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HomeMy WebLinkAbout2009-02-12 Info Packet~ - i ~~®~,~ ~in~. ,~ -+^a.as~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET February 12, 2009 MISCELLANEOUS IP1 Council Meetings and Work Session Agenda IP2 Memorandum from the City Clerk: Revised Meeting Schedule (February-June) IP3 Memorandum from the Director of Public Works and the Director of Planning and Community Development: Update -Flood related activities IP4 Letter from the JCCOG Traffic Engineering Planner: Potential Change of On-Street Parking Designation on Heinz Road from Highway 6 to Paddock Blvd. DRAFT MINUTES IP5 Board of Adjustment: January 20, 2009 IP6 Historic Preservation Commission: January 8, 2009 COUNCIL PACKETS ONLY AVAILABLE IN CITY CLERK'S OFFICE OR ON LINE (www.icgov.org) Comprehensive Annual Financial Report for Fiscal Year ended June 30, 2008 ~ _ ~ 02-12-09 ~~®~1~ ~~~~~;~,~ IP1 City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas February 12, Zoos www.icgov.org • MONDAY, FEBRUARY 16 Emma J. Harvat Hall President's Day Holiday -City Offices Closed • TUESDAY, FEBRUARY 17 Emma J. Harvat Hall • 5:30p Special Formal Council Meeting TENTATIVE MEETING SCHEDULE SUBJECT TO CHANGE • MONDAY, FEBRUARY 23 Emma J. Harvat Hall 6:30p City Conference Board -Separate Agenda Posted Special Council Work Session • TUESDAY, FEBRUARY 24 Emma J. Harvat Hall 7:OOp Special Formal Council Meeting • TUESDAY, MARCH 10 Emma J. Harvat Hall TBA Special Council Work Session Special Formal Council Meeting Continue Special Work Session if necessary • MONDAY, MARCH 23 Emma J. Harvat Hall 6:30p Special Council Work Session • TUESDAY, MARCH 24 Emma J. Harvat Hall 7:OOP Special Formal Council Meeting Executive Session • MONDAY, APRIL 6 Emma J. Harvat Hall 6:30p Council Work Session • TUESDAY, APRIL 7 Emma J. Harvat Hall 7:OOp Regular Formal Council Meeting • MONDAY, APRIL 20 Emma J. Harvat Hall 5:30p Special Council Work Session Special Formal Council Meeting • MONDAY, MAY 4 Emma J. Harvat Hall 6:30p Council Work Session • MONDAY, MAY 5 Emma J. Harvat Hall 7:OOp Regular Formal Council Meeting • MONDAY, MAY 18 Emma J. Harvat Hall 6:30p Council Work Session ~ i ~.®dr~, ~~m~;~`t ,,,~ City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas February 12, Zoos www.icgov.org • MONDAY, MAY 19 Emma J. Harvat Hall 7:OOp Regular Formal Council Meeting • MONDAY, JUNE 1 Emma J. Harvat Hall 6:30p Council Work Session • TUESDAY, JUNE 2 Emma J. Harvat Hall 7:OOp Regular Formal Council Meeting • MONDAY, JUNE 15 Emma J. Harvat Hall 6:30p Council Work Session • TUESDAY, JUNE 16 Emma J. Harvat Hall 7:OOp Regular Formal Council Meeting • MONDAY, JUNE 29 Emma J. Harvat Hall 6:30p Special Council Work Session • TUESDAY, JUNE 30 Emma J. Harvat Hall 7:OOp Special Formal Council Meeting r ~~-~.--..®~ CITY O-F IOW/, CITY IP2 ,~~~~~ ~A ~ D u ~ ~E~~ DATE: February 10, 2009 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: Revised Meeting Schedule (February -June) At your work session of February 9 Council agreed to the following meeting schedule: February 23 -Special Work Session February 24 -Special Formal March 10 -Combined Special Work Session and Formal March 23 -Special Work Session March 24 -Special Formal & Executive Session April 6 - Regular Work Session April 7 -Regular Formal April 20 -combined work session (tentative 5:30PM) and special formal May 4 -Regular Work Session May 5 -Regular Formal May 18 -Regular Work Session May 19 -Regular Formal June 1 -Regular Work Session June 2 -Regular Formal June 15 -Regular Work Session June 16 -Regular Formal June 29 -Special Work Session June 30 -Special Formal Special meetings will be called as necessary. Cc: Department Heads Cable TV Maintenance U: schedule (February - June09) r -- ~.:,_.®~ ClTY OF i01/VA CITY IP3 ~ ~~~~~~~ '~°~~~~ E ~ O RA N D C~ ~ Date: February 12, 2009 To: City Council From: Rick Fosse, Director of Public Works Jeff Davidson, Director of Planning and Community Development Re: Update -Flood related activities Engineering and Public Works Administration • Developing concept statements for FHWA repair projects • Received competitive quotation of Iowa River Corridor Trail Stream Bank stabilization Met with FEMA to discuss the four remaining project worksheets to be written. FEMA would like this complete by end of week • Staff met to discuss the demolition of houses being purchased through the buyout program • Landfill staff met to discuss handling of flood demolition material Met VJ Engineering to discuss flood project development Spoke with Bob Cecil of for the Economic Development Administration in regards to grant applications • Reviewing requirements for Letters of Map Amendments of the flood plain mapping for City facilities Wastewater Division Plant Maintenance Crew work this week: • Filter Building Mud Well sump controls -rewiring in process • Sludge Pump Building sump controls -rewiring in process • Filter Building Mud Well flow meter installation and wiring -complete Additional items to complete: • Sludge Transfer Pump #1 -sent out for bearing replacement • Finish work on Valve Actuators in Sludge Pump Bldg. - 2 out of 5 remain to be done. • Complete installation of 1 water heaters • Install 2 air conditioners at North Admin • Finish repair of grinder controls - 2 out of 3 remain • Bar Screen gate actuator repairs - 1 out of 2 remain • Troubleshoot and repair Recirculation Station VFD - trips out • Complete repairs of Humus Pump Station • Complete duct and heat exchanger clean up • Remove old Admin Bldg. boiler • Relocate River Street Stormwater Station controls -higher elevation • Convert West Park Lift station to submersible pump system • Replace Iowa Ave. Siphon system February 12, 2009 Page 2 Water Division The following was completed this week. • Replaced meters in flooded areas (Idyllwild & Parkview Terrace) as heating systems are restored. Worked with Engineering for design and schedule on the 12" river crossing repairs (Old Plant and Hwy 6) • Updated FEMA PW with budget numbers and justification of generator switch replacement for hazard mitigation request. • Updated FEMA PW with budget number verification for CW 3 & CW 4 VFD's and JW 2 soft start Plan on scheduling a meeting with HRG on Feb. 20tH to go over the specification for CW 3 & CW 4 VFD's and JW 2 soft start projects and preview preliminary results of the hazard mitigation study. At that time: • A meeting with Mid American energy and HR Green will be set up for next week to discuss planning for duplicate switching and/or standby generation for the peninsula site • The City's bidding process for the projects will be discussed Planning and Community Development Staff is providing additional information to state HMGP officials regarding Iowa City's application. State officials are completing their review. Regional FEMA officials are in the process of preparing for reviewing applications. PCD staff Hightshoe and Purdy are members of the committee helping to create Iowa City's Hazard Mitigation Plan. It met on February 6cn Staff are reviewing and making comments on the plan for the second round of supplemental CDBG funding. Comments are due 2/15/09. PCD staff helped greet Homeland Security Secretary Janet Napolitano on her visit to the University of Iowa on February 11cn We will be able to assist 33-34 households with the $823,435 in new Jumpstart State funds In the next two weeks we will be working with the next 10 people on our list, bringing the number of households we are working with or have finished working with to 60 households. ~ r , I P4 ~~~~~ -•t.as__ CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www. icgov.org February 2, 2009 Potential Change of On-Street Parking Designation on Heinz Road from Highway 6 to Paddock Blvd Dear Resident: Recently the City has received requests from your neighborhood to remove on-street parking from one side of Heinz Road, from Highway 6 to Paddock Boulevard, due to traffic congestion. Following the requests, site visits indicated that removing parking on the east side of the road would improve the line of sight for drivers and allow easier access to fire hydrants. During January, you received a survey asking for your opinion on the matter. Out of the 139 households that responded to the survey, 73% (101) wish to have parking removed from the east side of Heinz Road and 27% (38) wish to leave parking as is. The overall survey response rate was 35%. As over 50% of the responding households wish to have parking removed, I will forward the survey results and the proposal to prohibit parking on east side of Heinz Road to the City Council for consideration at their February 24th, 2008 meeting. Both the Fire and Police Departments have concurred with the proposal to prohibit parking on the east side of Heinz Road, south of Highway 6. If you have any questions or comments, please email me at darian-nagle-gamm@iowa-city.org or call 356-5254. ' cerely, ~ ~ ~~~ r' N gle-Gamm JCCOG Traffic Engineering Planner Jccogtp/Itrs/dng-heinzrd.doc _. - a ,, ~,, - a . r J -,.; IP5 MINUTES IOWA CITY BOARD OF ADJUSTMENT PRELIMINARY JANUARY 20, 2009 - 5:00 PM EMMA J. HARVAT HALL Members Present: Terry Hora, Caroline Sheerin, Edgar Thornton, Ned Wood, Barbara Eckstein Members Excused: None Staff Present: Sarah Walz, Sarah Greenwood Hektoen Others Present: The public hearing was closed at the January 14 meeting. RECOMMENDATIONS TO CITY COUNCIL: None. CALL TO ORDER: The meeting was called to order by Chairperson Ned Wood at 5:00 p.m. ROLL CALL: Hora, Sheerin, Thornton, Wood and Eckstein were present. APPEALS APL08-00001: An application submitted by Michael and Jan Dahlen appealing a decision by the Building Official to grant a building permit to Shelter House for property located in the CI-1 zone at 429 Southgate. Wood explained that this was a continuation of the consideration from the January 14, 2009, meeting at which the public hearing was closed. He stated that the public hearing would not be re-opened tonight, and that the board was to discuss the appeal and hopefully reach a conclusion. Walz announced that she had distributed information provided by the Appellant on January 20`n This information covered the pending litigation and was similar to information that the City Attorney had mailed to the board at their request. Wood disclosed that he is a teacher at West High and had realized after the previous meeting that the attorney for the Shelter House is a member of the school board. He stated that he did not feel that this would impact his ability to reach a fair judgment. Iowa City Board of Adjustment January 14, 2009 Page 2 Wood also disclosed that he had been contacted by Sheerin regarding a message she had received from reporter who wanted to know the date of the work session. She called Wood to confirm that she could provide this information to the reporter. She would have referred the reporter to staff, but the call came in over the Martin Luther King, Jr., holiday. Greenwood-Hektoen stated that she had sent information that the board had requested regarding current litigation involving the Shelter House. Sheerin reported that she did not receive the mailing. Walz provided Sheerin with a copy. Thornton reported that he had not received a copy. Greenwood-Hektoen said it was basically a duplication of the information submitted by Gregg Geerdes. Walz offered to make additional copies. The board indicated that none were needed. Greenwood-Hektoen explained that the motion should be made in the affirmative to uphold the appeal. Sheerin asked for some clarification of the steps that could be taken, if the appeal were upheld and a separate motion was made to rectify the situation. Sheerin moved to uphold the appeal APL08-00001, an appeal of a decision made by the Building Official to issue a building permit to Shelter House was in error. Hora seconded. Sheerin asked for clarification on the standard of review. She wanted to make sure that the board was in agreement that its job was to determine whether there had been an error made by the building official. The board members indicated their agreement. Wood directed the members to consider the issue of whether a shelter management plan was required. Eckstein first asked for an explanation of the term "colorable claim of title" used by the City Attorney in her mailing to the board regarding pending litigation. Greenwood-Hektoen explained that the term was used by Sarah Holecek and it meant that the City's interpretation was that litigation filed presumes that the Appellants have title to the land; it does not seek to establish title. Sheerin said that the current zoning code states that the shelter management plan "should be submitted along with the application for the special exception." Because that language was not included in the code unti12005, one year after the application was approved. She stated that this seemed to make it clear that Shelter House was not required at this time because they would have had to submit the plan with the application for the special exception, prior to the to the current code language being added. Hora stated that the shelter management plan does not need to be submitted. He stated that he based this on the language in the code and the fact that the special exception was still in effect at the time the building permit was applied for. He indicated that only if the board determined that the special exception had expired would the current requirement apply. The board cannot go backward in time to impose the requirement. Iowa City Board of Adjustment January 14, 2009 Page 3 Thornton concurred with the previous statements. From his review of the material and testimony at the previous hearing he concluded that the requirement for the management plan was not in effect at the time of the special exception was granted. Eckstein stated that it is clear that the 2004 ordinance was in place when the Shelter House submitted its application. Wood agreed. He stated that the special exception was granted in 2004 and at that time there was no requirement for a shelter management plan. Wood stated that the second point was whether the parking requirements had been met. Hora stated that he believed that Shelter House and the City followed the parking ordinance. The zoning code does not differentiate between indoor and outdoor parking. The code does not contain language determining how the parking is used or by whom. The code only sets the number of spaces. Twenty-one stalls are required and twenty -one are provided. Sheerin agreed. The formula was followed correctly. Shelter House has indicated that 14 was the maximum number of employees at the site at one time and that is what the code provides for. The code does not use the total number of employees to determine required parking. She found no language in the code, nor elsewhere in the record, that parking in a garage should not be considered as part of the required parking. Eckstein agreed stating there was not language in the code restricting indoor parking. Thornton concurred. Based on the information in writing and testimony, the correct formula was used. Wood stated that the parking calculation followed the formula and is based on the maximum number of employees at the site at one time, which is 14. There is nothing in the code that indicates that interior parking should not count toward required parking. The building official followed the formula and requirements appropriately. Wood stated that the next issue was whether the site plan should have been submitted to or approved by the Appellants. Sheerin stated the ordinance provides that "within 24 hours of submitting an application for major site plan approval, the applicant shall post notice of intent to develop the site. The notice to be posted shall be provided by the City as directed by the City." That is 18-2-1C. She saw no language requiring submittal of the plan to the neighbors, only notice of intent to develop the site. The record indicates that the required notice was properly given. She stated that it is not an issue that a new site plan was submitted on the night of the review as the ordinance does not contemplate that as an issue. Hora agreed. Thornton agreed that ordinance was clear on the issue of notice and posting and that the City and Shelter House provided notice as required by the ordinance. Eckstein agreed that the property was properly posted and that the ordinance does not require that the site plan be submitted to the neighbors. Iowa City Board of Adjustment January 14, 2009 Page 4 Wood agreed that the site plan was submitted October 1 and the site was posted on October 2. There were revisions to the original site plan but there is nothing that requires that revisions need to be communicated to the Appellants. Wood directed the board to the issue of the boundary dispute. Hora asked for clarification on the water drainage easement shown on the site plan submitted with the staff report. Hora stated that it was his understanding that such an easement is a permanent requirement that stays with the land regardless of who owns the property. Greenwood-Hektoen agreed and clarified that it is an easement for the benefit of the City. Sheerin stated that her concern was that the Building Official he indicated that if there was litigation on file disputing ownership that this would be a reason to hold up the permit. The attorney for the Appellants had stated that there was litigation on file arguing that we own the property. However, the new information submitted regarding the litigation shows that the court is not being asked to make a determination of ownership. She asked the City Attorney for clarification. Greenwood-Hektoen explained that the litigation ongoing presumes that the Appellants have property interests in the area of encroachment, but it does not seek to establish title. When the Building Official spoke at the hearing she believes that he was referring to litigation that seeks to establish title. She stated that it is the City Attorney's opinion that anything short of an injunction would not allow the Building Official to delay the permit, because the code does not require a title opinion or anything rising to that level of proof as to who owns land. At the time the site plan is submitted for approval, the applicant must provide the names and addresses of the owner of record of the property, the applicant, and the persons preparing the site plan and the names and addresses of the applicant's attorneys. That is all that is required to establish who is responsible for the land. That application was provided and the Attorney's office believes that this meets the requirement. It is the opinion of the City Attorney's office that the pending litigation should not impede the issuance of the permit. The Applicant has a constitutional right to due process. Just because a third party claims title to the land is not enough in the City Attorney's opinion and only an injunction would rise to the level that would justify denying the permit. Thornton stated that the Building Official is not required to be aware of the dispute over the ownership at the time of issuing the permit. Hora stated that determining ownership is not an issue for the City. The 30-foot easement on the property will not go away, regardless of ownership. Hora's only concern was the placement of the 8-foot privacy fence within the easement, but believed that the City would deal with this. Eckstein agreed that the Building Official came to a reasonable judgment. Eckstein refereed to the context: two things heard in the public hearing are ones that she would comment on. First, that two of the homes encroach on the subject property. The Appellants' attorney indicated that this was some kind of proof of ownership. She stated that she is aware of situations where people Iowa City Board of Adjustment January 14, 2009 Page 5 were occupying property for many decades, but it turned out that did not give them title to the land. Over time things change on property but that does not necessarily determine title. The other issue has to do with the context of litigation. This is a circumstance that various courts have heard testimony on over a period of years and so she feels there has been considerable hearing and consideration of questions in this case. As a result, she did not feel that there was any evidence that the Building Official should have withheld the building permit based on yet more litigation. Wood agreed that the Building Official's determination should not be impeded by the litigation. He has issued permits in the past in similar situations. These are not conflicts that can be resolved by the City but are disputes between adjoining land owners that must be resolved by them. He believed the Building Official acted appropriately in not impeding the process. Wood pointed to the issue of the expiration of the special exception. Sheerin stated that she believed this required judgment on the part of the Building Official. She indicated that it seemed to be the position of the Appellant that because the ordinance says, "unless the applicant shall have taken action within the 6-month period to establish the use or construct the building permitted under the terms of the Board's decision, such as obtaining a building permit and proceeding to the completion in accordance with the terms of the permit," with the example being obtaining a building permit, that therefore a permit must be obtained within the six months. Sheerin stated that she believed the language "such as" is set out to be exemplary and not restrictive as opposed to something like "only in the instance when." Sheerin indicated that she believed there was evidence of action within the six months, including submitting the applications, responding to questions about the application, and making multiple revisions to the application. For this reason she does not believe the Building Official erred. Hora stated that the Building Official did err based on the language in the code. He interpreted the same ordinance as indicating that you must almost have a shovel ready to put in the ground to make this complete. He said he did not know why the Shelter House waited for 4 1/2 months with no action after the Supreme Court ruling. He believes the term had expired. Eckstein said she takes to heart the phrase "to take action to establish the use." In her judgment Shelter House had done this in a number of extraordinary ways and that their intent to establish the use was clear. Thornton stated that while there was a significant amount of time of inaction on the part of Shelter House, or the appearance of a lack of action, it appears there was action between the City and Shelter House. Despite the slowness of the process, he believes this should not have impeded the Building Official from issuing the permit. Wood indicated that the phrase "such as" indicates an example. He does not believe that the code indicates that a building permit is necessary for the special exception to be upheld. A site plan was submitted August 27`h and there was considerable communication from that point on. An application for the building permit was submitted on September 22nd. Detailed building plans Iowa City Board of Adjustment January 14, 2009 Page 6 submitted on September 26`h, revised site plan on October 1. The Building Official's handling of this was consistent with past practices. The Building Official indicated that a building permit is not the only thing that establishes the use on the property. He noted that an August 4, 2004, a letter from Senior Planner Bob Miklo to Shelter House informing them of the action of the board. He wrote" within this time period you should establish the use approved, apply for a building permit for construction, or apply for an extension from the board." There is nothing that says they need a building permit within the six months. He read from the letter, "failure to take some action within the six months will result in the necessity for a new application." Shelter House was working hard to obtain the permit, was doing all they could to obtain it. It is a long process but they were acting to obtain the permit. Hora stated that while Shelter House was working to obtain the permit, he read the language to mean that the permit needed to be issued within the six months. He said it does not talk about site plans of negotiation back and forth between the City and the applicant. He believes there should have been a faster process. In his interpretation the least they were required to do was to obtain the building permit. The phrase "proceed to completion" indicates to him that you need to be ready to start building. Walz re-read the motion to uphold the appeal and that the Building Official was in error in issuing the permit. She reminded the board that a "yes" vote would indicate that the Building Official was in error; a "no" vote would uphold the Building Official's decision. Motion failed on a vote of 1 to 4 (Hora voting Yea). Wood read a statement indicating that anyone wishing to appeal the decision could do so within 30 days of its filing. Sheerin moved to adjourn. Thornton seconded. Motion carried on a vote of 5-0. The meeting adjourned at 5:45 pm. Iowa City Board of Adjustment January 14, 2009 Page 7 OTHER: Hora asked how to bring about change to the zoning coe. He noted that their charge stated that they could bring about changes to ordinances and he wanted to know the process for doing that. Walz said that the Board can make a motion for the Planning and Zoning Commission (or other appropriate authority) to consider investigating an issue. Walz and Greenwood Hektoen said they would look into the exact process and get back to Hora. BOARD OF ADJUSTMENT INFORMATION: None. ADJOURNMENT: Hora motioned to adjourn. Thornton seconded. The motion carried 5-0, and the meeting was adjourned at 7:32 p.m. C ~+ ~_ Q w L t~ m 0 N L V V A~ W a a~ s i+ O a 0 N N d' O O~ O O~ N 00 O 0 0 M O M N ~ ~ N a'~ X X X X X ~ ~ .. E X X X X X a ~- - nn N O ~ .X ~ O ~ O ~ O ~ O O W O O O O O C ~ • ~ Y Q~ ~ O C ~ W L Vf O ~ `~ Z ~ o 2 ~ s ~ ~ L m F- V W Z -+ C ~ ~ ., ~ N Q ~ ~1 N 7 U W ~ ~ Vf Q ~ +~ ~ ~ ~ Z L ~ ~ N d ~ Z x O W O ~ Z ; W =~'Fb9 IP6 MINUTES HISTORIC PRESERVATION COMMISSION THURSDAY, January 08, 2009 EMMA J. HARVAT HALL PRELIMINARY MEMBERS PRESENT: Thomas Baldridge, Esther Baker, William Downing, Lindsay Bunting Eubanks, Pam Michaud, Jim Ponto, Ginalie Swaim, Alicia Trimble, Frank Wagner STAFF PRESENT: Christina Kuecker, Robert Anderson OTHERS PRESENT: Robert Warner CALL TO ORDER: Chairperson Bunting Eubanks called the meeting to order at 6:00 p.m. PUBLIC DISCUSSION OF ANYTHING NOT ON THE AGENDA: There was none. CERTIFICATES OF APPROPRIATENESS: 712 Ronalds Street. Kuecker said the project on Ronalds Street was deferred from the previous meeting. She said it's a three-part project including window replacement, enclosure of a portion of a porch with screens and addition of windows on the garage. She said it's anon-contributing house in the Brown Street Historic District on Ronalds Street. Kuecker said the applicant proposes to replace the second story window with the same windows that were approved for the addition in 2007. The applicant proposes to use some of the second story windows for use in the garage. And he wants to enclose part of the porch along the side door with a screened in porch. The applicant proposes to have screened in porch about 2.5-3 feet away from balustrade and have a 30-inch high base wall with sided base wall with same dimension as siding on the house. Kuecker said staff sees other options, such as moving screen wall to line up with balustrade and eliminating the thirty inch base wall or just leaving the screened in portion where it is and extending screens from ceiling to floor with grid or support to allow visibility and structural support along bottom portion. The third portion of the project is to add windows to side of garage. The garage is shared so applicant only has control over half the garage. Kuecker said staff recommends approval of project as presented in application with the condition that the replacement windows on second story match existing windows in type, size, sash width, trim, and overall appearance, and that the mullion width must be maintained between the double windows. Staff recommends allowing applicant the option of constructing the screened porch as presented in the application, eliminating the 30-inch high base wall and extending the screen the entire distance between floor and ceiling, or moving the screen wall to directly behind the porch railing and eliminating the 30-inch high base wall. Kuecker said if the third option is chosen, the screened door may be placed on the south wall to provide access through the screened in portion of the porch. Bunting Eubanks asked if the applicant would like to address the Commission. Robert Warner, the applicant, said the reason for the access between was because there is a problem if the screening is put behind the railing, then the railing cannot be accessed, which is a problem with the continual need to repaint. Warner said the porch is really wide, added in the 1970s. He said the higher addition was added in the 1960s, and the rear addition in 2007. Warner said he was thinking of trying to replicate the existing wall with the panels along, to blend more with the character of the walls and wrap around. Ceiling light fixtures in the porch area was a consideration. Warner discussed the window damage. He said the windows themselves are rotted. Warner said the sill plates between the two double-windows are rotted out, that there is just a hole. He said moisture comes Historic Preservation Commission Minutes January 8, 2009 Page 2 of 7 down between windows and collects on the sill plate and the only thing holding the windows together is paint. Warner discussed a screen system suggested by his contractor called Screen Tight. Kuecker asked the applicant to explain the system to the Commission. Warner said it's a plastic framing system that fits on the framing. He said the panels are done with a cover piece over the panel. The benefit, he said, is if damage is done, a single panel can be removed and replaced. Warner said he and the contractor are flexible in the method chosen. The covers currently on the window are vinyl, suffering from UV damage. Michaud asked to which windows the applicant is referring. Warner said all windows, then clarified that the ones on the right have the old, full-covered storm windows with hooks in the top that slide into place. But the ones in the front were replaced with vinyl years ago and are falling apart. He said he would like to replace those to get a nicer look, emphasizing his desire to salvage and keep trim pieces. He said there is a red strip above the windows that he wants to keep. Baldridge asked if the proposal is to take the windows from the front and place them on the garage. Warner clarified that the intent is to take the windows from the side, the smaller windows of the same height as the non-functional window on the garage. The goal is to bring in more light to the garage for use as an art studio. He said they would not be visible because there is a shed on the side. Swaim asked about the height of the balustrade for the proposed 30-inch high base wall. Warner said the height is the same as the balustrade, the intent being to keep a straight line and to have a wider sill to place things like glasses. He said he intends to use cement board to blend, like has been done to other portions of the house. He said one could barely tell the difference. Michaud asked whether the two windows on the first floor will stay, the ones going down to where the proposed screen will go. Warner confirmed this. He said he wants to get away from those. Michaud asked whether he is planning to leave a few inches of space. Warner said more than that, about two feet. He said the hope is to match up with third column. Michaud suggests lining it up with the solid wall, to drop it down so it is shorter and less prominent and tied in better with the windows. Warner said that is good idea. Warner said the driveway is ice, so he uses the porch to safely get from front to rear. He said in addition to the screen door proposed for the north side of the porch, he would like to put a screen door on the south end to pass through. He said he will submit another sketch for that proposed door. Bunting Eubanks said a problem in the past has been in keeping the outward appearance the same. She emphasized that for windows, to make sure the mullion spacing is the same and the framing is the same. Warner said he wants to keep the framing and to try to salvage as much as possible to keep the price down, but the sill whole plate is gone so those have to be replaced. Bunting Eubanks said it's okay to replace, but it has to keep the same spacing. Historic Preservation Commission Minutes January 8, 2009 Page 3 of 7 Warner wondered about the section between the windows going on the outside. A retailer told him with one type of window, which is an insert, there might be a little bit of space, but that would be done on the outside. But even then the mullion between the windows would stay the same. Warner addressed the issue of egress for the bedrooms on the east and west side of the house. He said the windows are only 2'8" wide, so those will need to be widened. The ceiling height is only five feet. He said he can get a casement window with insert to achieve the appearance of a double-hung window. Michaud said the Commission has approved the casement window with insert before to achieve double- hung look. Bunting Eubanks said egress receives priority. Warner said it will look the same, just a little wider but that can be made up in the interior frame. He said what he needs to do is maintain the width of the outside framing. Bunting Eubanks added that the mullion also needs to be maintained. She said there was a case where mullion was not kept. Warner says he heard about that. Bunting Eubanks emphasized the outside appearance needs to remain the same. She said the fiber cement board is acceptable, that there are many materials which are acceptable which people are surprised by. Warner said that was a wise decision to allow use of fiber cement board. He said his neighbor applied fiber cement board long ago and it looks the same as when first applied. Bunting Eubanks said the Commission has guidelines that come from the Secretary of the Interior and those permit fiber cement board. Warner says his house is a noncontributing property, that it is a mix of styles. He said he also found a car jack holding up a portion of his porch which is accessible through the skirting of the porch. Bunting Eubanks said the clarification of these issues is why the Commission wished his presence at the meeting. In the past, if there has been no communication with the applicant, there are problems. She asked for questions or further discussion from Commission members. Ponto asked about size of the upper windows that would be moved to the garage compared to the existing garage windows. Warner said the size of the windows is the same. Michaud asked whether the plan was to move three. Warner said there are two windows on the upper portion of the house on each side. So, there are four windows. He said the window in the worst condition will be discarded. Bunting Eubanks asked about whether the motion needs to be amended to include the two screened porch doors. Kuecker said yes, the motion language should be amended. She also said it should include language about casement window for egress that has the appearance of a double-hung. Michaud offered suggestion for screen, to have heavier mesh to protect screen against pets. Warner said he knows about the heavier mesh but that even though it doesn't puncture, the pre-molded system of installation warps the screen, so he would prefer not to use it. Historic Preservation Commission Minutes January 8, 2009 Page 4 of 7 Bunting Eubanks asked for further discussion, or a motion. Warner asked if there is any problem with the plastic panelized system. Kuecker said she thinks guidelines say it should be wood. Bunting Eubanks said the Commission tends to go against plastic. She said that only certain synthetics have been tested and are therefore acceptable, such as fiber cement board. This comes from the Secretary of the Interior. Warner said the suggestion came from contractor because it is easier to assemble, but the use of wood is fine, that he didn't think the plastic would be acceptable. Bunting Eubanks said the guidelines are also set up so the materials last. MOTION: Ponto moved to approve a certificate of appropriateness for the project at 712 Ronalds Street as presented in the application, with the condition that the replacement windows match the existing windows in type, size, sash width, trim, and overall appearance. For any window that is required to meet egress requirements, a casement window may be used provided that it has a wide muntin to simulate the appearance of a double hung window. The applicant also has the option of constructing the screened portion of the porch as presented in the application; changing the height or eliminating the base wall; and adding a second screened door. Everything must be constructed of wood or fiber cement board. Michaud seconded the motion. The motion carried on a vote of 9-0. VIRTUAL FORUM UPDATE: Bunting Eubanks said she has prepared a draft power point for the virtual form to present to the Commission. The Commission discussed the power point and other details of the Forum. Kuecker made notes of the changes requested by the Commission. CONSIDERATION OF MINUTES FOR DECEMBER 11, 2008. MOTION: Swaim moved to approve the minutes of the Historic Preservation Commission's December 11, 2008 meeting, as written. Baker seconded the motion. The motion carried on a vote of 9-0. OTHER: Bunting Eubanks asked about eliminating the cover page from the Commission packets to be more environmentally friendly. Baker, Ponto and Michaud said they are fine with it. Ponto said all the information is included at the top of the agenda page. Kuecker asked if everyone is okay receiving minutes by email. Positive responses from the Commission were received. Kuecker asked if individuals want to receive their entire packets via email. Trimble, Downing, Baker, Michaud, and Wagner indicated they wish to receive their packets via email. Bunting Eubanks reminded the Commission that Kuecker presents all the relevant information during the meetings. Kuecker said that individuals can change their mind if receiving packets or minutes via email does not work for them. Bunting Eubanks said it is a good idea to have at least one printed agenda at the meeting. Historic Preservation Commission Minutes January 8, 2009 Page 5 of 7 Downing said probably the most important thing about receiving the pack in the mail is the reminder of the meeting date and time. Kuecker said the agenda could still come via postal mail. Michaud wondered about whether a postcard could be used for the agenda. Swaim asked about an email notification of meeting dates. She wondered if that would serve the same purpose of Kuecker asking for a quorum. Kuecker said it could be either. She said this is still being figured out. Kuecker said one advantage of sending packets via email is the packets would be received the same day rather than waiting to receive the packet in postal mail. Bunting Eubanks asked whether Commission members had a preference for when to hold the forum. Michaud asked about President's day, whether City hall would be closed. Bunting Eubanks said the forum could be held at City Hall. She said her idea would be to have the forum on the second or fourth Thursday of the month to maintain the normal schedule. Kuecker said she didn't think the Commission could replace a regular meeting to hold the forum. Bunting Eubanks said then the fourth Thursday would work at the end of February. Swaim said February is a good month because people are starting to look at doing work on their houses. Michaud asked if it would be good to have it on President's Day because people would have more time. She asked if City Hall is locked. Kuecker said she doesn't know about holidays. Baker asked about when the letters normally are sent out. Kuecker said normally the letters are sent in April, but they can be sent anytime. She said last year the letters were sent out too late because nobody was hired yet for her position. Bunting Eubanks suggested the fourth Thursday in February for the date of the forum. Downing asked about the slide presentation showing a picture of the Old Brick church. He said he thinks people might be confused and think that is the location of the forum. Kuecker said in order to have the forum televised it has to take place at the Iowa City Library or City Hall. She said she'll make sure the invitation is clear. Kuecker asked if there are any comments about the Certified Local Government report to the state that was sent to the Commission members. Swaim indicated that Wetherby is spelled without the letter 'a'. Swaim asked about question number two in the report regarding the nomination of the Wetherby House to the National Register. Kuecker said the house has been approved by the state committee and will go to the National Park Service for consideration. Anderson said that the information about the Wetherby House will be left in the report to indicate that the house has been moved even though the report asks for properties listed on the National Register and the Wetherby House has only been nominated to this point. Swaim asked about question number five, letter c in the report, whether the annual Historic Preservation Awards should acknowledge collaboration with Friends of Historic preservation and Johnson County Historic Preservation Commission. Historic Preservation Commission Minutes January 8, 2009 Page 6 of 7 Anderson said he added text to question eight in the report, a question that was unfinished. He said since contractors have not yet been notified district requirements he will amend that language. Swaim asked if it matters whether the language reads `Historical Society' or'SHPO'. Kuecker said she doesn't think so. She said she also included information on two things. One is an invitation to the Friends of Historic Preservation annual meeting to take place at the end of January which will focus on historic paint by David Arbogast. The other is a Growing Sustainable Communities conference in Dubuque. She said if several Commission members are able to go she could probably arrange for a planner there to give a historic tour of the downtown. She said if any Commission members are interested to let her know now. ADJOURNMENT: The meeting was adjourned at 7:06 p.m. Minutes submitted by Robert Anderson S/pcd/mins/hpc/2009/hpc 1-08-09.doc c O .y N .~ V i+ N L a ~L d1 2 '~ L 0 V NN~ 1.~ V ~ _ ~ ~ N 'C C d a x x x x ; x x x x x F~ W N M N M N M N M N M N M N M N M N M N M ~ z N -~ ~ m ~ m ~ C 3 o° h Y ~ w' c R E ~ ~ 'x 3 r ~ ~ c a° ~ v3i y ~ ~ y ~ ~ 3 U N 7 U X W }, c ~~a~ ~ a> ~ Q.QQ „ n w YXOO COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2008 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA • r r ~' 7 ,~~ 1 _4 CITI' OF IOWA C:ITI', IOWA TABLE OF CONTENTS June 30, 2008 INTRODUCTORY SECTION Pale Table of contents ................................................................................................................................ 1 Letter of transsnittal ............................................................................................................................ 3 City organizational chart .................................................................................................................... 10 City officials ....................................................................................................................................... 11 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT ......................................................................................... 13 MANAGEMENT'S DISCUSSION AND ANALYSIS .................................................................... 15 BASIC FINANCIAL STATEMENTS Government-wide financial statements Statement of net assets ................................................................................................................. 26 Statement of activities .................................................................................................................. 2g Fund financial statements Balance sheet -governmental funds ............................................................................................ 30 Reconciliation of the balance sheet of the governmental funds to the statement of net assets .... 32 Statement of revenues, expenditures, and changes in fund balances -governmental funds ....... 33 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities ..................................................................... 35 Statement of net assets -proprietary funds ................................................................................. 36 Statement of revenues, expenses, and changes in fused net assets -proprietary funds ................ 39 Statement of cash flows -proprietary f~mds ................................................................................ 40 Statement of fiduciary assets anti liabilities ................................................................................. 42 Notes to financial statements .......................................................................................................... 43 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule -budget acid actual -all governmental funds and enterprise ... funds -budgetary basis ..................................................................................... 74 Budgetary comparison schedule -budget to GAAP reconciliation ................................... 7b Note to required supplementary information -budgetary reporting ................................... 77 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet - nonmajor governmental funds ............................................................ 80 Combining statement of revenues, expenditures, and changes in fund balances - nonsnajor goverrunental funds ...................................................................................................................... 81 Combining statement of net assets -nomnajor enterprise funds .................................................... &4 Combining statement of revenues, expenses, and changes in fund net assets - nonmajor enterprise funds ............................................................................................................................ 85 Combining statement of cash flows -nomnajor enterprise fluids .................................................. 8b Combining statement of net assets -internal service funds ........................................................... 88 Combining statement of revenues, expenses, and changes in fund net assets -internal service funds ............................................................................................................................................. 89 Combining statement of cash flows -internal service fusids .......................................................... 90 Combining statement of changes in assets and liabilities -agency funds ...................................... 92 CITI' OF IOWA C:ITI', IOWA TABLE OF CONTENTS June 30, 2008 STATISTICAL SECTION (UNAUDITED) Page Net assets by component .................................................................................................................... 95 Changes in net assets .......................................................................................................................... 96 Fund balances - goverrunental funds ................................................................................................. 98 Changes in fund balances - gavermnental funds ............................................................................... 99 General govermnent tax revenues by source ...................................................................................... 100 Assessed and taxable value of property .............................................................................................. 101 Property tax rates -direct and overlapping governments .................................................................. 102 Property tax budgets and collections .................................................................................................. 103 Principal taxpayers ............................................................................................................................. 104 Principal water system customers ...................................................................................................... 105 Sales history and total water charges .................................................................................................. l OEi Principal sewer system customers ...................................................................................................... 107 Sales history and total sewer charges ................................................................................................. 108 Ratios of outstanding debt by type ..................................................................................................... 109 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 110 Ratio of annual debt service expenditures far general bonded debt to total general governmental expenditures ..................................................................................................................................... 111 Computation of direct and overlapping debt ...................................................................................... 112 Legal debt margin inforrnation ........................................................................................................... 113 General obligation debt ariiual maturity schedule ............................................................................. 1 14 Schedule of revenue bond coverage ................................................................................................... 115 Revenue debt annual maturity schedule ............................................................................................. 116 Revenue debt annual maturity by funding source .............................................................................. 118 Demographic acid economic statistics ................................................................................................ 120 Principal employers ............................................................................................................................ 121 Full-time equivalent city govermnent employees by function ........................................................... 122 Operating indicators by function ........................................................................................................ 12~} Capital assets by function ................................................................................................................... 126 COIVIPLLANCE SECTION Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Gnvernrt~~ent auditing Stcrnc~!arcfs.. 129 Report on compliance with requirements applicable to each major program and internal cantrol o~~er compliance in accordance with OMB Circular A-133 ................................................ 131 Schedule of expenditures of federal awards ....................................................................................... 133 Notes to the schedule of expenditures of federal awards ................................................................... 13b Schedule of f"mdings and questioned casts ......................................................................................... 137 December 5, 2008 To the Citizens, Honorable Mayor, Members of the City Council quid City Manager City of Iowa. City, Iowa 1 ~ i ~~.r®~~ VIII +' p~~,~ ' y~w~~Il `+t.Y~_ CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City} for the fiscal ye~u- ended June 30, 2008 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City's Finance Dep~u•tment prep~u•ed this report. Responsibility far both the accuracy of the data presented and the completeness and f~urness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in ~>Il materi~>I respects and presented in a manner designed to Burly present t11e financial position and results of operations of the City. All disclosures necesszu•y to enable the reader to ,fain ~u1 unclerstanclin#~ of the City's financi~~l affairs have been included. This report consists of management's representation concerning the finances of the City of Iowa City. Management assumes full responsibility for the completeness and reliability of ~~il of the inform~ltion presented in this report. To provide a reasonable basis for rr~iking these representations, n~~nagement of the City has established a comprehensive internal control fr~unewark that is designed both to protect the government's assets from loss, theft, or misuse ztnd to compile sufficient reliable information for the preparation of the City's fin~mcial statements in conformity with accounting principles gener~~lly accepted in the United States of America {GAAP}. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financiz~l statements will be free from materiel misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete quid reliable in all materiel respects. The CAFR reflects ~~11 funds of the City in accordance with stand~uds set by the Governmental Accounting Standt~rds Board (GASB). In 1999, GASB adopted Statement No. 34, Basic Fi~rcrncial Statements - Mcrnagemer~t',~~ I~i.,~~erissinn and Analysis -For State ar~cl Local Goverrzrrrents. The fin~~l effective date for the implementation of GASB No. 34 far the City of Iowa City was June 3(), ?003. This report complies with those stand~uds. This statement significantly changes governmental financial reporting in order to bring it closer to a private sector model. The City is required to undergo an annual single audit in conformity with the 13rovisions of the Single Audit Act of 1996 ztnd the U.S. Office of Management and Budget {OMB) Circul~u- A-133, Audits ~tf State cand Lnccal Governments. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors' reports on the internal accounting and adnvnistrative controls and compliance with applicable laws quid regulations are included in the compliance section of this report. GAAP require that management provide a n~urative introduction, overview, and analysis to accomp~uly the basic fin~nicial statements in the form of IVliinagement's Discussion and Analysis (MD&A). This letter of tr~uismitt~~l is designed ro 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. The City of Iowa City's financi~~1 statements have been audited by Eide Bully, LLP of Dubuque, Iowa, a firm of licensed certified public accountants. The goztl of the independent audit was to provide reasonable assurance that the City's financial statements for the fise~~l ye~u• ended, June 3~, ?(?08 ~~re free of materiel misstatement. The independent audit involved examining, an a test basis, evidence supporting the ~unounts Auld disclosures in the tin~mcial statements; assessing the accounting principles used and significant estin~ites made by rr~~nagement; and evz~luating the over~>Il fin~uici~~l statement prep~~ration. The independent auditor concluded, based upon the audit, that there was a reasonable basis far rendering an unqu~~lified opinion that the City of Iowa City's financi~>Z statements far the fisc~>I ye~~r ended, June 30, 2fi08, sue fturly presented in conformity with GAAP. 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 fatu•-ye~u• term. Elections ire held every two ye~u•s allowing far continuation in office of at least tluee members at each biemiial election. The Council members are elected at l~~rge, but three members ~~re nominated from specific districts, and the four other members ~u-e nominated at huge. The Council elects the Mayor from its oum members for atwo- ye~u• term. The City Council is the legislative body quid makes ~~il policy deternunations for the City through the enactment of ordinances and resolutions. It ~~iso adopts a budget to determine haw the City will obtain and spend its funds. The Council appoints members of bo~uds, commissions and comnuttees. The City M~u~ager is the chief adnunistrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council ztnd enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City's operating dep~u-tmeazts and supervises the administration of the City's personnel system. He supervises 544 full-time and 47 pern~ment pert-time municipal employees and 446 tempor~uy employees including a police force of 73 sworn personnel and a fire dep~~rtment of 56 firefighters. The City owns ~u1d operates its water supply ~u1d distribution system and sewage collection ~u1d treatment system with second~u•y treatment also provided. Virtu~~lly the entire City has sep~~rate storm and s~uiit~~ry sewer systems. The City operates a municip~~1 off-street and on-street puking system in the downtown zuea. Since 1971, the City has operated a hansit system. The annu~>I budget serves as the foundation for the dep~~rtments of the City ~u-e required to subnut reque October. The City Manager uses these requests as ~ budget. The City Manager then presents this prof December. The Council is required to hold a public h final budget no later th~ul Much 15. The appropriate Public Safety), and depzu-tment (e.g., Police). City's financi~>Z pl~mning and control. All is for appropriation to the City Manager in ie st~~rting point for developing a proposed used budget to the Council far review in is prep~ued by fund, function The City adopts athree-ye~~r financial plan that includes both operations and capit~~1 improvements. This tlu-ee-year plan pernuts a more comprehensive review of the City's financi~~l condition, ~~11o~~•ing an~~lysis of the current and future needs and requirements. During prep~~ration of the plan, c~ueful review is n~~de of property tax levy rates, utility and user fee requirements, ending cash b~>lances by fund, debt selvice obligations, bond financilig needs, capital outlay for equil3ment purchases and major capit~~l improvement projects. The state requires at least none-ye~Ir operating budget. While legal spencling control is exercised at a state rnandatecl function level, m~uiagement control is se.t at the. Dep~u•tment Manager level. Encumbrance aCCallntlilg IS utlllzed In ~t11 funds for budget~Ily control. Encumbrances outstanding at ye~Ir-encl for the governmental fund types ~II•e reflected as reservations of the fund bal~uzces. Appropriations that ~~re not encumbered lapse at the end of the ye~Ir. Information useful in assessing the government's economic condition The City's econonuc strength is based upon education, medictll services, and diversified m~umfacturing. The University of Iowa is the City's l~~rgest employer with almost 28,200 employees alid the University of Iowa Hospitals and Clinics is the hugest university-owned teaching medicz1l center in the United States. The City also has a signific~int number of private employers who have a history of providing stable Ind increasing employment in the community. The relative stability of the University of Iowa, coupled with the City's multi-sector base of industri~>Z and commerci~~l interests, will continue to help insulate the City from the significant negative economic impacts related to unemployment. The City continues to see sustained production in om• rrlajor local industries, such as ACT, Proctor & Gamble, zrnd Pearson. Continued economic development efforts involving the Iowa City zrnd Cor~Ilville Ch~unbers of Corrrlnerce, loc~Il private interests, the University of Iowa and other surrounding communities through p~>xticipation as members of the Iowa City Area Development Group, have proved positive with the retention and expansion of businesses. In addition, the corridor between Iowa City quid Ced~rr Rapids has been identified as one of the nujor growth ~ueas for• new business development in the State of Iowa. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. There have been improvements in the budget challenges faced by the State of Iowa, however, the City's economy as a whole continues to grow. The major employers have been able to Inaint~un their workforce size. The unemployment rate for 7ohnson County continues to rem~un low at between 2.9% quid 3.1%. The City has consistently experienced modest increases in assessed property valuations. New housing construction continues to be relatively strong with 133 new single-fanvly houses and 151 multi-f~urrily dwelling units added to the t~rx rolls for the ye~Ir ended December 31, 2007. This, along with the low unemployment rate, continues to be indicative of the City's economic well being. The 2000 census population of Iowa City was 62,220. After further review by the United States Census Bureau, the population was revised to f~2,887 in 2006. This represents a 5.0~/o increase over the 1990 population of 59,738. In preparing the financial plan for the three ye~rrs ending June 30, 2011, the process of budget balancing has ag~Iin been most difficult. With the continued tax limitations imposed by the state {specifically the residential rollback factor) and other federal and state regulations ~rnd mandates, the municipal service needs for our growing community sue becoming increasingly difficult to satisfy. In balancing the budget for the three-ye~rr period, the City attempted to m~rint~rin service levels, wherever practical. In addition, our planning has been directed at maint~rining our current fiscal strength and avoiding ~u1y erosion of that fisc~rl position, including the City's Agar band rating. A continuing n~ijor objective in the three-ye~u• financial plan is to rr~unt~un or increase the City's cash reserve position. In addition, procedures were adopted to allocate unreserved fund balances between the contingency and undesignated fund bal~uices. The contingency fund is av~ulable during the fisc~~l ye~u• for unanticipated and unbudgeted expenditures, while the unclesib~nated fund balance is intended to be nuint~uned as working capital. The City is conunitted to drawing from the undesignated fund balance only in emergency situations. This unreserved fund b~~lance allocation ~~long with specific budgeting techniques has ~>Zlowed the City to increase or maintain fund baltmces over the past ye~u•. The City continues to pursue cooperative efforts with other local governments. Joint funding, purchasing, planning and other efforts allow the City to meet mandates for new and improved services in the future at the most reasonable cost. Joint cooperation currently encompasses regional transportation planning, hurr~in services, solid waste management planning, a haz~~rdous materials response program, an enhanced 911 emergency communications system, community facility, and joint economic development efforts. While such cooperative efforts ~u•e not new in concept, the City expects to enter into more agreements with neighboring governmental subdivisions, as well as with the University of Iowa. There are many signs that the City rem~uns healthy and vibrant with great promise for the future. The University of Iowa continues to add new buildings and facilities. The City continues to see sustcuned production in major local industries. Industrial and commerci~~l interests within the conmiunity have continued to thrive. Throughout the month of June, city staff and the citizens of Iowa City de~~it with the Iowa River which flooded centr~rl puts of the city. The City of Iowa City was ~unong several cities in Iowa that received a Presidential Disaster de.cl~~ration. That disaster decl~iration brought the Federal Emergency M~uiagement Agency (FEMA) technic~~l and financial assistance to Iowa City. As in many such disasters, pzu-ts of the community experienced financi~~1 h~~rdships while it brought financial opportunities to others. In fisc~~l ye~~r 2C)C)9 we expect to rebuild and enhance the affected ~ueas. Major Initiatives The City continues to be proactive in maint~uning and building its sheets, bridges, storm water mains, and trail systems and spent approximately $7,191,00() in fiscal ye~ir 2005 on v~~rious projects. The major projects were intersection improvements at GilbertlPrentisslBowery streets, the extension and pavement of Lower West Branch Road and the continuation of the McCollister Boulev~ud extension project. The Iowa City Housing Authority provides rental assistance contribution contract with the Federal Government of $(,231,0[)(). Gr~uit and Home Itzvestment P~u•tnership funds totaling approxirr~ economic development, housing ye~u• 2005. Community and E~ other funds. These l~rograms developers, and others. for 1,214 units, with an annual y $1, 595,000 were utilized for fanning activities during fisc~>Z approxim~ltely $4,234,000 in impacts loc~illy for builders, Financial Information Single Audit: As a recipient of feder~~l financi~~l assistance, the City is responsible for ensuring that adequate intern~~l controls ~u•e in place to ensure compliance with applicable laws and regulations related to those progr~uns. These intern~>I accounting and adininishative controls ~u•e subject to periodic ev~>Zuation by the City's m~inagement. The results of the City's single audit for the fisc~~l ye~u• ended June 30, 2008 provided no instances of rr~iterial weaknesses in the intern~~l controls or significant violations of applicable laws and regulations based upon the audit of the basic financi~~l statements. Retirement Plans: With the exception of police ~u1d fire employees, substtmtially all permanent City employees ~~re cove.red by the Iowa. Public Employees Retirement System {IPERS}. The state :ulnually sets the contribution rate for ~~il municipal entities and covered employees. All covered employees ~u•e required to contribute 3.9~Io of their s~~l~u•y, while employers conh•ibute 6.05~'le. There is no ~illocation or measurement of unfunded liability to ~iny municip~~l entity and, upon the retirement of employees, Il'ERS has the sole responsibility for their benefits. The City has no responsibility to pay employee pension benefits of IPERS besides the required contribution. The City's police and fire employees ~u•e covered by the Municipal Fire and Police Retirement System of Iowa {MFPRSI}. This statewide system is a cost-sh~uing multiple-employer public employee retirement system. The state annu~>Zly sets the contribution rate for all municipal entities and employees. The City has no responsibility to pay employee pension benefits of MFPRSI besides the required contribution. Cash Management: The n~~jority of the City's investment activity is c~uried on by the City's investment pool, except for those funds which ~~re required to maintain their investments sep~u-ately. This pooled concept provides for greater investment e~unings that sue then allocated to the City's funds on a systematic basis. The intention of the cash management system is to limit the amount of funds placed in accounts where low or no interest is p~ud. Idle cash is invested in v~u•ious instruments with v~u•ious maturity dates of less than one yetu•, depending on the anticipated cash requirements during the period. The overall strategy of holding deposits and making investments is to expose the City to a nunimum ~uitount of credit risk and m~~rket risk. All bank b~~l~uices of deposits as of the balance sheet date ~ire entirely insured or collater~ilized with securities held by the State of Iowa Sinking Fund. For the ye~~r ended June 30, 2008, the City e~u•ned $7,211,000 from all investments, a decrease of $440,000 from the prior year. The following table shows how this was ~~llocated by fund type far the. fiscal ye~u•s 2008 and 2007: 2008 2007 Investment Investment Fund Type Earnings Earnings {in thousands) {in thousands) Government~~1 $ 3,932 $ 4,045 Business-t~~e 3,279 3,600 Totals `~ 7211 `~ 7_h5l Risk 14lanagement: The City is exposed to a v~uiety of accidental losses and has established a risk m~u~agement strategy that attempts to minimize losses and the c~urying cost of insurance. Risk control techniques have been established to reasonably ensure that the City's employees sue awzue of their resl~onsibilities reg~u•ding loss exl~osures related to their duties. In a sinvlar n~ulner, risk control techniques have been established to reduce possible losses to property awned by or under the control of the City. Furthermore, supervisory personnel ~~re held responsible for monitoring risk control techniques on an operational basis. The City completed its eighteenth ye~u• under a property and liability insurance program that provides for a $100,00(? self-insured retention per occurrence on property losses, a $5()0,000 self-insured retention per occurrence on liability, and a $400),000 self-insured retention on workers' compensation losses. The insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of the losses p~ud. The operating funds pay annu~~l premiums to the Loss Reserve Fund, which is accounted for as an intem~~l service fund. The b~~lance in the Loss Reserve Fund is av~ulable to cover the self-insured retention amounts ~u1d ~u1y uninsured losses. The tot~~l assets in the Loss Reserve Fund as of June 30, 2004 were $7,420),000. Independent Audit: Chapter 11 of the Code of Io~~•a requires an annu~~l audit to be performed. The independent public accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the requirements set forth in Chapter 11, the audit was ~~iso designed to meet the requirements of the Single Audit Act of 1996 and related OMB Circul~u• A-133. The independent auditors' report on the basic financi:>I statements quid combining and individual fund statements and schedules is included in the fin~ulci~~l section of this report. The independent auditors' reports related specific~~ily to the single audit sue included in the compliance section of this rel~ort. The financial statements ~u•e the responsibility of the City. The responsibility of the certified public accountants is to express an opinion on the City's financizil statements based on their audit. An audit is conducted in accord~ulce with generally accel~ted auditing stand~u•ds. Those stand~u•ds require that the audit be plaxined and performed in a manner to obtain a reasonable assurance as to whether the financial statements ~u•e free of rt~~terial misstatement. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada {GFOA) aw~uded a Certificate of Achievement for Excellence in Financi~>I Reporting {the Certificate) to the City of Iowa. City, Iowa for its Comprehensive Annual Financial Report for the fiscal ye~u• ended June 30, 2007. T11e Certificate is the highest form of recognition for excellence in state and loc~il financi~~l rel~orting. In order to be aw~uded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financi~~1 Report, whose conteazts conform to progr~un :,~.i[~~r•[i~. 't'€~e Cna~r~rx~ih3'kS[4~G` .~ka~~~aE E'~fd3'~dld:::2! ~.~~.a2t1 ~r~tt~t ~a~zis~}° ~~w3~~ ii~.4:ti.~E331g€[! ~t€'i~..!i~i~!~ ~~~~ra~~y ~x;ca~~ ire ti3~ ~~~i€~ ~~,~ ~~ r~~~a a ~#~~~~F~ i~F~~ ,re1~~s, ~f E.'~..~s~~€r. as w~}~~ #a~r ~. ;~': ~~ ~~~ its#*~. Tt~~ t'~~~ ~~~ s.~;€~~ci f`~~~.~€~ i rta~ 9as€ Ew~.q~#~ ~h~ ~5i~a:~_yER.~s~ s~~. r ~3e,~i~'~e E3a~r ;.~?~~.n3 ~~'~~ ~~~~s~ ~rx ~.~?;~trsE'E7 ~e:3 t#a~ f~'c~#if~c~~~ ~~i~w~it~ and ~~i ~€~€~~~ttt~r~ ~t ~,~~', t3 ~f;~:i€~: ~i3 ~~~i€k#.i4;~ i~~ :~Fx~~ 'fi~ ~7epa~€€tt~~i ~~~ ~~~a1n~z~.~: ~ re~a~ ~~ t~,~. ~,%€l1~~:~3~~€~tTO'~ ,r`~?~udt ~ir.[~~~~~ ~~~[ ~[ tt~ ~'`~ty ~#' .~4i'i'x'~~ ~C'j~:Y~ ~l3'*§'~ ~E.S~ ~~. t~~S~,akj yk'-~i' a~:n~ ~~xigFS :?'~, ~~}~)i~'~i, ~ ~~k4*' ~-`Ci~.1L+.t~B~. ~`; i~`.:[.~i}it`P~~ ~t}' ~c~'W, I~ ;~~~b#~ ~r 3h~ ~~;~~~~ <~rYd 2~CC~rrit~ ~f~~~i~'~~,. f~~ t {;iE~'s ~:.cp~~r~:~F~~. r~,~tr1~~1 ~~~a~~i~~ ~t~~. ~ ~xi.~~~ t~~~ e ~~.`~~r.t€~~. ~~~~~fr~ ~ ~:~~~.t€; i€~ ~i] rr~~~~}. ~,:~27~C~; ~ t€~ ~~s ~~~t ~~a€~~y ~~~t~ die #"tt~i~~ s~~~c~ ;ir~it ~ti~~~~~ ~~" cs~~~i~~ ~3~ ~~~ ~~~~~ fur~~.~ ~~ ~ ~i~~.~+. ~~"iu: ~;~~-~;~ ~~ ~~is, ~.t ~5~ ~ t*~e;#~f h,~.s~ ~ s~~~~ ~ ~~'~. t~~:~x ~~!~~.>~~c~ci ~kt+ut r~ ~~ft~i;~€~~~ ~~ c#e.~..z<~~ ~,~~~,;.r_s - ~ tti~: ~r~ti~~. st~~# :st" t~i,~ t~~~.~` i:~~:€~. ~~r,~r€~-~:.ut. # ~~#~ #a3cc E~~ ,. {`•k.~PC>3 124#' £E~A~.lYtyll'tipft9.i iC1 i%4€T .F.43~'[Yi~t^; C'3 it'I~?`. f~S;~.t~Is331L.$~i ~4'.+ES Yi'y't,?.i#;i~. na>~ ~'~l?tEf."F~"M!t~l.'..~n ~~'F {t:s ~~~~ai~~~. i ~t~a tai ~z~c~~t}.~ te~.~~S~~ ~}-~~ c~,:~€~t~~~~sr~~ ~t' use ~~r`a ~'t~~~tra?i3e~c. R.c~bi~c ~4~~s~yta, .~~:ti:!;TK1E ~..~?TtECit~~;:r, ~,~~ :~#isti~.t~: ~ys:'r€~ss# .~~r~sts>r~ I"~i~:~[.o#~:; ~`i~'Fz~li~t, ~E:.~x;'~r .fiE:~~r:~rtt~r'~., ~€~.~:~,i.~~ ~i;~ti~ ~~~:1 ~~~~~r#t:'~.~c?tea€~F~€, t:;~1~'ix #~~s~~#tr~.~:t. ~~~s, ,# ~~~#C fFt€; J~.~'~~, 3~~#:a1i'?:S ~#- ~k~: ~'€r ~'~n::c.#i f~rrc~ ~e ~~~.T~ :4~~.~a~~r ~~~~ €~:~~ ~,.[~~ Vic{ ,rt;3'; ir1 ~ldnl~sriy ~s:~ 4:~n~~~C~~a7 ~ ~[~:aa~# ~~+id~;c~s :~k #t €~ i~~ ~ ~~. ~~s~~~i~.~ f ~: 'v s. d +~ L ~ '~ ~(~ O ~ ~ ~ _ ~ C R Om ~ m .~~+~ v~ t~ ~` ~ ~ ~ ~ G1 _ v O ~ U _ .. .., _ m °- ~ ~ m mm ~ mm ~ ~ N N ~ ~ V C - ~ ~ ~ w ~ d .a y ~ i i .Q L O 'L '~ >. m m E m - 'S 3 ar m V 3 a~ ~ ~ ~ ~ O ~ ~ ~ Q d w U w w ~ ~ v~ fn ~ v~ F- ~ ~ ~ WO r~~ ~m a a m W U ~ o ~? w y C C _T O ~, O ~ y (n .~ y ~ C ~ iC U d ~ ~ ~ U ~ .N ~ ~ 'a O U ~ C O d '~ ~ ~ O ~ d> ~~~, o- ¢ Q U to U_ w U a ~_ ~' ~0, \ ~ y ~ U ~ to ~ J o .. ~ ~ r- rp ~ d L ~ ~ O ~ L A~ c ~ ~ O ~C tti ~ a? J ~ aif ._ d L i w E ~~ ~ .OC ~ ~ ~ ~~ ~° y ~a '~a oy a ~ ~ O Q 7 ~ 'CS O N V d (Uj G~ d 'Q a v a ¢ U^ wo ~ zv> ~. ~ V C L O CC ~ ~ *' (~ ~ L ~ ~ ~ ~_ v~ B O O r ~ ~ y O y- N t~ y ~ ~ ..., ++ ~ C t6 SC Y N V ~ ~2 ~ y i. y w ~~ ~ d N D ~ ~ ~ i > a i U t ~ Q U U ~i C7 m a ~ V I I I I I I H •~ O L ~ V V ~ ~ O ~ y... d 0 ~ ,~ ~ ~' '= H .~ ~ a t= a ~ ~ ~ N {,.~ ~ ~ }f ~ of ~ d1 O ~ ~ 47 y O N G7 U V p 'y d> y 'a 7 UJ O 7 O y ~+ 7 O- L ~- Q m~ S Q =~ Q °~~° i __ ~ r ~ o_ ~ O y ~ y y w C~ O i ~ L1 N C ~ CL fl lL '~ '~6 y i i i~ y ~y U ¢~ ~a wm .~ ~ ~ i ~ ~ ~ a' a' ~ ~' m p v a ~ ~ O aNi is p w ~ ~ U C V C 7 ~ E V ~~ V C ~ ~ O ~ U ~ O y w V~ > .1G ~ Nl ~ j ~ lLa 'R Q 0. OU) ~~fn 2' 2~ .~ ry.. 'C 'vr O r fl..~ ,~ Q. ~ c ~ a' ayi ~~ a~ ~ ~ so ~ _~ a ~ ~ N . ~ ~ ~ V ~ ~ O U 'tnU~ °~ ~ ~m Q ~ m~ x sx 10 CITI' OF IOWA C:ITI', IOWA LISTING OF CITY OFFICIALS June 30, 2008 ELECTED OFFICL~LS Mayor Council Member and Mayor Pro tem Council Member Council Member Council Member Council Member Council Member Regenia Bailey Mike O'Donnell Connie Champion Amy Correia Matt Hayek Ross Wilburn Mike Wright APPOINTED OFFICIALS City Manager City Clerk City Attorney Michael A. Lombardo Marian K. Kan• Eleanor Dilkes DEPARTMENT DIRECTORS Assistant City Manager Director of Housing and Inspection Services Library Director Director of Planning & Community Development Director of Public Works Director of Parking and Transit Senior Center Coordinator Fire Chief Parks and Recreation Director Director of Finance Chief of Police Dale E. Helling Douglas W. Bootluoy Susan Craig Jeff Davidson Rick Fosse Joseph Fowler Linda Kopping Andrew Rocca Teary G. Trueblood Keti•7n O'Malley Sam Hargadine 11 Term Expires January 1, 2012 January 1, 2010 January 1, 2010 January 1, 2010 January 1, 2012 January 1, 2012 January 1, 2012 Date of Hire May 19, 2008 May 21, 1979 March 18, 199 August lb, 1975 September 22, 1975 July 28,1975 January 2b, 1981 February 22, 1984 March 20, 1995 July 14, 1978 February 18, 148(1 August 19, 1985 Certificate of Achievement for Excellence in Financial Reporting ~resente~i try Iowa l~crr its oin~rc~7~t~si~~c .~ru~~~al l~iuancial Deport fvr the T'isc~1 Year ~r~ded Jute 3i1, 2047 r'~ C'~1lrificate ufA~c1>ievernent fur L-'x~:cllcncc. inrinancial Rc~nrtin~ is ~rese]ti#~d ley the ~ia~~enu~~ent ~'it~auc~ C~i~i.cers As~s~c.iatian of thd: ilnited State and. C'ana~la ter go~~e~~~urs~nt u~yi~s and public e~rt#l~yee retire~rrcnt ~ys~ms ~~~hose eomprel~ensio~e ~~~i~~aal finaiycial rcgt~ris {(:AFL~S) acl~ic~~c the highc.~t standards in go~resiui]er~t accrkurlting and ~~ta~~fii~] re~oriing, E 01'* ~ ~ *~- ~, Ar+ ra ~ ~ ~1da` ~'f~51~~711 ~~ ~ „~ 045. M•3 YS ~,7{C~~L1t1V4: ~1C~.C#CC 12 ,~~"'~~ ~-. ....................................................... . pity ~+~~~~av~~ = ~:cr~~ta '~: ~~.~~ ~r~.tr~~ ~ ~zs;~=ir~~ #~~a~zal ~t~t~u a~~ tie ;~~=~-~zzz+ez~. ~Lt~~~ti~, t}~~ fxs~iti~>,~;~:,-t;' ~tet$~iti~, Bch mad fti~d, and ~:~~e x~ ~ti ~~~~atic~c ~~ {rt~€ ~~- ~a~va £~t~r, ~~ x~~tt~z~~ ~~ ii~ts i~ ili ~~~ rr.~ ~:c~.~s_ T~~ ~~ t~FZ~~ see ~~ ~~~i~i~i~- ~~' e ~a~~~er~t af~ t ~it~ ~~ ~~~:~ t:'i#.~F. +t. ~~'i~saliE~' is tt, c~:.~s~ ~.ii~~ g~ t~ ~~sci s'E~~i~ts ~ ca~~ +~i~` si~'`t. ~ctea~ ~~r gut ~~~~:~ ~i ,trt~~; a~ 1~~ ~ ice. .~'~it t~ ~f ~iea ~ i ~~aads ~~gl}4y~i~ ~~ ~i~ua~i ~€~€cii~s ~~air~~+ci .~ ~~rr~` ir~r"ping ,~~rx~ i~~ ~~y e ~.`airr3}:~~a.~it~; ~ c,~t ~e ~,:~i. rr#~-~.: ~"s.;~; s~r~.~,rfai€~ tai ~-~~ pi. p~rt+a ~~~~ €3t,~iit Ica c:tsta~zi. e~~~~~.{~#~~~~ ~~.~.t ~t ~~:tiz~r €t ,~~~e.~~~ ~t~x~~i~; e~ o~~ ~~~~ 'j~i:ift;~~'~'~~. ~lt~~ i~C~rcfSn~ ~x~.~, 7:~1~. :~ ~ ~i~:ti~~+ ~~ ~~s'~~f[?~LI~t,~' ~'hfi~ ~[' .~~{~ i:;r-~~ the ~Fzzj~i~ st:~nt:~, s€ ~~difi ~~>~~~ iriti a.si €~ ~€x~.tir~.g ~~i,r.r~~. .~ ~r~~ #.isc: ~:~ ~iti~iz~~ats ~~ ~~~~ ~3~~~i, ~s ~~ ai.~~~~ i. a~~e~~~~ ~~~ia~ ~~ ~,~~~t€.~r~. .~~~{~ t~~ uz ~~~~ ~~ie x z~na.~l. ~~ .€ cur zs. t'j t3~~ CY~}3333i:~'~, i~9t^ F.7.t3!i3~,.'1;F~ ;;',rt;i#t~ 3"i.C£IE'CC~ ail ~1~'!c?rt`~' '~E'r,;;!rt'E~ ~~..., ~ .~~ i11El~~?€7~ ~~ti~`~, C#' ri:~c:~i~~: t"tzc~~t ~~:nit~~.~~~~ ~rt~ t ~_~~.~:.~::r~~tat as:~tv~.~i~~, tae txi~zzz~:~,s•t~ f~~~€~., ~~ ~,~tr;~ tea., an,~ t air r~ , ~ ~~~.~r~n~~a c~i'e €~`i€~F c~~''~~~ ity~* ~~,tv~, ~~ ~~`~e ~4, $, ~r~€~ si3c~~ ~c~ e~ i~~ ~}~ ~a~i~r~ a ~~~~ ~~ir.~~~.~, ~~s~s. ~ta~r~ t~~~~ ~`i}.r ~ e~~ ~. ~~ €€, ~xza~r~i~.~` ~ i ~ch.c:~ t ~~rii~~~ ~~~ii~+ ~ ~ t t~~~it dies c>~ .,fie:. ~u. ~S:.s:~~[`t~~i.W v~fith z~~>~~¥trz~K*€€1 ~~~cf~ir:,~ ~~rz~-~,~~~`.~* ~~ ~€~~ ~~s~ i.~;~:~~s~d ~z3i?' ~~ +~at€,€~ ~~-~~~'~~ ?{S} ~z~ ~ ar~~itao~~ ~~` 4~~* ~.;it*~~'~ t~.#n~. t.~~~~~ ~~+ ~t~t:.i. ~rx^x~ €~n~l c~ ~~ r~~ its ~~~~r ~~k~ ?€~ ~~.i ~ p: i~ €c~ t^i ~~z~+ ~~.~::~~~ ~~`~ t.~.~t~; ~`;xz~.t :~€~t~~~ ~ ~z`~~~i~ re~?ertit~~ ~:~~#aii~^ anr~ #~e sit, t~ ~t ~:~v'k`_it?~: ~ it7.€~~ t~ p~~{~~i~ *.~~s~r~€~r~ c~~. ~ ~~.~~ +:t?tlt.t';~l it~~'i' +c€Ii±:I:t~ T'r`~?t~?~'t1Ci4r i" ~'x3i t`ikI;isi~I#:t+. ~l~t ~'~ I~ i'}it ~~~ iil3 i~!l~it C1??ml£'t~ ~ c?~rt~c.~ ~'i#~, t 7~~?t~r~7'.~dTxit~it ~t~`~x~~z~ ,.~taf.~~rrx ~r.~':I sizc~u ~c=.~ic€~r izz ~;~:s~::,:;.i.r.~~ #~ ~r~ez~.i «~t.+r ~~~t. i~ ...........:.:.:.::........:.:.:.:.:.:.....:.:.:.:.:.:.:..:..:...:.:.:. n .:.: , .:...::.:.:.:.:.........:.:.:.:.:....... . ',fir' tn: ~ d Ci ~F t,F ~ ~ ~ '~ , ~ .:; €?1 ~~ ~'~nns~,~r<i.<f~:~., ~~. ~4}t'~ ~ ~~.;~~agila, ~~~~a ~~~~~~~~?3 t [aaee .~d~_.'i.'~6.`7~~w ~ F~~ .~«5.,,..~7.~~.«2 ~ E c~~ti~ a nit ~ ~~e~ p ' the s~~ r~.i ~t~t~re t ~l~~t ir~~'c~~sx r~~~r ~ ;~~.r~tin. ~~n~:i~c~ j ~~~xi ~~ t~~ ~.T~~€. €~t ~~ nc~e~..~~~ i~v~ ~~~ cam. ~ tee. ~~.txa.4~ ~s~i ~z-~.~.~~i~ of"u~~i~ o,~ ~€~~tt x~~~r~ t~€e m ~}~ ~~r~~ cf ~~~att~ ~f#e ~ ~1e~e~t:~~'?t a~a~r.~e.~n, ~rc~v~', ~e ~€i . ~~~ (~~ar ~udtt ~ ~u~ ~`~ the ~~t~~~ s~f ~a~~ ~s ~n ~ st~tits i.~t ~r#~iv~1 e~~~ #.: ~i ~~ti; t~~t~~~k~ r~~ #~t~ ~"i#~- ~~~ ~~~~~~ Cit~t, ~;y+~a~ '~ ~~t~x~i3.zct}3~ :cam, ~;t~~ai~~i~~ a~r~~~~r i?x f"t~~nr.~ ~#~#~.S~31~'FIF~, F~1' ~t~#~ti~ ~~~;~~ a1'~ ~~~~~ i:~:~ si~~~.~ r}~ ~~i~ fit ~~`.~'~~~ ~v~ i~ ~r ~€~~ }~~c o~ u€~+~~t~J ~a~.~i~ ~s b~ . €r.~ ~ ~f~n~t ~rx ~3~d,t ~:~~t .~-i:3.3, r~€~~it~ otar~, ~?ca~ ~.n~s, ~ ~F~~ ,rrx~ ~tt~, ~i ~~ ~ ~ ~ r~c~~€~ ~~.r# ~~: t~ ~*.~ ~as~~ s#~.~.#s r~#' #.:~~ ~€ Mfr i~ ter. a~.'i ~~#r~.~s~t~g r.~.~~a~r ~ ~aP. ~ti~#~€~~e ~ t~~ ~i~~ ~# ~.!c~~~t~ ~~~~ ,.'~~~I' ''~ II ~:j1jC't't #f~ ~ t~i:C~1f,33]'~ ~~fh:~i~llr~.S ~~~~lecl ~ ~3£`,~ft ~~"~'!~ ~1d`i.G h.~`1.~~ t;~t~~E€~t,~; :tn~, ftt ~F ~spiniixF, ~'~i~I.~' ;;~t~ui ~~~ :~~ .t~:~i.~ ,r~~'~c~+;#,~ ~t~ ~:]t~tic~n #~ t 3~sir fir~~i~i 4~;,~.~.;,~Pt7~;i is ;14 ~. ~!F~~~~;~;.: ~~5~ t#~i`~.'~G,~~a~r ~dc~~Fti~E~ ."~~~ ~3~~f• ~~~ ~~e~~tir~~t'~ ~€~ tkr~ ~~9.i~~g i~~~ ~~ k~~ ~~ ~.z~ ~~i: ~ k~c:• ~.~~t~~ ~~~:z~ ~ EEC+. ~~~~ ~,ss ~u~ {~€~i~~ nr~ t~a~ ~~~~ ~~u, ~r~ ~ ~~ Management's Discussion and Analysis As m~uzagement of the City of Iowa City, we present this n~urative overview and an~~lysis of the financi~il activities of the City for the fisc~>I }Te~u• ended June 30, 2008. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmitt~~1, which can be found on pages 3 - 9 of this report. Financial Highlights ~ The assets of the City of Iowa. City exceeded its liabilities at the close of the tisc~~1 ye~u- ending June 30, 2[?[?8 by $367,313,0[?0 (net assets}. Of this amount, $74,199,000 {unrestricted net assets) ma}T be used to meet the government's ongoing obligations to its citizens and creditors. ~ The City's tot~~l net assets increased by $16,9.56,000 during the fiscal ye~u•. Government~~l activities increased by $9,442,[?00 and business-type activities increased by $7,514,[?[?0. ~ At the close of the current fiscal ye~u•, the City's govenunent~~l funds reported combined ending fund balances of $40,421,0[?[?, an increase of $3,792,00[} in comp~u•ison with the prior ye~u-. Of this total amount, approximately $28,177,0[)[), or 70% was unreserved and is available for spending at the City's discretion. ~ At the end of the current fisc~>Z ye~rr, the City's unreserved, undesignated fund balance for the General Fund was $14,488,000, or 33% of total General Fund expenditures. ~ The City's total debt decreased by $4,165,0[}0, during the cm1•ent fiscal }Tear. The key factor to this decrease was the retirement of bonds. 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 ~u•e comprised of three components: 1) government-wide financi~~l statements, 2) fund financial statements; and 3) notes to the financial statements. This report ~>Iso cont~uns other supplement~u-y information in addition to the basic financi~>Z statements themselves. Government-wide Financial Statements: The gnvernmer2t-wide.financical statements ~~re designed to provide readers with a broad overview of the City's finances in a manner simihtr to aprivate-sector business. The stcaternent of net assets presents information on ~~ll of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial l~osition of the City is iml3roving or deteriorating. The stcrtenrent of activities presents information showing how the City's net assets changed during the most recent fise~~l yezu•. All changes in net assets sue reported as soon as the underlying event giving rise to the change occurs, reg~~rdless of the timing of related cash flows. Thus, revenues and expenses sue reported in this statement for some items that will only result in cash flows in future fiscal periods {e.g., uncollected tees and e~u-ned but unused vacation leave). Both of the government-wide financi~~l statements distinguish functions of the City that ~ire princip~~lly supported by taxes and intergovernmental revenues (governmental activities) from other functions that sue intended to recover ~t11 or a significant portion of their costs through user fees and ch~urges {br~siness-type activities). The governmental activities of the City include Public Safety, Public Works (roads, traffic controls, and transit), Culture and Recreation, Community and Economic Development, Gener~~l Government, and hiterest on long-term debt. The business-type activities of the City include Airport, Cable Television, Housing Authority, Perking, Sanitation, Stormwater Collection, Wastewater Treatment, ~~nd Water. 15 The government-wide financial statements m~ly be found on pages 26 - 29 of this report Fund Financial Statements: A francl 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 s~une function reported as governmental activities in t11e government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on r2ear-term inflnwv.s crricl nutflnwa' of sl)erulahle resources, as well as on lialar~ces of spenclcrble resnur-ces av~ulable at the end of the fiscal yezlr. Such inforrr>iltion 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 n~urower th~u1 that of the government-Wide financial statements, it is useful to compare the inforrn~ition 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 rn~ljor governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, and Debt Service Fund. Information is presented separately in the governmental funds bal~ulce sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these rr>iljor funds. Data from all other non-rr>iljor 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-nl~ljor governmental funds is provided in the form of cx)mhinin~ statements elseWhe.re 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 c~ui be found on pages 30 - 35 of this report. Proprietary Funds: The City nl<lintains two different types of propriet~u•y funds. Enterprise.firncls sue used to report the same functions presented as business-type activities in the government-wide financial statements. T11e City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Pzu'king, Sanitation, Stormwater Collection, Wastewater Treatment, and Water activities. Ir2terr2crl S~r~~ice, firncls sue Dui accounting device used to accumulate and Allocate costs internally among the City's various functions. The City has four Internal Service Funds: Equipment Mainten:ulce, 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. Fioprietary funds provide the same type of information as the government-wide financial statements, only in more det~ul. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three non-n>iijor 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 84 - g6. 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 c;ui be found on pages 36 - 41 of this report 16 Fiduciary Funds: Fiduciary funds are used to account for resources held far 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 two fiduciary funds: Project Green and Library Found~ltion, which are nl~unt~uned as agency funds. The basic fiduciary funds financial statements can be found on page 42. 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 43 - 72 of this report. Qther Information: The combining statements refelTed to in the above paragraphs in connection with noli- Inajor governmental funds, non-nuijor enterprise funds, and internal service funds are presented inlnlediately following the notes. C=overnment-wide Financial Analysis As noted earliea•, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $367,313,000 at the close of the fiscal year ended June 30, 2008. $y far, the ltlrgest portion of the City's net assets reflect its investment in capital assets {e.g., l~uid, building, machinery and equipment, improvements other than buildings, and infrastructure), less 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 l1~1b111tleS. Cit}• of Iovva City's Net Assets Jwte 30, 2008 (amounts expressed in thousands'} Governmental Business-t}'pe activities activities Total 21108 20(17 2008 20(17 2008 211117 Current and other assets $ 118.167 $ 107,390 $ 95.730 $ 94,847 $ 213,597 $ 202,237 Capital assets 157,273 153,380 257.034 255.577 414.307 408,957 Total Assets 275.440 260.770 352.764 350.424 (28.204 611.194 Long-term liabilities outstanding 84.442 82,616 110,027 115,332 194.469 197,948 Current and other liabilities 61.305 57.903 5.117 4.986 66.422 62.889 Total Liabilities 145.747 140.519 115.144 120.318 260.891 260.837 Net assets: Invested in capital assets, net of related debt 87.723 101.027 160.330 172.518 248.053 273.545 Restricted 23.741 8.181 21.320 23.893 45.061 32.074 Unrestricted 18:?29 11.043 55.970 33.695 74.199 44.738 Total Net Assets $ 129,f>93 $ 120,251 $ 237.620 $ 230,106 $ 367,313 $ 350.357 17 A portion of the City's net assets {12.2% or $45,()61,0()0) represents resources that sue subject to external restrictions on how they ]n~iy be used. The renutining bal~lnce of the unrestricted net assets {20.2% or $74,199,000) may be used to meet the goveniment's ongoing obligations to its citizens and creditors. At the end of the fisczll ye~lr ended June 3O, 20Ox, the City is able to report positive b~thinces in all three categories of net assets, both for the government as a whole, as well as far its separate governmental and business-type aCt1VIt1eS. Governmental Activities: Govet-nment~tl activities increased the City's net assets by $9,442,000. The increase in net assets of govel-timentctl activities is prirr-~trily clue to expenditures for capital assets less depreciation expense. The following is a more det~liled review of FY08's operation. City of lo« a City's Cl~uiges ni Net Assets (arnuunts expressed in thousands) Goverruiiental Business-t»e actit~ties ac~titlties Total zoos torn zoos zoos zoos zoo? Revenues: Program Revenues: Charges frn• services S 6;379 S 6,598 S 34,876 S 34;397 S 41,255 S 40,995 Operating grouts and contributions 3,611 3,215 6,281 7,172 9,892 10,387 Capital ~ ~anLs and eonri-ibutions 1,747 4,283 2,798 4,866 4,545 9,149 Gcncral Revenues: Property taxes 43,400 41,492 - - 43,400 41,492 Road use tax 5,432 5;305 - - 5,432 5;31)5 other taxes 1,435 1,412 - - 1,35 1,412 Earnings on investments 3,932 4,045 3,279 3,606 7,21 1 7,651 Gain ou disposal of capital assets - 281 1,260 591 1,260 872 Other 3,509 3,656 454 3~3 3,963 3,999 Total revenues 69,445 7(),287 48,948 50,975 118;393 121,262 Expenses: Public safety 20,5()4 16,694 - - 20,504 16,694 Public works 13,727 13,560 - - 13,727 13,560 Culture and recreation 13,460 1 1,97D - - 13,460 11,97() Community and economic development 1,850 4,68() - - 1,850 4,680 Gcncral government 7,433 7,258 - - 7,433 7,258 Interest on long-term debt 3,517 3,459 - - 3,517 3,459 Wastclt-atcrTrcatrncnt - - 11,757 I L537 11,757 11,537 «'atcr - - 8,804 8,823 8,804 8,823 Sanitation - - 6,868 6,684 6,868 6,684 Housing Authority - - 7;374 6,884 7;374 6,884 Parking - - 3,913 4,403 3,913 4,403 Airport - - 560 418 560 418 Shlrtnwater - - 1,072 932 1,072 932 Cable Television - - 598 525 598 525 Total expenses 6(),491 57,621 4(),946 40,2()6 1 C)1,~37 97,827 Change in net assets before n•ansfers 8,954 12,666 8,002 10,769 16,956 23,435 Transfers 488 (5;321) (488) 5,321 - - Chaugc in net assets 9,442 7;345 7,514 16,()90 16,956 23,435 Net assets beginning of year 120,251 1 12,906 230,106 214,016 350;357 326,922 Nctassctsendoi'year S 129,693 S 12(),251 S 237,620 S 23(),106 S 367;313 S 350,357 18 Business-t~rpe Activities: Business-type activities increased the City's total assets by $7,514,OQ0. The increases in net assets were prim~uily in the Wastewater, Sanitation and Airport funds. For ~~11 business-type activities, revenues exceeded expenses by $8,Ot12,000. The gral~hs on the following pages represent a breakdown of revenue by source and expenditures by progr~un ~~rea for gavemment~~l and business-type activities. 19 Governmental Activities FY2008 Revenue by Source Qther Taxes Misc. Charges for 10% Qther services 11% go~c f L_ Property taxes 62% Grants and Contributions 8% Business-Type Activities FY2008 Revenue by Source Misc. Other 1Q% Grants and L Crnitrihutions - ~- 1~} Charges for services 71% 20 Governmental Activities FY2448 Expenditures by Program Area (amounts expressed in thousands) Public 22 044 2 1 1 1 1 ~' 0 1 A 0 Program Area Business-Type Activities FY2408 Expenditures by Program Area (amounts expressed in thousands) 14,000 12,000 10,000 ~ 5,000 L CC A 6,000 4,000 2,000 0 Program Area ' Safety 4,444 5,444 Public Culture and 6'444 Works Recreation 4,444 2,444 General 4,444 Govt 5,444 Interest 6,444 Expense Community an 4,444 Econ Dev 2,444 as to wale r reatment Water Housing Authority anitation Pau'king tormwate r :iii'port Cable'I't' 21 Financial Analysis of the ('government's Funds As noted e~ulier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The finz~ncial reporting focus of the City's gnvernmentcal ,funds is to provide information on ne~u•-term inflows, outflows, and bal~mces of spendable resources. Such inforn~~tion may belis useful in assessing the City's financing requirements. Ili p~~rticul~~r, unreserverl.funrl hEtlErnce may serve as a useful measure of a government's net resources av~ulable for spending at the end of the fiscal yezu'. As of the fisc~~1 yezu' ended June 30, 2C)O5, the City's government~~l funds reported combined ending fund balances of $40,421,000, an increase of $3,792,000 in comp~uison with the prior ye~u•. Of this total ~unount, $25,177,000 constitutes unreserved fund balance, which is available to use as working capital fur the Gener~il Fund since property t~~Y revenues ~ire received only twice a ye~~r and the remainder is available to meet the fuhu-e needs of the City. The rem~under of the fund bal~ulce {30.3%) is reserved to indicate that it is not available for new spending because it has already been committed. This rem~under has been committed 1) to liquidate contl•acts and purchase orders of the prior period {$1,515,0()0}, 2) to fund v~u•ious debt service payments {$5,691,000}, and 3) to fund employee retirement comnutments {$1,741,(}()0). The Gener~~l Fund is the chief operating fund of the City. As of the fisc~~l ye~~r ended June 30, 2005, the unreserved fund b~~lance of the Gener~>I Fund was $14,455,000, while General Fund's total fund balance was $14,934,000. As a measure of the General Fund's liquidity, it may be useful to comp~ue both unreserved fund balance and total fund b~~1~u1ce to total fund expenditm•es. Unreserved fund balance represents 325% of tot~~l Gener~>Z Fund expenditures {$44,175,0()0), while total fund b~~lance represents 33.5°,/0 of that same amount. The fund b~>Zance of the City's Gener~~l Fund decreased by $4,162,000 during the current fisc~~l year. This was prim~u•ily due to funding capital projects from fund balances. The Bridge, Street, and Trz~ffic Control Construction Fund had a deficit fund balz~nce of {$1,595,000) as comp~u•ed to a deficit balance of {$2,799,000} in the prior period. This fund accounts far transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2(}()9 to cover the capital expenditures. The Debt Service Fund had a fund b~~lance of $5,691,000, an increase of $4,402,000 from the prior ye~u•, all of which is reserved for the payment of debt service {i.e. payment of gener~~l obligation princip~~1 and interest}. Proprietary Funds: The City's propriet:u•y funds provide the same type of inforrr~ltion found in the government-wide financial statements, but in more detail. The ending net assets of the enterprise funds were $230,520,000, a net asset increase of $7,166,000. This was prim~u•ily due to an increase in capital assets without the issu~uice of addition~~l debt and a decrease in liabilities. Of the enterprise funds' net assets, $160,330,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $49,170,000, an increase of $21,927,000 comp~u•ed to the previous ye~u•. The Internal Service funds showed net assets tot~~ling $19,3(},000 as of June 30, 2005, an increase of $1,560,000 from the previous ye~u•. Budgetary Highlights The City presents budget~~ry information as ~~llawed by GASB Statement No. 41. Budgets ~~re based on nine functional ~ueas as required by state statute, not by fund or fund type. 22 The City had two budget amendments during the fiscal yetu•, which is our common practice. These amendments increased the expenditure budget by $32,676,000 to a total of $157,743,000. This represented a 26.1% increase. The tri<tjor increase was due to capitttl projects in gavernmentttl tmd business-type funds due to tinvng of completion of projects. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental ~tnd business-type activities as of June 30, 2008 amounts to $414,3(}7,1)00 {net of accumulated depreciation). This investment in capital assets, including lancl, buildings, improvements other than buildings, equipment, streets, bridges, tr~uls, 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 fisct>I year ended June 30, 2008 increased by $3,893,000 for governmental activities compared to the prior year and increased by $1,457,000 for business- type activities over the prior year. The following table reflects the $414,3(}7,000 investment in capital assets {net of accumulated depreciation). City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2008 2007 2008 2007 2008 2007 Land S 15,481 S 14,130 S 25,921 S 22,586 S 41,402 S 36,716 Buildings 43,645 43,169 77,703 80,759 121,348 123,928 Improvements other than buildings 3,736 3,589 7,666 8,100 11,402 11,689 Machinery and equipment 12,420 1(?,556 10,304 11,367 22,724 21,923 Infi-astructure 69,997 70,073 124,641 125,449 194,638 195,522 Constriction in progt-ess l 1,994 11.863 10,799 7,316 22,793 19,179 Total S 157,273 S 153,380 S 257,034 S 255,577 S 414,307 5 4(}8,957 Mzijor capital asset events during the current tisc~il ye~u included the following: • The p~irking dep~trtme.nt purchased land at a cost of $3,053,000 which will be used for a future parking structure that includes workforce housing. • Airport projects included runway design, grading, lighting, paving and runway extension. CIP at fiscal year end totaled $4,516,000. • A vttriety of street and bridge construction in new residential ttreas artd replacement and expansion of existing infrastructure amounted to $7,191,000. This includes the continuation of the McCollister $oulev~ttd extension project at $2,439,000, intersection improvements of $98(},000 at GilbertiPrentissl$owery streets and the extension and pavement of Lower West Branch Road at $1,948,0()(}. • The demolition and reconsh-uctiotl of fire station #2 at a cost of $1,336,000. Additional information an the City's capital assets c~tn be found in Note 5 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $182,435,000. Of this amount, $87,090,[}OQ comprises debt backed by the full f~uth and credit of the City. However, 5.6% of this total, $4,913,000 is debt that serves enterprise funds and is abated by their ch~u-ges far 23 services. The remaining $95,345,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds t; imounts expressed in thousands] Governmental Business-type Activities Activities Total 20118 2007 2008 2007 21108 20117 General obligation bands $ 82,177 $ 80,351 $ 4,913 $ 5,489 $ 87,090 $ 85,840 Revenue bands - - 95,345 It)0.760 95,345 100.760 Total $ 52,177 $ 80;351 $ L00,258 $ 106,249 $ 182.435 $ 186,600 During the current fisc~~l ye~~r the City's total bonded debt decreased by $4,1b5,0)00. ~ The City issued $9,150),000 in General Obligation bonds during FY08. The bonds were used to finance the cost of the City's 2008 Capital Improvements Programs. The City continues to have the s~une excellent bond rating an its General Obligation bonds that it has had for the past several ye~u-s. This rating is given to those bonds judged to be of the best quality and c~u•rying the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. ~is of .Tune 30, 20)08 were as follows: General obligation bonds A~~i Perking revenue bonds A Wastewater treatment revenue bonds A Water revenue bonds A The City continues to operate well under the State debt capacity debt linutations. State statute linuts the ~unaunt of General Obligation Debt outst~inding to 5% of the assessed value of ~til taxable property in Iowa City. The current debt limitation for the City is $197,689,049. With outstanding General Obligation Debt applicable to this linut of $87,090,000 we ~u-e utilizing 44.(15% of this lieut. More detailed information on debt administration is provided in Note 6 of the financial statements. Economic Factors and Next Year's Budget and Rates Throughout the month of .Tune, city staff quid the citizens of Iowa City de~rlt with the Iowa River which flooded central p~~rts of the city. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster decl~uation. That disaster decl~u-ation brought the Federal Emergency Management Agency {FEMA) technic~~1 and financi~~1 assistance to Iowa City. As in many such disasters, parts of the conuiiunity experienced financial h~~rdships while it brought financial opportunities to others. In fisc~d year 20)09 we expect to rebuild and enhance the ~~tfected ~ueas. The City's expectation is continued constraints by the State property tax formula. Therefore, the City will not have opportunities for new initiatives and will strive to n~iintain current service delivery levels. Requests for Information This report is designed to provide a gener~~l overview of the City of Iowa City's finances for ~~il of those with an interest in the government's finances. Questions concerning any of the inforn~~tion provided in this report, or requests for additional financi~~l information should be addressed to City of Iowa City, Finance Dep~~rtment, 410 E. Washington Street, Iowa City, IA, 52240. 24 • r r ~' 7 ,~~ 1 25 _4 CITY OF IOWA CITY, IOWA STATED-LENT OF NET ASSETS June 30, 2C)C)8 {amounts expressed in thousands) Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Inte~-~~al balances Due from other govet-~unents Prepaid insurance Inventories Restricted assets: Equity in pooled cash and investments Capital assets: Land and construction iu progress Other capital assets {net of accumulated depreciation) Total assets Liabilities Accounts payable Contracts pay°able Accrued liabilities Interest payable Deposits Due to other governments Unearned revenue Noncurrent liabilities: Due within one yeat° Employee vested benefits Bonds payable Due in more than one year: Employee vested Uenefits Notes Payable Bonds payable Landfill closure/post-closure liability Total liabilities Goverlnnental Business-type Activities Activities Total $ 48,552 $ 43,845 $ 92,397 43,839 - 43,839 144 3,881 4,025 554 1,361 1,915 13,532 1,562 15,094 {8,501) 8,501 - 4,792 707 5,499 9 - 9 509 364 873 14,737 35,509 50,246 27,475 129,798 36,720 220,314 64,195 350, l l2 275,440 352,764 628,204 4,528 1,037 5,565 1,331 549 1,880 3,764 336 4,100 273 2,412 2,C>85 831 677 1,508 - 106 106 50,578 - 50,578 1,050 266 1,316 8,349 6,121 14,470 913 228 1,141 211 - 211 73,919 93,314 167,233 - 10,098 10,098 145,747 115,144 260,891 {continued) 26 CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS {continued) June 30, 2C)C)R {amounts expressed in thousands) Governmental Business-type Activities Activities Total Net Assets Invested in capital assets, net of related debt $ 87,723 $ 1(0,33() $ 248,053 Restricted for or by°: Employee benefits 1,741 - 1,741 Capital projects 11,118 - 11,118 Debt service 8,691 - 8,691 Streets 2,121 - 2,121 Other purposes 70 - 70 Bond ordinance - 18,138 18,138 State statute - 700 700 Future improvements - 222 222 Grant agreement - 2,260 2,260 Unrestricted 18,229 55,970 74,199 Tota] uet assets $ 129,693 $ 237,620 $ 367,313 The notes to the financial statements rare an integral pram of this statement. 27 CITI' OF IOWA CITY, I©WA STATEMENT QF ACTNITIES For the Year Ended June 30, 2008 (:~mouuts expressed in thousands) FunctionslPrograms: Expenses Goven~menta] activities: Public safety Public works Culture and receeation Community and economic development General government Interest on long-term debt Total goverrunental activities Business-type activities: Wastewater Treannent Water Sanitation Housing Authority Parking Airport Stormwater Cable television Total business-type activities Total Program Revenues Operating Capital Charges Grants and Gt ants and for Services Contributions Contributions $ 201,504 $ 3,019 $ 241 $ 10 13,727 1,047 1,548 1,737 13,460 680 31 - 1,850 - 1,791 - 7,433 1,633 - - 3,517 - - - 60,491 6,379 3,611 1,747 11,757 12,318 - 577 8,804 8,195 - 314 6,868 7,853 - - 7,374 149 6,281 17 3,913 4,673 - 8 560 258 - 1,580 1,072 616 - 302 598 814 - - 40,946 34,876 f>,281 2,798 $ 101,437 $ 41,255 $ 9,892 $ 4,545 General revenues: Property taxes, levied for general purposes Road use tax Hotellmotel tax Gas and electric tax Earnings on invesunents Gain on disposal of capita] assets Miscellaneous Tt•ansfets Total general revenues and transfers Changes in net assets Net assets beginning of year Net assets end of year The nf~tes to t/ae fincaaacial ,rtateanents ure un integral pearl «f this a~fafc~anent. 28 Net {'E~pense) Reve~me and Changes iu Net Assets Govei7lmental Business-type Activities Activities Total $ {17,234) $ - $ ('17,234) {9,395) - (9,395) {12,749} - {12,749) (59) - {59) {5,800) - {5,800) {3,517) - (3,517) {48,754) - (48,754) - 1,138 1,138 - {295) {295) - 985 985 - {927) {927) - 768 768 - 1,278 1,278 - (154) (154) - 216 216 - 3,009 3,009 (48,754) 3,009 {45,745) 43,400 - 43,400 5,432 - 5,432 734 - 734 701 - 701 3,932 3,279 7,211 - 1,260 1,260 3,509 454 3,963 488 {488) - 58,196 4,505 62,701 9,442 7,514 16,956 120,251 230,106 350,357 $ 129,693 $ 237,620 ~ 367,313 29 CITY OT IOWA CITY, IOWA BALANCl SH)CIT COVI;RNMGNTAL TUNDS June 30, 2008 (amounts expressed in thousands) Special Rey%enue Community Development Other Employee Block Debt Gover77mental General Benefits Grant Service Funds Total Assets Equity in pooled cash and investments $ 17,384 $ 1,593 $ 25 $ 7,638 $ 5,598 $ 32,238 Receivables: Property tax 23,818 8,989 - 1(1,998 34 43,839 Accounts and unbilled usage 125 - - - 16 141 Interest 205 17 - 143 46 41] Notes ]13 - ]0,936 1,934 549 13,532 Advances to other hinds - - 18 228 - 246 Due from other governments 2,716 200 5 - 1,7(12 4,623 lnventories 188 - - - - 188 Restricted assets: Equity in pooled cash and investments 2,(113 - - - 12,724 14,737 Total assets $ 46,562 $ ] (1,799 $ ] 0,984 $ 2[1,941 $ 2(1,669 $ ] 09,955 (continued) 30 CITY OT IOWA CITY, IOWA BALANCl SIIJCI:T (continued) CO~~')GRNA~NTAL TUNDS June 3(1, 2008 (amounts expressed in thousands) Sriecial Revenue Liabilities and Tund Palances Liabilities: Accounts payable Contracts payable Aceriied liabilities Advances from other funds Deferred revenue Liabilities payable from restricted assets: Deposits Total liabilities Fund balances: Reserved far: Inventories Encumbrances Debt service Employee retirement carnmitments Perpetual care Unreserved Undesignated: General fund Special revenue fiords Capital projects funds Total fiord balances Total liabilities and fiord balances Community Development Employee Block Debt General Benefits Grant Service $ 1,429 $ 1 $ 14 $ 1,000 ],719 26,()48 2 8 9,05 ]0,954 ]2,20 Other Gover7rmenta] Funds Total $ 2,282 $ 3,72G ],331 1,33 ] 88 ],704 228 ],947 1,688 59,995 826 - - - 5 831 31,628 9,058 10,976 12,250 5,622 69,534 188 - - - - 188 152 - - - ],366 ],518 - - - 8,691 - 8,G9] - 1,741 - - - ],74] 106 - - - - 106 14,488 - - - - 14,488 - - 8 - 2,563 2,57] - - - - 11,118 11,118 14,934 1,741 8 8,691 15,(147 4(1,421 $ 46,562 $ ]0,799 $ 10,984 $ 20,941 $ 20,669 $ 109,955 T~tH RULE'S rL7 1~tH fITiG1TtE:IL11 StLItE'TT18PtZS L{P'E', LUi ITtIf'KP'Ltl ))LtP'l Uf t~?&,S ,StLtIE',PYIE'TiI. 31 CITY OF IOWA CITP RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 3(}, 2(}()8 (amounts expressed in thousands) Total governmental fund balances $ 40,421 Amounts reported for governmental activities in the statement of net assets are different because: Internal service funds are used by management to charge the casts 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 assets. Prepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. Other long-term assets are not available to pay far current period expenditures and therefore are deferred in the funds: Notes receivable -Earned but unavailable Capital assets used in governmental activities are not current financial resources 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. 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 bands Internal balance due to integration cif internal senlice funds Total net assets of governmental activities T(ie rznte,s to the financial stater7aerxts are an integ~°al part of this ,stater~aent. 19,530 9,417 151,727 (1,859) (82,268) (211) (273) {6,80(}~ $ 129,69; 32 CITY OF IOWA (:ITI', IOWA STATE1bIENT OF REVENUES, EYPENDITURES, AND C".RANGES IN FUND BALANC".ES GOVERNMENTAL FUNDS For the Year Ended June 30, 20i)S (amounts expressed in thousands) Special Revenue Community Revenues Taxes Licenses and permits Intergovernmental Charges for services L"se of money and property Miscellaneous Total revenues Exependitures Current: Public safety Public a-orks Culture and recreation Community and economic development General government Debt service: Principal Interest Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures (7ther Financinn 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, Berinnin~ Fund Balances, Endin; Development Other Emplo~~ee Block Debt Governmental General Benefits Grant Service Funds Total $ 23,608 $ 8,876 $ - $ 9,268 $ 3,083 $ 44,835 1,270 - - - - 1,270 3,795 - 1,623 - 7,346 ]2,764 1,993 195 - - 40 "28 2,413 - - 240 553 3,206 3,346 - 260 100 271 3,977 36,425 9,071 1,883 9,608 11,293 68,280 17,946 259 - - 500 18,705 6,357 - - - 5,751 ]2,108 10,395 - - - 308 ]0,703 994 - 1,596 - 1,847 4,437 6,737 412 - - 58 7,207 - - - 7,323 - 7,323 - - - 3,556 - 3,556 1,749 - 3 - 10,059 ] ],811 44,178 671 1,599 10,879 18,523 75,850 (7,753) 8,400 284 (1,271) (7,230) (7,57(1) - - - - 9,150 9,150 ]11 - - - - 111 - - - - 16 16 8,340 - - 5,673 11,400 25,413 (4,860) (8,208) (245) - (10,015) (23,328} 3,591 (8,'08} (_'45j 5,673 10,551 11,362 (4,162} 192 39 4,402 3,321 3,792 19,096 1,549 (31) 4,289 1 1,726 36,629 $ 14,934 $ 1,741 $ 8 $ 8,691 $ 15,047 $ 40,421 33 rf~ ~r ••1~- 34 ti ~, CITY OF IOWA CITY RECONCILIATION OF THE STATEIVIENT OF REVENUES, EXPENDITURES, AND CHANC=ES IN FUND BALANCES OF C,~OVERNNIENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Euded June 30, 2008 (_amouuts expressed in thousands) Net change in fund balances -total governmental funds $ 3.792 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while gcvernmental activities report depreciation expense to allocate those expenditures csver the life of the asset. Capital outlays and cvntributed capital assets exceeded depreciation expense in the current year as fellows: Expenditures fvr capital assets $ 10,463 Transfers of capital assets (to}\from enterprise funds -net (1,675) Capital assets contributed 444 Depreciation expense (5.511) 3,721 Bond proceeds are reported as other financing sources in governmental funds and thus asntribute to the change in fund balance. In the statement of net assets, 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 assets. Debt issued (9,150) Premiwr~ on bonds issued (lfi) Repayments of debt 7,323 Amcsrtization of premiwrs 16 (1,827) $ecause some revenues will not be collected for several months after the City's year end, they are not considered available revenues and are deferred in the govermnental funds. 2,636 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 wmpensated absences 10 Change in accrued interest on debt 23 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 assets differs from the change in fund balance by the cost of the capital asset sold. (1 18) Prepaid items in the governmental funds have been rea>rded as expenditures when paid. However, the statement of activities will report. these items as expenses in the period that the corresponding net asset is exhausted. (8} 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. 1,213 Change in net assets of governmental activities $ 9,442 Tlrc n.r~te.r to the fincaraciral stcatementr urc Cara integral part of this sfatcn[cnt. 35 CITY OF IOV1~A CITY, IO1~~A STATEMENT l~F NET ASSETS PR(IPRIETARY FUNDS .Tune 30, 200ft (amounts expressed in thousands) Governmemal Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Assets Current assets Equity in pooled cash and investments $ 3,5ft9 $ 3,91 1 $ 12,307 $ 12,351 $ 3,232 $ 2,405 $ 43,345 $ 16,314 Receivables: Accounts and unbilled usage 123 1,310 347 1,336 4 256 3,AR1 3 Interest 54 779 226 21ft 49 35 1,361 143 Notes 170 - - 9 1,333 - 1,562 - Advances to other fwrds - - - 5,974 - - 5,974 - Due from other governments - - 1 42 32 632 707 169 Lrventories - - 364 - - - 364 321 Total current assets 3,941 ] 1,000 14,245 20,430 4,750 3,323 57,694 16,950 Noncurrent assets: Restricted assets: Equity in pooled cash and im~estments 2,161 ]4,332 4,743 1 I,ft96 2,260 1 17 35,509 - Capital assets: Land 6,991 695 6,296 1,732 726 9,430 25,920 45 Buildings 25,036 59,509 23,461 999 5,455 4,304 113,764 331 Improvements other than buildings 166 7,365 2,331 ] 21 9 421 10,4 ] 3 50 Machinery and equipment 393 9,333 10,336 176 ] 15 603 21,51 1 12,776 Infrastructure - ft5,7A5 44,203 IO,A73 - 34,435 175,346 1,006 Accumulated depreciation (12,574) (54,497) (16,352) (3,410) (3,423) (9,964) (105,720) (9,232) Construction in progress - 795 2,936 673 230 6,166 ]0,300 120 Total noncurrent assets 22,173 123,317 77,504 13,060 5,372 45,612 292,543 5,546 Total assets 26, 119 134,317 9 ],749 33,490 10,122 43,940 350,237 22,496 (conunuen) 36 CITY OF IOV1rA CITY, IO1~~A Liabilities Current liabilities: Accounts payable Contracts payable Accrued liabilities Advances from other funds Due to other governments Lrterest payable Bonded debt payable (net of unamortized discounts) Total current liabilities Noncurrent liabilities: Liabilities payable from restricted assets: Deposits Advances from other funds Bonded debt payable (net of unamo~tized discounts) Landfill closurelpostclosure liability Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted by bond ordinance Restricted by state statute Restricted for future improvements Restricted by grant agreement L"nrestricted Total net assets STATEMENT nF NET ASSETS (continued) PRtIPRIETARY FUNDS June 30, 2008 (amounts expressed in thousands) Governmental Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds 38 $ 101 $ 355 $ 225 $ 83 $ 235 $ 1,037 $ 802 - - 24 75 - 450 549 - 131 134 207 216 71 71 830 2,164 - - - - - 1,205 1,205 - - - 22 74 10 - 106 - 298 ],494 620 - - - '',412 - 366 4,206 1,549 - - - 6,121 - 833 5,935 2,777 590 164 1,961 12,260 2,966 6 - 411 11 239 10 677 - 3,05(1 - - - 18 - 3,068 - 9,596 55,763 27,955 - - - 93,314 - - - - 10,098 - - ]0,098 - 12,652 55,763 28,366 10,109 257 10 107,157 - 13,485 61,698 31,143 10,699 421 1,971 1 19,417 2,966 I (1,(155 49,516 45,988 6,164 3,1 12 45,495 160,330 5,546 1,635 12,838 3,665 - - - 18,138 - - - - 700 - - 700 - 222 - - - - - 222 - - - - - ','60 - ',"'60 - 722 10,765 1(],953 20,927 4,329 1,474 49,170 13,984 $ 12,634 $ 73,119 $ 60,606 $ 27,791 $ 9,701 $46,969 230,820 $ 19,530 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 6,80(1 Net assets of business-type activities $ ''37 6''0 77se nnres rn rhe.,flraaraciad .rtarerraerzrs are ati iruE~~rall~arr q/ rhis svarenaertt. 37 rf~ ~r ••1~- 38 ti ~, CITY OT IOWA CITY, IOWA STAT)1bi)JNT OP R1V)1NU);5, );~');NS);5 <LNI) CHAN(i);S IN TUND N)!/T .455)CTS PROPRI);TARI' TLiNI)S Tor the- Year Cnded tune 30. 2008 (amount;; expressed in thousands} Govamrnantal Bu siness-type Activities -Enterprise l: unds Activities - C?ther Internal Wastewater Housing Enterprise Service Parkink Treatment Water Sanitation Authority Cunds Total funds Operating Rcvcnucs: Charges for services $ 4,(173 $ 12,318 $ 8,195 $ 7.853 $ 149 $ 1,(188 $ 34.87(1 $ 15.443 Miscellaneous 84 75 134 79 (i7 15 454 - Total operating revenues 4;757 12;3r}; 8;32t} 7;932 21(1 1,703 35;330 15;443 Operating Uxpenses: Personal services L691 L651 2.1(10 2.212 87l 702 9'87 1.961 Conunoditias 63 (i0(i 1.348 305 14 115 2.451 2.943 Services and charges 70f) 2;324 1;840 3;889 (1;324 537 15,(114 8.744 2.454 4.581 5.348 (1.40(1 7.209 1.354 27.352 13.(118 Depreciation 880 4;181 2.0(15 59(1 180 889 8,791 1.188 Total operating expenses 3,334 8,7(12 7,413 7.002 7.389 2.243 3(1,143 14,836 Operaing income (loss} 1,423 3,(131 91(1 930 {7;173} (540} (813} (107 Nonoperating Rcvcnucs (Expenses}: Gain (loss} on disposal of capital assets - (5} (2} - 17 1.25() 1,2(10 62 Operating grants - - - - 6,281 - 6,281 - Interest income 238 c}~ 931 776 263 127 3.279 726 Interestaxpense ((100} (3;041} (1;42(1} - - - {5;(1(17} - Total nouoperating revenues (expanses} (362} (2,102} (497} 77(1 (i;5(il 1,377 5;753 788 Inainte (loss} before capital contributions and u•ansfers 1.061 L529 419 1.70(1 Capital amtributions Transfers in Tt•ansferx out Change in net assets Net Assets, Beginning 8 607 L003 - (20(1} (69} (820} (145} (612) 837 4,940 1.395 17 2.885 4.520 3 245 450 C>95 228 - (1:749} (2,989} (66} 8ti3 2,0(17 (1(12 1,5(il (350} 2 X423 11,771 71,052 60;1)04 2(1;230 IO;OSI a-'1,54(1 7.166 1.56(1 17;970 NctAssets,Ending $ 12,(134 $73;119 $60;(i0(i $27;791 3; 9,701 $4(1.969 $ 14;530 Adjustment to reflect the consolidation of intenrtl sen ice fund activities related to enterprise funds. 348 Cham~e in net assets of business-type activities ~ 7.514 The ru~tes to the fFnunciu( stuten2ent.s ure urr irrtegrul~urt of this .stutenaent. 39 CITY OF IOWA CITY, iOW.4 Cash Floes From [~rerating Activities Receipts I'ronr customers and users Payments to suppliers Payments to crnployecs Na cash 17ota•s !'runt operating activities Cash Flows Fram Noncapital Financing Activities Grants rcccivcd Translcrs born other Cunds Translers to other limds Rcpaynxnt/(payment) oCnotcs receivable Advances li~orn other funds Advances to other hinds Nct cash I]orvs Crorn noncapital l5nancrna acdvnics Cash Flaws From Capital and Related Finanong Activities Capita] grants rcccivcd Acqursrtion and construction of property and L'CltlrprllL'nl Proceeds from sa]e of property Proceeds lit~m issuance o(1~cfunding debt (principal Icss discrnntt) Principal paid on bonded debt Interest paid on bonded debt Nct cash Ilora's li-orn capital and related Gnancnrg acti vid cs Cash Flows From luvesting Activities Intcre$t Orl rr1VL'SLII1C71LS Nctincreasc (dccrcasc)in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending STATEl41ENT OF CASH FLOW'S PROPRLETARY FUNDS For the Ycar Ended hmc 30.2008 (amounts exprosscd in thousands) Govcnnncntal Bu siness-hype Activities -En terprise Funds Aaivities - Othcr Intcrral Wastce4'atcr FIOUS]ng E71lCrlAlC SCI'V1Ce Parking Trcaancnt Water Sanitation Authority Funds Total Funds $ 4,721 $ 12.467 ~$ 8,472 $ 7.538 $ 20S $ 1,412 $.34,815 $ 15.339 (758) (2,930) (2,977) (3.512) (6,4'21 $ (525) (.17,124) $ (11;272) (1.7072) (1.645) (2,1541 (2.190) (8631 $ 0691) (9.245) $ (1.7821 261 7,892 3.3x1 1,836 (7,080) 196 8,446 2281 - - - - 6.281 - 6.281 - - - - - 245 356 601 228 (206) f38) (756) (14.5) - (1,702) (2.847) (66) - - - 5 (65) - (60) - 3,050 _ _ _ _ 25 3.071 - - - - 13.874) - - 13.874) - 2.844 f38) (756) (4.014) 6.461 (1,321) 3.176 162 (3,119) (44) (1,341) - - 3,335 (3>6) (4aO5j (4,867) (6011 (3.070) (1.429) - l7 1,580 1,597 - (1,320) (454) (1,998) (8.28D) (1,491) - 439 1,610 2,(kS9 78 - - - 3.335 - - - - (4.328) - - - - (5,1fk1) - (4.080) (7,219) (4,306) (1.320) 2 1.192 (15,731) (1.413) 267 672 1,013 970 306 131 3,354 803 1;392 1,307 {708) (2.528) (311) 198 (750) 1.837 4,458 21,936 18?58 27.275 1,853 2.324 80,1(ki 14.477 $ 5.710 $ 23.243 $ 17.150 $ 24.74 7 $ 5.542 $ 2.522 $ 74.354 $ 16.314 (condnucd) 40 CITY OF IOWA CITY,1O\VA STATEn1ENT OF CASH FLOWti (continued} PROPRIETARY FUNI}S For the Ycar Ended Junc 30. 2008 (amounts expressed in thousands) Govcrnrncntal Business-type Activities - Enterprise Funds Activities - Other Internal ~~'astcti~s-atcr Housing Eutcrprisc Scnicc Parl.~ing Treatment Water Sanitation Authori Funds Total Funds Reconciliation of operatvig viarme (loss) to net cash flo~i~s from operating actit~ties Operating income (loss) S 1,423 S 3,631 S 916 S 93() S (7,173) S (54()) S (813) S 6C)7 Adjustments to reconcile operating income (loss} to net cash flops-s trorn operating activi ties: Depreciation expense 880 4,181 2,065 596 180 889 8,791 S 1,188 Changes in: Receivables: Accounts and unbilled usage (34} 73 109 (52O) (3} (16) (391} (3} Duc from other governments - I - 1 16 14 (275) (144) (1 l)1) Inventories - - 29 - - - 29 (42) Accounts payable 5 - 206 134 (78} 127 394 457 Accavcd liabilities (I 1} 6 6 22 8 11 42 179 Duc to other governments - - (24) (33) (6) - (63) - Dcposits (2) - 34 1O {22) - 2C) - Landfill closurcJpostclosurc liability - - - 581 - - 581 - Total adjustments 838 4,261 2,425 906 93 736 9,259 1,678 Nct cash flows tiom operating activities S 2,261 S 7,892 S 3;341 S 1,836 S (7,080) S 196 S 8,446 S 2,285 Noncash Investing, Capital, and F5nxncdng Activities: Contributions of capital assets from govcrnmcnt and others S 8 S 6(l7 S 1,0()3 S - S - S 2,979 S 4,597 3 Contributions of capital assct5 tin govcrnmcnt and others S - S (31) S (64} S - S - S (47) S (142} The notes to the financial statements are an integaal part nf'this statement. 41 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2C?08 (amounts expressed in thousands) Agency Funds Assets Equity in pooled cash and investments $ 21 b Accounts receivable 5 Interest receivable 2 Total assets $ 223 Liabilities Accrued liabilities $ 9 Due to agency 214 Totalliabilitie~s $ 223 The motes tc~ the fincancicrl statements care an integral ~ar•t of this statement. 42 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEII~IENTS June 30, 2008 1. Accounting Policies The City of Iowa City, Iowa, {the City} was incorporated April b, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, a mass transportation system, public safety, streets, parks, and cultural facilities. It also operates an au-port, parking facilities, water treatment, wastewater treatment, stormwater collection, sanitation collection and disposal {includuig landfill operations}, cable television, and a housing authority. The financial statements of the City h generally accepted in the United States Governmental Accounting Standards l establishing governmental acco~inting anc policies of the City are described below. The Reporting Entity ve been prepared in conformity with accounting principles of America (GAAP} as applied to governmental units. The oard (GASB) is the accepted standard-setting body for For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, colnlnissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations far 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 appouiting 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 Assets and the Statement of Activities} report information on all of the nonliduciary activities of the prunary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from fiusiness-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 ea:pc~nse.r are those that are clearly identifiable with a specific f~inction or segment. P1°ngram 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 revenise.s. As a general rule, the effect of interfund 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. 43 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 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 fuiancial 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 City maintains its retards on a modified cash basis of accountuig under which only cash receipts, cash disbursements and encumlirances, investments, and bonded cielit are recorded. These modified cash basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with GAAP. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate acco~mting 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, liabilities, net assets, revenues, and expenditures ar 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, ar other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus." The govermment-wide financial statements and proprietary funds are accounted far on the flaw 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 acco~mting. Under the accrual method, revenues are recorded when earned and expenses are retarded at the time liabilities are inccured. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. 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 he used to pay liabilities of the current period) and measurable (the amount of the transaction can be deterrnineci}. Revenue accrued includes property taxes, intergovernmental revenue, and 'interest earned on investments (if they are collected within b0 days after the year-end}. Expenditiues 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. 44 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 The Employee Benef is 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 tar levy. The Community Development Black Grant Fund accounts far revenue from the U.S. Department of Housing and Urban Development's Community Development Black Grant programs. The Debt Service F7snd accounts for the accumulation of resources for and the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds The Parking Fund is used to account for the operation and maintenance of the "on" and "off' street public parking facilities. The Yi~a.stetivater Treatment Funcl is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Ll'ater Fund is used to account for the operation and maintenance of the water system. The S'anitatinn Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Housing Aarthnrity Farnd is used to account far the operations and activities of the City's law and moderate income housing assistance and public housing programs. Additionally, the City reports internal service funds to account far goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Eyzsipment Maintenance Funa; Central Services Fund Loss Reserve Fisnd, and the Information Technnlc~gy Farncl The City also reports fiduciary fiuncls which are used to account far resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resouuces 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 two fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance. Proprietary funds distinguish operating revenues and expenses from nc~nnperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods ii connection with a proprietary fund's principal ongoing operations. The principal operatiig revenues of the City's enterprise funds and of the City's internal service funds are charges to customers far 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 definition are reported as nonoperating revenues and expenses. When bath restricted and ~u~restricted resources are available for use, it is the government's policy to use restricted resources first, then uiu~estricted resources as they are needed. 45 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to snake estunates and asscunptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements ants the reported amounts of revenue, expenditures and expenses, as appropriate, during the repotting period. Actual results could differ tiom these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of landfill closure and post-closure care costs, total capacity of the landfill at closcu•e, 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 ui an investment pool, except for those funds requu-ecl 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 nom•estricted investments with a matiu•ity 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 Boarcl 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 p~uposes 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 ta<Y receivable has been recorded, the related revenue is deferred in both the govermnent-~vicle and fund financial statements and 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. 46 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 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 General Fund, Water Fund, and the Equipment Maintenance Funcl. Inventories are reported at the lower of cost {first-ul, fu•st-out} or market. The costs of govennnental fund type inventories are recorded as expenditures when purchased. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e. g., roads, bridges, sidewalks, 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 capitalizuig aii asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original pcu•chase cost or at fair 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 15 - 50 years Vehicles 2 - 20 years Other equipment 5 - 30 years Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the govermnental funds, premiums and discounts are recorded entu•ely 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. 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 hued on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City's policy is to fund pension costs as they accrue. 47 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 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 13}. Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an arulual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency fiords. 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 govermnent Debt service Capital outlay Business-type 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 fimction level for all fluids 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 buclgetecl activities within the govennnental fiuxl 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 the individual fund revenue rather than on aggregated fund totals. The City formally adopts budgets for several funds that are not required by state law to be included in the amlual fiulction budget. Annual operatiig 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. These budgets are adopted and amended at the same time and in the same manner as the City's annual function budget. 48 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 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 encl of the preceding fiscal year. b. To permit the appropriation and expenditure of amoiults anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those alnencllnents are shown in the accompanyilig budgetary comparison schedule. The original budget was increased by $31,555,000 in revenues and other financing sources and by $~ 1,775,000 in expenditures and other fmaucing uses. Appropriations as adopted or amended, and not encumbered, lapse at the end of the fiscal year. 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 adapted budget. Restricted Assets Assets withui 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 requu•ements, grant provisions, or other requirements, are classified as restricted assets. Liabilities which are payable from restricted assets, are classified as such. 2. Compliance and Accountability At June 30, 2008 the Capital Project Fund far bridge, street, and traffic control construction reported a deficit fund balance of $1,595,000. The deficit is due to capital expendit~ues. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2009 to cover the capital expenditures. 3. Cash and Pooled Investments The City's deposits in banks at June 30, 2008 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. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS {continued) June 30, 2008 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 joust investment trusts; and warrants or improvement certificates of a drainage district. Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency Investment Trust, which are valued at an amortized cost of $3,000,000 pursuant to Rule 2a-7 under the Investment Company Act of 1940. Interest rate risk. The City's uivestment 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 nat identified as operating funds may be invested in instruments whose maturities do not exceed five years at the tune ofpurchase. 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 i~lvestment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. The aforementioned Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest thei~• available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Cormmission (SEC}. Due to legal and budgetary reasons, the general fiord is assigned a portion of the investment earnuigs associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 50 CITI' OF IOWA C:ITI', IOWA June 30, 2008 4. Interfund Balances and Transfers Interftmd ~ialances for the year ended June 30, 2008, consisted of the follo~vulg: NOTES TO FINANCIAL STATEMENTS (continued) htlvances from f~dvancesto: General Nanmajor governmental Parking Hauling t~uthority Nonmajor enterprise Community Development Debt flock Grant Service Sanitation S - S - 5 1,719,348 - 228,216 - - - 3,6.56,600 14,666 - - - - 1,265,084 Total Total S 1,719,384 228,216 3,656,660 18,006 1,265,048 S 18,600 S 228,216 5 5,974,47E S 6,226,692 Interfund balances at June 30, 2008, include advances due to/li•om other funds. Advances to/from other funds represent amotu~ts for construction loans and land. $1,181,863 of the $1,205,088 advances to the Non-Major Enterprise Funds and $2,450,183 of the $3,050,000 advance to the Parking Fund are not expected to be repaid within the next year. $1,503,545 of the $1,719,388 advances to the General Fund and $218,275 of the $228,21b advance to the Non-Major Governmental Funds are not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to Lie repaid within the next year. 5~ CITY OF IO«'A CITY, IO~~~~ NOTES TO FINANCIAL STATEII~IENTS (continued) June 30, 2008 Interfund transfers for the year ended June 30, 2008, consisted of the following: Transfcr from Transfcr to: Gcncral Dcbt scrvicc Nonmajor govcrnmcntal Housing Authority Nonmajor cntcrprisc Intcrnal Scrvicc Community Employcc Dcvclopmcnt Gcncral Bcnctits Bloclc Grant Nonmaj or Govcrnmcntal Parking $ - $ 7,892,424 $ - 1,445,968 - - 3,704,145 316,297 - - - 245,484 $ 244,004 Total Transfcr to $ 58,344 3,153,545 6,558,884 112,444 - - 244,349 - 37,599 - - - 5,744 $ 4,859,672 $ 8,248,321 $ 245,484 $ 14,415,092 $ 245,744 (continued} In the fund financial statements, total transfers out of $26,383,000 are greater than total transfers in of $2b,337,202 because of the treatment of transfers of capital assets to the governmental activities capital assets. D~u-ing the year, construction in progress related to construction along Highway 6 with a value of $~lb,b72 was transferred to goverlunental activities capital assets from Storrn~vater. No amounts were reported in the governmental funds, as the amounts did not uivolve the transfer of financial resources. However, Stormwater did report a transfer out for the capital resources given. Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fluid that the State statutes or the budget requires to expend them. 52 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 34, 2448 Transfer from Wastewater Nonma•jor Internal Total Treatment Water Sanitation 1Jnteiprise Se1-~~ice Transfer from $ 14,(199 $ 14,(199 $ - $ 1(10,171 $ - $ $,339,897 - - - 1,513,964 - S,fi73,437 - 718,068 7,554 28,573 66,221 11,399,702 - - - - - 245,080 30,653 63,56 ] - - - 450,(1 13 24,085 24,085 137,000 - - 228,473 $ 69,437 $ 820,413 $ 144,554 $ 1,702,708 $ (1(1,221 26,337,202 Transfer to governmental activities capital assets from enterprise fiords 4(1,672 $ 26,383,874 53 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 5. Capital Assets Capital asset activity for the year ended June 30, 2008, Gvas as follows: Governmcnt~jl activities: Acquisitions Disposals Beginning and. and. Balance July 1, 2007 Transfers Transfers Junc 30, 2008 Capital assets, not being dcprcciatcd: Land. $ 14,130,588 $ 1,377,157 $ 26,400 $ 15,481,745 Construction in progress 11,862,687 10,091,869 9,960,419 11,994,137 Total capital assets, not being dcprcciatcd. 25,993;275 11,469,026 9,986,419 27,475,882 Capital assets, being dcprcciatcd.: Buildings improvements other than buildings Machinery and. cquipmcnt lnfrastructm-c Total capital assets being dcprcciatcd. Less accumulated. depreciation tor: Buildings irnprovcments other than buildings Machinery and. cquipmcnt lnfrastructurc Total accumulated. depreciation 56,930,937 1,949,349 64,036 58,816,250 4,873,471 341,520 7,400 5,207,991 33,197,913 4,982,285 2,380,607 35,794,591 88,790,660 1,976,772 53,579 90,713,853 183,792,981 9,249,926 2,505,222 190,537,685 13,761,566 1,466,528 56,536 15,171,558 1,284,074 194,874 7,000 1,471,948 22,642,492 3,003,366 2,265,659 23,380,149 18,717,659 2,034,302 34,918 20,717,043 56,405,791 6,699,070 2,364,113 60,740,748 Total capital assets, being dcprcciatcd, net 127,387,190 2,550,856 141,109 129,796,937 Governmental activities capital assets, net $ 153,380,465 $14,019,882 $10,127,528 $157,272,819 54 CITY OF IO«'A CITY, IO~~~~ NOTES TO FINANCIAL STATEII~IENTS (continued) June 30, 2008 Acquisitions Beginning and. Julv 1, 2x07 Transfers Business-type activitics: Capital assets, not being dcprcciatcd DlsposalS and. Balance Transfers Junc 3x, 24x8 Land. $ 22,58f~,978 $ 3,757,3x2 $ 423,h87 $ 25,92x,593 Construction in progress 7,31(1,421 4,479,869 997,x72 1x,799,218 Total capital assets, not being dcprcciatcd. 29,9x3,399 8,237,171 1,420,759 3h,719,811 Capital assets, being dcprcciatcd: Buildings 118,54x,1x1 237,x51 12,427 118,764,725 Improvements other than buildings 1x,412,335 - - 1x,412,335 Machinery and. cquipmcnt 21,409,896 219,x65 117,576 21,511,385 Infrastructure 172,324,398 3,x21,131 - 175,345,529 Total capital assets being dcprcciatcd. 322,686,730 3,477,247 130,003 326,x33,974 Less accumulated depreciation for Buildings 37,781,455 3,29x,287 9,927 41,x61,815 Improvements other than buildings 2,312,172 433,6x5 - 2,745,777 Machinery and. cquipmcnt 10,042,798 1,237,316 72,650 11,207,464 Infrastructure 46,875,469 3,828,429 - 54,743,898 Total accumulated dcprcciation 97,x11,894 8,789,637 82,577 1x5,718,954 Tota] capital assets, being dcprcciatcd., net 225,674,836 (5,312,39x) 47,426 22a,315,a2x Business-type activitics capital assets, net $ 255,578,235 $ 2,924,781 $ 1,468,185 $257,434,831 Depreciation expense was charged. to functi ons as follows: Governmental activitics: Public safety $ 588,562 Public works 2,746,763 Culture and. recreation 1,827,373 Community and. cconvmic davclopmcnt 38,119 General government 31x,[684 Internal service funds 1,188,173 Tota] dcprcciation expense -governmental a ctivitics $ 6,699,a7x Business-type activitics: Parking $ 879,425 W astcwatcr treatment 4,180,6 82 Water 2,x65,065 Sanitation 595,849 Housing authority 179,812 Nonmajor enterprise 888,804 Total dcprcciation expense -business-type a ctivitics $ 8,789,637 55 CITY OF IO«'A CITY, IO~~~~ NOTES TO FINANCIAL STATEII~IENTS (continued) June 30, 2008 As of Jtme 30, 2008, $1,505,553 in capital assets were idle due to flooding of the Iowa River. These assets will either be repaired or replaced. The City expects to receive funds fi•om Federal Emergency Management Association, the State of Iowa, and ulstuance tv reduce the City's recovery expenses. No impairment loss has been recorded as the City cannot reasonably estimate insurance recoveries and repair and\or replacement cost`s. 6. Bonded and Other Long-term Debt Changes in Long-Term Liabilities Long-term liability activity for the year ended June 30, 2008, was as follows: Due Within July 1, 2007 lssnes Retirements June 3U, 2008 One Year Governmental activities: General obligation bonds $ 8U,35U,fi3U $ 9,150,000 $ 7,323,235 $ 82,177,395 $ 8,333,235 Plus: Unamortized Premium {discoLmt} 9'1,264 '1.5,68'1 15,808 91,'137 15,808 Total general obligation bonds 80,441,894 9,165,(181 7,339,043 82,2(18,532 8,349,043 Note payable 211,000 - - 211,000 - 1;rnployee vested benefits '1,9(14,342 '1,027,938 1,029,990 1,9(12,290 1,049,6(15 $ 82,617,236 $ 10,'193,619 $ 5,369,033 $ 84,441,82.2 $ 9,395,705 Business-type activities: General obligation bonds $ 5,489,370 $ - $ 576,7(15 $ 4,912,605 $ 571,765 Less: Unamortized discounts 30,737 - 3,842 2(1,595 3,542 Total general obligation bonds 5,455,(133 Revenue bonds 1 00,760,000 Less: Unamortized Discounts Tota] revenue bonds Landfill closurclpest-closure >Jmployee vested benefits - 572,923 4,585,710 567,923 - 5,415,000 95,345,000 5,(125,000 5(17,(1(13 - 72,049 795,614 72,049 99,592,337 - 5,342,951 94,549,35(1 5,552,951 9,51(1,(111 581,080 - 10,097,691 - 4(14,030 2.74,149 243,510 494,369 2(15,93(1 $1]5,331,611 $ 555,2.29 $ 6,159,(184 $]]0,027,15(1 $ (1,386,810 A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for lo~v income and disabled housing in the Peninsula Neigh~iorhood. The terms of the loan are 1 %, interest only payments for twenty years with a final balloon payment of $211,000 clue on August 1, 2025. 56 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. General Obligation Bonds Various issues of general obligation bonds totaling $87,090,000 are outstanding as of June 30, 2008. The bonds have interest rates ranging from 2.5% to 5.6% and mature in varying annual amounts ranging from $85,000 to $2,195,000 per issue, with the final matcuities due in the year ending June 30, 2023. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise fluids is used to pay the general long- term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending Governmental Activities Business-ty pe Activities June 30 Principal Interest Principal Interest 2009 8,333,235 3,551,333 571,765 181,493 2010 8,504,538 3,246,243 590,462 161,82{i 2011 8,800,840 2,901,964 604,160 140,850 2012 9,117,143 2,540,242 {i22,857 119,247 2013 8,143,445 2,158,552 b41,555 96,592 2014-2018 32,283,194 5,792,166 1,881,806 152,620 2019-2023 6,995,000 897,513 - - Total S 82,177,395 S 21,088,013 S 4,912,605 S 852,628 Re~~enue Bonds As of June 30, 2008, the following unmatured revenue bond issues are outstanding: Wastewater Parkui~ Treatment Water Original issue amount $ 11,350,000 $ 83,935,000 $ 30,700,000 Interest rates 5.9°io to b.0% 33% to 5.8°io 2.0°io to 5.b% Annual maturities $ 370,000 to $ 315,000 to $ 290,000 to $ 895,000 $ 3,010,000 $ 910,000 Amount outstanding $ 10,035,000 $ 60,475,000 $ 24,835,000 57 CITY OF IO«'A CITY, IOWA NOTES TO FINANCIAL STATEMENTS {continued) June 30, 2008 Revenue bond debt service requirements to mat~u•ity are as follows: Fiscal Year Ending JLUie 30 Business-type Activities Principal Interest 2009 2010 2011 2012 2013 2014-2018 20'19-2023 2024-202.8 5,625,000 5,875,000 6,195,000 6,505,000 6,640,000 27,390,000 29,185,000 7,930,000 4,668,765 4,413,216 4,139,939 3,851,052 3,548,244 13,650,896 5,834,673 593,413 95,345,000 $ 40,700,248 The revenue bond ordinances required that wastewater treatment, parking system, and water revenues be set aside uito separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount {a} Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve {b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fluid equals: Parking Revenue and Water Revenue bonds -maximum debt service clue 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 bands, $5,000 per month until the reserve balance equals or exceeds $300,000 for Parking Revenue bonds and $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. 58 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2008, are comprised of the following issues: Date of General Obligation Bonds: Multi-Purpose Apr. 1998 Multi-Purpose Mar. 1999 Multi-Purpose Jul. 24110 Multi-Purpose Jun. 2001 Multi-Purpose and. Library Construction May 2002 Rcfundcd. Multi-Purpose { 1) Oct. 2002 Multi-Purpose Nov. 2003 Taxable-Urban Renewal Mar. 2004 Multi-Purpose Mar. 2005 Multi-Purpose Jun. 2006 Multi-Purpose Jun. 2006 Rcfundcd. Water Construction (2) Scp. 2006 Multi-Purpose May 2007 Multi-Purpose Junc 2008 Total CJCncral Obligation B onds Date of ISSUC Rct~enuc Bonds: Pari<ing Bonds Dcc. 1999 Wastewater Treatment Bonds Mar. 1996 Wastewater Treatment Bonds May 1997 Wastewater Treatment Bonds Jan. 1999 Wastewater Treatment Bonds oet. zaaa Wastewater Treatment Bonds Dcc. 2001 Rcfundcd. Wastewater Treatment Bonds {3 } Water Bonds Water BC)nds Water Bonds Total Rcvcnuc Bonds Amount Issued. $ 8,500,000 9,aoo,ao0 14,310,000 11,5oo,ao0 29,100,000 1 a,600,aac~ 5,570,000 7,305,000 7,azo,aaa 6,265,000 l,aaa,aao Interest 4.35 - 4.75 4.125 -4.75 5.a - s.s 4.a - 4.9 3.5 - 5.0 z.s - 4.a 2.5 - 3.6 4.0 - 5.4 3.0 - 4.0 3.625 - 4.0 5s-s.6 3,350,400 3.6 - 3.75 8,870,000 3.75 9,150,400 3.25 - 3.75 Amount Interest Issued. Rates $ 11,350,400 5.875 -6.0 18,300,000 5.0 - 5.75 10,600,000 5.15 - 5.5 7,000,000 4.25 - 4.875 12,000,000 5.125 - 5.5 10,250,000 4.5 - 5.0 Final Outstanding Maturity Junc 30, 2[108 6113 $ 2,750,000 6118 4,750,000 6/18 9,580,000 6116 6,785,000 6/21 18, 83 5,400 Ens z,825,aoa 6/14 3,300,000 6,123 6,990,000 6/15 5,175,000 6116 5,250,000 6116 85a,aaa 6/17 2,725,000 6117 8,125,040 6/18 9,150,000 $ 87,090,000 Final Outstanding Maturity Junc 34, 2008 7124 $ 10,035,000 7121 13,300,040 7122 7,950,000 7,119 4,875,000 7;'25 9,915,000 7120 1 {1,2~1I,11UU Apr. 2[102 25,785,004 3.25 - 4.1 7/12 May 1999 9,200,000 4.75 - 5.0 7124 Dee. 2c)c)o 13,aao,aao 5.a - 5.625 7izs Oct. 20U2 8,500,000 2.0 - 4.65 7122 14,185,Ot10 7,335,000 1c,,645,000 6,855,ODU 95,345,000 $ 182,435,000 59 CITY OF IO«'A CITY, IO~~~~ NOTES TO FINANCIAL STATEII~IENTS (continued) June 30, 2008 {1} This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. {2} This bond issue has the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. Also, this bond issue refunds the November 1997 Water Construction General Obligation Bonds. (3) This band issue refunds the January 1993 Wastewater Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Facility Refunding Revenue Bands 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 uiterest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlyuig 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 lionds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2008, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $40,522,172. Debt Legal Compliance Legal Debt Margin: As of June 30, 2008, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property $ 3,888,746,352 Utilities b5,034,635 Total valuation $ 3,953,780,987 Debt limit, 5% of total assessed valuation $ 197,689,049 Debt applicable to debt limit: General obligation bonds 87,090,000 Legal debt margin 110.599,049 60 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 7. Risk Management The City is exposed to various risks of loss related to torts; theft af, 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. D~u•ing the year ended June 30, 2008 the City purchased property, liability, and workers' compensation insurance under the program that provides far a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $400,000 self-insured retention on workers' compensation losses. The liability insurance provides coverage far clams in excess of the aforementioned self=insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. The operating funds pay aiuiual premiums to the Lass Reserve Fund. Accumulated monies in the Lass Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. Settled claims have not exceeded this commercial coverage in any of the past ten fiscal years. 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 ciurent-year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance includes a claims liability at June 30, 2008 based on the requirements of GASB Statement Na. 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 far the years ended June 30, 2008 and 2007 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal LiabilitL Estimates Pavments Year-End 200b - 2007 $ 1,439,000 $ 233,000 $ 435,000 $ 1,237,000 2007 - 2008 1,237,000 876,000 813,000 1,300,000 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 $100,000 per employee with an aggregate stop-loss of $b,873,011. The operating funds are charged premiuums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical casts incurred, plus a claims processing fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2008 and 2007 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Pavments Year-End 2006 - 2007 $ 445,000 $ b,484,000 $ b,340,000 $ 589,000 2007 - 2008 589,000 5,901,000 5,802,000 b88,000 61 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 8. Contractual Commitments and Contingencies The total outstanding contractual cormnitments as of June 30, 2008 are as follows: Fund Project Amount Bridge, Street and Traffic Paving and bridge construction, $ 5,409, 385 Control Construction engineering desi~ni and consulting Other Constillction Public Works construction, CultLU•e & Recreation constitilction, and fire station construction 2,537,216 Water Water main construction 33,475 Sanitation Landfill consulting 346,151 Airport Runway extension consulting, wading and paving 442,708 Cable TV Refranchisiig consulting 44,290 $ 8,813,225 9. 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 clams against the City, not covered by various inscuance policies, would not materially affect the financial condition of the City. The City leas the authority to levy additional taxes (outside the regular limit} to cover uninsured judgments against the City. 62 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 10. Pension and Retirement Systems 117unicipal Fire and Police Retirement System of Iowa The City is a participating employer in the Miuiicipal Fire acid Police Reti•ement System of Iowa {MFPRSI or the Plan}, which is acost-sharing multiple-employer defined benefit public police and fire employees retiement system. All fire fighters and police officers appointed under civil service participate in the Plan. The Plan provides retirement, disability, and death benefits that are established under state statute. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to M~uiicipal Fire alxl Police Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 502bb or the report may be obtained from ~vebsite www.mfprsi.org ~mder the publications link. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to bb°io of the member's average final compensation. Additionally, members retiring with more than 22 years of service will receive an additianal 2% of the member's average final compensation for up to 8 years of additional service. Other benefits are also calculated at varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by state statute. For the fiscal year ended June 30, 2008, members contributed 9.35%. The City's contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, the total then beiig divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the plan may further reduce the City's contribution rate. However, the City's contribution rate may not be less than 17% of earnable compensation. The City was required to contribute 25.48% of earnable compensation of each member ii 2008, 27.75% of earnable compensation in 2007, and 28.21 % of earnable compensation in 2006. The contributions paid by the City for the years ended June 30, 200b, 2007, and 2008, were $1,925,332, $1,954,182, and $1,910,454 respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System {IPERS}, which is acost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa 5030b-9117. All employees, except temporary employees of six months or less of employment duration, who do not participate in any other public retirement system in the state are eligible and must participate in IPERS. The pension plan provides retirement and death benefits that are established by state statute. Generally, a member may retire at the age of b5, or any time after age 62 and 20 years or more of service, or when age plus years of service equals or exceeds 88, and receive uru•educed {for age} benefits. Members may also retire at the age of 55 or mare at reduced benefits. Benefits vest after four years of service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest three years of covered ~i-ages times years of service divided by 30. 63 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Plan members are required to contribute 3.90% of their annual covered salary and the City is required to contribute b.05% of annual covered payroll. Contribution requirements are established by state statute. The City's contributions to IPERS for the years ended June 30, 2006, 2007, and 2008, were $1,329,784, $1,384,110, and $1,_534,552 respectively, and were equal to the required contributions for each year. 11. Post-Employment Benefits All full-time employees who retire or terminate/resign are offered the following post-employment benefit options: Health insurance and dental insurance -The option of continuing with the City's health ins~u•auce plan at the uidividual's expense. Life ins~uance -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 convertug 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 awn expense, are included within the City's overall insurance package. Therefore, a portion of the above coverage is being subsidized by the City and its current employees. However, the City cannot reasonably estimate the amount of this subsidy and it is being expensed as incurred by the City. 12. Municipal Utility Systems Water System The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, alxl Public Information/Education. There are a total of 32.75 {FTE} employees who work i1i the Water Division. This division serves 67,062 people and has over 25,000 customer service connections. The average daily use for 2008 was 5.48 million gallons per day (MGD}. A peak flow of 10.6 MGD was experienced dw•ing the summer of 1989. Water Sources: The primary source of water for the City is the alluvial collector wells along the Iowa River. Four collector wells can provide approximately 11.0 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide LO MGD; a sand pit that can provide 3.0 MGD; a river intake that can provide 3.0 MGD; for a total of approxmately 20 MGD maximum capacity. Water Treatment Processes: The facilities include one treatment plant (constructed in 2003} located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening (coagulation/flocculation/sedimentation), and granular activated charcoal filtration processes with fluoridation and free chlorination. The grade four water facility employs operators that perform over 200 water quality tests per day in-house and collect samples far testigng at the University Hygienic Laboratory. This testing ensures that the water meets all of the Safe Drinking Water Act Standards. 64 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Distribution System: The water flows through approximately 284 miles of water mains and includes over 2.5,000 service connections. The distribution piping consists of cast iron, ductile and PVS main that ranges in size from 2" to 30". The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations} that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,100 hydrants located throughout the community. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and cicrbside recycling. Under present City policy and City orduiances, utility bills are clue when received but contain a delinquency date which provides 17 days for payment. If payment is not made in full within 22 clays, a notice is mailed whieli allows 25 calendar clays before service is disconnected. The City's bad debt write-offs have been less than 0.5% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2007. Water Service Charge Milimums (includes up to the first 100 cubic feet (c.f.}} Meter Size Meter Size Inches Charge Inches Charge 5/8" $6.41 2" $22.14 3/4" 7.00 3" 40.91 1" 8.26 4" 71.37 1 1 /2" 16.47 6" 143.61 Monthly Usage it excess of 100 cubic feet {c.f.} 101 - 3,000 $2.99 per 100 c.f. 3,001 and over $2.15 per 100 c.f. Silgle Purpose Meter Charges First 100 (c.1) Minimum Monthly Charge Usage in excess of 100 cubic feet (c.£} $2.99 per 100 c.f. Changes in water rates over the last ten fiscal years. 1999 15°~0 2000 10% 2001 0°ia 2002 0% 2.003 - 5% 2004 - 5% 2005 0`;'0 2006 0°ia 2007 - 5% 2008 0% 65 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 34, 2448 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 34, 2448, 2447, and 2446. WATER SYSTEM STATEMENT OF REVENUES, EhPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands} 20x5 2007 2a06 Operating Revenues: Charges far services S 8,195 S 8,240 5 9,Q12 Miscellaneous 134 51 165 Total operating revenues 8,329 8,291 9, l77 Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating income Nonaperating Revenues (Expenses): (Lass) on disposal of capital assets Interest income Interest expense Total nonoperating revenues (expenses) Income before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net asset Net Assets, Beginning Net Assets, Ending 2,160 2,091 2,024 1,348 1,463 1,908 1,840 1,842 1,765 5,348 5,356 5,697 2,065 2,024 1,955 7,413 7,350 7,682 916 911 1,495 (2) - (2.5) 931 929 741 ~~ (1,549) ~~ (497) (62(1) (591) 419 291 6(34 314 545 606 689 3,645 - (820) (237) (467) 602 3,944 743 64,004 56,460 55,317 S 64,606 S 6d,Ot34 S 56,064 66 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. W ATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended Jame 30, 2008 (amounts expressed in thous~ds) FY09 Actlaal Budget Percentage Bud-get Charges for services $ 8,310 $ 8,678 95.76°/a $ 8,425 Interest Income 1,013 614 164.98% 1,025 Miscellaneous 129 89 144.94% 49 Total Receipts 9,452 9,381 100.76% 9,499 Personal sen~ices Commodities Services and charges Capital Outlay Transfer to Capital Project Funds Operating Subsidy Debt Sersrice Payments Total Disbursements Sewer System 2,298 ?,242 (02.SU% 2,371 549 640 85.78% 768 1,816 2,214 82.02°,/a 2,_539 1,819 3,115 58.39% 3,507 1,917 3,844 49.87°,/0 3,071 15 I S 10U.0U% 17 2,981 2,981 10U.0U" 4. 2,959 $ 11,395 $ 15,051 75.71% $ 15,232 The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300 miles of sanitary sewers, 14 lift stations, and 2 treatment plants. The North Plant was constructed in 1935 and the South Plant vas completed in 1990 and upgraded in 2002. The connectuig of the North and South Plants was completed in 1998. The City has the capaliility to divert treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system is at two-thirds of the design capacity. Both plants are in compliance with federal clean water standards. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycluig. Under present City policy and City orduiances, utility bills are due when received but contain a delinquency date which provides 1_S days for payment. If payment is not made in full within 22 clays, a notice is mailed which allows 25 calendar clays before service is disconnected. The City's bad debt write-offs have been less than 0.5% of gross revenues for the past three years. 67 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Rates The followuig rates and charges were effective July 1, 2007. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.}} $7.76 Monthly Usage in excess of 100 cubic feet (c.£) $3.80 A rate increase of 5% was approved by the City Council and the following rates and charges went into effect July 1, 2008. Sewer Service Charge Minimum {includes up to the first 100 cubic feet (c.£)) $8.15 Monthly Usage ul excess of 100 cubic feet (c.f.) $3.99 Changes i1i sewer rates over the last ten fiscal years. 1999 0% 2000 20°ia 2001 ~% 2002 5°la 2003 0°/a 2004 0~/0 2005 0°/a 2006 0% 2.007 8°/a 2008 0°,'0 68 CITI' OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Fuiancial Information: The following table surnrnarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2008, 2007, and 2006. SEWER SYSTEM STATENIENT OF REVENUES, EYPENSES AND CIIANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Comtnodities Seances and charges Depreciati«IL Total operating expenses Operating income (loss} Nonoperating Revenues (Expenses}: Gain (loss} on disposal of capital assets Operating grants Interest income Interest expense Total nonoperating revenues (expenses) lncorne before capital contributions and transfers C'apttal COnh'IbnhOI75 Transfers in Trtnsfers out Change in net assets Net Assets, Beginning Net Assets, Ending 2UU8 2UU7 2UUfi $ 12,318 $ 12,535 $ 12,145 75 53 4U 12,393 12,588 '12,'185 1,(i5 ] 1,497 1,Sfi5 fi0fi 554 533 2,324 2•'185 2,1(12 4,581 4,236 4,26U 4,181 4,209 4,U37 8,762 8,445 8,297 3,(131 4,143 3,888 (5} - 1 17 - 944 1,119 - 596 (3,04 ] } (3,213) (3,375) {2,102} (2,093) (2,762} 1,529 2,050 1,126 577 1,539 773 3U 928 60 {fig} (97} {222} 2,067 4,42U 1,737 71,U52 fi6,fi32 64,895 $ 73,'1'19 $ 71,052 $ 66,632 69 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 The following table surmnarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2008 and the budget for the fiscal yeas ended June 30, 2009 on a cash basis. SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Endcd Junc 30, 2008 (amounts cxpresscd in thousands} FY09 Actual Budget Percentage Budget. Charges for services $ 12,512 $ 12,866 97.25% $ 13,575 hlterest income 672 490 137.14% 915 Miscellaneous 89 5 1780.00° o - Total Receipts 13,273 13,361 99.34",% 14,490 Personal services $ 1,646 $ 1,786 92.16°% $ 1,802 Coirunoclities 497 508 97.83°-0 473 Services acid charges 2,328 2,434 95.65% 2,375 LapitalOutlay 172 762 22.57% 1,218 Transfer to Capital Project Funds 54 460 11.74° 0 1,316 Operatuig SuUsicly 15 15 100.00°% 17 Debt Sei~~ice Payments 7,247 7,247 100.00% 7,251 Total Disbursements $ 11,959 $ 13,212 90.52".~0 $ 14,452 13. Landfill Closure and Post-closure Care Costs In August 1993, the GASB issued Statement No. 18, Accounting.fnr Municipal Snlid Waste Landfill Clo,s7.~re and Past-clo,r7zre Care Costs {the Statement). Under these rules, in addition to operating expenses related to ccu•rent 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 closcu•e and post-closure care costs is based on the amount of the landfill used during the year. The estunated liability for landfill closure and post-closure care costs as of June 30, 2008, is approximately $10,097,690, which is based on 78.5% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,685,300 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, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2008, was determined by engineers from Howard R. Green Company and approximated $12,863,300. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, anti maintain the landfill were acquired as of June 30, 2008. These amounts are biased on an estimated post- closure care anti monitoring period of 30 years, consistent with current State Department of Natural 70 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes ui 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, 2008, the Sanitation Fund had $11,184,101 in related equity in pooled cash and investments, at fair value designated for satisfaction ofpost-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 casts, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements {due to changes in technology or more rigorous envu•onmental regulations, for example} may need to be covered by charges to future landfill users as well as City taxpayers. 14. Subsequent events On October 15, 2008 the City of Iowa City received and a4varded capital loan notes far General Obligation Refunding Capital Loan Notes, Series 2008B in the amount of $17,005,000. The notes were issued to current refund on October 15, 2008, $2,750,000 of the City's outstanding General Obligation Bonds, Series 1998, dated April 1, 1998, $4,750,000 of the City's outstanding General Obligation Bonds, Series 1999, dated March 15, 1999, and $9,580,000 of the City's outstanding General Obligation Bonds, Series 2000, dated July 1, 2000, for a total of $17,080,000. Also, on October 15, 2008 the City of Iowa City received and awarded capital loan notes for Sewer Revenue Refunding Capital Loan Notes, Series 2008C in the amount of $24,280,000. The notes were issued to current ref~md on October 15, 2008, $12,650,000 of the City's outstanding Sewer Revenue Bonds, Series 1996, dated March 15, 1996, $7,600,000 of the City's outstanding Sewer Revenue Bonds, Series 1997, dated June 1, 1997, and $4,560,000 of the City's outstanding Sewer Revenue Bands, Series 1999, dated February 1, 1999, for a total of $24,810,000. In addition, on October 15, 2008 the City of Iowa City received and awarded capital loan notes for Water Revenue Refunding Capital Loan Notes, Series 2008D in the amount of $7,115,000. The notes were issued to current refund on October 15, 2008, $7,045,000 of the City's outstanding Water Revenue Bonds, Series 1999, dated May 1, 1999. 15. New Governmental Accounting Standards Board (GASB} Standards The Govermmental Accounting Standards Board (GASB} has issued seven statements not yet implemented by the City. The statements, which might impact the City are as follows: Statement No. 45, ~ccnunting and Financial Reporting ley E~nplr~yers for Pc~stemplnyn~ent Benefits Other than Pensions issued Jcuie 2004, will be effective for the City for the fiscal year enduig Jane 30, 2009. This statement establishes standards for the measurement, recognition, and display of (OPEB) expense/expenditcu-es and related liabilities {assets}, note disclosures and, if applicable, required supplementary information {RSI} in the financial reports of state and local governmental employers. 71 CITI' OF IOWA C:ITI', IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Statement No. 47, Accounting for Termination Benefits issued June 2005, establishes accounting standards for termination benefits. Far termination benefits provided through an existing defined benefit OPEB plan, the provisions of this Statement should be implemented simultaneously with the requirements of Statement 45. Statement No. 49, Accounting and Financial Reporting ,for Pollution Rezrzediation Obligations issued November 200b, will be effective for the fiscal year ending Jame 30, 2009. This statement establishes standards for accounting and financial reporting for obligations to address the current or potential detrimental effects of existuig pollution. Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued Jame 2007, will be effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 52, Land and Other Real Estate Held as Investnserzts by Endotivrnents, issued November 2007, swill be effective for the fiscal year ending Jcuie 30, 2009. This statement establishes consistent standards for the reporting of land and other real estate held as investments by essentially similar entities. Statement No. 53, Accoztinting and Financial Reporting for Derivative Instruments, issued June 2008, will be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local goveriunents. The City's management has not yet determined the effect these statements will have on the City's financial statements. 72 • r r ~' 7 ,~~ 1 73 _4 CITY OF IO«%A CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL -ALL GOtiERNNIENTAL FUNDS AND ENTERPRISE FUNDS BUDGETARY BASIS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2008 (dollar amounts expressed nl thousands) Governmental Fund Types Enterprise Fund 1lctual Budgetary Types 1lctual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: i'roperty Tax 5 39,838 S - S 39,838 Tax increment financing taxes 3,050 - 3,050 Other city taxes 1,499 - 1,499 Licenses and permits 1,287 - 1,285 Intergovernmental 14,763 7,830 22,593 Charges for services 4,435 32,821 37,256 Use of money and property 2,536 3,674 6,210 Miscellaneous 2,471 1,905 4,376 Total revenues fi9,877 46,230 116, l07 Exile nd itu reslEx pen se s: Public safety 18,026 - 18,026 Public works 11,830 - 11,830 Culture and recreation ld,_546 - 10,546 Community and economic development 5,322 - 5,322 General government 7, l44 - 7,144 Debt service l 1,656 - 11,656 Capital outlay 12,762 - 12,762 Business-type - 45,707 45,707 Total expenditureslexpenses 77,286 45,707 122,993 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 ('7,409) 523 (6,8861 12,999 (1,689) 11,31 Cl 5,590 (1,166) 4,424 See Nate to Required Supplementary Information. 74 Budgeted 11nu~unts Final to hctLial Variance - Positive Original Final (Negative) 5 39,974 S 39,974 S (136) 1,798 2,b21 429 1,446 1,51 S (19) 1,260 1,325 (40) 21,657 33,131 (10,538) 37,721 37,79.4 (_539) 3,939 4,399 1,81 L 4,567 4,054 322 112,362 124,817 (8,710) 17,504 18,634 608 11,135 13,027 1,197 10,647 1 1,341 795 6,041 6,636 1,314 7,892 7,71)0 556 11,718 11,718 62 14,252 32,937 20,175 45,878 55,750 10,043 125,067 157,743 34,750 (12,705) (32,92E,) 26,040 10,973 10,973 337 (1,732) (21,953) 26,377 97,790 121,035 96,058 99,082 75 CITY OF IOVtjA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2008 {dollar amounts expressed in thousands) Governmental Fund Types 1lccnaal Modified slccrual Budget Basis 1ldjustments Basis Revenues S 69,477 S (1,597) S 68,240 Expenditures 77,246 (1,436} 75,850 Net (7,409) (I fi 1) (7,570) Other financing sources (uses) 12,999 (1,637) 11,362 Beginning Fund Balances 5 41,630 5 (5,001) 5 36,629 Ending Fund Balances S 47,220 S (6,799) S 40,421 Enterprise Fund Types 1lccnaal hccrual Budget Basis 1ldjustments Basis Revenues S 46,234 S (40) S 46,150 Expenditures 45,707 (4,497) 41,210 Net 523 4,417 4,940 Other financing sources (uses) (1,649) 3,915 2,226 Beginning Fund Balances 79,405 5 144,249 223,fi54 Ending Fund Balances S 74,239 S 152,541 S 230,420 See Note to Required Supplementary Information. 76 City of Ia~va City, Iarra Note to Required Supplementary Information -Budgetary Reporting For the Year Ended June 34, 2448 In accordance with Cade 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 cash basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procediu•es. Formal and legal budgetary cantt•ol is based upon nine major classes of expendit~u•es 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. Durulb the year, budget amendments increased budgeted expenditures by $32,676,000. The budget amendments were primarily due to changes in Breadth and tiinnig of capital improvement projects. 77 • r r ~' 7 ,~~ 1 78 _4 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: 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. Economic Development Fund -accounts for revenue anti expenditures of economic development activities. Johnson County Council of Governments Fund -accounts for the financial activities of the metropolitan/rural cooperative plaruiing organization. CAPITAL PROJECTS FUNDS 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: 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. 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, aild contributions. 79 CITY OF IOWA CITY COMBINING BALANCIi SHGIiT NONMAJOR CO~~IIRNMIJNTAL TUNDS June 3(), 2008 (atnounts expressed in thousands) Special Revenue Capital Projects Bridge, Other Johnson Street, and Shared County Traffic Revenue and Economic Council of Control Other Grants Development Cmvernments Construction Construction Total Assets Equity in pooled cash and investments $ 1,970 $ 308 $ 49 $ 1,029 $ 2,242 $ 5,598 keceivables: Property tax - 34 - - - 34 Accounts and unbilled usage - - - ] 1 5 16 Interest - 30 - - 16 46 Notes 549 - - - - 549 Due from other governments 503 - 4 ] 1,0 ] 2 ] 46 1,702 Restricted assets: Equity in pooled cash and im~estments 5 12,719 12,724 Total assets $ 3,027 $ 372 $ 90 $ 2,052 $ 15, ] 28 $ 20,669 Liabilities and Fund Ealances Liabilities: Accounts payable $ 68 $ - $ 3 $ 1,986 $ 225 $ 2,282 Contracts payable - - - 635 696 1,331 Accrued liabilities 49 - 17 14 8 88 Advances from other funds 228 - - - - 228 Deferred revenue 556 - - 1,012 120 1,688 Liabilities payable from restricted assets: Deposits 5 - - - - 5 Total liabilities 906 - 20 3,647 1,049 5,622 Fund balances: Reserved for: Encumbrances - - - - 1,366 1,366 Cnreserved tindesignated 2,121 372 70 (1,595) 12,713 13,681 Total fund balances 2,121 372 70 (1,595) 14,079 15,047 Total liabilities and fund balances $ 3,027 $ 372 $ 90 $ 2,052 $ 15, ] 28 $ 20,669 80 C'ITI' OF IOti'VA CITZ', IOWA COMBINING STATEIt1ENT OF REVENUES, EXPENDITURES, AND CIL~NGES IN FUND BALANCES NON1~~1A,]OR GOVERNI~~IENTAL FUNDS For the Year Ended June 30, 2008 {amounts expressed in thousands) Revenues Property taxes Intergovernmental Charges for services tine 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 Financin{;Sources (Uses) Issuance of bonds Premium on issuance of bonds Transfers in Transfers out Total other financing sources and (uses) Net change in fund balances Fund Balances, Be; inning Fund Balances, Ending Special Revenue Capital Projects fridge, Other Johnson Street, and Shared County Traffic Revenue and Economic Council of Control Other Grants Development Governments Construction Construction Total $ - $ 3,083 $ - $ - $ - $ 3,083 5,490 - 283 1,367 206 7,346 40 - - - - 40 57 118 - - 378 553 90 - 34 12 135 271 5,677 3,201 317 1,379 719 11,293 4,688 ]71 ],(19> 577 - X00 500 999 64 5,751 - 308 308 - 4 1,847 - 58 58 235 - 3 6,19] 3,63(1 )0,(159 5,094 1,095 580 7,190 4,564 18,523 583 2,106 0263) (5,81 ]) (3,845) (7,'_301 - - - - 9,10 9,150 - - - - 16 16 457 - 260 7,01 ~ 3,668 11,400 (1,]89) (2,788) - - (6,038) (10,015) (732) (2,788) 260 7,0 ] 5 6,796 10,51 (149) (682} (3} 1,2(14 2,951 3,321 2,270 ],(154 73 (2,799) 11,128 11,726 $ 2,12] $ 372 $ 70 $ {1,595) $ 14,079 $ 1,047 81 rf~ ~r ••1~- 82 ti ~, NONMAJOR ENTERPRISE FUNDS Enterprise Funds account for operations and activities of the City that are financed anti operated in a manner similar to a private busuiess 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. Stormwater Fund -accounts for the operation and maintenance of the stormwater operation. Cable Television Fund -accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. 83 CITY OF IOWA CITY, IOWA COMBININCT STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, ZOQ8 {amounts expressed in thousands} Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments $ 90 $ 1,224 $ 1,091 $ 2,405 Keceivables: Accounts and unbilled usage 4 fib 184 256 Interest 13 10 12 35 Due from other governments 632 - - fi32. Total current assets 739 1,302 1,287 3,328 Noncurrent assets: Restricted assets: Equity in povled cash and investments 10 - 107 1 17 Capital assets: Land 7,324 2,15Ei - 9,480 Buildings 3,563 - 741 4,304 Improvements other than buildings 421 - - 421 Machinery and equipment 282 232 89 fi03 Infrastructure 2,233 32;252 - 34,485 Accumulated depreciation (3,356) (6,363) (245) (9.964} Construction in progress 4,516 L650 - fi, l66 Tcrtal ncmcun•ent assets 14,493 29.927 642 45,612 Total assets 15.732 31,229 1,474 48,940 Liabilities Current liabilities Accounts payable 79 48 108 235 Contracts payable 450 - - 450 Accrued liabilities 10 7 54 71 Advances from other funds I SOS - - 1,205 Total current liabilities 1,744 55 162 1,961 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 10 - - 10 Tcrtal ncmcun•ent liabilities 10 - - 10 Total liabilities 1.754 55 162 1,971 Net Assets Invested in capital assets, net of related debt 14.983 29,927 585 45,495 Unrestricted (1,005) 1,247 1,232. 1,474 Tcrtal net assets ~ 13,978 $ 31,174 $ 1,817 $ 46,9£;9 84 CITY OF IQWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Ye~u- Ended Tune 3C?, 2005 {amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services xnd charges Depreciatic7n Tcrtal operating expenses Open°ating inanne (k>ss) Nonaperating Revenues (Expenses): Gain on disposal of capital assets Interest income Total nonoperating revenues (expenses) Income (k>ssj before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets, Beginning Net Assets, Ending Gable Airport Stcrrmwater Television Total $ 258 $ 616 $ 814 $ I,f>88 14 - 1 15 272 C> I (i 815 1.703 102 145 455 702 9 93 13 115 277 1 Ci3 97 537 388 401 565 1,354 181 C~71 37 889 SCi9 1,072 Ci02 2,243 (297} (45Ei) 213 (540} 1,250 - - 1,250 24 49 54 127 1.274 49 54 1,377 977 (407} 267 837 1,580 1,305 - 2,885 35(i 94 - 450 (1,521) (75) (153) (1,749) 1,392 917 1 14 2,423 12,586 30,257 1,703 44,546 $ 13,978 $ 31,174 ~ 1,817' 46.9Ci9 85 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONNIAJOR ENTERPRISE FUNDS Far the Ye~u• Ended June 30, 2(}08 {amounts expressed in thousands) Cash Flows From Operating Activities Receipts from custvmers and users Payments to suppliers Payments to employees Net cash flows frc7m operating activities Cash Flows From Noncapita] Financing Activities Transfers from vther funds Transfers to other funds Advances from other funds Net cash flows frc7m noncapital financing activities Cable Airpcn~t Stormwater Television Total $ (7} $ 615 $ 804 $ 1,412 (303) (212) (ID) (525) (102} (144) 0445) (691) (412} 259 349 196 35fi - - 356 (1,521) (28} (153) (1,702) 25 - - 25 (1,140) ('2S} (153) (1,321) Cash Flows From Capital and Related Financing Activities Capital grants received 1,580 - - 1,580 Acquisition and construction of property and equipment (1,959} (29) (ID) (1,998) Proceeds from sale of property I ,C~ I0 - - 1,610 Net cash flows from capital and related financing activities Cash Flows Frnm Investing Activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows 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 from other goverm~~ents Accounts payable Accrued liabilities Total adjustments Net cash flows from operating activities 1,231 (29} (10) 1,192 23 53 55 131 (298) 255 241 198 398 9Ci9 957 2,324 $ 100 ~ I X24 ~ 1,198 ~ 2,522 (297) $ (45Ci) $ 213 $ (540) 181 671 37 889 (4) (1) (I l) (lCi) (275} - - (275) (17) 44 I00 127 - 1 10 11 (115) 715 136 736 $ (412) $ 259 $ 349 $ 19Ci Noncash Investing, Capital, and Financing Activities: Contributions c>f capital assets from government and others 1.580 ~ 1,399 ~ - $ 2.979 Contributions of capital assets to government and others $ - $ (47) $ - $ (47) 86 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, paper supplies, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund -accounts for the property, liability, Workers' Compensation and health iisurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund - acco~urts for the accumulation and allocation of costs associated with telecommunications and data processiig, including the operation and replacement of equipment. 87 CITY OF IQWA CITY CCIMBINING STATEMENT QF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2008 {amounts expressed in thousands) Equipment Central Loss Maintenance Services Resen~e Assets Current assets: Equity in pooled cash and investments Receivables: Accounts and unbilled usage Interest Due from other governments Inventories Total current assets Nonairrent assets: Capital assets: Land Buildings Improvements other than buildings Mad~inery and equipment Infi-astructw-e Accumulated depreciation Construction in progress Total noncurrent assets Total assets Liabilities Accounts payable Accrued liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Information Tec-Imology Total 5,791 $ 556 $ 7,346 $ 2,621 $ 16,314 3 - - - 3 48 5 67 23 143 1 fig - - - 1 Ci9 321 - - - 321 Ci,332 Sfil 7,413 2,644 16,950 45 - - - 45 578 - - 253 831 50 - - - 50 11,000 241 8 1,527 12,776 - - - I ,OOCi I ,OOCi (7,692) { 17 I) (I) (I ,4181 (9,282) 120 - - - 120 4,101 70 7 I ,3Ci8 5,546 10.433 631 7,420 4,012 22.496 466 Ci I2C> 2O4 802 85 2 1,995 82 2,1 C~4 551 8 2, 121 286 2,96Ci 4,101 70 7 I ,3Ci8 5,546 5,781 553 5,292 2,358 13,984 $ 9,882 $ 623 $ 5,299 $ 3,726 $ 19,530 88 CITY OF IOWA CITY, IOWA C0117BINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2005 {~tmaunts expressed in thousands) Eduipment Central Loss Informati~»~ Maintenance Services Reserve Technology Total Operating Revenues Charges ft>r services ~ 4,890 y; 304 ~ 8,581 $ 1,6C>8 $ 15,443 Total operating revenues 4,890 304 8,581 1,6Ci8 15,443 Operating Expenses: Personal services 803 3fi 166 956 1.9Ci1 Commodities 2,485 15 35 408 2,943 Services and charges 386 198 7,713 447 8,744 3,674 249 7,914 1,R 11 13,648 Depreciation 1,009 15 1 1 Ci3 I ,188 Total operating expenses 4,683 2Cxl 7,915 1,974 14,83Ci Operating income {loss) 207 40 Eifi6 {30Ci) 607 Nonaperating Revenues {Expenses): Gain {loss) on disposal of capital assets (I) - - fi3 62 Interest income 2.47 24 317 138 72Ci Total nonoperating revenues {expenses) 24fi 24 317 201 788 Income {loss) before capital contributions and transfers 453 64 983 {105) 1,395 Capital contributions - - 3 - 3 Transfers in 180 - - 48 228 Transfers out - - {fib) - {Cifi) Change in net assets 633 64 920 {57) 1,5Ci0 Net Assets, Beginning 9,249 559 4,379 3,783 17,970 Net Assets, Ending $ 9,882 $ 623 $ 5,299 $ 3,72Ei `'~ 19,530 89 CITY OF IOWA CITY, IOWA COMBINING STATEMENT pF CASH FLAWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2008 (.amounts expressed in thousands) Equiprncnt Central Loss Information 7~4aintcnanec Scniccs Rcscrvc Technology Total Cash Flows From Operating Activities Receipts tiom customers and users S 4,786 S 304 S 8,581 S 1,668 S 1;339 Payments to suppliers (2,566} (220) (7,829) (657) (I 1,272) Payments to employees (794) (36) {4) (948) (1,782) Nct cash flows fiiom operating activitics 1,426 48 748 63 2,285 Cash Flows From Noncapital F5nancing Activities Transfers from other funds Operating transfers to other funds Nct cash floss-s from noncapit<~l financing activitics Cash Flosvs From Capital and Related Financing Activities Acquisition and construction of property and equipment Proceeds from sale of'propcrty Nct cash flows ti~om capital and related financing actis•7tics Cash Flaws From Investing Activities Interest on inecstmaits Nct increase in cash and cash equivalents Cash and Cash Equivalents, Be~~nwig Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating ae~tisities: Operating u~comc (loss) Adjustments to reconcile operating income (loss) to act cash flows fiiom operating activitics: Depreciation cxpaisc Changes in: Receivables: Accounts and unbillcd usage Duc from other governmcnt<s Invcntoiics Accounts payable Accrued liabilities Total adjustmcnt<s Nct cash flows firom operating activitics 180 - - 48 228 - - (66} - (66) 180 - (66} 48 162 (1,207) - (5) (279) (1,491) IS - - 63 78 (1,192} - (5) (216) (1,413) 274 26 348 l55 8()3 688 74 1,025 50 1,837 5,103 482 6,321 2,571 14,477 S 5,791 S 556 S 7,346 S 2,621 S 16;314 S 207 S 4() S 666 S (3()6) S 607 I ,009 15 1 163 1, 188 (101) - - - (101) (42) - - - (42) 347 {7) (81) 198 457 9 - 162 8 179 1,219 8 82 369 1,678 S 1,426 S 48 S 748 S 63 S 2.285 Noncasli Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others S - S - S 3 S - S 3 90 A~ENC~ FUNDS The Agency Funds account 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 funds in this category are: Project Green Fund -accounts for donations that are received to plant and develop yards and lawns, bath public and private, within Iowa City. Library Foundation -accounts for donations that are made to support the library development office. 91 CITY OT IO~'VA CITY STATLM)/NT OT CHANC]JS IN ASSETS AND LLAIiILITI>CS ACI;NCY TUNDS For the Year Ended June 30, 2008 (amounts expressed in thousands) Balance Balance July 1, 2007 Increases Decreases June 30, 2t)08 Project Careen Assets Equity in pooled cash and im~estments $ ] 97 $ 73 $ 58 $ 212 interest receivable 3 2 3 2 Total assets $ 200 $ 75 $ hl $ 214 Liabilities Accounts payable $ 2 $ - $ 2 $ - Due to agency 198 75 59 2l4 Total liabilities $ 200 $ 75 $ C1 $ 214 Library Towidatinn Assets Equity in pooled cash and investments $ 1 $ 9 $ C $ 4 Accounts receivable 5 - - 5 $ f $ 9 $ 6 $ 9 Liabilities Accrued liabilities C 9 ~ 9 Total liabilities $ C $ 9 $ ~ $ 9 Total Agency Tunds Assets Equity in pooled cash and investments $ 198 $ 82 $ 64 $ 21C Accounts receivable 5 - - 5 lnterest receivable 3 2 3 2 Total assets $ 20C $ 84 $ C7 $ 223 Liabilities Accounts payable $ 2 $ - $ 2 $ - Accrued liabilities (i 9 ~ 9 Due to agency l98 75 59 214 Total liabilities $ 206 $ 84 $ 67 $ 223 92 Statistical Section This pact of the City of Iowa City's comprehensive annual financial report represents detailed information as a context for understancluig what the information in the financial statements, note disclosures, anti required supplementary information says about the government's overall financial health. Contents Page Financial Trends 95 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 100 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 109 These schedules present information to help the reader assess the affordability of the goveriunent's ciurent levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 120 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 122 These schedules contain service and infrastructcu•e data to help the reader understand how the information in the government's financial report relates to the services the government provides anti the activities it performs. Sources: Unless otherwise notea; the information in these schedules is derived fr•orts the cons~~rehensive annual financial re~x~rt for the relevant year. ~'he city ins~~lensented G<4SB 34 in FY~3; schedules ~~resentinggovernnsent-wide infhrrtsation include infi~rmation beginning in that year. 93 • r r ~' 7 ,~~ 1 94 _4 E"~ U O .~ DTI U E"y w :~+ h W C/] U1 H w M ~--~ C~ M 0 0 0 O M ~--~ O~ M N ~ N d~ M N [ ~ N ~n ~^. O~ pC [ [`~- N ~^ M M O~ ~L O G ~--~ M O CC N N N 4'7 rt [~ ~ ~ ~ M h rJ-3 6R ~}3 Ef} rt3 N oc d" ~ ^~ ~ CT O d' ~ M v1 O O --~ G? 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G ~ ~~~ ~ ^J '~ /: r ~ y y ~ T ~ ri j :3 x: r r s r ~ ~ ~ ~ ~ ~ .~ ^^-~ y „ y :. ~ y ~ ~ ~ - ~ y y C p _ s b4 r ~ `~ ~ -~ .. r~~~~ 5D 54 4 54 y y ~ 3 y~ y y y r~ y 9 y ,r. ~ ~ ~ r y e y y ~' ~ y ~" 50 'a-~4 5A 5D 54 h4 54 54 ~4 74 54 r4 H H y ~ y r7' H y C ~rT. .~_.' :~- 5U ~ J ~ y y ~ r: ~ r . ~ y C T '~_' cam. ~ w .~ ~ ~ ~ ~ ~ ~ ~ a '• E % > ~ ~ y ..-. ~ c_ y ..~ n ~ ~ ,,'y, ~ c a ~, z y .- o -3 ~ ~ ~ ~ ~ ~ x 7 ~ _ y y C. CG v W ~ V y ~ . , ~ ~ F y v 0.1 y ? v H .. y G O y y v v: v F- ~ v 0.1 Z v a1 U 97 ~i E"~ U J Q w H .., U C/1 Q .J w H w Z, W y Ua w (, Qy 4 w d- x M O C~ C~ ,--. x x d- ~ ' C~ ' -~ `, ~ v~ -~ -t , O d- ~. ~vj x hl .--. ,r o ,~ r.i N ~A fR Y~ rt3 V:+ N ~ OTC ~ V.. G~~ M ~+. ~ v'~ O CT N r+i a ~i T ~ rt M [~ rt O x N 't? Cf} 6F1 vR O *-~ N~ N M N [~ vi N U N N O~ M ~, v~ ~ _ . v~ t . . d~ C . . x O ~ ~ ~ N ~ M ~. O ~ .~ N y a=r 69 a=r c!3 r U u' N ~ [~ x [~ hl M O w ~ N x O~ 4^ hl ~ M, ~ M v'^ oc O N `^ 0 Vi N M `. ~ ['~ 0 ~ ,--~ .~ N ~ 69 ~3 69 64 ~ ~ U ~C ~ ~ [`- O Ch N x U C7 ~ G M M CT V l M ~ C ['- x x ~ x aj ~ ,~ -~ :. '~ C T . M ~ O ~ ~ ,--~ ~--~ ~ ' M N ~ ~ . N ,U_', ~ ~ ~cFi 6R EH cA ~ ~ k ~., ~ V ~ U~~ N O M ~ ~ ~ ~ cG ~ ~ ~ Y ~ M p O G . ~. _ ~. V^ ~t . ~. x p M. ,~ ~x O. CC.i O N ~ .~ ~ ~ . ~} 69 ;f} c!] ~; r'~ U, ~ v ~ ~ ~ ~ ~ ~+ ti ^p ~ A p p ~ ~ O .~ W ~ ~ O sN- ~ "~ 4.a N ~ CJJ i..i ~ 'O ~ ~ 'O 'O ~ S'" ~ w 'o ~ °' bA ~ ~ ~ bA ~ ~ ~ ~ `~ a ~G ~ ~ dt ,~ ~ N ~ ~ ~ ~ 98 ^I V u i '/' ~" V Y, c rt oc `. n c v-, r M n n M ~c '- c c c '- ~c M op N N o Mn~cNCn r cc cMC Nv;'-'n n v„- ^ ,-N ~c rn c 0~ N n N N C N n^ n d' N M '/ i o".. oC ~, ~Y M M n ~ d-' ~-' [V' lV' C~1' KI' pC' OC' nl ~ C' ST ~ [~' t~ M .-.' 'r" [`^' 6~' ^ v ('rl ,-. ~rj' ^ C ~ ^ ~ ,^ ~-- .-^ ,^ n N N ,-~ C N P bP f? bP f? b° bP P 'r, .t 'r, M oC oC M N rl '- 'r, ~' C ~ C oG ~ C C ' ' ' rl ~- J; o C C Y N [~ 'F N ~-- ~ Jr K~ C~ C N C n n '+', ~-- OC n C O+ ~t ~.t .Y M oC ~t ~Y ~Y N d' ~^ n c1' C ~ v; oC d' v; n ^ ~C ~ n ri' ,_ cam' iti m ri' n u c~i' c c.i' h ~c' m m ri v_;' x' ,_ c' p ~ ,- p ~ ~-- ~ ,-^ ~^ ,- ,^ n N N .^ N bP bP b° b° b° b° bP P ^- ~ C n M '~C L. C~ '- N OC C C o!; [n C ~t ~ O+ ' Q~ ' n C C ~ o f- n ~C N C n v,, 'n N O~ f- CS v; ~, .^ v; ur C N N ~ ~ Jr n N N N N ~-- O!; M ~-- L: '!", C ~Y ~-- N C N ~-- ~C 4', ci V', ~ ~' C ~Y'~ N N ~Y~ M V'~i C C Sh ~C .C. f~1 'r~, N 6+ n ^~ n C M +- Jv '- ~-- ~- ^- n N~ N ^ C rl 7 b° .? Ef: .? Ef: Ff: .? b° cd '= n Y u '- ~Y '- ~t '- 7 t~] 'r, N G~ ~C O+ M 6~'~ C ~C ^- M ' ~C n L+ C o G=„ n 'r, Wit' '-' '/'i N V, C a'~ x n ~C ~t n M C ~' N C ~t n M .- M C Jr N v,. M M ~-- N ~C ~C '- M N M '~C O: ^ oC C ~t N n N N ~C N ~' ~C '-~ v,,~ M~ ^~ ~t~ N ~t 6~ O~ ~C~ ~C a M M M C n 'r, v';- oG N N C M f- ~C ~-^ ,- n ^ N 50 bP t? bP ti° bP bP t? ti° C j. C ~ C r O r oC ^ oC C N n ~C 'r, ~ N ~C C t^1 ~C 'r, N ~ v; ~ ' C' ' ~Y M ~^ 'r, o U M ~C V', ST C n n N V', T OC Y n M ~C ~-- M n OC ~--~ M N OC OC :J p 'r; M C N C M 'r, C^ M ~t C ~^ M C n ^ OC M ~ '~ n^ Q~ w a r ~ w ~ ~ ~ ~ w x ~ " ~ ~cM ~rnoc c, 'r,c~'-'r,n NM'r,n ~ c mv~,N c^r ~c N e s y r ~c `.rnncv, t ^~t ~c oc err o~~t a~ c o~ nv; a~ c cc c~c~^-~cc v-, M ----cnoc ~`; car c ~c ~r--v-, oc N r a N ~ ~ ^ N ~Y~ C`I~ M M~ ~C~ oG M 'l,~ t7'~ M C [`~ ~T~ C~ ~C~ '1', ~~ ~' Q+ O C M ,- ~ .- N ~C •-- t^1 ^ v f: t}? b? t}? H: b? t}? y? 'J. OJ f N ~ ~ J, f' c, v > '~ v x ~ o ~ r v s a s ~ v a ..~ :_' - ' ,; v ~ o ~ ~ - '' N N ~sJ., J L ~ i. 'J N a s ~J ~ ~ N J N o3 ~ 'r s ~ N .~~ ~ '~ h4 +3 ~ ~ J ..~ ~ N N ~ T .~ ^J ~ ~ N cr3~ +'- „~ yam. C J :~ N ,~' ~ ~ "_ s P' 7 J C ~ ~ N 'D ~, N ~ ~ ~ ~ ~ N N G. O >A ~ N O . ~ `w 74 ~. C Y ^J ~ ~ N ~ 'J~D j X '^J ~'` p ~ X `.~ N `JO ~ ~~., C t ti ~ +'L- y 1 C. ~ v r~ T = o s x N ~ ~ 4: y ~ y :J ,) ~ ~ ~ .-.. f C. :J ^J N J N ~ C ^J N :J .jy.. E c c N s s y °-' ~ r1 ~ U .'J ~ ~ C.i ~ F U Ci Ci O ~ ~, C.J ~ .~ '~ cii ~ G+. ~ H F ~ o ~ x N c GC W C Q 99 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 Year Property Tax Road Use Tax Hotel/Motel Tax Total 1999 $ 22,153 $ 4,575 $ 570 $ 27,298 2000 24,271 4,928 554 29,753 2001 27,071 4,852 497 32,420 2002 28,623 5,077 646 34,346 2003 31,966 5,103 559 37,628 2004 34,958 5,311 580 40,849 2005 36,076 5,269 611 41,956 2006 38,336 5,303 674 44,313 2007 42,221 5,305 683 48,209 2008 44,101 5,432 734 50,2(17 100 CITY OF IO«%A CITY, IO~~t%A ASSESSED AND TAI~iABLE VALUE OF PROPERTY' Last Ten Fiscal Years (amounts expressed in thousands} Fiscal Taxable Property Total Taxable Total Year Ended Assessed Value/ Exempt Assessed Direct June 30 Estimated Actual Value' Property ValueZ Value Tax Rate 1999 $ 2,597,827 $ 128,115 $ 2,469,712 13.133 2000 2,699,944 136,493 2,563,451 13.851 2001 2,920,580 137,713 2,782,867 14.757 2002 2,975,254 152,991 2,822,263 14.850 2003 3,214,473 155,407 3,059,566 16.813 2004 3,322,001 176,188 3,145,813 17.596 2005 3,834,435 181,186 3,(153,249 17.314 2006 3,953,781 183,799 3,769,982 17.729 2007 4,280,834 212,203 4,068,631 17.302 2008 4,3 86,219 215,955 4,170,264 17.297 Sources: 'Johnson County Abstract Assessment ZCity of Iowa City Assessor's Office -Annual Report Notes: Property is reassessed in the add numbered years to make adjustments to all property values, according to crrnent market values. As per the Code of Iowa, all real and tangible personal property subject to taxation shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value, and the value sa assessed shall be taken and considered as the assessed value and taxable value of the property upon which the le`y shall be made. Taxable property includes real property, buildings and structures, industrial plant and fixtures, commercial equipment assessed as real property, agriculture, residentail on agricuitw•e and utilities distribution property. Exempt property includes all property that is owned by religious and educational institutions, charitable and benevolent societies, low-rent housing and associations for war veterans. Each must apply for property tax exempt status with the City Assessor, who determines if the property qualifies under state guidelines. Exempt. property is assessed each year like other taxable property. Property o«ned by governmental entities is not taxable and is not irlchided in "Exempt Property°. 101 '~ 'a ~ [~ N v~ N ~ ~t O ,--~ M O x d- in [~ t~ ~ N t~ N O ~n v'~ M v~ N N ~ M x ctf +' y Oy ~ ail ~ ~ M N M c7 M N M ~ M [~ M n M x M x M x M Q i ~ ~ ~ ~ ~ ~ ',-r p 61 ~ i O O O O O J O O J O O O O O O ^J O 'J O 'J O O O 'J } I i o il r t- M ~ t~ ~C ~+ x ~ N ~ri .~ ~ n c °c, ~°c, ~ ~ ~ ~ x x ~ ~ nr O~ ~ ~' ~ ~ ~ ~ ~ a+ ~ U O O O O o O O Ci O O v, U ~" :G J Cx., :J F"" U y ~l L" 0 .~ :~ '~ ;.l tI: U O 'J' b4 L v'~ ~C M O O v'~ V~ N N ~ ~ ~ ~ x ~ N x x v, .c x V ~ N ~ .~-i ~ N N N M M M ~ 'n U r a .~ ~ ~+ C~ ['~ +~ N N ~C ~n M ~t ~t O O ~C O ~C O+ ,--~ N ~ ~ i" ~ O ^7 ~ E" +~ ,~ n ~ p L ~ ~ ~ :: ~ x ~ O M N ~ a N -t a N ~ d- ~ ~ ~ a M d' d- c- x M x ~ M O ~ Q v'~ C~ v~ N ~C O O M *-~ ~C ~n ~C O ~ N v: x N C ~ ~ ,~ ,~ ,~ N c~i ri ri ri ri :C L L a O +--~ N M d' tir'~ ~ (~ x vl a o o a o a a a o a ~,y ,+ ~ N N N N N N N N N v s. y O ~ ~ 102 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash hasis of accountuig) {ainounLs expressed in thousands) Percent of Collection Total Tax Current Tax Levy Delinquent Tax Year Levied Collections Collected Collections 1999 $ 21,735 $ 21,842 100.5 $ 22 $ 2000 23,945 23,989 100.2 5 2001 26,089 25,684 98.4 31 2002- 27,920 28,423 101.8 5 2003 31,975 31,863 99.6 16 2004 34,073 34,009 99.8 23 2005 34,403 34,814 101.2 15 2006 36,460 36,654 100.5 44 2007 39,094 38,947 99.6 13 2008 39,973 39,768 49.5 70 Source: Certificate of City Taxes and Joluison County Treasurer's office Total Tax Collections 21,864 23,994 25,715 28,428 31,879 34,032 34,829 36,698 38,960 39,838 Total as a Percent of Le~~, 100.6 100.2 98.6 101.8 99.7 99.9 101.2 100.7 99.7 99.7 103 `~ 0 O~ vS ~ [,- v; fit' M O t~ ~ ~ ~.C O l~ ~C 'C' M M ffl M M N OC o y y --+ 0 0 0 0 0 0 0 0 0 ~ F'" ~ CS cn. cn c ~ ~ ~ x O ~ -, N M ~ ~n ~c ~ oc a~ ° o ~, y a~ M o ~.c N o -, -, ~n oc ov o ~r v-~ ~~ N N M o ~c o a~ o~ ~ ~ ~ ~r oe ~ ~~ ~ ~ ~ :~ `~ F 69 ~ 0 0 ~C ~C oC l~ C' O O O oC ~ N N o-; ~ ~ L a:,' oC ~C v'~ C7 O O O~ oc ~n v~ q; +~~ O 0 0 0 0 0 0 0 0 0 0 0 0 ac o y ~ r.+ O y ~ e "'~ "`. Q x O~ ~ ^ `.C ~ M l~ oC ~ ~ ~ N ~n O ~ ~n O ~--~ OC ~ N ~ ~ ~ [~ ~ M ~/1 i C] r .Q +=+ oc ~ .--~ .--~ 'O M ~ O N N :S~ ~ ~ ~ ~ ~ ~f' ~ N N N N ~ O Q G ~ ~ ~ ~ U F^ ~ ~I yl ~ ~ UQ~ °O E^ b cis sU. bA n.l Q,+ ftl ?C ~ U ~ ~ y V ~ ~ ~ Lam' c3 G. ..a 4+ L j ~ ~ ~ ~ ca U ~ ~ ~, U C •~ ~ ~ ~ ~ O ~ Y ~ > ~ ~ ~ o °~ ~ U ~ o U E_" ~ H N ~ ~ v ~ a b1? ~ ~ ~ ~ .~ o ~ ~ 2 ~ .~ a a .~ ~ r~ A~ o ~~ o o~ o Q ~ ~ ~ ~ ~ ~ ~ Q ~ ~ Q r` 0 0 U N -~ i Sn ~ U y O ~ U ~ N'" U n ? ~ ~. F U O c3 ~ O ~. O ~ U ~ O cr; y U ~ ~ sy. U ~ ^...1' a`~S ~ Q ~ ~ Q O -~ ~ ~' ~ ~ U U p a~ ~ ~ ~D ~ y ~ E"" G ~ r ~ ~ ~ ~ ~ ~ ~ ,~ a~ ~ ~ U U r .~ ~ ~~ r 0 O ~ ~ ~ ~ ~ O ~ ~ c' ~ N CI, y ~ H., ca ~ Q, y ~ p tr ~" o ~ zs ~ i (_, w N C.!] N ~ v: ~ U .y, ~ ~ 1. ~ dl 104 0 0 6~ M '.'}' N O d' d' OC d' ~ ~ ~ O ~ O~ N ~T OC OC OC V.. ~fl V. ~F ~a .,.. ~~ o 0 o c o 0 0 0 ~r a~ U L G,1 >~ y .~ H .., V O .~ w Q ~I U O bJ} r ~. z N O O N ~I ~ ~ N M d' ~ ~C [~ CC O~ ~ ~ ~ ~ ~i ~ CT ~T O ef' N ~ d' Vt OC M M .T <--~ O ~ ~ ~ - O N O M l~ rT •r eC do N [ G OC N O [~~ M V1 ~ ~ ~n Cn ~ M~ O~ N~ OC~ ~}"~ OC '.t ~ M ~` C~ ~ ~ ~ V1 d' M M ~G U `~ b r 0~ d- ~ ~~ n~ M rt~ ~Nn N ~ M N O O~ O ;~ O Z ~~ 0 0 0 Gi 61 4a a a ~I a ~n `^ C`~ an r~ ~r ~ ~ U~ OM N ~ ~ CST ~ d a ~ ~ Vl l M Vl ~fl ~ M Cl^ ~t a~ O Gl' O~ [~ M ~T M Cn ~ ~ G .C L d' M N ~ ~ N N~ M N ~ N -~ [~ 69 EH z U Q Y Y N N ~ ~ Q. y ~ i..i Li CG N ~J =a ~ ~ ~ o n~ v ~ ~ ~ '~ cG ~ ~'+ N ~ ~ U ~ ~ ~ O ~ Q 0~ as ~ ~'~~, ~ ~ ~ ~ c ': ~ ~ a, U } ~ ~ r v N ~~ ~ ~ ~ O v ~ ~" A 105 CITY OF IOWA CITY, IOtiVA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Fiscal ZVater Sales Year Cubic Feet Sold 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Water System Cliar~es N/A N/A 261,072,632 8,414,310 245,725,154 8,837,339 253,409,874 9,049,700 257,788,030 9,308,824 253,44,012 8,850,608 254,560,234 8,315,719 267,107,998 8,844,993 261,072,632 8,414,310 249,361,929 7,976,536 Sources: City of Iowa City Revenue Department Notes: N/A Not available 106 0 0 ~ i t 0 in N M ~ rJO+ O~ ~ ~ ~ u~'i ~ ~ '~C O~~ *-~ O .d 0 0 0 6 O N C *--~ M V s. v 0. x G ~r XI ~ ,--~ N M ~ ~r'i ~G [~ x O~ ~ ~ ~ O ~ ~ ~ -~ M O N ~ O, , ~ ~ N h ~ ~ d^ M '~ M ~ M d^ ~ N ~ [~ O '~ ~ ~ ---' p ~ ~ M ,--~ ~ x [ [~ N ~--~ ~ ,--~ ~ O ^ N ~ ~ hl vR *--~ M N 64 -~ Ff} ~1 E~ .~ U ~C 5 O w -~'~ H ...~ O v i" .~ z v ~' v P C p: a~ a o 0 0 o o a 0 0 0 c u~ ~ ~ r- ~ ~ L^. r ~n rt T ~ +.+ v1 ~ --~ O O O O O O d ~ ~ N M W V a T ~I ~ ~ N M v'~ ~ [~ O ~ LC ~ x Q~ ~ G~ ~ O C+ O ' ~ M ' N x ~- ' N ~ v~ x O~ [~ ~_ N ['~ N_ y ~ O V; ~ O ^ ~r7 ~, ~ O ~ ~ C`~ ~^ d- LC x v'i ~ G a~.~ v9 E!3 ~ Y ~L1~ . ~~-I O Y .C+~ U ,UF.+' ~ ~ N N ~ ~ Y Si aJ yy Q~ N ~ ~ cG d~j' ~ ~ ~ N [3 .V. ~ y ~ ~ ,~ ~ ~ y v. Q ~ 5 N ~+ ~ CG N ~ ~ ~ cc ~ /YN~ ~' ~O Y a~ ~ ~ ~ > ~J ° ~ ~ nn q `~ ~ ~ ~ ~ ~ 3 U 3 ,~ ~ ~ ~ 3 0 0 ~ ~ ~., ~ 3w o ~° .~ ~ ~ o ~ ~~ ~ ~ ~ ~ w ~ ~ ~ ~ ~ ~ ~ w `4 ~ ~ ~ ~ a` ~ rr~~ U; ~i U ~ ~-+ N a" O}.i ~ cc+ l~ ~ 'tr 'G m' v: '-~ U] ~ '+-~ c'~V r1.~ ~ ~- ++ 107 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Year Cubic Feet Sold 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sewer System Cliar2es N/A N/A 315,199,203 11,084,369 299,381,463 11,111,313 292,323,306 11,31,949 297,084,229 12,015,122 294,683,685 12,482,393 297,714,953 12,557,646 302,925,357 12,373,762 315,199,203 11,084,369 285,492,596 12,221,769 Sources: City of Iowa City Revenue Department Notes: N/A Not available 108 ,-~ ~ [~ M a ,-~ ~C l N O ~ CL N N N M M M ri M N N , ~ U ~ ~ a N a ~C ~t v~ *~ v~ N ['~ ~ C, a ~ s .r o, o .,~ o a a a a a ~ a o a a o 0 0 o a o 0 o a o ~ a a a a a a ~ o 0 ~ ~ ^ ~r, vi a a o vi o v, ci vi D ~ ~ ~ ~ x ~ _ M ~ N ~ ~ ~ ~ .~ '~ N ~ ~ N ~ ~ a a x x 0. r i N N N ~ ,~ +--~ ,~ ,~ ,~ ,~ +--~ 'J ~ O O O O O O O O O O r ~ •~ 'J• •~• ~ ^r a ['~ 'd' ~ M a 1i ~ :J '~ S1 L'i a M N ~ M r a r- M ~~. i d x a ~ O ~ O V'1 O kl ~, u ~ pa [~ x ~ ,-~ d' N .-~ ,~ O r-, O ,-, a ~ :.l ~ ~ '~ "~ ~ i [~ ~ ~ ' x ,--~ O ^ N ~ O v i ^ r g ~ [~ [~ v 1 7 M J N ~ [~ J u _ ~ ~ U' ~ y c '~ ,-- M ~c ~ ~c ,--~ ~c x v, ~ ~- ~ ~- x ~ a x N ~ ~ ~ b~A ~ x ~ x O M ~.C N x d' a ~ {uj" L ~ ~ ~ ~ ~ ~ a x ~ art ~ ~ ~ ~ ~ ~ I O O vi .~ a 7R-. M ~C u U '-" ~ ~ ~ M a M N a o a ~n o to ~ ~ N N ~ ~n ~c o r- ~n M a ai p o Mn M ~C ~+ ~C M ~ ~ M L i, c ~ M o M ~c [~ a x a ~ d- ~ Vl ~ x 'J ~n [~ ~ ~ u c ~I ~ + ~ -~ ~ L C bA ~ N M C r C M O + M ~ { ~ N N ~ ~ ~ ~ ~ x x C ~ [~ f/-i L 'Q n u I a a O O O O O O O O O ~y ~^ + -~ N N N N N N N N N O :J Y .j ~+ :~! 4. .y O Y O S". J 109 r~` O ~I 0 ..i ~1 H U M rJ+ ~- M O M ~ M v'i C~ c~ x O~ Vl x O O ~ M `^ P~ m ~ ~ ~r ~ o O cv O ~ °' U A ~ ~ ~ a ° ° ° ° ° ° ° ° ° o ~ a a o a o O O a o a O ~ ~ CC CT oc N O N CT oc [~ ~ Q O x O ~ O ~ ~ y ~ N ~ ~ ~ S C C •~ ~ ~ ~i ~ Q H rl ~ ~ M ~fl ~ M ~ ~ x ~ N '~C W G ~ ~ r~ ~ ~ ~ A Q+ N N N N ~ ~ v1 ~ rt O ~ d;~ . 1 i [~ V.. [` t_ [` ~ 4 ~ ~ fJ ~~ ~ ~ W ' ~3 ~ o 4 ~ M ~ ~ ~ ~ a ~ N a ~ ~ ~ ~ . . . . . . rl h ~ ~ . ~ ~ ~ M N ~ x r V ~ ~ ~ _ ~ ~ ~ ~ W ~ w ,~ A ~ ~' ~ ~ Ff3 .~ Q C y H ~ ~ N M N om CC T G Cl~ M O ~ v1 N U~ r O~ M_ `y +I G G 6 ~ O C t - O C O Cn d;, CT ~ ~ ~ ~:+ o A O ~ ~, v, o ~ ~, O O v, O O O `t O W ~ --~ . . ~ . N . O . O . N ~ d . o c ~ O . ff!! e J ~ O TJ ~ ~ '~ x x x x x x x ~Wr ef~ (~ TJ Q ~ ~ a ~ ~i [~ x rt ~ O ~ ~ N M ~ O V'i ~ ~ [~ '~ oMC ~ N y , U tub . . ~. . ~. . . . . . ' ~ ~ rl rj+ ~ p~ `^ rJ+ ~ O' hl N M M x ~ Q^ x N x M ~ n ^ M M ' y > N N N N M M d' d ~ Q 5g u ~ ~ °o o a o a o o a a "~/~, GTr I ~ ~ O O N O O O O O O v c O s r N v ~; 3 Y ~"' ~ O ~ .~ Y Q O ~ ~ ~ ~ ~ ~~ 110 CITI' OF IOWA CITI', IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITLIRES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURESi Last Ten Fiscal Years (amounts expressed in thousands) Fiscal 1`ear Ended une 30 1999 2000 2001 20()2 20032 20()4 2()05 2006 2()07 2008 Principal $ 2,452 $ 2,918 3,541 3,_599 4,742 5,172 9,349 6,099 6,7()0 7,323 Interest 1,038 $ 1,360 1,763 2,136 Total Debt Service 3,490 $ 4,278 5,304 5,735 Total General Governmental Expenditures and Transfers 4.5, 851 52,727 53,898 53,4b2 Ratio of Debt Service to General Expenditures .08:1.0(} .08:1.00 .10:1.0(} .11:1.00 3,683 8,425 82,()01 .10 : l .00 3,336 8,5()8 83,445 .1(} : 1.00 3,676 13,025 88,342 .15 : l .00 3,458 9,557 93,360 .10: 1.00 3,464 ] 0,164 93,639 .11: 1.00 3,556 10,879 99,178 .11: 1.00 Notes: 1General Fund, Special Revenue Funds and Debt Service Fund. z Beginning in FY03, Capital Projects Funds are also included. 111 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT Juue 30, 2008 Name of Governmental Unit City of Iowa City Iowa City Community School District Total Per capita assessed value {amounts expressed in thousands, except per capita) $ 87,090 Total General Long-Term Bonded Debt Outstanding % Applicable to the City of Io~~~a Citv Amount Applicable to the City of Io~j~a City Per Capita 29,205 $ 116,295 Som•ce: Johnson Comity Auditor's Office $ 65,405 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 eonsideriug 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. 100.00°,~c $ 87,090 $ 1, 299 60.C15G/~ 17,537 2(2 $ 104,627 $ 1,561 112 z ~ _ F 4 ~ O ~ ~ z U ~- G V U r+~t / O ~ Q: h ~•' v 3' ^ U F U U V i vi ~ Gir 0 ~ m `f ~' ~ r ~ U ,~ .~.. ~ U w a rn oc c o~ rn cT ~~ ~n nrnc r ~ c o~ ~t tc ' ~r, ` c o~ c o ' ' ~ O+ r= cc o ~f ~t c ~ cc x a~ a' s oc t~ ~:, ~ , v, o ~ ~ ~ ~ 6s ss °: - .--' tQ C'1 V %' 64 64 N C N c v y o C ~ v l~ cC oc ~ m d+ ~+i GC ~, C 7 7 s, --~ ci.+ ~ = ~, , O ^a 64 64 ~ ~ ~ = U C C C c ~ J ~ ~~ `~' t4 Ti ~ c, ~ c n ~ U ° p o`O^c o~c C v '~~ U v . Q a F ~ o ~ '-C s r ~r '- ~ o ~ ~ V ~ a ~ ~ ~_ O O+ d' l~ O O+ N iG ~t1 <Y c ~... _ ~ ti i' ~ ?=p c ti U V'l ~ C ~ GEC [~ ~f1 `7 U .~ O ,G 64 64 ~ .5] ~ 4 F ~ .~ .~ M ~/l ~C c ~O [~ GC (~ •,C O N OC ~ V1 ~ M ~ l~ ~ c C C O o~c ~ ~ ~ ~ 64 l~ U+ C ~C 64 ~ M c ~ O+ N C~ ~--~ V M V7 ~C O~ ~h M 4: ~, ~ ~ O~ OC ~ V7 N M _ d' O~ N ~C U •,C ~ 7 6R x C 64 ri c l~ O~ GC ~ ~ O~ U~ N tl' O l~ M M 64 ~ ~ EH c l~ ~^, ~:. v ; C O~ cc~ SR ',C~ N~ 64 cC .~ r -~ 'D L O U ti ^ O ~ ~ ~ O F U ~ ~ . ~ U ~ ~ -O ~" U _ '~ F ' ~ G ,,, _:_~ U ~ ' a ~ .~ ~-' cC F G 113 C ~ ~ u ,~, .~ ~ ,~ v ~ i ~ O ~ W 0 0 o a a o a o 0 0 o a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a o 0 0 0 0 0 0 0 o a o 0 0 0 o c~ o a o 0 0 o vi v; ~r; o 0 0 0 0~ o a v; o o~c ~ oMC ~ ~ O ON ~ O O '~ Q ~ N N ~ r!, t1 cr ^~ N ~ ~ oC ~ M O ~Ci V'1 M -~ oC C- '.O ~O ~ d' M N N --~ -~ s~ --~ oC ~h ~ oC O~ ~t OC O O f~ N l d' 'n oC V~ ~ M ~ "1' 00 ~ ~ ~ N t~ N O -~ N Sri -~ v'; ~O oc oc N om O ~ ~ ~ ~ ~ ~ D ti0 N M N t - ~ Y ? i ~ a ~ bS F/-} C J H U ,Q w H V U 6~ U it O O bA C.' 'O O w v r y ~ M rr, M ~!~ M M OC M V7 OC 0 ~, ~n ~ O ^-~ l ~ 0 ~ ~ M `t M d' O ac '~ H '~ O d' C'i ~D ~"+ ~ ~ (S ~D t~- 6C CS OC ~O OC O'J M ' D ' O ~D ~ ~D ~ C~ C"~ ~ OC ~ O~ l M fS OC OC M CT ~n C3'~ [ri ,t~.i ~ :U ~.D ~ ~ ~O ~.D ~D ~D ~ti ~ ~ C ~O I ~D - ~O ~O ~Q ~Ci ~O N 09 V ~ ~ C,' O ""~ ~ ~r l SR I ~ II ;r~ oc N O~ oc -~ O ^-~ O ~ ~ CS ~O v~ v~ ~n oC N ^-~ M ^~ M -~ O O O O O M .-+ 00 ~ ~ O t~ M ^~ O l~ O N oNc M c3~ o~ oc ~t~ ~ Vl ~ N ~ ~ ~ ^~ r! O C~ C~ ~ ~ oNc r ~ Qr N r' ~ N -+ ~ (S oC ~ (T N M M h7 '~ '~ '~ e'ri ~ O O cT CS 4~ oC f~ l - ~D ~ M -+ --~ --~ 0 3 -i b4 Fft -~ M o a M oc M o 0 oc ~a ~ ~r O ~n o u; ^-~ N ~ N M M cT oC ~ ~p ~ M oC CT ~O d' N ~ M O~ O oC ~ -t O N ~D O d~ -+ '~ t`~ ~O .^I ~O N N C3~ N --~ ~t Cl O t ~ '~D -~ ~O V'1 M ~~ Ifi ~ 4'1 O ~ O '~ O ~ ~ d' M ~O ~O Cam- cT cT Q~ y ~O V1 d~ M M CJ~ M ~O M M CT ^~ ~ --~ ~ ~ ~ O -~ --~ --~ --~ --~ cT 4~ oc l~ vi M N N N O'+ rl 6R Ef3 ^~ M O O M oc M O ^-~ N v~ N M M Ch oc O oc v ; ~D '~ d' '~ '~ M ~ O ~ v'~ ~U O et 6fi N y ~ v ~ M O~ O OC d~ ~ N t ~ cT hi ~p ~ d- -~ ~ N ~ d~ O d' cT o ~a N ~G O l ~ ~ ~- O '~ -~ ^-~ ~7 ~O M ~n ~ '~ O r-~ (~ OC w ~O Vi M .-i Vii ~~ ~ ~ ~t --~ ~ o r a ~ ~; M N --~ o-; ~ M ~ M M M N N N ^--~ ^--~ ^-~ N~ I 6g I III a o o a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a o 0 0 0 0 o a o o a o 0 ~ o 0 0 0 a o a o 0 0 0 0 0 0 0 0 0 a ci c' ° ° ~ °o °o °o °o o a °o o N o~c, o .?~ o V O~ --~ N M OC oc ~O M M ~O d' oc G~ O ~O ~D 04 r"' l~ OC OC OC OC C~ I`- [~ ~U ~ M --~ ^~ N V7 `ir OU a ~ ~ oC cT O --+ N M d' V~ ~D C- oC O'~ O N M ;~ V ~ O O ^~ --~ N N N N ~.-~ ~ o 0 o a o a o 0 0 0 0 0 0 0 0 0 0 w~ N N N N N N N N N N N N N N N N [-ti 114 CITY OF IOWA CITY, IOtiVA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Yews (amounts expressed inthousandtil Fiscal Year Net Revenue Annual Deb t Service Ended Available for Ratio of June 30 Revenue Expenses Debt Service Principal Interest Total Coverage Parking Revenue 1999 S 3,653 5 1,713 S 1,940 5 4l5 S l68 5 _543 3.33 2006 3,716 1,461 1,855 455 139 594 3.12 2001 4,309 2,176 2,133 445 43fi 1,321 Lfi1 2002 4,272 1,964 2,312 5l0 74fi 1,25fi 1.44 2003 4,198 1,953 2,245 375 715 1,09C! 2.06 2004 4,164 2,319 1,445 395 647 1,042 1.71 2005 4,360) 2,377 1,943 305 663 964 2.05 2006 4,161 2,340 1,741 320 fi45 465 1.45 2007 5,035 2,973 2,062 335 626 96l 2.15 20(!4 4,995 2,454 2,541 355 60fi 96l 2.fi4 Wastetivater Treatment Revenue 1999 S 11,362 S 2,947 S 8,375 S 2,065 S 3,519 S 5,544 I.50 2000 11,872 3,259 8,613 2,1fi0 3,691 5,851 1.47 2001 12,824 3,248 9,576 2,505 3,589 6,094 1.57 2002 12,501 3,359 9,112 3,005 4,236 7,241 1.26 2003 13,000 4,463 4,537 3,060 4,345 7,445 1.15 2004 12,947 4,523 8,424 3,280 3,672 6,952 1.21 2005 12,600 4,432 5,164 3,630 3,537 7,167 1.14 2006 12,794 4,260 4,_534 3,815 3,390 7,205 1.19 2007 13,708 4,236 9,472 3,905 3,234 7,139 133 2008 13,332 4,581 8,751 4,ICl5 3,071 7,176 122 1999 S 8,571 S 3,295 S 5,27fi s - s - s - O.oO 2000 9,fi26 3,384 fi,242 - 299 299 20.44 2001 10,fi29 3,414 7,219 140 445 545 12.34 20Cl2 10,179 3,424 6,751 745 1,t75 1,440 3.59 2003 10,241 4,361 5,480 500 1,044 1,584 3.70 2004 ld,fi27 4,360 fi,267 925 1,427 2,352 2.fi6 2005 9,247 4,743 4,504 445 1,340 2,145 2A6 2006 9,914 5,722 4,19fi 440 1,305 2, l 45 1.92 2007 9,220 5,35fi 3,464 9l5 1,264 2,183 1.77 2004 9,258 5,344 3,910 955 1,229 2, l 44 1.79 Nate: Excludes depreciation and interest. zIncludes principal and interest of revenue bonds only. 3Parkura Revenue bonds ratio of "Net Revenue 1vailable far Debt Service" to "Total Rm7ual Debt Service" is required to be at least 1.25. ~~Uasteu~ater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. '~Uater Revenue bonds ratio of "Net Revenue available far Debt Service" to "Total Am7ual Debt Service" is required to be at least 1.10. 115 ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ w ~ o ~ ~ o ~ ~ o ~ ~ .~ ~ ~ o ~ ~ o ~ ~ nA ° c'c o vi o !n o° v-, v~ ~ !n !n o !n o vi !n !n ~ o v-! ~ ~ ~ ~ ~C ~t N ~ !n ~ O x a N x +--~ !n ~ !n ~Y M M !n C ^ O !fl ~ ~ [~ ri ~' a d' x M C~ p d' ~ ~ [~ ~ ~ ~" RS C ~ O a x x [~ [~ ~C !n !n may- ~ M M N +-+ a ~ •bA ~ ~ C ~ Gr H3 ~ ~C a ~ x M [~ a !n V7 M d O ~C r+ d' ('~ 'd' to d' ~ ~ d' r-+ ~C V1 x O !n !n ~ N M N V) [~ N ~ a [~ a M N !n ~ M ~t O M ~ ~ ~ ~ x ~ N ~Q N O x !n et > d' cal M ,-~ N~ ~G~ ~C x- ~ d' x [~ ['~ [~ ~G !n x~ O !n N 7d x x x x x x x x x x x x x x x x ~(",, C+ M `t N N N N N N N N N N N N N N N N +--~ ~~ CT G !~ +.~ r sn ~ x M M x .'~ !n ~--~ .'~ x 'J` V'1 !f'1 'J` .^+ ~ 'J ^J N ~' 7 ~ ~n 0 N ~r !n a m r~ *-+ x M !n ' ' x M d- N o .c ' ' x~ !n M .~ ~t x (~ a x d' M d' ~ .~ ~ :x v ~C a a d ~i a a a M d d a a a M M a a M a N N N a a a N N a a N a N a ~C a a c~ ~ ~ ~ y N a n ~t o a M a N x a~ o .~ r- [~ x~ p c-f M x x 0~ v'~ x x ,.c a M a !n x o r- M d' ~ r~ x r- x !n N ~t !n a c !n x c~ M eY c [~ a ~ ai ` ~~ L~ !n M v~i a !n O N l a x ~G ~ [~ x N x N !n N i !n ~ ['~ a x a x ~ x .-~ ~C ~C t x ~x ~G ~G [^7 ~L ,-+ ,--~ ,--~ N N 0 0 0 0 0 0 0 .-+ !r1 O ~C x x~ x S ~ T w ~ I t~3 I ~ II v'i ~G a N~~ a ~C ~t ~^ M a x N O~ M~ •-+ M !t1 a ~C a x N N a 0 ['" ~C M x a M l a '~ x ! ~ x ~ ' ' ~ x N ~ N ~I N [ n N~ [ M N d M x ~Y ~C x v> ,~ .C ~n x !n x ~C ~ x cry x x a a C~ ! ~ ! ~ C a M n O O N N a N n ~C O N N N M M~~ N N N N r+ N ~C *-~ ['~ M M x `~ M~~~~ O 'JG x x x x x x [~ ~L` '"f M M .---i !~ ~--i b9 bR M v-, ~c a N~~ a~~ a ~c .-~ M !n a .c a x N ~. M a~ x N~ o~ N a o r~ ,.c M x a M O et ~ ~ x l !n x N a~ N d' N C- x M a +-^ x o .: .: o !n ~ N~ [~ d' M N x ~, M o x ,.c ~c x ~c x ~ ~C v a ~G d~ x !n N O ['~ d~ x ~t x v; M~ ~C ~ ~t ~t ~t t ri M M M N N N r--~ ~ r-. !!'i rt ~4 I III 0 4 4 4 0 0 0 0 0 4 0 0 0 4 4 4 0 0 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O O cc • ~f, !n !n !n !n o !n !n o !n !n !n ~n o o !n o ~n !n ~t ~c x .-~ !n ~ a .-~ ~ ~ M c~ v, M N o ~ t o l ~ ~ r G, ~ bR bR • I x a O~ N M ~1' !n ~ [~ x a o N M ~t V1 ~C O ~~~ 0 0 0 ~~~ 0 0 ~~~~ 0 0 0 O (y r~" N N N N N N N cal N N N N N N N N N N N H 116 • r r ~' 7 ,~~ 1 117 _4 CITY OF IO~'~jA CITY, IO~'~~A RE~~ ENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking Outstanding Fiscal Year Princit~al Interest Total 2008 $ 355,000 $ 605,594 $ 960,594 2009 370,000 584,298 954,298 2010 390,000 5(i 1,973 951,973 2011 410,000 538,473 948,473 2012 430,000 513,798 943,798 2013 455,000 487,801 942,801 2014 480,000 4(10,335 940,335 2015 505,000 431,401 436,401 2016 535,000 400,851 935,851 2017 565,000 3(18,468 933,468 2018 600,000 334,100 934,100 2019 630,000 297,815 927,815 2020 670,000 259,465 929,465 2021 710,000 218,400 928,400 2022 750,000 174,600 924,600 2023 795,000 128,250 923,250 2024 845,000 79,050 924,050 2025 895,000 2(1,850 921,850 Total $ 10,390,000 $ 6,471,522 $ 1(1,861,522 Sewer Outstanding Fiscal Year Princii~al Interest Total 2008 $ 4,105,000 $ 3,071,052 $ 7,176,052 2009 4,2(10,000 2,846,949 7,15 (1,949 2010 4,445,000 2,708,083 7,153,083 2011 4,700,000 2,505,109 7,205,104 2012 4,940,000 2,289,772 7,229,772 2013 4,995,000 2,064,487 7,059,487 2014 3,200,000 1,868,7(18 5,068,768 2015 3,375,000 1,701,744 5,076,744 2016 3,570,000 1,524,890 5,094,890 2017 3,750,000 1,337,734 5,087,734 2018 3,9(10,000 1,138,893 5,098,893 2019 4,155,000 927,558 5,082,558 2020 4,405,000 703,28 8 5,108,288 2021 4,105,000 477,400 4,582,400 2022 2,725,000 290,544 3,015,544 2023 1,490,000 172,975 1,662,475 2024 755,000 111,238 8(1(1,238 2025 800,000 68,475 8(18,475 2026 845,000 23,238 868,238 Total $ 64,580,000 $ 25,882,197 $ 90,462,197 (continued) 118 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued} Water Outstanding Fiscal Year Principal Interest Total 2008 $ 955,000 $ 1,224,246 $ 2,184,246 2009 995,000 1,187,519 2,182,519 2010 1,040,000 1,143,160 2,183,160 2011 1,085,000 1,096,358 2,181,358 2012 1,135,000 1,047,483 2,182,483 2013 1,190,000 996,007 2,186,007 2014 1,245,000 941,359 2,186,354 2015 1,305,000 883,155 2,188,155 201(1 1,365,000 821,045 2,186,045 2017 1,430,000 754,623 2,184,623 2018 1,505,000 683,534 2,188,534 2019 1,580,000 607,820 2,187,820 2020 1,660,000 527,456 2,187,456 2021 '1,745,000 442,271 2,187,271 2022 1,835,000 351,624 2,186,624 2023 1,930,000 255,207 2,185,207 2024 1,400,000 168,094 1,568 ,094 2025 1,480,000 90,875 1,570, 875 2026 910,000 25,594 935,594 Total $ 25,790,000 $ 13,252,430 $ 39,042,430 119 Q H O w Q H ~ ~c N a N ~ oc o~ O -rte M ~' ~ --• •--~ M ~ ~ CT ~~ -+ ,-~ Ch ~ ~ ~~,, ~ ~ O ~ ~ ~ ~ O ~ ~ O a~i CC ~ M ~ OdC ~ C~~ ~ ~ O M ~ [~ C~ l~ ['~ ['~ OC OC CT d` ~ 69 (O i.i ~ U, ~ bA M p.i ~ N N N M M -~ N N N M O '~ ~ ~ ~ ~ o; ,i7 '~ ~ ~ O C> C ~ ~ C ~ O ~ ~ x N .~ 7 v W v M O ~ N N O ~ ~ M R M 5 ~ ~ ~ ~ ~ ;y ~ ~ ~ ~ OC GT d M d M N M N M d' M ~ M [~ M -~ ~ ~ ~ ~. N N N ~ ~ i u a? s. w C o, a - o v H ~ s o N O _ N T O O O ~ O `~ ^~+ ~ M M l~ O~ ~ O O C O O d 4, O ~ ` p y O ~. OC V; OC M O~ t ~ d O~ - d Vl ~ ~ n O~ d M [~ v v.~ ~ , M M M ~Y ~Y d- ~ ~ kl ~ V'1 ~ '. a ~ ~ EH O ~U., - ~ ~ U ~ O OC OC O O O d d [ N N ~ ~ N ~ 'G ~ ~ rl rl M M M OC O O O Y ` O O~ O~ r7~ N~ N~ N~ N~ N~ [~~ t~~ ~ , i ~ ~ Q" d a-+ ~ ~ Q O f, '-~ a ~ ~ o U ~ o a ~ ~a ~o a, ~ ~ ~ s~ ti v v o ~ ?, a ~ ~ I o~ ~ o O G N O M O ~- O ~.-, O ~ O ~ O ~ ~ ° ~ o ~ p ~~ U ~ ~+ N N N N N N N N N ~ ~ Y U ~ ~ ~ v ~ as ~ O 0.+ ca O /~ ~ W `" ~~ 120 O 31 M ~ O~ x V7 V1 M - ~ x x t`~ C .-~ .~ .-, .-. .-~ ~ O O O ~ M C 4I V 'r W x O O N ~I ~ M d 'd' OMC Vl ~ ONC ~ x ~V... ~ ~ ~ N t~ '~C M M --~ ~ t- ~ ~ O x ,--~ N W CT Ch M N N O *--~ x ~F O ' ' N N ~' vii N o` c ~ h ~ ~ ~ O~ O O N 5 `~ ~ w O w a ~ ~ z w 5 a ~ ~ a ~ z F-' ~ ~ ,-. v ~ u ~ 0 ~. a .y H ,-, ~.~ o ~ o ~, q u ~ ,~w o ~ 'a o O ,.~ • ~ ~ ~ v ~ ~ -a ~ ~ ~ o ~ ~ ~ ~ ~° ~ ~ Y ~~ ~° ~ ~ ~ v o ~ ~ :~ ~ v ~- U ~° ° g ~ C7 ~ r U .~ ~ ~ ~ a, ~j ~ a ~ o 3 ~ as O ^' 121 O ~t T v't ~. M O M M O O M O a~ O O CITY OF IO\\'A CITY, 10\\'A FULL-TIME EQUI\~'ALENT CITY GO\'ERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Fu]1-Time Equivalent Emnlo~'ces as of June 30 1999 2000 2001 2002 2003 2004 Public Safety Police 40.75 9b.25 96.25 97.25 97.25 97.25 Fire 52 52 52 58 58 58 Animal Shcltcr 5.44 5.5 5.5 5.5 6 6 Inspection Scniccs 14.13 14.13 14.13 14.13 14.13 14.13 Public Works Ptlblic 1Vorks Admin 2 2 3 2 2 2 Engineering 11 10.6 11.6 13.6 13.6 13.6 Traffic Engincq~ring 3.75 4.15 4.15 4.15 5.65 5.65 5trcets 23 23.5 23.5 23.5 22 22 Culhue and Recreation Parks and Rcc Adtnin 2 2 2 2 2 2 Recreation 13.17 14.67 15.17 15.17 15.17 15.17 Parks 12 13 13 13 13 13 Forestry 3 3 3 3 3 3 Cctnctcry 3 3 3 3 3 3 CBD l~taintc~ttancc 3 3 3 3 3 3 Library 38 4[1.25 40.25 41.25 41.25 43.25 Senior Cctitter S.5 6 6 6 5.81 5.81 Community attd Economic Dcvelopmel 8.45 8.55 8.55 4.05 8.35 4.45 General tiovenune~ttt City Council 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 Citv Clerk 4.5 5 4.5 45 4 4 City Attorney 6 6 6 6.6 6.b 6.6 Personnel 4 4 4 4 4 4 Finance 28.62 27.71 27.36 28.61 28.61 28.61 Govcnun~~ttt Buildings 4.08 4.08 4.97 4.96 4.96 4.96 Energy Conscnation 0.5 0.5 0.5 0.5 0.5 0.5 Human Rights 2 2 2 2 2.5 2.5 Transit 48.75 48.25 48.25 48.5 48.5 48.5 Special Revenue Employee Benefits 0.38 0.45 0.45 0.4 0.34 Q_34 CiP ,~' Roads - 7 6 7 7 7 Cotnnnuuty Dcvclopme~ttt 4.75 4.75 4.75 4.75 5.45 5.35 JCCOG 5.8 6.1 6.1 6.1 G.1 6.1 Library Dei>clopmcnt 1.5 1.5 1.5 1.5 1.5 1.5 Internal Sen-ice Funds inf"onnation Technology 5.5 7.95 7.5 7.5 7.5 7.5 Equipment 4.5 4.5 4.5 10.25 11.25 11.26 Central Scniccs 1.7 2.1 2.25 0.75 0.75 0.75 Risk Manag~ynettt 1.59 1.56 1.46 1.26 1.33 1.33 BUS1neSS-Type ACh~'1heS Parking 30.5 30.5 37 37 31.5 31.5 Wastcwatc~r Trcatme~llt 30.3 25.3 25.3 2G.3 26.3 27.3 Water 25.95 26.2 26.2 28.2 30.7 31.7 Sanitation 31 31.85 32.35 32.35 32.35 32.35 Airport 1.5 1.75 2 2 2 2 Cable telei>ision 4.75 5.25 5.25 5.25 6.19 6.19 Stonmvater - - - - - - Housing Authority 11.75 111.75 12.5 12.5 12.5 12.5 Total 565.11 581.65 591.79 6116.38 605.64 610.65 Source: City's Financial Plans. 122 Full-Time Equit=alcnt Empl~yccs as of Junc 30 2005 2006 2007 2008 44.25 94.25 96.25 96.25 56 57 57 57 6 6 6 6 13.88 14.88 14.88 15.38 2 2 2 2 11.6 11.6 11.6 11.35 5.65 4.15 4.15 4.15 22 23.5 23.5 23.5 2 2 2 2 15.17 15.17 15.42 15.42 12 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.63 42.63 42.89 43.14 6.31 6.31 6.31 6.31 8.45 8.45 8.45 8.4~ 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6.6 6.6 4 4 4 4 26.61 26.75 26.75 26.5 4.96 4.46 4.96 4.96 0.5 0.5 0.5 0.25 2.~ 2.~ 2.5 2.~ 50.5 50.5 X0.5 ~4.7~ 0.34 0.39 0.39 0.29 3 2 2 1 4.35 4.35 4.35 3.98 6.1 6.6 6.6 6.6 0.8 1 1 1 8 11.75 12 12.3 11.25 11.26 11.26 1126 0.75 0.75 0.75 0.75 1.32 1.38 1.38 1.73 32.75 32.75 32.75 32.75 27.3 25.5 25.5 25.5 31.7 32.5 32 32.75 34.35 33.85 33.85 34.85 2 1.6 1.6 1.6 6.19 6.19 6.19 6.19 - 0.~ 1 12.75 13.25 13.25 13.25 599.56 605.37 608. 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III~~I~~ ~sxd '~~r~xsu~ -~ ~~ ~ ~~c +~' ~i c~f~ x~xd, alp; ~ ~:.r~r~.:~ntc~e ~~ :~<~#r~~ p~v~~sio~ T a~~ ~~`~~~e~:~.t~ r y€~~# s~1 , `~e wit ~ ~~ +:~~. . ~ ~ -- ~ eel ~ ~ ~r-i~h tine pry ~f the '.r's ~~ ~ ~ i.::i EideBallyM ~~ CPAs & BUSINESS ADVISORS To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, for the year ended June 30, 2008, and have issued our report thereon dated December 5, 2008. Professional standards require that we provide you with the following information related to our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB Circular A-133 As stated in our engagement letter dated May 14, 2008, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over fmancial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the City's fmancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City's compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement" applicable to each of its major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter dated May 14, 2008, and in our meeting about planning matters on August 26, 2008. PEOPLE. PRINCIPLES. POSSIBILITIES. www.eidebailly.com 3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 Fax 563.557.7842 1 EOE To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 2 Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Iowa City are described in Note 1 to the fmancial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year ended June 30, 2008. We noted no transactions entered into by the City .during the year for which there is a lack of authoritative guidance or consensus. There aze no significant transactions that have been recognized in the fmancial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the fmancial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the fmancial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the fmancial statements were: Management's estimate of the depreciable lives is based on past history of life cycles of capital assets. We evaluated the key factors and assumptions used to develop the depreciable lives in determining that they are reasonable in relation to the fmancial statements taken as a whole. Management's estimate of the incurred but not reported health, workers' compensation, liability, and long-term disability insurance liabilities aze based on third-party administrator's calculations and estimates. We evaluated the key factors and assumptions used to develop the incurred but not reported liabilities in deternning that they are reasonable in relation to the fmancial statements taken as a whole. Management's estimate of the allowance for doubtful accounts is based on accounts which aze past due with no special arrangement for payment. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the fmancial statements aze neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the fmancial statements or the auditor's report. We aze pleased to report that no such disagreements arose during the course of our audit. To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 3 Management Representations We have requested certain representations from management that are included in the management representation letter dated December 5, 2008. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Comments We have included additional comments regazding the fmancial statements and operations. These comments are not a result of in-depth study of any specific areas, but are based on observations made during the course of our audit. This information is intended solely for the use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City may report, including federal awazding agencies and pass- through entities. This report is not intended to be and should not be used by anyone other than these specified parties. As always, we will be happy to discuss these or any other topics at your convenience. We would like to take this opportunity to express our appreciation to you and your staff for the fine cooperation that we received during the course of the audit. We look forward to many years of continued service to the City of Iowa City, Iowa. ~G~ Dubuque, Iowa December 5, 2008 CITY OF IOWA CITY YEAR ENDED JUNE 30, 2008 OTHER COMMENTS Landfill Receivables One waste hauler to the City-owned landfill has accumulated a substantial balance for dumping fees. While this had been an issue in past years, the balance had been paid down to a reasonable amount at certain points in time. As of June 30, 2008, the balance had again increased substantially. The City currently has an agreement in place which sets forth payment requirements from the hauler in order for the hauler to be able to continue dumping at the landfill. We recommend that this situation continue to be monitored closely, communicated regularly between departments involved, and that the City enforce all aspects of the agreement in order to get the balance of the receivable current. Governmental Accounting Standards Board (GASB) The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by the City of Iowa City. The statements, which might impact the City of Iowa City, are as follows: Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, issued June 2004, will be effective for the fiscal year ending June 30, 2009. This statement establishes standards for the measurement, recognition, and display of other postemployment benefit (OPEB) expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information in the fmancial reports of state and local governmental employers. Statement No. 47, Accounting for Termination Benefits, issued June 2005, establishes accounting standards for termination benefits. For termination benefits provided through an existing defined benefit OPEB plan, the provisions of this statement should be implemented simultaneously with the requirements of Statement No. 45. For all other termination benefits, this statement was effective for the fiscal year ended June 30, 2006. Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, issued November 2006, will be effective for the fiscal year ending June 30, 2009. This statement establishes standards for accounting and fmancial reporting for obligations to address the current or potential detrimental effects of existing pollution. Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 52, Land and Other Real Estate Held as Investments b1' Endowments, issued November 2007, will be effective for the fiscal year ending June 30, 2009. This statement establishes consistent standards for the reporting of land and other real estate held as investments by essentially similar entities. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments.