davies at 319-356- 5085 or Nicole-daviesftowa-citv.ora. Questions about other City financial documents may be directed to Dennis Bockenstedt, Finance Director, at 319-356-5053 or dennis-bockenstedt@iowa-city.org. https://content.govdelivery.com/accounts/IAIOWA/bulletins/I79611e 12/15/2016 EideBailly. 11-1� CPAs & BUSINESS ADVISORS December 12, 2016 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Iowa City, Iowa (City) for the year ended June 30, 2016. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 1, 2016. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects ofAccounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. During the year ended June 30, 2016, the City adopted GASB 72, Fair Value Measurement and Application. No other significant new accounting policies were adopted, and the application of other existing policies was not changed during the year ended June 30, 2016. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: Management's estimate of incurred but not reported health, property, liability, and workers' compensation insurance liabilities are based on third -party administrator's calculations and estimates. We evaluated the key factors and assumptions used to develop incurred but not reported liabilities in determining that they are reasonable in relation to the financial statements taken as a whole. Management's estimate of the other postemployment benefits is based on a calculation of actuarially determined contributions for health insurance benefits. We evaluated the key factors and assumptions used to develop the other postemployment benefits liability in determining that it is reasonable in relation to the financial statements taken as a whole. www.eideboilly.com 1545 Associates Dr., Ste. 101 1 Dubuque, IA 52002-2299 1 T 563.556.1790 1 1 563.557.7842 I EOE Management's estimate of the landfill closure and postclosure care liability is based on engineering cost studies and capacity estimates. We evaluated the key factors and assumptions used to develop the landfill closure and postclosure care liability in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the net pension liability, pension related deferred outflows of resources and deferred inflows of resources, and pension expense are based on plan level actuarial reports, allocated to the City using annual employer contributions. We evaluated the key factors and assumptions used to develop the pension related balances in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no such misstatements noted in performing the audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 12, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management's discussion and analysis, the budgetary comparison schedule, City's proportionate share of net pension liability, schedule of City's pension contributions, and schedule of funding progress, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining nonmajor fund financial statements and schedule of expenditures of federal awards, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. This information is intended solely for the use of the Mayor, City Council, and management of the City of Iowa City, Iowa and is not intended to be, and should not be, used by anyone other than these specified parties. Sincerely, EIDE BAILLY LLP X/-7�' Dubuque, Iowa City of Iowa City Comprehensive Annual Fi40 nancial Report For the Fiscal Year Ended June 30, 2016 The new play structure at Mercer Park in Iowa City, installed in 2016, is all-inclusive, allowing children and their families to play together regardless of abilities. COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 309 2016 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA Introductory Section Tab CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2016 Page INTRODUCTORY SECTION Tableof contents................................................................................................................................ 1 Letterof transmittal............................................................................................................................ 3 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 Cityorganizational chart .................................................................................................................... 13 Cityofficials....................................................................................................................................... 14 IaIC/_\C[ej/_\IG9KIM YG]CI INDEPENDENT AUDITOR'S REPORT......................................................................................... 15 MANAGEMENT'S DISCUSSION AND ANALYSIS.................................................................... 19 BASIC FINANCIAL STATEMENTS Government -wide financial statements Statementof net position............................................................................................................. 32 Statementof activities.................................................................................................................. 34 Fund financial statements Balance sheet — governmental funds............................................................................................ 36 Reconciliation of the balance sheet of the governmental funds to the statement of net position. 37 Statement of revenues, expenditures, and changes in fund balances — governmental funds ....... 38 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities..................................................................... 39 Statement of net position — proprietary funds.............................................................................. 40 Statement of revenues, expenses, and changes in fund net position — proprietary funds ............ 41 Statement of cash flows — proprietary funds................................................................................ 42 Statement of fiduciary assets and liabilities................................................................................. 43 Notes to financial statements.......................................................................................................... 44 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule — budget and actual — all governmental funds and enterprise funds — budgetary basis.................................................................................... 84 Budgetary comparison schedule —budget to GAAP reconciliation ................................... 86 Note to required supplementary information — budgetary reporting ................................... 87 Schedule of the City's proportionate share of MEPRSI net pension liability ........................ 89 Schedule of City's MEPRSI contributions............................................................... 90 Note to required supplementary information — MEPRSI pension liability ........................... 92 Schedule of the City's proportionate share of IPERS net pension liability .......................... 93 Schedule of City's IPERS contributions.................................................................. 94 Note to required supplementary information — IPERS pension liability ............................. 96 Required supplementary information — schedule of funding progress for health and dental plans.......................................................................................................... 98 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet — nonmajor governmental funds............................................................ 100 Combining statement of revenues, expenditures, and changes in fund balances — nonmajor governmentalfunds...................................................................................................................... 101 Combining statement of net position — nonmajor enterprise funds ................................................ 104 Combining statement of revenues, expenses, and changes in fund net position — nonmajor enterprisefunds............................................................................................................................ 105 Combining statement of cash flows — nonmajor enterprise funds .................................................. 106 Combining statement of net position — internal service funds ........................................................ 108 Combining statement of revenues, expenses, and changes in fund net position — internal service funds............................................................................................................................................. 109 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2016 Page COMMIT IING AND INDIVIDUAL FUND STATEMENTS (continued) Combining statement of cash flows — internal service funds.......................................................... 110 Statement of changes in assets and liabilities — agency funds......................................................... 112 STATISTICAL SECTION (UNAUDITED) Netposition by component................................................................................................................. 115 Changesin net position...................................................................................................................... 116 Fund balances — governmental funds................................................................................................. 118 Changes in fund balances — governmental funds............................................................................... 119 General government tax revenues by source...................................................................................... 120 Assessed and taxable value of property.............................................................................................. 121 Property tax rates — direct and overlapping governments.................................................................. 122 Property tax budgets and collections.................................................................................................. 123 Principaltaxpayers............................................................................................................................. 124 Principal water system customers...................................................................................................... 126 Sales history and total water charges.................................................................................................. 127 Principal sewer system customers...................................................................................................... 128 Sales history and total sewer charges................................................................................................. 129 Ratios of outstanding debt by type..................................................................................................... 130 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 131 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures..................................................................................................................................... 132 Computation of direct and overlapping debt...................................................................................... 133 Legal debt margin information........................................................................................................... 134 General obligation debt annual maturity schedule............................................................................. 135 Schedule of revenue bond coverage................................................................................................... 136 Revenue debt annual maturity schedule............................................................................................. 137 Revenue debt annual maturity by funding source.............................................................................. 138 Demographic and economic statistics................................................................................................ 140 Principalemployers............................................................................................................................ 141 Full-time equivalent city government employees by function........................................................... 142 Operating indicators by function........................................................................................................ 144 Capitalassets by function................................................................................................................... 145 Independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government AuditingStandards............................................................................................................................. 147 Independent auditor's report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance............................................................. 149 Schedule of expenditures of federal awards....................................................................................... 151 Notes to the schedule of expenditures of federal awards................................................................... 155 Schedule of findings and questioned costs......................................................................................... 156 Summary schedule of prior federal audit findings............................................................................. 158 2 December 12, 2016 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa i r CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2016 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City's Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner designed to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatement. Fide Bailly, LLP, a firm of independent public accountants has issued an unmodified ("clean") opinion on the City's financial statements for the year ended June 30, 2016. Their opinion is included in the Financial Section of this report. The City is required to undergo an annual single audit in conformity with the provisions of Titele 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Information to comply with the Uniform Guidance and "Government Audifing Standards" is included in the Compliance Section of Us report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; 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 biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. 3 The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City's operating departments and supervises the administration of the City's personnel system. The City Manager supervises 496 full-time and 46 part-time permanent municipal employees and 470 temporary employees, including a police force of 82 sworn personnel and a fire department of 64 firefighters. The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office administers the City government's documentation, City licenses and permits, and provides information from the Municipal Code and City Ordinances to the public and other City departments. The City Clerk's Office is also responsible for distributing and maintaining accurate records of all City Council proceedings. The Clerk supervises 3 full-time employees and 1 temporary employee. The City Attorney is also appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal Counsel to the City Council, City Manager, the various City departments and staff, and most City commissions. committees and boards. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City operates a municipal off-street and on -street parking system in the downtown area. The City also operates a transit system. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 15. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts a three-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City's financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Appropriations that are not spent lapse at the end of the year. 4 Information Useful in Assessing the Government's Economic Condition The City's economic strength is based on the educational sector, medical services, and diversified manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the City's largest employers with over 27,300 employees. The University of Iowa had a record high enrollment in fall 2016 of 33,334 students. The academic and research missions of the University, along with the health care services provided at its hospitals and clinics, have a tremendously positive economic impact on the area. The City also has a significant number of national and international businesses, including Fortune 500 companies. The City continues to see sustained production in our major local industries; ACT Inc., NCS Pearson, and Proctor & Gamble. Continued economic development efforts with the Iowa City and Coralville Chambers of Commerce, private interests, the University of Iowa, other surrounding communities, and participation as a member of the Iowa City Area Development Group, have also produced positive results with the retention and expansion of businesses. In addition, Iowa's Creative Corridor is a seven -county alliance surrounding Iowa City and has been identified as one of the major growth areas for new business development in the State of Iowa. This Corridor gives employers workforce access to a region uniquely Iowan, founded with a manufacturing heritage, but actively seeking new frontiers and opportunities in information technology, biotechnology and bioprocessing, renewable energy, insurance and financial services, advanced manufacturing, and educational services. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. As a whole, the City's economy continues to grow. While established firms continue to prosper and expand in Iowa City and there are opportunities for growth of new businesses, several of the City's businesses have announced layoffs in 2015 and 2016. ACT, Inc. announced a layoff of 80 employees in August 2015, NCS Pearson announced a layoff of 57 employees in April 2016, and International Automotive Components announced a layoff of nearly 500 workers in October 2016. Overall, employment has remained steady as evidenced in the unemployment rate for Iowa City, which continues to remain low at 2.8% for the month of June 2016, as compared to 4.0% for the State of Iowa, and 4.9% for the national average. The rate of new housing construction increased in comparison to the prior year based on the number of building permits issued. This consisted of 137 new single-family houses in 2015 as compared to 176 in 2014; multi -family dwelling units added during fiscal year 2015 was 499, compared to 218 in 2014; and mixed commercial/residential developments added 47 dwelling units in 2015 versus 37 residential units in 2014. Altogether these housing additions totaled 683 units valued at $92,701,042 in 2015 versus a total of 431 units valued at $78,784,970 in 2014. The value of permits for commercial construction decreased by $18,721,859 to $12,241,486 from 2014 to 2015; however, the value of remodeling permits for residential and commercial increased by $3,861,511 to $31,040,841 from 2014 to 2015. According to the 2010 census, the population of Iowa City is 67,862. This is an increase of 5,672 or 9.1% as compared to the 2000 census. Iowa City population in 2015 is estimated to be 74,220 by the U.S. Census Bureau. The stability of the University of Iowa coupled with historically steady employment by the City's multi -sector base of manufacturing and service industries, helped insulate the City from any significant negative economic impacts of the national recession. The City's property valuations continue to rise and along with the low unemployment rate, this is indicative of the City's relative economic stability. 5 Major Initiatives The City of Iowa City, with the assistance of the University of Iowa's Institute of Public Affairs, completed the City's Strategic Plan. The strategic planning process involved multiple steps, including gathering input from the general public, front-line City staff, department directors, and the City Council. The Strategic Plan establishes the following organizational priorities, programs, policies, and initiatives: Promote a Strong and Resilient Local Economy • Identify how the City and local partners can effectively market and grow the local foods economy • Review and consider amending the City's Tax Increment Finance (TIF) policy • Promote neighborhood commercial districts and build stronger relations with business owners throughout the community • Work closely with the University of Iowa and Kirkwood Community College on future facilities and economic development opportunities, especially in the Riverfront Crossings District • Work closely with the ICCSD, Kirkwood Community College, labor organizations, Iowa Works and others to explore the feasibility of an industrial arts/crafts facility in Iowa City • Proactively seek opportunities to facilitate development of our interstate entryways in a manner consistent with this strategic plan • Develop programs aimed to enhance small business development and retention with a focus on diverse communities 2. Encourage a Vibrant and Walkable Urban Core • Consider creating a new City Council committee with a focus on the sustainable built environment • Support historic preservation efforts • Initiate public dialogue about the meaning and importance of a walkable neighborhood and how to achieve it • Encourage diverse housing types and price points for a variety of income levels 3. Foster Healthy Neighborhoods throughout the City • Consider amending the City's Annexation Policy to require the provision of affordable housing in residential/mixed-use areas • Evaluate the implementation of a Form Based Code in one or two parts of the community • Develop strategies to diversify the membership of neighborhood associations • Substantially improve access and use of public spaces through improvements to sidewalks, streetscapes, parks, and schools 4. Maintain a Solid Financial Foundation • Continue to monitor the impact of the 2013 property tax reform and evaluate alternative revenue sources as determined necessary • Continue to build the City's Emergency Fund • Monitor potential changes to Moody's rating criteria and maintain the City's Aaa bond rating • Continue to reduce the City's property tax levy • Maintain healthy fund balances throughout the City's diverse operations 5. Enhance Community Engagement and Intergovernmental Relations • Provide timely and appropriate input on the ICC SD's planned 2017 bond referendum • Televise regular City Council work sessions • Significantly improve the Council and Staffs ability to engage with diverse populations on complex or controversial topics 6. Promote Environmental Sustainability • Raise Iowa City's Bicycle Friendly Community status from Silver to Gold by 2017 and aspire toward a Platinum status in the future • Evaluate and consider implementation of a plastic bag policy • Undertake a project in FY 2017 that achieves a significant measurable carbon emission reduction • Set a substantive and achievable goal for reducing city-wide carbon emissions by 2030, and create an ad-hoc climate change task force, potentially under an umbrella STAR Communities committee, to devise a cost-effective strategy for achieving the goal • Collaborate with community partners on sustainability efforts Advance Social Justice and Racial Equity • Develop and implement a racial / socioeconomic equity review toolkit • Support the Housing First initiative and other local homeless efforts including the temporary winter shelter • Consider creating a City Council committee with a focus on social justice and racial equity • Evaluate initiatives to effectively engage the community's youth • Identify and implement an achievable goal to reduce disproportionality in arrests • Create a racial equity grant program • Develop a partnership with the University of Iowa and other key stakeholders that will aid efforts to recruit and retain a greater minority workforce • Identify a substantive and achievable goal for the provision of affordable housing in Iowa City and implement strategies to achieve this goal The City Council has also promoted private investment and re -development of other targeted areas throughout the community. The areas that are currently being focused on include the Riverfront Crossings area, the Downtown District, the Towncrest commercial area, the Sycamore Mall and First Avenue commercial area, and the Riverside Drive commercial area. The Riverfront Crossing area is an initiative to revitalize the area south of Iowa City's downtown district. This area was hard hit by the flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. The new neighborhood will feature a riverfront park with walking and biking trails, a variety of housing options near shopping, restaurants, a state-of-the-art recital hall and recreational facilities and is a short walk to downtown Iowa City and the University of Iowa campus. The Riverfront Crossings area is anchored by a 76.8 acre area that was formerly comprised of public facilities including the City's north wastewater treatment plant. The City received an $8.5 million hazard mitigation grant from the State of Iowa that allowed the City to remove these public facilities, and then convert the area into a riverfront park and wetland. This work is expected to be completed in 2017. On the north side of the Riverfront Crossing area, the University of Iowa recently completed construction of the Voxman School of Music. There are several public and private developments also under construction in this area including a 12 -story, $33 million Hilton Garden Inn, a $102.5 million mixed-use development with a 14 -story tower and a 15 -story tower that will include a hotel, apartments, retail space, and office space. The City is also constructing a $15.3 million, 600 space parking garage to service the growth in this area. In the Downtown District, the City completed a streetscape plan for the Central Business District which included lighting, landscaping, parking, utility improvements, art work, and pedestrian amenities. Reconstruction, design, and enhancement are under way for the Washington Street corridor, the Black Hawk mini park and the downtown pedestrian mall. Other buildings in the downtown that are undergoing or have recently completed major re- development include the historic Midwest One bank building and the conversion of the city - owned Wilson building and public space. The Wilson Building and public space will be developed into a 15 -story mixed-use development to be known as the Chauncey; this building will have 8 floors of residential units, a 35 unit hotel, two floors of commercial space, a movie theatre and a bowling alley. The project is anticipated to be $49 million and will be assisted with tax increment financing. In the Towncrest commercial area, City staff is working to facilitate redevelopment of several key properties that will improve the function and aesthetic appeal of the area. The Towncrest Urban Renewal Area was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. The first catalyst project approved in the Towncrest Urban Renewal Area was a developer's agreement with MDK Development LLC for the redevelopment of a gas station and a building used for storage into two new office buildings with a combined square footage of 14,500. Total project costs for this development are estimated at $5,200,000. A second major project underway is a Low Income Housing Tax Credit project to construct a $7.4 million, 40 unit senior housing complex on the current site of a dilapidated commercial structure. This project is anticipated to start by the end of 2016. The Sycamore Mall and First Avenue commercial area is a commercial area surrounding the former Sycamore Mall in southeast Iowa City. The departure of an anchor tenant at Sycamore Mall presented a great challenge, but also a unique opportunity to reinvent the commercial space. Mall ownership has commenced plans for physical improvements to the property and a new marketing name of Iowa City Marketplace. The Mall ownership has found a replacement anchor tenant, Lucky's Market, which has remodeled the former space and moved in during the summer of 2015. The City is completing significant capital projects in the area that have lasted two or more construction seasons. These projects include reconstruction of Sycamore Street and Lower Muscatine Road, and a grade separation project on First Avenue including new storm sewer and a railroad underpass. These projects, which are underway in different phases, will each have a positive impact on the traffic flows and aesthetics in this commercial district. 8 The Riverside Drive commercial area is an area that stretches from the University of Iowa campus to the intersection of Highways 1 and 6 and is across the river from the Riverfront Crossings development area. A development in the Riverside Drive area is currently nearing completion for a 4 -story, $16.1 million multi-family/student housing development. Adjacent to this development is commercial construction for new retail space and a gas station/marketplace. The City is also developing a streetscape plan for this area which will include lighting, trails, landscaping, and other amenities and improvements. Adjacent to this area is the City's aging public works complex, which is being targeted for replacement and redevelopment. An appraisal and evaluation as well as a plan for replacement are underway. Long-term Financial Planning It is our intent to support the major initiatives through budget appropriations, departmental operations, and employee direction so that the organization as a whole is moving in the same direction. A significant influence in the preparation of the three-year financial plan (FY16 — FY18) is the passage of property tax reform (SF295) by the state legislature. The property tax reform bill has multiple components including a property tax rollback for commercial and industrial property, steadily reducing the taxable value of these property types. The bill establishes a State backfill for lost property tax revenues to the City due to the commercial and industrial rollback beginning in FY15 and then caps the amount at FY17 levels. The cumulative reduction in commercial and industrial property taxes due to this rollback is estimated to be $15,418,000 over the next ten years. The maximum reimbursement from the State would be $14,732,000 for a net loss in revenues of $686,000. The City received State reimbursement for the commercial and industrial rollback of $1,048,359 in fiscal year 2015 and $2,080,228 in fiscal year 2016. This bill also limits the annual taxable valuation growth of residential and agricultural property to 3 percent, instead of the current 4 percent. Initially, the financial impact will be minimal but over time the consequences of this change will be significant. The effect will be that the taxable percentage of residential property will increase at a slower pace. Without this change, the estimated taxable percentage of residential property would be 60.85% in assessment year 2022. With this provision in place, the estimated taxable percentage in year 2022 will be 55.11%, a reduction of 5.74%. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $20,772,000 over the next ten years and the City will not receive any money from the State due to lost revenue from this provision. SF295 also establishes a multi -residential property classification that will include mobile home parks, assisted living facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties that will basically treat them as residential property, rather than commercial, by the year 2022. The estimated cumulative loss over the next ten years is $15,505,000 and will not be reimbursed by the State of Iowa. The first fiscal year for this new class of property will be fiscal year 2017. With the implementation of SF295, the City estimates the tax revenue losses to be $2,768,000 for FY15 — FY17. Since some of the effects of these reforms are gradual, the magnitude of the losses will not be felt till later years and the total cumulative ten-year loss is anticipated to be $36,963,000, which will affect the City's ability to finance services at current levels without finding other revenue sources or more efficient ways to deliver services. 9 The City's long-term financial planning strategy is to promote targeted economic development, diversify its revenue structure, control spending and create efficiencies and to build adequate reserves and contingencies into its financial structure. In addition, the City is annually reviewing and adjusting its user fees, service charges, and fine structures to try to maintain all of its major enterprise funds with a positive net income after depreciation but before capital contributions, transfers, and extraordinary items. The City also confinues to strive to reduce the City's property tax levy rate to be competitive for economic development purposes. For fiscal year 2013, the levy rate was $17.269 per $1,000 of assessed value. The property tax levy rate has been reduced for four consecutive years to $16.583 in fiscal year 2017. This has been a reduction of $.686 per $1,000 of assessed value or 3.97% over that time period. In looking at expenses for the FY16 — FY18 financial plan, the City will generally experience increased expenditures; however at a modest pace. Bargaining unit wage increases are approximately 2.40% to 2.60% each year; however, the budgeted full time equivalents (FTE) has decreased from 615.66 in FY14 to 599.89 in FY17. In addition, public safety pension contribution rates have decreased in FY17 and are projected to continue to remain stable in FY18. The City had seen virtually no increase in its health insurance premium rates over the previous three years, but in FY17 contribution rates increased by 13.65% due to high claims experience. Employee contributions are expected to increase in FY17, and employee contributions, deductibles, and out-of-pocket maximums are expected to increase in FY18. In balancing the budget for the three-year period, the City attempted to reduce costs where possible while continuing to provide high quality services, identify and eliminate redundancies that may exist within the organization, examine exisfing and potential new revenue sources, promote and plan for economic development and redevelopment throughout the City to ensure strong property values, provide for necessary improvements to exisfing infrastructure, and uphold fiscal integrity and maintain adequate cash reserves. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last thirty-one consecutive years. I believe our current report continues to conform to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA's Award for Disfinguished Budget Presentation for its annual appropriated budget beginning July 1, 2016. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient or outstanding in several categories including policy documentation, financial planning, and organization. This is the fifth consecutive year the City has received this award. 10 Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2016. The City Council, as required by law, is responsible for the complete and accurate preparation of the City's Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the City's Controller, Nicole Knudtson-Davies, Assistant Controller, Sara Sproule, Senior Accountants, Justin Armatis and Katie Downing and Payroll Accountant, Chris Hurlbert. Also, I thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, Dennis Bockenstedt Director of Finance 11 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City Iowa For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 wipw 40-PAOi.."o Executive Director/CEO i> City of Iowa City Organization Chart Community City Council Airport City Attorney Commission Airport Operations City Manager Iowa City Municipal Airport City Manager Communications Office Human Resources Human Rights Cable Television Fire Administration Emergency Operations Fire Prevention Training Finance Administration Accounting Purchasing Revenue Risk Management Information Technology Services Police Administration Administrative Services Field Operations Neighborhood & Development Services Administration Development Services Neighborhood Services Economic Development Metropolitan Planning Organization of Johnson County 13 City Clerk Library Board Library Library Operations Library Foundation Parks & Recreation Administration Recreation Park Maintenance Cemetery Public Works Administration Engineering Streets Wastewater Water Storm Water Equipment Senior Center Transportation & Resource Management Administration Parking Public Transportation Landfill Refuse Collection Mayor Council Member and Mayor Pro Tem Council Member Council Member Council Member Council Member Council Member City Manager City Clerk City Attorney CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2016 ELECTED OFFICIALS Jim Throgmorton Kingsley Botchway II Susan Mims Terry Dickens Rockne Cole Pauline Taylor John Thomas APPOINTED OFFICIALS Geoff Frain Marian K. Karr Eleanor Dilkes DEPARTMENT DIRECTORS Assistant City Manager Director of Neighborhood Development Services Library Director Director of Public Works Director of Transportation Services Senior Center Coordinator Fire Chief Parks and Recreation Director Director of Finance Interim Chief of Police Ashley Monroe Douglas W. Boothroy Susan Craig Ron Knoche Chris O'Brien Linda Kopping John Grier Juli Seydell Johnson Dennis Bockenstedt William Campbell 14 Term Expires January 2, 2020 January 2, 2018 January 2, 2018 January 2, 2018 January 2, 2020 January 2, 2020 January 2, 2020 Date of Hire November 28, 2011 May 21, 1979 March 18, 1996 December 1, 2016 September 22, 1975 July 28, 1975 April 28, 1999 December, 29, 1997 March 20, 1995 August 10, 1992 January 4, 2016 February 15, 2013 April 27, 1990 Financial Section Tabs Eid�� lly CPAs & BUSI]FSS ADVISORS Independent Auditor's Report To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, (City) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 15 www.eideboilly.com 1545 Associates Dr., Ste. 101 1 Dubuque, IA 52002-2299 1 T 563.556.1790 1 F 563.557.7842 1 EOE Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and other required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Iowa City, Iowa's financial statements. The introductory section, combining nonrnajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the financial statements. The combining nonrnajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonrnajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 16 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 12, 2016, on our consideration of the City of Iowa City, Iowa's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Dubuque, Iowa December 12, 2016 17 (This page left blank intentionally.) 18 Management's Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2016. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 — 11 of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Iowa City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year ending June 30, 2016 by $595,338,000 (net position). Of this amount, $87,874,000 (unrestricted net position) may be used to meet the government's ongoing obligations to its citizens and creditors. • The City's total net position increased by $30,614,000 during the fiscal year. Governmental activities increased by $18,222,000 and business -type activities increased by $12,392,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $86,518,000, an increase of $9,492,000 in comparison with the prior year. Of this total amount, approximately $23,366,000 or 27.0% is unassigned and available for spending at the City's discretion. • At the end of the current fiscal year, the City's unassigned fund balance for the General Fund was $23,366,000 or 52.8% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements: The government -wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets and deferred outflows of resources, liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include Public Safety, Public Works (roads and traffic controls), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business -type activities of the City include Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water. The government -wide financial statements may be found on pages 32 — 35 of this report 19 Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements and is typically the basis that is used in developing the next annual budget. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has six major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants, Bridges, Street and Traffic Control Construction Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non -major governmental funds is combined into a single aggregated presentation and are referenced under a single column as "Other Governmental Funds". Individual fund data on each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 36 — 39 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds financial statements provide the same type of information as the government -wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, Stormwater, Housing Authority and Transit Funds are considered to be major funds and are reported individually throughout the report. The other two non -major enterprise funds are grouped together for reporting purposes and listed under a single heading "Other Enterprise Funds". Detailed information for each of the non -major funds is provided in the combining statements on pages 104 — 106. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 40 — 42 of this report 20 Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City's own programs and therefore are not reflected in the government -wide financial statements. The City has one fiduciary fund: Project Green, which is maintained as an agency fund. The basic fiduciary funds financial statements can be found on page 43. Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 44 - 82 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non - major governmental funds, non -major enterprise funds, and internal service funds are presented immediately following the notes. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $595,338,000 at the close of the fiscal year ended June 30, 2016. By far, the largest portion of the City's net position reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa Cily's Net Posifion June 30, 2016 (amounts expressed in thousands) Goverumeutal acfialfies Business -type acfia9fies Total 21 2016 2015 2016 2015 2016 2015 Current and other assets $ 187,556 $ 181,204 $ 116,163 $ 104,844 $ 303,719 $ 286,048 Capital assets 207,222 199,652 319,926 325,429 527,148 525,081 Tota] assets 394,778 380,856 436,089 430,273 830,867 811,129 Deferred outflows ofresources 7,192 6,767 1,217 1,296 8,409 8,063 Long-term liabilities outstanding 94,598 91,815 57,712 62,026 152,310 153,841 Current and other liabilities 13,146 15,864 7,217 7,931 20,363 23,795 Tot al liabilities 107,744 107,679 64,929 69,957 172,673 177,636 Deferred inflows ofresources 70,308 74,248 957 2,584 71,265 76,832 Net position: Net investment in capital assets 163,362 153,729 279,679 279,272 443,041 433,001 Restricted 42,154 36,447 22,269 22,389 64,423 58.836 Unmstaicted 18.402 15,520 69,472 57.367 87.874 72.887 Total net position S 223.918 $ 205,696 S 371.420 S 359.028 S 595.338 S 564.724 21 A portion of the City's net position, $64,423,000 or 10.8%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, $87,874,000 or 14.8%, may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30, 2016, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The following is a more detailed review of FY 16's operation. Governmental Activities: Governmental activities increased the City's net position by $18,222,000. The increase in net position of governmental activities is primarily due to receiving grants to fund expenses for capital assets and community development projects. The total revenues for governmental activities for FY16 were $86,138,000. Governmental activities are primarily funded through taxes, $55,831,000 or 64.8%, and grants and contributions, $13,940,000 or 16.2%. Taxes increased from the prior year by $816,000, mostly due to increased property taxes which was due to an increase in the taxable value of all property. Grants and contributions decreased from prior year by $6,317,000 as the City's expenses for flood mitigation, which were covered by supplemental Community Development Block Grants, have decreased. Expenses for governmental activities totaled $61,603,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY16, Public Safety accounted for the highest portion of governmental expenses, $22,029,000 or 35.8%, and increased slightly over the prior year due to an increase in pension expense. Culture and Recreation expenses of $14,422,000 or 23.4% made up another large portion of the governmental expenses and increased over the prior year due mainly to increases in library operating costs. Public Works expenses of $10,839,000 or 17.6% made up the third highest portion of governmental expenses and decreased from the prior year due to less flood recovery and mitigation projects. Business -type Activities: Business -type activities increased the City's total net position by $12,392,000. The increase in net position was primarily from the Parking and Wastewater Treatment funds. The increase in Parking is due to a sale of land and the increase in the Wastewater Treatment fund is due to transfers from governmental capital project funds. For all business -type activities, revenues exceeded expenses by $6,079,000. Revenues for business -type activities totaled $58,739,000. The primary revenue source for business -type activities is charges for services, $39,953,000 or 68.0%. In addition for FY16, the City's business type - activities had a significant portion, $15,246,000 or 26.0%, of their revenues from grants and contributions used to help fund capital and flood recovery projects for business -type activities. The total expenses for business -type activities in FY16 were $52,660,000. Wastewater Treatment represented the highest portion of business -type activities, $11,866,000 or 22.5%, with Sanitation, $8,735,000 or 16.6%, Housing Authority, $8,378,000 or 15.9%, Water, $8,149,000 or 15.5%, and Transit, $7,486,000 or 14.2%, making up the remainder of the majority of business -type activities expenses. 22 City of Iowa City's Changes in Net Position (amounts expressed in thousands) The graphs on the following pages represent a breakdown of revenue by source and expenses by program area for governmental and business -type activities. 23 Governmental Business -type activities activities Total 2016 2015 2016 2015 2016 2015 Revenues: Program Revenues: Charges for services $ 8,560 $ 8,140 $ 39,953 $ 40,005 $ 48,513 $ 48,145 Operating grants and contributions 9,941 8,701 10,639 10,269 20,580 18,970 Capital grants and contributions 3,999 11,556 4,607 2,880 8,606 14,436 General Revenues: Prop city taxes 53,114 52,205 - - 53,114 52,205 Other taxes 2,717 2,810 - - 2,717 2,810 Grants and contributions not restrcieted to specific purposes 2,080 1,048 - - 2,080 1,048 Fangs on investments 1,045 1,188 715 707 1,760 1,895 Gain on disposal of capital assets 218 135 2,463 856 2,681 991 Other 4,464 5,518 362 374 4,826 5,892 Total revenues 86,138 91,301 58,739 55,091 144,877 146,392 Fxp enses: Public safety 22,029 21,193 - - 22,029 21,193 Public works 10,839 11,037 - - 10,839 11,037 Culture and recreation 14,422 14,049 - - 14,422 14,049 Community and economic development 6,786 7,093 - - 6,786 7,093 General government 6,240 7,752 - - 6,240 7,752 Interest on long-term debt 1,287 1,517 - - 1,287 1,517 Wastewater treatment - - 11,866 12,131 11,866 12,131 Water - - 8,149 8,403 8,149 8,403 Sanitation - - 8,735 8,114 8,735 8,114 Housing authority - - 8,378 7,873 8,378 7,873 Puking - - 4,460 4,678 4,460 4,678 Airport - - 1,597 1,612 1,597 1,612 Stormwater - - 1,989 2,091 1,989 2,091 Cable television - - - 704 - 704 Transit - - 7,486 7,379 7,486 7,379 Total exp msec 61,603 62,641 52,660 52,985 114,263 115,626 Change in net position before transfers and sp ecial item 24,535 28,660 6,079 2,106 30,614 30,766 Transfers (6,395) (10,057) 6,395 10,057 - - Reassignment of Cable Television to governmental activities 82 - (82) - - - Special item - - - (574) - (574) Change in net position 18,222 18,603 12,392 11,589 30,614 30,192 Net position beginning of yen 205,696 187,093 359,028 347,439 564.-74 534,532 Net position end of ear $ 223,918 $ 205.696 $ 371.420 $ 359.028 $ 595.338 $ 564,724 The graphs on the following pages represent a breakdown of revenue by source and expenses by program area for governmental and business -type activities. 23 Governmental Activities FY2016 Revenue by Source Misc. Other Taxes Other Charges for 3% 7% services 10% Property taxes 62% Business -Type Activities FY2016 Revenue by Source Misc. Other Grants and 5% Contributions 26% Charges for services 69% 24 Grants and Contributions 18% 24000 Public , Safety Culture and Recreation Public Works Communitv and Econ Dev General Govt Interest Expense 22,000 20,000 18,000 16,000 14,000 m 12,000 q° 10,000 8,000 6,000 4,000 2,000 0 22,000 20,000 18,000 16,000 14,000 h 12,000 L c 10,000 G1 8,000 6,000 4,000 2,000 0 Governmental Activities FY2016 Expenses by Program Area (amounts expressed in thousands) Program Area Business -Type Activities FY2016 Expenses by Program Area (amounts expressed in thousands) Wastewater Treatment Sanitation Housing Water Authority Transit Parking Stormwater Airport 25 Program Area Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds: The financial reporting focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions effective with the June 30, 2011 financial statements. Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. As of the fiscal year ended June 30, 2016, the City's governmental funds reported combined ending fund balances of $86,518,000, an increase of $9,492,000 in comparison with the prior year. Of this total amount, $23,366,000 constitutes unassigned fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City. The remainder of the fund balance is not available for new spending because of constraints imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted fund balance of $57,241,000 or 66.2% contains external restraints on its use. The committed and assigned fund balances of $4,699,000 or 5.4% and $1,143,000 or 1.3%, respectively, have been identified by the City to be used for specific purposes. The nonspendable fund balance is $69,000 or 0.1%, which the City is contractually required to maintain intact or cannot be spent because it is in a nonspendable format, such as inventories. The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2016, the unassigned fund balance of the General Fund was $23,366,000 while General Fund's total fund balance was $48,252,000. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 52.8% of total General Fund expenditures of $44,289,000, while total fund balance represents 109.0% of that same amount. During the current fiscal year, the fund balance of the City's General Fund decreased by $877,000. This is due to operating expenditures being greater than operating revenues. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $13,171,000, an increase of $4,656,000. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The fund balance in the Other Construction Fund was $8,749,000, an increase of $4,249,000. This fund accounts for the construction or replacement of other governmental general capital assets, such as administrative buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The change in these fund balances is due to timing of the sale of GO bonds. The fund balance for the Other Shared Revenue and Grants Fund was $7,112,000, representing a $1,445,000 increase in FY16. In FY16, the City received a $1,000,000 contribution to be used to fund affordable housing projects. Q The fund balance for the Community Development Block Grant Fund was $449,000, representing a $172,000 increase in FY16. In FY16, the City received program income that we are required to use prior to accessing grant funding. This program income was not fully utilized in FY16 and this fund will normally carry a minimal or zero fund balance going forward. The ending fund balance of the Debt Service Fund was $6,573,000, a decrease of $479,000, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). The fund balance in the Employee Benefits Fund was stable from prior year. The ending fund balance was $1,671,000, an increase of $78,000 or 4.9% from FYI 5. Proprietary Funds: The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The ending net position of the enterprise funds was $357,714,000, an increase in net position of $11,293,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects, transfers of business -type capital assets from governmental capital project funds and a sale of land in the parking fund. Of the enterprise funds' net position, $279,679,000 is net investment in capital assets. Unrestricted net position totaled $55,766,000, an increase of $11,006,000 compared to the previous year. The Internal Service funds showed net position totaling $35,464,000 as of June 30, 2016, an increase of $1,667,000 primarily due to operating income in the Equipment Reserve Fund to build up reserves for future capital outlay. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues by $14,196,000 or 10.4% to a total of $150,244,000 and the expenditure budget by $41,702,000 or 26.4% to a total of $199,689,000. These increases were due primarily to capital projects in governmental and business - type funds because of timing of completion of projects. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business -type activities as of June 30, 2016 amounts to $527,148,000, net of accumulated depreciation. This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other infrastructure represents the value of resources utilized to provide services to its citizens. The City's investment in capital assets for the fiscal year ended June 30, 2016 increased by $7,570,000 for governmental activities compared to the prior year and decreased by $5,503,000 for business - type activities over the prior year. 27 The following table reflects the $527,148,000 investment in capital assets, net of accumulated depreciation. City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Major capital asset events during the current fiscal year included the following: • Work was completed on the South Wastewater Plant Expansion in FY14. This project relocated the North Wastewater Treatment Plant and consolidated operations into the South Wastewater Treatment Plant through expansion of south plant facilities and demolition of the north plant facilities. Demolition of the north plant was started in FY15 and was completed during FY16. Funding for the project was provided by the State of Iowa through sales tax increment funding. Expenses of $1,320,000 were incurred in FY16, with a total cost of $5,053,000. • Work was completed for the West Side Levee Project, which includes the construction of an earthen levee, riverbank stabilization, and interior drainage improvements. The construction in progress balance at the beginning of the year was $4,939,000. Additional expenses of $404,000 were added in FY 16. The total cost of the project that was capitalized was $5,338,000 and is funded primarily through federal or state grants, with the remainder of funding from GO bonds. • Work was completed for the Rocky Shore Lift Station/Flood Gates Project, which includes the construction of a pump station near Rocky Shore Drive and flood gates on the CRANDIC railroad bridge at Rocky Shore Drive to minimize future flooding of the Highway 6 corridor. The construction in progress balance at the beginning of the year was $5,224,000. Additional expenses of $483,000 were added in FY16. The total cost of the project that was capitalized was $5,698,000 and is funded primarily through federal or state grants, with the remainder of funding from GO bonds. • Expenses for a variety of street and bridge construction were moved into construction in progress at the end of FY16 for a total balance of $23,163,000. This construction in progress includes $8,482,000 for the Iowa City Gateway Project, which will reconstruct and elevate Dubuque Street and Park Road Bridge to provide flood protection. This also includes construction in progress of $9,187,000 for the 1� Avenue/IAIS Railroad Crossing Improvements, which will lower 0 Avenue under the IAIS Railroad including a railroad bridge, retaining wall and utilities. Additional information on the City's capital assets can be found in Note 4 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $96,295,000. Of this amount, $55,350,000 comprises debt backed by the full faith and credit of the City. However, $295,000 or .5% of the general obligation bonds is debt that serves enterprise funds and is abated by their charges for services and $4,159,000 or 7.5% of these bonds is debt that will be paid with Tax Increment Financing revenues. $40,945,000 represents revenue bonds secured solely by specific revenue sources. 28 Governmental Business -type Activities Activities Total 2016 2015 2016 2015 2016 2015 Land $ 24,081 $ 23,470 $ 35,590 $ 33,789 $ 59,671 $ 57,259 Buildings 41,126 38,238 60,636 64,051 101,762 102,289 Improvements other than buildings 4,092 3,737 4,703 4,925 8,795 8,662 Machinery and equipment 15,825 14,853 8,596 9,578 24,421 24,431 Infrastructure 97904 94,792 207,756 201,698 305,660 296,490 Construction in progress 24,194 24,562 2,645 11388 26,839 35,950 Total $ 207,222 $ 199,652 $ 319,926 $ 325,429 $ 527,148 $ 525,081 Major capital asset events during the current fiscal year included the following: • Work was completed on the South Wastewater Plant Expansion in FY14. This project relocated the North Wastewater Treatment Plant and consolidated operations into the South Wastewater Treatment Plant through expansion of south plant facilities and demolition of the north plant facilities. Demolition of the north plant was started in FY15 and was completed during FY16. Funding for the project was provided by the State of Iowa through sales tax increment funding. Expenses of $1,320,000 were incurred in FY16, with a total cost of $5,053,000. • Work was completed for the West Side Levee Project, which includes the construction of an earthen levee, riverbank stabilization, and interior drainage improvements. The construction in progress balance at the beginning of the year was $4,939,000. Additional expenses of $404,000 were added in FY 16. The total cost of the project that was capitalized was $5,338,000 and is funded primarily through federal or state grants, with the remainder of funding from GO bonds. • Work was completed for the Rocky Shore Lift Station/Flood Gates Project, which includes the construction of a pump station near Rocky Shore Drive and flood gates on the CRANDIC railroad bridge at Rocky Shore Drive to minimize future flooding of the Highway 6 corridor. The construction in progress balance at the beginning of the year was $5,224,000. Additional expenses of $483,000 were added in FY16. The total cost of the project that was capitalized was $5,698,000 and is funded primarily through federal or state grants, with the remainder of funding from GO bonds. • Expenses for a variety of street and bridge construction were moved into construction in progress at the end of FY16 for a total balance of $23,163,000. This construction in progress includes $8,482,000 for the Iowa City Gateway Project, which will reconstruct and elevate Dubuque Street and Park Road Bridge to provide flood protection. This also includes construction in progress of $9,187,000 for the 1� Avenue/IAIS Railroad Crossing Improvements, which will lower 0 Avenue under the IAIS Railroad including a railroad bridge, retaining wall and utilities. Additional information on the City's capital assets can be found in Note 4 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $96,295,000. Of this amount, $55,350,000 comprises debt backed by the full faith and credit of the City. However, $295,000 or .5% of the general obligation bonds is debt that serves enterprise funds and is abated by their charges for services and $4,159,000 or 7.5% of these bonds is debt that will be paid with Tax Increment Financing revenues. $40,945,000 represents revenue bonds secured solely by specific revenue sources. 28 City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business -type Activities Activities 2016 2015 2016 2015 General obligation bonds $ 55,055 $ 58.750 $ 295 $ 590 Revenue bonds 2,525 2.655 38,420 44.950 Total $ 57.580 $ 61.405 $ 38.715 $ 45.540 Total 2016 2015 $ 55.350 $ 59.340 40.945 47.605 $ 96295 $ 106.945 The City issued $9,405,000 General Obligation bonds during FY16 and during the current fiscal year the City's total bonded debt decreased by $10,650,000 because of retirement of debt. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of June 30, 2016 were as follows: General obligation bonds Wastewater treatment revenue bonds Water revenue bonds Aaa Aa2 Aa2 The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403 (tax increment). The current debt limitation for the City is $247,528,000. With outstanding debt applicable to this limit of $71,963,000 we are utilizing 29.1% of this limit. More detailed information on debt administration is provided in Note 5 of the financial statements. Economic Factors and Next Year's Budget and Rates During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee tax as a revenue alternative to property tax. The Iowa City Council passed a local franchise fee tax of 1% on natural gas and electricity that became effective April 1, 2010. This revenue is being utilized to support additional public safety initiatives, including operating a fourth fire station. In FY16, the City collected $874,000 in local franchise fee. 29 The City expects continued constraints by the State's property tax formula. The State passed property tax reform, which will negatively affect the City's general operating funds. Without the potential for new revenue sources, like those mentioned above, the City's opportunities for new initiatives are limited. The Council has established a balanced budget in the General Fund for FY 17 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FY17 is provided below: General Levy $ 8.100 Debt Service Levy 3.829 Employee Benefits Levy 3.144 Transit Levy 0.950 Liability Insurance Levy 0.290 Library Levy 0.270 Total City Levy $ 16.583 Requests for Information This report is designed to provide a general overview of the City of Iowa City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 410 East Washington Street, Iowa City, IA, 52240. 30 31 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION June 30, 2016 (amounts expressed in thousands) Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Internal balances Due from other governments Prepaid item Inventories Assets held for resale Restricted assets: Equity in pooled cash and investments Other post employment benefits asset Capital assets: Land and construction in progress Other capital assets (net of accumulated depreciation) Total assets Deferred Outflows of Resources Pension related deferred outflows Liabilities Accounts payable Contracts payable Accrued liabilities Interest payable Deposits Advances from grantors Due to other governments Notes payable Unearned revenue Noncurrent liabilities: Due within one year: Employee vested benefits Bonds payable Due in more than one year: Employee vested benefits Net pension liability Other post employment benefits obligation Notes payable Bonds payable Landfill closure/post-closure liability Total liabilities Governmental Business -type Activities Activities Total $ 84,052 $ 62,377 $ 146,429 55,482 - 55,482 953 3,164 4,117 284 246 530 16,252 588 16,840 (13,688) 13,688 - 5,987 2,448 8,435 10 - 10 688 731 1,419 582 73 655 36,914 32,844 69,758 40 4 44 48,275 158,947 38,235 281,691 86,510 440,638 394,778 436,089 830,867 7,192 1,217 8,409 3,374 1,207 4,581 2,773 3,269 6,042 4,143 406 4,549 110 847 957 1,715 1,379 3,094 47 - 47 402 95 497 582 - 582 - 14 14 1,185 394 1,579 10,384 5,615 15,999 947 286 1,233 30,539 7,418 37,957 3,227 1,099 4,326 211 - 211 48,105 34,632 82,737 - 8,268 8,268 $ 107,744 $ 64,929 $ 172,673 32 (continued) CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION (continued) Deferred inflows of resources Pension related deferred inflows Succeeding year property taxes Notes Grants Total deferred inflows of resources Net position Net investment in capital assets Restricted for or by: Employee benefits Capital projects Debt service Police Other purposes Bond ordinance State statute Future improvements Grant agreement Unrestricted Total net position June 30, 2016 (amounts expressed in thousands) Governmental Business -type Activities Activities Total $ 3,740 $ 957 $ 4,697 55,330 - 55,330 11,226 - 11,226 12 - 12 70,308 957 71,265 163,362 279,679 443,041 1,671 - 1,671 31,456 - 31,456 6,463 - 6,463 458 - 458 1,657 - 1,657 - 12,739 12,739 - 6,109 6,109 - 486 486 449 2,935 3,384 18,402 69,472 87,874 $ 223.918 $ 371.420 $ 595.338 The notes to the financial statements are an integral part of this statement. 33 Functions/Programs: Expenses Governmental activities: Public safety $ 22,029 Public works 10,839 Culture and recreation 14,422 Community and economic development 6,786 General government 6,240 Interest on long-term debt 1,287 Total governmental activities 61,603 CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2016 (amounts expressed in thousands) Program Revenues Operating Capital Charges Grants and Grants and for Services Contributions Contributions $ 4,813 $ 277 $ 970 628 8,366 2,843 823 25 39 1,044 1,273 147 1,252 - - 8,560 9,941 3,999 Business -type activities: Wastewater treatment 11,866 12,266 - 3,415 Water 8,149 9,134 - 254 Sanitation 8,735 9,215 3 - Housing authority 8,378 300 8,318 - Parking 4,460 5,438 - - Airport 1,597 333 128 260 Stormwater 1,989 1,168 95 370 Transit 7,486 2,099 2,095 308 Total business -type activities 52,660 39,953 10,639 4,607 Total $ 114,263 $ 48,513 $ 20,580 $ 8,606 General revenues: Property taxes, levied for general purposes Hotel/motel tax Gas and electric tax Utility franchise tax Grants and contributions not restricted to specific purposes Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Reassignment of Cable Television to governmental activities Total general revenues and transfers Changes in net position Net position beginning of year Net position end of year The notes to the financial statements are an integral part of this statement. 34 Net (Expense) Revenue and Changes in Net Position Governmental Business -type 53,114 Activities Activities Total $ (15,969) $ - $ (15,969) 998 - 998 (13,535) - (13,535) (4,322) - (4,322) (4,988) - (4,988) (1,287) - (1,287) (39,103) - (39,103) - 3,815 3,815 - 1,239 1,239 - 483 483 - 240 240 - 978 978 - (876) (876) - (356) (356) - (2,984) (2,984) - 2,539 2,539 (39,103) 2,539 (36,564) 53,114 - 53,114 1,079 - 1,079 764 - 764 874 - 874 2,080 - 2,080 1,045 715 1,760 218 2,463 2,681 4,464 362 4,826 (6,395) 6,395 - 82 (82) - 57,325 9,853 67,178 18,222 12,392 30,614 205,696 359,028 564,724 $ 223,918 $ 371,420 $ 595,338 35 CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2016 (amounts expressed in thousmds) The notes to the financial statements are on msegra/gmi of this statement 36 C PBal Special Revenae Projects Bridge Community Other Street, and Development Shand Traffic Other Employee Block Revenue and Control Debt Governmental General Benefits Grant Grants Constndim Service Foods Total Assess Equity in pooled cash and investments $ 30,214 $ 1,697 $ 552 $ 5,590 $ 8,535 $ 5,955 $ 2,226 $ 54,769 Receivables: Property ne, 31,825 10,410 - - - 12,955 292 55,482 Accounts and unbilled usage 449 - - 4 150 - 206 809 interest 163 - - - 19 10 19 211 Notes 1,305 - 14,512 - - 435 - 16,252 Advances to other funds - - 18 - - 138 - 156 Due from other governments 1,758 302 31 648 2,051 - 1,154 5,944 Inventories - - - 217 - - - 217 Prepaiditem 10 - - - - - - 10 Assets held for resale 582 - - - - - - 582 Resin eted assets: Egmty in pooled cash and investmeaC 21.277 1,011 7.87' 6.751 36,914 Total assets $ 87.583 $ 12,409 $ 15,113 $ 7.470 $ 18.630 $ 19.493 $ 10.648 $ 171,346 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 1,376 $ 53 $ 127 S 118 S 504 $ - $ 165 $ 2,343 Contacts payable - - - - 2,543 - 230 2,773 Accrued liabilities 1,141 1 7 71 12 - 14 1,246 Advances from other funds - - - 138 - - - 138 Due to other governments 29 - - 6 367 - - 402 Notes payable 582 - - - - - - 582 Liabifid es payable from restricted assets Deposits 1,710 - - 5 - - - 1,715 Advances from grantors 47 47 Total habifities 4,838 54 134 338 3,426 456 9,246 Deferred inflows of resoames Unavailable revenues: Succeeding year property taxes 31,739 10,382 - - - 12,920 289 55,330 Notes 1,305 - 14,530 - - - - 15,835 Grants 15 - - 16 1,673 - 524 2,228 Other 1,434 302 4 360 89 2,189 Total deferred inflows ofresources 34,493 10,684 14,530 20 2,033 12,920 902 75,582 Food balances: Nonspendable 69 - - - - - - 69 Restricted 18,975 1,671 449 7,112 13,171 6,573 9,290 57,241 Committed 4,699 - - - - - - 4,699 Assigned 1,143 - - - - - - 1,143 Unassigned 23,366 23,366 Total fund balances 48.252 1.671 449 7,112 13.171 6.573 9,290 86,518 Total habifid es. deferred inflows ofresouraw and food balances $ 87.583 $ 12.409 $ 15,113 $ 7.470 $ 18.630 $ 19.493 $ 10.648 $ 171.346 The notes to the financial statements are on msegra/gmi of this statement 36 CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2016 (amounts expressed in thousands) Total governmental fund balances $ 86,518 Amounts reported for governmental activities in the statement of net position are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Other long-term assets are not available to pay for current period expenditures and therefore are unavailable in the funds: Notes, grants and other receivables - Earned but unavailable. Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Pension related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period and therefore are not reported in the funds. Deferred outflows of resources Deferred inflows of resources Net pension liabilities are not due and payable in the current period and therefore are not reported in the funds. Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. Bonds payable are not due and payable in the current period and therefore are not reported in the funds. Notes payable are not due and payable in the current period and therefore are not reported in the funds. Accrued interest on bonds Internal balance due to integration of internal service funds Total net position of governmental activities The notes to the financial statements are an integral part of this statement 37 35,464 9,014 196,596 $ 6,997 (3,596) 3,401 (29,391) (2,029) (3,139) (58,489) (211) (110) (13,706) $ 223,918 CITY OF IOWA CITY. IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FOND BALANCES GOVERNMENTAL FUNDS Revenues Taxes Licenses and pernuts Intergovernmental Charges for services Fines and forfeits Use of money and property Miscellaneous Total revenues Eapeuditures Current Public safety Pubficworks Culture and recreation Community and economic development Generelgovemment Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) ofrevenues over (under) expenditures Other Financing Sources (Uses) Issuance of debt Sale of capital assets Premiums on issuance of bonds Tiaansfersin Transfers out Total other financing sources and (uses) Net change in fund balances Fuud Balauces,Begm.mg Fuud Balauces,Ending For the Year Ended June 30, 2016 (amounts expressed in thousands) Capital Sped at Revenue Projects Bridge. Community Other Sheet, and Development Shared Traffic Other 13,230 - 13,230 - - - - - 1,475 - 1,475 1.651 662 10,219 2,316 14,848 44289 1,055 1,407 5,913 12,475 14,753 4,438 84,330 (692) Employee Block Revenue and Control Debt Govemmantal 2,763 General Benefits Omnt Grants Construction Service Funds Total $ 32,229 $ 9,805 $ - $ - $ - $ 12,505 $ 1,292 $ 55,831 3,056 - - - - - - 3,056 3,830 383 789 8,750 2,589 484 3,405 20,230 1,543 327 - 1,043 49 - 395 3,357 760 - - - - - - 760 749 - 23 72 24 46 32 946 1,430 2 792 46 32 233 378 2,913 43,597 10.517 1,604 9.911 2.694 13,268 5,502 87,093 20,967 677 - - - - 57 21,701 1,312 - - 5,166 2,256 - 732 9,466 12,038 - - - - - 219 12,257 2,842 - 1,407 85 - - 1,012 5,346 5,479 378 - - - 48 102 6,007 13,230 - 13,230 - - - - - 1,475 - 1,475 1.651 662 10,219 2,316 14,848 44289 1,055 1,407 5,913 12,475 14,753 4,438 84,330 (692) 9,462 197 3,998 (9,781) (1,485) 1,064 2,763 - - - - 6,310 41 3,054 9,405 252 - - - - - - 252 - - - - 296 2 143 441 10,692 - - 615 10,576 963 2,287 25,133 (11,129) (9,384) (25) (3,168) (2,745) (2,051) (28,502) (185) (9,384) (25) (2,553) 14,437 1,006 3,433 6,729 (877) 78 172 1.445 4.656 (479) 4,497 9,492 49,129 1,593 277 4,66" 8'L" 7.052 4,793 77,026 $ 48252 $ 1.611 $ 449 $ -AII $ 131-1 $ 6.573 $ 9,290 $ 86,518 The notes to the femncial statemerds are am integral part of this statement 38 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2016 (amounts expressed in thousands) Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets Transfers of capital assets (to)\from enterprise funds - net Reassignment of capital assets to governmental activities Capital assets contributed Depreciation expense Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Debt issued Premium on bonds issued Repayments of debt Amortization of premium Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues in the governmental funds. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued compensated absences Pension expense Change in accrued post employment benefit obligations Change in accrued interest on debt In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital asset sold. Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. Change in net position of governmental activities The notes to the financial statements are an integral part of this statement. 39 $ 14,929 (3,169) 390 553 (6,434) (9,405) (441) 13,230 167 9,492 6,269 3,551 (2,419) (53) 1,433 (285) 21 (355) 568 $ 18.222 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION June 30, 2016 (amo ads expressed in thousands) Net Pasid. Net investment in capital assets 13,149 108,785 55,418 11,306 45,869 1,737 15,420 27,995 279,679 10,626 Restricted by bond ordinance - 8,891 3,848 - - - - - 12,739 - Restrietedbystar, staNte _ _ _ 6,109 _ _ _ _ 6,109 _ Restricted for future improvements 386 - - - - - - 100 486 - Restrietedbygrant agreement - - - - - 2,935 - - 2,935 - Umestrieted 7,696 17,376 7,897 13,982 1,317 3,477 3,573 448 55,766 24,838 Total vet position $21,231 $ 135.052 $ 67.163 $ 31,397 $47,186 $ 8,149 $18993 $28,543 $ 357,714 $ 35.464 Adjustment to resect do, consolidation of internal service food activities related to enterprise foods. 13,706 Net position ofbusiness-type activities $ 371,420 The uou s to rhe fi mneml sraremmrs a.e an mreg al pa ofrhis sraremenr. 40 Gov ental Business -type Activities-Enterprisc Foods Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Storrosu r Authority Transit Foods Total Foods Assets Current assets: Equity in pooled cash and investments $10944 $ 18,210 $ 8,481 $ 13,326 $ 1,287 $ 3,465 $ 6,178 $ 486 $ 62,377 29,283 Receivables: Accounts and unbilled usage 10 1,454 919 613 129 2 10 27 3,164 144 Interest 26 81 33 36 4 54 12 - 246 73 Notes - - - - - 588 - - 588 - Advances tootherfunds - - - 2,130 - - - - 2,130 - Din, fromothergovvrunents - 2,036 1 16 167 10 51 167 2,448 43 Inventories - - 451 - - - 280 - 731 471 Assets held for resale 73 73 Total current assets 10,980 21,781 9.885 16.121 1,587 4,192 6,531 680 71.757 30,014 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 387 9,460 5,026 14,401 - 3,408 51 111 32,844 - Otherpost employmentbeuefitsassct - - - - - - - 4 4 40 Capital assets: Land 3,746 5,612 6,296 2,264 2,264 620 2,630 12,158 35,590 45 Buildings 26,249 36,858 24,019 5,467 - 5,350 15,399 5,145 118,487 1,541 Improvements other than buildings 328 7,119 2,511 421 - 9 - 396 10,784 50 Macdunery and equipment 1,459 7,392 10,783 424 259 116 10,381 281 31,095 20,937 Infrastructure - 148,382 60,602 16,078 54,578 - 955 17,523 298,118 2,416 Accumulated depreciation (18,633) (71,529) (34,396) (13,474) (12,733) (4,358) (13945) (7,725) (176,793) (14,579) Construction in progress 52 749 126 1,501 217 2,645 216 Total noncurrent assets 13,536 143,346 75,590 25,707 45,869 5,145 15,471 28,110 352,774 10,666 Total assets 24,516 165,127 85,475 41,828 47.456 9,337 22,002 28,790 424,531 40.680 Deferred OuHlmrs ofResaurces Pmsion related dcfmtd outflows $ 137 $ 195 $ 223 $ 218 $ 18 $ 80 $ 339 $ 7 $ 1,217 $ 195 Liabilities Cuunraliabilities: Accountspayablc $ 85 $ 166 $ 16 $ 285 169 $ 21 $ 460 $ 5 $ 1,207 $ 1,031 Contractspayablc 27 2,713 249 91 - - - 189 3,269 - Accrucdliabilities 42 62 70 70 8 25 127 2 406 2,897 Employee vested benefits 35 58 72 78 2 31 116 2 394 57 Due to other govwrunents - - 18 3 - 30 44 - 95 - Uneamcdrevenae _ _ _ _ 14 _ _ _ 14 _ Interestpayable - 568 279 - - - - - 847 - Bondcd debt payable (vet ofooamordzed premium and discounts) 3,820 1,795 5.615 Total current liabilities 189 7.387 2,499 527 193 107 747 198 11.847 3,985 Noneurrentliabilities: Liabilities payable from restricted assets: Deposits 2 - 880 8 - 473 6 10 1,379 - Advanees from other foods 2,130 - - - - 18 - - 2,148 - Employcevestedbenefits 25 41 55 58 1 23 82 1 286 46 Bondcd debt payable (vet ofunamortized premium and discounts) - 21,281 13,351 - - - - - 34,632 - Netpensionliability 820 1,223 1,385 1,372 85 507 1,986 40 7,418 1,148 Other post employment benefits obligation 148 169 187 239 - 68 288 - 1,099 88 Landfill closure/postclosure liability 8,268 8,268 Total noncurrent liabilities 3,125 22,714 15,858 9,945 86 1,089 2,362 51 55,230 1,282 Total liabilities 3,314 30,101 18,357 10,472 279 1,196 3,109 249 67,077 5,267 Deferred InBmrs ofResaurces Pursion related dcfmcd inflows 108 169 178 177 9 72 239 5 957 144 Net Pasid. Net investment in capital assets 13,149 108,785 55,418 11,306 45,869 1,737 15,420 27,995 279,679 10,626 Restricted by bond ordinance - 8,891 3,848 - - - - - 12,739 - Restrietedbystar, staNte _ _ _ 6,109 _ _ _ _ 6,109 _ Restricted for future improvements 386 - - - - - - 100 486 - Restrietedbygrant agreement - - - - - 2,935 - - 2,935 - Umestrieted 7,696 17,376 7,897 13,982 1,317 3,477 3,573 448 55,766 24,838 Total vet position $21,231 $ 135.052 $ 67.163 $ 31,397 $47,186 $ 8,149 $18993 $28,543 $ 357,714 $ 35.464 Adjustment to resect do, consolidation of internal service food activities related to enterprise foods. 13,706 Net position ofbusiness-type activities $ 371,420 The uou s to rhe fi mneml sraremmrs a.e an mreg al pa ofrhis sraremenr. 40 c«�rcaawvc«.rwwv� STATEMENT OF R ENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended June 30.2016 (amounts expressed in thousands) Govenmental Business -type Activities - Enterprise Funds Activifies - Other Internal Wastewater Housing Entered se Service Parking Treatment Water Studied. Stornhwater Authority Transit Funds Total Funds Operating Revenue: Charges for services $ 5,438 $ 12,266 $ 9,134 $ 9,215 $ 1,168 $ 300 $ 2,099 $ 333 $ 39,953 $ 16,762 Miscellaneous 40 94 17 62 87 59 3 362 Total operating revenues 5,478 12,360 9,151 9,277 1,168 387 2.158 336 40,315 16,762 Operating Expense: Personal servi ces Commodities Services and charges Depredation Total operating expenses Operating income dLoss) Nonoperating Reveuue(Expensesp Gain (Loss) on di spwsal of capital assets Operating grants Interest income Interest expense Total nonopemting revenues (expenses) Income (Loss) befom capital contributions 1,781 2,808 3,115 2,733 305 864 3,763 72 15,441 2,106 578 1,421 578 160 378 9 691 171 3,986 1,617 1,304 2,284 1,694 4,874 192 7,373 1,985 393 20,099 10,529 3,663 6,513 5,387 7,767 875 8,246 6,439 636 39,526 14,252 808 4,484 2,295 1,387 1,113 122 1,030 975 12,214 1,714 4,471 10,997 7,682 9,154 1,988 8,368 7,469 1,611 51,740 15,966 1,007 1,363 1,469 123 820 7,981 5,311 1,275 (11,425) 796 2,450 - 8 (229) - 2 3 - 2,234 294 - - - 3 95 8,318 2,095 128 10,639 - 37 321 172 123 6 32 19 5 715 99 - (927) (528) - - - - - (1,455) - $ 2.487 $ (606) $ 348 $ 103 $ 101 $ 8,352 $ 2,117 $ 133 $ 12,133 $ 393 andtransfers 3,494 757 1,121 20 (719) 371 (3,194) (1,142) 708 Capital contributions - 3,839 674 - 2,695 - 308 260 7,776 Transfersin - 195 985 24 2,191 - 3,108 152 6,655 Transfers out - (522) (720) (334) (572) (45) - (1,571) (3,764) Reassignment of Cable Television to governmental activide - - - - - - - 82 (82) Cbmgein netposition 3,494 4,269 2,060 (290) 3,595 326 222 (2,383) 11,293 Net Position,Beginning 17,737 130,783 65,103 31,687 43,591 7,823 18,771 30,926 Net Position, Ending $21231 $135.052 $67.163 $31.397 $47.186 $8.149 $18993 $28.543 Adjustment to reflect the coasdidation of internal senice fond acuvibes related to enterprise funds 1,099 Cb ange in net position album nese-type adivifies $ 12,392 The rotes to the finmhcial statements are an intep'al part of this statement. 41 1,189 528 (50) 1.667 33'97 $ 35.464 Cash Flims From Caphal and Related Finan dog Adwfi s Capftalgravt,rec OJ - CITY OFIOWA CITY, IOWA - - - - 308 907 3,265 - Acquisitionandconstructionofpr,y and 9,668 276 STATEAH7s'1 OF CASH FLOWS 4,624 26,504 13,634 25,876 equipment (6) (1,545) (1,813) (554) (2,233) PROPRIETARY FL1T1S (122) (6,674) (3;372) Pr.c sfiom sale Aff,er 5,503 - 8 - - 2 4 ForfeYearEnde Joue30,2016 5,517 296 Principal paid On bender] debt - (3,708) (1,806) - - - - - (mmwnts e*Pr div thousavdsJ - Interest paidovbmdxldebt - (1380) (542 - - - - - (1,922)Net rush flows h® (user] for) mpital and mhted Gove mmenhl Rae ablest Busweis-Npe Ac[esdies-Enda riseFuvd, (4,583) (4,153) (554) (2,233) 2 (89) Activifies- (5328) (3,076) Cash Floes From Investlag Aothmes Accouu6 and unbiperl usage (7) Other 26 Interval (1) Interest oni effiuen6 Wastewater 308 Housing 33 19 Erde rise 710 Sice ery 5 Ihrkmg Trntnama Water Sanitation Stmmwater AuNnity Transit Fonds Total Foods Cash Floes From Openthrg Activites - - (94) - - - (7) - Remptsh®oust®ersand users $ 5,192 $ 12,318 $9,309 $ 9,329 $ 1,181 $ 478 $ 1,884 $ 338 $40,029 $ 16,964 laavmem tosuppl� (LTN) (3,719) (2,571) (4,178) (642) (7,456) (2,404) (574) (23,498) (11,575) laavmem toemplovees (1,831) (2,849) (3,] (2,812) (307) (88]) (3,812) (74) (15,733) (2,428) Nelcash flows h® (user] for) a em mg activities 1,407 5,750 3,571 2,339 232 (7,859) (4332) (310) 798 2,761 Cash Floes From Nonnp Tal Financing Acfiviles (13) 6 1 3 (4) 7 (1) (24) (lmmsreceesxl - 18 - - 165 8,332 2,095 317 10,927 - Tvvsfersfi®other foods - 195 985 24 2,191 - 3,108 152 6,655 528 Tmvsfas to other foods - (522) (720) (334) (572) (45) - (1,526) (3,719) (50) Repaym®tl(pavnsat) ofnots receivable - - - - - 87 - - 87 - Repavmentofadvaveesh®older foods (221) - - - - - (30) (462) (713) - Repaymentofa&.a es to otherfiords251 - - - - - - - 251 - Not cash flows h® (user] for) vcumpital finandng 1 Deferterl inflows ofr,.e (168) (245) (288) (284) (19) 000) activifies (221) (309) 265 (59) 1,784 8,374 5,173 (1,519) 13,488 478 Cash Flims From Caphal and Related Finan dog Adwfi s Capftalgravt,rec OJ - 2,050 - - - - 308 907 3,265 - Acquisitionandconstructionofpr,y and 9,668 276 Cash and Cash Equivakots, Regunn im 4,624 26,504 13,634 25,876 equipment (6) (1,545) (1,813) (554) (2,233) - (401) (122) (6,674) (3;372) Pr.c sfiom sale Aff,er 5,503 - 8 - - 2 4 - 5,517 296 Principal paid On bender] debt - (3,708) (1,806) - - - - - (5,514) - Interest paidovbmdxldebt - (1380) (542 - - - - - (1,922)Net rush flows h® (user] for) mpital and mhted Rae ablest fhoochgadivitvs 5,497 (4,583) (4,153) (554) (2,233) 2 (89) 785 (5328) (3,076) Cash Floes From Investlag Aothmes Accouu6 and unbiperl usage (7) (41) 26 W (1) Interest oni effiuen6 24 308 190 125 6 33 19 5 710 113 Net iv¢nse(da ease) in cash and cash Wvalems 6,707 1,166 (127) 1,851 (211) 550 771 (1,039) 9,668 276 Cash and Cash Equivakots, Regunn im 4,624 26,504 13,634 25,876 1,498 6,323 5,458 1,636 85,553 29,007 Cash and Cash Equivaknts, Eo ding $11331 $ 27,670 $1� $ 27,727 $ 1287 $ 6,873 $ 6,229 $ 597 $95221 $ 29283 Reconciliation of operating income (lass) to n cash floes from op Seting activitis Operafmginc®e(I.) $ 1,007 $ 1,363 $ 1,469 $ 123 $ (820) $ (7,98]) $ (5311) $ (1,275) $(11,425) $ 7% Adjustments to mcondle eperatmg income (less) to et cash flows l®(m d for)opevtia, actmfis_ Depredation eapevse $08 4,484 2,25 1,387 1,113 122 1,030 975 12,214 1,714 Changs in Rae ablest Accouu6 and unbiperl usage (7) (41) 26 W (1) (1) (1) 1 36 (45) Duel®othm governments - (1) 5 (9) - - 3 - (2) 47 Iv euro es - - (94) - - - (7) - (101) 37 Assets hell for resale - - - - - (73) - - (73) - A.md payable (72) (14) (188) 161 (72) (10) 271 (10) 66 534 Acerved liabilities - 8 9 (1) 3 4 22 - 45 (260) Rmpmveevesterl benefits (23) (13) 6 1 3 (4) 7 (1) (24) 3 Duetoothergovemmen6 - - (17) - - 9 8 - - - Uneame rsenue (280) - - - 14 (11) (276) - (553) Deposits 1 - 127 1 - 103 - 1 233 - Net pmsimhabilh 125 181 213 210 14 74 315 6 1,138 180 Deferterl euttlows ofrscurces 1 7 12 14 (3) 3 5 - 39 1 Deferterl inflows ofr,.e (168) (245) (288) (284) (19) 000) (425) (8) (1,537) (241) Older xst employmem bmefitsassWoblgat6n 15 21 (4) (19) - 6 27 1 47 (5) Landfill clevmipestdesme liability 695 695 TcdaIadj.shm,ms 400 4,387 X102 X216 1,052 122 979 965 12,223 ],965 Net cash flows fiom(u dfor)op mthig activities $ 1,407 $ 5,750 $$ 3,541 $ 2,339 $ 232 $ (7,859) $ (4332) $ (310) $ 798 $ 2,761 Fonnsh lovestia , Caphal, and Fina ®gAdiwhies. Conllbufiens ofcapital assets l® gove mmem and others $ - $ 643 $ 674 $ - $ 2,695 $ - $ - $ - $ 4,012 $ - The cores roehef iai sfeon. ee miiHegraipar ofrinssrmemeH. 42 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2016 (amounts expressed in thousands) Agency Funds Assets Equity in pooled cash and investments $ 175 Total assets $ 175 Liabilities Accounts payable $ 10 Due to agency 165 Total liabilities $ 175 The notes to the financial statements are an integral part of this statement. 43 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2016 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations), cable television, and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounfing Standards Board (GASB) is the accepted standard-setfing body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. There were no component units required to be included. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non -fiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of inter -fund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus." The government -wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 The Other Shared Revenue and Grants Fund accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Bridge, Street, and Traffic Control Construction Fund accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. The Debt Service Fund accounts for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the "on" and "off' street public parking facilities. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Stormwater Fund is used to account for the operation and maintenance of the stormwater utility system. The Housing Authority Fund is used to account for the operations and activities of the City's low and moderate income housing assistance and public housing programs. The Transit Fund is used to account for the operation and maintenance of the public transportation system. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund which is maintained as an agency fund, with no attempt to create an ongoing fund balance. The fund in this category is Project Green, which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Proprietary funds disfinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operafing revenues of the City's enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meefing this definition are reported as non-operafing revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of other post employment benefit obligation, net pension liability, landfill closure and post -closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and non -restricted investments with a maturity of three months or less when purchased are considered cash equivalents. Receivables and Revenue Recognition Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, it will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the Other Shared Revenue and Grants Fund, Transit Fund, Water Fund, and the Equipment Maintenance Fund. Inventories of materials and supplies are determined by actual count and priced on the FIFO method. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. The City follows the policy of not requiring capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for buildings and improvements, and $5,000 for equipment assets. Such assets are recorded at original purchase cost or at acquisition value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 — 100 years Buildings and structures 20 — 50 years Improvements other than buildings 10 — 50 years Vehicles 2 — 20 years Other equipment 3 — 30 years Deferred Outflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension expense and contributions from the employer after the measurement date but before the end of the employer's reporting period. Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government -wide statements, they are amortized over the life of the bonds. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee's then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System (Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 7). Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues are measureable, they are not available. Available means collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources in the governmental fund financial statements represent the amount of assets that have been recognized, but the related revenue has not been recognized since the assets are not collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources consist of property tax receivable, notes receivable, grants receivable and other receivables. Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax receivable that will not be recognized as revenue until the year for which they are levied, notes receivable that will not be recognized as revenue until the year for which the payment is received and the unamortized portion of pension related items. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and constitutes the City's appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business-type/enterprise b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out The legal level of control (the level at which expenditures may not legally exceed appropriations) is the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City's budget for revenue focuses on aggregated totals by revenue source. The City formally adopts budgets for several funds that are not required by state law to be included in the annual function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $18,047,566 in revenues and other financing sources and by $41,082,734 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 As allowed by GASB Statement No. 41, Budgetary Comparison Schedules —Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. Classification of Fund Balances Fund balances for the governmental funds are reported in classifications based on the nature of any limitations requiring the use of resources for specific purposes (see Note 9). 2. Cash and Pooled Investments The City's deposits in banks at June 30, 2016 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open—end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; certain joint investment trusts; and warrants or improvement certificates of a drainage district. At June 30, 2016 the City had the following investments: Fair Investment Value Maturity Federal Home Loan Bank Note 52,040,000 December 2016 United States Treasury Note 503,750 May 2018 52,543,750 The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 The recurring fair value measurement for the Federal Home Loan Bank securities of $2,040,000 and the United States Treasury securities of $503,750 were determined using the last reported sales price at current exchange rates (Level 1 inputs). In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $1,500,000 pursuant to Rule 2a-7 under the Investment Company Act of 1940. The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. Interest rate risk - The City's investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund's portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. The aforementioned Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 3. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2016, consisted of the following: Advances from Advances to: Parking Housing Authority Other Shared Revenue and Grants Total Community Development Debt Block Grant Service Sanitation $ - $ - $ 2,129,525 18,000 - Total $ 2,129,525 18,000 - 137,817 - 137,817 $ 18,000 $ 137,817 $ 2,129,525 $ 2,285,342 Interfund balances at June 30, 2016, include advances due to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $1,901,161 of the $2,129,525 advance to the Parking Fund is not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to be repaid within the next year. $124,595 of the $137,817 advance to the Other Shared Revenue and Grants Fund is not expected to be repaid within the next year. 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Interfund transfers for the year ended June 30, 2016, consisted of the following: Transfer to: General Debt Service Other Shared Revenue and Grants Capital Projects Bridge, Street and Traffic Control Construction Nonmajor Governmental Wastewater Treatment Water Sanitation Stormwater Transit Nonmajor Enterprise Internal Service Total Transfer to Transfer from $ - $ 8987,501 $ 201,017 - 218,879 396,132 6,304,315 - 1,111,492 - $ 78,624 $ - $ 9,106 - 762,103 - 2,609,188 - Capital Projects 25,000 479,969 150,000 Bridge, Street Community Other Shared and Traffic Employee Development Revenue and Control Nonmajor General Benefits Block Grant Grants Construction Governmental $ - $ 8987,501 $ 201,017 - 218,879 396,132 6,304,315 - 1,111,492 - $ 78,624 $ - $ 9,106 - 762,103 - 2,609,188 - 320,444 25,000 479,969 150,000 20,972 - - 139,850 55,000 - - 971,064 13,634 - 23,830 - - 1,474,879 716,390 3,108,169 - - - - - 121,929 - - - - 29,469 63,294 - - - 9,460 99,752 $ 11,129,095 $ 9,383,633 $ 25,000 $ 3,167,781 $ 2,745253 $ 2,050,700 (continued) Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. In the fund financial statements, total transfers in and transfers out of $32,315,742 are less than total transfers of $35,484,379 because of the treatment of transfers of capital assets from the governmental activities capital assets. During the year, construction in progress related to construction along Moss Ridge Road with a value of $423,960 was transferred from governmental activities capital assets to Wastewater Treatment. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Wastewater Treatment did report a capital contribution for the capital resources received. 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Transfer from Wastewater Housing Nonrrtajor Internal Total Treatment Water Sanitation Stormwater Authority Enterprise Service Transfer from $ - $ - $ - $ - $ 45,184 $ 1,571,324 $ - $ 10,691,739 - - - - - - - 963,120 - - - - - - - 615,011 500,000 719,562 - 121,945 - - - 10,575,454 - - - 450,000 - - 50,000 2,287,433 - - - - - - - 194,850 - - - - - - - 984,698 - - - - - - - 23,830 - - - - - - - 2,191,269 - - - - - - - 3,108,169 - - - - - - - 151,398 22,143 - 334,122 - - - - 528,771 $ 522,143 $ 719,562 $ 334,122 $ 571,945 $ 45,184 $ 1,571,324 $ 50,000 Transfers from governmental activities capital assets to an enterprise fund 32,315,742 3,168,637 $ 35,484,379 During the year, construction in progress related to construction along Moss Ridge Road with a value of $419,867 was transferred from governmental activities capital assets to Water. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Water did report a capital contribution for the capital resources received. During the year, construction in progress related to construction along Moss Ridge Road and the Rocky Shore Lift Station with values of $587,746 and $1,737,064 was transferred from governmental activities capital assets to Stormwater. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Stormwater did report a capital contribution for the capital resources received. 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 4. Capital Assets Capital asset activity for the year ended June 30, 2016, was as follows: Less accurrnilated depreciation for Buildings 21,559,428 Acquisitions Disposals 23,185,807 Improvements other than buildings Begmnng and and Balance Machinery and equipment July 1, 2015 Tmnsfers Tmnsfers June 30, 2016 Governmental activities: 37,074,523 3,001,254 - 40,075,777 Capital assets, not being depreciated 87,447,704 8,589,299 3,592,951 92,444,052 Land $ 23,470,212 $ 611,182 $ - $ 24,081,394 Construction in progress 24,562,170 11,872,690 12,241,121 24,193,739 Total capital assets, not being depreciated 48,032,382 12,483,872 12,241,121 48,275,133 Capital assets, being depreciated Buildings 59,797,278 5,075,593 560,598 64,312,273 Improvements other than buildings 6,725,348 638,907 6250 7,358,005 Machinery and equipment 40,679,178 4,446,279 3,383,709 41,741,748 Infrastructure 131,866,384 6,113,679 - 137,980,063 Total capital assets being depreciated 239,068,188 16,274,458 3,950,557 251,392,089 Less accurrnilated depreciation for Buildings 21,559,428 1,974,044 347,665 23,185,807 Improvements other than buildings 2,987,909 281,395 3,125 3,266,179 Machinery and equipment 25,825,844 3,332,606 3,242,161 25,916,289 Infrastructure 37,074,523 3,001,254 - 40,075,777 Total accunnilated depreciation 87,447,704 8,589,299 3,592,951 92,444,052 Total capital assets, being depreciated, net 151,620,484 7,685,159 357,606 158,948,037 Goverumental activities capital assets, net $ 199,652,866 $ 20,169,031 $ 12,598,727 $ 207,223,170 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Acquisitions Disposals Begmnng and and Balance July 1, 2015 Transfers Transfers June 30, 2016 Business -type activities: Capital assets, not being depreciated Land $ 33,789,882 $ 4,852,938 $ 3,052,522 $ 35,590,298 Construction in progress 11,388,980 2,197,260 10,939,196 2,647,044 Total capital assets, not being depreciated 45,178,862 7,050,198 13,991,718 38,237,342 Capital assets, being depreciated 7242,782 404,342 90,363,007 Buildings 119,258,446 - 771,471 118,486,975 Improvements other than buildings 10,552,725 244,442 13,722 10,783,445 Machinery and equipment 30,715,999 512,092 132,134 31,095,957 Infrastructure 285,222,339 13,515,252 620,000 298,117,591 Total capital assets being depreciated 445,749,509 14,271,786 1,537,327 458,483,968 Less accunnilated depreciation for Buildings 55,207,928 3,011,767 368,752 57,850,943 Improvements other than buildings 5,626,863 467,892 13,722 6,081,033 Machinery and equipment 21,138,235 1,493,309 131,478 22,500,066 Infrastructure 83,524,567 7242,782 404,342 90,363,007 Total accurn fated depreciation 165,497,593 12,215,750 918,294 176,795,049 Total capital assets, being depreciated, net 280,251,916 2,056,036 619,033 281,688,919 Business -type activities capital assets, net $ 325,430,778 $ 9,106,234 $ 14,610,751 $ 319,926,261 Depreciation expense was charged to functions as follows: Govemmental activities: Public safety $ 1,473,455 Public works 3,424,828 Culture and recreation 2,756,974 Comminiity and econonric development 55,056 General government 437,715 Total depreciation expense - govemmenial activities $ 8,148,028 Business -type activities: Parking $ 807,601 Transit 1,030,329 Wastewater treatment 4,485,498 Water 2,294,914 Sanitation 1,387,157 Stomzwater 1,113,015 Housing arthority 121,289 Nonmajor enterprise 975,947 Total depreciation expense - business -type activities S 12,215,750 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 5. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2016, was as follows: July 1, 2015 Governmental activities: Issues Due Wdlan Retirements June 30, 2016 One Year General obligation bonds $ 58,750,000 $ 9,405,000 $ 13,100,000 $ 55,055,000 $ 10,130,000 Plus: Unamortized Prentium 671,203 441,257 169,068 943,392 126,304 Total general obligation bonds 59,421,203 9,846,257 13,269,068 55,998,392 10,256,304 Revenue bonds 2,655,000 - 130,000 2,525,000 130,000 Less: Unamortized Discounts 36,108 - 2,124 33,984 2,124 Total revenue bonds 2,618,892 - 127,876 2,491,016 127,876 $ 62,040,095 S 9,846,257 S 13,396,944 $ 58,489,408 S 10,384,180 Business -type activities: General obligation bonds $ 590,000 $ - $ 295,000 $ 295,000 $ 295,000 Less: Unamortized Discounts - - - - - Total general obligation bonds 590,000 - 295,000 295,000 295,000 Revenue bonds 44,950,000 13,010,000 19,540,000 38,420,000 5,090,000 Plus: Unamortized Prenmun 616,903 1,144,715 229,957 1,531,661 229,957 Total revenue bonds 45,566,903 14,154,715 19,769,957 39,951,661 5,319,957 S 46,156,903 S 14,154,715 S 20,064,957 $ 40,246,661 $ 5,614,957 General Obligation Bonds Various issues of general obligation bonds totaling $55,350,000 are outstanding as of June 30, 2016. The bonds have interest rates ranging from 1.0% to 4.0% and mature in varying annual amounts ranging from $240,000 to $2,185,000 per issue, with the final maturities due in the year ending June 30, 2026. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise funds is used to pay the general long- term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending Governmental Activities June 30 Principal Interest Business -t} Principal Activities Interest 2017 $ 10,130,000 $ 1,343,550 $ 295,000 $ 5,900 2018 9,340,000 1,115,481 - - 2019 7,985,000 872,031 - - 2020 7,410,000 663,144 - - 2021 6,150,000 459,779 - - 2022-2026 14,040,000 712,450 - - Total $ 55,055,000 $ 5,166,435 $ 295,000 $ 5,900 Revenue Bonds As of June 30, 2016, the following unmatured revenue bond issues are outstanding: The City of Iowa City defeased the remaining $6,605,000 of its 2009 parking revenue bonds on November 12, 2014 by prepaying all remaining outstanding bonds and interest from cash on hand. The total defeased outstanding as of June 30, 2016 is $6,045,000. The total amount of interest that was paid was $574,186. Liabilities for the defeased bonds are not included in the City's financial statements. On June 16, 2016, the City issued $9,360,000 of sewer revenue bonds for a current refunding of $10,515,000 of sewer revenue bonds on July 1, 2016. As a result, the sewer revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,679,360 in future debt service payments and an economic gain of $1,133,595. On June 16, 2016, the City issued $3,650,000 of water revenue bonds for a current refunding of $4,085,000 of water revenue bonds on July 1, 2016. As a result, the water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $640,265 in future debt service payments and an economic gain of $485,963. 59 Wastewater Taxable Urban Treatment Water Renewal Original issue amount $ 57,380,000 $ 25,465,000 $ 2,655,000 Interest rates 3.0% to 5.0% 1.5% to 5.0% 1.0% to 3.9% Annual maturities $ 505,000 to $ 380,000 to $ 130,000 to $ 2,010,000 $ 835,000 $ 200,000 Amount outstanding $ 23,910,000 $ 14,510,000 $ 2,525,000 The City of Iowa City defeased the remaining $6,605,000 of its 2009 parking revenue bonds on November 12, 2014 by prepaying all remaining outstanding bonds and interest from cash on hand. The total defeased outstanding as of June 30, 2016 is $6,045,000. The total amount of interest that was paid was $574,186. Liabilities for the defeased bonds are not included in the City's financial statements. On June 16, 2016, the City issued $9,360,000 of sewer revenue bonds for a current refunding of $10,515,000 of sewer revenue bonds on July 1, 2016. As a result, the sewer revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,679,360 in future debt service payments and an economic gain of $1,133,595. On June 16, 2016, the City issued $3,650,000 of water revenue bonds for a current refunding of $4,085,000 of water revenue bonds on July 1, 2016. As a result, the water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $640,265 in future debt service payments and an economic gain of $485,963. 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Governmental Activities June 30 Principal 2017 2018 2019 2020 2021 2022-2026 2027-2031 2032-2036 Total $ 130,000 135,000 135,000 140,000 140,000 760,000 885,000 200,000 Interest $ 74,035 72,345 70,185 67,485 64,545 267,955 139,280 7,800 Business -type Activities Principal Interest 5,090,000 5,035,000 5,250,000 5,460,000 5,360,000 12,225,000 $ 1,503,102 1,214,990 1,016,303 806,453 592,246 1,050,416 $ 2,525,000 $ 763,630 S 38,420,000 $ 6,183,510 The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: (a) Revenue Bond and Interest Sinking Reserve (b) Revenue Debt Service Reserve Amount sufficient to pay current bond and interest maturities. Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Water Revenue and Taxable Urban Renewal Revenue bonds — maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds — 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. In fiscal year ended June 30, 2016, the Wastewater Treatment Fund had net revenue of $6,168,000 and the amount of principal and interest due was $4,695,000. In fiscal year ended June 30, 2016, the Water Fund had net revenues of $3,936,000 and the amount of principal and interest due was $2,294,000. 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2016, are comprised of the following issues: Revenue Bonds: Refunded Wastewater Treatment Bonds (4) Refunded Wastewater Treatment Bonds (5) Refunded Wastewater Treatment Bonds (6) Refunded Wastewater Treatment Bonds (7) Refunded Water Bonds (8) Refunded Water Bonds (9) Refunded Water Bonds (10) Refunded Water Bonds (11) Taxable Urban Renewal Total Revenue Bonds Date of Issue Amount Date of Interest Issue General Obligation Bonds: Issued Refunded Multi-Purpose(1) Oct. 2008 Mulct -Purpose June 2009 Muld-Purpose Aug. 2010 Mulct -Purpose June 2011 Refunded Multi -Purpose and $ 3,055,000 Library Construction (2) June 2011 Mulct -Purpose June 2012 Multi -Purpose July 2013 Refunded Multi -Purpose (3) June 2014 Mulct -Purpose June 2015 Mulct -Purpose June 2016 Multi -Purpose June 2016 Total General Obligation Bonds Revenue Bonds: Refunded Wastewater Treatment Bonds (4) Refunded Wastewater Treatment Bonds (5) Refunded Wastewater Treatment Bonds (6) Refunded Wastewater Treatment Bonds (7) Refunded Water Bonds (8) Refunded Water Bonds (9) Refunded Water Bonds (10) Refunded Water Bonds (11) Taxable Urban Renewal Total Revenue Bonds Date of Issue Amount 24,280,000 Interest Final Outstanding Issued May 2009 Rates Maturity June 30, 2016 725 17,005,000 3.0-3.75 15,080,000 6/18 $ 3,055,000 6,685,000 2.5-4.0 June 2016 6/19 2,210,000 7,420,000 2.0-2.75 9,360,000 6/20 3,115,000 7,925,000 2.0-3.625 724 6/21 3,940,000 10,930,000 2.0-3.625 621 6,235,000 9,070,000 2.0-2.25 1.5 622 5,680,000 7,230,000 1.0-2.0 3,650,000 623 5,750,000 11,980,000 2.0-3.0 Nov. 2012 624 8,870,000 7,785,000 2.0-2.25 2,525,000 625 7,090,000 8,795,000 2.0-3.0 626 8,795,000 610,000 2.0 6/17 610,000 $ 55,350,000 Amount Interest Final Outstanding Issued Rates Maturity June 30, 2016 Oct. 2008 24,280,000 3.0-5.0 722 $ 1,945,000 May 2009 8,660,000 3.5-5.0 725 6,275,000 Apr. 2010 15,080,000 3.0-4.0 720 6,330,000 June 2016 9,360,000 3.0-4.0 721 9,360,000 Oct. 2008 7,115,000 3.0-4.375 724 425,000 May 2009 9,750,000 4.0-4.5 725 6,870,000 June 2012 4,950,000 1.5 - 2.1 722 3,565,000 June 2016 3,650,000 1.5 - 5.0 724 3,650,000 Nov. 2012 2,655,000 1.0-3.9 6/32 2,525,000 40,945,000 61 $ 96.295.000 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 (1) This bond issue refunded the April 1998, March 1999, and July 2000 General Obligation Bonds. (2) This bond issue refunded the May 2002 General Obligation Bonds. (3) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (4) This bond issue refunded the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (5) This bond issue refunded the October 2000 Wastewater Revenue Bonds. (6) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds. (7) This bond issue refunded the October 2008 Wastewater Revenue Bond. (8) This bond issue refunded the May 1999 Water Revenue Bonds. (9) This bond issue refunded the December 2000 Water Revenue Bonds. (10) This bond issue refunded the October 2002 Water Revenue Bonds. (11) This bond issue refunded the October 2008 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds, Facility Refunding Revenue Bonds, and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2016, there were four series of Industrial Development Revenue Bonds, Facility Refunding Revenue Bonds, and Midwest Disaster Area Revenue Bonds outstanding, with an aggregate principal amount payable of $33,714,416. Debt Legal Compliance Legal Debt Margin: As of June 30, 2016, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows (amounts expressed in thousands): Assessed valuation: Real property $ 4,862,831 Utilities 87,728 Total valuation $ 4,950,559 Debt limit, 5% of total assessed valuation $ 247,528 Debt applicable to debt limit: General obligation bonds 55,350 Urban renewal revenue bonds 2,525 Letters of credit 582 Other legal indebtedness (TIF rebates) 13,506 Total net debt applicable to limit 71,963 Legal debt margin 175.565 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 6. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa (MFPRSI) Plan Description MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through a cost- sharing multiple employer defined benefit pension plan administered by MFPRSL MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mf)rsi.org. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement benefits are granted to members with 22 years of service, while partial benefits are available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3 years becomes the member's average final compensation. The base benefit is 66 percent of the member's average final compensation. Additional benefits are available to members who perform more than 22 years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits are available to the beneficiary of a retired member according to the provisions of the benefit option chosen plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member's retirement benefit at the member's earliest date eligible and 100% if the member delays enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will be distributed to the member in the form of a lump sum or rollover to an eligible plan. Disability and Death Benefits Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 percent of the member's average final compensation or the member's service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50 percent of the member's average final compensation, for those with 5 or more years of service, or the member's service retirement benefit calculation amount, and 25 percent of average final compensation for those with less than 5 years of service. 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40 percent of the average final compensation of the member plus an additional amount for each child, or a lump -sum distribution to the designated beneficiary equal to 50 percent of the previous year's earnable compensation of the member or equal to the amount of the member's total contributions plus interest. Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. The surviving spouse or dependents of an active member who dies due to a traumatic personal injury incurred in the line of duty receives a $100,000 lump -sum payment. Contributions Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa, the contribution rate was 9.40% of earnable compensation for the year ended June 30, 2016. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the entry age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by 1 percent of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of earnable compensation. The contribution rate was 27.77% for the year ended June 30, 2016. The City's contributions to MFPRSI for the year ended June 30, 2016 was $2,779,259. If approved by the state legislature, state appropriation may further reduce the employer's contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for Pension Plans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2016. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the City reported a liability of $17,406,489 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating employers. At June 30, 2015, the City's proportion was 3.704972% which was a decrease of .073165% from its proportions measured as of June 30,2014. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 For the year ended June 30, 2016, the City recognized pension expense of $1,679,060. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions City contributions subsequent to the measurement date Total Deferred Outflows of Deferred Inflows of Resources Resources $ 438,142 $ 1,309,699 1,791,677 465,939 304,786 2,779,259 $ 4,993,039 $ 2,096,463 $2,779,259 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total June 30, 2017 $ (354249) June 30, 2018 (354249) June 30, 2019 (354249) June 30, 2020 1,089287 June 30, 2021 90,777 $ 117,317 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Actuarial Assumptions The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation Salary increases Investment rate of return 3.00 percent per annum 4.50 to 15.00 percent, including inflation 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period from July 1, 2002 to June 30, 2012. Mortality rates were based weighting equal to 1/12 of the 1971 GAM table and 11/12 of the 1994 GAM table with no projection of future mortality improvement. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long -Term Expected Asset Class Target Allocation Real Rate of Return Core Plus Fixed Income Emerging Markets Debt Domestic Equities Master Limited Partnerships (MLP) International Equities Core Investments Tactical Asset Allocation Private Equity Private Non -Core Real Estate Private Core Real Estate Real Estate Total 66 7.0% 3.0 12.5 5.0 12_5 40.0% 35.0 15.0 5.0 5.0 10.0 100.0% 3.8 % 6.5 6.0 8.5 7.0 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Discount Rate The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions will be made at 9.40 percent of covered payroll and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.5 percent, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percent lower (6.5 percent) or 1 -percent higher (8.5 percent) than the current rate. 1% Decrease Discount Rate 1% Increase (6.5%) (7.5%) (8.5%) City's proportionate share of the net pension liability: S 30,305,216 S 17,406,489 S 6,689,156 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued MFPRSI financial report which is available on MFPRSI's website at www.mfprsi.om. Payables to the Pension Plan At June 30, 2016, there were no amounts due to MFPRSI. Iowa Public Employees Retirement System (IPERS) Plan Descrintion IPERS membership is mandatory for employees of the City, except for those covered by another retirement system. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by IPERS. IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.iyers.om. IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder. Chapter 97B and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Pension Benefits A regular member may retire at normal retirement age and receive monthly benefits without an early- retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member's years of service plus the member's age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on the member's first month of entitlement to benefits.) Members cannot begin receiving retirement benefits before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes: A multiplier (based on years of service). The member's highest five-year average salary. (For members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five-year average salary.) If a member retires before normal retirement age, the member's monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25 percent for each month that the member receives benefits before the member's earliest normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50 percent for each month that the member receives benefits before age 65. Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early retirement. If a member dies before retirement, the member's beneficiary will receive a lifetime annuity or a lump -sum payment equal to the present actuarial value of the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. Contributions Effective July 1, 2012, as a result of a 2010 law change, the contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to 1 percentage point. IPERS Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the "entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial liability payment based on a 30 -year amortization period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 In fiscal year 2016, pursuant to the required rate, Regular members contributed 5.95 percent of pay and the City contributed 8.93 percent for a total rate of 14.88 percent. The City's total contributions to IPERS for the year ended June 30, 2016 were $2,540,448. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the City reported a liability of $20,548,735 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all IPERS participating employers. At June 30, 2015, the City's proportion was .4159256% which was a decrease of .0219648% from its proportions measured as of June 30, 2014. For the year ended June 30, 2016, the City recognized pension expense of $1,508,882. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 310,465 Change of assumptions 565,758 Net difference between projected and actual earnings on pension plan investments - 1,710,193 Changes in proportion and differences between City contributions and proportionate share of contributions - 891,372 City contributions subsequent to the measurement date 2,540,448 - Total .e $ 3,416,671 $ 2,601,565 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 $2,540,448 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total June 30, 2017 $ (795,189) June 30, 2018 (795,189) June 30, 2019 (795,189) June 30, 2020 691294 June 30, 2021 (31,069) $ (1,725,342) Actuarial Assumptions The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 3.00 percent per annum (effective June 30, 2014) Salary increases 4.00 to 17.00 percent average, including inflation. Rates vary by (effective June 30, 2010) membership group. Investment rate of return 7.50 percent, net of pension plan investment (effective June 30, 1996) expense, including inflation Wage growth 4.00 percent per annum based on 3.00 inflation and 1.00 (effective June 30, 1990) realwage inflation The actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience studies with dates corresponding to those listed above. Mortality rates were based on the RP -2000 Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Core Plus Fixed Income Domestic Equity International Equity Private Equity/Debt Real Estate Credit Opportunities U.S. TIPS Other Real Assets Cash Total Target Allocation 28 % 24 16 11 8 5 5 2 1 100% Long -Term Expected Real Rate of Return 2.04 % 6.29 6.75 11.32 3.48 3.63 1.91 6.24 -0.71 Discount Rate The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions will be made at the contractually required rate and that the contributions from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Citv's Pronortionate Share of the Net Pension Liabiflty to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.5 percent, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percent lower (6.5 percent) or 1 -percent higher (8.5 percent) than the current rate. 1% Decrease Discount Rate 1% Increase (6.5%) (7.5%) (8.5%) City's proportionate share of the net pension liability: $ 35,977,139 $ 20,548,735 $ 7,526,056 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued IPERS financial report which is available on IPERS' website at www.iyers.org. Payables to the Pension Plan At June 30, 2016, there were no amounts due to IPERS. 7. Other Long-term Liabilities Changes in Long -Term Liabilities -Notes Payable Note Payable activity for the year ended June 30, 2016, was as follows: Due Within July 1, 2015 Issues Retirements June 30, 2016 One Year Governmental activities: $ 211,000 $ - $ - $ 211,000 $ - A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Changes in Long -Term Liabilities -Employee Vested Benefits Employee Vested Benefits activity for the year ended June 30, 2016, was as follows: July 1, 2015 Issues Retirements June 30, 2016 Due Within On, vp.r Governmental activities: $ 2,076.751 $ 1.204.680 $ 1.148252 $ 2,133,179 $ 11185,014 Business -type activities: $ 721,686 $ 370,596 $ 413,309 $ 678,973 $ 392,471 For the governmental activities, employee vested benefits are generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Changes in Long -Tem Liabilities -Landfill Closure Post -closure Care Costs Landfill Closure Post -closure care activity for the year ended June 30, 2016, was as follows: July 1, 2015 Issues Retirements June 30, 2016 Due Within One Year Business -type activities: $ 7,573 257 $ 695,137 $ - $ 8268,394 $ - In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post -closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post -closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post -closure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and post -closure care costs as of June 30, 2016, is $8,268,394, which is based on 50.4% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $8,137,149 will be recognized as closure and post -closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2025. The estimated total current cost of the landfill closure and post -closure care costs at June 30, 2016, was determined by a licensed professional engineer and approximated at $16,405,543. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2016. These amounts are based on an estimated post -closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post -closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post -closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2016, the Sanitation Fund had $13,074,225 in related equity in pooled cash and investments, at fair value designated for satisfaction of closure and post -closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post -closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post -closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Changes in Long -Term Liabilities -Other Postemployment Benefits Governmental activities: Business -type activities: Net OPEB Obligation 2015 Current Year June 30, 2016 $ 2,912,986 $ 1,056,655 $ 274,351 $ 38,547 $ 3,187,337 $ 1,095202 Plan Description: The City operates one self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post -employment benefit options: Health insurance and dental insurance — The option of continuing with the City's health insurance plan at the individual's expense. These benefits cease upon Medicare eligibility. Life insurance — The option of converting the employee's City -paid policy to an individual policy at the individual's expense with the City's life insurance carrier. Long-term disability — For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee's City -paid group policy to a personal policy at the individual's expense with the City's long-term disability insurance carrier. The above options, while at the individual's own expense, are included within the City's overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Funding Policy: The plan member's contribution requirements are established and may be amended by the City. The City currently finances the benefit plans on a pay-as-you-go basis. For governmental activities, this liability is expected to be liquidated by the General Fund. Annual OPEB Cost and Net OPEB Obligation: The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 The following table shows the components of the City's annual OPEB cost for the year ended June 30, 2016, the amount actually contributed to the plans, and changes in the City's net OPEB obligation: Annual required contribution $ 670,882 Interest on net OPEB obligation 138,937 Adjustment to annual required contribution (136,952) Annual OPEB costs 672,867 Contributions made (359,969) Increase in net OPEB obligation 312,898 Net OPEB obligation beginning of year 3969,641 Net OPEB obligation end of year $ 4282,539 For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30, 2016. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net OPEB obligation are summarized as follows: Annual Year Ended OPEB Cost June 30, 2014 $ 649,497 June 30, 2015 $ 573,338 June 30, 2016 $ 672,867 Percentage of Annual OPEB Cost Net OPEB Contributed from City Obligation 52.5% $3,614,449 38.0% $3,969,641 53.5% $4,282,539 Funded Status and Funding Progress: As of July 1, 2014, the most recent actuarial valuation date for the period July 1, 2015 through June 30, 2016, the actuarial accrued liability was $5,150,697, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $5,150,697. The covered payroll (annual payroll of active employees covered by the plans) was $35,972,442 and the ratio of the UAAL to covered payroll was 14.3%. As of June 30, 2016, there were no trust fund assets. Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. Actuarial calculations of the OPEB plan reflect a long-term perspective. The required schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. As of the July 1, 2014 actuarial valuation date, the actuarial cost method used is the entry -age normal method. The actuarial assumption includes a 3.5% discount rate and an inflation rate of 3% per annum. The projected annual medical trend rate is 9.0%. The ultimate medical trend rate is 5.0%. The medical trend rate is decreased to 8.5% for year two and then reduced by 0.5% each year until reaching the 5.0% ultimate trend rate. Mortality rates for active employees and retirees are from the SOA RPH-2014 Total Dataset Mortality table fully generational using Scale MP -2014. Annual retirement and termination probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan turnover tables, adjusted to be consistent with expected first fiscal year retirements. Projected claim costs of the health plan is $758.33 per month for retirees and $683.33 for their spouses. The salary increase rate was assumed to be 3.5% per year. The UAAL is being amortized as a level percentage of projected payroll expenses over 30 years on an open basis. 8. Short Term Debt Changes in Short -Term Liabilities -Notes Payable Notes Payable activity for the year ended June 30, 2016, was as follows: Due Within July 1, 2015 Issues Retirements June 30, 2016 One Year Governmental activities: $ 2,004.500 $ 420,000 $ 1,842,500 $ 582,000 $ 582.000 During FY16, the City entered into additional multiple short term loans totaling $420,000 and repaid multiple short term loans totaling $1,842,500. The outstanding loans mature one year from the date of the loan and bear interest rates ranging from 2% to 3.50%. The loans were used to fund the acquisition and rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The short term loans have been repaid and will be repaid with the proceeds from the sale of the rehabilitated homes. Q CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 9. Fund Equity Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. • The Nonspendable classification contains amounts not in spendable form or legally or contractually required to be maintained intact. • Restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. • Committed amounts can only be used for specific purposes imposed by formal action of the government's highest level of decision-making authority. The highest level of decision-making authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance commitment. • Amounts intended to be used for specific purposes are Assigned. Assignments should not cause deficits in the Unassigned fund balance. The Finance Director has been delegated authority by the City Council through a resolution to assign amounts to be used for specific purposes. • Unassigned fund balance is the residual classification for the General Fund. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. The City would use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. 77 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Componenb of Fund Balance Library Programs 756,858 - - - - - - 756,858 Senior Center Programs 13,810 - - - - - - 13,810 Replacement and Acquisition Reserves 33801 - - - - - - 33801 Other Assigned 34,082 Bridge Total Assigned 1,143,411 - - - - - - 1,143,411 Cammunity Other Sireef and Oexlopment Shared Traffic Other Employee Black Ra nue and Control Bou Goemmmtal General Benefits Grant Grants Construction Service Ful Total Nonspenxfaue Perpetual Care Principal $ fl,OW $ $ $ $ $ $ $ fl9,000 Total Nonspendable 69,WU fl9,000 Re ncicdfo: Punic Safety 45$083 - - - - - - 45$W3 Local Option Saks Tax 18,262,595 Gold So.ce - - - - - 6,5]2,880 - 6,5]2,880 GO Bond Pmjeus 62,314 - - - 13,171,217 - 8,148,625 21,982,156 Slate Funding - - - 5,834,682 - - - 5,834,682 Grant Agreonnent - - 448,892 152,415 - - - W1,W7 ARorcubk Housing - - - 1,000,000 - - - 1,000,000 Punic Safety Employee Boneus - 1,670,848 - - - - - 1,670,848 Other Restricted 191,760 124,888 541,910 858,558 Total ResNcted 18,974,752 1,670,848 4 ,M 7,111,985 1$171,217 6,512,88) 9,290,535 57,241,18) CammAted to Eoxagoncy Fund 4(D8,n94,fl58,M - - - - - - Total Canmlted 4, 8,1(9 4flJo) Assgned to: Library Programs 756,858 - - - - - - 756,858 Senior Center Programs 13,810 - - - - - - 13,810 Replacement and Acquisition Reserves 33801 - - - - - - 33801 Other Assigned 34,082 34,082 Total Assigned 1,143,411 - - - - - - 1,143,411 Unassigned[ 23,365,918 23,365,918 Total Fund Balances $ 48,251,920 $ 1,610,848 $ 448,8)2 $ 7,111,985 $ 13,171,217 $ 6,512,88) $ 9,290,535 $ W,518,2i 10. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2016 the City purchased property, liability, and workers' compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $500,000 self-insured retention on workers' compensation losses. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past twenty eight fiscal years. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. 78 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current -year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance includes a claims liability at June 30, 2016 based on the requirements of GASB Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund's claims liability amount for property, liability, and workers' compensation for the years ended June 30, 2016 and 2015 are as follows: Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2014-2015 $ 2,416,000 $ 1,133,000 $ 1,013,000 $ 2,536,000 2015-2016 2,536,000 827,000 874,000 2,489,000 Also, the City is partially self-insured, through stop -loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop -loss coverage for claims in excess of $125,000 per employee with an aggregate stop -loss of $9,384,134. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2016 and 2015 are as follows: 79 Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2014 —2015 $ 581,000 $ 6,980,000 $ 6,993,000 $ 568,000 2015 —2016 568,000 7,035,000 7,253,000 350,000 79 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 11. Commitments and Contingencies Contractual Commitments The total outstanding contractual commitments as of June 30, 2016 are as follows: Fund Bridge, street and traffic control construction Other construction Parking Wastewater Water Sanitation Airport Developer Commitments Project Paving and bridge construction, engineering design and consulting Public works, culture & recreation, Economic Dev., Fire & Police, construction Garage improvements and repair & maintenance Sewer construction and south plant expansion Water main construction Landfill cell reconstruction Runway grading and paving Amount U 32,220 50,133 158,133 10,279 227,369 25,731 $ 46,788,010 In order to encourage development within designated TIF districts, the City Council has approved developer grants to 5 different projects. The grants are to be paid only after certain conditions have been met by each project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage of future property taxes generated by the property. Currently, it is estimated that outstanding commitments totaling $13,506,152 exist, of which $170,000 may be eligible to be paid in the next fiscal year. These items are expensed in the period in which they are paid. No liability is recognized due to the fact that the agreements are conditional and the payments are to be funded by future property taxes receivable on the project and are subject to the City Council's right of non -appropriation each fiscal year. Lease Purchase Agreement In June 2015 the City entered into a Lease Purchase Agreement to purchase the Harrison Street Parking Ramp. The purchase price is not to exceed $16,000,000 and the first lease payment is anticipated to be on June 1, 2018. 80 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 12. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City's experience that such actions are settled for amounts substantially less than claimed amounts. The City's management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 13. Subsequent Events On August 1, 2016, the City of Iowa City called for redemption General Obligation Bonds, Series 2008B, in the amount of $3,055,000. All outstanding bonds were redeemed with cash on hand. On September 15, 2016, the City of Iowa City received capital loan notes for Taxable Urban Renewal Revenue Capital Loan Notes, Series 2016E in the amount of $12,805,000. These notes were issued for an urban renewal project. 14. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued eight statements not yet implemented by the City. The statements, which might impact the City's financial statements, are as follows: Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans, will be effective for the fiscal year ending June 30, 2017. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, will be effective for fiscal year ending June 30, 2018. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. Statement No. 77, Tax Abatement Disclosures, will be effective for the fiscal year June 30, 2017. The objective of this Statement is to improve financial reporting by giving users of financial statements essential information that is not consistently or comprehensively reported to the public at present. Disclosure of information about the nature and magnitude of tax abatements will make these transactions more transparent to financial statement users. 81 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2016 Statement No. 78, Pensions Provided through Certain Multiple -Employer Defined Benefit Pension Plans, will be effective for fiscal year ending June 30, 2017. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue is associated with pensions provided through certain multiple - employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. Statement No. 79, Certain External Investment Pools and Pool Participants, will be effective for the fiscal year ending June 30, 2017. The objective of this statement is to establish criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting processes. Statement No. 80, Blending Requirement for Certain Component Units — An amendment of GASB Statement No. 14, will be effective for fiscal years ending June 30, 2017. The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. This Statement amends the blending requirements established in paragraph 53 of Statement No. 14, The Financial Reporting Entity, as amended. Statement No. 81, Irrevocable Split -Interest Agreements, will be effective for fiscal year ending June 30, 2018. The objective of this Statement is to improve accounting and financial reporting for irrevocable split interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Statement No. 82, Pension Issues — An amendment of GASB Statements No. 67, No. 68 and No. 73, will be effective for fiscal year ending June 30, 2017. The objective of this statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The City's management has not yet determined the effect these statements will have on the City's financial statements. 82 83 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL - ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS BUDGETARY BASIS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2016 (dollar amounts expressed in thousands) Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Public safety Property taxes $ 52,021 $ - $ 52,021 Tax increment financing taxes 1,027 - 1,027 Other city taxes 2,783 - 2,783 Special assessments - - - Licenses and permits 3,056 7 3,063 Intergovernmental 20,838 12,824 33,662 Charges for services 5,820 38,738 44,558 Use of money and property 837 1,469 2,306 Miscellaneous 3,322 661 3,983 Totalrevenues 89,704 53,699 143,403 Expenditures/Expenses: Public safety 22,100 - 22,100 Public works 7,269 - 7,269 Health and social services 297 - 297 Culture and recreation 12,909 - 12,909 Community and economic development 7,794 - 7,794 General government 8,087 - 8,087 Debt service 15,016 - 15,016 Capital outlay 19,479 - 19,479 Business -type - 49,347 49,347 Total expenditures/expenses 92,951 49,347 142,298 Excess (deficiency) of revenues over (under) expenditures/expenses (3,247) 4,352 1,105 Other financing sources and uses, net 12,847 19,217 Net change in fund balances 9,600 23,569 33,169 Balances, beginning of year 76,325 83,475 159,800 Balances, end of year $ 85,925 $ 107,044 $ 192,969 See Note to Required Supplementary Information. 84 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 52,034 $ 52,034 $ (13) 1,020 1,020 7 2,786 2,786 (3) 1 1 (1) 1,515 1,515 1,548 30,466 41,166 (7,504) 43,444 44,916 (358) 1,936 1,936 370 2,846 4,870 (887) 136,048 150,244 (6,841) 22,668 22,999 899 7,815 8,321 1,052 284 314 17 13,332 13,781 872 6,486 12,214 4,420 8,835 8,873 786 13,208 15,210 194 36,301 56,598 37,119 49,058 61,379 12,032 157,987 199,689 57,391 (21,939) (49,445) 50,550 717 (8,063) (31,098) $ 64,267 136,907 159,800 8 128,844 8 128,702 85 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2016 (dollar amounts expressed in thousands) Govemmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis Revenues $ 89,704 $ (2,611) $ 87,093 Expenditures 92,951 (8,621) 84,330 Net (3,247) 6,010 2,763 Other financing sources and uses, net 12,847 (6,118) 6,729 Beginning Fund Balances 76,325 701 77,026 Ending Fund Balances $ 85,925 $ 593 $ 86,518 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues $ 53,699 $ 5,746 $ 59,445 Expenditures 49,347 3,848 53,195 Net 4,352 1,898 6,250 Other financing sources and uses, net 19,217 (14,174) 5,043 Beginning Fund Balances 83,475 262,946 346,421 Ending Fund Balances $ 107,044 $ 250.670 S 357,714 See Note to Required Supplementary Information. 0 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended Jane 30, 2016 In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is a modified accrual basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business -type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $14,196,000 and expenditures by $41,702,000. The budget amendments were primarily due to changes in the breadth and timing of capital improvement projects, which the City budgets in full during the initial year of the projects and amends future year budgets for carryover. 87 88 City of Iowa City, Iowa Required Supplementary Information -Schedule of the City's Proportionate Share of the Net Pension Liability Municipal h5re and Police Retirement System of Iowa Last Fiscal Year* (amounts expressed in thousands) * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years fir which information is available. 89 2016 2015 City's proportion of the net pension liability 3.704972% 3.778137% City's proportionate share of the net pension liability $ 17,406 $ 13,696 City's covered -employee payroll 9,716 9,648 City's proportionate share of the net pension liability as a percentage of its covered -employee payroll 179.15% 141.96% Plan fiduciary net position as a percentage of the total pension liability 83.04% 8627% * In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years fir which information is available. 89 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Municipal Fire and Police Retirement System of Iowa Last Fiscal Year (amounts expressed in thousands) Statutorily required contributions Contributions in relation to the statutorily required contribution Contribution deficiency (excess) City's covered -employee payroll Contributions as a percentage of covered -employee payroll 2016 $ 2,779 2015 $ 2,955 (2,779) (2,955) $ 10,008 $ 9,716 27.77% 90 30.41% 2014 $ 2,906 2013 $ 2,383 (2,906) (283) $ 9,648 $ 9,122 30.12% 26.12% 2012 2011 2010 2009 2008 2007 $ 2,277 $ 1,654 $ 1,336 $ 1,425 $ 1,893 $ 1,954 (2,277) (1,654) (1,336) (1,425) (1,893) (1,954) $ 9,197 $ 8,310 $ 7,860 $ 7,601 $ 7,430 $ 7,042 24.76% 19.90% 17.00% 18.75% 25.48% 27.75% 91 City of Iowa City, Iowa Votes to Required Supplementary Information - Pension Liability Municipal Fire and Police Retirement System of Iowa Year ended June 30, 2016 Changes of benefit terms: There were no significant changes of benefit terms. Changes of assumptions: Effective July 1, 2014, two additional steps were taken to phase in the 1994 Group Annuity Mortality Table for post-retirement mortality. The two additional steps result in weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Mortality Table. 92 City of Iowa City, Iowa Required Supplementary Information -Schedule of the City's Proportionate Share of the Net Pension Liability Iowa Public Employees' Retirement System Last Fiscal Year` (amounts expressed in thousands) ' In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those yews for which information is available. 93 2016 2015 City's proportion of the net pension liability 0.4159256% 0.4378904% City's proportionate share of the net pension liability $ 20,549 $ 17,366 City's covered -employee payroll 28,495 28,654 City's proportionate share of the net pension liability as a percentage of its covered -employee payroll 72.11% 60.61% Plan fiduciary net position as apercentage of the total pension liability 85.19% 87.61% ' In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those yews for which information is available. 93 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Iowa Public Employees' Retirement System Last Fiscal Year (amounts expressed in thousands) Statutorily required contributions Contributions in relation to the statutorily required contribution Contribution deficiency (excess) City's covered -employee payroll Contributions as a percentage of covered -employee payroll 2016 $ 2,540 2015 $ 2,545 (2,540) (2,545) $ 28,448 $ 28,495 8.93% 94 8.93% 2014 $ 2,559 2013 $ 2,442 (2,559) (2,442) $ 28,654 $ 28,170 8.93% 8.67% 2012 2011 2010 2009 2008 2007 $ 2,327 $ 1,877 $ 1,780 $ 1,659 $ 1,522 $ 1,384 (2,327) (1,877) (1,780) (1,659) (1,522) (1,384) $ 28,833 $ 27,013 $ 26,764 $ 26,133 $ 25,151 $ 24,073 8.07% 6.95% 6.65% 6.35% 6.05% 5.75% 95 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2016 Changes of benefit terms: Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final average salary changed from the highest three to the highest five years of covered wages. The vesting requirement changed from four years of service to seven years. The early retirement reduction increased from 3 percent per year measured from the member's first unreduced retirement age to a 6 percent reduction for each year of retirement before age 65. Changes of assumptions: The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: • Decreased the inflation assumption from 3.25 percent to 3.00 percent • Decreased the assumed rate of interest on member accounts from 4.00 percent to 3.75 percent per year. • Adjusted male mortality rates for retirees in the Regular membership group. • Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 year period. The 2010 valuation implemented the following refinements as a result of a quadrennial experience study: • Adjusted retiree mortality assumptions. • Modified retirement rates to reflect fewer retirements. • Lowered disability rates at most ages. • Lowered employment termination rates • Generally increased the probability of terminating members receiving a deferred retirement benefit. • Modified salary increase assumptions based on various service duration. The 2007 valuation adjusted the application of the entry age normal cost method to better match projected contributions to the projected salary stream in the future years. It also included in the calculation of the UAL amortization payments the one-year lag between the valuation date and the effective date of the annual actuarial contribution rate. FZ City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2016 The 2006 valuation implemented the following refinements as a result of a quadrennial experience study: • Adjusted salary increase assumptions to service based assumptions. • Decreased the assumed interest rate credited on employee contributions from 4.25 percent to 4.00 percent. • Lowered the inflation assumption from 3.50 percent to 3.25 percent. • Lowered disability rates for sheriffs and deputies and protection occupation members. 97 City of Iowa City, Iowa Required Supplementary Information — Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2016 Ml UAAL As a Actuarial Actuarial Actuarial Percentage of Valuation Fiscal Value of Accrued Unfunded AAL Funded Covered Date Year Assets Liability (AAL) (UAAL) Ratio Covered Payroll Payroll July 1, 2010 June 30, 2011 $ $ 6,893,438 $ 6,893,438 0.00% $ 31,505,702 21.9% July 1, 2012 June 30, 2013 $ $ 7,163,715 $ 7,163,715 0.00% $ 34,992,423 20.5% July 1, 2014 June 30, 2015 $ $ 5,150,697 $ 5,150,697 0.00% $ 35,972,442 14.3% Ml NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Economic Development Fund — accounts for revenue and expenditures of economic development activities. Metropolitan Planning Organization of Johnson County Fund — accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECT FUND Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Other Construction Fund - accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Due from other governments Restricted assets: Equity in pooled cash and investments Total assets June 30, 2016 (amounts expressed in thousands) $ 237 $ Capital Special Revenue Projects Metropolitan - Planning 292 Organization - Economic ofJohnson Other Development County Construction Total $ 237 $ 272 $ 1,717 $ 2,226 292 - - 292 - - 206 206 1 1 17 19 - 49 1,105 1,154 44 - 6,707 6,751 $ 574 $ 322 $ 9,752 $ 10,648 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 46 $ 6 $ 113 $ 165 Contracts payable - - 230 230 Accruedliabilifies - 14 - 14 Liabilities payable from restricted assets: Advances from grantors - - 47 47 Total liabilities Deferred inflows of resources: Unavailable revenues: Succeeding year property taxes Grants Other Total deterred inflows of resources Fund balances: Restricted Total fund balances Total liabilities, deferred inflows of resources and fund balances 46 20 390 456 289 - 289 - 524 524 - - 89 89 289 613 902 239 302 8,749 9,290 239 302 8,749 9,290 $ 574 $ 322 $ 9,752 $ 10,648 100 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2016 (amounts expressed in thousands) Revenues Capital Special Revenue Projects Metropolitan Property taxes Planning - $ Organization $ 1,292 Economic ofJohnson Other Development County Construction Total Revenues 1,030 (260) Current 1,064 Property taxes $ 1,292 $ - $ - $ 1,292 Intergovernmental 30 293 3,082 3,405 Charges for services - - 395 395 Use of money and property 3 2 27 32 Miscellaneous - 4 374 378 Total revenues 1,325 299 3,878 5,502 Expenditures 1,030 (260) Current 1,064 Other Financing Sources (Uses) Public safety - - 57 57 Public works - - 732 732 Culture and recreation - - 219 219 Community and economic - - development 295 559 158 1,012 General government - - 102 102 Capital outlay - - 2,316 2,316 Total expenditures 295 559 3,584 4,438 Excess (deficiency) of revenues over (under) expenditures 1,030 (260) 294 1,064 Other Financing Sources (Uses) Issuance of debt - - 3,054 3,054 Premium on issuance of bonds - - 143 143 Transfers in - 270 2,017 2,287 Transfers out (792) - (1,259) (2,051) Total other financing sources and (uses) (792) 270 3,955 3,433 Net change in fund balances 238 10 4,249 4,497 Fund Balances, Beginning 1 292 4,500 4,793 Fund Balances, Ending $ 239 $ 302 $ 8,749 $ 9,290 101 102 NONMAJOR ENTERPRISE FUNDS Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing services to the general public on a continuing basis are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category are as follows: Airport Fund — accounts for the operation and maintenance of the airport facility. Cable Television Fund — accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. 103 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30, 2016 (amounts expressed in thousands) Liabilities Current liabilities Accounts payable Cable - 5 Contracts payable Airport Television Total Assets 2 - 2 Current assets: 2 - 2 Equity in pooled cash and investments $ 486 $ - $ 486 Receivables: Accounts and unbilled usage 27 - 27 Due from other governments 167 - 167 Total current assets 680 - 680 Noncurrent assets: 40 - 40 Restricted assets: 51 - 51 Equity in pooled cash and investments 111 - 111 Other post employment benefits asset 4 - 4 Capital assets: Pension related deferred inflows 5 Land 12,158 - 12,158 Buildings 5,145 - 5,145 Improvements other than buildings 396 - 396 Machinery and equipment 281 - 281 Infrastructure 17,523 - 17,523 Accumulated depreciation (7,725) - (7,725) Construction in progress 217 - 217 Total noncurrent assets 28,110 - 28,110 Total assets 28,790 - 28,790 Deferred Outflows of Resources Pension related deferred outflows 7 - 7 Liabilities Current liabilities Accounts payable 5 - 5 Contracts payable 189 - 189 Accmedliabilifies 2 - 2 Employee vested benefits 2 - 2 Total current liabilities 198 - 198 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 10 - 10 Employee vested benefits 1 - 1 Net pension liability 40 - 40 Total noncurrent liabilities 51 - 51 Total fiabilifies 249 - 249 Deferred Inflows of Resources Pension related deferred inflows 5 - 5 Net Position Net investment in capital assets 27,995 - 27,995 Restricted for future improvements 100 - 100 Unrestricted 448 - 448 Total net position $ 28,543 $ - $ 28,543 104 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2016 (amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating loss Nonoperating Revenues: Operating grants Interest income Total nonopemting revenues Loss before capital contributions and transfers Capital contributions Transfers in Transfers out Reassignment of Cable Television to governmental activities Change in net position Net Position, Beginning Net Position, Ending Cable Airport Television Total $ 333 $ - $ 333 3 3 336 336 72 - 72 171 - 171 393 - 393 636 - 636 975 - 975 1,611 - 1,611 (1,275) - (1,275) 128 128 5 5 133 133 (1,142) - (1,142) 260 260 152 152 - (1,571) (1,571) (82) (82) (730) (1,653) (2,383) 29,273 1,653 30,926 $ 28,543 S - $ 28,543 105 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2016 (amounts expressed in thousands) Cable Airport Television Total Cash Flows From Operating Activities Receipts from customers and users $ 338 $ - $ 338 Payments to suppliers (574) - (574) Payments to employees (74) - (74) Net cash flows used for operating activities (310) - (310) Cash Flows From Noncapital Financing Activities Operating grants received 317 - 317 Transfers from other funds 152 - 152 Transfers to other funds - (1,526) (1,526) Repayment of advances from other funds (462) - (462) Net cash flows from (used for) noneapital financing activities 7 (1,526) (1,519) Cash Flows From Capital and Related Financing Activities Capital grants received 907 - 907 Acquisition and construction of property and equipment (122) - (122) Net cash flows from capital and related financing activities 785 - 785 Cash Flows From Investing Activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating loss to net cash Bows used for operating activities: Operating loss Adjustments to reconcile operating loss to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Accounts payable Employee vested benefits Deposits Net pension liability Deferred inflows of resources Other post employment benefits asset/obligation Total adjustments Net cash flows used for operating activities 5 5 487 (1,526) (1,039) 110 1,526 1,636 $ 597 $ - $ 597 $ (1,275) $ - $ (1,275) 975 975 1 - 1 (10) (10) 1 - 1 6 6 (8) (8) 1 - 1 965 965 $ (310) $ - $ (310) 106 INTERNAL SERVICE FUNDS Internal Service Funds account for goods and services provided by one department to other City departments on a cost -reimbursement basis. The funds in this category are: Equipment Maintenance Fund — accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund — accounts for the support services of photocopying, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund — accounts for the property, liability, Workers' Compensation and health insurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund — accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including the operation and replacement of equipment. 107 CITY OF IOWA CITY COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS Assets Current assets: Equity in pooled cash and investments Receivables: Accounts and unbilled usage Interest Due from other governments Inventories Total current assets Noncurrent assets: Restricted assets: Other post employment benefits asset Capital assets: Land Buildings Improvements other than buildings Machinery and equipment Infrastructure Accumulated depreciation Construction in progress Total noncurrent assets Total assets Deferred Outflows of Resources Pension related deferred outflows Liabilities Current liabilities: Accounts payable Accrued liabilities Employee vested benefits Total current liabilities Noncurrent liabilities: Employee vested benefits Net pension liability Other post employment benefits obligatior Total noncurrent liabilities Total liabilities Deferred Inflows of Resources Pension related deferred inflows Net Position Net investment in capital assets Unrestricted Total net position June 30, 2016 (amounts expressed in thousands) Equipment Maintenance Central Services Loss Reserve Information Technology Total $ 12,513 $ 673 $ 13,447 $ 2,650 $ 29,283 - - 144 - 144 30 2 34 7 73 43 - - - 43 471 - - 471 13,057 675 13,625 2,657 30,014 19 21 40 45 7 165 - 45 1,298 - - 243 1,541 50 - - - 50 17,628 812 24 2,473 20,937 - 31 - 2,385 2,416 (11,496) (260) (23) (2,800) (14,579) 179 - - 37 216 7,723 583 22 2,338 10,666 20,780 1,258 13,647 4,995 40,680 83 3 18 91 195 810 7 165 49 1,031 27 1 2,845 24 2,897 35 1 3 18 57 872 9 3,013 91 3,985 27 1 3 15 46 494 17 95 542 1,148 - 6 - 82 88 521 24 98 639 1,282 1,393 33 3,111 730 5,267 61 2 10 71 144 7,704 583 1 2,338 10,626 11,705 643 10,543 1,947 24,838 $ 19,409 $ 1,226 $ 10,544 $ 4,285 $ 35,464 108 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For the Year Ended June 30, 2016 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues Charges for services $ 5,577 $ 241 $ 9,083 $ 1,861 $ 16,762 Total opem5ng revenues 5,577 241 9,083 1,861 16,762 Operating Expenses: Personal services 876 35 202 993 2,106 Commodities 1,435 5 62 115 1,617 Services and charges 602 174 9,202 551 10,529 2,913 214 9,466 1,659 14,252 Depreciation 1,389 65 2 258 1,714 Total opem5ng expenses 4,302 279 9,468 1,917 15,966 Operating income( loss) 1,275 (38) (385) (56) 796 Nonoperating Revenues: Gain on disposal of capital assets 291 - - 3 294 Interest income 42 3 46 8 99 Total nonopemting revenues 333 3 46 11 393 Income (loss) before transfers 1,608 (35) (339) (45) 1,189 Transfers in 401 - - 127 528 Transfers out - - - (50) (50) Change in net position 2,009 (35) (339) 32 1,667 Net Position, Beginning 17,400 1,261 10,883 4,253 33,797 Net Position, Ending $ 19,409 $ 1,226 $ 10,544 $ 4,285 $ 35,464 109 CITY OF IOWA CITY. IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2016 (amounts expressed in thousands) Cash Flows From Capital and Related Equipment Central Loss Information Financing Activities Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users $ 5,665 $ 241 $ 8,997 $ 1,861 $ 16,764 Payments to suppliers (1,443) (177) (9,186) (769) (11,575) Payments to employees (904) (36) (472) (1,016) (2,428) Net cash flows from (used for) operating activities 3,318 28 (661) 76 2,761 Cash Flows From Noncapital Financing 1,389 65 2 258 1,714 Activities 45 3 54 11 113 Transfers from other funds 401 - - 127 528 Transfers to other funds 1,384 11 (607) (50) (50) Net cash flows from noncapital financing 11.129 662 14,054 3.162 29,007 activities 401 673 $ 13.447 $ 77 478 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (2,673) (20) - (679) (3,372) Proceeds from sale of property 293 3 296 Net cash flows used for capital and related financing activities (2,380) (20) (676) (3,076) Cash Flows From Investing Activities 1,389 65 2 258 1,714 Interest on investments 45 3 54 11 113 Net increase (decrease) in cash and cash equivalents 1,384 11 (607) (512) 276 Cash and Cash Equivalents, Beginning 11.129 662 14,054 3.162 29,007 Cash and Cash Equivalents, Ending $ 12513 $ 673 $ 13.447 $ 2.650 $ 29,283 Reconciliation of operating income (loss) to net cash flows from (used for) operating activities: Operating income (loss) $ 1,275 $ (38) $ (385) $ (56) $ 796 Adjustments to reconcile operating income (loss) to net cash flows from (used for) operating activities: Depreciation expense 1,389 65 2 258 1,714 Changes in: Receivables: Accounts and unbilled usage 41 - (86) - (45) Due from other governments 47 - - - 47 Inventories 37 - - - 37 Accounts payable 557 2 78 (103) 534 Accrued liabilities 5 - (265) - (260) Employee vested benefits 7 (1) - (3) 3 Net pension liability 78 3 16 83 180 Deferred outflows of resources 2 - (1) - I Deferred inflows of resources (104) (4) (21) (112) (241) Other post employment benefits asset/obligation (16) 1 1 9 (5) Total adjustments 2.043 66 (2_76) 132 1.965 Net cash flows from (used for) operating activities $ 3.318 $ 28 $ (661) S 76 $ 2.761 110 AGENCY FUND The Agency Fund accounts for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The fund in this category is: Project Green Fund — accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. 111 CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS Project Green Assets Equity in pooled cash and investments Total assets Liabilities Accounts payable Due to agency Total liabilities For the Year Ended June 30, 2016 (amounts expressed in thousands) Balance Balance July 1, 2015 Increases Decreases June 30, 2016 $ 151 $ 77 $ 53 $ 175 $ 151 $ 77 $ 53 $ 175 $ 5 $ 10 $ 5 $ 10 146 67 48 165 $ 151 $ 77 $ 53 $ 175 112 Statistical Section Tabs Statistical Section This part of the City of Iowa City's comprehensive annual financial report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 115 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 120 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 130 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 140 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 142 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annualfinancial reportfor the relevantyear. 113 114 n C 0 p C 0 p G 0 °a C� cl� cl� 0 Q' ii lr� ilc�i N FF a N FF i F n C 0 p C 0 p G 0 °a C� cl� cl� 0 Q' ii lr� ilc�i N FF a N FF ii F �zf4 D z�4 '�Czfyi� n C 0 p C 0 p G 0 °a °a C 0 Q' ii ilc�i N FF a N FF ii F n C 0 p C 0 p G 0 °a °a C 0 Q' N FF N N FF Y" F �zf4 D z�4 '�Czfyi� 41 n C 0 p C 0 p G 0 °a °a C 0 Q' N FF N N FF Y" F �zf4 D z�4 '�Czfyi� n m C `s w �zaaazz H �o c ' II' ll EI II fl kl ' 11'• 11 hl II- fl° fl II II II 'fl ` IC 11 ' bC f l EI w �zaaazz H �o c .ti w O r O w M M ,ti w r w r O vl O N IT T NII o vl w V .ti T O w n V O M r V M w O V M O N T N V N M O N V� M r V N V vl r V e w T N N � O� O N O O N T O� r w vl w r N r fr fr O V .ti T N N N V3 V3 V3 V3 V3 V3 V3 V3 p N O r No'n rnrn N rw mmh wrn rnN o o'n vv': mNrn rn o j, 06 v m u � o o„ -.N ri �r"o oo v,Ny"oo r" ori Nor" v mo � oo rNi"M o0 0 °�' itl .5' -.vm rnv v wr. wo.-. av Ov O N O NDN mom° G oN c ryvv r'n ryh.-. rno w'n o N rvv � `� N N vf.m N N N'n rnro oov w-1 Sv Now GIF 0 0 c 'n ovw wr o w rr w. -.o 0 0 � mmN N o �w� o� oNo 00 ov oN roh woo h r. ,-. vmm m o C7 ri m c 0 0 o N � N wvrn ow oN o r r ,-.w r o c o v,-•ro ri roro � w,N"oro r" �ro rnN oo foo v '-*+ r,� N o � w cy m o � U j v m m a c w rr rr CITY OF IOWA CITY, IOWA GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Local Option Utility Yeas Property Tax Road Use Tax Hotel/Motel Tax Sales Tax' Franchise Fee' Total 2007 42,221 5,305 683 - - 48,209 2008 44,101 5,432 734 - - 50,267 2009 47,861 5,254 713 - - 53,828 2010 50,256 5,525 699 8,141 47 64,668 2011 48,831 6,068 776 8,912 868 65,455 2012 51,374 6,394 811 8,644 822 68,045 2013 51,836 6,589 872 8,858 918 69,073 2014 51,331 6,745 967 466 1,031 60,540 2015 53,056 7,231 1,057 - 902 62,246 2016 53,878 8,320 1,079 - 874 64,151 1% Local Option Sales Tax went into effect 7/1/09 and will be effective through 6/30/13. 1 1% Utility Franchise Fee went into effect 4/1/10. 120 CITY OF IOWA CITY, IOWA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Yens (per $1,000 assessed valuation) Source: 'Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor Note: Includes Johnson County, City of Iowa City Assessor, and Agricultural Extension levies Tax rates are per $1,000 of assessed value. 122 Overlapping Rates Total City of Iowa City Iowa City Kirkwood Direct & Collection Operating Debt Service Total City Johnson School Community State of Overlapping Year Millage Millsee Millsee Coun ,r District College Iowa Rates 2007 13.423 3.879 17.302 6.415 13.632 0.872 0.004 38.225 2008 13.511 3.786 17.297 6.823 13.852 0.855 0.004 38.831 2009 13.414 4.303 17.717 7.803 14.192 0.852 0.004 40.568 2010 13.634 4.219 17.853 7.708 14.191 0.840 0.003 40.595 2011 13.319 4.438 17.757 7.540 14.690 0.926 0.003 40.916 2012 13.193 4.649 17.842 7.320 14.591 0.999 0.003 40.755 2013 12.826 4443 17.269 7.075 14.073 1.079 0.003 39.499 2014 12.775 4030 16.805 7.077 13.688 1.065 0.003 38.638 2015 12.575 4.130 16.705 7.062 13.700 1.058 0.003 38.528 2016 12.822 3.829 16.651 7.228 13.868 1.061 0.003 38.811 Source: 'Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor Note: Includes Johnson County, City of Iowa City Assessor, and Agricultural Extension levies Tax rates are per $1,000 of assessed value. 122 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. I Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. 123 Percent of Total as Collection Total Tax Current Tax Levy Delinquent Tax Total Tax a Percent of Year Levied Collections Collected Collectionsi Collections Levy 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 2009 43,168 43,118 99.9 18 43,136 99.9 2010 45,393 45,318 99.8 17 45,335 99.9 2011 47,789 47,826 100.1 8 47,834 100.1 2012 49,595 49,543 99.9 1 49,544 99.9 2013 50,407 50,139 99.5 3 50,142 99.5 2014 50,307 49,835 99.1 1 49,836 99.1 2015 51,609 51,292 99.4 3 51,295 99.4 2016 56,076 52,074 92.9 0 52,074 92.9 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. I Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. 123 CITY OF IOWA CITY, IOWA PRINCIPAL TAXPAYERS Sources: ICity of Iowa City Assessor's Office - 2015 Annual Report 124 Current Year and Niue Years Ago (amounts expressed in thousands) 2007 2016 % of Total % of Total Taxable Taxable Taxable Taxable Teo largest taxaaversr Type of Business Valuation Rank Valuadon Valuadon Rank Valuadon ACT Inc (Am College Testing Prgrm) Educational Testing Service $ 31,215 2 0.70 % $ 47,639 1 L52 Mid -American Energy Company Public Gas and Electric Utility 41,455 1 0.92 42,664 2 1.36 Ann Gerdin Trust(formerly Russell Gerdin) Warehousing - - N/A 22,803 3 0.73 Dealer PropertieslC LLC (Billion Auto) Car Dealerships - - N/A 18,889 4 0.60 Proctor & Gamble LLC Manufacturing Company - - N/A 16,414 5 0.52 Christian Retirement Services Retirement Community - - N/A 15,667 6 0.50 Midwestone Bank Finanacial - - N/A 15,014 7 0.48 Vesper Iowa City LL C Real Estate Developer - - N/A 14,027 8 OA5 Alpha Inc Industrial - - N/A 13,860 9 0.44 National Computer Systems (Pearson) Information Services 16,016 6 0.36 12,815 10 0.41 Jame A and L orreta Clark Apartments 27,586 3 0.62 - - N/A Kolrin Deve Co Inc (S wthgate Dev Co) Real Estate Developer 21,765 4 0.49 - - N/A Plaza Towers LLC Condo/Hotel/Commercial space 16,137 5 0.36 - - N/A MEHSM LC(Sycarowe Mall) Shopping Mall 14,610 7 0.33 - - N/A United Natural Foods WholesaleDistribution Company 12,948 8 0.29 - - N/A Russell Gerdin Trucking Company 11,164 9 0.25 - - NSA University View Partners Apartments 11,088 10 0.25 - - N/A Total $ 203,984 4.55 % $ 219,792 7.01 40 Sources: ICity of Iowa City Assessor's Office - 2015 Annual Report 124 125 CITY OF IOWA CITY, IOWA PRINCIPAL WATER SYSTEM CUSTOMERS Current Year and Nine Years Ago Sources: City oflowa City Revenue Division 126 2007 2016 Customer Name Charges Rank Percentage Charge Rank Percentage Proctor & Gamble $ 635,147 I 7.55 % $ 673,690 I 7.69 % Vets 138,495 2 1.65 104,250 2 1.19 Mercy Hospital 75,140 3 0.89 64,349 3 0.73 Campus Apartments 38,298 5 0.46 61,112 4 0.70 Mark IV Apts 45,574 8 0.54 53,473 5 0.61 Dolphin Lake Point (Rus Properties Mngmt) 62,170 6 0.74 50,139 6 0.57 University of Iowa (Mayflower Apartments) - - N/A 46,061 7 0.53 Iowa City Community School District - - N/A 43,465 8 0.50 CCAL 100 Hawk Ridge Drive - - N/A 39,301 9 0.45 Oaknoll Retirement Residence - - N/A 37,955 IO 0.43 Pollution Control 68,315 4 0.81 - - N/A Roberts 54,615 7 0.65 - - N/A Len Corp 44,200 9 0.53 - - N/A Seville Apartments 35,448 10 O42 - - N/A $ 1,197,402 1413 % $ 1,173,795 13.40 % Total Water System Charges $ 8,414,310 $ 8,758,683 Sources: City oflowa City Revenue Division 126 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Char¢es 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 2011 236,838,370 7,661,898 2012 246,618,257 7,953,738 2013 254,616,773 8,194,467 2014 239,790,719 7,778,364 2015 240,423,612 8,161,522 2016 255,524,943 8,758,683 Sources: City of Iowa City Revenue Department 127 Customer Name University of Iowa Proctor & Gamble Iowa City Landfill Vets Hosiptal Mercy Hospital Dolphin Lake Point (Rus Properties Mngmt) University of Iowa Mayflower Campus Apartments CCAL 100 Hawk Ridge Drive Mark IV Apts Roberts Dairy Sheraton Hotel Total Sewer System Charges Sources: City o£Iowa City Revenue Department CITY OF IOWA CITY, IOWA PRINCIPAL SEWER SYSTEM CUSTOMERS Current Year and Nine Years Ago $ 11,084,369 128 $ 12,022,203 2007 2016 Charges Rauk Perceutaee Charge Rank Perceutaee $ 2,173,296 1 19.61 % $ 1,900,317 I 15.81 % 1,237,851 2 11.17 893,069 2 7.43 57,572 IO 0.52 219,432 3 1.83 193,077 3 1.74 119,193 4 0.99 124,590 5 1.12 102,693 5 0.85 102,653 6 0.93 76,609 6 0.64 68,318 8 0.62 73,827 7 0.61 90,091 7 0.81 72,228 8 0.60 - - N/A 68,909 9 0.57 - - N/A 58,512 IO 0.49 130,549 4 1.18 - - N/A 60,021 9 0.54 - - N/A $ 4,238,018 3&23 % $ 3,584,789 29.82 % $ 11,084,369 128 $ 12,022,203 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Char¢es 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 2009 276,455,246 12,499,949 2010 265,375,857 12,541,905 2011 280,303,237 12,748,695 2012 282,134,840 12,784,321 2013 285,472,392 12,883,641 2014 269,494,125 12,382,031 2015 266,830,947 12,278,153 2016 270,547,701 12,022,203 Sources: City of Iowa City Revenue Department 129 � -(� } 7 � J ; e w \ - ) } 2 .; \ { ) / , , , , , , , , , ) ) ƒ ) 777 \\) \ \ ) \ _ _ _ _ _ _ ,, , , , , , , , k - « « \ \ \ \ \ �]) } \ )) / \ a 9z \ z® /)` \ - \\\ )\// CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES' Fiscal Year Ended June 30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Notes: Principal 6,700 7,323 8,418 9,354 10,386 13,294 16,465 13,560 12,564 13,230 Last Ten Fiscal Years (amounts expressed in thousands) Interest 3,464 3,556 3,364 3,064 2,889 2,543 2,339 1,903 1,669 1,475 Total Debt Service 10,164 10,879 11,782 12,418 13,275 15,837 18,804 15,463 14,233 14,705 Total General Governmental Expenditures and Transfers 93,639 99,178 102,607 108,950 120,424 119,242 129,814 104,394 111,632 112,832 1 General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. z Beginning in FY13, Taxable Urban Renewal Revenue Bonds are also included. 132 Ratio of Debt Service to General Expenditures 11 : 1.00 11 : 1.00 11 : 1.00 11 : 1.00 11 : 1.00 13 : 1.00 .14 : 1.00 .15 : 1.00 .13 : 1.00 .13 : 1.00 CITY OF IOWA CITY, IOWA COMPUTATION OF DERECT AND OVERLAPPING DEBT June 30, 2016 (amounts expressed in thousands, except per capita) I Long term debt outstanding includes only GO debt. City Property Assessed Value of 4,950,559 came from the Iowa Department of Management 3 Population for FY 16 of 74,220 came from the US Census Bureau Source: Johnson County Auditor's Office. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 133 Total General Percent Amount Long -Term Applicable Applicable Name of Direct Debt to the City of to the City of Debt/Actual Governmental Unit Outstandin¢ Iowa City Iowa City Market Value S Per Capita City of Iowa City $ 58,700 100.00 % $ 58,700 1.19 % $ 790.8974 Iowa City Community School Districts 6,320 56.83 3,591 0.07 48.3895 Johnson County' 12,690 42.23 5,359 0.11 72.1985 Clear Creek- Amami Community School Districts 61,465 0.05 28 0.00 0.3815 Kirkwood Comm. College' 87,311 13.69 11,950 0.24 161.0026 Total $ 226,486 $ 79,628 $ 1,072.8695 Per capita assessed value $ 66,701 I Long term debt outstanding includes only GO debt. City Property Assessed Value of 4,950,559 came from the Iowa Department of Management 3 Population for FY 16 of 74,220 came from the US Census Bureau Source: Johnson County Auditor's Office. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 133 i t N � N m m o M o N N N � 0 R V �O v1 fr o ✓� N ~ p V3 V3 ? K V Nf O O ti a � p m ^ d d o N w M en o w m h �M V N fr W O W o O W v1 M V ~ N V1 �O o fr T fr W N N fr W O W o fr V T O N M V M O T W O V O N ti ti T O T o f1 V W V1 I T O � 0 O T V1 W V O V1 V N � ~ � p F C n .mow 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 L 0 0 Y 0 0 R O 0 0 0 0 0 0 0 0 0 0 0 0 00 P V1 V1 V1 P M � �O lr� D6 lr� 06 O P V1 V1 P o 00 P 00 � V1 N p o0 00 00 N� O �O � R m �O o0 o Vr R L y G bL y G N S G H b9 0 0 0 0 L 0 0 Y 0 0 R O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 � OA W 00 P V1 V1 V1 P M � �O lr� D6 lr� 06 O P V1 V1 P o 00 P 00 � V1 N p o0 00 00 N� O �O � R m �O o0 o Vr G N S G H 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O y ti OA F N m OA M m lr� D6 lr� 06 O P V1 V1 P o 00 P 00 � V1 N p o0 00 00 N� O �O N m �O o0 o Vr G H b9 o fyi b9 Pr vv 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O y ti OA F N m OA M m lr� D6 lr� 06 O P V1 V1 P O 00 P 00 � V1 N 00 P � 00 O �O 00 00 O� OA O M G H b9 b9 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O y ti OA F N M OA M 00 O 00 O M G H b9 b9 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O L Qi b9 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Net Revenue Annual Debt Service' Ended Available for Ratio of June30 Revenue Expenses' Debt Service Principal Interest Total Coverage Parking Reveuue' 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 2010' 5,509 3,149 2,360 390 504 894 2.64 2011 5,389 2,920 2,469 420 391 811 3.04 2012 4,945 3,034 1,911 500 339 839 2.28 2013 5,122 3,549 1,573 515 324 839 1.87 2014 5,365 2,969 2,396 530 308 838 2.86 2015' 5,620 3,828 1,792 540 254 794 2.26 2016 - - - - - - - Wastewater Treatment Revenue 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 2008' 13,332 4,581 8,751 4,105 3,071 7,176 1.22 2009' 13,462 5,202 8,260 4,260 2,813 7,073 1.17 2010' 13,174 5,050 8,124 4,205 2,307 6,512 1.25 2011' 13,281 5,477 7,804 1,840 2,054 3,894 2.00 2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52 2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29 2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31 Water Revenues 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 2008' 9,258 5,348 3,910 955 1,229 2,184 1.79 2009' 8,833 5,726 3,107 995 1,171 2,166 1.43 2010' 8,336 5,153 3,183 680 1,055 1,735 1.83 2011 8,354 5,464 2,890 1,110 902 2,012 1.44 2012' 8,649 5,653 2,996 1,200 861 2,061 1.45 2013' 9,342 6,348 2,994 845 758 1,603 1.87 2014' 8,613 5,818 2,795 1,335 650 1,985 1.41 2015 8,715 5,632 3,083 1,380 610 1,990 1.55 2016 9,323 5,387 3,936 1,715 579 2,294 1.72 Notes: 'Excludes depreciation and interest. 'Includes principal and interest of revenue bonds only. ' Parking Revenue bonds ratio of'Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. s Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 6Refimded Revenue Bonds paid are excluded from the principal of Annual Debt Service. 'Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service. 136 R O O O O O O O O O O O O O O O O O R u O O O O O O O O O O O O O O O O O 0 w O O O O O O O O O O O O O O O O O a � W vi vi vi vi o 0 o vi vi vi vi vi o o vi o 0 •� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a G N N N N N N N N N N N N N N a R H ti G L N d � vl vl vl vl vl vl vl vl vl vl vl vl vl vl O vl O Vl �„� O m m a Co Co N o� P Ci Ch N 0 w mll N r-� C� m a •� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a G N N N N N N N N N N N N N N a R H ti G L L N d � b C O ani v W 0 r-� N o� .. N o� m N r-� C� m m b R W O� vl h h vl �O � CO CO vl O O O O O O h F N b N ti N 3 0 N 0 06 O O O O O O O O O O O O O O O O O O p O O O O O O O O O O O O O O O O O O p R O O O �/l O O vl O O O O vl O vl vl O O V, N co O O of n m N �----- •� � N .. m � n N n.. N � N �o � 0.i a p, 59 C C a y R .. .. .. .. N - N N - N N - N N N N N m m m o41 'rte' "✓ O N O N O N O N O N O N O N O N O N O N O N O N O N O N O N O N O N �..i z 2U16 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Principal $ 14,035,000 3,625,000 3,580,000 3,740,000 3,895,000 3,730,000 2,460,000 665,000 700,000 740,000 775,000 Sewer Outstanding Interest Total $ 1,175,119 985,265 762,175 614,400 458,888 303,437 185,663 127,375 93,250 57,250 19,375 $ 15,210,119 4,610,265 4,342,175 4,354,400 4,353,888 4,033,437 2,645,663 792,375 793,250 797,250 794,375 $ 37,945,000 $ 4,782,197 $ 42,727,197 Principal $ 5,505,000 1,465,000 1,455,000 1,510,000 1,565,000 1,630,000 1,690,000 1,755,000 1,280,000 1,325,000 835,000 $ 20,015,000 Water Outstanding Interest $ 567,215 517,837 452,815 401,903 347,565 288,809 225,790 158,995 103,763 60,169 18,788 $ 3,143,649 138 (continued) Total $ 6,072,215 1,982,837 1,907,815 1,911,903 1,912,565 1,918,809 1,915,790 1,913,995 1,383,763 1,385,169 853,788 $ 23,158,649 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) 139 Taxable Urban Renewal Outstanding Fiscal Year Principal Interest Total 2016 $ 130,000 $ 75,335 $ 205,335 2017 130,000 74,035 204,035 2018 135,000 72,345 207,345 2019 135,000 70,185 205,185 2020 140,000 67,485 207,485 2021 140,000 64,545 204,545 2022 145,000 61,325 206,325 2023 150,000 57,845 207,845 2024 150,000 53,945 203,945 2025 155,000 49,745 204,745 2026 160,000 45,095 205,095 2027 165,000 39,975 204,975 2028 170,000 34,365 204,365 2029 175,000 28,245 203,245 2030 185,000 21,770 206,770 2031 190,000 14,925 204,925 2032 200,000 7,800 207,800 2033 - - - Total $ 2,655,000 $ 838,965 $ 3,493,965 139 140 CITY OF IOWA CITY, IOWA DEMOGRAPHIC AND ECONOMIC STATISTICS LastTen Calendar Years Per Capita Caladar Personal Personal Average School Unumploymat Retail Year Poeelad Incomes Incomes Increase Enrollment° Rate' Sales, 2007 67,062 5,677,628 38,854 6.13 12,824 2.9 934,971,428 2008 67,831 6,062,777 40,745 4.87 12,911 3.1 958,509,729 2009 69,086 6,180,244 40,779 0.08 13,049 4.3 905,139,461 2010 67,862 6,280,167 41,048 0.66 13,319 5.0 725,329,723 2011 68,947 6,779,334 43,631 6.29 13,638 4.8 741,407,021 2012 68,947 7,155,456 45,222 3.65 13,862 4.1 767,122,555 2013 70,133 7,361,108 45,673 1.00 14,057 3.8 793,201,342 2014 71,591 7,483,942 45,535 -0.30 14,162 3.5 649,794,164 2015' 73,415 7,790,020 47,397 4.09 14,495 2.9 838,853,686 2016' 74,220 8,038,105 48,907 3.18 15,186 3.2 853,258,347 Sources and Nota: 'Personal Income and Per Capita Personal Incomebased on metropolitan Iowa City / Coralville and based on figures from Bureau of Economic Analysis. Personal Income expressed in thousands. Iowa City Community School District and local private schools 3 Iowa Workforce Development Center 4 Iowa Retail Sales& Use Report, Iowa Department of Revenue and Finance. Fiscal year ending Match 31. 'Personal Income and Per Capita Personal lncomefor 2015 and 2016 not available. Amounts projected based on average increase over previous 9 years. .US Census Bureau 140 CITY OF IOWA CITY, IOWA PRINCIPAL EMPLOYERS Current Year and Nine Yens Ago Total Employees Sources: Iowa City Area Development Group 38.8 % Note: Total number of employees is not available for 2007; percentage of total city employment by employer is not presented. 141 2007 2016 Emplovera Emplovees Rank Emplovees Rank Percentage University of Iowa 25,493 1 27,354 1 26.9 % Iowa City Community School District 1,200 5 2,346 2 2.3 Veterans Administration Medical Center 1,232 4 1,562 3 1.5 Mercy Hospital 1,262 3 1,559 4 1.5 ACT Inc (formerly American College Testing Program) 1,426 2 1,350 5 1.3 NCS Pearson 1,101 6 1,200 6 1.2 Hy -Vee 977 7 1,166 7 LI City of Iowa City 625 9 1,108 8 LI Systems Unlimited - - 890 9 0.9 International Automotive Components (formerly Len Corp) 772 8 750 to 0.7 Proctor & Gamble 514 to - - N/A Total Employees Sources: Iowa City Area Development Group 38.8 % Note: Total number of employees is not available for 2007; percentage of total city employment by employer is not presented. 141 CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full -Time Equivalent Employees as of June 30 2007 2008 2009 2010 2011 2012 2013 Public Safety Police 96.25 96.25 103.25 103.25 98 97 103 Animal Shelter 6 6 6 6 6 6 - Fire 57 57 57 57 66 65 65 Inspection Services 14.88 15.38 15.55 15.55 15.55 15.55 15.55 Public Works Public Works Admin 2 2 2 2 2 2 2 Engineering 11.6 11.35 11.35 11.35 12.1 12.1 12.1 Flood Recovery - - - - 0.4 0.4 0.4 Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 2 Recreation 15.42 15.42 15.42 15.42 15.42 15.42 15.42 Parks 13 13 13 13 13 13 13 Forestry 3 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 3 3 3 Library 42.89 43.14 43.14 43.14 43.14 43.64 43.63 Senior Center 6.31 6.31 6.31 6.31 6.31 6.5 6.5 Community and Economic Development 8.45 8.95 9.05 9.05 9.1 9.1 8.4 General Government City Council 7 7 7 7 7 7 7 City Clerk 4 4 4 4 4 4 4 City Attorney 6.6 6.6 6 6 5.6 5.6 5.6 City Manager 3 3 3 3 3 3 5 Personnel 4 4 4 4 4 4 4 Human Rights 2.5 2.5 2.5 2.5 2.5 2.5 2 Finance 26.75 26.5 26.3 26.3 26.24 27.53 23.47 Government Buildings 4.96 4.96 4.96 4.96 4.96 4.83 4.83 Energy Conservation 0.5 0.25 025 0.25 - - - Transi? 50.5 54.75 58.5 58.5 56.25 56.25 - Special Revenue Employee Benefits 0.39 0.29 0.29 0.29 0.26 0.55 0.55 CIP/Roads 2 1 2 2 - - - Flood Mitigation Grants - - - - 1.6 1.6 - Community Development 4.35 3.98 3.88 3.88 3.83 3.83 3.33 UniverCity Program - - - - - - 0.2 Traffic Engineering 4.15 4.15 4.15 4.15 4.15 4.15 4.15 Streets 23.5 23.5 25.5 25.5 25.5 25.5 25.5 MPOJC (formerly JCCOG) 6.6 6.6 6.6 6.6 6.6 6.6 5.6 Other Shared Revenues - - - - - - 1.6 Library Development I I 1 1 1 1 I Capital Project Administration - - - - 3 5 6 Internal Service Funds Information Technology 12 12.3 12.3 12.3 11.3 11.8 10.86 Equipment 11.26 11.26 11.26 11.26 11.26 11.26 10.75 Central Services 0.75 0.75 0.75 0.75 0.75 0.75 0.76 Risk Management 1.38 1.73 1.93 1.93 2.01 1.8 1.8 Business -Type Activities Parking 32.75 32.75 33.25 3325 32.75 32.75 29.25 Mass Transit3 - - - - - - 51.75 Wastewater Treatment 25.5 25.5 25.6 25.6 25.6 25.4 25.4 Water 32 32.75 32.75 32.75 32.75 32.75 32.75 Sanitation 33.85 34.85 34.85 35.85 35.85 37.85 37.85 Airport 1.6 1.6 1.75 1.75 1.75 1.75 l Cable Television° 6.19 6.19 6.44 6.44 6.69 6.63 6.63 Stmmwater 1 2 1.9 1.9 1.9 2.1 2.1 Housing Authority 13.25 13.25 13.25 13.25 13.25 13.25 13.18 Total 608.13 614.81 629.03 630.03 633.37 637.74 623.91 Source: City's Financial Plan 142 2014 2015 2016 105 105 105 65 64 64 13.55 13.55 12.85 2 2 2 12.1 12.1 12 0.38 - - 2 2 2 15.42 15.42 14.42 13 13 13 3 3 3 3 3 3 3 3 3 45.13 45.13 44.77 6.5 6.5 6.5 8.95 8.95 10.8 7 7 7 4 4 4 5.6 5.6 5.5 6 6 10.5 3 3 3 2 2 2 23.97 22.47 23.07 4.83 4.83 5.33 0.55 0.55 0.55 2.98 2.98 2.83 4.15 4.15 3.9 25.5 25.5 25.25 5.6 5.6 4.7 1.62 - - 6 5 4 9.86 9.86 9.86 10.75 10.75 10.75 0.5 0.5 0.5 1.8 1.8 1.8 26.25 26.25 23.13 5125 5125 51.13 24.4 24.65 24.65 31.75 32 32 35.85 35.85 33.35 l l l 6.63 5.63 - 2.1 2.6 2.6 12.19 10.19 10.19 615.16 607.66 598.93 I Beginning in FY13, Animal Services is reported under Police 2 Beginning in FY13, Communications Division has been moved from Finance to City Manager 3 Beginning in FY13,'I7ansit was moved finm the General Fund to an Enterprise Fund °Beginning in FY16, Cable was moved from an Enterprise Fund to the General Fund 143 Source: Various city divisions leGS[:? u Numbers are based on a calendar year and 2016 figures are compiled through 10/05/16. °Numbers are based on a calendar year and 2016 figures are compiled through 10/12/16. Numbers for FY07 and after are based on both the Nath and South Wastewater Plants. 144 CITY OF IOWA CITY, IOWA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years 2M 2011 2012 2014 2007 2016 2009 2010 2013 2015 Public Safety Police' Physical arrests 6,505 6,434 6,486 5,983 6,590 5,911 4,468 6,192 5,595 4,246 Traffic Violafions 6,684 5,827 4,460 4,446 3,403 3,761 2,499 3,718 3,356 2,188 Fire Number ofcalls answered 4,136 4,257 4,152 4,472 4,635 5,173 4,713 5,828 6,016 5,473 Inspections conducted 1,495 1,712 1,959 2,145 1,806 1,970 1,431 2,032 1,903 1,975 Parking Parking Violations 166,187 147,673 126,050 118,717 109,553 96,117 88,909 6,680 65,196 57,549 Wastewater Treatment Daily average treatment in million gallons' 9A3 12.81 1234 12.86 1037 828 9.84 M02 996 10 Maximum daily capacity ofpiant in million gallons 40A 41.0 4L0 41.1 41.1 41.1 41.1 41.1 433 433 Number of sewer system customers 22,481 22,909 23,161 23,344 23,527 23,529 24,059 24,389 24,533 25,085 Water Daily average consumption in million gallons 5.52 5.48 5.51 5.48 5.51 5.49 5.54 5.64 5.33 5.32 Maximum daily capacity of plant in million gallons 169 16.7 16.7 169 16.7 16.7 169 16.7 16.7 169 Customers by Classification Residential 22,973 23,097 23,391 23,657 23,875 24,086 24,442 24,790 23,089 23,638 Commercial 1,448 1,465 1,494 1,481 1,498 1,489 1,491 1,491 1,409 1,415 Industrial 13 14 15 15 15 15 15 15 14 14 Other 137 138 144 153 156 200 204 202 135 131 Total Customers 24,571 24,714 25,044 25,306 25,544 25,790 26,152 26,498 24,647 25,198 Sanitation Number of Customers 14,556 14,574 14,700 14,831 14,926 15,030 15,177 15,331 14,811 15,620 Tonnage 8,722 8834 8,747 8,869 8,%9 8,935 8,956 9,160 9,210 9,476 Landfill Tonnage 135,315 132,760 140,810 150,369 147,265 148,953 111,445 115,624 123,692 126,875 Source: Various city divisions leGS[:? u Numbers are based on a calendar year and 2016 figures are compiled through 10/05/16. °Numbers are based on a calendar year and 2016 figures are compiled through 10/12/16. Numbers for FY07 and after are based on both the Nath and South Wastewater Plants. 144 145 CITY OF IOWA CITY, IOWA CAPITAL ASSETS BY FUNCTION Last Ten Fiseal Years 2007 2009 2010 2011 2013 2008 2012 2014 2016 2015 Pubfic Safety Police Stafioas 1 1 1 1 1 1 1 1 1 1 PaboA units 17 17 17 18 18 18 18 20 20 20 Fire Stafions 3 3 3 3 3 4 4 4 4 4 Fire apparatus 8 9 9 9 9 11 11 11 11 10 Public Works Streets Miles 268 269 270 272 272 275 276 279 281 283 Streetlights 3,395 3,403 3,408 3,410 3,412 3,412 3,412 3,412 3,412 3,412 Culture and Recreation Library 1 1 1 1 1 1 1 1 1 1 Cemetery 1 1 1 1 1 1 1 1 1 1 Acreage 40 40 40 40 40 40 40 40 40 40 Parke 61 61 61 40 41 41 42 43 46 46 Acreage 1,600 1,603 1,603 1,335 1,354 1,441 1,506 1,897 1,897 1,902 Recreation Reaeafion centers 2 2 2 2 2 2 2 2 2 2 Swimming pools 3 3 3 3 3 3 3 3 3 3 Ball diamonds 29 31 30 30 30 30 27 27 27 27 Tennis courts 12 12 12 12 12 12 12 12 12 12 Soccer fields 25 25 20 20 20 20 20 20 20 20 Parking Fadlities 5 5 5 5 5 5 5 5 5 5 Spaces 3,100 3,085 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 Wastewater Treatment Miles of sanitary sewer 286 288 289 291 292 294 295 298 300 301 Miles of stain sewer 117 118 120 122 124 127 128 131 133 136 Number of treatment plants 2 2 2 2 2 2 2 1 1 1 Number ofservice connectors 22,481 22,576 22,875 23,093 23,308 23,529 23,851 24,175 24,533 25,085 Water Miles of water mains 260 262 263 264 264 266 268 271 273 275 Number of city owned fire hydrants 2,569 2,575 2,635 2,662 2,680 2,735 3,330 3,385 3,415 3,447 Sanitation Landfills 1 1 1 1 1 1 1 1 1 1 Acreage 200 395 395 395 395 411 411 411 418 418 Soatuo: Various city divi9 ons. 145 146 Compliance Section Tab Eid�� lly GPA & BUSI]FSS ADVISORS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, (City) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 12, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 147 www.eideboilly.com 1545 Associates Dr., Ste. 101 1 Dubuque, IA 52002-2299 1 T 563.556.1790 1 F 563.557.7842 1 EOE Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Comments involving statutory and other legal matters about the City's operations for the year ended June 30, 2016, are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City and are reported in Part IV of the accompanying Schedule of Findings and Questioned Costs. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. SGT Dubuque, Iowa December 12, 2016 148 Eid�� lly CPAs & BUSI]FSS ADVISORS Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Report on Compliance for Each Major Federal Program We have audited the City of Iowa City, Iowa's (City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2016. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on the compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perforin the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2016. 149 www.eideboilly.com 1545 Associates Dr., Ste. 101 1 Dubuque, IA 52002-2299 1 T 563.556.1790 1 F 563.557.7842 1 EOE Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. "/L7" Dubuque, Iowa December 12, 2016 150 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 U.S. Department of Housing and Urban Development: Direct program: Community Development Block Grants/ Entitlement Grants 14.218 343,080 153,049 Community Development Block Grants/ Entitlement Grants 14.218 341,521 147,657 FRA (,nl Inn 7n(, Pass-through program from: Federal Pass -Through Amounts Passed - Federal Grantor/Pass-Through CFDA Entity Identifying Federal Through to Grantor/Program or Cluster Title Number Number Expenditures Subrecipients Grants in Hawaii 14.228 08 -DRI -271 U.S. Department of Agriculture: Community Development Block Grants/ Pass-through program from: Grants in Hawaii Iowa Department of Agriculture: 08 -DRI -273 487,825 - Community Development Block Grants/ Specialty Crop Block Grant State's Program and Non -Entitlement Program - Farm Bill 10.170 15SCBGPIA0001 $ 8,189 $ 8,189 Specialty Crop Block Grant State's Program and Non -Entitlement Program - Farm Bill 10.170 12-25-B-1670 1,831 1,831 08-DRH-210 349 - Community Development Block Grants/ 10,020 10,020 U.S. Department of Housing and Urban Development: Direct program: Community Development Block Grants/ Entitlement Grants 14.218 343,080 153,049 Community Development Block Grants/ Entitlement Grants 14.218 341,521 147,657 FRA (,nl Inn 7n(, Pass-through program from: Iowa Economic Development Authority: Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii 14.228 08 -DRI -271 2,033,182 - Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii 14.228 08 -DRI -273 487,825 - Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii 14.228 08-DRIEF-276 403,898 - Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii 14.228 08-DRH-210 349 - Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii 14.228 08-DRH-010 201 - 2,925,455 - 151 Federal Federal Grantor/Pass-Through CFDA Grantor/Program or Cluster Title Number U.S. Department of Housing and Urban Development: (continued) Direct program: Home Investment Partnerships Program 14.239 Home Investment Partnerships Program 14.239 Home Investment Partnerships Program 14.239 Home Investment Partnerships Program 14.239 Public and Indian Housing 14.850 Public and Indian Housing 14.850 Section 8 Housing Choice Vouchers 14.871 Public Housing Capital Fund 14.872 Public Housing Capital Fund 14.872 Total U.S. Department of Housing and Urban Development U.S. Department of Justice: Pass-through program from: Iowa Department of Justice: Violence Against Women Formula Grants Direct program: Bulletproof Vest Partnership Program 16.588 16.607 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Pass -Through Entity Identifying Number Federal Expenditures $ 302,116 216,729 206,505 22,466 747,816 133,845 128,444 262,289 7,999,151 41,766 15,225 56,991 Amounts Passed - Through to Subrecipients $ 218,939 216,429 108,263 10,394 554,025 12,676,303 854,731 VW -16 -51 -CJ 63,583 8,827 Public Safety Partnership and Community Policing Grants 16.710 11,368 152 Federal Grantor/Pass-Through Grantor/Program or Cluster Title U.S. Department of Justice: (continued) Direct program: Edward Byrne Memorial Justice Assistance Grant Program Pass-through program from: Governor's Office of Drug Control Policy: Edward Byme Memorial Justice Assistance Grant Program Methamphetamine Drug Spots Grant Program Total U.S. Department of Justice U.S. Department of Transportation: Direct program: Airport Improvement Program Airport Improvement Program Pass-through program from: Iowa Department of Transportation: Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Iowa Department of Transportation and Metropolitan Planning Organization of Johnson County: Highway Planning and Construction Metropolitan Transportation Planning and State and Non - Metropolitan Planning and Research Federal CFDA Number 16.738 16.738 17.710 20.106 20.106 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Pass -Through Amounts Passed - Entity Identifying Federal Through to Number Expenditures Subrecipients $ 18,235 $ 12,014 13 -JAG -111736 102,872 61,724 121,107 73,738 14-HotSpots-01 8,308 6,563 20.205 STP -U-3715(636) 213,193 80,301 107,828 88,310 196,138 --70-52 1,690,999 20.205 HDP -3715(652) 71-52 785,955 20.205 IA -95-X018-371-13 149,631 20.205 16MP0-MPOJC 137,665 2,764,250 20.505 16MP0-MPOJC 52,335 153 Federal Grantor/Pass-Through Grantor/Program or Cluster Title U.S. Department of Transportation: (continued) Federal Transit Cluster: Direct program: Federal Transit — Formula Grants Pass-through program from: Iowa Department of Transportation: Bus and Bus Facilities Formula Program Total Federal Transit Cluster Pass-through program from: Iowa Department of Transportation: Enhanced Mobility of Seniors and Individuals with Disabilities Iowa Department of Public Safety: Governor's Traffic Safety Bureau: National Priority Safety Programs National Priority Safety Programs Total U.S. Department of Transportation Federal CFDA Number 20.507 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Pass -Through Entity Identifying Number Federal Expenditures $ 1,494,411 20.526 IA -34-0002-371-14, #15190 158,984 1,653,395 20.513 IA -16-X005-371-16 106,628 20.616 PAP 16-405d- M6OT, Task 21 25,462 20.616 PAP 15-405d- M6OT, Task 27 13,446 38,908 4,811,654 U. S. Environmental Protection Agency Direct program: Urban Waters Small Grants 66.440 21,203 U.S. Department of Homeland Security: Pass-through program from: Iowa Homeland Security and Emergency Management Division: Disaster Grants — Public Assistance (Presidentially Declared Disasters) Disaster Grants — Public Assistance (Presidentially Declared Disasters) Hazard Mitigation Grant Total U.S. Department of Homeland Security Total 97.036 FEMA DR -4119 -IA 108,926 97.036 FEMA DR -4187 -IA 2,562 111,488 97.039 DR -4187-0003-01 373,181 154 484,669 Amounts Passed- Throughto Subrecipients $ 18,217,042 $ 945,052 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2016 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Iowa City, Iowa, and is presented on the modified accrual basis of accounting for governmental funds and the full accrual basis of accounting for proprietary funds. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. The City received federal awards both directly from federal agencies and indirectly through pass-through entities. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. Note 2 - Significant Accounting Policies Governmental and proprietary fund types account for the City's federal grant activity. Therefore, expenditures in the schedule of expenditures of federal awards are recognized on the modified accrual basis — when they become a demand on current available financial resources in the governmental fund types and on the full accrual basis — when expenditures are incurred in the proprietary fund types. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimis cost rate. 155 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2016 Part L• Summary of the Independent Auditor's Results: Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses None reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516: No Identification of major programs: Name of Federal Program CFDA Number Highway Planning and Construction 20.205 Federal Transit Cluster Federal Transit—Formula Grants 20.507 Bus and Bus Facilities Formula Program 20.526 Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualified as low-risk auditee? Yes Part IE• Findings Related to the Financial Statements: There were no findings to report. 156 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2016 Part III: Findings and Questioned Costs for Federal Awards: There were no findings and questioned costs to report. Part IV: Other Findings Related to Required Statutory Reporting: 2016 -IA -A Certified Budget -Disbursements during the year ended June 30, 2016, did not exceed the amount budgeted. 2016 -IA -B Questionable Expenditures - We noted no expenditures that we believe may fail to meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. 2016 -IA -C Travel Expense - No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 2016 -IA -D Business Transactions - No business transactions between the City and City officials or employees were noted. 2016 -IA -E Bond Coverage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is adequate for current operations. 2016 -IA -F Council Minutes -No transactions were found that we believe should have been approved in the City Council minutes but were not. 2016 -IA -G Deposits and Investments -No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were noted. 2016 -IA -H Revenue Bonds - No instances of non-compliance with the provisions of the City's revenue bond resolutions were noted. 2016 -IA -I Annual Urban Renewal Report - The urban renewal annual report was properly approved and certified to the Iowa Department of Management on or before December 1. 157 City of Iowa City, Iowa Summary Schedule of Prior Federal Audit Findings Year Ended June 30, 2016 Prior Audit Findings Related to the Financial Statements: There were no prior year financial statement findings. Prior Audit Findings and Questioned Costs for Federal Awards: There were no prior year federal findings. 158 From: City of Iowa City<CityoflowaCity@public.govdelivery.com> Sent: Wednesday, December 14, 2016 12:22 PM To: Marian Karr Subject: Iowa City Police team up with Bruegger's on food drive for Crisis Center O SHARE Having trouble viewing this email? View it as a Web page. 10WACITY FOR IMMEDIATE RELEASE Date: Dec. 14, 2016 Contact: Henri Harper Phone: 319-356-5275 Iowa City Police team up with Bruegger's on food drive for Crisis Center The Iowa City Police Department and local Bruegger's Bagels stores have teamed up on a food collection drive to benefit the Crisis Center food bank. "A lot of people need a little extra help this time of year," said Henri Harper, the Police Department's Community Outreach Assistant. "Between the holidays and heating their homes, budgets are stretched about as far as they can go. We want to help the Crisis Center fill its shelves to make sure people don't go hungry." Participating donors won't go hungry, either. People who donate canned goods between now and Wednesday, Dec. 21, 2016 will receive a coupon for a free bagel and cream cheese. Donations should be dropped off at either Bruegger's Bagels location: 245 Iowa Avenue or 708 S. Riverside Drive. Both stores are open until 7 p.m. The Crisis Center distributes 106,000 pounds of food each month to help alleviate hunger in Johnson County. Some of their most -needed donations include peanut butter and jelly, canned fruit, canned fish and meats, 100% fruit juice, pasta, rice, canned vegetables, hearty soups and stews, baby formula, and baby food. For more information, contact Henri Harper at 319-356-5275. From: City of Iowa City <CityoflowaCity@public.govdelivery.com> Sent: Friday, December 09, 2016 11:45 AM To: Marian Karr Subject: Snow Reminder: Keep sidewalks and curb ramps clear is crucial O SHARE Having trouble viewing this email? View it as a Web page. 10WACITY FOR IMMEDIATE RELEASE Date: 12/09/2016 Contact: Shannon McMahon Phone: 319-356-5058 Iowa City reminds property owners and tenants of sidewalk snow removal ordinance With snow season's arrival this year, the City of Iowa City reminds residents of the snow removal ordinance requiring sidewalks to be cleared within 24 hours after a one -inch or more snowfall, or after any accumulation of ice has ended. Property owners are responsible for the removal of snow and ice from all sidewalks that abut their private property. The entire width of the sidewalk must be cleared down to concrete. Tenants are advised to check their leases to see if their landlord has transferred the responsibility of snow and ice removal to them. Residents who wish to report a property where the adjacent public sidewalk has not been cleared have three ways to notify the City's Neighborhood & Development Services office: • use the ICGovXpress mobile app on their smart phone (visit www.icgov.orq/?id=2253 to download the free app — search for it under "GORequest"); • access ICGovXpress on the City's website at www.icgov.org/icgovxpress or click on the "Report a Concern" button on the home page at www.icgov.org; or • call the complaint hotline at 319-356-5152. Complaints must be specific and include an actual address in order for City staff to respond. Residents may visit http://bit.ly/2gkDi)PV to see a map of properties that are being investigated by Neighborhood & Development Services due to complaints from the public. If a complaint is received about an unshoveled property, an inspector will visit the address to verify the violation, and leave a notification tag at the property if a violation exists. A Notice of Violation will also be mailed to the property owner and an additional 24 hours will be given to remove the snow and/or ice. If not completed by the deadline, the City will hire a private contractor to complete the job, and the property owner will be billed those costs plus a $100 administrative fee. Please keep in mind that only one notification will be given per snow season. Subsequent violations at the property will be cleared without further notification. 77Ais vide Curb ramps and crosswalks 7 -perry. Please be a good neighbor and keep curb ramps clear. Clear curb ramps are vital to keeping sidewalks accessible to everyone, especially for pedestrians with limited mobility. Snow and ice that is shoveled or that accumulates in crosswalks makes it difficult and dangerous for many of our residents, especially the elderly, people in wheelchairs or who are mobility -impaired, and children on their way to and from school. When you get to the end of your sidewalk, please shovel a few extra feet to Gear the crosswalks and curb ramps if you are able. Residents are asked to be considerate of pedestrians this winter by keeping their sidewalks clear and safe. For more information, contact Stan Laverman, Senior Housing Inspector, at 319-356-5135 or e-mail stan-laverman@iowa-city.org. Questions? ...� Contact Us CITY Of 101VA CITY uNtscoCITY a uRluRt[I STAY CONNECTED: �I t► in `� SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I HeID This email was sent to marian-kar.Qiowa-city.org using GovDelivery, on behaH of: City ty of Iowa City 410 E Washington Street Iowa City, IA 52240 From: City of Iowa City <CityoflowaCity@public.govdelivery.com> Sent: Friday, December 09, 2016 10:56 AM To: Marian Karr Subject: Applications now being accepted for Iowa City CDBG and HOME funding SHARE Having trouble viewing this email? View it as a Web page. °= 10WACITY FOR IMMEDIATE RELEASE Date: 12/9/2016 Contact: Kris Ackerson, Community Development Phone: 319-356-5247 Applications now being accepted for Iowa City CDBG and HOME funding Applications are now being accepted for funding for projects that will address community priorities as identified in the City of Iowa City's CITY STEPS plan. The funds will be part of $1.2 million the City will receive from the federal government through the U.S. Department of Housing and Urban Development (HUD), including Community Development Block Grant (CDBG) and HOME program funding. Funds will be available at the start of the new fiscal year on July 1, with roughly $347,000 earmarked for affordable housing projects, including rehabilitation or new construction of rental housing, tenant -based rent assistance, and homeownership opportunities for income -qualifying individuals and families. The remaining funds will be allocated by the City Council for other City programs, including economic development, owner -occupied housing rehabilitation, neighborhood infrastructure, financial assistance for local social service agencies, and the City's administrative costs. Two workshops have been scheduled to provide important information about the application and funding process. Individuals, nonprofits and businesses that plan to apply for funds are urged to attend one of the sessions, scheduled Thursday, Dec. 15 at 11 a.m. and Wednesday, Jan. 4 at 11 a.m. Both workshops will be held at Emma Harvat Hall in City Hall, 410 E. Washington Street. Applications are due by noon on Friday, Jan. 13. The Applicant Guide and applications, as well as the City's 2016-2020 Consolidated Plan (CITY STEPS), which will help steer the allocation process, are available online at www.icgov.org/actionplan. Upon request, staff will e-mail or mail the application materials to interested applicants. The local Housing and Community Development Commission (HCDC) and the City Council will review all applications and conduct a public allocation process to determine which projects will receive funding. Questions about CDBG and HOME funds or the funding process may be directed to Neighborhood Services staff at 319-356-5230 or kristooher-ackerson0iowa-citv.org. From: City of Iowa City<CityofloweCity@public.govdelivery.com> Sent: Thursday, December 15, 2016 2:33 PM To: Marian Karr Subject: Human Rights Commission will reschedule Sunday program SHARE Having trouble viewing this email? View it as a Web page. 10WACITY FOR IMMEDIATE RELEASE Date: Dec. 15, 2016 Contact: Stefanie Bowers Phone: 319-356-5022 Human Rights Commission will reschedule Sunday program The threat of extremely cold temperatures this weekend has caused the Iowa City Human Rights Commission to reschedule a program originally set for Sunday at the Robert A. Lee Recreation Center. "Know your Rights: Spousal and Partner Abuse Laws and Resources" was scheduled to be held from 2 to 4 p.m. on Sunday, Dec. 16, 2016. Since the high temperature that day is predicted to be below zero, the event will be rescheduled. A new date has not yet been set. For more information, contact Equity Director Stefanie Bowers at 319-356-5022 t t � .:m�f A�r��t Questions? w�_ Contact Us CITY of IOWA Cm utV6cocmfi0fu1rMTu [ STAY CONNECTED: Ifty,'ino SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help This email was sent to marian-kau@iowa-city.org using GovDelivery, on behalf of: City of Iowa City 410E wil Washington Street Iowa City, IA 52240 November 17, 2016 Page i LF-12-15-10 1 IP15 MINUTES DRAFT IOWA CITY AIRPORT COMMISSION NOVEMBER 17, 2016 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Julie Bockenstedt, Minnetta Gardinier, A. Jacob Odgaard, Chris Ogren Members Absent: Robert Libby Staff Present: Michael Tharp, Sue Dulek Others Present: Matt Wolford, Todd Allyn RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: The meeting was called to order at 6:03 P.M. by Chairperson Odgaard. APPROVAL OF MINUTES: The minutes from the October 20 meeting were reviewed. Ogren moved to accept the minutes of the October 20, 2016, meeting as presented. Gardinier seconded the motion. The motion carried 40, Libby absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: a. Airport Master Plan — Odgaard noted that earlier in the week Tharp, along with the Airport Commission, gave an update to the City Council on the Master Plan. Tharp stated that he is asking the Commission to defer accepting the Master Plan until next month's meeting. He will then be able to complete all of the documentation required by the FAA. L Consider a resolution accepting work as complete — Ogren moved to defer acceptance of the Master Plan until the December meeting. Bockenstedt seconded the motion. The motion carried 40, Libby absent. b. FAA/IDOT Projects: AECOM / David Hughes - i. Obstruction Mitigation — Tharp noted that Todd Allyn is present this evening from AECOM. Tharp continued, stating that they are moving November 17, 2016 Page 2 forward with the paperwork to get the environmental assessment underway. He is not sure if they will have something for the next meeting or not on this. Tharp then responded to Member questions regarding this process. ii. South Taxiway Extension — Tharp stated that they are in the process of getting a final survey crew out to the Airport so that they can get the bidding process going. They hope to be ready for construction in the spring. iii. North T -Hanger Restroom — Tharp stated that they have spoken with the City building inspectors, as well as architects, and they believe that now they have a better idea on the variance issue. He anticipates having news on this at next month's meeting. iv. FY2018 FAA AIP Pre -Application — Tharp noted that the package was sent to the FAA for comments and that they have responded. Basically the EA can be done this fiscal year, which shifts everything forward a year. Tharp stated that if the Commission is in agreement, the Chairperson can then go ahead and sign the individual project sheets that are part of this application. C. Airport "Operations" I. Strategic Plan -Implementation — 1. Aircraft Traffic Count Collection - Tharp spoke to this item, noting that the topic of aircraft traffic count that they discussed last month led to a meeting between Jet Air and himself to see what information is being collected. The only way to catch all of the traffic would be visually, according to Tharp. He noted that doing something with cameras would probably be the best way to go about this. Ogren asked for some clarification on what an 'acoustical system' is. Tharp responded, noting that it looks like a giant bucket, where sounds are directed into a meter. Members briefly discussed this issue, with Tharp giving further explanation as to which tracking system would be best for them. Tharp suggested a subcommittee, consisting of himself and Odgaard and anyone else interested, so that they can move forward on the best method for them to collect this information. 2. 2018 — 100 -year anniversary committee — Tharp then spoke to the 100 -year anniversary planning and the need for a subcommittee to do this. He added that after meeting with the City Manager on this item, the budgeted amount was cut from $10,000 to $5,000. He noted that there will be the opportunity to raise money through sponsorships and that type of thing, in order to have enough money for this celebration. Odgaard agreed that they should move forward with this planning. Gardinier stated that she would be happy to work on this, as did Ogren. The discussion then turned to the possibility of naming the Airport and how that might take place. ii. Budget — 1. FY2018 Budget Submittal — Tharp stated that he and Odgaard met with both the City Manager and the Finance Director at the beginning of November. They reviewed the budget at that time and Tharp added that he felt the meeting went well. Tharp stated November 17, 2016 Page 3 that the Airport will still be receiving the grant matching allocation, as they have in the past. iii. Management — None. d. FBO / Flight Training Reports — i. Jet Air — Matt Wolford with Jet Air shared the monthly maintenance reports with Members. He stated that he was reading earlier today about the history of the Iowa City Airport and that the name was Smith Field in 1920. Smith was an air mail pilot who crashed his plane and died. Reviewing the monthly reports, Wolford stated that they were able to get some painting done in the terminal building and that he has had good feedback regarding this. Other maintenance items were light bulb replacement, trash pickup, and mowing. Gardinier then spoke to Wolford regarding paving and patch work, suggesting that they lay down some pavement to help with the ruts that are happening. Continuing, Wolford noted that the switch on the UNICOM radio had to be repaired recently. Speaking to Jet Air's business, Wolford stated that they just got their building permit today for the new hangar. Trenches and footings should be done next week, according to Wolford. He then stated that since the last meeting, Jet Air attended the NBAA, the National Business Aviation Association's convention, where they were able to have a booth. Wolford stated that the recent Michigan game against the University of Iowa brought a lot of air traffic to the Airport. e. Commission Members' Reports — Odgaard asked if there was any information that Todd Allyn with AECOM would like to share with the Commission. Allyn spoke briefly to the restroom facility and what the inspectors are looking for. Ogren stated that she thought the City Council meeting was interesting. Gardinier stated that the opener on her hangar door is much quieter now and she asked what was done to it. Tharp stated that some things were tightened on it, but other than that he is not sure. He will check into this further. She then asked about the tree that was cut down, and Tharp noted that the tree was indeed dead. Ogren then suggested that when attendance is done for the meeting minutes that Tharp distinguish between excused and unexcused absences. Staff report — Tharp stated that he will be taking vacation time between Christmas and New Year's. SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday, December 15, 2016, at 6:00 P.M. in the Airport Terminal Building. ADJOURN: Gardinier moved to adjourn the meeting at 7:02 P.M. Ogren seconded the motion. The motion carried 4-0, Libby absent. November 17, 2016 Page 4 CHAIRPERSON DATE November 17, 2016 Page 5 Airport Commission ATTENDANCE RECORD 2016 Key: X = Present X/E = Present for Part of Meeting P810TTM O/E = Absent/Excused NM = Not a Member at this time TERM o O o o O O O o 0 o O -. -� NN W A N a) V 00 m 07 O -+ NAME EXP. N -` o ' s - N s m s N O m a o _ 01 Ot 01 01 Q1 01 O\ O W T d7 O 07 Minnetta 03/011 X X X X X X 0/ X X X X x X Gardinier 19 E Jose 03/01/ X 0/E X N N N N N N N N N N N Assouline 16 M M M M M M M M M M M Chris Ogren 03101/ X X X X X O/ X X X 0/ X X X 16 E E A.Jacob 03101/ X X X X X 0/ X X X X X X X Odgaard 16 E Julie 03101/ X X X X 0/ X X X O/ X O/ X X Bockenstedt 17 E E E Robert Libby 03/21/ N NM NM N X X X X 0/ X X 0 0 20 M M E Key: X = Present X/E = Present for Part of Meeting P810TTM O/E = Absent/Excused NM = Not a Member at this time IP16 MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION DECEMBER 1, 2016 — 7:00 PM — FORMAL MEETING EMMA HARVAT HALL — CITY HALL MEMBERS PRESENT: Carolyn Dyer, Mike Hensch, Ann Freerks, Max Parsons, Mark Signs, Jodie Theobald i1IZvi 11--1:4 1V01 aT"3LVJMa t STAFF PRESENT: Sara Hektoen, Bob Miklo, Marti Wolf OTHERS PRESENT: Steve Long, Adam Brantman, Dylan Whittemore RECOMMENDATIONS TO CITY COUNCIL: By a vote of 5-0 the Commission recommends approval of CPA16-0003, an amendment to the Comprehensive Plan to change the land use designation from Residential 2 to 8 dwelling unit per acre to Residential 8 to16 dwelling units per acre for property to the northeast of Camp Cardinal Road and Camp Cardinal Boulevard (Signs recused from discussion/vote, Martin absent). By a vote of 6-0 the Commission recommends approval of VAC16-00002, a vacation of the alley right-of-way, 2,600 square feet east of Ellis Avenue, south of 332 Ellis Avenue, subject to: 1. A Public Access easement be retained over the vacated right-of-way. 2. A utility easement be required over the vacated alley. 3. The driveway be improved according to plans approved by the City Engineer. 4. Approval of the special exception for the establishment of a fraternity at 332 Ellis. Freerks called the meeting to order at 7:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: There were none A public hearing for an amendment to the Comprehensive Plan to change the land use designation of property located at the NE corner of Camp Cardinal Road and Camp Cardinal Boulevard from Residential 2 to 8 dwelling units per acre to Residential 8 to 16 dwelling units per acre. Signs recused himself from the discussion as he represents a client that is interested in an adjoining parcel of property. Planning and Zoning Commission December 1, 2016— Formal Meeting Page 2 of 5 Wolf began the staff presentation by showing the Iowa City 2013 Comprehensive Plan Land Use Map for the 3.48 acre parcel at Camp Cardinal Road and Camp Cardinal Boulevard. The amendment would be to change the land use designation from residential 2-8 dwelling units per acre to 8-16 dwelling units per acre keeping it residential. Wolf explained that for comprehensive plan amendments they have to meet two criteria. The first criteria is to show that circumstances have changed, or factors have come to light that make this amendment in the public interest. The second criteria is that the amendment be compatible with Iowa City policies. With regards to the first criteria this land use designation came with the Comprehensive Plan in 1989 and at that time Camp Cardinal Boulevard did not exist. Camp Cardinal Boulevard was built in 2007 and with it came a range of developments in that area including a school, Cardinal Point (which contains a mix of single family homes, duplexes and townhomes), and the Saint Andrew Presbyterian Church. Therefore Staff believes this area has changed significantly since the original land use designation was given. With regards to the second criteria of compatibility with policies of the Comprehensive Plan: the Plan states that if a property is located at the intersection of a collector and arterial street options besides single family residential are appropriate. To increase the parcel to 8-16 dwelling units per acre would allow for multi -family residential which is suitable by the Iowa City Comprehensive Plan policies. Wolf noted that this plan also comes with a sensitive areas plan because at the south end of the parcel there is an area for stormwater retention from the Saint Andrew's parcel and therefore the southern one-third of the property is non -buildable. Staff recommends that CPA16-0003, an amendment to the Comprehensive Plan to change the land use designation from Residential 2 to 8 dwelling unit per acre to Residential 8 to16 dwelling units per acre for property to the northeast of Camp Cardinal Road and Camp Cardinal Boulevard be approved. Freerks opened the public hearing. Steve Long (HBK Engineering) is representing the applicant and came forward to answer any questions. He noted the applicant is excited about developing in this infill area and also the ability to increase the density allows for the preservation of the one-third sensitive areas of the parcel. There were no questions for Long, and no other public present to speak on the item. Freerks closed the public hearing Hensch moved to approve CPA16-0003, an amendment to the Comprehensive Plan to change the land use designation from Residential 2 to 8 dwelling unit per acre to Residential 8 to16 dwelling units per acre for property to the northeast of Camp Cardinal Road and Camp Cardinal Boulevard. Parsons seconded the motion. The motion carried 5-0. Planning and Zoning Commission December 1, 2016—Formal Meeting Page 3 of 5 VACATION ITEM (VAC16:00002): Discussion of an application submitted by Ellis Avenue, LLC for a vacation of the public alley right-of-way located between Ridgeland Avenue and Ellis Avenue. Miklo showed the area in question on an aerial photograph. He stated the applicant is redeveloping a building that was originally developed as a fraternity but was later converted to a rooming house. They are hoping to convert it back to a fraternity so they are asking to vacate the alley property in the hopes of acquiring the property and adding it to the larger parcel. If it is vacated and sold to them it would increase the density of the potential fraternity on the property by two residents. When Staff evaluated the request they looked at a number of criteria they use for vacation of public right-of-way and determined this request does meet those. Miklo noted that there is some public need for this property for a sanitary sewer and water line, that same need can be addressed with an easement. The right-of-way does provide access to 332 Ellis Avenue as well as 320 Ellis Avenue, so an easement would be necessary to assure both properties over time will have access to their parking. Staff recommends approval of VAC16-00002, a vacation of the alley right-of-way east of Ellis Avenue, south of 332 Ellis Avenue, subject to: 1. A Public Access easement be retained over the vacated right-of-way. 2. A utility easement be required over the vacated alley. 3. The driveway be improved according to plans approved by the City Engineer. 4. Approval of the special exception for the establishment of a fraternity at 332 Ellis. Freerks asked if the applicant is planning to retain the existing structure or if they are planning to rebuild. Miklo said they are planning to retain the existing structure. Hensch asked if the alley is currently used as an alley. Miklo replied it is. It provides access to the two parking lots and secondary access to other residential buildings in the area. Parsons noted he used to live in that area and occasionally people do use that alley to drive through. Hensch asked about the easement and Miklo said it would require that the travelling lane be maintained and open (no parking in that area). Hensch asked about the neighbor to the south and Miklo said Staff has spoken with a representative of 320 Ellis Avenue and they don't believe they have any interest in the property as long as an easement is maintained to allow access to their parking, but there is a Board that manages the property and the full Board will review it. Freerks opened the public hearing. Adam Brantman (Ellis Ave LLC) came forward to answer questions. He noted they are contemplating renovation and then sale of the property to a fraternity. They have talked with the property owner to the south about the alley, currently the alley is gravel and as part of the project they would pave the alley and maintain it. Planning and Zoning Commission December 1, 2016—Formal Meeting Page 4 of 5 Freerks asked how many units were in the rooming house currently. Brantman said it is currently 25. Dylan Whittemore (320 Ellis Corp) is on the board of the Delta Epsilon Fraternity and noted they understand the need for the easement for access to their property. He also stated they do plan to pave their side of the parking lot. The only concern they have is plans for snow removal, since that would no longer be under the City's purview. Freerks closed the public hearing. Theobald moved to approve VAC16-00002, a vacation of the alley right-of- way, 2,600 square feet east of Ellis Avenue, south of 332 Ellis Avenue, subject to: 1. A Public Access easement be retained over the vacated right-of-way. 2. A utility easement be required over the vacated alley. 3. The driveway be improved according to plans approved by the City Engineer. 4. Approval of the special exception for the establishment of a fraternity at 332 Ellis. Hensch seconded the motion Hensch noted it seems like this will be an improvement to the neighborhood and Theobald and Freerks agreed. A vote was taken and motion carried 6-0 (Martin absent). CONSIDERATION OF MEETING MINUTES: NOVEMBER 17. 2016 Parsons moved to approve the meeting minutes of November 17, 2016. Hensch seconded the motion. A vote was taken and the motion passed 6-0. PLANNING AND ZONING INFORMATION: Miklo noted that Jeff Speck was in Iowa City the last week of October. The Commission agreed to watch a recording of Speck's presentation. ADJOURNMENT: Hensch moved to adjourn. Theobald seconded. A vote was taken and motion carded 6-0. PLANNING & ZONING COMMISSION ATTENDANCE RECORD 2016-2016 KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member 117 1/21 2/19 3/3 3/17 4/7 4/21 515 5/19 6/2 7/7 7/21 8/4 9/1 10/6 10/20 11/17 12/1 DYER,CAROLYN X X X X X X I X X X X X X X X X X X X FREERKS, ANN X O/E X X X X X X O/E X O/E X X X X X X X HENSCH, MIKE X X X X X X X X X X X 01E X X X X X X MARTIN, PHOEBE X X X X X X X X X X X 01E X X X O/E X O/E PARSONS, MAX X X X X 0/E X X X X X X X X X X X X X SIGNS, MARK — — — — — — — X X X X X X X X X O/E X THEOBALD, JODIE X X X X X X X X X X X X X X X X X X KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member Preliminary Minutes December 8, 2016 MINUTES SENIOR CENTER DECEMBER 8, 2016 ROOM 208, IOWA CITY/JOHNSON COUNTY SENIOR CENTER Members Present: Jay Honohan, Mark Holbrook, Kathy Mitchell, Cheryl Clamon Members Absent: Jack Hobbs, Margaret Reese Staff Present: Linda Kopping, Kristin Kromray Others Present: None CALL TO ORDER: The meeting was called to order by Honohan at 4:00 PM. RECOMMENDATIONS TO COUNCIL: None. APPROVAL OF MINUTES FROM NOVERMBER 17.2016 MEETING: Motion: To accept the minutes as amended from the November 17, 2016 meeting. Motion carried on a vote of 4/0. Mitchell/Clamon Holbrook may attend the January 5th Board of Supervisors meeting. REVIEW AND DISCUSSION OF THE CMO BUDGET RECOMMENDATIONS: Kopping reported that she will present the budget to the City Council in January 2017. The budget will be finalized in March. She highlighted some new revenue items and a couple changes to the initial request made by finance and city manager's office. Finance and the City Manager increased revenue projections in two areas. Membership revenue was increased from $52,000 to $69,000; and contributions and donations, which includes donations given directly to the Senior Center and endowment earnings from Friends of the Center, was increased by $15,000. An additional $25,000 contribution from Friends of The Center to support operational expenses was added to the FYI budget. A few expense lines were reduced by Finance and the City Manager. These include travel and associated fees for educational seminars, and funding for banners for the exterior of the building, bulk mailing, and office supplies. Preliminary Minutes December 8, 2016 Kopping reported both commissioner Honohan and commissioner Hobbs terms will end at the end of December. Kopping thanked Honohan for his 18 years of service on the Commission. Kopping noted that the city was going to re -advertise the three open spaces on the Senior Center Commission. Commissioners discussed various people who they might approach to consider applying. OPERATIONAL OVERVIEW: Update on work with Friends of the Center: The first draft of the Friends of the Center website was received. Staff reviewed the draft and will be communicating recommendations to the designers. Kopping has been working on additional Friends of the Center policies. The Friends annual appeal letter went out two weeks ago and has raised $11,100 to date. Nutrition Program Update: The Senior Center has received many complaints regarding Elder Services' congregate meal program. Concerns have been expressed about running out of meals and the quality and temperature of the food. Kopping spoke with the director of Elder Services and he indicated that they can only guarantee the meal will be hot for 30 minutes after it is delivered. They are working on ways to adapt the program to accommodate this limitation. Kopping met with representatives from Heritage Area on Aging to discuss the various grant -funded programs Heritage offers that could be run by The Center. Included in the discussion were the meal and volunteer transportation program, chore services, evidenced based programming, and an information and referral program. Grant applications for all these services are due in February 2017, which does not allow much time to consider options or develop an organizational plan. Any program considered would need to fit the mission of The Center and not place an additional financial burden on The Center or City. Operations: The elevator is back in working order. The chiller has been winterized for the season. Programming: The first day of registration is December 14th. Kromray reported the next Newcomers Breakfast will be January 18th and invited commissioners to attend. She also noted that on April 13th from 2-3:30 will be a Member Engagement Fair that the membership committee is organizing. 2 Preliminary Minutes December 8, 2016 COMMISSION DISCUSSION: None. ADJOURNMENT: Motion: To Adjourn. Motion carried on a vote of 4/0. Reese/Mitchell Preliminary Minutes December 8, 2016 Senior Center Commission Attendance Record Year 2016 Name Term Expires 2/18/16 3/17/16 4/21/16 5/19/16 6/11/16 6/16/16 7/21/16 8/18/16 9/15/16 10/20/16 11/17/16 12/8/16 Joy Beadleston 12/31/19 X X NM O/E X NM O/E -- -- -- -- -- Cheryll Clamon 12/31/18 X X NM O/E X NM X X X NM X X Jack Hobbs 12/31/16 X O/E NM X X NM X O/E O/E NM X O/E Mark Holbrook 12/31/18 X X NM X O/E NM X X X NM X X Jay Honohan 12/31/16 X X NM X X NM X X X NM X X Kathy Mitchell 12/31/19 X X NM X X NM O/E X X NM X X Margaret Reese 12/31/17 X X NM O/E X NM X X X NM X O/E Key: X= Present O= Absent O/E = Absent/Excused NM = No meeting -- = Not a member El