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2017-12-14 Info Packet
r not ON .wr®•M� CITY OF IOWA CITY www.icgov.org IP1 Council Tentative Meeting Schedule City Council Information Packet December 19 Work Session IP2 Work Session Agenda December 14, 2017 IP3 Memo from Assistant to the City Manager: Legislative Consultant Introduction and 2019 Legislative Priorities IP4 Memo from City Manager: 2018-19 Strategic Planning Process IP5 Pending Work Session Topics Miscellaneous IP6 Memo from City Manager: Housing and Community Development Commission (HCDC) recommendations to Council I137 Memo from City Manager: Sanxay-Gilmore House, 109 Market Street I138 Memo from Assistant City Manager: 2016-2017 Strategic Plan Summary I129 Memo from City Clerk: Listening Post Update I1210 Listening Post Summary Report I1311 Memo from Resource Management Superintendent: Household hazardous materials update IP12 Iowa City Municipal Airport Five Year Strategic Plan 2019 — 2023 IP13 Comprehensive Annual Financial Report (CAFR) FY ended June, 30, 2017 IP14 Civil Service Entrance Examination: Maintenance Worker 1 —Forestry Copy of article from City Manager: Net Neutrality Is Just the Tip of the Preemption Iceberg [Distributed as late handout on 12/18/17] December 14, 2017 Information Packet (continued) 22 Draft Minutes IP15 Community Police Review Board: December 7 IP16 Housing & Community Development Commission: November 16 11 1 CIN OF IOWA CITY www.icgov.org IP1 Council Tentative Meeting Schedule City Council Information Packet December 14, 2017 December 19 Work Session I1132 Work Session Agenda IP3 Memo fro)Assistant to the City Manager: Legislative 2019 Leais tive Priorities IP4 Memo from IP5 Pending Work 2018-19 Strategic Plann Topics Miscellaneous IP6 Memo from City Manager: ftusir (HCDC) recommendations to u IP7 Memo from City Manager: Sanxay- IP8 Memo from Assistant City Manager: I1139 Memo from City Clerk: Listening P IP10 Listening Post Summary Repo IPI 1 Memo from Resource Ma ages materials update and I Introduction and Process ity Development Commission qfe House, 109 Market Street 6-2017 Strategic Plan Summary Household hazardous IP12 Iowa City Municipal Airpo Five Year Strategic P n 2019 — 2023 IP13 Comprehensive Annual financial Report (CAFR) nded June, 30, 2017 IP14 Civil Service Entrance xamination: Maintenance Worke 1 — Forestry Draft Minutes IP15 Community Poli a Review Board: December 7 IP16 Housing & Com unity Development Commission: November 16 J =I City Council Tentative Meeting Schedule =_ 64 4-04.�a Subject to change wr®'�T CITY IOWA CITY December 14, 2017 —Tru -1 IN Date Time Meeting Location Tuesday, December 19, 2017 5:00 PM Special Formal/Executive Session Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Tuesday, January 2, 2018 8:00 AM Special Formal (Organizational Meeting) Emma J. Harvat Hall 5:00 PM Work Session 7:00 PM Formal Meeting Saturday, January 6, 2018 8:00A -5:00P Budget Work Session Emma J. Harvat Hall Tuesday, January 9, 2018 1:0013-7:001) Budget Work Session (CIP) Emma J. Harvat Hall Tuesday, January 16, 2018 5:00 PM Iowa City Conference Board Mtg. Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Monday, January 22, 2018 4:00 PM Reception Coralville City Hall 4:30 PM Joint Entities Meeting Tuesday, February 6, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, February 20, 2018 5:00 PM Iowa City Conference Board Mtg. Emma J. Harvat Hall Work Session 7:00 PM Formal Meeting Tuesday, March 6, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, March 20, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting IP2 '��®4 z CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org Special Formal / Executive Session 5:00 PM — separate agenda posted City Council Work Session Agenda Tuesday, December 19, 2017 Emma J. Harvat Hall - City Hall Following 5:00 PM Special Formal Legislative consultant introduction and discussion of 2018 priorities [IP3, of 12/14 Info Packet] Discuss process for developing the 2018-19 Strategic Plan [IP4, of 12/14 Info Packet] • Discussion of Crime Trends with Police Chief Matherly Clarification of Agenda Items • Information Packet Discussion [December 7, December 14] • Council updates on assigned boards, commissions and committees P I CITY OF IOWA CITY ��; � MEMORANDUM Date: December 13, 2017 To: City Council From: Simon Andrew, Assistant to the City Manager Re: Legislative Consultant Introduction and 2019 Legislative Priorities Introduction: City Council's December 19 work session agenda includes items regarding the City's new legislative consulting firm and 2018 legislative priorities. At the November 21, 2017 City Council meeting, Council approved the City's contract with Carney & Appleby, PC to provide consultant and lobbying services during the 2018 State of Iowa General Assembly. The first day of the state legislature's 2018 session is January 8, 2018. Representatives will be present at Council's December 19 work session for introductions and to answer questions about the upcoming session. Additionally, prior to the start of each State of Iowa legislative session, the City Council traditionally adopts legislative priorities and communicates the City's positions on those issues to our elected delegation. Legislative Consulting and Lobbying: Camey & Appleby, PC was selected to represent Iowa City after the City conducted a request for proposal process. The firm currently represents the Cities of Des Moines and Waukee. The firm has over eighty years combined legislative experience and good working relationships with legislators from both parties. The City's legislative consultant will provide services including bill and regulation monitoring, assisting in the development of legislative priorities and strategies with Council and staff, communicating the City's position on key issues to legislators, and maintaining strong communication with our local delegation. Services will continue after the legislative session, including monitoring and providing feedback, when appropriate, during the rules making process. Legislative Priorities: IP3 December 14, 2017 Page 2 In previous years, Council's adopted priorities included support for legislative efforts of the Iowa League of Cities and the Metropolitan Coalition, an organization comprised of the State's ten largest cities. The 2018 priorities for each of those organizations are attached for reference, as are the City of Iowa City's 2017 priorities. Staff and the City's legislative consultants will also be monitoring progress and providing feedback during the State's Alcohol and Beverages Division's alcohol licensing reform discussions. The overall goal of the licensing reform effort is to bring together local authorities, local law enforcement, public health officials, prevention advocates, and on - and off -premises retail licensees/permittees to discuss topics related to the licensing process. Alcohol licensing reform has the potential for positive changes in the City's alcohol license enforcement efforts. Conversations at the State level are in the early stages and staff will continue to be involved in the discussion. Recommendation: Staff recommends preparing a draft a resolution formally adopting the City's 2018 State Legislative Priorities for Council consideration at the next formal meeting. These priorities will be substantially similar to those adopted by the Iowa League of Cities and Metro Coalition. Priorities will include supporting local control, protecting property tax backfill payments, and maintaining historic property and workforce housing tax credit programs. Staff and the City's consultant will be present at the December 19 work session to answer questions regarding the development and implementation of the City's legislative priorities. &O-L� IOWA LEAGUE 2018 PRIORITIES QfCITIES Priorities: The 2018 Priorities proposed by the League's Legislative Policy Committee were ratified by the League's Executive Board on August 17, 2017, and approved by League members at the League's Annual Conference on September 291^, 2017. Local Control Advocate for and sustain Home Rule and its flexibility to make decisions at the local level —where decisions are made closest to the people they impact and can be tailored to fit local conditions, needs, and concerns in order to better serve taxpayers; promote cities as innovation centers and the incubators of ideas. Economic Development, Financial Stability, and the Continuation of the Backfill Ensure the continuation of the commercial and industrial property tax backfill to prevent a shift to residential property taxpayers ora reduction in city services; Increase funding levels for quality of life, community, and economic development programs; preserve economic development tools, such as tax increment finance, as flexible tools for economic growth in cities of all sizes; eliminate unfunded mandates; diversify revenue options available to local governments and protect existing revenue options and the services they support for taxpayers. Public Safety Ensure cities have the adequate resources, tools, and technology to provide and fund public safety services for their communities and citizens. Water and Wastewater Infrastructure Advocate for additional funding sources and flexible policies related to water, wastewater, and storm water infrastructure to meet the demands of increased environmental regulation for cities of all sizes; support a clean water supply and the protection of public health and the environment; support the development of opportunities for partnership between cities, the agricultural community and environmental groups. Pensions Advocate for public employee pension systems that are balanced and fairly address the needs of beneficiaries, maintain and promote the ability to attract and retain quality employees while controlling costs to cities, and provide for the long term financial sustainability of both the systems and government. Metropolitan Coalition 2018 Legislative Priorities The Metropolitan Coalition is a coalition comprised of Iowa's ten largest cities. These cities include Ames, Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Sioux City, Waterloo and West Des Moines. The coalition was created to advocate for and promote the similar needs and interests of Iowa's ten largest cities The following is a list of the legislative priorities identified by Metro. Coalition for the 2018 Legislative Session. 1. Protect "backfill" dollars. In 2013, the legislature passed a bipartisan property tax reduction bill that cut commercial property taxes. To keep cities whole, the legislation pledged cities with $150 million annually; this was done in an attempt to keep cities whole, as they would be losing a significant of revenue due to the tax reduction implementation. With the state's revenue projections lower than projected, the state has had to cut hundreds of millions of dollars from its budget. The Metro Coalition is opposed to the state cutting the backfill dollars in any manner and believes the backfill dollars should stay in place due to the promises made by both the administration and legislature when the 2013 legislation was adopted. 2. Automatic Traffic Enforcement (ATE) Cameras. Several bills that eliminated or heavily regulated traffic enforcement cameras were considered during the 2017 legislative session. Similar legislation is expected for the 2018 session. The Metro Coalition is opposed to banning the use of ATE devices as these devices are extremely beneficial to ensure office safety, as well as drivers safety on roadways. 3. Tax Increment Financing (TIF). Tax Increment Financing is a financing mechanism for Urban Renewal. It involves dividing the property taxes paid from property within a designated area between the traditional taxing authorities (counties, cities, schools, etc.) and the taxing authority that created the TIF area. The Metropolitan Coalition believes tax increment financing (TIF) should remain as -is and is opposed to any changes. 4. Local Option Sales Tax (LOST). During the 2017 legislative session, a bill was brought forth that would have amended provisions of LOST by allowing individual cities the ability to have a referendum on its citywide ballot for increasing their location option sales tax, rather than on a county -wide basis. The Metro Coalition supports changes to LOST provisions. 5. Economic Development Tax Credit Protection. The Metro Coalition is opposed to changes to tax credits that help develop and support cities throughout Iowa. These include: a. Historic Property Tax. The Temporary Historic Property Tax Exemption provides a local property tax incentive for the sensitive, substantial rehabilitation of historic buildings. The program provides a combination of four years full exemption from any increased valuation due to the rehabilitation, followed by four years of property tax increases (25% per year) up to the new valuation. This program has allowed cities' "historic" properties to be preserved by offering tax benefits to buyers who wish to restore historic properties. b. Brownfield/Grayfield Properties. Brownfield sites are abandoned, idled or underutilized industrial or commercial properties where real or perceived environmental contamination prevents productive expansion or redevelopment. Grayfield sites are abandoned public buildings, industrial or commercial properties that are vacant, blighted, obsolete or otherwise underutilized. Developers in Iowa can receive tax credits for redeveloping these properties. c. Workforce Housing Tax Credits. This program provides tax benefits to developers to provide housing in Iowa communities, focusing especially on those projects using abandoned, empty or dilapidated properties. jte Prepared b Y. Simon Andrew, Assistant to the City Manager, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5010 RESOLUTION NO. 16-355 RESOLUTION ESTABLISHING THE CITY OF IOWA CITY'S 2017 LEGISLATIVE PRIORITIES WHEREAS, the Iowa City City Council seeks to encourage legislation that enhances the quality of life for residents in Iowa City as well as the State of Iowa; and WHEREAS, the City of Iowa City and other cities play a critical role in the future of the State; and WHEREAS, it is in the interest of the residents of Iowa City that the City Council establish legislative priorities and convey said priorities to our State delegation and other relevant stakeholders. NOW, THEREFORE, BE IT RESOLVED that the Iowa City City Council hereby outlines its legislative proposals to the Iowa City area legislative delegation for the 2017 Iowa State legislative session as follows: Ensure the continued funding of commercial & Industrial property tax replacement payments 2013 property tax reform measures are placing significant financial pressures on cities across the state. Over the next several years, cities Will be challenged to maintain basic service levels, even With State of Iowa property tax backfill reimbursements. The magnitude of backfill payments for many cities Is such that in addition to basic service cuts, property tax rates Will likely be raised to compensate for the lost revenue. Raising tax rates to compensate for reduced taxable value negates the Intention of property tax reform. Backfilling a portion of property tax revenue lost to local jurisdictions was an important component of the 2013 legislation and recognized the necessity of this revenue for local government operations. Protection of public sector employee collective bargaining rights State and local public sector employees comprise a large portion of our State's workforce and local economies. Collective bargaining units are an important stakeholder In local government operations and collective bargaining processes have substantial impacts on local government budgets and procedures. The City urges the State to carefully consider the input of local governments in regard to public sector employee collective bargaining and preserve the basic right of public employees to organize. Protect Home Rule authority for local governments Local governments are uniquely positioned to respond to the needs and priorities of our residents and taxpayers. Cities innovate in response to local conditions and implement new ideas that can benefit the State as a whole and more closely reflect the priorities of the public we serve. Issues In which local authority is particularly important include: local control of minimum wage requirements, recognizing the variance in economic conditions and costs of living across cities and counties; local regulation of rental housing, including the regulation of rental occupancy by familial status; Increased flexibility in local revenue streams and the ability of cities to diversify revenue sources; and local control over the regulation and enforcement of the possession of marijuana. Resolution No. 16-355 Page 2 Advocate for additional water and wastewater infrastructure funding In order to improve efforts to support a clean water supply, protect public health, and meet increased environmental regulation requirements, the City of Iowa City advocates for increased State funding for water, wastewater, and storm water infrastructure development and maintenance. Providing and protecting healthy water supplies are core functions of government and local infrastructure can have significant effects on other communities downstream. Healthy waterways are essential to maintaining the State's quality of life and economy; providing the resources to meet the demands of water regulations is critical to ensuring that the health of our water resources is protected. Support the continued excellence of the State's primary, secondary, and higher education institutions and advocate for additional education funding Iowa's primary and secondary schools are fundamental drivers of the State's economic growth, standard of living, and future prosperity. It is essential for the success of the State and our local communities that support for our schools is a top priority in the State's budget. The University of Iowa plays a critical role in supporting statewide economic, social, and cultural growth. It is important the State of Iowa provides the university the needed resources to ensure the university's continued ability to facilitate growth opportunities in varied sectors of the business community. Likewise, community colleges play an important role in ensuring the continued competitiveness and inclusivity of the state's economy. The City encourages the State to carefully consider and support the legislative and financial priorities of the University of Iowa and Kirkwood Community College. Support the legislative efforts of the Iowa League of Cities and the Metro Coalition Iowa City, as a member city of both organizations, supports the legislative priorities set forth by the Iowa League of Cities and by the Metropolitan Coalition for the 2017 legislative session. Passed and approved this 6th day of December , 20 16 r d by City Attorney's Office Resolution No. 16-355 Page 3 It was moved by Botchway and seconded by Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: Mims the Botchway Cole Dickens Mims Taylor Thomas Throgmorton ~.®�r glui `t CITY OF IOWA CITY MEMORANDUM Date: December 11, 2017 To: City Council From: Geoff Fruin, City Manager Re: 2018-19 Strategic Planning Process With a new City Council scheduled to be seated in January of 2018, it is appropriate to define a process to develop a strategic plan for the 2018-19 calendar year. I recommend that the Council start the process in mid-January after the initial operating and capital budget work sessions are complete. With a mid-January start it should be reasonable to expect that the final strategic plan report could be finished in March. Earlier this year, the City Council provided staff direction on specific initiatives / projects related to the current strategic plan that you wanted to see in the upcoming budget. The City Manager's Office has incorporated those into our budget proposal and has also vetted department budget proposals with the existing strategic plan priorities in mind. While we feel our budget recommendation will align well with the Council's anticipated strategic priorities, we recognize that there needs to be flexibility in the budget to carry out objectives that may arise in your strategic planning discussions. We feel confident that we will be able to reasonably work within the budget constraints to meet such priorities. In preparation for your strategic plan discussions, staff is working to complete two documents that will help inform your discussion. First, we expect to have the results from the community survey that was conducted this past fall. This report, which is being compiled by the survey vendor, will provide insight into residents' views and benchmark such responses against results from other communities across the country. Secondly, the staff Department Director team is developing a report that will highlight major department accomplishments from the previous two years, projects that are currently in -progress, as well as foreseen challenges and opportunities. Again, these documents are intended to help inform your discussion, but should not be the sole basis on which you determine your strategic plan priorities for the next two years. Staff intends to send these documents to Council in late December or early January. In past years, the City Council has used staff from the University of Iowa Institute of Public Affairs to facilitate an initial strategic plan discussion and then later refined and completed the plan without facilitation assistance. The Director of the Institute of Public Affairs will be retiring in the spring of 2018 and has limited meeting availability. Given uncertainty in scheduling and the unknown need for follow-up meetings with either the City Council or staff, I am recommending that we seek a new facilitator. Staff has begun to assess options and believes a local facilitator will be able to be secured. If Council concurs on the need for a facilitator and is comfortable with staff selecting someone for the task, then we would recommend the following schedule: 1. Mid to late January: Conduct a half-day facilitated work session to review in -progress projects, carry over items from the past strategic plans, and identify new strategic priorities or initiatives. 2. Early February: Conduct a two-hour facilitated work session to review the outcomes from the first session and make refinements as needed. 3. Mid -late February: Additional non -facilitated work sessions to finalize the report. IN December 11, 2017 Page 2 4. March: Adopt the 2018-19 Strategic Plan. 5. April -May: Additional staff work with the facilitator, if needed, to create an implementation plan and refine the progress reporting mechanism to include community indicators as requested by Council. Ultimately, the City Council needs to establish a process that you feel will produce a plan that best articulates your priorities and objectives for the next two years. Staff will be amenable to working through whatever process the Council decides to establish. 11MI '!-.i CITY OF IOWA CITY UNESCO C"OFUMMTURE PENDING CITY COUNCIL WORK SESSION TOPICS December 14, 2017 Other Topics: 1. Joint meeting with the Telecommunications Commission 2. Discuss Graduate and Professional Student. Government relationship 3. Review city -funded organizations commitment to diversity and inclusiveness r CITY OF IOWA CITY 1P6 x � MEMORANDUM Date: December 12, 2017 To: City Council From: Geoff Fruin, City Manager Re: Housing and Community Development Commission (HCDC) recommendations to Council HCDC has requested the City Council require landlords to provide documentation of the rents they are charging for each unit on the rental permit application or on the Informational Disclosure and Acknowledgement Form. Additionally, HCDC has recommended that the Informational Disclosure and Acknowledgement form be translated to five languages, and the form be made available online in a fashion that allows the City's website translator to translate it to other languages when needed. The requirement for the Information Disclosure and Acknowledgement Form came from the recommendation of the Neighbor Housing Relations Task force which was convened in the summer of 2002. The document was designed to help assist the City with addressing nuisance complaints in the residential neighborhoods by ensuring tenants were receiving key information about expectations and resources available to them. At this time, the form is only collected when needed to assist with the investigation of a nuisance complaint. HCDC is asking the City to collect information on the rents charged for each rental unit so the data can be used for additional affordable housing analysis and discussion. City staff is hesitant to require rental rates to be submitted on the rental permit application or the Informational Disclosure and Acknowledgement form for multiple reasons. First, there are concerns about the legal ability to require such data. There is a not a clear housing code purpose, and rental rates are solely a function of a contract between a tenant and landlord. In addition, there are logistical concerns with such a requirement. The disclosure form is not part of the permit process, but rather must be signed with every new tenant and available to the City upon request. Often the renewal is done based on the inspection and payment of fees with no paperwork being submitted to the City. Any type of required submittal would be problematic with the current permitting software, staffing levels and permit approval/renewal process. To go from not requiring forms to collecting forms for nearly 19,000 rental units will be a significant undertaking that needs to be planned for accordingly. Lastly, City staff is also not sure the data collected would be the most informative for those that wish to analyze it as the data will not be comparable because of varying dates of relevancy and inclusion of other cost of living data. Rental permits are issued on a rolling cycle, and landlords often include different utilities/amenities/parking in the rent. Currently, all units are renewed every two years. Looking ahead, we anticipate that some units will move to a one-year cycle while many others will remain on a two-year cycle. HCDC has also recommended the Informational Disclosure and Acknowledgement form be translated into five languages (Swahili, Arabic, French African, Spanish, Mandarin--simple Chinese) to allow tenants to read and understand the form in the language they are most comfortable reading. The City has utilized the services of a regional translation service in the past, and it is possible to make the form available in different languages. City staff will be updating the Informational Disclosure and Acknowledgement form during 2018 to reflect the recent housing code changes and at that time will work with Omnilingua to have it translated and make those translations available. City staff will inform local housing providers of its availability in multiple languages on the City website. December 12, 2017 Page 2 The cost of collecting information about the rents charged for the rental units would come in the form of additional staff time needed to process the paperwork and increased data entry. Additional research would be needed if City staff is directed to provide this information. The translation of the Informational Disclosure and Acknowledgement form into five languages is estimated to cost $1,200. City staff does not recommend collecting data on the rents being charged for rental units. City staff recommends translating the Informational Disclosure and Acknowledgement form into five languages and making them available on the City's website. MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION NOVEMBER 16, 2017 — 6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT: Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, John McKinstry, Harry Olmstead, Maria Padron MEMBERS ABSENT: Syndy Conger, Bob Lamkins, Paula Vaughan STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: Sara Barron and Peggy Aguilar RECOMMENDATIONS TO CITY COUNCIL: By a vote of 6-0 the Commission recommends to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the form is available online and that language is added on the form that tenants shall receive a copy. By a vote of 6-0 the Commission recommends to City Council that the Informational Disclosure and Acknowledgement Form be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator is available for other languages when needed. CALL MEETING TO ORDER: Olmstead called the meeting to order at 6:30 PM. APPROVAL OF THE OCTOBER 30. 2017 MINUTES: Eastham moved to approve the minutes of October 30, 2017. Harms seconded the motion. A vote was taken and the motion passed 5-0 (Padron arrived after vote). PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. UPDATE ON FYI PROJECTS WITHOUT A SIGNED AGREEMENT: Hightshoe stated there is a local policy that CDBG agreements are entered within 90 days of the start of the fiscal year. However, since the City did not have HUD agreements until two weeks ago a lot of the agencies have not entered into agreements yet so staff is working on getting those done. She noted that HOME agreements can't be entered until the recipient has identified property and staff completes the underwriting review, environmental review and market analysis. Therefore there is no one here to present this evening as agreements are just now being drafted. Eastham asked if there is now a new deadline and Hightshoe stated that there is nothing written in the City's policies regarding that, however the next check point is that 50% of the funds must be spent by March 15. The public service agreements state they're effective July 1, so all costs incurred since July 1 are eligible for that type of activity. The City did sign agreements with a Housing and Community Development Commission November 16, 2017 Page 2 of 6 ` couple CDBG recipient in the anticipation of the funds and that the project could proceed once bids documents were finalized. CONSIDER APPROVAL OF DRAFT FY19 CDBG AND HOME APPLICATION MATERIALS: Hightshoe stated that each year applicants apply for public facility and housing funds in January and the Commission awards funds based on the priorities decided upon by the Commission and Council in the City's Consolidated Plan (CITY STEPS). Public service applications were submitted through the United Way Joint funding process in September. The Commission will start reviewing these applications in December. The commission will make a funding recommendation for public service funds at their January meeting. Hightshoe noted that the commission raised the domestic violence priority to high (this includes counseling, outreach, etc.). DVIP has typically applied for funds for their shelter which makes it a high priority as well as for homeless services. The applications will be sent to the Commission in early December (typically available online unless you request a paper copy). Harms asked how many applications would need reviewed this year and Hightshoe replied there are about 25 applications. She reminded the Commission that the minimum application/award is $15,000 for public services. Hightshoe also stated that the application materials to be approved today is just for public facilities and housing. The budget numbers are all preliminary and will change before final allocation. There is no federal budget at this time so the City does not know what will be approved. She also noted that the Commission allocated The Housing Fellowship $100,000 in FY18. While The Housing Fellowship hasn't officially turned down that allocation, they do not want the funds for the Del Rey project. They will either submit a project for consideration or that money will be added to the available FY19 funds. Staff will discuss with the THF and come back to HCDC to discuss. Olmstead asked if on the application it reflects what the Council's priorities are. Hightshoe said the priorities are listed in CITY STEPS. Eastham asked about the word "targeted" on page three of the application guide and what is the definition of target in that context. Hightshoe noted that the rules state that upon occupancy 90% of the HOME funds have to benefit people below 60% of medium income. Eastham would like to propose that the Commission change the allocation of scoring points on page five of the application. Eastham noted that this evaluation form assigns points on a number of criteria and two of the major criteria have to do with leveraging of other financial resources and the other major criteria "impact benefit" and with that criteria the first statement discusses whether primary percent of medium income persons are targeted. Eastham feels that the leveraging of resources criteria equals a total of 50 percent of the total points available to the applicant whereas the impact benefit criteria has a maximum of 20 points, only 20 percent of the total points available to the applicant. Eastham believes those two areas of criteria and points should be reversed because the impact benefit criteria looks at specifically whether or not the funds are going to be used for low income households. The leveraging resources criteria mainly looks at if some funds have been matched or leveraged in some way. McKinstry noted that it was just last year that the section on leveraging was added and the point of adding it was to encourage applicants to look for other resources and not just rely on CDBG or HOME funding. Hightshoe stated it was added specifically for the public facility projects knowing that City funds could not fund entire projects. Fixmer-Oraiz asked if instead of changing it 50/20 could the change be 35/35 for both leveraging and impact benefit. Harms agreed noting that•both areas are important. Eastham agreed since these two criteria do equal 70 percent of the total points, and they are both important, they could split the points between the two but he still feels personally that leveraging should be weighted less. Housing and Community Development Commission November 16, 2017 Page 3 of 6 Eastham moved to Amend CDBG/HOME Evaluation Criteria: II. Leverage Resources, reduce from 50 points to 35. Adjust 11.3 to 0-25% = 0 to 6 Points 26-50%= 7-12 Points 51-75%= 13-19 Points 76-99% = 20-25 Points AND IV. Impact/Benefit, increase points from 20 to 35 as follows: 0-30%= 25 Points 31-50% = 15 Points 51-60% = 10 Points 61-60%= 2 Point McKinstry moved to approve the application materials with the edit approved above. Harms seconded and the vote passed 5-1 (Eastman dissenting). Eastham noted he is not in favor of including the affordable housing location map in its present form as a criteria for a location for relevant affordable housing that is supported by City funds. Eastham added he has a long standing objection to this map and the criteria used construct it as it greatly limits the ability to build or acquire and rehab affordable rental units at the expense of everyone in the community who needs affordable rental units. Eastham has done a personal analysis that shows impact based on white, Hispanic and black households which is not necessarily caused by economic factors. Hightshoe noted the model was created to disburse affordable housing throughout the City. Rehab of existing rental units in any neighborhood remains eligible. Eastham understands that but does not feel that has been its effect. McKinstry added that the model has been changed in the past year to open more areas. Eastham stated it would be loosened up considerably to change the 400 foot distance variable to something more reasonable like 50 feet. Hightshoe said the map is meant to allow for a diversity of incomes and housing types in all neighborhoods. Eastham still fees this scheme denies people to live anywhere they want to in the community and feels it was developed without input for lower income households and specifically Hispanic and African American households. Hightshoe noted that there has not been any analysis done to show if the model has dispersed affordable (subsidized) housing in more neighborhoods, but the model has been successful at not furthering to place additional subsidized housing in areas with concentrated poverty. Eastham noted that the school district also includes Coralville and North Liberty so it is not always an accurate variable, especially at the secondary level as it relates to free and reduced lunch, a criterion factored in the model. McKinstry agrees that this topic should be revisited in the future. DISCUSS THE INFORMATIONAL DISCLOSURE AND ACKNOWLEDGEMENT FORM FOR RENTAL HOUSING PERMITS: Hightshoe noted this is an item that Eastham asked to be placed on the agenda. Eastham stated his purpose for asking the Commission to consider this item is the possibility of adding to the City's Rental Housing Permit process asking rental property owners that when they renew their rental permits that they show on their rental renewal application the rental amount they are charging for each unit. Harms asked if there was any legal precedent forbidding the City asking that information. Hightshoe stated the City legal department did have some concerns because there is nothing in the Code (health or Housing and Community Development Commission November 16, 2017 Page 4 of 6 safety reasons) to justify including it on a rental permit. If the landlord did not provide, would the City deny solely based on the rent charged is not included. The rental amount is solely a function between the landlord and tenant, the City does not receive copy of the leases and has no way of confirming if the amount the landlord says is being charged is correct. Olmstead asked if the rental permit renewals was an annual process. Hightshoe replied that it is every other year but there are some situations where an owner is just paying the inspection fee and not filling out a new application every two years. Olmstead asked if the recycling question (the new requirement that apartment buildings have to have recycling bins) is on the application. Hightshoe said that as each permit comes due, the City enforces the recycling requirements. However the actual date of when that requirement will begin being enforced has not yet been set and Hightshoe would have to get back to the Commission on the details. Harms understands Eastham's purpose for asking for the rental amounts, the purpose is to gather data however agrees with Legal and wonders how the City could enforce that data is correct. Hightshoe added that some landlords will oppose disclosing their rental amounts because some landlords may charge different rents for maybe long term good tenants. Some tenants may not want their rent amount disclosed as well. McKinstry asked if it would become public record if it is reported to the City. Hightshoe stated that if the City asks for the data, it is then public record. Eastham pointed out that anyone that has sold or bought a house the sale information is public information collected by the Recorder's office and made available to anyone for any purpose. Harms agreed but in the case of rentals, there could be a building with four units and four different rental amounts and that could cause problems if made public. Eastham noted that the reason to get rental amounts within a community is to get a handle on where lower priced or higher priced incomes are distributed within a community and how many of each there actually are so that information can be used to improve policy decisions for what kinds of additional affordable housing is needed to be located. McKinstry agrees there is a legitimate public interest in knowing what the rents are within in the City and it could help City Staff in future housing decisions, but with no place in the Code that requires this there is also no way to require this information. Harms stated there could be a voluntary disclosure and there would have to be a lot of education on why this is needed. McKinstry noted that Eastham once said the City could just ask what the advertised rent is for the units, that would then already be public information, but that also would just be voluntary because it is not required under Code. However if the information is not verified (the City does not keep leases on file) then is the information of any use and would it be accurate. Fixmer-Oraiz noted that landlords would have no reason to lie if advertised rental amounts is already public information. McKinstry asked the Affordable Housing Coalition Board their thoughts on this agenda item and staff time was a key concern. Would the information gathered be of quality and useful enough to justify the staff time. No one is arguing that this information wouldn't be helpful to know. Harms asked if there are other cities that have collected this information. Hightshoe was unsure. Eastham stated is unsure if other cities use the rental permitting process to obtain ongoing information about rental amounts but there are some with rental reporting requirements due to the funding mechanisms. Hightshoe stated that is only for subsidized housing, not for privately owned. Eastham agreed but noted that because it is a requirement Staff is already doing this work so it is not onerous information to gather. Housing and Community Development Commission November 16, 2017 Page 5 of 6 Hightshoe stated that Legal would have to decide if this is appropriate information to request and what language would be used if a landlord refused to disclose the information. The Commission can recommend to Council to look into rental disclosures and Council can choose whether to act on the recommendation or not. Eastham said the information gathered could be entered into a database easily (such a home sales information) and then used for many purposes. Padron agreed, it would be good to have information on rents and also in the future used to see if there is any discriminations in rentals. Olmstead feels the information gathered should be posted so the public and tenants can see the information. Eastham noted if it is in a database it can be viewed online. Harms noted that it is important that the form be available in multiple languages so the tenants know and understand what they are signing. Eastham moved to recommend to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the form is available online and that language is added on the form that tenants shall receive a copy. Padron seconded the motion and it passed 6-0. Harms moved to recommend to City Council that the Informational Disclosure and Acknowledgement Form be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator is available for other languages when needed. Padron seconded the motion and it passed 6-0. STAFF/COMMISSION COMMENT: Hightshoe will send via email to the Commission information on a training session for Boards and Commissions on procedures. ADJOURNMENT: Fixmer-Oraiz moved to adjourned. Harms seconded, a vote was taken and the motion passed Housing and Community Development Commission Attendance Record 2017-2018 Name Terms Exp. 11/17 12/15 1/19 2/9 2/16 3/7 4/20 6/15 8/17 9/21 10/30 11/16 Conger, Syndy 7/1/2018 X X X O/E X X X X X X X O/E Eastham, Charlie 7/1/2020 --- --- --- --- --- --- --- --- X X X X Fixmer-Oraiz, Vanessa 7/1/2020 --- --- --- --- --- --- --- --- X X X X Harms, Christine 7/1/2019 X X X X X X X X X X X X Lamkins, Bob 7/1/2019 X O/E X O/E X X O/E X X O/E X O/E McKinstry, John 7/1/2020 X X X X X X O/E X X X X X Olmstead, Harry 7/1/2018 X X X X X X X X X X O/E X Padron, Maria 7/1/2018 --- --- --- --- --- --- O/E X X X Vaughan, Paula 7/1/2019 X X X X X X X X X X X O/E Key. X = Present O = Absent O/E = Absent/Excused --- = Vacant or prior commissioner CITY OF IOWA CITY MEMORANDUM Date: December 14, 2017 To: City Council From: Geoff Fruin, City Manager Re: Sanxay-Gilmore House, 109 Market Street Introduction: In September of this year, the University of Iowa executed a purchase agreement with Gloria Dei Lutheran Church for property including 109 Market Street. The original portion of the building currently located at 109 Market Street, otherwise referred to as the Sanxay-Gilmore House, is one of Iowa City's oldest structures and is eligible for the National Register of Historic Places. The University entered a contract to purchase the property with a commitment to financially assist the Church in relocating the structure to another suitable location. Prior to executing the purchase agreement, the Church worked to find a nearby lot for the building to be relocated. The chosen courtyard location on Jefferson Street is within the same block as the current structure and would enable the Church to continue to operate its ministry outreach programs in the building. The proposed relocation site has been offered as a gift by the current land owner. Both the Church and the University support the relocation. However, the move to this site will require changes to the City Code. If such code changes are not made, then the University, in accordance with the purchase agreement, will take control of the property in the summer of 2018 and demolish the building. Both the Church and the University have expressed their preference that the building be retained, and feel the proposed relocation is sensitive to the architecture and scale of the home. They further expressed it would also place the home directly adjacent to its original location and within a recognized historic district that would most effectively protect it and the character of its surroundings. However, the Chairperson of the Historic Preservation Commission has raised concerns about the proposed Jefferson Street location due to the impact that relocation to this site will have on the Jefferson Street Historic District and the historic properties that surround the courtyard location. This memo intends to convey to the City Council information about the historic significance of the structure and describe the feasibility, as well as the pros and cons, of four potential options for preserving the structure in place or moving it to alternative locations. These four options were previously identified by the Chairperson of the Iowa City Historic Preservation Commission and communicated to Mayor Throgmorton. Historic Significance of 109 Market Street: In the November 30th Information Packet, the City Council received a copy of an article co- authored by Alicia Trimble, Executive Director of the Friends of Historic Preservation, and Ginalie Swaim, Chairperson of the Iowa City Historic Preservation Commission. The article, entitled "Saving Iowa City's Oldest House" provides a concise overview of the historic qualities of the Sanxay-Gilmore House. Prior to this information being sent to the Council, Chairperson Swaim also wrote Mayor Throgmorton a letter on the topic which included correspondence from an Architectural Historian with the State of Iowa Department of Cultural Affairs. Both the article and the September 21 letter described above are attached to this memo for your reference. IP7 December 14, 2017 Page 2 The historic importance of the Sanxay-Gilmore House has long been recognized in the community. Margaret Keyes, the University of Iowa Professor who coordinated the restoration of Old Capitol, featured the house at 109 Market Street in her 1967 book, Nineteenth -Century Home Architecture of Iowa City. Historian Irving Weber wrote of the house multiple times in his column for the Iowa City Press -Citizen. Recent research revealed that the construction of the house occurred at the same time that the Capitol building was being built, making the Sanxay- Gilmore, along with Old Capitol, among the oldest structures in Iowa City. In 2015, the Iowa City Historic Preservation Commission identified the Sanxay-Gilmore House as the number one priority for historic landmark designation. That year the Planning and Zoning Commission and City Council also recognized it in the Central District Comprehensive Plan update as a historic building worthy of preservation. The Historic Preservation Commission was planning to commence the process of communicating with property owners of eligible properties about landmark designation when news broke this past August indicating the Church was planning to sell the building to the University of Iowa. Discussion of Alternatives: The September 21, 2017 letter from Ginalie Swaim, Historic Preservation Commission Chair, to Mayor Throgmorton outlined and weighed the merits of four options for preserving the structure. The options are furthered reviewed by me below and the locations are illustrated on an attached map. Option A - Preserve in Place: From a historic preservation standpoint, this is clearly the best option for the property. Preserving it in place would ensure that it remains eligible for designation as moving such buildings generally result in the loss of National Register eligibility. Rare exemptions can be made when the property's designation is based on architectural merit rather than historic merit. Although the Sanxay-Gilmore House has both, its historic merit as the city's oldest residence and association with a founding Iowa City family make maintaining the house in its historic location the best solution from a historic preservation standpoint. The University purchased the property due to its immediate adjacency to the main academic campus and with an expectation that the structure would be removed, either through a relocation or demolition. This provides them with long-term flexibility for developing the site in the future as campus needs are identified. The University's purchase price reflected an unencumbered lot and they do not have any campus use or operating funding identified to maintain the structure. With this in mind, it does not appear preservation in place is a likely option unless the City intervenes in some manner that persuades the Church and University to terminate their purchase agreement and have the Church continue to maintain the structure as it sits today. Regarding this possibility, the Church approached the University regarding the purchase in order to garner funds needed to maintain the main Gloria Dei Church building at its current downtown location. Thus, without the sale proceeds, it is unknown to the City what the long- term viability of the Church's operations are in the current location. Option B - Move the Structure East to the Gloria Dei Parking Lot: Given its age and structural composition, any relocation of the house will carry some risk. Moving the house directly east to adjacent property currently used for Gloria Dei parking makes the move less problematic in terms of structural stress on the building. Relocation to the adjacent property also would allow the house to retain much of its historic context and site orientation (facing north onto Market Street). Context and site orientation are important elements needed to maintain National Register eligibility. December 14, 2017 Page 3 This option would displace an estimated sixteen parking spaces on the Church's property. In conversation with a representative of the Church, there does not appear to be any interest from the Church for this particular option. Losing an estimated sixteen parking spaces adjacent to their building would have a significant detrimental impact on their operations. Without such parking, the Church's long-term viability in Downtown Iowa City will be at greater risk. In discussing this option with the University, while indifferent regarding a potential relocation site and leaving that preference to the Church, it pointed out that many old structures are relocated without harm. Once lifted from the original foundation, the distance traveled is not a critical factor, especially when the Church's proposed relocation site is on that same block. It was also pointed out that the University successfully relocated and reoriented a much larger brick structure (Calvin Hall) 112 years ago and without modern moving technologies. Nearby, the University also relocated the Shambaugh House (1898) in 2004, to protect its heritage some four blocks from its original location. The International Writing Program now occupies the home on Clinton Street. While the Shambaugh House has been preserved, the move did cause its removal from the National Register of Historic Places. Option C - Move the Structure to the City -Owned Market Street Parking Lot: This option would allow the University unconstrained use of the lot at 109 Market Street and would not displace any of the Church's on-site parking spaces. However, this option will likely undermine the National Register eligibility of the Sanxay-Gilmore House. The site is near the original location but the orientation will be changed and the relationship to Old Brick and the Old Capitol will be altered. The important role of context in National Register eligibility would be diminished. In order to facilitate this move, the City would likely have to gift the publicly -owned parking lot to the Church. The Church would then presumably continue to operate its ministry operations out of the structure and retain any leftover parking areas for its operations. On a per square foot basis, staff believes the market value of the lot is upwards of a million dollars. The City Council also needs to weigh the opportunity cost of disposing of the parking lot for this use. It is unknown at this time if the Church would even be interested in such an arrangement. Option D — Move the Structure to the Park House/ St. Agatha's Courtyard on Jefferson Street: Prior to executing the purchase agreement, the Church had worked out this option for relocating the structure. In relocating the house to the courtyard, the Church would still be able to maintain its ministry operations as the courtyard is directly south of the existing Church building. From a preservation standpoint, this option would greatly jeopardize the landmark eligibility of the house. Additionally, in the attached article from Ms. Trimble and Ms. Swaim, they note a move of the house to this location will damage the historic context of the Courtyard, as well as the Park House/St. Agatha's, Saint Mary's Convent, and the Burkley Apartments (all of which have views onto the courtyard). In order to facilitate this move, which has been proposed by the Church and enabled by a private land gift, the City would need to rezone the property or amend the City Code to permit the additional density and waive parking requirements. Staff has not developed language for such an amendment, but will need to do so if Council provides such direction. In crafting a code amendment, the City will need to be clear that preservation of the building supersedes other conflicting goals, such as preservation of open space in the Central Planning District. Additionally, the Park House courtyard is located within the Jefferson Street Historic Overlay District. Prior to any permits being issued to move or erect a structure on the site, a certificate would need to be approved by the Historic Preservation Commission finding that the proposal complies with the Secretary of the Interiors Standards for treatment of historic properties and districts. December 14, 2017 Page 4 For Council's information, the Church has supplied a rendering that displays the Sanxay- Gilmore House located on Jefferson Street and positioned toward the front of the lot, preserving roughly one-half of the Courtyard. That rendering and a site plan are attached to this memo. City Role: In the coming month, the City will need to determine what role, if any, it wants to play in the Sanxay-Gilmore House's future. Staff and the Mayor will have dialogue with the Church and the University of Iowa about a preservation in place option. If that option is indeed not feasible, then the City will need to determine if it wants to consider trying to use its parking lot or other financial mechanisms to facilitate preservation, or accommodate the Church's proposed plan (Option D) through a code amendment. At this time, no firm decision is needed from the Council. However, staff does recommend that the Council have an initial conversation about the situation and determine what, if any, parameters staff should consider when exploring the above or other yet -to -be identified options. Perhaps the most critical question to be answered is whether preservation of the structure in a manner that will likely cause it to lose its National Register eligibility is something the City Council will support and help facilitate. If maintaining National Register eligibility is a firm requirement, then the at this time it is my belief that there is strong likelihood that the building will face demolition. Regarding designation of the property, for privately owned properties Local Historic Landmark designation is an overlay zoning district that protects historic structures from demolition. However, the University is exempt from City zoning regulations and would not be prevented from removing the Sanxay-Gilmore House if it was designated as a Historic Landmark. Similarly, inclusion on the National Register of Historic Places is more of an honorary designation and does not prevent an owner from demolishing the structure. Therefore, staff does not see an immediate need to move toward designation. September 21, 2017 Mayor Jim Throgmorton City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Dear Mayor, Iowa City Historic Pfos i"'at40YS. C3TiL CitL=Eifl i City HA, 410 E Wwhington Stc"r, Iowa City. L4.52240 To continue our conversation on the Sanxay-Gilmore House at 109 Market, I write today about alternative receiving sites, as you requested, should the house have to be moved. Option A. The best preservation practice would be to leave the house where it is, where its history unfolded. New research has indicated that the house may well date to 1843, making it contemporaneous with the construction of the Old Capitol and probably the earliest extant house within the city limits of that time period. Therefore, we encourage the University of Iowa to prepare a plan that creates a new building while leaving the Sanxay-Gilmore House in place. Given the house's association with University President Eugene Gilmore (it was his home beginning in the 1940s), this would seem particularly appropriate and would again remind this community that the University is indeed a partner in preserving our mutual past. And it's worth noting that just as today the University of Iowa is considering building an entrepreneurial center here to serve its students and this state, so did the Sanxays manifest their own innovative entrepreneurial spirit in mercantile, banking, and railroad endeavors in this growing 19th -century town. Would building around this house unduly challenge the architect chosen? Certainly not as much as the Great Depression challenged President Gilmore when he built the Theatre Building, Art Building, Law Commons, and Hillcrest Dormitory in that troubled decade. Option B. The next best option would be to move the house immediately to the east, onto land owned by Gloria Dei. I truly appreciate that parking is an issue for the church, as it is for any entity and individual in the downtown and adjoining areas. Gloria Dei owns two adjacent parking areas, one between the church and the Sanxay-Gilmore House, and one to the south, next to the alley. The lot next to the house has 28 spaces. Gloria Dei reserves these 28 spaces for Saturday and Sunday, but Monday -Friday they are available through rental permits. On the alley side, the church has another 18 spaces. These are reserved for church members and visitors Saturday -Sunday, and for church staff Monday -Friday. These two areas comprise 46 parking spaces. If the house is moved directly to the east, to the lot with 28 spaces, I estimate it would take as few as 12 of those spaces. This would still leave the church 34 spaces in all. Can the 12 spaces be replaced nearby? Or can the church do without them, as they currently do Monday -Friday, when they are rented out? This option keeps the house almost within the same historical context. Further, it reduces the obvious disruptions and risks of moving a two-story brick house of this age. The shorter the distance, the less risk. This approach will cost significantly less; fewer power lines have to be lifted, fewer trees removed, and so on. Option C. Directly across Market Street is a city -owned public parking lot. It has 24 metered spaces. The lot is also wide enough to receive the house and still have some parking spaces behind it. Again, it would probably take up about 12 spaces. Perhaps the City would be willing to sell half of that lot to Gloria Dei. The City of Iowa City made considerable accommodations so that the Unitarian Universalist Church could be saved. In this case, another historic building could be saved through a far simpler accommodation -12 parking spaces. tion D. The church's proposal to move the house to the green space next to the historic Park House Hotel/St. Agatha's Female Seminary at 130 Jefferson presents significant problems and would adversely affect the historic building and district. The attached letter from the State Historic Preservation Office (SHPO) details those issues. This area has been a park -like green space—"a restorative landscape," to quote SHPO—without any structure of substance as far back as 1865 (according to a historical photograph) and probably earlier. The building at 130 Jefferson served as a hotel in the 1850s; a girls' day and boarding school for the next 50 years; a dormitory for university women, named Svendi Hall, for another 10; and an apartment building thereafter. All of these heavy -occupancy uses benefited from a green space in which residents could socialize, relax, and recreate. This is not an empty space, but rather a space that conveys part of the story of the Park House Hotel/St. Agatha's Female Seminary. Today it is still a visual "breathing space" in a heavily built-up area linking the North Side and the downtown. Thank you again for meeting with Alicia Trimble and me a few weeks back. I do believe that Gloria Dei, the University of Iowa, the City, and the preservation community can arrive at a solution best for all, and I welcome more conversations. Sincerel6�1� y, sow � Ginalie Swaim Chair, Iowa City Historic Preservation Commission ginalieswaim@me.com Attachment: Letter from Paula Mohr, Stats Historic Preservation Office Cc: Geoff Fruin, City Manager Alicia Trimble, Executive Director, Friends of Historic Preservation Bob Miklo, Senior Planner, City of Iowa City IOWA DEPARTMENT CE ►�;. r. , °Ir CULTURAL ARAIRS September 18, 2017 Robert Miklo, Senior Planner Ginalie Swaim, Chairperson Iowa City Historic Preservation Commission ;sliirl } 410 E. Washington Street Iowa City, IA 52240 Dear Mr. Miklo and Ms. Swaim, Thank you for sharing the proposal for the Sanxay-Gilmore House at 109 Market Street. i I GIS' ° flip: There are a number of considerations and concerns with the relocation proposal: RESERVATION 061 First is the effect on the Jefferson Street Historic District. While architecturally the Sanxay-Gilmore House appears compatible with the other buildings In the Jefferson ,,.. `,k �. Street Historic District, it probably is outside the district's 1850-1954 period of LL*A? � HISTORIM significance (pending confirmation of the house's date of construction). MAPIA" l 101( The more serious concern is the loss of the green space within the historic district and adjacent to the Park House Hotel/St. Agatha Female Seminary. According to Sanborn maps, the courtyard has been open space since at least 1883 and perhaps earlier. The 1888 Sanborn Map shows the presence of an arbor documenting the value of the space as a restorative landscape for the students enrolled in the seminary and later for the residents of the apartment following the closure of the seminary. Additionally, inserting the Sanxay-Gilmore House into this green space will disrupt the historical rhythm of the streetscape and remove the last remaining green space in the district. The other open spaces noted on the 1839 map of Iowa City in this immediate area—City Park and Center Market—are no longer extant. If the Sanxay-Gilmore House cannot remain In its historic location, our office encourages looking at alternative locations in the neighborhood. If it Is determined that these alternative locations are not feasible and the house needs to be moved into the historic district, we recommend that the commission seek preapproval for the move from the ,,r I€1: 101; :"�,WIL"-:4N ; ! V'U �_L,.''A TU.. - PC!; 01,NtS3 V, 117.1! . �.:t.!1..=�7. � I�r'��i;�i:Li'L'w:.L�rt' You have asked our office to comment on this project and the effect it may have on the 16RIC °, National Register status of the Jefferson Street Historic District and the Park House Hotel/St. Agatha Female Seminary (individually listed on the National Register and identified as a key contributing resource in the historic district). The proposed relocation site is a green space located in the 100 block of East Jefferson immediately 1I <. adjacent to the Park House Hotel/St. Agatha Female Seminary. Research is currently underway on the Sanxay-Gilmore House but it is believed that this k?II.;i T;"" house may date to c. 1842 contemporary with the construction of the Old Capitol. The house also served as the residence of University of Iowa's President Eugene Gilmore. It is likely that the house is Individually eligible for the National Register. i I GIS' ° flip: There are a number of considerations and concerns with the relocation proposal: RESERVATION 061 First is the effect on the Jefferson Street Historic District. While architecturally the Sanxay-Gilmore House appears compatible with the other buildings In the Jefferson ,,.. `,k �. Street Historic District, it probably is outside the district's 1850-1954 period of LL*A? � HISTORIM significance (pending confirmation of the house's date of construction). MAPIA" l 101( The more serious concern is the loss of the green space within the historic district and adjacent to the Park House Hotel/St. Agatha Female Seminary. According to Sanborn maps, the courtyard has been open space since at least 1883 and perhaps earlier. The 1888 Sanborn Map shows the presence of an arbor documenting the value of the space as a restorative landscape for the students enrolled in the seminary and later for the residents of the apartment following the closure of the seminary. Additionally, inserting the Sanxay-Gilmore House into this green space will disrupt the historical rhythm of the streetscape and remove the last remaining green space in the district. The other open spaces noted on the 1839 map of Iowa City in this immediate area—City Park and Center Market—are no longer extant. If the Sanxay-Gilmore House cannot remain In its historic location, our office encourages looking at alternative locations in the neighborhood. If it Is determined that these alternative locations are not feasible and the house needs to be moved into the historic district, we recommend that the commission seek preapproval for the move from the ,,r I€1: 101; :"�,WIL"-:4N ; ! V'U �_L,.''A TU.. - PC!; 01,NtS3 V, 117.1! . �.:t.!1..=�7. � I�r'��i;�i:Li'L'w:.L�rt' National Park Service to ensure that the move will not adversely affect the eligibility of either the Jefferson Street Historic District or the Park House Hotel/St. Agatha Female Seminary. If it is decided to move the house, an archaeological survey should be done at 109 East Market and at the new location to ascertain whether there are archaeological resources that will be disturbed by the project. It is important to verify that there is no federal undertaking with the University s future construction project. If there is a federal undertaking, the removal of the Sanxay-Gilmore House may be considered to be anticipatory to the Section 106 consultation process. Thank you again for giving our office the opportunity to provide comment on this project. Sincerely, n Paula Mohr, Ph.D. CLG Coordinator and Architectural Historian Cc: Steve King, Deputy State Historic Preservation officer ";`r,? i ! ' tj F'T LFGi)1TtPAl +;f HIS G41. P _1.1 'iL :O) L.-MIU3, EI. 0:5 :,! L1 .1:1 Built by March 1843, the house at 109 East Market was home to the Sanxay family (pronounced Sank -say), who played important roles in early Iowa City, and to Eugene Gilmore, retired University of Iowa president, in the 1940s. Saving Iowa City's Oldest House by Alicia Trimble (executive director, Friends of Historic Preservation) and Ginalie Swaim (chairperson, Iowa City Historic Preservation Commission) ACTING UPON RECOMMENDATIONS from the Iowa City Historic Preservation Commission and the Plan- ning and Zoning Commission, the City Council in 2015 amended the comprehensive plan to include identifica- tion of the house at 109 East Market Street as a historic property worthy of preservation. The Sanxay-Gilmore House was long believed to date as far back as the late 1850s. Compelling new evidence tells us that the house was built much earlier, and therefore is even more significant. We now know that it is likely the oldest remaining house within the original city limits. It stands with Old Capitol as the towns oldest structures. This new research in tax records and newspapers re- veals that the Sanxay-Gilmore House was built by 1843. That discovery makes its protection imperative. We be- lieve that every effort must be made to keep the house where it is, where its history unfolded. A building's his- toric significance lies in its architectural integrity and in its association with the people and events from the past. The Sanxay-Gilmore House is rich in both. The physical house and the story of the people who lived in it tell us much about Iowa City's past. Helping a Town Grow and Flourish THE SANXAY FAMILY, for whom the house is named, is interwoven in Iowa City s history almost from the begin- ning. The year before the Sanxays arrived, the town had been platted, Robert Lucas as territorial governor had made his first visit, and Chauncey Swan had contracted with an architect for a new capitol. In February 1840, Frederic Sanxay and his twenty- one-year-old son, Theodore, arrived with a stock of goods to sell to the emigrants pouring into this "embryo city," as one town founder called it. The first sawmill couldn't keep up with carpenters' demands. Fortunately that April Sylvanus Johnson began making bricks, such that on July 4, the Sanxays and business partner Malcolm Murray dedicated their store, the towns first two-story brick structure. The same day the cornerstone of the capi- tol was set in place. By 1841, young Theodore Sanxay had purchased Lot 3 at Clinton and Market streets, envisioning a family home there. He married Hettie Perry in 1842. The two- story house built for the couple (probably of Sylvanus Johnsons bricks) was finished in time for the birth of their first son, Theodore Frederic Sanxay, in March 1843. Sec- ond son James Perry Sanxay was also bom in the house, in 1846. Another son died before age three. The house was built in the popular and elegant Greek Revival style, as was the nearby capitol. As the family's economic standing grew, so did their home. The adjoining Lot 4 was purchased. An addition with Italianate details was added to the west. Two more additions followed. Every moming, from his fine brick home at 109 East Market, Theodore Sanxay strode out into the busy world of Iowa City civic life and commerce. He was quickly be- coming a mover and shaker. By 1844, he was a trustee and founding member of First Presbyterian Church. (Twelve years later, the stately building we now call Old Brick would be built diagonally across Market Street from his home.) Starting in the 1850s he helped push local man- ufacturing, plan a high school, and promote the towns first railroad. He served as a director, vice president, and acting president of the Johnson County Savings Bank. The store the Sanxays had started in 1840 had shifted to selling hardware and iron in a new location at Clinton and Washington. The brick building there grew from two stories to three, and expanded to the east. Years later the building became known as Whetstones and it now hous- es Panchero's. But for decades it was referred to simply as Sanxay's Corner, so integral was the family to the town. Although J. P. Sanxay, the second son, ran the store, he "developed for everything like business, and all its ac- tivities, such intense antipathy, to render him almost mor- bid," according to his brother. Although he took up other interests and moved away, J. P. and his wife retired to the family home at 109 E. Market, where he died in 1901. Meanwhile, his brother, Theodore Frederic, had become an attorney in the East. He still read Iowa City newspapers and tried to visit every year. He wrote the Old Settlers Association in 1908, "The circumstance of my birth in Iowa City gives me a great affection for the place, and I confess that, though the major part of my life has been lived elsewhere, as the years roll on I find my thoughts turning more and more to the old home of my boyhood, and I begin to feel that I should like to end my life there, where it began." He died in New York in 1925 but was buried here in Oakland Cemetery. An impressive monument marks his grave. His love of his hometown extended to the Univer- sity of Iowa. His estate established an annual award for a liberal arts graduate; the award still exists as the Sanxay Prize. The initial gift for the prize was $15,000—equal to $210,000 in today's dollars. Sharing a History with the University IN 1946, EUGENE AND BLANCHE GILMORE bought "the little neo-classic house on East Market street," as Blanche described it. Eugene Gilmore served as Univer- sity of Iowa president from 1934 to 1940 (and before that, as vice governor-general of the Philippine Islands, and then professor and dean of the UI law school). Despite the troubling economic times of the Great Depression, the university under his leadership acted entrepreneurially, adding the Law Commons, Hillcrest Residence Hall, the Theatre Building, and the Art Building to the campus. According to Blanche Gilmore, the Sanxay-Gilmore House's unusually large foundation stones were "left over from the construction of the capitol building." That certainly seems fitting, because the Sanxays, arriving here even before Old Capitol was begun, were certainly part of the foundation of this community. Their 1843 house— and its juxtaposition to the downtown and campus—is a compelling reminder of the early days in Iowa City, when bricks were just becoming available but entrepreneurship and civic values were already paramount. Gloria Dei Lutheran Church has owned the house in recent decades and has been a good steward. Now the church is selling the lot to the University of Iowa and pro- posing to move the house (with university assistance) to the courtyard at 130 E. Jefferson Street. At first glance, this might seem like a good solution. The National Park Service, however, states thathistoric buildings should remain where their history happened. In other words, the location and orientation of the Sanxay- Gilmore House is indeed part of its story and key to its significance. Protecting a Historic Green Space FURTHERMORE, THE COURTYARD at 130 E. Jeffer- son (the proposed receiving site) is part of another story. The State Historic Preservation Office, representing the National Park Service, has delineated several issues re- lated to inserting the house here. One of these issues is the courtyard's association with the adjoining building, known historically as the Park House Hotel (1852-1857) 130 E. Jefferson Street was St.Agatha i Female Seminary for Girls for Ove decades, and then Svendi Hall, a private dormitory for women. This photo, circa 1891, shows the courtyard west of the building. and St. Agatha's Female Seminary. St. Agatha's was a girls' boarding and day school operated by the Sisters of Charity of the Blessed Virgin Mary. The Sisters of Charity in the Midwest—tike Cathe- rine Beecher and other 19th -century educators — valued natural spaces for its female students. Physical exercise in the outdoors was essential; so were opportunities to study botany and contemplate nature. When the Sisters of Clarity started advertising another Iowa school simi- lar to St. Agatha's in 1858, they extolled its location "in the midst of a grove of luxuriant timber, the shady walks of which, together with the grounds which are elegantly laid out, render it a most eligible place for the instruction of young Ladies." After St. Agathds opened on Jefferson Street in 1861,a stable was moved from the courtyard and a board fence erected, granting the students and teachers some privacy and protection. Later, an arbor appeared. According to 1880s catalogs for St. Agatha's, the school "derives many advantages from its location in Iowa City, Even today, the courtyard at 130 jefrerson holds true to its ori- gins as a treasured green space in the oldest part of Iowa City. is beautifully and healthfully situated between groves, woods, and on a winding river." St. Agatha's closed in 1909 and the large building be- came Svendi Hall (and later Burkley Place), a privately owned women s dormitory. The women boarders would have enjoyed the courtyard as a remnant of nature. Over all these decades, the courtyard has functioned as a tranquil, restorative green space in a heavily built area of town. Inserting an 1843 house here would be a dis- service not only to the needs of today's urban dwellers, but also to the history of both the Sanxay-Gilmore House and St. Agatha's. The significance of two historic proper- ties would be diminished. Honoring a Sense of Place WE ENCOURAGE the University of Iowa to build upon its long commitment to historic properties and its part- nership with the Iowa City community As the university conducts feasibility studies for construction of an entre- preneurial center in the area, we believe that its leaders should indeed embrace its entrepreneurial and innova- tive spirit and build around this historic home at 109 East Market—just as the Pappajohn Building was built around Gilmore Hall on campus. There are plenty of national examples of new architecture juxtaposed with historic structures, where new and old complement each other. It can be done. Here lies a wonderful opportunity for the university and creative architects to do something truly stellar, in honor of our shared history. And we urge the City of Iowa City to work with all parties to protect the Sanxay-Gilmore House, the oldest house within our original city limits, and to keep it where it fust arose in 1843—a contemporary in time, space, and story of Old Capitol itself. Samay-Gilmore House Area Map Ir 3 - J (n 26 �LU i 104 > 122 114 p in P z dP E MARKET ST X128 GpBs 4 ■ < •�� _ 1 107109 � C o 126 115 GloriaDe>!'' M R 124 Luthn Church z 120 n AWL St. Mary Convent E JEFFERSONPST Park Ht�? St, A Agath Yy 1 .� J z C C z '74 URN"" ........... xr 77 I r-TT-T _,-- -4 CITY OF IOWA CITY 'P8 �fMEMORANDUM Date: December 14, 2017 To: Mayor and City Council From: Ashley Monroe, Assistant City Manager Re: 2016-2017 Strategic Plan Summary We are pleased to present the City's 2016-2017 Strategic Plan Summary report. This final report, attached for your review, expands upon the August 2017 Strategic Plan Update and summarizes activity progress through December 2017 for the Council's seven Strategic Plan initiatives. Although this two-year Strategic Plan has technically come to an end, City operations continue to address many in -progress projects that have stemmed from Strategic Plan initiatives. To describe the complex and expansive reach of the seven selected broad Strategic Plan goals and 36 identified strategies, I offer the following: 1) The City has addressed 35 of 36 identified strategies and the remaining project is planned for presentation in spring of 2018. Only a revised annexation policy was started and then delayed due to the time -sensitive prioritization of other matters. Two of the 36 strategies, creation of a "sustainable built environment committee" and a "Council committee focused racial equity and social justice" were not pursued further after Council consideration. 2) Over 163 additional projects and programs, related to one of the 36 detailed initiatives, have been taken on since January 2016. In some cases, these actions were not specifically identified by Council but were identified by staff as directly applicable to the broad scope of one or more of the seven Strategic Council goals. These actions were major activities that included planned events, conferences, job fairs, grant programs, infrastructure improvements, policy development, studies and building partnerships, among many others. 3) Beyond these measures, at least 339 non -duplicated actions or activities occurred during the implementation of ideas and specific targets set by the seven Strategic Plan Initiatives. While the count may not be a perfect capture of City progress, it demonstrates the far-reaching opportunity and connectivity of the Plan objectives. 4) A simple map of where Strategic Plan activities have taken place is attached to the report. Approximately 28 of the 36 Strategies could be counted as "substantially complete" but this is a subjective view. Several items, such as the completion of a racial/socioeconomic equity impact review toolkit or setting a goal for reducing City-wide carbon emissions are arguably "complete" after they are achieved but can be expanded upon. In other strategies, such as reducing the property tax levy, or supporting historic preservation efforts, even with the success of an annual reduced levy or implementation of the new historic preservation fund grant and loan programs, could be considered as still in -progress. This fact underscores the number of on-going activities that the current Council has prioritized. In many instances, the ball has been set rolling and continued implementation will be relatively simple if it meets the priorities of the next Strategic Plan. Information about the on-going Strategic Plan -related projects will be included in materials provided to Council prior to the upcoming strategic planning session. 2016-17 Strategic Plan Summary l000. City of Iowa City 410 E. Washington St. Iowa City, IA 52240 319-356-5010 icgov.org December 2017 P � v 1 �1 4f �� tirt {3 v �>y � yCe q 7 l� n December 2017 "'" '� ^s& .*S It 1 Li1FYi � v {3 I "'" '� ^s& .*S It 1 Li1FYi Table of Contents Tableof contents..............................................................................................................................................................................................................................................2 Introductionand overview....................................................................................................................................................................................................................3 -7 Priority 1: Promote a strong and resilient economy...............................................................................................................................................................8 - 14 Priority 2: Encourage a vibrant and walkable urban core..................................................................................................................................................15 - 21 Priority 3: Foster healthy neighborhoods throughout the City.......................................................................................................................................22 - 27 Priority 4: Maintain a solid financial foundation....................................................................................................................................................................28 - 29 Priority 5: Enhance community engagement and intergovernmental relations.......................................................................................................30 -41 Priority 6: Promote environmental sustainability..................................................................................................................................................................42 - 54 Priority 7: Advance social justice and racial equity...............................................................................................................................................................55 - 64 Page: 2 Introduction and Overview City Council members are, from left: Terry Dickens, District B Pauline Taylor, District A Jim Throgmorton, At -Large, Mayor John Thomas, District C Kingsley Botchway II, At -Large, Mayor Pro Tem Susan Mims, At -Large Rockne Cole, At -Large Page: 3 City of Iowa City organizational profile City Council Iowa City is governed by an elected City Council of seven members: four Council members at -large and three District members. The Council is responsible for appointing the City Manager, City Attorney, and City Clerk. City Manager The City Manager serves as the chief administrative officer for the organization. The City Manager implements the policy decisions of the City Council, enforces City ordinances, and appoints City officials, as well as supervises the directors of the City's operating departments. City staff Iowa City employs approximately 600 full-time staff mem bers to execute the City Council's policies and provide public services to over 70,000 residents. These include water, sewer, stormwater, garbage and recycling utilities, as well as public services like public safety, building and housing inspections, parks and recreation, street maintenance, engineering, development services, transportation, local cable television programming, and senior services. City accolades In 2008, Iowa City was designated as a City of Literature by UNESCO, becoming the third city recognized internationally and the first and only U.S. city to date. Since 2014, the City has been recognized in over 20 "Best Of' publications, including "The Best Small City for Educated Millennials" by Business Insider, "The Best City for College Grads" by the Huffington Post, and "The Best City for Successful Aging" and "Number Five Best Performing Small City" by the Milliken Institute. M Introduction and Overview History and background The strategic planning goal -setting session focused on the following areas: ► Issues, concerns, trends, and opportunities ► Ongoing or committed projects ► Significant new projects, programs, policies, and initiatives Council further refined their top priorities and initiatives at subsequent work sessions. Specific programs, policies, and projects were iden- tified to guide staff activities for the next two years and communicate Council's priorities to the public. The resolution on the March 1, 2016 City Council agenda formally adopted the Council's strategic plan priorities and reflected the lan- guage, goals, and intentions that were developed by the City Council in the work sessions and meetings held Nov. 30, 2015, and Jan. 14, Jan. 21, Feb. 2, and Feb. 16, 2016. Iowa City's 2016-17 Strategic Plan This strategic plan intends to foster a more inclusive, just and sustainable Iowa City. ► 1. Promote a strong and resilient local economy ► 2. Encourage a vibrant and walkable urban core ► 3. Foster healthy neighborhoods throughout the City ► 4. Maintain a solid financial foundation ► 5. Enhance community engagement and intergovernmental relations ► 6. Promote environmental sustainability ► 7. Advance social justice and racial equity Page: 4 Introduction and Overview Page: 5 City Council -identified projects, programs, policies, and initiatives for the Strategic Plan 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 Encourage a vibrant and walkable urban core • Consider creating anew 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 Introduction and Overview 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 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 Enhance community engagement and intergovernmental relations • Provide timely and appropriate input on the ICCSD's planned 2017 bond referendum • Televise regular City Council work sessions • Significantly improve the ability of Council and staff to engage with diverse populations on complex or controversial topics 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 Page: 6 Introduction and Overview 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 wo rkfo rce • Identify a substantive and achievable goal for the provision of affordable housing in Iowa City and implement strategies to achieve this goal Page: 7 Promote a strong and resilient local economy More than 200 people attended the inaugural Iowa City Farm to Street Dinner on Linn Street in late August 2016. Tickets for the 2017 event went on sale in advance, and again sold out within a matter of hours. RA* Supplemental DOUBIE UPNutrition rood WCRS" -Z Assistance Program Page: 8 Strategies to meet this goal: Identify how the City and local partners can effectively market and grow the local foods economy ► Budgeted a total of $55,000 for local foods initiatives in FY17 & FY18 ► Farm to Street Dinner The City is in its second year of partnership between Johnson County and the Iowa City Downtown District in hosting a community meal fundraiser that supports local food producers, raises awareness about local food systems, and benefits a selected nonprofit, in addition to the Iowa City Parks and Recreation Foundation. Field to Fam ily was the beneficiary in 2016 and the Iowa Valley Global Food Project received support in 2017. The City provided financial support in the amount of $5,000 for the event, and staff to help plan and provided operational support for permit applications, road closures, traffic control, recycling and clean-up, all while working with fellow coordinating partners. ► Community Meal A community "Serving up Opportunity' BBQ was held in Wetherby Park in collaboration with local food vendors. This event featured guest speaker Jason Sole, the Minneapolis NAACP President, Criminal Justice Consultant, and Professor at Hamline University. Children's activities, live entertainment and booths from various organizations were provided. ► Double Your Bucks The City supported the "Double Your Bucks" program at the Iowa City Farmers Market. Through the program, electronic benefit transfer (EBT) users doubled their cash when making purchases at farmers' markets. ► Supplemental Nutrition Assistance Program (SNAP) The Iowa City Farmers Market began offering a centralized Supplemental Nutrition Assistance Program (SNAP) in 2016. Promote a strong and resilient local economy Building the Backyard Abundance Edible Classroom Project at the Robert A. Lee Recreation Center. The Farmers Market Taste of Market sizzles with local flavor. Page: 9 ► Senior Farmers Market Nutrition Program The Senior Center partnered with the Heritage Agency to distribute 100 packets of checks for the Senior Farmers Market Nutrition Program (SFMNP). Intended for low-income older adults, each qualified participant received $30 in checks to use at local farmers' markets for produce or honey. The City sponsored the program at $5,000. ► Summer 2017 Beginner Garden Program The City funded a master gardener -instructed program with 20 families/individuals participating. This successful program could be expanded to more weeks and more on-site coaching from the program instructor. The program's first year went very well. The twenty participating families received gardening kits, including equipment and seeds, and were instructed by Master Gardener Nancy Pope. In future years, the program could be expanded to more weeks and more on-site coaching from the program instructor. The program was promoted directly to underserved populations through the following avenues: • Neighborhood Centers of Johnson County - family support staff • Coalition for Racial Justice • Center for Worker Justice • International Women's Club • Sisters In Power - social group • Black Voices Project ► Garden Plot Rentals Twenty plots were added at Kiwanis Park and 16 were added at Reno Park. All 200 garden plots available for rent were full this year. ► Backyard Abundance Edible Classroom project The City helped to support the Backyard Abundance edible classroom educational project at the Robert A. Lee Recreation Center. • Community partnership with several sponsors and supporters including the State of Iowa Department of Agriculture • Ribbon cutting on Sept. 17, 2016 Promote a strong and resilient local economy ► Plant Sale and fundralsers Backyard Abundance, Friends of Hickory Hill Park and Project Green held sales in 2016 and 2017 at the Robert A. Lee Recreation Center in partnership with the Parks and Recreation Department. ► Farmers Market events: Taste of Market and Local Food Fair • Market staff grilled and distributed free samples from our local vendors. • Field to Family hosted a Local Food Fair to showcase the work being done to support Iowa City's local food system in 2016. Review and consider amending the City's Tax Increment Finance (TIF) policy ► TIF policy stakeholder meetings TIF policy stakeholder meetings are complete. Nine focus groupswere held to solicit feedback on current policies and recommendations for improvement. Focus groups included past TIF recipients; affected taxing entities; nonprofit organizations including representatives from labor organizations; architects, engineers, and developers; community promotional organizations such as the Iowa City Downtown District, Chamber of Commerce, and the Convention and Visitors Bureau; environmental advocacy groups; and arts and cultural organizations. ► Economic development policy update The City's Economic Development Policies were amended May 3, 2016, to include a requirement for the provision of affordable housing when residential projects receive public financing, including TIF. Fifteen percent of residential units must be affordable for a minimum of 20 years when a project receives City funding. • The Council Economic Development Committee considered a first draft of new TIF Policies at its July 21, 2017, meeting. A new TIF policy approved by the Economic Development Committee on Oct. 19, 2017 was presented to Council on Nov. 6, 2017. The TIF policy, including new or updated measures for sustainability, building heights downtown, historic preservation, economic justice, affordable housing, quality jobs, and other public interests, was approved. Promote neighborhood commercial districts and build stronger relations with business owners throughout the community ► Involvement with business community City staff serve on the boards of the Chamber of Commerce, Iowa City Area Development Group (ICAD), and the Iowa City Downtown District. Staff members regularly attend functions offered by these groups, such as the Chamber of Commerce roundtable lunches. Page: 10 Promote a strong and resilient local economy The MERGE open house was held in lune 2017. MERGE co -working space and prototype lab. Page: 11 ► Small business engagement Through the "So, you want to start a business?" and 'Building Business Basics" programs, as well as the Kirkwood scholarship partnership, staff is working to strengthen relations with Kirkwood Community College and emerging small businesses. Work closely with the University of Iowa and Kirkwood Community College on future facilities and economic development opportunities, especially in the Riverfront Crossings District ► MERGE MERGE is a collaboration with ICAD and the City of Iowa City for entrepreneurial co -working space and prototype laboratory. The facility is located in the City - owned Iowa City Public Library commercial space and is provided to MERGE at reduced rent. The City also supports ICAD operations annually. The City Council has authorized the City Manager to contribute up to $100,000 for build out of the space. MERGE held a grand opening/reception on June 15, 2017. Kirkwood Community College is also a partner in MERGE and supports its operations through programming and sponsorships. 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 ► It does not appear there is enough support for the development of a new facility at this time but City staff remains vigilant in identifying opportunities as they may arise. However, City Communications promoted existing apprenticeship programs through a partnership with labor organizations. Promote a strong and resilient local economy Over 80 people participated in the Building Business Basics workshop series, helping them learn the major concepts of creating a business plan. IlryJhbdYpunm94utN�.:.3n 4Trpoyun -- i-- Building? ono Business Basics ro Isom how md.M.p a plan ea launch Your own b.i.,si Saureay, MaY M M.. Kmm16NIYMeh+Re�:m belnw.M �.. nb Pryi N�nilfn mype.me.Nq rgoryv Luf 0.wF�e!•:v:t mµ.mn wv(py Eeve .n�i�� �M1TI1' SNMuIe 6 Worksudarrs • GJbRJO a.m: M1nwmiv. •IO�m.Nmli'. I.�e rolfu'I. n:xaYM1N fa':.nY '... .. r:.. ..iii e... <���eN�" y �i�arnu,{o.. w n• ...: VFnivov Nui,eniM� - 1111 spairsom ❑,' mai Page: 12 Proactively seek opportunities to facilitate development of our interstate entryways in a manner consistent with this Strategic Plan ► Forest View Comprehensive Plan At their Aug. 18, 2017, meeting, the City Council unanimously approved a comprehensive plan amendment for the Forest View redevelopment. Develop programs aimed to enhance small business development and retention with a focus on diverse communities ► Increase number of minority owned businesses Entered into discussions with Johnson County, Kirkwood Community College, MidWestOne Bank, and Neighborhood Centers of Johnson County to evaluate strategies to increase the number of businesses in the area that are owned by women and/or persons of color. ► "So, you want to start a business?" workshop series Partnered with Kirkwood Community College, Community CPA, and Sankofa Outreach Connection to provide the "So you wantto starta business...?" educational series with financial support from Hills Bank & Trust Company, MidWestOne Bank, and University of Iowa Community Credit Union. Five business development workshops were held at Kirkwood's Iowa City campus during May and June 2016, marketed to women, immigrants, and persons of color. Approximately 50 people attended the workshops that provided information and technical assistance to those wanting to start their own business. PowerPoint slides are available on the City's website and the series was recorded and aired on City Channel 4. ► "Building Business Basics" workshop series On May 20, 2017, staff held the "Building Business Basics" workshop on the Iowa City Kirkwood campus. Over 80 participants rotated through five stations to learn how to complete a business plan and what community resources are Promote a strong and resilient local economy September 2017 Job Fair held at Robert A. Lee Recreation Center. Page: 13 available to assist. The workshops ended with a roundtable lunch with small business owners. Sankofa Outreach Connection, Kirkwood and the Center for Worker Justice helped market the workshop to women, immigrants and persons of color. Translation services were provided by the Center for Worker Justice and Kirkwood. Hills Bank & Trust Company, MidWestOne Bank, and University of Iowa Community Credit Union provided financial support. Another session of "Building Business Basics" will be held in spring 2018, partnering with Kirkwood and several other community organizations. MidWestOne Bank will continue to operate the affiliated MicroLoan program. ► MicroLoan Program The City's MicroLoan Program was adjusted to provide better terms (3% interest, $10,000 maximum loan fora 5-yearterm).This program provides lowto moderate income persons with access to affordable loans to start or expand a business in Iowa City. The program has had renewed interested following the workshops held at Kirkwood and the improved loan terms. ► Scholarships The City is providing a grant to sponsor two scholarships for female and/or minority students interested in taking an independent study class on how to start a business at Kirkwood's Iowa City campus during the 2017-2018 school year. Their participation is a direct follow-up to the "Building Business Basics" workshop held in May 2017. Other initiatives ► "Center of Influence Tour" Job Fair The Human Resources Division participated in the April 14, 2016, job fair at the Iowa City National Guard Armory. The fair was open to the public and included a variety of employers from different industries throughout the corridor. ► Job and Resource Fair A job and resource fair sponsored by the City, Iowa Works, Iowa Vocational Rehabilitation Services, Shelter House, and Successful Living, was held on Sept. 12, 2017, at the Robert A. Lee Recreation Center. Promote a strong and resilient local economy The Big Grove project will encourage further investment in the Riverfront Crossings District. The new Harrison Street Parking Facility opened in April 2017. Page: 14 ► Facade improvements Funding was approved for facade improvements for Big Grove Brewery's Iowa City location. This redevelopment is an important first step in revitalizing the southern portion of the Riverfront Crossings District. The planned park development, adjacent to the Big Grove site, will also help encourage further investment in the area. City Council has approved several amendments to the Riverfront Crossings Form Based Code for Big Grove and surrounding properties. ► Harrison Street Parking Facility The 600 -space Harrison Street Parking Facility opened in April 2017. The parking ramp connects to the new MiclWestOne building to the west and the soon to open Sabin Townhomes to the east. In addition, this facility will provide vital parking for future developments in the Riverfront Crossings area. The facility provides parking for monthly and visitor vehicles, bicycles, mopeds and motorcycles, as well as two electric vehicle charging stations. ► Community support • Approved funding for Film Scene and Riverside Theatre, two of Iowa City's invaluable non-profit organizations that provide arts entertainment. • Approved funding for Entrefest, a conference for entrepreneurs and other business people held in Downtown Iowa City. Encourage a vibrant and walkable urban core The home at 304 S. Summit St. was restored to its former beauty and earned its owners an Historic Preservation Award. Preservation efforts are also being completed for the log cabins in Upper City Park, which are listed on the National Register of Historic Places. Page: 15 Strategies to meet this goal: Consider creating a new City Council committee with a focus on the sustainable built environment ► Council considered this action at an April 5, 2016, work session and decided not to move forward with the committee as proposed. Support historic preservation efforts ► Historic Preservation fund The new Historic Preservation Fund will provide grants and low-interest loans to homeowners making improvements to historic properties. Grants and loans will fund 50% of project costs, up to $5,000. Grants are available for owner -occupied homes where the household income is 140°/% of median income or less. Loans are available to landlords, and to owner -occupied homes where the household income is more than 140°/% of median income. ► Houser -Metzger House move The City facilitated the move of the historic Houser -Metzger House from 422 Iowa Ave. to 623 College St. in 2016. As a result, approximately 45 tons of demolition debris was kept out of the landfill, and a historically appropriate house was moved to the College Green Historic District. Several departments and divisions, including Public Works, Parks and Recreation, Police, and Neighborhood and Development Services, devoted time and resources to guiding the move of the house. ► Rehabilitation of Upper City Park log cabins The City secured a $25,000 Historical Resource Development Program grant for rehabilitation of City Park's Old Settlers' Association of Johnson County Cabins. The cabins are listed on the National Register of Historic Places. Work is anticipated to be completed in 2018. The total cost of the project is $256,900, supplemented by the Historical Resource grant and $11,263 in private donations. Council approved the final bid award on June 20, 2017. Encourage a vibrant and walkable urban core In order to address the need for African American housing, the Tate Arms building, located at 914 S. Dubuque St., was established around 1940 and served as a private rooming house for male African American students until the mid-1960s. It was named after its owners, Junious ("Bud's and Elizabeth ("Bettye Crawford Tate. In 1920, The Iowa Federation of Colored Women's Clubs opened the Federation Home, located at 942 Iowa Ave., to serve as a dormitory for African American women studying at the University. This dormitory operated until 1950. Page: 16 r ► Historical designation The historical designation of 716 N. Dubuque St. was approved at the April 19, 2016, City Council meeting. ► National Register of Historic Places A home at 715 W. Park Road was nominated for inclusion on the National Register of Historic Places. ► Other historic preservation • In May 2017, a development agreement reached with the new development, Augusta Place, required designation of the Unitarian Church at 10 S. Gilbert St. as a historic landmark. The designation is complete and the Unitarian Church is now officially a local landmark. • 715 W. Park Road nominated for inclusion on the National Register of Historic Places. • Funded a historic survey of Downtown Iowa City— survey commenced July 2017. This project, planned for completion by March 2018, is supported by a $5,000 grant from the National Trust for Historic Preservation. The site analysis is now complete and the consultant is currently comparing findings to the 2001 survey. A meeting was held recently with downtown businesses and property owners. • The Historic Preservation Commission held a reception in November 2016 to honor Henry Fisk, an Iowa City architect known for his Mid -Century Modern designs, including the original Press -Citizen building, the municipal airport terminal, and several homes in Manville and River Heights. • A historic house tour was given in May 2017 featuring the Byfield House at 715 Park Road, the City -owned Ned Ashton house, and several Mid -Century Modern houses in Manville Heights. ► Civil Rights Grant The Historic Preservation Commission was awarded a $16,000 Civil Rights Grant from the National Park Service. The grant will be used to fund the nomination of Iowa City's Tate Arms rooming house and the Iowa Federation Home Dormitory Dan Parolek Jay Walljasper Page: 17 4 - Encourage a vibrant and walkable urban core Zach Benedict to the National Register of Historic Places. The two buildings serve as landmarks associated with the struggle for housing equality for Black students at the University of Iowa. Initiate public dialogue about the meaning and importance of a walkable neighborhood and how to achieve it ► "Missing Middle: Responding to the Demand for Walkable Urban Living" public and staff presentations conducted by Dan Parolek Daniel Parolek is a nationally recognized architect, urbanist and leader in architecture, design, and urban planning. Missing middle housing is a term Parolek uses to define the type of housing that falls between single-family homes and large apartment complexes or high-rises, like duplexes, fourplexes, bungalow courts, mansion apartments, and live -work units. The missing middle provides housing for a range of incomes, ages, and lifestyles, and easily fits in with existing single-family neighborhoods, infill or urban renewal areas, or new construction projects. ► Zach Benedict presentation Zach Benedict is one of the leading voices in the "Lifetime Community" movement, focusing on the socioeconomic benefits of age -friendly neighborhoods. Benedict discussed research that indicates successful cities consistently prioritize communal attachment through social offerings, openness, and aesthetics. ► Jay Walljasper workshops Two public presentations were conducted in spring 2016. Thefirst, All That We Share: A Discussion of the Commons," was focused on a discussion of how community resources must be actively protected and managed for the good of all. The second event, a workshop titled "25 Ways You Can Create a Strong Community' focused on placemaking and the commons with an emphasis on community development in Iowa City's downtown. ► Jeff Speck presentation Jeff Speck visited Iowa City in October 2016 and held numerous events, including interviews with staff, a staff tour of town, a presentation to Johnson County elected officials, and a public presentation at the Iowa City Public Library. Jeff Speck is a Jeff Speck Page: 18 Encourage a vibrant and walkable urban core LEADING THE INCLUSIVE city planner and urban designer who, through writing, lectures, and built work, advocates internationally for smart growth and sustainable design. As Director of Design at the National Endowment for the Arts from 2003 through 2007, he oversaw the Mayors' Institute on City Design and created the Governors' Institute on Community Design, a federal program that helps state governors fight suburban sprawl. Speck is the author of "Walkable City — How Downtown Can Save America One Step at a Time." The Iowa City Public Library Book Club discussed this book at a recent meeting. ► Robin Hambleton visit: "Leading the Inclusive City' In March 2016, Robin Hambleton, Professor of City Leadership in the Centre for Sustainable Planning and Environments at the University of the West of England in Bristow, presented "Leading the Inclusive City" at the Iowa City Public Library. The program addressed global inequality and how cities can take steps to minimize inequality, advance socialjustice, promote environmental responsibility, and bolster community empowerment. Encourage diverse housing types and price points for a variety of income levels ► Inclusionary housing code amendments Council adopted inclusionary housing code amendments for the Riverfront Crossings District on July 5, 2016. ► Affordable housing requirements for TIF projects Council adopted affordable housing requirements for projects supported through tax increment financing (TIF) on May 3, 2016. Since then, the City has had several notable projects adhere to these standards, including: • Augusta Place, approved May 2, 2017, with 6 affordable units onsite and 12 offsite. • Hieronymus Square, approved Sept. 19, 2017, with 2 onsite and 5 offsite units or fee paid in lieu. Encourage a vibrant and walkable urban core Augusta Place will soon be constructed at 10 S. Gilbert St., next to City Hall. Construction plans will retain the historic Unitarian Church building. Page: 19 • Rather than housing units, potential upcoming TIF projects are likely to have components of road work. In these cases, affordable housing units may be gained through the support for completing road projects with TIF dollars if projects are approved. ► Housing First/FUSE initiative Council supported the Housing First/FUSE initiative, including financial support of $275,000 and adopting the necessary zoning code amendments. The project will construct a facility that provides low -barrier housing for chronically homeless individuals. The zoning code amendments were adopted July 5, 2016, and in 2017, Shelter House received a $2.7 million grant from the Iowa Finance Authority to support building construction. ► Augusta Place Augusta Place at 10 S. Gilbert St. and over the existing City Hall parking lot, is a mixed use residential development. Six onsite units will be purchased by the Housing Authority for affordable downtown housing and an additional 12 existing units at an offsite developer -owned property will rent at <40% area media income (AMI). Construction began in fall 2017. Other initiatives ► Urban Core Sign Code Amendments Amendments to the Sign Code were adopted in November 2016. The sign code amendments were based on a study completed by the firm Kiku Obata, sponsored by the City of Iowa City and the Iowa City Downtown District. The amendments are intended to foster more pedestrian -oriented signs and variety of signage. ► Washington Street median planting project In 2016, City staff from various departments volunteered to assist the Parks Division in replanting the Washington Street medians after the Houser -Metzger House move. Encourage a vibrant and walkable urban core Washington Street improvements included wider side- walks, enhanced plantings and parallel parking. The Co -Sign project brought new creative signage to Downtown Iowa city. PassportParking was implemented in Iowa City in May 2017, providing mobile parking payment options. Page: 20 ► City Hall beautification In spring and summer 2017, significant landscaping work was done around City Hall. New plants, sod, and limestone seating boulders were installed, along with new sidewalk, stairs and seating area at the Washington Street entrance. ► Washington Street Reconstruction Project The City Council approved the contract for the reconstruction of the two blocks of Washington Street between Clinton and Linn streets. In addition to upgraded underground utilities, the project enhanced the accessibility and walkability through wider sidewalks, narrower vehicle lanes and crosswalks. The project also evenly distributed parallel parking, enhanced plantings and street trees, improved ADA ramps and slopes, and provided consistent cafe locations for predictable pedestrian paths. The major construction work is complete and the contractor is completing punch list items, including kiosks. To increase the pedestrian friendly nature of the project, traffic signals planned for the Dubuque and Linn street intersection were replaced with stop signs as directed by Council. ► Co -Sign project The City supported the Co -Sign project, which helps demonstrate new urban core sign code. Twenty -thousand dollars split between FY17 and FY18 assisted 12 businesses in the Downtown District to install new creative signage. A well - attended reveal event was held on Aug. 11, 2017. ► Passport Parking The Iowa City Parking Departmentand the University of Iowa implemented a mobile parking service in May, using PassportParking as the vendor. Drivers can now pay for parking using smart phones, tablets or other electronic devices. Signage on or near the meter provides the zone and space number needed to complete the transaction. The app allows users to pay for the space, set an expiration alert, and extend their stay time up to the maximum allotted time. PassportParking can be used at every City metered space, most University meters, the Chauncey Swan Encourage a vibrant and walkable urban core The First Avenue grade separation and road diet projects improves walkability. Page: 21 Ramp, and the new Harrison Street facility. The app has seen upwards of 635 daily transactions and an average of 410 daily transactions, up from a daily average of 120 when first implemented. A significant increase is anticipated fall 2017. ► Notable walkability projects outside the core • The First Avenue Grade Separation Project and remainder of the First Avenue road diet, spanning from Mall Drive to Route 6 is complete. • Although completion was slated in 2017, the Mormon Trek Boulevard project will be completed in 2018. The schedule was lengthened due to the need for property acquisition. The Clinton Street project has also been delayed due to no bids received on the project, and will be rebid for the 2018 construction season. • Council gave direction to staff, and preliminary budget authority, to hire a consultant to study the feasibility of a road diet on Gilbert Street from Market Street to McCollister Boulevard. This study was added to the consultant agreement with Alta Design for the Bicycle Master Plan and is currently being completed. ,M Foster healthy neighborhoods throughout the City PUBLIC MEETING: RECOMMENDATIONS FOR IOWA CITY'S NORTHSIDE & SOUTH DISTRICT NEIGHBORHOODS Yfan w attend to le,,, more.bma the ..It. aft. lot.¢ Sty neiyhbaeho.d 0.di. Monday, tuly 24, 2017 6 P.M. IowaMee City Public Library Meeting Room A 123 S. Linn Street Northside a° .r eignporhGUfl 4 1-th d •,Jul„z, OF-,,tI N�nh , n-na�l�.�as hn n., w,Rnro:n.,oJ AIm,IffR Itmm ,,tire Inn'o (➢)' LS,Tfic lil,rap�,,� F Linn FLn 9nPrex nn. willp id e an:we.ew Mx[udi:x mndu:mlin Invert cirv, whidd, u,inethe Inpnrcl nadbnll o Fnnn It d Ccdw uwL a ,1 ovAd wlwfna MiJJle 11wd ,)yet[ is cm1L va larvgnc[alion eod pvrkiryl do:h'mm�Mbd In%I'_YO 6ngi mm�ng'N ¢cu:g JlJdlu'M1muinE lndufnad ar Mouv'nF lvµw lnl^ mJilionnl dryrlu fimlly Mmumxl apunmenl nuueinEr'-r'�¢I, es euPlere.. mennous. ane fourpins. IMrresen,a'on xcll lnelnde,emmmendm ert:4mn Ih, dmn, n: mrW,ev F, ladback yewlJe-0Ft,Ln co :mm nlr nny l"•nr-uol >la�. lj,m r°lborncl l::ben Plenna Nem, Ho-d n[e19-;R6gjl Jr. iv..+d6. a. M. NrneA k remnf^°' L11,�TICOS Recommendations on the concept plans for the Northside and South District neighborhoods were presented at a public meeting in July 2017. Page: 22 Strategies to meet this goal: Consider amending the City's Annexation Policy to require the provision of affordable housing in residential/mixed-use areas ► Revised annexation policy City Council directed staff to prepare a revised annexation policy as part of the Affordable Housing Action Plan. Due to the need to address State legislative changes to rental occupancy laws and significant department workload, this policy was temporarily delayed. A policy is planned for presentation in spring 2018. Evaluate the implementation of a form -based code in one or two parts of the community ► Concept plan Dan Parolek's firm Opticos has been conducting a zoning analysis of the Northside and South District neighborhoods in order to determine the viability of a form based code in order to promote missing -middle housing. Missing -middle housing is defined as housing types in between single family homes and large apartment buildings, like duplexes, triplexes, townhouses, and neighborhood -scale apartment buildings. Opticos will also be providing recommendations related to on -street parking in near -downtown neighborhoods. Opticos held public meetings and stakeholder interviews in February, May and July 2017. The report and recommendations were presented to Council in August 2017. Preliminary plans and estimates are underway for development of a form based code in the Northside and South District neighborhoods. ► Ordinance amendments and rezonings The Council adopted the east -side mixed use form based code Sept. 20, 2016. The Orchard District form based code was adopted by Council May 16, 2017. ,M Foster healthy neighborhoods throughout the City Construction crews at work in Cardigan Park. A sport court for basketball and futsol was completed at Wetherby Park in lune 2017. Page: 23 Develop strategies to diversify the membership of neighborhood associations ► The approved FY18 Budget expanded PIN Grants with the hope of broadening appeal to more neighborhoods and increasing neighbor engagement. It is too early to see significant change, but the City has received a new application for PIN funding from a neighborhood that has not recently submitted a request. Substantially improve access and use of public spaces through improvements to sidewalks, streetscapes, parks, and schools ► Mercer Park playground improvements The City's largest play area at Mercer Park was installed in spring 2016. It is all- inclusive, meaning it is designed to allow access for families and children of all abilities. ► Highland Park renovation This completed project features new playground equipment, sidewalk accessibility improvements, and a water fountain with a bottle filler and dog dish. ► Pheasant Hill Park playground improvements The neighborhood weighed in on the playground's design at a well -attended neighborhood meeting. Playground was installed in summer 2017. ► Park ADA Access and Facility Master Plan Council approved the contract for services to RDG Planning and Design at the Sept. 6, 2016, Council meeting. The master plan is a 10 -year planning document that prioritizes providing equitable, accessible, and well-maintained park facilities throughout the City. Park facilities have been evaluated for accessibility and maintenance needs, and recommendations for future facility needs. A draft plan was presented to Council on Aug. 1, 2017, and several identified projects are included in the draft FY19 budget. ,M Foster healthy neighborhoods throughout the City Phase I for Riverfront Crossings Park began in July 2017. Riverfront Crossings pedestrian bridge Page: 24 ► Other park improvement initiatives • Willow Creek Park: restroom and trails, 2016 • Happy Hollow Park: restroom and shelter, spring 2018 • Mercer Park: tennis courts/pickleball court renovations, completed summer 2017 • Frauenholtz-Miller Park: shelter, paths, playground, water fountain, completed summer 2017 • Hill Park Trail: bridge replacement, completed summer 2017 • Cardigan Park: Master plan complete. Playground, fall 2017; paths, landscaping, shelter, fire pit, 2018 • Creekside Park: Park Master Plan, completed to guide park renovation in FY18. Public meetings, slated for late spring 2017 • Wetherby Park: sport court for basketball and futsol, completed summer 2017 • Park planning: planning processes completed for Lower City Park and Eastside Sports Complex • Riverfront Crossings Park: phase I construction, began July 2017 • Hickory Hill Park: trail improvement and signage design underway with RDG. Improvements, planned for completion in spring 2018. ► Expanded curb ramp projects in 2016 The City Council approved doubling the funds allocated to the dedicated curb ramp project in each of the last three years. In 2016, the program installed ramps near Grant Wood Elementary, an area near the County Administration building, and other locations in the community as requested by residents. A significant portion of this work was funded by the CDBG allocation for infrastructure improvements. Also in 2016, pavement rehabilitation funding for asphalt overlay was increased significantly. For the next several years, the Capital Improvement budget proposes continuing the annual increase for the pavement rehabilitation by $100,000 per year. Pavement rehabilitation projects also include new curb ramps and accessibility measures. ,M Foster healthy neighborhoods throughout the City Some of Iowa City's natural areas are showcased at Terry Trueblood Recreation Area. Page: 25 Other public space initiatives ► Complete Streets funding Annual complete streets funding of $300,000 began in 2017. This is a new City Council initiative. Funds were used to support a road diet on Sycamore Street and will be used for the Clinton Street road diet next year. In 2018, an allocation of $150,000 is programmed for Bicycle Master Plan implementation. ► Tree Inventory A contract was awarded to Plan -It GEO for Tree Inventory/Emerald Ash Borer Response and associated street tree plantings plan. The project is 80% complete. The scope was expanded mid -project to include trees along many of the existing trails. ► Natural areas The City's Natural Areas Maintenance and Master Plan RFP has been awarded to AES (Applied Environmental Services), and the project is underway. The assistance provided by Americorps has helped with natural area maintenance, and the group is coordinating larger volunteer efforts for invasive species removal in spring 2018. ► Sycamore Street and Lower Muscatine Road The Sycamore Street and Lower Muscatine Road Landscaping Improvements were completed in spring 2017. This project adds street trees along both streets and installs landscaping in the roundabouts in the Sycamore Street corridor. Other initiatives ► Response to State Legislature's residential occupancy legislation In the 2017 legislative session, the State of Iowa changed the law to prevent cities from using familial status to regulate housing occupancy. The City Manager gave a presentation on neighborhood stability and potential solutions to address concerns stemming from the change in law. Staff assessed these opportunities and received Council feedback in October. To address a high number of requests to expand existing rental properties in anticipation of the law change (effective Jan, 1, 2018), the City Council decided to place a temporary six month moratorium on building ,M Foster healthy neighborhoods throughout the City The Iowa City Public Library's new bookmobile began visting various locations in May 2017. This UniverCity program home is one of 65 homes renovated by the City for owner -occupied housing. Page: 26 permits to expand existing rental properties or establish new rental permits. Code changes with revisions requested by Council during the initial presentation, have been presented to Council for final approval. More amendments to the Zoning Code will be presented early in 2018 to address additional housing concerns. ► Library Bookmobile The new ICPL Bookmobile arrived in April 2017 in time for a National Bookmobile Day celebration with Antelope Lending Library. The Bookmobile had a great summer with 19 weekly stops and 4 bi-weekly stops. Weekly Party in the Park programs, in conjunction with the Iowa City Parks and Recreation Department, drew 488 visitors to the Bookmobile and 1,186 people attended the thrice weekly Stories in the Park programs. The Bookmobile also went to the Farmers Market, Juneteenth, the Airport's Sertoma Fly -In Breakfast and Paws for a Cause. The Bookmobile Fall Schedule runs four days a week from Aug. 28 through Dec. 21, 2017. Highlights include 17 Weekly Stops, 4 new stop locations, Wednesday morning stops at areas preschools, a Monday stop at Grant Wood Elementary coordinated with the evening English Language Learning program, and a Thursday morning stop at Mercer Park coordinated with Parks and Recreation's Tot Time program. ► Housing Exterior Loan Program The Housing Exterior Loan Program (HELP) offers financial assistance to help upgrade the safety and appearance of local housing stock, while preserving neighborhood vitality. Zero -interest loans are provided for 50% of the cost of eligible improvements, up to $10,000. ► UniverCity updates Since 2011, the City has purchased 65 homes forthe UniverCity program. Fifty-eight have been rehabilitated and sold for homeownership. Five homes are currently being renovated and staff is working on the bid documents for one home. One purchase offer is pending and set to close in Jan 2018. There is a signed purchase agreement to purchase two additional properties this fall. There is one additional property to buy as budgeted for FY18. Nineteen homes were sold to households under 80% of median income. ,M Foster healthy neighborhoods throughout the City ► TRAIL Office location at the Senior Center Tools and Resources for Active Independent Living (TRAIL) is a non-profit organization that helps older adults remain in their own homes as they age. TRAIL provides volunteer support services, refers prescreened service providers, and offers opportunities for social engagement. The Center provides part-time shared office space to the TRAIL Executive Director. ► Prairie Hill Cohousing The City has been supportive of efforts to establish a cohousing neighborhood. The Iowa City Cohousing community has purchased 7.8 acres south of Benton Hill Park, west of the Iowa River, on the 900 -block of Miller Ave. The Prairie Hill development will consist of 33 owner -occupied, LEED certified homes, provide a common house to gardens, and create a diverse, sustainable community. This project hopes to reduce carbon emissions and support income -qualified households. The City has contributed $15,000 in matching funds for 15 State Workforce Housing Tax credited units. The Prairie Hill housing community will have no rental restrictions or income limitations, but the average dwelling unit cost for the assisted units may not exceed $200,000 per unit. The City has shared information about Prairie Hill meetings and efforts, as well as offered space to the groups at public events. Phase I of the Cohousing development is under construction and some of the first residents will be able to move in by early 2018. Page: 27 M Maintain a solid financial foundation Strategies to meet this goal: Continue to monitor the impact of the 2013 property tax reform and evaluate alternative revenue sources as determined necessary ► Alternative revenue streams are being evaluated in conjunction with affordable housing initiatives. The Affordable Housing Fund was funded through FY19 by TIF loan repayments to the City's General Fund. A variety of other funding mechanisms are available through other programs within the Affordable Housing Action Plan and development operations. ► Adjusted refuse collection and recycling fees to support increases in current and new services; the added yard waste/food waste fee provides a steadier and more reliable funding stream for new and current services; Landfill fee increases for miscellaneous charges to cover actual costs. ► 2017 Park Fee adjustments completed. ► Water Rate adjustment planned for FY19 budget proposal. Continue to build the City's emergency fund ► The City has created an emergency fund in order to prepare for the effects of 2013 property tax reform. The emergency fund will give the City financial flexibility given the uncertainty of future revenue and maintain service levels in the event of a sharp decline in revenue or the loss of State of Iowa 'backfill' payments. ► The City transferred $500,000 for excess ending General Fund fund balance for FY16. Monitor potential changes to Moody's rating criteria and maintain the City's Aaa bond rating ► Moody's reaffirmed the City's Aaa general obligation bond rating with the 2016 bond issue. The rating report noted that, "The City's financial operations are expected to remain healthy, given strong financial management, significant operating fund reserves and sufficient revenue raising flexibility." ► A Moody's scorecard analysis was conducted with Speer Financial in early March 2017. The City called the 2009C GO Bond on June 1, 2017. ► The City refunded the 2009A Sewer Revenue Bonds and the 2009B Water Revenue Bonds on July 1, 2017. The net present value (NPV) cash flow savings were $879,253 and $1,033,306, respectively, over the next eight years. Page: 28 Maintain a solid financial foundation Continue to reduce the City's property tax levy ► The fiscal year 2016-2017 budget reduced the City's property tax levy rate by $0.07, the fifth consecutive year of levy rate decreases. The fiscal year 2017-2018 property tax levy rate was decreased for the sixth straight year, this time by $0.25 as of July 1, 2017. ► Recent Airport agreements allowing for private construction of additional hangars expands aircraft housing abilities and supports regional business travel, and generates revenues that reduce reliance upon taxpayer levy. Maintain healthy fund balances throughout the City's diverse operations ► The City's funds currently have healthy fund balances. Utility rates and service charges are evaluated annually to ensure they are sufficient to fund operations and capital improvement needs. Maintaining adequate fund balances is a large component of Moody's bond rating criteria. Page: 29 Distribution of Moody's General Obligation Bond Ratings for Cities in Iowa 20 18 16 14 12 0 10 a 8 3 6 Z 4 2 Aaa Aa1 Aa2 Aa3 Al A2 I A3 I Baal I Baa2l Baa3 ■ EtatfeT 2 7 11 12 19 13 2 0 1 1 tal 2.94%110.29116.18117.65127.94119.1212.94%10.00%11.47%11.47A Iowa City Property Tax Rate Trend $18.00 $17M $115AO $15m $14.00 $13.00 $12.00 FV08 FY09 FY10 Hit FY12 FY13 Fy14 Fy15 Fy 16 FY17 Iowa City Tax Rate 1 17.297 1 17.717 1 17.853 1 17.757 1 17.842 1 17.269 1 16.805 1 16.705 1 16.651 1 16.583 ♦Percent Change 1 -0.03% 1 2.43% 10.77% 1-0.54% 10.98% 1-3.21% 1-2.69% 11).60% 1-0.32% 1-0.41% Page: 29 Distribution of Moody's General Obligation Bond Ratings for Cities in Iowa 20 18 16 14 12 0 10 a 8 3 6 Z 4 2 Aaa Aa1 Aa2 Aa3 Al A2 I A3 I Baal I Baa2l Baa3 ■ EtatfeT 2 7 11 12 19 13 2 0 1 1 tal 2.94%110.29116.18117.65127.94119.1212.94%10.00%11.47%11.47A M Enhance community engagement & intergovernmental relations In May 2017, City Council approved a resolution in support of the ICCSD school bond referendum. 9( City of Owa City HUMANRIGHTS Commission 319-356-5022 www.icgov orglhamanrighis humanrights@a iowa-city org Page: 30 Strategies to meet this goal: Provide timely and appropriate input on the ICCSD's planned 2017 bond referendum ► Communicate Support The Council approved a resolution in support of the planned school bond referendum on May 16, 2017. Televise regular City Council work sessions ► This has been implemented. Additionally, Council requested that Economic Development Committees be recorded and air. This has also been implemented. Significantly improve the Council and staff's ability to engage with diverse populations on complex or controversial topics ► Council and staff have participated in a number of panel discussions, forums, neighborhood meetings, and listening posts thatwill help inform the conversation. Some recent examples of public outreach on complex or controversial topics include: • City staff attended the "Disproportionate Minority Contact (DMC) Forum: The Impact of Racial Injustices on Youth" held at the Iowa City Public Library and sponsored by the DMC Youth Committee for Johnson County in 2016. • TIF stakeholder meetings were held with a broad range of community groups in 2016 and 2017. • The Police Department participated in a panel discussion on Police and Public Safety at the "Relax:Talk:Grow" event held at the Iowa City Public Library. It was sponsored by the University of Iowa African American Council and the University of Iowa Public Policy Center in 2016. • In 2016, police officers participated in a com munityforum at a local church which highlighted a recent high profile stop of a minority individual. The interaction M Enhance community engagement & intergovernmental relations The Mayor began a neighborhood walk program in 2016 to engage residents in the community. Police officers attend a Crisis Intervention Team (CIT) training to learn how to assist individuals with mental illness or substance abuse crises. Page: 31 had generated thousands of YouTube hits and was seen as a positive example of how police officers should interact with minority community members during high stress events. • All sworn members of the department completed online 2016 "Fairand Impartial Policing" training. This was part of an online training series that officers complete every month and is beneficial for officers when engaging with the public • Council listening posts have been held at new locations, engaging a more representative sample of the community. • Staff created a budget at -a -glance document to convey key points of the FY17 budget and will further refine that effort for the FY18 budget. • The Mayor initiated a new neighborhood walk program to engage residents in varying parts of the community in 2016 and continues to walk different areas of the community. Other initiatives Several of these include activities related to recommendations from the Ad Hoc Diversity Committee and actions plans from the reports on racial equity. ► Staff roundtables The City Manager's roundtable conversations have continued to engage community stakeholders on issues of inclusivity and social justice. Community groups that attend roundtables include but are not limited to: Black Voices Project, the Coalition for Racial Justice, the Human Rights Commission, the Center for Worker Justice of Eastern Iowa, and Johnson County. ► Crisis Intervention Team concept Council and staff have been working with several local agencies to explore the Crisis Intervention Team (CIT) concept for assisting individuals experiencing mental illness or substance abuse crises. The working group includes law enforcement agencies, health care providers, community advocacy groups, social service providers, and elected officials. Several Councilmembers and City staff have travelled to San Antonio, Texas to observe the program's operations first-hand, and officers have M Enhance community engagement & intergovernmental relations Police have increased their visibility by engaging in neighborhood foot patrols to build relationships in the community. Coffee with a Cop promotes dialogue between residents and police throughout the City. Page: 32 received weeklong training in the program. A curriculum has been set for local training, and each sworn officer will attend a 40 hour training session in CIT during 2017 and 2018. Three sessions were held in 2017. ► Shelter House donation drives In 2016, the City celebrated National Community Development Week by sponsoring a donation drive for Shelter House to collect cleaning supplies and personal care products. In 2017, ICPD and Bruegger's Bagels partnered on a Thanksgiving Food Drive. Patrons brought in a canned food item in exchange for a discount on their meal. 171 lbs. of canned goods were collected for the Crisis Center. ► City department and division initiatives - Outreach Community Outreach Officer In 2016, ICPD added a full-time a Community Outreach Officer position. Neighborhood Patrols and Building Relationships The Police Department has significantly increased neighborhood foot patrols and officers are getting out of their patrol vehicles to engage the community and build relationships through non -enforcement interactions. Southside Substation The Police Department enhanced the use of their Southside Substation by encouraging officers to complete paperwork and other administrative tasks at this facility, thus being more visible and available to the community in that area. Additionally, the Community Outreach Assistant is now based out of the substation and maintains regular office hours at the facility. Recreation Program Supervisor - Special Populations The Recreation Program Supervisor position was amended to include outreach to underserved populations. New programs have included a Beginner Gardening program and summer Teen Dynamics afternoon and evening recreation program. Coffee with a Cop The Police Department continues to expand "Coffee with a Cop" to promote dialogue with diverse populations in geographically dispersed locations throughout the community. M Enhance community engagement & intergovernmental relations ICFD and ICPD presented two camps for nearly 80 junior and senior high students this summer. the Iowa City Police Department encourages everyone to READ! \ How to Geta Library Card c,,QWur d wre d e lova Pied a r Al,unx ded d n1e rc ���;,n�d,eam A bookmark project by the Iowa City Public Library and the Police Department encouraged reading, shared safety messages, and provides information in several languages on how to get a Library card. Page: 33 Emergency Services Youth Summer Camp ICFD and ICPD partnered with the Johnson County Ambulance Service to present two day camps for nearly 80junior and senior high students. Attendees came from 24 Iowa City and regional schools, and were introduced to the work emergency responders do to keep our community safe, while also given opportunities to gain hands-on experience in EMS, fire and police skills. LOST Program In 2016, the Police Department collaborated with several community organizations to launch the "Loved Ones Safe Together" or LOST, program to assist in identifying and locating community members who have been separated from their families or caretakers. ICPD hosted a community presentation to launch the project. This program is currently being underutilized by the community. A review of marketing efforts will take place in August, focusing on boosting enrollment in the program. Library Cards The Iowa City Public Library extended outreach on how to get a library card by creating handbills in several languages, including Spanish and Arabic. Autism Special Access Hour In 2016, ICPD took part in the Iowa City Public Library's Autism Special Access Hour, where people with Autism could become more familiarwith police. Safety Messages The Library also worked with the ICPD and ICFD to create bookmarks they use in their outreach initiatives. The bookmarks feature contact information for each department, encourage students to read, and shares how to get a library card, with safety messages in English, Spanish, Arabic and French. Intergenerational Social Group An intergenerational social group formed in summer 2017. Monthly events were held during fall 2017, including "speed friendshipping;' a board game social, and team trivia events. Events have been well attended with participant ages ranging from pre -teen to 80+. The monthly program series will continue in spring 2018. M Enhance community engagement & intergovernmental relations Community Involvement ICPD provides Safety Village tours for groups of children. Officer Faulkcon of the ICPD and K9 Rakker give demonstrations to South East Junior High students. Page: 34 ► City department and division initiatives - Participation in events Public Events ICPD officers attended many public events including: Memorial Day Honor Ceremonies; Donations of food/fruit at the Youth Shelter; Hawkeye Day of Caring Community Cleanup - Wetherby Park; Autism Day - Terry Trueblood Recreation Area; Texas Roadhouse Special Olympics fundraiser; Kites for Kids at three locations; Bike Rodeo; Party in the Park - Market Square Park; Wetherby Park BBQ; attendance at various school sporting events. Community Events Calendar The Police Department launched a police/community events calendar to enhance the effectiveness of community outreach positions. This calendar is available to all police and city employees and will encourage greater participation and interdepartmental cooperation. Community Presentations Iowa City officers participated in numerous community presentations, including: Safe Kids Event - display of bomb truck; ALICE active shooter response training to a number of community entities; ODARA risk assessment presentation at National Guard Readiness Center and Johnson County Courthouse; domestic violence training at several locations; "In Her Shoes" - domestic violence educational event; RVAP advocate training; K9 Presentation - Terry Trueblood and Johnson County Attorney's Office; Safety Village Tours - Grant Wood Elementary; CIT Presentation - Homeless at St. Patrick's Church; Drivers education classes; Cub Scout Den meetings; child safety issues. UI Training ICPD officers conducted five, one hour training sessions entitled, "Know the Law;' to 459 University of Iowa students in 2016. School Events Iowa City Public Library staff attended events at Mark Twain and Grant Wood Elementary Schools. In total, 201 students received new or replacement library cards through the Library's outreach programs to help students get library cards in time for summer and the Summer Library Bus program. Additionally, Library staff M Enhance community engagement & intergovernmental relations Twenty children were chosen to be a part of the annual "Shop With A Cop" day on Sunday, Dec. 11, 2016. "Shop With A Cop" continued in 2017. Page: 35 attended back to school events at all Iowa City elementary schools to promote and issue library cards and share the new bookmobile schedule. Fifty-two new cards were issued. Job Fair The Human Resources and Police Departments participated in the "Center of Influence Tour, Lunch and Job Fair" with the National Guard and Employer Support of the Guard and Reserve (ESGR). The job fair was an opportunity to network with other area employers and to visit with job seekers. Juneteenth Celebration Council members and City staff from several departments participated and volunteered in events held as part of the Annual Juneteenth Celebration in Iowa City. The City co-sponsored the event. Earth Day Staff participated in Kirkwood Community College's Earth Day Event sponsored by Kirkwood's Ecology and Environmental Club. Police Chaplain Program The Police Department encouraged their chaplain unitto attend police/community events to enhance their involvement in departmental activities and give the ICPD another tool to collaborate with the community. Shop with a Cop In 2016 and 2017, the ICPD took local youth shopping for the holidays at the Iowa City Walmart as part of the Iowa City Police Association's Shop with a Cop Program. Durham School Services provided transportation for the event. The Iowa City Police Association collaborated with the Iowa City Masons Lodge #4 and Kohls to host a Clothe A Child event on Nov. 11, 2017. The event provided winter clothing for 20-25 kids in the Iowa City area, with each kid (accompanied by parent and officer) selecting winter clothing up to $200 in value. Community Partnerships The Police Department was involved in a number of Community Partnerships: Human Trafficking Meeting; Johnson County Elder Abuse; Prelude - Current Trends in Drug Abuse Training; M Enhance community engagement & intergovernmental relations City staff worked to provide bicycle training in safety and maintenance to area disadvantaged youth through the "Free Wheels" program. Multiple City departments are participing in the summer Party in the Park events. Page: 36 • Iowa City Downtown District— To champion the Iowa City Downtown District as a progressive, healthy, and culturally vibrant urban center of the region. • Local Homeless Coordinating Board — The Local Homeless Coordinating Board is a community collaboration dedicated to preventing homelessness in Johnson County. • The ICPD continues to collaborate with the Iowa City Bike Library to repurpose abandoned bicycles impounded by the Department. Instead of being auctioned or recycled as scrap metal, the Bike Library refurbishes some of the bicycles, which are then loaned out through their organization. The remaining bicycles are collected by Working Bikes, a non-profit that rescues discarded bicycles and gives them new life by redistributing them in global communities. During the previous quarter, the Downtown Liaison worked with staff and the City Manager to amend City Code which covers impounded bicycles. The amendment will allow the Police Department and other City Staff to repurpose unclaimed bicycles for community outreach with disadvantaged youth and adults. "Free Wheels" is the name of a new outreach program developed, which provided 15 children with bicycles, as well as training in safety and maintenance, an introduction to City trails, and all of the necessary safety equipment. • Citizen Police Academy - All law enforcement agencies in Johnson County provide a structured curriculum to community members, one night per week for three months, giving valuable insight into all aspects of law enforcement policy, practice and training. • Safety Village - All Johnson County law enforcement and fire departments, the Iowa City Community School District, Mercy Hospital, Johnson County Ambulance Service, Joint Emergency Communications Center and several community businesses and individuals put on a two week summer camp designed to present safety topics to 45 children, ages 6 to 7, in addition to various events throughout the year. • The Department also continues to partner with entities such as The Dream Center, Broadway Neighborhood Center, DVIP, DMC, Diversity Roundtable and the Johnson County Attorney's Office. M Enhance community engagement & intergovernmental relations The FamQv Put#Meuhly i•in�ami�o�n�� ]ovg wvgwrltlngproSnq, �b�,�ur,•�M•.�m Iwp4atlon Iw priglnvl eovge. H•]pmx#•lhly pmlealy wanes Uy c#v*i^9' W w ew.ieat +o�nwroreearsc�c:emd retraetmeense Na e®fax Cenur. Prue 6 pppv rvtll. Cen`r Ff;,lk� s - _r.y , 'ti Sunday, September 25 Ed 3:00 P.M. sen4rc'en.a>a.iar� Icparvvg W, i•niNfvlkmdimvry O„ore� AGES The Center's AgeMore logo will continue in 2018. Page: 37 • The Iowa City Public Library partnered with the UI International Writing Program to host nine Friday International Author events. These programs provided an opportunity for the community to meet and converse with writers from around the world who were the 2017 Writers in Residence at the UI International Writing Program. All of these events were broadcast live on The Library Channel. ICPL hosted a series of programs with the UI Public Policy Center. Wonk Wednesdays — A Public Policy Project, is a series of monthly community focused events. Topics included Environmental, Health and Immigration Policy. Witching Hour The Library hosted free events for the Witching Hour Festival where one of the highest attended events was a panel discussion, "Invisible and Ignored: the Power of Centering the VOICES and EXPERIENCES of Women of Colorthrough Art, Written Expression, Film and Leadership. Party in the Park Efforts have been made to increase outreach of multiple City departments at summer Party in the Park events. Additional flyers and media releases have been used to encourage residents to attend. Wasn't That a Time? A song writing project led by The Center's intergenerational choir, the Family Folk Machine and Awful Purdies, funded in part by the Iowa Arts Council, involved writing songs based on stories collected from community members. The culmination of the project was a performance of the songs on the main stage at the Iowa Arts Festival in 2017. Challenging Age -Related Stereotypes The Center initiated the AgeMore marketing theme focusing on adaptability and the positive aspects of aging rather than age-related losses and media messages trying to persuade people to become "ageless" The AgeMore logo has appeared on all printed material and will be carried on through 2018. SAGE Table In 2017, The Center participated in a one day national event that invited LGBT people and allies of different generations to share a meal. It provided opportunities to have conversations, build connections, and strengthen community ties. M Enhance community engagement & intergovernmental relations Page: 38 ► Other Initiatives Fire Department Strategic Plan Following a year-long collaborative effort between internal and external stakeholders, the Iowa City Fire Department finalized its 2017-2021 Strategic Plan. The plan incorporates and supports the initiatives of the Council's Strategic Plan throughout its seven goal areas. Immediate priorities include enhancing overall health and wellness of personnel and fostering community outreach and agency partnership efforts. Iowa City Airport Outreach • Airport Strategic Plan — The Iowa City Airport Commission began the process of developing a five year strategic plan to help guide near future airport operations. This plan will provide near-term goals and objectives which will incorporate portions of the City Council Strategic Plan and the Airport Master Plan. Completion of the plan is expected later this fall. • A public survey was conducted online in June 2017 as part of the strategic plan process, and asked a variety of airport -related questions (views, knowledge, and perceived strengths/weaknesses) and received 575 responses. • Young Eagles airplane rides — The Airport partnered with the Experimental Aircraft Association (EAA) Chapter 33 to give aircraft rides to youth ages 8-17. This event is meant to give kids brief exposure to aviation and some of the possible activities and careers that can be associated with aviation. Nearly 80 rides were given over the course of two days, June 10 and 17, 2017. • The Sertoma Fly-In/Drive-In Pancake Breakfast took place Aug. 20, 2017 — This event raised money for the Sertoma organization and invited everyone to the airport to view aircraft, receive free hearing screenings, and enjoy a morning of activities hosted by a number of support groups. Wet Shelter The ICPD worked with the Local Homeless Coordinating Board to prevent homelessness in Johnson County. The wet shelter subcommittee has successfully implemented a third annual temporary shelter to provide an alternate housing option for the winter months, for individuals who are intoxicated or are otherwise M Enhance community engagement & intergovernmental relations aloeuu Officer David Schwindt accepts the award from Amazon for the Data - Driven Justice Initiative in June 2017. Page: 39 ineligible to receive housing at Shelter House. The Wet Shelter opened for the fourth time in early December 2017. Data -Driven Justice Initiative The Downtown Liaison was invited to represent the ICPD and participate in the White House's Data -Driven Justice Initiative. This is a coalition of city, county, and state governments who have committed to using data -driven strategies to divert low-level offenders with mental illness out of the criminal justice system and change approaches to pre-trial incarceration. The City recieved a $25,000 grant in cloud services from Amazon to be used toward this initative. Information about the DDJ program was presented to Council in August 2017. Further, the Laura and John Arnold Foundation funded Iowa City, as one of three awarded cities in the United States, to continue work on the region's data drivenjustice initiative for the next two years. Art in the Afternoon The Senior Center has a partnership with Artifactory to sponsor monthly programs called Art in the Afternoon. The Center provides a venue for local artists to present intergenerational programs featuring their work. In September, the program featured Latif Behroz, a peace volunteer who has done "art and grafiti for peace" and helped set "The Kindness Wall of Kabul;' which was featured in the New York Times. In October, the program featured cartoonist Robert Yale Richardson and his paintings and drawings in watercolors, pastels, and ink. November featured Aaron Stephens, who showcased his abstract drawing techniques. County/City Cooperation Staff removed parking meters adjacent to the Johnson County courthouse and reserved parking for courthouse business at the request of the Board of Supervisors to help alleviate courthouse space issues. In summer 2016, the City approved a code amendment to permit a well at the County Poor Farm to allow greater access to irrigation water for farming operations. The City of Iowa City and City of University Heights agreed to terms for the ICFD to provide fire protection services to University Heights, effective July 1, 2016. An open house was held at Fire Station No. 2 to commemorate the long sought after agreement. M Enhance community engagement & intergovernmental relations The Wellness Committee promotes many great projects for City staff. The annual leaf raking volunteer program and spearheading our United Way fundraiser are a couple of examples. Johnson Y County Unibed Way Page: 40 In February2016, ICFD entered into an agreementwith Johnson CountyAmbulance Service to share space during the construction of a new ambulance headquarters, and an ambulance remains after the grand opening of the new ambulance facility. The repositioning of an am bulance and crew at Fire Station No.4 has been of mutual benefit to both entities, as the location affords prom pt response to emergencies in the adjacent fire districts. City Staff Wellness Committee Initiatives Staff representing several departments throughoutthe Citytake part in fundraising events throughout the year, raising funds and awareness for various local non- profits including the United Way of Johnson and Washington Counties, the Crisis Center, and the Miracle Burn Camp of Iowa, as well as other social service initiatives. The 2017 Iowa City staff fundraising campaign smashed a goal of $60,000 and raised over $73,000 for organizations that directly support Eastern Iowa, Johnson County and Iowa City. Communications Initiatives The City's Communication Office has increased focus upon Strategic Plan items, incoporating heavy use of video productions and social media to promote and provide eduation on City initiatives, issues and programming. Communications created an ICPD Twitter account and have begun using Twitter as an avenue to push out news and safety information, and even to promote recruitment of new police officers. Relief of Library Fines & Summer Library Bus (new) To keep children reading in the summer, the Library waives fines and replacement fees for students in the summer to make sure their Library Account is in good standing. This summer, 655 primarily low-income children had fines and fees waived. The Summer Library Bus program provided 2,655 free rides. The program provides a free ride to the Library on any Iowa City Transit Bus for students up to age 18 and the adults accompanying them. Hand -painting Substation walls with day care children Day care children are invited to come to the Iowa City Police Substation and add their handprints to the walls, right alongside those of ICPD officers. M Enhance community engagement & intergovernmental relations The Police Department's Kids Day and National Night out are two events that build relationships between police and residents of all ages in Iowa City. Page: 41 National Night Out This program heightens crime and drug prevention awareness, generates support for and participation in neighborhood anti-crime programs, strengthens neighborhood spirit and police -community partnerships, sends a message to criminals letting them know that neighborhoods are organized and fighting back. Partners: Johnson County Neighborhood Centers, ICFD, Crime Stoppers, Target, Hy -Vee. Kids Day This eventwas held in City Park, once in Julyand once in August. City Police and Fire employees were joined by the University Police Department, the Johnson County Sheriff's Office and Johnson County Ambulance Service in giving free donuts and juice boxes to kids and adults who attended. The City received feedback that the participants loved seeing all the community helpers in the same location at once. Kids were able to move from place to place to visit each station. It is estimated that 280 people attended the July event. Evidence collection presentations at the Iowa Children's Museum Iowa City Police Crime Scene Technicians (CST) gave age appropriate demonstrations and hands on instruction on the collection of various types of evidence to the children in attendance. Promote environmental sustainability Iowa City Bicycle Master Plan Page: 42 Strategies to meet this goal: Raise Iowa City's "Bicycle -Friendly Community" status from silver to gold by 2017 and aspire toward a platinum status in the future ► Bike master plan The City hired Alta Planning & Design to complete the Bicycle Master Plan in 2016. The planning process took approximately 10 months, and the final Bicycle Plan was adopted by resolution on Aug. 1, 2017. The planning goals identified in the request for proposals included the articulation of a clear vision and achievable goals that address supportive policies and safety needs of all users, diverse public participation, strategies, performance measures, concepts and cost estimates, as well as a phased action plan for achieving Gold level status as a Bicycle Friendly Community. Alta formed both a Technical Advisory Com m ittee and a Bicycle Advisory Com m ittee to lead the process. The groups met six -to -eight times over the course of the project. Several public workshops drew hundreds of residents over the course of the year. The consultant provided an update to the Council in early summer and the final plan was presented in July 2017. An application to the Bicycle Friendly Community program maintained Silver status, but the City can reapply each year. Steps to implement the Bicycle Master Plan should boost chances at gaining Gold or Platinum status in the future. Additionally, the project scope with Alta Planning & Design was amended at request of Council to complete a study of Gilbert Street from Market Street to McCollister Boulevard. Alta is working on concepts for the corridor design and information should be submitted by the firm in the near future. Results from that study are expected in fall 2017. ► Supported the 2016 bike boulevard demonstration Graduate students from the University of Iowa College of Public Health demonstrated a bike boulevard, a low speed and low volume street that optimizes bicycling conditions to create safer, more sustainable, and beautiful community streetscapes. Promote environmental sustainability The bike parklet is located on the corner of Dubuque and Washington streets. New bike amenities installed on the corner of Clinton and College streets. Page: 43 It creates more defined bike lanes and controls traffic flow to build a network of comfortable and safe streets for everyone. The City provided financial and logistical support, and acted as the fiscal agent for a grant received by the event's organizers. Approximately 140-160 bicyclists rode the route on College Street from City High to the Saturday morning Farmers Market. Participants also received informational materials and bike checks from World of Bikes, and giveaways funded with a grant from People for Bikes. ► Bicycle Sharing Program A bicycle sharing project is in development as a joint project between the City and University of Iowa and included partial funding from the Iowa Department of Transportation. New technology and program options have led the City and University to reevaluate opportunities. As a result, a new project with little -to -no upfront cost is being pursued. ► Bike parklet A bike parklet was fabricated and installed near the corner of Dubuque and Washington streets in 2016. The design was selected through a request for proposals issued as a partnership between the Downtown District and Think Bicycles of Johnson County. The following goals were stated in the RFP: • Add a unique and imaginative on -street structure that enhances and activates the aesthetic of the street corner. • Create additional safe and convenient bike parking Downtown. • Provide an impactful visual cue of the community's ongoing commitment to bicycle usage and alternative modes of transportation. ► Bike amenities New bike racks were installed along the 100 and 200 blocks of Washington Street during the reconstruction project. Three additional stations that include four racks, a fix -it station, and a pump were installed outside the Iowa City Public Library, the corner of College and Clinton streets, and inside the Clinton Street entrance to the Capitol Street Parking Ramp. Promote environmental sustainability with the Mayor. Iowa City was selected again in 2017 to host the Cyclo - Cross World Cup. Page: 44 ► Bike Month Support Council members and City staff participated in and provided logistical support for several events, including the Family Ride with Mayor Throgmorton and the New Pioneer Co-op to Co-op Ride. The City provided a $1,500 sponsorship for the events. Mayor Throgmorton also issued a proclamation supporting Bike Month. Bicycle education programs in 2017 were expanded significantly from one week to a full month of activities in May, providing a wide range of events and education sessions available to residents. Activities were programmed in coordination with community and regional agencies. ► Jingle Cross In 2016, Iowa City hosted Jingle Cross, a Telenet Union Cycliste Internationale (UCI) Cyclo -Cross World Cup at the Johnson County Fairgrounds. While Jingle Cross has been a well-known cycling race for years, the World Cup event put Iowa City again on the international stage. The City contributed $20,000 to support the event last year and in early 2017, Jingle Cross was selected again to kick off the Cyclo -Cross World Cup tournament in September 2017. ► Bill Nesper presentations Bill Nesper, Program Director for the Bicycle -Friendly America for the League of American Bicyclists, gave two presentations in spring 2016: 'Becoming a Bicycle - Friendly Business" and "Bicycle -Friendly Communities. "The talks were co-sponsored by the cities of Iowa City, Coralville, and North Liberty; Johnson County; University of Iowa Office of Sustainability; Iowa City Area Development Group; the Convention and Visitors Bureau; Chamber of Commerce, and other local organizations. The events were held at the MERGE facility in the Iowa City Public Library building. ► Trail, street, and sidewalk improvements Several upcoming capital improvements that support being a bike -friendly community are planned, including the Highway 1 trail extension, Riverside Drive pedestrian tunnel, and road diets on Mormon Trek Boulevard, First Avenue, and Sycamore Street. • The Riverside Drive Pedestrian Tunnel is currently being designed. This project will include a multi -use path along the west side of Riverside Drive from Benton to Myrtle streets, a tunnel through the Iowa Interstate Railroad embankment Promote environmental sustainability League of American Bicyclists n`4WIT"Bill Nesper Pra�•m Oimctor for Rioyrlo Friendly Am 6 n Monday MAY 9th, 2016 Z'rr) At MERGE (Old Wedge Spaces rye T M.�ow, om men'�ty mo.e ai,l.fd..d tp � a p rde f' dl iBmyrtu�d.!''•bgenmlPuWa r Beginning biking classes were offered to reintroduce older adults, as well as others, to the fun and benefits of bicycling. Po ge: 45 and a traffic signal at Myrtle Drive. The project will also install street trees and is planned to be bid in fall 2017 with construction in fall 2017 and spring 2018. • The First Avenue four -lane to three -lane conversion project was completed in summer 2017. The project constructed a conversion from Highway 6 to Mall Drive and ties into the First Avenue Grade Separation Project. • The Mormon Trek Four Lane to Three Lane Conversion Project is currently in the design phase. The project is planned to be bid in fall 2017 with construction in fall 2017 and spring 2018. • There are two sidewalk/trail extensions at City facilities. A sidewalk/trail extension is substantially complete at the Parks Maintenance Facility on South Gilbert Street and a sidewalk/trail extension, currently in the design phase, is planned for construction at the Iowa City Water Treatment Facility on Stephen Atkins Drive in spring 2018. ► Bike Lessons The Senior Center partnered with the Bike Library and Bicyclists of Iowa City to offer a multi -session beginning biking class intended to reintroduce older adults, or anyone who had not been on a bike for a while, to the fun and benefits of bicycling. ► Downtown traffic model City Council reviewed and directed staff to pursue road diets on Clinton and Madison streets in Downtown Iowa City. ► RAGBRAI The City intends to submit a bid to be an overnight host city for the 2018 RAGBRAI event. ► BIKE SHORTS Communications has partnered with the Police Department, MPOJC, and area bicycle advocates to prepare short educational videos for bike riders and drivers. The pieces focus on safe riding and tips for sharing the road. Promote environmental sustainability AmeriCorps staff assisted the City with auditing all City - owned housing units for energy efficiency. The Farmers Market provided a limited number of free, reusable shopping bags for the 2017 market after no longer allowing vendors to provide plastic bags. Page: 46 Evaluate and consider implementation of a plastic bag policy ► Plastic Bag Ban State legislation removed the City's ability to regulate most plastic bag use. The Citywill move forward with regulation when permitted. For example, the Iowa City Farmers Market did not allow vendors to provide plastic bags at the 2017 market. Undertake a project in FY2017 that achieves a significant measurable carbon emission reduction ► AmeriCorps partnership Audits have been completed in all City -owned targeted housing units. Insulation has been installed in 31 units where it was found to be substandard and rebates were awarded from MidAmerican for 12 of those units. An additional 22 units will have insulation installed after summer weather passes, and we anticipate qualifying for rebates for 11 of those units. New windows have been installed in one unitwhile four other units are scheduled to have their windows and doors replaced by early spring 2018, with replacement cost of approximately $30,000. ► Energy Efficiency grants The City awarded three grants totaling $9,068 for energy efficient lighting projects at non -profits: Mayors Youth Empowerment Program, Little Creations Daycare, and the Free Medical Clinic. The City's grant funds were matched with $12,850 in rebates from MidAmerican Energy. Each year, these three non -profits will save $1,20042,600 in electricity expenses. ► Climate Action Grant A new grant opportunitywas posted in July 2017, designed to support partnerships between community-based groups. The City Council approved $25,000 for projects that address and enhance local climate action through innovative work, aligning with the City's Climate Action and Adaptation Plan, which is in progress. Applications will be accepted online through March 2018. Three applications have been received from partnered community groups. Awards are anticipated before the end of the year and approximately half of the total allocation for this program is left to award through spring 2018. Promote environmental sustainability IOWA CITY is a4 -STAR Community � A 2016I IM '.,�, — P.ury Cm�mnces can a.e.ynm. `—' _ omc.me ..e acuee rc�mx ®� 51% 48% 9 7- E.swelnp E.p.RMlora—Na.dlmgar.m.rvl--- x^ S9nepneea.r �.rm�iu. m.rmWMrMi '� R �.nuF WWY�btlier..p W Page: 47 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 ► In December 2016, Council approved a resolution setting a community -wide greenhouse gas reduction goal of 25-28% for the year 2025, and 80% by 2050. At the time of the commitment, this was the target the U.S. had committed to in the Paris Agreement. After the U.S. pulled out of the agreement this year, numerous cities across the country chose to uphold the commitment and targets. ► In December 2017, along with over 60 other mayors, Mayor Throgmorton signed the Chicago Climate Charter specifically identifying our emissions reduction goals.' ► In January 2017, Council approved a resolution creating the Climate Action Steering Committee. Five of the members serve at -large and were selected by Council. The Committee is tasked with assisting the consultant selected to develop the City's first Climate Action and Adaptation Plan, which will address emissions reduction and STAR community sustainability goals. To -date, five Steering Committee meetings have been held. A public engagement meeting was held at the Iowa City Public Library on Nov. 2, 2017 with approximately 100 attendees. Collaborate with community partners on sustainability efforts ► STAR Community Rating The City of Iowa City was awarded a 4 -STAR Community Rating for sustainability excellence in March 2016 by being formally certified in the STAR Community Rating SystemT"' (STAR). The City's approved final score is 484.8, the highest -scored city in the state. Iowa City is the fifth community in Iowa and 47th nationwide to achieve certification from STAR, a nonprofit organization that certifies sustainable communities. Other Iowa STAR communities are Charles City, Dubuque, Davenport and Des Moines. Promote environmental sustainability Page: 48 Information and data were gathered for the application throughout 2015 with the assistance of dozens of City staff members, community partners, state agencies, local and regional governments, and private sector employers. STAR Workshop A STAR workshop was held for staff and facilitated by STAR in July 2016. During the workshop, staff identified doable actions to improve sustainability. Staff is working to complete the actions in this plan and has made significant progress, particularly in the area of Climate and Energy. Leading STAR Community Indicators A subset of 21 STAR metrics is posted annually on the STARwebsite to demonstrate Iowa City's progress in key sustainability metrics. In June 2017, the second year of data was posted, and can be compared with other communities. These 21 metrics are also now included as metrics in the City's budget document. ► Electric vehicle charging stations An electric vehicle (EV) charging station project is currently being finalized. This is a joint project between the Cityand the University of Iowa to install EV stations in their parking spaces. The Harrison Street Parking Facility currently has two EV stations on the ground level. This project will expand the City's current station network. ► Local food partnerships Some examples of local food partnerships were completed to help promote environmental sustainability include: Edible Classroom The City partnered with Backyard Abundance, the State of Iowa Department of Agriculture, and others on the Edible Classroom project, which provides an educational component for several classes offered by the Recreation Division. Double Up Food Bucks The City, Johnson County, Iowa's Healthiest State Initiative, and the federal Supplemental Nutrition Assistance Program (SNAP) have partnered to enable low- income families to double the value of their SNAP dollars when purchasing Iowa - grown fruits and vegetables at the Farmers Market. Promote environmental sustainability More than 200 people attended the inaugural Iowa City Farm to Street Dinner on Linn Street in late August 2016. The City rolled out its curbside composting program in spring 2017. Page: 49 Farm to Street Dinner In 2016 and 2017, local food producers, restaurants and community members came together to support local foods and food initiatives over a community meal that raises money for local food efforts. Environmental Education and Support for Senior Population The Senior Center has established partnerships with community groups, such as the Bur Oak Land Trust, Green Iowa AmeriCorps, and 100 Grannies, to offer program m ing that raise awareness and provides education related to environmental sustainability. Witching Hour Festival The ICPL hosted a Witching Hour Festival presentation, "Honey and Mass Extinction: What every Iowan should know about the state's bee population.' Other initiatives ► Waste minimization strategies Processes for multi -family building recycling, food waste processing, and an electronic waste ban were presented to Council in fall 2016 and implemented between fall 2016 and Jan. 1, 2018. • Recycling services are now required for new multi-fam ily developments. Existing multi -family units will be required to be in compliance at the point of the next rental permit renewal, in roughly two years. • Curbside food waste collection began in 2017. Accepted food waste materials will be collected as a part of the yard waste collection process. • Electronic waste consisting of TVs and computer monitors was banned from being landfilled in fall 2016. These materials are still accepted for processing, but can not be disposed of in the landfill. • Processes for single stream recycling and a corrugated cardboard ban were presented to Council in spring 2017. Proposed fees for these services were included in the FY18 budget. Single stream recycling began Dec. 4, 2017, and the ban on corrugated cardboard at the landfill is effective Jan. 1, 2018. Promote environmental sustainability Sustainable Iowa City from the City of lows CitY n Web Pate. Ne�+s about sustainobiluty yt,oUele vlewmg th"emallzv August 20161 Visit us online at www ,OgoM^orglsustainabili=Y Pollinator ga lr end pend p anted at Flr �� taIle Plan ;e, In Jub. near p to led al20N C me maceu In mad. Milkweed STAR sustainability worKs AST AR suc�anabl0ty AS o wrlvsbop held ^the Eact gide _ e�1m an JU1y to aeve�L"a mr me ratan=� �-�._»ondeeean to unoeie�-1��nom�. ac �.. myaleY Ln -STAR communttY ,y. cheer omme city onowa F repad Fere. Page: 50 The 2016 Iowa City Monarch Festival was a big success. • Hauling services in Downtown Iowa City are now provided by one vendor for dumpsterswithinthe City right-of-way. This changewillalso offeranenhancement of services, like additional recycling, daily pick-ups and composting option. ► Online forms for improved customer service The City is working to increase efficiency and ease for community members completing applications and permit forms. The Clerk's Office and Communications are identifying and updating forms to be submitted conveniently online. ► Local monarch conservation efforts The wintering monarch population in Mexico has decreased more than 90%, which is thought to be due to habitat loss, pesticide use, and climate change. Iowa City is committed to creating an environment that allows monarchs to thrive and rehabilitate during the summer months. Initiatives include milkweed distribution, monarch waystations in several parks, local education and research activities, as well as signing the National Wildlife Federation's Mayors' Monarch Pledge. Iowa City Monarch Festival The Iowa City Monarch Festival was held at the Eastside Recycling Center and included several kids' activities, such as a Monarch scavenger hunt, a chrysalis giveaway, and information on raising caterpillars. The event was free and open to the public and was held again for an even larger crowd in September 2017. ► Sustainability newsletter and social media presence The "Sustainable Iowa City" newsletter continues to provide information to the public on a wide variety of sustainability topics, from social justice initiatives to energy-related programming. It is intended to broaden awareness of the City's initiatives and extend the opportunity for public engagement. ► Covenant of Mayors In February 2016, Mayor Throgmorton signed on to the Covenant of Mayors, formerly Compact of Mayors, the world's largest cooperative effort among mayors and city leaders to reduce greenhouse gas emissions. It was launched at the 2014 United Nations Climate Sum m it. The Covenant of Mayors has both climate mitigation and adaptation compliance requirements, which are to be completed within three years. The City has seta reduction target and recently conducted a community -wide Promote environmental sustainability hnventary Update PIT 11 111, 111 fll� II— I cty Page: 51 greenhouse gas inventory, both which are requirements outlined by the Covenant. Upcoming requirements include completing a climate vulnerability assessment, and completing a community -wide action plan and a climate adaptation plan, which should be finalized by May 2018. By the end of 2017, draft strategies have been selected, based on feedback from the Steering Committee, November Community Engagement meeting, and stakeholder interviews. ► Greenhouse Gas Inventories The community greenhouse gas inventory is complete. The community inventory is a requirement of the Compact of Mayors and provides data to evaluate progress as emission reduction initiatives are completed. This summer, staff assembled a municipal greenhouse gas inventory to aid in the development of the Climate Action and Adaptation Plan, as well as assess the current use of resources and address sources of City -created carbon emissions. The final municipal report was shared with the public and Council in August. ► EcoCity Footprint Tool Iowa City is the first U.S. municipality to participate in the EcoCity pilot program. The EcoCity Footprint Tool is designed to analyze community -wide emissions and consumption data. The City received a grant valued at $26,000 to be able to participate. Information gained will assist in the development of the Climate Action and Adaptation Plan. Our EcoCity partners presented the data in fall 2017 and are finalizing a report for the City. Based upon the results, staff is working on a variety of ways to address over consumption of resources, including the development of an awareness campaign around food, reduction of landfilled textiles, and coordination of a neighborhood footprint reduction challenge. If grant assistance is available from outside agencies, the City will pursue these opportunities. ► Emerald Ash Borer public events In 2016, two public events were held in partnership with the Iowa State University Extension, Iowa Department of Agriculture, and Iowa Department of Natural Resources to educate the public and green industry professionals on Emerald Ash Borer identification and responses. Promote environmental sustainability Big Bellies, the solar -powered trash and recycling compactors, have been extremely popular in downtown Iowa City. Willowwind students partner with the City of Iowa City to recognize Arbor Day by planting a tree provided by Parks and Recreation. Page: 52 ► Big Bellies Solar -powered trash and recycling compactors have been installed in Downtown Iowa City. Evaluation of the initial units has been positive, with low contamination rates of recyclable materials. The manufacturer of Big Bellies has changed the model from the option to own to rental equipment, significantly altering the cost- effectiveness of this product. Staff will continue to identify opportunities to install more when and where feasible. ► Craft Your Environment Fair The Craft your Environment Fair was held at Eastside Recycling Center. Dozens of artists showed how recycled goods can be used to create art, home decor, and other projects, keeping it out of the landfill. The fair was held in partnership with Friends of Historic Preservation, Salvage Barn, and Iowa Valley Habitatfor Humanity ReSto re. ► Million Gallon Challenge Parks and Recreation staff held a "Million Gallon Challenge" in 2016 to conserve 1 million gallons of water. Between April 12 and Sept. 1, the mix of cooperative weather, a three-minute reduction in irrigation cycles, removing some areas from irrigation plans, installing rain sensor irrigation equipment, and efficiently monitoring systems, resulted in a savings of 1,425,654 gallons of water — 820,530 treated and 605,124 effluent. ► Green Business recognition A recognition program for sustainable and "green" Iowa City businesses is currently being developed by staff in collaboration with the University of Iowa. Staff plans to rollout the program in spring, in conjunction with the sustainability themed semester. ► Sustainability themed semester Staff is representing the City at the University of Iowa's theme semester planning meetings. The UI will be focusing on sustainability, especially climate related issues, during spring 2018. The City will partner with the UI by hosting tours, recognizing sustainable businesses and collaborating on other projects throughout the semester. Promote environmental sustainability Replacing the boiler and HVAC at Mercer Aquatic Center will result in improved water and energy efficiencies. Page: 53 ► Arbor Day partnership In 2016, Willowwind School students planted a Skyline Locust tree provided by Parks and Forestry staff after a presentation and reading of the Arbor Day proclamation. ► Facilities improvements Solar Projects As instructed by City Council, staff is pursuing analysis of ground or rooftop solar projects on one or more City properties. A request for proposals was made for analysis and design. A consultant has been selected from nine respondents and should begin analysis of several City facilities before the end of 2017. HVAC Study A consultant has been selected for an HVAC study and Building Automation Systems (BAS) Design Project for three City facilities, including City Hall, Robert A. Lee Recreation Center and Mercer Aquatic Center. The project involves cataloging all HVAC equipment in the three facilities and recommendations for systematic replacement and repair, in regard to building and energy efficiencies. The contract allows for design and bid out of the BAS for all three facilities, allowing for enhanced control and monitoring of the HVAC systems. The project will be bid this summer and installed in phases through summer 2018. Boiler and HVAC Replacement at Mercer Aquatic Center Council approved funding in February for replacement of boiler and HVAC systems at Mercer Aquatic Center. These systems are original to the facility and have been operating since installation in 1988. A consultant has been selected and design work is in progress. Greater efficiencies in water and energy use will be gained by a replacement of these systems. Due to significant potential energy savings, a rebate incentive may help fund this replacement. Energy Improvements at Terry Trueblood Recreation Area In November 2016, the City removed the propane gas tank at the H2O Building at Terry Trueblood Recreation Area and installed a natural gas line. This is a safer, more cost effective and efficient energy supply for the facility. Promote environmental sustainability Digital Control Installation at Recreation Center and Mercer Digital regulating valves and an improved sensor were installed for the Robert A. Lee Recreation Center and Mercer Aquatic Center pools. Digital controls will more efficiently release and regulate heat for the pool water. This project was completed at RALRC in October 2016 and in January 2017 at Mercer Aquatic Center. Boiler Replacement at Robert A. Lee Recreation Center The Robert A. Lee Recreation Center boiler replacement project involved replacing the heating system with high efficiency boilers and installing high efficiency water heaters. Annual cost savings projected is $6,293. A $30,396 rebate from MidAmerican was received, along with a bonus incentive of $6,293 from the Commercial Energy Solution program. Tracking energy use in City facilities Staff tracked the City's more than 300 natural gas and electricity accounts. This data is used to monitor efficiencies and use, as well as to calculate municipal greenhouse gas emissions. Tree planting projects The City is planning three additional tree planting projects on Lower West Branch Road, Camp Cardinal Boulevard, and in various neighborhood infill locations in fall 2017/spring 2018. Page: 54 M Advance social justice and racial equity Strategies to meet this goal: Develop and implement a racial/socioeconomic equity impact review toolkit ► Staff has initiated a review process for City procedures, policies, programs, and services using a new pilot equity racial/socioeconomic equity toolkit. Participating departments in the first review are Police, Transit, Human Resources, Human Rights, Finance, and Neighborhood and Development Services. The pilot ended in August 2017 and Council was updated on the outcomes in a fall 2017 re po rt. Support the Housing First initiative and other local homeless efforts, including the temporary winter shelter ► Council supported the Housing First/FUSE initiative, including financial support of $275,000 and adopting the necessary zoning code amendments. The project will construct a facility that provides low -barrier housing for chronically homeless individuals. The zoning code amendments were adopted on July 5, 2016. The City's contribution to the Housing Trust Fund of Johnson County aided the Shelter House's local share costs for the $2.7 million grant awarded by the Iowa Finance Authority. Consider creating a Council committee with a focus on social justice and racial equity ► Council considered this action at the April 5, 2016, work session and decided not to move forward with the committee as proposed. Consideration of creating an ad-hoc committee on socialjustice and racial equity was removed from Council's pending work session topic list due to a significant number of socialjustice and racial equity projects currently in progress. Evaluate initiatives to effectively engage the community's youth ► Sports programs Parks and Recreation staff created a program that ran for eight weeks in the spring 2016 to teach basic American sport skills. It was open to any youth who wished to attend, but was specifically marketed to members of the Sudanese community through community leadership. Seventy-seven youth participated. A similar program started in June 2016 that focused on basic swimming skills. The goal of these programs is to help provide comfort levels with sports so that all children feel comfortable participating in existing sport association programs. Page: 55 Advance social justice and racial equity Police officers play area teens in a game of basketball as part of the Teen Dynamics Summer Program. ..dt �„ `00 o Ensuring the Arts for ANY Page: 56 CHILD ► Civil rights tour sponsorships The City provided sponsorships for two youth to participate in the "Civil Rights and Historically Black Colleges and Universities Tour" conducted by KoNec. ► Teen Dynamics Summer Program The Teen Dynamics Summer Program was introduced to provide teens with opportunities for positive interaction, education, relationship building, and activities during summer break. The program was held Monday through Friday from 3 to 7:30 p.m. at the Robert A. Lee Recreation Center. The program ran from June 5 through Aug. 11, 2017. ► Not a Box program In 2016 and 2017, the Iowa City Public Library, along with other community organizations, started the "Not a Box" parties for the summer months. These are familyevents planned for late Saturday afternoons at parks located in neighborhoods designated as being low -to -moderate income. The program is focused on children ages 3-8. Not a Box, a book by Antoinette Portis, is a story about imagination and creativity in which a young rabbit's imagination frees him from the constraints that he has just a box. ► Any Given Child program In 2016, The Any Given Child arts program hired a program coordinator. This is a program of the John F. Kennedy Center for the Performing Arts which assists communities in providing equitable arts education for all students in grades K-8, regardless of socioeconomic status. Support for the program that assists the Iowa City Community School District is provided by the cities of Iowa City, Coralville, and North Liberty, Hancher Auditorium, US Bank, and M.C. Ginsberg. ► G! World program In 2016, the Iowa City Police Department visited with members of "G! World" at South East Junior High. The officers were invited to answer questions and provide feedback to the group of seventh and eighth grade female students. "G! World" is an award winning mentoring program aimed at empowering girls of color ages 12-18. Advance social justice and racial equity The ICPD sponsored a day of RAGBRAI for teen cyclists. Page: 57 ► Holiday Story time In 2016 and 2017, the Iowa City Public Library presented a Holiday Story time ahead of Santa's arrival at a local homeless shelter and collected books to donate to the Iowa City Homeless Children's Trust Fund. ► YES! Program In 2016 and 2017, the City Manager, Mayor Pro -Tem, Parks and Recreation, Library, Office of Equity and Human Rights and Neighborhood Services staff hosted 30 youth enrolled in the "YES! Program;' or Youth Empowered to Serve. The program, administered through Johnson County Social Services, provides kids ages 14-17 with the opportunity to develop job skills, build positive community connections and prepare for a productive adulthood. ► Safety Village All Johnson County law enforcement and fire departments, the Iowa City Community School District, Mercy Hospital, Johnson County Ambulance Service, Joint Emergency Communications Center and several community businesses and individuals put on a two week summer camp designed to present safety topics to 45 children, ages 6-7, in addition to various events throughout the year. ► RAGBRAI In 2017, the Police Department worked with community organizations to take a group of high school age kids on a day of RAGBRAI. They camped out during the outing and interacted with other cyclists and police officers while learning about this lifelong recreational and fitness activity. Identify and implement an achievable goal to reduce disproportionality in arrests ► Traffic stop study The Police Department invited Dr. Chris Barnum to present his disproportionate minority contact (DMC) study to all Police Department staff; both sworn officers and civilian personnel, to provide a full understanding of what the results of the study mean and how to properly define, document and submit data. Additionally, Sarah Advance social justice and racial equity Bruch, Assistant Professor and Director of the Social and Education Policy Research Program at the University of Iowa, presented to the Department on the impact of police/community interactions, and more specifically on the negative effects that police interaction have on minority communities. The training is provided to dispel the crime/race association and reiterate our expectation that we deploy resources based on crime trends and not solely by neighborhoods or specific populations within our community. The training took place in late July 2017. Community Discussion on Criminal Justice Reform City staff from Police and Equity and Human Rights participated in "Building a Foundation for Criminal Justice Reform in Iowa:' The community discussion focused on criminaljustice reform at the local level through individual, organizational, and community action. GARE Support The City was a lead sponsor in a conference held in April called, 'Advancing Racial Equity: The Role of Government - Iowa:' The Government Alliance on Race and Equity (CARE) presented the day -long conference, which was open to City employees and the public. The conference was designed to deepen the understanding of racial equity and to teach participants to apply this learning to their work and lives. Racial Equity Report The 2017 Racial Equity Report was published in November 2017. The annual report is a way for the City to measure its progress as it relates to improvements for communities of color. The report, published since 2014, provides the yearly racial demographics for police charges againstyouth and adults, the racial demographics of City staff, and the racial demographics of people serving on City Boards and Commissions. Iowa City Law Enforcement Non -Discrimination Policy The Council passed a resolution at its formal meeting reaffirming the City of Iowa City Law Enforcement Non -Discrimination Policy. The resolution reaffirms a similar resolution passed in 2001. Create a social justice and racial equity grant program ► Social Justice and Racial Equity Grant A socialjustice and racial equity grant was created and made available for Iowa City organizations to apply for funding. In March 2017, the Human Rights Commission recommended that five local organizations be funded for fiscal year 2017. The Council approved the grant allocations at its meeting on March 21, 2017. The grant re -opened for a second round of applications in December 2017. Page: 58 Advance social justice and racial equity The free Emergency Services Summer Youth Camps were well attended in 2017. Page: 59 Develop a partnership with the University of Iowa and other key stakeholders that will aid efforts to recruit and retain a greater minority workforce ► Higher Education Recruitment Consortium (HERC) The City joined the Central Midwest Higher Education Recruitment Consortium in the fall of 2016 and recently updated its membership for 2017. The Consortium is administered through the University of Iowa. Assistant Provost for Faculty at the University Diane Finnerty is the interim Director for the Central Midwest HERC. Other members include Kirkwood Community College, University of Iowa, Coe College, Mount Mercy, Grinnell, and ICAD. ► Workplace Revolution sponsorship The City co-sponsored Workplace Revolution held at the Double Tree Hotel in downtown Cedar Rapids. The day -long event was designed to assist in retention, recruitment and employee engagement. Topics included investing in workplace culture. Other sponsors were Diversity Focus, the Iowa City Area Development Group and Kirkwood Community College. ► Emergency Services Summer Youth Camps Youth camps for students interested in public service careers were held during the summer as a partnership between the Iowa City Fire Department, Police and Johnson County Ambulance Service. The camps were free to students and lunch was provided. ► Community meeting City staff attended a meeting to discuss next steps for diversity and inclusion in the corridor in light of Diversity Focus ceasing operations after 11 years. The meeting was organized by Cedar Rapids Mayor Ron Corbett. Other participants included General Mills, ACT, University of Iowa, Rockwell Collins and the City of Cedar Rapids. The event was held at the Kirkwood Center for Lifelong Learning campus in Cedar Rapids. Advance social justice and racial equity Identify a substantive and achievable goal for the provision of affordable housing in Iowa City and implement strategies to achieve this goal ► Affordable Housing Action Plan At the June 21, 2016, work session, staff presented a summary of new and existing strategies for the provision of affordable housing, potential funding sources, and recommendations for future action. The Housing and Community Development Commission, Affordable Housing Coalition, and the general public provided feedback on the recommendations in the Action Plan. Council held aworksession on Septem ber20, 2016, to consider public inputand give staff direction on the Action Plan recommendations. Significant progress has been made on the action items in the plan and work will continue into 2018. ► Diamond Senior Apartments The City Council approved City funding of $600,000 for the $7.4 m illion LIHTC project that will construct 36 affordable units for seniors and four market rate units. The City also supported their application for IEDA Workforce Housing Tax Credits. This project meets a strong need for affordable senior housing, and is located in a neighborhood with access to services. The former building has been demolished and construction is underway. ► Affordable Housing Conference Citystaff from Neighborhood and Development Services, the Police Departmentand the City Manager's Officeattended the Affordable Housing Conference sponsored by the Johnson County Affordable Homes Coalition. The event included several sessions with differing topics, but the overall takeaway was that affordable housing is an engine of equity and growth. Other initiatives and events ► Human Rights Ordinance The Fair Housing Ordinance was amended to include Housing Choice Vouchers and other rental subsidies to the definition of Public Assistance Source of Income. The Human Rights Commission's Fair Housing Law brochures were updated to inform the public of this change and were produced in multiple languages. ► Black History Month community events Several community events to celebrate and educate during Black History Month were programmed through a collaborative effort of Neighborhood Centers of Johnson County, Black Voices Project, Dream Center, Iowa City Human Rights Commission, Iowa City Police Page: 60 Advance social justice and racial equity INVEST HEALTH Strategies for Healthier Cities IOWA CITY 2017 w, o, ananow, XousiauJ aXem M1eabM1. Cennenaons lmprgving Melndggr Cpnnmbg negbbprs aM quallry re rM.Me ebmugX wa0.ing Initiatives aarhmaaymp�ma mrgugn In Iwme aseRma Mu[a[bnaM ryynlpea Amaynrys home repairs. bygm ImppNei^glM1e enpyy eMn inFlw emX can elhc ryofpgblic are FnM1eMnmmp rcdpc^ w bcorer n•e Creating publicplvete am pays antl alb [areYannnNlps Mluringdc[ep261e maa eH ie.elsmab inmorauon. m quallry. aNerdable cM1IH rare. NMV611.X Fm MTstlO Xpplry lik fl Mer Enablingbikebtlershlp F�Mgg M65le far lunigrhlgh yslcai arM mental .neemamova llrye5[ mbmgsewim XMabM1 nXghbamooa,, m•onhmental iunera Page: 61 Department Community Outreach, United Action for Youth, City High - G!world, New Creations International Church, and Johnson County Social Services. The Library also presented Black History Month programs and displays. ► Leading the Inclusive City Leading the Inclusive City program featuring Professor Robin Hambleton of the University of the West of England was held at the Iowa City Public Library. The event was sponsored by the cities of Iowa City, Coralville, and North Liberty, Johnson County, the University of Iowa School of Urban and Regional Planning, and the University of Iowa Public Policy Center. ► Review of City job requirements In an effort to expand the applicant pools for City employment, departments have reviewed minimum education requirements to ensure that they are truly needed for the position, or if reasonable skills and work experience can be substituted. ► Kingdom Center visit Council members and staff were invited to a luncheon at the Kingdom Center. Participants toured the facilities, learned about programming and partner organizations including the Dream Center, and had a robust discussion of building bridges to have meaningful conversations on difficult topics, de-escalation training, and the Crisis Intervention Team concept. ► Invest Health program Iowa City was chosen to participate in the "Invest Health" program, a collaboration between the Robert Wood Johnson Foundation and Reinvestment Fund to support new strategies to improve neighborhoods facing the biggest barriers to better health. Iowa City was chosen from a very competitive field. Safe, decent, affordable housing is a strong focus of the program. Iowa City's team is a partnership between the City, University of Iowa Colleges of Medicine and Public Health, and the Housing Fellowship. At their last convening, held the week of Dec. 4, 2017, the City presented childcare system enhancements as well as a proposal for an Arthur St. Health Center, targeted to those with chronic mental illness. It is possible that presented projects may be awarded additional funding. Advance social justice and racial equity The Iowa City Police Department takes part in "Serving Up the Community BBQ" City staff participated in "LGBTQ Safe Zone and Leadership for Equity and Inclusion training" through the University of Iowa. Page: 62 ► Great Stories Club The "Great Stories Club;' a collaboration between Tate High School and the Iowa City Public Library, is sponsored through a grant from the American Library Association. The Great Stories Club gives under served youth facing significant challenges the opportunity to read, reflect, and share ideas on topics that resonate with them. Last year's theme was, "The Art of Change: Creation, Growth and Transformation.' Seventy-five sites are in this year's program, including two in Iowa City. Most recently, the group read and discussed The Hate U Give by Angie Thomas. ► Hiring and employing non -US citizens The Office of Equity and Human Rights collaborated with the University of Iowa Legal Clinic to sponsor a training for employers on the hiring and employment of non -US citizens. Participants included City staff. ► Community BBQ City Departments including Parks and Recreation and the Office of Equity and Human Rights were sponsors in "Serving Up the Community BBQ" presented by the Black Voices Project. Other sponsors included Field to Family, Center for Worker Justice and Backyard Abundance. ► LGBTQ Safe Zone Staff from many City departments attended "LGBTQ Safe Zone" and "Leadership for Equity and Inclusion" trainings from the University of Iowa's Diversity Office and National Coalition Building Institute in spring 2017. ► Lunch and learn events A series of "Lunch and Learn" events have been held for current City Board and Commission Members. The "Conversations on Diversity" were facilitated by Professor Katrina Sanders of the University of Iowa College of Education. ► Mobile hotspots The Iowa City Public Library began lending mobile hotspots in February 2017. The devices allow users without internet access to connect to the internet anywhere on any wireless -enabled device such as a laptop, tablet, or smartphone. Advance social justice and racial equity Hate Crimes CITY OF IOWA CITY HUMAN RIGHTS COMMISSION 410 E. Washington St. Iowa City, IA 52240 my .icgov.org/humanrighis 356-5022 or 356-5015 humane ghis®iowa-city.org EQUAL OPPORTUNITY AND NON. DISCRIMINATION IS THE LAW AND YOUR RIGHT If you believe you have been discriminated against, or you want more information on types of prohibited discrimination, please contact the Human Rights Coordinator at 356-5022 or the Human Rights Investigator at 3564015. E2016 Po ge: 63 ► Resume assistance In December 2016, the Iowa City Public Library held four sessions with Iowa Workforce Development to assist displaced IAD workers to create a resume to use in upcoming job searches. ► City sponsored job fair The City held a Job Fair in September at the Robert A. Lee Recreation Center to showcase opportunities for work at the City and many local employers. ► Diversity awareness The Iowa City Public Library has had displays sharing the winning entries of the Human Rights Commission's Youth Essay and Art Contest Juneteenth Contest Winners. A display for Soul Fest highlighted literary, musical and film works by African Americans, and one titled, Race in America intended to raise awareness of racial issues in the U.S. Other displays shared titles with LGBT characters and themes, celebrated National Hispanic Heritage Month, Transgender Awareness Month, Native American Heritage Month."Also, in August 2017, the Library held a drag show event for teens that created a safe space for teens curious about drag. ► Eliminating Racial Bias Conference The City sponsored 'Accomplices in Eliminating Racial Bias;' a conference presented by the Johnson County Disproportionate Minority Contact Committee in March 2017. The conference hosted former Iowa educator and renowned anti -racism activist Jane Elliott. ► Law Enforcement Re -Affirmation and Rights Brochures The Human Rights Office issued a, "Know Your Rights" brochure series on responding to bias and hate crimes. The brochures, as well as the recently passed resolution reaffirming the public safety function of local law enforcement, are available in English, French, Arabic, Spanish and Chinese. Advance social justice and racial equity ► Efforts to diversify City recruitment Through community feedback received in the Racial Equity Toolkit process, Human Resources has increased efforts to disseminate information on employment opportunities to racially diverse populations. This included review and expansion of the distribution lists forjob postings and flyers promoting available resources to learn about employment opportunities. Updated flyers were sent to more than 150 local organizations in February 2017, including a variety of non -profits, places of worship, neighborhood centers, City facilities and buses. Flyers were also offered in Spanish, French, Simple Chinese, and/or Arabic upon request. Page: 64 0 0.5 Imi N X" - : Ik • PARK - jj .4 Z I m • • I ����` MELROSE AVE ERSI I Mel Irlo LeyeHU Strategic Planning Actions • Strong & Resilient Economy �r • Vibrant & Walkable Urban Core • Healthy Neighborhoods • Community Engagement & Intergovernmental Relations • Environmental Sustainability Social Justice and Racial Equity 'Strategic Plan includes "Maintain a Solid Fiscal Foundation" but these strategies are applied citywide. I• ROCMESTE?- O j IM j T • ' l: :J w 4 CITY � • N • •l • N I I � 1 i. MUSCNINE AVE AMER!'Cg4�j'q" 0AVE • • spa k cw• • JR & i i• i c t r CITY OF IOWA CITY '�o MEMORANDUM Date: December 11, 2017 To: Mayor and City Council Members From: Kellie K. Fruehling, City Clerk Re: Listening Post Update Thus far in 2017 Council has held four listening posts: • Thursday, April 27, 5:00-7:00 p.m., Broadway Neighborhood Center (Council Members Taylor and Thomas) • Thursday, June 15, 6:30-8:00 p.m., Kiwanis Park (in conjunction with Party in the Park) (Council Members Cole and Taylor) • Wednesday, September 6, 5:30-7:00 p.m., Uptown Bill's (Mayor Throgmorton and Council Member Mims) • Wednesday, November 15, 1:30-3:00 p.m., Oaknoll Retirement Residence (Mayor Pro tem Botchway and Council Member Taylor) No additional dates and sites are currently scheduled. Future listening posts suggested sites include: o Kirkwood Community College, Iowa City Campus o Farmer's Market (Wednesday or Saturday) F—ONT- MITMl7* *Trj1reNMV7i3 S:listeningpost/locationmemo — Nov 2017.doc -77=77" IP9 IP10 LISTENING POST SUMMARY REPORT Date: 11.15.17 Location: Oaknoll Community Room Time of Listening Post: 1:30-2:43pm Council Members Attending: Pauline Taylor & Kingsley Botchway II Approximate number who attended: 18 Topics discussed (bullet points): • Concerned about our streets and how the city prioritizes • Questions relating to the mental health component of the Councilor Botchway s campaign, the access center, and Invest Health • Discussed how to obtain updates on city business through e -subscriptions • Discussed how the projected loss of backfill will impact the tax base and how we fund services • Discussed whether or not transportation in Iowa City would change and what would be some options (i.e. Sunday service) • Discussed Bicycle Master Plan and options for low cost alternatives to use in order to promote bicycling and safety • Discussion on flood mitigation projects specifically update on Dubuque Street • Discussed whether or not the relationship with Board of Supervisors has improved Public Comments on this location of listening post: • People really enjoyed the location. There were questions about whether or not the location was known to the public. Public Comment on future locations of the listening post: • N/A Public Comments on the listening posts: • Enjoyment expressed by multiple participants about the opportunity to meet and talk with council members. Any items/things that would improve future listening posts: • Increased ability to amplify questions from audience and responses from council members fVfafr- .® CITY OF IOWA CITY IPJ 1 MEMORANDUM Date: December 7, 2017 To: Geoff Fruin, City Manager From: Jen Jordan, Resource Management Superintenden Re: Household hazardous materials update Introduction The Iowa City Landfill and Recycling Center offers proper disposal of household hazardous waste materials (HHM) to all residents and some businesses of Johnson County and the cities of Kalona and Riverside. The landfill has had a HHM facility since 2001, when the Iowa Department of Natural Resources (DNR) helped fund many such facilities across the state. Prior to the permanent facility, periodic disposal events were held at the Johnson County Fairgrounds. The Landfill is transitioning the language from "Household Hazardous Waste" to "Household Hazardous Materials" to be consistent with many other facilities across the state. The facility annually sees an average of 2,050 residential users and 80 business users. Landfill staff also hosts an average of five mobile events per year around Johnson County. Overview of Program The HHM facility is open by appointment on Tuesdays, Thursdays and Saturdays from 7 am to 1 pm. There is no cost to residents; fees do apply for businesses. The landfill contracts with Tradebe Environmental Services for proper disposal and recycling, at a cost of about $40,000 per year based on disposal weights. The program receives some reimbursement from DNR, which covers about 15% of the total cost. The rest is subsidized by landfill tipping fees, about $34,000 annually, in addition to staff time. Twelve Resource Management staff and administrators are trained hazardous waste operators; five operators cycle through the facility as part of their regular schedule rotation. Currently, residents and businesses must schedule an appointment via telephone to take materials top the HHM facility, similar to most other facilities across the state. Appointments are accepted on Tuesdays, Thursdays and Saturdays, 7 am to 1 pm. Landfill staff has received feedback from customers that the appointment system is a barrier to properly disposing of HHM. Ideally, staff could accept materials any time during landfill hours; however, that would necessitate a person being constantly available to accept and properly package materials. The mobile events held at the East Side Recycling Center and across Johnson County offer a three-hour opportunity (no appointment required) for residents to dispose of material. At these events, residents are limited to one box per household and no latex paint is accepted in order to conserve limited space in the HHM mobile trailer. Events have served anywhere from six to 133 residents per event; on average number, 41 households are served per event. Opportunities for Improvement Landfill administration understands that the appointment system is a barrier for residents. The system is being evaluated to determine if days can be added with current staffing or if removing the appointment system altogether is feasible. Several other facilities across the state accept HHM during all operating hours but are staffed significantly heavier than the Iowa City facility. If the appointment system is retained, Landfill staff will continue to work with IT to create an online appointment system. At minimum, that will allow residents to schedule their own appointments and streamline the process. Cc: Ron Knoche, Public Works Director Tr-TrrT IP12 Iowa City Municipal Airport Five Year Strategic Plan 2019-2023 Iowa City Municipal Airport Commission October 2017 Iowa City Municipal Airport Commission Minnetta Gardinier Christopher Lawrence Robert Libby, Chair A. Jacob Odgaard Christine Ogren We would like to thank Julie K. W. Bockenstedt for her work on the Commission prior to the expiration of her term. Iowa City Municipal Airport Operations Specialist Michael Tharp Kingsley Botchway II Terry Dickens Pauline Taylor CITY OF IOWA CITY UNFSCO CITY OF LITERATURE Iowa City City Council Jim Throgmorton, Mayor City Manager Geoff Fruin Rockne Cole Susan Mims John Thomas Strategic Planning Consultants Bailey Leadership Initiative, LLC Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City M 52246 319-350-5045 RESOLUTION NO. A 17-P Resolution approving the Iowa City Municipal Airport Five - Year Strategic Plan FY2019-2023, Whereas, the Iowa City City Council has appointed a five -person Iowa City Municipal Airport Commission; and Whereas, the Iowa City Airport Commission is to set the policy for the operations of the Iowa City Municipal Airport; and Whereas, the Iowa City Airport Commission has completed the five-year strategic plan update for FY2019-FY2023. Now, therefore, be it resolved by the Iowa City Airport Commission that; The Iowa City Municipal Airport five-year strategic plan FY2019-FY;<023 i dd here y d pteo. dl+;Sf d5,b✓� Passed and approved this _O_ day of 0C.' DbQ — 12017 HAIRERSON - Approved by \ ATTEST: t G ' r c - etal SSRgR } PARY( City Attorney's Office It was moved by 0&(3CCaQk and seconded by l i)C41-e r-, the Resolution be adopted, and upon roll call -there were Ayes Nays Absent Gardinier o Lawrence b Libby -t, Odgaard b Ogren �s /'�� 117 ����■�1��',' '�.fw � �,� 1 l+ O`r yry �.+■iYM 1;�� sI Lp is.� " ti�+ 1 7� � twIN - �+1�" '' ���MS� i ��Ar ���Il��w♦I �IfM Y{ =�� �i$.� lRi I�Id�11Ymc rL 'y �w � 11► r Location Map: Iowa City Municipal Airport, 1801S. Riverside Dr., Iowa City, Aerial View: Iowa City Municipal Airport, 1801 S. Riverside Dr., Iowa City, IA ©Google Maps Table of Contents Overview...........................................................................................................................................1 ExecutiveSummary ...............................................................................................................................2 Background........................................................................................................................................4 Developingthe Strategic Plan..................................................................................................................6 TheStrategic Plan.............................................................................................................................. 12 Goalsand Strategies............................................................................................................................ 13 Appendices....................................................................................................................................... 20 rrsw., Overview The Iowa City Municipal Airport (IOW) exists to serve the general aviation needs of the greater Iowa City community. The purpose of this strategic plan is to guide the direction of the Iowa City Municipal Airport for fiscal years 2019- 2023. The Iowa City Airport Commission will use the goals, strategies, and success indicators in the plan to guide the work activities and evaluate the work performance of the Airport's Operation Specialist. Through implementation of the 2016 Iowa City Municipal Airport Master Plan and Federal Aviation Administration (FAA) Airport Layout Plan, the facilities at the airport will be maintained and upgraded as necessary to comply with the latest safety standards and FAA regulations. History of Strategic Planning at the Airport In 2004, the Iowa City Airport Commission determined that a strategic plan was needed to guide the direction of the Iowa City Municipal Airport. In 2005, the Airport Commission developed the first strategic plan for the Iowa City Municipal Airport for FY2006-2010. In 2010, the Iowa City Airport Commission updated the original plan and created a document to guide the airport's work FY 2011-2015. This strategic plan is built on the process and development of the previous plans to set direction for the airport in fiscal years 2019-2023. page 1 Executive Summary At its initial planning session, the Airport Commission agreed upon the planning process parameters, indicating that the mission and vision statements were open for review, but the following three assumptions would be taken as "givens" in the planning process and were not open for consideration or discussion: Givens • Iowa City will have a general aviation airport. • It will beat the existing location of the Iowa City Municipal Airport. • It will be approximately the size of the existing site. Vision and Mission Statements Using elements of the previous Vision and Mission Statements, the Airport Commission developed the following new statements. Vision Statement The Iowa City Municipal Airport supports the strategic goals of the City of Iowa City and is an integral community asset that contributes to the region's economic vitality and evokes community pride. Mission Statement The Iowa City Municipal Airport, directed by the Airport Commission, provides a safe, cost-effective general aviation facility. The Airport creates and enriches economic, educational, healthcare, cultural, and recreational opportunities for the greater Iowa City community. page 2 Goals The Airport Commission adopted five goals for FY 2019-2023. Three of the goals are closely tied to the Iowa City City Council's strategic plan. • Continue strong communication with the City Council, City Administration, and seek opportunities to collaborate with other City Departments. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." • Develop and maintain funding mechanisms for airport operations and facility improvements and maintenance. Related to the City Council's strategic plan goal: "Maintain a solid financial foundation." • Increase use of the airport for aviation and other community uses. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." • Maintain the safety and the aesthetic appeal of airport infrastructure. • Implement the Airport's Master Plan. The Commission further developed strategies and success indicators for each goal. It will use these to create its annual plan of work and supervise the Airport Operations Specialist. page 3 Background About the Iowa City Municipal Airport The Iowa City Municipal Airport is located two miles southwest of downtown Iowa City in Johnson County. Johnson County is the fourth largest county in Iowa (population 146, 547). Iowa City is the home of the University of Iowa, with a student enrollment of just over 33,000. The Iowa City -Cedar Rapids corridor is one of two principal economic growth areas within the state of Iowa. The Iowa City Municipal Airport is integrated into the activities of the University of Iowa, including the University of Iowa Hospitals and Clinics, the medical college, the other academic colleges and the athletics department. The Iowa City Municipal Airport is strategically located in close proximity to Interstates 80 and 380, as well as U.S. Highways 6 and 218, and Iowa Highway 1. Airport Operations and Facilities The Iowa City Municipal Airport is the second busiest general aviation airport in Iowa. It is owned by the City of Iowa City and operated by a five - member Airport Commission whose members are appointed by the City Council. The Airport Commission is responsible for all aspects of airport operations and management and makes decisions regarding budgeting, development, and maintenance. The Airport Commission employs an Airport Operations Specialist to manage the day-to-day details of running the airport and it has a contractual agreement with Jet Air, a fixed based operator. Jet Air, Inc. Jet Air provides fuel sales, charter service, flight training, aircraft maintenance, hangar space, and other airport support services. Eighty-two aircraft are based at the Iowa City Municipal Airport. The airport conducts around 36,000 flight operations annually. It is estimated that the Iowa City Municipal Airport generates $11.2 million of into the area economy. page 4 Iowa City Municipal Airport facilities include two runways, a terminal building, indoor and outdoor aircraft storage facilities, and fueling facilities. Runway 7/25 is a paved concrete surface which is 5,004 feet in length and 100 feet wide. Its pavement strength is 25,000 pounds for single -wheel gear aircraft and 45,000 pounds for dual -wheel craft. Runway 12/30 is 3,900 feet in length and 75 feet wide. This paved concrete runway has a pavement strength of 15,000 pounds single -wheel gear aircraft and 20,000 pounds for dual -wheel. Iowa City's runway facilities enable the airport to accommodate larger aircraft than many other general aviation airports. The airport terminal building includes a pilot's lounge, restrooms, a weather briefing room, a lobby, administrative offices, and public meeting room space. Fueling facilities are provided by Jet Air, the Fixed Base Operator. Airport History The Iowa City Municipal Airport is the oldest civil airport west of the Mississippi River still in its original location. It had its first recorded flights in 1918. In 1920, the U.S. Postal Service chose the site as a fuel stop between Chicago and Omaha. Public ownership of the Iowa City Municipal Airport was established in 1929, and 1937 saw the first asphalt -surfaced runway. In 1940 Runway 12-30 was extended in an effort to provide a base of defense for the Rock Island Arsenal. 1941 saw the first concrete paving of an Iowa City Municipal Airport runway. In 1944, the Iowa City Airport Commission was formed to manage airport operations. Between 1930 and 1972 commercial passenger flights were available at the Iowa City Municipal Airport. Airport Relocation Study In 1992, a consultant was hired to consider the possible relocation of the Iowa City Municipal Airport. Several alternative sites for the proposed relocation were evaluated along with the existing site. After much deliberation it was determined by the Iowa City City Council that the Iowa City Municipal Airport would remain at its existing site. The City Council directed that a master plan be completed to ensure safe aviation operations into the future that are consistent with the requirements of the Federal Aviation Administration. In 1996, the airport completed its first master plan. The update to this plan was completed in October 2016. Elements of the 2016 Master Plan will be completed as federal funds become available. page 5 Developing the Strategic Plan Planning Process In April 2017, the Iowa City Airport Commission engaged the Bailey Leadership Initiative to work with the Commission to develop a five-year strategic plan. The specific objectives of this task were to develop a strategic planning document that included elements of the Airport Master Plan, and goals and objectives for the Iowa City Airport Commission. Design and development of the strategic plan was to include a public input process, an analysis of the strengths, weaknesses, opportunities, and threats (SWOT) facing the airport, and review of the airport's vision and mission statements. At the initial planning session, members of the Bailey Leadership Initiative team presented an overview of the planning process. They outlined the fundamental questions that will be answered by the strategic planning process and resulting plan: Where are we now? Where do we want to be in five years? How will we get there? The consultants reviewed the South Central District Plan of the Iowa City Comprehensive Plan, as well as the City's Riverfront Crossings Plan, and current land use surrounding the airport. They emphasized that the Riverfront Crossings plan complies with current FAA building height restrictions as it sets out a guide for redevelopment in this area south of Burlington Street. At this initial planning session, the Airport Commission agreed upon the planning process parameters, indicating that the mission and vision statements were open for review, but the following assumptions would be taken as "givens" in the planning process and were not open for consideration or discussion: Givens • Iowa City will have a general aviation airport. • It will beat the existing location of the Iowa City Municipal Airport. • It will be approximately the size of the existing site. The next step in the strategic planning process was to gather input from the public, the Airport Commission members, the Airport staff, and the City Manager concerning the strengths, weaknesses, opportunities, and threats facing the Iowa City Municipal Airport. The consultants developed and launched an online survey. The City of Iowa City's Communications Department promoted the survey through various media channels, including the City's news alerts, Facebook page, its Nextdoor app, and Twitter feed. The page 6 consultants promoted the survey specifically to area economic development organizations, and through the Bailey Leadership Initiative's social media channels. The survey was available June 2-12, 2017. During this time, 575 people responded to the survey. A summary of survey results is available in Appendix C. The next step in the strategic planning process was to evaluate the vision and mission statements for the Iowa City Municipal Airport. A mission statement describes who the organization is and what it does. It helps distinguish an organization from others doing similar work. A vision statement is more aspirational and describes the long-term change that will result from the organizations work. After discussing the current mission and vision statements, the commission decided that elements of the 2010 mission statement worked better as a revised vision statement and that wording in the 2010 vision statement seemed to fit better in a revised mission statement. After revising the vision and mission statements, the commission moved on to examine the results of the public survey and conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis. Data for the SWOT analysis was obtained from the public and commission surveys, and one-on-one interviews with commission members, the airport operations specialist, and Iowa City's City Manager. page 7 Strengths and Weaknesses Strengths The following were listed in survey responses to "What does the Iowa City Municipal Airport (IOW) do well?" 1. Services 2. Diverse Aviation Community 3. Location 4. Facilities 5. Customer Service 6. Community Benefit 7. Events B. Economic Impact 9. Facility Maintenance 10. Safety 11. FBO 12. Affordability 13. Management 14. Financial Sustainability Comments were grouped according to broad topic areas and then ranked by the number of related comments in that category. The number of comments ranged from thirty-one (31) about services to two (2) comments about financial sustainability. page 8 Weaknesses These were listed in survey responses to "What does the Iowa City Municipal Airport (IOW) need to improve?" 1. Facilities 2. Public Awareness/ Marketing 3. Noise 4. Events 5. Services 6. Community Benefit 7. Aesthetics B. Location 9. Access 10. Financial Self -Sufficiency 11. Environmental Sustainability Comments were grouped according to broad topic areas and then ranked by the number of related comments in that category. In this question, the top three mentions: Facilities, Public Awareness/Marketing, and Noise received thirty or more comments. The next eight items (Events, Services, Community Benefit, Aesthetics, Location, Access, Financial Self -Sufficiency, and Environmental Sustainability) received between 1-12 comments. Some items made both the strengths and the weaknesses lists: • Facilities • Services • Community benefit • Location • Financial self-sufficiency Only facilities ranked high on both lists. Respondents commented about different aspects of facilities when listing it as a strength or weakness. Participants mentioned facilities strengths as the attractiveness of the facilities, the availability of meeting room space, and the taxiways and runways. Facility weaknesses mentioned the lack of hangar space, hangar maintenance, and technology, specifically, lack of instrument approach and lack of wifi to the hangars. page 9 Opportunities and Threats The Airport Commission surveys listed the following opportunities for the airport in the next five years: • The Airport as a community space • Facility Improvement • Growth of air traffic • South Aviation Commerce Park • Attracting additional businesses • Expanding airport services When asked what challenges do you see for the airport in the next five years, commission members listed: • Competing interests for people's time • Funding concerns • Change in pilot demographics • Obstruction mitigation project • Growth in air traffic means more noise • Lack of public awareness about the airport From the SWOT analysis and a review of the progress made on the last strategic plan, the commission developed five goals for the airport. page 10 Goals The Iowa City Municipal Airport Commission developed five goals for FY2019-2023. • Continue strong communication with the City Council, City Administration, and seek opportunities to collaborate with other City Departments. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." • Develop and maintain funding mechanisms for airport operations and facility improvements and maintenance. Related to the City Council's strategic plan goal: "Maintain a solid financial foundation." • Increase use of the airport for aviation and other community uses. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." • Maintain the safety and the aesthetic appeal of airport infrastructure. • Implement the Airport's Master Plan. The commission also developed specific strategies to accomplish each goal, as well as success indicators to determine if the strategies are successful. The Airport Operations Specialist will develop work plans and timelines to conduct the strategies listed in each goal. The commission will evaluate the Airport Operations Specialist work performance based upon development and implementation of his work plan and his progress in accomplishing the strategies outlined in the plan. The Commission's goal was to develop an actionable strategic plan. The Iowa City Municipal Airport Strategic Plan should be reviewed and updated every year, when the commission reviews its annual report. page 11 The Strategic Plan Vision and Mission Statements Vision Statement The Iowa City Municipal Airport supports the strategic goals of the City of Iowa City and is an integral community asset that contributes to the region's economic vitality and evokes community pride. Mission Statement The Iowa City Municipal Airport, directed by the Airport Commission, provides a safe, cost-effective general aviation facility. The Airport creates and enriches economic, educational, healthcare, cultural, and recreational opportunities for the greater Iowa City community. page 12 Goals and Strategies Goal 1 Continue strong communication with the City Council and City Administration, and seek opportunities to collaborate with other City Departments. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." Strategies • Adopt the Airport's the strategic plan. Staff and representatives from the Airport Commission present the plan to the City Council. • Airport Operations Specialist will attend regular City staff department head meetings. • At least twice per year, an Airport Commission member or Airport Operations Specialist will attend City Council meetings to give an update on airport activities. • Provide an annual report to the City Council on airport operations and make the report available on the City's website as well as on the Airport's web pages. • Participate in annual Capital Improvements Program preparation and presentation to the City Council. • Provide tours of the airport and airport facilities to City Council members and City Council candidates. • Provide tours of the airport and airport facilities to the City Manager's office staff, City Department heads, the City's Economic Development Coordinator, and City Communications Staff. • Each new Commission member appears before the City Council to introduce themselves. • Talk with the Parks and Recreations Department about possible enhancements to the Airport's viewing area to help increase parkland/greenspace inventory in the City's West Central Park District. page 13 Goal 1(continued) Continue strong communication with the City Council and City Administration, and seek opportunities to collaborate with other City Departments. Success indicators • An adopted Airport Strategic Plan that is presented to the City Council. • The Airport Operations Specialist participates in regular City department head staff meetings. • Quarterly reports on Airport activities provided to the City Council. • An annual report presentation to the City Council within two months of the end of the calendar year. • Availability of the Airport's current and past four annual reports on the Airport's website for download. • The City Council includes Airport capital projects in its annual Capital Improvement Program (CIP). • Each member of the City Council has toured the Airport at least once per Council term—either as a candidate or as a City Council member. • The City Manager and members of City Staff tour the Airport at least once every five years. • Each Airport Commissioner has appeared before the City Council at least once during his/her Commission term. • Other City departments participate in Airport projects. • An enhanced Airport viewing area. page 14 Goal 2 Develop and maintain funding mechanisms for airport operations and facility improvements and maintenance. Related to the City Council's strategic plan goal: "Maintain a solid financial foundation." Strategies • Maintain adequate revenue generated by airport operations by regularly reviewing and revising as appropriate the Airport's sources of revenue: fuel sales, hangar leases, airport fees, and non -aviation uses. • Regularly evaluate additional revenue generating opportunities. • Identify funding sources and apply for federal, state, and private funding each year. • Regularly communicate with state and federal officials on the value of funding for General Aviation airports. Success indicators • The Airport's support from the City's General Fund does not exceed 10% of the Airport's operating budget. • The Airport has diversified and sustainable funding streams. • The Airport's revenue covers Airport operational expenses. • The Airport receives adequate grant funding to upgrade and maintain high quality facilities. page 15 Goal Increase use of the airport for aviation and other community uses. Related to the City Council's strategic plan goal: "Enhance community engagement and intergovernmental relations." Strategies • Work with the City's Communications office or outside marketing firm to develop and implement a marketing plan for the Airport to: b Communicate with area and regional pilots about the Airport's 24-hour fueling capabilities and other features of the Airport. b Communicate with area businesses and residents about Airport charters and rentals. b Communicate with future pilots about the Airport's flight school. b Communicate regularly with area residents about basic information about the Airport: how it is funded, the services it provides, the availability of meeting room space, and other general information. b Communicate with area residents about the Airport's 100th Anniversary. b Promote the Airport as a City asset. b Market the use of airport charters, airplane rentals, the flight school, and public meeting space. Work with City Economic Development staff to identify and pursue specific economic development opportunities. page l6 Goal 3 (continued) Increase use of the airport for aviation and other community uses. Success indicators • Growth in the use of the Airport for aviation uses as evidenced by data on: b Fuel sales. b Use of charters and rentals. b Enrollment in flight school. b New pilot licensing. • Growth in the use of the Airport for community uses as evidenced by data on: b Use of the meeting room. b Number of community events held on the Airport grounds. b Number of attendees at community events. b Social media click -through data on City/Airport website. b Social media likes and other activity on the Iowa City Municipal Airport's Facebook page. • Pursue at least two new economic development ventures at the Airport within the next five years. F- page 17 Goal 4 Maintain the safety and the aesthetic appeal of airport infrastructure. Strategies • Advocate for the existing unfunded Capital Improvement Program project for construction of a sidewalk along Old U.S. Highway 218. • Paint the Airport hangars. • Improve landscaping in and around the terminal building and entry drive. • Talk with the Parks and Recreations Department about possible enhancements to the Airport's viewing area to help increase parkland/greenspace inventory in the City's West Central Park District. (seegoal 1 strategy Success indicators • The Airport is accessible by trail/wide sidewalk. • The Airport hangars are regularly painted. • The entry to the Airport and the area around the terminal building is well landscaped. • The Airport viewing area is used regularly by area residents and visitors. page 18 Goal 5 Implement the Airport's Master Plan. Strategies Complete short-term capital projects as funds become available. (see Airport Master Plan, Table 5-1: Capital Improvement Plan Summary) Success Indicators • Number of grant applications and funding requests for capital projects outlined in the Airport's Master Plan. • Completion of projects included in the Airport's Master Plan. page 19 Appendices Appendix A: Public Survey Appendix B: Iowa City Airport Commission Members/Staff Survey Appendix C: Survey Results Summary Appendix D: Meeting Minutes Appendix A Iowa City Municipal Airport (IOW) Public Survey Welcome! Thank you for your interest in providing input for the Iowa City Municipal Airport's strategic planning process! The purpose of this survey is to give information to the Airport Commission as it discusses the role of the Airport in our community and develops a 5 -year strategic plan to guide the future activities of the Airport Commission and Airport staff. This survey should only take 5 minutes to complete. You will not be asked to provide your name or any identifying information to complete this survey. If you have any questions about the survey or the Airport's strategic planning process, you may contact the strategic planning consultants at: info(a)baileyleadershipinitiative.com. Please click "Next" to begin the survey. 1. Where do you currently live? O Iowa City -east of the Iowa River O Iowa City -west of the Iowa River O Coralville O University Heights O North Liberty O Hills O Unincorporated Johnson County O Other (please indicate below) 2. When was the last time you were at the Iowa City Municipal Airport? O Within the past week O Within the past month O Within the past six months O Within the past year O I've never been to the Airport O Comments: Public Survey/ page 2 3. What was the purpose of your most recent trip to the Airport? O Fly an aircraft O Charter service O Pick up/drop off somebody O Sightseeing O Meeting/use the conference room O Event O Other (please specify) 4. The Iowa City Municipal Airport contributes to the quality of life in Iowa City. Strongly disagree Disagree No opinion Agree Strongly agree 5. The Iowa City Municipal Airport contributes to the economic impact/vitality of Iowa City. Strongly disagree Disagree No opinion Agree Strongly agree Public Survey/ page 3 6. What does the Iowa City Municipal Airport (IOW) do well? 7. What does the Iowa City Municipal Airport (IOW) need to improve? 8. Please include any additional comments about the Iowa City Municipal Airport or its strategic planning I Uklcaa ucwvv. Public Survey/ page 4 Appendix B Iowa City Airport Commission and Staff Survey Welcome! Thank you for clicking on the survey link! Your answers to these survey questions will help us understand your thoughts about the Iowa City Municipal Airport and the role that it plays in our community. This survey shouldn't take more than 10 minutes to complete. You will not be asked to provide your name or any identifying information to complete this survey. The data collected in this survey will help shape the agendas for the Airport Commission's strategic planning sessions. If you have any questions about the survey or the Airport's strategic planning project, please feel free to contact us at: rdb@baileyleadershipinitiative.com. Please click "Next" to begin the survey. 1. The Iowa City Municipal Airport contributes to the quality of life in Iowa City. Strongly disagree Disagree No opinion Agree Strongly agree 2. The Iowa City Municipal Airport contributes to the economic impact/vitality of Iowa City. Strongly disagree Disagree No opinion Agree Strongly agree 3. What does the Iowa Citv Municipal Airport (IOW) do well? 4. What does the Iowa Citv Municipal Airport (IOW) need to improve? 5. As you think about the next five years, what opportunities do you see for the Iowa City Municipal Airport? Iowa City Airport Commission and Staff Survey/page 2 6. As you think about the next five years, what will be the challenges facing the Iowa City Municipal Airport? 7. What accomplishments would you like to see at the Iowa City Municipal Airport during the next five years? 8. What are the 3-5 topics that are critical to address at the strategic planning retreat? 9. Please include any additional comments about the Iowa City Municipal Airport or its strategic planning I Uklcaa ucwvv. Iowa City Airport Commission and Staff Survey/page 3 Appendix C Public Survey Results 575 people responded to the survey. Public Survey: Residence Of the 573 respondents who answered the survey question about residence, 81% (464) are from Iowa City. Of those Iowa City residents, 70% of them live east of the Iowa River and the remaining 30% live west of the Iowa River. Residence (n=573) Iowa City -east of th Iowa °i•- 56% Chart 1: Public Survey: Residence Iowa City -west of the Iowa River 25% Coralville 4% iniversity Heights 2% Jorth Liberty 3% unincorporated Johnson County Other 5% 4% Public Survey: Airport Use Frequent User -15% (86) of survey participants used the airport within the week or within the past month. • 65% (56) of this category used the airport within the past week. This is 9.74% of all respondents. Periodic User -15% (88) of survey respondents used the airport within the past six months or within the past year. • 50% (44) of this category used the airport within the past six months. This is 7.65% of all respondents. Infrequent User -31% (177) of the survey participants have not used the airport for more than a year. Nonuser -39% (224) of survey participants have never been to the airport. Airport Use (n=575) Frequent User 15% Periodic User Nonuser 15% 39% Infrequent User 31% Public Survey Results/page 2 When asked about the purpose of their airport visit, frequent users indicated that it was to fly an aircraft. Both periodic and infrequent users indicated that the purpose of their airport visit was to attend an event. Quality of Life When asked, on a scale of one to five, with five as `strongly agree,' one as `strongly disagree,' and three as `no opinion,' if "The Iowa City Municipal Airport contributes to the quality of life in Iowa City." • Frequent Users rated this rated this question 4.43. • Periodic Users, 3.85. • Infrequent Users rated the question 3.39. • Nonusers rated it 2.86. • Taking the rating from all public surveys, the rating was 3.43. The Airport Commission rated this question 4.80. Economic Impact When asked, on a scale of one to five, with five as `strongly agree' and one as `strongly disagree,' if'The Iowa City Municipal Airport contributes to the economic impact/vitality of Iowa City." • Frequent Users rated this rated this question 4.49. • Periodic Users rated this question 3.91 • Infrequent Users rated the question 3.53. • Nonusers rated it 3.07. • Taking the rating from all public surveys, the rating was 3.57. The Airport Commission rated this question 4.60. Public Survey Results/page 3 Strengths The following were listed in survey responses to "What does the Iowa City Municipal Airport (IOW) do well?" 1. Services 8. Economic Impact 2. Diverse Aviation Community 9. Facility Maintenance 3. Location 10.Safety Facilities 5. Customer Service 6. Community Benefit 7. Events 11.FBO 12. Affordability 13. Management 14. Financial Sustainability Comments were grouped according to broad topic areas and then ranked by the number of related comments in that category. The number of comments ranged from thirty-one (31) about services had 31 to two comments about financial sustainability. Weaknesses These were listed in survey responses to "What does the Iowa City Municipal Airport (IOW) need to improve?" 1. Facilities 2. Public Awareness/ Marketing 3. Noise 4. Events S. Services 6. Community Benefit 7. Aesthetics B. Location 9. Access 10. Financial Self -Sufficiency 11. Environmental Sustainability Comments were grouped in broad topic areas and ranked. In this question, there was a gap between the top three mentions: Facilities (45), Public Awareness/Marketing (45), and Noise. (30) and the next eight items. Events received twelve comments. Some items made both the strengths and the weaknesses lists: • Facilities • Services • Community benefit • Location • Financial self-sufficiency Only facilities ranked high on both lists. Respondents commented about different aspects of facilities when listing it as a strength or weakness. Participants mentioned facilities strengths as the attractiveness of the facilities, the availability of meeting room space, and the taxiways and runways. Facility weaknesses mentioned the lack of hangar space, hangar maintenance, and technology, specifically, lack of instrument approach and lack of wifi to the hangars. Public Survey Results/page 4 Opportunities The Airport Commission surveys listed the following opportunities for the airport in the next five years: • The Airport as a community space • Facility Improvement • Growth of air traffic • South Aviation Commerce Park • Attracting additional businesses • Expanding airport services Threats When asked what challenges do you see for the airport in the next five years, commission members listed: • Competing interests for people's time • Funding concerns • Change in pilot demographics • Obstruction mitigation project • Growth in air traffic means more noise • Lack of public awareness about the airport Overall, the public survey responses indicated a lack of information or misinformation about the airport. This included not understanding how the airport is supported financially, the purpose of the airport, and who uses the airport. Public responses also indicated frustration about the airport caused by airport noise, low flying planes, and the perceptions that the airport is supported primarily by tax dollars, and is a `playground for the wealthy' rather than a public amenity. Public Survey Results/page 5 Appendix D Meeting Minutes May 25, 2017 Page 1 MINUTES FINAL IOWA CITY AIRPORT COMMISSION MAY 25, 2017 — 5:30 P.M. AIRPORT TERMINAL BUILDING Members Present: Julie Bockenstedt, Robert Libby, A. Jacob Odgaard, Chris Ogren Members Absent: Minnetta Gardinier Staff Present: Michael Tharp, Eric Goers Others Present: Matt Wolford, David Hughes, Laura Routh, Caroline Dieterle RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: The meeting was called to order at 5:31 P.M. by Chair Odgaard. APPROVAL OF MINUTES: Minutes from the April 20, 2017, meeting were reviewed. Bockenstedt stated that she would tie abstaining from the discussion and vote, as she was not in attendance at this meeting. Ogren referred to Item G on the third page. under the 100 -Year Anniversary Committee comments. Where it says 'Ogren shared the draft they have so far.' She noted that she does not have a draft and that she is unsure where this comment came from. She suggested changing this to 'Ogren suggested a process for completing the survey.' Tharp stated that he will go back and listen to the recording to see what was actually said here and will make the needed change. Ogren also noted under Item A, Strategic Plan, the word firm's' should be just 'firms.' Also, on page two, at the bottom, 'Tharp noting that it happens quite often anymore.' Ogren stated that this sentence is constructed oddly, and that something more like'.... happens quite often now,' or'., happens quite often,' would make more sense. Ogren moved to accept the minutes of the April 20, 2017, meeting as amended. Libby seconded the motion. The motion carried 3.0; Bockenstedt abstaining and Gardinier absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: a. Strategic Plan — Tharp first introduced Regenia Bailey and Jeff Davidson to the Members. He noted that they are here to help the Commission with their May 25, 2017 Page T strategic planning process. Bailey began by giving Members a brief history of her background and involvement with the City of Iowa City. Davidson then addressed Members, stating that he is excited to be back at the Airport to help with this process. He also gave Members a brief history of his background, Bailey then asked if Members would also share something about themselves, especially what motivated each of them to serve on the Airport Commission. Ogren began by sharing her occupational background and her interest in aviation. She noted that her husband is currently building an airplane in their garage. She added that she was looking for a way to get involved in the city and that this commission was a good fit for her. Bockenstedt spoke next. sharing that her dad has flown for many years and that she has a pilot's license herself. Being fairly new to the community, the Airport Commission was a good fit for her as well. Odgaard stated that he joined the commission when a former member, who was his neighbor, passed away. Odgaard is a flight instructor and had been training his neighbor at that time. Libby stated that he runs a small business in Iowa City and is a pilot himself. He grew up in Ecuador and flew in the jungles over there. Odgaard then added that another thing that made him want to join the commission was the lack of knowledge people in the community even had about the Airport. Davidson noted that one of the goals from the previous strategic plan was just that, educating the public on the Airport. He asked if any progress has been made in this area. Odgaard responded that not enough progress has been made. in his opinion. He believes the Airport is a real 'jewel' to the community and that more people should take advantage of it. Davidson asked Ogren if she thought any progress had been made in this area. She responded that she isn't sure she could answer that question, but that her own awareness has increased since being on the commission. Matt Wolford with Jet Air stated that they can see changes in people's perception when calling a taxi cab company.. for example. Sometimes the cab company thinks they mean the Cedar Rapids Airport, and then they tell them that there is an airport in Iowa City too. He claimed that businesses in the community seem to be more cognizant of the Airport now. Members continued to discuss community awareness of the Airport, with Ogren stating that the'Fly Iowa' event three years ago seemed to shed some light on the Airport. Davidson then spoke to the assets of the Airport, such as the location itself and the conference room in the Airport Terminal building. Ogren noted that next year will be the 100 -year anniversary of the Airport, and that this will be a great opportunity to get the word out about the Airport. Bailey stated that with these things in mind. visibility, communication, and marketing will undoubtedly be a big part of the Commission's strategic plan. She then noted that this evening what they would like to do is go through the process itself, get some further detail from Members, arca then look at the Airport in context to land use. Bailey noted that in beginning the process, they will look at where they are now, where they want to go, and where they want to be in five years, by setting goals and objectives. She stated that the strategic plan has a contextnot only with land use but also with the master plan that was recently completed. Bailey noted that not only is it the Airport's plans that are looked at but also the City's, namely the Comprehensive Plan and the City Council's strategic plan. Moving on, Bailey spoke to the 'environmental scan' approach. which involves stakeholder and public input involving an online survey. Davidson asked that May 25, 2017 Page 3 Members let them know of any specific groups they would like to target. He noted that during the previous strategic plan process, he was asked to specifically reach out to pilots and neighborhood associations. Referring to the recent master planning process, Bailey asked if the Commission wants them to survey the same groups or use the information from the master plan process. She added that this information is fairly current and that it would be pertinent to what they are doing. Members agreed that using the information already gathered would be a good idea, given that the master plan is the backdrop for the strategic planning. Continuing, Bailey noted that they are planning to give surveys to both staff and Commission Members. as well as conduct one -on -ane interviews with Commission Members, staffand the City Manager. This will be part of the stakeholder input. Members also discussed various boards and commissions within the City, and the Council itself, as possible groups to reach out to for input. The City Council and Planning and Zoning were two speck groups discussed. Members also discussed the University of Iowa and the relevance of the Airport to their various departments. Bailey stated that once the survey data is collected.. it will be turned into a SWOT tstrengths, weaknesses, opportunities, and threats) matrix for Members to review. Davidson asked what Members hope to get out of this process, if anything, besides a five-year strategic plan. Odgaard stated that he believes it comes down to 'image and others agreed. He and Bailey briefly reviewed their proposal and what is included in this process. Bailey stated that looking into what other airports are doing will be very beneficial to them as they move through this planning process. The conversation then moved to land use. Davidson shared some history of the Airport with Members, noting that in the 1990s there was a perceived threat of the Airport being relocated. A study was conducted at that time, and what came out of that study was that the Airport would remain, and that k would stay where it is and be approximately the same size. Members agreed that this is still the case. Davidson then moved on to the South Central District Plan, which is the governing document for the City's Comprehensive Plan governing the area where the Airport is located. He gave Members some history behind the City's comprehensive planning process, specifically how the district plans are more neighborhood -centered. In the South Central Plan. Davidson pointed out that the Airport is the driving force to all of the other land use issues in the district. He also spoke to the flood plain issues and how the flood of 2008 created some changes in the area. Davidson also spoke about the Riverfront Crossings area, stating that there will be a large amount of growth in that district in the coming years. He noted that the Airport's existence was taken into consideration, as far as building heights, when the Riverfront Crossings Plan was being created. He added that 6 FAA regulations should change in the future, so too would Riverfront Crossings. Bailey then wrapped up the discussion, stating that next they will be developing the online survey, which should be launched next week. This will be heavily promoted, according to Bailey, with outreach to the various groups that were discussed. At the next meeting then, Bailey stated that she hopes to have the results of those surveys. Between now and the next Commission meeting, one- on-one interviews will be scheduled with the Commission Members, Tharp, and the City Manager. Bailey asked if Members felt this process would work, and Odgaard responded that he believes this is the direction they want to go. May 25, 2017 Page 4 b. FAXIDOT Projects: AECOM ( David Hughes (MOVED ITEM UP BEFORE STRATEGIC PLAN DISCUSSION.) I. Obstruction Mitigation — Hughes stated that they are still coordinating with the FAA planner on this item. ii. South Taxiway Extension — Hughes noted that the pre -construction conference took place earlier in the day. Metro Pavers is ready to start, but they are waiting to hear from one of their subcontractors first. iii. North T -Hangar Restroom — Hughes stated that the plans and specifications are ready for this project. There will be some changes to the sewer system, according to Hughes, which have added some additional charges. 1. Consider a resolution setting a public hearing on plans, specifications, and form of contract— Bockenstedt moved to accept Resolution #A17-08, setting a public hearing on plans, specifications, and form of contract. Ogren seconded the motion. The motion carried 4-0, Gardinier absent C. Airport Operations I. Budget — Tharp stated that he does not have much to sham on this, that nothing has really changed since last month. He added that they will have some additional expenses on the electrical supplies line, due to the fact that they have finally used up the old lighting fixtures from the decommissioned runway 18-30 and have had to order some new ones. Tharp reminded Members that the fiscal year will end at the end of June. fl. Management - 1, Annual Report — Tharp stated that the report was in the meeting packet and that he has incorporated those comments he received. He asked if anyone had anything else to add, as he plans to finalize this as soon as possible. Z Airport— Tharp stated that this is a reminder that Sockenstedt's term wilt be expiring at the end of June. if. Events 1. Emergency Response Drill—Tharp spoke to this item, thanking Libby for kicking it off and getting things going. He stated that basically it was hosted by the Airport and the Johnson County EMA, with all three hospitals in the area participating, along with Johnson County Ambulance, CARE, EMT. Southeast: a class of EMS students from Kirkwood: the Medical Examiner's office; police; Jet Air: and even a couple Commission Members were in attendance. Tharp stated that he believes it was a good exercise, although there were a couple 'hiccups' along the way. He briefly explained some of these hiccups, noting that it began with calling 9-1-1 to begin the exercise. Ogren stated that she was in attendance and heard some police talking about how they did not even know the layout of the Airport, which she found troubling. She stated that every year they should have police and fire do a visit, so that they are aware of the layout at the Airport, should an emergency arise. Others agreed, and Libby stated that he would like to be involved in this. Tharp noted that codes needed for entry are a part of the County's Emergency Response Pian, which is updated whenever something changes. Tharp stated that he then participated in the Cedar Rapids' Airport drill as an May 25, 2017 Page 5 observer. Members continued to discuss the need for these types of drills, with many agreeing they should be done every three years. 2. Young Eagles — Tharp noted that this event takes place June 10. They will be working with the EAA Chapter representing Cedar Rapids and Iowa City. The event runs 9:00 A to noon that day. Ogren stated that she will be present at this event, and Odgaard stated that he will try to come out as well. d. FBOI Flight Training Reports (MOVED ITEM UP BEFORE AIRPORT OPERATIONS DISCUSSION.) I. Jet Air — Matt Wolford with Jet Air shared the monthly maintenance reports with Members. He noted that since the April meeting they have readied all of the mowers and put the broom on the yellow truck. Other maintenance items included branch and garbage pickup around the Airport, painting in the lobby, and other miscellaneous tasks. Ogren asked if it is normal for the location hosting a disaster drill to pay for the catering afterwards. Wolford and Tharp both stated that there will most likely be some reimbursement here from others involved. Libby agreed, stating that Emergency Management may reimburse them some. He added that he can look into this matter further. As for Jet Air's business, Wolford stated that they have been keeping very busy. They have several charter contracts that they are rebidding for local services. The hangar construction is progressing well and he shared his excitement over the new door that has been installed. He also shared that Jet Air is bringing in a larger plane that will be housed in Iowa City. Wolford also spoke briefly about an aerial survey group that is leasing one of their 172 sing"ngines. The group will be strapping a camera on the bottom of the plane and will then be flying around five or six different states, all the while shooting crop footage. They will then come back approximately every three weeks throughout the summer, according to Wolford, and do the same thing. He then noted that a Lear brought in a patient from Hawaii, after refueling in California. a. Commission Members' Reports — None. Staff Report— Tharp stated that he will be out of the office tomorrow. g. 100 Year Anniversary Committee — Ogren stated that they have a long survey they need to complete, and that last week she shared various portions of it with the other subcommittee members. She also shared that she was researching something recently at the University and came across a University news bulletin from 1929, saying there were changes at the Airport. SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday, June 15, 2017, at 6:00 P.M. in the Airport Terminal Building. Tharp noted that Gardinier will be heading out for the Air Race Classic around that time. He will check with her to see what her availability is. Libby stated that the following week would actually work better for him: as did Ogren. May 25, 2017 Page 6 ADJOURN: Ogren moved to adjourn the meeting at 6:00 P.M. Libby seconded the motion. The motion carried 4-0, Gardinier absent e"-e� a 10 117 07 CHAIRPERSON DATE May 25, 2017 Page 7 Airport Commission ATTENDANCE RECORD 2017 TERM o f gri I o w 0 .� 0 ro 0 i ro 0 u o f Lei 0 0 � 0 u 0 a 1 0 v. NAME EXP. Minnetta Gardinier 071011181.._._._ j X or i E X X X I X X X X I X X X a E or• E Chris Ogren 07/01/18 1 1r O r I O/ ! �XX I E X X X E X X X X X X X A.Jacob 07101/18 -�-01 _ . ___ — Ot �Odgaard E X X X X X X X X� X X_ X— E X X Julie 07/01!17 — O 0 -- + Bockenstedt t li t j ( Or X X X E X E X X X - X X X E X Robert 07/01120 _----- _. -_-O _�__ i Libby a TXX X X -0 l -I_X Key. X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused NM = Not a Member at this time June 27. 2017 Page 1 MINUTES FINAL IOWA CITY AIRPORT COMMISSION JUNE 27, 2017 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Minnetta Gardinier, A. Jacob Odgaard, Chris Ogren Members Absent: Julie Bockenstedt, Robert Libby Staff Present: Michael Tharp, Eric Goers, Simon Andrew Others Present: Matt Wolford, David Hughes, Christopher Lawrence, Regenia Bailey, Laura Routh RECOMMENDATIONS TO COUNCIL: Ito become effective oniv after separate, Council action): None. DETERMINE QUORUM: Odgaard called the meeting to order at 5:01 P.M APPROVAL OF MINUTES: Minutes from the May 25, 2017, meeting were reviewed first. Ogren stated that she had one small point, on the last page where the conversation is about the Young Eagles. It states, "Tharp noted.—with the EAA Chapter out of Cedar Raoids' Ogren stated that technically this Chapter is Iowa City and Cedar Rapids. and she suggested adding Iowa City. Gardinier moved to accept the minutes of the May 25, 2017, meeting as amended. Ogren seconded the motion. The motion carried 3-0; Bockenstedt and Libby absent. PUBLIC DISCUSSION: At this paint, Chairperson Odgaard asked Tharp to introduce the newest Commission Member. Tharp stated that they had several guests present this evening and he proceeded to introduce Chris Lawrence, the newest Airport Commission Member. His term will start July 1. Tharp also introduced Simon Andrew from the City Manager's office. Ogren then introduced herself to Chris Lawrence, as did others present. ITEMS FOR DISCUSSION/ACTION: a. FAA/IDOT Projects: AECOM / David Hughes L Obstruction Mitigation — Hughes noted that at the last meeting this item was being held up by the FAA's response. He stated that this issue has been resolved and they now will see if they have a grant application going back to the FAA. based on the original numbers presented and the June 27, 2017 Page 2 independent fee estimate that they requested be done. Tharp stated that due to a short tum -around time, it would be useful to authorize the Chair to sign the grant once it is received. 1. Consider a resolution authorizing Chair to sign grant otter — Odgaard moved to approve Resolution #At7-09, authorizing the Chair to sign the grant offer once received. Gardinier seconded the motion. The motion carried 3-0, Bockenstedt and Libby absent. Hughes spoke to what the plans are once they can move forward with this. He noted some general timeframes. including what would be due to the FAA at the end of September, along with a draft version of the EA for review mid to late October. That would be followed up with a public comment period. and then the final version of the EA shortly after the first of the year, with finish of the EA being anticipated by May of 201 B. ii. South Taxiway Extension — Hughes stated that this is under construction currently, with the rock and storm sewer in place now. The next phase will be paving, according to Hughes. He noted that they had to make some adjustments with the apron they were planning for. and that they will be having Metro put some additional concrete in to adjust the grades. He then responded to Member questions regarding these adjustments and the project in general. iii. North T -Hangar Restroom — 1, Public Hearing — The public hearing was opened at 6:16 P.M. by the Chair. Tharp briefly reviewed this project, noting that it is to add a restroom to hangar 8 on the south side. The storage area that was there is being removed in order to do this. Tharp stated that the State is putting in 70°% of the funds for this project. He then gave Members a brief rundown of the timeframes involved. The public hearing was closed at 620 P.M. 2. Consider a resolution authorizing plans, specifications, form of contract and authorizing bid — Gardimer moved to approve Resolution #A17-10, authorizing plans, specifications, form of contract, and authorizing bid. Ogren seconded the motion. The motion carried 3-0, Bockenstedt and Libby absent. b. Strategic Plan — Regenia Bailey started off the strategic planning session by stating that they would be holding off on the SWOT analysis until Jeff Davidson is able to join them. She noted that he had a previously scheduled trip and therefore is unable to attend this evening. Bailey stated that they would be focusing on the 'mission' and 'vision' statements this evening, with the objective being to look at the current statements and decide if any changes are desired. Beginning the review. Bailey began with the mission statement portion, noting that basically it states the organization's reason or purpose. She added that ideally it should be both unifying and inspiring internally.. as well as concise and clear. Externally the mission statement should be clarified. Moving on to the vision statement, Bailey stated that this is what is seen in the future, if the organization is successful. This is more aspirational in nature. Continuing, Bailey further clarified what these statements are meant to do. She shared with Members what the Airport's current statements are. Bailey then asked Members to start a discussion regarding their mission and vision June 27, 2017 Page 3 statements and what they may propose changing. Gardinier stated that for the vision statement, she would question 'meets the needs of its stakeholders.' She asked what 'its' refers to here, the City of Iowa City or the Airport. Gardinier believes the current vision statement is more of a mission statement. as Bailey had alluded to. Bailey asked if other Members agree that the current vision statement should become the new mission statement. Members then discussed some possible word changes to the statement. Bailey suggested clarifying wording where possible, in order to provide accurate information to anyone reading the strategic plan. Members continued to discuss the wording for the mission and vision statements, and how perceptions by the public should be taken into account- Ogren suggested the wording of 'directed by the Airport Commission,' rather than 'through the direction of.' Matt Wolford with FSO Jet Air also made some suggestions about moving wording around. Another suggestion was made to change 'area'to 'community.' Gardinier read the current version being discussed: The Iowa City Municipal Airport, directed by the Airport Commission, provides for safe, cost effective general aviation that creates and enriches..... as Members continued to discuss the wording. Ogren then suggested: The Iowa City Municipal Airport. directed by the Airport Commission, provides a safe, cost effective general aviation facility. The Airport creates and enriches economic, educational, etc. Tharp suggested using the full name of the Airport throughout the statement. Some Members agreed that they prefer the statement broken down into two sentences. Odgaard stated that he would almost prefer one sentence here. Bailey stated that she will draft this both ways. so that Members can think about it and then revisit it at the next meeting. Ogren then reviewed changes that Wolford had suggested, such as'.. -through providing a safe, cost effective general aviation,' portion being moved. which would eliminate the'that creates' portion of the statement. Reading the statement suggestions again, Wolford stated: The Iowa City Municipal Airport. directed by the Airport Commission, creates and enriches the economic, educational, healthcare, cultural, and recreational opportunities for the greater Iowa City community through safe and cost effective general aviation.' Moving on to the current mission statement becoming the vision statement, Bailey noted that Ogren had said it was a pretty generic statement. Bailey added that in strategic planning, you do not always need to have a vision statement. Members continued their discussion on this issue, with Ogren asking if there is truly a need for a vision statement.. that perhaps it is to continue to do the mission. Gardinier stated that she believes they do need it, that they should aspire to be more. Bailey asked the group what aspirations they may have for the Iowa City Municipal Airport.. as it goes about its new mission basically. Odgaard responded that in a sense it is to make the Airport a more prominent community facility than it is today, in order to look forward to an even better facility. He believes the Airport should be more integrated with the community than it currently is. Ogren made the suggestion of: ....will continue to provide all of the things above in a way that is integral to the Iowa City community. Others agreed, noting that the Airport needs to be seen as an asset to the entire community, not just the aviation community. The discussion continued, with Members discussing just what it is the Airport is attempting to `foster' in the community. Odgaard responded that he sees it as recognition of the University June 27, 2617 Page 4 and fostering awareness of the potentials for the Airport, or something to that effect. Bailey suggested 'community pride,' and Odgaard agreed. Bailey asked if Members want to say something regarding the programming that takes place at the Airport. The suggestion was made '...fostering involvement of all ages,' and `building a sense of community around the Airport.' The other Members were impressed with these suggestions. Bailey continued to ask Members if they had any other key words they wanted to add to the statement, and Members continued to discuss just what it is they want to convey to the public. Bailey stated that what she is hearing is that the group wants the Iowa City area to see the Iowa City Municipal Airport as an asset or integral to the community. Gardiner brought up a comment from the Pekin Municipal Airport: '.. will serve as a crucial component of the Pekin and greater Peoria area transportation infrastructure and play a critical role in the advancement, growth. and economic development of the region' This comes from a combined mission and vision statement, according to Gardiner. Odgaard spoke to how the Airport can be a driver for economic growth. Bailey suggested using: '....that supports or drives or contributes to the area's economic vitality.' or something along those lines. She stated that she and Davidson will work with these suggestions to come up with a draft for the next meeting. Regarding the public surveys. Bailey noted that they received 575 responses: with 80% from Iowa City. She relayed the various avenues used to get information about the survey out to the public. C. Airport Operations I. Budget — Tharp noted that the fiscal year is just about over. He stated that there aren't any real surprises in the budget and they should have a stable year-end. Odgaard asked if Tharp had prepared a graph like he did last year at this time, and Tharp stated that he will try to have this for the next meeting. 1. FY2018 Preview — Tharp noted that there are two key points in this budget —the initial funding for the 100 -year anniversary event and $5,000 for furniture replacement in the conference room. ii. Management—Tharp noted that they are currently working through the strategic planning process. iii. Events 1. Young Eagles — June 10 and 17 were Young Eagle events. Tharp noted that June 10 was the originally scheduled date, but this had to be cut short due to high winds. 2, SERTOMA — This event is planned for August 20. Tharp noted that this is a week earlier than normal. d. Mid -American Energy —Tharp stated that this came to the Commission last year, as well, but due to various reasons it was deferred. He noted that they now know the actual location of the gas line and would like to be able to recommend approval to the City Council Tharp briefly responded to Member questions regarding this issue. L Consider a resolution recommending Council approve a utility easement — Ogren moved approval of Resolution #A17-11, recommending the City Council approve a utility easement with Mid - American Energy. Odgaard seconded the motion. The motion carried 3-0, Bockenstedt and Libby absent. June 27, 2017 Page 5 e. North Commerce Park Outlot B — Tharp stated that Outlot B is the small parcel located between the Alexis Park Inn and Ruppert Road. Members briefly discussed the offer of $20,000.. which Tharp noted is backed up by an appraisal. L Consider a motion recommending Council accept purchase offer— Odgaard moved to recommend to the City Council acceptance of the purchase offer. Ogren seconded the motion. The motion carried 3- 0, Sockenstedt and Libby absent. FBO i Flight Training Reports L Jet Air — Matt Wolford shared the monthly maintenance reports with the Commission. He stated that May continued with the usual types of maintenance being done — light bulb replacement, grass mowing, and trash pick up. In June they have been doing some weed control around the hangars. An expensive item noted was the filter replacements for the various fuel system components. Wolford noted that they were able to spread some grass seed around the new hangar area, in hopes that the rain will get it started. Moving on to Jet Air business. Wolford noted that the big news is the completion of the hangar. He stated that Jet Air is looking forward to being able to use the new space- The shop has been keeping busy. with Wolford noting the addition of another mechanic. Charter flights have been busy, as well, especially in the business sector. Wolford also noted an increase in the flight training. Wolford stated that he would like to show the Commission the new hangar sometime soon, and Odgaard suggested at the next meeting. Gardinier suggested that they consider adding a flat screen monitor to the main area of the terminal building that could be used to show recent student pilots who have earned their license, for example, or to do some marketing for the Airport. She added that she has seen these used at other airports around the country. Tharp and Wolford will work together on the flat screen monitor idea. g. Commission Members' Reports — Gardinier stated that this year's Air Race Classic was very successful. She earned third place this year, her best race yet. Ogren shared that they were at the EAA Chapter meeting this past weekend. She also stated that she was able to meet Congressman Dave Loebsack recently, along with Wolford and Tharp last week. Ogren noted that she will be gone for two weeks, should Tharp need an, interim Chair during Odgaard's absence. Odgaard stated that he leaves Friday for Beijing and returns the following Friday. h. Staff Report — Tharp also noted Congressman Loebsack's visit and what they were able to briefly discuss. He then noted that he was able to speak with Bockenstedt recently and she asked that he extend her thanks to the Commission. Ogren stated that she wanted to add one more comment about the Loebsack visit. She noted that Tharp and Wofford were very impressive in their representation of the Airport. The discussion turned briefly to drones and the use of them in the immediate area. Gardinier asked if they have considered switching out the current hangar lights for LED ones. Tharp stated that they have not, as the bulbs are basically the renter's responsibility and the renter can put in LED bulbs if desired. Odgaard then spoke about the hangars up in Dubuque.. June 27, 2017 Page 6 noting that they have a fresh coat of paint on them. He asked how often the Airport does this. Tharp noted that it does not happen very often, but that they do have a project to `reskin' the hangars on their list of projects for the future. Odgaard asked if this is something they should do prior to any 100 -year anniversary celebration. Members agreed that they should look into this further. 100 -year Anniversary Committee — Ogren stated that she has not yet received any responses on the form she sent out. Tharp stated that he is over 50% done with his portion. SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday. July 20, 2017, at 6:00 P.M. in the Airport Terminal Building, ADJOURN: Ogren moved to adjourn the meeting at 7:52 P.M. Odgaard seconded the motion. The motion carried 3-0, Bockenstedt and Libby absent. -71-1-7 CHAIRPERSON CHAIRPERSON DATE June 27, 2017 Page 7 Airport Commission ATTENDANCE RECORD 2017 NAME TERM EXP. o I o t. 0 N 0 m 0 N + o, V + N o T o� 0 4 W 0 A o 0 N e 0 I 0 4 GaMinnetta 07/01/19 O/ OI rdinier OIE X X X X X X X X X X E 'E X !, - Chris 07101!19 O 1 Ogren � X I X X E X X X X X X X X X X A.Jaco6 ___.---07101118 --- Ol :i Odgaard X X X X X X X X X X E XX X Julie 07101/17 O O _ -- -- - - Bockensted l 1 Ol O! t X X EJXE X X X X X j X E X E Robert 1 OTttit/20 O -' _- - _ -I -- i '�-- Libby 1 of ' X X E O O E X X X X X LE' Key: X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused NM = Not a Member at this time July 20, 2017 Page 1 MINUTES FINAL IOWA CITY AIRPORT COMMISSION JULY 20, 2017 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Minnetta Gardinier, Christopher Lawrence, Robert Libby, A. Jacob Odgaard, Chris Ogren Staff Present: Michael Tharp, Eric Goers Others Present: Matt Wolford, David Hughes, Regenia Bailey, Jeff Davidson, Laura Routh RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: Odgaard called the meeting to order at 6:02 P.M. ELECTION OF OFFICERS: First the election of officers took place. Odgaard noted that they need to elect a new Chairperson and a new Secretary. Ogren moved to nominate Bob Libby as new Chairperson. Odgaard seconded the motion. The motion carried 40, Gardinier absent. Second, the position of Secretary was discussed. Libby nominated Chris Lawrence as new Secretary. Ogren seconded the motion. The motion carried 40, Gardinier absent. APPROVAL OF MINUTES: New Chair Libby began with a discussion of the minutes from the June 27, 2017, meeting. Ogren moved to accept the minutes of the June 27, 2017, meeting as presented. Odgaard seconded the motion. The motion carried 40, Gardinier absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSIONIACTION: a. FAAIIDOT Projects: AECOM I David Hughes I. Obstruction Mitigation — Hughes stated that since the last meeting. they did receive the official grant from the FAA The first part of the process should take about a month, according to Hughes. July 20, 2017 Page 2 ii. South Taxiway Extension — Hughes noted that the taxiway is now paved and that the contractor is in the process of completing storm sewers and grading. The plan is to reopen this to traffic within the next week. iii. North T -Hangar Restroom — (Gardiner arrived during discussion) Hughes stated that they took bids today, with eight potential bidders. Only two bids were received and were more than double the estimate, according to Hughes. He added that they are recommending rejection of the bids. Goers shared that he has looked into this and found other departments within the City running into the same thing. There is so much work right now in the Iowa City area that contractors are bidding at very high numbers. 1. Consider Resolution A17-12 accepting bids and awarding contract— Ogren moved to reject the bids received. Odgaard seconded the motion. The motion carried 5-0. b. Strategic Plan — Jeff Davidson began the strategic planning discussion for the evening. He stated that he likes to begin these sessions by restating why they are thereto begin with, which is The goat is to create a management tool for them to use for the next five years, and to get themselves to a place in five years where they want to be, from where they are right now. He then turned the discussion over to Regents Bailey. She spoke to the mission statement and what it does.. and also the vision statement, which is a more aspirational statement. Bailey began to review the various drafted options, noting that changes were made in accordance with the Commission's previous discussions. She noted that verbiage from previous statements has been carried through to these as well. After reviewing the various options. Bailey asked what Members thought and if they favored any option in particular. Odgaard asked if it wouldn't be better to have just one sentence, and Bailey noted that many times it is done that way. Gardiner stated that one sentence is typically too tong and people get lost in reading d. The discussion centered around draft option 1 and how they might change the wording there. 'It'was suggested to be used in the first sentence, but after a brief discussion, Members agreed that having "The Airpof ' sounds better. The discussion then turned to the vision statement, with Davidson now leading the discussion. He noted that the vision statement is what they see in the future, if the organization is successful. He began to review the three draft options that were prepared, noting that of the three, he thinks there is an important distinction to one of them. He asked what Members' thoughts are regarding these options. Odgaard responded, noting that the first draft brings up a new concept in stakeholders. It was noted that this is the statement that used to be the mission statement. Davidson noted that the one thing he believes to be important about the first option is the strategic goals of the City. He briefly explained how the City adopted strategic planning goals, around the time when Bailey was on Council and Davidson was in Planning, and how these goals need to now throughout the organization. Any City Council agenda item.. for example, should be consistent with the goals of the strategic plan that the Council has adopted. Davidson stated that he believes there is value in stating that the 'vision of the Iowa City Municipal Airport is to be consistent with the City's strategic plan and the goals that the elected officials for this community set forth.' Goers spoke briefly to this Jay 20, 2617 Page 3 topic, noting that the City does want the Airport's strategic plan to line up with the City's, as Davidson has stated- Tharp noted that he also received this message, that the Council would be appreciative of the Airport's goals and objectives aligning with the City's goals and objectives- He added that he did print off the Council's strategic plan for the Commission to review. Discussion ensued. with Tharp responding to Member questions and concerns, and giving them some history on the Council's strategic plan. Bailey then spoke to the Council's strategic plans and how they have changed over the years, especially when a new Council has been seated. Davidson again asked 0 Members had any questions regarding the three vision statement drafts. Ogren spoke to the second draft, noting that she does not like the wording "is viewed." She stated that it sounds like they want to change their image. She suggested taking the third draft and adding strategic goals. The wording she suggested was : The Iowa City Municipal Airport supports the strategic goals of the City of Iowa City: and is an integral community asset that contributes to the region's economic vitality and invokes community pride. The other Members agreed to this wording. Gardinier then spoke to the second draft. stating that most of the community doesn't even know about the Airport. Bailey noted that this one is more aspirational in nature. Next the discussion centered around the public survey and the Airport Commission survey results_ Bailey stated that Members need to keep in mind that the survey was to get a sense of the strengths and weaknesses of the Airport in order to use in the SWOT analysis. The public survey was available for 10 days at the beginning of June and was promoted heavily through the City's Communication Department with a press release: and Facebook and Twitter posts, according to Bailey. She stated that 575 public surveys were returned. She briefly highlighted some of the respondent data for Members, such as 464 of the 575 were Iowa City residents or 81%, and 700/ of those were east of the Iowa River and 30% were west of the river. Continuing, Bailey stated that the largest category of respondents were non-users of the Airport. She spoke to some of the various categories of respondents and the percent of respondents in each of these. Looking at the statement, 'The Iowa City Municipal Airport contributes to the quality of life in Iowa City,' with 5 being strongly agree or 1 being strong disagree, and 3 being no opinion. Of the respondents, frequent users came in at strongly agree and agree, with periodic users coming in with agree. Non-users basically had no opinion. Members discussed some of the survey results: with Bailey responding to their questions. Bailey then shared the responses when the statement, 'The Iowa City Municipal Airport contributes to the economic impact vitality of Iowa City,` was posed- A list of strengths was compiled from both the public surveys and the Commission surveys, according to Bailey. She stated that in response to the question, 'What does the Iowa City Municipal Airport do welt?' responses ranged from 'servicesbeing a popular topic, to 'diverse aviation community.' Odgaard asked Bailey for some clarification of the 'service' category. She noted that this refers to things like flight instruction, self-service fuel. FBO services, wi-fl in terminal, charter service, and courtesy car. Bailey continued to review some of the comments received before moving on to'diverse aviation community.' She reviewed some of the comments, noting that location July 20, 2017 Page 4 was noted as a strength as the Airport is 'self-contained and very accessible,' 'easy to get to downtown.' Odgaard asked what kind of comments were seen in regards to safety. Bailey responded that the comments were 'managing traffic and flight patterns well,' and `a good safety record.' Bailey then spoke to `weaknesses or needs improvement' items. She stated that this came from the question. "What doe the Iowa City Municipal Airport need to improveW There were 45 comments linked to 'facilities,' 'public awareneWmarketing' at 45 comments, and 'noise came in with 30. She noted there was a huge gap as there were then 12 comments about events. Some of the comments regarding 'weaknesses,' included 'lack of hangar space,' 'technology.' no wi-fi to the hangars,' and 'instrument and precision approaches.' Bailey stated there were also some comments about maintenance of hangars and maintenance of runways. Gardinier asked for some clarification of responses, to which Bailey responded. The 'public awareness marketing' portion netted a response that, 'The Iowa City Municipal Airport does not do a good job in sharing information as to what they are actually doing.' Matt Wolford with Jet Air asked for some clarification on the number of actual responses, and Bailey spoke to the percentages received. Under the topic of 'opportunities,' Bailey stated that they only asked for the Commission's response on this one. She then shared what the Commission's responses were. The Airport being a'community space,' was a big one; 'facility improvement' 'growth of air traffic,' and some mention of the 'South Aviation Commerce Park' were given, as well as 'attract businesses and expand services-.' Bailey addressed some of the events that were suggested that the Airport host, such as the 100 -year anniversary celebration, using Airport space for aviation -related educational training, and the sponsoring of more community events. More hangars was a big one under 'facility improvement.' 'Increasing medical traffic,and also Transient aircraft,' was mentioned, along with 'increasing businesses at the Airport. The discussion continued. with Bailey speaking to the change in pilot demographics, that it is an aging population. She noted that she was unable to find much data on this, but that Tharp stated he had some information for her to read. Bailey added that this is something to consider when it comes to things like services and flight instruction, 'Obstruction mitigation' was noted as a challenge for the Airport. Other comments included 'expanding,' 'relocating,' 'misinformation about the amount the City subsidizes for the Airport.' Yrustration linked to noise, low-flying planes.' Another comment was that the Airport was a 'playground for the wealthy' and that there was a'better use of tax dollars.' Bailey stated there were 121 comments in the additional comment section, which she thought was a good turnout. Davidson reminded the Commission that the last time they did this they received only 27 comments from the public. Bailey spoke highly of the Communication Department's involvement and suggestions in the process. Odgaard then asked what Bailey and Davidson would take from this data to use as a message, in just a sentence or two, to put into the strategic plan. Davidson noted how they handled this portion the last time a strategic plan was done. He noted that their main task is going to be developing the goals and objectives at the next Commission meeting. For the remainder of this evening, however, Davidson noted they would like to go through the existing goals and objectives, July 20, 2017 Page s as this is where they will start from. Beginning the list, Davidson noted the first goal of, 'Maintain effective management structure and strong communication with the City Council and City Administration.' He added that this goal is from the original plan, dating back to 2006. He gave a brief history of how it came about. He stated that he and Bailey believe tremendous progress has been made on this one. He stated that there are, however, a few things they cannot ignore, with one being with this relationship is the notion of succession planning. The Council will be changing over time, Tharp s position will eventually change, etc. The notion is to keep this relationship with the City a healthy one. As for'funding and increase/growth....', Davidson added that there has been tremendous improvement here as well. The operating subsidy has gone from roughly $100,00 to $10,000 to 20,000. 'Increase use of Airport for aviation and other community uses,' is one that Bailey and Davidson plan to look at the spec strategies under this and make sure there are things relevant now for the upcoming five years. 'Increase the usefulness of the Airport for economic development.' one that Davidson stated has seen some progress but that there is more room for improvement here. 'Upgrade taxiways, runways, and other Airport infrastructure,Davidson stated that on the aviation side of things, these issues have been addressed with much progress made in the past few years. Tharp spoke to some of these issues as well, noting the facility improvements that have taken place. Davidson noted that a final comment was'enhance appearance,. curb appeal, accessibility, develop public viewing area. Davidson asked if Members had any comments regarding the existing goals- Members began to discuss their views. noting that the first item has been addressed. The second item. according to Gardinier, should be reframed. Members continued to discuss what portions of this they would like to see included. Davidson noted that they can work on this area and bring it back to Members at the next meeting. Bailey asked if there was anything else Members wanted them to include with their work as they move forward on the next draft. Tharp stated that he will put a memo together using the previous goals and that he can address what they have done with respect to each one over the past five years or so Davidson spoke briefly to some of the short-term ideas they may want to consider. Gardinier asked if the survey results are available, and Bailey stated they are. She noted that she has a ,pdf of the the results, somewhere around 30 to 40 pages, that she can send to Members. Davidson stated that if there are any items such as technological advances that are coming to the Airport, that the Members should let them know so they can factor in such projects. Bailey asked if there are other trends being seen in aviation, besides the aging population, that might also be a factor. C. Airport Operations I. Budget—Tharp stated that they are officially into the FY18 budget year. He has worked with the Purchase Department and they have ordered the stacking chairs he wanted to have available for community events, and also chairs for the conference table. Tharp noted that the State has released a draft of the FYI aviation program. Iowa City did not make the list, according to Tharp. He had the chance to speak with a State programmer on this, and the IT project that was applied for was a no-go, as was parking lot paving. Tharp responded to Member questions and concerns, noting that it appears there was not enough funding to go July 20, 2017 Page 6 around. Tharp noted the need for more parking and he stated that he is recommending they move ahead with the parking lot project, paying for it themselves. The project was estimated to cost $45.000, which included about $8,000 worth of engineering. Tharp added that he could see the State funding shrinking even more in the future. Gardmier asked about the larger crowds at the Airport recently and Tharp noted charters and also community groups using the conference room. Tharp stated that if the Members are okay with it, he will continue conversations with Public Warks and see if they can come up with an actual project for the Commission to consider. fl. Management — Tharp stated that he and Josh have done the annual hangar walk-throughs. Ultimately 59 T -hangars, nine that need wire replacement, four that need upper door seats: 11 need bottom door seals, and several doors with random issues- In three hangars the lights were not working. Tharp stated that he does not have pricing at this point, but that he is getting numbers together to see what costs may be. An issue that was brought up last month was having flat screens on the walls in the terminal. Tharp stated that he spoke with Jet Air's IT person recently to talk about this idea and they came up with putting two 404nch TVs on the comer of each bay so they can be seen from most every angle. Various things can play throughout the day.. using mini -computers to serve as the 'brains' of the set-up. Costs are estimated to be around $800 for the TVs and everything needed to set this up. Members spoke briefly to what type of programming they would like to see on these screens. Tharp stated that if the Commission is okay with this, they will move ahead with the project. fit. Events 1. Sertoma —Tharp stated that this is still planned for August 20r'. He is working with the groups involved to make sure they have enough parking in the areas where it is typically needed. Gardinier asked where the taxiway project will be when Sertoma starts and Tharp responded. He noted that the taxiway will be open, but that they will not have time to get grass going yet.. He and Wolford have talked about using straw or something like that if necessary. Tharp noted that he and Goers. along with Risk Management and Engineering at the City, have had a couple of discussions about adding a handrail. They have had a second person trip and fall in this area. Goers also spoke to the situation, noting that there is no code requirement on this, but it was felt that a handrail would be a visual cue to people to prevent them from tripping. Preliminary estimates put this project around $1,000, according to Tharp. There may also be some ADA issues, but it should be fairly straightforward. Members continued to discuss such a railing and whether they would want to include the ramp area in this project. Members suggested getting estimates for both options, and agreed that if the total cost is under $2,000 Tharp should move forward with the project. July 20, 2027 Page 7 d. FBO ! Flight Training Reports I. Jet Air— Matt Wolford began with sharing the monthly reports. He stated that the main maintenance task has been mowing and weeding. They have also been busy with seeding around the new hangar, hoping to get something to start growing before the Sertoma event. Wolford then spoke to the Sertoma event and how they plan to use the new hangar as part of that. Gardinier asked Wolford if he has ever talked with the Children's Museum about having some type of exhibit at the Sertoma event Wolford stated that he is not aware of any communication with them. Tharp stated that they have suggested this to the Sertoma group in the past, but that they are the ones planning it. Everyone agreed that it would be a good idea. The discussion continued. with Members talking about the Sertoma event and other events for the community that are held at the Airport throughout the year. Wolford then spoke to Jet Air and their business. He has hired a new flight instructor, adding that she graduated from Purdue's aviation program. Also, one of Jet Airs line guys just received his pilot's license. In the shop, Wolford noted that he has hired another mechanic. Continuing, Wolford stated that today he went to an auction and they ended up buying a lot of things: such as an old fire truck from the Quad City Air Show. He continued to share with Members some of the other items that Jet Air purchased. Charter flights have been keeping them busy, as has sending new pilots for training. a. Commission Members' Reports — Ogren noted that she will be at Osh Kosh through Tuesday. Gardinier stated that she is driving to Osh Kosh on Sunday. She also added that she recently returned from San Antonio and that Stinson Field is a pretty cool airport that she would highly recommend. Staff Report— None. g. 100 -year Anniversary Committee — Ogren stated that there has been no movement here due to other obligations. SET NEXT REGULAR MEETING FOR: The nerd regular meeting of the Airport Commission will be held on Thursday,_ August 17. 2017 at 6:00 P.M. in the Airport Terminal Building. NEW HANGAR TOUR: Commission members along with staff, and Matt Wolford walked to the new hangar that had recently been built. Wolford described to members the size of aircraft which could be fit, and demonstrated the hydraulic door of the hangar. Members asked questions about the hangar to which WoHbrd responded. Wolford also showed to those present aircraft which had been parked nearby that were newly based at the airport. ADJOURN: July 20, 2017 Page 8 Ogren moved to adjoum the meeting at 8:24 P.M. Gardinier seconded the motion. The motion carried 5-0. - -r 10 -7 -7 CHAIRPERSON DATE July 20, 2017 Page s Airport Commission ATTENDANCE RECORD 2017-2018 Key. X = Present X/E = Present for Part of Meeting O = Absent CIE = Absent/Excused NM = Not a Member at this time TERM ... ... NAME Minnette _ 07101/19 O/ O f t � Gardinier X X j X X X X( X ! X X X E 'E X X Chris Ogren 07/01/18 / X X E X X X�... X X X X X X X X '.. A.Jacob 07/01/18 ! ! O/ Odgaard X X X Xl X X j X X X E X X X X Julie ! 07101117 O Bockenstedt 1 1 OI OI N X E X E XIX! X X X X E X E M Robert Libby 07/01/20 O O 1 O! X E Xi X O O E X X X X X E X Christopher 07/01/21 N N N N N N N N N Lawrence I NM M' M M M NM NM NM M M M X Key. X = Present X/E = Present for Part of Meeting O = Absent CIE = Absent/Excused NM = Not a Member at this time August 17, 2017 Page t MINUTES FINAL IOWA CITY AIRPORT COMMISSION AUGUST 17, 2017 - 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Minnetta Gardiner, Christopher Lawrence, Robert Libby, A. Jacob Odgaard, Chris Ogren Staff Present: Michael Tharp, Eric Goers Others Present: Matt Wofford, David Hughes, Regenia Bailey, Jeff Davidson None. DETERMINE QUORUM: Chairperson Libby called the meeting to order at 6:01 P.M. APPROVAL OF MINUTES: Libby began with a discussion! of the minutes from the July 20, 2017, meeting. Ogren moved to accept the minutes of the July 20, 2017, meeting as presented. Lawrence seconded the motion. The motion carried 5-0. PUBLIC DISCUSSION: None. a. FAA1IDOT Projects: AECOM I David Hughes L. Obstruction Mitigation - Hughes stated that the contractor has about another week before they finish up on this project. He hopes to be able to submit this to the FAA by the end of the month. Hughes added that they are still awaiting the overall schedule and hope to have this by the end of the month as well. Odgaard asked why it takes so long for the FAA to complete their portion, and Hughes responded, noting that this is just the way the government process goes. if. South Taxiway Extension - Hughes moved on to the south taxiway extension project, noting that this has been completed. He added that everything looks good and there are no issues to contend with. 1. Consider a resolution accepting work - Gardinier moved to approve Resolution #A17-13, accepting the south taxiway extension August17. 2017 Page 2 work as complete. Ogren seconded the motion. The motion carried 5-0. iii. North T -Hangar Restroom — Hughes noted that he made several calls and left messages, with only one return call, in regards to bids for this project. He stated that the one return call was also the highest bid they received on this project from Calacci Construction and that they told him that the bid as presented was written down wrong, that it should be more in the $107,000 range. Hughes continued, stating that during their conversation. John Calacci stated that a 'bare bones' project would be $80.000 to $90.000, on what had originally been estimated to be a $50,000 project, Members asked why the big difference in costs and Hughes responded that it has to be due to the large amount of construction in the Iowa City area currently. Gardinier asked if the City has a department that takes care of these types of projects, and Attorney Goers responded that the City would also bid out on a project like this. He added that when the City does office renovations, for example, they bid out for the work and follow the same procedures as the Commission. Gardinier asked for clarification on the bidding process and Hughes responded, noting that the project was advertised through the newspaper, the City web site, and the Council of City Governments. Hughes attempted to explain the high bid prices received and why this tends to happens when local contractors are already swamped with work. Wolford with Jet Air stated that the local plumber who does work for them stated that the project looked loo complex' for him. Tharp stated that one thing he and Hughes have discussed with regard to rebidding this project is that they could go back and make some changes.. such as just having the restroom 'roughed in' and then finishing it themselves. Members continued to discuss this project and how they would like to proceed in getting it completed- Questions were asked of Tharp and Hughes on delaying the bid process until spring, with Tharp stating that he has talked to the State and has walked them through the anticipated plan. He added that they were agreeable to work with the Airport to see this project through to completion. Wolford asked if the City has a set of plans that they use when the Parks Department puts a restroom/building in the City's parks. Hughes asked Attorney Goers if Parks would have such pians, and it they do the restrooms in the parks as a separate entity. Goers responded that he would be glad to find out the answers to these questions, if the Commission would like him to. Hughes stated that since they have some time on this project, he can look into getting some information from Dallas County on the pre -fab they have on the bike trail, as well as talk to the Parks Department at the City about the restrooms in the parks. Jeff Davidson stated that he knows of a custom-built restroom, also on a bike trail, that cost around $250,000. b. Strategic Plan — Jeff Davidson began the evening's strategic planning discussion. He reminded Members what the goal of the strategic planning is and how the addition of 'success indicators' wilt be of great help to them in measuring progress. He stated that first he would like to have Tharp go over the annual report that was recently completed. Tharp began by sharing a summary of the accomplishments of the last five-year strategic plan. He explained how he laid out the summary. noting that he tried to show the steps for achieving each of August 17, 2017 Page 3 these goals. Tharp began going through the summary, addressing each of the accomplishments by explaining how these were met and what steps were taken in each.. Tharp added that with the reduction of their outstanding debt, the support that was previously needed to maintain operations has been reduced. He noted that the various grant programs are what help to keep aviation going, adding that several projects over the years were supported with both federal and state dollars. Continuing, Tharp spoke to the various events that have taken place at the Airport and the continued plan to host these. He also spoke to the conference room in the terminal building and the increased interest in using it for meetings. Working with Jet Air, Tharp noted the various Chamber of Commerce events they have hosted together, as well as with ICAD and other community groups. He also noted how these groups are important when it comes to economic development at the Airport. With the updating and improving of Airport infrastructure, Tharp noted the opportunities for more businesses to use the Airport, and also to bring more businesses to the Iowa City area. Davidson then continued, noting that a lot of what Tharp just reviewed is what they will be continuing to work on in the new five-year plan. He added that he and Bailey believe they should be able to wrap things up by October, November at the latest. He stated that they would like to walk through the draft goals, strategies, and success indicators today, giving Members the next month in which to review these and pass along any comments. At the September meeting, the Commission could review the draft pian, and if no changes are needed. the final plan could be adopted at the October meeting. The final step then, according to Davidson, would be for the Commission to present the report to the City Council. Looking first at the Mission Statement. Davidson noted that this is the reason for the organization's existence, The Vision Statement then, according to Davidson, is what the Commission sees in the future, if the Iowa City Municipal Airport is successful. Davidson asked if Members had any final changes they would like to make to these two sections. Speaking to the SWOT analysis, Davidson noted the survey results that were received this time around. Moving to the goals as outlined by Tharp, Davidson noted that with the first goal they have made tremendous accomplishments here. This is also one of the goals that they believe should continue to be part of the strategic plan. The second goal, according to Davidson, is another that needs to continue, with the South Aviation Commerce Park out there as a distant goal. The third and fourth goals are ones that need to be addressed in the next five years, as well, and those will be included in the new plan. The fifth goal is one that can definitely be checked off the list, according to Davidson. The runway extension and all that went along with it has been very successful. The final goal is one that Davidson also noted as staying in the new plan. Bailey then moved on to reviewing draft goals that they have prepared for the Members' to respond to. The first goal is 'Continue strong communication with the City Council. City administration,' with the addition of 'Seek opportunities to collaborate with other City departments.' She further noted that using the strength of the City and the various departments could open up opportunities for August 17, 2017 Page a collaboration. Continuing with the goals: 'Develop and maintain adequate funding mechanisms for Airport operations and facility improvements and maintenance;`Increasing the use of the Airport for aviation and other community uses,' again another carry-over from the previous strategic plan: 'Maintain the safety and aesthetic appeal of the Airport infrastructure:' and 'Implement the Airport's Master Plan' Bailey noted that the Commission will want to keep the master pian in front of them, along with the strategic plan, as they work with Tharp on the various projects they want to complete. After a brief review of the goals, Bailey moved into more detail on each one. She touched on the issue of having the Airport's strategic plan line up with the City Council's strategic plan. She emphasized the importance of collaborating with other City departments, and perhaps even other entities within the County, which would align them with the Council's plan. Bailey continued showing the linkages between the Airport's plan and the Councii's plan, noting that it will be important to point these out when they present their plan to the Council. This then led her to review the strategies needed to reach these goals. Speaking to the City Council's plan and the issue of communication. Bailey stated that at least quarterly a Commission Member or the Operations Specialist needs to attend a Council meeting to give them an update. She noted why this is a good thing, pointing out that these meetings are televised, thus giving the Airport even more exposure to the public. Members then spoke to this, agreeing that they should take part in attending Council meetings and presenting an update. Continuing, Bailey spoke to a new strategy -'Provide a tour of the Airport and Airport facilities to City Council Members and City Council candidates in election years.' She added that this is an election year. She emphasized the importance of having the Commission Members involved. not just the Airport Specialist. Another new strategy -'Once a Commission Member is affirmed, they should appear before the Council.' Bailey noted how this would then give a face to the newly appointed position, introducing the person to Council during the `Community Comment' portion of their meeting. Speaking to the Parks and Recreation's newly completed master plan, Bailey noted that for this side of town, it is identified as having a lack of parkland and green space. She stated that perhaps there is an opportunity to collaborate on making the viewing area more of a green space for the area. Speaking to the success indicators, Bailey gave some examples of this, such as, 'Did you present the strategic Wan to the City Council?' Another example given was, 'Did we prepare the annual report and present it within two months of the end of the fiscal year?' Bailey reiterated that these are items they can check off as they are completed, thus giving them a way to measure the progress. She continued to work through some ideas for success indicators for each of the goals, emphasizing ways to keep things current as the Airport operations move ahead. Under the funding sources goal, Bailey stated that private funding might be a source as well, if such would even be available. She then spoke to Airport revenue covering Airport operational expenses, as well as receiving adequate grant funding to upgrade and maintain high-quality facilities. Looking at increasing usage at the Airport. both aviation related and not, Bailey stated that they will need to communicate more. There needs to be some type of marketing plan and messaging that will need to take place, in order to increase such usage. August 17, 2017 Page 5 Using the upcoming 100" anniversary celebration, Bailey noted that this is a perfect example of how they will need to increase promotion of the Airport and any events taking place there. This might be a place for collaboration with the City's Communications Department. The City's Economic Development staff would be another avenue for possible collaboration, according to Bailey. Davidson and Bailey both spoke to how Economic Development might be able to play a role in increased business at the Airport. Moving on to the goal of maintaining the safety and aesthetic appeal of the Airport infrastructure, Bailey brought up the issue of needing a sidewalk along Riverside Drive and how the Airport might want to advocate for this getting done. Members spoke to the nearby trail system and the possibility of bringing that across the road. She briefly touched on aesthetics at the Airport and the viewing area, and then wrapped up the draft goal discussion. Davidson asked that the Members give some thought to what has been proposed and submit any comments or questions to Tharp. who can then forward them on to Bailey and Davidson. Members spoke again to possible collaboration with the Parks Department and working together to upgrade the viewing area at the Airport. They also touched again on increasing events at the Airport, citing examples such as monthly bar-b-que cookouts and other family events. C. Airport Operations L Budget — Tharp stated that they have received a quote on painting the three T -hangars on the north side. The estimate is about $6,000 per building. He added that he would like to get a few more quotes before they make a final decision. Tharp stated that he has been working with Ted, Jet Air's IT person, on getting flat screens going on the main floor of the terminal building. Another capital project in the works is the replacement upgrade of the tank monitoring station in the University hangar. Tharp stated that he has an initial quote of about $12,000 and he is reaching out for more quotes here as well. 1. 2017-2018 T -Hangar Rates — Tharp stated that anyone who is a current T -hangar tenant would need to recuse themselves from this part of the discussion. Gardinier and Libby recused themselves at this point. Continuing, Tharp stated that he did his usual surveying of other Airports to see what they are currently charging and everyone has stayed flat on their rates, except for one airport who had a $10 increase. He shared what he is experiencing with his waiting list and added that it is taking him longer to fill these. Tharp stated that his recommendation for T - hangar rates is to keep them the same. He noted that if they were to adjust for inflation, it would be roughly a 5% increase. It was two years ago that an adjustment was made to the south T - hangars, according to Tharp. Ogren stated that she agrees with Tharp's recommendation, as did the other Members, Odgaard and Lawrence. Tharp added that with a decrease in mowing, as the seasons change, he would like to take advantage of Jet Airs maintenance people being able to help with hangar maintenance items, such as door seals and upgrading to LED lighting. H. Management—None. iii. Events August 17, 2017 Paye o 1. Pancake Breakfast — Tharp stated that the pancake breakfast is officially being put on by the Optimist Club, as was touched on earlier in the evening. He added that the SERTOMA group, after disbanding, has basically joined in with the Optimist Club. Gardinier asked if there has been much advertising done for it, and Tharp responded that he did hear a radio ad earlier today in fact. Wolford added that it appears there will be more going on during this years breakfast, such as the bookmobile being present and the Children's Museum. Tharp explained some other changes: such as with parking, that will be taking place this year. Tharp noted that a few weeks ago he was able to participate with the University when Senator Ernst was in town. She took a tour of the University's tab while here. & FBOI Flight Training Reports i. Jet Air — Matt Wofford shared the monthly maintenance reports with Members. He noted some of the highlights for them, with mowing topping the list, along with weeding and preparing for the pancake breakfast. Gardinier asked what the board at the terminal building refers to and Wolford explained what this entailed. Libby stated that the Jet Air crew has been doing a great job around the Airport. Wolford also spoke about his part-time help being gone now that school is back in session. He recently hired one full-time worker and may have a few part-time positions open soon. Charters, sales, and maintenance have all been about the same, according to Wolford, and everyone is keeping busy. He also shared that they have hired several new pilots. including one to work as a flight instructor. Wolford stated that they hope to get wi-fi going to the new hangar soon. as well as security cameras. Gardinier asked about the overgrown shrubbery by the highway and if it could be removed and replaced with something nicer. Tharp responded that he can look into this and that he will put this on the agenda for next month's meeting. e. Commission Members' Reports — Gardinier stated that she will be flying somewhere to watch the eclipse. Members briefly spoke to this. Tharp noted that he may be interested in doing this as well. Ogren stated that Oshkosh had a good event this year and that she saw Gardinier at the show. Lawrence stated that it was a good show, as he also attended. f. Staff Report—Tharp stated that August 28-30 is the Four States Regional Conference in Kansas City that he will be attending. September 15-18, Tharp will be off that Friday and Monday for a four-day weekend. He again spoke to the eclipse and the possibility of going somewhere to see it. g. 100 -year Anniversary Committee — Ogren stated that today she received Tharp's responses and they agreed the committee should try to meet as a group and go over the questions before the next Commission meeting- After some discussion, the subcommittee agreed to meet on Monday, September 11. August 17,2017 Page 7 SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday. September 21 2017. at 6:00 P.M. in the Airport Terminal Building. ADJOURN: Ogren moved to adjourn the meeting at 8:15 P.M. Lawrence seconded the motion. The motion carried 5-0. CHAIRPERSON I DATE August 17, 2017 Page 8 Airport Commission ATTENDANCE RECORD 2017 Key- X = Present XJE = Present for Part of Meeting O = Absent OIE = AbsentJExcused NM = Not a Member at this time TERM ....._ .......... T -..._ vI I NAME EXP. St o Z! a m S� i Q, a R i W W W W V V V V V V V V Minnetta 0710119_-- _---- - -- OI Gardinier X X X X X X X E 'E X X X Chris Ogren 07/01718 X X X X I X X X X X X X X A.Jeeo6 - ---07101N8 O7 Odgaard X X X X % X E X X X X X Julie 07/01117 OI 101 N N Bockenstedt OtE X X X X X X E X E M M - -_-- -- -- - — Robert Libby 07�O1t20 O Of X O O EX X X I X X E X X FChristopher- --- 07!01121 - -- N N N N N N N - -- Lawrence -._ NM NM M M M M NM M M M X X Key- X = Present XJE = Present for Part of Meeting O = Absent OIE = AbsentJExcused NM = Not a Member at this time September 21, 2017 Page 1 MINUTES FINAL IOWA CITY AIRPORT COMMISSION SEPTEMBER 21, 2017 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Christopher Lawrence, Robert Libby, A. Jacob Odgaard, Chris Ogren Members Absent: Minnetta Gardinier Staff Present: Michael Tharp, Eric Goers Others Present: Matt Wolford, David Hughes, Regenia Bailey, Jeff Davidson, Barb Peterson RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: Chairperson Libby called the meeting to order at 6:00 P.M., after declaring a quorum. APPROVAL OF MINUTES: Libby began with a discussion of the minutes from the August 17, 2017, meeting. Odgaard moved to accept the minutes of the August 17, 2017, meeting as presented. Ogren seconded the motion. The motion carried 4-0, Gardinier absent. PUBLIC DISCUSSION: None. a. Event Host Request for Alcohol — Tharp stated that the Shatter House is working with Jet Air to host an event at the Airport on October 13, and that they would like to be able to serve alcohol at this event. He noted that staff is recommending approval of this request. The event will be held in Jet Air's new hangar, hangar N. Members briefly discussed the need to look at their policy concerning such requests, for both public and private events. The vote was unanimous to allow the request for alcohol to go forward. b. Strategic Plan — Bailey began the discussion with Members, stating that tonight's goal is to confirm the goals, strategies, and success indicators that were discussed at the previous meeting. She shared the draft document with Members, noting that on the front it says'2019-2023.' She also made the September 21, 2017 Page 2 suggestion of having a group photo with everyone, noting how the Council has done this with their plan. Davidson then began walking the Commission through the draft plan, beginning by reiterating how the Airport's plan is consistent with the City Council's strategic plan goals. He stated that this is something the Commission will want to highlight with the Council. Starting with the first goal — continue strong communication with the City Council. City Administration; seek opportunities to collaborate with other City departments — Davidson noted that this goal is one that was stressed the most 10 years ago when the initial plan was done, in order to improve relations with the City. He stated that everyone has done a great job rectifying this situation, but that it is something they should still continue. The City Council's goal of 'enhancing community engagement and inter -governmental relations is directly related to this goal. At this point Davidson asked the Chair if he should continue going through each goal at this point. The question was asked if there were any significant changes from the last meeting, and Davidson stated that they were not, that they did not receive any new information to add to the strategic plan. Continuing, Davidson highlighted some specific areas for Members. On the third bullet, it states that 'at least quarterly an Airport Commission Member or Airport Operations Specialist will attend City Council meeting and give an update on activities.' He asked if 'quarterly' is the timeframe the Commission would like to keep here. Members briefly discussed this. with Tharp giving suggestions on how they might want to handle this. After continued discussion. Members agreed that at least twice per year' should cover regular updates, with more being added if necessary. Davidson then spoke to the visibility of the Airport and ways to let the public know about them. Moving on to the success indicators. Davidson noted that this will give Members a more complete plan. Speaking to the annual report presentation to the Council. Davidson noted that this would give them a deadline of September V. He asked if this is okay or if Members want to make changes here. Tharp spoke to this, noting that typically he does the annual report in February and explained why it works out better for the Airport to do this. After some discussion, Members agreed that it should remain within two months of the end of the calendar year,' instead of the 'fiscal year.' Moving to the second goal — develop and maintain adequate funding mechanisms for Airport operations. facility improvements, and maintenance — which is consistent with the Council's goal of 'maintain a solid financial foundation.' Speaking to the amount of funding received from the City itself, Davidson asked Members if they feel they need a percentage in here or not Members discussed this issue. with Lawrence noting that he believes they should leave this in the goal, that there is a general perception in the public that airports consume a lot more local funds than they actually do. Members agreed that they would like to have the 10°% here, with the wording of 'Airport's operating budget added. Ogren questioned the use of'adequate fundingin this goal, and also the strategy of 'increase revenue.' She stated that they have done this and she questioned what the expectation is in terms of this. Continuing. she noted that while increasing revenue is a good thing, she questioned how much of that is what they are working towards versus providing a good service. Bailey suggested the wording: 'maintain adequate revenue generated by Airport operations by regularly reviewing and revising.' September 21, 2017 Page 3 The third goal — increase use of the Airport for aviation and other community uses— is related to the Council's goal of 'enhancing community engagement and inter -government relations.' Davidson stated that in reading through the strategies, he believes the Commission may want to consider bringing in someone who has expertise in marketing strategies. Speaking to the success indicators, Davidson noted that to accurately measure some of these goals, data will need to be collected. Speaking to the final bullet point, at feast two new economic development ventures at the Airport within the next five years, he asked if this is realistic or not. Bailey stated that this would most likely involve some specific type recruitment, where perhaps a brainstorming type of meeting with the City's economic development coordinator could take place. Ogren questioned this goal, stating that it may be more work than they think. Bailey then suggested the wording of'pursue' these economic development ventures. Members briefly discussed this idea and agreed to these changes. The fourth goal — maintain the safety and aesthetic appeal of the Airport and Airport infrastructure— Davidson noted that this is the non -aviation side of operations. This includes such things as sidewalks, painting of hangars, landscaping, as well as the parkland greenspace they have discussed- Ogren suggested they specify which hangars would be painted, as it would be the north hangars. She also questioned the idea of 'regular painting' of the hangars being realistic. Discussion then took place among Members regarding this issue. They agreed that if they were to make this a budget priority, it would then get done regularly, which has not been the rase in the past. The Commission also agreed that aesthetics are what will help bring additional business. Moving to the final goal —Airport master plan — Davidson stated that this is fairly straightforward. He asked if Members had any questions or comments at this point. Odgaard noted that the Airport's 100 -year anniversary is coming up next year and that he did not see this anywhere in the goals. It was noted that the strategic plan is for 2019, and the celebration/anniversary is in 2018. Bailey pointed out that in the 'marketing plan,' it does mention that a celebration will be taking place. Continuing: Bailey stated that they will make the changes that the Commission discussed today and will then get the updated version to Members. The target is to adopt the strategic plan at the October meeting, unless there are additional changes needed. C. PAAADOT projects: AECOM t David Hughes I. Obstruction Mitigation 1. Environmental Assessment - Hughes first gave Members some background on the environmental assessment (EA) and how they got to this point. He noted that this was proposed in July of 2017, with the EA process slated to be completed in May of 2018. Hughes stated that the process got off to a late start, as the grant did not come in until mid-July. At this point the initial submittal has been made to the FAA. He spoke further to this, noting how the recently completed master plan addresses the obstruction mitigation issues. Speaking to the first phase of the environmental process, Hughes noted that there is an architectural and historic component. He shared information from this report, noting the history of the Airport itself, Continuing, Hughes stated that the FAA has done their initial assessment of the documents and that they are ready to September 21, 2017 Page 4 forward them on to the State Historic Preservation Office. The EA is expected to be ready for public input by the end of the year. Tharp then spoke to the November/December timeframe, noting that there will be public hearings and neighborhood meetings held at that time. He expects to have more information regarding these meetings by next month's Commission meeting. The discussion continued, mainly along the lines of funding that is expected to be available at both the state and federal level. if. North T -hangar restroom — Hughes stated that they plan to bring this up again at the November meeting so they can begin the bidding process. d. Airport Operations L Budget— Tharp stated that the FY19 budget season is rapidly approaching. He suggested the subcommittee meet, especially in light of the master plan and strategic plan goals that have recently been completed. He noted that they should probably look at some of these goals and see how they can fit them into the budget. Obtaining pricing estimates and other such data will be necessary in order to prioritize these goals. Tharp stated that they may need to have a special work session in order to approve what the Airport would be submitting to City Hall for their FY19 budget. After further discussion, Members set a budget work session for Thursday, October 5 at 6:00 P.M. fi. Management - 1. Front (Riverside Drive) Greenspace — Tharp then spoke to this issue, noting that the Commission had shown an interest in making some changes to the area that fronts Riverside Drive. He noted that to the south there is some overgrown shrubbery that isn't too bad, but as you go north the area is very closed in with growth. Odgaard suggested they add another Airport sign, like the current one. Tharp stated that he will try to get some pricing together prior to the budget meeting. Members continued to share their ideas on how they might improve the aesthetics around the front entrance and grounds of the Airport. fit. Events — Tharp stated that other than Shelter House's event in October, nothing else is planned for the rest of the year at this point. He spoke briefly to the pancake breakfast, noting that it was a success again this year. e. FBO 1 Flight Training Reports L Jet Air— Matt Wotford with Jet Air began with the monthly maintenance reports for August and September. He highlighted some items for Members — extra trimming and getting ready for the pancake breakfast; picking up trash; filling in of holes and ruts; cleaned the floors in hangar N/M; and replaced hangar 20's door knob. Moving to September, one big dem was painting of the men's restroom in the terminal building. Speaking to Jet Air, Wolford noted the upcoming Shelter House event in October. He shared that Jet Air will have a booth, through their fuel supplier, at the upcoming aviation conference. Wolford noted that this conference is the largest in the world. This year the event is being held in Las Vegas, October 10— 12. He also spoke to some upcoming ground school programs they are planning. Continuing. Wolford stated that they September 21, 2017 Page 5 are keeping busy with all aspects of their business. He added that they have hired two more pilots, one based out of Illinois and the other lives in West Branch. Commission Members' Reports — None. g. Staff Report—Tharp spoke about the upcoming Council orientation meeting. He believes the time is 5:30 to 7:30 P.M. at the Eastside Recycling Center. It is basically a candidate orientation meeting where the City department heads will speak about their departments and what they do in relation to the city. h. 100 -year Anniversary Committee — Ogren stated that the fuel survey was sent off earlier this week. Tharp stated that in the nerd few weeks he would like to have another meeting so they can put a vision to this event and start to move forward. SET NEXT REGULAR MEETING FOR The next regular meeting of the Airport Commission will be held on Thursday. October 19. 2017. at 6:00 P.M. in the Airport Terminal Building- The special budget work session will be Thursday. October S. 2017. at 6:00 P.M. ADJOURN: Ogren moved to adjourn the meeting at 7:35 P.M. Odgaard seconded the motion. The motion carried 40, Gardinier absent. 0 7 CHAIRPERSON DATE September 21, 2017 Page 6 Airport Commission ATTENDANCE RECORD 2016-2017 Key. X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused TERM 1 N w a m m NAME EXP. Minnetta 07/01119 O Gardinier Ol Ot I 1 1 X X X X X E E X X X E 4 Chris Ogren 07/01/18 X X X X X X X X X X (x --��� A.Jacob 07/01/18 O1 x Odgaard 1 X X X X E X x x l x x Julie 07101/17 O/ 01 N N N Bockenstedt X X X X X E X E M M M Robert Libby 07101/20 Ol X O I OIE X X X X X E X X Christopher 07/01/21 N N N N N X Lawrence z M NM NM NM M M M M X Key. X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused - IP13 EideBailly CPAs & BUSINESS ADVISORS December 11, 2017 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the financial statements of the City of Iowa City, Iowa, (City) as of and for the year ended June 30, 2017, and have issued our report thereon dated December 11, 2017. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under Uniform Guidance As communicated in our letter dated February 14, 2017, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We have provided our 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 dated December 11, 2017 and our Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 11, 2017. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. What inspires you, inspires us. Let's talk. eidebailly.com 1545 Associates D., SIe. 101 Nbq^ Us 52002-2299 i T563.556.1790 I F 563557.7842 I EOE Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. During the year ended June 30, 2017, the City changed the application of their accounting policy with respect to Notes Receivable. The accounting change has been retrospectively applied to the financial statements beginning July 1, 2016. No other signficant new accounting policies were adopted, and the application of other existing policies was not changed during the year ended June 30, 2017. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on 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 markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are the incurred but not reported health, property, liability, and workers' compensation insurance liability, the other postemployment benefits liability, the landfill closure and postclosure care liability, and the net pension liability. 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 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. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City's financial statements relate to the net pension liability. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Corrected and Uncorrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. There were no such misstatements noted in performing the audit. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management that are included in the management representation letter dated December 11, 2017. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, business conditions affecting the entity, and business plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors. Modification of the Auditor's Report We have made the following modification to our auditor's report. Emphasis -of -Matter Fund Balance Restatement As discussed in Note 14 to the financial statements, the City identified a change in accounting principle relating to Notes Receivable. Accordingly, adjustments were made to restate beginning fund balances. Our opinion is not modified with respect to this matter. This report is intended solely for the information and 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 �/-7�' Dubuque, Iowa t N Comprehensive Annual rmancIM Report COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2017 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA Introductory Section Tab CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2017 Page INTRODUCTORY SECTION Tableof contents................................................................................................................................ I Letterof transmittal............................................................................................................................ 3 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 Cityorganizational chart .................................................................................................................... 13 Cityofficials....................................................................................................................................... 14 W 1►/_\C[ej /_\ IG9 D[iI Y G]CI INDEPENDENT AUDITOR'S REPORT......................................................................................... 15 MANAGEMENT'S DISCUSSION AND ANALYSIS.................................................................... 19 BASIC FINANCIAL STATEMENTS Government -wide financial statements Statementof net position............................................................................................................. 30 Statementof activities.................................................................................................................. 32 Fund financial statements Balance sheet — governmental funds............................................................................................ 34 Reconciliation of the balance sheet of the governmental funds to the statement of net position. 35 Statement of revenues, expenditures, and changes in fund balances — governmental funds ....... 36 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities..................................................................... 37 Statement of net position — proprietary funds.............................................................................. 38 Statement of revenues, expenses, and changes in fund net position — proprietary funds ............ 40 Statement of cash flows — proprietary funds................................................................................ 42 Statement of fiduciary assets and liabilities................................................................................. 44 Notes to financial statements.......................................................................................................... 46 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule—budget and actual — all governmental funds and enterprise funds — budgetary basis.................................................................................... 88 Budgetary comparison schedule— budget to GAAP reconciliation ................................... 90 Note to required supplementary information — budgetary reporting ................................... 91 Schedule of the City's proportionate share of MFPRSI net pension liability ........................ 93 Schedule of City's MFPRSI contributions............................................................... 94 Note to required supplementary information —MFPRSI pension liability ........................... 96 Schedule of the City's proportionate share of IPERS net pension liability .......................... 97 Schedule of City's IPERS contributions.................................................................. 98 Note to required supplementary information—IPERS pension liability ............................. 100 Required supplementary information — schedule of funding progress for health and dental plans.......................................................................................................... 101 COMBINING FUND STATEMENTS Combining balance sheet — nonrnajor governmental funds............................................................ 104 Combining statement of revenues, expenditures, and changes in fund balances — nonmajor governmentalfunds...................................................................................................................... 105 Combining statement of net position — nonmajor enterprise funds ................................................ 108 Combining statement of revenues, expenses, and changes in fund net position — nonmajor enterprisefunds............................................................................................................................ 109 Combining statement of cash flows — nonmajor enterprise funds .................................................. 110 Combining statement of net position — internal service funds ........................................................ 112 Combining statement of revenues, expenses, and changes in fund net position — internal service funds............................................................................................................................................. 113 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2017 Page COMBINING FUND STATEMENTS (continued) Combining statement of cash flows — internal service fund............................................................ 114 Statement of changes in assets and liabilities — agency funds......................................................... 116 STATISTICAL SECTION (UNAUDITED) Netposition by component................................................................................................................. 119 Changesin net position...................................................................................................................... 120 Fund balances — governmental funds................................................................................................. 122 Changes in fund balances — governmental funds............................................................................... 123 General government tax revenues by source...................................................................................... 124 Assessed and taxable value of property.............................................................................................. 125 Property tax rates — direct and overlapping governments.................................................................. 126 Property tax budgets and collections.................................................................................................. 127 Principaltaxpayers............................................................................................................................. 128 Principal water system customers...................................................................................................... 130 Sales history and total water charges.................................................................................................. 131 Principal sewer system customers...................................................................................................... 132 Sales history and total sewer charges................................................................................................. 133 Ratios of outstanding debt by type..................................................................................................... 134 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 135 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures..................................................................................................................................... 136 Computation of direct and overlapping debt...................................................................................... 137 Legal debt margin information........................................................................................................... 138 General obligation debt annual maturity schedule............................................................................. 139 Schedule of revenue bond coverage................................................................................................... 140 Revenue debt annual maturity schedule............................................................................................. 141 Revenue debt annual maturity by funding source.............................................................................. 142 Demographic and economic statistics................................................................................................ 144 Principalemployers............................................................................................................................ 145 Full-time equivalent city government employees by function........................................................... 146 Operating indicators by function........................................................................................................ 148 Capitalassets by function................................................................................................................... 149 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............................................................................................................................. 151 Independent auditor's report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance............................................................. 153 Schedule of expenditures of federal awards....................................................................................... 155 Notes to the schedule of expenditures of federal awards................................................................... 159 Schedule of findings and questioned costs......................................................................................... 160 7 December 11, 2017 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa ► r I Wang 1 CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAER) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2017 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. Eide 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, 2017. 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 Title 2 U.S. Code of Federal 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 Auditing Standards" is included in the Compliance Section of this 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 493 full-time and 44 part-time permanent municipal employees and 405 temporary employees, including a police force of 80 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 I 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 2017 of 33,564 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. Established firms continue to prosper and expand in Iowa City and there are opportunities for growth of new businesses. Overall, employment has remained steady as evidenced in the unemployment rate for Iowa City, which continues to remain low at 2.9% for the month of June 2017, as compared to 3.2% for the State of Iowa, and 4.4% 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 172 new single-family houses in 2016 as compared to 137 in 2015; multi -family dwelling units added during fiscal year 2016 was 556, compared to 499 in 2015; and mixed commercial/residential developments added 340 dwelling units in 2016 versus 47 residential units in 2015. Altogether these housing additions totaled 1,068 units valued at $206,478,670 in 2016 versus a total of 683 units valued at $92,701,042 in 2015. In addition to an increase in residential construction in 2016, the City also had an increase in commercial construction. The value of permits for commercial construction increased by $50,415,500 to $62,656,986 from 2015 to 2016, and the value of remodeling permits for residential and commercial increased by $62,046,685 to $93,087,526 from 2015 to 2016. 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 2016 is estimated to be 74,398 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 2 5. Enhance Community Engagement and Intergovernmental Relations • Provide timely and appropriate input on the ICCSD's planned 2017 bond referendum • Televise regular City Council work sessions • Significantly improve the Council and Staff's 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, 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 flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. The new district 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. An $8.5 million hazard mitigation grant from the State of Iowa assisted the City in removing the public facilities in this area and then converting the area into a riverfront park and wetland. Construction of phases I and 2 of the park began in 2017 and are expected to be completed in 2018. On the north side of the Riverfront Crossing area, the University of Iowa recently constructed the Voxman School of Music, and there are also several public and private developments under various stages of 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 also completed construction of a $15.3 million, 600 space parking garage to service the growth in this area in 2017. 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 and enhancements for the Washington Street corridor were completed in 2017 and reconstruction of Black Hawk mini -park and the downtown pedestrian mall are currently under design and are planned for 2018 and 2019. Other buildings in the downtown that are undergoing or have recently completed major re- development include the Wilson Building and public space is being 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 estimated to be $49 million and will be assisted with tax increment financing. This project is currently under construction. In the Towncrest commercial area, City staff is working to facilitate redevelopment of 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. A 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 under construction as of June 2017. The Riverside Drive commercial area is an area that stretches from the University of Iowa campus to the intersection of Highways I and 6 and is across the river from the Riverfront Crossings development area. The development of a 4 -story, $16.1 million multi-family/student housing development in the Riverside Drive area was completed in late 2016, and adjacent to this development several new retail spaces including a gas station/marketplace were also constructed. The City is developing a streetscape plan for this area which will include lighting, trails, landscaping, and other amenities and improvements. Construction of the streetscape improvements are expected to begin in 2017. Adjacent to this area is the City's aging public works complex, which is being targeted for replacement and redevelopment. A plan for replacement is underway with construction of a new Public Works Facility being designed during 2017 and construction to begin in 2018. Long-term Financial Planning It is our intent to support the major initiatives through budget appropriations, departmental operations, and employee management so that the organization as a whole is moving in the same direction. 8 A significant influence in the preparation of the three-year financial plan (FY2017 — FY2019) was the passage of property tax reform (SF295) by the state legislature in 2013. The property tax reform bill had multiple components including a property tax rollback for commercial and industrial property, which reduced the taxable value of these property types. The bill established a State funded "backfill" to reimburse the City for lost property tax revenues due to the commercial and industrial rollback. The State "backfill" payments began in fiscal year 2015 but will be capped at the fiscal year 2017 levels for years thereafter. The cumulative reduction in commercial and industrial property tax revenues due to this rollback are estimated to be $16,484,000 between fiscal year 2015 to fiscal year 2024, and the maximum reimbursement from the State during that time period would be $15,789,000 for a net loss in revenues of $695,000. For fiscal years 2015 through 2017, the City received actual State "backfill" payments for the commercial and industrial rollback totaling $1,048,359, $2,080,228, and $1,582,567 in fiscal years 2015, 2016, and 2017, respectively. This bill also limited the annual taxable valuation growth of residential and agricultural property to 3 percent, instead of the previous limit of 4 percent. The impact of this provision is that the taxable percentage of residential property is expected grow at a slower pace. Without this change, the estimated taxable percentage of residential property was estimated to be 60.85°/% in fiscal year 2024. With this provision in place, the estimated taxable percentage in fiscal year 2024 is estimated to be 55.11%, a reduction of 5.74°/x. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $21,078,000 from fiscal year 2015 to fiscal year 2024. The City will not receive any money from the State due to lost revenue from this provision. SF295 also established a multi -residential property classification that includes mobile home parks, assisted living facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties to eventually tax them similarly to residential property, rather than commercial, by fiscal year 2024. The estimated cumulative loss from fiscal year 2015 to fiscal year 2024 is $15,684,000, which will not be reimbursed by the State of Iowa. Fiscal year 2017 was the first year for this new class of property, and the estimated lost revenue in fiscal year 2017 from this provision is $1,200,000. Due to the passage of S17295, the City estimates its net revenue losses to be $3,033,000 from fiscal year 2015 through fiscal year 2017. The cumulative net revenue loss from fiscal year 2015 through fiscal year 2024 is estimated to be $37,457,000. It is possible that this could affect the City's ability to finance services at current levels without finding other revenue sources or more efficient ways to deliver services. 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 continues 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 $16.533 in fiscal year 2018. This has been a reduction of $.736 per $1,000 of assessed value or 4.26°/% over that time period. E In looking at expenses for the FY17 — FY19 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 607.66 in FY15 to 601.89 in FY18. In addition, public safety pension contribution rates have decreased slightly in FY18 but are projected to increase slightly in FY19. The City has averaged an increase in its health insurance premium rates of approximately 2.5% over the previous five years, and is not projecting any dramatic changes to this trend in FY19. Employee contributions, deductibles, and out-of-pocket maximums are expected to increase in FY18 and FY19. 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 existing 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 existing 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, 2016. 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-two 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 Distinguished Budget Presentation for its annual appropriated budget beginning July 1, 2017. 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 sixth 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, 2017. 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, TaraLynne Atkins and Angie Ogden and Senior 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 II 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, 2016 *4*1W A Executive Director/CEO 12 City of Iowa City Organization Chart Airport City Attorney Commission Airport City Attorney Airport Operations City Attorney Fire Administration Emergency Operations Fire Prevention Training Finance Administration Accounting Purchasing Revenue Risk Management Information Technology Services Community City Council City Manager City Manager City Manager Communications Office Human Resources Human Rights Economic Development Police Administration Support Services Field Operations City Clerk City Clerk City Clerk Parks & Recreation Administration Recreation Park Maintenance Cemetery 13 Library Board Library Library Operations Library Foundation Senior Center Senior Center Operations Transportation & Resource Management Administration Parking Public Transportation Public Works Neighborhood & Development Services Administration Engineering Streets Administration Wastewater Development Services Water Neighborhood Services Refuse Collection Metropolitan Planning Landfill Organization of Johnson County Storm Water Equipment 13 Library Board Library Library Operations Library Foundation Senior Center Senior Center Operations Transportation & Resource Management Administration Parking Public Transportation 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, 2017 ELECTED OFFICIALS Jim Throgmorton Kingsley Botchway II Susan Mims Terry Dickens Rockne Cole Pauline Taylor John Thomas APPOINTED OFFICIALS Geoff Frain Kellie Fruehling 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 Chief of Police Ashley Monroe Douglas W. Boothroy Susan Craig Ron Knoche Chris O'Brien Linda Kopping John Grier Juh Seydell Johnson Dennis Bockenstedt Jody Matherly 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 November28,2011 July 10, 2000 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 January 23, 2017 Financial Section Tabs EideBailly. CPAs d BUSINESS 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, 2017, 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 What inspires you, inspires us. Let's talk. eidebailly.com 15A5 A..d.le Dr., St.. 101 i Dubuque, IA 52002-2299 i T 563.556.1790 i F 563.557.78A2 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, 2017, 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. Emphasis of Matter Fund Balance Restatement As discussed in Note 14 to the financial statements, the City has elected to change its accounting method for Notes Receivable. Accordingly, adjustments were made to restate beginning fund balances. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the 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 inquires of management about the methods or 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 the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is 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. 16 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2017, 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, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the City of Iowa City, Iowa's 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. Z,7" Dubuque, Iowa December 11, 2017 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, 2017. 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, 2017 by $631,405,000 (net position). Of this amount, $92,928,000 (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 $36,067,000 during the fiscal year. Governmental activities increased by $23,673,000 and business -type activities increased by $12,394,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $106,381,000, an increase of $15,254,000 in comparison with the prior year. Of this total amount, approximately $24,793,000 or 23.3°/% 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 $24,793,000 or 53.1°/% 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 30 — 33 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 four major governmental funds: General Fund, Employee Benefits Fund, Bridge, 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 34 — 37 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 and Housing Authority 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 108 — 110. 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 38 — 43 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 44. 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 46 - 86 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 $631,405,000 at the close of the fiscal year ended June 30, 2017. 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 oil. City's Net Posifiou June 30, 2017 (amounts cxpresscd in thousands) Gormro meu tal Business -type 21 acttvifies activities Total 2017 2016 2017 2016 2017 2016 Currant and othcr assns, as restatcd $ 190,352 $ 176,348 $ 119,968 $ 116,163 $ 310,320 $ 292,511 Capital asscts 226,143 207,222 335,064 319,926 561,207 527,148 Total ass Rs, as restatcd 416,495 383,570 455,032 436,089 871,527 819,659 Dcfcrmd outflows ofmsourccs 13,131 7,192 2,345 1,217 15,476 8,409 Lung tcrm liabilitics outstanding 112,931 94,598 68,385 57,712 181,316 152,310 Curmat and othcr liabilitics 11,142 13,146 4,379 7,217 15,421 20,363 Total liabilitics 123,973 107,744 72,764 64,929 196,737 172,673 Dcfcrmd inflows of resoumcs, as tat d 58,062 59,100 799 957 58,861 60,057 Na position: Na invcstmcnt in capital assns 183,651 163,362 285,912 279,679 469,563 443,141 Rcstricti 47,676 42,154 21,238 22,269 68,914 64,423 Unmstricti 16,264 18,402 76,654 69,472 92,928 87,874 Total act position $ 247,591 $ 223,918 $ 383,814 $ 371,420 $ 631,405 $ 595,338 21 A portion of the City's net position, $68,914,000 or 10.9°/x, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, $92,928,000 or 14.7°/x, 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, 2017, 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 FY17's operation. Governmental Activities: Governmental activities increased the City's net position by $23,673,000. The increase in net position of governmental activities is primarily due to receiving grants to fund expenses for operations and capital assets. The total revenues for governmental activities for FY17 were $98,143,000. Governmental activities are primarily funded through taxes, $60,451,000 or 61.6°/x, and grants and contributions, $20,780,000 or 21.2°/x. Taxes increased from the prior year by $4,620,000, mostly due to increased property taxes which was due to an increase in the taxable value of all property. Grants and contributions increased from prior year by $6,840,000 which is due to City's expenses for a large flood mitigation project. Expenses for governmental activities totaled $67,417,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY17, Public Safety accounted for the highest portion of governmental expenses, $24,002,000 or 35.6°/x, and increased over the prior year due to an increase in pension expense. Culture and Recreation expenses of $15,525,000 or 23.0°/% made up another large portion of the governmental expenses and increased over the prior year due mainly to increases in parks and recreation operating costs. Public Works expenses of $12,032,000 or 17.8°/% made up the third highest portion of governmental expenses and increased due to an increase in depreciation and operating expenses. Business -type Activities: Business -type activities increased the City's total net position by $12,394,000. The increase in net position was primarily from the Water and Wastewater Treatment funds. The increases in both Water and Wastewater Treatment funds are due to transfers of capital assets from governmental capital project funds. For all business -type activities, revenues exceeded expenses by $5,341,000. Revenues for business -type activities totaled $59,133,000. The primary revenue source for business -type activities is charges for services, $41,231,000 or 69.7°/x. In addition for FY17, the City's business type - activities had a significant portion, $15,635,000 or 26.4°/x, of their revenues from grants and contributions used to help fund operation and capital projects for business -type activities. The total expenses for business -type activities in FY17 were $53,792,000. Wastewater Treatment represented the highest portion of business -type activities, $11,233,000 or 20.9°/x, with Sanitation, $9,123,000 or 17.0°/x, Water, $8,921,000 or 16.6°/x, Housing Authority, $8,798,000 or 16.4°/x, and Transit, $7,263,000 or 13.5°/x, 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 2017 2016 2017 2016 2017 2016 Revenues: Program Revenues: Charges for services $ 8,412 $ 8,560 $ 41,231 $ 39,953 $ 49,643 $ 48,513 Operating grants and contributions 10,828 9,941 10,836 10,639 21,664 20,580 Capital grants and contributions 9,952 3,999 4,799 4,607 14,751 8,606 General Revenues: Property taxes 57,649 53,114 - - 57,649 53,114 otherlaxes 2,802 2,717 - - 2,802 2,717 Grants and contributions not restricted to specific purposes 1,583 2,080 - - 1,583 2,080 Earnings On investments 1,397 1,045 938 715 2,335 1,760 Gain on disposal ofcapital assets 2,151 218 69 2,463 2,220 2,681 Other 3,369 4,464 1,260 362 4,629 4,826 Total revenues 98,143 86,138 59,133 58,739 157,276 144,877 Expenses: Public safety 24,002 22,029 - - 24,002 22,029 Public works 12,032 10,839 - - 12,032 10,839 Culture and recreation 15,525 14,422 - - 15,525 14,422 Community and economic development 8,253 6,786 - - 8,253 6,786 General government 6,124 6,240 - - 6,124 6,240 Interest on long-term debt 1,481 1,287 - - 1,481 1,287 Wastewater treatment - - 11,233 11,866 11,233 11,866 Wala - - 8,921 8,149 8,921 8,149 Sanitation - - 9,123 8,735 9,123 8,735 housing authority - - 8,798 8,378 8,798 8,378 Parking - - 4,620 4,460 4,620 4,460 Airport - - 1,402 1,597 1,402 1,597 Stonrvater - - 2,432 1,989 2,432 1,989 Transit - - 7,263 7,486 7,263 7,486 Tot at exp enses 67,417 61,603 53,792 52,660 121,209 114,263 Change in n position before Iransfers and special iters 30,726 74,535 5,341 6,079 36,067 30,614 Transfers (7,053) (6,395) 7,053 6,395 - - Reassignmenl of Cable Television to governmental activities - 82 - (82) - - Change in net position 23,673 18222 12,394 12,392 36,067 30,614 Net position begnningofyear 223,918 205,696 371,420 359,028 595,338 564,774 Net position end ofyear $ 247,591 $ 223,918 $ 383,814 S 3-1.420 $ 631,405 $ 595,338 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 FY2017 Revenue by Source Misc. Charges for Other Taxes Other 3% 7% services 8% Business -Type Activities FY2017 Revenue by Source Grants and Misc. Other Contributions 4% 26% Charges for services 70% 24 Grants and Contributions 23% I ds 0 A 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 22,000 20,000 18,000 16,000 14,000 h 12,000 c 10,000 G1 8,000 6,000 4,000 2,000 [01 Governmental Activities FY2017 Expenses by Program Area (amounts expressed in thousands) Public Safety Culture and Recreation Community Public Works and Econ Dev General Govt Interest xpense Program Area Business -'Type Activities FY2017 Expenses by Program Area (amounts expressed in thousands) Wastewater Treatment Wates anitationHousing Authority Transit -f 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, 2017, the City's governmental funds reported combined ending fund balances of $106,381,000, an increase of $15,254,000 in comparison with the prior year. Of this total amount, $24,793,000 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 $73,915,000 or 69.5°/% contains external restraints on its use. The committed and assigned fund balances of $5,199,000 or 4.9% and $1,342,000 or 1.3%, respectively, have been identified by the City to be used for specific purposes. The nonspendable fund balance is $1,132,000 or 1.1%, 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, 2017, the unassigned fund balance of the General Fund was $24,793,000 while General Fund's total fund balance was $42,096,000. 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 53.1°/% of total General Fund expenditures of $46,706,000, while total fund balance represents 90.1°/% of that same amount. During the current fiscal year, the fund balance of the City's General Fund decreased by $7,405,000. This is due to transfers out to other funds. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $15,537,000, an increase of $2,366,000. 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 $27,356,000, an increase of $18,607,000. 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 ending fund balance of the Debt Service Fund was $7,756,000, an increase of $1,183,000, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). The ending fund balance of the Employee Benefits Fund was $2,521,000, an increase of $850,000 due to an increase in property tax revenues. 26 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 $368,320,000, an increase in net position of $10,606,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects and transfers of business -type capital assets from governmental capital project funds. Of the enterprise funds' net position, $285,912,000 is net investment in capital assets. Unrestricted net position totaled $61,170,000, an increase of $5,404,000 compared to the previous year. The Internal Service funds showed net position totaling $39,652,000 as of June 30, 2017, an increase of $4,188,000 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 $9,148,000 or 6.2% to a total of $155,743,000 and the expenditure budget by $74,037,000 or 44.0°/% to a total of $242,301,000. 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, 2017 amounts to $561,207,000, 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, 2017 increased by $18,921,000 for governmental activities compared to the prior year and increased by $15,138,000 for business -type activities from the prior year. The following table reflects the $561,207,000 investment in capital assets, net of accumulated depreciation. City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) 27 Governmental Business -type Activities Activities Total 2017 2016 2017 2016 2017 2016 Land $ 29,778 S 24,081 $ 30,737 $ 35,590 $ 60,515 $ 59,671 Buildings 39,464 41,126 73297 60,636 112,761 101,762 Improvements other than buildings 3,954 4,092 4,341 4,703 8,295 8,795 Machinery and equipment 16,686 15,825 7,470 8,596 24,156 24,421 Infrastructure 113,494 97,904 209,505 207,756 322,999 305,660 Construction in progress 22,767 24,194 9,714 2,645 32,481 26,839 Total $ 226,143 $ 207222 $ 335,064 $ 319,926 $ 561,207 $ 527,148 27 Major capital asset events during the current fiscal year included the following: Work was completed for the I" Avenue/IAIS Railroad Crossing Improvement which lowered I" Avenue under the IAIS Railroad and included a railroad bridge, retaining wall and utilities. The construction in progress balance at the beginning of the year was $9,187,000. Additional expenses of $3,111,000 were added in FY 17. The total cost of the project that was capitalized was $12,298,000 and is funded primarily by GO bonds with the remainder of the funding by federal or state grants. Work was completed for the Washington Street Construction Project, which includes in addition to reconstruct Washington Street, improvements to the sidewalk pavement and water main and stormwater enhancement. The construction in progress balance at the beginning of the year was $1,350,000. Additional expenses of $3,085,000 were added in FY 17. The total cost of the project that was capitalized was $4,435,000 and is funded primarily from GO bonds. Expenses for a variety of street and bridge construction were moved into construction in progress at the end of FY17 for a total balance of $28,791,000. This construction in progress includes $27,874,000 for the Iowa City Gateway Project, which will reconstruct and elevate Dubuque Street and Park Road Bridge to provide flood protection. 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 $99,665,000. Of this amount, $51,645,000 comprises debt backed by the full faith and credit of the City. $5,084,000 or 9.8% of these bonds is debt that will be paid with Tax Increment Financing revenues. $48,020,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Activities 2017 2016 General obligation bonds $ 51,645 $ 55,055 Revenue bonds 15,200 2,525 Total $ 66,845 $ 57,580 Business -type Activities 2017 2016 - $ 295 32,820 38,420 $ 32,820 $ 38,715 Total 2017 2016 $ 51,645 $ 55,350 48,020 40,945 $ 99.665 $ 96,295 The City issued $9,765,000 of General Obligation bonds and $23,265,000 of Revenue bonds during FY17. This increase in debt was mostly offset by the retirement of debt for a net increase of City's total bonded debt by $3,370,000. 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, 2017 were as follows: General obligation bonds Aaa Wastewater treatment revenue bonds Aa2 Water revenue bonds Aa2 28 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 $267,511,000. With outstanding debt applicable to this limit of $84,864,000 we are utilizing 31.7°/% of this limit. More detailed information on debt administration is provided in Note 6 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 FY17, the City collected $939,000 in local franchise fee. 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 FY18 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FYI is provided below: General Levy $ 8.100 Debt Service Levy 3.579 Employee Benefits Levy 3.144 Transit Levy 0.950 Liability Insurance Levy 0.290 Library Levy 0.270 Total City Levy $ 16.333 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. 29 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION June 30, 2017 (amounts expressed in thousands) Assets Equity in pooled each and investments Receivables: Properly tax Accounts and unbilled usage humcst Notes Internal balances Due liom othcv governments PTLTaid item Inventories Assets held for Tesale Restricted assets: Equity in pooled each and investments Othcv post employment beneth% asset Capital assets: Land and Construction in progress Othcv capital assets (net of accumulated dLTTeciation) Total asset% Deferred Outflows of Resources Pension Telated deferred ouillows Liabilities Accounts payable C0111mC1s payable Accrued liabilities humcst payable Deposits Advances than grantors Due to othcv governments Notes payable Noncement liabilities: Due within one year: Employee vested beneth% Capital lease obligation Bonds payable Due in more than one year: Employee vested beneth% Net pension liability Othcv post employment benclits obligation Notes payable Capital lease obligation Bonds payable Landfill cl0SmC/p0stcl0sure liability Total liabilities Cmvernmental Business -type Activities Activities Total $ 111,030 $ 64,719 $ 175,749 56,639 - 56,639 820 3,469 4,289 428 351 779 5,524 540 6,064 (15,494) 15,494 - 4,519 2,435 6,954 811 3 814 730 763 1,493 750 - 750 24,560 32,191 56,751 35 3 38 52,545 40,451 92,996 173,598 294,613 468,211 416,495 455,032 871,527 13,131 2,345 15,476 2,127 997 3,124 2,521 539 3,060 4,182 440 4,622 133 718 851 1,230 1,606 2,836 144 - 144 42 79 121 663 - 663 1,252 403 1,655 - 524 524 8,230 5,326 13,556 989 291 1,280 39,080 8,975 48,055 3,660 1,222 4,882 211 - 211 - 13,958 13,958 59,509 29,095 88,604 8,591 8,591 $ 123,973 $ 72,764 $ 196,737 30 (continued CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION (continued) June 30, 2017 (amounts expressed in thousands) Ciovernmenlal Business -type Activities Activities Total Deferred inflows of resources Unavailable revenues: Pension related deferred inllows $ 1,603 $ 550 $ 2,153 Deferred amount on refunding - 249 249 Succeeding year property taxes 56,459 56,459 Total deferred inllows ofresourceS 58,062 799 58,861 Net position Net investment in capital assets 183,651 285,912 469,563 Restricted for or by: Employee benelils 2,810 - 2,810 Capital projects 30,856 - 30,856 Debt service 7,221 - 7,221 Police 349 - 349 Other purposes 2,590 - 2,590 Bond ordinance - 12,772 12,772 State statute - 5,939 5,939 Future improvernenls - 100 100 Cttanl agreement 3,850 3,087 6,937 Unrestricted 16,264 76,664 92,928 Total net position $ 247,591 $ 383,814 $ 631.405 The notes to the financial statements are an integral part of this statement 31 CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2017 (amounts expressed in thousands) Functions/Programs: Expenses Charges forServices Program Revenues Operating Grants and Contributions Capital Grants and Contributions Governmental activities: Public safety $ 24,002 $ 5,286 $ 196 $ 467 Public works 12,032 724 8,711 9,343 Culture and recreation 15,525 842 74 36 Community and economic development 8,253 36 1,847 106 General government 6,124 1,524 - - Interest on long-term debt 1,481 - - - Total governmental activities 67,417 8,412 10,828 9,952 Business -type activities: Wastewater treatment 11,233 12,277 - 2,226 Water 8,921 9,275 - 869 Sanitation 9,123 9,927 - - Housing authority 8,798 321 8,532 - Parking 4,620 5,453 - - Airport 1,402 345 69 58 Stormwater 2,432 1,544 - 1,251 Transit 7,263 2,089 2,235 395 Total business -type activities 53,792 41,231 10,836 4,799 Total $ 121,209 $ 49,643 $ 21,664 $ 14,751 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 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 /his statement 32 Net (Expense) Revenue and Changes in Net Position Governmental Business -type Activities Activities Total $ (18,053) $ - $ (18,053) 6,746 - 6,746 (14,573) - (14,573) (6,264) - (6,264) (4,600) - (4,600) (1,481) - (1,481) (38,225) - (38,225) - 3,270 3,270 - 1,223 1,223 - 804 804 - 55 55 - 833 833 - (930) (930) - 363 363 - (2,544) (2,544) - 3,074 3,074 (38,225) 3,074 (35,151) 57,649 - 57,649 1,137 - 1,137 726 - 726 939 - 939 1,583 - 1,583 1,397 938 2,335 2,151 69 2,220 3,369 1,260 4,629 (7,053) 7,053 61,898 9,320 71,218 23,673 12,394 36,067 223.918 371,420 595,338 S 247591 S 383,814 $ 631,405 33 CITY OF IOWA CITY, IOWA BALANCESHEET GOVERNMENTAL FUNDS June 30, 2017 (amounts expressed in thousands) Assets Equity in pooled cash and investments $ Capital Special Revenue project. Receivables: Bridge, 106 Street and Property tax Traffic Employee Control General Benefits Construction Assets Equity in pooled cash and investments $ 32,500 $ 2,413 $ 12,151 $ Receivables: 663 106 29 Property tax 32,965 10,783 - Accounts and unbilled usage 410 - 252 Interest 161 - 43 Notes 1,292 - - Advances to other funds - - - Due from other governments 1,887 316 931 Inventories - - - Prepaid item 719 80 - Assets held for resale 750 - - Restricted assets: - - - Equity in pooled cash and investments 10,268 663 5.272 Total assets $ 80,952 $ 13.592 5 18.649 5 Liabilities, Deferred Inflows of Resources and Fund Balances Other Debt Governmental Service Funds Total 7,090 $ 25,459 $ 79,613 12,564 327 56,639 - 1 663 106 29 339 399 3,833 5,524 125 - 125 - 1,318 4,452 - 264 264 Accrued liabilities - 799 12 - 750 9.020 24.560 20.284 5 40151 5 173.728 Liabilities: Accounts payable $ 1,191 $ 4 5 11 $ 5 $ 430 $ 1,641 Contracts payable - - 2.077 - 444 2,521 Accrued liabilities 1,321 2 12 - 101 1,436 Advances from other funds - - - - 125 125 Due to other governments 38 - - - 4 42 interestpayable 4 - - - - 4 Notes payable 663 - - - - 663 Liabilities payable from restricted assets: Deposits 1,224 - - - 6 1,230 Advances from grantors 7 137 144 Total liabilities 4,448 6 2,100 5 1,247 7,806 Deferred inflows of resources Unavailable revenues: Succeeding year property taxes 32,863 10,750 - 12,523 323 56,459 Grants 6 - 581 - 117 704 Other 1,539 315 431 93 2,378 Total deferred inflows of resources 34,408 11,065 1,012 12,523 533 59,541 Fund balances: Nonspendable 788 80 - - 264 1,132 Restricted 9,974 2,441 15,537 7,756 38,207 73,915 Committed 5,199 - - - - 5,199 Assigned 1,342 - - - - 1,342 Unassigned 24,793 24,793 Total fund balances 42,096 2,521 15.537 7.756 38.471 106,381 Total liabilities, deferred inflows of resources and fund balances $ 80,952 5 13.592 5 18.649 5 20.284 5 40151 5 173.728 The notes to the firwncial statements are an integral part of this statement 34 CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2017 (amounts expressed in thousands) Total governmental fund balances $ 106,381 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, 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 35 39,652 3,082 214,188 $ 12,750 (1,515) 11,235 (37,683) (2,128) (3,563) (67,739) (211) (129) (15,494) S 247,591 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2017 (amounts expressed in thousands) Revenues Capital Special Revenue Projects Bridge, $ 34,290 $ 10,537 $ Street, and 13,109 $ 2,516 $ Traffic Other Employee Control Debt Governmental General Benefits Construction Service Funds Total Revenues Taxes $ 34,290 $ 10,537 $ - $ 13,109 $ 2,516 $ 60,452 Licenses and permits 3,521 - - - - 3,521 Intergovernmental 3,574 295 8,663 359 11,249 24,140 Charges for services 1,665 302 22 - 366 2,355 Fines and forfeits 750 - - - - 750 Use of money and property 839 - 69 181 146 1,235 Miscellaneous 1,692 12 I 396 2,101 Total revenues 46,331 11,146 8,755 13,649 14,673 94,554 Expenditures Current: - - 6,023 654 15,893 22,570 Public safety 22,005 484 - - 24 22,513 Public works 1,803 - 2,290 - 5,093 9,186 Culture and recreation 12,890 - - - 451 13,341 Community and economic development 3,074 - - - 4,621 7,695 General government 5,471 384 - 16 11 5,882 Debt service: Net change in fund balances Principal - - - 13,305 - 13,305 Interest - - - 1,597 - 1,597 Capital outlay 1,463 14,704 2,238 18,405 Total expenditures 46,706 868 16,994 14,918 12,438 91,924 Excess (deficiency) of revenues over (under) expenditures (375) 10,278 (8,239) (1,269) 2,235 2,630 Other Financing Sources (Uses) Issuance of debt - - 6,023 654 15,893 22,570 Sale of capital assets 268 - - - 2,024 2,292 Premiums on issuance of bonds - - 32 3 85 120 Transfers in 10,725 - 16,343 1,795 5,812 34,675 Transfers out (18,023) (9,428) (11,793) (7,789) (47,033) Total other financing sources and (uses) (7,030) (9,428) 10,605 2,452 16,025 12,624 Net change in fund balances (7,405) 850 2,366 1,183 18,260 15,254 F'und Balances, Beginning, as restated 49,501 1,671 13,171 6,573 20,211 91,127 F'und Balances, Ending $ 42,096 $ 2,521 $ 15,537 $ 7,756 S 38,471 S 106,381 The notes to the financial statements are an integral part of this statement 36 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, 2017 (amounts expressed in thousands) Net change in fund balances - total governmental funds $ 15,254 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 $ 17,060 Transfers of capital assets (to)\from enterprise funds - net 4,863 Capital assets contributed 2,574 Depreciation expense (6,749) 17,748 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 (22,570) Premium on bonds issued (120) Repayments of debt 13,305 Amortization of premium 135 (9,250) 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. (1,323) 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 (99) Pension expense (458) Change in accrued post employment benefit obligations (424) Change in accrued interest on debt (19) 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. (156) 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. 2,400 Change in net position of governmental activities $ 23,673 The notes to the financial statements are an integral part of this statement. 37 CITY OFIOWA CITY, IOWA STATFXW7sT OFNET POSITION PROPRIETARY FL1T1S June 30, 2019 (amounts exprssed'm thousands) Dameas typ,Aetrvrtis- P:memdsePulls Cttner Wasrwater Housing Lnt Tna, Padang Treatment Water Sarmatian Smmnwnter Authormy Funds l'atai AssOs Carremasset Gcoverrintentel Aetortls Imer.1 kora Polls Equity in pooled] rash and lnmst.m, $ 11,%9fi $ 18,100 % 9,566 % 13,965 $ 1,549 $3,685 $5,230 $ 64,919 $ 31,419 Receivables: Aceaunt and unbilled usage 10 1,525 1,043 698 154 - 39 3,469 159 Interest 31 1110 42 92 5 45 16 351 89 Notes - - - - - 5411 - 5411 - Advancestoamrsfunds - - - 1,901 - - - 1,9111 - I)eefiomamergovcmncnts - 1 1 63 82 IDfi 2,182 2,435 69 Inventories - - 469 - - - 294 90 466 Prepaid Ilan - - - - - - 3 3 12 Asset held for resale Tamp cement assts 11,939 20,456 11,121 16,919 1,988 4,396 9,964 94,181 32,718 Nomearremasset: Rertrichdasset: LWAy in pooled rash and investment 1 9,136 4,6slD 14,549 - 3,906 161 32,191 - Cfficrpostemplaymentbcoufitasset - - - - - - 3 3 35 Capital assets: Lend 3,946 959 6,296 2,264 2, m 620 14,988 30,739 45 Duilcm, 41,649 36,358 24,019 5,467 - 5,350 20,996 134,119 1,531 Improvement miner Into buildings 328 9,119 2,616 421 - 9 3% 10,889 511 Machinery and equipment 1,541 9,612 111,8111 149 29 106 Illfi❑ 30,810 22,333 Infrastnomre - 149,533 63,019 19,366 58,996 - 18,913 309,425 2,4119 Aecmmuated depmcimion (19,364) (7fi,11311) (36,941)) (14,1415) (13,693) (4,468) (23,488) (188,628) (15,346) Constmeton in progress 5,940 1,566 129 1,539 542 9,914 493 Total noncurrent assets 29,862 140,929 96,215 25,496 48,931 5,323 42,504 369,258 11,990 1.1 assts 39,999 161,383 89,336 42,215 50,919 9,919 50,268 441,439 44,198 D9erred OmHloa s N Rson.s Pension related] defrmed autflns s $ 251 $ 355 S 430 S 422 S 41 S 146 S 941 S 2,345 S 381 (contained, 38 39 CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION (contmoed) PROPRIETARY FDNDS Juco30,2019 (amount expressed m thousands) G.,curnmentel Business type Activities - 6nrrprise funds Activities - Offner ntcmal Wastewater Housing Lntemrise Service Parking "treatment Water Sanitation Sbrmwater Authomy funds "total Ponds LubMies Current liabilities: Accounts payable % K % 225 % 239 $ 211 $ 41 $ 34 $ I69 $ 999 $ 486 Contracts payable 144 210 34 55 45 - 51 539 Accrued liabilities 43 69 81 92 9 28 ❑% 440 2,946 Lmploycc vcstrd bencfita 39 fit 69 83 1 32 119 403 til Duc to other gownrment - 2 25 2 - 34 Ifi 99 - Interestp,yable 48 426 244 - - - - 918 - Capdalkaseobligmum 524 - - - - - - 524 - Bonded debt payable(act ofunorm iced premium and discount) 3'%4i 1,485 5,326 1.1 current lietalmes M 4,835 2,175 423 96 128 489 9026 3,295 Noncurrent liabilities: Liabilities payable from restricted asset: Deposits 1 - 965 5 - 619 Ifi 1,606 - Advancesfromothermnds 1,9111 - - - - - - 1,901 - Lmployccwstedbencfits 29 44 52 fit 1 23 83 291 511 Capital kasc obligatlon 13,958 - - - - - - 13,958 - Bonded debt payable (net arfunmrmftzed premium and discount) - 19,1189 12,0118 - - - - 29,1195 - Netpensionliability 995 1,4fi9 I,fifi% I,648 110 fill% 2,499 8,995 1,399 (Aher post employment benefit; obligation 162 189 201 259 1 95 339 I,= 99 Landfill closure postelosure liability 8,591 8,591 I mal noneurmnt liabilities 19044 18989 14894 10564 112 1,325 2913 65,639 1544 Total liabilities 17,924 23,622 17,069 10,987 208 1,453 3,T)2 74,665 4,839 Ddeered Infbws of Res onrres Pension related deterred Inflows fil %% IO2 100 9 36 156 550 %% Deterred amount on refunding 148 IUI 249 1 our deterred impose, of resources fil 236 203 100 9 36 156 999 %% Nat Posrtnn Net Investment In capital assets 13,399 110,915 59,981 10,949 48,931 1,619 42,340 285,912 11,955 Restricted by bond ordinance - 8,9119 3,,105 - - - - 12,112 - RestriCNdbystatestatute - - - 5,939 - - - 5,939 - Restricted for future Improvements - - - - - - 100 100 - Restrletedbygmntagrecment - - - - - 3,1189 - 3,089 - Unrestricted 86M 18458 91U8 14,662 I614 3692 4,970 61,170 27,697 Tmal cot position S 22,IIfi5 S ❑9,%%U _L_9U,494 S 3155U $ SU545 $ %,39fi 549,41U $ 3fi%,32U $ 39,62 Ad lustment to reflect the consolidffilon of internal service fund activities related to enterprise funds. 15,494 Nt position of business-type activities 1 33%3,%14 Tna rwtu5 to m+•I id St@¢Yll¢n6 NP 0! Irt@g/ol jl®t fuels Sto[aY11Olt. 39 CITY CFIOWA CITY, IOWA STATEAIFNI' OFREYE\'EES, FX LASES ANTI CRA\GES LY FL1'B NET POSITION PROPRIETARY FL1'BS Opentug Revenues: Charges for services Miscellaneous "Total operating revenues OperatugE'eiiao : Personal services Comrmdities services and charges Ocprcciation I oral operating ,penes Operatin. Income Qoss) Nouopentiag Revenues (Expenses): Gain (loss) on disposal ofeapltal assets Operating grants Intem4lwome Intereatexpenm Pmol mmpersting mvcmcs (expenses) I.. Hoss) hcfirre capdal contributions aMtransfrrs 1,767 For the Year Laded June 30, 2019 3,288 3,165 310 913 4,042 (amaonts exporsscd in thousaMs) 2,195 fill I'm 1,031 220 583 20 951 4,320 Govcrnmcntal 1_295 Businssaylc Activities-LiteMosel'vMs 2,013 4,880 358 Activdirs- zIR 20,797 9,455 Other 6,357 Internal 8,265 Wa4cwat,r Housing Lntcrpose 41,5111 Servbc Pam_ lratali Water Sanitation stormwaterAum funds Total funds Y 5,453 S 11-77 S 9,295 % 9,927 % 1,544 % 321 % 2,434 %41,231 % 18,355 41 954 41 77 136 149 64 1,2u) - 5_404 13,031 9,316 10y_004 1,680 468 2,498 X491 18355 1,767 2,899 3,288 3,165 310 913 4,042 16784 2,195 fill I'm 1,031 220 583 20 951 4,320 1,138 1_295 2,364 2,013 4,880 358 7,765 zIR 20,797 9,455 3,6X3 6,357 6,332 8,265 1,251 8,698 6,915 41,5111 13,468 880 4,506 2,344 1,560 1,192 121 1,8104 12,489 1,998 4,563 10863 8,676 9,K5 2443 8,819 8,799 53,988 15,66 931 2,168 040 199 (967) (5751) (6701) (11,499) 3,089 - (4835) 1 (88) - 47 3 (4872) m - - - - - 8,532 2,304 111X36 - 37 352 213 253 X 45 311 938 163 (134) (558) (447) 3038 (51)5 (1,139) 1977 (5,041) 233 165 ft 8,624 2,337 5,91t3 247 1234 (2,873) 407 344 (755) 273 (3,9fi4) (5,734) 3,33fi Capdalcontribntions - 2,R6 869 - 1,251 - 453 4,799 35 Tra sumin - 5,911 2,305 - 2,978 - 3,385 14,579 I'm Trani ant 2436 250 191 115 46 3038 (51)5 Changein cot position 134 2,K8 3,331 153 3,359 227 (126) 10,MM 4,188 Nei Posifiaq Beginnug 21,231 135,052 67,163 31,397 47,186 8,149 47,536 35,464 Nei Poslficq Ending Svj=UfiS 1 337,XXU 570494 %31550 150,545 1 8776 $474 0 5 39,652 Adjusfinott to reficot the consolidation ofinernal sxv Ice fiord activities related to enterprise fends 1,788 Change in cox position of businesstype ase ivdss S 12,394 The wresmrhef iai recount.¢ ee an i.e dr reit,fuins sena . 40 41 42 CITY OFIOWA CITY, IOWA STATFXW 7s T OF CASH FLOWS PROPRIETARY 111'HS I orthe Year Li-sled June 30, 2017 (annum s expressed m tlwusands) Governmental uusimsstypc Act,,ties-Cmerpnse Iunds Aetivites- Other Imcsrel West water Housing Lntemdw Scrvicc Pademg Iornmem Water Sanitation Stomwater Aumonty Funds Total Ponds Cash FWxs From Operating Acbvhes Receipts from customers and users %5,493 % 12,961 $9,277 $ 9,563 $ 1,641 $ 615 $ 2,497 %42,347 %18,318 Paymends to sopplers (1,802) (3,397) (2,534) (4,852) (1,(69) (7,695) (3X6) (21,865) (11,M5) Payments to employees 1,732 2,562 3,269) (3,140) (309) (903) (3,975) (16,190) (2,295) Net each flows from (used for) operating aeflvitus 1,959 6,7023174 1,571 263 (7,983) (4,694) 1,292 4,175 Cash Flmn From N on cap hal Chain dog Artivites Grant mceNed - - - 6 85 5,437 641 9,169 - 1musters from mhcrfunds - 5,911 2,305 - 2,978 - 3,355 14,579 1,332 1 musters to ether forts - (2,436) (250) (191) (115) (46) - (31105) (51)5) Repeymentl(paymem) 4 nitres orccrvable - - - - - 45 - 45 - Repaymentofeivamcsfromomerfunds (R9) - - - - (IS) - (247) - Repaymentofadvamcs to othcrfunds 229 229 Net ash floors from (useJ fo) nonrepital financing aetvites (29) 3,475 2,055 44 2,948 8,421 4,026 20,740 527 Cash E'losys Prom Caphal and Related Chain dug Adivmes Capital grams mcei,d - 3,1118 - - - - 151 3,259 - Acquisiti7n art eonstmdion o'properry and equipment (95) (81616) (2,701) (1,327) (2,955) (1) (947) (16,645) (3,136) Pmcexds from soleofp.,rly - IS 1 - - 47 3 69 115 P.eeds from nsm. ofdcbt - 10,123 4,032 - - - - 14,155 - Pnmipolpudonuapdalleaseobl,m.n (1,015) - - - - - - (1,015) - 1merest pmdoncapmokascobligation (86) - - - - - - (86) - Pnmipolpudonbondeddrbt - (13,863) (5,542) - - - - (19,405) - ImerestpaidonboMeddebt (9W) (524) (1,508) Net cash flows from (used fur) espual and r,[md finaooingartNmes (1,196) (10,214) (4,734) (1,327) (2,958) 46 (793) (21,176) (3,018) Cash FWxs From Invesiug Adivmea I merest on lnvahncros 32 333 204 197 7 34 26 833 147 Net Immase (decrease) In rash and rash equivalents 566 2% 699 785 260 518 (1,435) 1,689 2,134 Cash and Cash Equivalent, Beginning 11,331 27,670 13.507 27,727 1,287 6,873 6,106 95,221 29,210 Cash a ad Cash Equivalent, Eo ding 511.897 S 37.966 SI4_'06 S 38.512 % 1,547 % 7.391 S 5391 596.910 S31.417 (continued) 42 CITY OFIOWA CITY, IOWA STATFNIFNT OF CASH FLOWS MOPRHTARY ll1T S For ilia Year boded June 30, 2019 (ammms ccparsa d In thousands) 43 Oovcrnmental Husinsst fe Activities-mrcemdse funds Activdias Other Imarrel Wastewater Housing biarprise Servke Parkin 3rentrrcart Water Sanitation Stornewater Authodiy Ponds Total Ponds Recons lion of opentiog in mme(lass) b net cash flows teem (oseil lar) opentmg iidwklea: Operating i.. (lass) % 931 $ 2,168 $ 640 $ 199 % (763) $ (5,351) $ (6,301) %(11,497) $ 3,1189 Ad,stments to mmoeik operating I.. (lass) to net eash Caws from (used %r) operating activities: I)epmciationexperee 550 4,SUfi 2,344 1,560 1,192 121 1,8m 12,457 1,795 Changes in: Rmcivahks: Acmnnts and onhlkd usage - (71) (124) (85) (25) 2 (2) (305) (13) IAeframaihergovemments - 1 - (53) - (1) 1 (52) (24) Imentorlca - - (IS) - - - (14) (32) 5 Prepa6ldcm - - - - - - (3) (3) (12) Assets held far rasa a - - - - - 73 - 73 - AcmnntsM ahla 114 59 221 (74) (125) 13 (298) (93) (545) Accrued HahlRss 1 7 11 2 1 3 9 34 (151) Lmployce v,,to] hcrefits fi 7 (6) 8 (1) 1 (1) 14 10 Due to other gownuments - 2 7 (1) - 4 (28) (Ili) - Unsinvenue - - - - (14) - - (14) - Ife'.1s (1) - 85 (3) - 146 - 227 - Nctpcmbnliahlity 175 246 253 276 25 101 451 1,557 249 Ikfrrro]autt sofreaturms (114) (160) (21)7) (204) (23) (66) (354) (1,125) (186) Ikfrrro] infkrvrs ofreaturms (47) (51) (76) (77) (2) (36) (88) (407) (56) (Allier post empbynrnt benefits asseHabligatbn 14 18 14 NI 1 7 511 124 14 landfill clasor&postcbms Iiahlity 323 323 Total adjustrrcirts 1,028 4,534 2,534 1,692 1,026 368 1607 12,789 1059 Nat rash flows dom(usN far) aparffiin, scitent. $ 1,959 $ fi 702$x_174 $ 1 571 $ 263 $ 17,910) $ 14,694) $ 1 292 $ 4 175 Noncash Investm , Capdal, and PbantmgActivhlos: Contributions of capital assets fiom govemment and others $ - % 1,151 $ 869 % - $ 1,251 % - $ - $ 3,271 $ 35 Contributions of mpAul assets to govemment and others S - % 4,553 $ - % - $ - % - $ - $ 4,553 $ - Purchas oftuildin, with capital lease S 15,497 % - $ - % - $ - % - $ - $ 15,497 $ - Tin, nIXPSNt{IPf LII St@0110!6 eP NlIPt¢j/61 jNPf ftl11SS0@Y1106. 43 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2017 (amounts expressed in thousands) Assets Equity in pooled cash and investments Interest receivable Total assets Liabilities Accounts payable Due to agency Total liabilities Agency Funds 163 $ 164 160 $ 164 The notes to the financial statements are an integral part of this statement. 44 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2017 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 Accounting Standards Board (GASB) is the accepted standard-setting 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. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 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. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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. 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, Centrad Services Fund, Loss Reserve Fund, and thelnformation 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. Proprietary funds distinguish 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 operating 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 meeting this defmition are reported as non-operating 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. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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. 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. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 8). 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, 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, the difference in the carrying value of refunded debt and it's acquisition price and the unamortized portion of pension related items. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 functions. 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 $30,470,230 in revenues and other financing sources and by $86,120,048 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 10). 2. Cash and Pooled Investments The City's deposits in banks at June 30, 2017 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, 2017 the City had the following investments 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 I 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. 53 Fair Investment Value Maturities Federal Home Loan Bank Notes $ 7,989,640 July 2017 to June 2019 Federal Home Loan Mortgage Corporation Notes 3,990,660 June 2018 to May 2019 United States Treasury Note 498,789 May 2018 Credit Agricole Corporate and Investment Bank NY Commercial Paper 495237 March 2018 $ 12,974,326 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 I 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. 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 The recurring fair value measurement for the Federal Home Loan Bank securities of $7,989,640, the Federal Home Loan Mortgage Corporation securities of $3,990,660 and the United States Treasury securities of $498,789 were determined using the last reported sales price at current exchange rates (Level I inputs). The fair value measurement for the Credit Agricole Corporate and Investment Bank NY commercial paper of $495,237 was determined using the last reported sales price at current exchange rates (Level I inputs). The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $40,361,714, which approximates fair value. The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to Governmental Accounting Standards Board Statement No. 79. The 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 $ I per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). 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. 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. 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 3. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2017, consisted of the following: Advances from Debt Service Sanitation Total Advances to: Parking $ $ 1,901,161 $ 1,901,161 Nonmajor governmental 124,595 - 124,595 Total $ 124,595 $ 1,901,161 $ 2,025,756 Interfund balances at June 30, 2017, include advances due to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $1,665,852 of the $1,901,161 advance to the Parking Fund is not expected to be repaid within the next year. $110,893 of the $124,595 advance is not expected to be repaid within the next year. 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Interfund transfers for the year ended June 30, 2017, consisted of the following: Transfer to: General Debt Service Capital Projects Bridge, Street and Traffic Control Construction Nonmajor Governmental Wastewater Treatment Water Stormwater Nonmajor Enterprise IntemaI Service Total Transfer to Transfer from Capital Projects Bridge, Street and Traffic Employee Control Nonmajor Wastewater General Benefits Construction Governmental Treatment $ - $ 9,096,921 $ $ 823,503 $ 758,987 60,052 - 1,735,400 - 11,305,966 - 3,505,674 1241,013 3239,963 330,662 1,359,918 381901 - - 5,829,861 - - - 2,304,989 - - 2,977,881 3,384,842 - - - - 31,738 - 680,396 364,470 54,352 $ 18,022,561 $ 9,427,583 $ 11,793.127 S 2788,965 $ 2,436,253 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 $50,576,822 are less than total transfers of $55,439,701 because of the treatment of transfers of capital assets to the governmental activities capital assets. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Transfer from Housing Internal Total Water Sanitation Stormwater Authority Service Transfer from $ $ $ $ 46,087 $ $ 10,725,498 - 1,795,452 174,975 115,260 - 16,342,888 - 5 500,000 5,812,449 75,457 - 5.318 5,910,636 - - 2,304,989 2,977,881 - 3,384,842 191,231 1,322,187 $ 250,432 $ 191,231 $ 115.265 $ 46.087 $ 505318 50,576,822 Transfers to governmental activities capital assets from an enterprise fund 4,852,938 Transfers to govemmental activities capital assets from an internal service fiord 9.941 S 55.439.701 During the year, land for the construction of the Riverfront Crossing Park with a value of $4,852,938 was transferred to governmental activities capital assets from 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 disposal for the capital resources given. During the year, a capital asset related to public safety with a value of $9,941 was transferred from Equipment to governmental activities capital assets. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Equipment did report a disposal for the capital resources given. 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 4. Capital Assets Capital asset activity for the year ended June 30, 2017, was as follows: Acquisitions Disposals Beginning and and July 1, 2016 Transfers Transfers Covemmental activities: Capital assets, not being depreciated Land $ 24,081394 $ 5,697,487 $ - Construction in progress 24,193,739 23,219327 24,646,084 Total capital assets, not being depreciated 48,275,133 28,916,814 24,646,084 Capital assets, being depreciated: 1,417,535 27,770,324 Infrastructure Buildings 64,312373 126,520 254,932 Improvements other than buildings 7,358,005 148,833 5,320 Machinery and equipment 41,741,748 4,208,769 1,494,278 Infrastructure 137,980,063 18,947356 5,305 Total capital assets being depreciated 251,392,089 23,431,478 1,759,835 Less accumulated depreciation for Balance June 30, 2017 $ 29,778,881 22,766,982 52,545,863 64,183,861 7,501,518 44,456,239 156,922,114 273,063,732 Buildings 23,185,807 1,632,505 98,531 24,719,781 Improvements other than buildings 3,266,179 286,631 5,320 3,547,490 Machinery and equipment 25,916,289 3,271,570 1,417,535 27,770,324 Infrastructure 40,075,777 3,356,791 5,305 43,427,263 Total accumulated depreciation 92,444,052 8,547,497 1,526,691 99,464,858 Total capital assets, being depreciated, net 158,94$037 14,883,981 233,144 173,598,874 Governmental activities capital assets, net $ 207,223,170 $ 43,800,795 $ 24,879,228 $ 226,144,737 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Acquisitions Disposals Beginning and and July 1, 2016 Transfers Transfers Business -Type activities: Capital assets, not being depreciated: Land $ 35,590,298 Construction in progress 2,647,044 Total capital assets, not being depreciated 38,237,342 Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for 9,381,759 9381,759 118,486,975 15,747,867 10,783,445 105,329 31,095,957 338,098 298,117,591 9,308,433 458,483,968 25,499,727 $ 4,852,938 2,313,910 7,166,848 118,000 622,986 740,986 Balance June 30, 2017 $ 30,737,360 9,714,893 40,452,253 134,116,842 10,888,774 30,811,069 307,426,024 483,242,709 Buildings 57,850,943 3,086,848 118,000 60,819,791 Improvements other than buildings 6,081,033 467,188 - 6,548,221 Machinery and equipment 22,500,066 1,375,916 535,330 23,340,652 Infrastructure 90,363,007 7,557,870 - 97,920,877 Total accumulated depreciation 176,795,049 12,487,822 653,330 188,629,541 Total capital assets, being depreciated, net 281,688,919 13,011,905 87,656 294,613,168 887,095 Business -Type activities capital assets, net $ 319,926,261 S 22,393,664 S 7,254,504 $ 335,065,421 Depreciation expense was charged to functions as follows Governmental activities: Public safety $ 1,413,945 Public works 3,814,919 Culture and recreation 2,839,333 Community and economic development 61,853 General government 417,447 Total depreciation expense - governmental activities $ 8,547,497 Business -Type activities: Parking $ 879,706 Transit 887,095 Wastewater treatment 4,506,493 Water 2,343,883 Sanitation 1,560,499 Stormwater 1,192,434 Housing authority 120,681 Nonmajor enterprise 997,031 Total depreciation expense - business -type activities $ 12,487,822 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 5. Capital Lease Obligation This year, the government entered into a lease agreement as lessee for financing the acquisition of a parking ramp valued at $15,497,867. The parking ramp has a 30 -year estimated useful life. This year, $129,149 was included in depreciation expense. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2017, were as follows: Fiscal Year Ending June 30 2018 2019 2020 2021 2022 2023-2036 Total minimi m lease payments Less: amount representing interest Present value of minimum lease payments Changes in Capital Lease Obligation Business -type Activities $ 1,100,821 1,100,821 1,100,821 1,100,821 1,100,821 15,411,500 20,915,605 (6,432,891) $ 14,482,714 Changes in the capital lease obligation for the year ended June 30, 2017, was as follows: July 1, 2016 Issues Retirements Business -type activities: $ - 3 15,497,867 $ 1,015,153 60 Due Within June 30, 2017 One Year $ 14,482,714 $ 524,409 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2017, was as follows: Governmental activities: General obligation bonds Plus: Unamortized Premium Total general obligation bonds Revenue bonds Less: Unamortized Discounts Total revenue bonds Business -Type activities: General obligation bonds Revenue bonds Plus: Unamortized Premium Total revenue bonds General Obligation Bonds Due Within July 1, 2016 Issues Retirements June 30, 2017 One Year $ 55,055,000 $ 9,765,000 $ 13,175,000 $ 51,645,000 $ 7,960,000 943,392 120,083 137,221 926,254 137,221 55,998,392 9,885,083 13,312,221 52,571,254 8,097,221 2,525,000 12,805,000 130,000 15,200,000 135,000 33,984 - 2,124 31,860 2,124 2,491,016 12,805,000 127,876 15,168,140 132,876 $ 58,489,408 $ 22,690,083 $ 13,440,097 $ 67,739,394 $ 8,230,097 $ 295,000 $ - $ 295,000 $ - $ - 38,420,000 10,460,000 16,060,000 32,820,000 5,035,000 1,531,661 645,415 576,162 1,600,914 290,852 39,951,661 11,105,415 16,636,162 34,420,914 5,325,852 $ 40,246,661 $ 11,105,415 $ 16,931,162 $ 34,420,914 $ 5,325,852 Various issues of general obligation bonds totaling $51,645,000 are outstanding as of June 30, 2017. The bonds have interest rates ranging from 1.0% to 4.0% and mature in varying annual amounts ranging from $345,000 to $1,330,000 per issue, with the final maturities due in the year ending June 30, 2027. 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. 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Governmental Activities Principal Interest 2018 $ 7,960,000 $ 1,197,996 2019 8,125,000 1,031,994 2020 8,330,000 835,606 2021 7,090,000 613,841 2022 5,540,000 438,663 2023-2027 14,600,000 778,963 2.0% to 5.0% Total $ 51,645,000 $ 4,897,063 Revenue Bonds As of June 30, 2017, the following unmatured revenue bond issues are outstanding: Wastewater Taxable Urban 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, 2017 is $5,465,000. 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 15, 2017, the City issued $4,550,000 of sewer revenue bonds for a current refunding of $5,245,000 of sewer revenue bonds on July 1, 2017. 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 $1,030,981 in future debt service payments and an economic gain of $723,184. On June 15, 2017, the City issued $5,910,000 of water revenue bonds for a current refunding of $5,725,000 of water revenue bonds on July 1, 2017. 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 $1,137,664 in future debt service payments and an economic gain of $1,033,306. 62 Treatment Water Renewal Original issue amount $ 37,650,000 $ 24,260,000 $ 15,200,000 Interest rates 2.0% to 5.0% 1.5% to 5.0% 1.0% to 3.9% Annual maturities $ 275,000 to $ 380,000 to $ 135,000 to $ 2,085,000 $ 1,225,000 $ 965,000 Amount outstanding $ 19,590,000 $ 13,230,000 $ 15,200,000 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, 2017 is $5,465,000. 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 15, 2017, the City issued $4,550,000 of sewer revenue bonds for a current refunding of $5,245,000 of sewer revenue bonds on July 1, 2017. 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 $1,030,981 in future debt service payments and an economic gain of $723,184. On June 15, 2017, the City issued $5,910,000 of water revenue bonds for a current refunding of $5,725,000 of water revenue bonds on July 1, 2017. 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 $1,137,664 in future debt service payments and an economic gain of $1,033,306. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Governmental Activities June 30 Principal 2018 2019 2020 2021 2022 2023-2027 2028-2032 2033-2037 Total $ 135,000 135,000 140,000 140,000 1,110,000 5,420,000 4,710,000 3,410,000 Interest $ 456,495 454,335 451,635 448,695 445,475 1,735,955 964,955 259,500 Business -type Activities Principal Interest 5,035,000 4,975,000 5,385,000 5,610,000 4,350,000 7,465,000 $ 1,150,476 872,703 685,365 477,665 298,690 237,420 $ 15,200,000 $ 5,217,045 $ 32,820,000 $ 3,722,319 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, 2017, the Wastewater Treatment Fund had net revenue of $7,026,000 and the amount of principal and interest due was $4,610,000. In fiscal year ended June 30, 2017, the Water Fund had net revenues of $3,197,000 and the amount of principal and interest due was $2,284,000. 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2017, are comprised of the following issues: $ 99,665,000 64 Datc of Amount Intcrest Final Outstanding Issuc Issucd Ratcs Maturity Jun: 30, 2017 General Obligation Bonds: Multi-Pmposc Aug. 2010 7,420,000 2.0-2.75 6/20 2,370,000 Multi-Pmposc Junc 2011 7,925,000 2.0-3.625 621 3,080,000 Rcfimdcd Multi-Pmposc and Library Construction (1) Junc 2011 10,930,000 2.0-3.625 621 5,055,000 Multi-Pmposc Junc 2012 9,070,000 2.0-2.25 622 4,780,000 Multi-Pmposc July 2013 7,230,000 1.0 - 2.0 623 4,975,000 Rcfimdcd Multi-Pmposc (2) Jun: 2014 11,980,000 2.0-3.0 624 6,685,000 Multi-Pmposc Junc 2015 7,785,000 2.0-2.25 625 6,380,000 Multi-Pmposc Junc 2016 8,795,000 2.0-3.0 626 8,555,000 Multi-Pmposc Junc 2017 9,765,000 2.0-2.5 627 9,765,000 Total Gcncral Obligation Bonds $ 51,645,000 Datc of Amount Intcrest Final Outstanding Issuc Issucd Ratcs Maturity Junc 30, 2017 Revenue Bonds: Rcfimdcd Wastcwatcr Trcatmcut Bonds (3) May 2009 8,660,000 3.5-5.0 725 525,000 Rcfimdcd Wastcwatcr Trcatmcut Bonds (4) Apr. 2010 15,080,000 3.0-4.0 720 5,155,000 Rcfimdcd Wastcwatcr Trcatmcut Bonds (5) Jun: 2016 9,360,000 3.0-4.0 721 9,360,000 Rcfimdcd Wastcwatcr Trcatmcut Bonds (6) Jun: 2017 4,550,000 2.0-5.0 722 4,550,000 Rcfimdcd Watcr Bonds (7) May 2009 9,750,000 4.0-4.5 725 585,000 Rcfimdcd Watcr Bonds (8) Jun: 2012 4,950,000 1.5 - 2.1 722 3,085,000 Rcfimdcd Watcr Bonds (9) Jun; 2016 3,650,000 1.5 - 5.0 724 3,650,000 Rcfu dcd Watcr Bonds (10) Junc 2017 5,910,000 2.0-2.25 725 5,910,000 Taxable Urban Rcncwal Nov. 2012 2,655,000 1.0 - 3.9 6/32 2,395,000 Taxablc Urban Rcncwal Scpt.2016 12,805,000 3.0 6/36 12,805,000 Total Rcvcnuc Bonds 48,020,000 $ 99,665,000 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 (1) This bond issue refunded the May 2002 General Obligation Bonds. (2) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (3) This bond issue refunded the October 2000 Wastewater Revenue Bonds. (4) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds. (5) This bond issue refunded the October 2008 Wastewater Revenue Bond. (6) This bond issue refunded the May 2009 Wastewater Revenue Bonds. (7) This bond issue refunded the December 2000 Water Revenue Bonds. (8) This bond issue refunded the October 2002 Water Revenue Bonds. (9) This bond issue refunded the October 2008 Water Revenue Bonds. (10) This bond issued refunded the May 2009 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development 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, 2017, there were three series of Industrial Development Revenue Bonds and Midwest Disaster Area Revenue Bonds outstanding, with an aggregate principal amount payable of $33,867,375. Debt Legal Compliance Legal Debt Margin: As of June 30, 2017, 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 $ 5,257,241 Utilities 92,987 Total valuation 5.350.228 Debt limit, 5% of total assessed valuation $ 267,511 Debt applicable to debt limit: General obligation bonds 51,645 Urban renewal revenue bonds 15,200 Letters of credit 663 Other legal indebtedness (TIF rebates) 17,356 Total net debt applicable to limit 84,864 Legal debt margin $ 182.647 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 7. 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 MFPRSI. 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.mfi)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. 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 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, 2017. 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 I 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 25.92°/% for the year ended June 30, 2017. The City's contributions to MFPRSI for the year ended June 30, 2017 was $2,681,511. 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, 2017. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the City reported a liability of $23,116,697 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, 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, 2016, the City's proportion was 3.697128°/% which was a decrease of .007844°/% from its proportions measured as of June 30, 2015. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 For the year ended June 30, 2017, the City recognized pension expense of $3,216,923. At June 30, 2017, 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 $ 596,612 $ 21,438 976,000 316,636 4,087,567 - 336,511 268,755 2,681,511 - $ 8,678201 $ 606,829 $2,681,511 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, 2018. 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, 2018 $ 879,619 June 30, 2019 879,619 June 30, 2020 2,319,990 June 30, 2021 1,323,484 June 30, 2022 (12,851) $ 5,389,861 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Actuarial Assumptions The total pension liability in the June 30, 2016, 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 Salary increases 4.50 to 15.11 percent, including inflation Investment rate of return 7.50 percent, net of pension plan investment expense, including inflation The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period from July 1, 2002 to June 30, 2012. Postretirement mortality rates were based on the RP -2000 Blue Collar Combined Healthy Mortality Table with males set -back two year, females set -forward one year and disabled individuals set -forward one year (male only rates), 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 best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long -Term Expected Asset Class Real Rate of Return Core Plus Fixed Income 3.8 % Emerging Markets 8.8 Emerging Markets Debt 6.5 Large Cap 6.0 Small Cap 5.8 Master Limited Partnerships (MLP) 8.5 International Large Cap 7.0 Treasury Inflation Protected Securities 2.8 Tactical Asset Allocation 6.0 Private Equity 9.8 Private Non -Core Real Estate 9.3 Private Core Real Estate 6.8 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 I -percent lower (6.5 percent) or I -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: $ 36280,488 S 23,116,701 S 12,154,074 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.org. Payables to the Pension Plan At June 30, 2017, there were no amounts due to MFPRSI. Iowa Public Employees Retirement System (IPERS) Plan Description 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.ipers.org. 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. 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 I 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. 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 In fiscal year 2017, 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, 2017 were $2,645,105. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the City reported a liability of $24,938,496 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, 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, 2016, the City's proportion was .3962696°/% which was a decrease of .019656°/% from its proportions measured as of June 30, 2015. For the year ended June 30, 2017, the City recognized pension expense of $2,599,601. At June 30, 2017, 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 72 Deferred Outflows of Deferred Inflows of Resources Resources 220,407 $ 297,631 380,484 3,552,947 1,250,940 2,645,105 $ 6,798,943 $ 1,548,571 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 $2,645,105 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, 2018 $ 121,419 June 30, 2019 121,419 June 30, 2020 1,561,079 June 30, 2021 866,632 June 30, 2022 (65282) $ 2,605267 Actuarial Assumptions The total pension liability in the June 30, 2016, 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, 19%) expense, including inflation Wage growth 4.00 percent per annum based on 3.00 inflation and 1.00 (effective June 30, 1990) real wage inflation The actuarial assumptions used in the June 30, 2016 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. 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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 Target Allocation 28 % 24 Long -Term Expected Real Rate of Re tum 1.9% 5.85 16 6.32 11 10.31 8 3.87 5 4.48 5 1.36 2 6.42 1 (0.26) Total 100% 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. Sensitivitv of Citv'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 I -percent lower (6.5 percent) or I -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: $ 40,347,112 S 24,938,496 S 11,933,423 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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.ipers.org. Payables to the Pension Plan At June 30, 2017, there were no amounts due to IPERS. 8. Other Long-term Liabilities Changes in Long -Term Liabilities -Notes Payable Note Payable activity for the year ended June 30, 2017, was as follows: Due Within July 1, 2016 Issues Retirements June 30, 2017 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 I%, 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, 2017, was as follows: Due Within July 1, 2016 Issues Retirements June 30, 2017 One Year Governmental activities: $ 2,133,179 S 1,292,682 $ 1,185,014 $ 2,240,847 $ 1,251,482 Business -type activities: $ 678,973 $ 405,439 $ 392,471 $ 691,941 $ 401,049 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. 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Changes in Long -Tem Liabilities -Landfill Closure Post -closure Care Costs Landfill Closure Post -closure care activity for the year ended June 30, 2017, was as follows: July 1, 2016 Issues Retirements June 30, 2017 Due Within One Year Business -type activities: $ 8,268,394 $ 322,795 $ - $ 8,591,189 $ - In August 1993, the GASH 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, 2017, is $8,591,189, which is based on 52.16°/% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $7,879,648 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, 2039. The estimated total current cost of the landfill closure and post -closure care costs at June 30, 2017, was determined by a licensed professional engineer and approximated at $16,470,837. 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, 2017. 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, 2017, the Sanitation Fund had $13,227,106 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. 76 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Changes in Long -Term Liabilities -Other Postemployment Benefits Governmental activities: Business -type activities: Net OPEB Obligation 2016 Current Year June 30, 2017 $ 3,187.337 $ 1,095,202 $ 438,375 $ 123,398 $ 3,625,712 $ 1,218,600 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. 77 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 The following table shows the components of the City's annual OPEB cost for the year ended June 30, 2017, the amount actually contributed to the plans, and changes in the City's net OPEB obligation: Annual required contribution $ 735,979 Interest on net OPEB obligation 149,889 Adjustment to annual required contribution (147,747) Annual OPEB costs 738,121 Contributions made (176,348) Increase in net OPEB obligation 561,773 Net OPEB obligation beginning of year 4282,539 Net OPEB obligation end of year $ 4,844,312 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, 2017. 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: Percentage of Annual OPEB Cost Annual Year Ended OPEB Cost June 30, 2015 $ 573,338 June 30, 2016 $ 672,867 June 30, 2017 $ 738,121 Percentage of Annual OPEB Cost Net OPEB Contributed from City ObNWion 38.0% $3,969,641 53.5% $4,282,539 23.9% $4,844,312 Funded Status and Funding Progress: As of July 1, 2016, the most recent actuarial valuation date for the period July 1, 2016 through June 30, 2017, the actuarial accrued liability was $6,560,682, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $6,560,682. The covered payroll (annual payroll of active employees covered by the plans) was $37,814,968 and the ratio of the UAAL to covered payroll was 17.3°/x. 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. 78 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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, 2016 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 -2015. 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 $933.33 per month for retirees and $816.67 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. 9. Short Term Debt Changes in Short -Term Liabilities - Notes Payable Notcs Payablc activity for the year coded Junc 30, 2017, was as follows: July 1, 2016 Issues Retirements Duc Within Junc 30, 2017 Onc Ycar Gownuncntalactivitics: $ 582,000 $ 669.000 $ 588,000 $ 663,000 $ 663,000 During FY17, the City entered into additional multiple short term loans totaling $669,000 and repaid multiple short term loans totaling $588,000. The outstanding loans mature one year from the date of the loan and bear interest rates ranging from 2% to 4.25°/x. 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. 79 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 10. 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. 80 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) Components of Fund Balance Norspendable: Perpetual Care Principal Imentoy Prepaid Items Total Nonspendable Restricted for: Public Safety Local Option Sales Tax Debt Serdce GO Bond Projects State Funding Grant Agreement Affordable Housing Notes Receivable Property Held for Resale Public Safety Employee Benefits Other Restncted Total Restncted Committed to: Emergency Fund Total Committed Assigned to: Library Programs Senior Center Programs Replacement and Acquisition Reserves Other Assigned Total Assigned Unassigned: Total Fund Balances 11. Risk Management June 30, 2017 - 2,441,357 - - - 2,441,357 224,712 - - - 757,771 982,483 9,973,829 2,441,357 15,537,011 7,756,146 38,207,719 73,916,062 5,198,779 - - - - 5,198,779 5,198,779 - - - - 5,198,779 814,236 - - - - 814,236 13,882 - - - - 13,882 378,811 - - - - 378,811 135,390 - - - - 135,390 1,342,319 - - - - 1,342,319 24,793,417 - - - - 24,793,417 $ 42,096,263 $ 2,520,948 $ 15,537,011 $ 7,756,146 $ 38,471,329 $106,381,697 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, 2017 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 nine 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. 81 Bridge, Street and Traffic Other Employee Control Debt Governmental General Benefits Construction Serdce Funds Total $ 69,000 $ - $ - $ - $ - $ 69,000 - - - - 263,610 263,610 718,919 79,591 - - - 798,510 787,919 79,591 - - 263,610 1,131,120 348,934 - - - - 348,934 8,021,582 - - - - 8,021,582 - - - 7,756,146 - 7,756,146 - - 15,537,011 - 27,356,404 42,893,415 - - - - 5,714,241 5,714,241 - - - - 3,911,201 3,911,201 - - - - 468,102 468,102 1,291,801 - - - - 1,291,801 86,800 - - - - 86,800 - 2,441,357 - - - 2,441,357 224,712 - - - 757,771 982,483 9,973,829 2,441,357 15,537,011 7,756,146 38,207,719 73,916,062 5,198,779 - - - - 5,198,779 5,198,779 - - - - 5,198,779 814,236 - - - - 814,236 13,882 - - - - 13,882 378,811 - - - - 378,811 135,390 - - - - 135,390 1,342,319 - - - - 1,342,319 24,793,417 - - - - 24,793,417 $ 42,096,263 $ 2,520,948 $ 15,537,011 $ 7,756,146 $ 38,471,329 $106,381,697 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, 2017 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 nine 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. 81 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 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, 2017 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, 2017 and 2016 are as follows: Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 2015-2016 $ 2,536,000 $ 827,000 $ 874,000 $ 2,489,000 2016-2017 2,489,000 706,000 906,000 2,289,000 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 $9,716,893. 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, 2017 and 2016 are as follows: 2015-2016 2016-2017 Current -Year Beginning -of- Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liability Estimates Payments Year -End 568,000 $ 7,035,000 350,000 7,356,000 82 $ 7,253,000 $ 350,000 7,321,000 385,000 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 12. Commitments and Contingencies Contractual Commitments The total outstanding contractual commitments as of June 30, 2017 are as follows: Fund Project Amount Bridge, street and traffic Paving and Bridge Construction, control construction Engineering Design and Consulting $ 22,051,540 Parking Parking Facility Restoration Repair 529,689 Wastewater Sewer Construction & Riverfront Crossings Park 3,563,486 Water Ground Storage Resevoir & Water Plant Computer 45,341 Sanitation Landfill Cell Reconstruction & Road Improvements 552,749 Airport Runway, S. Taxiway Extension, N T -Hangar Restroom 71,888 Stormwater Stormwater system improvements & Storm Sewer 26,317 Replacements $ 26,841,010 Developer Commitments In order to encourage development within designated TIF districts, the City Council has approved developer grants to 7 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 $25,526,444 exist, of which $330,157 is expected to be paid in the next fiscal year. These items are expensed in the period in which they are paid. There were no payments made in the current fiscal year. 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. 83 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 13. 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. 14. Accounting Change/Restatement Beginning fund balances for the General Fund and the Community Development Block Grant Fund (a nonmajor governmental fund) were restated to reflect the reclassification of deferred inflow of resources to restricted fund balance for notes receivable. Long-term notes receivable were previously recorded as a deferred inflow of resources, as their revenue was not considered available. However, in evaluating the balances during the current year, it was determined that the presentation would be more representative to reflect the long-term note receivable balances as part of restricted fund balance. Restatements of fund balances previously reported are as follows: (Amounts in thousands) Fund Fund Balances Ending June 30, 2016 as Previously Reported Effect of Reclassification of Deferred Inflow of Resources to Restricted Fund Balance Fund Balances Ending June 30, 2016 as Restated General $ 48,252 $ 1,249 $ 49,501 Other GoverrunentalFunds $ 16,851 $ 3,360 $ 20,211 15. Tax Abatements Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. 84 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 City Tax Abatements The City provides tax abatements for urban renewal and economic development projects with tax increment financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types of projects, the City enters into agreements with developers which require the City, after developers meet the terms of the agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic development grant or to pay the developers a predetermined dollar amount. No other commitments were made by the City as part of these agreements. For the year ended June 30, 2017, the City did not abate any property tax under the urban renewal and economic development projects. Tax Abatements of Other Entities Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2017 under agreements entered into by any entities. 16. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued seven statements not yet implemented by the City. The statements, which might impact the City's financial statements, are as follows: 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. 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. 83, Certain Asset Retirement Obligations, will be effective for fiscal year ending June 30, 2019. The objective of this Statement is to address legally enforceable liabilities associated with tangible capital assets. Statement No. 84, Fiduciary Activities, will be effective for fiscal year ending June 30, 2020. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Statement No. 85, Omnibus 2017, will be effective for fiscal year ending June 30, 2018. The objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. 85 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 Statement No. 86, Certain Debt Extinguishment Issues, will be effective for fiscal year ending June 30, 2018. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in -substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources resources other than the proceeds of refunding debt are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. Statement No. 87, Leases, will be effective for fiscal year ending June 30, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The City's management has not yet determined the effect these statements will have on the City's financial statements. 86 87 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, 2017 (dollar amounts expressed in thousands) Revenues: Property taxes Delinquent property taxes Tax increment financing taxes Other city taxes Special assessments Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total revenues Exp end itures/Expenses: Public safety Public works Hcaltb and social services Culture and recreation Community and economic development General government Debt service Capital outlay Business -type Total expenditures/expenses Excess (deficiency) of revenues over (under) expenditures/expenses Other financing sources and uses, net Net change in fund balances Balances, beginning of year Balances, end of year Sec Note to Required Supplementary Information. Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis $ 55,357 $ 1 - $ 55,357 1 2,226 - 2,226 2,868 - 2,868 3,521 10 3,531 24,573 14,592 39,165 5,718 39,954 45,672 1,168 1,754 2,922 98,992 57,798 156,790 22,963 - 22,963 7,948 - 7,948 301 - 301 13,782 - 13,782 8,105 - 8,105 8,166 - 8,166 15,218 - 15,218 32,903 - 32,903 109,386 66,545 175,931 (10,394) (8,747) (19,141) 25,551 11,995 37,546 15,157 3,248 18,405 85,925 107,044 191969 $ 101,082 $ 110,292 S 211,374 88 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 55,330 $ 55,330 $ 27 1 2,277 2,277 (51) 2,773 2,773 95 1 1 (1) 1,739 1,739 1,792 32,760 41,140 (1,975) 44,894 45,045 627 2,184 2,285 637 4,637 5,153 (105) 146,595 155,743 1,047 23,533 23,995 1,032 9,309 9,328 1,380 350 350 49 14,042 14,141 359 7,510 11,170 3,065 9,209 9,085 919 15,146 15,390 172 35,452 79,145 46,242 53,713 79,697 13,152 168,264 242,301 66,370 (21,669) (86,558) 67,417 18,080 27,319 10,227 (3,589) (59,239) $ 77,644 128,702 192,969 S 125,113 S 133,730 89 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2017 (dollar amounts expressed in thousands) Governmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis Revenues $ 98,992 $ (4,438) $ 94,554 Expenditures 109,386 (17,462) 91,924 Net (10,394) 13,024 2,630 Other financing sources and uses, net 25,551 (12,927) 12,624 Beginning Fund Balances 85,925 5,202 91,127 Ending Fund Balances $ 101,082 $ 5,299 $ 106,381 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues $ 57,798 $ 1,266 $ 59,064 Expenditures 66,545 (11,418) 55,127 Net (8,747) 12,684 3,937 Other financing sources and uses, net 11,995 (5,326) 6,669 Beginning Fund Balances 107,044 250,670 357,714 Ending Fund Balances $ 110,292 $ 258.028 S 368,320 See Note to Requ iced Supplementary Information. 90 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended Jane 30, 2017 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 $9,148,000 and expenditures by $74,037,000. 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. 91 92 City of Iowa City, Iowa Required Supplementary Information -Schedule of the City's Proportionate Share of the Net Pension Liability Municipal Fire and Police Retirement System of Iowa For the Last Three Years` (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 for which information is available. 93 2017 2016 2015 Citys proportion of the net pension liability 3697128% 3.704972% 3.778137% Citys proportionate share of the net pension liability $ 23,117 $ 17,406 $ 13,696 Citys covered payroll 10,019 9,716 9,648 Citvs proportionate share of the net pension liability as a percentage of its covered payroll 230.73% 179.15% 141.96% Plan fiduciary net position as a percentage of the total pension liability 7820% 83.04% 86.27% " 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 for which information is available. 93 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Municipal Fire and Police Retirement System of Iowa For the Last Ten Years (amounts expressed in thousands) 94 2017 2016 2015 2014 Statutorily required contributions $ 2,682 $ 2,782 $ 2,955 $ 2,906 Contributions in relation to the statutorily required contribution (2,682) (2,782) (2,955) (2,906) Contribution deficiency (excess) $ $ $ $ - City's covered payroll $ 10,347 $ 10,019 $ 9,716 $ 9,648 Contributions as a percentage of covered payroll 25.92% 27.77% 30.41% 30.12% 94 2013 2012 2011 2010 2009 2008 $ 2,383 $ 2,277 $ 1,654 $ 1,336 $ 1,425 $ 1,893 (2,383) (2,277) (1,654) (1,336) (1,425) (1,893) $ 9,122 $ 9,197 $ 8,310 $ 7,860 $ 7,601 $ 7,430 26.12% 24.76% 19.90% 17.00% 18.75% 25.48% 95 City of Iowa City, Iowa Votes to Required Supplementary Information - Pension Liability Municipal Fire and Police Retirement System of Iowa Year ended June 30, 2017 Changes of benefit terms: There were no significant changes of benefit terms. Changes of assumptions: Postretirement mortality changed to the RP -2000 Blue Collar Combined Healthy Mortality Table with males set -back two years, females set -forward one year and disableds set -forward one year (male only rates), with no projection of future mortality improvement. 96 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 For the Last Three Years' (amounts expressed in thousands) " In accordance with GASH Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASH 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 forthose years for which information is available. 97 2017 2016 2015 City's proportion of the net pension liability 0.3962696% 0.4159256% 0.4378904% City's proportionate share of the net pension liability $ 24,938 $ 20,549 $ 17,366 City's covered payroll 28,448 28,495 28,654 Citys proportionate share of the net pension liability as a percentage of its covered payroll 87.66% 72.11 % W61% Plan fiduciary net position as a percentage of the total pension liability 8L82% 85.19% 8261% " In accordance with GASH Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal year. Note: GASH 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 forthose years for which information is available. 97 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Iowa Public Employees' Retirement System For the Last Ten Years (amounts expressed in thousands) 98 2017 2016 2015 2014 Statutorily required contributions $ 2,645 $ 2,540 $ 2,545 $ 2,559 Contributions in relation to the statutorily required contribution (2,645) (2,540) (2,545) (2,559) Contribution deficiency (excess) $ $ $ $ - City's covered payroll $ 29,619 $ 28,448 $ 28,495 $ 28,654 Contributions as a percentage of covered payroll 8.93% 8.93% 8.93% 8.93% 98 2013 2012 2011 2010 2009 2008 $ 2,442 $ 2,327 $ 1,877 $ 1,780 $ 1,659 $ 1,522 (2,442) (2,327) (1,877) (1,780) (1,659) (1,522) $ 28,170 $ 28,833 $ 27,013 $ 26,764 $ 26,133 $ 25,151 8.67% 8.07% 6.95% 6.65% 6.35% 6.05% 99 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2017 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. 100 City of Iowa City, Iowa Required Supplementary Information — Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2017 101 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, 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% $ 35,972,242 14.3% July 1, 2016 June 30, 2017 $ $ 6,560,682 $ 6,560,682 0.00% $ 37,814,968 17.3% 101 102 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. Community Development Block Grant Fund — accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. 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. 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. 103 CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2017 (amounts expressed in thousands) Assets Equityin pooled cash and investment S 476 $ 24 $ Capital Special Revenue Receivables: Project, 430 - Metropolitan - Community Other Planning - Development Shared Organization - Economic Block Revenue and of7ohnson Other Development Gmm Crcants County Construction Total Assets Equityin pooled cash and investment S 476 $ 24 $ 5,029 S 227 S 19,703 S 25,459 Receivables: S 430 - - Property tax 327 - - - - 327 Accounts and unbilled usage - - 1 - - 1 interost 2 - 2 1 24 29 Notes - 3,833 - - - 3,833 Due from other government - 113 1,039 49 117 1,318 invenmries - - 264 - - 264 Restricted asset: 6 Equity in pooled cash and investment 27 476 8,544 9,020 Total assets S soz S 3.970 S 6,811 S 277 S 28,388 S 40,251 Liabilities, Deterred Iatl.a of Resources sad Fund Balances Liabilities: Account payable S - Contracts payable - Accrued liabilities - Advances from other funds - Due to other government - Liabilities payable from restricted asset: Deposits Advances from gran rrs Total liabilities Deferred inflows ofresources: Unavailable revenues: Succeeding year property taxes Coants Other Total deferred inflows ofresourcos Fund balances: Nonspendable Restricted Total fund balances Total liabilities, deferred inflows ofresources and fund balances $ 23 $ 42 S 5 S 360 S 430 - - 93 93 444 91 444 1 533 85 15 - - 101 - - - 125 482 - 6,257 257 27,356 38,207 125 4 482 3,855 61521 257 27,356 4 6 6 27 110 137 24 289 20 914 1,247 323 - - - - 323 - 91 1 - 25 117 93 93 323 91 1 118 533 - - 264 - - 264 482 3,855 6,257 257 27,356 38,207 482 3,855 61521 257 27,356 38,471 S 805 S 3.970 S 6.811 S S 28,388 S 40,251 104 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Revenues Property taxes Intergovernmental Charges for services Use of money and property Miscellaneous Total revenues Expenditures Current: Public safety Public works Culture and recreation Community and economic development General government Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other Financing Sources (Uses) Issuance of debt Sale of capital assets Premium on issuance of bonds Transfers in Transfers out Total other financing sources and (uses) Net change in fund balances Fund Balances, Beginning, as restated Fund Balances, Ending For the Year Ended June 30, 2017 (amounts expressed in thousands) 29 1,110 9,205 291 614 Capital Special Revenue 67 Projects 366 4 20 Metropolitan 1 40 Community Other Planning 4 248 Development Shared Organization 296 1,201 Economic Block Revenue and ofJohnson Other Development Grant Grants County Construction Total $ 2,516 $ - $ - $ - $ - $ 2,516 29 1,110 9,205 291 614 11,249 - - 67 - 299 366 4 20 81 1 40 146 50 94 4 248 396 2,549 1,180 9,447 296 1,201 14,673 5,052 24 24 41 5,093 451 451 318 963 711 609 2,020 4,621 II II 597 1,641 2,238 318 963 6,360 609 4,188 12,438 2,231 217 3,087 (313) (2987) 2,235 - - - - 15,893 15,893 - - - - 2,024 2,024 - - - 85 85 - 4 336 268 5,204 5,812 (1,988) (175) (4,014) (1,612) (7,789) (1988) (171) (3,678) 268 21,594 16,025 243 46 (591) (45) 18,607 18,260 239 3,809 7.112 302 8,749 20,211 $ 482 S 3.855 S 6.521 S 257 S 27,356 S 38,471 105 106 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. Transit Fund — accounts for the operation and maintenance of the public transportation system. 107 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30, 2017 (amounts expressed in thousands) 108 Airport Transit Total Assets Current assets: Equity in pooled cash and investments $ 238 $ 4,992 $ 5,230 Receivables: Accounts and unbilled usage 24 15 39 Interest 1 15 16 Due from other governments 114 2,068 2,182 Inventories - 294 294 Prepaid item 3 - 3 Total current assets 380 7,384 7,764 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 111 50 161 Other post employment benefits asset 3 - 3 Capital assets: Land 12,158 2,630 14,788 Buildings 5,377 15,399 20,776 Improvements other than buildings 396 - 396 Machinery and equipment 281 10,332 10,613 Infrastructure 17,758 955 18,713 Accumulated depreciation (8,704) (14,784) (23,488) Construction in progress 66 476 542 Total noncurrent assets 27,446 15,058 42,504 Total assets 27,826 22,442 50,268 Deferred Outflows of Resources Pension related deferred outflows 14 686 700 Liabilities Current liabilities: Accounts payable 8 159 167 Contracts payable 51 - 51 Accrued liabilities 2 136 138 Employee vested benefits 2 115 117 Due to other governments - 16 16 Total current liabilities 63 426 489 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 10 6 16 Employee vested benefits 1 82 83 Net pension liability 49 2,428 2,477 Other post employment benefits obligation - 337 337 Total noncurrent liabilities 60 2,853 2,913 Total liabilities 123 3,279 3,402 Deferred Inflows of Resources Pension related deferred inflows 3 153 156 Net Position Net investment in capital assets 27,332 15,008 42,340 Restricted for future improvements 100 - 100 Unrestricted 282 4,688 4,970 Total net position $ 27,714 $ 19,696 $ 47,410 108 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, 2017 (amounts expressed in thousands) 109 Airport Transit Total Operating Revenues: Charges for services $ 345 $ 2,089 $ 2,434 Miscellaneous 2 62 64 Total operating revenues 347 2,151 2,498 Operating Expenses: Personal services 76 3,966 4,042 Commodities 105 646 751 Services and charges 239 1,883 2,122 420 6,495 6,915 Depreciation 997 887 1,884 Total operating expenses 1,417 7,382 8,799 Operating loss (1,070) (5,231) (6,301) Nonoperating Revenues: Gain on disposal of capital assets - 3 3 Operating grants 69 2,235 2,304 Interest income 1 29 30 Total nonoperating revenues 70 2,267 2,337 Loss before capital contributions and transfers (1,000) (2,964) (3,964) Capital contributions 58 395 453 Transfers in 113 3,272 3,385 Change in net position (829) 703 (126) Net Position, Beginning 28,543 18,993 47,536 Net Position, Ending S 27,714 S 19,696 S 47,410 109 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2017 (amounts expressed in thousands) Cash Flows ftom Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows used for operating activities Cash Flows ftom Noncapital Financing Activities Operating grants received Transfers from other funds Net cash flows from noncapital financing activities Cash Flows ftom Capital and Related Financing Activities Capital grants received Acquisition and construction of property and equipment Proceeds from sale of property Net cash flows used for capital and related financing activities Cash Flows ftom Investing Activities Interest on investments Net 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 used for operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Due from other governments Inventories Prepaid item Accounts payable Accrued liabilities Employee vested benefits Due to other governments Net pension liability Deferred outflows of resources Deferred inflows of resources Other post employment benefits asset/obligation Total adjustments Net cash flows used for operating activities Airport Transit Total $ 350 $ 2,147 $ 2,497 (344) (2,872) (3,216) (75) (3,900) (3,975) (69) (4,625) (4,694) 29 612 641 113 3,272 3,385 142 3,884 4,026 151 - 151 (472) (475) (947) 3 3 (321) (472) (793) 26 26 (248) (1,187) (1,435) 597 6,229 6,826 $ 349 $ 5,042 $ 5,391 $ (1,070) $ (5,231) $ (6,301) 997 887 1,884 3 (5) (2) (14) (14) (3) (3) 3 (301) (298) 9 9 - (28) (28) 9 442 451 (7) (347) (354) (2) (86) (88) 1 49 50 1,001 606 1,607 $ (69) $ (4,625) $ (4,694) 110 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. III CITY OF IOWA CITY COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2017 (amounts expressed in thousands) Deferred Outflows of Resources Pension related deferred outflows 167 6 38 170 381 Liabilities Current liabilities Accounts payable Equipment Central Loss Information 486 Accrued liabilities Maintenance Services Reserve Technology Total Assets 38 1 2 22 63 Current assets: 191 10 2,941 153 3,295 Equity in pooled cash and investments $ 13,209 $ 715 $ 14,842 $ 2,651 $ 31,417 Receivables: 30 1 1 18 50 Accounts and unbilled usage - - 157 - 157 Interest 42 2 37 8 89 Due from other governments 67 - - - 67 Inventories 466 - - - 466 Prepaid item - - - 12 12 Total current assets 11784 717 15,036 2,671 32,208 Noncurrent assets: Restricted assets: Otber post employment benefits asset 15 - 20 - 35 Capital assets: Land 45 - - - 45 Buildings 1,298 - - 233 1,531 Improvements other than buildings 50 - - - 50 Machinery and equipment 19,271 804 24 2,234 22,333 Infrastructure - 31 - 2,818 2,849 Accumulated depreciation (12,228) (307) (24) (2,787) (15,346) Construction in progress - - - 493 493 Total noncurrent assets 8,451 528 20 2,991 11,990 Total assets 22,235 1,245 15,056 5,662 44,198 Deferred Outflows of Resources Pension related deferred outflows 167 6 38 170 381 Liabilities Current liabilities Accounts payable 122 8 258 98 486 Accrued liabilities 31 1 2,681 33 2,746 Employee vested benefits 38 1 2 22 63 Total current liabilities 191 10 2,941 153 3,295 Noncurrent liabilities: Employee vested benefits 30 1 1 18 50 Net pension liability 600 20 118 659 1,397 Otber post employment benefits obligation - 7 - 90 97 Total noncurrent liabilities 630 28 119 767 1,544 Total liabilities 821 38 3,060 920 4,839 Deferred Inflows of Resources Pension related deferred inflows 38 1 8 41 88 Net Position Net investment in capital assets 8,436 528 - 2,991 11,955 Unrestricted 13,107 684 11026 1,880 27,697 Total net position S 21,543 S 1,212 S 11026 S 4,871 S 39,652 112 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, 2017 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues Charges for services $ 5,913 $ 238 $ 10,072 $ 2,132 $ 18,355 Total operating revenues 5,913 238 10,072 2,132 18,355 Operating Expenses: Change in net position 2,134 (14) 1,482 586 4,188 Personal services 978 36 205 956 2,175 Commodities 1,474 10 12 342 1,838 Services and charges 545 150 8,446 314 9,455 2,997 196 8,663 1,612 13,468 Depreciation 1,494 60 1 243 1,798 Total operating expenses 4,491 256 8,664 1,855 15,266 Operating income (loss) 1,422 (18) 1,408 277 3,089 Nonoperating Revenues: Gain on disposal of capital assets 84 - - - 84 Interest income 69 4 74 16 163 Total nonoperating revenues 153 4 74 16 247 Income (loss) before transfers 1,575 (14) 1,482 293 3,336 Capital contributions - - - 35 35 Transfers in 559 - - 763 1,322 Transfers out - - - (505) (505) Change in net position 2,134 (14) 1,482 586 4,188 Net Position, Beginning 19,409 1,226 10,544 4,285 35,464 Net Position, Ending $ 21,543 $ 1,212 $ 12,026 $ 4,871 S 39,652 113 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Cash Flows Rom Operating Activities Receipts Itom customers and users Payments to suppliers Payments to employees Net cash flows Itom operating activities Cash Flows Rom Noncapital Financing Activities Transfers Itom other funds Transfers to other funds Net cash flows Itom noncapind trouncing activities Cash Flows Rom Capital and Related Financing Activities Acquisition and construction ofproperty and equipment Proceeds from sale ofproperty Net cash flows used for capital and related bouncing activities Cash Flows Rom Investing Activities Interest on investments Net increase in cash and each equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income Eoss) to net cash (lows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Due Itom other governments Inventories PrLTaid iters Accounts payable Accrued liabilities Employee vested benefits Net pension liability Deferred oulllows ofresourccs Deferred inflows ofresourceS Other post employment benefits asset/obligation Total adjustments Net each flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of capital assets Itom government and others For the Year Ended June 30, 2017 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total $ 5,889 $ 238 $ 10,059 $ 2,132 $ 18,318 (2,702) (159) (8,365) (619) (11,845) (965) (36) (370) (924) (2,295) 2,222 43 1,324 589 4,178 559 - - 763 1,322 (505) (505) 559 258 817 (2,270) (5) 128 - (861) (3136) - 128 (2,142) (5) (861) (3,008) 57 4 71 15 147 696 12,513 42 673 1,395 13,447 1 2,650 2,134 29,283 $ 13,209 $ 715 $ 14,842 $ 2,651 $ 31,417 $ 1,422 $ (18) $ 1,408 $ 277 $ 3,089 1,494 60 1 243 1,798 - - (13) - (13) (Y4) - - - (24) 5 5 - - - (12) (12) (688) 1 93 49 (545) 4 - (164) 9 (151) 6 - (3) 7 10 106 3 23 117 249 (84) (3) (20) (79) (186) (23) (1) (2) (30) (56) 4 1 1 8 14 800 61 (84) 312 1,089 $ 2,222 $ 43 $ 1,324 $ 589 $ 4,178 $ - $ - $ - $ 35 $ 35 114 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. 115 CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY F[PNDS Project Green Assets Equity in pooled cash and investments Interest receivable Total assets Liabilities Accounts payable Due to agency Total liabilities For the Year Ended June 30, 2017 (amounts expressed in thousands) Balance Balance July I, 2016 Increases Decreases June 30, 2017 $ 175 $ 72 $ 84 $ 163 1 1 $ 175 $ 73 $ 84 $ 164 $ 10 $ 4 $ 10 $ 4 165 69 74 160 $ 175 $ 73 $ 84 $ 164 116 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 119 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 124 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 134 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 144 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 146 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. 117 118 In 11 I 11 itAd iIn ii ii ii ii i ti In k In :In itIn i ii ri iIn i Fi ri In 11 In 11 In 11Eii I In ii ii ti In EllIn if ti iIn i In , iI ri iii �i In In 11 ii ii i �i In 11 In I In fiI ii ii In Iniiri iIn iIn i ii i ii 11 II II'Ili I I II I"I'I I`I II:" II 11I flI' II'I I'I1 III III 119 II!I' hl I IIT ` ' I I CI III li'I ` 11 II I'I'I I I'I I CI1 El Ez 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 Year Property Tax Road Use Tax Hotel/Motel Tax Sales Tax' 2008 44,101 5,432 734 - 2009 47,861 5,254 713 - 2010 50,256 5,525 699 8,141 2011 48,831 6,068 776 8,912 2012 51,374 6,394 811 8,644 2013 51,836 6,589 872 8,858 2014 51,331 6,745 967 466 2015 53,056 7,231 1,057 - 2016 53,878 8,320 1,079 - 2017 58,375 8,672 1,137 - ' 1% Local Option Sales Tax went into effect 7/1/09 and was effective through 6/30/13. 1 1% Utility Franchise Fee went into effect 4/1/10. 124 utility Franchise Fee' Total 50,267 - 53,828 47 64,668 868 65,455 822 68,045 918 69,073 1,031 60,540 902 62,246 874 64,151 939 69,123 ))] : r : r j : : : : : })] \ } , \ \ z , \ , / )] \\ \\ }\ \\ \\ \\ }\ \\ \\ \\ , „ �, �� ®« :` \\ \` r : ;. rs rr f« \\ \; §5 «x s. :f r \{] z, z; :, , , �; :> !� _= z - � xx ss xx ss „ � -- � � }\] zz :: :: :: » §t §§ §§ }§ // !! :: «: «z »: ;: »: »: � �: �� \ ° �� �� �� �� �� �� �\ \\ \\ \\ ; f -- -- � /] .\ \\ }} \\ \\ \\ \\ \\ \\ \\ \\] \: :: �� �� �� // // �� /: /� )�! „ __ „ _, _� ,� � , : » <s ss /t :> >! ±\ <r <r <r zr =� „ . §§ " \« /2 :_ /)] Z>/ z z z z z/ z CITY OF IOWA CITY, IOWA PROPERTY TAX RATES - DDiECT AND OVERLAPPING GOVERNMENTS Last Ten Fixal Years (par $1,010 asscssW voluatlon) Sonme: Tax Levies forJohnson C uaty, Iowa;' compiled bythc Johnson Currnly Auditor. Tote IImlW rs Johnson Counly, City 4Iowa City Assessor, aM Agricultural Lxtenslon Iwss. "fax rats are per $1,0110 4asassed valor 126 Overhpphg Rates Total Cita at laws CKy Iowa City Krt6 and Direct& Collection Operating Debt Service TotalCity Johusou School Como.unit, State of Overhpphg Year. Millaoe Maboa IkLml= L ujn Diad^ f ollwr 105) E= 2008 13,511 3.986 19.299 6,K3 13.852 0,855 0,004 38.101 21119 13.414 4.303 19.919 9.803 14.192 0,852 0.004 40.568 2010 13.634 4,219 17.853 9.908 14.191 U.84U 0.003 40.595 2011 13.319 4.438 19.959 9.540 14,690 0.926 0.003 40.916 2012 13.193 4.649 ITM2 9.320 14,591 11999 0.003 40,755 2013 12826 4.443 17.269 9.1195 14,093 1.1199 0.003 39.499 2014 12.995 4.030 16.805 9.1199 13,688 1.055 0.003 38.638 2015 12,575 4.130 16.905 9,0fi2 13.900 1,058 0.003 38.528 2016 12M2 3.829 16.651 2228 13868 LU61 0.003 38.811 2019 13,0()5 3.598 16,583 TIM 13.989 1,080 0.003 38.948 Sonme: Tax Levies forJohnson C uaty, Iowa;' compiled bythc Johnson Currnly Auditor. Tote IImlW rs Johnson Counly, City 4Iowa City Assessor, aM Agricultural Lxtenslon Iwss. "fax rats are per $1,0110 4asassed valor 126 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Collection Total Tax Current Tax Year Levied Collections 2008 39,973 39,768 2009 43,168 43,118 2010 45,393 45,318 2011 47,789 47,826 2012 49,595 49,543 2013 50,407 50,139 2014 50,307 49,835 2015 51,609 51,292 2016 52,034 52,074 2017 55,330 55,331 Percent of Total as Levy Delinquent Tax Total Tax a Percent of Collected Collections' Collections Levy 99.5 70 39,838 99.7 99.9 18 43,136 99.9 99.8 17 45,335 99.9 100.1 8 47,834 100.1 99.9 1 49,544 99.9 99.5 3 50,142 99.5 99.1 1 49,836 99.1 99.4 3 51,295 99.4 100.1 0 52,074 100.1 100.0 0 55,331 100.0 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. ' Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. 127 CITY OF IOWA CITY, IOWA PRINCIPAL TAXPAYERS CVrent Year and Nire Years Ago (amounts expressed m thou.nI,) Ten lamest tacnacersr lxwjdlw ACIro (A. College lest, Prgrm) Cdu cmmnal l'estlng Seonee MM-Awmen LnergyC mpmry Publ. Cas and Llectric Utliry Ann Cerdln I rust (formerly Russell Cerdln) WamMusmg Midwcsbonc Bank 1'irerecial Dealer Pmpertes IC LLC (Billion Amo) Car Dealershlpe Proet r&GambleLLC Manufacturing Company B13(S Hawkeye Housing LLC Real lslme Wngmem Vesper Ira Cily LLC Real Lstme Developer Alpha Inc. IMusmal Nmiarel Computer Systems (Pcarsan) n m mon Senn as Jame A and Lmmtte Clark Apartment Kabrin Deve Cn 1.(,S hgme Dee(n) Real Lute Developer Plaza Towers LLL: Cnn"Hotd/Cnmmereml space MLHSM LC(Syeename Mall) Shopping Mall Russell Geofin l'ruckmg(bmpany United Normal lands Wholesale Distribotsm(many Intal 0.48 Soares: [City of Iowa CKy Assessm's (Nfice- 2016 Annual Report 2008 n of Total Taxable Taxable 191U== Rant 191U== 201'7 mTot.l Taxable Taxable 191U== Rant lalna M1nn S 14.m5 _ 1.42 % S 49,991 1 1.40 % 44,496 1 Lm 31,555 2 0.92 - - N/A 22,8m 3 0.67 - - N/A 21,066 4 0.62 - - N/A 18,889 5 0.55 11,985 10 0.49 16,459 6 0.48 - - N/A 15,328 7 0.45 - - N/A 14,358 8 0.42 - - N/A 13,949 9 0.41 16,727 5 0.67 12,815 In 037 28,506 3 1.17 - - N/A 19,267 4 0.79 - - N/A 15,300 6 0.63 - - N/A 15,011 7 0.62 - - N/A 14,611 8 0.60 - - N/A 13,059 9 0_+4 - - N/A $ 212,997 %.76 "-o S '_15.046 6.29 % 128 129 CITY OF IOWA CITY, IOWA PRINCIPAL WATER SYSTEM CUSTOMERS C)arrent Year aM Nim Years Ago Proal Water System Charges Sources: Clty of Iowa C11y Rcvcnne D'mision $ 7,976,536 130 $ 9,156,005 2008 W17 CnafnmcLb= Llil= Bak muwmt.® Llil= Ruk zuunr.® Prmbr&Gamble $ 630,949 1 7.91 % $ 768,168 1 8.39 % Vrserans Administration Medical Center 98,229 2 123 115,589 2 1.26 Mark IV Apts - - N/A 69,6113 3 0.76 Campus Apartmcros 65,318 5 0.82 65,672 4 0.72 Wr, Hospital 72,710 3 0.91 65,422 5 0.71 University of ova (Mayflower Apartments) 42,709 8 0.54 43,148 6 0.47 (Mkmll Rdiarwnt Residence - - N/A 39,154 7 0.43 Seville Apr - - N/A 37,563 8 0.41 Iowa City Sohool Dlstrlot - - N/A 35,999 9 0.39 RHD Iowa City LLC DHA Shcmmn - - N/A 33,165 10 0.36 Dolphin Lake Prant(Rns Pmperdes Mngim) 67,054 4 11.84 - - N/A Roberfs Dairy 63,503 6 0.81) - - N/A ACI 511,923 7 064 - - N/A Lear Corp 38,531 9 0.48 - - N/A Sheraton l nnMoli&y l an 34,970 10 0.44 - - N/A $ 1,164,89fi 14,61 % S L'_731ffi 13.911 % Proal Water System Charges Sources: Clty of Iowa C11y Rcvcnne D'mision $ 7,976,536 130 $ 9,156,005 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 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 2017 267,511,531 9,156,005 Sources: City of Iowa City Revenue Department Notes: IBeginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage. 131 CITY OF IOWA CITY, IOWA PRINCIPAL SEWER SYSTEM CUSTC C)arrent Ycar aM Nim Years Ago fatal Sewer System Charges Sous: City of Iowa City Rev . Department $ 12,221,969 132 $ 12,404,360 21f% W17 LR5wmcLb= Lkil= Zak mUWAr.oa Lkil c gypkr mumut.® University of Iowa $ 2,019,440 1 1651 % $ 1,860,993 1 15.1X1 % P.tor&Gamble 1,131,315 2 9,26 1,086,165 2 8.76 Iowa City larrfill 106,445 9 0.89 159,650 3 IN Vderans Administration Medical Center 110,306 5 0.911 135,049 4 1.119 Wr,Hospital 118,333 4 0.99 104,653 5 11.84 Mark IV Apts 66,229 10 0.54 91,51111 6 0.94 Campus Apartmrnts 85,198 8 0.911 96,669 9 0.62 University of Iowa Mayflower 91,611 9 0.59 68,568 8 0.55 Oakmll Rctlmmrnt Itc &,ncc - - N/A 55,988 9 0.45 RBD Iowa City LLC DBA Shcmmn - - N/A 53,955 111 0.43 Dolphin lake Prant (tns Props Mngim) 110,129 6 0.911 - - N/A Robcrfs Dairy 160,445 3 1.31 - - N/A $ 3,999,451 32.55 % $ 3,692,990 29.99 % fatal Sewer System Charges Sous: City of Iowa City Rev . Department $ 12,221,969 132 $ 12,404,360 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 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 2017 277,712,785 12,404,360 Sources: City of Iowa City Revenue Department Notes: IBeginning in March 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage. 133 O CC CC f� O r V1 r M r Ly �O V1 N N L� r V M M U O m Y00. M N N N N y L O N L W G N W vl N N V O N W P F F AN O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N V^ V1 CC V^ f CC r M r vl vl cC vl cC O O M � N O V^ O` M CC CC M M f V1 O` V^ N oc u � 9 vet N cc O f vt vt O` V^ U U F O f r O` M vl r O O 'O CC M M CC CC CC O` O` 3 p biL G w M t . V co Vl N V 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O v o 0 0 0 0 0 0 0 0 o v zG N M f r V M O M N V G vl vl f O` V^ cC vl ON � N v o 0 0 0 0 0 0 0 0 o v zG PF 01 i 9 MOR„ o s O � R Dc� o ♦+ Q V L Y z a: N Vl Pi 0 0 0 0 0 0 0 0 0 0 api � A 7 w v m R 9 aN c$ a Dc� o N Vl Pi api � A 7 w y N a kL�L OC L O ^� R L rr � Qi QI gz L 7 a, Qi � tai W f. O � T � � U � A 3 � � L oo o N M n z"�a 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Notes: Principal 7,323 8,418 9,354 10,386 13,294 16,465 13,560 12,564 13,230 13,305 Last Ten Fiscal Years (amounts expressed in thousands) Interest 3,556 3,364 3,064 2,889 2,543 2,339 1,903 1,669 1,475 1,597 Total Debt Service 10,879 11,782 12,418 13,275 15,837 18,804 15,463 14,233 14,705 14,902 Total General Governmental Expenditures and Transfers 99,178 102,607 108,950 120,424 119,242 129,814 104,394 111,632 112,832 138,957 1 General Fiend, Special Revenue Fiends, Debt Service Fiend and Capital Projects Fiends. 2 Beginning in FY 13, Taxable Urban Renewal Revenue Bonds are also included. 136 Ratio of Debt Service to General Expenditures .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 .11 : 1.00 Name of Governmental Unit City of Iowa City Iowa City Community School Districts Johnson Countys Clear Creek- Amana Community School Districts Kirkwood Comm. Colleges Total Overlapping Debt Total Direct & Overlapping Debt Per capita assessed value CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2017 (amounts expressed in thousands, except per capita) Iotal General Percent Amount Long-Ierm Applicable Applicable Direct Debt to the City of to the City of Debt/Actual Outstandine Iowa City Iowa City Market Value i Per Capita $ 67,950 100.00 % $ 67,950 1.27 9-0 $ 913.3310 3,205 57.23 1,834 0.03 24.6512 10,970 42.54 4,667 0.09 62.7302 58,795 0.04 26 0.00 0.3495 79,468 14.17 11,261 0.21 151.3616 152,438 17,788 239.0925 $ 220,388 $ 85,738 1,152.4235 S 71,914 I Long term debt outstanding includes only GO debt. City Property Assessed Value of 5,350,228 came from the Iowa Department of Management 3 Population for FY 17 of 74,398 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. 137 911 / ) ± R 0 0 0 0 0 0 0 0 0 0 0 00 0 a � M L 0 0 Y 0 0 R G W w O vi vS v vS oo O �c O m O v O o vS vi O o� vS t� vS w V oOc O R vt P �C vt m o0 O N O V N P •� N ti ti ti O P P O vt �C -� �O p oo m m V o� cv Qi v+ 7 G vi o0 0 0� 00 � m oo oo oo �c 0 �0 v m cv cv � O Pa v3 a � 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy O O y �c m N o0 o m �c o0 00 0 a � M L 0 0 Y 0 0 R O k � P 0 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy N �c v �c m N o0 o m �c o0 00 0 0 x 0 0 0 0 0 0 0 0 O k � P 0 V V� 0 r� 0 rMi V oOc O R vt P �C vt m o0 O N O V N P •� N ti ti ti O P P o0 vt �C -� �O p oo m m V o� cv cv vi o0 0 0� 00 � m oo oo oo �c vi v m cv cv � O v3 a � o fyi v3 L Qi 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O R vt P �C vt m o0 O N O V N P •� N ti ti ti O P P o0 vt �C -� �O L N -� O oC �C v m N -� cv '•I Pr O v3 F v3 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O R O O vt O O O vt vt vt O vt Vl •� v o� .-. ri o vi �c x o� o o .w L N -� O oC �C v m N -� cv '•I Pr G v3 H b9 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O R O O vt O O O vt vt vt O vt Vl •� v o� .-. ri o vi �c x o� o o .w •q m t� 00 0o t� vi v m N cv � Pr v3 0 0 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N Fy Fiscal Year Ended June 30 2008 2009 2010' 2011 2012 2013 2014 2015' 2016 2017 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Net Revenue Available for Revenue Expenses' Debt Service Annual Debt Service' Ratio of Principal Interest Total Coveraee 4,995 2,454 2,541 355 606 961 2.64 5,630 3,024 2,606 370 584 954 2.73 5,509 3,149 2,360 390 504 894 2.64 5,389 2,920 2,469 420 391 811 3.04 4,945 3,034 1,911 500 339 839 2.28 5,122 3,549 1,573 515 324 839 L87 5,365 2,969 2,396 530 308 838 2.86 5,620 3,828 1,792 540 254 794 226 Wastewater Treatment Revenue 2008' 13,332 4,581 8,751 4,105 3,071 7,176 L22 2009' 13,462 5,202 8,260 4,260 2,813 7,073 L17 2010' 13,174 5,050 8,124 4,205 2,307 6,512 L25 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 L29 2016 12,681 6,513 6,168 3,520 1,175 4,695 131 2017 13,383 6,357 7,026 3,625 985 4,610 L52 Water Revenues 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 2017 9,529 6,332 3,197 1,760 524 2,284 1.40 Notes: I Excludes depreciation and interest. Includes principal and interest ofrevenue bonds only. 3 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.I0. 5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1. I0. 6Refunded 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. 140 R O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O R= O O O O O O O O O O O O O O O O O O O O bL rTi vl O O O vl vl vl vl vl vl O O vl O O vl O vl vl O � •� 9 P o0 P o0 00 00 00 00 m vl M G R a �„vl vl vl vl vl vl vl vl vl vl vl vl vl O vl O O O O O O ve i civ C � r- N R Lii F � 00 00 Q` O r. W O Co N . . . . . . . . . . M O 0' P o0 P o0 00 00 00 00 m vl M G R a 0 G ani oVo rmi o civ civ oc � r a M W L Y N s. Y h y � O F r � v sr> � 0 N s. a w y3 m t 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 0 0 0 0 0 9 R O O O vl O O O O O vl O vl vl O vl vl vl O vl O O _ •� -, �n � � a` w � �c a` w a` a` a` a` w o0 00 00 � �' U G O O O O O O O O O O O O O O O O O w y N N N N N N N N N N N N N N N N N N N N a z Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total Fiscal Year �uii 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Principal $ 8,870,000 3,580,000 3,465,000 3,820,000 3,980,000 2,660,000 2,085,000 Sewer Interest $ 985,265 756,332 592,850 447,400 284,625 152,500 52,125 S 28,460,000 S 3,271,097 Principal $ 7,190,000 1,455,000 1,510,000 1,565,000 1,630,000 1,690,000 1,755,000 1,745,000 1,325,000 555,000 Water Outstanding Interest $ 517,837 394,143 279,854 237,965 193,041 146,190 97,145 55,826 26,082 6,244 Total $ 9,855,265 4,336,332 4,057,850 4,267,400 4,264,625 2,812,500 2,137,125 $ 31,731,097 (continued) Total $ 7,707,837 1,849,143 1,789,854 1,802,965 1,823,041 1,836,190 1,852,145 1,800,826 1,351,082 561,244 $ 20,420,000 S 1,954,327 S 22,374,327 142 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Taxable Urban Renewal Principal $ 130,000 135,000 135,000 140,000 140,000 1,1 10,000 1,1 10,000 1,105,000 1,105,000 1,1 10,000 990,000 895,000 915,000 940,000 965,000 995,000 815,000 840,000 865,000 890,000 $ 15,330,000 Outstanding Interest $ 74,035 456,495 454,335 451,635 448,695 445,475 413,045 380,345 347,495 314,345 280,725 250,365 222,495 193,820 164,325 133,950 102,300 77,850 52,650 26,700 $ 5,291,080 143 Total $ 204,035 591,495 589,335 591,635 588,695 1,555,475 1,523,045 1,485,345 1,452,495 1,424,345 1,270,725 1,145,365 1,137,495 1,133,820 1,129,325 1,128,950 917,300 917,850 917,650 916,700 $ 20,621,080 144 Retail Sales' 958,509,729 905,139,461 725,329,723 741,407,021 767,122,555 793,201,342 649,794,164 838,853,686 853,258,347 874,928,988 CITY OF IOWA CITY, IOWA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Tcn Czlcndm Years Pec Capita Calendar Personal Per.. al Average School unemployment Year Ponelatioe° Income, Income, Increase Enrollment° Rate' 2008 67,831 5,981,912 40,201 3.47 12,911 3.1 2009 69,086 5,943,149 39,214 -2.46 13,149 4.3 2010 67,862 6,039,549 39,477 0.67 13,319 5.0 2011 68,947 6,616,394 42,471 7.58 13,638 4.8 2012 68,947 6,956,611 43,809 3.15 13,862 4.1 2013 70,133 7,217,188 44,608 1.82 14,057 3.8 2014 71,591 7,594,813 46,214 3.58 14,162 3.5 2015 73,415 7,846,426 47,036 1.80 14,495 2.9 2016 74,220 8,031,750 47,574 1.14 15,186 3.2 2017' 74,398 8,217,043 48,672 2.31 15,299 3 Sources and Notes: I Personal Income and Per Capita Pcmnnal Income based on metropolitan Iowa CiTy/Coralvil le and based on figures from Burcau of Bconomic Analysis. Pcmnnal Income expmssed in thousands. Iowa City Community School District and local private schools 'Iowa Workfurcc Development Ccnmr 4 hmva Rctail Salcs & Usc Rcport, Iowa Department of Rcvcnuc and Financc. Fiscal year cudingJunc 30. ' Pcmnnal Income and Pcr Capita Pcmnnal Income for 2017 am not available. Amounts projmted based on average increase over pmvious 9 years. .US Ccnsus Bumau 144 Retail Sales' 958,509,729 905,139,461 725,329,723 741,407,021 767,122,555 793,201,342 649,794,164 838,853,686 853,258,347 874,928,988 MY OF IOWA CITY, IOWA PRINCIPALEMPLOYERS Cbrrcnt Yaar and Nim Yaars Ago Scuroas: Iowa Cq Ama Uavakp.nt Croup Various Lmpinycrs 145 2008 201] E..b ms EmPb vas Rauk �.Ume E.b vas Rauk Unbcrsilyoflm,m 2,236 1 312 % 30,110 1 29.1 % Vatamns Adminiamatbn Madkal Carter 1,351 5 L5 2,300 2 22 Iowa City Comnmmily School UlsMct 1,900 2 1.9 1,1004 3 1.8 Macy Hospdal 1,310 4 L5 1,349 4 1.3 ACI 'l oo.(formmlg Ammkan(Wkga Tasting Program) 1,(6 3 LS I,744 5 1.2 H,Vaa I,1oo 6 1.3 1,222 6 1.2 NCSPcarmn 982 9 L1 1,150 9 1.1 Proctor&CamUk 664 10 0.9 1,130 8 1.1 City of Iowa City - - N/A 942 9 0.9 Johnson(bunty - - N/A 544 10 0.5 Systams tmlimitN 681 9 0.8 - - N/A Imarretbrel Arrtmmti Componaats(formrrly Laar (orp) 950 8 0.8 - - N/A 38,559 428 % 41,103 40.5 % TotalEmpla, a 90,300 103,400 Scuroas: Iowa Cq Ama Uavakp.nt Croup Various Lmpinycrs 145 CITY OFIOWA CITY, IOWA FLTLTIhIE EQLTYALE\T CITY GOVFICNhIF\T EMPLOYEES 11Y FC�-CTIO\ W H I w I'irsl vers I'WFJ ctquivnlw1 Lmplk, nv afJ-30 3008 2009 3010 2011 3013 3013 3014 Yublin 9nNy 4i_14 4114 4114 4i_14 4ib! 435i 4513 Yaliw 96 '5 1U3 '5 1(. Yb 9] IUi I15 AnimnI IWO fi 6 6 6 6 - - 1im 57 57 57 M l5 61 65 I,li—S-i- 153b 1555 1555 1555 1555 1555 1355 Yublin Wak, 4 4 4 4 4 4 4 Yublin Wk,Admin 66 6 6 56 56 56 _ 1inginwing' II35 1135 1135 3 3 5 6 Ilad R —y - - - ua U9 04 03n Culwrnnnd Riuwlinn 5 5 5 5 5 _ _ YnAs and R - Admin '65 '63 '63 '6'4 '153 '341 91 R—u— 1542 154' 154' 154? 154? 154? 154' P,R, 13 13 13 13 13 13 13 fern C13U Mmnlwnnw LJbmn 4i_14 4114 4114 4i_14 4ib! 435i 4513 S�mi¢1 631 631 631 631 65 65 65 Cmmowily and ll -.norma lkrnlalmiinl K95 905 905 YI YI K4 K95 <iini+nl <iwnmminl Oly C—il Cily l:LA 4 4 4 4 4 4 4 Cily All amny 66 6 6 56 56 56 56 Cily Mnnngl3 3 3 3 3 3 5 6 Pur—1 4 4 4 4 4 4 3 Humnn RiBFI, 5 5 5 5 5 _ _ 1 im— '65 '63 '63 '6'4 '153 '341 91 (iavumo.:nl"ildin" 496 4% 4. 4% 013 483 483 L,,, Camvvnlnn 0'5 05 0'5 - - - - Immil• 5475 5K5 5K5 56'5 56� - - l'iW Ruin un Ln9luviv lknnfl� 02` 029 029 U?fi 055 (155 (155 CIV Riudr 1 Ilixd Nifynlmm (imnlr 1 fi 1 fi ummmwiq 39g 3. 3x8 3_g3 3_u », z9g UniwA:ily Yr, - - - - - U? - J .Mw 1n8inwing 115 115 115 115 115 115 115 11-1, 25 ?55 ?55 ?55 X55 ?55 ?55 MK)A:C R,M-l) JCC(%i) fifi fifi fifi lift fifi 5fi 5fi (IIF-SLv Rnvin u�� Ifi Ifi2 LibmrylkvJalmiinl (ipi Wl Y,jl [, 3 5 6 6 Inimnl 4rviw Ywd� Infa�mnlnn J -h-1 gy L3 L3 L3 113 II b IU tlfi Ym Lquipminl 11m 11m 11?fi 11?fi 11?fi IO 75 IO 75 Us1mI S -vi— 075 075 075 075 075 U]fi 05 Rirk M ... W ... 1 IT 193 193 ?UI IX IX Ib 13u4— f ylw AWivilL, .Being 3'75 33 v'?5 3'75 3'75 '1 '5 '6 '5 M-, lin-if - - - - - 51 75 51 '5 W-1-1-Iw1min, S5 ?56 ?5fi 3fi ?54 ?54 ?44 Wnl- 3?75 3?75 3?75 3?75 3?75 3?75 3I 75 1-iWlm 34 n5 31n5 35X5 35X5 31x5 31 K5 35K5 Ai,,,l Ifi 1 7 1 7 1 7 1 7 1 1 11W ld"'iad 619 6. 644 fi. fi. fi. fi. Y1-mre1- _ 19 19 19 ?1 ?1 ?1 HawingAWbanly 13?5 13?5 13?5 13?5 13?5 I3 1b 1219 l aWl 614x1 fi2916 .0 U3 .337 .714 fi2391 615 Ifi 8 -- Ci,, Ym.-ml Yl - 146 2015 2016 3017 105 105 I05 M M M 1355 1? 55 135 1?1 1� 16 151 101 151 13 13 16 4513 M.77 M.17 61 7 KYS H) 11ai 7 7 7 4 4 4 56 55 55 6 105 105 _47 07 13 533 033 055 055 055 ?YM ?Mi 015 3Y 05 353 '5 '5 ?55 56 07 07 5 4 9. YMfi YM IU 75 10 75 IU 75 05 1 US Ix LM LM a u �L 5125 5LLi 53 h3 ad A 4 i i 3L75 35 MS 3335 315 1 1 5fi3 2fi ?fi ?1 IU IY IU IY Yfi ()7. 59iY 51Y_MY I l4yi—mg m IY 13, Animal S -,i— i, wdu Yali- T Ikginnmg m IY 13 O—iwli - Uivi,ian Fxv Fwn nwvul [mm Innnw In Cily Mnnngu W Lin IY 131—il f F (i Ilnndl L,1,6- I ,d W ym lY lfi( W vul fn L 'gyp': Iwd k, th,U-1 I ,d W g in IY 17, (1piWYllY LL 'g 147 148 CITY OFIOWA CITY, IOWA OPERAT1eGI\'DICATORS 11Y 117eCTIO\ Las "fen fiscal Years 2013 2016 2012 2008 2009 2010 2011 2014 2015 2017 Publc Safety Police r Physlealaacsts 6,434 6,486 5,910 6,590 5,911 4,468 6,192 5,595 5,465 4,000 Traffic Violators 5,827 4,460 4,446 3,403 3,761 2,499 3,718 3,356 2,989 2,387 Pircr Number oFealls answered 4,257 4,152 4,472 4,605 5,173 4,713 5,828 filllfi 6,974 5,354 Inspections concluded 1,712 1,959 2,145 1,806 1,970 1,431 2,032 1,9113 2,459 817 Parking Paddng Violations 147,673 126,050 118,717 1119,553 96,117 88,9119 isbisw 65,196 57,549 62,930 Wsstcwster "I'ramment Daily average treatment in million gallons 12.81 1234 1286 10.37 8.28 9.14 1002 9,76 10.48 832 Maximum dairy rapacity ofplant in million galbns 41A 41A 41.1 41.1 41.1 41.1 41.1 433 433 433 Number of sawn syscm customers 22,9119 23,161 23,344 23,527 23,529 24,059 21,389 24,533 25,085 25,485 Water Dailyavcra, consumption on million gallons 5.48 5.51 5.48 5.51 5.49 5.54 5.64 5.33 5.32 5.50 Maximum daily capacity of plant in million galbns 16.7 16.7 16.7 16,7 I69 16,7 I69 16.7 16.7 I69 Cbsmmcrs by Classification Rcsidcntial 23,1197 23,391 23,657 23,875 24,086 24,442 21,790 23,089 23,638 24,025 Commercial 1,465 1,494 1,481 1,498 1,489 1,491 1,491 1,409 1,415 1,425 Musrlal 14 15 15 15 15 15 15 14 14 14 (fiber 138 144 153 156 200 200 202 135 131 134 1.1 CSsbmcrs 24,714 25,1144 25,3116 25,544 25,790 26,152 26,498 21,647 25,198 25,598 Sanitarian NumbermfCbsmmcrs 14,574 14,700 14,101 14,926 15,030 15,177 15,331 14,811 15,620 15,917 "I'mars, 8,104 8,747 8,869 8,%9 8,935 8,956 9,160 $L0 9,476 9,6n Landfill "1'anregc 132,760 140,810 150,369 147,265 148,953 111,445 115,624 123,692 126,875 137,125 Soares: Various eitydivisions. Not,: o Numbers am based on a calendar year and 2017 figuas as eampledthrough 10/15/17. 148 CITY OF IOWA CITY, IOWA CAPITAL ASSETS BY FUNCTION Ia4 Ten Wxal Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Publc Sefrty Palle stffiuns I I I I I I I I I I Ferrol unit, 17 17 18 18 18 18 20 20 20 24 Pim Stffiuns 3 3 3 3 4 4 4 4 4 4 Pis apparatus 9 9 9 9 11 11 11 II 10 10 Public Wmk, Streets Mlcs 269 290 272 272 275 26 299 281 283 200 Streetlights 3,x13 3,408 3,410 3,412 3,412 3,412 3,412 3,412 3,412 3,612 CLlture and Reerentum 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 Parlrs fit fit 40 41 41 42 43 46 46 49 Acreage I,603 I,603 1,335 1,354 1,441 1,506 1,897 1,897 1,902 1,932 Recrcafion Reemmon centers 2 2 2 2 2 2 2 2 2 2 Swimming pools 3 3 3 3 3 3 3 3 3 3 Bell diamonds 31 30 30 30 30 27 27 27 27 27 Tennis courts 12 12 12 12 12 12 12 12 12 9 Smeerficlds 25 20 20 20 20 20 20 20 20 20 Pickle Bell CmMs 8 1'utxal( rts 2 1.11 Basketball Courts 3 Padang Iaeilites 5 5 5 5 5 5 5 5 5 fi Spaees 3,085 3,1186 3,1186 3,086 3,086 3,086 3,086 3,086 3,1100 3,686 W.Ur,emer "I'rem.nt Miles ofsanitary sewer 288 289 291 292 294 295 298 300 301 304 Miles ofshmm sewer 118 120 122 124 127 128 131 133 ❑fi 139 Number oFtrcatrnctrt plants 2 2 2 2 2 2 1 1 1 1 Number ofsemiee emmeetors 22,576 22,875 23,1193 23,308 23,529 23,851 24,175 21,533 25,085 25,485 Wmer Miles ofemer mains 262 2n3 2q 264 266 268 271 273 275 277 Number ofeity rt ce fire hydrants 2,575 2,635 2,OR 2,680 2,735 3,3311 3,385 3,415 3,447 3,503 Sanitafion lanifills 1 1 1 1 1 1 1 1 1 1 Acreage 395 395 395 395 411 411 411 418 418 418 Sooms: Various eirydi,,nons 149 150 Compliance Section Tab EideBailly. CPAs d BUSINESS 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, 2017, 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 11, 2017. 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. 151 What inspires you, inspires us. Let's Talk. eidebailly.com 15A5 A..d.le Dr., St.. 101 i Dubuque, IA 52002-2299 i T 563.556.1790 i F 563.557.78A2 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, 2017, 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 entity'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. Dubuque, Iowa December 11, 2017 152 EideBailly. CPAs d BUSINESS 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, 2017. 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 perform 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 City of Iowa City, Iowa's compliance. Opinion on Each Major Federal Program In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the types of 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, 2017. 153 What inspires you, inspires us. Let's talk. eidebailly.com 15A5 Associates Dr., Ste. 101 i Dubuque, IA 52002-2299 i T 563.556.1790 i F 563.557.78A2 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 a 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. SGT Dubuque, Iowa December 11, 2017 154 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2017 U.S. Department of Housing and Urban Development: Direct program: CDBG - Entitlement Grants Cluster: Community Development Block Grants/ Entitlement Grants Community Development Block Grants/ Entitlement Grants Community Development Block Grants/ Entitlement Grants Cluster total 14.218 14.218 14.218 886,190 364,183 669,355 227,273 309,144 142,213 1,559,517 1,038,841 Home Investment Partnerships Program Federal Pass -Through Amounts Passed - Federal Grantor/Pass-Through CFDA Entity Identifying Federal Through to Grantor/Program or Cluster Title Number Number Expenditures Subrecipients U.S. Department of Agriculture: 192,082 Public and Indian Housing Pass-through program from: 135,284 Public and Indian Housing 14.850 Iowa Department of Agriculture: 260,638 Specialty Crop Block Grant Section 8 Housing Choice Vouchers Program - Farm Bill 10.170 15SCBGPIA0001 $ 13,236 $ 13,236 U.S. Department of Housing and Urban Development: Direct program: CDBG - Entitlement Grants Cluster: Community Development Block Grants/ Entitlement Grants Community Development Block Grants/ Entitlement Grants Community Development Block Grants/ Entitlement Grants Cluster total 14.218 14.218 14.218 886,190 364,183 669,355 227,273 309,144 142,213 1,559,517 1,038,841 Home Investment Partnerships Program 14.239 82,554 Home Investment Partnerships Program 14.239 62,823 Home Investment Partnerships Program 14.239 36,300 Home Investment Partnerships Program 14.239 10,405 192,082 Public and Indian Housing 14.850 135,284 Public and Indian Housing 14.850 125,354 260,638 Housing Voucher Cluster: Section 8 Housing Choice Vouchers 14.871 8,154,473 Public Housing Capital Fund 14.872 61,572 Public Housing Capital Fund 14.872 54,951 116,523 Total U.S. Department of Housing and Urban Development 155 12,971 39,521 3,000 55,492 10,283,233 1,094,333 Federal Grantor/Pass-Through Grantor/Program or Cluster Title U.S. Department of Justice: Pass-through program from: Iowa Department of Justice: Violence Against Women Formula Grants City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2017 Federal Pass -Through Amounts Passed- CFDA Entity Identifying Federal Through to Number Number Expenditures Subrecipients 16.588 VW -17 -04 -CJ $ 63,583 $ Direct program: Bulletproof Vest Partnership Program 16.607 Pass-through program from: Governor's Office of Drug Control Policy: Public Safety Partnership and Community Policing Grants 16.710 Direct program: Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Pass-through program from: Governor's Office of Drug Control Policy: Edward Byrne Memorial Justice Assistance Grant Program Total U. S. Department ofJustice U.S. Department of Transportation: Direct program: Airport Improvement Program 16.738 16.738 16.738 20.106 389 15 -CAMP -03 3,906 3,020 13,657 13,657 605 14 -JAG -158322 94,041 61,041 108,303 74,698 Pass-through program from: Highway Planning and Construction Cluster: Iowa Department of Transportation: Highway Planning and Construction 20.205 HDP -3715(652) --71-52 Highway Planning and Construction 20.205 IA -95-X018-371-15 Iowa Department of Transportation and Metropolitan Planning Organization of Johnson County: Highway Planning and 176,181 77,718 68,382 6,713,789 76,114 Construction 20.205 17MP0-MPOJC 147,608 Cluster total 6,937,511 156 Federal Federal Grantor/Pass-Through CFDA Grantor/Program or Cluster Title Number City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2017 Pass -Through Entity Identifying Number Amounts Passed - Federal Through to Expenditures Subrecipients U.S. Department of Transportation: (continued) Pass-through program from: (continued) Metropolitan Transportation Planning and State and Non - Metropolitan Planning and Research 20.505 17MP0-MPOJC $ 42,392 $ - Federal Transit Cluster: Direct program: Federal Transit — Formula Grants 20.507 Pass-through program from: Iowa Department of Transportation: Bus and Bus Facilities Formula Program 20.526 Cluster total 1,622,763 IA -2016-019-371- 16 #18520 242,614 1,865,377 Pass-through program from: Iowa Department of Transportation: Public Transportation for Nonurbanized Areas 20.509 IA -2016-027-371- 16 #18518 76,114 Transit Services Program Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 IA -2016-026-371-17 #18404 112,960 Highway Safety Cluster: Iowa Department of Public Safety: Governor's Traffic Safety Bureau: National Priority Safety Programs 20.616 PAP 17-405d- M60T, Task 24 21,451 National Priority Safety Programs 20.616 PAP 16-405d- M60T, Task 21 7,743 Cluster total 29,194 Total U.S. Department of Transportation 157 9,131, 930 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2017 Total U.S. Department of Homeland Security Total 158 495,755 $ 20,100,335 $ 1,185,287 Federal Pass -Through Amounts Passed - Federal Grantor/Pass-Through CFDA Entity Identifying Federal Through to Grantor/Program or Cluster Title Number Number Expenditures Subrecipients U.S. Department of Homeland Security: Pass-through program from: Iowa Homeland Security and Emergency Management Division: Disaster Grants — Public Assistance (Presidentially Declared Disasters) 97.036 FEMA DR -4187 -IA $ 28,513 $ Hazard Mitigation Grant 97.039 DR -4187-0003-01 467,242 Total U.S. Department of Homeland Security Total 158 495,755 $ 20,100,335 $ 1,185,287 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2017 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. 159 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2017 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 Pro Pram CFDA Number CDBG - Entitlement Grants Cluster: 14.218 Community Development Block Grants/ Entitlement Grants Highway Planning and Construction Cluster: 20.205 Highway Planning and Construction 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. 160 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2017 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: 2017 -IA -A Certified Budget—Disbursements during the year ended June 30, 2017, did not exceed the amount budgeted. 2017 -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. 2017 -IA -C Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 2017 -IA -D Business Transactions — No business transactions between the City and City officials or employees were noted. 2017 -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. 2017 -IA -F Council Minutes —No transactions were found that we believe should have been approved in the City Council minutes but were not. 2017 -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. 2017 -IA -H Revenue Bonds — No instances of non-compliance with the provisions of the City's revenue bond resolutions were noted. 2017 -IA -I Annual Urban Renewal Report - The annual urban renewal report was properly approved and certified to the Iowa Department of Management on or before December 1. 161 TrTT-7T I 3 IP14 moor CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356-5000 (319) 356-5009 FAX www.I cgov. org November 30, 2017 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Maintenance Worker I — Forestry 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 Worker I - Forestry. Lyra P. Dickerson, Chair N d O n—' 1 0 Ramiro Ortiz �C I — r Nathaniel Steele :::� C-) .<r-- m� m W IOWA CITY CIVIL SERVICE COMMISSION Lyra P. Dickerson, Chair A r. 12/18/2017 Net Neutrality Is Just the Tip of the Preemption Iceberg — CitiesSpeak CitiesSpeak From City Manager Fruin fl Fl Menu Late Handouts Distributed Net Neutrality Is Just the Tip of the Preemption Iceberg (Date) By Angelina Panettieri on December 15, 2017December 15, 2017 On Thursday, December 14. the Federal Communications Commission (FCC) voted 3-2 to overturn the current network neutrality framework in its Restoring Internet Freedom order. The final order, which returns internet service to a "Title I" service under the Telecommunications Act, will no longer require that internet service providers treat all web traffic equally and will allow ISPs to engage in blocking, throttling, and paid prioritization, provided they disclose those activities to consumers. The final order also contained a provision to preempt "utility style" state and local regulation of internet service providers, along with language indicating the FCC's intent to more broadly preempt state and local authority as necessary to uphold the orders intent. This move is the latest in a series by the FCC to limit the power of state and local governments to control broadband infrastructure and service within their jurisdictions. The majority of commissioners indicated during their remarks at the meeting that their long-term intent was to promote the US wireless industry through rollbacks in federal regulation, and preemption of state and local regulation. "Broadband service is not confined to state boundaries and should not be constrained by a patchwork of state and local regulations," said Commissioner Michael O'Rielly during the meeting, "and this is particularly germane to wireless services where mobile devices and the transmissions they carry can easily cross state lines." "A hodgepodge of state rules could severely curtail not only the next generation of wireless systems that we have been working so hard to promote," O'Rielly added, "but also the technologies that may rely on these networks in the future. Accordingly, any laws or regulations that conflict with or undermine federal broadband polices are preempted. Given my druthers, I would actually go even further on preemption, but I could only carry the debate so far today." Commissioner O'Rielly s words and similar statements by his colleagues should give cities pause when considered in combination with other efforts this year by the FCC to curtail local authority or drive a narrative that local governments are the primary obstacle to ubiquitous broadband availability and adoption in the US. The preemption provision in this week's net neutrality order is the tip of a much larger preemption iceberg looming in the future. Preliminary rulemaking activities undertaken by the FCC's Wireline Competition Bureau and Wireless Telecommunications Bureau this year indicated an interest by the agency in creating a competitive advantage for wireless providers. The preemptive ideas proposed by the FCC would limit local governments' ability to ensure equitable broadband infrastructure deployment in their communities and hamper local digital equity efforts to prevent redlining of broadband infrastructure. https:llcitiesspeak.orgl2Ol7ll2tl5lnet-neutmlityis-just-the-tip-of-the-preemption-iceberg/?utm_campaign=Newsletter&utm_medium=email&utm_sourc,. 1/3 12/18/2017 Net Neutrality Is Just the Tip of the Preemption Iceberg — CitiesSpeak The proposals included possible reforms to utility pole attachment fees, tighter restrictions on the time city governments have to review wireless facilities siting requests, particularly for "small cell" infrastructure, limits on what things cities may consider when deciding whether to approve or deny a site application, restrictions on what cities may negotiate in their agreements with providers, and even what they may charge for access to public property like the rights of way. FCC Chairman Ajit Pai this year also formed a new Broadband Deployment Advisory Committee. While the group was broadly described as working provide the FCC with guidance on how to expand broadband infrastructure deployment, it has focused solely on what it perceives as the main obstacle to broadband — state and local government action, and to a lesser extent, federal regulations — and not at all on what constructive federal policy or actions by industry could be taken to expand access and adoption across communities and income levels. While NLC has fought hard for local governments to have a place on this advisory committee, local government officials are still outnumbered ten to one by industry and other interests. Additionally, more than half of state legislatures or regulatory boards have taken action to preempt local control over "small cell" wireless facilities in the last few years, under the reasoning that compliance with local regulations and market -rate payment for use of public property is overly burdensome for wireless providers, and is quashing broadband development and investment. These preemptions have harshly limited local review processes, set strict caps on rents for use of public property, and effectively forced municipalities to subsidize wireless development for the sake of "streamlining" permitting processes ahead of the deployment of 5G wireless technologies. Nearly half of states have also placed roadblocks in front of the establishment of municipal broadband networks by cities or public utilities. Colorado, which requires local governments to hold ballot initiatives for residents' approval before investing in building fully or partially public networks, has seen intense lobbying in local elections by ISPs to prevent these investments. Most recently, Colorado ISPs spent nearly a million dollars on an unsuccessful campaign to prevent the City of Fort Collins from establishing a broadband utility. Combined with the overturn of net neutrality's common carrier requirements, cities have ever -fewer options for ensuring that their residents have affordable access to reliable, unrestricted broadband. NLC has pushed back on these preemption attempts, including the overturn of net neutrality, the Broadband Deployment Advisory Committee's unfair premise, and regulatory proposals to change the way infrastructure is governed by localities. While the net neutrality order will be fought in the courts by state attorneys general and others, cities must focus on the larger preemption threat within the federal government. Broadband infrastructure will be vital for the future of transportation, healthcare, education, and the American economy as a whole. Cities must fight to protect the ability to determine their own broadband destinies and those of their residents, rather than having them determined by the business decisions of an increasingly consolidated ISP market. About the Author: Angelina Panettieri is the Principal Associate for Technology and Communication at the National League of Cities. Follower heron twitter at @AngelinainDC. Tags: ajil t pai, broadband, Congress. connectivity FCC legislation, net neutrality, preemption, rtublicans� Technology https:/Icitiessp eak.org/2017/12/15/net-neutrality-is-just-the-Up-of-the-preemption-iceb erg/?utm_campaign=Newsletter&utm_mediu m=e mail&utm_so u rc.. 213 -2--7- DRAFT IP15 COMMUNITY POLICE REVIEW BOARD MINUTES — December 7, 2017 CALL TO ORDER: Chair Orville Townsend called the meeting to order at 5:30 P.M. MEMBERS PRESENT: Monique Green, Donald King, David Selmer MEMBERS ABSENT: Mazahir Salih STAFF PRESENT: Staff Kellie Fruehling/Chris Olney OTHERS PRESENT: Iowa City Police Chief Matherly RECOMMENDATIONS TO COUNCIL (1) Accept CPRB #17-03 (2) Accept CPRB #17-04 CONSENT CALENDAR Motion by King, seconded by Green to adopt the consent calendar as presented or amended. Minutes of the Meeting on 11/14/2017 Office Contacts November 2017 Motion carried, 4/0, Salih absent. NEW BUSINESS None OLD BUSINESS Proposed Ordinance Discussion, King mentioned that if the Board wanted to look at trying to change legislation they could use resources available from (NACOLE) National Association for Civilian Oversight of Law Enforcement which provides information regarding civilian oversight in law enforcement nationwide. Further discussion on this topic was deferred to the next meeting when Legal Counsel is present. PUBLIC DISCUSSION None BOARD INFORMATION None Olney noted that there is a voluntary training opportunity being offered for City Board and Commission Members. The training will cover Open Meetings Law, Public Records Law and Robert's Rules of Order. EXECUTIVE SESSION Motion by King, seconded by Green to adjourn into Executive Session based on Section 21.5(1)(a) of the Code of Iowa to review or discuss records which are required or authorized by state or federal law to be kept confidential or to be kept confidential as a condition for that government body's possession CPRB Dec 07, 2017 Page 2 DRAFT or continued receipt of federal funds, and 22.7(11) personal information in confidential personnel records of public bodies including but not limited to cities, boards of supervisors and school districts, and 22-7(5) police officer investigative reports, except where disclosure is authorized elsewhere in the Code; and 22.7(18) Communications not required by law, rule or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications from such persons outside of government could reasonably believe that those persons would be discouraged from making them to that government body if they were available for general public examination. Motion carried, 4/0, Salih absent. Open session adjourned at 5:37 P.M. REGULAR SESSION Returned to open session at 6:21 P.M. Motion by Green, seconded by King to accept CPRB Complaint #17-03 and CPRB Complaint #17-04 as amended and forward reports to City Council Motion carried, 4/0, Salih absent. January 9, 2018, 5:30 PM, Helling Conference Rm February 13, 2018, 5:30 PM, Helling Conference Rm March 13, 2018, 5:30 PM, Helling Conference Rm April 10, 2018, 5:30 p.m. Helling Conference Rm ADJOURNMENT Motion for adjournment by King, seconded by Green. Motion carried, 4/0, Salih absent. Meeting adjourned at 6:23 P.M. COMMUNITY POLICE REVIEW BOARD ATTENDANCE RECORD YEAR 2016-2017 (Meeting Date) KEY: X = Present O = Absent O/E = Absent/Excused NM = No meeting — =Not a Member TERM 11/7 11/15 12/15 1/10 2/14 3/14 4/12 5/9 7/11 7/31 8/8 8/29 9/12 10/10 11/14 12/7 NAME EXP. Joseph 7/1/17 X X X X X X X O/ — — -- — — — — Treloar E Marnhir 7/1/21 X O X X X O/E X O/ X X X X X X X O/E satin E Donald 7/1/19 O/E O/E O/E O/E O/E X X X X X X X X X X X King Monique 7/1/20 X X X X X X X X X O/E X X X X X X Green Orville 7/1/20 X X X X X X X X X X X X X X X X Townsend David 9/1/21 — — -- --- — — — X O/E X X O X O/E Selmer KEY: X = Present O = Absent O/E = Absent/Excused NM = No meeting — =Not a Member COMMUNITY POLICE REVIEW BOARD A Board of the City of Iowa City 410 East Washington Street Iowa City, IA 52240-1826 (319)356-5041 December 7, 2017 Re: Investigation of CPRB Complaint #17-03 This is the Report of the Community Police Review Board's (the "Board") review of the investigation of Complaint CPRB #17-03. BOARD'S RESPONSIBILITY Under the City Code of the City of Iowa City, the Board's responsibilities are as follows: 1. The Board forwards all complaints to the Police Chief, who completes an investigation. (Iowa City Code Section 8-8-7(A).) 2. When the Board receives the Police Chiefs report, the Board must select one or more of the following levels of review, in accordance with Iowa City Code Section 8-8-7(B)(1): a. On the record with no additional investigation. b. Interview /meet with complainant. c. Interview /meet with named officer(s) and other officers. d. Request additional investigation by the police chief, or request police assistance in the board's own investigation. e. Perform its own investigation with the authority to subpoena witnesses. f. Hire independent investigators. 3. In reviewing the Police Chiefs report, the Board must apply a "reasonable basis" standard of review. This means that the Board must give deference to the Police Chiefs report, because of the Police Chiefs professional expertise. (Iowa City Code Section 8-8-7(B)(2).) 4. According to Iowa City Code Section 8-8-7(B)(2), the Board can recommend that the Police Chief reverse or modify the Chiefs findings only if: a. The findings are not supported by substantial evidence; or b. The findings are unreasonable, arbitrary or capricious; or N O To: City Council DC7 x'--{ C C"') Complainant oo ( " City Manager Equity Director or Chief of Police N Officer(s) involved in complaint NO S4 From: Community Police Review Board Re: Investigation of CPRB Complaint #17-03 This is the Report of the Community Police Review Board's (the "Board") review of the investigation of Complaint CPRB #17-03. BOARD'S RESPONSIBILITY Under the City Code of the City of Iowa City, the Board's responsibilities are as follows: 1. The Board forwards all complaints to the Police Chief, who completes an investigation. (Iowa City Code Section 8-8-7(A).) 2. When the Board receives the Police Chiefs report, the Board must select one or more of the following levels of review, in accordance with Iowa City Code Section 8-8-7(B)(1): a. On the record with no additional investigation. b. Interview /meet with complainant. c. Interview /meet with named officer(s) and other officers. d. Request additional investigation by the police chief, or request police assistance in the board's own investigation. e. Perform its own investigation with the authority to subpoena witnesses. f. Hire independent investigators. 3. In reviewing the Police Chiefs report, the Board must apply a "reasonable basis" standard of review. This means that the Board must give deference to the Police Chiefs report, because of the Police Chiefs professional expertise. (Iowa City Code Section 8-8-7(B)(2).) 4. According to Iowa City Code Section 8-8-7(B)(2), the Board can recommend that the Police Chief reverse or modify the Chiefs findings only if: a. The findings are not supported by substantial evidence; or b. The findings are unreasonable, arbitrary or capricious; or c. The findings are contrary to a police department policy or practice, or any federal, state or local law. 5. When the Board has completed its review of the Police Chiefs report, the Board issues a public report to the city council. The public report must include: (1) detailed findings of fact; and (2) a clearly articulated conclusion explaining why and the extent to which the complaint is either "sustained" or "not sustained ". (Iowa City Code Section 8-8-7(B)(3).) 6. Even if the Board finds that the complaint is sustained, the Board has no authority to discipline the officer involved. BOARD'S PROCEDURE The Complaint was initiated by the Complainant on July 5, 2017. As required by Section 8-8-5(B) of the City Code, the Complaint was referred to the Chief of Police for investigation. The Chiefs Report was filed with the City Clerk on October 3, 2017. The Board voted on November 14, 2017 to apply the following Level of Review to the Chiefs Report: On the record with no additional investigation, pursuant to Iowa City Code Section 8-8-7(B)(1)(a). The Board met to consider the Report on November 14, 2017 and December 7, 2017. Prior to the November 14, 2017 meeting, the Board reviewed audio or video recordings of the incident. FINDINGS OF FACT On June 25, 2017 the Complainant came to the Police department to report he had been threatened and assaulted by a neighbor. Officer A interviewed the Complainant and witnesses regarding an allegation of assault and threats at an apartment complex. The Officer listened to all of their accounts and did not find sufficient evidence to file charges. ALLEGATION 1— Discrimination. Upon review of audio and video recordings in Incident 17-03, the Board found no evidence of discrimination by Officer A against the Complainant. Allegation 1: Not sustained None. VM014k 1:13 VM01 M11 N O Edd 8-330001- 0 3 11 -330001- 311 COMMUNITY POLICE REVIEW BOARD A Board of the City of Iowa City 410 East Washington Street Iowa City, IA 52240-1826 (319)356-5041 December 7, 2017 To: City Council Complainant City Manager Equity Director Chief of Police Officer(s) involved in complaint From: Community Police Review Board Re: Investigation of CPRB Complaint #17-04 0 R C-13 r a This is the Report of the Community Police Review Board's (the "Board") review of the investigation of Complaint CPRB #17-04. BOARD'S RESPONSIBILITY Under the City Code of the City of Iowa City, the Board's responsibilities are as follows: 1. The Board forwards all complaints to the Police Chief, who completes an investigation. (Iowa City Code Section 8-8-7(A).) 2. When the Board receives the Police Chiefs report, the Board must select one or more of the following levels of review, in accordance with Iowa City Code Section 8-8-7(B)(1): a. On the record with no additional investigation. b. Interview /meet with complainant. c. Interview /meet with named officer(s) and other officers. d. Request additional investigation by the police chief, or request police assistance in the board's own investigation. e. Perform its own investigation with the authority to subpoena witnesses. f. Hire independent investigators. 3. In reviewing the Police Chiefs report, the Board must apply a "reasonable basis" standard of review. This means that the Board must give deference to the Police Chiefs report, because of the Police Chiefs professional expertise. (Iowa City Code Section 8-8-7(B)(2).) 4. According to Iowa City Code Section 8-8-7(B)(2), the Board can recommend that the Police Chief reverse or modify the Chiefs findings only if: a. The findings are not supported by substantial evidence; or b. The findings are unreasonable, arbitrary or capricious; or G. The findings are contrary to a police department policy or practice, or any federal, state or local law. 5. When the Board has completed its review of the Police Chiefs report, the Board issues a public report to the city council. The public report must include: (1) detailed findings of fact; and (2) a clearly articulated conclusion explaining why and the extent to which the complaint is either "sustained" or "not sustained ". (Iowa City Code Section 8-8-7(B)(3).) 6. Even if the Board finds that the complaint is sustained, the Board has no authority to discipline the officer involved. BOARD'S PROCEDURE The Complaint was initiated by the Complainant on August 8, 2017. As required by Section 8-8-5(B) of the City Code, the Complaint was referred to the Chief of Police for investigation. The Chief's Report was filed with the City Clerk on October 30, 2017. The Board voted on November 14, 2017 to apply the following Level of Review to the Chiefs Report: On the record with no additional investigation, pursuant to Iowa City Code Section 8-8-7(B)(1)(a). The Board met to consider the Report on November 14, 2017 and December 7, 2017. Prior to the November 14, 2017 meeting, the Board reviewed audio or video recordings of the incident. FINDINGS OF FACT On July 29,2017 the Complainant called the police to report an arson at his apartment. The Complainant stated that his neighbor set his flowerpot on fire. After carefully checking the flowerpot, Officer A did not believe any fire was intentionally set and tried to explain to the Complainant about what he felt happened and that he would not be investigating any further. Officer A did enter the incident into the Call for Service system (CFS). ALLEGATION 1 — Discrimination. After reviewing video and audio worn by Officer A, the Board found no evidence of discrimination against the Complainant and that Officer A had entered the incident into the CFS and therefore submitted a report. The Complainant alleged Officer A failed to summon emergency medical services and left him alone during his medical emergency. After reviewing audio and video worn by Officer A, the Board found no evidence that the Complainant ever mentioned to the Officer he was having an immediate medical problem. The Complainant did mention a future operation, but since nothing was immediate the Officer's response was appropriate. Allegation 1: Not sustained +all)4m � 13 13 . `��t3'I� Alli . COMMENTS 330 LIQI None. 0311 T2-fr-fr- IP16 MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION NOVEMBER 16, 2017 —6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT: Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, John McKinstry, Harry Olmstead, Maria Padron MEMBERS ABSENT: Syndy Conger, Bob Lamkins, Paula Vaughan STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: Sara Barron and Peggy Aguilar RECOMMENDATIONS TO CITY COUNCIL: By a vote of 6-0 the Commission recommends to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the form is available online and that language is added on the form that tenants shall receive a copy. By a vote of 6-0 the Commission recommends to City Council that the Informational Disclosure and Acknowledgement Form be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator is available for other languages when needed. CALL MEETING TO ORDER: Olmstead called the meeting to order at 6:30 PM. APPROVAL OF THE OCTOBER 30.2017 MINUTES: Eastham moved to approve the minutes of October 30, 2017. Harms seconded the motion. A vote was taken and the motion passed 5-0 (Padron arrived after vote). PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. UPDATE ON FY18 PROJECTS WITHOUT A SIGNED AGREEMENT: Hightshoe stated there is a local policy that CDBG agreements are entered within 90 days of the start of the fiscal year. However, since the City did not have HUD agreements until two weeks ago a lot of the agencies have not entered into agreements yet so staff is working on getting those done. She noted that HOME agreements can't be entered until the recipient has identified property and staff completes the underwriting review, environmental review and market analysis. Therefore there is no one here to present this evening as agreements are just now being drafted. Eastham asked if there is now a new deadline and Hightshoe stated that there is nothing written in the City's policies regarding that, however the next check point is that 50% of the funds must be spent by March 15. The public service agreements state they're effective July 1, so all costs incurred since July 1 are eligible for that type of activity. The City did sign agreements with a Housing and Community Development Commission November 16, 2017 Page 2 of 6 couple CDBG recipient in the anticipation of the funds and that the project could proceed once bids documents were finalized. CONSIDER APPROVAL OF DRAFT FYI CDBG AND HOME APPLICATION MATERIALS: Hightshoe stated that each year applicants apply for public facility and housing funds in January and the Commission awards funds based on the priorities decided upon by the Commission and Council in the City's Consolidated Plan (CITY STEPS). Public service applications were submitted through the United Way Joint funding process in September. The Commission will start reviewing these applications in December. The commission will make a funding recommendation for public service funds at their January meeting. Hightshoe noted that the commission raised the domestic violence priority to high (this includes counseling, outreach, etc.). DVIP has typically applied for funds for their shelter which makes it a high priority as well as for homeless services. The applications will be sent to the Commission in early December (typically available online unless you request a paper copy). Harms asked how many applications would need reviewed this year and Hightshoe replied there are about 25 applications. She reminded the Commission that the minimum application/award is $15,000 for public services. Hightshoe also stated that the application materials to be approved today is just for public facilities and housing. The budget numbers are all preliminary and will change before final allocation. There is no federal budget at this time so the City does not know what will be approved. She also noted that the Commission allocated The Housing Fellowship $100,000 in FY18. While The Housing Fellowship hasn't officially turned down that allocation, they do not want the funds for the Del Rey project. They will either submit a project for consideration or that money will be added to the available FY19 funds. Staff will discuss with the THF and come back to HCDC to discuss. Olmstead asked if on the application it reflects what the Council's priorities are. Hightshoe said the priorities are listed in CITY STEPS. Eastham asked about the word "targeted" on page three of the application guide and what is the definition of target in that context. Hightshoe noted that the rules state that upon occupancy 90% of the HOME funds have to benefit people below 60% of medium income. Eastham would like to propose that the Commission change the allocation of scoring points on page five of the application. Eastham noted that this evaluation form assigns points on a number of criteria and two of the major criteria have to do with leveraging of other financial resources and the other major criteria "impact benefit" and with that criteria the first statement discusses whether primary percent of medium income persons are targeted. Eastham feels that the leveraging of resources criteria equals a total of 50 percent of the total points available to the applicant whereas the impact benefit criteria has a maximum of 20 points, only 20 percent of the total points available to the applicant. Eastham believes those two areas of criteria and points should be reversed because the impact benefit criteria looks at specifically whether or not the funds are going to be used for low income households. The leveraging resources criteria mainly looks at if some funds have been matched or leveraged in some way. McICmstry noted that it was just last year that the section on leveraging was added and the point of adding it was to encourage applicants to look for other resources and notjust rely on CDBG or HOME funding. Hightshoe stated it was added specifically for the public facility projects knowing that City funds could not fund entire projects. Fixmer-Oraiz asked if instead of changing it 50/20 could the change be 35/35 for both leveraging and impact benefit. Harms agreed noting that both areas are important. Eastham agreed since these two criteria do equal 70 percent of the total points, and they are both important, they could split the points between the two but he still feels personally that leveraging should be weighted less. Housing and Community Development Commission November 16, 2017 Page 3 of 6 Eastham moved to Amend CDBGIHOME Evaluation Criteria: IL Leverage Resources, reduce from 50 points to 35. Adjust 11.3 to 0-25% = 0 to 6 Points 26-50% = 7-12 Points 51-75% = 13-19 Points 76-99% = 20-25 Points AND IV. Impact/Benefit, increase points from 20 to 35 as follows: 0-30% = 25 Points 31-50% = 15 Points 51-60%= 10 Points 61-80%= 2 Point McKinstry moved to approve the application materials with the edit approved above. Harms seconded and the vote passed 5-1 (Eastman dissenting). Eastham noted he is not in favor of including the affordable housing location map in its present form as a criteria for a location for relevant affordable housing that is supported by City funds. Eastham added he has a long standing objection to this map and the criteria used construct it as it greatly limits the ability to build or acquire and rehab affordable rental units at the expense of everyone in the community who needs affordable rental units. Eastham has done a personal analysis that shows impact based on white, Hispanic and black households which is not necessarily caused by economic factors. Hightshoe noted the model was created to disburse affordable housing throughout the City. Rehab of existing rental units in any neighborhood remains eligible. Eastham understands that but does not feel that has been its effect. McKinstry added that the model has been changed in the past year to open more areas. Eastham stated it would be loosened up considerably to change the 400 foot distance variable to something more reasonable like 50 feet. Hightshoe said the map is meant to allow for a diversity of incomes and housing types in all neighborhoods. Eastham still fees this scheme denies people to live anywhere they want to in the community and feels it was developed without input for lower income households and specifically Hispanic and African American households. Hightshoe noted that there has not been any analysis done to show if the model has dispersed affordable (subsidized) housing in more neighborhoods, but the model has been successful at not furthering to place additional subsidized housing in areas with concentrated poverty. Eastham noted that the school district also includes Coralville and North Liberty so it is not always an accurate variable, especially at the secondary level as it relates to free and reduced lunch, a criterion factored in the model. McKinstry agrees that this topic should be revisited in the future. DISCUSS THE INFORMATIONAL DISCLOSURE AND ACKNOWLEDGEMENT FORM FOR RENTAL HOUSING PERMITS: Hightshoe noted this is an item that Eastham asked to be placed on the agenda. Eastham stated his purpose for asking the Commission to consider this item is the possibility of adding to the City's Rental Housing Permit process asking rental property owners that when they renew their rental permits that they show on their rental renewal application the rental amount they are charging for each unit. Harms asked if there was any legal precedent forbidding the City asking that information. Hightshoe stated the City legal department did have some concems because there is nothing in the Code (health or Housing and Community Development Commission November 16, 2017 Page 4 of 6 safety reasons) to justify including it on a rental permit. If the landlord did not provide, would the City deny solely based on the rent charged is not included. The rental amount is solely a function between the landlord and tenant, the City does not receive copy of the leases and has no way of confirming if the amount the landlord says is being charged is correct. Olmstead asked if the rental permit renewals was an annual process. Hightshoe replied that it is every other year but there are some situations where an owner is just paying the inspection fee and not filling out a new application every two years. Olmstead asked if the recycling question (the new requirement that apartment buildings have to have recycling bins) is on the application. Hightshoe said that as each permit comes due, the City enforces the recycling requirements. However the actual date of when that requirement will begin being enforced has not yet been set and Hightshoe would have to get back to the Commission on the details. Harms understands Eastham's purpose for asking for the rental amounts, the purpose is to gather data however agrees with Legal and wonders how the City could enforce that data is correct. Hightshoe added that some landlords will oppose disclosing their rental amounts because some landlords may charge different rents for maybe long term good tenants. Some tenants may not want their rent amount disclosed as well. McNnstry asked if it would become public record if it is reported to the City. Hightshoe stated that if the City asks for the data, it is then public record. Eastham pointed out that anyone that has sold or bought a house the sale information is public information collected by the Recorders office and made available to anyone for any purpose. Harms agreed but in the case of rentals, there could be a building with four units and four different rental amounts and that could cause problems if made public. Eastham noted that the reason to get rental amounts within a community is to get a handle on where lower priced or higher priced incomes are distributed within a community and how many of each there actually are so that information can be used to improve policy decisions for what kinds of additional affordable housing is needed to be located. McKinstry agrees there is a legitimate public interest in knowing what the rents are within in the City and it could help City Staff in future housing decisions, but with no place in the Code that requires this there is also no way to require this information. Harms stated there could be a voluntary disclosure and there would have to be a lot of education on why this is needed. McKinstry noted that Eastham once said the City could just ask what the advertised rent is for the units that would then already be public information, but that also would just be voluntary because it is not required under Code. However if the information is not verified (the City does not keep leases on file) then is the information of any use and would it be accurate. Fixmer-Oraiz noted that landlords would have no reason to lie if advertised rental amounts is already public information. McKinstry asked the Affordable Housing Coalition Board their thoughts on this agenda item and staff time was a key concern. Would the information gathered be of quality and useful enough to justify the staff time. No one is arguing that this information wouldn't be helpful to know. Harms asked if there are other cities that have collected this information. Hightshoe was unsure. Eastham stated is unsure if other cities use the rental permitting process to obtain ongoing information about rental amounts but there are some with rental reporting requirements due to the funding mechanisms. Hightshoe stated that is only for subsidized housing, not for privately owned. Eastham agreed but noted that because it is a requirement Staff is already doing this work so it is not onerous information to gather. Housing and Community Development Commission November 16, 2017 Page 5 of 6 Hightshoe stated that Legal would have to decide if this is appropriate information to request and what language would be used if a landlord refused to disclose the information. The Commission can recommend to Council to look into rental disclosures and Council can choose whether to act on the recommendation or not. Eastham said the information gathered could be entered into a database easily (such a home sales information) and then used for many purposes. Padron agreed, it would be good to have information on rents and also in the future used to see if there is any discriminations in rentals. Olmstead feels the information gathered should be posted so the public and tenants can see the information. Eastham noted if it is in a database it can be viewed online. Harms noted that it is important that the form be available in multiple languages so the tenants know and understand what they are signing. Eastham moved to recommend to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the form is available online and that language is added on the form that tenants shall receive a copy. Padron seconded the motion and it passed 6-0. Harms moved to recommend to City Council that the Informational Disclosure and Acknowledgement Foran be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator is available for other languages when needed. Padron seconded the motion and it passed 6-0. Hightshoe will send via email to the Commission information on a training session for Boards and Commissions on procedures. ADJOURNMENT: Fixmer-Oraiz moved to adjourned. Harms seconded, a vote was taken and the motion passed. Housing and Community Development Commission Attendance Record 2017-2018 Name EPs 11/17 12/15 1/19 2/9 2/16 3/7 4/20 6/15 8/17 9/21 10/30 11/16 Conger, Syndy 7/1/2018 X X X O/E X X X X X X X O/E Eastham, Charlie 7/1/2020 --- --- --- --- --- --- --- --- X X X X Fixrner-Oraiz, Vanessa 7/1/2020 --- --- --- --- --- --- --- --- X X X X Harms, Christine 7/1/2019 X X X X X X X X X X X X Lamkins, Bob 7/1/2019 X O/E X O/E X X O/E X X O/E X O/E McKinstry, John 7/1/2020 X X X X X X O/E X X X X X Olmstead, Harry 7/1/2018 X X X X X X X X X X O/E X Padron, Maria 7/1/2018 --- --- --- --- --- --- --- --- O/E X X X Vaughan, Paula 7/1/2019 X I X I X I X I X X X I X X X X O/E Key-- X ey:X = Present O = Absent O/E = Absent/Excused --- = Vacant or prior commissioner